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business
operations management

Questions and Answers of Operations Management

What is a bill of materials (BOM) and why is it important to the MRP?
What is a frozen time period or time fence in the MPS?
Where do the production numbers in the MPS come from?
In just a few sentences, explain what the MRP is, and what it does.
Why is accurate inventory and lead time information so important to the MRP?
Why have ERP implementations often failed in the past?
Describe the three post-implementation phases for ERP system users.
What do logistics management systems consist of, and why are they considered so important to firms that use them?
What are RMS’s and how are they used?
What does enterprise application integration refer to, and how is this accomplished?
How is internal application integration accomplished?
How is external application integration typically accomplished?
What is business process management (BPM) and how is it accomplished?
Can BPM solutions be integrated with the ERP?
What are some of the trends today, in ERP system applications?
Describe the key information flows that might occur at Amazon.com.
Describe several ways that various functional groups or departments in a firm might use an MRP II system.
Provide an example of how MRP II can be used in a service, such as a school.
Would it be a good idea to combine a TMS with a WMS? Why?
Would it be a good idea to combine BPM solutions with an ERP system? Why?
What is information and why is it important, according to the video?
How can information mapping improve productivity?
How does technology information help with supply chain management?
What are some of the things that SAP’s MRP system can do?
What are the benefit of robots bringing products to the human packer?
How can an ERP system help your business?
What is SAP AG and what is the SAP Business Suite?
Why do some ERP projects fail?
What are some of the things a TMS does?
How can a BPM application help a company?
Explain the importance of project planning.
What is a work breakdown structure and what are its benefits?
What is a Gantt chart and what are its benefits?
What do both CPM and PERT try to do?
What is the critical path? Why is it so important for successful project management?
What are critical activities? What is slack time?
What is project crashing? Crash time? Crash cost? When would you need to do project crashing?
What is project risk, and what are the categories of project risk? Are these major considerations? If so, why?
What is risk mitigation? And how is this related to contingency planning?
Can non-critical activities become critical? If so, how?
Why is it important to determine early and late, start and finish schedules?
What are the benefits of using three time estimates for project activities? When would you want to do this?
How can activity time variances cause problems for project managers?
When would you want to buy your own project management software, and when would you want to use open source or cloud-based project management applications?
What are some of the common things you noticed when watching the videos of the projects on Table 12.1?
What are considered best practices for project planning?
Do you think using sticky notes to create a WBS is worthwhile?
What are some problems associated with project crashing, that managers should consider?
What is the primary advice Mr. Buffett provides in his interview?
Which do you think is better— OpenProj or HyperOffice (see video box 8 for HyperOffice )?
For the following project, construct a Gantt chart. Based on your Gantt chart, what are the days to completion?
For the following project, construct a Gantt chart. Based on your Gantt chart, what are the days to completion?
For the following project, construct a Gantt chart. Based on your Gantt chart, what are the days to completion?
Using the project in Problem 5, construct the project network and list all of the possible pathways to completion. Determine the critical path(s). What are the critical path days to completion?
Using the project in Problem 5, determine the ES, EF, LS, LF, and slack times for each activity.
The critical path is A-C-E-F and it is desired to complete the project in 10 days. Crash the necessary activities and determine the total costs, including the minimum crash costs.
Using the activity paths from Problem 6, what are the minimum completion days and what is the total project cost?
Describe Six Sigma’s origins.
What is the reason for using the name Six Sigma?
What is DPMO and why would a company calculate it?
What is the Deming Prize? What companies can receive it?
What was the reasoning behind Crosby’s belief that quality is free?
How did Juran discuss quality differently among management and then workers?
Why are Six Sigma efforts tied to customer requirements?
What is the purpose of using a process diagram?
What are check sheets and how are they used?
What are Pareto Charts, and why are they useful in quality improvement efforts?
Do you agree with Deming’s Theory of Management? Explain.
Why do you suppose the Baldrige Quality Award is given only to U.S. organizations?
How could a company benefit from using the Baldrige Award application, without actually applying for the award?
What were some of the comments made by managers regarding Six Sigma?
How does the U.S. Army use Lean Six Sigma?
What allowed the Henry Ford Health System to win the Baldrige Award?
What are some of the requirements of ISO 14001?
What are some of the requirements of ISO 9001?
DPMO = 4×1000000/(1×500) = 8000; this is between 3.5 and 4 sigma level. 1. Who is generally credited for the formal beginning of statistical quality control? When was this?
What does it mean when a process is said to be “in control” or “out of control”?
How are the upper and lower control limits normally constructed?
When would management want to use a C chart instead of a P chart?
Why do firms calculate process capability indexes?
What is acceptance sampling, and what are the risks of using it?
What are operating characteristics curves and how are they generated? What do they show?
Why must samples of data be collected? Why not just take one measurement and plot that?
Can a process exhibit sample measurement plots that are all inside the control limits and still be considered out of control? Explain.
What are some variable data and attribute data that could be collected to track the quality of education at your university?
Why is it important to use a good set of control charts? What if the control charts are not a good set?
Why must attribute data samples be large?
Explain how P charts can be used in a manufacturing facility.
Why is it that P charts do not usually look symmetrical around the center line?
Can a process mean be “off-center” yet still be capable? Explain.
Can a process be considered in statistical control, yet also be considered incapable? Explain.
When would you want to test 100 percent of a supplier’s shipment for the required quality level, instead of a sample?
What did Keith Bower say about sample sizes for control charts?
Meltoni’s Tires is wants to switch to a more decentralized warehousing system. They currently have one central warehouse with 4,000 tires. If they go to a four warehouse system, what would be the
The Elizabeth Candies Co. is considering the purchase of a new robotic palletizer and is comparing two suppliers—the Schibrowski Co. and the Rogers Co. The Schibrowski robot system costs $84,000
An ice cream machine has an initial cost of $22,000. In year 4, it will require major maintenance at a cost of $4000. Each year, it is projected to generate $5,000 in net revenues for the company.
Find the net present values of the following potential purchases and projected cash flows, discounted at 6 percent annually: Machine A: Purchase price = $32,000; salvage value after 8 years = $8,000;
Your firm can make a product in-house for $1.25 total cost per unit using equipment which would cost $30,000. Your firm could alternately purchase the same item for $1.65 per unit. Indicate the range
A weighted scorecard is used to compare three suppliers for a product. Determine the total weighted scores for the suppliers, and which supplier would be preferred. Use a 10-point scale. Note that
A weighted scorecard is used to compare three suppliers for a product, using a 10-point scale. Determine the total weighted scores for the suppliers, and which supplier would be preferred.

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