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Case Analyses: Operations Management Section E

The document summarizes operational details for a course on Operations Management. It outlines that there are 81 students divided into 13-14 groups to analyze cases. Each group will analyze two cases and submit written responses. The document provides an assignment table allocating different cases for each group to analyze. It also lists several case studies that all students should prepare for class discussion, including questions for each case.

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215 views

Case Analyses: Operations Management Section E

The document summarizes operational details for a course on Operations Management. It outlines that there are 81 students divided into 13-14 groups to analyze cases. Each group will analyze two cases and submit written responses. The document provides an assignment table allocating different cases for each group to analyze. It also lists several case studies that all students should prepare for class discussion, including questions for each case.

Uploaded by

maheshgahane
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Operations Management

Section E

PGP 2010-11
Operational Details Pertaining to the Course
Student involvement
There are about 81 students in the class and they will divide themselves into 13-14
groups (each group will have 6 members). The process of forming the groups is left to
the students. Please communicate your group membership details to the QAG. The QAG,
in turn, will provide the instructor (in an excel file) the list of 12 groups and the names of
the students belonging to each group. The information on group membership should be
made available to the instructor not later than 1 October, 2010, 17.00 Hrs.

The students are expected to skim through the assigned reading materials before each
session of the class. Some of the lecture material will be kept in Moodle.

Case Analyses
Each group is expected to make a detailed analysis for two cases that will be evaluated.
The table below indicates groups that will submit the case write-up and one or two of
these groups may have to make presentations.

Assignment Allocation Table

Sl. No. Title Groups to make submission


1 Shouldice Hospital Groups 1, 2, 3, 4, 14
2 Manzana Insurance Groups 5, 6, 7, 8, 13
3 Donner Groups 9, 10, 11, 12
4 Hewlett Packard Groups 1, 5, 9, 4
5 Applichem Groups 2, 6, 7, 10, 3,
6 American Connector Groups 8, 11,12, 13, 14

For assignment submission simply answer the questions that are tick-marked ().

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Operations Management
Section E

Case Questions
All students should prepare the cases for class discussion. This will also help you prepare
for the exam. Some case data are kept Moodle.
For assignment answer only those questions that are ticked ().

Kristen's Cookie Company (24 September)


1. What is the capacity of the system if. Assume number of trays is not a constraint and
the system operates 24 hours a day. Draw a process flow diagram for the cookie
production process.
2. What happens if the roommate leaves?

Executive Shirt (29 September)


1. Answer Question 1 on Page 10.
2. Contrast the two plans.

Shouldice Hospital (30 October)


1. What are the unique features of Shouldice’s services, as compared to that of a typical
hospital?
2. As Dr. Shouldice, what actions, if any, would you take to expand the hospital’s
capacity?
3. What is the customer’s total cost at Shouldice as compared to a typical hospital?
4. How would you characterize the quality of service at Shouldice?

Manzana Insurance (7 October)


1. What operational problems is Manzana facing? How might they be connected to the
deteriorating profits experienced over the past year?
2. Use process flow analysis to identify the bottlenecks in Manzana’s operations. (For
your analysis, use processing time data in Exhibit 4 and request data for 1991 (6
months) in Exhibit 7).

Donner (14 October)


1. What is the normal process flow of the production system at Donner? Draw a Process
Flow Diagram.
2. What order sizes would you schedule on Micronic CNC drill? On the CNC router?
3. Assume normal process flow. What is the standard labour time required for making
one circuit board for the following order sizes: 1 board, 8 boards (one panel), 200
boards?
4. What is the capacity of the Dry Film Photoresist area? (Assume the order size is
eight).

Hewlett-Packard: DeskJet Printer Supply Chain (29 October)


1. Consider the periodic-review, order-up-to model. Consider the air freight option by
examining the cost of inventory for all models in Europe, using a 98% service level
and the data given in Table 1 of the case. If the lead time is 5 weeks with sea freight
and 1 week by air, and if the review period is 1 week because of production cycles at

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Operations Management
Section E

the factory, what savings in average inventory are available? Assume that the product
cost is roughly $400. Per unit transportation cost is $9 by sea and $32 by air.
2. Use the same method to evaluate the inventory savings associated with a generic
European product that would be assembled-to-order in the European Distribution
Center. What are the advantages/disadvantages of this generic printer option?

Toyota Motor Manufacturing, USA, Inc. (19 November)

1. What is the operational and quality management philosophy of TPS?


2. What features of Toyota’s production process could be labeled JIT?
3. Does Toyota respond JIT to customer orders (i.e. consumer sales)?
4. What are the pros and cons of operating a mixed model assembly line (i.e. having a
mix of product on the line at one time)?
5. What is your position towards halting the production line? Can you estimate the cost
of halting the line for 1 minute? 1 hour?

Applichem (2 December) Answer only question 3.

1. How would you measure the productivity at a plant and perform a fair comparison of
the performance of Applichem's six plant?
2. Why do you think the plants have different productivity?
3. Assume there have been no technological breakthroughs from 1977 to 1982 as a
result for any year 19xx from 1982 to 1977 the US dollar equivalent costs can be
computed by just using exchange inflation rates in the following manner.
Take the 1982 measure and express it in the local currency by multiplying the 1982
exchange rate;
Express that measure in terms of 19xx prices in the country by multiplying it by the
price index in 19xx and dividing by the price index in 1982;
Converting that measure into US $(19xx) by dividing it by the corresponding
country's exchange rate in 19xx.

Assume that the manufacturing costs are the ones before packaging (from Exhibit 2).
Set up an optimization program using the demand data, transportation and
manufacturing costs and capacities to determine the optimal production for
Applichem's global network of sites for 1982 by assuming no custom duties. Find the
optimal production for Applichem's global network of sites for 1982 taking into
account custom duties. What changes do you observe?
Clearly mention the assumptions in your model.

In this case-study assume raw materials, waste treatment, utility and supplies as
components of variable cost. The remaining costs are treated as fixed cost. For
simplicity, assume that the selling price in any market is the same as the 'international
price' and is determined by the US market. Also assume that the real price of this
product has not changed during the period 1977-82.
The demands for each region are as shown below:

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Operations Management
Section E

Mexico 3.0 million pounds


Canada 2.6 million pounds
Latin 16 million pounds
America
Europe 20 million pounds
Asia Pacific 11.9 million pounds
USA 26.4 million pounds

American Connector (3 December)

1. How serious is the threat of DJC to American Connector Company?


2. How big are the cost differences between DJC’s plant and ACC’s Sunnyvale plant?
Consider both DJC’s performance in Kawasaki and its potential in the United States.

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