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business
operations management

Questions and Answers of Operations Management

Patricia Zell, a dollmaker from Regina, SK, is interested in the mass marketing and production of a ceramic doll of her own design called Tiny Trisha. The initial investment required for plant and
David Wojciechowski recently purchased a chain of dry cleaners in northern Alberta. Although the business is making a modest profit now, David suspects that if he invests in a new press, he could
Danielle Galipeau and her design team are analyzing the production costs for three alternative monitor designs. Given the cost information below, and assuming form and function are similar for each
Read about bench marking at Productivity Alberta www.productivityalberta.ca, the American Productivity and Quality Center www.apqc.org, and the Bench marking Exchange www.benchnet.com. What is bench
Access Environment Canada www.ec.gc.caand the Environmental Protection Agency www.epa.govto read about the Canadian and U.S. governments’ commitment to environmental product design. Compare the
Describe Little’s Law in your own words and specify an example where the law applies.
MagTech assembles DVD players from four major components arranged as follows:The components can be purchased from three different ven-dors, who have supplied the following reliability data:a. If
Glen Wong is an emergency medical technician for a local rescue team and is routinely called on to render emergency care to citizens facing crisis situations. Although Glen has received extensive
Students often complain that the requirements of assignments or projects are unclear. From the student’s perspective, whoever can guess what the professor wants wins the highest grade. Thus, grades
Describe the service process for(a) A bank,(b) An air-line, and(c) A lawn service.
List the elements that define a queuing system.
How can a decision maker use the results of queuing analysis for making decisions?
Under what conditions will the single-channel, single-phase queuing model with Poisson arrivals and undefined service times provide the same operating characteristics as the basic model with
Cakes baked by the Freshfood Bakery are transported from the ovens to be packaged by one of three wrappers. Each wrapper can wrap an average of 120 cakes per hour (Poisson distributed). The cakes are
The ticket booth on the Poly campus is operated by one person who is selling tickets for the annual Poly versus Artsy hockey game on Saturday. The ticket seller can serve an average of 12 customers
The Brandon Airport in Manitoba serves light aircraft. It has a single runway and one air traffic controller to land planes. It takes an airplane eight minutes to land and clear the runway
The Canadian Western Bank currently has one out-side drive-up teller. It takes the teller an average of three minutes (exponentially distributed) to serve a bank customer. Customers arrive at the
During registration at Poly every quarter, students in the Faculty of Management must have their courses approved by the departmental adviser. It takes the adviser an average of five minutes
All trucks travelling on the Trans-Canada Highway between Medicine Hat and Calgary are required to stop at a weigh station. Trucks arrive at the weigh station at a rate of 120 per eight-hour day
In Problem 5-8, the head of the Faculty of Management at Poly is considering the addition of a second adviser in the advising office to serve students waiting to have their schedules approved. This
Annie Quan is a nurse on the evening shift from 10:00 p.m. to 6:00 a.m. at Community Hospital. She is responsible for 15 patients in her area. She averages two calls from each of her patients every
Wallace Publishers has a large number of employees who use the company’s single fax machine. Employees arrive randomly to use the fax machine at an average rate of 20 per hour. This arrival process
The Escargot is a small French restaurant with six waiters and waitresses. The average service time at the restaurant for a table (of any size) is 80 minutes (exponentially distributed). The
Erkut’s television-repair service receives an average of four TV sets per eight-hour day to be repaired. The service manager would like to be able to tell customers that they can expect their TV
The Seaboard Shipping Company has a warehouse terminal in Nanaimo, BC. The capacity of each terminal dock is three trucks. As trucks enter the terminal, the drivers receive numbers, and when one of
Drivers who come to get their licences have their photograph taken by an automated machine that develops the photo-graph onto the licence card and laminates the complete licence. The machine requires
A vending machine at Local Airport dispenses hot coffee, hot chocolate, or hot tea in a constant service time of 30 seconds. Customers arrive at the vending machine at a mean rate of 50 per hour,
In Problem 5-20, suppose that Erkut’s television-repair service cannot accommodate more than 10 TV sets at a time (under repair and waiting for service). What is the probability that the number of
Nanaimo, BC, a major seaport on the west coast, has a ship coal-loading facility. Currently, coal trucks filled with coal arrive at the port facility at the mean rate of 149 per day (Poisson
The restaurant at the Art Gallery of Ontario serves a hot buffet cafeteria-style daily to visitors and employees. The buffet is self-service. From 7:00 a.m. to 9:00 a.m., customers arrive at the
The Woodstock Police Department has eight patrol cars that are on constant call 24 hours per day. A patrol car requires repairs every 30 days, on average, according to an exponential distribution.
The local Canada Post office has four stations for service. Customers line up in single file for service on a FIFO basis. The mean arrival rate is 40 per hour, Poisson distributed, and the mean
The Associate Dean in the College of Business at Local University is attempting to determine which of two copiers he should lease for the college’s administrative suite. A regular copier leases for
Judith Huang is a doctoral student at Local University, and she also works full time as an academic tutor for 10 foreign students. She took the job hoping it would leave her with free time between
The Vancouver port is a transportation hub that transfers shipping containers from trucks coming from western seaports to rail cars for shipment to eastern destinations. Containers arrive at the
The Wild Water Kingdom park has a new water ride, the Raging Rapids. The ride holds 36 people in boat-cars and it takes 4.1 minutes to complete the ride circuit. It also takes the ride attendants
The copy centre in the Faculty of Business at Local University has become an increasingly contentious item among administrators. The department heads have complained to the associate dean about
Give an example of a product or service you have encountered that was poorly designed. Read about more bad designs at the bad designs website www.baddesigns.com. Make a list of the factors that make
A department store in Beijing, China, has arranged to purchase specially-designed sweatshirts from a clothing manufacturer in Hong Kong. When the sweatshirts arrive in Beijing in lots of 2000 units,
The Metro Packaging Company in Edmonton produces clear plastic bottles for the Kooler Cola Company, a soft-drink manufacturer. Metro inspects each lot of 5000 bottles before they are shipped to the
Dave€™s Burgers is a fast-food restaurant franchise in Nova Scotia, and Newfoundland and Labrador. Recently, Dave€™s Burgers has followed the lead of larger franchise restaurants
Mark Sumansky owns and manages Green Grass, a lawn-care service located in Kitchener, Ont. His customers include individual homeowners and businesses that subscribe to his service for lawn care
Vijay Raines and Megan Waters own and operate the Rainwater Brewery, a micro-brewery that grew out of their shared hobby of making home-brew. The brewery is located in Kelowna, B.C. the home of
The family of a patient at the Metropolitan Hospital complained when the patient fell in the hospital and broke her hip. The family has threatened a lawsuit, and there has been some negative
The University Health Network uses SPC charts extensively to monitor various quality indicators and improve processes at its hospitals. One of the hospitals has discovered a potential problem in hand
The Elon Company manufactures parts for an air-craft company using three computerized numerical con-trolled (CNC) turning centres. The company wants to decide which machines are capable of producing
Explain to what extent the process for producing TE’s Long Life bulbs in Problem 3-35 would have to be improved to achieve 6-sigma quality.Problem 3-35TE’s Long Life 13-watt LED light bulbs are
Elon Corporation manufactures parts for an aircraft company. It uses a computerized numerical controlled (CNC) machining centre to produce a specific part that has a design (nominal) target of 3.244
The Pacific Fruit Company in Problem 3-13 has designed its packaging process for boxes to hold a net weight (nominal value) of 255 g of raisins with tolerances of ± 15 g. Using the
TE’s Long Life 13-watt LED light bulbs are designed to have a life of 1125 hours with tolerances of ± 210 hours. The process that makes light bulbs has a mean of 1050 hours, with a standard
The Great Outdoors Clothing Company, a mail-order catalogue operation, contracts with Purolator to deliver all of its orders to customers. As such, Great Outdoors considers Purolator to be part of
The dean of the College of Business at Local University wants to monitor the quality of the work performed by the college€™s administrative staff. Each completed assignment is returned to
The Lakeside Bank is concerned with complaints from customers about its drive-through window operation. Customers complain that it sometimes takes too long to be served. Since there are often cars in
Zita€™s Restaurant is a chain that employs independent evaluates to visit its restaurants as customers and assess the quality of the service by filling out a question-naire. The company
The Oceanside Apparel Company manufactures expensive, polo-style men€™s and women€™s short-sleeve knit shirts at its plant in Jamaica. The production process requires that
The City Square Grocery and Meat Market has a large meat locker in which a constant temperature of approximately 4.5º C should be maintained. The market manager decides to construct an R-chart
A machine at the Pacific Fruit Company fills boxes with raisins. The labelled weight of the boxes is 255 g. The company wants to construct an R-chart to monitor the filling process and make sure the
The Victoria Bread Company daily delivers multiple orders by truck from its regional distribution centre to stores in the T&T Supermarket chain. One measure of its supply chain performance is the
One of the stages in the process of making denim cloth at the Western Mills Company is to spin cotton yarn onto spindles for subsequent use in the weaving process. Occasionally the yarn breaks during
The Road King Tire Company wants to monitor the quality of the tires it manufactures. Each day the company quality-control manager takes a sample of 100 tires, tests them, and determines the number
The Blue Parrot is an expensive uptown restaurant that opens only for dinner. Entrees are set at a fixed price of $42. In a typical month, the restaurant will serve 3,600 entrees. Monthly variable
Why has ISO 9000 become so important to Canadian firms that do business overseas?
The Japanese are generally credited with starting the global quality revolution that in the 1970s became an integral part of corporate culture, and eventually led to the development of
Backwoods Canada, Inc. produces expensive water-repellent, down-lined parkas. The company implemented a total quality-management program in 2008. Following are quality-related accounting data that
The Backwoods Canada company operates a telephone order system for a catalogue of its outdoor clothing products. The catalogue orders are processed in three stages. In the first stage, the telephone
As a result of several years of severe cuts to its operating budget, the administration at Local University has raised tuition annually for the past five years. Five years ago getting an education at
a. Why do you think Mr. Gandhi organized the customer survey the way he did? What other things do you think he might have done to analyze the stores' quality problems?b. Develop Pareto charts to help
Choose an industry on which you will be the class “expert” for the duration of this course. Write an initial profile of major players, customers, structure, and competitive issues.
Statistics Canada collects input and output data from various countries for comparison purposes. Labour hours are the standard measure of input. Calculate the output per hour from the following data.
Rushing yardage for the three top running backs during a recent Vanier Cup is given below. Which player is the most productive running back? How did you measure productivity? Lévesque Peressini
Posey Ceramics makes ceramic vases for a chain of department stores. The output and cost figures over the past four weeks are shown here. Labour costs $20 an hour, and materials are $8 per kilogram.
Visions is a major Canadian electronics firm that manufactures a number of electronic components for domestic and global consumer electronics companies. It imports most of its materials and the
In Problem S1-10, suppose Visions is able to assign probabilities to each of the states of nature for each of the suppliers/ports as follows.a. Using expected value, determine the port/supplier
The Extron Oil Company is considering making a bid for a shale oil development contract to be awarded by the provincial government. The company has decided to bid $110 million. The company estimates
The Canucks major league baseball team is going to enter the free agent market over the winter to sign a new starting pitcher. They are considering five prospects who will enter the free agent
The management of Canuck Union Bank is concerned about the potential loss that might occur in the event of a physical catastrophe, such as a power failure or a fire. The bank estimates that the loss
A company offers three personal health, dental, vision care, and prescription drug plans for its employees to choose from, as follows.Plan 1€”monthly cost of $32 with a $500 deductible; the
Describe the impact that the creation of the Canada Awards for Excellence (CAE) has had on quality improvement in Canada.
Mary Khadir is suing the manufacturer of her car because of a defect that she believes caused her to have an accident, keeping her out of work for a year. She is suing the company for $3.5 million.
Brandon University is a small university that would like to increase revenues by expanding its student base and building ties with businesses in the surrounding area. To do so, it is considering
Mountain Side Electric Company is a manufacturing company located in southern Alberta. It is considering replacing some of its equipment and is attempting to decide whether it should replace an
How would you rank in order of importance, the three competitive dimensions for your university? For your favorite restaurant?
Explain economies of scale using a manufacturing firm; your university.
The product design costs are $250,000. Use a discount rate of 9 percent for the projected cash in-flows. Assume a 5-year lifespan. Calculate the projected NPV, the payback time, and the IRR.
Using a discount rate of 6 percent, determine the NPV, payback time and the IRR. Projected Year Cash Flows ($) - $405,000 Cost 174,000 128,000 110,000 4 102,000 Salvage 50,000 2. 3.
Find the NPV and the IRR for the cash flows by hand, using a discount rate of 10 percent. Cash Flows ($) Year -845,000 450,000 365,000 300,000 140,000 4 -25,000 2. 3.
Using your spreadsheet software, find the NPV and the IRR for the cash flows, using a discount rate of 10 percent. Cash Flows ($) Year -845,000 450,000 365,000 300,000 140,000 4 -25,000 2. 3.
Find the NPV and the IRR for the following cash flows by hand, and then using your spreadsheet software. Use a discount rate of 12 percent. Cash Flows ($) Year -425,000 -250,000 -55,000 220,000 4
Make a process flowchart for enrolling in and completing this class.
Village Plumbing can normally accommodate 25 customers per day. For the past 50 weeks, Village has served 5500 customers. If the shop is open five days per week, what was their capacity utilization
A company’s effective capacity is 12,000 units per day. If they normally produce 9,500 units per day, find the capacity utilization and the utilization growth necessary to produce 10,500 units per
Management wants to know how many units they have to sell to break even.
What is the make or buy break-even cost?
Jonnie Faith, a buyer for Global Metrics, is determining the make or buy quantity for a new instrument. She can have them made for $1200 each with an equipment investment of $80,000, or Global could
A firm can purchase whozits for $18 and sell them for $29. If they purchase 5000 units, how many units do they have to sell to break even? They could buy a whozits machine for $30,000 and make
Blake’s Donuts can make donuts for $0.25 each with their current equipment. They could purchase a different fryer for $12,000 which would reduce their costs to $0.20 each. Or, they could buy a
Calculate a 3-period simple moving average forecast for periods 4-8. Demand (units) Period 22 16 25 4 27 19 28 22 2. 3. 6.
Calculate a 3-period weighted moving average forecast for periods 4-8 using the weights 0.6, 0.3, and 0.1.
Calculate an exponential smoothing forecast for periods 2-8 using α = 0.3 and an initial forecast for period 1 of 22.
Plot the data. Do the two variables look correlated? Chance of Rain Umbrella Sales Month (%) Forecast error (units) 22 January 1420 1337.7 82.3 February 1374.4 26 1380 5.6 March 32 1440 1429.4 10.6

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