Operations Management 1 Project 1 Your project will be about 3 to 5 pages with the following elements: 1. Cover Page in APA format. 2. 1 or 2 pages of solid, cogent answers to the following questions. 3. 1 or 2 pages of graphs, spreadsheets, or charts to back up your answers. Label each graph or spreadsheet. If you chose, you may place the graph, chart, or sheet in the actual write up, but don't put it in the way of your writing. It should be a reference and not in place of your writing. 4. References if any. 5. Do not copy the questions and then answer them. Write professionally and succinctly. For instance, in part A, you should be telling me a story about some screw up in customer service. Don't just copy and paste answers. Make is worth reading. Part A Describe a customer service experience you have recently encountered where the goods or service or both were completely unsatisfactory. Use that experience to answer the following questions. 1. What was the service upset? In other words, how did the staff mess this up? 2. Did the organization run the risk of losing your business? If so, why? 3. After the service upset, did management seek to keep you as a customer? How? What did they do that made you want to stay loyal to them? 4. If they have lost you as a customer, what could they have done to keep you? Compare and contrast the cost of losing you as a customer to the cost of what it would take to keep you. Tell me about how much you spend there vs. how much it will cost the company to replace you. Part B Big Lu sells iPad cases with the LU logo emblazoned on it. Currently, the cases are being outsourced from a supplier in China. However, they are considering manufacturing the cases in house. Big Lu is going to sell the cases for $20 each. Big Lu knows he can sell at least 15,000 cases, but he wonders if that will be enough to cover the fixed costs of the machinery and setup. These costs have been estimated at $300,000. Additionally, Big Lu tells you he can purchase the cases from China for $10 each. He also estimates the variable costs to make them in house is $7 each. 1. Should Big Lu make the cases in house or purchase them from China? 2. How many units would Big Lu have to sell to make his optimal decision change? (Hint: Adjust the production volume until the Cost Difference (In-houseOutsourced) = $0. 3. At the sales volume of 15,000 units, how much profit will the company make if they follow your suggestion? 4. What are some other variables that must be considered when making the decision to make the cases in-house or outsource? Name at least three and why those are important to the decision. Use Excel to produce the numbers and attach the Spreadsheet with the numbers in an appendix labeled Appendix B. Part C Operations Management 2 Project 1 1. What is the triple bottom line (3Ps)? How has the shift to these ideas changed the practices in both manufacturing and service industries? 2. What is the difference between outsourcing and offshoring? When does it make sense to do these? 3. Choose one of the following companies and answer the questions that follow about that company. Starbucks Amazon.com Ford Motor Company Zara a. What are three factors that would go into the decision for your company to outsource production and/or their suppliers? b. How would these decisions add to or detract from the Triple Bottom Line framework described above