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business
hotel operations management

Questions and Answers of Hotel Operations Management

16 A fast-food trainee takes an hour to prepare his first 20 sandwiches, 45 minutes for the second 20, and 38 minutes for the third 20. What will his production rate be after 24 hours of experience?
15 A new bank clerk needed an hour to encode his first 500 checks, 51 minutes for the second 500, and 46 minutes for the third 500. After how many batches of 500 checks will he be able to work at the
13 FES Auto has recently hired Meg the mechanic to specialize in front-end alignments. Although she is a trained auto mechanic, she has not used FES's brand of equipment before taking this job. The
12 Westem Turbine, Inc., has just completed the production of the 10th unit of a new high- efficiency turbine/generator. Its analysis showed that a learning rate of 85 percent existed over the
11 A potentially large customer offered to subcontract assembly work that is profitable only if you can perform the operations at an average time of less than 20 hours each. The contract is for 1,000
10 United Assembly Products (UAP) has a personnel screening process for job applicants to test their ability to perform at the department's long-term average rate. UAP has asked you to mod- ify the
9 United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 4,000 hours to complete and cost $30,000 in mate- rials
8 Honda Motor Company has discovered a problem in the exhaust system of one of its automo- bile lines and has voluntarily agreed to make the necessary modifications to conform with gov- emment safety
7 Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bid- ding on a follow-up government contract. In gathering cost data from the first three units, which Nebula
4 Lambda Computer Products competed for and won a contract to produce two prototype units of a new type of computer that is based on laser optics rather than on electronic binary bits. The first unit
3 Johnson Industries received a contract to develop and produce four high-intensity long-distance receiver/transmitters for cellular telephones. The first took 2,000 labor hours and $39,000 worth of
2 You have just received 10 units of a special subassembly from an electronics manufacturer at a price of $250 per unit. A new order has also just come in for your company's product that uses these
1 A time standard was set as 0.20 hour per unit based on the 50th unit produced. If the task has a 90 percent learning curve, what would be the expected time of the 100th, 200th, and 400th units?
4 What difference does it make if a customer wants a 10,000-unit order produced and delivered all at one time or in 2,500-unit batches?
3 As a manager, which leaming percentage would you prefer (other things being equal), 110 per- cent or 60 percent? Explain.
2 How might the following business specialists use leaming curves: accountants, marketers, financial analysts, personnel managers, and computer programmers?
1 If you kept any of your old exam grades from last semester, get them out and write down the grades. Use Exhibits TN4.5 and TN4.6, use log-log graph paper, or use a spreadsheet to find whether the
A job applicant is being tested for an assembly line position. Management feels that steady-state times have been approximately reached after 1,000 performances. Regular assembly line workers are
SUB has produced the first unit of a new line of minisubs at a cost of $500,000-$200,000 for materials and $300,000 for labor. It has agreed to accept a 10 percent profit, based on cost, and it is
Captain Nemo, owner of the Suboptimum Underwater Boat Company (SUB), is puzzled. He has a con- tract for 11 boats and has completed 4 of them. He has observed that his production manager, young
4 What would be important criteria for selecting a site for an IKEA store?The Swedish retailer dominates markets in 32 coun- tries, and now it's poised to conquer North America. Its battle plan: Keep
3 What are additional features of the IKEA concept (beyond their design process) that contribute to creating exceptional value for the customer? The Swedish retailer dominates markets in 32 coun-
2 Describe IKEA's process for developing a new product. The Swedish retailer dominates markets in 32 coun- tries, and now it's poised to conquer North America. Its battle plan: Keep making their
1 What are IKEA's competitive priorities?The Swedish retailer dominates markets in 32 coun- tries, and now it's poised to conquer North America. Its battle plan: Keep making their offerings less
4 The following is a partial house of quality for a golf country club. Provide an importance weight- ing from your perspective (or that of a golfing friend) in the unshaded areas. If you can, using
3 Pick a product and list issues that need to be considered in its design and manufacture. The prod uct can be something like a stereo, telephone, desk, or kitchen appliance. Consider the functional
5 How does the QFD approach help? What are some limitations of the QFD approach?
4 What factors must be traded off by product development before introducing a new product?
3 Discuss design-based incrementalism, which is frequent product redesign throughout the product's life. What are the pros and cons of this idea?
2 Discuss the product design philosophy behind industrial design and design for manufacture and assembly. Which one do you think is more important in a customer-focused product development?
1 Describe the generic product development process described in the chapter. How does the process change for "technology-push" products?
4 What plan of action would you recommend to Ann Reardon?Ann Reardon made her way across the crowded tradeshow floor, deep in thought and oblivious to the noisy activity all around her. As CEO of the
3 Should EDC establish a manufacturing division in Asia? Ann Reardon made her way across the crowded tradeshow floor, deep in thought and oblivious to the noisy activity all around her. As CEO of the
2 What are EDC's strengths in manufacturing? Ann Reardon made her way across the crowded tradeshow floor, deep in thought and oblivious to the noisy activity all around her. As CEO of the Eldora
1 What is the competitive environment facing EDC? Ann Reardon made her way across the crowded tradeshow floor, deep in thought and oblivious to the noisy activity all around her. As CEO of the Eldora
3 What would you recommend that Applichem management do? Why? Applichem management is faced with the difficult problem of allocating to its customers the capacity of manufactur- ing plants that are
2 Determine the optimal use of Applichem's plant capacity using the Solver in Excel. Applichem management is faced with the difficult problem of allocating to its customers the capacity of
1 Evaluate the cost associated with the way Applichem's plant capacity is currently being used. Applichem management is faced with the difficult problem of allocating to its customers the capacity of
1 Refer to the information given in the solved problem. Suppose management decides to shift 2,000 units of production from Plant B to Plant A. Does this change the proposed location of Plant D, the
5 If you could locate your new software development company anywhere in the world, which place would you choose, and why?
4 What are the pros and cons of relocating a small or midsized manufacturing firm (that makes mature products) from the United States to Mexico in the post-NAFTA environment?
3 How do facility location decisions differ for service facilities and manufacturing plants?
2 List five major reasons why a new electronic components manufacturing firm should move into your city or town.
1 What motivations typically cause firms to initiate a facilities location or relocation project?
Cool Air, a manufacturer of automotive air conditioners, currently produces its XB-300 line at three different locations: Plant A, Plant B, and Plant C. Recently management decided to build all com-
Selecting good sites is crucial to a hotel chain's success. Of the four major marketing considerations (price, product, promotion, and location), location and product have been shown to be most
The HiOctane Refining Company needs to locate an intermediate holding facility between its refining plant in Long Beach and its major distributors. Exhibit TN11.4 shows the coordinate map. The amount
4 Although financial data are sketchy, an estimate from a con- struction company indicates that adding bed capacity would cost about $100,000 per bed. In addition, the rate charged for the hemia
3 Now look at the effect of increasing the number of beds by 50 percent. How many operations could the hospital perform per day before running out of bed capacity? (Assume opera- tions are performed
2 Develop a similar table to show the effects of adding opera- tions on Saturday. (Assume that 30 operations would still be performed each day.) How would this affect the utilization of the bed
1 How well is the hospital currently utilizing its beds? Exhibit 11.7 is a room-occupancy table for the existing system. Each row in the table follows the patients that checked in on a given day. The
6 A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning, What
5 Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to their product line. The company is currently considering two options. The first
4 Suppose that operators have enough training to operate both the bronze machines and the injec- tion molding machine for the plastic sprinklers. Currently AlwaysRain has 10 such employees. In
3 In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine. Will this be enough to ensure that enough capacity is available?
8 At first glance, the concepts of the focused factory and capacity flexibility may seem to contra- dict each other. Do they really?
7 What are some reasons for a plant to maintain a capacity cushion? How about a negative capacity cushion?
6 What is capacity balance? Why is it hard to achieve? What methods are used to deal with capacity imbalances?
5 Management may choose to build up capacity in anticipation of demand or in response to devel- oping demand. Cite the advantages and disadvantages of both approaches.
4 What are some major capacity considerations in a hospital? How do they differ from those of a factory?
3 What are some capacity balance problems faced by the following organizations or facilities?a. An airline terminal.b. A university computing center.c. A clothing manufacturer.
2 List some practical limits to economies of scale; that is, when should a plant stop growing?
1 What capacity problems are encountered when a new drug is introduced to the market?
E-Education is a new start-up that develops and markets MBA courses offered over the Internet. The company is currently located in Chicago and employs 150 people. Due to strong growth the company
The owner of Hackers Computer Store is considering what to do with his business over the next five years. Sales growth over the past couple of years has been good, but sales could grow substantially
The Stewart Company produces two flavors of salad dressings: Paul's and Newman's. Each is available in bottles and single-serving plastic bags, Management would like to determine equipment and labor
3 Discuss process enablers' role developing the new design. For the three million members who count on its ser- vices, the Califomia State Automobile Association (CSAA) often seems like a trusted
2 What tools from the operations consulting tool kit were applied here? Which other ones would be of value here? Explain. For the three million members who count on its ser- vices, the Califomia
1 Describe the customer service process at CSAA and discuss the different phases of the reengineering effort. For the three million members who count on its ser- vices, the Califomia State Automobile
6 Advanced analysis:a. Use the results from filling out the leanness questionnaire and your team's observations to develop a consensus score for each item in the RPA rating sheet. (There are many
5 Rapid plant assessment leanness exercise: Form a team of four to five people and take a 30-minute tour of a plant or service business. At the conclusion of the tour, rate the leanness of the
4 An equipment manufacturer has the following steps in its order entry process:a. Take the order and fax it to order entry.b. Enter the order into the system (10 percent unclear or incorrect).c.
3 Sketch a typical materials procurement process that exists in functional organizations. Using reengineering principles, challenge the status quo and redesign this process.
2 Work with two other students to develop a two-page prospectus describing the particular features of an OM consulting practice you would start after graduation. (Hint: Identify a target market and
1 You have been asked to bid on a consulting job to increase the profitability of a golf course com- pany. It owns three courses in Cleveland, Ohio. Prepare a proposal to find out why other com-
6 In discussing characteristics of efficient plants, Goodson, developer of rapid plant assessments (see the Breakthrough box), suggests that numerous forklifts are a sign of poor space utilization.
5 Identify the typical processes in manufacturing firms. Discuss how the new product development process interacts with the traditional functions in the firm.
4 Have you driven any car lately? Try not to think of the insurance claim settlement process while you drive! How would you reengineer your insurance company's claim process?
3 Think about the registration process at your university. Develop a flowchart to understand it. How would you radically redesign this process?
2 What does it take to be a good consultant? Is this the career for you?
1 Check the Web sites of the consulting companies listed in the chapter. Which ones impressed you most as a potential client and as a potential employee? Boston Consulting Group (www.bcg.com)
The customers of a mortgage bank expect to have their mortgage applications processed within 10 days of filing. This would be called a critical customer requirement, or CCR, in Six-Sigma terms.
4 How would you suggest modifying the process to accommo- date 120 applications per hour?Henry Coupe, manager of a metropolitan branch office of the state department of motor vehicles, attempted to
1 What is the maximum number of applications per hour that can be handled by the present configuration of the process?Henry Coupe, manager of a metropolitan branch office of the state department of
The matrices in Exhibits TN6.17 and TN6.18 show the importance of proximity for the kitchen equipment and dining area features. Use systematic layout planning (with numerical reference weightings) to
12 A firm uses a serial assembly system and needs answers to the following:a. A desired output of 900 units per shift (7.5 hours) is desired for a new processing system. The system requires product
2 An assembly line makes two models of trucks: a Buster and a Duster. Busters take 12 minutes each and Dusters take 8 minutes each. The daily output requirement is 24 of each per day. Develop a
10 How would a flowchart help in planning the servicescape layout? What sorts of features would act as focal points or otherwise draw customers along certain paths through the service? In a
9 Consider a department store. Which departments probably should not be located near each other? Would any departments benefit from close proximity?
8 In what respects is facility layout a marketing problem in services? Give an example of a service system layout designed to maximize the amount of time the customer is in the system.
7 Why might it be difficult to develop a GT layout?
6 What is the essential requirement for mixed-model lines to be practical?
5 What information of particular importance do route sheets and process charts (discussed in Technical Note 5) provide to the layout planner?
4 How do you determine the idle time percentage from a given assembly-line balance?
3 What is the objective of assembly-line balancing? How would you deal with the situation where one worker, although trying hard, is 20 percent slower than the other 10 people on a line?
2 What is the key difference between SLP and CRAFT?
1 What kind of layout is used in a physical fitness center?
To illustrate how this is done, suppose our toy company has a fabrication line to bore holes in its Model J wagon frame and its Model K wagon frame. The time required to bore the holes is different
The Model J Wagon is to be assembled on a conveyor belt. Five hundred wagons are required per day. Production time per day is 420 minutes, and the assembly steps and times for the wagon are given in
This example shows how CRAFT is applied to the toy factory problem defined in Exhib- its TN6.4-TN6.7.

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