Assignment Final Essay

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Pages: 10
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Solving Problems of Operation Management

Problem Definition and Solutions of QPQ Simulation Game

L. Wu

EXECUTIVE SUMMARY
QPQ is a simulative company which aims to improve participants' understanding of applied system theory. The large difference between the expectations and the actual outcome indicates that serious problems exist in the original linear process, and further adjustments might be necessary to improve the performance.
First of all, the report introduces the purpose and background of the simulation. The QPQ company consists of manager, financial manager, sales, logistics and manufacturing five departments, and supplier is also important for the performance of company. Than the procedure of simulative activity is illustrated. After comparing the actual outcome with expectations and calculating the loss, the failed result leads to the analysis of root causes and solutions.
In the second part, two approaches are used to definite the causes. Firstly, the whole process is analyzed by blackbox method with ignoring the internal function. The input is new orders and the output is completed orders representing new cars. The fact that the process has problems can be ensured through showing the large deviation between input and output. After zooming in the process by aggregation stratum, the deduction that problems are caused by wrong materials, inefficiency of goods receipt and production departments, negligence of sales and quality assurance department can be drawn.
To improve the performance of QPQ, the steady-state model which includes boundary zone is applied. The process is divided into input, regulatory and output boundary and different regulations are used according to respective functions. In consideration of the limitations of steady-state model that merely focuses on one aspect which convert external standards to internal executives, the feedback system is also utilized to build the interaction within the process. And to solve the inefficiency of production, production line is suggested to recombine the labors.

CONTENTS
EXECUTIVE SUMMARY......................................................................................Ⅰ
1 INTRODUCTION..............................................................................................1
2 QPQ SIMULATION COMPANY.....................................................................2 2.1 The structure of the Company.....................................................................2 2.2 The process of the Operation......................................................................2 2.3 The outcome of the Simulation...................................................................3
3 PROBLEM DEFINITION...............................................................................5 3.1 The Process and the Blackbox Approach...................................................5 3.2 The Process and the Aggregation Stratum.................................................6
4 SOLUTIONS AND RECOMMANDATIONS................................................8 4.1 Input Boundary Control..............................................................................8 4.2 Regulatory Boundary Control and Feedback..............................................9 4.3 Output Boundary Control..........................................................................11
5 CONCLUSION................................................................................................12
REFERENCES 13

1 Introduction Applied system theory means to describe and to analyze objects with the intent of understanding, modifying or predicting their structure and behavior to gain the scheduled target through the specific system theory. (Dekkers, 2015). Participated by students, QPQ is a simulative company which imitate the whole process of a real company in selling cars to
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