Quality Improvement and Problem Solving Techniques

This assignment delves into various quality improvement techniques such as Kano model analysis, Pareto chart, and statistical process control. It also covers problem-solving methods like the fishbone diagram and a general problem-solving process. Additionally, it touches on customer needs analysis and identifying consumer requirements using different methods.

REPORT

TABLE OF CONTENTS
TOPIC OF PROJECT......................................................................................................................1
PART 1: INTRODUCTION............................................................................................................1
PART 2: CUSTOMER SATISFACTION.......................................................................................3
2.1 Stakeholder Analysis........................................................................................................3
2.2 Capturing the Customer Needs.........................................................................................5
2.3 Customer Needs Analysis.................................................................................................7
PART 3: DESIGN REQUIREMENTS..........................................................................................13
3.1 Translating Needs of Customers into Design Requirements..........................................13
3.2 Designing the risk analysis using FEMA.......................................................................16
PART 4: SUPPLIER SELECTION AND EVALUATION..........................................................17
4.1 Identifying the Components, Elements, Parts, etc..........................................................17
4.2 Developing the Supplier Selection Criteria....................................................................18
4.3 Constructing and Using system of a Supplier Selection................................................20
4.4 Conclusion......................................................................................................................22
PART 5: STATISTICAL PROCESS CONTROL.........................................................................23
5.1 Identifying the Processes................................................................................................23
5.2 Constructing and Using SPC Chart................................................................................23
Interpretation of results of SPC analysis..............................................................................26
PART 6: PROBLEM SOLVING...................................................................................................29
6.1 Identifying problems and use of different problem-solving tools..................................29
6.2 Developing various techniques of solving problems......................................................29
REFERENCES..............................................................................................................................32

INDEX OF TABLES
Table 1: Template for identifying customer needs towards cloths and shoes...............................10
Table 2: Quality rating of cloths....................................................................................................25
Table 3: Quality rating of shoes.....................................................................................................25

ILLUSTRATION INDEX
Illustration 1: Logo of Nike brand...................................................................................................1
Illustration 2: Cloths offered by Nike..............................................................................................2
Illustration 3: Shoes provided by Nike............................................................................................2
Illustration 4: KANO model analysis............................................................................................11
Illustration 5: Scatter diagram on quality rating of cloths.............................................................26
Illustration 6: Scatter digram on quality rating of shoes................................................................26
Illustration 7: Cause and effect diagram........................................................................................27
Illustration 8: Pareto chart..............................................................................................................28
Illustration 9: Control chart............................................................................................................28
Illustration 10: Problem solving process........................................................................................30

TOPIC OF PROJECT
At the time of preparing any research or project then at the very and first time go for
selecting topic. The reason is that until and unless problem is not identified then analyst cannot
conduct research in proper direction. Due to this particular situation, a specific topic is selected
in the present project which is “Design and production of clothing and shoes”. Moreover, after
taking base of the clothing as well as shoes products, the present assignment is to be prepared.
PART 1: INTRODUCTION
In the world market there are wide range of products, services as well as works available
which purchased and consumed by different buyers. The present project prepared with reference
to cloths as well as shoes products. When talking about the sector then the selected goods are
relied under the apparel industry which is one of the fastest growing segment across the globe.
Further, it has high level of contribution within growth of any particular economy in the world.
For conducting the present study, Nike company is taken as a base which is a public limited firm
and operates under apparel industry. Further, it has market presence across the world and provide
high quality of cloths and shoes to the customers.
Illustration 1: Logo of Nike brand
In the present world, various kinds of cloths and shoes available which lead to make
changes in preferences as well as needs of the customers. Basic function of the clothing or
known as attire is to cover and protect body of human. Further, purpose of such kinds of
products is to protect human body from several elements like winter, heat, fire etc. In addition to
this, to protect body of human from biting of insects or other animals also cloths and footwear
are uses by the customers (Lienert, Schnetzer and Ingold, 2013). Key function of shoes is to
protect and cover palms of legs of human body. Further, these are the necessity of people in
1

order to live in the world properly as well as safely. Due to lack of availability of cloths and
shoes, human unable to survive in the world. In order to boost up quality and standard of such
products such functions and characteristics are mandatory to known by producers.
Clothing and shoes products are used by each and every people which support to protect
from various factors as well as survive in the world. When looking at the characteristics of cloths
then it must be of the better fabric. If material used in order to manufacture apparel items is of
the lower standard then people start to resist for purchasing. Therefore, raw material as well as
fabric in order to produce selected products must be of the high quality. Apart from this,
sometimes customers prefer extremely fashionable cloths in order to look attractive which is
another characteristic. On the basis of this, it can be said that while making plan of enhancing
quality, cloths must be of the fashionable type (Missonier and Loufrani-Fedida, 2014). Under the
footwear, some users prefer to wear sports shoes, some like to use casual etc. If the Nike will
ignore to consider different kinds or range of footwear while manufacturing then cannot attract
huge customers. Apart from quality aspect, types of the cloths and shoes are also important for
the company which helps to enhancing consumers. Moreover, while manufacturing the selected
goods, provided aspect are mandatory to consider.
Illustration 2: Cloths offered by Nike Illustration 3: Shoes provided by Nike
Further, the present study describes about customer analysis where their needs and wants
are discussed. The reason for making analysis of this aspect is that, it will help to manufacture
2

cloths and shoes in accordance to their wants. For assessing needs of stakeholders, Kano analysis
framework is taken into consideration. With the production of each and every kind of goods and
services, some risks are associated. Further, issues which can be incurred under manufacturing of
cloths as well as shoes are analysed in the present assignment. Apart from these all, ways
through which supplier of raw materials and fabrics selected and reviewed in the study are
explained. For this particular aspect, some systems and methods are used in the study in an
appropriate direction. In addition to this, different kinds of the tools as well as methods used for
statistical process control are also defined and explained. At the end of present project, problems
which can be incurred while producing such goods within Nike are discussed.
PART 2: CUSTOMER SATISFACTION
For each and every business, customers are an important asset which lead to generate
revenue and profit. Due to this, the management has basic objective which is satisfy needs and
wants of the customers up to the greater extent. As the Nike business provides better and higher
quality of cloths and footwear then able to enhance satisfaction level of users. At this stage,
analysis of customers needs and requirements is highly needed which is stated below with
reference to chosen product:
2.1 Stakeholder Analysis
A group of people or party who involved with the company in a direct or indirect manner
is known as the stakeholder. When the firm fulfil needs of each and every stakeholder then able
to boost up their satisfaction (Yang, 2014). Basic stakeholders of cloths and shoes products in
context to Nike firm are stated below:
1. Customers: For the firm, customers are those stakeholders to whom management
provides top priority. The reason behind this is that customers are base for generating
sales in the firm. Basic need of these kinds of stakeholders is that Nike will provide
higher quality of cloths and shoes as compared to others. Apart from this, another two
needs of customers towards Nike firm are that, firm will offer products at lower cost and
within proper time frame.
2. Communities: Another stakeholders group of Nike is communities which tends towards
the firm in order to use corporate social responsibilities. As the cited entity considers high
level of CSR initiatives within workplace then able to satisfy communities. Basic
3

requirement of these type of stakeholder is that, Nike will take huge CSR initiatives for
their social welfare. Along with this, cloths and shoes offered by the firm at low cost and
high standard is another need of communities.
3. Employees: Those group of people who incorporated within the company in order to
manufacture cloths as well as shoes is known as employees. When needs of these
stakeholders are accomplished by the firm then provides high and adequate duty to Nike.
Primary need to employees is that, Nike will give higher and adequate amount in terms of
salary or wages (Kissinger, 2017). Another needs of workers are regarding to proper
allowances as well as monetary motivations by the Nike Inc.
4. Government: With the selected business, government always associate and plays role as
a stakeholder of the firm. It is an external stakeholder which takes amount from the firm
in form of taxation or any other. Key need of government towards the Nike business is
that, it will provide adequate amount and use highly effective CSR strategies for welfare
of society. In addition to this, Nike will fulfil all the legal laws and regulations within
working environment is another needs of these stakeholders.
5. Managers: An internal stakeholder who takes business decisions up to the certain extent
and manage overall firm is considered as managers. These are always expected from
Nike that it allow them for providing higher level of wages. Along with this, they want
that, it will give effective allowances and promotion to managers (Gilson and et.al.,
2012).
6. Board of directors: People who are associated with the company and take high level of
business decisions are known as board of directors. Further, majority command of Nike
in order to run and operate within industry is with the BODs. These stakeholder wants
from the firm that, it will complete works allotted on time. In addition to this, such
stakeholders want that Nike enhance productivity and sales within each and every year.
7. Owner: A person or group of few persons who exists and opened business in the market,
known as owner. Further, needs of owner is of the high level or seeking towards the
overall business entity. In the present case, key requirement of owner is that firm will
4

meet goals and objectives with an adequate manner. Apart from this, efficiency and
productivity of employees and business will be improved are another needs of owner.
8. Sponsors: Another stakeholders of the Nike company are sponsors who provide financial
support to the firm in order to take any kind of initiative. For instance, when Nike going
to arrange a campaign then other entities or frameworks provide money to them (Sayogo
and et.al., 2012). Basic needs of sponsors are that, Nike will help to make appropriate
advertisement and aware people about sponsor's products and services. Therefore, market
share will be enhanced which is another want of such stakeholders.
9. Shareholders: Investors who purchase shares and securities of the Nike firm are known
as shareholders. This type of stakeholders always seek towards the high level of return on
investment. Further, key requirements of shareholders from Nike are that, it will provide
higher return, more dividend on the basis of quarterly and provide bonus shares as well at
the end of month.
10. Suppliers: In order to manufacture cloths and shoes raw materials required which are
provided by suppliers. These stakeholders tend towards the Nike firm that it will pay
amount of raw materials within fewer times or immediate basis. Apart from this, another
need of supplier is that, Nike will provide order for raw materials in an appropriate
manner.
11. Creditors: Those people who purchase cloths and shoes from Nike on the credit basis are
known as creditors. Key requirement of these kinds of stakeholders are that, it will
provide higher quality of products and allow on credit for long period of times
(Markmann, Darkow and von der Gracht, 2013). In addition to this, they want that
interest rate of credit purchasing will be lower as compared to other suppliers.
12. Functional managers: At the last, those managers who manage and arrange each
organisational functions are also a part of stakeholders. They want that Nike firm will
provide adequate financial resources, required raw materials as well as human resources
for operating and achieving objectives.
5

2.2 Capturing the Customer Needs
Identifying needs and wants of customers is one of the pivotal part for each company
which helps to produce goods and services properly. If the cloths and shoes within Nike are not
manufactured in accordance to requirements of consumers then sales will affect negatively.
There are various methods by which needs of users are analysed which are listed below:
 Surveys using research questionnaire
 Interviews from customers
 Feedback boxes
 Mapping the customer journey
 Conduct voice of consumer surveys (Sauro, 2015)
 Direct e-mail
At the majority of times basically three methods and ways are considered by the Nike for
assessing needs towards clothing and footwear products. Such ways include survey, feedback
box and direct e-mail. Further, SWOT model for the Nike business entity is explained below:
Strengths:
Key strength of Nike company is that, it is a leading brand of sports shoes as well as
cloths in the world market. Apart from this, it is highly recognised on “100 best entities in order
to work for” by the fortune magazines many times. It is known in the apparel industry in terms of
highly innovative goods and shoes which lead to create higher brand image. At the global level,
it has high level of relationships from various firms on the basis of sports shoes. Along with this,
by collaborating with several businesses it has launched different goods in the market which are
like music player, watches etc. When looking at the advertising and marketing strategies then
always come up with some innovations and additional aspects to attract people (Nike SWOT
Analysis, USP & Competitors, 2016). In addition to this, it has wider level of presence in the
world market as well as has the exclusive shops across the globe. Further, cloths and shoes of
Nike are not available at the multi-brand stores because it has separate outlet. In terms of climate
and eco-friendly businesses also it has the higher rank which create brand image worldwide.
Weaknesses:
6

In the apparel industry, level of competition is cut throat which lead to create higher
extent of negative impact on market share. As Nike operates in cloths and shoes segment, face
huge extent of the competition. Therefore, the cited firm has weak position in terms of growth of
the market share. At the initial level growth rate of Nike in context to market share was high but
as rivals enhance then this growth affects negatively. Apart from this, another issue faced by
Nike is about allegations of laws about workers as well as wages. Further, it not provides
protected and friendly working conditions for the employees which is one of major weakness.
Opportunities:
As the firm has limited number of product range like sport shoes and cloths. On the basis
of this, Nike has chance in order to expand goods currently offered by it which are like
sunglasses, sportswear etc. This strategy will lead to enhance profit with the higher extent in
apparel industry (Van Horn, Olewnik and Lewis, 2012). Another opportunity is to use online
applications for selling its goods and services which lead to attract high level of consumers. In
addition to this, it has chance for entering and opening stores in the emerging or developing
economies in the world.
Threats:
Footwear and cloths are necessity products of the people due to which creates cut-throat
competition level for the Nike businesses. When looking at the financial aspect then, as Nike is
an international firm, generates issues in order to fluctuate currency from one country to another.
Due to this particular situation, overall business of Nike affects up to the greater extent in
adverse direction. Apart from this, use of innovative techniques by another apparel brands also
create threat for Nike business.
2.3 Customer Needs Analysis
In the above section, strengths, weaknesses, opportunities as well as threats are identified
and analysed. On the basis of this mentioned criteria basically three methods are highly
important which include survey, direct e-mail and feedback box. It can be found from the above
section that survey methodology is one of an important method. The reason is that, it will lead to
provide valid and accurate information from the customers. Under this, at the initial level
research questionnaire are framed after considering needs and requirements of stakeholders
7

identified above (Customer Needs Analysis, 2017). Apart from this, it takes less time for
assessing wants of different stakeholders in comparison to other mentioned ways. For
researching needs of cloths and shoes products of Nike, survey method will be considered where
questionnaire prepared as below:
8

Research Questionnaire
Demographic factors
Name ______________________
Gender _____________________
Age ________________________
Occupation __________________
Que. 1: How often you purchase cloths and shoes ?
 Monthly
 Quarterly
 Half yearly
 Yearly
 When required
Que. 2: What are the factors considered by you while purchasing cloths and shoes from Nike ?
 Quality
 Cost
 Sustainability
 Comfortability
 Any other (Please specify)
Que. 3: What are the basic wants of your from the Nike's cloths and shoes in terms of cost ?
 The lowest cost as compared to other apparel brands
 Affordable prices of cloths
 Reasonable charges of shoes along with durability
 Any other (Please specify)

Que. 4: Do you think that, delivery time of the cloths and shoes should be proper or on time ?
 Yes
 No
Que. 5: What are your another wants from the Nike's cloths and shoes products ?
 Colour of apparels
 Higher value of cloths and footwear
 Both products should be comfortable
 Cloths should be highly trendy
Que. 6: Do you think that, some aspects must be there in the cloths and footwear items of Nike Inc.
company ?
 Yes
 No
Que. 7: Which are the key factors which must be associated with the clothing and footwear
products of Nike Inc. ?
 Products should be of the highest quality
 Prices of goods need to be lowest than rivals
 Shoes must be durable
 Smooth fabric of cloths
 Smooth layer of shoes
Que. 8: What are other musts of your in the selected products of Nike firm ?
 Cloths required to fashionable and easily wearable
 Delivery should be on time
 Cloths needs to be properly stitched
 Any other (Kindly specify)

Que. 9: Other than wants and musts, do you desire from Nike that it can provide additional features
in goods ?
 Yes
 No
Que. 10: From the below mentioned aspects, which are your desires towards Nike firm with
reference to cloths and footwear ?
 Unique pattern in cloths and shoes
 Luxuriousness in the products mentioned
 Highly attractive kind of goods
 Casual shoes with trendy look
Que. 11: Please provide your valuable feedbacks and suggestions (if any)
_______________________________________________________
Table 1: Template for identifying customer needs towards cloths and shoes
A framework which clearly reflects needs, desires and requirements of the customers
towards specific products is KANO model. It is a theory which shows about product
development as well as the satisfaction level of customers with reference to particular goods or
company. Under this some aspects involved which lead to analyse wants of users of cloths and
shoes products. Once needs of the consumers are easily defined then satisfaction level affects in
positive direction up to the greater extent. From the below provided model it has been clearly
said that, KANO analysis provides information about satisfied and dissatisfied customers. In
addition to this, needs of various stakeholders are categorised in generally three parts like wants,
musts as well as desirables (Eres and et.al., 2014). On the basis of KANO model of customers
and product analysis, various needs of users about cloth and shoes are stated below:

Illustration 4: KANO model analysis
(Sources: Stroud, 2017)
WANTS:
Those aspects which are required by the customers and have ability to pay in exchange to
that are known as wants. As this kind of factors are accomplished and fulfilled by Nike on the
basis of selected products then able to enhance satisfaction level of customers. Further, wants of
users about the selected products with reference to Nike company are stated below:
1. Products is to be of the higher quality
2. Cloths are highly and extremely trendy
3. Cloths are of the different colour
4. Colour of footwear is black and white
5. Good value of cloths
6. High value of footwear

7. Delivery time of cloths and apparels is proper (Stroud, 2017)
8. Price has to be affordable
9. Layer of shoes are comfortable
10. Cloths are comfortable
MUSTS:
Each and every customer thinks that some important factors must be included under with
the clothing and shoes products. As per this, if any of the aspect not associated with the goods
then consumers will not accept while purchasing. Therefore, when the cited organisation i.e.
Nike produces apparels considering musts of users then able to boost up sales consistently.
Further, some musts of the consumers are such as follows:
1. Cloths must be of the highest quality
2. Shoes should be of the higher standards
3. Products must be delivered on time
4. Cloths must be smooth
5. Shoes need to be sustainable
6. All sizes must be available in cloths and shoes
7. Cloths should be fashionable
8. Shoes provide by Nike requires fashionable (Hakanen and Jaakkola, 2012)
9. Cost needs to the lowest level
10. Prices of cloths and shoes must be lowest
DESIRABLES:
Those factors which are desired or expected by the customers from company in particular
product or service are known as desirables. These are neither wants nor musts of the people but
expects that Nike can provide such kinds of aspects. When relating to the Nike's cloths and shoes
then desires of customers are stated below:
1. Cloths can be with the unique pattern

2. Nike can be provided casual shoes along with sporty
3. Pattern of shoes can be attractive
4. Cloths can be highly attractive
5. Shoes and cloths may be luxurious
PART 3: DESIGN REQUIREMENTS
3.1 Translating Needs of Customers into Design Requirements
In order to make translation of needs and wants of the customers into design requirements
there are different kinds of methods and frameworks available. In the present case scenario, QFD
which stands for Quality Function Deployment is taken into account. Under this, voice of
consumers or needs are properly analysed which helps to design products in accordance to that.
In the above part some wants, musts and desirables of users are identified and on the basis of that
QFD prepared as below:

Quality Function Deployment (QFD)
Name of company: Nike Inc. Product: Cloths and shoes
Customer needs
Rat
ing
(bet
we
en
5-
1)
Q
ua
lit
y
of
pr
od
uc
t
Pr
ic
e
m
us
t
be
lo
w
es
t
Hi
gh
ly
fa
sh
io
na
bl
e
A
va
ila
bl
e
in
dif
fer
en
t
co
lo
ur
s
D
ur
ab
le
sh
oe
s
C
o
mf
ort
ab
le
sh
oe
s
an
d
cl
ot
hs
A
va
ila
bl
e
in
all
si
ze
s
Ex
tre
m
el
y
tre
nd
y
A
va
ila
bl
e
wi
th
un
iq
ue
pa
tte
r
M
us
t
be
att
ra
cti
ve
Hi
gh
va
lu
e
of
pr
od
uc
ts
D
eli
ve
ry
on
ti
m
e
Wa
nts
Products is to be of the higher quality 5 9 3 9 1 9 3 3
Cloths are highly and extremely
trendy
3 3 1 9 3 9 1 3 1
Cloths are of the different colour 5 9 1 3 9 3 1 9
Colour of footwear is black and white 2 1 9 9 3 0 3
Good value of cloths 4 9 1 3 9 3 3 1
High value of footwear 4 9 3 9 3 3 1
Delivery time of cloths and apparels is
proper
4 3 9 9 3 1 3
Design
Requirements
Importance Rating

Price has to be affordable 5 1 3 9 1 3 9 1
Layer of shoes are comfortable 5 3 3 9 1 9
Cloths are comfortable 5 9 3 9 3 9 1 3
Mu
sts
Cloths must be of the highest quality 5 1 9 3 9 3 9 1
Shoes should be of the higher
standards
4 3 3 3 1 9 3 1
Products must be delivered on time 4 9 9 1 3 1 9
Cloths must be smooth 5 3 1 9 3 9 3 1
Shoes need to be sustainable 3 3 1 3 1 3 9
All sizes must be available in cloths
and shoes
4 1 9 1 9 3 3 3
Cloths should be fashionable 2 1 3 3 1 9 3
Shoes provide by Nike requires
fashionable
2 1 3 9 1 1 3 3 9
Cost needs to the lowest level 4 3 1 3 9 9 1 3 1
Prices of cloths and shoes must be
lowest
3
Des
ira
bles
Cloths can be with the unique pattern 4
Nike can be provided casual shoes
along with sporty
1 3 3 3 9 9 3 1
Pattern of shoes can be attractive 2 9 3 9 1 1 3 3 1

Cloths can be highly attractive 3 3 1 3 3 9 9 9 1
Shoes and cloths may be luxurious 4 3 3 1 9 3 9 1 3
Target Value 85 60 70 50 60 50 65 60 55 60 50 35 42
Absolute Score 92 87 67 54 75 41 56 63 35 64 53 45 40
From the above stated QFD it can be analysed that target value of rating in Nike company
is 85 where fact and score occurs absolutely is 92. This particular aspect clearly states that Nike
company will be able to meet with the requirements and needs of the consumers. Apart from this,
when looking at the absolute score design requirements then five are of the highest score
(Biglarbeigi, 2017). Apart from this, the highest scorers design needs meet targeted value as well
in the Nike company.
3.2 Designing the risk analysis using FEMA
Failure Mode and Effect Analysis (FMEA)
Name of company: Nike Inc. Product: Cloths and shoes
Part,
function
,
or
activity
name
Potenti
al
Failure
(what
can go
wrong)
Effect
(of that
on the
whole
system)
Root
Cause
(what is
causing
the
failure)
Risk (before
Action is
taken)
Actions to reduce
risk
Risk (after
action is taken
P S R P S R
Quality
product
Reduci
ng
quality
of raw
materia
ls
Declining
attractive
ness of
customers
Suppliers
of
leather,
thread
and
fabric
3 4 12 Considering six
sigma and TQM
strategies
2 3 6
Price
must be
lowest
Increasi
ng
expense
s within
Affecting
price
level and
Employe
es and
financial
4 5 20 Use of cash and cost
management tactics
3 4 12

firm sales manager
Availabl
e in
different
colours
Lack of
availabi
lity of
wide
range
of
colours
Declining
customer
attraction
Market
condition
s and
availabili
ty
2 4 8 Purchasing colours
in bulk when
available in market
1 3 3
Availabl
e in all
sizes
Due to
not
conside
ring
needs
of
custom
ers
Influenci
ng sales
and
revenue
of the
firm
Improper
market
research
3 5 15 Applying needs of
consumers in the
production and
stitching procedure
2 4 8
Availabl
e with
unique
patter
Lack of
analysis
about
competi
tors
Attraction
level of
users will
decline
and
ultimately
profit will
affect
negativel
y
Analysts
who
assess
analyse
products
of rivals
in
market
4 5 20 Analysis of the
rivalries in proper
and appropriate
direction.
3 4 12
When looking at the above stated risk analysis then it has been identified that some issues
are associated with cloths and shoes products within selected firm. As per the FEMA when
actions are taken in order to reduce different risks then level of overall risks are reduced. For

instance: if price of the products are enhanced then risk available with Nike is at the level of 20.
Further, as strategy like managing cash and costs in production as well as business process is
implemented then risk level declined and reaches up to 12 score.
PART 4: SUPPLIER SELECTION AND EVALUATION
4.1 Identifying the Components, Elements, Parts, etc.
Supplier is an important for the company who provides raw materials in order to produce
goods and services. Further, at the time of selecting a supplier it is mandatory to analyse
elements of the cloths and shoes products. After considering various parts, product is selected
and then raw materials are ordered from the supplier. If various elements associated with the
chosen product are not assessed that management unable to make decisions for selecting raw
materials and suppliers. Very basic aspect included with any kind of product within workplace is
related to financial like cost and price. Lower the financial burden while purchasing such
materials is effective and profitable for the firm (Shyu, Chang and Ko, 2013). In addition to this,
quality is another pivotal part of the product which helps to Nike for manufacturing higher
standards of cloths and shoes. Other than these all, there are wide range of aspects associated
with cloths as well as shoes items in Nike Inc. which are mentioned as below:
 Cost:
 Delivery:
 Capacity:
 Quality:
 Lead time:
 Flexibility:
 Reputation:
 Customer base:
 Certifications:
 Collaboration:
 Location:

 Development of product:
4.2 Developing the Supplier Selection Criteria
As the above stated, provider of the company is an essential part for the Nike
Incorporation up to the greater extent. Due to lack of availability of the proper supplier the
business unable to produce cloths and shoes. In order to chose an effective and appropriate
provider there are some criteria considered. Further, highly used and better selection criterias for
choosing supplier are mentioned below:
 Cost: It is an important aspect which is taken as base to select a supplier in the firm.
From two or more raw materials providers, one who allow management of Nike at the
lowest costs that will be selected. The reason is that lower the price lead to decline total
cost of production within workplace.
 Safety: Another aspect is related to protection where raw materials must be safe and
proper. Apart from this, if a supplier provide required items with proper protection as
well as insurance then it will be selected (Baudrillard, 2016).
 Delivery: When looking at the another criteria then it is regarding to the delivery which
must be within selected time period. Further, among various suppliers, one who deliver
ordered materials on or before deadline that will be considered.
 Service: Another aspect i.e. service of supplier is also one of concern matter for the
selected brand of apparel. Different kinds of the services associated with the supplier and
raw materials when highly effective then chosen for inbound logistics by Nike.
 Social Responsibility: An initiative taken by supplier for welfare of society is known as
social responsibility. Among the list of provider, a specific who taken wide range of
social responsibilities and create brand image is selected.
 Convenience: Supplier should be highly convenient and easily reachable for the
company which lead to generate high level of sales. Under this, lower the distance among
supplier and Nike company will be selected. However, in concern to the product quality
more distance is sometimes acceptable for the firm.

 Simplicity: When specific supplier is simple and respect to the firm which purchases raw
materials then this chosen. On the other hand side, if not behaves respectfully and not
accomplish all the needs of Nike then neglected (Kumar Kar and K. Pani, 2014).
 Risk: With the raw materials if any kind of issues and obstacles associated in the
suppliers then not selected. Further, with a provider when lower and negligible risk is
included, that is to be considered for inbound logistics of raw materials.
 Agility: According to this selection criteria of supplier, materials must be easily as well
as quickly moveable from one place to another. The reason is that Nike has different
manufacturing stores where sometimes need of material movement occurred. Apart from
this, when provider deliver raw materials quickly and easily then used by the firm.
 Quality: Along with the costing, quality is another major matter of concern associated
with raw materials or any kind of product. As Nike operates in apparel industry, quality
of its goods must be of the highest extent which due to facing high competition level.
From several suppliers, when a specific provides higher quality of raw materials then
selected. The reason is that, highly standard raw materials lead to boost up quality of
cloths and shoes (Kannan and et.al., 2013).
 Attributes: When the Nike company is going to purchase inbound raw materials then
mention some specific attributes. As per this, if supplier allows raw materials to the firm
along with all the needed attributes then selected, due to inability of all the attributes,
quality of selected products affected negatively.
 Honesty: Each and every supplier should be clear mind along with honesty which lead to
enhance sales of raw materials. One who will be highly honest and then provide required
materials for producing final goods is taken into account by Nike firm. Along with this,
the provider should not use malpractices in the working environment. The reason is that,
if malpractices are done then any of the firm not entertain towards it to buy raw materials.
4.3 Constructing and Using system of a Supplier Selection
When management of a company is going to select supplier in order to purchase raw
materials and produce finished goods then consider particular system. With the help of
systematic approach, effective and proper providers can be selected in an easy direction. There

are different systems and procedures available which help to make an effective decision for
selecting supplier. Apart from this, there are wide range of raw material provider used and
selected by the Nike for manufacturing cloths and shoes (Qiu and et.al., 2016). Three suppliers
for the chosen firm are like leather, fabric and thread provider. With the help of fabric and thread
suppliers the management of Nike produces cloths for customers. Apart from this, in order to
manufacture shoes, leather providers have a significant role within workplace. In order to
develop the selection system of these three suppliers the above stated criterias undertaken by the
Nike company. Further, overall system or approach which help to select an effective supplier is
explained below:
Step 1: Supplier Selection Scorecard
Very first and initial step of supplier selection system is creating a scorecard which helps
to analyse about them in proper manner. The key reason behind framing this is that, it gives all
the needed information properly about three suppliers used by Nike company. Under the
scorecard those aspects included are like characteristics of raw material provider, importance as
well as value of them etc. Apart from this, business policies and rules which are required to
apply in the workplace of Nike while contracting with the suppliers are analysed. However, with
each and every supplier some constraints and issues are associated which are also assessed at this
stage (Oliver, 2014). The reason is that, when all the obstacles easily identified then decision for
selecting it is properly and profitably taken. Constraints which can be there include management
activities, relationships as well as commitments, rules of government, existing contracts etc.
Step 2: Identifying Suitable Supplier
Second stage of the selection system which is effective for the firm is identifying an
appropriate supplier on the basis of scorecards. It is one kind of bridge which helps to analyse the
suppliers effectually and then profitable selection can be made. During the procedure of
assessing one better supplier, management go through some aspects. Initially, the current
suppliers of Nike firm who provide fabric, leather, threads etc. are analysed. If existing providers
are working well then enhance relationship with them. After that, management go for analysing
past suppliers as well as rivalry brands of the apparel industry. Once competitors and past raw
material providers both are assessed then consider industry groups in which non-profit people are

involved. Among these all which one is suitable like past, current, rivals etc. that will be selected
within Nike firm.
Step 3: Scorecard Ranking
Once the suitable and appropriate provider is selected then ranking is given on the basis
of scorecard as it is one of the effectual technique. Under this stage, a form is to be developed
and then filled by the supplier which whether Request for Quote (RFQ) or Request for Proposal
(RFP). Apart from this, a particular supplier which has the highest ranking in scorecard that will
be considered for purchasing required materials (Conard, 2017). When selecting to the
qualifications then more than one is used which include visits, interviews, sites etc.
Step 4: Negotiate
At the fourth phase of supplier selection system, list of work over this becomes narrow
and management comes near to the conclusion. Here all the suppliers are rated and criticised on
the basis of ranking provided. One who will have higher quality of materials like leather, fabric
and thread that will be selected by Nike firm. Apart from this, negotiated with selected some
suppliers and one who will allow at lowest prices compare than other, will be used.
Step 5: Create Contract and activate system of purchasing
It is the last stage in which contract is made with the selected suppliers in the above step
which are like thread, leather and fabric. Once agreement or contract paper among Nike
company and chosen three suppliers then system of procurement is activated (Scott and et.al.,
2015). Under this, standard, cost, delivery system, time, attributes of raw materials etc. are
specified which have to follow by suppliers.
4.4 Conclusion
From the present section of supplier selection as well as evaluation it has been concluded
that, it is highly significant aspect for each and every business entity. The reason is that it leads
to support to Nike company in order to make effective decisions for procuring raw materials in
the firm. If supplier are not selected in optimum and proper direction then, quality of raw
materials cannot be of the high level. Therefore, overall standard of cloths and footwear products
will be affected in adverse manner up to the greater extent. In addition to this, various criterias
include in the supplier selection are like cost, quality, agility, risk, simplicity, social

responsibility, delivery time, safety, protection etc. It can be summarised that, thread, fabric as
well as leather material provider are easily and appropriately selected by the Nike firm using
system developed in the above section. Apart from this, in order to select characteristics and
quality of services of different suppliers the developed system having an important place. In case
the company not analyses qualities of different raw material providers then unable to select a
suitable in the workplace. Further, ultimately whole smooth procedure of manufacturing cloths
and shoes will influence adversely.
Moreover, the above framed supplier selection system is highly important for Nike for
making effective decision about choosing raw material provider. In order to give ranking to the
different suppliers in an effective direction also this approach is highly purposeful. The above
framed instrument is rationale in order to assessing past, present and other suppliers. When past,
existing, competitors etc. Providers are comparing then Nike can determine that which one in
highly suitable and appropriate. Once different providers such as leather, threads, fabric etc. are
selected then used for procurement within working environment. When looking at the selected
criteria then on the basis of price and costing, quality of raw materials, delivery time and
accuracy is taken into consideration. Along with attributes required are also cross-checked while
procuring the materials in the firm from suppliers. Hence, it can be said that the selection system
of suppliers is highly pivotal and significant for the Nike to produce cloths as well as footwear
items.
PART 5: STATISTICAL PROCESS CONTROL
5.1 Identifying the Processes
A framework which considered by the company in order to measure quality and standard
of products and services produced within manufacturing function is known as statistical process
control (SPC). It is one of the highly used procedure within working place which helps to boost
up total quality level. As per the present scenario, for enhancing quality of shoes and cloths in
Nike business SPC is undertaken. There are different kinds of techniques available under this
specific aspect and undertaken by the entities (Statistical Process Control, 2016). Moreover,
some techniques and methods of SPC analysis are listed out below:
1. Cause and effect diagram
2. Histogram

3. Pareto chart
4. Flow charts
5. Scatter diagram
6. Control charts
7. Probability plots
8. Bar chart
5.2 Constructing and Using SPC Chart
The above mentioned all the frameworks and tools are highly considered by the firms in
order to assess and monitor quality of cloths and shoes within Nike Incorporation. In the present
section, Scatter diagram is taken into consideration for making an effective analysis of quality of
selected goods. It is a tool in which basic two variables are presented on two axis. Further,
relation among two data set in Nike firm are also easily assessed after using chosen SPC tool.
When a particular business entity is going to consider and apply the SPC procedure in production
department then go through some steps. Further, phases of Statistical Process Control are stated
below: Measuring the process: Under this procedure considered in the firm for producing cloths
and shoes products is measured by the management of quality department. Monitoring process: In the second phase, the above measured procedure is monitored and
controlled within workplace of Nike. Finding as well as eliminate variations: Those issues identified while monitoring the
process are eliminated in the company at this stage (Statistical Process Control, 2016).
 Consistently enhance process: At the last stage of SPC process, quality of the products
like cloths and shoes in Nike firm is to be improved on consistent basis.
In the present case data of the quality rating are taken into account for producing scatter
diagram and analyse standard in apparel industry. Range of the quality rating for both products
like shoes and cloths of Nike is given between 1 to 10. Under this, 1 denotes to the worst
situation whereas 10 reflects to the highest quality of goods provided by Nike. List of data which
are framed for cloths and footwear goods are mentioned below:

Data for the clothing products of Nike:
Year Quality rating of cloths (from 10-1)
2005 5
2006 6
2007 9
2008 8
2009 9
2010 7
2011 8
2012 9
2013 10
2014 9
2015 8
2016 9
2017 10
Table 2: Quality rating of cloths
Data for the footwear products of Nike:
Year Quality rating of shoes (from 10-1)
2005 7
2006 8
2007 8
2008 9
2009 8

2010 9
2011 9
2012 10
2013 10
2014 9
2015 9
2016 8
2017 10
Table 3: Quality rating of shoes
On the basis of the above stated data related to quality of cloths and shoes scatter diagram
is prepared. It is a tool in which data plotted on the graph in dotted form and provide clear
structure of the whole data set. Further, using the above information scatter diagram for both
products are prepared below:
2004 2006 2008 2010 2012 2014 2016 2018
0
2
4
6
8
10
12
Illustration 5: Scatter diagram on quality rating of cloths

2004 2006 2008 2010 2012 2014 2016 2018
0
2
4
6
8
10
12
Illustration 6: Scatter digram on quality rating of shoes
Interpretation of results of SPC analysis
In the above diagrams, years are reflected on X axis and on the Y axis rating of the
quality of selected product is shown. From the above mentioned SPC analysis through scatter
diagram it has been analysed that, quality of cloths and shoes within Nike is fluctuating over the
years. Apart from that when looking at the overall phase i.e. from 2004 to 2017, it has been
interpreted that quality of cloths and footwear is consistently increasing.
Other than scatter diagram some tools used under SPC analysis are mentioned below
along with graphs:
Cause and effect diagram:

Illustration 7: Cause and effect diagram
(Source: Usmani, 2017)
Pareto chart:

Illustration 8: Pareto chart
(Source: Martz, 2016)
Control chart:
Illustration 9: Control chart
(Source: Barry, 2013)

PART 6: PROBLEM SOLVING
6.1 Identifying problems and use of different problem-solving tools
Being the well-established brand there are very less issues faced by the company
regarding the shoes and clothes offered by Nike. However, problems can arise for both the
customers and the entity that required to be resolved soon. Some of the major problems involves:
 Getting the effective design: Nike is famous for its different products that are special
available for the sports but they have identify new design to lure the customers.
 Colour pattern: Most of the shoes and clothes made by the company are funky look
which most of the customer avoid to purchase.
 Expensive: The products are elegant and personalised but they come with way to
expensive which every customers is unable to pay and purchase (Scott and et.al., 2015).
 They offer most of the products for the sports: The company is highly focused on their
approach to the customers however, they are limited to sports.
 Blisters: Some customer have experienced that due to those shoes and clothes they have
received some blisters.
6.2 Developing various techniques of solving problems
Technological evolution and globalization has made changes in the lifestyle of the people. Now
they want every thing of high standards and high quality. Moreover, the competition level has
increased dramatically due to same reason. Due to this, the company needs to be specific and
innovative related to their products. In this order, from the above mentioned problems, the major
is the failure in cost of the products. Due to this, challenge can cause various drawbacks such as
advantages to the competitors and customer dissatisfaction, reduced in sales, etc. Besides this, it
will affect the profitability, revenue and sales of the company. Therefore, the organisation is
needed to evacuate this problem for which tools are as mentioned below:
1. Root cause analysis: Under this problem solving tool, problem-solving is done from
origin. Factors that are necessary in the designing of the product are needed to be re-
analysed. Changes must be made in the production and quality as-well-as performance of
the product must be maintained. For this more focus must be made on the manufacturing,
planning, designing part of the company for solving the issues. However, product cost
depends on the material used and features of the product.

Illustration 10: Problem solving process
(Source: Problem solving process, 2017)
2. Failure Mode and Effects Analysis: Through this problem-solving technique, the
problems are identified before any result are implemented. It lies on risk-analysis and
cause and effect analysis. From all the perspective the results are observed and
symmetrical approaches are used for solution.
3. Plan-Do-Check-Act (PDCA): Its a continuous improvement method which is more
methodical way better known as deming wheel. Under this issues are considered as the
opportunities, that are known and analysed. After that, the potential result are identified
and outcomes are measured. Further, for the outcomes effective approach are used.
Lastly, if effective outcomes are there then it is implemented (Problem solving process,
2017).

4. Constructive Controversy: Under this tool, certain solutions are chosen. Further,
arguments are made on the choices and possible outcomes. Based on argument outcomes,
suitable solution are implemented and implementation process is started.

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