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business
operations management

Questions and Answers of Operations Management

What are the key factors that should be considered when designing a hospital layout?
The process of renewing a driver’s license at the traffic department in Egypt involves the following seven activities.These activities are currently performed in order and there are seven workers
Study the distribution of different sections and services across several floors in multistorey department stores. Explain the rationale behind the location of different departments or sections in
How does automatic identification work in a warehousing system?
Given the following task, times, and sequence, develop a balanced line capable of operating with a 10-minute cycle time at Dave Visser’s company.a) Draw the precedence diagram.b) Assign tasks to
Marilyn Hart, operations manager at Hart Electronics, faces assembly-line balancing problems. She has been told that the firm needs to complete 1,400 electronic relays per day. There are 420 minutes
Explain the concept of cross-docking.
Draw a process chart for receiving an order for a coffee, making the coffee, and handing it to the customer in a café.
How can labor specialization reduce the labor cost of operations?
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.
Explain the role of flow diagrams, process charts, activity charts, and operations charts in understanding and analyzing operations.
What are the main purposes of setting labor standards?
Draw a process chart for the activities of a receptionist handling the check-in process at a hotel.
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
Identify the category—“personal”, “fatigue”, or “delay”—in which the following job elements belong:a) A hair-dresser takes the phone to confirm a booking in the middle of a client
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
Encouraging people to separate their household waste into recyclable and non-recyclable bins and collecting these bins has been a big task for many local authorities. In the collection process, the
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
A typical engineer at a mobile phone insurance company can fix 12 mobiles per day (based on the current demand level). If he works for nine hours a day, how much time does he have to fix each
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
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%.a) Find the normal
The cycle time for performing a certain task has been clocked at 10 minutes. The performance rating of Richard Muszynski III was estimated at 110%. Common practice in this department is to allow 5
A time study has revealed an average observed time of 5 minutes, with a standard deviation of 1.25 minutes. These figures are based on a sample of 75 cycles. Is this sample large enough for analyst
The financial analysis of a manufacturing company for the previous year has provided, among others, the following details:Net revenue: €50,000Cost of goods sold: €26,000Value on hand:◆ Raw
An excerpt from Kalamia manufacturing company’s last year’s final annual report revealed the following information:Compute:a) inventory turnover;b) weeks of supply, assuming an annual operation
A company has supplied the following data with respect to its three different types of fertilizers:Calculate (assuming 50 sales weeks annually):a) The inventory turnover and weeks of supply for each
The manager of a traffic and safety company wants to use the ABC classification system to classify its inventory items. The annual demand and the selling price of each item are listed in the table
What is e-procurement?
How does Red Lobster, described in the Global Company Profile, find competitive advantage in its supply chain?
Barbara Flynn’s company has compiled the following data on a small set of products:Perform an ABC analysis on her data. ITEM A B с D E ANNUAL DEMAND 100 75 50 200 150 UNIT COST $300 100 50 100 75
What is the implication of the Pareto principle?
Lynn Fish opened a new beauty-products retail store. There are numerous items in inventory, and Lynn knows that there are costs associated with inventory. However, because her time is limited, she
The South African company AFROS sells safety equipment from their central warehouse in Johannesburg. AFROS applies an annual counting of the inventories at approximately 55,000 articles.The supply
Which part of the cost in the EOQ is a linear function of the order quantity?
The small boatyard White Kayaks built 156 epoxy kayaks last year. Each of these requires 12 kg of epoxy, purchased in 6-kg barrels at $170 each, with a freight cost of $18 per shipment plus $1/kg.
What should be considered if the order quantity is to be increased from the optimal to a discount point?
Suggest how we can set the time between deliveries in a fixed period system.
Atech Service sells professional cleaning machines and scouring agents. They deliver the scouring agents to customers on a fixed weekly schedule.The annual demand is 1,500 bottles, each with a value
Why would it be advantageous to supply a regional warehouse from the central warehouse using a fixed period system?
Al-Arabi Manufacturing Company manufactures different types of knobs for doors in its manufacturing facility in 6th of October, Egypt. The company operates its production facility 250 days per year.
Union Furniture is a famous furniture store in Dubai. The company orders one of its bedroom models from Malaysia. The yearly demand for the bedroom is 200 units. The selling price is AED 5,000 per
The oar maker Collars produces high-quality oars shipped all over the world. The oars are equipped with bronze oarlocks when sold to customers. Those oarlocks are purchased from an external supplier.
If D = 1,000 per year, S = $62.50 per order, and H = $.50 per unit per year, what is the economic order quantity for purchasing manager Soomin Park?
If the economic order quantity = 300, annual demand = 8,000 units, and order costs = $45 per order, what is the holding cost for P. S. Ravi Metalworks?
Victor Pimentel uses 1,500 units per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs Victor $150. He operates 300 days per year and has found
Rick Jerz is attempting to perform an inventory analysis on one of his most popular products. Annual demand for this product is 5,000 units; carrying cost is $50 per unit per year; order costs for
Huehn-Brown Products in St. Petersburg offers the following discount schedule for its 4-by-8-foot sheets of quality plywood.Home Sweet Home Company orders plywood from Huehn- Brown. Home Sweet Home
Al-Tawheed Discount Store sells a certain type of office chair for E£400. The annual holding cost is E£40 per unit per year, annual demand is 900 chairs, and the order cost is E£800 per order. The
Given the following data on a hardware item stocked by Andreas Wieland’s paint store in Copenhagen, should the quantity discount be taken?• D = 2,000 units; S = $10; H = $1; P = $1• Discount
The distributor of Sumitomo Tires in Egypt estimates the annual demand of tires for next year to be normally distributed with a mean of 100,000 tires and a standard deviation of 3,000 tires. The
The table below provides information about the demand forecast and the number of working days for a tools manufacturing factory in Egypt.Construct a graph for the daily demand and the average daily
Demand during lead time for one brand of TV is normally distributed with a mean of 36 TVs and a standard deviation of 15 TVs. What safety stock should be carried for Dennis Yu’s Appliance Outlet to
Beqala.com is an online grocery store that sells large fresh shrimps to customers in the area of Cairo, Egypt. The cost per kilo of shrimp is E£150 and it is sold at E£280 per kilo. The remaining
Why are S&OP teams typically cross-functional?
Explain what the term disaggregation means when applied in a manufacturing environment. What is the output of this process?
Identify the two categories of aggregate planning strategies and explain the difference between them.
A motherboard manufacturer in China has received the following demand estimates for the next 6 months:a) The firm has estimated the carrying costs to be 10 Yuan per unit per month, stockout costs to
List and briefly discuss the four techniques used to control labor as part of aggregate planning in the service industry.
Consider the AON graph of a project shown in Figure 19.17.The activity times are 3, 4, 2, 5, 7, 2, 2, and 3 days for activities A1 through A8, respectively. What is the earliest completion time of
What is the difference between primary needs and secondary needs? a. Primary needs are more important than secondary needs. b. Primary needs consist of multiple secondary needs. c.
The product concept is concerned with: a. The solution approach. b. The consumer needs. c. Both the consumer needs and the solution approach. d. None of these options is correct.
Consider two prototypes of a new race car. One is a two-dimensional sketch; the other one is a physical model that almost looks like the new race car, except it has no engine inside. Which of the two
Which of the following techniques is not a form of decomposing a product for the sake of generating product concepts? a. Attribute-based decomposition b. User interaction–based
A value curve shows what type of information for a product concept? a. The value of the product over time b. The degree to which various needs are fulfilled with the product concept c.
Which of the following statements is correct as far as the definition of a service blueprint is concerned? a. A service blueprint is a special form of a user-interaction decomposition. b. A
A minimum viable product is a. a. Prototype of a new product or service that allows the team to collect the maximum amount of learning with the least amount of effort. b. A product that is
What is the purpose of building a minimum viable product? a. To test the technical feasibility of the product b. To test whether or not the product can be produced economically at
The purchase probability is the percentage of customers on the purchase intent survey who indicated they would want to buy the product. True or false? a. True b. False
To get to the sales forecast, we just multiply the market size by the purchase probability. True or false? a. True b. False
Consider two products, A and B, both of which have the same purchase probability. Product A has a population size of 1000 and a 50 percent awareness probability. Product B has a population size of
Which of the following statements about contextual observation is correct? a. Contextual observation can be combined with interviews. b. Contextual observation takes place in the context of
Latent needs are typically associated with which category in the Kano model? a. Performance needs b. Delighters c. Must-haves d. None of these options is correct.
Which of the following statements best describes the idea of a minimum viable product? a. A prototype of a new product or service that tests the technical feasibility of the product. b. A
The Kano model classifies needs into three categories. Which of the following is not a category in the Kano model? a. Performance needs b. Delighters c. Must-haves d. Important
Which of the following statements correctly captures the idea of a minimum viable product? a. A minimum viable product is a product that is financially viable at minimum scale. b. A minimum
A manager of a product development project reviews the results of the concept validation performed by the team. By showing some concepts to consumers, the team discovered an additional need and now
Which of the following statements is correct as far as a service blueprint is concerned? a. A service blueprint helps in identifying the bottleneck. b. A service blueprint distinguishes
Which of the following activities is not part of the product development process? a. Strategic planning b. Identification of customer needs c. Generation of product concepts d.
A need related to a product triggers the following reaction by consumers. Consumers are happy if the need is fulfilled but not really dissatisfied if the need is not fulfilled. What type of need in
Walter is vice president of product development at a big computer maker. At a strategic planning retreat, he talks with the vice president of purchasing and the vice president of production. The
Dishwasher 2020 is a new product under development at a large appliance company looking to develop the next generation of products in the dishwasher market. The team has done some market research and
BMW launches a new 3-series model every four to six years. Such launches are which type of innovation? a. Horizon 1 innovations b. Horizon 2 innovations c. Horizon 3
Which of the following activities is not part of the product development process? a. Generation of product concepts b. Validation of product concepts c. Sales forecasting d.
Your friend Tony has many ideas. Five times a week, he calls you and explains to you a new device he invented. However, few of these devices address a user need. Are these ideas innovation? a.
Which of the following descriptions best captures the project manager’s responsibilities? a. Define the project, plan the project, control the project. b. List all activities, determine
What is the effect of overlapping activities that are not on the critical path? a. An earlier project completion time b. A later project completion time c. No effect
The key objectives of a project are given by a. Time, scope, and budget. b. Cost, quality, and location. c. Customers, suppliers, and employees. d. Efficiency, effectiveness, and
You have been asked by the CEO of your company to manage a really important project. The CEO suggested five employees to be on your project team. You now think about the right organizational
The key objectives of a project can be summarized in the form of a a. Line. b. Triangle. c. Square. d. Hexagon.
Which of the following activities is not part of defining a project? a. The project triangle b. The project resources c. The work breakdown structure d. The critical path
A project manager is concerned about rework, specifically about having to iterate on two activities that are on the critical path. A consultant tells the project manager not to worry, because the
You manage a project with 10 activities. Activities A1, A3, A5, and A9 form the critical path. Because you have a large budget for the project, you consider crashing activity A2, which has the
Consider two projects that have the same activities and the same dependencies. In the first project, the activity times are expected outcomes. The actual times will vary. In the second project, the
What happens as you increase the number of people working on a project from three to six? a. The project will get done twice as quickly. b. The communication requirements for the project
Which of the following statements is correct with respect to a Gantt chart? a. The x-axis of a Gantt chart shows a time line. b. The y-axis shows the activities of a project. c. The
Which of the following statements best defines the scope of a project? a. What must be accomplished in order for the project to be completed b. What budget is required to complete the
What is the late start schedule for a project? a. It is the latest start and the latest completion times of the project activities so that the overall project is still completed on time. b.
A project consists of three tasks: A, B, and C. Task A is known to take five days for sure. Tasks B and C are each dependent on A. B takes five days. C takes seven days with a probability of 0.5 and
Which of the following statements is correct with respect to slack time? a. The slack time of an activity is the latest completion time of the activity minus the earliest completion
What is the relationship between the earliest start time (EST) of an activity and the earliest completion time (ECT) of the activity? a. EST + Activity time = ECT b. EST × Activity time =

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