QUESTION

# Homework help News PIP QUESTION

NEWS understands the issues that they must overcome in terms of quality, speed, and controlling costs.

NEWS believes that the analysis that your team has provided in the last three Excel modules has led to successful strategic plans.

The NEWS BOD would like to understand the probability of this success before granting permission for the CEO to execute the plan.

Data has been gathered on the last 50 process improvement program (PIP) projects that the NEWS BOD had approved.

The BLUE columns describe whether the PIP was initially approved as a quality, speed, or cost control project, or combination. (1 = Yes)

The GREEN columns describe the quality, speed, and \$ results from each project.  Regardless of how the PIP was initially chosen,

the positive or negative results were gathered in terms of quality, speed, and \$ at the end of the project.

The RED column describes the BOD final determination of whether the PIP was successful or not; old BOD criteria was confidential. (1 = Yes)

Question 1:  Using the data given below, complete Task 1.  The BOD would like to know the percentage of PIP projects completed per each category, since their short-term memory

has hindered their ability to remember the percentage that began as an effort to overcome quality, speed, and cost issues.

Also, briefly discuss the PIP success rate attributable to each type of PIP effort based on the BOD's confidential criteria shown only as success or failure Results.

ANSWER:  Quality received a 58%, Speed-58%, Costs 52%, Q&S-24%, Q&C22%, S&C 32%, Q,S,C-10%

The PIP success rate is dependent on whether the project was approved for each category.

Question 2:  Using the data given below, complete Task 2.  NEWS is very proud of their PIP initiative and has briefed the press that their success rate is greater than 50%.

Is this true?  Explain.

The BOD is very concerned about this next process improvement project decision.  It is truly a make or break initiative for the company, and therefore a more conservative set of

success criteria has been provided.  Does the new criteria change the rate of success of past PIP initiatives?  Given this probability of success, what recommendation would you make to the BOD?

ANSWER:  No, It is not true. The NEW PIP success rate is at 22%, which is less than the  <50% that they told the press.

Yes, the new criteria changes the rate of success. NEWS had a higher percentage of PIP success at 46% with the old criteria, compared to lesser PIP success of

22% with the new criteria.  I would suggest they keep the OLD PIP success criteria since it yielded NEWS a higher rate of success with their PIP initiatives.

PIP  Quality  Speed  Costs  Combo  Quality (Defective Free out of 1000)  Speed (Reduction in Days)  Project Cost over 5 Years Results

1              -                  1              -                  2            849               18 \$    18,786.00               1

2               1               1               1               7            969               25 \$   (99,911.00)               1  Task 1:  Calculate Basic Probability of each PIP

3               1              -                 -                  1            375               14 \$(127,462.00)               1  Determine the number of Quality, Speed or Costs projects using the COUNTIF function.

4              -                  1              -                  2              54               25 \$  180,987.00              -     Highlight each BLUE column and use a criteria of 1

5               1               1               1               7            231               19 \$  141,891.00              -     Divide the COUNTIF value by the total number of PIP projects which is 50 to determine % of each.

6              -                  1               1               6            294                  4 \$(337,779.00)               1  Next determine the number of combination projects using the COUNTIFS function.

7              -                  1               1               6            113               18 \$  359,480.00              -     Again, Highlight each BLUE column now in question, and use a criteria of 1; divide value by 50

8              -                  1               1               6            815               25 \$(105,450.00)               1  Find probability of PIP success due to quality, speed or costs or combination using COUNTIFS and COMBO 1-7; divide value by 50

9               1              -                 -                  1              75                  8 \$(358,460.00)               1

10               1              -                  1               5            574               16 \$  204,531.00              -     Count  PIP Percentage  PIP Success

11               1              -                  1               5            581                  4 \$(423,775.00)               1  Quality (1)                2958%22%

12               1              -                  1               5            476               13 \$    27,067.00              -     Speed (2)                2958%12%

13               1               1               1               7            913               15 \$  183,020.00               1  Costs (3)                2652%8%

14              -                  1              -                  2            901               18 \$(189,459.00)               1  Q & S (4)                1224%14%

15              -                  1              -                  2            461               16 \$(440,744.00)               1  Q & C (5)                1122%12%

16              -                 -                  1               3            907               16 \$(121,543.00)               1  S & C (6)                1632%22%

17               1               1               1               7            113                  7 \$  279,995.00              -     Q, S, C (7)                  510%10%

18               1               1              -                  4            836               14 \$  119,375.00               1

19              -                  1               1               6            117               11 \$  258,624.00              -      Task 2:  Calculate Basic Probability Using new BOD Success Criteria

20               1               1              -                  4            140                  2 \$  490,621.00              -     Find the probability of PIP success in Results using the COUNTIF function; divide value by 50

21               1              -                 -                  1            486               12 \$   (29,548.00)              -     PIP Success (OLD) = 46%

22               1               1              -                  4            693               21 \$  429,546.00              -

23              -                  1               1               6            797                  6 \$  321,394.00              -     Given the criticality of this new decision, the BOD has provided conservative PIP success criteria to analyze past projects

24               1              -                  1               5            640                  1 \$  338,079.00              -     Quality  > 300 Defective Free per 1000

25               1              -                  1               5            809               14 \$  127,488.00               1  Speed  > 15 Days Reduced

26               1              -                 -                  1            395               18 \$(452,635.00)               1  Costs  < \$ 200,000 per 5 Years

27              -                  1              -                  2              67               11 \$(153,762.00)              -

28               1               1              -                  4            318                  1 \$   (87,959.00)              -     Find probability of PIP success using COUNTIFS due to new BOD quality, speed or costs criteria.

29               1              -                 -                  1            892               22 \$  114,534.00               1

30              -                  1               1               6            241               25 \$(155,861.00)              -     PIP Success (NEW) = 22%

31              -                  1               1               6            672               12 \$(365,375.00)               1

32              -                 -                  1               3            367                  1 \$   (47,545.00)              -

33               1               1               1               7            441               19 \$   (54,337.00)              -

34               1               1              -                  4            312               11 \$   (25,565.00)              -

35              -                  1              -                  2            741                  7 \$  218,901.00               1

36               1              -                 -                  1            152               15 \$(174,572.00)              -

37               1              -                 -                  1            421               14 \$  364,862.00              -

38              -                  1               1               6            664               18 \$(285,424.00)               1

39               1              -                 -                  1            394               17 \$    11,445.00              -

40              -                  1               1               6            342               15 \$  381,951.00              -

41               1              -                  1               5            495                  6 \$(364,384.00)               1

42              -                  1               1               6            138               10 \$  126,225.00              -

43              -                 -                  1               3            497               13 \$  314,030.00              -

44               1              -                 -                  1            600                  8 \$(204,767.00)               1

45               1              -                 -                  1              70                  9 \$(360,997.00)               1

46               1               1              -                  4            328               17 \$  312,224.00              -

47               1              -                 -                  1            738               11 \$  395,810.00              -

48              -                  1               1               6            282               17 \$(437,307.00)               1

49              -                 -                  1               3            905                  7 \$  376,547.00              -

50               1               1              -                  4            220                  5 \$(183,168.00)               1

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