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Question: 1. Assume that you are part of

1. Assume that you are part of the management staff whose task is to develop this sketch plan. Using Microsoft Project, develop the PERT network as outlined above, identify the critical path, and determine the expected time to reach basic operational status at the new facility. 2. The board of directors has said that it would like to try to move on a Sunday to minimize interference with weekday traffic. If there are Sundays that fall 46, 53, 60, 67, and 74 days from now, determine the probability (using a normal distribution) of reaching basic operational status at the new location on the two Sundays that are closest to the expected time you calculated previously. 3. Briefly assess the potential problems you see in applying critical path analysis to the sketch plan for moving Whittier County Hospital. Whittier County Hospital After 50 years at its present location, Whittier County Hospital is preparing to move into a new building sometime in the near future, when construction and outfitting are completed. The hospital’s board of directors has appointed a special management committee to control the entire procedure, including coordination with outside agencies as well as internal departments. As a first step in its mission, the committee wishes to develop a base of information that will be used to (1) establish an initial sketch plan for proceeding through the detailed planning and moving phases and (2) provide a fundamental management and scheduling tool for day-to-day operations during the transition period. The management staff believes that a PERT analysis of a sketch plan would be very helpful to the committee’s under- standing of the moving process, so it begins to develop a network of activities and duration estimates for the task. After consultation with the general contractor at the building site, it is estimated that completion of construction and checking the newly installed equipment likely will take 50 more days, with 40 and 60 days being the optimistic and pessimistic estimates, respectively. At this point the structure will be vacated by the contractor and turned over to the board. Before this occurs, however, a detailed plan of action for each hospital department must be drawn up for approval by the Move Committee (as it is formally known). The staff esti- mates this will take at least 10 days, perhaps as many as 20 days, and most likely 15 days to develop and secure approval. Once the detailed plan has received an initial go-ahead, the staff will have a number of activities to perform before a trial run and subsequent evaluation of the plan are made: 1. Develop and distribute an information newsletter to all hospital employees outlining the general procedures, with specific procedures attached for each department; it is estimated that this will take at least 3, probably 4, and at most, 7 days. 2. Develop information and generate media coverage for the upcoming events; this is estimated to take at least (and probably) 2 days, and 3 days at most. 3. Negotiate with local EMS and private ambulance services for transferring the patients; this is estimated to take at least 10, probably 14, and at most, 20 days. 4. Negotiate with professional moving companies for transfer-ring equipment, records, and supplies; this is estimated to take at least 4, probably 5, and at most, 8 days. 5. Coordinate the procedures with, and determine the responsibilities of, the local police and fire departments; this is estimated to take at least 3, probably 5, and at most, 10 days. 6. Coordinate the admissions and exchange procedures during the transition period with other hospitals in the sur-rounding area; this is estimated to take at least 2, probably 3, and at most, 5 days. Once the construction and equipment checkouts are completed, the new facility must be cleaned thoroughly by hospital staff before the actual move so that it will conform to the required levels for such institutions. Also, after the contractor vacates the premises, the employees can be oriented to the layout and workings of the new building. Because this orientation process is very important, the management staff wants to ensure that it begins after the newsletter is distributed and that it is completed before the trial run of the move. The staff estimates that cleaning and orientation can occur at the same time without problems. Cleaning will take at least 2, probably 3, and at most, 5 days; the employee orientation will take at least 4, probably 5, and at most, 7 days. Although the actual trial run will take only 1 day, the entire activity, including evaluation, is estimated to need at least (and most likely) 3 days, with 5 days at most if serious problems are encountered. Once this step is finished, coordination of final plans and schedules with the patient and equipment carriers, local agencies, and area hospitals should take 2 days (3 at most). Finally, the completed schedules and procedures will be discussed in each department throughout the hospital on the day before moving day, and this discussion is expected to run the entire day because of the normal work schedules and tasks that all employees will be maintaining. For the moving day, the staff has broken the entire process into seven different activities for the sketch plan:
1. Assume that you are part of the management staff whose task is to develop this sketch plan. Using Microsoft Project, develop the PERT network as outlined above, identify the critical path, and determine the expected time to reach basic operational status at the new facility.
2. The board of directors has said that it would like to try to move on a Sunday to minimize interference with weekday traffic. If there are Sundays that fall 46, 53, 60, 67, and  74 days from now, determine the probability (using a  normal distribution) of reaching basic operational status at the new location on the two Sundays that are closest to the expected time you calculated previously.
3. Briefly assess the potential problems you see in applying critical path analysis to the sketch plan for moving Whittier County Hospital.

Whittier County Hospital 
After 50 years at its present location, Whittier County Hospital is preparing to move into a new building sometime in the near future, when construction and outfitting are completed. The hospital’s board of directors has appointed a special management committee to control the entire procedure, including coordination with outside agencies as well as internal departments. As a first step in its mission, the committee wishes to develop a base of information that will be used to (1) establish an initial sketch plan for proceeding through the detailed planning and moving phases and (2) provide a fundamental management and scheduling tool for day-to-day operations during the transition period.
The management staff believes that a PERT analysis of a sketch plan would be very helpful to the committee’s under- standing of the moving process, so it begins to develop a network of activities and duration estimates for the task. After consultation with the general contractor at the building site, it is estimated that completion of construction and checking the newly installed equipment likely will take 50 more days, with 40 and 60 days being the optimistic and pessimistic estimates, respectively. At this point the structure will be vacated by the contractor and turned over to the board.
Before this occurs, however, a detailed plan of action for each hospital department must be drawn up for approval by the Move Committee (as it is formally known). The staff esti- mates this will take at least 10 days, perhaps as many as 20 days, and most likely 15 days to develop and secure approval.
Once the detailed plan has received an initial go-ahead, the staff will have a number of activities to perform before a trial run and subsequent evaluation of the plan are made:
1. Develop and distribute an information newsletter to all hospital employees outlining the general procedures, with specific procedures attached for each department; it is estimated that this will take at least 3, probably 4, and at most, 7 days.
2. Develop information and generate media coverage for the upcoming events; this is estimated to take at least (and probably) 2 days, and 3 days at most.
3. Negotiate with local EMS and private ambulance services for transferring the patients; this is estimated to take at least 10, probably 14, and at most, 20 days.
4. Negotiate with professional moving companies for transfer-ring equipment, records, and supplies; this is estimated to take at least 4, probably 5, and at most, 8 days.
5. Coordinate the procedures with, and determine the responsibilities of, the local police and fire departments; this is estimated to take at least 3, probably 5, and at most, 10 days.
6. Coordinate the admissions and exchange procedures during the transition period with other hospitals in the sur-rounding area; this is estimated to take at least 2, probably 3, and at most, 5 days.
Once the construction and equipment checkouts are completed, the new facility must be cleaned thoroughly by hospital staff before the actual move so that it will conform to the required levels for such institutions. Also, after the contractor vacates the premises, the employees can be oriented to the layout and workings of the new building. Because this orientation process is very important, the management staff wants to ensure that it begins after the newsletter is distributed and that it is completed before the trial run of the move. The staff estimates that cleaning and orientation can occur at the same time without problems. Cleaning will take at least 2, probably 3, and at most, 5 days; the employee orientation will take at least 4, probably 5, and at most, 7 days.
Although the actual trial run will take only 1 day, the entire activity, including evaluation, is estimated to need at least (and most likely) 3 days, with 5 days at most if serious problems are encountered. Once this step is finished, coordination of final plans and schedules with the patient and equipment carriers, local agencies, and area hospitals should take 2 days (3 at most). Finally, the completed schedules and procedures will be discussed in each department throughout the hospital on the day before moving day, and this discussion is expected to run the entire day because of the normal work schedules and tasks that all employees will be maintaining.
For the moving day, the staff has broken the entire process into seven different activities for the sketch plan:

The staff members feel confident that basic operations will be fully under way at the new location once the first six activities are complete, and this is the critical goal established by the hospital’s board of directors. The new location, of course, will not be fully operational until the remaining, noncritical equipment and supplies are moved.

The staff members feel confident that basic operations will be fully under way at the new location once the first six activities are complete, and this is the critical goal established by the hospital’s board of directors. The new location, of course, will not be fully operational until the remaining, noncritical equipment and supplies are moved.





Transcribed Image Text:

Activity Administration, accounting, and business office Library and medical/personnel records Laboratory and purchasing/stores Housekeeping and food services Other equipment and supplies that must move same day as patients Move patients Noncritical equipment and supplies moved after patients Activity Duration, Days Most Likely 0.5 0.5 0.8 0.75 1.0 1.0 2.0 Optimistic 0.25 0.25 0.3 0.5 0.8 0.4 1.0 Pessimistic 1.0 0.75 1.0 1.3 1.2 1.0 2.5


> 14. Which among the following strategies is used by fast-food restaurants to reduce costs? a. Increase advertising via the Internet. b. Allowing the customer to play an active part in the service process. c. Increase prices. d. Increasing menu items to

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> 1. Data Envelopment Analysis (DEA) is a method for: a. Measuring a firm's quality performance by comparing it with other companies that are recognized as "best in class." b. Determining the feasibility of technological innovations in service operations.

> 11. Which quadrant in the matrix below represents attributes of a good service guarantee? No Conditions Many Conditions No Conditions Many Conditions  Complex Detailed (a) (b)  Clear Precise  (c) (d)   12. Which of the following is a strat

> 1. Which of the following dimensions of service quality is most important to customers? a. Empathy b. Assurance c. Reliability d. Tangibles 2. Which of the following is not an advantage of offering a service guarantee? a. It acts as a mechanism to differ

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> 1. The service package consists of five features. Which one of the features listed below is not included in the package? a. Explicit services b. Supporting facility c. Information d. Cost of service 2. The major input into a large public hospital from a

> 1. The corporate culture of a firm does not significantly influence the quality of the service it provides because the culture is internal and, therefore, not perceived by the customer. 2. Flexibility in meeting customer needs is the main reason that som

> 14. A service blueprint will not facilitate creative problem solving because it will be too rigid a definition of the service delivery system. 15. Investment banking is a financial service that has high complexity and high divergence. 16. Limited discret

> 1. The "line of visibility" found in a service blueprint separates the front office operations from the back office operations. 2. A factor that simplifies the design of service systems is the presence of the customer in the process. 3. A “line of intera

> 11. Selling information and developing new services are examples of the role that information technology plays in generating revenue. 12. Information technology can be used to promote customer loyalty. 13. The IRS has identified frequent-user programs

> 1. A characteristic of the overall cost leadership strategy is the incurring of start-up losses to build market share. 2. On-line networks between suppliers and their customers create a barrier to entry. 3. When pursuing a differentiation strategy, a ser

> 31. A highly scalable firm such as Kelly Blue Book (kkb.com) requires a call center. 32. Scalability is enhanced with self-service. 33. Customers seldom take note of firms that are leaders in the sustainability movement. 34. Recycling paper and reducing

> 11. The single important attribute of a project manager is leadership ability. 12. Schedule variance is the difference between budgeted cost for work performed and actual cost of work performed. 13. The term calendar is used in project management to ke

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> 21. World-class service operations strive to replace workers with enhanced automation. 22. Firms classified as "available for service" view quality improvement efforts with disdain. 23. For a firm achieving "journeyman" competitive status, the back-offic

> 1. Point-of-sale scanning became feasible only when industry agreed upon a universal system of bar coding. 2. One role of holding inventory is to hedge against anticipated increases in the cost of the inventoried items. 3. Inventory management is concern

> 11. Fast-food restaurants use a causal model to forecast daily demand for menu items. 12. Subjective models are used to assess the future impact of changing demographics. 13. Costs for preparing time-series forecasts generally are lower than for other mo

> 1. Because of the nontangible nature of a service, forecasting does not play as important a role in service operations as in manufacturing operations. 2. The trade-off to be made with respect to accuracy is between the costs of inaccurate forecasts and t

> 14. When Xerox Corporation introduced the Model 9200 Duplicating System, the level of service dipped because technical representatives were assigned to territories. 15. The average time a customer should expect to wait can be calculated using just the me

> 1. Capacity planning decisions deal implicitly with decisions on the cost of making consumers wait and the extent to which these costs can be borne. 2. A system is said to be in a transient state when the values of its governing parameters in this state

> 1. Waiting is often seen as psychological punishment because the consumer is aware of the opportunity cost of waiting time and the resulting loss of earnings. 2. The net result of waiting, apart from the boredom and frustration experienced by the consume

> 12. Yield management is a pricing and capacity allocation system that was developed by American Airlines. 13. Yield management is a strategy that manages both demand and capacity. 14. An example of segmenting demand is seen when movie theaters offer mati

> 1. The use of a ski-resort hotel for business conventions during the summer is an example of using the complementary service strategy. 2. Overbooking is a strategy that can be used to smooth demand. 3. The strategy of segmenting demand to reduce variatio

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> 1. Network development is a consideration in the decision to plan a multinational service. 2. When a firm offers multiple services at a single location, it is using a clustered service strategy. 3. A franchise is a low risk investment, because the franch

> 14. Retail and wholesale trade had the greatest percentage of U.S. employment by industry in 2014. 15. From a marketing perspective, services, unlike goods, involve transfer of ownership. 16. It is convenient and often necessary to combine the operations

> 14. Customer-supplier duality acknowledges the customer inputs in a service relationship. 15. A bank is an example of a service provider with a single-level bi-directional service supply relationship. 16. Transfer enhances productive capacity by enabling

> 1. In the physical goods supply chain, information moves to the left and material to the right. 2. Customer demand variability is the most difficult factor to determine in a goods supply chain. 3. In the past, the flow of goods in a physical supply chain

> 11. Geographic information systems are a visual method of displaying data. 12. Cross-median is an approach to the location of a single facility using the metropolitan metric to maximize the total distance traveled. 13. Marketing intermediaries are busin

> 1. Finding a unique set of sites in a multi-location problem is a simple extension of the methods used for single facility location. 2. When a customer travels to the service facility, the direct cost that is incurred is the decrease in potential custome

> 1. DEA circumvents the need to develop standard costs for each service when comparing the efficiency of multiple service units that provide similar services. 2. Data envelopment analysis (DEA) is best used in an environment of low divergence and high com

> 11. Serving complimentary drinks on a delayed flight is an example of empathy being shown by the service personnel to the irate customer. 12. In the service quality gap model, GAP1 arises because of the management’s lack of understanding about how custom

> 1. The concept of quality service deployment is based on the belief that services should be designed to reflect customer requirements. 2. Being meaningful and easy to invoke are important elements of a good unconditional service guarantee. 3. A process i

> 14. The procedure to improve flow distance in a process layout by arranging the relative location of departments is known as operations sequence analysis. 15. A product layout affords some degree of customization. 16. Mid-Columbia Medical Center has a sp

> 1. The servicescape can influence perceived quality. 2. The design of facilities is dependent entirely on the construction and operating costs of the facilities. 3. A well-conceived servicescape can communicate desired customer behavior. 4. Heuristic alg

> 14. Internet banking is a service that would appeal to the economizing customer, the personalizing customer, and the convenience customer. 15. Efficiency- versus-satisfaction is the possible source of conflict in the relationship between the customer and

> 1. Services are deeds, processes, and performances. 2. The Clark-Fisher hypothesis notes the shift of employment from one sector of the economy to another. 3. The fall in employment in the agricultural sector is the primary reason for the increase in se

> 1. Who are Goodwill’s customers and how have their demo-graphics changed over time? 2. How should the introduction of for-profit thrifts affect Goodwill’s decisions about the role of customer service? 3. How can Goodwi

> 1. Marketing analysts use market position maps to display visually the customers’ perceptions of a firm in relation to its competitors regarding two attributes. Prepare a market position map for Alamo Draft house using “food quality” and “movie selection

> 1. For the Burger Palace example, perform a complete analysis of efficiency improvement alternatives for unit S2, including determination of a composite reference unit. 2. For the Burger Palace example, perform a complete analysis of efficiency improveme

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> 1. Assuming that the cost of stock out is the lost contribution of one dessert, how many portions of Sweet Revenge should the chef prepare each weekday? 2. Based on Martin Quinn’s estimate of other stock out costs, how many servings sho

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> On the morning of November 10, 2002, Jon Thomas, market analyst for the Mexico leisure markets, canceled more than 300 seats “illegally” reserved on two flights to Acapulco. All of the seats on Jon’s Acapulco flights were booked by the same sales represe

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> 1. Assume that you are the assistant to the manager for operations at the FAA. Use the techniques of work shift scheduling to analyze the total workforce requirements and days-off schedule. For the primary analysis, assume that a. Operator requirements w

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> 1. What features of the 7-Eleven Japan distribution system illustrate the concept of the bidirectional service supply relationship? 2. Does the 7-Eleven Japan distribution system exhibit scalability economies? 3. How does the 7-Eleven example of B2C e-co

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> 1. Utilizing a spreadsheet version of the Huff location model (with λ = 1.0), recommend a store size and location for AFI. Assuming that AFI does not wish to consider a store that is smaller than 10,000 square feet, assess the store sizes (b

> Joan Taylor, the administrator of Life-Time Insurance Company, which is based in Buffalo, New York, was charged with establishing a health maintenance organization (HMO) satellite clinic in Austin, Texas. The HMO concept would offer Austin residents an a

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> 1. Prepare an -chart and R-chart for complaints, and plot the average complaints for each crew during the nine-month period. Do the same for the performance ratings. What does this analysis reveal about the service quality of CSI’s

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> 1. How has Enterprise Rent-A-Car (ERAC) defined its service differently than that of the typical national car rental company? 2. What features of its business concept allow ERAC to compete effectively with the existing national rental car companies? 3. U

> 1. Describe the service organization culture at Amy’s Ice Cream. 2. What are the personality attributes of the employees who are sought by Amy’s Ice Cream? 3. Design a personnel selection procedure for Amy’s Ice Cream using abstract questioning, a situat

> 1.How does Amazon.com illustrate the sources of service sector growth? Comment on information technology, the Internet as an enabler, innovation, and changing demographics. 2.What generic approach(s) to service design does Amazon.com illustrate, and what

> 1. Prepare a service blueprint for Commuter Cleaning. 2. What generic approach to service system design is illustrated by Commuter Cleaning, and what competitive advantages does this design offer? 3. Using the data in Table 3.5, calculate a break-eve

> 1. Describe the growth strategy of Federal Express. How did this strategy differ from those of its competitors? 2. What risks were involved in the acquisition of Tiger International? 3. In addition to the question of merging FedEx and Flying Tigers pilot

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> Conduct a Google search on “project finance” and find employment opportunities in project finance. What is the role of finance in projects?

> Could firms in the “world-class service delivery” stage of competitiveness be described as “learning organizations’?

> Discuss the difference between time variance, cost variance, and schedule variance.

> Explain why the PERT estimate of expected project duration always is optimistic. Can we get any feel for the magnitude of this bias?

> Are Gantt charts still viable project management tools? Explain.

> Illustrate the four stages of team building from your own experience.

> Give an example that demonstrates the trade-off inherent in projects among cost, time, and performance.

> Identify dependent and independent demand for an airline and a hospital.

> Service capacity (i.e., seats on an aircraft) has characteristics similar to inventories. What inventory model would apply?

> How is a service level determined for most inventory items?

> How valid are the assumptions for the simple EOQ model?

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