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business
operations management
Operations Management Creating Value Along the Supply Chain 1st Canadian Edition Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi - Solutions
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 following data on the inputs and outputs from two sample years:Compute the percentage change in
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 productivity measure for labor, an analyst for the company finds that the productivities of these two
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 these production facilities are given in the table.Using the information in the table:1. Compute
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 partial labor productivity,(b) Partial machine productivity, and(c) The multifactor productivity (in
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, GreenTile will produce 280,000 tiles at its plant in Phoenix, Arizona, to fill demand orders from its
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 have limited cash flow, keeping extra people on your payrollis expensive and undesirable. You have
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 August, the store also employed six part-time workers, each of whom worked 15 hours a week. In September,
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 plants€”one in the United States and the other in India€”shows the following results (all figures are in U.S. dollars):1. Compute the partial productivity measure for labor, materials, and equipment. How would you
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 company€™s labor and material usage for the past four weeks for various events. The labor cost is US$10 per
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 week was labor productivity the highest?2. What are some possible reasons for the differences in
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 order qualifiers to formulate and implement your service operations strategy?
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 Pakistan and India2. Significant drop in oil prices as a result of new technologies3. Price
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 weeks between Thanksgiving and Christmas, with a big percentage occurring on Black Friday. How would
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 customers’ order-winning criteria?
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 factors, and product factors. For each element, list no more than three examples.
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 develop a picture of the company and its strategic goals. How does it currently address triple bottom-line
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 falling. This strategy relied on the efficiency of the operations function to reduce costs, while
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. J. Heinz Company, Pittsburgh, PA) production of consumer goods and food products. How might you
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 products? How could employing multiple suppliers minimize Apple’s risk in case one of its suppliers
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-Cola€™s operations from its founding in 1892 to the modern day. How might some of the innovations and production emphases over the past 125 years have
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 supplier management practices?
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 involve multiple assessments, what should be the critical decision criteria for selecting
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 Bangladesh. Using the assessment of International Competitiveness from the World Economic Forum’s
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 Bangladesh. Using the Corruption Index from Transparency.org, which company would seem the safest
Give an example of a supply chain for a service.
Figure 1.5 presents the operations function as a system that transforms inputs into outputs. For the following scenarios, identify the inputs and outputs and the value created during the transformation process:1. A patient undergoing surgery in a hospital2. Airline travel3. Teaching students in a
Consider the operation management interfaces with other business functions shown in Figure 1.4. Read the Zara Operations Profile. What interfaces in Figure 1.4 does Zara manage well? Why?Figure 1.4 Finance • Budgets • Cost analysis • Capital investments • Stockholder needs • Production
What are the key differences between goods and services?
Use the Internet to find examples of organizational transformation processes that are(a) Physical,(b) Locational,(c) Transactional,(d) Physiological,(e) Psychological, or(f) Informational?List a company’s operations associated with each of these transformation processes [e.g., The Walt Disney
After considering the various career options within supply chain and operations management, what underlying skills do you believe successful managers need to possess? Why?
Explain in some detail the critical role of the operations function in a company’s success and its supply chain.
Define global supply chains. What are the inherent challenges that companies face in managing them?
Why are companies setting up call centers and other service offices in India? If you were hiring Indian employees for such a call center, what characteristics would be critical for them to be hired?
1. Develop an argument either in favor of or against a deliberate shortage strategy, such as Nintendo has experienced in the past. What are the advantages and disadvantages of maintaining shortages?2. With increased sales of competing devices, can Nintendo maintain a bottleneck strategy? What might
Wal-Mart (Wal-Mart Stores Inc., Bentonville, AR) has been one of the most successful companies in the retail industry because of its ability to sell products at “everyday low prices.” What competitive strengths of Wal-Mart gave the company this advantage over its competition?
What are some key reasons why a firm should consider offshoring or outsourcing its work? Imagine you are the head of operations for Nike. What functions would it make sense to offshore or outsource, and which activities might you consider maintaining in-house? Why?
1. How do you respond to the view that China’s competitive advantage is based solely on a low-cost strategy that results from its workers’ low wages?2. Do you see dangers from over-reliance on China as a source for the inbound supply chain? That is, what risks do international firms run if they
Toyota, known for its quality automobiles, had its reputation tarnished by having to recall millions of its vehicles due to defective accelerators and brakes. The following article discusses the importance of accepting that quality problems can occur in any company and the need to have an effective
Compare and contrast outsourcing and offshoring. List some of the companies that have adopted these strategies in recent years and the reasons for them.
Give three examples of large firms that have international suppliers.
The Braykup China Company makes an assortment of gift and commemorative items with team and university logos, such as plates, bowls, and mugs. One popular item is a commemorative stein. The steins are all physically identical, with the only style change being the team colours, name, and logo. The
Go to the Excellence Canada website at www.nqi.ca and research several companies that have won the different awards. Describe any common characteristics that the quality-management programs in those companies have.
What is your core competency? Make a list of the core competencies you will need to compete successfully in the job market. Design a strategy for developing the competencies that you do not have and capitalizing on the competencies that you do have.
Kim Wakaruk, R.N., the charge nurse of the antepartum ward of Children€™s Hospital in Calgary, needs help in scheduling the nurse workforce for next week.a. Create an employee schedule that will meet the demand requirements and guarantee each nurse two days off per week.b. Revise the
University students always have a lot of work to do, but this semester, Katie Sirinyan is overwhelmed. The table below lists the assignments she faces, the estimated completion times (in days), and due dates.Help Katie prioritize her work so that she completes as many assignments on time as
Look for advanced planning and scheduling software on the Internet. Write a summary of the techniques presented.
Explain the drum-buffer-rope concept.
What is a poka-yoke? Give an example.
Why is uniform production important to lean production? How is it achieved?
Which elements of lean production are the most difficult to implement? Why?
Zakirul is asked to produce 250 squidgets an hour. It takes 30 minutes to receive the necessary material from the previous workstation. Each output container holds 25 squidgets. The factory currently works with a safety factor of 10%. How many kanbans should be circulating between Zakirul’s
Soltar Manufacturing produces three types of trucks on one assembly line: the long-haul (L), the short-haul (S), and the vocational truck (V). Next month the company has orders for 500 long-haul trucks, 750 short-haul trucks, and 250 vocational trucks. Sacha Baril, the production manager for
What are some typical benefits from implementing lean production?
Discuss the problems Toyota has had with quality. What has the company done to refurbish its reputation?
Access the website of an ERP vendor such as Oracle, SAP, Infor, i2 Technologies, or QAD. Make a list of the modules available. Choose one module to describe in detail.
Sitting on Maggie Klimchuk€™s desk is the latest planned order report from the company€™s MRP system. Maggie€™s job is to determine if there is enough capacity to handle the workload and to level the load if it€™s uneven. She gathers the latest cost figures
Kid€™s World sells outdoor play equipment for children. One of its most popular items is a 5-foot by 7-foot wooden sandbox shown below. General assembly instructions follow. Assembly Instructions:The wood pieces for the sand-box are ordered precut and treated. Kid€™s World
From articles in recent business magazines, describe the newest trends in e-business software.
Valley Electric Company generates electrical power at four coal-fired power plants in Nova Scotia, New Brunswick, Quebec, and Ontario. The company purchases coal from six producers in British Columbia, Alberta, and Saskatchewan. Valley Electric has fixed contracts for coal delivery from the
The Cascades Swim Club has 300 shareholders, each holding one share of stock in the club. A share of club stock allows the shareholder€™s family to use the club€™s heated outdoor pool during the summer upon payment of annual membership dues of $175. The club has not issued any
The daily demand for Iron coat paint at the Top Value Hardware Store in North Bay is normally distributed, with a mean of 30 liters and a standard deviation of 10 liters. The lead time for receiving an order of paint from the paint distributor is eight days. Since this is the only paint store in
In Problem S13-11 discuss how you might assess the accuracy of the average rating for North-East University students based on only 20 simulated dates.Problem S13-11Northern University and North-East University are located near each other, and the students at each university frequently date. The
Complete the available-to-promise table below. Period On-hand = 10 5 Forecast 50 50 50 50 50 50 Customer orders 56 17 75 50 16 14 Master production 100 100 100 schedule Available-to-promise 3. 2.
Complete the available-to-promise table below. Period 3 On-hand = 30 Forecast 100 50 100 50 100 50 Customer 75 50 116 73 45 23 orders Master 50 100 50 100 100 50 production schedule Available-to- promise 2.
Calculate the available-to-promise row in the following matrix. Period 3 On-hand = 100 Forecast 50 100 50 100 50 100 15 Customer orders 50 125 75 175 45 200 Master production 200 schedule Available-to-promise
The Mystic Coffee Shop blends coffee on the premises for its customers. It sells three basic blends in bulk in one-kilogram bags: Special, Mountain Dark, and Mill Regular. It uses four different types of coffee to produce the blends: Brazilian, mocha, Colombian, and mild. The shop used the
East Coast Airlines operates a hub at the Halifax International Airport. During the summer, the airline schedules seven flights daily from Halifax to Toronto and 10 flights daily from Toronto to Halifax according to the following schedule.The flight crews live in Halifax or Toronto, and each day a
The Cross-Canada Trucking Company has expanded its shipping capacity by purchasing 120 trucks and trailers from a competitor that went bankrupt. The company subsequently located 40 of the purchased trucks at each of its shipping warehouses in Quebec City, Sault Ste. Marie, and Edmonton. The company
The Tycron Company produces three electrical products€”clocks, radios, and toasters. These products have the following resource requirements:The manufacturer has a daily production budget of $2000 and a maximum of 660 hours of labour. Maximum daily customer demand is for 200 clocks, 300
University Press publishes textbooks for the university market. The demand for university textbooks is high during the beginning of each semester and then tapers off during the semester. The unavailability of books can cause a professor to switch adoptions, but the cost of storing books and their
Calgary Airlines routinely overbooks its flight from Calgary to Vancouver. Overbooking discounted seats can be expensive because providing a bumped passenger with a last-minute flight on a competing carrier can cost $450. A 120-passenger jet costs about $6000 to operate from Calgary to Vancouver.
FlyUs Airlines is unhappy with the number of empty seats on its Sudbury to Toronto flight. To remedy the problem, the airline is offering a special discounted rate of $89 instead of the normal $169, but only for 7-day advance purchases and for a limited number of seats per flight. The aircraft
NorthStar Airlines runs daily flights from Halifax to Montreal. The planes hold 60 passengers and cater to the business traveler with comparable business rates. The recent economic downturn has reduced the occupancy rate of flights to such an extent that NorthStar would like to offer a set number
What constitutes the feasible solution area on the graph of a linear programming model?
Barrows Textile Mills produces two types of cotton cloth—denim and corduroy. Corduroy is a heavier grade of cotton cloth and, as such, requires 7.5 kilograms of raw cotton per meter, whereas denim requires 5 kilograms of raw cotton per meter. A meter of corduroy requires 3.2 hours of processing
The Pinewood Cabinet and Furniture Company produces sofas, tables, and chairs at its plant in Montreal. The plant uses three main resources to make furniture€”wood, upholstery, and labour. The resource requirements for each piece of furniture and the total resources available weekly are
The Black Jack Distillery produces custom-blended whiskey. A particular blend consists of rye and bourbon whiskey. The company has received an order for a minimum of 400 liters of the custom blend. The customer specified that the order must contain at least 40% rye and not more than 250 liters of
The Star City Café at a U.S. campus student centre serves two coffee blends it brews daily, Morning Blend and Study Break. Each is a blend of three high-quality coffees from Brazil, Tanzania, and Guatemala. The Cafe has 5 lbs. of each of these coffees available each day. Each pound of coffee will
Dr. Beth McKenzie, the head administrator at Victoria Hospital, must determine a schedule for nurses to make sure there are enough nurses on duty throughout the day. During the day, the demand for nurses varies. Beth has broken the day into 12 2-hour periods. The slowest time of the day encompasses
The McCoy Family raises cattle on their farm in Alberta. They also have a large garden and green-houses, in which they grow ingredients for making two types of relish—cabbage and tomato. These they sell in 500-mL jars at local stores and craft fairs in the fall. The profit for a jar of
The Big Max grocery store sells three brands of milk in half-liter cartons—its own brand, a local dairy brand, and a national brand. The profit from its own brand is $0.97 a carton, the profit from the local dairy brand is $0.83 per carton, and the profit from the national brand is $0.69 per
John Davis owns Eastcoasters, a bicycle shop in Fredericton. Most of John’s bicycle sales are customer orders; however, he also stocks bicycles for walk-in customers. He stocks three types of bicycles—road racing, cross-country, and mountain. The cost of a road racing bike is $1200, a
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