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business
operations management

Questions and Answers of Operations Management

Which of the following items would be considered a resource in the operations of a movie theater? a. Popcorn b. Projector c. Printer ink d. Soda
Which of the following items would be considered an input in the operations of a doctor’s office? a. Examination table b. Nurse c. Needle d. Stethoscope
Which of the following items would be considered a resource in the operations of a soft drink manufacturer? a. Water b. Bottling machines c. Empty bottles d. Sugar and/or
Which of the following items would be considered an input in the operations of a soft drink manufacturer?a. Brand image b. Bottling machines c. Empty bottles d. Workers
A suburb of Dayton, Ohio, has four local dry cleaners that compete with each other on the basis of price and service speed. Each of them can perform the same basic services at the same level of
Four regional less-than-truckload (LTL) carriers handle shipments traveling from Lexington, Kentucky, to Springfield, Illinois. All four companies say that their normal service time to deliver these
There are four hotels competing with otherwise very similar products on the dimensions of price ($ per night) and amenities (measured by the number of *s awarded by customer reviews). Hotel A:
A car manufacturer has designed a “special edition” version of its popular two-door coupe. This special edition has increased horsepower compared to the standard model and a sports suspension.
A national restaurant chain has just opened a sit-down location at Chicago’s O’Hare International Airport. Next to the sit-down location, it has also established a “to-go” section where
Which of the following characteristics is a subcomponent of the consumption utility in a customer utility function? a. Performance b. Location c. Timing d. Price
Custom-built windows are designed and produced for the unique needs of a particular building. Which dimension of the customer utility function is particularly emphasized with the concept of “custom
What are the subcomponents of inconvenience in a customer utility function? a. Location and price b. Price and volume c. Location and time d. Time and performance
Which of the following is most related to the operations management of an organic sheep farm? a. The color of their brand logo. b. The amount of land they rent for grazing sheep. c.
Which of the following questions is NOT related to operations management? a. When will the demand be fulfilled? b. How much will the CEO be paid? c. Who are the customers? d. How
Which of the following is an example of a system inhibitor? a. A customer adds extra weatherproofing to a new truck purchase. b. An emergency room doctor has no patients at the
Which of the following is NOT one of the three system inhibitors? a. Waste b. Variability c. Fatigue d. Inflexibility
Two retailers compete on costs and the ambience of their retail stores. They are identical in all other dimensions of customer utility. Retailer A is cheaper than retailer B. Retailer A also has the
There can be no more than two firms on the efficient frontier. True or false?
The efficient frontier is given by the cheapest company in the industry. True or false
Which of the following is not a dimension or subdimension in a customer’s utility function? a. Convenience b. Price c. Location d. Customer satisfaction e. Performance
Below are a number of slogans used for advertisement. Which dimensions of customer utility do the slogans emphasize? a. We build lenses uniquely to the needs of your eyes.b. Get your burger in 1
Search for the article, “Five Common Inventory Mistakes and How to Avoid Them” at www.entrepreneur.com.Investigate the recent history of adidas (adidas Group, Herzogenaurach, Germany) in light of
Choose a waiting line system that you commonly encounter in your daily life. How would you improve that system by using the knowledge gained from this module?
Can the structure of transportation models be applied to other operations management situations? If the answer is “yes,” provide some examples.
1. Visit a local bank and write a report on how you would use the drumbuffer- rope concept to alleviate the bottleneck problems (if any) that the bank faces in providing effective customer service.2.
Interview the registrar of your university to learn about the course scheduling process. Based on this interview, write a report on how MRP principles can beapplied to improve the efficiency of the
Visit the websites of the two major ERP vendors, SAP and Oracle, and answer the following questions.1. What are the features of SAP’s ERP system?2. What are the features of Oracle’s ORDBMS
Consider a restaurant and a manufacturer of electronic products. Discuss the advantages and disadvantages these two companies face in developing and implementing their sales and operations plans.
Use the ABC classification method to categorize the various items at a local grocery store. For example, in what category would fresh fruit and vegetables be listed? Why?
Lean production requires seven steps be taken. Why, in your opinion, should the first step be designing the process flow?
Which forecasting technique would be best for each of the following scenarios:1. The demand for Valentine’s Day greeting cards?2. The demand for ice cream during a year?3. The demand for a new
The hotel industry is highly competitive. For most companies, margins are low because of high overhead costs, which means that they have to be cost conscious and focus on keeping their rooms
What does “customer service” mean to you?
Give examples of long-term, intermediate-term, and short-term decisions made as part of demand planning. Use one manufacturing and one service organization for each example.
Discuss and distinguish the functional differences among 3PL, 4PL, and 5PL providers.
An electronics company is planning to outsource the production of the semiconductor chips needed for its products. The company has decided to adopt a multi-sourcing strategy to ensure it has
Give examples of products that can be produced using the following process types:1. Project2. Job-shop3. Batch4. Repetitive5. Continuous flow
Visit or research online a manufacturing facility and a service organization in the area where you live: 1. In terms of the product-process matrix in Figure 9.1, to which category does the
ArcelorMittal is planning to build a steel plant in India. Discuss some of the critical country, region, and site related factors the company needs to evaluate to build the plant?
Why would the location decision for a hospital be different than the location decision for a supermarket? In terms of critical success factors, what are the similarities and differences?
Discuss briefly the various aspects of capacity planning for a service facility such as a hospital.
Select a fast-food restaurant, a bank, and a hotel and identify some of the processes in each of these businesses for which control charts could be useful.
The purpose of the following exercises is three-fold. First, they are intended to make the students learn in-depth about process capability analysis. Second, they are intended to make the students
Choose an electronic service provider you have done business with, and evaluate its service quality using the four gaps we discussed.
Pick a new product, and discuss the three sustainability criteria you would look at when designing the product. Be specific.
Pick a product or service, and using the house of quality, analyze how that company meets its customers’ expectations.
Name a product or company that you believe uses the following new product development concepts or tools:1. Robust design2. Mass customization3. Design for manufacturing and assembly (DFMA)4. Quality
Think of a new product and how the Stage-Gate® system could be used to develop it.
Provide examples of products in each of the following categories that are in different stages of their life cycles:1. Televisions2. Computers3. Pharmaceuticals4. Entertainment
Discuss how reliability, maintainability, and availability are related by using an example of a product or service that you are familiar with.
One brand of The Campbell Soup Company (Camden, NJ) is condensed canned soup. Create a supply chain showing the movement of materials and information for this brand from the basic raw materials
Develop a Six Sigma-type project employing the DMAIC steps for improving any phase of your personal life that you feel may be “defective.”
Blake is an intern in the Department of Performing Arts (DPA) at Local University. One of his duties is to schedule end-of-term recitals for the department?s graduating class and to create and
Logistics Management is a trade magazine that focuses on supply chain management, especially logistics. Its website is www.logisticsmgmt.com. The magazine includes numerous articles reporting
One of the key elements in supply chain management is forecasted demand. Customer demand is obviously an important, if not the most important, factor in determining production and distribution plans
Transportation & Distribution is a trade magazine that focuses on supply chain management, especially logistics. The magazine includes numerous articles reporting on companies’ experiences with
Describe and discuss the cultural differences between Canada and a country of your choice that might affect the management of a project in this foreign country.
Select four fast-food restaurants (e.g., McDonald’s, Burger King, Wendy’s, Harvey’s, etc.) in your town, and develop a scoring model including decision criteria, weights, and grades to rank the
ISO 9000 and the CAE are both programs that seek to achieve recognition for outstanding quality, one in the form of a certificate and the other in the form of an award. Discuss how the two are
Describe the general steps a company must go through to obtain ISO 9001:2008 certification.
Write a brief summary on the application of quality management in a company from Quality world, a professional trade magazine published in the United Kingdom.
The World Bank ranks countries in terms of globalization. Go to the research section of www.worldbank.comand choose four countries to compare.
Investigate the role of government in improving industrial competitiveness and addressing human resource challenges. Begin with the Canadian Supply Chain Sector Council at www.supplychaincanada.org.
The Hickory Company manufactures wooden desks. Management schedules overtime every weekend to reduce the backlog on the most popular models. The automatic routing machine is used to cut certain types
The Hand-To-Mouth Company (HTM) has $200,000 in cash, no inventory, and a 90 percent learning curve. To reduce the complexity of this problem, ignore the hiring and training costs associated with
The Compton Company is manufacturing a solar grain dryer that requires methods and materials never before used by the company. The order is for 80 units. The first unit took 46 direct labor hours,
Although the learning curve never completely levels off to a horizontal line, if work standards are to be developed, there must be a point at which, for all practical purposes, learning is said to
The Really Big Six Corporation will hire 1,000 new accountants this year. Managers are considering whether to make or to buy office furniture for the new hires. Big can purchase office furniture for
The personnel manager at Power west Inc. wants to estimate the direct and cumulative average direct labor hours for producing 30 locomotive train units during the next year. He estimates from past
You are in charge of a large assembly shop that specializes in contract assignments. One of your customers has promised to award you a large contract for the assembly of 1,000 units of a new product.
The Bovine Products Company recently introduced a new automatic milking system for cows. The company just completed an order for 16 units. The last unit required 15 hours of labor, and the learning
Freddie and Jason have just opened the Texas Toothpick, a chain-saw sharpening and repair service located on Elm Street. The Texas Toothpick promises same week repair service. Freddie and Jason are
A large grocery corporation has developed the following schedule for converting frozen food display cases to use CFC-free refrigerant:Week ....................................Units1
Cambridge Instruments is an aircraft instrumentation manufacturer. It has received a contract from the U.S. Department of Defense to produce 30 radar units for a military fighter plane. The first
Mass Balance Company is manufacturing a new digital scale for use by a large chemical company. The order is for 40 units. The first scale took 60 hours of direct labor. The second unit took 48 hours
You have been asked by your boss to make a presentation at the next management committee meeting on the methodology of work sampling and its use in your machine shop. A consultant has recommended
As manager of an encoding department in a bank, you are concerned about the amount of time your encoder clerks have to spend cleaning their machines because of malfunctions. You obtained a proposal
The manager of the Valley Forge post office is interested in the amount of time that window clerks spend on ancillary services such as selling special issue stamp sets or commemorative T-shirts and
The information systems department of Universal Life Insurance Company wants to determine the proportion of time that the data entry operator is idle. The following information was gathered randomly
Mayor Jonathan (Johnny) Johnson of Graft City is running for reelection. At a big rally in the city park, volunteers will assemble signs reading “A vote for Johnny is a vote for Graft” to be
The manager of a loading dock is concerned about the time spent by her crew in nonproductive activities (e.g., waiting for paperwork, idle time, and the like.). Although she is not sure what the true
Management in a large hospital is planning to install a computer to reduce the time spent by nurses doing paperwork. First, management needed to know how much time nurses spend doing paperwork in
Consider the recorded observations of 10 cycles of the cup packaging operation, shown in Figure H.4.a. Determine the select times for each work element, the normal time for the cycle, and the
A time study has been conducted on a cellular telephone assembly operation. The data shown in Table H.6 (in minutes) were obtained. A standard time within ±3 percent of the true mean with 95 percent
A time analyst for the Super-Fast speedway pit crew observed the mechanic in charge of changing both front tires during a pit-stop practice session. The mechanic’s job is divided into six work
The information (in minutes) shown in Table H.4 pertains to a package filling operation at the Black Sheep Wool Company. When three bags are full, the third work element involves transporting the
A cook at Bill’s restaurant (see problem 3) has devised a new method of quickly flipping and pressing hamburgers that he believes will save time in cooking the second side of hamburgers (work
A time study involving the preparation of hamburgers at Bill’s fast-food restaurant used the snap-back method to obtain the data (in minutes) shown in Table H.2. Allowances typically constitute 15
Penultimate Support Systems makes fairly good speaker and equipment support stands for music groups. The assembly process involves two operations:(1) fabrication, or cutting aluminum tubing to the
Carolyn Roberts is the operations manager of the machine shop of Reliable Manufacturing. She has to schedule eight jobs that are to be sent to final assembly for an important customer order.
McGee Parts Company is under tremendous pressure to complete a government contract for six orders in 31 working days. The orders are for spare parts for highway maintenance equipment. According to
A manufacturer of sails for small boats has a group of custom sails awaiting the last two processing operations before the sails are sent to the customers. Operation 1 must be performed before
Refer to the Gantt machine chart in Figure J.4.Figure J.4a. Suppose that a routing requirement is that each job must be processed on machine A first. Can the makespan be improved? If so, draw a Gantt
The last few steps of a production process require two operations. Some jobs require processing on M1 before processing on M3. Other jobs require processing on M2 before M3. Currently, six jobs are
Eight jobs must be processed on three machines in the sequence M1, M2, and M3. The processing times (in hours) are as follows:Machine M2 is a bottleneck, and management wants to maximize its use.
The repair manager at Standard Components needs to develop a schedule for repairing eight Dell PCs. Each job requires analysis using the same diagnostic system. Furthermore, each job will require
The machine shop at Bycraft Enterprises operates 24 hours a day and uses a numerically controlled (NC) welding machine. The load on the machine is monitored, and no more than 24 hours of work is
The drill press is a bottleneck operation. Currently, five jobs are waiting to be processed. Following are the available operations data. Assume that the number of remaining operations and the shop
You currently have an acceptance sampling plan in which n = 40 and c = 1, but you are unsatisfied with its performance. The AQL is 1 percent, and the LTPD is 5 percent.a. What are the producer’s
Consider a certain raw material for which a single sampling attribute plan is needed. The AQL is 1 percent, and the LTPD is 4 percent. Two plans have been proposed. Under plan 1, n = 150 and c = 4;

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