Pareto Analysis and Business Process Flow Charting Practice|Legit essays

Posted: February 18th, 2023

This activity consists of two problems.

Problem One

Gary Seitz is director of procurement for the Forest Medical Center in Oak Park, Illinois. His medical center recently purchased more than 300 new side tables for the patient rooms from Quick-and-Cheap Furniture. His team, however, is not happy with the paint quality of these tables. They feel the firm providing the tables was rushed to get the order out and did not do a great job.

They have examined each of the 312 tables that they have received so far and found the following defects, listed in alphabetical order:

Table DefectsProblemNumber of OccurrencesDirt in paint65Off-color17Orange peel12Other1Sad looking43Scratch11Sealer under8Thin paint31

Instructions

Use Excel to:

  1. Create a Pareto Chart for this situation.
  2. Create and complete a table for this situation using the following headers:
    • Problem.
    • Frequency.
    • Cumulate Frequency.
    • Percentage.
    • Cumulate Percentage.
  3. List the most frequently occurring problem first in the table, then the next more frequently occurring problem second in the table, and so forth.

In a Word document:

  1. Draw two conclusions about the quality of the patient tables that Quick Furniture has shipped to the Forest Medical Center.

Submit both your Word and Excel files.

Problem Two

Ted Short, manager of procurement at the Lake Luna Medical Center (LLMC), is starting a process to examine at the general process that is followed at his center for procurement of medical supplies at his facility. His first step is to develop a flowchart for the current process that employees at his center follow. He has asked you to draw that flowchart for him and make any obvious changes to shorten the process.

Here are the key steps that are followed:

  1. The LLMC employee fills out a paper requisition and sends that to his department head for approval.
  2. The department secretary first examines the requisition to see if all needed information is present. If it is, then she sends to the department head for approval. If not, she returns to the employee for any needed corrections. The employee then returns the requisition to the department secretary for review again.
  3. Requisitions with the correct information are sent to the department head.
  4. The department head reviews the item to determine if the material requested seems appropriate. He may contact his employee to discuss any questions he might have.
  5. If he feels it is inappropriate, then he rejects the request and sends it back to the employee.
  6. If he feels it is appropriate, then he checks the budget to see if there are sufficient monies in the budget to pay for this.  If there are not, then he rejects the request and sends it back to the employee.  If there are sufficient funds, then he approves them.
  7. If the requisition is approved, then the department secretary sends the requisition to a member of the LLMC Procurement Team.
  8. The LLMC procurement specialist checks to see if the suggested vendor on the requisition is on the approved vendor list (AVL).
  9. If not, he sends the request back to the department secretary and the process starts all over if the LLMC employee wants to continue to pursue it.  If the employee does not, then the requisition is terminated.
  10. If the vendor is on the AVL, the LLMC procurement specialist checks to see if a quote is required, either based on the type of equipment and material required or on the amount of the purchase.
  11. If no quote is required, the procurement specialist transmits the PO to the vendor for execution.
  12. If a quote is required, then the specialist contacts the vendor and asks for a quote. If the quote is satisfactory based on past purchases of such items, the specialist approves the quote and places the order.
  13. If the quote is too high, the specialist contacts the LLMC employee and asks for another vendor to check. The procurement specialist then checks the second vendor. Usually, a procurement specialist will have to check only two vendors at most.
  14. If the specialist cannot find a vendor with it suitable price after two tries, then the PO is cancelled.
  15. When the specialist finds a vendor who submits a suitable quote, the transmits the PO to the vendor for execution by US postal service or by telephone.
  16. The procurement specialist then logs the transaction into the financial system.
  17. The procurement specialist then forwards the request to the Accounts Payable Department for payment when the receipt of the materials and equipment ordered, if acknowledged.
Instructions

Use Microsoft Word to complete the following:

  1. Develop a flowchart for this process.
  2. Suggest three improvements, based on total quality management, that Ted Short can use to make the current process more efficient.Activity: Pareto Analysis and Business Process Flow Charting Practice

    This activity consists of two problems.

    Problem One

    Gary Seitz is director of procurement for the Forest Medical Center in Oak Park, Illinois. His medical center recently purchased more than 300 new side tables for the patient rooms from Quick-and-Cheap Furniture. His team, however, is not happy with the paint quality of these tables. They feel the firm providing the tables was rushed to get the order out and did not do a great job.

    They have examined each of the 312 tables that they have received so far and found the following defects, listed in alphabetical order:

    Table Defects
    Problem Number of Occurrences
    Dirt in paint 65
    Off-color 17
    Orange peel 12
    Other 1
    Sad looking 43
    Scratch 11
    Sealer under 8
    Thin paint 31

    Instructions

    Use Excel to:

    1. Create a Pareto Chart for this situation.

    2. Create and complete a table for this situation using the following headers:

    . Problem.

    . Frequency.

    . Cumulate Frequency.

    . Percentage.

    . Cumulate Percentage.

    3. List the most frequently occurring problem first in the table, then the next more frequently occurring problem second in the table, and so forth.

    In a Word document:

    1. Draw two conclusions about the quality of the patient tables that Quick Furniture has shipped to the Forest Medical Center.

    Submit both your Word and Excel files.

    Problem Two

    Ted Short, manager of procurement at the Lake Luna Medical Center (LLMC), is starting a process to examine at the general process that is followed at his center for procurement of medical supplies at his facility. His first step is to develop a flowchart for the current process that employees at his center follow. He has asked you to draw that flowchart for him and make any obvious changes to shorten the process.

    Here are the key steps that are followed:

    1. The LLMC employee fills out a paper requisition and sends that to his department head for approval.

    2. The department secretary first examines the requisition to see if all needed information is present. If it is, then she sends to the department head for approval. If not, she returns to the employee for any needed corrections. The employee then returns the requisition to the department secretary for review again.

    3. Requisitions with the correct information are sent to the department head.

    4. The department head reviews the item to determine if the material requested seems appropriate. He may contact his employee to discuss any questions he might have.

    5. If he feels it is inappropriate, then he rejects the request and sends it back to the employee.

    6. If he feels it is appropriate, then he checks the budget to see if there are sufficient monies in the budget to pay for this.  If there are not, then he rejects the request and sends it back to the employee.  If there are sufficient funds, then he approves them.

    7. If the requisition is approved, then the department secretary sends the requisition to a member of the LLMC Procurement Team.

    8. The LLMC procurement specialist checks to see if the suggested vendor on the requisition is on the approved vendor list (AVL).

    9. If not, he sends the request back to the department secretary and the process starts all over if the LLMC employee wants to continue to pursue it.  If the employee does not, then the requisition is terminated.

    10. If the vendor is on the AVL, the LLMC procurement specialist checks to see if a quote is required, either based on the type of equipment and material required or on the amount of the purchase.

    11. If no quote is required, the procurement specialist transmits the PO to the vendor for execution.

    12. If a quote is required, then the specialist contacts the vendor and asks for a quote. If the quote is satisfactory based on past purchases of such items, the specialist approves the quote and places the order.

    13. If the quote is too high, the specialist contacts the LLMC employee and asks for another vendor to check. The procurement specialist then checks the second vendor. Usually, a procurement specialist will have to check only two vendors at most.

    14. If the specialist cannot find a vendor with it suitable price after two tries, then the PO is cancelled.

    15. When the specialist finds a vendor who submits a suitable quote, the transmits the PO to the vendor for execution by US postal service or by telephone.

    16. The procurement specialist then logs the transaction into the financial system.

    17. The procurement specialist then forwards the request to the Accounts Payable Department for payment when the receipt of the materials and equipment ordered, if acknowledged.

    Instructions

    Use Microsoft Word to complete the following:

    1. Develop a flowchart for this process.

    2. Suggest three improvements, based on total quality management, that Ted Short can use to make the current process more efficient.

    Submit your Word document(s)

SOLUTION

Instructions for Creating a Pareto Chart:

  1. Open a new Excel worksheet and input the table defects and the number of occurrences for each problem in separate columns.
  2. Calculate the total number of defects by using the SUM function.
  3. Add a new column to the right of the number of occurrences column and calculate the percentage of each problem using the formula “=B2/$B$15”, where “B2” is the cell containing the number of occurrences of the first problem and “$B$15” is the cell containing the total number of defects. Apply this formula to all the rows in this column.
  4. Add a new column to the right of the percentage column and calculate the cumulative percentage by using the formula “=SUM(C2:C$11)”, where “C2” is the cell containing the percentage of the first problem and “C$11” is the last cell in the column. Apply this formula to all the rows in this column.
  5. Create a bar chart with the problem names on the X-axis and the number of occurrences on the left Y-axis. Add a secondary Y-axis on the right side for the cumulative percentage column.
  6. Sort the table defects column in descending order and re-arrange the other columns accordingly.
  7. Add a line chart for the cumulative percentage column

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