Solution Manual for Operations Management 9th Edition by Krajewski

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Solution Manual for Operations Management 9th Edition by Krajewski
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  Chapter  1 Competing with Operations DISCUSSION QUESTIONS 1.Answering this question demonstrates that processes underlie all of our jobs. What might be surprising is how many students would put their job in the category of “other,”suggesting that many jobs do not fall neatly into any one functional area. Perhaps manyin the “other” category might best be called “operations” on further reflection.ustomers, both internal and e!ternal, are part of each process, and the goal is to managethe processes to add the most alue for them.#.Ama$on.com offers a ery broad range of ser ices and products at competiti e prices. %tscompetiti e priorities would include fast deli ery time, on&time deli ery, customi$ation, ariety and low&cost operations. As a business, Ama$on.com is actually assembling acustomi$ed bas'et of goods that must be deli ered in a short window of time in adependable fashion. (ow&cost operations are needed to remain competiti e. )o remain in business, Ama$on.com needs to maintain high olumes of traffic. *perations strategymust focus on stoc' a ailability and quic', economical, and dependable deli ery.+.)he hospitals commitment to provide attention to patients arriving to the emergencyunit in less than 15 minutes and never to turn away patients who need to be hospitalized  implies that the facility must be designed to ha e e!tra capacity in both beds andemergency room facilities. %t must plan on ha ing e!tra personnel in the emergencyroom and also plan on ha ing additional emergency personnel on call to ta'e care of unprecedented hea y loads. %n line with the mission statement, ma!imum utili$ation of the facilities -i.e., beds and emergency room personnel would not be one of the performance objecti es for the hospital./.0ed! traditionally has competed on the basis of fast, dependable deli ery. 2efore the boom in %nternet applications, many businesses relied on 0ed! to get things to other  businesses o ernight. 3ow, this need is beginning to diminish as sophisticated systemsare being installed to assist companies in planning operations better. And, the internet based companies are adding more demands for low cost ground deli eries to specificcustomer doors. 0ed!, in order to remain competiti e with companies such as 4P5, hasmo ed into the door&to&door deli ery business, perhaps through acquisition. 3onetheless, it will require changes to this companys competiti e priorities.6.)echnology 7anagement. )o identify a mar'et segment, we need to determineanswers to questions such as8 Which colleges and departments currently offer thesubject9 What do instructors desire in the way of te!tboo' support9 %s there a trendtoward )echnology 7anagement courses9 Are there other )echnology 7anagement 1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.  #      :AP); 1    Competing with Operations   te!ts9 5ome needs assessment can be accomplished by sur ey, but the response ratemay be low. A high&in estment strategy would be to as' or hire instructors to re iewand critique a list of topics, then an outline, then a draft. !plicit ser ices includesupplying information about the subject in the form of a te!tboo' and instructor support in the form of ancillary publications.<.%t is often not a good idea for a company to try to e!cel in all of the competiti e priorities because it is generally impossible to do so. 7ediocrity is a predictableresult. )he choice and the minimum le el of one or more of the competiti e priorities are set by the order qualifiers for the particular product or ser ice. )hechoice of the competiti e priorities that the company should emphasi$e is usuallygo erned by the companys strategy dri en by its mission statement and the corecompetencies that the company wants to harness to see' the best competiti ead antage.=.ore processes should lin' to a firms core competencies. ore processes are those processes that pro ide the firm the best competiti e ad antage. ssential to thedefinition a firms core processes is the concept of “interaction costs.” )hese costsinclude the time and money that are e!pended whene er people and companiese!change ser ices, products, or ideas. %f the transaction costs are higher to retain a process within the firms organi$ation than to outsource the process, the processshould be outsourced. >.Wendys assembles hamburgers to order. When materials are held at the stage just before final assembly, they can be used to complete a wide ariety of differentsandwiches. 2ecause no finished&goods stoc' e!ists, when customers say, “:old thesauce,” there is no delay or waste of materials. 5er ice cler's speciali$e. *ne cler' ta'es orders and payment. *thers fill portions of the order. *rders are processed insingle file. )hroughput is normally restricted by transactions at the cash register. At busy times, throughput is increased by splitting the bottlenec' operation. *ne cler' ta'es customer orders, another recei es payment. )he Wendys operation has somecharacteristics of assembly. )herefore, the impact of new menu items on the production operations must be carefully considered.?.@randmothers hic'en.a.athryn 5hoema'ers strategic plans include the following8 q Product and ser ice plans8 5hould the new location offer a new mi!9 q ompetiti e priorities8 %f the product mi! and ser ice mi! are different at the newlocation, the thrust could be on low olumes and high quality. q   Buality management8 5hould the goal be reliability or top quality9 q Process strategy8 What processes will be needed to ma'e chic'en dinners in theaddition or new facility9 q  3ew technologies8 %s it time to automate9 %s this why there is a problem in ser icetimes9 q apacity8 :ow large should the addition or new facility be9 q (ocation8 5hould we locate in 4niontown or e!pand in 7iddlesburg9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.  Cownload the full file instantly at http8DDtestban'instant.com  b.Attitudes toward nutrition could change the demand for chic'en. ompetitors suchas 2oston 7ar'et may be planning to mo e to 4niontown or e en 7iddlesburg.)here may be a trend toward demands for e er&faster ser ice, which cannot besupported by the processes specified in the “unique recipe.” )he economy of 4niontown might not be supporti e of restaurant ser ices. 5hoema'er should alsoconsider the a ailability of 'ey resources, such as ser ers, whole chic'ens, spices,and coo'ing oil. Will 4niontown labor organi$e9c.)he possible distincti e competencies at @randmothers hic'en ;estaurant includethe “unique recipe,” the homey atmosphere, and friendly, prompt ser ice.1E.Wild West, is recogni$able as 45 W5), which was bought out by Bwest in ahostile ta'eo er in Fune, #EEE. 2ut many other “2aby 2ells” are in a similar  position.a.5trategic plans include reducing o erhead, reengineering operations, and in esting innew technologies to meet competition. )he “do&nothing” option of remaining a localmonopoly telephone company is not iable because of competition from cablesystems and wireless systems that are capable of business and personalcommunication. %f the mission is too broad, Wild West should sell its financialser ices and commercial real&estate businesses. )hose businesses do not match their distincti e competencies. b.*ne en ironmental issue is whether communication, li'e health care, will be iewedas a “right” and therefore should be free. A significant portion of Wild Wests business is go erned by regulatory agencies. ustomer ser ice in their core businessis essential to maintaining a fa orable regulatory en ironment. *ther businessopportunities, such as manufacturing and pro iding information ser ices, are prohibited by the same court order that formed the “2aby 2ells” from A)G).c.Wild Wests distincti e competency is in connecting people -or machines for the purpose of communication. A wea'ness is high o erhead inherited from the era of telecommunication monopoly.11.Although the answers may ary depending on the “niche” elements of the business, thecompetiti e priorities would include on&time deli ery, low&cost operations, andcustomi$ation. )he latter competiti e priority comes from the capability to assembleunique “bas'ets” of food items for each customer. )here may be a need tocoordinate a gi en bas'et between two different stores. apabilities to de elop wouldinclude information systems and Web page design, efficient scheduling of deli erytruc's -which must first collect the items in the bas'et and then deli er them to thecustomers door, and an adequate fleet of truc's with dri ers. Cownload the full file instantly at http8DDtestban'instant.com  /      :AP); 1    Competing with Operations   PROBLEMS 1.2oehring 4ni ersitya.Halue of output8 students credit&hours I#EE tuition I1EE state support=6 + I<=,6EE classclass student credit&hours +  × × =     Halue of input8 labor J material J o erhead I#6I<6EE =6 students I+E,EEEstudentI+>,+=6 classclass   + × +    = 7ultifactor Producti ity ratio8Producti ity *utput I<=,6EE1.=<%nput I+>,+=6 = = = ompared to 5ol ed problem 1, multifactor producti ity has increased from1.#6 to 1.=<.  b.Halue of output is the same as in part a8 I<=,6EE class (abor&hours of input8 #E 1< +#Ehourswee' wee'sclasshoursclass × = Producti ity ratio8(abor Producti ity *utput I<=,6EEI#1E.?/ hour %nput +#E hours = = = )he I1?# season tic'et price is not used in this calculation. %t is a “red herring.”#.5uds and Cuds (aundrya.(abor producti ity Week Number of WorkersInput(Labor-hours)Output(Shirts)Output/InputRatio 1##/<>#.>+ shirtsDhour ##/<1+E#.>+ shirtsDhour ++<#16##./6 shirtsDhour /+611#6#./6 shirtsDhour 6#/61+1#.?1 shirtsDhour   b.*utput per person does not ary much whether it is 5ud, Cud, or Fud wor'ing.Producti ity declines when all three are present. Perhaps there isnt enough wor' to'eep three persons occupied, or perhaps there is not enough wor' space or equipment to accommodate three wor'ers. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.
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