Quiz 4

1. (True/False) The more slot machines you can place in defined amount of floor space (e.g. 10,000 ft2) the greater your gross profit.   Answer: False, too narrow aisle space may cramp customers and decrease profit

2. How many dealers do you need to fully staff a craps table?   A. One B. Two C. Three D. Four E. Five Answer: Four, three active and one on break

3. In craps, what is the come-out throw?   A. When a player throws a natural B. When a player throws three dice instead of two C. When a player throws a craps D. The first throw of a sequence E. None of these Answer: The first throw of a sequence

4. How many different numbers are there on a roulette wheel?   A. 16 B. 26 C. 36 D. 46 E. None of these Answer: None of these, 1-36, 0 and 00

5. What major advantage does the casino have over the player in blackjack?   A. Both of the player’s cards are dealt face down B. The player can double down C. Both of the dealer’s cards are dealt face up D. The player may “bust” before the dealer plays E. None of these Answer: The player may “bust” before the dealer plays

6. (True/False) Rules/odds of table games are identical among different casinos because they are controlled by state government gambling regulators.   Answer: False, casinos have some latitude to offer different rules/odds to gain competitive advantage

7. Fill in the blank. Problem gamblers have a ____________ frequency of alcohol abuse then the general population   A. lower B. the same C. higher Answer: higher

8. Based on the study in the required reading, what demographic group would a casino market manager find most attractive?   A. Male drinkers B. Female drinkers C. Male non-drinkers D. Female non-drinkers E. None of these, there is no difference between these demographic groups Answer: Male drinkers

9. Fill in the blank. Studies show that when gambling, drinking two alcoholic drinks ___________ alertness and judgment.  A. increases B. decreases C. Neither, it makes no difference Answer: decreases

10. (True/False) Studies show that because of strict casino enforcement, underage gambling is very uncommon.   Answer: False, 24% of underage Memphis students and 53% of Nevada students had gambled in a casino

Process Reengineering

For Friday Friday recitations in KOBL 320 or KOBL 370 Section 201: 9:00 – 9:50 AM in KOBL 320 – Prabhat Mulchandani Section 202: 9:00 – 9:50 AM in KOBL 320 – Mike Milazzo Section 203: 10:00 – 10:50 AM in KOBL 320 – Alex Barnes Section 204: 10:00 – 10:50 AM in KOBL 320 – Fiona Ferguson Section 205: 11:00 – 11:50 AM in KOBL 320 – Alex Barnes Section 206: 11:00 – 11:50 AM in KOBL 320 – Fiona Ferguson Section 207: 12:00 – 12:50 PM in KOBL 370 – Vimi Shukkoor Section 208: 1:00 – 1:50 PM in KOBL 370 – Kate Kelly Section 209: 2:00 – 2:50 PM in KOBL 370 – Dheeraj Sunkavalli Section 210: 3:00 – 3:50 PM in KOBL 370 – Matt Fitzgibbon Bring your Process Mapping books to recitation

For Next Week Read Pages 65-110 of Business Intelligence Quiz 5 next Wednesday covers these readings

Process Reengineering Reengineering strives “to break away from the old rules about how we organize and conduct business” Constructive defiance (break old rules) Creative destruction Out of the box thinking

Process Reengineering Not small changes Total reinvention Focus on processes Not tasks, jobs and/or people

Process Reengineering Which processes to reengineer? Use a BI Blueprint Identify Opportunity Areas Apply Importance Criteria Apply Difficulty Criteria Develop Opportunity Scorecard Go for the high impact opportunities May be the hardest

Process Reengineering Methodology Prepare for reengineering Map and analyze the as-is process Design the to-be process(es) Implement the reengineered process Improve the process continuously

Process Reengineering Prepare for reengineering If you fail to plan, you plan to fail Ask, is BPR even necessary? Develop an executive consensus Establish cross-functional teams Identify client goals What is preventing the client from achieving those goals today?

Process Reengineering Map and analyze the as-is process Identify disconnects preventing the process from achieving its desire results Identify value added processes Use process mapping techniques Flowcharting Relationship maps Cross-functional process maps

Process Reengineering Design the to-be process(es) Produce multiple potential solutions Benchmark potential solutions against the client’s as-is process Benchmark potential solutions against the competition’s as-is process Incorporate a systems view rather than a silo view

Silo View EXECUTIVE MANAGEMENT S A L E O P E R A T I N S A C O U N T I K E T I N G Hierarchy Barriers to information Task-based Each department only does one type of work I N F O R M A T

Systems View EXECUTIVE MANAGEMENT S A L E O P E R A T I N S A C O U N K E T I N G Outcome-based Job redesign Need timely information / BI INFORMATION

Systems View vs. Silo View System boundaries must be expanded to see the larger systems view “If you see green only from your silo, you only see increased costs,” explained Jeff Wacker, the futurist at EDS. “You don’t see the tradeoffs, you don’t see the decrease somewhere else, because it’s not in your silo where that something else happens.” So you need the CEO who can say, Let’s go for an initially more expensive but low-heat, low energy lighting system, because that will allow us to design and install and operate fewer air conditioners. Only if you look at it systemically “can you measure all the savings,” said Wacker. “Once you start to measure, you recognize the benefits for the whole system.” From Friedman, Thomas L. Hot, Flat, and Crowded, Farrar, Straus and Giroux: New York, 2008, page 335.

Process Reengineering Implement the reengineered process Pick the best among the potential solutions The stage with maximum resistance to change It often takes many people to say yes to BPR but only one to say no and kill it Leverage executive consensus to overcome lower level resistance Develop an implementation plan

Process Reengineering Improve the process continuously Processes are not reengineered overnight Monitor the progress of action and results Improve/change process as required

Process Reengineering

Case Study – Quest Foods Asia/Pacific Food flavoring company HQ’d in Holland with Asia division HQ’d in Singapore World wide demand for new flavors incorporated into both existing and new products Off-the-shelf and custom flavors Quest focused on custom flavors

Case Study – Quest Foods Asia/Pacific Goal – dramatic improvements in cost, quality, service and speed Standardized operations management Customer service Administration $70 – 80 million project

Case Study – Quest Foods Asia/Pacific New ability to share information As-is process data storage Employees’ “brains” Written Electronically To-be process Get information to those employees who need it most

Case Study – Quest Foods Asia/Pacific Allow “Google” searches on the company’s data and information Any ideas for new cookies? What spices work best for Japanese tacos? Eventually provide value-added services for Quest’s customers

HVAC – Heating, Ventilating, Air Conditioning supplies Highly cyclical Case Study – Heatway HVAC – Heating, Ventilating, Air Conditioning supplies Highly cyclical Goal – implement PTP – Proposal to Payment Radical change New processes New organizational structure New IT architecture New philosophy of doing business

Two teams – “As-Is” and “To-Be’ As-Is Case Study – Heatway Two teams – “As-Is” and “To-Be’ As-Is Document current processes Interview over 100 managers/employees Identified extremely costly/inefficient order management process

To-Be Case Study – Heatway Benchmark other firms approaches to order management Non-competitive benchmarking Find best-of-breed order management processes

Result Case Study – Heatway Highly integrated information management systems Coordinated interface between sales, engineering, finance, manufacturing and inventory management Implemented SAP software $150 million project Met resistance by management negatively impacted by the project