please answer questions 7 and 9.

please answer all problem-solving perspective questions and all application of chapter content questions.

- Several techniques are available for improving quality. (1) Outsourcing is the subcontracting of - Al can be used to reduce errors and defects, increase services and operations to an outside vendor. productivity, and enhance supply chain management. (2) Reduced cycle time consists of reducing the - Employee tracking and monitoring has both number of steps in a work process. (3) Statistical advantages and disadvantages. Advantages process control is a statistical technique that include uncovering problems, reducing instances of uses periodic random samples from production employees wasting time, highlighting bottlenecks, runs to see if quality is being maintained within a and enforcing safety practices. Disadvantages standard range of acceptability. (4) Six Sigma is a include privacy concerns, employee retainment rigorous statistical analysis process that reduces issues, and data vulnerability. defects in manufacturing and service-related 16.6 Career Corner: Managing Your Career processes. (5) ISO 9000 consists of qualityReadiness control procedures companies must install-from - Developing the competency of career management purchasing to manufacturing to inventory to requires the application of four additional career shipping - that can be audited by independent readiness competencies: ownership/accepting quality-control experts, or "registrars." ISO responsibility, self-motivation, self-awareness, and 14000 extends the concept to environmental openness to change. performance. - Six generic tips help you manage your career: (1) 16.5 Contemporary Control Issues Make every day count. (2) Stay informed and - Two contemporary control issues include artificial network. (3) Promote yourself. (4) Roll with change Intelligence (Al) and employee tracking and and disruption. (5) Small things matter during monitoring. interviews. (6) Use technology for self-development and creating good habits. Enderstanding the Chapter: What Do IKnow? 1. What is control and what are six reasons control is 7. Explain the following TQM tools and techniques: outneeded? sourcing, reduced cycle time, the ISO 9000 series, the 2. Explain the steps in the control process. ISO 14000 series, statistical process control, and Six 3. Describe the three types of control. Sigma and Lean Six Sigma. 4. Explain the four perspectives of the balanced score- 8. How can artificial intelligence enhance the control card. process? 5. What is a strategy map? 9. What are the advantages and disadvantages to 6. Discuss total quality management and its two core employee tracking and monitoring? principles. 10. What are some ways you can manage your career? The U.S. Shale Boom... and Bust Who produces most of the world's oil? Your first guess rels in 2014 to a record 12.2 million barrels in 2019. As may be somewhere in the Middle East. Indeed, that Things are not well in the kingdom though. Fuel dearea of the planet has long been the center of the global mand in 2020 plunged by 30%, or 30 million barrels a oil market and derives much of its revenue from the day, as the COVID-19 pandemic grounded air travel, export of crude oil. 175 Pointing to Saudi Arabia, Iraq, or decreased vehicle usage, and led to a worldwide recesIran would therefore be a good guess, but you would be sion. As a result, oil fields from Texas to North Dakota wrong. The United States is now the world's largest had to shut off their drills, causing tens of thousands of crude-oil producer, beating out Saudi Arabia, Russia, U.S. oil workers to lose their livelihood. The future of and other countries. This is in large part due to U.S. the U.S. oil industry looks grim with experts predicting shale's boom in crude oil production since 2014. Shale over a thousand bankruptcies by the end of 2021. 177 drove American daily oil output from 8.8 million bar- Will U.S. shale survive the great oil crash of 2020 ? Control Systems and Quality Management WHAT IS SHALE OIL ANYWAY? DRILLING FOR DATA Before we continue any further, it's important to gain a Advancements in technology may provide hope for an better understanding of shale oil, which is crude oil industry on life support. Keep in mind that oil companies that lies between layers of shale rock. It's produced by haven't typically shied away from technology. French and drilling into the shale rock and pumping water, sand, Italian oil companies Total and Eni, for instance, are and chemicals into it-a process known as "fracking." owners of some of the "Top 500 most powerful superThe oil is located thousands of feet deep into the rock, computers of 2019."183 The problem is that much of the making it quite labor intensive and costly to get to. In industry's data are never used. "A lot of data are colfact, some experts put the cost of the entire process at lected, but a lot of it is very isolated," said Binu Mathew, around $60 a barrel. This means that when oil prices head of product management at Baker Hughes. "Only a dip below $60, many shale oil companies lose money if small percentage of it is actually being analysed." 184 they continue to operate. 178 If oil companies could do a better job controlling On the other hand, conventional oil is quite cheap to their operations in real time they could have competiproduce because it is closer to the earth's surface and tive advantage, especially during challenging times. does not require complex fracking techniques. This is This is where AI and data analytics come into the picthe primary way in which the world's other top produc-_ ture. According to Mark Mills, a senior fellow at the ers get to their oil. Saudi Arabia, for instance, is able to Manhattan Institute, "Bringing analytics to bear on the produce conventional oil for under $10 a barrel, mak- complexities of shale geology, geophysics, stimulation, ing it more resilient during price slumps. 179 and operations to optimize the production process A FRACTURED CONTROL SYSTEM_ Would potentially double the number of effective stages, The formula for success in the U.S. shale industry was oil in half." Oil companies can use AI and analytics to simple. First, as long as oil prices remained high, there find the best driling locations, optimize how and where was enough profit to keep shale exploration and pro- they steer their drill bits, find the best ways to rupture duction going. This was the case between 2011 and the shale, and ensure efficient truck and rail logistics. 185 2014 when oil prices averaged $90 a barrel. Second, Shell is a good exaraple of a company using Al and smaller shale companies needed low-interest bank fi-_ data analytics to its advantage. The company partnered nancing in order to stay afloat. And the banks delivered with Howlett-Packard to develop fiber optic cables that to the tune of almost $250 billion in 2014 alone. 180 provide sensors throughout the ground. The data from Things started to change in 2016 as there was an these sensors is then transferred to Amazon Web Seroversupply of oil in the world markets, decreasing the vices cloud-based servers for its AI to extract and anaprice of oil to around $26 a barrel. The Federal Reserve lyze. The results provide engineers with a more accurate also increased interest rates that same year, which idea of what lies below the ground. This is important meant banks were unwilling to lend to shale companies because drilling in the wrong place can cost companies at the same low rates. This one-two punch resulted in upwards of $100 million. Another oil giant, Chevron, is shale companies having negative income statements such a believer in the power of AI and data analytics and balance sheets filled with debt. Dozens of compa- that it is installing around 1 million sensors in a new nies declared bankruptcy in 2016 , but those that were oilfield it is launching in Kazakhstan in 2022. Experts able to withstand the storm saw light at the end of the believe that Shell and Chevron's digital practices can tunnel when oil prices went back up between 2017 and help improve their oil production costs by 6 to 8%.186 2019. 181 Machines are another important part of the equa- The lesson from the 2016 crisis was that shale com- tion. Drilling is a continuous process and machines are panies couldn't simply rely on market supply and de- subject to working long hours under severe temperamand to stay afloat. They needed to find ways to reduce tures and conditions. AI can help ensure that these matheir break-even point in order to stay competitive. chines are working efficiently. For example, some Companies such as Occidental Petroleum Corp. and companies fit their machines with sensors that collect CrownQuest Operating were able to reduce their costs performance data. AI then compares the data to aggreto around $30 a barrel, but that meant they didn't have gated data, ensuring that parts are replaced on time enough cash to pay shareholders. And even $30 a bar- and unplanned disruptions are minimized. 187 rel wasn't enough when the COVID-19 pandemic hit. An Accenture and Microsoft survey of oil companies The virus sent oil prices to below $0 a barrel because found that 86 to 90% believed "an increase in their anathere was such oversupply of the commodity in the lytic capabilities ... would increase the value of their busimarket that producers couldn't afford to store it. 182 U.S. ness." The companies surveyed also expected to increase shale seemed to hit a wall-fluctuating oil prices were their investment in AI and data analytics an average of causing havoc on operations while costs couldn't be 8.5% in the next few years. 188 Technology-based control reduced any further. practices show that there may be hope yet for U.S. shale. OR DISCUSSION 2. Utilize the steps in the control process to show how Problem-Solving Perspective shale companies can ensure that their business activi- 1. What is the underlying problem in this case from the ties are leading to goal achievement. perspective of U.S. shale companies? 3. Would implementing analytics and cloud-based control mechanisms allow for feedforward, concurrent, 2. What are the causes of the problem? or feedback control? Explain. 3. How can effective control practices assist in soiving 4. Create a balanced scorecard to give a view of U.S. the problem? shale. Utilize all four perspectives. pplication of Chapter Content 5. How can U.S. shale exhibit the two core principles of 1. Why is control necessary for U.S. shale companies? total quality management? Explain. Explain. 6. What are some disadvantages to U.S. shale's use of Al? Discuss