OM Chapter 1
services
The economic activities that typically produce an intangible product are referred to as
This year, Druehl, Inc., will produce 57,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 200 hours per month. If the labor productivity at the plant is 0.15 hot water heaters per labor hour, how many laborers are employed at the plant?
.15 = 57600 / (200 hours)(12 months) x L L= 57600/ 2400 (.15) L= 160 Laborers
supply chain
A global network of organizations and activities that supply a firm with goods and services is referred to as
Which of the following organizations does NOT belong to the service sector?
Ford Motor Company
The father of scientific management is
Fredrick W. Taylor
The person who believed that management must do more to improve the work environment and processes so that quality can be improved was
W. Edwards Deming
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 55% in the last year. On far too many occasions, customers have not been able to purchase the bread of their choice. Because of the size of the store, no new ovens can be added. At a staff meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1,500 loaves per month. Employees are paid $8 per hour. In addition to the labor cost, Charles also has a constant utility cost per month of $550 and a per loaf ingredient cost of $0.50.
a. Current multifactor productivity for 640 work hours per month = .234 loaves/dollar (1500/[(8*640)+(550)+(0.5*1500)] b. After increasing the number of work hours to 992 per month, the multifactor productivity = .241 ~ (output/input) output = 155% x 1500 input = (8*992)+(550)+[(155%) x ($0.50) x (1500)] c. The percentage increase in productivity = 2.905 ~ = 1-(.234/.241)
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 425 hours per day @ $12.00 per hour Raw Material: 20,000 pounds per day @ $1.00 per pound Energy: $5,000 per day Capital: $10,000 per day
a. Labor productivity per labor hour for these tires= 3.25 (tires/labor hours) b. Multifactor productivity for these tires = .0249 tires/dollar (per day) c. The percent change in multifactor productivity if Fok can reduce the energy bill by $950 per day without cutting production or changing any other inputs = 2.41%
a. Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 20 hours per day making the 400 boxes. b. Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 600 boxes per day.
a. Their productivity = 20 boxes/hour b. Their new productivity = 30 boxes/hour c. The unit increase in productivity is 10 boxes/hour (b-a) d. The percentage increase in productivity is 50% (c/a)
Which of the following is NOT considered to be a stakeholder? A. community members B. competitors C. distributors D. customers
competitors
Which of the following tasks would not typically represent an operations management activity at Hard Rock Cafe? A. filing a tax return B. designing an efficient layout C. receiving a shipment of incoming food ingredients D. preparing an employee schedule
filing a tax return
Productivity increases when
inputs decrease while outputs remain the same
Which of these is NOT one of the basic functions of the management process?
inspecting
A large percentage of the revenue of most firms is spent on which function?
operations
Which of the following OM decisions determines how a good or service is produced and commits management to specific technology, quality, human resources, and capital investment?
process and capacity design
Which of the following is NOT considered to be one of the three primary functions that all organizations perform?
research & development
Which of the following activities at an airline is NOT an operations activity? A. flying B. sales C. crew scheduling D. catering
sales
Competition in the 21st century is no longer between companies; it is between
supply chains
Production
the creation of goods and services is referred to as
What is the goal for mass customization?
the goal is to produce customized products whenever and wherever needed