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Question: Brown’s, a local bakery, is worried

Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery’s ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with:
Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not believe things have changed much, but she did invest an additional $3,000 for modifications to the bakery’s ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15% more efficient. Brown has asked you to check the energy savings of the new ovens and also to look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with:





Transcribed Image Text:

LAST YEAR NOW Production (dozen) 1,500 1,500 Labor (hours) 350 325 Capital investment ($) 15.000 18,000 Energy (BTU) 3,000 2,750


> Gray Corporation began operations on January 1, 2017. The following information is available for Gray Corporation on December 31, 2017. Accounts payable…………………$ 5,000 Notes payable………………………$ 7,000 Accounts receivable…………………2,000 Rent expense…………………………1

> Identify each of the following organizational characteristics with the business organizational form or forms with which it is associated. (a) Easier to transfer ownership. (b) Easier to raise funds. (c) More owner control. (d) Tax advantages. (e) No pers

> Indicate in which part of the statement of cash flows each item would appear: Operating activities (O), investing activities (I), or financing activities (F). (a) _____ Cash received from customers. (b) _____ Cash paid to stockholders (dividends). (c) __

> What are the advantages to a business of being formed as a partnership or sole proprietorship? What are the disadvantages?

> On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first m

> The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are also provided in Appendix F. Instructions Visit Louis V

> The Bonita Vista Golf & Country Club details the following accounts in its financial statements. Accounts payable _____ Accounts receivable _____ Equipment _____ Sales revenue

> Amazon.com, Inc.’s fi nancial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions (a) Based on the information contained in these financial statements, determine the following fo

> Match each of the following types of evaluation with one of the listed users of accounting information. 1. Trying to determine whether the company complied with tax laws. 2. Trying to determine whether the company can pay its obligations. 3. Trying to de

> What are the advantages to a business of being formed as a corporation? What are the disadvantages?

> Financial decisions often place heavier emphasis on one type of financial statement over the others. Consider each of the following hypothetical situations independently. (a) The North Face is considering extending credit to a new customer. The terms of

> What is the benefit of a single set of high-quality accounting standards?

> The financial statements of Apple Inc. for 2014 are presented in Appendix A. Instructions Refer to Apple’s financial statements and answer the following questions. (a) What were Apple’s total assets at September 27, 2014? At September 28, 2013? (b) How m

> What are the three time estimates used with PERT?

> What are dummy activities? Why are they used in activity on arrow= (AOA) project networks?

> Define earliest start, earliest finish, latest finish, and latest start times.

> In December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a) How many hou

> Describe how expected activity times and variances can be computed in a PERT network.

> What is the use of Gantt charts in project management?

> What are some of the questions that can be answered with PERT and CPM?

> How can we determine the probability that a project will be completed by a certain date? What assumptions are made in this computation?

> What is the difference between the waterfall approach and agile project management?

> Name some of the widely used project management software programs.

> How the variance of the total project is computed in PERT?

> Would a project manager ever consider crashing a noncritical activity in a project network? Explain convincingly.

> Students are sometimes confused by the concept of critical path, and want to believe that it is the shortest path through a network. Convincingly explain why this is not so.

> What would a project manager have to do to crash an activity?

> Refer to Problems 1.12 and 1.13. Problem 1.12: Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not

> What is the significance of the critical path?

> What is the difference between an activity-on-arrow (AOA) network and an activity-on-node (AON) network? Which is primarily used in this chapter?

> Define work breakdown structure. How is it used?

> What are the three phases involved in the management of a large project?

> Explain the purpose of project organization.

> Give an example of a situation in which project management is needed.

> How would you summarize outsourcing trends?

> How must an operations strategy integrate with marketing and accounting?

> Given the discussion of Southwest Airlines in the text, define an operations strategy for that firm now that it has purchased AirTran.

> How does an OM strategy change during a product’s life cycle?

> Refer to Problem 1.12. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This added investment has a cost of $100 per month, but he w

> Identify the mission and strategy of your automobile repair garage. What are the manifestations of the 10 strategic OM decisions at the garage? That is, how is each of the 10 decisions accomplished?

> What global operations strategy is most descriptive of McDonald’s?

> What potential cost-saving advantages might firms experience by using outsourcing?

> There are three primary ways to achieve competitive advantage. Provide an example, not included in the text, of each. Support your choices.

> As a library or Internet assignment, identify the mission of a firm and the strategy that supports that mission.

> Describe how an organization’s mission and strategy have different purposes.

> Define strategy.

> Define mission.

> Coca-Cola is called a global product. Does this mean that Coca-Cola is formulated in the same way throughout the world? Discuss.

> List six reasons to internationalize operations.

> Based on the descriptions and analyses in this chapter, would Boeing be better described as a global firm or a transnational firm? Discuss.

> What are some of the possible consequences of poor outsourcing?

> How should a company select an outsourcing provider?

> What internal issues must managers address when outsourcing?

> As a library or Internet assignment, find the U.S. productivity rate (increase) last year for the (a) national economy, (b) manufacturing sector, and (c) service sector.

> Describe some of the actions taken by Taco Bell to increase productivity that have resulted in Taco Bell’s ability to serve “twice the volume with half the labor.”

> What are the five reasons productivity is difficult to improve in the service sector?

> Mass customization and rapid product development were identified as challenges to modern manufacturing operations. What is the relationship, if any, between these challenges? Can you cite any examples?

> What are the measurement problems that occur when one attempts to measure productivity?

> The U.S., and indeed much of the rest of the world, has been described as a “knowledge society.” How does this affect productivity measurement and the comparison of productivity between the U.S. and other countries?

> Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: a) What is the labor productivity per labor-hour for these tires at Lakefront Manufacturing? b) What is the mu

> Name four areas that are significant to improving labor productivity.

> Identify the 10 strategic operations management decisions.

> What are the three basic functions of a firm?

> Answer Question 4 for some other organization, perhaps an organization where you have worked.

> Figure 1.1 outlines the operations, finance/accounting, and marketing functions of three organizations. Prepare a chart similar to Figure 1.1 outlining the same functions for one of the following: a. a newspaper b. a drugstore c. a college library d. a s

> Kimpel Products makes pizza ovens for commercial use. James Kimpel, CEO, is contemplating producing smaller ovens for use in high school and college kitchens. The activities necessary to build an experimental model and related data are given in the follo

> Development of Version 2.0 of a particular accounting software product is being considered by Jose Noguera’s technology firm in Baton Rouge. The activities necessary for the completion of this project are listed in the following table:

> Three activities are candidates for crashing on a project network for a large computer installation (all are, of course, critical). Activity details are in the following table: a) What action would you take to reduce the critical path by 1 day? b) Assu

> What is the minimum cost of crashing the following project that Roger Solano manages at Slippery Rock University by 4 days? NORMAL CRASH TIME ACTIVITY (DAYS) (DAYS) TIME NORMAL CRASH IMMEDIATE COST COST PREDECESSOR(S) A 6 5 $ 900 $1,000 6 300 400 4

> Assume that the activities in Problem 3.11 have the following costs to shorten: A, $300/week; B, $100/week; C, $200/ week; E, $100/week; and F, $400/week. Assume also that you can crash an activity down to 0 weeks in duration and that every week you can

> George Kyparisis (using data from Problem 1.5) determines his costs to be as follows: Labor: $10 per hour Resin: $5 per pound Capital expense: 1% per month of investment Energy: $0.50 per BTU Show the percent change in productivity for one month last

> Using PERT, Adam Munson was able to determine that the expected project completion time for the construction of a pleasure yacht is 21 months, and the project variance is 4. a) What is the probability that the project will be completed in 17 months? b) W

> Four Squares Productions, a firm hired to coordinate the release of the movie Pirates of the Caribbean: On Stranger Tides (starring Johnny Depp), identified 16 activities to be completed before the release of the film. a) How many weeks in advance of the

> Rich Cole Control Devices, Inc., produces custom built relay devices for auto makers. The most recent project undertaken by Cole requires 14 different activities. Cole’s managers would like to determine the total project completion time

> The estimated times and immediate predecessors for the activities in a project at George Kyparis’s retinal scanning company are given in the following table. Assume that the activity times are independent. a) Calculate the expected ti

> Kelle Carpet and Trim installs carpet in commercial offices. Peter Kelle has been very concerned with the amount of time it took to complete several recent jobs. Some of his workers are very unreliable. A list of activities and their optimistic completio

> A renovation of the gift shop at Orlando Amway Center has six activities (in hours). For the following estimates of a, m, and b, calculates the expected time and the standard deviation for each activity: ACTIVITY m b A 11 15 19 B 27 31 41 18 18 18 D

> Ross Hopkins, president of Hopkins Hospitality, has developed the tasks, durations, and predecessor relationships in the following table for building new motels. Draw the AON network and answer the questions that follow. a) What is the expected (estima

> The Rover 6 is a new custom-designed sports car. An analysis of the task of building the Rover 6 reveals the following list of relevant activities, their immediate predecessors, and their duration: a) Draw a network diagram for the project. b) Mark the

> Dave Fletcher (see Problem 3.12) was able to determine the activity times for constructing his laser scanning machine. Fletcher would like to determine ES, EF, LS, LF, and slack for each activity. The total project completion time and the critical path s

> The following is a table of activities associated with a project at Rafay Ishfaq’s software firm in Chicago, their durations, and what activities each must precede: a) Draw an AON diagram of the project, including activity durations.

> George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is

> The activities described by the following table are given for the Howard Corporation in Kansas: a) Draw the appropriate AON PERT diagram for J.C. Howard’s management team. b) Find the critical path. c) What is the project completion t

> Task time estimates for the modification of an assembly line at Jim Goodale’s Carbondale, Illinois, factory are as follows: a) Draw the project network using AON. b) Identify the critical path. c) What is the expected project length?

> Roger Ginde is developing a program in supply chain management certification for managers. Ginde has listed a number of activities that must be completed before a training program of this nature could be conducted. The activities, immediate predecessors,

> James Lawson has decided to run for a seat as Congressman from the House of Representatives, District 34, in Florida. He views his 8-month campaign for office as a major project and wishes to create a work breakdown structure (WBS) to help control the de

> The work breakdown structure (WBS) for building a house (levels 1 and 2) is shown below: a) Add two level-3 activities to each of the level-2 activities to provide more detail to the WBS. b) Select one of your level-3 activities and add two level-4 act

> Briefly describe the contributions of the four individuals identified in the preceding question.

> Does Boeing practice a multinational operations strategy, a global operations strategy, or a transnational operations strategy? Support your choice with specific references to Boeing’s operations and the characteristics of each type of organization.

> Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Four firms have responded to its request for bids, and CEO Mohan Rao has started to perform an analysis on the scores his OM team

> Walker Accounting Software is marketed to small accounting firms throughout the U.S. and Canada. Owner George Walker has decided to outsource the company’s help desk and is considering three providers: Manila Call Center (Philippines),

> Fernando Garza’s firm wishes to use factor rating to help select an outsourcing provider of logistics services. a) With weights from 1–5 (5 highest) and ratings 1–100 (100 highest), use the following

> Why should one study operations management?

> Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled

> Identify how changes in the external environment affect the OM strategy for a company. For instance, discuss what impact the following external factors might have on OM strategy: a) Major increases in oil prices. b) Water- and air-quality legislation. c)

> Identify how changes within an organization affect the OM strategy for a company. For instance, discuss what impact the following internal factors might have on OM strategy: a) Maturing of a product. b) Technology innovation in the manufacturing process.

> Within the food service industry (restaurants that serve meals to customers, but not just fast food), find examples of firms that have sustained competitive advantage by competing on the basis of (1) cost leadership, (2) response, and (3) differentiation

> The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each not given in the text. Support your choices. (Hint: Note the examples provided in the text.)

> Based on the competitiveness ranking developed by the Global Competitiveness Index (www.weforum.org), rank the following countries from most competitive to least: Mexico, Switzerland, the U.S., and China.

> Based on the corruption perception index developed by Transparency International (www.transparency.org), rank the following countries from most corrupt to least: Venezuela, Denmark, the U.S., Switzerland, and China.

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