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business
operations management

Questions and Answers of Operations Management

Quality Style manufactures self-assembling furniture. To reduce the cost of returned orders, the manager of its quality control department inspects the final packages each day using randomly selected
The Fresh Pie Company purchases apples from a local farm to be used in preparing the filling for its apple pies. Sometimes the apples are fresh and ripe. Other times they can be spoiled or not ripe
Joshua Simms has recently been placed in charge of purchasing at the Med-Tech Labs, a medical testing laboratory. His job is to purchase testing equipment and supplies. Med-Tech currently has a
Breeze Toothpaste Company makes tubes of toothpaste. The product is produced and then pumped into tubes and capped. The production manager is concerned whether the filling process for the tubes of
Breeze Toothpaste Company has been having a problem with some of the tubes of toothpaste leaking. The tubes are packed in containers with 100 tubes each. Ten containers of toothpaste have been
The Crunchy Potato Chip Company packages potato chips in a process designed for 10.0 ounces of chips with an upper specification limit of 10.5 ounces and a lower specification limit of 9.5 ounces.The
Carlos Gonzales is production manager at an assembly plant that manufactures cordless telephones. The company is planning to install a pull system. The process is being planned to have a usage rate
A pizza box manufacturer uses a kanban system to control the flow of materials. The boxes are stamped (cut to size) and inked at a rate of 1,500 pizza boxes an hour. The next machine on the assembly
A production cell at the Stylish Bags facility operates 8 hours per day and uses a pull method to supply purse handles to the assembly line. The purse handles are used at a rate of 200 per day. Each
Lauren’s Beauty Boutique has experienced the following weekly sales:Week Sales 1 420 2 382 3 425 4 465 5 395 Forecast sales for week 6 using the naïve method, a simple average, and a
The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July.a. Forecast sales of jeans for March through June
The manager of the health clinic in Problem 5 would also like to use exponential smoothing to forecast demand for emergency services in the facility. As in Problem 5, she is not sure whether to use a
Demand at Nature Trails Ski Resort has a seasonal pattern. Demand is highest during the winter, as this is the peak ski season. However, there is some ski demand in the spring and even fall months.
Rosa’s Italian restaurant wants to develop forecasts of daily demand for the next week. The restaurant is closed on Mondays and experiences a seasonal pattern for the other six days of the
The number of students enrolled at Spring Valley Elementary has been steadily increasing over the past five years. The school board would like to forecast enrollment for years 6 and 7 in order to
Happy Lodge Ski Resorts tries to forecast monthly attendance.The management has noticed a direct relationship between the average monthly temperature and attendance.a. Given five months of average
Small Wonder, an amusement park, experiences seasonal attendance.It has collected two years of quarterly attendance data and made a forecast of annual attendance for the coming year. Compute the
Given the following data, use exponential smoothing with α = 0.2 and α = 0.5 to generate forecasts for periods 2 through 6.Use MAD and MSE to decide which of the two models produced a better
A company has used three different methods to forecast sales for the past five months. Use MAD and MSE to evaluate the performance of the three methods.a. Which forecasting method performed best? Do
Two different forecasting models were used to forecast sales of a popular soda on a college campus. Actual demand and the two sets of forecasts are shown. Use MAD to explain which method provided a
A producer of picture frames uses a tracking signal with limits of±4 to decide whether a forecast should be reviewed. Given historical information for the past four weeks, compute the tracking
Mop and Broom Manufacturing has tracked the number of units sold of its most popular mop over the past 24 months, as shown.Month Sales Month Sales Month Sales 1 239 9 310 17 369 2 248 10 335 18 378 3
Use the sales data below to generate forecasts for months 7–24 using a six‐period and a three‐period moving average. Use MAD to compare the forecasts. Which forecast is more stable? Which is
The following data were collected on the study of the relationship between a company’s retail sales and advertising dollars:Retails Sales ($) Advertising ($)29,789 16,893 35,434 18,398 38,732
The owners of Speedy Logistics, a company that provides overnight delivery of documents, are considering where to locate their new facility in the Midwest. They have narrowed their search down to two
Sue and Joe are a young married couple who are considering purchasing a new home. Their search has been reduced to two homes that they both like at different locations. They have decided to use
The Bakers Dozen Restaurant is considering opening a new location.It has considered many factors and identified the ones that are most important. Two locations are being evaluated based on these
Joe’s Sports Supplies Corporation is considering where to locate its warehouse in order to service its four stores in four towns: A, B, C, and D. Two possible sites for the warehouse are being
Given here are the coordinates for each of the four towns to be serviced by the warehouse in Problem
Use the information from Problem 15 and the center of gravity method to determine coordinates for the warehouse.Town Coordinates (X, Y)A (4, 18)B (12, 2)C (10, 8)D (8, 15)
Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual fixed and variable costs for each possible site have been estimated as follows:Location Fixed Costs
The Quick Copy center for document copying is deciding where to locate a new facility. The annual fixed and variable costs for each site it is considering have been estimated as follows:Location
Raj Venkaraman is a specialty retailer and is deciding where to locate his new auto manufacturing plant. The annual fixed and variable costs for each possible site have been estimated as
Use trial and error to find a better layout for Fresh Foods Grocery in Problem
Compute the ld score and compare it to the ld scores computed for Fresh Foods’ current and proposed layouts. Which is best?
Gator Office Supplies is comparing two layouts for the design of its office building. It has interviewed managers in order to develop the from–to matrix shown in Table 10.12. The two layouts
Use the data from Problem 19 to rebalance the line with a cycle time of 75 seconds. How does the number of workstations change?What happens to the output and the line’s efficiency?
6 Examine this simple domestic project. The project definition is to make ‘breakfast in bed’ consisting of a boiled egg, toast and orange juice, using the minimum staff resources and time, and to
5 In the oil industry, project teams are increasingly using virtual reality and visualisation models of offshore structures that allow them to check out not only the original design, but any
4 Some (even relatively experienced) project managers neglect stakeholders in the project management process, preferring to ‘manage them at a distance’, rather than allow them to interfere with
3 ‘Funding comes from a variety of sources; to restore the literally irreplaceable buildings we work on. We try to reconcile historical integrity with commercial viability, and rely on the support
2 The activities, their durations and precedences for designing, writing and installing a bespoke computer database are shown in Table 15.3 below. Draw a network diagram (activity-on-node) for the
1 Revisit the two examples towards the beginning of the chapter describing the type of projects undertaken by Disney Imagineering and the Crossrail project. Using the three methods of distinguishing
3 What can they do about these dangers and difficulties?
20. Have mechanism for intervening in the project to bring it back to plan been put in place?
19. Are there mechanisms in place to monitor the progress of the project?
18. Have potential resource and time schedule constraints been built into the project plan?
17. Have project planning tools, such as critical path analysis or PERT, been considered for the project?
16. Have the relationships and dependencies between activities been identified and summarised in the form of a simple network diagram?
15. Is there sufficient confidence in the time and resource estimates to make planning meaningful?
14. Have all activity times and resources been estimated using the best possible information within the organisation?
13. Have all activities been identified and expressed in the form of a work breakdown structure?
12. Is sufficient effort being put into the project planning process?
11. For this particular project, does the project manager have skills appropriate for the project’s intrinsic degree of difficulty?
10. Have overall project management skills within the business been generally assessed?
9. Has the overall strategy of the project been defined in terms of its overall approach, its significant milestones, and any decision gateways that may occur in the project?
8. Has the scope of the project been defined, including technical specifications, limits and exclusions?
7. Have the objectives of the project been defined, particularly in terms of the relative importance of cost, time and quality?
6. Has the project been well defined?
5. Have all stakeholders been prioritised in terms of their relative power and interest?
4. Do managers have methods of stakeholder mapping and determining the nature of these stakeholders, in terms of their positive versus negative energy towards the project?
3. Do managers understand the importance of identifying and managing stakeholders?
2. Is the fundamental nature of the project understood in terms of volume–variety;scale–complexity–uncertainty; and novelty–technology–complexity–pace dimensions?
1. Do managers understand what projects are and the role of project management?
6. Is project management adequate?
5. Is the project adequately controlled?
4. Has the project been adequately planned?
3. Is the project well defined?
2. Is the applicability of project management understood?
1. Is the nature of the project and its stakeholders understood?
5 An automated sandwich-making machine in a food manufacturer’s factory has six major components, with individual reliabilities as shown in Table 14.2(a) What is the reliability of the whole
4 (True story) The light bulb in the men’s lavatories of a factory finally burnt out after 70 years of operation.The manager at the firm said, ‘It is actually a little bit sad. I joined the firm
3 One cause of aircraft accident is ‘controlled flight into ground’. Predominantly, the reason for this is not mechanical failure but human failure such as pilot fatigue. Boeing, which dominates
2 Wyco is a leading international retailer selling clothing and accessories with stores throughout the United States, Europe and the Middle East. The countries from which it sources its products
1 Revisit the six examples of failure described at the beginning of the chapter. Compile a table that summarises your view of:(a) The reasons for the main failure(b) How it might have been pr
2 What control problems did they encounter in implementing this strategy (pre and post investigation)?
1 What operational risks did SIS face when deciding to become a strategic supplier for Alden Toys?
17. Does the recovery procedure cover all the steps of discover, act, learn and plan?
16. Is a well-planned recovery procedure in place?
15. Are specific plans in place for the use of each type of mitigation action?
14. Have the whole range of mitigation actions been thoroughly evaluated?
13. Does the operation have a failure mitigation plan?
12. Is the concept of redundancy economically viable for any potential failures?
11. Have all approaches to process and technology maintenance been explored?
10. Has the idea of fail-safeing (poke yoke) been considered as a means of reducing the likelihood of failure?
9. Has due attention been paid to the possibility of designing out failure points?
8. Are techniques such as failure mode and effect analysis (FMEA) used?
7. Have the impact of all potential sources of failure been assessed?
6. Has the possibility of non-evident failures been addressed?
5. Has the likelihood of each potential failure been assessed?
4. Is post-failure analysis carried out when failure does occur?
3. Have any future changes in the sources of failure been identified?
2. Have all potential sources of failure been identified?
1. Does the business have an operations and process resilience policy?
5. Have failure mitigation measures been implemented?
4. Have failure recovery measures been implemented?
3. Have failure prevention measures been implemented?
2. Is there an integrated approach to operations risk and resilience?
1. Have potential failure points been assessed?
6 Look again at the example, ‘The Four Seasons Hotel Canary Wharf’.(a) The company has what it calls its Golden Rule; ‘Do to others (guests and staff) as you would wish others to do to you’.

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