QuestionQuestion

Transcribed TextTranscribed Text

Operations Planning and Control -First TestInstructions for the Comprehensive Test: • Format: Times New Roman, 12pts, 1.5” space, 1” margin (all around), full justification. • Names (2-3) on the upper right corner: only in the first page. • No cover page (don’t waste a page with logos, big titles, etc., since it counts as a page.); In other words, start answering on the first page. • Don’t include any definition: Don’t waste space defining concepts that have been already explained in the eBook or in-class. • Either English or Spanish: Only one language should be used throughout the test. • Don’t write the Situation. • Maximum of nine pages; therefore, only the first nine pages will be graded. • All answers must be explained, justified and written in a statement form. • It’s to your advantage to include any visual aid in the explanations (graphs, precedence diagrams, etc.) • No hand-written material will be acknowledged. • All assumptions must be written within the answer’s context. • Send the test as a PDF file. • There will be penalties for not following these instructions. • Two or more tests that reasonable resemble each other will receive [all] zero. Situation 1 a) Based on the eBook and the previously sent article “How the sharing economy can make its case,” explain whether at the start Uber followed a resource-view or market-view strategy. (Note: Don’t include definitions in your answer.) b) Based on the eBook and the previously sent article “Industry 4.0 demystified— lean’s next level,” explain if the Industry 4.0 paradigm could be used by manufacturing companies to developed a resource-view or market-view strategy. (Note: Don’t include definitions in your answer.) Situation 2 Based on the eBook and the previously sent article “How the sharing economy can make its case,” explain three qualifiers and the main order-winner of Airbnb. (Note: Don’t include definitions in your answer.) Situation 3 PRJ is getting ready to work on their extended1 Annual assessment of the effectiveness of their internal financial auditing controls based on Sarbanes-Oxley (SOX) Compliance. SOX was enacted in response to a series of high-profile financial scandals that occurred in the early 2000s at companies like Enron and WorldCom, among others, that upset investors’ confidence. It’s aimed at improving corporate governance and accountability, requiring all public companies to submit an annual assessment of the effectiveness of their internal financial auditing controls to the Securities and Exchange Commission (SEC). Based on the experiences of similar companies, PRJ decided to use the following approach in planning for this project. Activity Designation Immediate Predecessor Normal Time (days) Crash Time (days) Normal Cost Crash Cost SOX Compliance Review Preparation P None 5 --- $2,000 --- Initiation and Scope S P 2 1 $3,000 $4,000 Review and Identify Improvement Opportunities O S 3 2 $3,000 $3,500 Review and Identify Improvement Risks R S 3 2 $3,000 $3,500 Prepare Risk Mitigation Actions M O, R 5 --- $8,000 --- Control Design C M 5 3 $6,000 $9,000 Disposition Design D M 3 1 $6,000 $12,000 Audit A C, D 2 --- $10,000 --- Bench-Test T A 2 --- $3,000 --- Final Reviews F A 3 --- $2,000 --- Implementation I T, F 7 5 $3,000 $4,000 Deploy Control Actions Z I 4 1 $4,000 $5,000 There are some indirect costs for this project, estimated daily: the first 25 days have indirect costs of $1,000/day, and all subsequent days $850/day. 1 The ‘extended part’ is due to risks considerations. a) Explain what is the total duration and cost for a normal [standard] project? b) Examine PRJ suggested decision to develop the project in 30 days on a budget of $78,000. c) Based on posterior information (shown below), what is the probability that a normal [standard] project will require between forty and thirty-five days? Activity Normal Time (weeks) Optimistic Most Likely Pessimistic SOX Compliance Review Preparation 3 5 8 Prepare Risk Mitigation Actions 3 5 10 Control Design 3 5 6 Bench-Test 1 2 4 Final Reviews 2 3 5 Implementation 5 7 11 Deploy Control Actions 2 4 7 Situation 4 PRI Inc. has been using a system to processes insurances claims of domestic and international customers. Each week, the company receive 200 domestic and 150 international claims. Regardless the type of customer (domestic or international), each must pass through an initial review process (IRP), which on average have 20 claims waiting to be processed, and takes an average of ten minutes to process each claim. The IRP reaches one decision: either accept the claim for further processing or, due to minor error or omission in filing the claim, reject the claim. Historically, fifteen percent of international and ten percent of international claims are rejected. If a claim is rejected, it is sent directly to a dispatch mail clerk (DMC), which only works with domestic and international claims. If the claim is accepted, it goes either to a domestic claim adjuster or an international claim adjuster, based on its source (domestic or international.) On averages, there are five claims (either one) at the DMC. There is an average of 14 claims waiting to be processed by the domestic claim adjusters, which takes an average of 20 minutes to process each claim. There is an average of 10 claims waiting to be processed by the international claim adjusters, which takes an average of 30 minutes to process each claim. After a claim has been processed by the corresponding claim adjuster, it’s sent to the DMC. a) Draw this system using arrows, triangles, and rectangles, as presented in class. b) What is the average time a claim spends in the system? (Note: Illustrate the computation.) c) Explain one initiative that could be used to improve the system efficiency. Situation 5 SevenJAC is an OEM vendor that provides specialized make-to-stock capabilities to companies of various sizes and industries. Last week, PRCycle, a company that produces specialized motorcycles, ask the company is they could assemble 150 engines for a special edition motorcycle. SevenJAC prior experience in assembling similar motors showed that the first motor took 190 minutes to assemble, the second 161.5 minutes, the third 146.9 minutes, and so on. Also, the company estimated that assembling this type of engine would cost $8/minute. If the maximum amount PRCycle is willing to pay for assembling all 150 engines is $100,000, and SevenJAC wants to earn a 25% markup, show and explain if this is a feasible deal. Situation 6 Cristina wants to start her company. She has been thinking about different low-risk ventures that will require minimal capital and realized that she has always enjoyed making cakes. Her friends loved the cakes, and she thought “...there are so many people baking and selling cakes that I have to find an ‘order-winner’ that will make my cakes special.” After talking to some local bakers and friends, she came up with the idea of an organic vanilla cake with plenty of walnuts (organic, of course.) She will need a special cake baking machine that doesn’t require the use of artificial additives. There are four such baking machines in the market with different costs structures (shown below). If Cristina estimated that she would sell between 1,500-2,500 cakes, what would be the best recommendation (option, rule, etc.) your group can give her? (Note: Explain and show the corresponding graph.) Machine Cost Variable Cost Machine Cost Variable Cost 1 $3,000 $2.10/cake 3 $5,100 $1.00/cake 2 $4,700 $1.15/cake 4 $5,800 $0.70/cake Situation 7 Dirty Car Inc. (DC) is a car wash company that only provides one service: the standard exterior-and-interior cleaning. The total process has three step: ‘paying,’ exterior wash, and interior wash. For the exterior, DC uses an exterior-conveyor-car-wash typical in this type of business. Assuming steady state, the conveyor can process three cars at a time in four minutes. For the interior, they hire workers based on requirements: each car needs two workers, which [both] takes an average of 5 minutes to clean a vehicle. Regardless the number of hours worked, workers earn $7/hour. It takes two minutes to the cashier/greeter to “get pay” by the customer, and he/she earns $8/hour. There is a standard fee of $10 for each car. At present, there are four workers working (active) at DC and two workers on-call (inactive.) a) Working twelve hours a day, what is the daily capacity of the process? b) During the day, what is the average labor utilization of all workers: active workers and cashier/greeter? c) Explain which of the following will be a feasible improvement; (1) hiring an extra ‘cashier/greeter’ or (2) call in the inactive workers.

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

Situation 1
a. Explain an example on how Walmart is using the concept of ‘triple bottom line’ to conduct business.
Walmart’s efforts towards environmental sustainability and aspects became visible through the communication to its suppliers (Monsanto, Unilever and Pepsi). Walmart is committed to partnerships with global suppliers and they are investing in sustainable agriculture and recycling. Constant efforts are made with the aim to expand environmental and sustainable products, reduce waste, making food supplies more affordable and accessible, and making recycling available to every town, city and municipality in America. This is bringing Walmart very positive image to customers who are motivated and making their contribution by coming and shopping to Walmart stores. With this, more finance is coming to the Walmart and company is profitable and have significantly positive financial results. This is enabling company to invest and provide better working conditions and open more job positions. All this is sending positive picture and reflecting on employees to feel safe and to have job security. With this, it can be said that the circle is closed and that Walmart is maintaining balance in the system by giving equal attention and focusing resources on environment, suppliers, employees and other stakeholders. Final results can be seen in the profit growth and constant increase of business operations.

b. Based on the eBook and recent information in the Internet, explain three order-qualifiers and the main order-winner of the company ‘Whole Foods’
Three order-qualifiers for the Whole Food Company:
Quality of products and service – Whole Foods is building a business with a high standards which gives them high quality of products. Quality is a state of mind at Whole Foods Market. Quality of service can be observed through through customer satisfaction and team Member excellence and happiness, which is emphasized through the Mission and Vision statements. Social responsibility – Whole Foods is investing significant amount of resources in the improvement of the environment, and provide local and larger community support. This is a huge order...

By purchasing this solution you'll be able to access the following files:
Solution.docx.

$60.00
for this solution

or FREE if you
register a new account!

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Operations Management Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats