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operations management
Questions and Answers of
Operations Management
Zenith Printers specializes in printing wedding cards, business cards, corporate brochures, and marketing leaflets. The company serves a wide range of commercial and noncommercial clients. Due to the
Founded in 1921 by four physicians with a mission to provide better care for the sick, investigate patient problems, and further educate those who serve, Cleveland Clinic is one of the world’s most
The order policy is to produce end item A in lots of 50 units. Using the data shown in Figure 11.24 and the FOQ lot-sizing rule, complete the projected on-hand inventory and MPS quantity rows. Then,
Gömböc shapes are interesting mathematical shapes attracting attention from mathematics enthusiasts. These blocks involve a complex manufacturing and molding process. A manufacturer is evaluating
What improvement can you make in the process shown in Figure 2.17?Data from Figure 2.17: Process: Subject: Beginning: Ending: Step No. 6719GAWN1 2 3 4 5 8 10 11 18922 Changing engine
A new optical reader for scanning documents is being considered by a retail bank. The new system has a fixed cost of €30,000 per year and a variable cost of €2.5 per batch. The cost of the new
Security devices are becoming increasingly high-tech. Most offices and similar buildings have simple security devices such as ‘swipe cards’ that admit only authorized people to the premises.
Towards the end of the 1990s, much of the European retail banking industry was facing unprecedented levels of competition.This was partly the result of excess capacity (many towns had four or more
How would you evaluate the design of this book?
Look back at the worked example on page 131 which described the component structure and process for a new healthcare service.(a) Try to write down a statement which encapsulates the ‘concept’ of
Chatsworth House, the home of the 12th Duke and Duchess of Devonshire, is one of the finest and most palatial houses in the UK, set in over 1000 acres of parkland in the Peak District National Park,
Re-examine the worked example that describes the new service being offered by the Activo Health Club and draw a quality function deployment (house of quality) diagram that links what the health club
One product where a very wide range of product types is valued by customers is domestic paint. Most people like to express their creativity in the choice of paints and other home-decorating products.
A company is developing a new website that will allow customers to track the progress of their orders. The web site developers charge €10,000 for every development week and it is estimated that the
Design becomes particularly important at the interface between products or services and the people who use them. This is especially true for internet-based services. Consider two types of website:(a)
How can the concept of modularization be applied to package holidays sold through an on-line travel agent?
Visit the website of the UK's Design Council (www.design-council.org.uk). There you will find examples of how design has provided innovation in many fields. Look through these examples and find one
Visit the websites of companies that are in the paper manufacturing/pulp production/packaging industries. Assess the extent to which the companies you have investigated are vertically integrated in
A company which assembles garden furniture obtains its components from three suppliers. Supplier A provides all the boxes and packaging material; supplier B provides all metal components; and
'I really can't decide whether it is worth moving from our current location. The lease still has many years to run, so staying where we are is a very real option. The last site that the agents
Visit sites on the internet that offer (legal) downloadable music using MP3 or other compression formats. Consider the music business supply chain, (a) For the recordings of a well-known popular
Draw the component structure and process chart for a visit to the hairdressers.
How can the design of quick-service restaurant (fast-food) products and services be improved from the point of view of environmental sustainability? Visit two or three fast-food outlets and compare
A company is deciding between two locations (Location A and Location B). It has six location criteria, the most important being the suitability of the buildings that are available in each location.
DSF is a small but technically successful company in the man-made fibre industry. The company is heavily dependent on the sales of Britlene, a product it developed itself, which accounted in 1996 for
Revisit the short case on how locations in developing nations are challenging the dominance of more traditional Western locations for high-tech research and manufacturing, most notably Silicon Valley
A rapid-response maintenance company serves its customers who are located on four industrial estates. Estate A has 15 customers and is located at grid reference (5,7). Estate B has 20 customers and
Tesco.com is now the world's largest and by far the most profitable online grocery retailer. In 1996 Tesco.com was alone in developing a 'store-based' supply network strategy which entailed using its
An analytical laboratory has current revenues of £300,000 and its sales forecasts indicate that business is likely to grow by £100,000 per year for the next eight years. The laboratory's costs are
Weldon Hand Tools, one of the most successful of the European hand tool manufacturers, decided to move into the 'woodworking' tools market. Previously its products had been confined to car
A laboratory has six departments (A to F). Trays of samples move between the departments according to the information in Figure 7.27. This also indicates the space required by each department. Devise
A private healthcare clinic has been offered a leasing deal where it could lease a CAT scanner at a fixed charge of €2000 per month and a charge of €6 per patient scanned. The clinic currently
A printer is considering purchasing some new high-tech machines. These machines have a capacity of 6000 units per week, a fixed cost of €2000 per week, and a variable cost of €0.5 per unit. The
Sketch the layout of your local shop, coffee bar or sports hall reception area. Observe the area and draw onto your sketch the movements of people through the area over a sufficient period of time to
Visit a supermarket and observe the people who staff the checkouts.(a) What kind of skills do people who do this job need to have?(b) How many customers per hour are they capable of
Step 1 - Make a sandwich, any type of sandwich, preferably one that you enjoy and document the tasks you have to perform in order to complete the job. Make sure you include all the activities, not
A hotel has two wings, an east wing and a west wing. Each wing has four 'room service maids' working sevenhour shifts to service the rooms each day. The east wing has 40 standard rooms, 12 deluxe
A little-known department of your local government authority has the responsibility for keeping the area's public lavatories clean. It employs ten people who each have a number of public lavatories
An operation assembling PCs receives components from its suppliers and assembles their products according to customer demand. Although there are many different combinations of components, and
You are employed by a public relations company to text messages to selected clients. You are given a list of names and have to text the following message. 'Hi there . . . (insert name here) . . . did
Air traffic controllers have one of the most stressful jobs in the world. They are responsible for the lives of thousands of passengers who fly in and out of the world's airports every day. Over the
Visit a dance club, bar or pub that has live music or any other similar entertainment venue.(a) How would you manage the environment to ensure the wellbeing and safety of staff?(b) How would you
A new machine requires an investment of €500,000 and will generate profits of €100,000 for ten years. Will the investment have a positive net present value assuming that a realistic interest is 6
Step 1 – Make a list of all the jobs you have to do in the next week. Include in this list jobs relating to your work and/or study, jobs relating to your domestic life, in fact all the things you
Revisit ‘Operations in practice’ at the beginning of the chapter which explained how one car dealership planned and controlled its workshop activities. Try to visit a local car servicing
A sandwich manufacturer must order the food materials that make up the sandwiches three days before they are needed by the factory. When these raw materials arrive, they are in stock for, on average,
From your experience of making appointments at your general practitioner’s surgery, or by visiting whoever provides you with primary medical care, reflect on how patients are scheduled to see a
In 2003, Charles and Gillian Giles decided to open up their farm to the paying public, in response to diminishing profits from their milk and cereals activities. They invested all their savings in
A specialist sandwich retailer must order sandwiches at least eight hours before they are delivered. When they arrive in the shop, they are immediately displayed in a temperature-controlled cabinet.
Step 1 - Read the following descriptions of two cinemas.Kinepolis in Brussels is one of the largest cinema complexes in the world, with 28 screens, a total of 8,000 seats and four showings of each
The Dagenham Chow-Mein Pizza Company has a demand forecast for the next 12 months which is shown in Table 11.5.The current workforce of 100 staff can produce 1000 cases of pizzas per month.(a)
A specialist gourmet sandwich chain (similar to the Prêt A Manger organization described in Chapter 1) places orders for the bread and filling materials for its sandwiches the day before they are
Look again at the principles which govern customers’ perceptions of the queuing experience. For the following operations, apply the principles to minimize the perceived negative effects of
Trans-European Plastics (TEP) is one of Europe's largest manufacturers of plastic household items. Its French factory makes a range of over 500 products that are sold to wholesalers and large
Consider how airlines cope with balancing capacity and demand. In particular, consider the role of yield management. Do this by visiting the website of a low-cost airline and for a number of flights
A local government office issues hunting licences. Demand for these licences is relatively slow in the first part of the year but then increases after the middle of the year before slowing down again
Calculate the OEE of the following facilities by investigating their use:(a) A lecture theatre.(b) A cinema.(c) A coffee machine.Discuss whether it is worth trying to increase the OEE of these
A field service organization repairs and maintains printing equipment for a large number of customers. It offers one level of service to all its customers and employs 30 staff. The operation’s
A specialist media company burns DVDs of movie clips to customers’ specifications. The company’s staff work a 35-hour week and do not expect to work any overtime. Although the company staffed the
A professional institute outsources the marking of its examination papers but then employs specialists in its own offices to check the marking according to the marking scheme. Coordinating the flow
An electronics circuit supplier buys micro chips from a large manufacturer. Last year the company supplied 2000 specialist D/35 chips to customers. The cost of placing an order is $50 and the annual
Estimate the annual usage value and average inventory level (or value) and space occupied by 20 representative items of food used within your household or that of your family. Using Pareto analysis,
Supermedicosupplies.com is an internet supplier of medical equipment. One of its most profitable lines is the ‘thunderer’ stethoscope. Demand for this product is 15,000 per year, the cost of
Obtain the last few years’ annual report and accounts (you can usually download these from companies’ websites) for two materials-processing operations (as opposed to customer- or
Supermedicosupplies.com works a 44-week year. If the lead time between placing an order for stethoscopes and receiving them is two weeks, what is the re-order point for the thunderer stethoscopes?
Make an appointment to visit a large petrol (gas) filling station to meet the manager. Discuss and analyze the inventory planning and control system used for fuel and other items in the shop, such as
The Super Pea Canning Company produces canned peas. It uses 10,000 litres of green dye per month. Because of the hazardous nature of this product it needs special transport; therefore the cost of
Garment retailing has changed. No longer is there a standard look that all retailers adhere to for a whole season.Fashion is fast, complex and furious. Different trends overlap and fashion ideas that
Using product information obtained from web searches, compare three inventory management systems (or software packages) which could be purchased by the general manager of a large state-run hospital
The dressings division of Strital produces sterile wound dressings in clean-room conditions. Because of the risk of cross infection the entire process must be cleaned and sterilized between batches
We already have a star rating system for all of our suppliers. This gives three stars to those suppliers who either have a record of success on one of our supply factors or who could achieve the very
Look, why should we waste our time dealing with suppliers who can merely deliver good product, on time and in full? There are any number of suppliers who can do that. What we are interested in is
If you were the owner of a small local retail shop, what criteria would you use to select suppliers for the goods which you wish to stock in your shop? Visit three shops which are local to you and
The example of the bullwhip effect shown in Table 13.4 shows how a simple 5 per cent reduction in demand at the end of supply chain causes fluctuations that increase in severity the further back an
What is your purchasing strategy? How do you approach buying the products and services that you need (or want)? Classify the types of products and services that you buy and record the criteria you
Three managers are attending a seminar on 'Getting More Value From Your Purchasing Function'. One manager is from a large retail bank, one is from a general hospital and the third is from a printing
Visit a C2C auction site (for example eBay) and analyze the function of the site in terms of the way it facilitates transactions. What does such a site have to get right to be successful?
Find examples of how supply chains try to reduce this bullwhip effect.
A three-stage supply chain is subject to monthly demand fluctuations from its end customers as follows: month 1 – 200 units, month 2 – 300 units, month 3 – 200 units, month 4 – 250 units,
‘Most of our work is for large food manufacturers who place orders for our packaging materials well in advance. The only thing that they get upset about is if we miss a delivery and they run short
'I can't believe how much we have changed in a relatively short time. From being an inward-looking manufacturer, we became a customer-focused 'design and make' operation.Now we are an integrated
Read the short case on Prêt A Manger and, (a) identify the processes in a typical Prêt A Manger shop together with their inputs and outputs. (b) Prêt A Manger also supplies business lunches (of
The table below shows a day in the life of the operations director of a luxury hotel in Malta. How much time is she spending on each operations management activity? Time From To 07:00 07:45 Public
Find a copy of a financial newspaper (Financial Times, The Wall Street Journal, Economist, etc.) and identify one company which is described in the paper that day. Using the list of issues identified
Write down five services that you have ‘consumed’ in the last week. Try to make these as varied as possible. Examples could include public transport, a bank, any shop or supermarket, attendance
What do you think the main dangers are for Acme Whistles (see the short case earlier in the chapter) as a small company?
Visit and observe three restaurants, cafés or somewhere that food is served. Compare them in terms of the volume of demand that they have to cope with, the variety of menu items they serve, the
Compare and contrast Acme Whistles and Prêt A Manger in terms of the way they will need to manage their operations.
Quentin Cakes makes about 20,000 cakes per year in two sizes, both based on the same recipe. Sales peak at Christmas time when demand is about 50 per cent higher than in the more quiet summer period.
Three managers from a large 'retail' bank (the type of bank that you use) were discussing the processes that they managed. They were managers of a call centre that dealt with customer enquiries, a
There are many luxurious hotels in the South-East Asia region but few can compare with the Penang Mutiara, a 440-room, top-of-the-market hotel which nestles in the lush greenery of Malaysia's Indian
A translation company offers its services to businesses that need their documents and sales literature translated into many different languages. Currently it has annual sales of €5 million wages of
The same company is considering two further options. The first would involve growing its annual sales volume to €8 million by hiring extra sales staff. This would increase its wage bill to €2.75
At the beginning of the chapter some of the activities of TNT Express were described. In fact, this is only one of three divisions of TPG, the other two being international mail and logistics. Visit
A large automobile company pays its dealer service centres if a part has to be replaced on one of its cars. The company then claims back the cost of doing this from parts suppliers. It has a small
The ‘forensic science’ service of a European country has traditionally been organized to provide separate forensic science laboratories for each police force around the country. In order to save
Visit the websites of two or three large oil companies such as Exon, Shell, Elf, etc. Examine how they describe their policies towards their customers, suppliers, shareholders, employees and society
The health clinic described in the worked example earlier in the chapter has expanded by hiring one extra member of staff and now has six employees. It has also leased some new health-monitoring
Long Ridge Gliding Club is based at an old military airfield on the crest of a ridge about 400 metres above sea level.The facilities are simple but comfortable. A bar and basic catering services are
Consider the automobile plant illustrated in various figures throughout the chapter. For such a plant, think about how each performance objective can affect the others within the operation. In other
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