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business
operations and supply chain management
Questions and Answers of
Operations And Supply Chain Management
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 38, 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
An attorney's office operates with a single copier. At the beginning of a particular day the following jobs are waiting for processing. All jobs must be distributed to clients or in court by 9:00
Define quality management. Why is it important for every manager to understand?
The kid almost died! He’s a diabetic! How did that patient get the wrong food tray?” said Bonnie Blaine, director of hospital operations, to Drew Owensboro, the director of dietary services.
What does the history of quality management suggest to today’s managers?
Explain the five gaps in the GAP model. What can managers do to reduce these gaps? EXHIBIT 16.1 GAP Model of Quality -Marketing Focus- Operations Focus Word-of-Mouth Communication GAP 1 GAP
How is quality defined from a customer perspective?
What is the most useful definition of quality from an operations perspective? How might an operations manager use this definition in making daily decisions?
List and explain the three principles of total quality?
Describe the quality philosophies and principles of Deming, Juran, and Crosby.
Explain the purpose and structure of ISO 9000. What are the seven underlying principles?
What is Six Sigma? How is it measured?
Explain the key concepts used in implementing a Six Sigma quality initiative.
Summarize the DMAIC process for problem solving.
What tools and methods are used in Six Sigma projects?
How can Six Sigma be applied in services?
What does “cost of quality” mean? Why is it important?
Explain the classification of quality costs. Provide some specific examples in a fast-food operation and in the operation of your college or university.
Explain the concept of kaizen. What must an organization do to successfully operate a kaizen initiative?
Summarize the Seven QC Tools used for quality improvement and provide an example of each.
What is a root cause? How can root causes be identified?
What is a kaizen event? How does it differ from the original notion of kaizen?
What is breakthrough improvement?
Refer to the automobile repair flowchart in Exhibit 7.5 in Chapter 7. Identify three activities where a potentially serious service quality error may occur and discuss how such errors might be
How do benchmarking and best practices support breakthrough improvement?
Find two examples similar to the introductory example in this chapter that describe the economic consequences of poor quality.
Discuss how either good or poor quality affects you personally as a consumer. For instance, describe experiences in which your expectations were met, exceeded, or not met when you purchased goods or
Reship Solutions, Inc. has a distribution center in Cincinnati where it receives and breaks down bulk orders from suppliers’ factories and ships out products to retail customers. The different
A top Ford executive stated, “You can’t have great value unless you have great quality.” Comment on this statement. Do you agree? Why or why not?
The following list gives the number of defects found in 30 samples of 100 electronic assemblies taken on a daily basis over one month. Plot these data on a run chart, computing the average value
Select a service activity with which you are familiar. If you were the manager of this activity, what “conformance to specifications” criteria would you use to monitor it?
Identify an organization that uses the Six Sigma DMAIC improvement approach. Describe in a short paper (maximum of two pages) some of the ways that this organization has applied DMAIC and the results
Nighthawk Airlines measured their numbers of lost bags in one month and found that they had lost 35 bags for 10,000 customers. If the average number of bags per customer is 1.2, how many errors per
What is “quality at the source”?
Thirty samples of size 3, available in the worksheet C17 Excel P40 in the Data Workbook on MindTap were taken from a machining process over a 15-hour period. Construct control charts using the Excel
Summarize the process used to apply SPC.
The worksheet C17 P37 Data in MindTap provides five examples of control charts. Interpret the patterns in each and determine if the processes are in control. If not, state the type of out-of-control
Data showing the number of errors per thousand lines of code for a software development project are given in the worksheet C17 Excel P44 Data in MindTap. Construct a c-chart and interpret the results.
Use the data from the machining process in Excel problem 40 to calculate Cp , Cpl , Cpu, and Cpk , assuming that the specifications are 3.75 ± 1.25. Interpret the results for the manager of this
The worksheet C17 Excel P47 Data in MindTap provides sample times in hours for processing and shipping orders from a web-based retailer. The retailer advertises that orders are shipped within four
Explain the usefulness of Gantt charts to a manager.
How do you construct a left-or right-shifted Gantt chart?
Explain the concept of crashing in project management. What issues must a project manager wrestle with in making crashing decisions?
Explain how to compute the crash cost per unit of time.
Explain how to evaluate the effect of uncertainty of activity times on the total project completion time.
Explain the PERT concepts of optimistic time, most probable time, and pessimistic time estimates. How would you estimate these times for a specific activity?
How is the expected time and variance of each activity computed using PERT.
A major automobile manufacturer located in Georgetown, Kentucky, has two certified vendors that produce brake pads with the information shown in Exhibit 13.14. New Albany Manufacturing is located in
Fans-and-More, Inc. assemble controllers for ceiling fans. Exhibit 13.16 provides information on a plastic case for fan infrared controllers produced by one of their suppliers, Byannan, Inc. The
Define resource management and explain its objectives and the effects of poor resource management in the value chain.
What is a bill of materials? Sketch a small example. What is the analogy of the BOM in services?
Describe ways to disaggregate aggregate plans using master production scheduling and material requirements planning.
Explain the pros and cons for LFL, FOQ, and POQ lot sizing methods.
Identify a goods-producing or service-providing organization and discuss how it might make aggregate planning decisions using the variables described in Exhibit 14.3. EXHIBIT 14.3 Example Aggregate
Rapallo Corporation manufactures industrial vacuum cleaners with forecasted sales for the next five weeks as follows: Week 1 = 2,000 units, Week 2 = 2,500, Week 3 = 3,000, Week 4 = 3,000, and Week 5
Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses
A lawn chair company, Leisure Furniture, manufacturers two types of deck and lanai reclining chairs. Contribution to profits and overhead for Model A chairs are $35 and for Model B chairs $26. One
Draw a simple bill-of-materials (BOM) for an automobile given the following requirements: (a) clearly label the end item and each component, (b) the BOM must contain no more than ten items, (c) the
Explain the concepts of time phasing and MRP explosion.
Define end-item, parent item, component parts, and subassembly. Identify these items in a bill of material.
Explain practical applications of optimization models for resource management.
Describe how to evaluate level production and chase demand strategies for aggregate planning.
Explain options for aggregate planning.
Describe the overall frameworks for resource planning in both goods-producing and service-providing organizations.
What is aggregate planning? Why is it used?
1. When must the process of ordering and producing in-line-skates to meet demand for these three months begin? 2. What are the cost and capacity implications from the planned schedule of order
What is a master production schedule? How does it differ from a final assembly schedule? Explain how one is constructed.
What is materials requirements planning? Of what value is it to organizations?
Explain the concept of dependent demand.
Explain the concept and application of capacity requirements planning.
Construct a BOM for your college curriculum, thinking of core courses, electives, and so on as components of the end item. How might MRP concepts apply?
How do you define service quality? Explain the five dimensions of service quality.
An orthopedic surgeon specializes in three types of surgery—hip, knee, and ankle replacements. The surgery mix is 40% hip replacements, 50% knee replacement, and 10% ankle replacement. Partial
Given the bill of material for the printer cartridge in problem 31 and Exhibit 14.30, and the following on-hand quantities, compute the net requirements for each item. The gross requirement for A is
Given the information below, complete the MRP record and explain what it tells the inventory analyst to do.Lot Size Rule: Fixed Q = 100 unitsSafety Stock = 0 unitsLead Time 5 three weeksCurrent
Given the bill of material for the printer cartridge (A) in Exhibit 14.30; a gross requirement to build 200 units of A; an on-hand inventory level for end-item A of 80 units; and assuming zero
What is a Gantt chart and why is it important?
Summarize the procedure (steps) used for the two-resource sequencing problem (Johnson’s Sequencing Rule).
Define flow time, makespan, tardiness, and lateness, and explain how they are computed.
Describe some practical examples of the single-resource sequencing problem.
Why are appointment systems used? What decisions are necessary to design an appointment system?
What are the four major decisions made by staff scheduling?
Explain how scheduling affects customer service and costs. Provide an example.
Define scheduling and sequencing. Provide examples from your experiences.
Implement the linear optimization model developed for the Silver Star Bicycle Company in Problem 30 in a spreadsheet and use Excel Solver (see Supplement D) to determine a production plan that
Implement the linear optimization model developed for Leisure Furniture in Problem 29 in a spreadsheet and use Excel Solver (see Supplement D) to determine the optimal production quantities of each
Implement the linear optimization model developed for Metal Fabricators, Inc. in Problem 28 in a spreadsheet and use Excel Solver (see Supplement D) to find a minimum cost aggregate production plan.
Kings Appliance Manufacturers makes toasters and wants to evaluate a level strategy against a chase strategy. The quarterly demand forecasts are: Q1 – 12,000, Q2 – 15,000, Q3 – 18,000, and Q4
Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 – 2,800 tanks, Quarter 2 –
The Silver Star Bicycle Company will be manufacturing men’s and women’s models of its Easy-Pedal 10-speed bicycle during the next two months, and the company would like a production schedule
Why must schedules be closely monitored and often revised?
What are the objectives of vehicle routing and scheduling?
Five jobs are to be processed on one machine. If the jobs are processed in the FCFS order 1-2-3-4-5, compute the start time and flow time for each job. Job Processing time 1 2 8 3 3 5 4 9 5 4
How does your college or university schedule classes? What criteria are used?
Research software available to organizations to create staff schedules. What features do these types of software have? Prepare a one-page report.
Five patients arrived at the radiology department in a hospital and are waiting for X-rays.Use the SPT rule to create a schedule. Compute the start time and flow time for each patient.
On Tuesday morning at 8 a.m., an IT analyst found four project “tickets” in her inbox that arrived overnight. The estimated times to complete the projects and the due dates requested are
A workstation has one maintenance mechanic to repair failed machines. We can think of the mechanic as the processor (scarce resource) and the machines awaiting repair as the jobs. Let us assume that
Five customers brought in computers to be repaired to a small shop. Estimated repair times (in days) and dates promised are given below. Due dates were set based on available technicians; however,
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