Arden University BUS5002D: Business Process Case Study - Amazon Inc.

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Case Study
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This case study examines Amazon's business processes, focusing on quality management approaches like Lean and Six Sigma, and the application of Kaizen. It explores methods for measuring project success, including the traditional 'iron triangle' and expanded models considering customer satisfaction and business performance. The study delves into principles of effective project management, such as formal structures and project sponsorship. It identifies techniques for process improvement, illustrated by Amazon's practices, and discusses growth opportunities and implementation plans. The case study highlights Amazon's operational efficiency, particularly in its distribution network, and its use of the 5S system for continuous improvement. The report also emphasizes the importance of adapting project performance models to meet specific outcome measures and the significance of customer satisfaction as a key driver of business success.
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Business Process Case
Study
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Table of Contents
Introduction......................................................................................................................................3
Approaches to quality management.................................................................................................4
2 a) Approaches to measure project success....................................................................................6
2 b) Principles and examples of effective project management......................................................8
3 a) Techniques of process improvement........................................................................................9
3 b) Application of techniques within Amazon.............................................................................11
4 a) Growth opportunities..............................................................................................................13
4 b) Implementation plan...............................................................................................................13
Conclusion.....................................................................................................................................15
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Introduction
Managing business processes is a big complication for many societies. Several entrepreneurs
expect it to be a huge or just great expense for gigantic bikes. Be that as it may, BPM is
important no matter the size of your business. This is an authoritative handbook to deal with your
computer-aided business steps. It is up to each office in an organization to take raw material or
information and turn it into something different. There may be at least a dozen basic circles that
each region governs.
Business process sometimes leave chaotic and unsystematic, without the power of temptation. At
an individual level, individuals see only a piece of a circle and few can explore and see the full
impact of an interaction, where it begins and ends, the key information that necessary, and where
the bottles and the expected deficiencies are. Despite the fact that BPM initially focused on the
automation of business measures using data innovation, it has since been expanded to include
human circles where human connection occurs according to or in letters with the use of
innovation. For example, work process management structures may reduce individual advances
that require the transfer of human instinct or judgment to relevant people and different initiatives
in a work process to an appropriate robotic structure.
For this report the chosen company is Amazon, and total quality management has been applied
within the context of Amazon Inc. Amazon and its various administrations are supported by
customers. In the UK, for example, Amazon's web contracts have multiplied since 2013 and so
far the country is Amazon's second largest market in Europe after Germany. Furthermore, the
UK is the main European area where Amazon has the largest number of distribution operators. In
the UK, the organization works on its production and coordination network as Amazon UK
Services Ltd., earning over £ 70 million as of December 2018. The number of Amazon UK
Services employees remains at 22 miles, which is many times higher than 10 years ago.
Amazon's performance in the UK market is not limited to online sales and internet business.
Amazon Prime Video is currently the second largest management of video-on-demand
subscriptions among UK shoppers. In the long run, the number of British households buying
Prime Video has improved significantly, from around 5,000,000 in 2018 to around 8,000,000
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customers in 2020. Netflix, Amazon's closest competitor in the SVoD market, boasts around 13
million fans in this country.
Approaches to quality management
Amazon.com Inc.'s. Web-based business performance depends on the high performance of the
board of directors (OM), which directly determines profitability. As a key player in the web-
based business, Amazon is an example of a proven profit margin for outstanding management
efficiency.
1. Theories on quality management
To address the nature of the object and their administrations to meet the customer's assumptions
and needs. Amazon confirmed both the Lean approach and the Six Sigma approach as key
methods.
1.1 Lean Approach
The term "lean" was used to describe the creation of the Toyota Company table frame. This is a
hypothesis that involves expanding consumer motivation by reducing the amount of business
wasted. For example, try to reduce inquiry and shipping times or offer comprehensive help with
inquiry and delivery.
This new Kindle plan has made the Kindle easier to maintain and more like a real book. Today,
the latest version of the Kindle is the Kindle Paper which weighs around 206g with a 6-inch
screen, light work and long-lasting battery at a self-contained cost, and more than 1000 digital
books. The most standard Kindle can connect to the web via 3G and Wi-Fi hotspots. (Amazon,
2013) Amazon's ultimate goal is to make the Kindle user experience better than the real book. In
2011, Amazon also released a Kindle Fire tablet to meet several requirements that people can use
to watch movies, surf the web, and more, including books and picture books. Since then,
Amazon has continued to try to build the object to achieve better image quality, and they come in
a variety of sizes to meet specific customer requirements.
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1.2 Product: quality of compatibility
Another aspect of article quality is the nature of compliance - that is, whether the plan and
capabilities of the article are powerful and whether they fit the details and estimates of the
articles. The nature of compliance within a range of flexibilities is considered worthy. The nature
of compliance compares to compliance with details within an appropriate protection area. It is
possible to be very advanced when it comes to building within a narrow range of durability,
using high quality materials and incorporating every conceivable part.
Amazon management and consultants focus on providing size tracking and project management
services that meet customer desire. The organization aims at consensus on requirements and
continuously develops the feasibility of the quality management system in accordance with the
principles of ISO 9000. Following this provision, the Company has established quality objectives
at various levels of usage that are tested annually to ensure continuous improvement in offering
effective administrations to our clients.
1.3 Kaizen Approach
Given that the goal for Amazon’s business is undoubtedly to consistently improve results, it
makes sense that businesses need to develop reliably. At Amazon, Kaizen, the mindset that aims
to increase capacity to coordinate or exceed customer needs, governs how the organization
operates, especially in the distribution space. Its warehouses cycle over 35 orders per second,
marking a near-incredible level of assistance in the outlet. Each rotation area also has a leader to
ensure continuous improvement, overall.
2. Toyota’s total quality management approaches:
2.1 Kaizen:
The best known meaning of quality to date comes from the Japanese word Kaizen, which means
continuous improvement.
The idea was designed with Toyota Motor’s series of lean collection experiences and a
comprehensive quality management framework, which aims to consistently find ways to improve
and achieve results. Kaizen is a Toyota lifestyle.
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Methods for continuous improvement include: income elimination, messaging and transport;
eliminating employee concerns to report problems to their supervisors; final confusion from the
cause base; linking the services between the recipients of the articles or the administration with
their providers; making long-term preparations through academic and numerical protection
instead of quick, minute-by-minute agreements.
2.2 5s system
5S is one of the many well-known reasoning methods of the Toyota Production System (TPS),
which means controlling problems, making things clearer and therefore faster to deal with.
Ultimately, the 5S framework should be integrated into the organization by making it the norm in
the work culture.
Comparison
Toyota, a global leader in outdoor quality management, is renowned for its creative framework
of "Client First" follow-up assembly and configuration. Toyota began introducing quality control
devices as early as the 1930s, long before its competitors. Thanks to Edward Deming’s mastery
and responsibility for continuous improvement, Toyota is today an information center for
organizations around the world.
2 a) Approaches to measure project success
Historically, the progress of the project is reflected in the "iron triangle" of cost, time and
performance. In this "working mind", measurements can be frequent and misleading. While it is
still necessary to meet execution objectives subject to time and money requirements, many
analysts have expanded the familiar notion of business performance.
Pinto (2004) proposed an estimate of 13 executions by estimating that they are ultimately a
group of four components of usability, future control, business performance and capability.
Jugdev and Müller (2005) summarized project performance research by first considering
strategic issues starting with the Iron Triangle and gradually introducing more critical and time-
based future measures. The incomparable results of their study show that performance for both
skill (task) and function (key) should be compared. Monitoring the flows used to drive project
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performance will include the adoption of development models for executive officers, modified
scorecards and performance factors. Project performance is increasingly seen as heterogeneous
and can be seen as different at different life cycle goals of a business.
Undoubtedly, executives see customer satisfaction as a key to business success (Dilts and Pence,
2006). In a mixed strategy study, Dilts and Pence used repeatability, customer loyalty, end user
satisfaction, group satisfaction, partner and supplier satisfaction as ground rules for business
performance. In their review, the steps for improvement did not vary by project or department
type. Shenhar and Dvir (2007) develop Pinto (2004) and Shenhar et al. (2001) to recall the
influence of the risk group as an equally important feature in the performance of an action. In
total, the tool uses 28 elements to measure project performance. Müller and Turner (2007)
recognized that organization and end user satisfaction are key elements.
Scott-Young and Samson (2008) studied capital activity in process firms. They download the
performance models of the project, discovering that the specific methods and practices of the
tasks correspond to different steps to implement the initiatives. Their recommendations include
using larger examples to develop a coherent study, all that is considered, and considering a wider
range of action performance models to capture end-user / end-user performance and
organizational performance. Bryde (2008) used 11-subject project performance measures,
including estimates of more limited term goals such as time, cost, and detail with long-term
visual measures. Geoghegan and Dulewicz (2008) used a 12-element project performance
measure that reconciles practices in the three components of an enterprise movement, ease of use
of results, and robust outcome estimation for clients. Khang and Moe (2008) thought about what
should be cultivated at all stages of the lifecycle and decided to implement the company based on
these five things: influence on those who acquisition, institutional completion, reputation of the
project, promotion of the work done and sustainability of results. The approach that began to
emerge in 2008 is a more experimental approach that considers the various performance
indicators of the tasks; concern for the company's life cycle; and an emphasis on considering
practices that meet specific outcome measures.
Malach-Pines, Dvir and Sadeh (2009) and the tested performance estimates presented by Pinto
(2004) and Shenhar et al. (2001), who presented estimates collected in three variable variables of
meeting modalities, client control and what happened to the company. A key difference,
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however, is that more routine studies found adherence to specific details estimated by cost and
time, not by consumption factors as previous tests revealed.
Devine, Kloppenborg and O’Clock (2010) suggested using a rational scorecard approach to
estimate project performance which would produce more accurate results. This approach
emphasizes that no vision is a priority over customer requirements and suggests that performance
indicators should be considered at all stages of the operational lifecycle. Shao, Müller and Turner
(2010) performed in the six classes of business performance, partner performance, foundation for
the future, productivity, social impacts and organization. Papke-Shields, Beise, and Quan (2010)
used six measures for project performance: cost, time, specific details, quality prerequisites,
customer performance, and business objectives.
2 b) Principles and examples of effective project
management
Status can be identified as a primary law or a covert opinion. As a result, board recruitment
standards are the essential guidelines that should be followed for effective executive
management. There is currently no collection of standards for effective actions in the Project
Management Experience Booklet (PMBOK).
1. Formal structure
It is important that companies have a formal build, including bicycles, procedures and
equipment. If you have ever tried to perform an action without a formal design ("under the
table"), you will realize how difficult it is to control and deliver with the idea that it deserves. A
business should have both a commitment contract and a business plan, just like a designated
business organization. This ensures that it is effectively focused and directed.
2. Project Sponsor
Business support is legitimate for doing business. The supporters are there to support your
business and be a representative for it with various leaders. Strong support can help overcome
situations such as leaving a secret weapon. Having planned support makes it easier to
communicate progress, raise issues, and lead participants through dynamic cycles.
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3. Goals and results
Without clear requirements and approval standards, it will be difficult to determine whether a
commitment is a benefit or not. For example, you might think that you have created programs
that do everything mentioned, just so that your customer or end user has left the key part out of
you. What is most recognizable behind bombing projects is that there are no clear targets.
Business requirements and support standards should be resolved and documented at the
beginning of the work. It is essential to ensure that they are all reviewed and approved by all key
stakeholders, including support and customers.
4. Jobs and responsibilities
There are two structures that should be used to record and identify the roles and responsibilities
of every person involved in a business. For project collaborators, RACI or RASCI is used to
identify responsibilities and assumptions. The letters are as follows: R = Responsibility A =
Responsible S = Signage (not commonly used) C = Consultation I = Involved.
3 a) Techniques of process improvement
Despite the shared goal, each strategy adapts to another. Some systems focus on lean cycling
development methods; others focus on getting your organization’s culture in the right place to
measure improvement. There are also methods to help organizations plan specific work
processes.
Kaizen: Kaizen encourages continuous improvement with a strong emphasis on slim and light
habits. Kaizen is about developing quality, profitability and capacity through small shifts in daily
work or corporate culture to cultivate an atmosphere that does not reject mistakes or mistakes,
but seeks to prevent them from happening again.
5S: The 5S model is important to Kaizen and Lean’s strategies and represents five basic
improvements: aligning, repairing, brightening, customizing and maintaining. The 5S model
offers greater consistency in handling progress and can normalize measurement improvements.
PDCA: Also part of Kaizen’s philosophy, PDCA represents design, manufacturing, control and
action. It helps societies to be more efficient in differentiating measures that need improvement.
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First differentiate the problem (plan), make and implement a solution (do), evaluate the
information for feasibility (confirm) then record the final results and update the configuration if
necessary e fertile (action).
Six Sigma: Six Sigma is a popular cycling development technique that takes employees through
organized jobs using karate belts. You start out as a green belt and become familiar with your
path up to a dark belt. Six Sigma involves two different ways of separating interaction
development through specific advances. These methods include character, measurement,
decomposition, development and control (DMAIC) and character, measurement, analysis, design
and control (DMADV).
Situation Analysis and Logical Outcomes: Another tool created by Six Sigma is cause and effect
analysis, which involves using an explanatory technique to solve problems by differentiating the
problem, detecting roadblocks and identifying the reason for which interaction does not work.
SIPOC Analysis: As a board design that falls within the Six Sigma philosophy, SIPOC analysis
occurs at the "measurement" level of DMAIC or DMADV. SIPOC assists associations in
identifying and establishing an interactive development project as well as identifying pre-
resources and key components before starting.
Value stream mapping (VSM): VSM helps companies address a consumer's perception of a
business circle, which differentiates an estimate of an object, interaction, or administration for
the association. Like various systems, it relies primarily on waste disposal, overcrowding, and
being relatively cramped as expected.
Total Quality Management (TQM): By aiming to improve slow performance through customer
loyalty, TQM helps companies excite the entire organization to develop sustainable interactions.
It is an approach that commits employees to cultivating a culture where manufacturers are
reluctant to make mistakes and are directed towards a common business goal.
Kanban: It is a tool for measuring understanding of the work process that puts specific units,
administrators and representatives on the same wavelength for measurement development.
Another philosophy is that it mixes and promotes the development of the lean cycle.
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Process mapping: Another aspect of the work process that will help organizations define
agreement for the development of the degree is the design of the degree. It can also be referred to
as a bicycle flow chart, a measurement scheme, a utilitarian flow chart, and an interaction model.
Ultimately, this is the way to create a flow chart that provides essential data about the process of
project work from start to finish.
Robotic work in improving the measurement
As the least desirable approach may be to develop measures to eliminate manual labor and
reduce human error, equipment plays a vital role in developing the degree. Equipping the
interaction helps societies understand where they need to improve and what fills them right.
Mechanical interaction automation (RPA) is an interesting issue in robotization, and
organizations have adopted training to smooth the steps. Allows societies to copy human
activities for assignments or measures involved in complex circles. Computing happens through
a series of decisions and motivators that eliminate the need for hard work in specific parts of the
interaction and allow RPA to do what human has recently done.
Some mechanical process developments with RPA include computer e-mail feedback, online
application handling, workplace ticket sorting, information transfer between frames, and action
funding. This not only increases productivity around the industry scale, but also encourages field
experts to focus on slower specifications that computing cannot deal with.
3 b) Application of techniques within Amazon
TQM sees the company as a range of rims. He argues that associations should strive to improve
these visits by consolidating information and meeting staff. The basic goal of TQM is "Do the
right things right the first time, without fail". TQM is factor-free and useless. Although originally
implemented in assembly tasks, and for several years used here, TQM is currently seen as a non-
specific administrative tool, as appropriate in aid and associations. There are different streams of
development, with different domains creating their own forms from the regular distributor.
TQM is primarily concerned with non-stop development that brings everything together to work,
from dynamic level configuration and critical dynamics, to the performance of work items in the
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shop. It arises from the belief that mistakes can be pulled and imperfections can be presented. It
constantly encourages the development of results, as an integral part of the work, thanks to the
continuous development of skills, individuals, bicycles and innovation and machine capabilities.
A first step in TQM performance is to examine Amazon's current reality. Important prerequisites
must relate to the company's set of experiences, current needs, peak times that encourage TQM,
and the current representative nature of working life. If the current reality rules out major pre-
orders, the use of TQM should be discontinued so that the company is in a position where TQM
is likely to be successful.
On the off chance that Amazon doesn't have a history of strong reactions to the climate and on
the off chance that it has had no choice but to effectively change how it works when needed,
TQM will be easier to implement. If a company has been truly responsive and does not have the
ability to improve its executives, it will be both representative and without talent change experts.
If this condition wins, a full program of activists and administrative promotion can be initiated.
Administrative review is a sensible assessment tool for differentiating current levels of
classification activity and areas that need to be changed. The association should be firmly
established before the start of the TQM. Given the lack of important issues, such as a very fragile
subsidy base, powerless regulatory frameworks, a lack of administrative capacity, or an
unassisted spirit of representation, TQM would not be right.
Nonetheless, weight gain tends to be an interesting start to TQM. Individuals need to feel the
need for change. Kanter (1983) addresses this astonishment by representing the building blocks
found in a powerful hierarchical movement. These powers include take-off, emergency or
emergency, main options, single "main actors" and activity vehicles. Routine exercises are
practices, usually at lower levels of society that occur when businessmen move outside of normal
work routines to focus on a problem. An emergency, with a less drastic opportunity, can help
create a desire for swift action that motivates people to take action. As a result of the TQM, this
could be a cut or threat of subsidies, or requests from different customers or partners for a better
management nature. After a crisis, a pioneer can deliberately mediate by giving another vision of
things to come to help the society govern it. Approval to run TQM may be very necessary. Such
a pioneer can transform into a mediocre actor, taking responsibility for supporting the new
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