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operations management
Operations Management An Integrated Approach 7th Edition R. Dan Reid, Nada R. Sanders - Solutions
Tasty Ice Cream is a year-round take-out ice cream restaurant that is considering offering an additional product, hot chocolate. Considering the additional machine it would need plus cups and ingredients, it estimates fixed costs to be $250 per year and the variable cost to be $0.30. If it charges
What new service did Ford start offering and why?
What new service did Ford start offering?a) A car subscription serviceb) Cars with cloud platformsc) Dynamic shuttle serviced) On-site maintenance (mobile) service.
Besides electric vehicles, what type of vehicles has Ford been focusing on developing and why? Once you have identified the other type of vehicle, explain where it sits on the Product Life Cycle timeline.
What type of vehicles has Ford been focusing on developing?a) Autonomous, meaning cars that can drive themselvesb) Solar-powered, using the sun to power the carc) Smaller cars that can be compacted even more by adjusting the driver from sitting to standingd) Vehicles that can be adjusted into a
Perfect Furniture is a manufacturer of kitchen tables and chairs. The company is currently deciding between two new methods for making kitchen tables. The first process is estimated to have a fixed cost of $87,000 and a variable cost of $70 per unit. The second process is estimated to have a fixed
Within which category of the Product Life Cycle does a self-driving vehicle fit?a) Maturityb) Growthc) Introductiond) Decline
Kaizer Plastics produces a variety of plastic items for packaging and distribution. One item, container #145, has had a low contribution to profits. Last year, 22,000 units of container #145 were produced and sold. The selling price of the container was $18 per unit, with a variable cost of $16 per
Handy-Maid Cleaning Service is considering offering an additional line of services to include professional office cleaning. Annual fixed costs for this additional service are estimated to be $15,000. Variable costs are estimated at $45 per unit of service. If the price of the new service is set at
NewApp Software Production is deciding whether to take on a new, large client, for whom additional hires will need to be made and another workspace will need to be rented. Estimates of the rents and facilities costs per year are $550,000, and the new developers the company must hire cost $75,000
After viewing the video and reviewing online news articles(of your choice) about their quality in prior years, why do you think Papa John’s TQM efforts were failing prior to the changes being made?
Draw a process flow diagram of your last trip to a fast food drive-through. Identify bottlenecks. Did any activities occur in parallel?
NewApp Software Production, from Problem 12, has decided to produce a new type of app. The app can be made with the current equipment in place. However, the company is considering investing in new software that would allow the developers to produce the app more quickly. The fixed cost would be
Oakwood Outpatient Clinic rents a magnetic resonance imaging (MRI) machine for 80 hours a month for use on its patients. Last month the machine was used 65 hours out of the month. What was machine utilization?
NewApp Software estimates that it takes a full year for each developer to produce one app. However, after a recent process audit, it was discovered that each developer, on average, spends only 25 hours a week directly working on the app. Assume developers work 9 hours a day, 5 days a week, 48 weeks
Supply chain management games usually take more time than a single class period can provide. With a fair amount of preparation, the Personal Heart Rate Monitors game can fit into a single (1.5 to 2 hour) class session.PreparationBefore the day of the game, several steps should be taken:1) Assign a
Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to insource the product, the process would incur $250,000 of annual fixed costs and $1.25 per unit of variable costs. If it
Why is the e-commerce market so important?
Which of the following is part of Walmart’s strategy regarding its supply chain?a) Acquiring e-commerce technology and expertise.b) Opening central warehouses.c) Changing how and when inventory is ordered.d) Using full truckloads.
How is Walmart focusing on becoming more successful in e-commerce?
What is the most significant pressure that brand manufacturers are under?a) Reducing the lead time.b) Offering a larger selection of products.c) Reducing prices.d) Producing in smaller batches.
Downhill Boards (DB), a producer of snow boards, is evaluating a new process for applying the finish to its snow boards. Durable Finish Company (DFC) has offered to apply the finish for $160,000 in fixed costs and a unit variable cost of $0.60. Downhill Boards currently incurs a fixed annual cost
What are some major challenges for Amazon?
In ten years how will the e-commerce landscape be different?a) Prices will continue decreasing.b) Availability of products will improve.c) Speed of delivery will be shortening.d) All of the above.
How is Prime beneficial to Amazon?
What is the most significant benefit to Amazon of Prime membership?a) Improved cash flow.b) Customer loyalty.c) Increased sales.
Henri of Henri’s French Cuisine (HFC), a chain of 12 restaurants, is trying to decide if it makes sense to outsource the purchasing function. Currently, Henri employs two buyers at an annual fixed cost of $100,000. Henri estimates that the variable cost of each purchase order placed is $18.
What kind of pressure are brand manufacturers under?
Which of the following is the most significant concern of Amazon?a) Antitrustb) Breaking into the Chinese marketc) Reducing pricesd) Establishing success in the grocery market
What is the significance of Walmart’s Flipkart purchase with regards to Amazon?
A U.S.-based device manufacturer is considering outsourcing production of the specialty batteries that power its home medical devices. The fixed costs related to the battery production are $275,000 per year and $0.50 in variable costs. A nearby battery manufacturer has offered to make the batteries
How has Walmart optimized their supply chain in the past?
The same device manufacturer was able to find a Chinese supplier that would provide the batteries for $0.40 per unit with an annual fixed cost of $315,000. Should they insource or outsource the item?
In ten years how will the e-commerce landscape be different?
A lumber mill in Virginia, Hawthorne and Sons (H&S), produces rough-cut boards and then runs the boards through a sequence of machines to create green (uncured) lumber of different dimensions. Finally, the boards are kiln-dried to become building products. H&S also owns a piece of equipment that
A commercial bakery produces 150,000 cakes per month. Of these, 10,000 are partially customized in some way, for example, with the words “Happy Birthday” written across the top, with room for a name or personalized message to be added later. At the moment, the fixed costs attributable to this
A global insurance company, Global, sells auto insurance online. The company uses its own underwriters and proprietary software algorithms to make determinations on pricing and coverage. Currently, the company also services the policies in case of a claim. Global’s Chief Operating Officer, Jane,
ZootSuit, a marketing firm, produces an average of 15,000 pieces of marketing collateral per year (i.e., flyers, web pages, presentations, logos, etc.) with a variable cost of $300 per piece. Company leadership wants to increase theoutput. ZootSuitis considering a subscription in new cloud-based
A CD player has three components that all must function for the player to work. The average reliability of each component is 0.85. What is the reliability of the CD player?
Discuss the concept of benchmarking and identify which company was referenced in the video as one Papa John’s chose to benchmark.
Which company was referenced in the video as one Papa John’s chose to benchmark?a) McDonald’sb) Arby’sc) Wendy’sd) KFC
1. Is there a physical product involved? Which is dominant, the product or the service?2. How unique or how standardized is the product and/or service from the same company from one time to the next?3. Give three specific examples of characteristics of the product and/or service that would
Why do you think Papa John’s TQM efforts were failing prior to the changes being made? a) Looking at TQM as a short-term financial investmentb) Over-or under-reliance on statistical process control methodsc) Lack of top management support and commitmentd) A “let the workers do it” mentality
An office copier has four main components in a series with the following reliabilities: 0.85, 0.92, 0.94, and 0.88. Determine the reliability of the copier.
Which quality guru’s contributions would be most beneficial to Papa John’s and why?
Which quality guru’s contributions would be most beneficial to Papa John’s to support management’s commitment to focus on quality?a) Shewhartb) Demingc) Jurand) Crosby
1. How should Emma go about this task? What dimensions of quality should she consider for services offered to customers and for preparation of food items? What factors should she consider beyond analytical measures?2. What quality measures will Emma have to take to ensure that she is using the best
Explain which concept(s) of the TQM philosophy Papa John’s is most focused on.
Which concept of the TQM philosophy is Papa John’s most focused on?a) Product designb) Use of quality toolsc) Employee empowermentd) Customer focus
Which category or categories of the Malcolm Baldridge National Quality Award do you think Papa John’s is addressing most with respect to its recent changes?
Which category of the Malcolm Baldridge National Quality Award do you think Papa John’s is addressing most with respect to its recent changes?a) Human resource focusb) Strategic planningc) Information and analysisd) Customer and market focus
Identify and discuss the type of quality cost that increased as a result of the mother and daughter’s decision.
Which type of quality cost increased as a result of the mother and daughter’s decision described in the war story above?a) Appraisalb) External failurec) Preventiond) Internal failure
An LCD projector in an office has a main light bulb with a reliability of 0.94 and a backup bulb, the reliability of which is 0.60. The system looks as follows:What is the reliability of the system? 0.60 0.94
With respect to the war story, which type of dimension(s) of quality should Papa John’s focus more on? Why?
With respect to the war story, which type of dimension of quality should Papa John’s focus more on?a) Intangible factorsb) Responsiveness to customer needsc) Consistencyd) Timeliness/promptness
Which of the seven quality tools described in the chapter would have been most useful for Papa John’s to use had management become aware of the complaint?
Which of the seven quality tools described in the chapter would have been most useful for Papa John’s to use had management become aware of the mother and daughter’s complaint?a) Checklistb) Flowchartc) Cause-and-effect diagramd) Pareto chart
BioTech Research Center is working to develop a new vaccine for the West Nile Virus. The project is so important that the firm has created three teams of experts to work on the project from different perspectives. Team 1 has an86 percent chance of success, team 2 an 87 percent chance of success,
A new app called "MedAware" is in Beta testing mode. It launches successfully 95% of the time, but only 70% of users are able to operate it the first time they open it. What is the probability of successful first-time operation?
To correctly manufacture a 4-ton heat pump, an HVAC equipment manufacturer must create and then assemble components. The reliability of the processes are as follows: What is the total reliability of the system?
That same HVAC manufacturer also offers installation services. A junior installer is deployed first, and is able to complete the install 80% of the time without calling for assistance from a backup senior installer. Senior installers are able to complete the install 98% of the time. What is the
A piece of medical equipment goes through three factory processes that create a precise point. The processes each meet variance requirements at a rate of 0.98, 0.99, and 0.96. What percentage of the finished product must be discarded?
1. What kind of chart (or charts) does Tom need to analyze this problem? Explain why you chose the chart or charts he should use.2. Specifically, what information will Tom need to construct the chart(s) and how will he gather it?3. After he has completed the chart(s), what should Tom do over the
The CEO of Apple talks about the high quality of Apple’s new product, the HomePod. Discuss ways in which Apple can build quality into its processes in order to deliver on its promises regarding the HomePod.
Since the HomePod was released, some customers have been dealing with the problem of it leaving white rings on their furniture. Which of the following would you recommend using to deal with this issue if we decide to measure the frequency of defective HomePods being produced?a) x-bar and R-chartsb)
1. Should Tom use the same or different type of chart(s) to analyze this problem? Explain why.2. Specifically, what information will Tom need to construct the chart(s) for this problem and how will he gather it?3. After he has completed the chart(s), what should Tom do over the next week or so?
Since the HomePod was released, some customers have been dealing with the problem of it leaving white rings on their furniture. Which control chart would you recommend using, and how would you use it? The following article provides more information on this issue:
Which of the following would you recommend using to deal with the white ring problem of the HomePods if we decide to measure the frequency of customers complaining about this problem?a) x-bar and R-chartsb) c-chartc) p-chartd) Process capability index
1. Propose to invest in an automated machine that can check the quality of each of the 400,000 bottles going through the production line daily.2. Believe that the vendor will adhere to all quality parameters and eliminate the quality inspection steps at J&G premises altogether since it is a
Apple developed its reputation and tremendous success (becoming the first trillion-dollar company) based on developing innovative, best-quality products. However, in recent years, Apple has been having many quality control problems. What are your recommendations for addressing this issue? (Please
Since the iPhone XS was released, it has been experiencing battery life problems. Which of the following would you recommend using to deal with this issue?a) x-bar and R-chartsb) c-chartc) p-chartd) Process capability index
The Apple CEO spoke favorably in the interview about the new software update of iOS 11 being released to upgrade iPhones and iPads. As is common in this industry, even with rigorous testing internally and externally through the public and beta groups, problems and bugs arise when consumers update
In January 2019, it was discovered that the Apple chip supplier, Taiwan Semiconductor Manufacturing Company (TSMC), had produced many defective chips, thus requiring a production shutdown to solve the problem. Moving forward, which of the following would be most beneficial to Apple regarding
To prevent problems from happening again, as occurred when providing updates such as with the iOS 11, which of the following steps should we begin with when applying Six Sigma to ensure we have a better methodology for testing our updates prior to full release?a) Measure the current performance of
CEO Tim Cook spoke briefly about the iPhone, which has been one of their popular products since it was introduced over 10 years ago. Unfortunately, the latest release of the iPhone XS has failed three key tests: battery life, durability and aesthetics. Being made of glass has caused it to have
Compute the Cpk measure of process capability for the following machine and interpret the findings. What value would you have obtained with the Cpmeasure?Machine data:USL = 120 LSL = 60 Process σ = 7Process μ = 851
The Crunchy Potato Chip Company sells chips in boxes with a net weight of 24 ounces per box (680 grams). Each box contains ten individual 2.4-ounce packets of chips. Product design specifications call for the packet-filling process average to be set at 69.0 grams so that the average net weight per
What was the primary motivation for the creation of the Toyota Production System (TPS)? Explain.
Providing the workers with the ability to stop the production line if quality problems are detected is known as what?a) Kaizenb) Jidokac) Poka-yoked) Kanban
Which companies were inspirational for the creation of the Toyota Production System (TPS)? Explain why they were selected and what insights were incorporated in TPS.
What was the primary motivation for the creation of the Toyota Production System?a) Shortened production lead timesb) Achieving a high level of qualityc) Having the capability to deal with cash and material shortagesd) Providing lifetime employment
A manufacturer of thermostats uses a kanban system to control the flow of materials. The packaging center processes 15 thermostats an hour and receives completed thermostats every 20 minutes. Containers hold 5 thermostats each.a) How many kanbans are needed for the packaging center?b) If management
1. What should David have done differently? What can he do now?2. How can short-term changes to a lean production line be implemented, as described in the case?3. Suggest strategies on working with a supplier in this type of situation that go beyond those specified by analytics analysis.
Which organizations were referenced in the video as having successfully applied the Toyota Production System? What benefits did they achieve?
Which of the following organizations was referenced in the video as having successfully applied the Toyota Production System?a) Motorolab) Hitachi Tool Engineeringc) GMd) Boeing
Why is respect for people important in a JIT environment?
Lean minimizes inventory and excess processing time with increased flexibility by which of the following?a) Small-lot productionb) Reduced setup timesc) Jidokad) Kaizen
Carlos Gonzales is production manager at an assembly plant that manufactures cordless telephones. The company is planning to install a pull system. The process is being planned to have a usage rate of 45 pieces per hour. Each container is designed to hold 8 pieces. It takes an average of 45 minutes
The video refers to organizations adopting Lean. However, Internet research indicates that at least 90% of these implementations fail. Discuss some of the reasons provided to explain why this is the case.Note: Students should be provided with the links to one or more of the following articles
Sequence correctly these three steps for implementing Lean.1. Reduce setup times.2. Reorganize the workplace3. Make quality improvementsa) 2-1-3b) 1-3-2c) 2-3-1d) 3-2-1
From which business did Ohno learn the concept of “only enough parts were produced in the first phase to replace what was used in the second, and so on”?a. Ford Motor Companyb. Boeingc. Piggly Wigglyd. Motorola
Anna works on an assembly line where it takes her 60 minutes to produce 15 units of a product needed to fill a container. It takes her an additional 5 minutes to transport the container to Josh, who works at the next station. The company uses a safety stock of 15 percent. The current assembly line
Which of these terms is now considered precursor to barcoding?a. Kaizenb. Kanbanc. Gembad. Mura
Kelly Glebe works for a facility that manufactures a popular over-the-counter medication that are shipped in cases of 20 bottles. She fills an average of 45 cases an hour. The kanbans her facility uses hold 4 finished bottles. It takes 5 minutes to receive the bottles she needs from the previous
A pizza box manufacturer uses a kanban system to control the flow of materials. The boxes are stamped (cut to size) and inked at a rate of 1,500pizza boxes an hour. The next machine on the assembly line then receives the partially completed boxes every 15 minutes and automatically folds them into
A production cell at Stylish Bags facility operates 8 hours per day and uses a pull method to supply purse handles to the assembly line. The purse handles are used at a rate of 200 per day. Each container holds 10handles and on average remains 30 minutes in the cell before being passed on to the
Radha Gupta is production manager at an assembly plant that manufactures personal activity trackers. The company is planning to install a pull system. She plans to have a usage rate of 60 pieces per hour. Each container is designed to hold 15 pieces. It takes an average of 30 minutes to complete a
Suppose that I plan to buy chocolate chip cookies from a bakery and bring them to the next class to sell. Each cookie costs 75 cents to purchase. I plan to sell them for a dollar each.1. Individually estimate how many I should purchase in order to maximize profit. Briefly explain your logic.2.
Which factors are the best predictor of a person’s health and why?
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