Question: Compute MSE, MAD, and MAPE (Equations 9.

> A fast-food restaurant has a drive-through window and during peak lunch times can handle a maximum of 50 cars per hour with one person taking orders, assembling them, and acting as cashier. The average sale per order is $9.00. A proposal has been made to

> A factory produces 10,000 desk staplers each week. The equipment used costs $50,000 and will remain productive for three years. The labor cost per year is $180,000. a. What is the productivity measure of “units of output per dollar of input” averaged ove

> A computer software firm provides a 20' x 30' office for its six systems analysts and plans to hire two additional analysts. To maintain a 100-square-foot working space per analyst, the firm’s owner-manager is considering expansion. The cost of expansion

> A hamburger factory produces 60,000 hamburgers each week. The equipment used costs $10,000 and will remain productive for four years. The labor cost per year is $13,500. a. What is the productivity measure of “units of output per dollar of input” average

> A major airline is attempting to evaluate the effect of recent changes it has made in scheduling flights between New York City and Los Angeles. Data available are shown below: Using January as the base period, compute a productivity index for January and

> Productivity measures for a manufacturing plant over a six-month period follow: Using January as the base period, compute a productivity index for February to June, and comment on what those productivity indexes tell about the productivity trend.

> Each day, a FedEx competitor processes approximately 70,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a 5-day week (see the “FedEx: Measuring Service Performance” box).

> Cost-containment activities have become particularly important to hospital operations managers, stimulated by major revisions in health care reimbursement policies and significant growth in marketing activities by private sector health care organizations

> When the value of a loyal customer (VLC) market segment is high, should these customers be given premium goods and services for premium prices? If the VLC is low, should they be given less service? Explain.

> Under which perspective of the balanced scorecard would you classify each of the following measurements? a. On-time delivery to customers b. Time to develop the next generation of products c. Manufacturing yield d. Engineering efficiency e. Quarterly

> Revenue or costs per passenger mile are two key performance measures in the airline industry. Research their use in this industry and prepare a one-page paper summarizing how they are used and why they are so important.

> Discuss some analytical or graphical approaches that organizations can use for analyzing performance data based on your experience and previous coursework.

> Research and write a short paper on how some organization applies the five dimensions of service quality.

> Interview managers at a local company to identify the key business measures (financial, market, supplier, employee, process, information, innovation, etc.) for that company. What quality indicators does that company measure? What cause-and-effect (interl

> Select an organization you are familiar with or have an interest in and write a short two-page paper describing key performance metrics in that industry and firm using the format of Exhibit 2.1.

> What types of performance measurements might be used to evaluate a fraternity or student organization?

> If a coffee shops average transaction price is $4.00, their gross margin is 60 percent, the typical customer makes a purchase once a week or 52 weeks per year, and management estimates the value of a loyal customer over their buying life cycle as $520, w

> What is the value of a loyal customer (VLC ) in the small contractor target market segment who buys an electric drill on average every four years (or every 0.25 year) for $100, when the gross margin on the drill averages 50 percent, and the customer rete

> 1. What is the average number of customers per hour that can be served for Activity B (CAD Demo & Jewelry Concept) if two employees are in the store? Assume each employee works at 100% utilization. 2. Given the seasonal nature of demand at Hudson Jeweler

> What is the average defection rate for grocery store shoppers in a local area of a large city if they spend $50 per visit, shop 52 weeks per year, the grocery store has a 16% gross contribution margin, and the value of a loyal customer is estimated at $2

> Geoff Colvin of Fortune magazine discussed the concept of a ""friction-free economy" in which labor, information, and money move cheaply and quickly through the firm's global supply chains (ENDNOTE: Geoff Colvin, "Every Aspect of Your Business is About t

> Select one of the OM challenges and investigate it in more detail. Prepare a 5-10-minute presentation on what you found.

> Research and write a short paper describing how business analytics has been applied to problems and decisions in operations management. Use the information in the box “What do Operations Managers Do?” to help your search process.

> Discuss how the three perspectives of sustainability influence (or perhaps, should influence) your personal purchasing decisions. For example, do you consider whether apparel is made in safe and ethical factories? Should companies exploit their sustain

> Describe new ways for how your college or university can apply the sustainability practices in Exhibit 1.13. Summarize your results in a short paper.

> Search the Web for either (a) an organization that has defined its sustainability strategy and policy, and give examples of how they are implementing it, or (b) an organization that has received negative or controversial media coverage for its ethical

> Select an organization you are familiar with and draw and describe its value chain using one of the three value chain frameworks (i.e., the input-output, pre- and post-services or the hierarchical model) described in this chapter.

> Review one of the operations and supply chain management professional websites and report what you find.

> One of our former students, who had worked for Taco Bell, related a story of how his particular store developed a “60-second, 10-pack club” as an improvement initiative and training tool. The goal was to make a 10-pack of tacos in a minute or less, each

> Why don’t they buy another copying machine for this office? I waste a lot of valuable time fooling with this machine when I could be preparing my legal cases,” noted Mr. H.C. Morris, as he waited in line. The self-serv

> Why is process thinking important in operations management? Thinking of yourself as an “operations manager” for your education, how could process thinking improve your performance as a student?

> Draw the customer benefit package (CBP) for one of the items in the following list and explain how your CBP provides value to the customer. Make a list of a few example processes that you think would be necessary to create and deliver “each good or servi

> Explain how the customer benefit package is enhanced from the customer's viewpoint by adding digital content to a physical good such as an automobile, cell phone, or appliance? How is value increased?

> Choose one of the following services and explain, using specific examples, how each of the ways that services differ from manufactured goods apply. a. a family practice medical office b. a fire department c. a restaurant d. an automobile repair shop

> Do you think you will be working in manufacturing or services when you graduate? What do you think will be the role of manufacturing in the U.S. economy in the future?

> Explain why a bank teller, nurse, or flight attendant must have service management skills. How do the required skills differ for someone working in a factory? What are the implications for hiring criteria and training?

> Explain how the seven differences between goods and services would be applied to a major airline service. Provide airline examples that illustrate each difference.

> Interview a working friend or family member as to how they use operations management principles in their job and write a short paper summarizing your findings (maximum two pages).

> Evaluate how the activities described in the box “What Do Operations Managers Do?” can be applied to a student organization or fraternity to improve its effectiveness.

> Interview a manager at a local company about the work he or she performs. Identify (a) the aspects of the job that relate to OM (like the OM activities in the box on page 3, “What Do Operations Managers Do?”) and (b) examples of value-creation, suppor

> A rare book library at a University of England in England houses first edition (FE), original manuscript (OM), and authors’ journals (AJ). Some of these rare books are worth hundreds of thousands of dollars, and most are worth more than

> Search recent articles in your local newspaper and business magazines such as Fortune, Business Week, Fast Company, and so on and identify OM concepts and issues that are discussed. How do these fit into the classification in the box “What Do Operations

> Describe a customer experience you have personally encountered where the good or service or both were unsatisfactory (e.g., defective product, errors, mistakes, poor service, service upsets, etc.). How might the organization have handled it better, and h

> Select a business with which you are familiar and identify examples of customers using search, experience, and credence quality to evaluate the good or service. You might also research the businesses on the Internet or visit the library.

> Select a business with which you are familiar and identify examples of order qualifiers and winners. You might also research the businesses on the Internet or visit the library.

> A manufacturer uses a moving average to predict how many replacement parts for Part #8119 they should produce per month. Past demand is as follows. What are the forecasts for month seven using two-, four-, and six-period moving averages? What can we lear

> Ink cartridges for the Burke Model 901 printer the last four weeks are as follows: a. What is the three-week moving average for the fifth week? b. What is the four-week moving average for the fifth week? c. Actual sales for week five were 126. With this

> Cynthia’s Design Studios had sales the last four months of $13,700, $15,400, $17,100, and $18,800. Sales are related to how many designers Cynthia has on-duty. The sales forecast helps her decide on the proper staffing levels. a. What is the forecast fo

> ProScript sells writing software that edits and proofs manuscripts. The last five months of data are shown below. Compute MSE, MAD, and MAPE (Equations 9.1 to 9.3) for these data.

> A supply chain manager faced with choosing among four possible locations has assessed each location according to the following criteria, where the weights reflect the importance of the criteria. How can he use this information to choose a location? Can y

> 1. Explain how capacity is measured at the following stages of the diamond value chain: (a) mining, (b) cutting and polishing, (c) jewelry manufacturing for custom and standard jewelry, and (d) the retail store? (There can be multiple measures so mak

> The Hudson Jewelers case study in MindTap integrates material found in each chapter of this book. Case Questions for Discussion: 1. Use one of the three value chain frameworks dis- cussed in this chapter to characterize the diamond value chain. How does

> Using the following information about material volume shipped from a factory to four retail outlets, find the best location for the factory using the center of gravity method. Use the center-of-gravity method to determine an ideal location for a service

> Microserve provides computer repair service on a contract basis to customers in five sections of the city. The five sections, the number of service contracts in each section, and the x and y coordinates of each section are as follows: Use the center-of-g

> Using the information about customer vehicle traffic to and from a proposed new sports stadium (not built yet), find the best location for the stadium that minimizes total distance travelled using the center of gravity method. Use the center-of-gravity

> Industrial Products, Inc. has two alternatives for manufacturing 12,000 industrial 100-horse power electric motors per year. If done in-house, fixed cost would be $2,100,000 with variable cost at $6,800 per unit. Alternative two is to outsource for a tot

> A hospital is evaluating whether to outsource or perform in-house a large set of blood and urine laboratory tests. The fixed cost of the laboratory located in the hospital is $800,000 and the weighted average variable cost per test if performed in-hous

> Build a House of Quality (showing only the Voice of the customer, Technical features, Interrelationships, and Relationship matrix from Exhibit 5.2) for designing and producing chocolate chip cookies. The voice of the customer consists of the following:

> The following exhibit shows a partially completed House of Quality for a proposed fitness center. a. Examine the relationships in the roof of the House of Quality. Explain why they make sense (or if you think they do not, explain why). How would this ass

> Develop a House of Quality for a manufactured good or service based on current or past work experience or something else you are familiar with. Some ideas might be a quick service oil change, a fast-food restaurant, a DVD player, a new car, or a fitness

> Given the following customer requirements and technical requirements for an automobile, construct a partial House of Quality. Use your own preferences to denote relationship strengths.

> A simple electronic assembly consists of two components in a series configuration with reliabilities as shown in the figure below. Engineers would like to increase the reliability by adding additional components in one of the two proposed designs shown

> David Christopher received his medical degrees from the University of Kentucky and the University of Virginia. He did his residency and early surgeries at Duke University Medical Center. Eight years ago he set up his own orthopedic surgery clinic in Atla

> A mortgage loan approval process consists of three steps in series performed by clerks A, B, and C. Errors are often made, and a study found that clerks A and B had an average reliability of only 0.85, which results in the paperwork having errors, missi

> Given the following diagram, determine the total system reliability if the individual component reliabilities are: A = 0.94, B = 0.82, and C = 0.87. (Hint: Use equations 5.2 and 5.3 and note that the reliabilities of the parallel components are different

> Two cooling fans are installed in some laptop computers. Suppose the reliability of each cooling fan is 0.98. What percent improvement in reliability does adding the second fan provide?

> The system reliability for a three-component series system is 0.893952. If the reliability of the first and third components is 0.96 and 0.97 respectively, determine the reliability of the second component.

> The system reliability for a two-component parallel system is 0.99968. If the reliability of the first component is 0.992, determine the reliability of the second component.

> The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of these services over one month with these results: 90%, 80% and 96% respecti

> The manufacturing of compact disks requires four sequential steps. The reliability of each of the steps is 0.96, 0.87, 0.92, and 0.89 respectively. What is the reliability of the process?

> Cameras Galore, Inc. wants the economic loss due to a failed part to be no more than $300 with a target (T) specification of 4.5 centimeters and a k= 12,000. Using the Taguchi loss function, what is the value of x that meets these criteria?

> Vehicle transmission repairs for part number TAC45123 are costly to replace. A highly skilled mechanic must disassemble the tranmission. If the part fails while it is in warranty, the manufactuerer pays the full cost of the repair to the garage or dealer

> A quality characteristic has a specification (in inches) of 0.200  0.020. If the value of the quality characteristic exceeds 0.200 by the tolerance of 0.020 on either side, the product will require a repair of $150. Develop the appropriate Taguchi loss

> Appleton Corporation is one of the largest forest- products companies in the world, converting trees into three basic product groups: (1) building materials, such as lumber and plywood; (2) white paper products, including printing and writing grades of

> Suppose that the specification for a part (in inches) are 6.00 ± 0.02, and the Taguchi loss function for some part is estimated to be L(x) = 6,800 (x – T)2. Determine the economic loss if x = 6.05 inches.

> In Problem 35, Cynthia’s Cookies must decide between two improvement options. Option 1 is spending $10,000 on a new online marketing campaign that is expected to increase last year’s sales (units) by 20 percent. Option 2 is to reduce variable costs by 10

> The selling price per box for Cynthia’s Cookies selling price per box is $19.95. Fixed costs are $65,000 and the variable cost per box is $9.88. a. What is the breakeven quantity? b. If sales last year were 8,200 boxes, what was the net profit?

> Pesto Restaurant must decide between two types of technology in its kitchen. Option A is to use an induction oven process with a fixed cost of $20,000 and a variable cost of $6.51 per meal. Option B is to use a gas-fired oven process with a fixed cost of

> MovieFix is a video streaming company that sells to a potential audience of 300,000 customers. The selling price is $20 per month and its variable cost is $14.62 per month. What is the most the company should spend on annual fixed costs to acquire and ma

> Meyers Window Company introduced a new window design but sales were below expectations. Sales in units last year were 800 units. Variable cost per unit averaged $105.72, the fixed cost was $42,000, and the selling price was $149.99. a. What is the break

> Luke’s Ristorante wants to add a sea bass dinner to their menu. A small grill and oven would be added to the kitchen cooking area at a fixed cost of $9,000. The variable cost per fish dish is estimated to be $9.60 per entrée. If 600 fish dinners are sold

> The Vera Molding company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit. Alternative two is to outsource for a total cost o

> You need to expand your small business, Paddle Incorporated that manufactures paddle board rackets. The fixed cost for the new technological advanced equipment is $15,000. The variable cost to produce each unit using the new equipment is $10, and the sel

> The Gorman Manufacturing Company must decide whether to purchase a component part from a supplier or to manufacture the component at its own plant. If demand is high, it would be to Gorman's advantage to manufacture the component. If demand is low, howev

> 1. The worksheet Hudson Jeweler Demand Case Data in MindTap provides the number of visits over one year from January to December (52 weeks). Chart the data in Excel and explain the characteristics of the time series. How would you forecast future demand

> Southland Corporation's decision to produce a new line of recreational products has resulted in the need to choose one of two automated manufacturing systems based on proposals from two vendors, A and B. The economics of this decision depends on the mar

> A company has two alternatives for meeting a customer requirement for 880,000 units of a part used in office printers. If done in-house, fixed cost would be $1,400,000 with variable cost at $1.90 per unit. Alternative two is to outsource for a total cost

> LCD Software must complete the project defined by the following network in 22 weeks. The expected times and the activity variances are shown in the table below. a. Find the critical path(s) and compute the probability of completing the project by week 18

> A competitor of Kozar International, Inc. has begun marketing a new instant-developing film project. Kozar has had a similar product under study in its R&D department but has not yet been able to begin production. Because of the competitorâ&#12

> You are responsible for wiring a smart 12-story building in downtown Chicago. The project network and basic information are shown in the following table. The time is in weeks. Your promotion depends on the successful completion of this project in 20 week

> The table below shows estimates of activity times in (weeks) for a project: Suppose that the critical path is A-C-E-F-G. What is the probability that the project will be completed a. within 33 weeks? b. within 30 weeks? c. in more than 31 weeks? d. in 32

> Estimates of activity times in (weeks) for a project are as follows. Suppose that the critical path is A-D-F-H. What is the probability that the project will be completed within a. 20 weeks? b. 22 weeks? c. 24 weeks?

> The table below shows the crash times, and normal and crash costs for the international bank systems integration project. What is the total project completion time and lowest-cost solution if the bank wants to complete the project two weeks early?

> Suppose that some of the activities in the Environment Recycling, Inc. project (problem 40) can be crashed. The table below shows the crash times and costs associated with performing the activities at their original (normal) times and also for the crash

> You are in charge of the purchasing, installing, and testing a new 30-ton stamping machine for a major automobile assembly line. It stamps out metal fenders and hoods for vehicles prior to painting them. The goal is to complete the project on time and wi

> Hello, is this the investment management help desk?” said a tired voice on the other end of the telephone line at 7:42 a.m. “Yes, how can I help you?” said Thomas Bourbon, customer service representat

> Office Automation, Inc. has developed a proposal for introducing a new computerized office system that will improve word processing and interoffice communications for a particular company. Contained in the proposal is a list of activities that must be ac

> You are a marketing major and have been working at a major consumer products company for the past three years. Today, your boss walked into your office and said, “Polly, I want you to be the Project Leader for our launch of Perfect Clea

> You have collected the information in the table below for the project you are leading on web page design and development. The times are in weeks. a. What is the total time of this project? b. What is the total normal cost of the project? c. If you need t

> You are assigned your first project and if things go well you should get promoted. The CEO is aware of this project, so you have a chance for high visibility. You want to do a good job! Your first task is to define the work break down structure by interv