MNO2602 ASSIGNMENT 5 POE ASSIGNEMNT 2025 Question 1[42 marks] 2 1.1. By globalising, organisations considerably change their physical environment, the task environment, and the social environment. Explain the social environment of a globalising organisat

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Table of Contents
Question 1[42 marks] .................................................................................................... 5


1.1. By globalising, organisations considerably change their physical environment, the task
environment, and the social environment. Explain the social environment of a globalising
organisation. (2) ............................................................................................................ 5


1.2. Describe the difference between prevention, appraisal, and failure (PAF) costs. (3) ..... 5


1.3. Briefly explain the various forms of this power. (5) ..................................................... 7

1.4. A guarantee takes into account customer rights and promotes the confidence about the
purchase of the product. Discuss the conditions that a guarantee should adhere to. (5) ..... 9


1.5. The CEO of your company asked you to explain “service blueprinting” to the board of
directors. Write a short report on this topic. (4) .............................................................. 10


Core Elements of a Service Blueprint ............................................................................ 11


Benefits and Strategic Value ........................................................................................ 12


1.6. The third step in the product development process includes a technology feasibility
statement. What issues does the technology feasibility statement assess? (5) ................ 14


Necessary Parameters for Performance ........................................................................ 15

Manufacturing Imperatives .......................................................................................... 15


Limitations in the Physics of Materials .......................................................................... 15


Special Considerations and Constraints ....................................................................... 15


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Changes in Manufacturing Technologies and Quality Conditions .................................... 15


1.7. Briefly explain Garvin’s five definitions of quality. (5)] ............................................... 16

Transcendent Definition .............................................................................................. 16


Product-Based Definition ............................................................................................ 16


User-Based Definition ................................................................................................. 16


Manufacturing-Based Definition................................................................................... 16

Value-Based Definition ................................................................................................ 16


1.8. Distinguish between services and manufactured goods. (5) ..................................... 17


Intangibility................................................................................................................. 17


Heterogeneity (Inconsistency)...................................................................................... 17

Customer Contact and Co-Production ......................................................................... 17


Simultaneity of Production and Consumption ............................................................... 17


Liability and Professional Standards ............................................................................. 18


1.9. Discuss any five of the most commonly benchmarked performance measures. (5) ... 18


Financial Ratios .......................................................................................................... 19

Productivity Ratios ...................................................................................................... 19


Customer-Related Results........................................................................................... 19


Quality Measures ........................................................................................................ 19
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Market Share Data ...................................................................................................... 20


1.10. Briefly discuss the first three building blocks for a system of quality improvement. (3)
.................................................................................................................................. 20

People........................................................................................................................ 20


(Leadership) Organizational Learning and Knowledge .................................................... 21


Culture ....................................................................................................................... 21

Question 2 [28 marks] ................................................................................................. 22


2.1 Draw a Pareto chart and point out how it reflects the 80/20 principle. (4) ................... 22

2.2 Consider a single sampling plan with n = 50 and c = 3. .............................................. 25


(a) Construct an OC curve for this sampling plan. (4) ..................................................... 25


(b) Suppose that AQL = 2%. Determine the producer’s risk. ............................................ 27


2.3 Construct a histogram in order to present the quality manager of Luigi Bikes Inc. with a
graphical representation of the data. (4)........................................................................ 27

2.4 Calculate the control limits for an xchart, based on the range. (5) .............................. 29


2.5 Determine the reliability of the system .................................................................... 34


2.6 The control limits for a p chart ................................................................................ 35


References ................................................................................................................. 37




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