Assignment: Planning Quality for PSI Worth 15% of MGMT4015 Course Grade Company Background Plastic Services Inc (PSI) is a Toronto based manufacturer of plastic products. Founded in 2005, PSI began...

Assignment: Planning Quality for PSI
Worth 15% of MGMT4015 Course Grade
Company Background
Plastic Services Inc (PSI) is a Toronto based manufacturer of plastic products. Founded in 2005, PSI began as a pioneering producer of recyclable plastic cutlery for local restaurants. Through sustained growth and capital reinvestment, PSI expanded its production capabilities to capture a larger share of the consumer plastic goods market. PSI’s cu
ent line of plastic goods include cutlery, food containers, water bottles, and cups. PSI has a total workforce of 600 staff spread across five departments (refer to Appendix A for organization chart).
Scenario
Like many other companies, the emergence of COVID-19 dealt a heavy blow to PSI. The demand for their line of plastic products sharply declined as consumer spending behavior shifted towards other consumer products such as toilet paper, hand sanitizer, and hair care products. By the second month of the pandemic, PSI was forced to lay off 40% of its workforce to maintain operations.
In light of dwindling sales and slumping demand, Nam Shah, the PSI CEO, convened a meeting with the five department directors to present a new business plan. The surge in demand for Personal Protective Equipment (PPE) for front-line health workers and essential businesses has created a supply shortage in the market. This has created a public health threat for the provincial government of Ontario. To rectify the threat, the Government of Ontario invoked an emergency powers act restricting the sale and export of PPEs to only the province of Ontario. To further mitigate against the threat, the Government of Ontario also issued special grants for eligible companies capable of producing PPEs. Nam’s proposal is to modify PSI’s cu
ent production line to make face shields and transparent ba
iers. In order to be eligible for the grant and capitalize on the supply shortage, PSI will need to begin production within one month and requires the participation and coordination of all five departments. All five department directors pledged their support for Nam’s proposal and nominate their departmental managers to serve as members of an executive steering committee. This committee is tasked with identifying and assigning resources to support the project. PSI has contracted you as a project manager to plan, manage, and execute Nam’s business plan. The target market includes hospitals, medical offices, grocery stores, and other essential businesses.
Points to Conside
· PSI will need to ramp up its production to 100% pre-COVID capacity in order to meet the very tight timeline
· Engineering has indicated that it can modify its cu
ent production line to manufacture the proposed products, but requires a different type of plastic than it cu
ently uses for its suite of finished plastic products
· Health & Safety has indicated that the cu
ent production floor setup has staff working in close proximity to each other and does not conform to the social distancing measures
Hospitals and medical offices are not typical customers, Sales & Marketing will need to establish new customer contacts and secure purchase orders
Plan Quality Assignment
As the project manager, you are responsible for planning the quality requirements for the project. You will develop and present the quality requirements to the executive steering committee for review. The quality requirements will be delivered as a PowerPoint presentation and should concisely convey the results of the below activities. Your PowerPoint presentation should not exceed ten slides in total.
Note: The results of all three parts of this assignment must be included in your PowerPoint presentation.
PowerPoint Presentation Tips
· Include an agenda of topics to be addressed in the presentation
· Be
ief and concise ensuring that your slides do not have too much writing
· Use charts, diagrams, or pictures where necessary
· Have an eye to make the presentation aesthetically pleasing in order to engage your audience
Part 1 – Quality Requirements Development
Brainstorm a list of quality requirements for the face shield and transparent ba
ier. From your list, select the top two for each of the products (two for the face shield and two for the transparent ba
ier). For each quality requirement you will also need to describe how you will measure/verify that the quality requirement has been met.
Example
    Product
    Quality Requirement
    Verification
    Face shield
    Transparent plastic shield should be 25 cm in length and 38 cm in width
    Transparent plastic shield to be measured with a tape measure after being cut and prior to being curved
Part 2 – Cost Benefit Recommendation
PSI has two important purchasing decisions to make in support of the project. As the project manager, you must perform a cost-benefit analysis to determine which of the options best support the project’s objectives. As part of your analysis, provide supporting reasons for your recommendations.
Purchase Scenario #1: Asset Purchase vs Asset Modification
In order to produce the face shields and transparent ba
iers products, PSI must make changes to its production line. It can do so in one of two ways:
Option 1: Re-engineer its cu
ent machinery
Deema Yahya, the machine engineer, has indicated that her team can re-engineer the cu
ent machinery to produce the face shields and transparent ba
iers. Deema has estimated the cost at $45,000, plus an additional $5,000 for parts. The estimated time, including installation and testing, is 8 weeks.
Option 2: Purchase and install a new machine
Aman Rakkar, the senior buyer, in consultation with Amir Taza, the manager of Engineering, has identified a machine available for purchase that will be able to produce the face shields and transparent ba
ier. The purchase of the machine would cost $70,000, plus an additional $10,000 for installation. The estimated time to purchase, install, and test is 2 weeks.
Purchase Scenario #2: Plastics Suppliers
Aman Rakkar has obtained quotes from two wholesale plastics suppliers in order to produce the face shields and transparent ba
iers. To meet the anticipated consumer demand, Aman calculates that PSI will need 900 kg of plastic per month for the next 6 months.
Supplier #1: B2B Plastics
B2B Plastics can supply 1200 kg of high-density plastic at a discounted price of $35,000 for the first month. After which the price per 1200 kg will be $43,000 for all subsequent months. The quality of the plastic offered can only be used to produce the new plastic products.
Supplier #2: Global Plastics
Global Plastics can supply 1000 kg of low-density plastic at a standard price of $40,000. The quality of the plastic offered means it can also be used to produce PSI’s standard suite of plastic products.
Note: Partial contracts are not permissible.
Part 3 – Cost of Quality
Your final task is to determine the cost of quality for producing the face shields and transparent ba
iers. The table below lists al the types of costs along with their co
esponding amount. Your task is to do the following:
(1) Classify each of the costs according to their appropriate quality category (prevention, appraisal, etc)
(2) Calculate the cost of each quality category
(3) Determine the total cost of quality
    Type of Cost
    Amount
    Inspection of procured supplier plastic
    $8,000
    Customer refund for defective face shield band
    $10,000
    Face shield machine operation training
    $15,000
    Discard and re-design transparent ba
ier mounts to better stabilize weight of transparent ba
ie
    $35,000
    Document end-to-end face shield production process
    $2,000
    Face shield machine re-tooling to fix screen curvature
    $45,000
    Transparent ba
ier machine operation training
    $9,000
    Stress testing of adjustable band on face shield
    $15,000
Appendix A: PSI Organization Chart
Manage
Engineering
Amir Taza
Manage
Manufacturing
Rusty Tam
Manage
Distribution
Munir Ali
Manage
Health & Safety
Kira Khan
Manage
Hiring & Recruitment
Faith Weitz
Manage
Finance
Manish Tanna
Manage
Procurement
Sheila Duong
Chief Executive
Office
Nam Shah
Director
Operations
Catina Getz
Directo
Financial Services
Gagan Singh
Directo
Human Resources
Lester Lo
Directo
Sales & Marketing
Colby Davila
Directo
IT
Jahdo Simms
Manage
Corporate Sales
Grace Goldberg
Manage
Marketing
Tamir Johnson
Manage
Enterprise Systems
Taylor Balh
Logistics Analyst
Brant Mann
Production Specialist
Dario Reed
Machine Enginee
Deema Yahya
Talent Recruite
Tim Borg
Safety Coordinato
Elisa Stone
Finance Analyst
Tango Dupree
Senior Buye
Aman Rakka
Sales Lead
Osama Rome
Brand Specialist
Kim Park
Systems Analyst
Gloria Cortez
Amir TazaManagerEngineeringRusty TamManagerManufacturingMunir AliManagerDistributionKira KhanManagerHealth & SafetyFaith WeitzManagerHiring & RecruitmentManish TannaManagerFinanceSheila DuongManagerProcurementNam ShahChief ExecutiveOfficerCatina GetzDirector OperationsGagan SinghDirectorFinancial ServicesLester LoDirectorHuman ResourcesColby DavilaDirectorSales & MarketingJahdo SimmsDirectorITGrace GoldbergManagerCorporate SalesTamir JohnsonManagerMarketingTaylor BalhManagerEnterprise SystemsBrant MannLogistics AnalystDario ReedProduction SpecialistDeema YahyaMachine EngineerTim BorgTalent RecruiterElisa StoneSafety CoordinatorTango DupreeFinance AnalystAman RakkarSenior BuyerOsama RomeSales LeadKim ParkBrand SpecialistGloria CortezSystems Analyst

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  A B C D
Demonstration
of conceptual
understanding
XXXXXXXXXX%) - 12
(80.00%)
● More than 2
quality
equirements
de�ned for each
of the two plastic
products with its
co
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veri�cation
means ● All
quality
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co
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veri�cation are
clear, concise, and
necessary ● Both
cost bene�t
ecommendations
are supported by
strong business
easons and
co
ect cost
ene�t
calculations ● All
costs in the cost
of quality part are
assigned the
co
ect quality
category ● All
quality category
costs are co
ectly
calculated ● The
total cost of
XXXXXXXXXX%) - 10
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● Exactly 2 quality
equirements
de�ned for each
of the two plastic
products with its
co
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veri�cation
means ● Most
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co
esponding
veri�cation are
clear, concise, and
necessary ● Both
cost bene�t
ecommendations
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good business
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co
ect cost
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calculations ●
Most costs in the
cost of quality
part are assigned
the co
ect quality
category ● Most
quality category
costs are co
ectly
calculated ● The
total cost of
quality is co
ectly
calculated
XXXXXXXXXX%) - 8
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● Exactly 2 quality
equirements
de�ned for each
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products with its
co
esponding
veri�cation
means ● Some
quality
equirements and
co
esponding
veri�cation are
clear, concise, and
necessary ● Both
cost bene�t
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Some costs in the
cost of quality
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XXXXXXXXXX%
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total cost of
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Name: Planning Quality Assignment Ru
ic
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  A B C D
quality is co
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calculated
Quality of
PowerPoint
Presentation
XXXXXXXXXX%) - 3
(20.00%)
● Written in
usiness
appropriate
language. Mino
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spelling ● No
more than 10
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agenda, and
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Written content is
succinct and
clearly conveys
meaning ●
Exceptionally
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supplement
written content ●
Exceptional use of
aesthetics,
complimentary
colors, and
spacing to create
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XXXXXXXXXX%) - 2.5
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● Mostly written
in business
appropriate
language. Few
grammar and
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11-12 slides in
total ● Contains
an introductory
slide and agenda
● Most written
content is
succinct and
clearly conveys
meaning ●
E�ective use of
diagrams, charts,
and/or pictures to
supplement
written content ●
Good use of
aesthetics,
complimentary
colors, and
spacing to create
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● Mostly written
in non-business
appropriate
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grammar and
spelling e
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More than 12
slides in total o
too few slides ●
Contains an
agenda, but no
introductory slide
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content is
succinct and
clearly conveys
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Limited use of
diagrams, charts,
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supplement
written content ●
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colors, and
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use of aesth
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an engaging
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Name:Planning Quality Assignment Ru
ic
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