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.
> Of the several points where inspection may be necessary, which apply especially well to manufacturing?
> Which 3 of Deming’s 14 points do you think are most critical to the success of a TQM program? Why?
> In this chapter, we have suggested that building quality into a process and its people is difficult. Inspections are also difficult. To indicate just how difficult inspections are, count the number of E s (both capital E and lowercase e ) in the OM in Ac
> What strategic advantages does computer-aided design provide?
> 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,
> Describe four organizational approaches to product development. Which of these is generally thought to be best?
> Why are documents for service useful? Provide examples of four types.
> Use the Web or other sources to identify what an ERP vendor (SAP, PeopleSoft/Oracle, American Software, etc.) includes in these software modules: a) Customer relationship management. b) Supply-chain management. c) Product life cycle management.
> Use the Web or other sources to: a) Find stories that highlight the advantages of an ERP system. b) Find stories that highlight the difficulties of purchasing, installing, or failure of an ERP system.
> What are the disadvantages of ERP?
> What are the distinctions between MRP, DRP, and ERP?
> What is the rationale for (a) a phantom bill of material, (b) a planning bill of material, and (c) a pseudo bill of material?
> What functions of the firm affect an MRP system? How?
> What are the options for the production planner who has: a) scheduled more than capacity in a work center next week? b) a consistent lack of capacity in that work center?
> What impact does ignoring carrying cost in the allocation of stock in a DRP system have on lot sizes?
> 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
> Which is the best lot-sizing policy for manufacturing organizations?
> How does MRP II differ from MRP?
> The structure of MRP systems suggests “buckets” and infinite loading. What is meant by these two terms?
> How does aggregate planning in service differ from aggregate planning in manufacturing?
> What are the advantages and disadvantages of varying the size of the work force to meet demand requirements each period?
> How does revenue management impact an aggregate plan?
> What can purchasing do to implement just-in-time deliveries?
> What are blanket orders? How do they differ from invoice less purchasing?
> How does Walmart use drop shipping?
> What is the difference between postponement and channel assembly?
> 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
> 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 yea
> How does Darden Restaurants, described in the Global Company Profile, find competitive advantage in its supply chain?
> Research and briefly describe the Delphi technique. How would it be used by an employer you have worked for?
> Briefly describe the steps that are used to develop a forecasting system.
> CEO John Goodale, at Southern Illinois Power and Light, has been collecting data on demand for electric power in its western sub region for only the past 2 years. Those data are shown in the table below. To plan for expansion and to arrange to borrow pow
> 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.
> How can we determine the probability that a project will be completed by a certain date? What assumptions are made in this computation?
> What global operations strategy is most descriptive of McDonald’s?
> Describe the meaning of slack, and discuss how it can be determined.
> Briefly describe the contributions of the four individuals identified in the preceding question.
> Describe how expected activity times and variances can be computed in a PERT network.
> How must an operations strategy integrate with marketing and accounting?
> Grace Greenberg, production planner for Science and Technology Labs, in New Jersey, has the master production plan shown below: Lead time = 1 period; setup costs = $200; holding cost = $10 per week; stockout cost = $10 per week. Develop an ordering pla
> M. de Koster, of Rene Enterprises, has the master production plan shown below: Lead time = 1 period; setup cost = $200; holding cost = $10 per week; stockout cost = $10 per week. Your job is to develop an ordering plan and costs for: a) Lot-for-lot. b)
> Develop a POQ solution and calculate total relevant costs for the data in the preceding table. Data Table for Problems 14.22 through 14.25* 1 2 3 4 5 6 7 8 9 10 11 12 PERIOD Gross requirements 30 40 30 70 20 10 80 50 *Holding cost = $2.50/unit/week;
> Develop an EOQ solution and calculate total relevant costs for the data in the preceding table. Data Table for Problems 14.22 through 14.25* 1 2 3 4 5 6 7 8 9 10 11 12 PERIOD Gross requirements 30 40 30 70 20 10 80 50 *Holding cost = $2.50/unit/week;
> Heather Adams, production manager for a Colorado exercise equipment manufacturer, needs to schedule an order for 50 UltimaSteppers, which are to be shipped in week 8. Subscripts indicate quantity required for each parent. Assume lot-for-lot ordering. Bel
> You have just been notified via fax that the lead time for component G of product A (Problem 14.15 and Figure 14.14) has been increased to 4 weeks. a) Which items have changed, and why? b) What are the implications for the production plan? c) As producti
> Based on the data in Figure 14.13, complete a net material requirements schedule for: a) All items (10 schedules in all), assuming the requirement for each BOM item is 1. b) All 10 items, assuming the requirement for all items is 1, except B, C, and F, w
> As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and
> 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.
> Southeastern Airlines’s daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120 people. In the past, the airline has priced every seat at $140 for the one-way flight. An average of 80 passengers are on each flight. The va
> Refer to the CPA firm in Problem 13.24. In planning for next year, Cohen estimates that billable hours will increase by 10% in each of the 6 months. He therefore proceeds to hire a fifth CPA. The same regular time, overtime, and outside consultant (i.e.,
> Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs can together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours
> Dwayne Cole, owner of a Florida firm that manufactures display cabinets, develops an 8-month aggregate plan. Demand and capacity (in units) are forecast as follows: The cost of producing each unit is $1,000 on regular time, $1,300 on overtime, and $1,8
> José Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a “showpiece” for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast
> Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. She has put together the following demand cost data: Yu decides that the initial inventory of 250 units will incur the 20¢
> Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: QUARTER………â
> The S&OP team (see Problem 13.9) is considering two more mixed strategies. Using the data in Problem 13.9, compare plans C and D with plans A and B and make a recommendation. Plan C: Keep the current workforce steady at a level producing 1,300 units per
> Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data: **Note that there is no holding cost for June. What will each of the two following strategies cost? a
> 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
> Hill’s operations manager (see Problems 13.3 through 13.5) is also considering two mixed strategies for January– August: Produce in overtime or subcontracting only when there is no inventory. Plan D: Keep the current workforce stable at producing 1,600 u
> The president of Hill Enterprises, Terri Hill, projects the firm’s aggregate demand requirements over the next 8 months as follows: Her operations manager is considering a new plan, which begins in January with 200 units on hand. Stoc
> Develop another plan for the Mexican roofing manufacturer described in Examples 1 to 4. a) For this plan, plan 5, the firm wants to maintain a constant workforce of six, using subcontracting to meet remaining demand. Is this plan preferable? b) The same
> Prepare a graph of the monthly forecasts and average forecast demand for Chicago Paint Corp., a manufacturer of specialized paint for artists. MONTH PRODUCTION DAYS DEMAND FORECAST January 22 1,000 February 18 1,100 March 22 1,200 April 21 1,300 May
> How would you summarize outsourcing trends?
> What are the five reasons productivity is difficult to improve in the service sector?
> Arrow Distributing Corp. (see Table 11.9) likes to track inventory by using weeks of supply as well as by inventory turnover. a) What is its weeks of supply? b) What percent of Arrow’s assets are committed to inventory? c) What is Arrow’s inventory turno
> Using sources from the Internet, identify some of the problems faced by a company of your choosing as it moves toward, or operates as, a virtual organization. Does its operating as a virtual organization simply exacerbate old problems, or does it create
> Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit
> Given the discussion of Southwest Airlines in the text, define an operations strategy for that firm now that it has purchased AirTran.
> 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),
> How does an OM strategy change during a product’s life cycle?
> As the Cottrell Bicycle Co. of St. Louis completes plans for its new assembly line, it identifies 25 different tasks in the production process. VP of Operations Jonathan Cottrell now faces the job of balancing the line. He lists precedences and provides
> Samuel Smith’s company wants to establish an assembly line to manufacture its new product, the iStar phone. Samuel’s goal is to produce 60 iStars per hour. Tasks, task times, and immediate predecessors are as follows:
> The pre-induction physical examination given by the U.S. Army involves the following seven activities: These activities can be performed in any order, with two exceptions: Medical history must be taken first, and Exit medical evaluation is last. At pre
> Suppose production requirements in Solved Problem 9.2 increase and require a reduction in cycle time from 8 minutes to 7 minutes. Balance the line once again, using the new cycle time. Note that it is not possible to combine task times so as to group tas
> Dr. Lori Baker, operations manager at Nesa Electronics, prides herself on excellent assembly-line balancing. She has been told that the firm needs to complete 96 instruments per 24-hour day. The assembly-line activities are: a) Draw the precedence diag
> Because of the expected high demand for Mach 10, Creative Leisure has decided to increase manufacturing time available to produce the Mach 10 (see Problem 9.18). a) If demand remained the same but 300 minutes were available each day on the assembly line,
> The Mach 10 is a one-person sailboat manufactured by Creative Leisure. The final assembly plant is in Cupertino, California. The assembly area is available for production of the Mach 10 for 200 minutes per day. (The rest of the time it is busy making oth
> Tailwind, Inc., produces high-quality but expensive training shoes for runners. The Tailwind shoe, which sells for $210, contains both gas- and liquid-filled compartments to provide more stability and better protection against knee, foot, and back injuri
> The following table details the tasks required for Indiana-based Frank Pianki Industries to manufacture a fully portable industrial vacuum cleaner. The times in the table are in minutes. Demand forecasts indicate a need to operate with a cycle time of 10
> 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
> The Action Toy Company has decided to manufacture a new train set, the production of which is broken into six steps. The demand for the train is 4,800 units per 40-hour workweek: a) Draw a precedence diagram of this operation. b) Given the demand, what
> Sue Helms Appliances wants to establish an assembly line to manufacture its new product, the Micro Popcorn Popper. The goal is to produce five poppers per hour. The tasks, task times, and immediate predecessors for producing one Micro Popcorn Popper are
> Illinois Furniture, Inc., produces all types of office furniture. The “Executive Secretary” is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair sells for $130. There
> Stanford Rosenberg Computing wants to establish an assembly line for producing a new product, the Personal Digital Assistant (PDA). The tasks, task times, and immediate predecessors for the tasks are as follows: Rosenberg’s goal is to
> After an extensive product analysis using group technology, Leon Bazil has identified a product he believes should be pulled out of his process facility and handled in a work cell. Leon has identified the following operations as necessary for the work ce
> Six processes are to be laid out in six areas along a long corridor at Rita Gibson Accounting Services in Daytona Beach. The distance between adjacent work centers is 40 feet. The number of trips between work centers is given in the following table: a)
> You have just been hired as the director of operations for Reid Chocolates, a purveyor of exceptionally fine candies. Reid Chocolates has two kitchen layouts under consideration for its recipe making and testing department. The strategy is to provide the
> Adam Munson Manufacturing, in Gainesville, Florida, wants to arrange its four work centers so as to minimize interdepartmental parts handling costs. The flows and existing facility layout are shown in Figure 9.19. For example, to move a part from Work Ce
> Roy Creasey Enterprises, a machine shop, is planning to move to a new, larger location. The new building will be 60 feet long by 40 feet wide. Creasey envisions the building as having six distinct production areas, roughly equal in size. He feels strongl
> A Missouri job shop has four departments—machining (M), dipping in a chemical bath (D), finishing (F), and plating (P)—assigned to four work areas. The operations manager, Mary Marrs, has gathered the following data fo
> 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
> 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?
> The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air (BIA), KLM, Air France, Alitalia, and Swiss International Air. With ambitious expansion plans, BIA has decided it needs a sec
> Eagle Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atlanta (A), Baltimore (B), Chicago (C), or Dallas (D). The factors, scores, and weights follow: a) Using
> Todd’s Direct, a major TV sales chain headquartered in New Orleans, is about to open its first outlet in Mobile, Alabama, and wants to select a site that will place the new outlet in the center of Mobile’s population b
> A chain of home health care firms in Louisiana needs to locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scattered throughout the state, as detailed in the following table. E
> The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub. a) Near which map coordinates should the hub be located? b) If the shipments from city A triple, how does this chang
> Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum cost site, where cost is measured by the
