The following production flow shows Parts E, I, and N; Subassembly O; and the final assembly for Product P. A to B to C to D to E F to G to H to I J to K to L to M to N E and I to O N and O to P B involves a bottleneck operation, and M involves a CCR. a. Draw the process flow. b. Where would you locate buffer inventories? c. Where would you place inspection points? d. Where would you stress the importance of quality production?
> A certain custom engraving shop has traditionally had orders for between 1 and 50 units of whatever a customer orders. A large company has contacted this shop about engraving “reward” plaques (which are essentially identical to each other). It wants the
> What is the term used to describe arrangements to move clinical information across various information systems while still maintaining the meaning of the information being exchanged?
> In a data box on a value stream map, what do the abbreviations CT and C/O mean?
> Distinguish between a channel and a phase.
> Which scheduling process drives requirements in the MRP process?
> What service industry has impressed you the most with its innovativeness?
> What mode of transportation is involved in the movement of the greatest number of products?
> Daily demand for a product is 100 units, with a standard deviation of 25 units. The review period is 10 days and the lead time is 6 days. At the time of review, there are 50 units in stock. If 98 percent service probability is desired, how many units sho
> What high-level position manager is responsible for working with the CEO and company president to determine the company’s competitive strategy?
> Define the service package of your college or university. What is its strongest element? What is its weakest one?
> Where would you place Shouldice Hospital on the product–process framework (see Chapter 5 case, “Shouldice Hospital—A Cut Above”)? What are the implications of adding a specialty such as cosmetic surgery?
> What recent changes have caused supply chain management to gain importance?
> Is it possible to achieve zero inventories? Why or why not?
> What was the first major project management information system that is now commonly used for managing very large projects?
> The following scenario was written by a reporter who became a Taco Bell worker for a few hours to experience what it’s like to work at one of the most high-tech quick-serve restaurant chains in the world. As you read, visualize how you could anal
> Recently, Phil Harris, the production control manager at Brunswick, read an article on time-phased requirements planning. He was curious about how this technique might work in scheduling Brunswick’s engine assembly operations and d
> Research and compare the inventory turnover ratios of three large retailers: Walmart, Target, and Nordstrom’s. Use the same financial web site for all three, and compare numbers from the same time frame. What do these ratios tell you? Are you surprise
> Why is it desirable to increase a company’s inventory turnover ratio?
> Some people tend to use the terms effectiveness and efficiency interchangeably, though we’ve seen they are different concepts. But is there any relationship at all between them? Can a firm be effective but inefficient? Very efficient but essentially i
> Define process batch and transfer batch and their meaning in each of these applications: MRP, JIT and bottleneck or constrained resource logic.
> Why might managers resist buying a more expensive piece of equipment that is known to have a lower TCO than a less expensive item?
> What is the current “hot area” for operations consultants in both manufacturing and services?
> Have you ever purchased a product based on purchase price alone and were surprised by the eventual TCO, either in money or in time? Describe the situation
> Describe how outsourcing works. Why would a firm want to outsource?
> As a supplier, which factors would you consider about a buyer (your potential customer) to be important in setting up a long-term relationship?
> As in manufacturing, productivity and capacity utilization are important performance measures in health care operations. What are the similarities and differences in how these measures might be used in the two different industries?
> Describe the differences between functional and innovative products.
> Some have argued that for hospitals, both medical schools and nursing schools should be considered part of the supply chain. Do you agree?
> Remote diagnosis uses electronic devices for diagnosing patients at a distance. What is another term used to refer to this practice?
> What is the MRP term for the time periods used in planning?
> What could a hospital learn from benchmarking a Ritz-Carlton Hotel? Southwest Airlines? Disneyland?
> Would you expect the Poisson distribution to be a good approximation of a. Runners crossing the finish line in the Boston Marathon? b. Arrival times of the student in your OM class? c. Arrival times of the bus to you stop at school?
> How does a physician-driven supply chain differ from a typical materials supply chain?
> Could a hospital or physician offer a service guarantee? Explain.
> You have a job assisting the Medical Director at a Family Medical Clinic in New York City. The Medical Director is concerned about the long wait times of patients visiting the clinic and would like to improve operations. The following are facts about the
> List five major reasons why a new electronic components manufacturing firm should move into your city or town?
> Following are the process flow sequences for three products: A, B, and C. There are two bottleneck operations—on the first leg and fourth leg—marked with an X. Boxes represent processes, which may be either machine or
> For the four basic configurations that follow, assume that the market is demanding product that must be processed by both Resource X and Resource Y for Cases I, II, and III. For Case IV, both resources supply separate but dependent markets; that is, the
> The following production flow shows Parts O, Q, and T; Subassembly U; and the final assembly for Product V. M to N to O P to Q R to S to T O and Q to U U and T to V N involves a bottleneck operation, and S involves a capacity-constrained resource. Draw t
> A steel product is manufactured by starting with raw material (carbon steel wire) and then processing it sequentially through five operations using machines A to E, respectively (see following table). This is the only use that the five machines are put t
> List at least four characteristics of a well-designed service system.
> As the degree of customer contact increases in a service operation, what generally happens to the efficiency of the operation?
> Compare and contrast JIT, MRP, and synchronized manufacturing, stating their main features, such as where each is or might be used, amounts of raw materials and work-in-process inventories, production lead times and cycle times, and methods for control.
> An equipment manufacturer has the following steps in its order entry process: a. Take the order and fax it to order entry. b. Enter the order into the system (10 percent unclear or incorrect). c. Check stock availability (stock not available for 15 perce
> Jill’s Job Shop buys two parts (Tegdiws and Widgets) for use in its production system from two different suppliers. The parts are needed throughout the entire 52-week year. Tegdiws are used at a relatively constant rate and are ordered
> The M–N plant manufactures two different products: M and N. Selling prices and weekly market demands are shown in the following diagram. Each product uses raw materials with costs as shown. The plant has three different machines: A, B,
> The following diagram shows the flow process, raw material costs, and machine processing time for three products: A, B, and C. There are three machines (W, X, and Y) used in the production of these products; the times shown are in required minutes of pro
> How might the following business specialists use learning curves: accountants, marketers, financial analysts, personnel managers, and computer programmers?
> Here are average process cycle times for several workcenters. State which are bottlenecks, nonbottlenecks, and capacity-constrained resources. Processing time Setup time Processing time Setup Idle Processing time Setup Idle Processing time Setup Idl
> What is required to make cross-docking a viable solution for a logistics provider?
> What is the purpose of value stream mapping? How can this be achieved?
> The accompanying figure shows a production network model with the parts and processing sequences. State clearly on the figure (1) where you would place inventory; (2) where you would perform inspection; and (3) where you would emphasize high-quality outp
> Operations and supply chain management is concerned with the design and management of the entire system that has what function?
> What is the process to ensure that all of the needs for a particular item are calculated at the same time in the MRP process?
> Willard Lock Company is losing market share because of horrendous due-date performance and long delivery lead times. The company’s inventory level is high and includes many finished goods that do not match the short-term orders. Materia
> As shown in the chapter, the effect of learning in a given system eventually flattens out over time. At that point in the life of a system, learning still exists, though its effect continues to diminish. Beyond that point is it impossible to significant
> What are the three financial measurements necessary to adequately measure a firm’s performance?
> Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about two days. Before he leaves, he calls in the order to the GHC Supply Store. He uses ch
> What is the name of the software Goldratt developed to implement his idea of TOC?
> The solution to coping with natural differences between marketing and production functions is to do what two things?
> There is an 82 percent chance the following project can be completed in X weeks or less. What is X? B D A C E Activity Most Optimistic Most Likely Most Pessimistic A 2 11 B. 3 3 6. 10 4 7 10 3. 00
> Cost accounting logic can lead managers to keep their resources busy all the time, increasing productivity with no regard to demand. What is the negative result from this effect?
> What type of manufacturing environment is JIT limited to?
> What are the three elements that require integration to be successful in operations and supply chain management?
> How does synchronous manufacturing differ from MRP with respect to scheduling?
> What is the term for a group of project activities that are assigned to a single organizational unit?
> What relationship is there between learning curves and capacity analysis?
> Consider the following tasks, times, and predecessors for an assembly of set-top cable converter boxes. Given a cycle time of four minutes, develop two alternative layouts. Use the longest task time rule and the largest number of following tasks as a s
> What are the 5 Ps of production in which firms typically seek operations consulting?
> What classic operational measurement does Goldratt redefine as “all the actions that bring a company closer to its goals?”
> What is the term which refers to the entire production process working in harmony to achieve the profit goal of the firm?
> Charlie’s Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every four weeks to take orders. Because the orders are shipped directly from Italy, they take th
> When cycle counting inventory, why do experts recommend a lower acceptable tolerance for “A” items than “B” or “C” items?
> Define and explain the cause or causes of a moving bottleneck.
> A company has recently implemented an automated online billing and payment processing system for orders it ships to customers. As a result, it has reduced the average number of days between billing a customer and receiving payment by 10 days. How will
> Recent outsourcing of parts and services that had previously been produced internally is addressed by which current issue facing operations and supply management today?
> Discuss process batch and transfer batches. How might you determine what the sizes should be?
> Discuss why transfer batches and process batches many times may not and should not be equal.
> What is another common name for the bill of materials?
> State the global performance measurements and operational performance measurements and briefly define each of them. How do these differ from traditional accounting measurements?
> A ride at an amusement park is an example of a service operation where there is direct contact between the customer and server, but little variation in the service process -- neither the customer nor server has much discretion in how the service will be
> The chapter presents multiple techniques that service firms can use to make their processes leaner. Which technique is demonstrated by a restaurant that offers special discounts mid-week to attract more demand during a traditionally slow period?
> What term is used to identify the difference between the number of units of an item listed on the master schedule and firm customer orders?
> What is the purpose of classifying items into groups, as the ABC classification does?
> What are the sources of demand in an MRP system? Are these dependent or independent, and how are they used as inputs to the system?
> “MRP just prepares shopping lists. It does not do the shopping or cook the dinner.” Comment.
> A manufacturer has decided to locate a new factory in the northwest U.S. to serve growing demand in that market. They have narrowed the potential sites down to two finalists, City A and City B. They have developed a list of important factors to conside
> How does Goldratt’s Theory of Constraints (TOC) differ from other current approaches to continuous improvement in organizations? How is it similar?
> Explain the need for time fences in the master production schedule
> Discuss the importance of the master production schedule in an MRP system.
> The process of running a consulting firm is analogous to what type of manufacturing process structure?
> What is meant when we say that the least total cost (LTC) and least unit cost (LUC) methods are dynamic lot-sizing techniques?
> Where would you place a drive-in church, a campus food vending machine, and a bar’s automatic mixed drink machine on the service-system design matrix?
> Planning orders on a lot-for-lot is commonly done because it is simple and intuitive. It also helps to minimize holding costs as you are only ordering what is needed when it is needed. So far it sounds like a good idea. Are there any disadvantages to
> Contrast the significance of the term lead time in the traditional EOQ context and in an MRP system.
> Should safety stock be necessary in an MRP system with dependent demand? If so, why? If not, why do firms carry it anyway?
> Consider the EVM charts in Exhibit 4.12. Are there any other measures you might want to use in the management of a project? What are some controllable variables that may affect the costs being tracked? exhibit 4.12 Earned Value Management Charts Ch
> A manufacturing company has entered into a new contract with a major supplier of raw materials used in the manufacturing process. Under the new arrangement, called vendor managed inventory, the supplier manages their raw material inventory inside the man
> Which type of inventory system would you use in the following situations? a. Supplying your kitchen with fresh food. b. Obtaining a daily newspaper. c. Buying gas for your car. To which of these items do you impute the highest stockout cost?
> Which assumptions are necessary to employ the formulas given for Model 1?
