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business
operations management

Questions and Answers of Operations Management

What are the factors that determine the extent to which learning occurs?
Why is it easier to apply the learning curve concepts in a manufacturing rather than in a service setting?
A new electronic component produced for an oil drill rig took 40 hours for the production of the first unit. If the production process has an 85% learning rate, calculate:1. The estimated time
Discuss some of the areas where applications of learning curve concepts have been found useful.
Discuss why more learning occurs at a 70% learning rate than at an 80% rate.
Why do learning curves flatten out as the number of repetitions of task increases?
What factors might cause a learning curve to peak upward as the number of repetitions increase?
Timothy Moore, an IRS auditor, wants to determine the approximate learning rate for processing tax returns. He has recorded the following times (in minutes) for the first seven tax returns:1.
An operations manager claims that one of the production processes he oversees has a learning rate of 88%. One of the new components produced in this production process has the following completion
Can you think of some circumstances where a manager may want no learning to occur?
Alert Corporation produces a new home security system with a built-in surveillance camera. It took the company 82 hours to produce the first unit, and the company has a learning rate of 75%:1. How
Orion Electronics produces electronics components. As a result of the increasing demand for this component, the company hires three new skilled workers. The following table lists the time it takes in
The housekeeping department hires a new maid, Donna Hunter, to clean the hotel’s guest rooms. Donna took 90 minutes for her first iteration of cleaning a room and 75 minutes for the second
An Operations Management consultant, Dr. Varun Gupta, has been asked to prepare a new SAP-based (SAP SE, Walldorf, Germany) ERP system training course that will be taught yearly at a local company.
Prince Aerospace Inc. builds small commuter aircrafts for sale to various customers. The company has a skilled workforce of 15. The total labor time contributed by each worker of this work force is
SuperTech Enterprises contracts with both regional and national airline companies to service the hydraulic systems of their aircrafts. The company has to prepare a new service contract to service the
Clear Site Inc. is a manufacturer of night vision devices. The company is about to bid on a new night vision goggle for the military. The product uses state-of-the-art infrared illuminator
Refer to Problem E.16. Using the data in Problem E.16:1. How long will it take to service the 10th hydraulic system?2. How long will it take to service hydraulic systems 10 through 15?3. If SuperTech
Refer to Problem E.17. The direct labor cost to produce a night vision goggle is $30 per hour. Job setup costs and direct material costs are $40, and material costs are $15 per goggle. The overhead
List and briefly explain the costs of quality.
What is the Taguchi loss function, and how is it used to improve the quality of designs?
The specifications for the diameter of a motor shaft are between 2.3 inches and 2.5 inches. Any motor shaft that falls outside of these limits is considered to be defective. The average diameters of
What information on a process’s capability do the Cp and Cpk indexes provide individually and jointly?
If you conclude using a control chart that a process is in control, can you also assume that the process is also capable?
The fictional Zantec Tool Company manufactures metal washers used as locking devices. One of the parameters that determine the quality of a washer is its diameter. The company’s manufacturing
Madan Lal & Sons is a fictional Indian manufacturer of highquality cricket balls.The balls are 100% handmade and consist of high-quality leather and other materials. To maintain its reputation as
Spencer’s Food Mart (Spencer, OK) monitors its customers’ checkout times using mean and range charts. Eight samples of n = 20 checkout time observations (in minutes) were collected, and the
Trinity Hospital in the Philippines has been experiencing an increase in the errors related to the medication administered to patients. Over the course of 30 days, the hospital collected the
A courier company guarantees its customers that the average time to pick up their packages is 20 minutes with a tolerance of ± 6 minutes. The company collected data on 30 actual arrival times and
A glass manufacturer wants to measure flaws in sheets of float glass produced using control charts. The company would like to address problems that the chart highlights until the process becomes
What is the difference between effective capacity and design capacity?
Refer to problem 13. Suppose Laurel plans to expand her business. The new fixed cost would be $20,000. The average variable cost reduces to $9 per unit and sales price remains at $15 per unit.1. What
Discuss briefly the three key elements of the global capacity management process.
Blue Moon Airways (BMA), a fictional airline company with headquarters in India, is planning to open a second service hub in response to surge in demand for air travel to and from India to cities in
Mary Beth Olsen, owner of a pizza shop, is planning to expand her operation by adding one additional pizza shop. She has narrowed her choices to three locations. Labor and materials costs per pizza
A textile factory produces men€™s clothes at the following five locations in Southern India: Tirunelveli, Palakad, Tiruppur, Tumkur, and Vijayawada. The company now needs to determine the
What sustainability and ethical issues do companies need to consider when making location choices?
Varun Excelo, a fictional construction company in Chennai, India, is planning to construct a new beachfront resort along the eastern coast of India. The company has narrowed its choice to the
1. Think of other examples of sustainability that are motivating corporations worldwide to redesign their processes. What are some critical factors that have led to this movement, as well as some
How can you use the following process analysis tools to improve or redesign existing processes?1. An assembly chart2. A process routing sheet3. A process chart
This chapter suggests that capacity planning and process selection serve as a link between external, market-driven demands and internal operational processes. Why is this the case?
You have just been hired to redesign the layout of a moderately priced restaurant in midtown New York City. You serve two meals daily—lunch and dinner. In analyzing some of the critical elements in
What advantages does a process simulation have over the charting techniques used to analyze a process?
Under what circumstances would an organization consider producing a component in-house versus outsourcing it?
Suppose that you were now considering the redesign of a lowpriced, family-style restaurant in South Florida. How might your budget priorities for the various design elements change? Why?
The goal of a retail layout is to maximize profit per square foot of floor space. How does this principle affect your decision on how many products to stock in a retail clothing outlet?
Discuss service blueprinting and how it’s useful for analyzing service processes.
What is a Muther’s grid, and how is it used in process layout decisions?
Referring to problem 3, is there a critical mass for stocking products on retail floors? In other words, how would you evaluate a retail clothing store that crowded the aisles with clothing displays?
Explain the service process design matrix. How can organizations use it when examining their service processes?
Given the following Muther€™s grid, design a revised layout on a 2 Ã— 3 grid: Department (1) Department (2) Department (3) Department (4) Department (5) Department (6) Closeness
What are some common examples of intermodal transportation? Briefly describe how each works.
Identify the four broad categories of materials handling.
What are the inputs to an MRP system? What information is provided by each of these inputs?
What is the difference between independent and dependent demand? Explain the difference with an example.
What are the key features of a DRP system?
Refer to problem 6. If 70 units of the end product are required at the beginning of week 8, develop material requirements plans for subassemblies J and L as well as component M. Subassemblies J and L
Dorian Furniture Inc., a fictional furniture manufacturer, has established the following production schedule for the next 4 weeks for three of its furniture products:The two critical work centers for
What are the key benefits and limitations of an ERP system?
How does the master scheduling process differ for the various production environments?
An air compressor assembly department has four employees who each work 40 hours a week. The processing time for assembling an air compressor is 3 hours. Given the information provided in the
Discuss briefly the common modules included in an ERP system.
Describe the time fencing concept used to achieve stability in the master schedule.
The manufacturing sequence for two products that a company produces involves fabrication, assembly, and painting operations. Each operation requires 2 days to completely process a production lot
What are some key features of an ERP system?
Draw a product structure tree for a rolling cart using the low-level coding scheme. Item Components Rolling Cart Top Top, leg assembly, frame Sheet steel Sheet steel Leg Assembly Legs (4), casters
Given the product structure tree below for end-product P,1. Determine the number of units of S, T, U, and V needed if 10 units of end product P are to be assembled.2. What is the low-level code for
Discuss briefly the different functions of the master schedule.
Nerula Bakeries, a fictional bakery, has the following demand requirements for its specialty cakes in the month of June.The labor skill requirements for making specialty cakes are high, and the
Describe the differences among MRP, MRP II, and ERP systems.
Complete the master production schedule based on the following information:Additional Information:On-hand inventory: 600Schedule production whenever projected on-hand inventory drops below 30MPS lot
Define available-to-promise (ATP).
Firebird Bicycle Company, a fictional company, produces three brands of bicycles: Racing, Mountain, and Cruiser bicycles. The master schedule in the following table shows the demand requirements for
Describe briefly how the capacity planning process works.
What are the outputs from the master scheduling process?
Orion Manufacturing Inc., a fictional company, has scheduled production of the following three of its products for the 4 weeks of January as shown in the following table:The two key work centers for
What are the key inputs and outputs of the capacity requirements planning system?
1. How would materials management allow Amy and her partner to better organize and coordinate deliveries and maintain critical stocks of food for service?2. Construct a hypothetical product structure
Visual Optics Inc. (a fictitious company) produces a premium line of women€™s sunglasses. The company has prepared a 10-week forecast for these sunglasses, given in the following table. In
Refer to Example 17.1. Suppose process reengineering initiatives have enabled the company to reduce the number of worker hours required to produce a pair of skis to 3 hours. Develop a least-cost
What are some of the unique challenges and requirements of global sales and operations planning?
The manager of a company that produces compressors for refrigerators has developed the following forecast for compressor demand:
What are the benefits of coordinating a company’s S&OP process with its supply chain partners? What are the challenges?
Refer to the data in problem 6. If backorders are allowed, determine the total cost of a plan if overtime is limited to 40 units per month and subcontracting is limited to 20 units per month.
Discuss some of the S&OP strategies that service companies can use.
Holding inventories is not an option for many service businesses. How does this impact sales and operations planning for these businesses?
Daily demand for automotive batteries in an automobile repair shop is normally distributed with a mean of 10 batteries and a standard deviation of 1 battery. The cost of a dissatisfied customer,
A French restaurant’s daily demand for pinot noir wine is normally distributed with a mean of 20 bottles and a standard deviation of 3 bottles. The restaurant manager checks its supply every 15
An automobile service station uses 900 cases of motor oil annually. The station operates 300 days a year. The order replenishment lead time for motor oil is 4 days with a standard deviation of 4
A large law firm uses a constant 50 reams of copier paper per day. The lead time for the paper is approximately normal, averages 9 days, and has a standard deviation of 3 days. What reorder point
The desired service level for a sporting good store’s inventory of string bathing suits is 85%. The average demand during the replenishment period is 180 suits with a standard deviation of 30
The demand for frozen yogurt at the fictional Garland Ice Cream and Dairy store can be approximated by a normal distribution with a mean of 50 gallons per day and a standard deviation of 6 gallons
The daily demand for integrated circuit boards by mythical Reliance Computers, which assembles computers, is 80 units. The daily demand is normally distributed and has a standard deviation of 6
Cheryl Hunter is responsible for maintaining adequate hospital supplies at fictional St. Thomas Hospital. The demand and lead times for syringes are assumed to be constant. During the past year, the
Emily Larson is in charge of purchasing surgical supplies for a county hospital. Emily is evaluating two suppliers (suppliers A and B) to purchase forceps for the hospital€™s surgical use.
A U.S. company that orders brass couplings from a supplier in China noted that the cost of the couplings increases significantly at each reorder cycle. The company uses the EOQ model to determine its
In the EOQ model, how do we determine the optimum order quantity?
1. What does the public’s reaction to Wal-Mart’s Project Impact suggest about expectations for discount stores?2. What are the inventory control implications for making drastic changes like
Why must companies carry inventory?
A manager of a home improvement store has been using the linear trend multiplicative model to predict the demand for his lawn mowers. The quarterly seasonal indices are S1= 0.85, S2= 0.90, S3= 1.10,

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