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operations management
Questions and Answers of
Operations Management
The following table provides results of DNA samples taken over the past 15 days using a sample size of 100:1. Using this information, construct a 3-sigma p-control chart.2. The following defects were
A hospital administrator wants to monitor the quality of service that the patients receive at his hospital. To facilitate this process, 50 patients are asked to complete weekly patient feedback
Crescent Manufacturing, a fictional firm, produces camshafts used in automobiles. A lathing machine is used in the cutting process of producing the camshafts. The production manager of the company
Elite Auto Service Station services different makes and models of cars and SUVs. The auto station, to determine the quality of service it provides, conducts a weekly survey of five of its customers.
Refer to problem 23. In addition to the information provided in the problem, Patient Transport Co. has also specified an upper tolerance limit of 20 minutes for its transportation time.1. Is the
The fictional Patient Transport Co.’s target time to get customers to hospitals is 16 minutes. To evaluate whether it is reaching that target, for 20 consecutive days, the firm tracked patients’
The diameter of a motor shaft has the following specifications in millimeters: 120 ± 10. The manufacturing process used to produce these shafts is normally distributed, and control charts show it to
Erie Furniture Store, a fictional company, buys chests of drawers made out of teakwood. One of the features that determines whether a chest of drawers is of good quality is the presence or absence of
The Trinity Hospital Quality Improvement (QI) team wants to monitor the C section deliveries of pregnant mothers admitted to the hospitals obstetrics unit. The team decided to construct a
Omega Electronics (Jaipur, India) mass produces monitors that are used for medical imaging technology. To monitor the quality of the production process, the company draws samples of 100 tubes each,
1. How does seasonal demand affect the firm’s capacity planning and constraint management?2. Identify the most critical issues in the case, and develop a strategic capacity plan for Kirwain.3. What
The following article highlights some capacity planning challenges that companies face in meeting demand for their products in a growth market. Specifically, the article discusses the success of Fiat
Why is it important to consider both capacity utilization and capacity efficiency measures when evaluating a firm’s capacity performance?
XYZ International is planning to increase its capacity to overcome the bottlenecks in its production line. The firm plans to do this by the addition of a new machine. The company received proposals
What are capacity cushions, and why do companies need them?
Briefly discuss the caveats that companies should be aware of when developing capacity alternatives.
Discuss the factors that make capacity planning in supply chains difficult.
What are some of the unique capacity planning challenges that service companies face?
The following diagram illustrates a production system with four work stations arranged in sequence along with their number units each can produce per hour:1. Which work station is the bottleneck?2.
Discuss briefly the steps involved in capacity planning for services.
A manufacturing firm is planning to purchase new machines for processing four products it manufactures. Demand information and processing time data for the four products are shown in the following
What are supply chain contracts and how are they used to address capacity-related issues?
An operations manager, to increase the capacity of his manufacturing plant, decides to buy an additional machine. He has three alternatives: Machine I at a cost of $60,000; Machine II at a cost of
Explain how capacity can be managed to implement sustainability principles.
The business school of Loyola College, Chennai, India, has the capacity to enroll 1,500 business students in its class offerings every semester. Nevertheless, the dean of the college, Fr. Francis
What are some of the challenges of global capacity management?
XYZ Manufacturing has computed for the current month the following effective capacities and efficiencies for three of its departments.What is the expected production next month for each of the three
Laurel Nelson owns a beauty salon. Laurel’s fixed costs are $15,000 per month. The average variable cost for the beauty supplies she sells is $10 per unit. The average selling price of a product
The production process at ABC Manufacturing is as shown in the following figure:A product in this production process needs to go through only one of the painting operations:1. Which one of the
A manufacturer of a small appliance produces motors for the appliance using two identical processes. Each process has a design capacity of 300 units per day and an effective capacity of 250 units per
What is the capacity of the production system shown in the following figure?
A process has been designed to produce 3,000 units per day. The effective capacity of the process, however, is impacted by an inherent scrap rate of 10%. In addition, the actual output of the process
Determine the capacity of the production system shown in the following figure. To increase the output of the system, which work center capacity should be increased, and by how much? WC-7 17 units/hr
The fictional Reliance Retailers are planning to locate a new retail facility in the Chicago area. The firm has narrowed its location choices to three Chicago suburbs: Oakbrook, Evanston, and
1. What are some of the most common reasons for the counterfeiting of materials at a company’s overseas supply source?2. What are some steps a company can take to lessen the impact of
The following article highlights the importance of making global location decisions based on the total cost of ownership. In other words, companies need to make global location choices by evaluating
Discuss briefly each of the four phases of designing a supply chain network.
Solar Flare Inc., a mythical manufacturer of solar panels, is planning to build a new facility in a South American country. Bill Johnson, the manager responsible for this decision, has identified
Discuss the strategic importance of facility location decisions.
What are some of the reasons why companies find new locations or relocate their existing facilities?
A U.S. hospital chain is planning to enter the Indian market by building its first medical facility in southern India. The director, Dr. Uma Raman, is a native of that region and is familiar with the
What are some of the disadvantages of relocating facilities to a foreign country?
A manufacturer of high-technology medical equipment is planning to expand and build a new plant in one of the following countries in Southeast Asia: Philippines, Singapore, and Malaysia. John
The global facility location decision process occurs in a sequence of three stages:(1) Country decision,(2) Regional/community decision, and(3) Site decision.List and briefly explain each of the
The Great Lakes Institute of Technology (Erie, PA) is planning to open a new campus in one of the following five countries: India, Singapore, Bangladesh, Thailand, and China. The dean of the
How do locations strategies for service facilities differ than location strategies for manufacturing facilities?
Reliance Home Inc., a fictional manufacturer of dishwashers, washers, and dryers, is planning to construct a new warehouse and distribution center in Asia to serve the markets in that continent. The
What minimum set of criteria should service firms establish when selecting new locations?
Peter Boyle is planning to build a new recycling plant. The fixed and variable costs for three potential sites are as follows (in U.S. dollars):1. Over what range of recycling volume is each city
What is a Geographic Information System (GIS)? How can a restaurant use this tool to select a new facility for its operation?
A ski equipment manufacturer is planning to build a manufacturing plant in Europe. The fixed and variable costs (in U.S dollars) for four potential plant sites are shown as follows:1. Graph the
Dolphin Motors is evaluating three sitesA, B, and Cto locate a plant to build its new Sedan Dolphin XL600. The total annual cost is the sum of the annual fixed costs and
You and your father have taken on the project of remodeling your basement to turn it into a “mother-in-law” apartment for your relatives. You have calculated that you expect to complete the
Why is it helpful to consider the variance of each activity in a project? Why do “large” variances create a problem for the project manager’s estimation efforts?
Under what circumstances should you consider crashing a project’s activities? What activities are the best candidates for crashing? When should you stop crashing the activities?
In May 2015, the Mercedes-Benz (Stuttgart, Baden-Württemberg, Germany) factory in Alabama produced 5,000 sport utility vehicles (SUVs). During this month, the labor productivity at this plant was
What are the steps that you would take to improve productivity in a manufacturing organization? In a service organization?
Outline the factors that affect productivity.
Adrian Thomas (from Problem 15) has determined the costs of inputs for making golf balls as follows:Labor: $12 per hourMaterial: $6 per poundMachine: $8 per hourEnergy: $0.60 per BTUCompute the
Adrian Thomas makes golf balls in his Erie, Pennsylvania, plant. Adrian wants to improve the overall productivity of his company given the increases in the cost of inputs in recent years. He has the
A multinational company has two manufacturing plants, one in Germany and the other in China. Both plants produce the same product, which is sold in their respective countries. By using a partial
The fictional Enrobe Textile Inc. has garment production facilities in several locations around the globe. The average monthly cost of inputs (in U.S dollars) and output levels (in units) for each of
Define single-factor, multifactor, and total productivity measures.
The following data were collected by Orion Industries Inc. (Auburn, WA) to compile the monthly productivity report to be presented to its board of directors. By using these data, compute(a) The
Define productivity. What is the difference between productivity and efficiency?
GreenTile, Inc. is a fictional manufacturer of heat-absorbing ceramic tiles that can store and radiate heat for hours after sundown, saving homeowners heating costs during winter months. This year,
What are the six capabilities needed for an integrated global operations and supply chain strategy?
You run a medium-sized farming equipment repair firm in North Dakota. Your busiest season is the late fall through winter months when area farmers need repairs done to their equipment. Because you
What are the distinguishing features of companies that lead the way with sustainable supply chain strategies?
The fictional Taj Mahal Indian grocery store had sales of US $50,000 in August and US $62,000 in September. There are 10 full-time workers in the store, each of whom worked 40 hours a week. In
A key supply chain strategy decision is to determine the structure of a firm’s supply chain. How do you think the supply chains for Wal-Mart and IKEA are structured?
A Swiss manufacturing company that operates two manufacturing plantsone in the United States and the other in Indiashows the following results (all figures are in U.S.
Compare the operations strategies for goods versus service firms.
Udupi, a fictional catering service, prepares and serves meals at wedding receptions, anniversary celebrations, and birthday parties. The data in the following table provide the companys
Develop a balanced scorecard for a regional airlines company.
Orion Tile & Marble Inc. (Anaheim, CA) supplies and installs ceramic tiles. The company tracks its workers output over the past several weeks, and the data are as follows:1. In which
From an operations strategy perspective, how can the balanced scorecard be used as a performance measurement system?
Identify five critical success factors for a firm competing in the software gaming industry.
Suppose that you own a lawn mowing and snowplowing service and are planning to provide these services to homeowners in a wealthy neighborhood. How would you use the concepts of order winners and
Discuss how the following changes in a firm’s external environment would affect its operations management (OM) strategy. What impact would these changes have on OM strategy:1. Threat of war between
What do you think the order-winning and order-qualifying criteria for the furniture retailer IKEA (Delft, the Netherlands) is?
Suppose you are a retail store owner trying to decide whether to extend your Black Friday hours to start on Thanksgiving afternoon. You know that you earn 40% of your annual sales revenue during the
Why is it important to maintain a strategic fit among the four elements of an operations strategy? How can a company resolve any mismatches among them that result from changing markets trends or
Suppose you were asked to determine and align the four elements of an operations strategy for The Boeing Company (Chicago, IL). Identify its customers, core competencies, operational critical success
Describe why an operations strategy is critical to a firm.
Suppose you were recently hired by the adidas Group (Herzogenaurach, Germany) to help the firm address its triplebottom line. Research adidas at http://www.adidasgroup.com/en/group/profile/ to
FedEx’s core competency is embedded in its slogan: When it absolutely, positively has to be there overnight. Identify that core competency.
The following article discusses how Nestlé S.A. (Vevey, Switzerland) coped with the volatility in food and raw material costs. The company crafted a strategy that didn’t depend on commodity prices
1. Take a position either for or against the following statement: “To prepare for disasters, you should stockpile inventory, other critical supplies, and raw materials.”2. Think of Heinz’s (H.
What are some of the inherent problems in measuring productivity in the service sector?
Consider the Lessons Learned about Apple. Why is it dangerous to use a single source supplier when you are a company like Apple, which depends heavily on its ability to dazzle consumers with new
Give an example of how ethics plays a role in supply chain management? (Think of the process of qualifying international, upstream suppliers. How would ethics factor into this decision?)
Why is sustainability so critical for successful operations and supply chain management in modern organizations?
Consider the evolution of operations and supply chain management (Table 1.3). Suppose you were tracing the likely development of Coca-Colas operations from its founding in 1892 to the
Why are the concepts of demand management and supplier management so critical to success operations and supply chain performance? Give examples of companies that specialize in excellent demand and
What are some of the major downstream costs in developing a supply chain? Identify the different downstream interfaces, and consider some of the likely costs associated with each of these interfaces.
What are some of the major costs in developing a supply chain? Identify the different upstream interfaces, and consider some of the likely costs associated with each of these interfaces.
What are the advantages and disadvantages of having multiple layers of first- and second-tier suppliers?
Given the conflicting information in the two metrics (corruption and competitiveness) in questions 8 and 9, how would you resolve these discrepancies? That is, when dealing with supplier choices that
Suppose you were considering hiring a supplier for a critical good your firm needs to make its products. Your final choices came down to three companies: one in Nigeria, one in Venezuela, and one in
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