Founded in 1989, Arnold Palmer Hospital is one of the largest hospitals for women and children in the U.S., with 431 beds in two facilities totalling 676,000 square feet. Located in downtown Orlando, Florida, and named after its famed golf benefactor, the hospital, with more than 2,000 employees, serves an 18-county area in central Florida and is the only Level 1 trauma centre for children in that region. Arnold Palmer Hospital provides a broad range of medical services including neonatal and paediatric intensive care, paediatric oncology and cardiology, care for high-risk pregnancies, and maternal intensive care. The Issue of Assessing Quality Health Care Quality health care is a goal all hospitals profess, but Arnold Palmer Hospital has actually developed comprehensive and scientific means of asking customers to judge the quality of care they receive. Participating in a national benchmark comparison against other hospitals, Arnold Palmer Hospital consistently scores in the top 10% in overall patient satisfaction. Executive Director Kathy Swanson states, “Hospitals in this area will be distinguished largely on the basis of their customer satisfaction. We must have accurate information about how our patients and their families judge the quality of our care, so I follow the questionnaire results daily. The in-depth survey helps me and others on my team to gain quick knowledge from patient feedback.” Arnold Palmer Hospital employees are empowered to provide gifts in value up to $200 to patients who find reason to complain about any hospital service such as food, courtesy, responsiveness, or cleanliness. Swanson doesn’t focus just on the customer surveys, which are mailed to patients 1 week after discharge, but also on a variety of internal measures. These measures usually start at the grassroots level, where the staff sees a problem and develops ways to track performance. The hospital’s longstanding philosophy supports the concept that each patient is important and respected as a person. That patient has the right to comprehensive, compassionate family-cantered health care provided by a knowledgeable physician-directed team. Some of the measures Swanson carefully monitors for continuous improvement are morbidity, infection rates, readmission rates, costs per case, and length of stays. The tools she uses daily include Pareto charts, flowcharts, and process charts, in addition to benchmarking against hospitals both nationally and in the southeast region. The result of all of these efforts has been a quality culture as manifested in Arnold Palmer’s high ranking in patient satisfaction and one of the highest survival rates of critically ill babies. Discussion Questions 1. Why is it important for Arnold Palmer Hospital to get a patient’s assessment of health care quality? Does the patient have the expertise to judge the health care he or she receives? 2. How would you build a culture of quality in an organization such as Arnold Palmer Hospital? 3. What techniques does Arnold Palmer Hospital practice in its drive for quality and continuous improvement? 4. Develop a fish-bone diagram illustrating the quality variables for a patient who just gave birth at Arnold Palmer Hospital (or any other hospital).
> Explain how a person using 2-sigma control charts will more easily find samples “out of bounds” than 3-sigma control charts. What are some possible consequences of this fact?
> List some possible causes of assignable variation.
> List five steps in developing and using x-charts and R-charts.
> Can the X-bar chart be used to see if the number of defectives in a production timeslot is randomly distributed? Explain.
> Define “in statistical control.”
> Frito-Lay, the multi-billion-dollar snack food giant, produces billions of pounds of product every year at its dozens of U.S. and Canadian plants. From the farming of potatoes—in Florida, North Carolina, and Michigan—to factory and to retail stores, the
> Is a capable process a perfect process? That is, does a capable process generate only output that meets specifications? Explain.
> In the ideal world, we would like our processes to have a high process capability. Discuss.
> What is the purpose of acceptance sampling?
> What is a P-chart used for?
> Discuss the managerial issues regarding the use of control charts.
> What is a run test, and when is it used?
> What are the acceptable quality level (AQL) and the lot tolerance percentage defective (LTPD)? How are they used?
> Even if the population distribution is not normal (e.g., beta or uniform), can the distribution of sample means be normal?
> Define Cpk and explain what a Cpk of 1.0 means. What is Cp?
> In a control chart, what would be the effect on the control limits if the sample size varied from one sample to the next?
> In November 2018, John Wells, a customer service representative of Bayfield Mud Company, was summoned to the Houston warehouse of Wet-Land Drilling, Inc., to inspect three boxcars of mud treating agents that Bayfield had shipped to the Houston firm. (Bay
> List Shewhart’s two types of variation. What are they also called?
> How would you define high quality?
> In what way do you think the operations managers’ role may change with regards to quality in the future?
> Where would the checklists for employees be beneficial in a service company, such as McDonalds?
> Explain how improving quality can lead to reduced costs.
> Why are sustainable business practices important?
> How would you classify a company as green?
> List ISO 14000’s (a) five core elements, (b) advantages, and (c) environmental and economic benefits.
> Discuss the circular economy.
> Explain sustainability.
> Twenty years ago, Celebrity Cruises, Inc., decided to make a name for itself in the premium market by offering an “upscale experience at an intelligent price.” Evoking images of luxury similar to the Ritz-Carlton brand
> Identify three products or services that employ: a) Interchangeability b) Standardization c) Modular design
> What is the difference between virtual reality and augmented reality?
> Describe several applications of virtual reality in product design.
> Discuss the advantages and disadvantages of involving customers fairly early in the product design process.
> If the benefits of implementing CPFR are so evident, why are companies reticent to commit to this concept?
> Summarize in the form of a table the (a) characteristics, (b) strengths, and (c) weaknesses of the following qualitative methods: (i) jury of executive opinion, (ii) Delphi method, and (iii) market survey.
> Compare and contrast the Project Evaluation and Review Technique (PERT) with the Critical Path Method (CPM).
> Read about Zara, the Spanish fashion retail company, and explain what is the best descriptive of Zara’s strategy approach. Explain some key operations management decisions that help Zara implement this strategy.
> How can an exponential smoothing model be made more responsive?
> Can the operations function on its own provide competitive advantage?
> Alaska Airlines, with nearly 100 destinations, including regular service to Alaska, Hawaii, Canada, and Mexico, is the seventh largest U.S. carrier. Alaska Airlines has won the J. D. Power and Associates Award for highest customer satisfaction in the ind
> Explain, citing appropriate examples, how flexibility saves time and stimulates response.
> Discuss the overlap amongst operations, marketing, and finance—the three functions basic to all organizations—for small and medium enterprises.
> Find statements of sustainability for a well-known company online and analyse that firm’s policy.
> How can the voice of the customer be incorporated in the design of products and services?
> What type of forecasting method would you recommend to a start-up retailer in terms of quantity, number of products, etc.? Would you use the same method after, say, 5 years of operation? Explain.
> While numerous trade-offs may be required during the life cycle of a project, the trade-offs between cost, time, and performance are considered essential. Discuss.
> The reasons for failure in productivity are cost reduction programs, which produce narrowness of vision. We must first let go of old-fashioned productivity as a goal: instead, we must set a new but powerful objective of competitiveness” (Skinner, 1986).
> What are the ethical dilemmas that project managers are faced with when dealing with projects?
> What is concurrent engineering and why is it adopted by companies?
> What is a project and why is it important is to understand the project environment?
> Frito-Lay, the massive Dallas-based subsidiary of PepsiCo, has 55 plants and 55,000 employees in North America. Seven of Frito-Lay’s 41 brands exceed $1 billion in sales: Fritos, Lay’s, Cheetos, Ruffles, Tostitos, Doritos, and Walker’s Potato Chips. Oper
> Describe the three paths of data mining.
> Consider Example G1. Think of three additional items for which the manager might want to check to ensure that the data are clean. Data from Example G1: Use of Conditional Formatting for Cleaning Data Vicky Luo, analytics manager for Thompson Industries,
> Describe the purpose of a heat map.
> What are some ways to use Excel to clean data?
> Describe the three major issues for data management and clean data.
> Describe the three categories of business analytics.
> What techniques can a firm use to move to a steeper learning curve?
> Explain the concept of the doubling effect in learning curves.
> What are the elements that can disrupt the learning curve?
> Why isn’t the learning-curve concept as applicable in a high-volume assembly line as it is in most other human activities?
> The popularity of Southwestern University’s football program under its new coach Phil Flamm surged in each of the 5 years since his arrival at the Stephenville, Texas, college. With a football stadium close to maxing out at 54,000 seats
> Refer to Example E2. What are the implications for Great Lakes, Inc., if the engineering department wants to change the engine in the third and subsequent tugboats that the firm purchases? Data from Example E2:
> What are the approaches to solving learning-curve problems?
> Identify three applications of the learning curve.
> What are some of the limitations of learning curves?
> What is meant by an unbalanced transportation problem, and how would you balance it?
> Develop a northeast-corner rule and explain how it would work. Set up an initial solution for the Arizona Plumbing problem analysed in Example C1. Data from Example C1: The Northwest-Corner Rule: Arizona Plumbing wants to use the northwest-corner rule t
> All of the transportation examples appear to apply to long distances. Is it possible for the transportation model to apply on a much smaller scale, for example, within the departments of a store or the offices of a building? Discuss.
> The more sources and destinations there are for a transportation problem, the smaller the percentage of all cells that will be used in the optimal solution. Explain.
> Which starting technique generally gives a better initial solution, and why?
> How do you know when an optimal solution has been reached?
> Celebrity Cruises, with its reputation as a leader in the “premium cruise” industry, decided in 2013 to become an industry leader in environmental sustainability as well. Celebrity’s “Save The Waves” program was initially set up to increase compliance wi
> Identify the three “steps” in the northwest-corner rule.
> What are the steps in the intuitive lowest-cost method?
> Explain what is meant by the term degeneracy within the context of transportation modelling.
> How can the transportation method address production costs in addition to transportation costs?
> Explain the significance of a negative improvement index in a transportation-minimizing problem.
> How many occupied cells must all solutions use?
> What are the three information needs of the transportation model?
> Describe how and when making a decision tree will make you do the right decisions.
> What is the expected value with perfect information (EVwPI)?
> What is the expected value of perfect information (EVPI)?
> Frito-Lay, the multi-billion-dollar snack food giant, requires vast amounts of water, electricity, natural gas, and fuel to produce its 41 well-known brands. In keeping with growing environmental concerns, Frito-Lay has initiated ambitious plans to produ
> Explain how decision trees might be used in several of the 10 OM decisions.
> What is a decision tree?
> Discuss the differences between decision making under certainty, under risk, and under uncertainty.
> What is the equally likely decision model?
> Give an example of a good decision you made that resulted in a bad outcome. Also give an example of a bad decision you made that had a good outcome. Why was each decision good or bad?
> Why is a decision tree appropriate for making decisions under risk?
> Describe a case where a decision tree will not be the optimal model for decisions.
> Why are the maximax and maximin strategies considered to be optimistic and pessimistic, respectively?
> Identify the six steps in the decision process.
> During an argument as to the merits of preventive maintenance at Windsor Printers, the company owner asked, “Why fix it before it breaks?” How would you, as the director of maintenance, respond?
> When the Amway Centre opened in Orlando in 2011, it became the first Leadership in Energy and Environmental Design (LEED) gold-certified professional basketball arena in the country. It took 10 years for Orlando Magic’s management to develop a plan for t
> What roles can computerize maintenance management systems play in the maintenance function?
> How does machine design contribute to either increasing or alleviating the maintenance problem?
> How can a manager evaluate the effectiveness of the maintenance function?
> What is the trade-off between operator-performed maintenance versus supplier-performed maintenance?
> How could simulation be a useful technique for maintenance problems?
> Explain the notion of “infant mortality” in the context of product reliability.