Question: Consider the EVM charts in Exhibit 4.
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?
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exhibit 4.12 Earned Value Management Charts Chart A Chart B - Budaeled Cost of Work Scheduled (BCWS) - Hudeed Cost orWark Scheduled (BCWS) - Budeled Cost orWark Performed (BCWP) Actual Cos (AC) $00,000- S200,000 BCWS $130,000 - S1S0,000 Behind Schedule BCWS Schedule Variance ($) $100,000 - $100,000 Project AC Tracking without Eamed Value Is Inconclusive BCWP Schedule $30,000 $50,000 Varianor (Time) 1 2 3 4 5678 9 10 11 12 $0 I 2 3 4 5 89 10 11 12 Time (weeks) Time (weeks) Chart C -Budgeted Cost of Work Perfomed (BCWP) Actual Cond (AC - Budeled Cost of Work Scheduled (CWS) - Budeed Cost ofrWark Perfonned (HCWP) Actl Cat (AC) $0,000 $200,000 BCWS $10,000 s1s0,000 $100,000 $100,000 Cost Variance ($) Linder Budget BCWP BCWP AC $30,000 AC $50,000 1 2 3 4 5 67 8 9 10 11 12 $0 1 2 3 4 S6 7 8 9 10 11 12 Time (weeks) Time (weeks)
> 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
> 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
> 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?
> 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?
> The restaurant in the prior problem anticipates that in one year, their demand will double as long as they can provide good service to their customers. How much will they have to increase their service capacity to stay out of the critical zone? Informat
> Many practitioners currently update MRP weekly or biweekly. Would it be more valuable if it were updated daily? Discuss.
> Why is the MRP process referred to as an “explosion?”
> In what three ways that market leadership can be obtained?
> Discuss the meaning of MRP terms such as planned order release and scheduled order receipts.
> State the types of data that would be carried in the bill of materials file and the inventory record file.
> What do we mean when we say that MRP is based on dependent demand?
> You are a newsvendor selling the San Pedro Times every morning. Before you get to work, you go to the printer and buy the day’s paper for $0.25 a copy. You sell a copy of the San Pedro Times for $1.00. Daily demand is distributed normally with mean = 250
> Which current issue in OSCM relates to the ability of a firm to maintain balance in a system, considering the ongoing economic, employee, and environmental viability of the firm?
> What are some reasons project scheduling is not done well?
> Sally’s Silk Screening produces specialty T-shirts that are primarily sold at special events. She is trying to decide how many to produce for an upcoming event. During the event, Sally can sell T-shirts for $20 apiece. However, when the
> When making decisions about what product(s) to produce in a manufacturing system, why is it not enough to simply consider the selling price and demand for different items?
> DAT, Inc., produces digital audiotapes to be used in the consumer audio division. DAT lacks sufficient personnel in its inventory supply section to closely control each item stocked, so it has asked you to determine an ABC classification. Here is a sampl
> Discuss the assumptions that are inherent in production setup cost, ordering cost, and carrying cost. How valid are they?
> Compared to manufacturing systems, what is it about the environment of service operations that make them much harder to control?
> Alpha Products, Inc., is having a problem trying to control inventory. There is insufficient time to devote to all its items equally. The following is a sample of some items stocked, along with the annual usage of each item expressed in dollar volume.
> What concept provides guidance and direction for consistent, efficient implementation of BPR projects?
> In the past, Taylor Industries has used a fixed–time period inventory system that involved taking a complete inventory count of all items each month. However, increasing labor costs are forcing Taylor Industries to examine alternative w
> A builder has located a piece of property that she would like to buy and eventually build on. The land is currently zoned for four homes per acre, but she is planning to request new zoning. What she builds depends on approval of zoning requests and your
> The American College of Surgeons has developed criteria for determining operating room standards in the United States. Level I and II trauma centers are required to have in-house operating room (OR) staff 24 hours per day. So a base level of a single OR
> CU, Incorporated (CUI), produces copper contacts that it uses in switches and relays. CUI needs to determine the order quantity, Q, to meet the annual demand at the lowest cost. The price of copper depends on the quantity ordered. Here are price-break an
> A particular raw material is available to a company at three different prices, depending on the size of the order: The cost to place an order is $40. Annual demand is 3,000 units. The holding (or carrying) cost is 25 percent of the material price. What
> Demand for a book at Amazon.com is 250 units per week. The product is supplied to the retailer from a factory. The factory pays $10 per unit, while the total cost of a shipment from the factory to the retailer when the shipment size is Q is given by S
> What are operations people’s primary complaints against the accounting procedures used in most firms? Explain how such procedures can cause poor decisions for the total company.
> SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 3,000 units. Each shirt requires 0.5 pound of raw cotton that is imported from Luft-Geshfet-Textile (LGT) Company in Brazil. The purc
> Annual demand for a product is 13,000 units; weekly demand is 250 units with a standard deviation of 40 units. The cost of placing an order is $100, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.65 per unit
> Some suggest that customer expectation is the key to service success. Give an example from your own experience to support or refute this assertion.
> Under which conditions would a plant manager elect to use a fixed-order quantity model as opposed to a fixed-time period model? What are the disadvantages of using a fixed-time period ordering system?
> Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. a. State the order quantity and reorder point. b. Determine the annual holding and order costs. c. If a price break of $50 per order was of
> Is the business reengineering process more gradual, more radical, or about the same as the TQM process?
> Gentle Ben’s Bar and Restaurant uses 5,000 quart bottles of an imported wine each year. The effervescent wine costs $3 per bottle and is served only in whole bottles because it loses its bubbles quickly. Ben figures that it costs $10 each time an order i
> What dashboard would display metrics such as accurate performance of transfusion protocols and code response time?
> What is used to indicate suggested changes in a process that may lead to improvements in a value stream?
> Famous Albert prides himself on being the Cookie King of the West. Small, freshly baked cookies are the specialty of his shop. Famous Albert has asked for help to determine the number of cookies he should make each day. From an analysis of past demand, h
> Wholemark is an Internet order business that sells one popular New Year’s greeting card once a year. The cost of the paper on which the card is printed is $0.05 per card, and the cost of printing is $0.15 per card. The company receives $2.15 per ca
> Recent figures show that almost 60% of the volume of freight movements in the United States ship by truck. Rail is far more fuel efficient on a ton-mile basis – CSX advertises they can move a ton of freight 468 miles on a gallon of fuel.* Why is it th
> Solve the newsperson problem. What is the optimal order quantity? Purchase cost c = 15 Selling price p = 25 Salvage value v = 10 Probability 0.2 0.1 0.1 0.2 0.3 0.1 Value 1 2 3 4 6.
> Next week, Super Discount Airlines has a flight from New York to Los Angeles that will be booked to capacity. The airline knows from past history that an average of 25 customers (with a standard deviation of 15) cancel their reservation or do not show fo
> Expando, Inc. is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $6 mill
> You work for Nokia in its global cell phone group. You have been made project manager for the design of a new cell phone. Your supervisors have already scoped the project, so you have a list showing the work breakdown structure, and this includes major p
> The local supermarket buys lettuce each day to ensure really fresh produce. Each morning, any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week, the supermarket can buy f
> The R&D department is planning to bid on a large project for the development of a new communications system for commercial planes. The accompanying table shows the activities, times, and sequences required: a. Draw the network diagram. b. What is th
> To support the manufacture of desktop computers for their customers, Dell needs to order all the parts that go into the computer, such as hard drives, motherboards and memory modules. Obviously the demand for these items is driven by the production sche
> “The nice thing about inventory models is that you can pull one off the shelf and apply it so long as your cost estimates are accurate.” Comment.
> What tool is used to ensure that all tasks in a project has the right mix of project team members assigned to it?
> Describe the benefits of using an ERP system.
> Explain how an ERP system can improve the evaluation and analysis of performance metrics.
> From the standpoint of the scheduling process, how are resource limitations treated in an MRP application and how are they treated in a synchronous manufacturing application?
