nit 8: Assignment
One of the key elements in realizing benefits is the establishment of a baseline. Your book
suggests that the completion of metrics is an essential step at the time of modeling the current
processes, and it is this baseline from which improvements are measured. In this Assignment,
you will apply this concept to your project. You will also carry out a mathematical analysis of a
fictional situation and make a determination about success.
To help you prepare for the Assignment, please view this Kaplan Math Center video on
percentages on “Interpreting Percentage Problems.”
For this Assignment, answer the following questions (use the subheadings/numbered questions
below to organize your paper):
Question 1 – Establishing baselines
In Unit 1, you described the goals for the organization and in Unit 2 you described how the
process you selected supports the company strategies. In Unit 4, you talked about some
specific goals for your project. In Unit 5, you selected metrics that would be used in establishing
a baseline. In this unit, revisit the metrics that you selected for your baseline. For each metric,
clearly discuss the following:
1) Describe what the metric is. How is it calculated and used currently?
2) What kind of a change in this metric would constitute success for your project? How did
you arrive at this figure? If this target change figure is not possible to estimate now, then
describe how you would compute it if you were actually carrying out this project. Who
would be involved and where would the data come from?
Question 2 – Case analysis
Read the following case study and answer the questions at the end.
In 2009 it was decided that ABC Tire Company would implement a BPM project with the goal to
decrease the manufacturing cost per tire and increase revenue from each tire sold.
To track the success (or failure) of the project they determined the following baseline data for
Total # of
Price Per Tire
22,594 $21.23 $12.67 $119.00 $85.10
After implementing the BPM project ABC Tire Company reviewed the value of the project after a
year and identified the following information:
Total # of Tires
Average Retail Price Per
27,669 $672,080.32 $313,280.56 $122.13
Using the data provided above calculate and fill in the following table:
% Increase or
% Increase or
Labor cost Per
% Increase or
Address the following questions:
1. Why it is important to ensure baseline data is accurate?
2. Was the project successful?
Directions for Submitting Your Project
Before you submit your project, you should save your work on your computer in a location and
with a file name per the Syllabus naming convention. Make sure your project is in the
appropriate format (Microsoft Excel® .xls file/ Microsoft Word document); then, when you are
ready, you may submit on the Dropbox page.
Grading note: In the grading rubric below, you will see a section on analysis and critical
thinking. The points in this section will partly be based on your ability to apply the concepts
discussed in your assignment to the specific circumstances and details of the
process/organization you selected. Writing in general terms without applying the concepts and
analyzing your specific project may get you points in the content section, but you will lose points
in the analysis section.
Review the grading rubric below before beginning this activity.
Assignment grading rubric = 60 points