Concept explainers
Greg Davis, a business major at the University of Smith Carolina (USC), has opened Six Points Saco (SPS), a specialty subs—taco restaurant, at the rim of the IJSC cam pus. SPS has grown in popularity over the first year that it has been in operation, and Greg is trying to perfect the business model before making it into a franchise. He wants to maximize the productivity of his staff, as well as serve customers well in a timely fashion. One area of concern is the drive-thru operation during the 11:30 A.M. to 12:30 P.M. lunch hour.
The process of fulfilling an order involves fulfilling the tasks listed in the table.
Greg is interested in getting a better understanding of the staffing patterns that will be needed to operate his restaurant. After taking a course in operations management at the university, he knows that fulfilling a customer order at SPS is very similar to operating an assembly line. He has also used the POM for Windows software before, and wants to apply it for examining different demand scenarios for serving his customers.
- If all the seven tasks are handled by one employee, how many customers could be served per hour?
- If Greg wants to process 45 customers per hour, how many employees will he need during the peak period?
- With the number of employees determined in part (b), what is the maximum number of customers who could be served every hour (i.e., what is the maximum output capacity)?
- Assuming that no task is assigned to more than one employee, what is the maximum output capacity from this assembly line? How many employees will be needed to actually accomplish this maximum output capacity?
- Beyond the output accomplished in part (d), if Greg decides to add one additional worker to help out with a bottleneck task, where should he add that worker? With that addition, would he be able to process more customers per hour? If so, what is the new maximum output capacity for the drive-thru?
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
MyLab Operations Management with Pearson eText -- Access Card -- for Operations Management: Processes and Supply Chains
Additional Business Textbook Solutions
Operations Management, Binder Ready Version: An Integrated Approach
Operations Management
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Operations and Supply Chain Management 9th edition
Business in Action (8th Edition)
- Projects W, X, Y, and Z are each being screened according to four criteria:Potential Return on Investment, Lack of Technological Risk, Environmental“Friendliness,” and Service to Community:• Project W: Return, high; Risk, medium; Environment, medium; Service, low• Project X: Return, medium; Risk, high; Environment, medium; Service, low• Project Y: Return, medium; Risk, medium; Environment, high; Service, high• Project Z: Return, medium; Risk, medium; Environment, high; Service, low.Create a scheme for screening the projects, assuming equal weight for all criteria.Which project comes out best; which word explain the output of scope with help of figure. How risk been evauted while describing the scope management.arrow_forwardE-Education is a new startup that develops and markets MBA courses offered over the Inter-net. The company is currently located in Chicago and employs 150 people. Due to strong growth, the company needs additional office space. The company has the option of leasingadditional space at its current location in Chicago for the next two years, but after that willneed to move to a new building. Another option the company is considering is moving theentire operation to a small Midwest town immediately. A third option is for the company tolease a new building in Chicago immediately. If the company chooses the first option andleases new space at its current location, it can, at the end of two years, either lease a newbuilding in Chicago or move to the small Midwest town. The following are some additional facts about the alternatives and current situation:1. The company has a 75 percent chance of surviving the next two years.2. Leasing the new space for two years at the current location in…arrow_forwardKlumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates Activity Cost Pool Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Activity Rate $ 11 per direct labor-hour $5 per machine-hour $50 per setup $ 150 per order $ 110 per shipment $ 900 per product Activity data have been supplied for the following two products Total Expected Activity Number of units produced per year Direct labor-hours Machine-hours Machine setups Production orders Shipments K425 M67 200 2,000 1,150 50 2,800 40 19 2 19 38 2 2 Product sustaining Required: How much total overhead cost would be assigned to K425 and M67 using the activity-based costing system? Activity Cost Pool K425 M67 Supporting direct labor Machine processing Machine setups Production orders Shipments Product sustaining Total overhead costarrow_forward
- A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Quotations from three firms are included in the following table of costs. Bidder Installed Cost Annual Operating Cost Annual Income from Mercury Recovery Salvage Value Foxhill $ 70,000 $5000 $6500 $10,000 Instrument Quicksilver 50,000 5000 2500 0 Almaden 90,000 5000 7800 10,000 If the installation will last 15 years and money is worth 12%, which equipment should be purchased?arrow_forwardEmerson Electric is considering the purchase of equipment that will allow the company to manufacture a new line of wireless devices for home appliance control. The first cost will be $80,000 and the life estimated is 6 years with a salvage value of $10,000. Three different salespeople have provided estimates regarding the added revenue the equipment will generate. Salespersons 1,2, and 3 have made estimates of $10,000 , $16,000 , and $18,000 per year respectively if the Companys MARR is 8% per year find the PW of each salespersons estimates.arrow_forwardCikarang Hospital had served its community for 40 years, and was the top-ranked hospital in the region for surgery, trauma, neonatal care, and teaching, as evidenced by its status as the official emergency facility for visiting head of states. It had 274 beds, employed 1,652 staff, and served over 22,000 patients each year with an annual budget of over CU 378 million. The hospital received 100% of its funding from a private foundation, and was governed by a BOD, and because of that, patients paid for their service through a combination of insurance coverage under a Patient Welfare Program. This Program was jointly funded by the foundation, donations, and any hospital surpluses. The charitable mission of the foundation was to improve living condition and opportunities for the million of people with no distinctions. Despite Cikarang's not-for profit status, it operated like a competitive enterprise whose revenue figure was compared of cost recovery from patients and their insurers. So,…arrow_forward
- Cikarang Hospital had served its community for 40 years, and was the top-ranked hospital in the region for surgery, trauma, neonatal care, and teaching, as evidenced by its status as the official emergency facility for visiting head of states. It had 274 beds, employed 1,652 staff, and served over 22,000 patients each year with an annual budget of over CU 378 million. The hospital received 100% of its funding from a private foundation, and was governed by a BOD, and because of that, patients paid for their service through a combination of insurance coverage under a Patient Welfare Program. This Program was jointly funded by the foundation, donations, and any hospital surpluses. The charitable mission of the foundation was to improve living condition and opportunities for the million of people with no distinctions. Despite Cikarang's not-for profit status, it operated like a competitive enterprise whose revenue figure was compared of cost recovery from patients and their insurers. So,…arrow_forwardCikarang Hospital had served its community for 40 years, and was the top-ranked hospital in the region for surgery, trauma, neonatal care, and teaching, as evidenced by its status as the official emergency facility for visiting head of states. It had 274 beds, employed 1,652 staff, and served over 22,000 patients each year with an annual budget of over CU 378 million. The hospital received 100% of its funding from a private foundation, and was governed by a BOD, and because of that, patients paid for their service through a combination of insurance coverage under a Patient Welfare Program. This Program was jointly funded by the foundation, donations, and any hospital surpluses. The charitable mission of the foundation was to improve living condition and opportunities for the million of people with no distinctions. Despite Cikarang's not-for profit status, it operated like a competitive enterprise whose revenue figure was compared of cost recovery from patients and their insurers. So,…arrow_forwardThe Sleepy Edge is a 40-unit, no-frills operation in the less scenic part of a major Queensland resort town. The owner, Mr. Smith, firmly believes that there is a need for his style of low-cost family accommodation amid the luxury and beauty of the area. His rooms are large, family-style rooms (there is no television, for example). Although there is plenty of room for future expansion, the grounds are fairly bare with a bit of landscaping, but mostly grass. Mr. Smith can serve breakfast to the rooms and provides tea-making facilities. There are now a lot of good restaurants and take-aways in the area. Mr.. Smith’s prices are less than half of what similar motels charge and only a fraction of what the big five-star properties are charging. And, really, he isn’t all that far away from the beach, shops and other attractions. The problem is occupancy. He has some regulars who come every holiday period (and have been doing so for the four years he has owned the property). Overall, occupancy…arrow_forward
- City A spends $100 million on a shopping mall, which is now half-built. The city now learns that it will lose most of its potential renters to a neighboring city, B. But the akim of A argues that his city must complete its mall, at a cost of an additional $150 million, because it has already spent so much. Is the akim correct? Why or why not?arrow_forwardTomato growers in the Netherlands have a huge productivity advantage over their competitors in Italy and Greece. Although those countries are sun drenched while the Netherlands are anything but, computerized, climate-controlled greenhouses, and a "soil" spun from basalt and chalk that resembles cotton candy, allows for precise control of humidity and nutrition, and enables growers to produce their crops year around. Growers in Italy and Greece generally grow their crops outdoors or in unheated greenhouses, and can only manage two crops a year. Dutch growers are able to achieve yields that are about ten times per square yard of those of Italian and Greek growers. And the Dutch have a supply chain advantage: an integrated Dutch trading company works closely with supermarket chains in Europe and suppliers around the world, so farmers are able to sell their output in high volume, rather than locally the way many farmers in other countries do. That enables Dutch growers to more closely…arrow_forwardThe organization has never owned hotels outside the UK before, and has hired a team of independent management consultants to advise them on how to proceed.They provided the consultants the following information during their initial meeting: A majority of their existing managers said they would like a chance to work abroad.None of their existing managers speak French fl uently.They will allow four weeks to rebrand the hotels. The new hotels must be ready to open after that time.They expect to recruit a large number of staff for the new French hotels, because more than 70 percent of the employees from the acquired organization left. They will require their managers to be fl exible and move between countries if any problems arise.Activity : Based on the information you have to date, what do you think the key priorities should be?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.