Operations and supply management
Operations and supply management
Chapter 7
Question 1 solution.
a. Throughput time (time to convert raw materials into product)
In the process of manufacturing that is generally referred to as the work center for
example job shops which are involved in manufacturing a particular commodity or a
group of similar commodities or jobs. During this period the commodity produced
commonly takes few changes over time and therefore increased throughput time while in
the work center. The final products are not produced in this phase but particular processes
are undergone with very little time needed before arriving at the assembly line stage.
Throughput time once the commodity arrives in this stage the assembly line phase
increases due to the combination of the various ingredients to produce the final
commodity.
b. Capital/labor intensity
The first stage of manufacturing process requires very minimal labor diversity hence little
intervention is done hence a particular job is performed however manual labor is all that
is needed in this stage. Due to the low specialization and few processes the capital is less
and not labor intensive the assembly phase is labor intensive and capital intensive as the
capital needed for machine installation and purchasing the machines is high. In addition
specialization increases the cost by need of more labor.
c. Bottle necks
The performance is normally within the particular specified task indicated for the
bottlenecks hence the bottleneck points are few in the process of manufacturing that is
limited. But the limitation in the assembly phase is caused by the process or method of
production of the finished product
Question 2 solution
What is the break-even point?
FC = (P - VC) * Break-even
=$300,000 = ($23.00 - $8.00) * Break-even
Break-even = 20,000 books
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Operations and supply management
Facility layout problem
a.
b. 130 seconds to produce first unit;
But actually the bottleneck is E which takes 40 seconds
Hence speed is (8 * 3600) / 40 = 720
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Operations and supply management
Chapter 9
Service problems
1. The service package
2. How service systems differ from manufacturing systems. Service systems have
i) Higher degree of customer contact
ii) More labor involvement.
ii) A higher degree of input variability.
iv) Service systems have poorer wages than manufacturing systems.
v) Maintaining quality in service systems is difficult.
vi) Less inventory is used in service systems compared to manufacturing systems.
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