Analytical Questions 1. Generally, as a planner, how would you define Six-Sigma? How would you make benefit from utilising Six-Sigma methodlogy? (1.5 Mark) 2. How can Lean Six-Sigma be used to identify and prioritize improvement opportunities? (1.5 Mark) 3. What is the role of leadership in a successful Lean Six-Sigma Implementation? How can leaders effectively support and sustain a culture of continous improvement? (1.5 Mark) Cook Door's Location Analysis The management of Cook Door is considering three different locations Heliopolis, Zayed and 5th Settlement for its new store. The management team has identied the ve factors listed in the following table as the basis for evaluation, and has assigned weights as shown in the same table. The operations manager has rated each location on each factor, on a 10- point basis (higher scores are better), as shown in the right-hand table. Factor Factor Description HeliOPOHS Zaved 5'\" Settlement Cost of Labors Trafc per square meter Proximity to public transportation Availability of target segment Rental Cost As an operations manager, Cook Door's management has asked you to use the previous information to: a. Calculate the weighted score for each alternative location. (1 Mark) b. Identify the other factors that your company may wish to include in their decision while using this factor rating approach. (1 Mark) c. If the management team weighted the factors equally, how would the locations stack up in terms of their composite factor rating scores? (1 Mark) d. If Rental costs and Traffic per square meter are given weights that are double the weights of the other factors, how would the locations stack up? (1 Mark) At present, Cook Door has five stores in Great Cairo, each of which is serviced once a week; expired raw materials are collected and fresh products are displayed on these five branches. Here are the x and y coordinates of the locations of these five branches and the number of truckloads of raw material that go to each destination. Cook Door operates out of a single warehouse, whose coordinates are also included. Cook Door has outgrown the warehouse, and the partners are discussing whether to expand the present facilities or construct a larger warehouse at a new site Customer X Y Weekly Loads A 4 6 2 B 10 4 6 C 6 12 4 D 20 8 12 F 12 10 4 Warehouse 6 8 As an operations manager, the Cook Door management has asked you to use the previous information to: Discuss whether to expand the present facilities or to construct a larger warehouse at a new site. (2.5 Marks) In addition, Cook Door's Management is considering three sites - Obour, 10th of Ramadan, and 6th October cities - at which to locate a factory to build its new raw material and food concentrates products. The goal is to locate at a minimum cost site, where cost is measured by the annual fixed plus variable costs of production. Cook Door has gathered the following data: Site Annual Fixed Cost Variable cost per ton of raw material Obour L.E 10,000,000 L.E. 2,500 10th of Ramadan L.E. 20,000,000 L.E. 2,000 October L.E. 25,000,000 L.E. 1,000The firm forecast that it will be in need for producing 60,000 tons of raw material at the new plant each year, but thus far, that the extent of its knowledge about production plans. Required: a. For what values of volume, V of production, if any, is October's site a recommended site? (2 Marks) b. What volume indicated Obour's site is optimal? (1 Mark) Cook Door's Supply Chain (Theoretical Analysis) Cook Door was founded in 1988 with Egyptian capital, with the aim of providing an Egyptian product that adheres to international standards, and competes with the products of international companies working in the field of restaurants, food and fast food. The rst branch of the Cook Door chain of restaurants was established in Cairo, specifically in Safeer Square, and in recent years, dozens of branches began to spread in the various regions of Egypt, in addition to a number of branches outside the Arab Republic of Egypt, as there are branches in Saudi Arabia, Kuwait, Syria, Libya, Cook is distinguished Role is that its menu includes all different types of meat, chicken, food or salads. What is unique to Cook Door from other restaurants is that it has its own bakery and a factory for the manufacture of all Cook Door products. wimpy Door chain, and now, after thirty years of hard work, the International Company for Food Industries (Cook Door) has become one of the largest Egyptian companies that use the latest technologies that keep pace with technological progress in the field of foods and fast food, in proportion to the enormity of the Production and its diversication according to international standards. In addition to the qualified cadres and competencies that we aim to meet the requirements of its customers with high speed, high quality and elegant style, which made it win the award for the best fast-food restaurant chain in Egypt in 2007, 2008 and 2009, and gain consumer confidence. Three decades have passed since the establishment of the rst restaurant of the Cook operating in the Egyptian food and beverages industry. It applies unique supply chain strategies through which it acts as a supplier of raw materials and a producer and distributor of its own products in the local and international markets. lts own product lines include food and fresh juice products. In addition, they use new technology-based for burger manufacturing methods. Moving to one of its main Cook Door supply chain is successfully competitors Smiley's Grill and Wimpy (owned by Americana), possesses a competitive advantage through producing tasty products. Such above-mentioned long hierarchical supply chains, which involve multiple tiers of supply chain nodes and stakeholders, represent successful examples of Egyptian companies operating in an emerging market. Required a. With the aid of giving examples, identify and explain the different implemented supply chain strategies at Cook Door and its competitors. (2 Marks) . As an operations manager, recommend other strategies that can be formulated by Cook Doors supply chain in relation to the different stages of Cook Door's product life cycle (PLC). (2 Marks) . If you were the supply chain manager for Cook Door, discuss your main responsibilities and the challenges or obstacles that you may face when managing the Cook Door's supply chain. (2 Marks) . As an operations manager at Cook Door, you have been exposed to the problem in which small uctuations in demand at the Cook Door's stores can cause progressively larger fluctuations in demand at the manufacturer and raw material supplier levels. (2 Marks) . Give examples on the main stakeholders that can be linked together across the fast-food supply chain. (2 Marks) Cook Door's Aggregate Planning Cook Door's management asked you as a Production and Operations Manager to develop an aggregate plan given the forecast for the demand of raw material in tons shown below for the next 8 months. The Production and Operations plant you have recommended them in in phase 1 -Obour, October or 10th of Ramadan- has a normal capacity of 160 tons per month and overtime capacity for 5 tons. The normal output has a cost of L.E. 7,000 per ton; the overtime has a cost of L.E. 10,000 per ton; and the subcontracting has a cost of L.E.10,000 per ton. On the other hand, the beginning inventory is zero tons, the inventory carrying cost is L.E. 300 per ton of average inventory, and the backlog cost is L.E. 500 per ton. Months Jan Feb March April May June July Aug. Total Forecast 300 330 340 300 310 310 340 330 2,560 As an operations manager for Cook Door, you are required to: a. Formulate an aggregate plan that allows level production, uses inventory to absorb fluctuations and allows backlogs. (3 Marks) b. Formulate an alternative chase plan that matches the output with the forecasted demand, while using first overtime (with a maximum of 5 units), then subcontracting, to satisfy the excess in the demand (if it exceeds 320 units). (3 Marks) 0. As a decision maker, evaluate the total cost of each plan; and hence decide which plan is better for Cook Door. (1 Marks) Cook Door's Inventory Management Cook Door's stores management orders from the popular bakery manufacturer Rich Bake 50,000 packs of custom-made buns each year. The holding cost for each pack per year is L.E.30. Th ordering cost per order is LE. 375. In addition, it takes three days between placing and receiving an order. Taken into consideration that Cook Door stores operate for 360 days a year As a production manager of Cook Door: a. Given the above information, what would be the economic order quantity (E00)? (1 Mark) b. How many orders are made each year to replenish your inventory? (1 Mark) 0. Calculate the annual inventory holding cost, annual order cost, and the total annual cost of managing your inventory. (1 Mark) d. Compute the re-order point (ROP). (1 Mark) Cook Door's MRP To make a one batch of their Z-burger (item A), Cook Door has to mix three main components, one batch of beef meat (item B), two batches of vegetables and herbs (item C), and one batch of Onions (item D). (Item C) is composed of two batches of Onions (item D) and three batches of units of other vegetables (item E). Items A, C, D, and E have on-hand inventories of 40, 20, 40, and 20 batches, respectively. Item B has a scheduled receipt of 10 batches in period 1, and C has a scheduled receipt of 100 batches in Period 1. Item C requires a minimum lot size of 100 batches. D and E are required to be purchased in multiples of 200 batches and 100 batches, respectively. Lead times are one period for Items A, B, and C, and two periods for Items D and E. The gross requirements for A are 60 batches in Period 2, 60 in Period 5, and 80 in Period 8. Find the MRP for all of the above-mentioned items