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business
operations management

Questions and Answers of Operations Management

1. Pfizer’s experience demonstrates that correcting quality problems is often complex, time consuming, and expensive. Why, in your opinion, does it make sense for companies to invest time and money
List the eight dimensions of product quality. Pick the product offerings of any two competing firms. What are the similarities and differences between the products when it comes to each dimension?
Compare and contrast two hotel chains on the five service value dimensions: reliability, responsiveness, assurance, empathy, and tangibles. Give examples of how a premium hotel chain, such as the
What are some of the legal and ethical issues that companies need to consider while developing new products?
Describe the service system design matrix, and explain how it helps companies develop better services for their customers.
Outline the questions a service design should address.
Discuss the four key areas of supply chain collaboration that affect the success of the new product development process.
You are a Marine procurement officer interviewing potential vendors for a new combat-zone communications device. How would you value features such as modular design, design for reliability, and
Discuss some supply chain issues that affect the development of new products.
Identify a food product on the McDonald’s menu that you would expect will fail within one year. Why do you believe this is the case?
Discuss the challenges of designing new products globally. What factors are critical to the success of such a strategy?
How will mobile and smartphone innovations continue to push common products further down the product life cycle toward obsolescence? How are the Venmo (subsidiary of PayPal Holdings, Inc., San Jose,
What are the fundamental aspects of globalized new product development?
Using your research from problem 8, develop three lessons that all companies should pay attention to before attempting to launch products in other markets.Data from problem 8Conduct an Internet
Discuss the concept of time-based competition.
Janet Grillo is unhappy with her current high-speed Internet service. She is considering switching to another Internet service provider. Janet has narrowed her choices to three fictitious Internet
Conduct an Internet research for some examples of products that failed because of cultural differences. What are some common themes that you see emerging among these failures?
Bobbie Peters, the office manager at the business school office at a university, is debating whether a new laser printer should be purchased for faculty use. The school currently has one laser
Identify five products that you recognize solely by their logos. What was it about these products that makes them instantly recognizable to you?
The hydraulic systems in an aircraft have three major modules. Two modules have a reliability of 0.98, and the third has a reliability of 0.99.1. What is the reliability of the hydraulic system?2.
Conduct a simple value engineering exercise on a household appliance, such as a refrigerator, washing machine, or gas range. Using the Chevrolet Malibu (Case Study 4.1) as an example, identify three
Refer to problem 3. If the cost of the components varies according to their reliability levels as shown in the following table, and the cost to replace a failed system is $15,000, which of the
Identify three products that are, in your opinion, poorly named. Why do you find these products to be mid-named?
Image Tech, LLC (Oakland, CA) assembles cameras with the following structure from four major components:Image Tech can purchase the four components from three different suppliers who have the
You are planning to introduce a brand new refrigerator. You have also identified the following attributes that customers want in a new refrigerator: low price, low energy consumption, quiet
Compare and contrast product lifecycle management (PLM) and product life-cycle management (PLCM).
Which among the following systems is most reliable, A, B, C, or D? Why? Component 2 R (C.) = 0.95 Component 1 R(C.) = 0.95 A. Component 1 Component 3 Component 2 B. R (C.) = 0.97 R (C,) = 0.97 R(C.)
How are reliability and availability related? And how are they different?
Compare and contrast sustaining and disruptive innovation using examples to describe each.
Define the term redundancy, and discuss the role it can play in improving product design.
Compute the reliability of the following system: Component 1 R (C,) = 0.90 Component 4 Component 2 Component 3 R (C.) = 0.85 R (C.) = 0.95 R (C) = 0.98
What is the meaning of the term reliability?
1. Take a side in agreeing or disagreeing with the following statement: “The push to improve fuel efficiency is likely to cause engineers to pursue increasingly risky and untried technologies,
Why do new products fail? Pick an example of a product and a service that have failed, and discuss the reasons for their failure.
You are calculating the estimated time to completion for a project of 15 months€™ duration and a budgeted cost of $350,000. Assuming the following information, calculate the Schedule
Suppose you are deciding on whether to crash a project€™s activities and you have the following information:1. Construct the project€™s network. What is the project€™s
The federal government requires the organizations it contracts with for projects to provide regular SPI and CPI updates for them. The government likes to see values close to 1.0 for these indexes.
The following table shows the time information for the activities needed to develop an ad campaign.1. Calculate the expected activity times (round to nearest integer).2. Calculate the slack for each
You have a project with the following information:1. Calculate each activity€™s expected duration (TE) and variance. Which activities have the greatest variance?2. Create a network for this
Why do you need to take “value” into consideration when determining the status of a project?
Suppose for problem 2, you found a new supplier who could guarantee deliveries, allowing you to change project variance to 9 days.1. Recalculate the probabilities of finishing the project in 50, 70,
You have a project with an expected completion time of 15 weeks and a project variance of 4 weeks.1. What is the probability the project will be completed in 12 weeks?2. What is the probability the
The following table provides results of DNA samples taken over the past 15 days using a sample size of 100:1. Using this information, construct a 3-sigma p-control chart.2. The following defects were
A hospital administrator wants to monitor the quality of service that the patients receive at his hospital. To facilitate this process, 50 patients are asked to complete weekly patient feedback
Crescent Manufacturing, a fictional firm, produces camshafts used in automobiles. A lathing machine is used in the cutting process of producing the camshafts. The production manager of the company
Elite Auto Service Station services different makes and models of cars and SUVs. The auto station, to determine the quality of service it provides, conducts a weekly survey of five of its customers.
Refer to problem 23. In addition to the information provided in the problem, Patient Transport Co. has also specified an upper tolerance limit of 20 minutes for its transportation time.1. Is the
The fictional Patient Transport Co.’s target time to get customers to hospitals is 16 minutes. To evaluate whether it is reaching that target, for 20 consecutive days, the firm tracked patients’
The diameter of a motor shaft has the following specifications in millimeters: 120 ± 10. The manufacturing process used to produce these shafts is normally distributed, and control charts show it to
Erie Furniture Store, a fictional company, buys chests of drawers made out of teakwood. One of the features that determines whether a chest of drawers is of good quality is the presence or absence of
The Trinity Hospital Quality Improvement (QI) team wants to monitor the C section deliveries of pregnant mothers admitted to the hospital€™s obstetrics unit. The team decided to construct a
Omega Electronics (Jaipur, India) mass produces monitors that are used for medical imaging technology. To monitor the quality of the production process, the company draws samples of 100 tubes each,
1. How does seasonal demand affect the firm’s capacity planning and constraint management?2. Identify the most critical issues in the case, and develop a strategic capacity plan for Kirwain.3. What
The following article highlights some capacity planning challenges that companies face in meeting demand for their products in a growth market. Specifically, the article discusses the success of Fiat
Why is it important to consider both capacity utilization and capacity efficiency measures when evaluating a firm’s capacity performance?
XYZ International is planning to increase its capacity to overcome the bottlenecks in its production line. The firm plans to do this by the addition of a new machine. The company received proposals
What are capacity cushions, and why do companies need them?
Briefly discuss the caveats that companies should be aware of when developing capacity alternatives.
Discuss the factors that make capacity planning in supply chains difficult.
What are some of the unique capacity planning challenges that service companies face?
The following diagram illustrates a production system with four work stations arranged in sequence along with their number units each can produce per hour:1. Which work station is the bottleneck?2.
Discuss briefly the steps involved in capacity planning for services.
A manufacturing firm is planning to purchase new machines for processing four products it manufactures. Demand information and processing time data for the four products are shown in the following
What are supply chain contracts and how are they used to address capacity-related issues?
An operations manager, to increase the capacity of his manufacturing plant, decides to buy an additional machine. He has three alternatives: Machine I at a cost of $60,000; Machine II at a cost of
Explain how capacity can be managed to implement sustainability principles.
The business school of Loyola College, Chennai, India, has the capacity to enroll 1,500 business students in its class offerings every semester. Nevertheless, the dean of the college, Fr. Francis
What are some of the challenges of global capacity management?
XYZ Manufacturing has computed for the current month the following effective capacities and efficiencies for three of its departments.What is the expected production next month for each of the three
Laurel Nelson owns a beauty salon. Laurel’s fixed costs are $15,000 per month. The average variable cost for the beauty supplies she sells is $10 per unit. The average selling price of a product
The production process at ABC Manufacturing is as shown in the following figure:A product in this production process needs to go through only one of the painting operations:1. Which one of the
A manufacturer of a small appliance produces motors for the appliance using two identical processes. Each process has a design capacity of 300 units per day and an effective capacity of 250 units per
What is the capacity of the production system shown in the following figure?
A process has been designed to produce 3,000 units per day. The effective capacity of the process, however, is impacted by an inherent scrap rate of 10%. In addition, the actual output of the process
Determine the capacity of the production system shown in the following figure. To increase the output of the system, which work center capacity should be increased, and by how much? WC-7 17 units/hr
The fictional Reliance Retailers are planning to locate a new retail facility in the Chicago area. The firm has narrowed its location choices to three Chicago suburbs: Oakbrook, Evanston, and
1. What are some of the most common reasons for the counterfeiting of materials at a company’s overseas supply source?2. What are some steps a company can take to lessen the impact of
The following article highlights the importance of making global location decisions based on the total cost of ownership. In other words, companies need to make global location choices by evaluating
Discuss briefly each of the four phases of designing a supply chain network.
Solar Flare Inc., a mythical manufacturer of solar panels, is planning to build a new facility in a South American country. Bill Johnson, the manager responsible for this decision, has identified
Discuss the strategic importance of facility location decisions.
What are some of the reasons why companies find new locations or relocate their existing facilities?
A U.S. hospital chain is planning to enter the Indian market by building its first medical facility in southern India. The director, Dr. Uma Raman, is a native of that region and is familiar with the
What are some of the disadvantages of relocating facilities to a foreign country?
A manufacturer of high-technology medical equipment is planning to expand and build a new plant in one of the following countries in Southeast Asia: Philippines, Singapore, and Malaysia. John
The global facility location decision process occurs in a sequence of three stages:(1) Country decision,(2) Regional/community decision, and(3) Site decision.List and briefly explain each of the
The Great Lakes Institute of Technology (Erie, PA) is planning to open a new campus in one of the following five countries: India, Singapore, Bangladesh, Thailand, and China. The dean of the
How do locations strategies for service facilities differ than location strategies for manufacturing facilities?
Reliance Home Inc., a fictional manufacturer of dishwashers, washers, and dryers, is planning to construct a new warehouse and distribution center in Asia to serve the markets in that continent. The
What minimum set of criteria should service firms establish when selecting new locations?
Peter Boyle is planning to build a new recycling plant. The fixed and variable costs for three potential sites are as follows (in U.S. dollars):1. Over what range of recycling volume is each city
What is a Geographic Information System (GIS)? How can a restaurant use this tool to select a new facility for its operation?
A ski equipment manufacturer is planning to build a manufacturing plant in Europe. The fixed and variable costs (in U.S dollars) for four potential plant sites are shown as follows:1. Graph the
Dolphin Motors is evaluating three sites€”A, B, and C€”to locate a plant to build its new Sedan Dolphin XL600. The total annual cost is the sum of the annual fixed costs and
You and your father have taken on the project of remodeling your basement to turn it into a “mother-in-law” apartment for your relatives. You have calculated that you expect to complete the
Why is it helpful to consider the variance of each activity in a project? Why do “large” variances create a problem for the project manager’s estimation efforts?
Under what circumstances should you consider crashing a project’s activities? What activities are the best candidates for crashing? When should you stop crashing the activities?
In May 2015, the Mercedes-Benz (Stuttgart, Baden-Württemberg, Germany) factory in Alabama produced 5,000 sport utility vehicles (SUVs). During this month, the labor productivity at this plant was
What are the steps that you would take to improve productivity in a manufacturing organization? In a service organization?
Outline the factors that affect productivity.

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