Textbook Discussion Questions: 1. Is the goal of Six Sigma realistic for services such as Blockbuster Video stores or Redbox DVD kiosks? 2. Business writer Tom Peters has suggested that in making...

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Textbook Discussion Questions:


1. Is the goal of Six Sigma realistic for services such as Blockbuster Video stores or Redbox DVD kiosks?


2. Business writer Tom Peters has suggested that in making process changes, we should “Try it, test it, and get on with it.” How does this square with the DMAIC/continuous improvement philosophy?


3. The following table lists all costs of quality incurred by Sam’s Surf Shop last year. What was Sam’s appraisal cost for quality last year?


Annual inspection costs $ 155,000


Annual cost of scrap materials 286,000


Annual rework cost 34,679


Annual cost of quality training 456,000


Annual warranty cost 1,546,000


Annual testing cost 543,000


4. A common problem that many drivers encounter is a car that will not start. Create a fishbone diagram to assist in the diagnosis of the potential causes of this problem.



Bloomberg Businessweek article


Top of Form


1. What are the likely motivations behind Chinese brands' push to increase their U.S. operations and sales?




2. Will Americans take to these Chinese brands? Why or why not?




Textbook Discussion Questions (2 pages): 1. Is the goal of Six Sigma realistic for services such as Blockbuster Video stores or Redbox DVD kiosks? 2. Business writer Tom Peters has suggested that in making process changes, we should “Try it, test it, and get on with it.” How does this square with the DMAIC/continuous improvement philosophy? 3. The following table lists all costs of quality incurred by Sam’s Surf Shop last year. What was Sam’s appraisal cost for quality last year? Annual inspection costs $ 155,000 Annual cost of scrap materials 286,000 Annual rework cost 34,679 Annual cost of quality training 456,000 Annual warranty cost 1,546,000 Annual testing cost 543,000 4. A common problem that many drivers encounter is a car that will not start. Create a fishbone diagram to assist in the diagnosis of the potential causes of this problem. Textbook of reference: OPERATIONS AND SUPPLY CHAIN MANAGEMENT, 15ed. Jacobs & Chase. McGraw-Hill Education. Bloomberg Businessweek article Questions (1 page) Top of Form 1. What are the likely motivations behind Chinese brands' push to increase their U.S. operations and sales? 2. Will Americans take to these Chinese brands? Why or why not? Contents » To score in the NFL, It pays to move 21 r Gap's Athieta iooics a iot like Lululemon 22 * Briefs: CNOOC engineers China's biggest North American buyout 23 (I Edited by James E. Eiiis Companies8(lndustries China Is Really Big. Its Brands, Not So Much • Mainland giants aim to develop products that can thrive in the U.S. and fetch higher prices • "If you just focus on the China brand, people will think it's cheaper and the quality is not very good" It was going to be the start of a Chinese invasion. Haier Group, a company from the northeastern Chinese city of Qingdao and the world's largest maker of air conditioners, refrigerators, and other appliances, opened a factory in Camden, S.C, in 2000. The plant was Haier's first in the U.S. and a big step in its strategy to expand beyond China and challenge Maytag and Whirlpool in American homes. A decade later, Haier is still trying to win over American consumers. It's had some success in niches such as minifridges for hotel rooms and college dorms, but it's yet to make inroads in mainstream products such as full-size refrigerators and washing machines. Haier's U.S. head count tells the story: about 250 workers at the South Caroli- na plant plus 220 working on U.S. sales and marketing. It has 80,000 work- ers worldwide. "We had a few ups and downs," says Shariff Kan, president of Haier America. Companies such as Haier, which had $23.6 billion in sales last year, may be little known in the U.S., but their brands are household names back in China. Some have become global lead- ers, thanks largely to their strong posi- tion in the world's second-largest econ- omy. TCL Multimedia Technology, China's leading maker of televisions, for instance, is now No. 5 globally for LCD TVs. But unless you've shopped online for a low-cost set lately, you've probably missed the brand. Now Haier and other big Chinese brands are trying again to make a splash in the U.S. Haier plans to open an R&D center in the U.S. to focus on larger-size appliances designed with American families in mind. "That will really open the door," Kan says. Haier is following the lead of Huizhou-based TCL, which opened an R&D center in Silicon 0^ Valley last year. The company, ^ ^ July 30-August 5,2012 Bloomberg BusinessWeek Companies&lndustries which started selling TVs in the U.S. under its TCL brand in 2011 (it previous- ly made sets sold under the RCA brand), also has a research lab with the Massa- chusetts Institute of Technology. Chinese phonemakers such as ZTE and Huawei Technologies are making deals with American carriers for their low-cost smartphones, and BYD, a maker of autos and solar panels partly backed by Warren Buffett, set up shop in Los Angeles last year. Even Chinese sporting goods companies Peai< sport and li-ning are intent on establishing an american beachhead. given the strong home market for made-in-china brands, why bother? one reason: the sheer market size and affluence that makes the u.s. a vora- cious buyer ofthe higher-value goods chinese multinationals want to create. "zte wants to be one ofthe top telecom vendors in the world, [and] we cannot have a top position without success in the u.s. market," says lixin cheng, chief executive oflicer of zte's u.s. operation. li-ning, named for the olympic gym- nastics gold medalist, had disappoint- ing sales when it opened a retail store on the west coast, but it's not giving up. it's shifting its focus to online sales in the u.s. through digital li-ning, a joint venture with chicago-based marketing firm aoquity group. says ray grady, the venture's general manager: "to be a global brand, you have to show up and be relevant in the u.s." the most successful chinese com- pany to do that so far is lenovo. it's the world's no. 2 pc vendor, behind only hewlett-packard, albeit largely due to its strength in china. in 2005, lenovo bought ibm's pc business, but by 2009, its u.s. market had dropped by almost a third, to 3.4 percent, as it lost busi- ness to apple and low-cost taiwan- ese rivals such as acer and asustek. to woo u.s. consumers, lenovo has begun a makeover. because of their ibm heritage, thinkpads have been popu- lar among corporate it managers who bought the dull-but-reliable laptops in bulk for employees. the goal now is to create a cooler, younger image aimed at consumers so lenovo can be "a brand that is desired, not just dictated," says jeff meredith, vice president for marketing. the campaign was started last year with print ads and online videos featur- ing urban hipsters and thrill seekers doing things like booting up a think- pad while skydiving. lenovo on july 25 unveiled a three-year sponsorship deal with the national football league that "gives us a tremendous new forum to introduce consumers to our products and brand," said david schmoock, pres- ident of lenovo north america. the consumer focus is paying off: leno- vo's unit sales in the u.s. grew 6.1 per- cent in the second quarter compared with a 10.6 percent decline for the u.s. pc market, reports market researcher idc. that gave lenovo an 8 percent u.s. market share, its largest ever. huawei has partnered with carriers ivietropcs communications and leap wireless international to sell cheap smartphones and is making inroads with first-tier players such as t-mobile, which is working with the chinese com- pany on two handsets. zte had 4.8 per- cent market share in the first quarter of the year, according to ceo cheng, put- ting it no. 6 in u.s. handsets. in 2011, zte introduced 11 models for the u.s.; this year it will launch 18 more. as recently as 2010, buyers would have had a hard time knowing zte made their phones since its handsets carried only its wireless customers' names. now, cheng says 90 percent of zte gear sold in the u.s. has the zte name, so american consumers "can start to learn our brand." moving into more fashion-driven in- dustries could be tougher. peak sport, whose athletic footwear is sold in more than 6,000 stores in china, this winter opened a 3,000-square-foot store in culver city, calif., and another in houjrwood showcasing its shoes. they rising profiles beyond the mainland some of china's largest brands are making more money abroad than at home share of annual revenue china .rest of the world huawei ($29.4b total) lenovo ($29.6b) peak sport ($682m) are the first steps in a plan to roll out flagship stores nationwide while also trying to win shelf space in u.s. chains such as foot locker. in march the chi- nese company became a sponsor of the drew league, for young basketball players in southern california, to raise its profile. "consumers want new brands," says sujia, head of peak's u.s. unit. "they say everyday it's just nike and adidas. it's boring. consumers don't care where you come from." still, peak doesn't draw attention to its chinese roots. says su: "if you just focus on the china brand, people will think it's cheaper and the quality is not very good." having brands mostly at the low end ofthe market is a long- term problem for chinese com- panies, says anil gupta, a professor at the university of maryland's robert h. smith school of business. "their basis of comparative advantage is not prod- uct or service, it's lower price," he says. "that creates a challenge when trying to build a brand image that's about more than low price." korean electronics brands such as samsung and lg were able to make that jump, thanks to a multidecade effort to boost r&d and match what rivals from japan could offer. that could be harder for the chinese in to- day's environment. "when the market isn't growing," says gupta, "the compe- tition is going to get more intense." zte's cheng says his company will try to overcome any resistance to made-in-china brands by presenting itself as a partner of trusted u.s. com- panies. "you cannot just look at zte as a china brand," he says. "the core technology in our product is from u.s. companies like qualcomm, texas in- struments, and google." besides, says william plummer, huawei's washing- ton-based vice president for external affairs, americans understand that many of their favorite brands rely on chinese factories run by foxconn and other low-cost manufacturers. "wheth- er it's an apple device, a nokia device, or a huawei device," he says, "they're probably all built by foxconn." —bruce einhorn the bottom line china's biggest brands are often unknowns in the u.s. many of them are trying to change that and finding it challenging. copyright of bloomberg businessweek is the property of bloomberg, l.p. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. however, users may print, download, or email articles for individual use. sport="" and="" li-ning="" are="" intent="" on="" establishing="" an="" american="" beachhead.="" given="" the="" strong="" home="" market="" for="" made-in-china="" brands,="" why="" bother?="" one="" reason:="" the="" sheer="" market="" size="" and="" affluence="" that="" makes="" the="" u.s.="" a="" vora-="" cious="" buyer="" ofthe="" higher-value="" goods="" chinese="" multinationals="" want="" to="" create.="" "zte="" wants="" to="" be="" one="" ofthe="" top="" telecom="" vendors="" in="" the="" world,="" [and]="" we="" cannot="" have="" a="" top="" position="" without="" success="" in="" the="" u.s.="" market,"="" says="" lixin="" cheng,="" chief="" executive="" oflicer="" of="" zte's="" u.s.="" operation.="" li-ning,="" named="" for="" the="" olympic="" gym-="" nastics="" gold="" medalist,="" had="" disappoint-="" ing="" sales="" when="" it="" opened="" a="" retail="" store="" on="" the="" west="" coast,="" but="" it's="" not="" giving="" up.="" it's="" shifting="" its="" focus="" to="" online="" sales="" in="" the="" u.s.="" through="" digital="" li-ning,="" a="" joint="" venture="" with="" chicago-based="" marketing="" firm="" aoquity="" group.="" says="" ray="" grady,="" the="" venture's="" general="" manager:="" "to="" be="" a="" global="" brand,="" you="" have="" to="" show="" up="" and="" be="" relevant="" in="" the="" u.s."="" the="" most="" successful="" chinese="" com-="" pany="" to="" do="" that="" so="" far="" is="" lenovo.="" it's="" the="" world's="" no.="" 2="" pc="" vendor,="" behind="" only="" hewlett-packard,="" albeit="" largely="" due="" to="" its="" strength="" in="" china.="" in="" 2005,="" lenovo="" bought="" ibm's="" pc="" business,="" but="" by="" 2009,="" its="" u.s.="" market="" had="" dropped="" by="" almost="" a="" third,="" to="" 3.4="" percent,="" as="" it="" lost="" busi-="" ness="" to="" apple="" and="" low-cost="" taiwan-="" ese="" rivals="" such="" as="" acer="" and="" asustek.="" to="" woo="" u.s.="" consumers,="" lenovo="" has="" begun="" a="" makeover.="" because="" of="" their="" ibm="" heritage,="" thinkpads="" have="" been="" popu-="" lar="" among="" corporate="" it="" managers="" who="" bought="" the="" dull-but-reliable="" laptops="" in="" bulk="" for="" employees.="" the="" goal="" now="" is="" to="" create="" a="" cooler,="" younger="" image="" aimed="" at="" consumers="" so="" lenovo="" can="" be="" "a="" brand="" that="" is="" desired,="" not="" just="" dictated,"="" says="" jeff="" meredith,="" vice="" president="" for="" marketing.="" the="" campaign="" was="" started="" last="" year="" with="" print="" ads="" and="" online="" videos="" featur-="" ing="" urban="" hipsters="" and="" thrill="" seekers="" doing="" things="" like="" booting="" up="" a="" think-="" pad="" while="" skydiving.="" lenovo="" on="" july="" 25="" unveiled="" a="" three-year="" sponsorship="" deal="" with="" the="" national="" football="" league="" that="" "gives="" us="" a="" tremendous="" new="" forum="" to="" introduce="" consumers="" to="" our="" products="" and="" brand,"="" said="" david="" schmoock,="" pres-="" ident="" of="" lenovo="" north="" america.="" the="" consumer="" focus="" is="" paying="" off:="" leno-="" vo's="" unit="" sales="" in="" the="" u.s.="" grew="" 6.1="" per-="" cent="" in="" the="" second="" quarter="" compared="" with="" a="" 10.6="" percent="" decline="" for="" the="" u.s.="" pc="" market,="" reports="" market="" researcher="" idc.="" that="" gave="" lenovo="" an="" 8="" percent="" u.s.="" market="" share,="" its="" largest="" ever.="" huawei="" has="" partnered="" with="" carriers="" ivietropcs="" communications="" and="" leap="" wireless="" international="" to="" sell="" cheap="" smartphones="" and="" is="" making="" inroads="" with="" first-tier="" players="" such="" as="" t-mobile,="" which="" is="" working="" with="" the="" chinese="" com-="" pany="" on="" two="" handsets.="" zte="" had="" 4.8="" per-="" cent="" market="" share="" in="" the="" first="" quarter="" of="" the="" year,="" according="" to="" ceo="" cheng,="" put-="" ting="" it="" no.="" 6="" in="" u.s.="" handsets.="" in="" 2011,="" zte="" introduced="" 11="" models="" for="" the="" u.s.;="" this="" year="" it="" will="" launch="" 18="" more.="" as="" recently="" as="" 2010,="" buyers="" would="" have="" had="" a="" hard="" time="" knowing="" zte="" made="" their="" phones="" since="" its="" handsets="" carried="" only="" its="" wireless="" customers'="" names.="" now,="" cheng="" says="" 90="" percent="" of="" zte="" gear="" sold="" in="" the="" u.s.="" has="" the="" zte="" name,="" so="" american="" consumers="" "can="" start="" to="" learn="" our="" brand."="" moving="" into="" more="" fashion-driven="" in-="" dustries="" could="" be="" tougher.="" peak="" sport,="" whose="" athletic="" footwear="" is="" sold="" in="" more="" than="" 6,000="" stores="" in="" china,="" this="" winter="" opened="" a="" 3,000-square-foot="" store="" in="" culver="" city,="" calif.,="" and="" another="" in="" houjrwood="" showcasing="" its="" shoes.="" they="" rising="" profiles="" beyond="" the="" mainland="" some="" of="" china's="" largest="" brands="" are="" making="" more="" money="" abroad="" than="" at="" home="" share="" of="" annual="" revenue="" china="" .rest="" of="" the="" world="" huawei="" ($29.4b="" total)="" lenovo="" ($29.6b)="" peak="" sport="" ($682m)="" are="" the="" first="" steps="" in="" a="" plan="" to="" roll="" out="" flagship="" stores="" nationwide="" while="" also="" trying="" to="" win="" shelf="" space="" in="" u.s.="" chains="" such="" as="" foot="" locker.="" in="" march="" the="" chi-="" nese="" company="" became="" a="" sponsor="" of="" the="" drew="" league,="" for="" young="" basketball="" players="" in="" southern="" california,="" to="" raise="" its="" profile.="" "consumers="" want="" new="" brands,"="" says="" sujia,="" head="" of="" peak's="" u.s.="" unit.="" "they="" say="" everyday="" it's="" just="" nike="" and="" adidas.="" it's="" boring.="" consumers="" don't="" care="" where="" you="" come="" from."="" still,="" peak="" doesn't="" draw="" attention="" to="" its="" chinese="" roots.="" says="" su:="" "if="" you="" just="" focus="" on="" the="" china="" brand,="" people="" will="" think="" it's="" cheaper="" and="" the="" quality="" is="" not="" very="" good."="" having="" brands="" mostly="" at="" the="" low="" end="" ofthe="" market="" is="" a="" long-="" term="" problem="" for="" chinese="" com-="" panies,="" says="" anil="" gupta,="" a="" professor="" at="" the="" university="" of="" maryland's="" robert="" h.="" smith="" school="" of="" business.="" "their="" basis="" of="" comparative="" advantage="" is="" not="" prod-="" uct="" or="" service,="" it's="" lower="" price,"="" he="" says.="" "that="" creates="" a="" challenge="" when="" trying="" to="" build="" a="" brand="" image="" that's="" about="" more="" than="" low="" price."="" korean="" electronics="" brands="" such="" as="" samsung="" and="" lg="" were="" able="" to="" make="" that="" jump,="" thanks="" to="" a="" multidecade="" effort="" to="" boost="" r&d="" and="" match="" what="" rivals="" from="" japan="" could="" offer.="" that="" could="" be="" harder="" for="" the="" chinese="" in="" to-="" day's="" environment.="" "when="" the="" market="" isn't="" growing,"="" says="" gupta,="" "the="" compe-="" tition="" is="" going="" to="" get="" more="" intense."="" zte's="" cheng="" says="" his="" company="" will="" try="" to="" overcome="" any="" resistance="" to="" made-in-china="" brands="" by="" presenting="" itself="" as="" a="" partner="" of="" trusted="" u.s.="" com-="" panies.="" "you="" cannot="" just="" look="" at="" zte="" as="" a="" china="" brand,"="" he="" says.="" "the="" core="" technology="" in="" our="" product="" is="" from="" u.s.="" companies="" like="" qualcomm,="" texas="" in-="" struments,="" and="" google."="" besides,="" says="" william="" plummer,="" huawei's="" washing-="" ton-based="" vice="" president="" for="" external="" affairs,="" americans="" understand="" that="" many="" of="" their="" favorite="" brands="" rely="" on="" chinese="" factories="" run="" by="" foxconn="" and="" other="" low-cost="" manufacturers.="" "wheth-="" er="" it's="" an="" apple="" device,="" a="" nokia="" device,="" or="" a="" huawei="" device,"="" he="" says,="" "they're="" probably="" all="" built="" by="" foxconn."="" —bruce="" einhorn="" the="" bottom="" line="" china's="" biggest="" brands="" are="" often="" unknowns="" in="" the="" u.s.="" many="" of="" them="" are="" trying="" to="" change="" that="" and="" finding="" it="" challenging.="" copyright="" of="" bloomberg="" businessweek="" is="" the="" property="" of="" bloomberg,="" l.p.="" and="" its="" content="" may="" not="" be="" copied="" or="" emailed="" to="" multiple="" sites="" or="" posted="" to="" a="" listserv="" without="" the="" copyright="" holder's="" express="" written="" permission.="" however,="" users="" may="" print,="" download,="" or="" email="" articles="" for="" individual="">
Answered Same DayJun 30, 2021

Answer To: Textbook Discussion Questions: 1. Is the goal of Six Sigma realistic for services such as...

Moumita answered on Jun 30 2021
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Six-sigma is a technique used to improve the process of business and their capabilities. The process believes in increasing the performance by decreasing the variation and helps in controlling the reductions and improving the profits, employee morale and the quality of the product; the lean situation and enhancing the controlling section of the business. Lean six sigma helps in driving out the waste or the non-value-added process or engagements, this promotes more standardizes work and helps in distinguishing between the six sigma and the lean process is not much evident in the modern-day business. Thu the blockbuster video stores implement the goals of the six sigma (Antony, Snee, & Hoerl, 2017). The main objective of six-sigma is to apply the right tool to improve the performance by decreasing other effects in the system of the company. In companies like the blockbuster where the main business depends on proving customers with better service and quality, six-sigma can be...
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