Understand How Jp Morgan Ended Up Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 2997 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The infamous Jamie Dimon joined the darling financial institution in 2005 as CEO and also joined the New York Federal Reserve bank board in 2008. 4 Notorious for his squeaky clean reputation relative to many of his contemporaries, his myriad successes in the big banking world landed him four times on Time magazines 100 Most Influential People list. While the whale tale that plays out in the remainder of the paper threatened to tarnish his sterling leadership (and that of the firms), his navigation surrounding the event is one of the reasons JP Morgan surfaced, ultimately, intact. The Set Up Usually, a story of this nature would trigger thoughts of the rogue trader phenomena at UBS or Societe General. However, this story has a twist. What is lurking beneath the infamous London Whale trader, Bruno Iksil, is a whole department enabling the beast. That department was the firms Chief Investment Office (CIO). Don’t waste time! Our writers will create an original "Understand How Jp Morgan Ended Up Finance Essay" essay for you Create order The major responsibility of CIO was to manage the firms excess cash reserves through investments that would meet their future liquidity needs and hedge their $350 billion balance sheet. This was primarily done by investing in a diverse portfolio of high credit quality, fixed income securities that had maintained an average rating of AA+. At its helm was Ina Drew, appointed by Dimon in 2005. The following year her team was able to lift the $20 million trading loss limit for their department. In 2007, they started the Synthetic Credit Portfolio to hedge the inherent credit risk in the firms main business lines. (This portfolio is a key character in the story and will be discussed further in the following section.) By 2010, CIO had brought in 25% of JP Morgans annual profits of $20 billion. At this point, with loss limit barriers removed, exotic new products in the mix, and record profits, one might think that more transparent and thorough department reporting would be required. However, according to JP Morgans task force, CIO actually lost its alertness and became less concentrated on the trading details. Focused more on top line risk measurement numbers that, ironically, masked their ever-growing risk exposure; one might say they lost the trees for the forest. In fact, some commentators thought CIO had deflected from its original purpose and become the worlds biggest proprietary trading counter. In other words, it had become a profit center not a risk management center. Because CIO was so actively increasing its exposure to high yield bonds and various over-the-counter derivative products, the risk of its trades became nearly equal to that of the entire investment banking department at JP Morgan. Since the fund-raising cost for CIO was lower than that for the investment banking arm, the regulations were less, and there was a history of successes, Dimon was moving more and more trading business to CIO. It was this sense from the rest of the trading community, of a growing whale, that partially fueled the pressure and cornering felt inside CIO. The Methodology The positions in the Synthetic Credit Portfolio consisted of standardized indices based on a number of credit default swaps (CDS) on debt issuers.[footnote: JP Morgan Report on Trading Loss] A credit default swap is a financial swap agreement in which the seller of the CDS will pay the buyer if a loan defaults. A CDS is a derivative contract, but acts very much like an insurance contract. The riskier a bond is, the higher the price of the insurance will be. There are different prices for different bonds to be insured from defaults. Also, issuers can choose to insure either the buyer or the seller of the bond. The trader language is intuitively a little backwards in the banking world for CDS. Being long a CDS is buying protection and is effectively a short risk position. Conversely, shorting a CDS is selling insurance and creating a long risk exposure. A firm like JP Morgan is in the business of being long on financial risk by way of their principal banking service functions. Hence, the objective of CIO was to have a net long CDS position to mitigate these risks. CIO added a layer of complexity in its Synthetic Credit Portfolio by choosing to trade the Credit Default Swap Index (CDX) which serves as a benchmark for protecting bondholders against default similar to equity value indices. This is what the CDS index of investment grade firms looked like on Apr.18th, 2012. Notice that it doesnt show the price changing over time like stock indexes do. Rather, it shows prices of the swap depending on the period of time the swap covers, more like the yield curve of a bond. Typically, an upward sloping CDX curve means that it is healthy. That is, the riskier a bond is, the higher the price of the insurance will be. Because, as the time period becomes longer, the more opportunity there is for unexpected events to happen, the riskier it is. So, swaps with longer time intervals cost more than those with shorter ones Iskil went on to implement a flattener strategy on the CDX curve, basically, betting the front end (left) of the CDX curve would go up relative to the back (right.) Although there are several ways to do this, CIO chose to do so by buying short term CDS and selling long term CDS. If the CDX curve really flattens, meaning that short-term swap prices rise faster than long-term swaps, investors will make a profit. If the market moves on a small scale, the short/long positions will cancel each other out, making the total position market neutral. With the move by the U.S. Federal Reserve, announced in the third quarter of 2011, to implement a massive Operation Twist agenda, its easy to see why CIO initially adopted their strategy. The aim of the Feds objective was to, indeed, flatten the U.S. Treasury yield curve and CIO seemed to be going with the flow. So, where did they go wrong? The key point is that, to maintain the flattener strategy, you have to keep your long and short positions balanced. As these products continually either shift in value or expire, a trader has to frequently enter into new trades. Also, in order to keep the balance between products that does not move step-in-step, an accurate ratio must be established. As shorter term products are less volatile than longer term products, a one-to-one ratio on rate curves is insufficient. Traders will need a greater amount of the near term product to offset the longer dated maturities. Disrupting this ration degrades the hedge into an outright long or short position on the index, leaving it enormous exposure to the market. 6 Worlds Collide At the Harbor Investment Conference that took place in February 2012, leading hedge fund managers came together and were subjected to the sales pitch for one particular off-the-run CDX, the Series9 IG 10-year Index (where IG is short for Investment Grade.) The products appeal was the existence of several of its bond components that had subsequently been downgraded since the indexs inception in 2007.13 Given the lack of a department Treasurer since October 2011, the introduction of competing top line objectives at the start of 2012 (discussed below,) and the initial losses beginning to occur in January, CIO must have thought they had found the Holy Grail. But, prudence was out the door. Iskil built up $12 billion of shorter term maturities matched up with $20 billion of longer term maturities in the Series 9. Anyone active in calendar spreads would recognize this as an outright directional trade. In addition, Iksils portion of the overall CDS market was so large that he was quickly running out of counterparties to his accumulating positions.12 As soon as JP Morgan couldnt hide its positions any more, due to their overwhelming presence in this niche market (and whatever leaked out at the Harbor conference), hedge fund traders started to collectively move against them. Ultimately, the other market participants were able to alter the price for what JP Morgan was looking for and caused their extraordinary losses. And, it would take CIO several months of mounting losses to accept this truth. 12 A Game of Poker At times, it seems that CIO was infected with many elements of the gamblers psychology including overconfidence and belief perseverance. Up until that point, it appears they had attributed their significant successes to themselves rather than other market factors. In tandem, they anchored their values of the portfolio and preserved their belief of this value by refusing to accept price movements as real and citing leaks of their positions as the source of divergence.16 While CIO was right that there were outside forces putting pressure on prices unrelated to typical market conditions, they were wrong in believing that it wasnt real or sustainable. If CIO had disclosed the position and loss every step of the way, the situation may have been reversible. What was At Risk? 12 On top of all this, they had a major problem with their Value-at-Risk (VaR) model, a statistical risk measure used to base how much a trader might lose in one day. A precise VaR model is important and the one that CIO used was different from the rest of banks. It developed the VaR model on its own and the weight setting was lower. CIO had been petitioning to implement a new model throughout this key period, late in 2011 and early 2012. The VaR number decreased dramatically to $67 million per day from $129 million. Iksils VaR alone was often $30 million to $40 million, sometimes reaching $60 million. Thats almost equal to level for the firms entire investment bank. A minor adjustment in the mathematical calculations (incorrectly omitting a division symbol to create an average rather than a sum), significantly altered the output of the model. 12 In the report released by JP Morgan, there were some risk protocol breakdowns in the models development, approval and implementation process. For instance, back testing was not rigidly required by the firms management as only two months worth was done to gain the models approval. So, it became operational with many technical problems embedded in the system including the increased potential for error by requiring manual data entry. Further, the developer and the operator were the same person which breaches the separation of duties best practice. This combination left CIO depending on a highly inaccurate model. Observations An influential company, like JP Morgan, who prided themselves on being a leader in managing financial risk, took a wrong turn and lost sight of core fundamentals. ÂÂ  In a report released by the Task Force of JP Morgan, there are a few areas where they feel that the CIO failed to do their job in terms of judgment and acting on their concerns. ÂÂ   One such area was how upper management established inconsistent priorities for the Synthetic Credit Portfolio that proved near impossible to follow simultaneously. The priorities included keeping the risk balanced while managing both VaR, gains/losses, and reducing the Risk Weighted Assets (RWA). When trying to achieve these all at once, varying priorities created conflict and fostered a platform to develop their unusual strategies in an effort to meet multiple objectives. ÂÂ  If CIO management had listed these priorities in order of true importance while also developing a way to act on them, there would have been a stronger framework to reconcile front line strategies against top line goals. In addition, a type of fire sale, exit strategy needed to be outlined in advance of the trading positions going awry. ÂÂ   It is no wonder that from this complicated profile of priorities there come even more complex trading strategies. When theyÂÂ  were conceived, the CIO managers, as well as their personnel, did not fully understand how to use these products in a way that managed the risk they were creating. These strategies should have undergone extensive analysis on their impact to the RWA, especially, given their notional amounts prior to trading. Ultimately, upper management was responsible for taking more time to develop comprehensive trading strategies that required the whole department had extensive product knowledge under numerous scenarios. The CIO didnt obtain or even ask for detailed reports on specifically the Synthetic Credit Portfolio. By not having reports generated in real time, the Chief Investment Officer had little knowledge on what the trading activity looked like on a day to day basis. ÂÂ  Instead, she just simply checked the portfolios profits and losses. Even more concerning is the lack of efficient communication between traders and senior members and officers of the department. Reports show that multiple warnings were given by traders to different senior members expressing concern regarding the riskiness and volatility of this portfolio. A catalyst for this breakdown was the significant changeup in managers within a short period of time beginning in late 2011 through early 2012. However, a company of JP Morgans size and history should be able to easily withstand routine shakeups of this nature. Consistent communication, seamless management transitions, and intimate knowledge of shifting valuations are not areas to be lacking in especially when it comes to the scale of assets JP Morgan possesses. Despite numerous attempts to voice concerns during the first few months of 2012, CIO management did not disclose any problems or losses for the portfolio to the board. The Aftermath Internal Impact While the firms share price took a huge plunge immediately following the height of the losses, a year later the stock has more than recovered. Its overall ranking as a world company has dropped, however, from 36 in 2011 to 51 in 2012.1 Many members of the Synthetic Credit Portfolio team, including Messrs. Goldman, Wilmot and Weiland departed the company along with Drew. Dimon took a 50% pay cut for 2012 and the firm was seeking claw backs from various other employees as well. Several additional steps have been implemented to better manage CIO since then. With new faces in CIOs leadership team, such as CIO Matthew Zames and CFO Marie Nourie, the department has upgraded its reporting and modeling. Reports now include detailed trading and positions data and VaR models have automated control features. A CIO Investment Committee meeting is now held weekly and Business Control Committee meetings are held monthly with a cross-reference team with the Risk Committee. New departments to supplement CIO, called Deputy CRO/Head of Firm-wide Market Risk to monitor market risk and Wholesale Chief Credit Officer (WCCO) to assess the wholesale credit risk, were also created. Actions to strengthen the model review group are focused on selecting the most significant models, testing and reviewing risk exposure precisely, specifying different models to different products, and updating the database. CIO also enhanced the limit structure, such as 53 new country exposure limits, also applicable to both CIO and Treasury, as a subset to the Firm-wide Country Exposure Limits (From: JPMorgan Report on Trading Loss). These new risk policies offer specified rules to CIO and require them to limit the risk onto a transparent and controllable scale. Social Impact According to OCCs quarterly report on bank derivatives activities, in the fourth quarter of 2011, the big five banks (JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs and HSBC) held 95.7% of the U.S. $ 230.8 trillion derivatives in the outstanding balance. After JPMorgans announcement of the huge loss, major banks stock price acted as: Citigroup fell 2.4 percent, BoA fell 1.7%, Morgan Stanley fell 3.2% and Goldman Sachs fell 2.7%. As the Butterfly Storm presents, a small abnormal fluctuation will bring a disaster to the worldwide financial industry. And the amount at stake is powerful enough to destroy it. Standard Poors and Moodys both downgraded the rating of JPMorgan after the firm disclosed its initial trading loss of $2 billion. As we can see from the chart, the last credit rating was lowered and future rating downgrades are possible reflecting increased concerns about the banks hedging capabilities. Macintosh HD:Users:xuli:Pictures:JPMorgan rating from SP.png The next graph shows Moodys rating downgrade in response to JPMorgans London branch problems. It was downgraded from Aa2 to Aa3 since 21 Jun 2012. Macintosh HD:Users:xuli:Pictures:JPMorgan London Branch from Moodys.png The following chart shows the rating for JPMorgan Chase financial strength declining from B to C in the middle of 2012. Macintosh HD:Users:xuli:Pictures:JPMorgan Chase from Moodys.png Whats more, the rating on long-term debt was lowered from Aa3 to A2, which means Moodys regards JPMorgans debt as riskier making it more costly for them to raise funds in the future. In addition, it has altered the risk profile for existing bondholders portfolios. Regulatory Impact Dimon was requested to appear in congressional hearings regarding the loss. The Federal Reserve and OCC called for JPMorgan to improve its risk management team and rebuild the CIO department structure. In addition, federal regulators commanded JPMorgan to improve its money-laundering prevention. Conclusion As Mr.Dimon said to Meet the Press: we have a huge security portfolio, we are a big bank. In fact this security portfolio has unrealized gain of $80 billion, but in how we manage that portfolio we did lose $2 billion. We took far too much risk, the strategy we had built is badly verified and badly monitor. It should never happen. Certainly, Jamie Dimons long-standing reputation and willingness to cooperate in various sentence hearings displays a role model case for handling such crises. Weathering this storm required the collaborative effort of many of the firms top talent. From assessing the damage, to outlining more than a band aid fix. Dimon, speaking as a panelist at the 2013 Davos convention, pointed out that these losses were sustained in an area protected from clients accounts. However, this was a major malfunction in the company, that consults other international firms to avoid this. When a huge $6 billion loss occurs in a department aimed at reducing risk rather than taking it, it comes as no surprise that business leaders began taking notes. The trades and risks were in such great magnitude that it is crucial with true risk management for the officers to have been monitoring this activity closely, accurately and often.

Oprah Winfrey The Biggest Adventure You Can Take

OPRAH WINFREY â€Å"The biggest adventure you can take is to live the life of your dreams.† Oprah lives by this quote because although she had a troubled childhood, she pursued her dreams of being on television. Oprah Winfrey has had a huge impact on society by overcoming her troubled childhood , creating a media empire and give billions of dollars to various charities. These charities include opening an all-girls school in Africa. Born January 29, 1954 on a farm in Kosciusko, Mississippi, to 20 year-old Vernon Winfrey and 18 year-old Vernita Lee. Her parents, who were not in love considered Oprah to be an utter mistake. Winfrey’s father was in the service when she was born, which caused her mothers wanting To Leave Mississippi.In fact ,Oprah s father did not know he had a daughter. Oprah s mother informed him by a note in the mail asking him to send clothes and money because they had very little . Until age 6, Oprah lived with her maternal grandparents. Oprah was orig inally named after Ruth in the bible. Her name was Orpah, but progressed into Oprah because people kept pronouncing her real name wrong. Oprah started practicing her oral skills at the age of 3 in church on holidays. She was quickly recognized as gifted by locals. Oprah’s teenage cousin , other male relatives and family friends sexually abused Oprah at the age of nine and this was ongoing for roughly several years. At age 13, after suffering years of abuse , Winfrey ran awayShow MoreRelatedFundamentals of Hrm263904 Words   |  1056 Pagesmultiple study paths, to self-assessment, to a wealth of interactive visual and audio resources, WileyPLUS gives you everything you need to personalize the teaching and learning experience.  » F i n d o u t h ow t o M A K E I T YO U R S  » www.wileyplus.com ALL THE HELP, RESOURCES, AND PERSONAL SUPPORT YOU AND YOUR STUDENTS NEED! 2-Minute Tutorials and all of the resources you your students need to get started www.wileyplus.com/firstday Student support from an experienced student user

Different Forms of Insulin for Management of Diabetes Mellitus

Question: What are the side effects of using insulin, Recent advance of the formulation, Man made vs porcine and bovine insulin, inhaled insulin is an important subject and Is it another tool in the box? Answer: Abstract While insulin forms the basis of diabetic treatment, the regimen, formulation and administration would vary by contexts of the passes. The administration may be through injection, inhalation or other form, but all work towards the tempo of insulin action (enactment) and diminishing of hypoglycemia and glucose variability (Tibaldi, 2012). The bolus insulin is a novel short-acting category of insulin which helps control of glycemic level by facilitating food absorption and insulin. The substances are absorbed quite rapidly than natural human insulin. Bolus usually requires greater basal insulin supply due to their shorter action duration. Again under this category different types of insulin have differential effects based on administration for type 1 diabetes. Similarly, Basal insulin includes longer functioning and intermediate functioning insulin. These types of insulin lower the level of blood glucose more gradually and stay longer than the rapid acting insulin. Under this category too different types of insulin have differential effects based on administration for type 2 diabetes. It is realized that in spite of the advances brought forward in terms of development of insulin, provision of better coverage of physiologic type of basal insulin and reduction of risk associated with hypoglycemia risk continues to exist (Tibaldi, 2012). Hence further research would be able to develop better strategy of insulin delivery to optimal level. Conclusion Before human insulin came to being, till 1980, diabetic treatment greatly depended on animal based insulin, mainly from cow and pigs. Currently use of human insulin has taken over animal insulin largely even if availability of animal insulin continues. In contrast to human based insulin, the porcine insulin, or pork insulin varies biochemically from the former by an additional residue of amino acid. The porcine insulin is often less soluble than human insulin, hence the latter is more rapidly absorbed. Bovine insulin which is prepared from cow greatly resembles with human insulin but varies by molecular structure with 3 residues of amino acid (Naik et al. 2011). While side effects from Insulin use in case of diabetics could be uncommon, some cases may lead to allergy. Few of them even cause severe and significant magnitude of risk towards health. Mild allergy resulting into itching, swelling or sustained kind of nausea added with vomit could also surface as side effect of insulin (Na ik et al. 2011). Inhalable type of insulin is a sort of new development which came into being for a short time during 2006-07 and again a year back mainly in UK and USA. While it was considered useful for type 2 and to some extent type 1 diabetic treatment, it did not get better acceptance in many circle due to poor cost effectiveness (Slam, 2008). Advances in recent days are increasingly emerging in use and formulation of insulin mainly in intensiveness of administration. Some of them are possibility of needle less injection and without pain delivery. New technology on inhaling devices of insulin that can help formulation in the form of fine particle based powder. These technologies ensure better delivery system in terms of maintaining release of optimal amount, flow rate and volume of insulin required by patients. References: 1. Tibaldi, JM 2012, Evolution of insulin development: focus on key parameters,.Adv Ther.,;vol. 29, no. 7, pp. 590-6192. Naik, Aanand D; Palmer, Nynikka; Petersen, Nancy J; Street Jr , Richard L; Rao, Radha; Suarez-Almazor, Maria Haidet, Paul 2011, Comparative Effectiveness of Goal Setting in Diabetes Mellitus Group Clinics: Randomized Clinical Trial, Arch Intern Med. 171, No. 5, pp. 453-459.3. Onwudiwe, Nneka C; Mullins, Daniel; Winston, Reed A; Shaya, Faida T; Pradel, Francoise G; Laird, Aurelia Saunders, Elijah 2011, Barriers To Self-Management Of Diabetes: A Qualitative Study Among Low-Income Minority Diabetics, Ethnicity Disease, Volume 21, Winter 2011 Pp 27-324. Quattrin, T 2004, Inhaled insulin: recent advances in the therapy of Type 1 and 2 diabetes, Expert Opin Pharmacother, vol 5, no. 12, pp. 2597-2604.5. Slam, Jean-Louis 2008, Inhaled Insulin: Promises and Concerns, J Diabetes Sci Technol. vol. 2, no. 2, pp. 311315. Slam, Jean-Louis 2008, Inhaled Insulin: Promises and Concerns, J Diabetes Sci Technol. vol. 2, no. 2, pp. 311315.

Manufacturing Process Redesign

Table of Contents Statement of the Problem Scope of the Project Stakeholder Analysis Methodology Timeline of the project Measurement system analysis Reference Statement of the Problem The problem in the research is presented in the process. The root of the problem can be traced back to the functioning of the blow molding and assembly processes. It is important to note that there are over 120 shells that go into waste every day. The target of the research will be to modify the process so as to ensure that there are no cold shells at any stage of the process.Advertising We will write a custom report sample on Manufacturing Process Redesign specifically for you for only $16.05 $11/page Learn More Cold scraps have the effect of increasing costs and lowering revenue. Due to cold scraps, the company is not able to maximize its profitability. Dealing with this problem has been identified as being one of the best ways to ensure that the company is back to it s profit making ways. The project objective statement is: To reduce the number of cold shells scrapped to 0. Scope of the Project To better understand the scope of the project, it is important to look at the key terms used in the project. The term unit refers to scrap. These are the cold shells at the end of the project that cause high scrap cost. Defect may refer to a product or a process. The cold shells that are scrapped by the robot in the course of production are referred to as defects. Although the project is concerned with the entire production process, the focus will be on the cooling and assembly processes. The project seeks to establish the root of the problem through assessing the process of cooling as well as the assembly line. The fixtures and details contained in the cooling fixtures as well and in the assembly line will be the main focus of the project. Although the project is set to encounter constrains, the major constrain will be in regards to the two different cus tomer programs which share the same blow molding process. Stakeholder Analysis An analysis will be conducted on the stakeholders to evaluate their position in regards to the goal of the project. Some of the critical analyses that will be conducted are in regards to the facility controller, VP operations, executive VP, and business unit management. In analysis of the Executive VP, the action taken will initiate a meeting with the DC to bring him up to speed. In analysis of the VP operations, the action taken will be centered on the great involvement from D and the excellent support since he has taken over the VPO position. In the facility controller, the action taken will be focused on the savings that can be realized as a result of achieving the goal of this project.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In regards top the business unit manager, the focus will be on the assigning of staff members and the amount of personal involvement. The nature of decisions being made will also be an important factor to take into consideration. Methodology The research will commence on the assessment of the blow molding. The focus here is laid on the cooling process on machine 5. In this analysis, the position where the robot waits for the signal is an important area of assessment. Other areas of assessment will include the process of picking the tanks, the weighting process, and the cooling process. Because so much scrap is realized from this section of the entire process, it will be important to look at the fine details and the process involved in weighting, molding, and cooling. Timeline of the project In the first, there will be important activities that will take place. This will include the project charter, assessment and implementation of the CTQ tree, and the project financials. The majority of the processes that will take place in the first month will be concerne d with the definition and envisioning of the future state. The second month of the project will be concerned with measurement and mapping. Here, the process mapping will be done as well as the screening of tools to be used in the process. The MSA will also be tackled extensively during the second month. In the MSA, there are a number of processes that will be dealt with extensively. This will include assessing constrains, providing training, assessing the baseline capability, high level process map. The third month will deal with analysis. Most of what will be done in the third month will be to analyze. There will also be a focus on the waste priorities and detailed analysis. The analysis conducted here will be divided into the passive quantitative analysis and passive qualitative analysis. The fourth month will be all about improvement – the activities therein concerned with the selecting lean methods as well. This will be divided into improvement summaries, experiment execu tion, and experimental plan. The fifth month will be concerned with control. This will be divided into the process controls, handing off to process owners, final process capability, as well as project sign off (Kock, 2007).Advertising We will write a custom report sample on Manufacturing Process Redesign specifically for you for only $16.05 $11/page Learn More Measurement system analysis The achievements made in the course of the process are centered on the system analysis. The measurement system analysis is the gauge through which the different processes contained in the research are weighed. This tool is also important as it provides information about how the system records different aspects involved in production. One of the greatest changes the system has been able to achieve through this system is in regards to the recording process. One of the important things that took place in regards to the MSA is the recording of cold scrap at different intern als. This was done from the blow mold controller. It was done manually and the data was automatically recorded. A paired T test was also done. The main aim of this was to compare the two methods (Infoman and Mold controller) that are contained in production. The practical problem was presented in the question; is the mold controller recording method identical statistically to Infoman recording method? Baseline capability and process stability were also important in the analysis. A fish bone diagram was created where the different factors involved in production were analyzed. These were all gauged in regards to their effect on production, performance, and the goal of the project. Some of the factors analyzed include label accuracy, light curtain status, swipe card reader, part present sensors, lumberjack processes, torque, arrow mark, alignment line, leak, pressure, and continuity. The fish bone diagram also looked at the tank shell, ORVR, ROV, studs, pads, nylon tubes, seals, rings, clamps, hoses, oil, markers, heat shields, and racks. Lean hand, operator, and downline technology were also some of the factors that were analyzed in regards to performance. Some of the amendments that were made in regards to these factors include water, protective equipment, light, and space. Maintenance manuals were also amended as well as the work instructions and the operating manuals. In a bid to increase performance, some of the important issues that were taken into consideration included tank lifters, air guns, continuity testers, leak testers, light curtains, transfer stations, welders, pad stations, FDM stations, and swipe card readers (Kock, 2007). Reference Kock, N.F. (2007). Systems analysis design fundamentals: a business process redesign approach. California: Sage Publications.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This report on Manufacturing Process Redesign was written and submitted by user Aurora Scott to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.