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business
operations management

Questions and Answers of Operations Management

How can suppliers’ failure to meet sustainability requirements hurt a buying organization? Name some companies that have suffered from this problem.
Look up “fair trade” on the internet and examine the principles that govern the movement. How can “fair trade” be applied to supplier management to create a more ethical supplier management
How would a service company like Marriott Hotels (Marriott International, Inc., Bethesda, MD) use a spend analysis to manage its suppliers?
XYZ Corporation is looking to switch suppliers for its commercial building operations. Its last supplier was notorious for promising on-time delivery to construction sites and was frequently late or
What is supply-base optimization and why is it important in supplier management?
Suppose another division of XYZ Corporation develops state-of the- art computer processing equipment and is considering moving to a low-bid process with its suppliers, which is likely to result in
A U.S. bank is planning to outsource its IT services to a service provider in India. After a thorough spend analysis and market evaluation, the bank has identified three possible providers. The
What are the three approaches for selecting suppliers and how do they relate to the purchase categories?
What are the two basic types of supply contracts, and what is the difference between them?
Briefly discuss the three basic types of purchase orders.
List the benefits of e-procurement.
Why is it necessary to manage, at the strategic level, the performance of your suppliers?
What types of supply risks do companies face when they contract with suppliers from countries like China and India? Why do these risks have to be managed? Discuss your answers by using some company
What are the three different types of supplier relationships discussed in the chapter?
What are the features of a well-designed supplier relationship management program?
What are some of the unique challenges companies face when managing their service providers?
What factors make managing global suppliers more complex?
Discuss the importance of logistics management for effective supply chain management. What factors have contributed to the evolution and growth of logistics management?
You have just taken a job with a diversified manufacturing firm, and as your first assignment, you must make some transportation decisions on behalf of your organization for shipping its various
What is line balancing?
Suppose you worked in a mass production environment for a company producing LED video screens and you were asked to help redesign their operations flow. What layout planning concerns would be a
Why might an organization consider using agile manufacturing? What pressures could the firm be facing? What advantages and disadvantages would it receive from using it?
A national pizza chain guarantees delivery of pizza orders within 20 minutes from the time of accepting an order; otherwise, the customer gets the pizza free of charge. Assume that actual delivery
What conditions should be met in order to conclude that a process is in control using control charts?
An airline company received the following complaints from customers who flew in its flights last year.1. Construct a Pareto chart summarizing these complaints.2. If you are responsible for managing
The Pennsylvania State Police issued tickets for the following infractions during the month of November, 2015. Construct a check sheet and a Pareto chart for these infractions. What are your
What is the difference between a c-chart and a p-chart?
Apple was planning to launch its new iPhone version (iPhone7) on January 31, 2017. Nonetheless, as a result of concerns over defective components in the product and cost overruns (80% over budget),
Why should a mean chart and a range chart be used together to determine if a process is in control?
You are waiting in the Buffalo International Airport to take a JetBlue Flight (JetBlue Airways Corporation, Long Island City, NY) to New York City. Your JetBlue aircraft that was expected to arrive
What is the difference between an attribute and a variable?
You live in Buffalo, New York. As you were getting ready to leave for work on a Monday morning, your car won’t start (effect). Identify the possible causes for your car’s failure using a
1. Think of a car that you would automatically rank of high quality. What are the features the car possesses or the image it conveys that would suggest it was of high quality?2. Contrast your rating
Describe the relationship between product quality and a company’s ethical behavior.
Explain why product quality and sustainability are closely linked.
What can global companies do to improve the quality of their goods and services?
List the approaches that can be used to improve a product or service’s quality during the different stages of its life cycle, including the procurement phase.
What is electronic service quality (e-SQ)? What four gaps can form between a consumer and an electronic-service provider?
Discuss the five gaps in the GAP model of service quality.
What are the dimensions of service quality?
Assume you are a consultant working with a software company that is interested in developing on-line and e-service options for their customers. What advice would you offer for a company on how to
What is the Six Sigma approach to quality management? Briefly explain the DMAIC process.
Think of an outstanding electronic service encounter you have had in the past year and contrast it with a poor example. What characterized the excellent service encounter, and how did it differ from
What are the criteria for the Baldrige Performance Excellence Program?
Construct a RATER assessment of a local restaurant? On which dimensions were they superior, and on which were they poor? Based on your perspective, how would you rate the relative importance of the
Explain how improving the quality of products and services can increase a firm’s productivity and lower its production costs.
Construct a GAP model to analyze patient/customer service quality for a health care facility.
What practices characterize TQM?
What are the advantages and disadvantages of the Six Sigma approach to quality? Would you advise an air traffic controller organization to commit to Six Sigma? Why or why not? What about a
1. Comment on the decision to use brown M&Ms as a safety check for the band’s performances. Does this seem a good way to verify quality to you? Why or why not?2. Suppose you were just promoted
Why is being ISO 9000 certified important to global firms?
What are the advantages and disadvantages of using the PAF model to calculate the costs of quality? What advice would you give to a CEO who is considering using the PAF model for his or her product
1. In your opinion, does this case illustrate significant problems with the Six Sigma philosophy? Why or why not?2. Do you agree with the assessment that a company can either focus on quality or
What are the consequences of poor quality products?
How have the “costs of quality” (prevention, appraisal, internal failure, and external failure costs) played a role in the success of Mercedes-Benz (Stuttgart, Baden-Württemberg, Germany), BMW
1. This case illustrates how complex it is to implement quality standards across a global supply chain. To minimize quality problems, what steps can a supplier and its customer take prior to signing
How have you seen examples of successful companies in your hometown profit by superior emphasis on product or service quality?
The purpose of this exercise is for the students to become aware that a company to deliver a quality product to its customers has to ensure that the quality of its product is maintained throughout
1. Pfizer’s experience demonstrates that correcting quality problems is often complex, time consuming, and expensive. Why, in your opinion, does it make sense for companies to invest time and money
List the eight dimensions of product quality. Pick the product offerings of any two competing firms. What are the similarities and differences between the products when it comes to each dimension?
Compare and contrast two hotel chains on the five service value dimensions: reliability, responsiveness, assurance, empathy, and tangibles. Give examples of how a premium hotel chain, such as the
What are some of the legal and ethical issues that companies need to consider while developing new products?
Describe the service system design matrix, and explain how it helps companies develop better services for their customers.
Outline the questions a service design should address.
Discuss the four key areas of supply chain collaboration that affect the success of the new product development process.
You are a Marine procurement officer interviewing potential vendors for a new combat-zone communications device. How would you value features such as modular design, design for reliability, and
Discuss some supply chain issues that affect the development of new products.
Identify a food product on the McDonald’s menu that you would expect will fail within one year. Why do you believe this is the case?
Discuss the challenges of designing new products globally. What factors are critical to the success of such a strategy?
How will mobile and smartphone innovations continue to push common products further down the product life cycle toward obsolescence? How are the Venmo (subsidiary of PayPal Holdings, Inc., San Jose,
What are the fundamental aspects of globalized new product development?
Using your research from problem 8, develop three lessons that all companies should pay attention to before attempting to launch products in other markets.Data from problem 8Conduct an Internet
Discuss the concept of time-based competition.
Janet Grillo is unhappy with her current high-speed Internet service. She is considering switching to another Internet service provider. Janet has narrowed her choices to three fictitious Internet
Conduct an Internet research for some examples of products that failed because of cultural differences. What are some common themes that you see emerging among these failures?
Bobbie Peters, the office manager at the business school office at a university, is debating whether a new laser printer should be purchased for faculty use. The school currently has one laser
Identify five products that you recognize solely by their logos. What was it about these products that makes them instantly recognizable to you?
The hydraulic systems in an aircraft have three major modules. Two modules have a reliability of 0.98, and the third has a reliability of 0.99.1. What is the reliability of the hydraulic system?2.
Conduct a simple value engineering exercise on a household appliance, such as a refrigerator, washing machine, or gas range. Using the Chevrolet Malibu (Case Study 4.1) as an example, identify three
Refer to problem 3. If the cost of the components varies according to their reliability levels as shown in the following table, and the cost to replace a failed system is $15,000, which of the
Identify three products that are, in your opinion, poorly named. Why do you find these products to be mid-named?
Image Tech, LLC (Oakland, CA) assembles cameras with the following structure from four major components:Image Tech can purchase the four components from three different suppliers who have the
You are planning to introduce a brand new refrigerator. You have also identified the following attributes that customers want in a new refrigerator: low price, low energy consumption, quiet
Compare and contrast product lifecycle management (PLM) and product life-cycle management (PLCM).
Which among the following systems is most reliable, A, B, C, or D? Why? Component 2 R (C.) = 0.95 Component 1 R(C.) = 0.95 A. Component 1 Component 3 Component 2 B. R (C.) = 0.97 R (C,) = 0.97 R(C.)
How are reliability and availability related? And how are they different?
Compare and contrast sustaining and disruptive innovation using examples to describe each.
Define the term redundancy, and discuss the role it can play in improving product design.
Compute the reliability of the following system: Component 1 R (C,) = 0.90 Component 4 Component 2 Component 3 R (C.) = 0.85 R (C.) = 0.95 R (C) = 0.98
What is the meaning of the term reliability?
1. Take a side in agreeing or disagreeing with the following statement: “The push to improve fuel efficiency is likely to cause engineers to pursue increasingly risky and untried technologies,
Why do new products fail? Pick an example of a product and a service that have failed, and discuss the reasons for their failure.
You are calculating the estimated time to completion for a project of 15 months€™ duration and a budgeted cost of $350,000. Assuming the following information, calculate the Schedule
Suppose you are deciding on whether to crash a project€™s activities and you have the following information:1. Construct the project€™s network. What is the project€™s
The federal government requires the organizations it contracts with for projects to provide regular SPI and CPI updates for them. The government likes to see values close to 1.0 for these indexes.
The following table shows the time information for the activities needed to develop an ad campaign.1. Calculate the expected activity times (round to nearest integer).2. Calculate the slack for each
You have a project with the following information:1. Calculate each activity€™s expected duration (TE) and variance. Which activities have the greatest variance?2. Create a network for this
Why do you need to take “value” into consideration when determining the status of a project?
Suppose for problem 2, you found a new supplier who could guarantee deliveries, allowing you to change project variance to 9 days.1. Recalculate the probabilities of finishing the project in 50, 70,
You have a project with an expected completion time of 15 weeks and a project variance of 4 weeks.1. What is the probability the project will be completed in 12 weeks?2. What is the probability the

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