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Questions and Answers of
Management Leadership
What is meant by the term IT applications portfolio?
Why is it important for business managers to participate in IT investment decisions?
Why might a financial measure like return on investment (ROI) be important for assessing a proposal to develop or purchase a new software application?
Why are many organizations contracting with outside organizations (i.e., outsourcing) to provide some of their IT services or develop some of their applications?
What types of skills and experiences should be considered when choosing a person to fill a chief information officer (CIO) position? Why might these skills and experiences be weighted differently by
Research some examples of "shared services" organizations that include IT. What are the primary advantages associated with this "business within a business" structure? Why might an organization
Many chargeback systems result in "tensions" between IS and business leaders. Why do you think this often happens, and what might an IS leader do to resolve these?
Why have many organizations decided to purchase applications when they can, rather than custom-develop them? How does this type of policy impact the IT skill sets needed for the IS organization?
How might the role of IS leaders and other IS employees change as more B2B e-business applications are conducted over the Internet?
What is HIPAA, and what are some of its potential impacts on IT workers in hospitals and other health care provider organizations?
What were some of the lessons learned about business continuity planning that can be derived from organizational experiences following the 9/11 attack on the World Trade Center in New York? Do you
If you were offered the position of a CISO for a large organization, would you accept this role, and why or why not? Under what circumstances might you request a reporting relationship to the CIO of
Reflect on when you last received authority to have a computer account with an organization (such as your university), and comment on your own experience when you were asked to sign (or otherwise
How easy is it to find an information security policy (such as an acceptable use policy) at your university? At an organization where you are an employee?
Describe the services provided by a credit reporting service such as TRW, Equifax, and Trans Union. How are these services provided?
What are the IS management advantages that can be achieved under a shared services structure for a firm such as BAT?
What is the potential advantage of using a template for SAP R/3 implementations at BAT?
Summarize the options being considered by APSS for the future. Then provide a recommendation, along with a rationale?
If you were Mary would you accept Frank = s offer to copy his Microsoft Office Professional? Why or why not?
Identify the key players in this case. Describe each player's role and their relationship to each other. Describe the IS management position(s) that were missing at Clarion and suggest candidate(s)
What organizational changes are necessary in order to implement the long-term plan derived in question number three above?
What factors are holding Teletron back from growth? Where are Teletron's growth opportunities?
Evaluate the Virtual Analyzer software versus the needs heard in the market?
What additional information would be useful to Tim in order to make a final decision?
Financially evaluate the proposed change in the business model?
What should Tim do now?
Why should people be concerned when their names, addresses, and Social Security numbers are made available on the Web?
Roberts claims that the Privacy Act of 1974 forbids the university from even asking for Social Security numbers. Why are Social Security numbers routinely used by organizations to identify persons?
Roberts claimed that he was doing everyone a favor by revealing the university's security weakness, and that this was necessary because no one cares about security unless they are personally put at
Roberts also makes the point that companies, and even state governments, are selling this kind of information every day and no one seems to be concerned about it. Does this concern you? What can be
What responsibility does the university have for this incident?
Marine International manufactures an aquarium pump and is trying to decide whether to produce the filter system in-house or sign an outsourcing contract with Bayfront Manufacturing to make the filter
A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing: Annual fixed
A university currently has a recycling program for paper waste. The fixed cost of running this program is $8,000 per year. The variable cost for picking up and disposing of each ton of recyclable
What information would you need to fully answer the questions that IBM Rochester uses for selecting measures and indicators that are listed in Section 3 of this chapter? Where would you get this
What is the average defection rate for grocery store shoppers in a local area of a large city if they spend $60 per visit, shop 52 weeks per year, the grocery store has a 12 percent gross margin, and
Go to the Baldrige Web site and find the links to the most recent award recipients. Review one of the application summaries and describe the types of performance measures that these companies use.
Each day, FedEx processes approximately 85,000 shipments. Suppose that FedEx identified the following numbers of errors during a 5-day week (see the "FedEx: Measuring Service Performance" box):
Under which perspective of the balanced scorecard would you classify each of the following measurements? a. On-time delivery to customers (customer perspective) b. Time to develop the next generation
A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500. a. What is the productivity
A fast-food restaurant has a drive-through window and during peak lunch times can handle a maximum of 50 cars per hour with one person taking orders, assembling them, and acting as cashier. The
A key hospital outcome measure of clinical performance is length of stay (LOS); that is, the number of days a patient is hospitalized. For patients at one hospital with acute myocardial infarction
Customers call a call center to make room reservations for a small chain of 42 motels located throughout the southwestern part of the United States. Business analytics is used to determine how and if
1. What are the major problems facing the credit card division?2. What steps are required to develop a good internal and external performance and information system?3. How should internal and
1. What issues do you see with respect to "green" in this business? 2. What's the gross margin on the physical goods (i.e., grass seed and fertilizer) versus the application service? 3. What are two
A manager of Paris Manufacturing that produces computer hard drives is planning to lease a new automated inspection system. The manager believes the new system will be more accurate than the current
In Problem 10, assume the cost factors given have not changed. A marketing representative of NEW-SPEC, a firm that specializes in providing manual inspection processes for other firms, approached
A company is considering three vendors for purchasing a CRM system, Delphi Inc., CRM International, and Murray Analytics. The costs of the system are expected to depend on the length of time required
Suzy's Temporary Employee (STE) business, located in a big city, can do an on-line criminal background check in-house for $1.46 per search with a fixed cost of $22,000. A third party on-line security
Suppose that the specifications for a part (in inches) are 6.00 ± 0.05, and that the Taguchi loss function is estimated to be L(x) = 6,500 (x - T)2. Determine the loss if x = 6.07 inches.
A quality characteristic has a design specification (in cm.) of 0.200 ± 0.020. If the actual process value of the quality characteristic exceeds the target by 0.020 on either side, the product will
The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of these services over one
Two cooling fans are installed in some laptop computers. Suppose the reliability of each cooling fan is 0.99. What percent improvement in reliability does adding the second fan provide?
Given the following diagram, determine the total system reliability if the individual component reliabilities are: A = 0.98, B = 0.92, and C = 0.85. (Hint: Use equations 6.2 and 6.3 and note that the
A checkout line at a grocery store takes an average of 4 minutes to ring-up a customer's order. On average 5 customers are in the checkout line. What is the average number of customers per hour that
A manufacturer's average work-in-process inventory for Part #2934 is 500 parts. The workstation produces parts at the rate of 200 parts per day. What is the average time a part spends in this
A 40,000-seat college football stadium is used 22 times for games, concerts, and graduation ceremonies. Each event averages four hours and assumes the stadium is full for each event. The stadium is
The demand for intensive care services in an urban hospital is 14 patients per hour on Mondays while intensive care nurses can handle 3.4 patients per hour. What is nurse (labor) utilization if four
What is the implied service rate at a bank teller window if customer demand is 34 customers per hour, two bank tellers are on duty, and their labor utilization is 85 percent?
For the in-line skate example described in Problem 10, design a production line to achieve an output rate of 90 per hour.
You have been asked to set up an assembly line to assemble a computer mouse. The precedence network is shown in Exhibit 8.12; task times in minutes are given in parentheses. There are 480 minutes of
Peter's Paper Clips uses a three-stage production process: cutting wire to prescribed lengths, inner bending, and outer bending. The cutting process can produce at a rate of 150 pieces per minute;
In Problem 6, suppose the line is balanced using 10 workstations and a finished product can be produced every 4.2 minutes a. What is the production rate in units per day? b. What is the assembly line
Describe a value chain that creates and delivers services such as in airlines, banking, health care, hotels or education and how it is becoming more green and sustainable.
Cunningham Products is evaluating five possible locations to build a distribution center. Data estimated from the accounting department are provided below. The annual production is estimated to be
Given the location information and volume of material movements from a supply point to several retail locations for Bourbon Hardware, find the optimal location for the supply point using the
For the Davis drugstore chain in Problem 8, suppose that after five years, half the customers from segment 4 are expected to move to segment 2. Where should the drugstore shift, assuming the same
Due to county and state budget cuts Archer County Courthouse now has only two clerks and two typists with all other information the same as in Problem #10. What is the current labor utilization of
The roller coaster at Treasure Island Amusement Park consists of 15 cars, each of which can carry up to three passengers. According to a time study each run takes 1.5 minutes and the time to unload
The historical demand for the Panasonic Model 304 Pencil Sharpener in units is: January, 60; February, 80; March, 75; April, 95; and May, 90. Using a 2-month moving average, what is the forecast for
In Problem 2, suppose that the forecast for January was 70. Using single exponential smoothing with α = 0.2, compute the exponential smoothing forecast for February through June?
Crew Soccer Shoes Company is considering a change of their current inventory control system for soccer shoes. The information regarding the shoes is given below.Average demand = 200 pairs/weekLead
Suzie's Sweetshop makes special boxes of Valentine's Day chocolates. Each costs $10 in material and labor and sell for $15. After Valentine's Day, Suzie reduces the price to $9.00 and sells any
The Welsh Corporation uses 10 key components in one of its manufacturing plants. The data are provided in the worksheet C12P3 in the OM4 Data Workbook. Perform an ABC analysis. Explain your decisions
MamaMia's Pizza purchases its pizza delivery boxes from a printing supplier. MamaMia's delivers on-average 200 pizzas each month (assume deterministic demand). Boxes cost 20 cents each, and each
Refer to the situation in Problem 6. Suppose the manager of MamaMia's current order quantity is 200 boxes. How much can be saved by adopting an EOQ versus their current Q = 200?
Each bank teller workstation is forecasted to process 400 transactions (the end-item) on Friday. The bank is open from 9:00 a.m. to 7:00 p.m. on Friday with 90 minutes for lunch and breaks. Three
Chapman Pharmaceuticals, a large manufacturer of drugs, has this aggregate demand forecast for a liquid cold medicine.
Given the bill of materials for the printer cartridge (A) shown below, a gross requirement to build 170 units of A, on-hand inventory levels for each item as shown in the table below, and assuming
Consider the same bill of material and information in Problem #8 but change component part B (1) to B (2) and the gross requirements for A to 220 units. Compute the net requirements for each item
Monday morning Baxter Industries has the following jobs waiting for processing in two departments, milling and drilling, in that order.
Two international banks are integrating two financial processing software systems as a result of their merger. Preliminary analysis and interviews with all parties involved resulted in the following
(1) Do you think the following jobs require standard times? Explain your reasoning. a. Carpet installers b. Software programmers c. Cable T.V. installers d. Hotel maids e. Bank tellers f. Airline
A manufacturer has committed to supply 16 units of a particular product in 4 months (that is, 16 weeks) at a price of $30,000 each. The first unit took 975 hours to produce. Even though the second
What sample sizes should be used for these time studies?a. There should be a .90 probability that the value of the sample mean is within 2 minutes, given that the standard deviation is 4 minutes.b.
Compute the number of observations required in a work-sampling study if the standard deviation is 0.2 minute and there should be a 90 percent chance that the sample mean has an error of(a) 0.15
Exhibit A.10 shows a partially completed time-study worksheet. Determine the standard time for this operation.
Using a fatigue allowance of 20 percent, and given the following time-study data obtained by continuous time measurement, compute the standard time.
Provide the data missing from the following information. Time is in minutes?
A part-time employee who rolls out dough balls at a pizza restaurant was observed over a 40-hour period for a work-sampling study. During that time, she prepared 550 pieces of pizza dough. The
Linda Bryant recently started a small home-construction company. In an effort to foster high quality, rather than subcontracting individual work, she has formed teams of employees who are responsible
1. Who's case is justified-Mr. Davis or Mr. Bracket? Explain. 2. What other issues should be considered? 3. Would you present these data in court? Why or why not? 4. What are your final
Trucks using a single-server loading dock have a mean arrival rate of 14 per day. The loading/unloading rate is 19 per day.a. What is the probability that the truck dock will be idle?b. What is the
Using the spreadsheet in Exhibit B.6 (Multiple-Server Queue.xlsx), determine the effect of increasing passenger arrival rates of 10, 12, 14, 16, and 18 on the operating characteristics of the airport
Trosper Tire Company has decided to hire a new mechanic to handle all tire changes for customers ordering new tires. Two mechanics are available for the job. One mechanic has limited experience and
Agan Interior Design provides home and office decorating assistance. In normal operation an average of 3 customers arrive per hour. One design consultant is available to answer customer questions and
Keuka Park Savings and Loan currently has one drive-in teller window. Cars arrive at a mean rate of 10 per hour. The mean service rate is 12 cars per hour.a. What is the probability that the service
Consider a two-server waiting line with a mean arrival rate of 40 per hour and a mean service rate of 60 per hour for each server.a. What is the probability that both servers are idle?b. What is the
Refer to the Agan Interior Design situation in Problem 3. Agan is evaluating two alternatives: 1. Use one consultant with an average service time of 8 minutes per customer; 2. Expand to two
Design a spreadsheet similar to Exhibit B.3 to study changes in the mean service rate from 10 to 15 for λ = 9 passengers per minute.
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