The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air (BIA), KLM, Air France, Alitalia, and Swiss International Air. With ambitious expansion plans, BIA has decided it needs a second service hub on the continent, to complement its large Heathrow (London) repair facility. The location selection is critical, and with the potential for 4,000 new skilled blue-collar jobs on the line, virtually every city in Western Europe is actively bidding for BIA’s business. After initial investigations by Holmes Miller, head of the Operations Department, BIA has narrowed the list to 9 cities. Each is then rated on 12 factors, as shown in the table below. a) Help Miller rank the top three cities that BIA should consider as its new site for servicing aircraft. b) After further investigation, Miller decides that an existing set of hangar facilities for repairs is not nearly as important as earlier thought. If he lowers the weight of that factor to 30, does the ranking change? c) After Miller makes the change in part (b), Germany announces it has reconsidered its offer of financial incentives, with an additional 200-million-euro package to entice BIA. Accordingly, BIA has raised Germany’s rating to 10 on that factor. Is there any change in top rankings in part (b)?
> You have just been notified via fax that the lead time for component G of product A (Problem 14.15 and Figure 14.14) has been increased to 4 weeks. a) Which items have changed, and why? b) What are the implications for the production plan? c) As producti
> Based on the data in Figure 14.13, complete a net material requirements schedule for: a) All items (10 schedules in all), assuming the requirement for each BOM item is 1. b) All 10 items, assuming the requirement for all items is 1, except B, C, and F, w
> As the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, two springs, and four clamps. The base is assembled from one clamp and two housings. Each clamp has one handle and
> Does Boeing practice a multinational operations strategy, a global operations strategy, or a transnational operations strategy? Support your choice with specific references to Boeing’s operations and the characteristics of each type of organization.
> As a library or Internet assignment, find the U.S. productivity rate (increase) last year for the (a) national economy, (b) manufacturing sector, and (c) service sector.
> Southeastern Airlines’s daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120 people. In the past, the airline has priced every seat at $140 for the one-way flight. An average of 80 passengers are on each flight. The va
> Refer to the CPA firm in Problem 13.24. In planning for next year, Cohen estimates that billable hours will increase by 10% in each of the 6 months. He therefore proceeds to hire a fifth CPA. The same regular time, overtime, and outside consultant (i.e.,
> Forrester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December of his partner Brad Forrester. Cohen and his 3 CPAs can together bill 640 hours per month. When Cohen or another accountant bills more than 160 hours
> Dwayne Cole, owner of a Florida firm that manufactures display cabinets, develops an 8-month aggregate plan. Demand and capacity (in units) are forecast as follows: The cost of producing each unit is $1,000 on regular time, $1,300 on overtime, and $1,8
> José Martinez of El Paso has developed a polished stainless steel tortilla machine that makes it a “showpiece” for display in Mexican restaurants. He needs to develop a 5-month aggregate plan. His forecast
> Yu Amy Xia has developed a specialized airtight vacuum bag to extend the freshness of seafood shipped to restaurants. She has put together the following demand cost data: Yu decides that the initial inventory of 250 units will incur the 20¢
> Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: QUARTER………â
> The S&OP team (see Problem 13.9) is considering two more mixed strategies. Using the data in Problem 13.9, compare plans C and D with plans A and B and make a recommendation. Plan C: Keep the current workforce steady at a level producing 1,300 units per
> Consuelo Chua, Inc., is a disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data: **Note that there is no holding cost for June. What will each of the two following strategies cost? a
> Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Four firms have responded to its request for bids, and CEO Mohan Rao has started to perform an analysis on the scores his OM team
> Hill’s operations manager (see Problems 13.3 through 13.5) is also considering two mixed strategies for January– August: Produce in overtime or subcontracting only when there is no inventory. Plan D: Keep the current workforce stable at producing 1,600 u
> The president of Hill Enterprises, Terri Hill, projects the firm’s aggregate demand requirements over the next 8 months as follows: Her operations manager is considering a new plan, which begins in January with 200 units on hand. Stoc
> Develop another plan for the Mexican roofing manufacturer described in Examples 1 to 4. a) For this plan, plan 5, the firm wants to maintain a constant workforce of six, using subcontracting to meet remaining demand. Is this plan preferable? b) The same
> Prepare a graph of the monthly forecasts and average forecast demand for Chicago Paint Corp., a manufacturer of specialized paint for artists. MONTH PRODUCTION DAYS DEMAND FORECAST January 22 1,000 February 18 1,100 March 22 1,200 April 21 1,300 May
> How would you summarize outsourcing trends?
> What are the five reasons productivity is difficult to improve in the service sector?
> Arrow Distributing Corp. (see Table 11.9) likes to track inventory by using weeks of supply as well as by inventory turnover. a) What is its weeks of supply? b) What percent of Arrow’s assets are committed to inventory? c) What is Arrow’s inventory turno
> Using sources from the Internet, identify some of the problems faced by a company of your choosing as it moves toward, or operates as, a virtual organization. Does its operating as a virtual organization simply exacerbate old problems, or does it create
> Hau Lee Furniture, Inc., described in Example 1 of this chapter, finds its current profit of $10,000 inadequate. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Hau would like to improve the profit
> Given the discussion of Southwest Airlines in the text, define an operations strategy for that firm now that it has purchased AirTran.
> Walker Accounting Software is marketed to small accounting firms throughout the U.S. and Canada. Owner George Walker has decided to outsource the company’s help desk and is considering three providers: Manila Call Center (Philippines),
> How does an OM strategy change during a product’s life cycle?
> As the Cottrell Bicycle Co. of St. Louis completes plans for its new assembly line, it identifies 25 different tasks in the production process. VP of Operations Jonathan Cottrell now faces the job of balancing the line. He lists precedences and provides
> Samuel Smith’s company wants to establish an assembly line to manufacture its new product, the iStar phone. Samuel’s goal is to produce 60 iStars per hour. Tasks, task times, and immediate predecessors are as follows:
> The pre-induction physical examination given by the U.S. Army involves the following seven activities: These activities can be performed in any order, with two exceptions: Medical history must be taken first, and Exit medical evaluation is last. At pre
> Suppose production requirements in Solved Problem 9.2 increase and require a reduction in cycle time from 8 minutes to 7 minutes. Balance the line once again, using the new cycle time. Note that it is not possible to combine task times so as to group tas
> Dr. Lori Baker, operations manager at Nesa Electronics, prides herself on excellent assembly-line balancing. She has been told that the firm needs to complete 96 instruments per 24-hour day. The assembly-line activities are: a) Draw the precedence diag
> Because of the expected high demand for Mach 10, Creative Leisure has decided to increase manufacturing time available to produce the Mach 10 (see Problem 9.18). a) If demand remained the same but 300 minutes were available each day on the assembly line,
> The Mach 10 is a one-person sailboat manufactured by Creative Leisure. The final assembly plant is in Cupertino, California. The assembly area is available for production of the Mach 10 for 200 minutes per day. (The rest of the time it is busy making oth
> Tailwind, Inc., produces high-quality but expensive training shoes for runners. The Tailwind shoe, which sells for $210, contains both gas- and liquid-filled compartments to provide more stability and better protection against knee, foot, and back injuri
> The following table details the tasks required for Indiana-based Frank Pianki Industries to manufacture a fully portable industrial vacuum cleaner. The times in the table are in minutes. Demand forecasts indicate a need to operate with a cycle time of 10
> Fernando Garza’s firm wishes to use factor rating to help select an outsourcing provider of logistics services. a) With weights from 1–5 (5 highest) and ratings 1–100 (100 highest), use the following
> The Action Toy Company has decided to manufacture a new train set, the production of which is broken into six steps. The demand for the train is 4,800 units per 40-hour workweek: a) Draw a precedence diagram of this operation. b) Given the demand, what
> Sue Helms Appliances wants to establish an assembly line to manufacture its new product, the Micro Popcorn Popper. The goal is to produce five poppers per hour. The tasks, task times, and immediate predecessors for producing one Micro Popcorn Popper are
> Illinois Furniture, Inc., produces all types of office furniture. The “Executive Secretary” is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair sells for $130. There
> Stanford Rosenberg Computing wants to establish an assembly line for producing a new product, the Personal Digital Assistant (PDA). The tasks, task times, and immediate predecessors for the tasks are as follows: Rosenberg’s goal is to
> After an extensive product analysis using group technology, Leon Bazil has identified a product he believes should be pulled out of his process facility and handled in a work cell. Leon has identified the following operations as necessary for the work ce
> Six processes are to be laid out in six areas along a long corridor at Rita Gibson Accounting Services in Daytona Beach. The distance between adjacent work centers is 40 feet. The number of trips between work centers is given in the following table: a)
> You have just been hired as the director of operations for Reid Chocolates, a purveyor of exceptionally fine candies. Reid Chocolates has two kitchen layouts under consideration for its recipe making and testing department. The strategy is to provide the
> Adam Munson Manufacturing, in Gainesville, Florida, wants to arrange its four work centers so as to minimize interdepartmental parts handling costs. The flows and existing facility layout are shown in Figure 9.19. For example, to move a part from Work Ce
> Roy Creasey Enterprises, a machine shop, is planning to move to a new, larger location. The new building will be 60 feet long by 40 feet wide. Creasey envisions the building as having six distinct production areas, roughly equal in size. He feels strongl
> A Missouri job shop has four departments—machining (M), dipping in a chemical bath (D), finishing (F), and plating (P)—assigned to four work areas. The operations manager, Mary Marrs, has gathered the following data fo
> Claudia Pragram Technologies, Inc., has narrowed its choice of outsourcing provider to two firms located in different countries. Pragram wants to decide which one of the two countries is the better choice, based on risk-avoidance criteria. She has polled
> The U.S., and indeed much of the rest of the world, has been described as a “knowledge society.” How does this affect productivity measurement and the comparison of productivity between the U.S. and other countries?
> Eagle Electronics must expand by building a second facility. The search has been narrowed down to locating the new facility in one of four cities: Atlanta (A), Baltimore (B), Chicago (C), or Dallas (D). The factors, scores, and weights follow: a) Using
> Todd’s Direct, a major TV sales chain headquartered in New Orleans, is about to open its first outlet in Mobile, Alabama, and wants to select a site that will place the new outlet in the center of Mobile’s population b
> A chain of home health care firms in Louisiana needs to locate a central office from which to conduct internal audits and other periodic reviews of its facilities. These facilities are scattered throughout the state, as detailed in the following table. E
> The following table gives the map coordinates and the shipping loads for a set of cities that we wish to connect through a central hub. a) Near which map coordinates should the hub be located? b) If the shipments from city A triple, how does this chang
> Hyundai Motors is considering three sites—A, B, and C—at which to locate a factory to build its new-model automobile, the Hyundai Sport C150. The goal is to locate at a minimum cost site, where cost is measured by the
> The fixed and variable costs for three potential manufacturing plant sites for a rattan chair weaver are shown: a) Over what range of production is each location optimal? b) For a production of 200 units, which site is best? SITE FIXED COST PER YEA
> A British hospital chain wishes to make its first entry into the U.S. market by building a medical facility in the Midwest, a region with which its director, Doug Moodie, is comfortable because he got his medical degree at Northwestern University. After
> An American consulting firm is planning to expand globally by opening a new office in one of four countries: Germany, Italy, Spain, or Greece. The chief partner entrusted with the decision, L. Wayne Shell, has identified eight key success factors that he
> Daniel Tracy, owner of Martin Manufacturing, must expand by building a new factory. The search for a location for this factory has been narrowed to four sites: A, B, C, or D. The following table shows the results thus far obtained by Tracy by using the f
> Harden College is contemplating opening a European campus where students from the main campus could go to take courses for 1 of the 4 college years. At the moment, it is considering five countries: The Netherlands, Great Britain, Italy, Belgium, and Gree
> A company is planning on expanding and building a new plant in one of three Southeast Asian countries. Chris Ellis, the manager charged with making the decision, has determined that five key success factors can be used to evaluate the prospective countri
> Pan American Refineries, headquartered in Houston, must decide among three sites for the construction of a new oil processing center. The firm has selected the six factors listed below as a basis for evaluation and has assigned rating weights from 1 to 5
> A location analysis for Cook Controls, a small manufacturer of parts for high-technology cable systems, has been narrowed down to four locations. Cook will need to train assemblers, testers, and robotics maintainers in local training centers. Lori Cook,
> Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the moment, the firm has three alternatives—stay where it is but enlarge the facility; locate along the main street in nearby Newbury; or locate in
> Ken Gilbert owns the Knoxville Warriors, a minor league baseball team in Tennessee. He wishes to move the Warriors south, to either Mobile (Alabama) or Jackson (Mississippi). The table below gives the factors that Gilbert thinks are important, their weig
> In Myanmar (formerly Burma), 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, 2 laborers, each making $6
> Name four areas that are significant to improving labor productivity.
> Using Figure 7.6 in the discussion of value-stream mapping as a starting point, analyze an opportunity for improvement in a process with which you are familiar and develop an improved process. Reference Figure 7.6: Monthly Forecast Monthly Forecast
> Identify how changes within an organization affect the OM strategy for a company. For instance, discuss what impact the following internal factors might have on OM strategy: a) Maturing of a product. b) Technology innovation in the manufacturing process.
> Prepare a flowchart for one of the following: a) the registration process at a school b) the process at the local car wash c) a shoe shine d) some other process with the approval of the instructor
> Metters Cabinets, Inc., needs to choose a production method for its new office shelf, the Maxi stand. To help accomplish this, the firm has gathered the following production cost data: Metters Cabinets projects an annual demand of 24,000 units for the
> Tim Urban, owner/manager of Urban’s Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy’s Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 3 50 equals the total rooms rented for the
> Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) Refurbish the old equipment at a cost of $800, (b) make major modifications at a cost of $1,100, or (c) purchase new equipment at a net cos
> Stan Fawcett’s company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit, with a minimum order of 3,000 units. Stan estimates that it will cost $15,000 to set up the process an
> Identify the mission and strategy of your automobile repair garage. What are the manifestations of the 10 strategic OM decisions at the garage? That is, how is each of the 10 decisions accomplished?
> A recent Gallup poll of 519 adults who flew in the past year found the following number of complaints about flying: cramped seats (45), cost (16), dislike or fear of flying (57), security measures (119), poor service (12), connecting flight problems (8),
> Boston Electric Generators has been getting many complaints from its major customer, Home Station, about the quality of its shipments of home generators. Daniel Shimshak, the plant manager, is alarmed that a customer is providing him with the only inform
> Develop a flowchart for one of the following: a) Filling up with gasoline at a self-serve station. b) Determining your account balance and making a withdrawal at an ATM. c) Getting a cone of yogurt or ice cream from an ice cream store.
> Use Pareto analysis to investigate the following data collected on a printed-circuit-board assembly line: a) Prepare a graph of the data. b) What conclusions do you reach? NUMBER OF DEFECT DEFECT OCCURRENCES Components not adhering 143 Excess adhes
> Within the food service industry (restaurants that serve meals to customers, but not just fast food), find examples of firms that have sustained competitive advantage by competing on the basis of (1) cost leadership, (2) response, and (3) differentiation
> Mary Beth Marrs, the manager of an apartment complex, feels overwhelmed by the number of complaints she is receiving. Below is the check sheet she has kept for the past 12 weeks. Develop a Pareto chart using this information. What recommendations would y
> Draw a fish-bone chart depicting the reasons that might give rise to an incorrect fee statement at the time you go to pay for your registration at school.
> Construct a cause-and-effect diagram to reflect “student dissatisfied with university registration process.” Use the “four M s” or create your own organizing scheme. Include at least 12 causes.
> Consider the everyday task of getting to work on time or arriving at your first class on time in the morning. Draw a fish-bone chart showing reasons why you might arrive late in the morning.
> Draw a fish-bone chart detailing reasons why an airline customer might be dissatisfied.
> Consider the types of poor driving habits that might occur at a traffic light. Make a list of the 10 you consider most likely to happen. Add the category of “other” to that list. a) Compose a check sheet [like that in Figure 6.6 (a)] to collect the frequ
> Develop a flowchart [as in Figure 6.6 (e) and Example 2] showing all the steps involved in planning a party. Reference Figure 6.6: Tools for Generating Ideas (a) Check Sheet An oganired method of mcording data (c) Cause-and Efoct Diagmm A tool that
> Develop a histogram of the time it took for you or your friends to receive six recent orders at a fast-food restaurant.
> Develop a Pareto chart of the following causes of poor grades on an exam: REASON FOR POOR GRADE FREQUENCY Insufficient time to complete 15 Late arrival to exam 7 Difficulty understanding material 25 Insufficient preparation time 2 Studied wrong mate
> Develop a scatter diagram for two variables of interest [say pages in the newspaper by day of the week; see the example in Figure 6.6 (b)]. Reference Figure 6.6: Tools for Generating Ideas (a) Check Shoet: Anoganizod mothod of recording data (b) Sc
> The text provides three primary strategic approaches (differentiation, cost, and response) for achieving competitive advantage. Provide an example of each not given in the text. Support your choices.
> Why is it necessary to document a product explicitly?
> How is the dividend yield ratio calculated? Explain what the dividend yield ratio tells you about a company.
> Sales for the year for Victor Company were $1,000,000, 70 percent of which were on credit. The average gross profit on sales was 40 percent. Additional account balances were: Required: Compute the turnover for the accounts receivable and inventory, the
> Procter & Gamble is a multinational corporation that manufactures and markets many household products. Last year, sales for the company were $83,062 (all amounts in millions). The annual report did not disclose the amount of credit sales, so we will
> How is the earnings per share (EPS) ratio calculated? On what financial statement will an investor find EPS for a given company?
> The balance sheet for Ronlad Corporation reported 168,000 shares outstanding, 268,000 shares authorized, and 10,000 shares in treasury stock. How many shares have been issued?
> There are two primary sources of equity reported in the stockholders’ equity section of a company’s balance sheet: contributed capital and earned capital. Earned capital is kept track of in the retained earnings account. What increases retained earnings
> An Internet company earned $6.50 per share and paid dividends of $3.50 per share. The company reported a dividend yield of 5 percent. What was the price of the stock?
> In the current year, Pringle Company reported Sales of $1,420,000, Interest Expense of $12,000, Income Tax Expense of $13,000, and Net Income of $52,000. What is Pringle’s times interest earned ratio?
> Stacy Company reported total assets of $1,400,000 and noncurrent assets of $480,000. The company also reported a current ratio of 3.5. What amount of current liabilities did the company report?
