$1.$ SobeysMGSC$5128-$Operations Management $($Winter $2024)$ Assignment $1$Shannon School of BusinessSobeys Inc. is the second largest grocery store chain in Canada $($the largest is Loblaw$).$ Sobeys distinguishes itself from Loblaw by offering better quality fresh food and customer service. Sobeys grew out of Nova Scotia mostly through acquisition of other grocery chains. The integration of the latest acquisition, Safeway Canada $($over $200$ stores in Western Canada$),$ has been challenging. Sobeys now owns $908$ grocery stores and franchises $977$ stores throughout Canada. Sobeys has revenues of over $$24$ billion and employs over $125,000$ people. Sobeys is also a wholesaler to over $8,000$ retail accounts.Sobeys has five different store sizes and formats, and uses them in each location based on market size and customer demographics. There is the large full$-$service format $($such as Sobeys, Sobeys extra, IGA extra, Safeway and Thrifty Foods$)$; urban fresh format $($such as Sobeys Urban Fresh and IGA in Quebec$)$; small community format $($such as Foodland, March$$ Bonichoix, and Les March$$s Tradition$)$; discount format $($such as FreshCo and Price Chopper$)$; and convenience format $($such as Needs Convenience and IGA express$).$ Approximately $350$ large full$-$service stores have in$-$store pharmacies. Sobeys also has a chain of $78$ drugstores $($Lawtons Drugs$)$ in Atlantic Canada, over $300$ retail gas stations, and $80$ liquor stores.In addition to national brands, Sobeys has its own private label brands: Compliments $($over $5,000$ products$)$ and S$!$gnal. Sobeys also has its own manufacturerBig $8$ Beveragesfor its private label soft drinks and water in Atlantic Canada.Sobeys is a wholly owned subsidiary of Empire Company Limited, which also has a $41\mathrm{.}5$ percent equity interest in Crombie REIT, a real estate development and management company. Crombie owns the buildings and shopping plazas that Sobeys stores occupy, as well as other properties. Sobeys has implemented SAP $($an enterprise resource planning software$)$ nationwide and across its brand stores. The stores are organized by region: Atlantic Canada$/$Ontario$,$ Quebec, and Western Canada$\mathrm{.}1$Most products are bought centrally and distributed to the stores through $34$ regional distribution centres $($DCs$)$ located throughout the country. The fully automated Vaughan and Terrebonne DCs are state of the art. Sobeys is retrofitting the Rocky View Alberta DC that it bought from Target Canada.Operations management activities and decisions are split between corporate office and store operations.The corporate office initiates and manages various programs to increase the number of customers, including constant evaluation of store performance, closing low$-$profit stores, opening new stores, and modernizing existing stores. It also manages the computer technology, performs data analytics to improve category management, initiates training programs, and performs accounting and finance activities. Directors of operations $($i$.$e$.,$ district managers$)$ interact with the store managers in their district to implement improvement programs such as sharing best practices.A store manager manages all facets of the store and ensures operational excellence in retail merchandising, inventory management, and customer relations. He$/$she ensures execution of the retail programs by communicating the operational requirements and$/$or changes and store vision to the employees. This includes occupational health and safety, food safety, and other regulatory requirements and procedures. The store manager also oversees recruitment, orientation, training, and performance management.Sobeys cares about its employees and their training. It has a careers website, provides on$-$the$-$job and web$-$based training, and even provides scholarships to exemplary employees who are still in high school.Sobeys also cares about sustainability. It sets targets for greenhouse gas reduction and measures its progress. It has reduced its use of electricity and amount of material sent to landfill.QuestionsI. What are the inputs, process, output, and feedback$/$control for a grocery store such as Sobeys?II$.$ What are the operations decisions for running a grocery store such as Sobeys?$22.$ Southwest Tube $($now called Webco Industries$)$ is a fabricator of specialty tubes used in boilers and other equipment. Southwest buys the tubes in long segments and cuts, bends, cold draws, and welds the pieces to make what is needed for the products. A few years ago, Southwest Tube was facing tough competition. The prices were falling while the costs were rising. To improve productivity, consultants were brought in$.$ They pointed out problems with labour turnover, absenteeism$,$ weak supervision, staffing mismatch, lack of performance goals, and a dislike for the weekly rotating schedule as causes of the problem. One of the solutions tried, in addition to other improvements, was changing the work schedule to four $12-$hour days followed by three days off. The productivity seemed to improve gradually. To ascertain this, the following data for two physically demanding work centres were collected starting the year before the change in work schedule. LO$3$Question:I. Has workers productivity in the two work centres increased? Explain.II$.$ Find the growth rate for each department. Cold Draw Department Labour Output Year $(1,000$ hr$)(1,000$ ft$)022818,269123419,576218317,633315018,870$ Weld Mill Department Labour Output Year $(1,000$ hr$)(1,000$ ft$)013222,434115734,777210226,71537725,22733.$ A production line has three machines A$,$ B$,$ and C$,$ with reliabilities of $0\mathrm{.}99,0\mathrm{.}96,$ and $0\mathrm{.}93,$ respectively. The machines are arranged so that if one breaks down, the others must shut down. Engineers are weighing two alternative designs for increasing the lines reliability. Plan $1$ involves adding an identical backup line $($i$.$e$.,$ a series backup$),$ and Plan $2$ involves providing a backup for each machine $($i$.$e$.,$ a parallel backup$).$ In either case, three additional machines $($A$,$ B$,$ and C$)$ would be used with reliabilities equal to the original three.a$.$ Which plan will provide higher reliability?b$.$ Explain why the two reliabilities are not the same.c$.$ What other factors might enter into the decision of which plan to adopt?d$.$ Assume that a single switch is used in Plan $1$ to transfer production to the backup line if thefirst line fails, and this switch is $98$ percent reliable, while reliabilities of the machines remain the same. Recalculate the reliability of Plan $1.$ Compare this reliability with the reliability of Plan $1$ calculated in solving the original problem. How much did reliability of Plan $1$ decrease as a result of a $98$ percent reliable switch?e$.$ Assume that three switches are used in Plan $2$ to transfer production to the backup machines if the original machines fail, and these switches are all $98$ percent reliable, while reliabilities of the machines remain the same. Recalculate the reliability of Plan $2.$ Compare the reliability of this plan with the reliability of Plan $2$ calculated in solving the original problem. How much did reliability of Plan $2$ decrease?$4.$ Prepare a house of quality for chocolate chip cookies made in a bakery. List what you believe are the three most important customer requirements and the three most relevant technical requirements. Next, indicate by a checkmark which customer requirements and which technical requirements are related. Finally, determine the target values. There is no need to fill in the other parts of the house.