Mid-term Exam
Operations Management
QSO 600 Operations Management

The mid-term exam consists of five essay
and two problem questions. Answer all the questions.

Essay
Questions:
There is no set length for answers;
students may be as verbose or brief as they feel necessary to cover the
question. Use this same exam document for your answers, placing them below each
question.

Problem
Questions:
Make sure to show all your work to get full
credit. The instructor needs to know the formulas and calculations you used to
get to your final answer. You can do
part of the exam in Excel and Paste your Excel work into this document.

File
Convention:
File name for the exam attachment to be
studentlastname-finalexam (Be sure there
are no spaces)
Be sure to put your name on the exam paper.

Note: You may use the text and any other materials. You are NOT to work
with anyone else including other students in completing the exam nor discuss it
with them.

Essay Questions
Question
1:You are designing a grocery delivery business.
Via the Internet, your company will offer staples and frozen foods in a large
metropolitan area and then deliver them within a customer-defined window of
time. You plan to partner with two major food stores in the area. What should
be your competitive priorities and what capabilities do you want to develop in
your own core and support processes?

Is it possible for a project to
have more than one critical path? Discuss the implications of such a situation
with respect to each of the following aspects:

Project risk

Total available slack

Resource dependencies

Responsibilities of the project
manager

Question 2:A flow chart
helps us see all of the steps in a process, which in turn help us improve the
process. It also helps us identify and eliminate any redundant steps in a
process. Read the introduction to and the example of a flow chart on the
following webpage:

.mindtools.com/pages/article/newTMC_97.htm”>http://www.mindtools.com/pages/article/newTMC_97.htm

Select ONE real-world
service process (for example, at a bank, at a movie theatre, at a theme park,
etc.), and draw a flow chart for that process in MS Word. How can this process
be improved by eliminating any redundant steps of the process and/or simply
improving some of the specific steps? What you are asked to do here is called
Process Mapping and is done by operations managers all the time!

Question 3:Complete
additional investigation on the JIT and EOQ models. Discuss which of the two
inventory models is better and why: Economic Order Quantity or Just-in-Time?

Question 4:Are quality
management practices similar in manufacturing and service companies? How do
they differ? Explain your answers.

Problem Questions
Question 5:The ABC Company
has a large order for special uniforms to be used in an urgent operation.
Working the normal two shifts of 40 hours each per week, the ABC production
process usually produces 2, 500 uniforms per week at a standard cost of $120
each. Seventy employers work the first shift and 30 the second. The contract
price is $200 per uniform. Because of the urgent need, ABC is authorized to sue
around-the-clock production, six days per week. When each of the two shifts
work 72 hours per week, production increases to 4,000 uniforms per week but at
a cost of $144 each.

Did the multifactor productivity ratio increase, decrease, or
remain the same? If it changed, by what percentage did it change?
Did the labor productivity ratio increase, decrease, or remain
the same? If it changed, by what percentage did it change?
Did weekly profits increase, decrease, or remain the same?

Question 6:At ZYZ
Company, a custom manufacturer of printed circuit boards, the finished boards
are subjected to a final inspection prior to shipment to its customers. As XYZs
quality assurance manager, you are responsible for making a presentation to
management on quality problems at the beginning of each month. Your assistant
has analyzed the reject memos for all the circuit boards that were rejected
during the past month. He has given you a summary statement listing the
reference number of the circuit board and the reason for rejection from one of
the following categories:
A= Poor
electrolyte coverage
B=Improper
lamination
C= Low copper
plating
D= Plating
separation
E= Improper
etching
For 50 circuit
boards that had been rejected last month, the summary statement showed the
following:
C B C C D E C C
B A D A C C C B C A C D C A C C B
A C A C B C C A
C A A C C D A C C C E C C A B A C

Prepare a tally sheet (or
checklist) of the different reasons for rejection.

Develop a Pareto chart to
identify the more significant types of rejection.

Examine the causes of the most
significant type of defect, using a cause-and-effect diagram. Mid-term ExamOperations ManagementQSO 600 Operations Management The mid-term exam consists of five essay
and two problem questions. Answer all the questions. Essay
Questions: There is no set length for answers;
students may be as verbose or brief as they feel necessary to cover the
question. Use this same exam document for your answers, placing them below each
question. Problem
Questions:Make sure to show all your work to get full
credit. The instructor needs to know the formulas and calculations you used to
get to your final answer. You can do
part of the exam in Excel and Paste your Excel work into this document. File
Convention:File name for the exam attachment to be studentlastname-finalexam (Be sure there
are no spaces)Be sure to put your name on the exam paper.
Note: You may use the text and any other materials. You are NOT to work
with anyone else including other students in completing the exam nor discuss it
with them. Essay QuestionsQuestion
1:You are designing a grocery delivery business.
Via the Internet, your company will offer staples and frozen foods in a large
metropolitan area and then deliver them within a customer-defined window of
time. You plan to partner with two major food stores in the area. What should
be your competitive priorities and what capabilities do you want to develop in
your own core and support processes?
Is it possible for a project to
have more than one critical path? Discuss the implications of such a situation
with respect to each of the following aspects:
Project risk
Total available slack
Resource dependencies
Responsibilities of the project
managerQuestion 2:A flow chart
helps us see all of the steps in a process, which in turn help us improve the
process. It also helps us identify and eliminate any redundant steps in a
process. Read the introduction to and the example of a flow chart on the
following webpage: Select ONE real-world
service process (for example, at a bank, at a movie theatre, at a theme park,
etc.), and draw a flow chart for that process in MS Word. How can this process
be improved by eliminating any redundant steps of the process and/or simply
improving some of the specific steps? What you are asked to do here is called
Process Mapping and is done by operations managers all the time!Question 3:Complete
additional investigation on the JIT and EOQ models. Discuss which of the two
inventory models is better and why: Economic Order Quantity or Just-in-Time?Question 4:Are quality
management practices similar in manufacturing and service companies? How do
they differ? Explain your answers.Problem QuestionsQuestion 5:The ABC Company
has a large order for special uniforms to be used in an urgent operation.
Working the normal two shifts of 40 hours each per week, the ABC production
process usually produces 2, 500 uniforms per week at a standard cost of $120
each. Seventy employers work the first shift and 30 the second. The contract
price is $200 per uniform. Because of the urgent need, ABC is authorized to sue
around-the-clock production, six days per week. When each of the two shifts
work 72 hours per week, production increases to 4,000 uniforms per week but at
a cost of $144 each. Question 6:At ZYZ
Company, a custom manufacturer of printed circuit boards, the finished boards
are subjected to a final inspection prior to shipment to its customers. As XYZs
quality assurance manager, you are responsible for making a presentation to
management on quality problems at the beginning of each month. Your assistant
has analyzed the reject memos for all the circuit boards that were rejected
during the past month. He has given you a summary statement listing the
reference number of the circuit board and the reason for rejection from one of
the following categories_A= Poor
electrolyte coverageB=Improper
laminationC= Low copper
platingD= Plating
separationE= Improper
etchingFor 50 circuit
boards that had been rejected last month, the summary statement showed the
following:C B C C D E C C
B A D A C C C B C A C D C A C C BA C A C B C C A
C A A C C D A C C C E C C A B A C
Prepare a tally sheet (or
checklist) of the different reasons for rejection.
Develop a Pareto chart to
identify the more significant types of rejection.
Examine the causes of the most
significant type of defect, using a cause-and-effect diagram.