Objective 1: Analyzing information: data, ideas, or concepts.

1. Why are operations managers faced with ethical and social challenges

2. What are some of the ethical and social challenges faced by operations managers?

Objective 2: Applying procedures, formulas, principles, or themes.

3. Putraja Cold Products produces cast bronze valves for use in offshore oil platforms. Currently, Putraja produces 1600 valves per day. The 20 workers at Putraja work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15-minute break during the morning work session and another 15 minutes at the afternoon work session. Putrajaya is in a competitive industry and needs to increase productivity to stay competitive. They feel that a 20% increase is needed. Putraja's management believes that the 20% increase will not be possible without a change in working conditions, so they change work hours. The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m., during which workers can take one hour off at any time of their choosing. Obviously, the number of paid hours is the same as before, but production increases, perhaps because workers are given a bit more control over their workday. After this change, valve production increased to 1800 units per day.

a. Calculate labor productivity for the initial situation

b. Calculate labor productivity for the hypothetical 20 percent increase

c. What is the productivity after the change in work rules?

d. Write a short paragraph analyzing these results.

Objective 3: Presenting multiple solutions, positions, or perspectives.

4. A city police chief decides to do an annual review of the police department by checking the number of monthly complaints. If the total number of complaints in each of the 12 months were 15, 18, 13, 12, 16, 20, 5, 10, 9, 11, 8, and 3 and the police chief wants a 95% confidence level, are the complaints in control?

5. Karla's candle factory is considering two different manufacturing options. Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle. Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle. If demand for Karla's candles is 25,000, which option should she pick?

6. A manufacturing plant averaged $740 of raw materials, $230 of work-in-process inventory, and $1030 of finished goods inventory during the month. If the cost of goods sold this month amounted to $10,000, what is the inventory turnover for the month?

Objective 4: Drawing well supported conclusions.

7. Ten samples of size four were taken from a process, and their weights measured. The sample averages and sample ranges are in the following table. Construct and plot an x-bar and R-chart using these data. Is the process in control?

Sample	Mean	Range
1	20.01	0.45
2	19.98	0.67
3	20.25	0.30
4	19.90	0.30
5	20.35	0.36
6	19.23	0.49
7	20.01	0.53
8	19.98	0.40
9	20.56	0.95
10	19.97	0.7

8. Logic Corporation is having a problem with an uncooperative branch office. As an operation manager, you have identified the following main factors that affect the problem.

• Site
• Task
• People
• Equipment
• Control

Then, brainstorms a few possible causes for each factor. Draw a fishbone diagram to illustrate the possible causes of the problem.

Objective 5: Synthesizing ideas into a coherent whole.

9. Melissa is an owner of Easy Clean Laundry at Taman Beringin, Changloon Kedah. She plans to invest a new machine to increase some profits. The new machine costs of $65,000 and can dry 100 shirts an hour. The company opens 8-hour per day. She expects with the new machine, it will cost $0.50 to launder and dry each shirt. Each customer is charged $1.50 per shirt.

a. The workload has varied from 200 to 350 shirts a day. How long it would take to break-even on new machine at low and high demand estimate?

b. How long would it take to break-even at the reduce price of $1.20 and she expects to be able to stabilize his customer base at 350 shirts per day. How long it takes to break even at the reduced price of $1.20?

c. Should Melissa cut the price and buy the new machine?

10. The following data are pulled from a recent Walsh Manufacturing annual report.

Assets

• Raw material inventory $120,000
• Work-in-process inventory $50,000
• Finished goods inventory $300,000
• Property, plant, and equipment $500,000
• Other assets $200,000
• Total assets $1,170,000

Condensed Income Statement

• Revenue $2,000,000
• Cost of goods sold $600,000
• Other expenses $1,000,000
• Net income $400,000

Calculate:

(a) Percent invested in inventory,

(b) Inventory turnover, and

(c) Weeks of supply.