By JAMES B. STEWART
Airline executives’ comments about “discipline,” meaning limiting flights and seats, could be interpreted as invitations to restrict capacity increases to keep fares high.
Published: June 11, 2015 at 08:00PM
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By CHERYL JENSEN
While the auto industry over all improved by 3 percent in initial quality, South Korean automakers improved by 11 percent, the J.D. Power study showed.
Published: June 18, 2015 at 08:00PM
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By MICHAEL J. de la MERCED
The maker of wearable fitness-tracking devices raised $732 million and is valued at $4.1 billion.
Published: June 17, 2015 at 08:00PM
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Exhibit I – 1978 Equivalent U.S. Costs Using 1980 Base U.S. Dollars
Exhibit II – 1981 Equivalent U.S. Costs Using 1980 Base U.S. Dollars
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Volvo observed a glint of weakness in the SUV market and decided to take advantage of the situation by offering a product which provides everything the top sport utility sellers have, but with a safer design. The anxiety in the consumer market fuelled 6000 orders for the new Volvo XC90 even before one customer got behind the wheel for a test drive, which falls into the same category of knee jerk demand which occurred when consumers started buying bomb shelters during the Cuban missile crisis. The reason Volvo is already so successful centers on the competitive alternatives offered in the same niche market and how the XC90 SUV acts as a substitute. Specifically Volvo centered it’s product to compete with the Acura MDX, Lexus RX 300, Mercedes ML320 and the BMW X5, focusing of high end SUV consumers who are looking to drive with a good conscience. The table below compares top consumer preferences from a first glance perspective, and how the Volvo XC90 ranks in this niche.
The highlights in the table under the Volvo column are shaded green where Volvo was 1st in class for the category and yellow it was comparable to it’s substitutes. Notice how the price is the only comparison that is red, Volvo knows that they have a differential factor focused on safety and therefore the price their vehicle with that in mind. The Volvo out prices the status symbol conscious M-class and the high performance BMW, making safety an investment rather than just another option.
Loyalty versus Price Elasticity:
The ability for Volvo to charge a premium price for it’s product is directly related to the strength of the substitutes available for the SUV. The current SUV has direct
replacements for performance and status, however Volvo has patented is safety features and is using driver anxiety over death or protecting children as a fairly elastic lever to set their prices higher than the market competition. Drivers of the XC90 develop a utility function that is not quenched by any other vehicle in the market due to the Volvo patents for safety designs. A person with children typically has a high utility for options that will keep them safe which increased the price elasticity of the safety feature.
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Benefits:
Use Process Capability analysis to answer questions such as:
Analyze Phase Deliverables typically include:
Analyze Phase Tools
Cause and Effects Matrix
Purpose: This tool is used to understand and satisfy customer needs. It does so by transferring often vague and general requirements into process parameters. The tool helps the team develop an understanding of the greatest sources of variation within the process and pinpoints the critical few key process input variables (KPIVs) that must be addressed to improve the key process output variables (KPOVs).
Application: It should be used to prioritize process input variables (X’s). This is usually done with large processes prior to performing an FMEA. It helps narrow the choice of FMEA project area.
Critical X’s
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Our upper management focuses on addressing gaps in operations by constructing Alcan’s Best Practice Network teams. Middle managers then have employees participate in the Best Practice teams to gain exposure to available new Best Practices. Team members are tasked with taking the Best Practice back to operations and leading the implementation.
As project teams develop solutions, we want to take advantage of them and share these new standard methodologies throughout the entire organization. The mechanism for sharing these is called the Best Practice Networks. ProjX, the online CI database, can help us see what solutions already exist.
Alcan Packaging is large and has many facilities and businesses worldwide. Each of our businesses has developed methodologies or processes to improve market competitiveness. Best Practice Networks allow the entire company to benefit from lessons we have learned from individual projects completed at every level of our organization. How we all leverage what we’ve learned can benefit the entire company.
Our Best Practices methodology focuses on finding projects that maximize value and then implements them across the organization. The Best Practice Network allows us managers to reference and even shop for proven systems successes so we can implement them to benefit our business. Please note: Improvement can be made even if a current Best Practice is being used or if an operation is considered a Best Practice site. This process is perpetual, and CI tools help us to continually re-evaluate our systems and methods to maximize value even if we are a “Best in Class” facility.
A Best Practice is an existing practice or process that is transferable. It represents a significant and demonstrated improvement.
It is:
Any practice, knowledge, know-how or experience that has been proven valuable or effective within one organization and may apply to other organizations. It has been successfully demonstrated (even locally), is sharable and transferable (with limited delay) and is beneficial (measurable and tied to key priorities).
It is not:
Just an idea, a brand-new concept or an R&D project.
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