Subject: Business and Management
Language: English (U.S.)
Pages: 3
Discuss the methods of managing an organization


1. Organizations can use the Taguchi Method to design experiments to investigate manufacturing processes where quality depends on several variables such as input and machinery. Through the Taguchi method, organizations can come up with a loss function that they can minimize by adjusting the values of the various determinants of quality.

2. Companies in an array of industries can use the lean six sigma approach to eliminate waste in transportation, defects, processing, inventory and several others. The manufacturing industry is one that can benefit a lot from the concept. Manufacturers place orders continually, store items in stock, incur transportation costs, hire talented staff who may be underutilized, and risk having items going unsold for months. As such, the industry has many areas that it can improve on through the lean six sigma model. The service industry can use this concept to utilize staff better and reduce waiting costs in their companies. The end result will be happier clients and increased net profits.

3. Lean six sigma aims at helping organizations reduce the complexity and bulkiness in their process by using the least resources possible. The organization therefore reduces waste and also minimizes the likelihood of defects in the end products. Traditional quality improvement tries to minimize errors in the final product by tracing errors to the production process. Companies try to improve their manufacturing processes periodically to reduce the frequency and chances of errors occurring.

4. Employee empowerment refers to deliberate efforts by an organization to equip employees with all skills they need to excel at their current and future duties. In addition to training, the organization's management displays its confidence in employees by encouraging them to participate in decision making and open discussions. Empowerment of employees augers well in team situations where people are expected to make contributions and figure out how to complete tasks that the leader assigns to them. Empowered employees show their skill in such situations, readiness to make contributions, and even a natural desire to lead.

5. Team building as a concept comes from a notion that organizations are made up of several teams that depend on each other. The term 'teambuilding' often refers to a range of activities that teams carry out to foster cohesiveness in teams. All teams can benefit from the teambuilding concept because they must realize that they are part of a bigger organization. Further, the individual members in teams realize the objectives of the team are more important than personal glory and therefore pursue what is in the best interests of the team.

6. Virtual teams are groups of people who work on a common course but from different locations and time zones with the use communication technology. Members of virtual teams have to be very talented people that can work on tasks independently and with minimal supervision. Virtual teams meet regularly from their remote locations to discuss the progress of ongoing projects. An example of a virtual team is a committee of persons in a multinational charged with designing the entry strategy in a new country. The committee members would have to be based in different locations for it to qualify as a virtual team.

7. People are the basis of quality because they enable the working of the other 2Ps of quality. It is people who come up with processes and improve them. Finally, it is people who come up with products that can satisfy customer wants and the target customers are also humans.

8. Internal assessments are of great value to companies seeking to remain competitive for several reasons. They ensure that a company is always looking for ways to better its operations and products for the benefit of customers. Internal assessments are meant to make sure that a company competes against itself and does not impose any limits on how good it can become.

Problem 1

L= k(y-m)2

where L is the loss, k is the constant, y is the quality characteristic, and m the target value for y

K= 50/ (0.25)2=800

L=K*V2 =800 * (1/)=$ 400 per unit

Problem 2

Total costs

Laptops- $20, 000

Server- $2000

Network installation- $15,000

Software -$20,000

The total direct costs are $57,000 The indirect costs are $15000.

The annualized benefits are $100,000 and therefore, the cost benefit analysis shows that the intended project is tenable.


Foster, S. T. (2007). Managing quality: integrating the supply chain (3rd ed). Upper Saddle River, N.J: Pearson Prentice Hall.