CHAPTER 1 DISCUSSION AND REVIEW QUESTIONS 3.

Describe the operations function and the nature of the operations managers job. Operations function is to ensure the business organization on producing good and/or services. Operations managers job is to oversee and having responsibility for all the activities in the business organization which contribute to the effective production of goods and services.
5. c. Interchangeable parts

Interchangeable parts are attributed to Eli Whitney, an American inventor who applied the concept to assembling muskets in the late 1700s. The basis for interchangeable parts was to standardize parts so that any part is a batch of parts would fit any automobile coming down the assembly line. HAZEL 3. What are some of the trade-offs that Hazel probably considered relative to : a. Working for a company instead of for herself? The trade-off would probably be her money. When she is working in the company, she get to work or give labor to the company yet maybe her salary would still be not enough. But when working for herself, she would get to manage her own money. b. Expanding the business? If she would expand her business, she would get more customers and her business would eventually be known and who knows a top lawn business. c. Launching a Website? Launching a web site would give a positive impact to the company. It will get the people from far areas to know her business and enquire for a lawn service. CHAPTER 2 DISCUSSION AND REVIEW QUESTIONS 3. Explain the importance of identifying and differentiating order qualifiers and order winners. The importance of identifying and differentiating order qualifiers and order winners is that is serves as a basis for the company on producing its goods or what will they produce for the benefit of the company.

PROBLEMS 3. Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. Standard price is $140 per unit. Week Output (units) Workers Labor cost Material cost Overhead cost MP 1 30000 6 6 x 480** = 450 x 6 = 1.5 x 2880 = 30000 / 2880 + 2880 2700 4320 2700 + 4320 = 3.03 units per dollar input 2 33600 7 7 x 480 = 470 x 6 = 1.5 x 3360 = 33600 / 3360 +

3360

2820

5040

32200

7 x 480 = 3360

460 x 6 = 2760

1.5 x 3360 = 5040

35400

8 x 480 = 3840

480 x 6 = 2880

1.5 x 3840 = 5760

2820 + 5040 = 2.99 units per dollar input 32200 / 3360 + 2760 + 5040 = 2.89 units per dollar input 35400 / 3840 + 2880 + 5760 = 2.84 units per dollar input

** 40 hours x $12 =$ 480 ** DI KO SURE ANI AYY. CHAPTER 3 DISCUSSION AND REVIEW QUESTIONS 3. List the specific weaknesses of each of these approaches to developing a forecast: a. Consumer surveys Consumer surveys can be very expensive since it will do surveys to consumers and it is also time-consuming. b. Salesforce Composite In this approach the weaknesses are the staff members may be unable to distinguish between what customers would like to do and what they actually will do and these people are sometimes overly influenced by recent experiences. c. Committee of managers or executive This approach has a risk that the view of one person will prevail and the possibility that diffusing responsibility for the forecast over the entire group may result in less pressure to produce a good forecast. PROBLEM 3. A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecast to be 88 percent of capacity; actual usage was 89.6 percent of capacity. A smoothing constant of .1 is used. a. Prepare a forecast for September Exponential smoothing = previous forecast + (Actual Previous) = 0.88+ 0.1 (0.896 0.88 ) = 0.8816 or 88.2% b. Assuming actual September usage of 92 percent, prepare a forecast for October usage. Exponential smoothing = 0.92 + 0.1 (0.896 0.92) = 0.9176 or 91.8% ** DI KO SURE ANING PROBLEM 3