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business
operations management 6th

Questions and Answers of Operations Management 6th

Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast:QUARTER FORECAST 1
Ram Roy’s firm has developed the following supply, demand, cost, and inventory data. Allocate production capacity to meet demand at a minimum cost using the transportation method.What is the cost?
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as
The production planning period for mobile boards at Sime Factory, Egypt, is 4 months. Cost data are as follows:Regular-time cost per board E£100 Overtime cost per board E£120 Subcontracting cost
The production planning period for knobs at Al-Arabi Factory, Egypt, is 6 months. Cost data is as follows:Regular-time cost per knob E£50 Overtime cost per knob E£60 Subcontracting cost per knob
José Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a “showpiece” for display in Mexican restaurants. He needs to develop a 5-month aggregate plan.
The manufacturer of outdoor paints at Jebel Ali, Dubai, has collected the following information regarding the capacities (in units) and demand forecast for the next 9 months.MONTH JAN FEB MAR APR MAY
Maple Leaf Foundary, owned by Ahmet Satir, produces cast-iron ingots according to a 3-month capacity plan. The cost of labor averages $100 per regular shift hour and $140 per overtime (O.T.) hour.
The James Lawson Chemical Supply Company manufactures and packages expensive vials of mercury. Given the following demand, supply, cost, and inventory data, allocate production capacity to meet
Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his three CPAs can together bill 640 hours per month.
Refer to the CPA firm in Problem 13.23. In planning for next year, Cohen estimates that billable hours will increase by 10% in each of the 6 months. He therefore proceeds to hire a fifth CPA. The
Evaluate the various configurations of operating and closed plants that will meet weekly demand. Determine which configuration minimizes total costs.
Discuss the implications of closing a plant. lop52 TABLE 13.9 Andrew-Carter, Inc., Variable Costs and Fixed Production Costs per Week FIXED COST PER WEEK VARIABLE COST PLANT (PER UNIT) OPERATING NOT
After researching revenue (yield) management in airlines, describe how the Magic system differs from that of American or other airline carriers. lop52
The Magic used its original pricing systems of several years ago and set the price for a Terrace V, Zone 103 seat at $68 per game.There were 230 such seats not purchased as part of season ticket
What are some concerns the team needs to consider when using dynamic pricing with frequent changes in price? lop52
The outputs from an S&OP process are:a) long-run plans.b) detail schedules.c) aggregate plans.d) revenue management plans.e) short-run plans. lop52
Aggregate planning is concerned with determining the quantity and timing of production in the:a) short term.b) intermediate term.c) long term.d) all of the above. lop52
Describe labor-planning policies 443
Identify the major issues in job design 444
Identify major ergonomic and work environment issues 448
Use the tools of methods analysis 449
Identify four ways of establishing labor standards 453
Compute the normal and standard times in a time study 455
Find the proper sample size for a time study 456
How would you define a good quality of work life? lop25
What are some of the worst jobs you know about? Why are they bad jobs? Why do people want these jobs? lop25
If you were redesigning the jobs described in Question 2, what changes would you make? Are your changes realistic? Would they improve productivity (not just production but productivity)? lop25
Can you think of any jobs that push the man–machine interface to the limits of human capabilities? lop25
How can labor specialization reduce the labor cost of operations? lop25
What are the differences among job enrichment, job enlargement, job rotation, job specialization, and employee empowerment? lop25
Define ergonomics. Discuss the role of ergonomics in job design. lop25
Explain the role of flow diagrams, process charts, activity charts, and operations charts in understanding and analyzing operations. lop25
What are the main purposes of setting labor standards? lop25
What are some of the uses to which labor standards are put? lop25
How do you classify the time for a machine operator who, between every job and sometimes in the middle of jobs, turns off the machine and goes for stock? lop25
The operator drops a part, which you pick up and hand to him. Does this make any difference in a time study? If so, how? lop25
Draw a process chart for receiving an order for a coffee, making the coffee, and handing it to the customer in a café. lop25
To make sandwiches at a Subway, the staff should make use of both hands very quickly and efficiently. Make an operations chart involved in making a sandwich. lop25
Develop a process chart for installing a new memory board in your personal computer. lop25
Using the data in Solved Problem 10.1, prepare an activity chart like the one in the Solved Problem, but a second Gas Man also delivers 11 gallons. lop25
10.10 Draw an activity chart for washing the dishes in a double-sided sink. Two people participate, one washing, the other rinsing and drying. The rinser dries a batch of dishes from the drip rack as
If Charlene Brewster has times of 8.4, 8.6, 8.3, 8.5, 8.7, and 8.5 and a performance rating of 110%, what is the normal time for this operation? Is she faster or slower than normal? lop25
Refer to Problem 10.13.a) If the allowance factor is 15%, what is the standard time for this operation?b) If the allowance factor is 18% and the performance rating is now 90%, what is the standard
Claudine Soosay recorded the following times assembling a watch. Determine (a) the average time, (b) the normal time, and (c) the standard time taken by her, using a performance rating of 95% and a
A Northeast Airlines gate agent, Chip Gilliken, gives out seat assignments to ticketed passengers. He takes an average of 50 seconds per passenger and is rated 110% in performance.How long should a
Jell Lee Beans is famous for its boxed candies, which are sold primarily to businesses. One operator had the following observed times for gift wrapping in minutes: 2.2, 2.6, 2.3, 2.5, 2.4.The
After training, Mary Fernandez, a computer technician, had an average observed time for memory-chip tests of 12 seconds. Mary’s performance rating is 100%. The firm has a personal fatigue and delay
Susan Cottenden clocked the observed time for welding a part onto truck doors at 5.3 minutes. The performance rating of the worker timed was estimated at 105%. Find the normal time for this
A pizza shop in Dubai wants to estimate the standard time for preparing its famous margarita pizza. The manager has performed a time study of the process and the following results have been
The results of a time study to perform a quality control test are shown in the following table. On the basis of these observations, determine the normal and standard time for the test, assuming a 23%
Peter Rourke, a loan processor at Wentworth Bank, has been timed performing four work elements, with the results shown in the following table. The allowances for tasks such as this are personal, 7%;
A time study of a factory worker has revealed an average observed time of 3.20 minutes, with a standard deviation of 1.28 minutes. These figures were based on a sample of 45 observations. Is this
Based on a careful work study in the Hofstetter Corp., the results shown in the following table have been observed:ELEMENT OBSERVATIONS(MINUTES) PERFORMANCE 1 2 3 4 5 RATING (%)Prepare daily reports
The Dubuque Cement Company packs 80-pound bags of concrete mix. Time-study data for the filling activity are shown in the following table. Because of the high physical demands of the job, the
The process of replacing an old tire for customers at Tire Tech.company involves five work elements. The table below shows the results of a time study of the process performed by the manager on seven
Bank manager Art Hill wants to determine the percentage of time that tellers are working and idle. He decides to use work sampling, and his initial estimate is that the tellers are idle 15% of the
Supervisor Kenneth Peterson wants to determine the percentage of time a machine in his area is idle. He decides to use work sampling, and his initial estimate is that the machine is idle 20%of the
A random work sample of operators taken over a 160-hour work month at Tele-Marketing, Inc., has produced the following results. What is the percentage of time spent working?On phone with customer 858
Supervisor Tom Choi at Tempe Equipment Company is concerned that material is not arriving as promptly as needed at work cells. A new kanban system has been installed, but there seems to be some delay
An assembly-line worker at Joseph Milner’s Fabrication Shop inserts Part A into Part B. A time study was conducted and produced the following results in seconds: 8.4, 8.6, 8.3, 8.5, 8.7, 8.5.What
The data in the following table represent time-study observations for an assembly process at Nagesh Murthy’s Toy Factory. On the basis of these observations, find the normal time for each element
Arunachalam Narayanan has been clocked performing three work elements in the office, with the results shown in the following table. The allowance for tasks such as this is 15%.OBSERVATIONS (SECONDS)
Is one additional employee sufficient to perform the new job element and prepare the 400 sandwiches during the morning shift?The workers get one 50-minute paid break during the shift, which is not
How much labor cost does new job element add to the total cost of one croissant sandwich? lop25
Summarize Alaska Airlines’ human resources focus in your own words. lop25
Why is employee empowerment useful to companies such as Alaska Airlines? lop25
What tools discussed in the chapter might be employed to enhance the company’s training and performance efforts? Why? lop25
What has Hard Rock done to lower employee turnover to half the industry average? lop25
How does Hard Rock’s human resource department support the company’s overall strategy? lop25
How would Hard Rock’s value system work for automobile assembly line workers? (Hint: Consider Hackman and Oldham’s core job characteristics.) lop25
How might you adjust a traditional assembly line to address more “core job characteristics”? lop25
The work environment includes these factors:a) Lighting, noise, temperature, and air qualityb) Illumination, carpeting, and high ceilingsc) Enough space for meetings and videoconferencingd) Noise,
Methods analysis focuses on:a) the design of the machines used to perform a task.b) how a task is accomplished.c) the raw materials that are consumed in performing a task.d) reducing the number of
The least preferred method of establishing labor standards is:a) time studies.b) work sampling.c) historical experience.d) predetermined time standards. lop25
The allowance factor in a time study:a) adjusts normal time for errors and rework.b) adjusts standard time for lunch breaks.c) adjusts normal time for personal needs, unavoidable delays, and
To set the required sample size in a time study, you must know:a) the number of employees.b) the number of parts produced per day.c) the desired accuracy and confidence levels.d) management’s
Which of the following is least likely to be part of an operational risk framework?a. Loss data collectionb. Risk and control self-assessmentc. Counterparty credit assessmentd. Scenario analysis
Which of the following is the best description of a robust operational risk framework?a. It collects all operational risk losses that occur within the firm.b. It provides effective tools to identify,
Use a decision tree to determine the best number of suppliers to manage disaster risk 504
Explain and measure the bullwhip effect 506
Describe the factor-weighting approach to supplier evaluation 508
Evaluate cost-of-shipping alternatives 509
Allocate items to storage locations in a warehouse 510
What is the difference between “unique-event” risk and“super-event” risk? lop6
If the probability of a “super-event” increases, does the“unique-event” risk increase or decrease in importance?Why? lop6
If the probability of a “super-event” decreases, what happens to the likelihood of needing multiple suppliers? lop6
Describe some ramifications of the bullwhip effect. lop6
Describe how the bullwhip measure can be used to analyze supply chains. lop6
Describe some potential pitfalls in relying solely on the results of a factor-weighting analysis for supplier selection. lop6
Describe some disadvantages of using a slow shipping method. lop6
Besides warehouse layout decisions, what are some other applications where ranking items according to “bang/buck”might make sense? lop6
How would you go about attempting to come up with the probability of a “super-event” or the probability of a “uniqueevent?” What factors would you consider? lop6
Following the incident of a furnace fire in the semiconductor plant in Albuquerque, New Mexico, Wellington Company decided to change its single-sourcing strategy of major components to
Referring to Problem S11.2, Wellington Company re-estimated the probability of a “super-event” to 0.2% due to some heavy safety investment carried out in the Albuquerque plant. In addition, they
Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a “unique-event” risk of 5%, and the probability of a “superevent” that
Kryoneri Perfume Company is considering two alternatives for the supply of vetiver oil (an essential oil used in high-end perfumes). Alternative 1 is to use two suppliers located in Haiti, where half
Consider the supply chain illustrated here:Last year, the retailer’s weekly variance of demand was 200 units.The variance of orders was 500, 600, 750, and 1,350 units for the retailer, wholesaler,
Over the past 5 weeks, demand for wine at Winston’s Winery has averaged 1,890 bottles, and the variance of demand has been 793,000 bottles. Winston has ordered an average of 1,900 bottles per week
A manufacturer produces a single product that is sold abroad to an industrial company through the following channel.VARIANCE OF DEMAND Manufacturer Agent Distributor Industrial company VARIANCE OF

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