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Operations Management Managing Global Supply Chains 1st edition Ray R. Venkataraman, Jeffrey K. Pinto - Solutions
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 similar and different, and how they might complement each other.
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. Find a related site for at least one other country. Compare their priorities and initiatives.
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 of edges on the desktops. The following orders need to be scheduled for the routing machine:The due
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 dramatically increased production. Employees are paid $20 per hour every Friday for that week’s work.
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, whereas the 10th unit took only 24 direct labor hours.a. Estimate the rate of learning that occurred
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 have stopped. If we have an 80 percent learning curve and say that the learning effect will be masked
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 $2,000 per accountant, or it can make the desks itself. Equipment to assemble furniture can be
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 experience that the learning rate is 90 percent. The production department estimates that
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 suggested bid price in the contract is based on an average of 20 hours of direct labor per
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 rate is estimated to be 90 percent on such systems. Another customer has just placed an order for the
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 concerned that a projected dramatic increase in demand as the end of October nears will cause service
A large grocery corporation has developed the following schedule for converting frozen food display cases to use CFC-free refrigerant:Week ....................................Units1 .............................................202 ............................................653
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 unit took 85 hours to produce. Based on past experience with manufacturing similar units, Cambridge
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 to complete.a. What is the learning rate?b. What is the estimated time for the 40th unit?c. What is
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 this method to management for use in estimating the proportion of nonproductive time for production
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 to modify the design of the machines to reduce the number of malfunctions. The modification will
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 helping customers with passport applications. Three clerks, each earning $36,000 per year, staff the
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 using work sampling:If the department wants a 99 percent confidence level and a degree of precision
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 placed on front lawns and city property. To ensure that the rally will go smoothly, the mayor directs
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 proportion of nonproductive time is, she believes that it is close to 20 percent. If the manager
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 order to estimate the potential savings from the computer installation. A work sampling study
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 standard time per package.b. Suppose that we want a sample size that gives an average time within ±5
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 confidence is desired.a. Calculate the standard time for the assembly operations.b. How many more
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 elements and a preparation time between drills. The element times (in seconds) for the first six cycles
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 three bags down the line. What is the normal cycle time for this operation? TABLE H.4 TIME STUDY
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 element 3 in Table H.2). The cook asked a peer to conduct a time study for this work element, with the
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 percent of normal time. The schedule calls for 300 hamburgers to be prepared during the lunch rush.
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 correct lengths, and (2) assembly, with purchased fasteners and injection-molded plastic parts. Setup
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. Currently, all eight jobs are in department 12 and must be next routed to department 22. All jobs arrived at
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 the government contract, a late penalty of $1,000 is imposed each day the order is late. Owing to a
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 operation 2, and the jobs have different time requirements for each operation. The hours required are as
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 chart with the improved schedule. If not, state why.b. Suppose that the machine sequence has no
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 waiting at M1 and four jobs are waiting at M2. The following data have been supplied by the shop
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. Consequently, the schedule for the eight jobs, through the three machines, was based on the SPT
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 additional processing after the diagnostic evaluation. The manager does not expect any rescheduling
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 released to the welding operators in one day. The data for a typical set of jobs are shown in Table J.1.
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 time remaining include the processing at the drill press.a. Specify the priority for each job if the
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 and consumer’s risks for this plan?b. While maintaining the same 1:40 ratio of c:n (called the
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; under plan 2, n = 300 and c = 8. Are the two plans equivalent? Substantiate your response by
Your company supplies sterile syringes to a distributor of hospital supplies. The contract states that quality should be no worse than 0.1 percent defective, or 10 parts in 10,000. During negotiations, you learned that the distributor will use an acceptance sampling plan with n = 350 to test
What is the lead time (in weeks) to respond to a customer order for product A, based on the BOM shown in Figure 11.34, assuming no existing inventories or scheduled receipts? FIGURE 11.34 ► A BOM for Product A LT = 2 B (1) E (1) LT = 3 LT = 2 D (1) C (1) F (1) LT = 8 LT = 4 LT = 5
The town of Lexington purchases gasoline from three vendors to fuel its fleet of municipal vehicles. Eachvendor delivers gasoline in 6,000-gallon quantities. Since vendors must deliver the fuel, a transportation fee (based on the distance the vendor must travel) is added to each delivery. The
Amazing Dairy produces yogurt, sour cream, kefir, and cottage cheese in 10-pound containers for the food service industry. Each product is made in 10-pound batches and requires similar processing through three machines. Details on Amazing Dairy’s product line, including the processing time in
Happy Dog Inc. produces three types of dog food. Puppy Blend is produced for dogs that are less than a year old, Adult Blend for dogs between 1 and 8 years old, and Geriatric Blend for dogs older than 8 years. Each blend, sold in 5-pound bags, has a unique recipe that requires, among other
Memorial Hospital is a 265-bed regional health care facility located in the mountains of western North Carolina. The mission of the hospital is to provide quality health care to the people of Ashe County and the six surrounding counties. To accomplish this mission, Memorial Hospital’s CEO has
Business travel often means staying overnight in a hotel. Upon arrival, you may be greeted by a doorman or valet to assist you with your luggage. Front desk staff awaits your check-in. Behind the scenes, housekeeping, maintenance, and culinary staff prepare for your stay. Making a reservation gives
The manager of Perrotti’s Pizza collects data concerning customer complaints about pizza delivery. Either the pizza arrives late, or the wrong pizza is delivered.a. Use a Pareto chart to identify the “vital few” delivery problems. Comment on potential root causes of these problems and
Recently, the Polish General Corporation, well-known for manufacturing appliances and automobile parts, initiated a $13 billion project to produce automobiles. A great deal of learning on the part of management and employees was required. Even though pressure was mounting to get a new product to
In what ways does the triple bottom line affect how the strategies for a firm’s operations function are formulated and implemented?
Orion Inc., a fictional company, produces automotive parts, accessories, batteries, and maintenance items for a variety of vehicles, including cars and vans. Orders for the company€™s products are shipped from distribution centers located in various regions using trucks. One of the
Quasar Exports Ltd, a fictional Turkish manufacturer of glass, wants to use a c chart to monitor the number of defects in the sheets of glass it produces. The company wants to use the chart to address the production problems it is experiencing and use it on an ongoing basis as a monitoring tool. To
A local manufacturing plant has three work stations (as shown in the following figure) with two machines operating in parallel in workstation 1. In other words, before proceeding to station 2, the product can be processed in either one of the two machines in workstation 1:1. Which workstation among
An Italian restaurant chain is planning to open a distribution center to prepare and ship the food ingredients required by five of its restaurants in Germany. The map coordinates and the annual truck-load shipments to each of these restaurants are given in the following table.1. Determine the best
What steps should a manager follow in using the simulation tool?
Discuss the reasons why businesses develop new products.
Why are SPI and CPI values important for the organization when determining a project’s status?
What are the flaws of using S-curves to determine the “true” status of an ongoing project?
Develop an argument for the triple bottom line when selecting among strategic alternatives; that is, how do the concepts of environmental, economic, and social value influence strategy?
While there are numerous ERP software vendors, the two largest are SAP and Oracle. Find out how these two companies compete, and compare their customers and product offerings.
Dale Computer Company accepts orders from customers for computers online through its website. The company configures and builds the computers to order at one of its distribution centers from components it orders from its various suppliers in Canada and overseas. It is continually retaining new
Jericho Vehicles is considering making a bid for a mobile rocket-launching system for the military. However, the company has almost no experience in producing this type of vehicle. In an effort to develop a learning curve for the production of this new mobile weapon system, management has called
Describe a job you have had in the past or a job you are very familiar with. Indicate the negative aspects of the job and how it could be improved with current human resource management techniques.
Look for layout software packages on the Internet. What do systems like Vis Factory do? Can you find any of the layout approaches discussed in the text?
Explore the sustainability requirements of production outsourced to different parts of the world and their connection to processes and technology. How can a supply chain enhance its sustainability efforts using processes and technologies?
Search the Internet for two or more companies that design for environment. What are the main components of each company’s green design initiative? How do their approaches differ?
Metropolitan Hospital is a university-owned and operated hospital. Its emergency room is the largest and most prominent in the city. Approximately 70% of emergency cases in the city come or are sent to Metro General€™s emergency room. As a result, the emergency room is often crowded and
Access the website of a company that sells products to the general public on the Internet. Discuss the quality attributes of the site, and evaluate the quality of the website.
Dalton Pharmaceuticals enjoys a dominant position in most of Canada with over 800 discount retail outlets. These stores are served by twice-weekly deliveries from Dalton€™s 16 warehouses, which are in turn supplied daily by seven factories that manufacture about 70% of all of the
Gander University is contemplating opening a European campus where students from the main campus could go to take courses for one of the four college years. At the moment, it is considering five countries: the Netherlands, Britain, Italy, Belgium, and Greece. The university wishes to consider eight
Let’s return to the Romano Chocolates Boutique, which, as stated, orders chocolates from a supplier in Belgium. Demand for the chocolates is relatively constant at 20 boxes per day. The lead time of these chocolates fluctuates but is normally distributed with a mean of 15 days and a standard
A grocery store uses a fixed order cycle policy for ordering the paper towels it sells to the store€™s customers. Demand for the paper towels is normally distributed with a mean of 50 rolls per day and a daily standard deviation of 3 rolls. The order interval is 12 days with a lead time
Given the following forecast and cost information, determine the total cost of a chase plan that uses regular time production output of 400 units per month, overtime is used when needed up to a maximum of 40 units per month, and subcontracting is used if additional units are needed to meet the
Complete the master production schedule based on the following information:Additional Information:On-hand inventory: 160Schedule production whenever projected on-hand inventory drops below 30 MPS lot size: 300 4 Week Forecast 120 100 130 110 140 140 170 180 Customer Orders Projected On-Hand
The components needed to assemble an end product, their lead times, and the amount of their on-hand inventories are presented in the following table. The product structure tree of the end product is also given as follows:Given this information:1. If 15 units of the end product are to be assembled,
What are some of the guidelines for effectively managing and controlling the performance of a master schedule?
Define backward loading and forward loading. What is the purpose of using each of these loading techniques?
What is sequencing? Explain how each of the five commonly used priority rules works in sequencing individual jobs.
The following jobs are waiting to be processed at a work center. Assume that the jobs arrived today and are listed in the order in which they have arrived.1. Sequence the jobs using the following priority rules: FCFS, EDD, SPT, LPT, and CR.2. For each of the rules, determine the average flow time,
A machining center has the following small jobs from five of its customers. The jobs are listed in the order in which they were received. Each job requires a certain amount of setup time in addition to its processing time. Job names refer to the names of the customers. Note that the job completion
Why are transportation models treated as a special case of linear programming models?
What are the advantages of computer simulations (compared to manual simulations) in analyzing real-world problems?
Ayush Pharmaceuticals, an Indian manufacturer of health-care products, is planning to expand its capacity to produce a new line of ayurvedic and herbal products. Nevertheless, the president of the company, Girija, is unsure about the nature of demand for this new product line. She is considering
What are the two key reasons for poor decisions?
1. Frame this situation as a decision. What are the strategic choices that Gerber faces as a result of these circumstances?2. Suppose you were a senior manager at Gerber when this issue came to light. What are the critical choices you need to make? What are the potential risks and costs for:(1)
1. This case illustrates an example of the fact that sometimes the €œbest€ alternative is the one that minimizes costs; in other words, the optimal solution is the one that isn€™t profitable itself but keeps a firm from losing too much money as a result of a bad
List and explain briefly the steps in the decision-making process.
Refer to Problem 1. After examining the past history of sales for similar products, Girija was able to estimate the probabilities for the three demand scenarios as: P (low) = 0.3; P (medium) = 0.4; and P (high) = 0.3.1. What is the EV for each alternative, and which one is the best?2. If Girija
List and explain the four elements of a decision.
Discuss the three decision-making categories.
Refer to Problem 3. After consulting with various fitness facilities in his state and examining demographic data, Miles was able to estimate the following demand probabilities: P (Low) = 0.2; P (Medium) = 0.3; P (High) = 0.4; and P (No change) = 0.1.1. What is the EV for each alternative, and which
Define the following decision-making criteria:1. Laplace criterion2. Maximin criterion3. Maximax criterion4. Hurwicz criterion5. Minimax regret
The Great Western University bookstore buys textbooks two months prior to the beginning of each semester. The store manager, Heidi Strong, uses departmental data and past student registration records to determine the number of textbooks to order from publishers. Pre-registration records show that
What is the expected value concept?
Sun Screen Inc., a U.S.-based manufacturer of solar panels, is planning to build a new manufacturing facility in one of five possible locations: Mexico, India, China, Greece, or Argentina.The cost of building a facility will vary, depending on the country€™s economic, social, and
Why is sensitivity analysis a useful tool for making decisions under uncertainty?
AMCO International, a major apparel retail company, has several stores in the United States and in countries throughout the globe. It imports most of its apparel products and garments from overseas suppliers. To improve its global supply chain operations, the company wants to contract with a single
When are decision trees an appropriate tool to use in the decision making process?
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