Alternative Process Design

Alternative Process Design, Cross Cultural Decision-Making and Learning Curve Concepts

The supplier of the control chip on the keyless entry fob manufacturer has an on time delivery rate of 80%, while the rest of the parts are supplied on or before the scheduled delivery dates. This paper reexamines the original assumptions based on this new information, discusses an alternative to the original process design, how the location of the supplier affects the evaluation process, and discusses the cultural factors that may impact the planning and decision-making.

To consider an alternative to the process designed originally, there are several factors to consider in the evaluation process namely: the political-economic situation, infrastructure including technology capability, port-terminal integration, financial background, and performance history of the alternative suppliers. Also, cultural differences between the two organizations due to the location of the control unit supplier in Taiwan can influence the evaluation process.

Cultural Business Factors

Businesses operating in Asian countries build mutual trust between different parties before embarking on business decisions. This approach is not common for American business negotiators, who waste no time in getting down to business and making progress. When interacting with Asian suppliers, such an approach can be damaging and harmful to the evaluation process. “Another cultural variable that greatly influences the decision-making process is the risk tolerance of those making the decision.” The keyless entry fob manufacturer should consider the risk tolerance of the decision makers as “compared with Taiwanese, Americans were more likely to advise others to choose a risky option over a safer alternative”

Statistical Process Control

“Statistical Process Control (SPC) involves testing a random sample of output from a process to determine whether the process is producing items within a preselected range." Variable measurements with ¬¬¬ and R charts are used evaluate control on processes. Using SPC, the automotive keyless entry fob manufacturer can conclude if the process is manufacturing items within a prescribed range. This evaluation process is known as sampling by variables. Variable sampling for our case of the evaluation process is including measuring the volume of labor hour used to make end product.

Initial