Practice #1
Solutions
Process Analysis and Capacity Management
BUAD311 – Operations Management
1. Dello is a world-class PC company. Management believes that they understand their products and customers better than any outsourcing company; therefore Dello should provide customer service in-house. Ideally, Dello’s customer service department wants to handle all the customer phone calls. During peak hours, however, Dello receives so many customer calls that they ask an outsourcing company, Telemate, to help handle incoming calls. Dello’s switchboard system is programmed in the following way; A customer calls Dello at its 1-800 number. If there are 14 or less callers in the system waiting to speak with one of the customer service
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Western Coffee also has two workers: worker C only takes order and payment, while worker D handles the coffee preparation and cleaning.
c) How many customers can Western Coffee serve per hour?
Capacity of worker C: 60/2 = 30 customers/hour Capacity of worker D: 60/(2+3) = 12 customers/hour Capacity of Western Coffee is 12 customers/hour
d) The manager of Western Coffee notices that cleaning is not a critical activity in the sense that it can be delayed and be finished when there are fewer customers. Therefore, during the peak hour when many customers come in, workers can focus on serving customers and temporarily ignore the cleaning activity. Then how many customers can Western Coffee serve during the peak hour?
Capacity of worker D during the peak hour: 60/2 = 30 customers/hour Capacity of Western Coffee is 30 customers/hour 5. At Spotted Cow Coffee Shop, one cashier can take 30 orders per hour and one skilled worker can prepare 20 orders per hour. Assume that the cashier and the worker are not cross-trained.
a. Suppose that there are only one cashier and one worker in Spotted Cow. What is the capacity of Spotted Cow? And which resource is the bottleneck? Explain.
The worker is the bottleneck as she pushes the smallest amount of job in an hour. The capacity of Spotted Cow is 20 orders per hour, which is
In order to find the capacity system, we are able to take the lowest number in units, of course after the reject rate, which for this case is produced by the grinding with 2,128 units. Therefore, because we are unable to produce more units due to reaching the capacity mark, or for no more product to be allowed through in the completed cycle. Thus, the capacity system turns out to be 2,128 units. “Capacity utilization and machine scheduling also reflect tactical
The production manager for the Softy soft drink company is considering the production of 2 kinds of soft drinks: regular and diet. Two of her resources are production time (8 hours = 480 minutes per day) and syrup (1 of the ingredients) limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the time constraint?
For our Gemba project, we decided to analyze the order fulfillment procedure for Cup of Joe, a coffee shop located in the Lennox Town Center. In order to capture the establishment’s peak hours of business, we primarily visited during the hours of 9:00am-12:00pm. We focused our attention on orders for baked goods, coffee, and espresso drinks, as these products are the shop’s main source of revenue and reputation. On several separate mornings we were able to observe an average of 125 orders over three hours (a takt time of 1.44 minutes). In the evening, there were often less than a dozen orders every hour. Since every order is slightly different, we have described the average order and the steps in the process that are consistent in almost every situation. We have identified multiple areas for improvement, which are referenced in the sections entitled analysis and recommendations.
3. How does demand variability impact capacity issues at LAA? What can the company do to control variability in demand?
Only in the stitching section there are inventories between different groups’ work. If the company still keeps each batch’s size as 100 pairs, the average work load for each worker in work group 1 now is 25 pairs, but in work group 2 is only 20 pairs which means that there will be 5 pairs of shoes as inventories from work shop 1 to work shop 2 in the stitching section.
‘A bottleneck is any resource which is equal to or less than the market demand placed on it.’ To find out the bottleneck in the case, they’ve tried different ways.
The organization that I observed was Equator Coffee & Teas, which is located inside the Martin Luther King Student Union Building of the University of California, Berkeley campus. The observation took place on Monday, March 28, 2016 from 11:18 a.m. to 12:48 p.m. The position that I observed was the cashier. In the first half of my observation, there were constant flows of customers coming in and out (over 10 people in line at a time). However, the line progressively slowed down as lunch time started to occur. As a result, there were no more than 6 people at the line and there would be brief instances where there would be no people in line. There was only one cashier and two espresso makers that were working at the back counter. The two espresso
Assume that one applicant comes every 6 minutes; compute the throughput rate and utilization of each worker.
Provide two weeks of training for making all types of coffee will limit the confusion for new workers. Have regular meetings to openly discuss situations the clerk has to adjust our new program. Making sure the execution of the program is not only illustrated but written in a procedures book for easy reading and follow through.
To the right is a photograph looking through one of my contact lenses. Since it is hard to depict what I see without them in, this photo goes to show what it looks like through the lens compared to what my camera sees with “perfect vision.” Through the lens you can see a tree clearly in the distance which is normally a blurry green and brown tree like shape through my bare eyes. This photo was taken out of my window in the foyer of my house in the Logan neighborhood.
The order currently has 13 monks working to produce coffee for sale and has a production capacity of 540 pounds per day. The company is sustainable because the monks have a specific goal in mind and all are on the same page when trying to reach the goal to purchase Irma Lake Ranch. I selected this problem because although the company makes great sales, sales will not be enough to purchase the land. Mystic Monk Coffee company does not effectively advertise itself and will need to improve advertisement to increase sales. Creating a great marketing plan could boost sales and profits substantially.
Management is the process of getting tasks done through the use of people. Through management decisions, our team will have one of the leading coffee shops within the BizCafe simulation. Within the management aspect of the company, we must first look at human capital, which are the skills, values, and overall output of an employee and the price at which these facets are worth. The managers of The Grind must delegate tasks through the serving staff of our company. The servers are the face of The Grind, meaning that it will be the servers who will interact to build strong customer relations with the guests of The Grind. However, there should be an efficient number of servers working on the clock at any given time throughout the day; The Grind should strive to always be properly staffed. If the shop is understaffed, customers will experience longer wait times, rushed customer interactions, and an overall subordinate experience; however, if the shop is overstaffed, each individual employee is most likely to give less production, and more importantly, our shop’s payroll will be out of proportion, meaning we will be spending too much money on labor. Wages also effect overall production from the employees. If we pay our servers too little, compared to the competition, we are likely to see less production, unhappy employees, and a large turnover rate. On the other hand, if we pay our servers too much, we risk blowing our weekly labor cap if our sales do not exceed the
Capacity is a factories ability to produce items explained as follows, consider a factory that has a capacity of 10,000 " machine hours" in each 40 hour week. This factory should be capable of producing 10,000 "standard hours of work" during a 40-hour week. The actual volume of product that the factory can produce will depend on:
Conduct a job requirements analysis for the store managers and coffee servers in order to identify tasks, KSAOs, and context for those positions.
Capacity planning is a necessary function of an organization to ensure that the highest rate of output is reached through the current processes taking place within an organization. These strategically defined processes must have the ability to provide flexibility to meet future capacity demand, whether due to opportunity growth or adjustments to make decreases to maximize profits. “Capacity decisions related to a process need to be made in light of the role the process plays within the organization and the supply chain as a whole, because changing the capacity of a