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Assignment: Planning Quality for PSI Worth 15% of MGMT4015 Course Grade Company Background Plastic Services Inc (PSI) is a Toronto based manufacturer of plastic products. Founded in 2005, PSI began as a pioneering producer of recyclable plastic cutlery for local restaurants. Through sustained growth and capital reinvestment, PSI expanded its production capabilities to capture a larger share of the consumer plastic goods market. PSI’s current line of plastic goods include cutlery, food containers, water bottles, and cups. PSI has a total workforce of 600 staff spread across five departments (refer to Appendix A for organization chart). Scenario Like many other companies, the emergence of COVID-19 dealt a heavy blow to PSI. The demand for their line of plastic products sharply declined as consumer spending behavior shifted towards other consumer products such as toilet paper, hand sanitizer, and hair care products. By the second month of the pandemic, PSI was forced to lay off 40% of its workforce to maintain operations. In light of dwindling sales and slumping demand, Nam Shah, the PSI CEO, convened a meeting with the five department directors to present a new business plan. The surge in demand for Personal Protective Equipment (PPE) for front-line health workers and essential businesses has created a supply shortage in the market. This has created a public health threat for the provincial government of Ontario. To rectify the threat, the Government of Ontario invoked an emergency powers act restricting the sale and export of PPEs to only the province of Ontario. To further mitigate against the threat, the Government of Ontario also issued special grants for eligible companies capable of producing PPEs. Nam’s proposal is to modify PSI’s current production line to make face shields and transparent barriers. In order to be eligible for the grant and capitalize on the supply shortage, PSI will need to begin production within one month and requires the participation and coordination of all five departments. All five department directors pledged their support for Nam’s proposal and nominate their departmental managers to serve as members of an executive steering committee. This committee is tasked with identifying and assigning resources to support the project. PSI has contracted you as a project manager to plan, manage, and execute Nam’s business plan. The target market includes hospitals, medical offices, grocery stores, and other essential businesses. Points to Consider · PSI will need to ramp up its production to 100% pre-COVID capacity in order to meet the very tight timeline · Engineering has indicated that it can modify its current production line to manufacture the proposed products, but requires a different type of plastic than it currently uses for its suite of finished plastic products · Health & Safety has indicated that the current production floor setup has staff working in close proximity to each other and does not conform to the social distancing measures Hospitals and medical offices are not typical customers, Sales & Marketing will need to establish new customer contacts and secure purchase orders Plan Quality Assignment As the project manager, you are responsible for planning the quality requirements for the project. You will develop and present the quality requirements to the executive steering committee for review. The quality requirements will be delivered as a PowerPoint presentation and should concisely convey the results of the below activities. Your PowerPoint presentation should not exceed ten slides in total. Note: The results of all three parts of this assignment must be included in your PowerPoint presentation. PowerPoint Presentation Tips · Include an agenda of topics to be addressed in the presentation · Be brief and concise ensuring that your slides do not have too much writing · Use charts, diagrams, or pictures where necessary · Have an eye to make the presentation aesthetically pleasing in order to engage your audience Part 1 – Quality Requirements Development Brainstorm a list of quality requirements for the face shield and transparent barrier. From your list, select the top two for each of the products (two for the face shield and two for the transparent barrier). For each quality requirement you will also need to describe how you will measure/verify that the quality requirement has been met. Example Product Quality Requirement Verification Face shield Transparent plastic shield should be 25 cm in length and 38 cm in width Transparent plastic shield to be measured with a tape measure after being cut and prior to being curved Part 2 – Cost Benefit Recommendation PSI has two important purchasing decisions to make in support of the project. As the project manager, you must perform a cost-benefit analysis to determine which of the options best support the project’s objectives. As part of your analysis, provide supporting reasons for your recommendations. Purchase Scenario #1: Asset Purchase vs Asset Modification In order to produce the face shields and transparent barriers products, PSI must make changes to its production line. It can do so in one of two ways: Option 1: Re-engineer its current machinery Deema Yahya, the machine engineer, has indicated that her team can re-engineer the current machinery to produce the face shields and transparent barriers. Deema has estimated the cost at $45,000, plus an additional $5,000 for parts. The estimated time, including installation and testing, is 8 weeks. Option 2: Purchase and install a new machine Aman Rakkar, the senior buyer, in consultation with Amir Taza, the manager of Engineering, has identified a machine available for purchase that will be able to produce the face shields and transparent barrier. The purchase of the machine would cost $70,000, plus an additional $10,000 for installation. The estimated time to purchase, install, and test is 2 weeks. Purchase Scenario #2: Plastics Suppliers Aman Rakkar has obtained quotes from two wholesale plastics suppliers in order to produce the face shields and transparent barriers. To meet the anticipated consumer demand, Aman calculates that PSI will need 900 kg of plastic per month for the next 6 months. Supplier #1: B2B Plastics B2B Plastics can supply 1200 kg of high-density plastic at a discounted price of $35,000 for the first month. After which the price per 1200 kg will be $43,000 for all subsequent months. The quality of the plastic offered can only be used to produce the new plastic products. Supplier #2: Global Plastics Global Plastics can supply 1000 kg of low-density plastic at a standard price of $40,000. The quality of the plastic offered means it can also be used to produce PSI’s standard suite of plastic products. Note: Partial contracts are not permissible. Part 3 – Cost of Quality Your final task is to determine the cost of quality for producing the face shields and transparent barriers. The table below lists al the types of costs along with their corresponding amount. Your task is to do the following: (1) Classify each of the costs according to their appropriate quality category (prevention, appraisal, etc) (2) Calculate the cost of each quality category (3) Determine the total cost of quality Type of Cost Amount Inspection of procured supplier plastic $8,000 Customer refund for defective face shield band $10,000 Face shield machine operation training $15,000 Discard and re-design transparent barrier mounts to better stabilize weight of transparent barrier $35,000 Document end-to-end face shield production process $2,000 Face shield machine re-tooling to fix screen curvature $45,000 Transparent barrier machine operation training $9,000 Stress testing of adjustable band on face shield $15,000 Appendix A: PSI Organization Chart Manager Engineering Amir Taza Manager Manufacturing Rusty Tam Manager Distribution Munir Ali Manager Health & Safety Kira Khan Manager Hiring & Recruitment Faith Weitz Manager Finance Manish Tanna Manager Procurement Sheila Duong Chief Executive Officer Nam Shah Director Operations Catina Getz Director Financial Services Gagan Singh Director Human Resources Lester Lo Director Sales & Marketing Colby Davila Director IT Jahdo Simms Manager Corporate Sales Grace Goldberg Manager Marketing Tamir Johnson Manager Enterprise Systems Taylor Balh Logistics Analyst Brant Mann Production Specialist Dario Reed Machine Engineer Deema Yahya Talent Recruiter Tim Borg Safety Coordinator Elisa Stone Finance Analyst Tango Dupree Senior Buyer Aman Rakkar Sales Lead Osama Rome Brand Specialist Kim Park Systems Analyst Gloria Cortez Amir TazaManagerEngineeringRusty TamManagerManufacturingMunir AliManagerDistributionKira KhanManagerHealth & SafetyFaith WeitzManagerHiring & RecruitmentManish TannaManagerFinanceSheila DuongManagerProcurementNam ShahChief ExecutiveOfficerCatina GetzDirector OperationsGagan SinghDirectorFinancial ServicesLester LoDirectorHuman ResourcesColby DavilaDirectorSales & MarketingJahdo SimmsDirectorITGrace GoldbergManagerCorporate SalesTamir JohnsonManagerMarketingTaylor BalhManagerEnterprise SystemsBrant MannLogistics AnalystDario ReedProduction SpecialistDeema YahyaMachine EngineerTim BorgTalent RecruiterElisa StoneSafety CoordinatorTango DupreeFinance AnalystAman RakkarSenior BuyerOsama RomeSales LeadKim ParkBrand SpecialistGloria CortezSystems Analyst 1/24/23, 1:26 AM Rubric Detail – SCOPE AND QUALITY MANAGEMENT CRN-51027-... https://bb-gbc.blackboard.com/webapps/rubric/do/course/gradeRubric?mode=grid&isPopup=true&rubricCount=1&prefix=_1979839_1&course_id=_25… 1/2 Rubric Detail A rubric lists marking criteria that instructors use to evaluate student work. Your instructor linked a rubric to this item and made it available to you. Select Grid View or List View to change the rubric's layout. A B C D Demonstration of conceptual understanding 11 (73.33333%) - 12 (80.00%) ● More than 2 quality requirements de�ned for each of the two plastic products with its corresponding veri�cation means ● All quality requirements and corresponding veri�cation are clear, concise, and necessary ● Both cost bene�t recommendations are supported by strong business reasons and correct cost bene�t calculations ● All costs in the cost of quality part are assigned the correct quality category ● All quality category costs are correctly calculated ● The total cost of 9 (60.00%) - 10 (66.66666%) ● Exactly 2 quality requirements de�ned for each of the two plastic products with its corresponding veri�cation means ● Most quality requirements and corresponding veri�cation are clear, concise, and necessary ● Both cost bene�t recommendations are supported by good business reasons and correct cost bene�t calculations ● Most costs in the cost of quality part are assigned the correct quality category ● Most quality category costs are correctly calculated ● The total cost of quality is correctly calculated 7 (46.66666%) - 8 (53.33333%) ● Exactly 2 quality requirements de�ned for each of the two plastic products with its corresponding veri�cation means ● Some quality requirements and corresponding veri�cation are clear, concise, and necessary ● Both cost bene�t recommendations are supported by satisfactory business reasons and correct cost bene�t calculations ● Some costs in the cost of quality part are assigned the correct quality category ● Some quality category costs are correctly calculated ● The total cost of quality is correctly calculated 5 (33.33333% (40.00%) ● One of the plastic produ has only one de�ned qua requirement Few quality requirement correspondi veri�cation a clear, concis necessary ● cost bene�t recommend are supporte weak busine reasons and correct cost bene�t calculations costs in the of quality pa assigned the correct qual category ● F quality categ costs are co calculated ● total cost of quality is cor calculated Name: Planning Quality Assignment Rubric Exit Grid View List View 1/24/23, 1:26 AM Rubric Detail – SCOPE AND QUALITY MANAGEMENT CRN-51027-... https://bb-gbc.blackboard.com/webapps/rubric/do/course/gradeRubric?mode=grid&isPopup=true&rubricCount=1&prefix=_1979839_1&course_id=_25… 2/2 A B C D quality is correctly calculated Quality of PowerPoint Presentation 2.6 (17.33333%) - 3 (20.00%) ● Written in business appropriate language. Minor to no errors in grammar and spelling ● No more than 10 slides in total ● Contains an introductory slide, agenda, and concluding slide ● Written content is succinct and clearly conveys meaning ● Exceptionally e�ective use of diagrams, charts, and/or pictures to supplement written content ● Exceptional use of aesthetics, complimentary colors, and spacing to create an engaging reader experience 2 (13.33333%) - 2.5 (16.66666%) ● Mostly written in business appropriate language. Few grammar and spelling errors ● 11-12 slides in total ● Contains an introductory slide and agenda ● Most written content is succinct and clearly conveys meaning ● E�ective use of diagrams, charts, and/or pictures to supplement written content ● Good use of aesthetics, complimentary colors, and spacing to create an engaging reader experience 1.5 (10.00%) - 1.9 (12.66666%) ● Mostly written in non-business appropriate language. Several grammar and spelling errors ● More than 12 slides in total or too few slides ● Contains an agenda, but no introductory slide ● Some written content is succinct and clearly conveys meaning ● Limited use of diagrams, charts, and/or pictures to supplement written content ● Average use of aesthetics, complimentary colors, and spacing to create an engaging reader experience 1 (6.66666%) (9.33333%) ● Mostly wri in colloquial language. M grammar an spelling erro More than 1 slides in tota too few slide Contains no agends or introductory ● Most writt content is N succinct and NOT clearly convey mea No use of diagrams, ch and/or pictu supplement written cont Below avera use of aesth compliment colors, and spacing to c an engaging reader expe Name:Planning Quality Assignment Rubric Exit