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business
operations management

Questions and Answers of Operations Management

For the previous problem, at week 6 you discover that the lead time for components E and I will be 4 weeks in the future.(a) How will it affect the net requirements at week 10?(b) What will be the
A film post-production company with six technical staff has accepted a project that must be completed within ten weeks. There are seven activities involved, as detailed in Table 16.7.(a) Draw a
In the previous example, if the whole project launch operation is to be completed as rapidly as possible, what activities must have been completed by the end of week 16?ExampleThe implementation of a
The Channel Tunnel project was the largest construction project ever undertaken in Europe and the biggest single investment in transport anywhere in the world. The project, which was funded by the
Find two products, one a manufactured food item (for example, a pack of breakfast cereals, packet of biscuits, etc.) and the other a domestic electrical item (for example, electric toaster, coffee
A call centre for a bank answers customers' queries about their loan arrangements. All calls are automatically timed by the call centre's information system and the mean and standard deviation of
'Before the crisis, the quality department was just for looks, we certainly weren't used much for problem solving, the most we did was inspection. Data from the quality department was brought to the
In the above call centre, if the mean call length changes to 3.2 minutes and the standard deviation to 0.9 minutes, how does this affect the Cp and Cpk? Do you think this is an appropriate way for
Many organizations check up on their own level of quality by using ‘mystery shoppers’. This involves an employee of the company acting the role of a customer and recording how they are treated by
A vaccine production company has invested in an automatic tester to monitor the impurity levels in its vaccines. Previously all testing was done by hand on a sample of batches of serum. According to
Step 1 – Decide on some timed event that you can regularly sample, either by yourself or (preferably) as a group. This could be the arrival time of your colleagues at work each morning, the start
A utility has a department which does nothing but change the addresses of customers on the company's information systems when customers move house. The process is deemed to be in control at the
Visit the website of a local airport or airline or train company or bus company etc. that publishes the proportion of late arrivals for a given time period. (For example, some airports regularly
'This is not going to be like last time. Then, we were adopting an improvement programme because we were told to. This time it's our idea and, if it's successful, it will be us who are telling the
A firm of tax advisers is offering a new phone-in service where, for a small fee, customers can get 10 minutes of tax advice over the phone. The firm wants to monitor the length of calls so as not to
The First National Broadminster Bank of Carpintaria (FNBOC) has recently launched a redesigned website for its loan services. Now is the time to check customers' reactions to the new site. So it
Visit a library (for example, a university library) and consider how it could start a performance measurement programme which would enable it to judge the effectiveness with which it organizes its
Sophie was sick of her daily commute. ‘Why,’ she thought, ‘should I have to spend so much time in the morning stuck in traffic listening to some babbling half-wit on the radio? We can work
At 1.24 in the early hours of Saturday morning on 26 April 1986, the worst accident in the history of commercial nuclear power generation occurred. Two explosions in quick succession blew off the
‘We have a test bank where we test batches of 100 of our products continuously for seven days and nights. This week only three failed, the first after 10 hours, the second after 72 hours and the
Conduct a survey among colleagues, friends and acquaintances of how they cope with the possibility that their computers might ‘fail’, either in terms of ceasing to operate effectively or in
A complex baggage handling system at an airport has 50 separate sub systems, each with an average reliability of 0.98. Using the data in Figure 19.3, what will be the reliability of the whole system?
An automatic testing process takes samples of ore from mining companies and subjects them to four sequential tests. The reliability of the four different test machines that perform the tasks is
Survey a range of people who own and/or are responsible for the performance of the following pieces of equipment. What is their approach to maintaining them and how is this influenced by the
Visit the websites of some of the many companies that offer advice and consultancy to companies wishing to review their ‘business continuity’ plans. Based on your investigation of these sites,
For the product testing example in Problem 1, what is the mean time between failures (MTBF) for the products?Data From Problem 1‘We have a test bank where we test batches of 100 of our products
The previous evening's banquet for Plastix International had been a complete disaster and Walter Hollestelle, the hotel General Manager, was still recovering from the series of telephone
In terms of its effectiveness at managing the learning process, how does a university detect failures? What could it do to improve its failure detection processes?
A hospital has a specialized X-ray machine that, because of its delicate mechanisms, has a ‘mean time between failure’ of 95 hours. When it does fail, it takes, on average, eight hours for
Reread the ‘Operations in practice’ piece at the beginning of the chapter on ‘Taxing quality’ which describes the improvement initiative carried out by the Aarhus Region customs and tax
Using the four categories of quality-related costs discussed in this chapter, make a list of the costs that fall within each category for the following operations.(a) A university library.(b) A
Electro-connect is a manufacturer of specialist computer system cables and interface devices. Three years ago it started an improvement initiative that placed a significant emphasis on 'quality right
'I can't say that this was our finest hour! The total bill for the product recall was over $4 million and if you count the cost to our reputation, it was probably even higher. Even before that the
Consider how a service level agreement could be devised for the following:(a) The service between a library and its general customers.(b) The service given by a motor vehicle rescue service to its
What are the differences and similarities between the approach taken by the Aarhus customs and tax unit and the example described in the short case on ‘Improvement at Heineken’?
Using an internet search engine (such as Google.com), look at the consultancy organizations that are selling help and advice on:(a) Total quality management, and(b) Six Sigma.How do the TQM and Six
Visit the website of the European Foundation for Quality Management (www.efqm.org).(a) Look at the companies that have won or been finalists in the European Quality Awards and try to identify the
Compare and contrast the approaches taken by Xchanging described in the short case and that taken by Heineken, also described in the short case.
Ruggo Carpets encourages continuous improvement based around the 'drive for customer focus'. The company's total quality process has graduated from 'total customer satisfaction' to 'total customer
Find an operation and assess its overall performance using a polar diagram. You will have to devise the ‘dimensions’ of the polar diagram so that they are meaningful to the operation in question.
The Printospeed Laser printer company was proud of its reputation for high-quality products and services.Because of this it was especially concerned with the problems that it was having with its
A Swedish hotel and restaurant group has been developing self-managed improvement groups within its hotels. At one hotel reception desk, staff were concerned about the amount of time the desk was
Step 1 - Devise a benchmarking programme that will benefit the course or programme that you are currently taking (apologies to anyone who is reading this for light entertainment rather than because
Think back to the last product or service failure that caused you some degree of inconvenience. Draw a cause-effect diagram that identifies all the main causes of why the failure could have occurred.
Step 1 - As a group, identify a 'high-visibility' operation that you all are familiar with. This could be a type of quickservice restaurant, record store, public transport system, libraries, etc.Step
The following are extracts from the corporate social responsibility sections of four reputable companies' websites.HSBC (bank)For HSBC, … 'CSR' means addressing the expectations of our customers,
Khushi’s Kitchen offers both vegetarian and nonvegetarian lunch for office workers. The peak period for the business is between 12:15 p.m. and 14:15 p.m. Due to limited space, customers form a
The Pet Training Academy offers a 5-day training program for troubled dogs. As seen in Table 11.5, the training process requires 5 days, beginning with the dog’s arrival at 8 a.m. on day 1 and
Consider a hospital that specializes in treating patients with cardiac problems. The surgery team is facing delays due to missing items before an operation. How can the principles of MRP and BOR be
Joeblog imports spectrometers for forensic laboratories and educational institutions. The item’s demand forecasts for the next 6 weeks are 25 units, followed by forecasts of 20 units for weeks 7
Olympic Enterprises plans to assemble a new breed of mountain bikes as per the bill of materials (BOM) in Figure 11.33.a. Which component has more than one parent?b. How many unique components does
Draw the BOM for an object that you use daily. For example, the BOM for your laptop.
A partially completed inventory record for the motor subassembly is shown in Figure 11.39.a. Complete the last three rows of the record by using the L4L rule.b. Complete the last three rows of the
A firm’s cost of goods sold last year was $3,410,000, and the firm operates 52 weeks per year. It carries seven items in inventory: three raw materials, two work-in-process items, and two finished
“Organizations don’t compete but supply chains do.” Explain how taking a supply chain approach can make a firm cost effective and improve performance at the same time.
Crayola, LLC, is a profitable, wholly owned subsidiary of Hallmark Cards of Kansas City, Missouri. The company’s world headquarters are located in Easton, Pennsylvania; departments there include
Busy Bee Limited, an e-commerce retailer specializing in household decorative items, ended the year with annual sales (at cost) of £3 million. During the year, the inventory of decorative items
Raj Cycles Limited is a leading bespoke cycle retailer and it operates throughout the year. The cost of goods sold last year was £835,000. The firm modifies eight items to customize cycles as per
Rain Shower is an international supplier of umbrellas. Currently, the company uses a logistical provider to provide warehouse services and handle packages destined for ground delivery. The contract
At the Pinnacle Enterprise, a UK-based consulting firm, management was discussing the potential of outsourcing the process of handling customer calls and complaints to Relax, an international
A food processing firm makes chocolates by growing its own cocoa. The firm is considering contract farming to outsource the production of cocoa to a dedicated farming company. Currently, the annual
The new Health-Watch facility is targeted to serve seven census tracts in Erie, Pennsylvania, whose latitudes and longitudes are shown in Table 13.1, along with the population in each census tract
The following coordinates are the locations of different warehouse facilities of an e-commerce retailer: (15,15), (40,5), and (40,50). The coordinates are in kilometers.a. Calculate the Euclidean
As the world’s largest automotive company and fourth-largest tire manufacturer, Continental’s global business operations cover a diverse set of enterprises. Perhaps best known for its passenger
The operations manager for Mile-High Lemonade narrowed the search for a new facility location to seven communities. Annual fixed costs (land, property taxes, insurance, equipment, and buildings) and
London, New York, Tokyo, Singapore, and Shanghai are some of the world’s largest cities. Discuss from a logistical perspective the reason behind the success of these cities?
The Arid Company makes canoe paddles to serve distribution centers in Worchester, Rochester, and Dorchester from existing plants in Battle Creek and Cherry Creek. Arid is considering locating a plant
An electronics manufacturer must expand by building a second facility. The search is narrowed to four locations, all of which are acceptable to management in terms of dominant factors. Assessment of
A milk processing factory is investigating which locations would best position its new plant relative to three important retail customers (located in cities A, B, and C). As shown in the table, all
A television manufacturer in Seoul plans to export television sets to India through either Chennai or Visakhapatnam ports. It has distribution centers in Bhopal, Mumbai, and Hyderabad and will ship
Golf Bar wants to open a new indoor golf center for the busy working professionals of London Borough. It, however, has only enough capital to build one facility. Golf Bar wants it to be centered by
Thiru is a coconut oil extraction company based in Chennai, India. Management is considering four locations for a new plant: Trichy, Villupuram, Thiruvannamalai, and Nagapattinam. Annual fixed costs
Green Paper Recycling manufactures paper plates and cups from recycled paper and cardboard. The company has narrowed its potential choices for its new manufacturing facility to four cities in France.
Balaji Limited manufactures and markets spare parts for agricultural machineries, which it stocks in various warehouses throughout the country. Most of the machineries it supports are reaching the
Wang Lei and Li Mei Cai are newlyweds trying to decide among several available rentals. Alternatives were scored on a scale of 1 to 5 (5 = best) against weighted performance criteria, as shown in
Cleveland Clinic, a nonprofit multispecialty medical center based in Cleveland, Ohio, has a vast operational footprint that spans the globe. With an annual operating budget of nearly $11 billion, its
John Wolf, president of Wolf Motors, just returned to his office after visiting the company’s newly acquired automotive dealership. It was the fourth Wolf Motors dealership in a network that served
Eagle Electric Repair is a repair facility for several major electric appliance manufacturers.Eagle wants to find a low-cost supplier for an electric relay switch used in many appliances.The annual
Suppose you are a retailer of fashion apparel meant for young professionals working in London. To keep costs down, you design the apparel in London and get it manufactured in Bangladesh and buy in
Eagle Electric Repair wants to select a supplier based on total annual cost, consistent quality, and delivery speed. The following table shows the weights management assigned to each criterion (total
The inclusion of a disruptive technology in a firm’s supply chain puts pressure on supply chain integration and has implications for how the four core processes are managed. Explain how blockchains
Schneider Logistics Company has built a new warehouse in Columbus, Ohio, to facilitate the consolidation of freight shipments to customers in the region. George Schneider must determine how many
Greenstreets Recycling, Inc., collects used motor oil from several collection sites around the Greater Stanford area. To minimize the use, and thereby the cost, of its labor, vehicle, and energy
Kayco Stamping in Fort Worth, Texas, ships sheet metal components to a switch box assembly plant in Waterford, Virginia. Each component weighs approximately 25 pounds, and 50 components fit on a
Jucio, an orange juice manufacturer in Liverpool, UK, imports fresh oranges from Spain. Jucio imports 6,000 pounds of fresh orange every week and its freight classification is 85. The company
New business and subscription models are emerging in e-commerce such as the one followed by JustFab. The company’s style experts are able to handpick shoes and handbags for each customer on the
Mulan sells liquid detergents to hotels, hospitals, and individual customers through a network of retailers and wholesalers. To reduce environmental impact, the company is considering selling
The owner of a small manufacturing business has patented a new device for washing dishes and cleaning dirty kitchen sinks. Before trying to commercialize the device and add it to his or her existing
Herron Company is screening three new product ideas: A, B, and C. Resource constraints allow only one of them to be commercialized. The performance criteria and ratings, on a scale of 1 (worst) to 10
Adele Weiss manages the campus flower shop. Flowers must be ordered three days in advance from her supplier in Mexico. Although Valentine’s Day is fast approaching, sales are almost entirely
A photographer takes passport pictures at an average rate of 20 pictures per hour. The photographer must wait until the customer smiles, so the time to take a picture is exponentially distributed.
Two nurses at Northwood Hospital’s Cardiac Care Unit are assigned to care for eight patients. Nurses are responsible for administering medication, taking vital signs, and responding to frequent
Peachy Keen, Inc., makes mohair sweaters, blouses with Peter Pan collars, pedal pushers, poodle skirts, and other popular clothing styles of the 1950s. The average demand for mohair sweaters is 100
The Nutmeg Corporation produces three different products, each in a 1-pound can: Almond-Lovers Mix, Walnut-Lovers Mix, and the Thrifty Mix.Three types of nuts are used in Nutmeg’s products:
A problem often of concern to managers in processing industries is blending. The Nutmeg Corporation, from Problem 15, is considering a new product it intends to sell to active and health-concerned
Continuing Problem 2, now assume that Carlton is permitted to employ some uncertified, part-time instructors, provided they represent no more than 15 percent of the total workforce hours (regular,
Revisit Example 10.3, in which the consulting company has five jobs in its backlog. Data from Example 10.3:Create a schedule using the EDD rule, calculating the average days past due and flow time.
A shipyard services ships and makes it seaworthy as per the regulations. Management schedules overtime during periods of high demand to reduce backlog. The following ships need to be scheduled for
The MPS start quantities for product A calls for the assembly department to begin final assembly according to the following schedule: 100 units in week 2; 200 units in week 4; 120 units in week 6;
Currently a company that designs online instructional courses has five customers in its backlog. The day when the order arrived, processing time, and promised due dates are given in the following

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