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business
operations management

Questions and Answers of Operations Management

Explain the differences among inventory control systems. What are the advantages and disadvantages of each system?
Briefly explain the bullwhip effect. Why is it common in batchordering situations and for products with seasonal demand?
What steps can organizations take to minimize the bullwhip effect?
What are some strategies for making inventory systems sustainable?
Identify key issues related to managing inventory in the service sector.
Murali Aromatics Inc. is a fictional manufacturer of aromatic oils and perfumes. Demand for the company’s products has been increasing steadily for the past five years, and capacity of the existing
How has the rise in automation dramatically altered the ways in which an organization develops its flow of processes? Give examples of automation and the subsequent changes that have occurred in a
What do you see as advantages and disadvantages of do-it yourself process flows, such as self-checkout at grocery stores?
What is the difference between flow time and cycle time?
MegaTech is a fictional manufacturer of electronic products. Recent growth in the demand for the company€™s products requires it to invest in new production methods. The company has three
How would you characterize the primary goals of a product process design, and how would you differentiate these goals from those for a service process design, such as a hospital?
How does the variability in task times affect balancing a line?
Fly High Inc. is a fictional manufacturer of snowboards. The company has designed a new ski board and needs to choose a new production method. The process types the company can choose from and their
Explain the following manufacturing methods, and give an example of each one:1. Make-to-stock2. Assemble-to-order3. Make-to-order4. Engineer-to-order
Examine the service process design matrix in Figure 9.3. Identify at least two other businesses that would be classified in each of the four quadrants. What are the implications of these different
Why are rule-of-thumb approaches used to analyze layouts?
Alistair Cook€™s fictional machine shop has four work centers: I, II, III, and IV. The distances in feet between each pair of work centers are as follows.The loads moved between each pair
The point of postponement (POP) is a useful idea for developing manufacturing strategies. Explain why an organization needs to be aware of the decoupling point as it develops its supply chain
What are some constraints that layout analysts have to address in balancing a line?
A Chicago job-shop operates with four departments€”machining, drilling, assembly, and painting. The shop€™s production manager, Karen Grillo, has data on the distances between
Explain the three types of layouts, and give examples of products manufactured with these layouts:1. Process2. Product3. Fixed-position
How would you calculate the percentage of idle time in an assembly line that is balanced?
Trinity Hospital is planning to open a new clinic in Mylapore, Chennai, India. Based on historical data from similar facilities, the hospital€™s design committee collected the following
What are the advantages of cellular manufacturing layouts? What are their disadvantages?
A law firm has six departments and you are asked to prepare a layout for this law firm office. The distance between adjacent departments is 30 feet, and the number of trips between the departments is
List three principles that should affect the design and operations of a warehouse.
Visit a local restaurant, and analyze its layout. What do you see as some limitations or drawbacks with how the facility is laid out? What suggestions might you make for redesigning it?
The fictional Reliance Department Store is opening a new store in City Center Mall. Data from existing stores on customer movements between the departments are given in the following table. Design a
An operations manager wants to balance a line as efficiently as possible. The desired daily output rate is 60 units, and the line operates 9 hours a day. Given the precedence diagram, assign the
Assembling the subassembly of the landing gear of the Airbus A320 aircraft requires 13 tasks. The tasks, their precedence relationships, and task times as given in the following table. In addition,
Excelsior Technologies (not a real company) designs layouts for a variety of companies. Damien Motors, a fictional German automobile company, is planning to open an assembly line plant in Hamburg for
James Stuart & Associates, a fictional reputed law firm, is moving into a new facility. Historical data on employee movements per month among the six departments in the old office facility are
Voyage Enterprises is a fictional manufacturer of handcrafted leather suitcases and travel bags. Assembly of suitcases is a laborintensive process and requires completion of seven task elements shown
The following is a precedence diagram of tasks and their time in minutes to assemble a dresser:1. If 200 dressers are to be assembled in a 40-hour work week, what is the cycle time?2. Balance the
Hackers Golf Club Inc. (not a real company) is contemplating a new finish for the golf clubs it manufactures. Bernd Hacker, the company CEO, has come up with three choices:(a) Refurbish the old
Ergonomics Kitchen Cabinetry has designed a new Lazy Susan wooden cabinet and needs to choose a new production method. The process types the fictional company can choose from and their associated
Discuss why supplier management is important for both manufacturing organizations and service organizations.
A manager of a restaurant must choose between two suppliers for his primary food and cleaning supplies.1. What do you consider would be some of the critical factors on which to base the choice of
1. Take a position on the following statement: €œBoeing dug its own grave by outsourcing so much of the 787 to its supply chain. The firm could not possibly do an effective job managing so
Royal Enfield (Chennai, India) is a manufacturer of five models of motorcycles in the United States. All of the five models use the same engine but the engines will require special tooling during the
What are the goals of supplier management? Discuss how achieving those goals can improve a company’s supply chain performance?
Suppose, in Problem 1 above, the restaurant had a strong incentive to operate in sustainable ways and promote sustainable operations. How might you adjust the supplier scorecard to take into
How can suppliers’ failure to meet sustainability requirements hurt a buying organization? Name some companies that have suffered from this problem.
Look up “fair trade” on the internet and examine the principles that govern the movement. How can “fair trade” be applied to supplier management to create a more ethical supplier management
How would a service company like Marriott Hotels (Marriott International, Inc., Bethesda, MD) use a spend analysis to manage its suppliers?
XYZ Corporation is looking to switch suppliers for its commercial building operations. Its last supplier was notorious for promising on-time delivery to construction sites and was frequently late or
What is supply-base optimization and why is it important in supplier management?
Suppose another division of XYZ Corporation develops state-of the- art computer processing equipment and is considering moving to a low-bid process with its suppliers, which is likely to result in
A U.S. bank is planning to outsource its IT services to a service provider in India. After a thorough spend analysis and market evaluation, the bank has identified three possible providers. The
What are the three approaches for selecting suppliers and how do they relate to the purchase categories?
What are the two basic types of supply contracts, and what is the difference between them?
Briefly discuss the three basic types of purchase orders.
List the benefits of e-procurement.
Why is it necessary to manage, at the strategic level, the performance of your suppliers?
What types of supply risks do companies face when they contract with suppliers from countries like China and India? Why do these risks have to be managed? Discuss your answers by using some company
What are the three different types of supplier relationships discussed in the chapter?
What are the features of a well-designed supplier relationship management program?
What are some of the unique challenges companies face when managing their service providers?
What factors make managing global suppliers more complex?
Discuss the importance of logistics management for effective supply chain management. What factors have contributed to the evolution and growth of logistics management?
You have just taken a job with a diversified manufacturing firm, and as your first assignment, you must make some transportation decisions on behalf of your organization for shipping its various
What is line balancing?
Suppose you worked in a mass production environment for a company producing LED video screens and you were asked to help redesign their operations flow. What layout planning concerns would be a
Why might an organization consider using agile manufacturing? What pressures could the firm be facing? What advantages and disadvantages would it receive from using it?
A national pizza chain guarantees delivery of pizza orders within 20 minutes from the time of accepting an order; otherwise, the customer gets the pizza free of charge. Assume that actual delivery
What conditions should be met in order to conclude that a process is in control using control charts?
An airline company received the following complaints from customers who flew in its flights last year.1. Construct a Pareto chart summarizing these complaints.2. If you are responsible for managing
The Pennsylvania State Police issued tickets for the following infractions during the month of November, 2015. Construct a check sheet and a Pareto chart for these infractions. What are your
What is the difference between a c-chart and a p-chart?
Apple was planning to launch its new iPhone version (iPhone7) on January 31, 2017. Nonetheless, as a result of concerns over defective components in the product and cost overruns (80% over budget),
Why should a mean chart and a range chart be used together to determine if a process is in control?
You are waiting in the Buffalo International Airport to take a JetBlue Flight (JetBlue Airways Corporation, Long Island City, NY) to New York City. Your JetBlue aircraft that was expected to arrive
What is the difference between an attribute and a variable?
You live in Buffalo, New York. As you were getting ready to leave for work on a Monday morning, your car won’t start (effect). Identify the possible causes for your car’s failure using a
1. Think of a car that you would automatically rank of high quality. What are the features the car possesses or the image it conveys that would suggest it was of high quality?2. Contrast your rating
Describe the relationship between product quality and a company’s ethical behavior.
Explain why product quality and sustainability are closely linked.
What can global companies do to improve the quality of their goods and services?
List the approaches that can be used to improve a product or service’s quality during the different stages of its life cycle, including the procurement phase.
What is electronic service quality (e-SQ)? What four gaps can form between a consumer and an electronic-service provider?
Discuss the five gaps in the GAP model of service quality.
What are the dimensions of service quality?
Assume you are a consultant working with a software company that is interested in developing on-line and e-service options for their customers. What advice would you offer for a company on how to
What is the Six Sigma approach to quality management? Briefly explain the DMAIC process.
Think of an outstanding electronic service encounter you have had in the past year and contrast it with a poor example. What characterized the excellent service encounter, and how did it differ from
What are the criteria for the Baldrige Performance Excellence Program?
Construct a RATER assessment of a local restaurant? On which dimensions were they superior, and on which were they poor? Based on your perspective, how would you rate the relative importance of the
Explain how improving the quality of products and services can increase a firm’s productivity and lower its production costs.
Construct a GAP model to analyze patient/customer service quality for a health care facility.
What practices characterize TQM?
What are the advantages and disadvantages of the Six Sigma approach to quality? Would you advise an air traffic controller organization to commit to Six Sigma? Why or why not? What about a
1. Comment on the decision to use brown M&Ms as a safety check for the band’s performances. Does this seem a good way to verify quality to you? Why or why not?2. Suppose you were just promoted
Why is being ISO 9000 certified important to global firms?
What are the advantages and disadvantages of using the PAF model to calculate the costs of quality? What advice would you give to a CEO who is considering using the PAF model for his or her product
1. In your opinion, does this case illustrate significant problems with the Six Sigma philosophy? Why or why not?2. Do you agree with the assessment that a company can either focus on quality or
What are the consequences of poor quality products?
How have the “costs of quality” (prevention, appraisal, internal failure, and external failure costs) played a role in the success of Mercedes-Benz (Stuttgart, Baden-Württemberg, Germany), BMW
1. This case illustrates how complex it is to implement quality standards across a global supply chain. To minimize quality problems, what steps can a supplier and its customer take prior to signing
How have you seen examples of successful companies in your hometown profit by superior emphasis on product or service quality?
The purpose of this exercise is for the students to become aware that a company to deliver a quality product to its customers has to ensure that the quality of its product is maintained throughout

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