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Management Leadership
Running at maximum capacity, what is the efficiency of the line?
How should the line be redesigned to operate at the target 300 units per day assuming that no overtime will be used? What is the efficiency of your new design?
What other issues might Toshihiro consider when bringing the new assembly line up to speed?
Explain the differences between the ISO 9000 certifications and the CAE awards.
"To achieve Six Sigma Quality, a process must produce no more than 3.4 defects per million opportunities." Does this mean that Six Sigma cannot be applied to projects or job shop type business since
In the situation described in Question 8, what would be the effect on the cost of quality to the supplier?In Question 8, In an agreement between a supplier and a customer, the supplier must
Develop a diagram that summarizes what Toyota has done in response to its recent quality recall problems. Focus on the changes by functional area (i.e. Management, Product Design, Quality, and
Evaluate the statement in the case made by Toru Sakuragi that "... Toyota has been caught between a need to cut costs to overcome the strong yen and the need to improve quality to prevent recalls."
Suggest improvements that you feel could be made to Toyota's quality program. Also, what might Toyota do to improve its image to the consumer relative to quality? a. If the specification is such
Explain how the new process improves capacity for the MRI machine.
Despite this increased capacity, do some patients get scheduled later in the new process?
How might you alleviate the situation in 2) (Hint: consider the JIT set up philosophy)?
In terms of batch size, explain the parallel between this situation and the EOQ model.
Which of the changes being considered by the manager of Cheng Parts Company go counter to the JIT philosophy?
1. Make recommendations for JIT improvements in such areas as scheduling, layout, Kanban, task groupings, and inventory. Use quantitative data as much as possible; state necessary assumptions. 2.
Outline a plan for the introduction of JIT at Cheng Parts Company.
Eliminating the queue of work dramatically quickens the time it takes a part to flow through the system. What are the disadvantages of removing those queues?
1. How do you think the machine operators would react to the change? 2. What would you do to ensure that the operators were kept busy?
Create a value stream map of this supply chain. What other information is needed?
Where is there risk for supply chain disruptions or stoppages to the flow of materials?
Where do opportunities reside in improving supply chain operations and how has VSM helped to reveal these?
What are the advantages of using the postponement strategy?
Acting as an outside consultant, what would you recommend that Pepe do? Given the data in the case, perform a financial analysis to evaluate the alternatives that you have identified. (Assume that
Acting as an outside consultant, what would you recommend that Pepe do? Given the data in the case, perform a financial analysis to evaluate the alternatives that you have identified. (Assume that
Are there other options that Pepe should consider?
Evaluate the cost associated with the way Applichem's plant capacity is currently being used?
Determine the optimal use of Applichem's plant capacity using the Solver in Excel.
What would you recommend that Applichem management do? Why?
Calculate the average customer arrival rate and service rate per hour.
Explain how the seven differences between goods and services would be applied to a major airline service. Provide airline examples that illustrate each difference?
Geoff Colvin of Fortune magazine discussed the concept of a ""friction-free economy" in which labor, information, and money move cheaply and quickly through the firm's global supply chains. (The term
Explain how the customer benefit package is enhanced from the customer's viewpoint by adding digital content to a physical good such as an automobile, cell phone, or appliance? Exactly how is value
Each day, a FedEx competitor processes approximately 70,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a 5-day week
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 conclusions do you reach when you calculate descriptive statistics for the answers to each of the survey questions in the database?2. If you average the responses to the first seven questions
How do the "Veja Company: Sneakers with a Conscience" operations and supply chain decisions, and practices support their mission and strategy? Provide examples and explain. Report your findings in a
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
Suppose that in Problem 12, a forecasting study determines that he probabilities of demand volume are Low = 0.2, Medium = 0.2, and High = 0.6. Using the techniques in Supplementary Chapter SC E,
For the information provided in Problem 13, compute the expected value of perfect information (EVPI) as discussed in Supplementary Chapter SC E. Clearly explain how to interpret EVPI for Edwards
Suzy's Temporary Employee (STE) business, located in a big city, can do an on-line criminal background check in-house for $1.29 per search with a fixed cost of $29,000. A third party on-line security
Propose an explicit service guarantee for a fast-food restaurant. Clearly explain why you included the features of your service guarantee (maximum of one page). Do you think that a restaurant would
Suppose that the specification for a part (in inches) are 6.00 ± 0.02, and the Taguchi loss function for some part is estimated to be L(x) = 6,800 (x -T)2. Determine the loss if x = 6.05 inches?
A quality characteristic has a design specification (in cm.) of 0.200 ± 0.02. If the actual process value of the quality characteristic is at the boundary of the tolerance on either side, the
Suppose that the design specifications for hydraulic cylinder are 10.00 ± 0.10 centimeters, and that the Taguchi loss function is estimated to be L(x) = 1,400 (x - T)2.(a) Determine the estimated
Given the following diagram, determine the total system reliability if the individual component reliabilities are: A = 0.94, B = 0.82, and C = 0.87?
Research a USA company that recently moved a corporate headquarters or factory or research and development center from the USA to another country. What were the advantages and disadvantages for the
Microserve provides computer repair service on a contract basis to customers in five sections of the city. The five sections, the number of service contracts in each section, and the x, y coordinates
Supreme Auto Parts produces components for motorcycle engines. It has plants in Amarillo, Texas, and Charlotte, North Carolina, and supply factories in Detroit and Atlanta. Production and cost data
Milford Lumber Company ships construction materials from three wood-processing plants to three retail stores. The shipping cost, monthly production capacities, and monthly demand for framing lumber
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 Bay front Manufacturing to make the
Given the location information and volume of material movements from a supply point (warehouse) to several retail stores for Bourbon Hardware, find the optimal location for the supply point using the
The Davis national drugstore chain prefers to operate one outlet in a town that has four major market segments. The number of potential customers in each segment along with the coordinates are as
For the Davis drugstore chain in problem 5, suppose that after five years, half the customers from segment 1 are expected to move to segment 2. Where should the drugstore shift, assuming the same
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
Refer to the information provided in question 7 to answer the following:a. If demand is forecast to be 3,500 parts, should the firm make the part in-house or purchase it from a supplier?b. The
A university currently has a recycling program for paper waste. The fixed cost of running this program is $15,000 per year. The variable cost for picking up and disposing of each ton of recyclable
Use the Product-Process matrix to explain the implications for Boeing in changing from a project focus to more of a flow shop process as explained in the box "Rethinking Airplane Manufacturing
A manufacturer's average work-in-process inventory for Part #2934 is 995 parts. The workstation produces parts at the rate of 225 parts per day. What is the average time a part spends in this
The demand for intensive care services in an urban hospital is 9 patients per hour on Mondays while intensive care nurses can handle 4 patients per hour. What is nurse (labor) utilization if five
A telephone call center uses three customer service representatives (CSRs) during the 8:30 a.m. to 9:00 a.m. time period. The standard service rate is 3.0 minutes per telephone call per CSR. Assuming
What is the implied service rate at a bank teller window if customer demand is 26 customers per hour, two bank tellers are on duty, and their labor utilization is 90 percent?Service rate =?
1. How many minutes, on average, does it take for a first edition patron to get the requested book from time of entry into the library? (State all assumptions and show the calculations.)2. How many
Balance the assembly line in Exhibit 8.13 for(a) A shift output of 40 pieces and(b) A shift output of 20 pieces. Assume an eight-hour shift, and use the rule: choose the assignable task with the
Bass Fishing, Inc. assembles fishing nets with aluminum handles in an assembly line using four workstations. Management wants an output rate of 200 nets per day using a 7.5 hour work day. The sum of
Suppose that you were thinking about opening a new restaurant. How would you go about forecasting demand and sales?
Canton Supplies, Inc., is a service firm that employs approximately 100 people. Because of the necessity of meeting monthly cash obligations, the Chief Financial Officer wants to develop a forecast
As the assistant manager of a restaurant, how many servers will you need given the following information for Saturday night's dinner menu. • Demand (dinners served) = 100 dinners per hour •
For the Solved Problem on processing driver's licenses at the Archer County Courthouse in this chapter, if 40 drivers are to be processed each hour, how many clerks and typists should be hired
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.Currently the manufacturer has seven machines that operate on a two-shift
Given the following data for Albert's fabricating production area:Fixed costs for one shift = $80,000Unit variable cost = $7Selling price = $12Number of machines = 6Number of working days in year =
Tune Football Helmets Company is considering changing its current inventory control system for football helmets. The information regarding the helmets is given below. Demand = 200 units/week Lead
The J&B Card Shop sells calendars featuring a different Colonial picture for each month. The once-a-year order for each year's calendar arrives in September. From past experience the
Refer to the situation in Problem 6. Suppose the manager of Mama-Mia's current order quantity is 400 boxes. How much can be saved by adopting an EOQ versus their current Q = 400?
Cite and explain one advantage and one disadvantage of the following different transportation modes (a) Air,(b) Rail,(c) Truck, and(d) Ship.
What is vendor-managed inventory? How can it help supply chain management?
What is contract manufacturing? Why is it important?
Explain the bullwhip effect. Why is it important for managers to understand it? What can they do to reduce it?
What are the implications of a negative cash-to-cash conversion cycle?
Alpha Medical Manufacturing (AMM), located in Punta Gorda, Florida, produces medical devices for orthopedic surgery including replacement parts for human knees, hips, and elbows, and surgical tools.
Research and find a "return facilitator." Describe what they do and how they make money?
Based on the following information, how many days of supply of inventory is the firm holding (assume 250 days of operation per year)? Interpret your answer if the industry average inventory days
Claiken Incorporated is a supplier of axles for light trucks. They held an average axle inventory of $1.6 million last year, with a cost of goods sold of 21.0 million. What is the inventory turnover
Research what type(s) of reverse logistics program(s) your city, county, or state government supports and write a short paper describing how it works (and a simple flowchart if possible). What
Bragg Johnson, materials manager at Johnson & Sons, has determined that a certain product experienced 3.8 turns last year, with an annual sales volume (at cost) of $975,000. What was the average
Andrew Manufacturing held an average inventory of $1.1 million (raw materials, work-in-process, finished goods) last year. Its sales were $8.0 million, and its cost of goods sold was $5.8 million.
As an operations management consultant, you have been asked to evaluate a furniture manufacturer's cash-to-cash conversion cycle under the following assumptions: sales of $23.5 million, cost of goods
Using the data in problem 4, assume the operating manager reduces total average inventory on-hand by 21 percent by using better operations and supply chain methods. What is the revised cash-to-cash
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the following information. Audubon Manufacturing is located in Columbus, Ohio,
(1) Should we consider services in the cash-to-cash conversion cycle (C2CCC) computations?(2) How will you handle the $886,000 in obsolete inventory?(3) What is the "total" cash-to-cash conversion
Identify a goods-producing or service-providing organization and discuss how it might make aggregate planning decisions using the variables described in Exhibit 13.3?
Each bank teller workstation is forecasted to process 200 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
The forecasted demand for fudge for the next four months is 220, 150, 100, and 70 pounds. a. What is the recommended production rate if a level strategy is adopted with no back orders or stock outs?
Given the bill of materials for the printer cartridge (A) shown below, a gross requirement to build 200 units of A, on-hand inventory levels for each item as shown in the table below, and assuming
1. Develop a spreadsheet model that Beverly can use to easily update the product mix for other months with different numbers of working days.2. Use the model to determine how many FTE staff are
Explain how modern vehicle routing and dispatching software and systems can support sustainability goals and objectives?
Dan's Auto Detailing business performs two major activities: exterior cleanup, and interior detailing. Based on the size of car and condition, time estimates for six cars on Monday morning are as
The Naples Newspaper completes production of its daily edition by 5 a.m. A truck picks up pallets loaded with newspapers and delivers them to five neighbor sites, where carriers sort and fold the
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