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Operations Management For Competitive Advantage 11th Edition Richard B. Chase, F. Robert Jacobs - Solutions
3 Use the benchmarking process and as many DMAIC/CI analytical tools as you can to show how you can improve your perfomance in your weakest course in school.
2 Professor Chase is frustrated by his inability to make a good cup of coffee in the moming. Show how you would use a fishbone diagram to analyze the process he uses to make a cup of his evil brew.
1 Amanager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect and passed inspection. Based upon Six-Sigma theory, how would you rate this performance, other things being equal?
7 A typical word processing package is loaded with poka-yokes. List three. Are there any others you wish the packages had?
6 Shingo told a story of a poka-yoke he developed to make sure that the operators avoided the mis- take of putting fewer than the required four springs in a push-button device. The existing method involved assemblers taking individual springs from a box containing several hundred, and then placing
5 Business writer Tom Peters has suggested that in making process changes, we should "Try it, test it, and get on with it." How does this square with the DMAIC/continuous improvement philosophy?
4 "Before you build quality in, you must think it in." How do the implications of this statement differ from those in question 3?
3 "You don't inspect quality into a product; you have to build it in." Discuss the implications of this statement.
2 "If line employees are required to work on quality improvement activities, their productivity will suffer." Discuss.
1 Is the goal of Six Sigma realistic for services such as Blockbuster Video stores?
24 You are planning the new layout for the local branch of the Sixth Ninth Bank. You are consid- ering separate cashier windows for the three different classes of service. Each class of service would be separate with its own cashiers and customers. Oddly enough, each class of service, while
23 You are planning a bank. You plan for six tellers. Tellers take 15 minutes per customer with a standard deviation of 7 minutes. Customers arrive one every three minutes according to an exponential distribution (recall that the standard deviation is equal to the mean). Every cus- tomer that
22 A toll tunnel has decided to experiment with the use of a debit card for the collection of tolls. Initially, only one lane will be used. Cars are estimated to arrive at this experimental lane at the rate of 750 per hour. It will take exactly four seconds to verify the debit card. a In how much
21 During the campus Spring Fling, the bumper car amusement attraction has a problem of cars becoming disabled and in need of repair. Repair personnel can be hired at the rate of $20 per hour, but they only work as one team. Thus, if one person is hired, he or she works alone; two or three people
20 The California border inspection station (see Problem 19) is considering the addition of a sec- ond inspector. The vehicles would wait in one lane and then be directed to the first available inspector. Arrival rates would remain the same (10 per minute) and the new inspector would process
19 At the California border inspection station, vehicles arrive at the rate of 10 per minute in a Poisson distribution. For simplicity in this problem, assume that there is only one lane and one inspector, who can inspect vehicles at the rate of 12 per minute in an exponentially distributed
18 A study-aid desk staffed by a graduate student has been established to answer students' ques- tions and help in working problems in your OM course. The desk is staffed eight hours per day. The dean wants to know how the facility is working. Statistics show that students arrive at a rate of four
17 An office employs several clerks who originate documents and one operator who enters the doc- ument information in a word processor. The group originates documents at a rate of 25 per hour. The operator can enter the information with average exponentially distributed time of two min- utes.
16 Cathy Livingston, bartender at the Tucson Racquet Club, can serve drinks at the rate of one every 50 seconds. During a hot evening recently, the bar was particularly busy and every 55 seconds someone was at the bar asking for a drink.a. Assuming that everyone in the bar drank at the same rate
15 Customers enter the camera department of a store at the average rate of six per hour. The department is staffed by one employee, who takes an average of six minutes to serve each arrival. Assume this is a simple Poisson arrival exponentially distributed service time situation.a. As a casual
14 Benny the Barber (see Problem 13) is considering the addition of a second chair. Customers would be selected for a haircut on a FCFS basis from those waiting, Benny has assumed that both barbers would take an average of 20 minutes to give a haircut, and that business would remain unchanged with
13 Benny the Barber owns a one-chair shop. At barber college, they told Benny that his customers would exhibit a Poisson arrival distribution and that he would provide an exponential service distribution. His market survey data indicate that customers arrive at a rate of two per hour. It will take
12 A graphics reproduction firm has four units of equipment that are automatic but occasionally become inoperative because of the need for supplies, maintenance, or repair. Each unit requires service roughly twice each hour, or, more precisely, each unit of equipment runs an average of 30 minutes
11 The Judy Gray Income Tax Service is analyzing its customer service operations during the month prior to the April filing deadline. On the basis of past data it has been estimated that cus- tomers arrive according to a Poisson process with an average interarrival time of 12 minutes. The time to
10 L. Winston Martin (an allergist in Tucson) has an excellent system for handling his regular patients who come in just for allergy injections. Patients arrive for an injection and fill out a name slip, which is then placed in an open slot that passes into another room staffed by one or two
9 An engineering firm retains a technical specialist to assist four design engineers working on a project. The help that the specialist gives engineers ranges widely in time consumption. The specialist has some answers available in memory; others require computation, and still others require
8 A cafeteria serving line has a coffee um from which customers serve themselves. Arrivals at the um follow a Poisson distribution at the rate of three per minute. In serving themselves, cus- tomers take about 15 seconds, exponentially distributed. a How many customers would you expect to see on
7 To support National Heart Week, the Heart Association plans to install a free blood pressure testing booth in El Con Mall for the week. Previous experience indicates that, on the average, 10 persons per hour request a test. Assume arrivals are Poisson from an infinite population. Blood pressure
6 The Bijou Theater in Hemosa Beach, Califomia, shows vintage movies. Customers arrive at the theater line at the rate of 100 per hour. The ticket seller averages 30 seconds per customer, which includes placing validation stamps on customers' parking lot receipts and punching their frequent watcher
5 Burrito King (a new fast-food franchise opening up nationwide) has successfully automated burrito production for its drive-up fast-food establishments. The Burro-Master 9000 requires a constant 45 seconds to produce a batch of burritos. It has been estimated that customers will arrive at the
4 Sharp Discounts Wholesale Club is considering consolidating its two service desks (see Problem 3) into one location, staffed by two clerks. The clerks will continue to work at the same individual speed of four minutes per customer.a. What is the probability of waiting in line?b. How many
3 Sharp Discounts Wholesale Club has two service desks, one at each entrance of the store. Customers arrive at each service desk at an average of one every six minutes. The service rate at each service desk is four minutes per customer.a. How often (what percentage of time) is each service desk
2 The managers of the Administrative Services Office estimate that the time a student spends waiting in line costs them (due to goodwill loss and so on) $10 per hour. To reduce the time a student spends waiting, they know that they need to improve Judy's processing time (see Problem 1). They are
1 Students arrive at the Administrative Services Office at an average of one every 15 minutes, and their requests take on average 10 minutes to be processed. The service counter is staffed by only one clerk, Judy Gumshoes, who works eight hours per day. Assume Poisson arrivals and expo- nential
9 Would you expect the Poisson distribution to be a good approximation of a Runners crossing the finish line in the Boston Marathon?b. Arrival times of the students in your OM class?c. Arrival times of the bus to your stop at school?
8 Would you expect the exponential distribution to be a good approximation of service times for a Buying an airline ticket at the airport?b. Riding a merry-go-round at a camival?c. Checking out of a hotel?d. Completing a midterm exam in your OM class?
7 Define, in a practical sense, what is meant by an exponential service time.
6 In what way might the first-come, first-served rule be unfair to the customer waiting for service in a bank or hospital?
5 Which assumptions are necessary to employ the formulas given for Model 1?
4 What is the major cost trade-off that must be made in managing waiting line situations?
3 Distinguish between a channel and a phase.
2 How many waiting lines did you encounter during your last airline flight?
1 Cultural factors affect waiting lines. For example, fast checkout lines (e.g., 10 items or less) are uncommon in Japan. Why do you think this is so?
American Bank has a single automated teller machine (ATM) located in a shopping center. Data were collected during a period of peak usage on Saturday aftemoon and it was found that the average time between customer arrivals is 2.1 minutes with a standard deviation of .8 minute. It also was found it
American Vending Inc. (AVI) supplies vended food to a large university. Because students often kick the machines out of anger and frustration, management has a constant repair problem. The machines break down on an average of three per hour, and the breakdowns are distributed in a Poisson manner.
Quick Lube Inc. operates a fast lube and oil change garage. On a typical day, customers arrive at the rate of three per hour, and lube jobs are performed at an average rate of one every 15 minutes. The mechanics operate as a team on one car at a time.Assuming Poisson arrivals and exponential
Let's consider an example of a call center that takes orders for a mail order business. During the peak period, the average time between call arrivals (Xa) is 0.5 minute with a standard deviation (Sa) of 0.203 minute. The average time to service a call (X) is 4 minutes and the standard deviation of
Studies of a bank of four weaving machines at the Loose Knit textile mill have shown that, on average, each machine needs adjusting every hour and that the current servicer averages 7 minutes per adjust- ment. Assuming Poisson arrivals, exponential service, and a machine idle time cost of $40 per
In the service department of the Glenn-Mark Auto Agency, mechanics requiring parts for auto repair or service present their request forms at the parts department counter. The parts clerk fills a request while the mechanic waits. Mechanics arrive in a random (Poisson) fashion at the rate of 40 per
The Robot Company franchises combination gas and car wash stations throughout the United States. Robot gives a free car wash for a gasoline fill-up or, for a wash alone, charges $0.50. Past experience shows that the number of customers that have car washes following fill-ups is about the same as
Western National Bank is considering opening a drive-through window for customer service. Management estimates that customers will arrive at the rate of 15 per hour. The teller who will staff the window can service customers at the rate of one every three minutes. Part 1 Assuming Poisson arrivals
2 What are the dilemmas posed in solving these problems in the context of a call center?There are now three bagel shops in my hometown, two of which are fairly rudimentary in nature: They sell bagels, cream cheese, and coffee. Good bagels, but nothing fancy. The third store is part of a large,
1 What lessons are there from these two examples for contact (call) center managers?There are now three bagel shops in my hometown, two of which are fairly rudimentary in nature: They sell bagels, cream cheese, and coffee. Good bagels, but nothing fancy. The third store is part of a large,
4 SYSTEM DESCRIPTION EXERCISE The beginning step in studying a productive system is to develop a description of that system. Once a system is described, we can better determine why the system works well or poorly and recommend production-related improvements. Because most of us are familiar with
3 Perform a quick service audit the next time you go shopping at a department store. Evaluate the three T's of service: the Task, the Treatment, and the Tangible features of the service on a scale of 1 (poor), 3 (average), and 5 (excellent). Remember that the tangible features include the envi-
2 Do the same as in the previous problem for a hospital with the following activities and relation- ships: physician/patient, nurse/patient, billing, medical records, lab tests, admissions, diagnostic tests (such as X-rays).
1 Place the following functions of a department store on the service-system design matrix: mail order (that is, catalog), phone order, hardware, stationery, apparel, cosmetics, customer service (such as taking complaints).
13 Suppose you were the manager of a restaurant and you were told honestly that a couple eating dinner had just seen a mouse. What would you say to them? How would you recover from this service crisis?
12 Can a manufacturer have a service guarantee in addition to a product guarantee?
11 Where would you place a drive-in church, a campus food vending machine, and a bar's auto- matic mixed drink machine on the service-system design matrix?
10 Some suggest that customer expectation is the key to service success. Give an example from your own experience to support or refute this assertion.
9 Behavioral scientists suggest that we remember events as snapshots, not movies. How would you apply this to designing a service?
8 List some occupations or sporting events where the ending is a dominant element in evaluating Success.
7 Relative to the behavioral science discussion, what practical advice do you have for a hotel manager to enhance the ending of a guest's stay in the hotel?
6 Are there any service businesses that won't be affected by knowledge outsourcing?
5 Identify the high-contact and low-contact operations of the following services:a. A dental office.b. An airline.c. An accounting office.d. An automobile agency.e. Amazon.com
4 Why should a manager of a bank home office be evaluated differently than a manager of a bank branch?
3 Could a service firm use a production-line approach or self-serve design and still keep a high customer focus (personal attention)? Explain and support your answer with examples.
2 How have price and variety competition changed McDonald's basic formula for success?
1 Who is the "customer" in a jail? A cemetery? A summer camp for children?
9 BC Petrol manufactures three chemicals at their chemical plant in Kentucky: BCP1, BCP2, and BCP3. These chemicals are produced in two production processes known as zone and man. Running the zone process for an hour costs $48 and yields three units of BCPI, one unit of BCP2, and one unit of BCP3.
8 C-town brewery brews two beers: Expansion Draft and Buming River. Expansion draft sells for $20 per barrel while Burning River sells for $8 per barrel. Producing a barrel of Expansion Draft takes 8 pounds of com and 4 pounds of hops. Producing a barrel of Buming River requires 2 pounds of com, 6
7 You are trying to create a budget to optimize the use of a portion of your disposable income. You have a maximum of $1,500 per month to be allocated to food, shelter, and entertainment. The amount spent on food and shelter combined must not exceed $1,000. The amount spent on shel- ter alone must
6 Logan Manufacturing wants to mix two fuels, A and B, for its trucks to minimize cost. It needs no fewer than 3,000 gallons to run its trucks during the next month. It has a maximum fuel stor- age capacity of 4,000 gallons. There are 2,000 gallons of fuel A and 4,000 gallons of fuel B available.
5 Do Problem 4 with the added constraint that not more than 150 calories shall be fat and that the price of food has escalated to $1.75 per pound for food A and $2.50 per pound for food B.
4 A diet is being prepared for the University of Arizona dorms. The objective is to feed the stu- dents at the least cost, but the diet must have between 1,800 and 3,600 calories. No more than 1,400 calories can be starch, and no fewer than 400 can be protein. The varied diet is to be made of two
3 Given that a company has chosen this priority, what would it have to do to achieve success? At its peak in late 2000, Lasik Vision Corporation had over 30 clinics operating in North America, second only to TLC Laser Eye Centers of Toronto, Ontario, which had 62 clinics. Dr. Hugo Sutton, an eye
2. Is it an appropriate approach in this industry? What repercussions, actual or perceived, might occur with this priority? At its peak in late 2000, Lasik Vision Corporation had over 30 clinics operating in North America, second only to TLC Laser Eye Centers of Toronto, Ontario, which had 62
1 What was Lasik Vision's competitive priority? At its peak in late 2000, Lasik Vision Corporation had over 30 clinics operating in North America, second only to TLC Laser Eye Centers of Toronto, Ontario, which had 62 clinics. Dr. Hugo Sutton, an eye surgeon and a clinical associate professor at
6 What should Ben do to ensure his company's future success? As Ben Lawson, CEO of Custom Fabricators, Inc., drove back to his home in South Indianapolis, he thought about the day. I've done a lot of business with Orleans Elevator in Bloomington over the years, but just wonder how long this will
5 How should Ben position his company in the value chain? As Ben Lawson, CEO of Custom Fabricators, Inc., drove back to his home in South Indianapolis, he thought about the day. I've done a lot of business with Orleans Elevator in Bloomington over the years, but just wonder how long this will
4 Should Ben change his business model? As Ben Lawson, CEO of Custom Fabricators, Inc., drove back to his home in South Indianapolis, he thought about the day. I've done a lot of business with Orleans Elevator in Bloomington over the years, but just wonder how long this will continue. I have much
3 Have Orleans' priorities changed? As Ben Lawson, CEO of Custom Fabricators, Inc., drove back to his home in South Indianapolis, he thought about the day. I've done a lot of business with Orleans Elevator in Bloomington over the years, but just wonder how long this will continue. I have much
2. In the past, what has been Ben Lawson's competitive advantage in keeping the Orleans business? As Ben Lawson, CEO of Custom Fabricators, Inc., drove back to his home in South Indianapolis, he thought about the day. I've done a lot of business with Orleans Elevator in Bloomington over the years,
1 How does Ben Lawson's Custom Fabricators, Inc., create value for Orleans? As Ben Lawson, CEO of Custom Fabricators, Inc., drove back to his home in South Indianapolis, he thought about the day. I've done a lot of business with Orleans Elevator in Bloomington over the years, but just wonder how
7 A fast-food restaurant serves hamburgers, cheeseburgers, and chicken sandwiches. The restau- rant counts a cheeseburger as equivalent to 1.25 hamburgers and chicken sandwiches as 0.8 ham- burger. Current employment is five full-time employees who work a 40-hour week. If the restaurant sold 700
6 A parcel delivery company delivered 103,000 packages in 2004, when its average employment was 84 drivers. In 2005 the firm handled 112,000 deliveries with 96 drivers. What was the per- centage change in productivity from 2004 to 2005?
5 A retail store had sales of $45,000 in April and $56,000 in May. The store employs eight full-time workers who work a 40-hour week. In April the store also had seven part-time workers at 10 hours per week, and in May the store had nine part-timers at 15 hours per week (assume four weeks in each
4 An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,300 devices and took 25 workers two weeks (40 hours per week) to complete. The army contract was for 5,500 devices that were pro- duced by 35 workers
11 What should be the criteria for management to adopt a particular performance measure?
10 What are the typical performance measures for quality, speed of delivery, and flexibility?
9 What do we mean when we say productivity is a "relative" measure?
8 What is meant by the expressions onder winners and order qualifiers? What was the order win- ner(s) for your last major purchase of a product or service?
7 Why does the "proper" operations strategy keep changing for companies that are world-class competitors?
6 In your opinion, do business schools have competitive priorities?
5 A few years ago, the dollar showed relative weakness with respect to foreign currencies such as the yen, euro, and pound. This stimulated exports. Why would long-term reliance on a lower- valued dollar be at best a short-term solution to the competitiveness problem?
4 For each priority in question 3, describe the unique characteristics of the market niche with which it is most compatible.
3 What are the major priorities associated with operations strategy? How has their relationship to one another changed over the years?
2. Why should a service organization worry about being world-class if it does not compete out- side its own national border? What impact does the Internet have on this?
1 Can a factory be fast, dependable, and flexible; produce high-quality products; and still provide poor service from a customer's perspective?
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