Operations Management
2nd Edition
ISBN: 9781260484687
Author: CACHON, Gerard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 6, Problem 2CQ
Summary Introduction
To determine: The form of improvement trajectory for the given information.
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A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40% of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50% will be given to workers and the other 50% will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units.- Compare the productivity after Bonus with the initial productivity. - Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.
Chapter 6 Solutions
Operations Management
Ch. 6 - Prob. 1CQCh. 6 - Prob. 2CQCh. 6 - Prob. 3CQCh. 6 - Prob. 4CQCh. 6 - Prob. 5CQCh. 6 - Prob. 6CQCh. 6 - Prob. 7CQCh. 6 - A learning curve following the power law has what...Ch. 6 - Prob. 9CQCh. 6 - Prob. 10CQ
Ch. 6 - Prob. 11CQCh. 6 - The learning curve coefficient LCC(10, 0.8)...Ch. 6 - Prob. 13CQCh. 6 - Instead of using the learning curve coefficient...Ch. 6 - Prob. 15CQCh. 6 - Prob. 16CQCh. 6 - Prob. 17CQCh. 6 - Prob. 18CQCh. 6 - Prob. 19CQCh. 6 - Prob. 20CQCh. 6 - Prob. 21CQCh. 6 - Prob. 22CQCh. 6 - Prob. 23CQCh. 6 - Prob. 24CQCh. 6 - Prob. 25CQCh. 6 - Prob. 1PACh. 6 - Prob. 2PACh. 6 - Prob. 3PACh. 6 - Prob. 4PACh. 6 - Prob. 5PACh. 6 - Prob. 6PACh. 6 - Prob. 7PACh. 6 - Prob. 8PACh. 6 - Prob. 9PACh. 6 - Prob. 10PACh. 6 - A company has 2200 employees, on average, and it...Ch. 6 - Prob. 12PACh. 6 - Prob. 13PACh. 6 - Prob. 14PACh. 6 - In October 1908, just prior to the launch of his...Ch. 6 - Prob. 2CCh. 6 - Prob. 3C
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- A production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 percent of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units. a) Compare the productivity after Bonus with the initial productivity b) Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.arrow_forwardA production operation is making 150 units of a product by engaging five workers for 300 hours. However, 40 percent of the units appear to have various quality problems, and the company decides to sell them as seconds at a price of £50 each when a normal unit is sold for £150. To improve the situation, several initiatives are proposed, including a scheme where, for every improvement, 50 percent will be given to workers and the other 50 percent will be held by the company. This results in a significant drop in defects as now only 10 units are faulty out of an output of 130 units. 1. Compare the productivity after Bonus with the initial productivity. 2. Determine the appropriate bonus per hour for the workers under the bonus scheme if the cost per piece is £70 both before and after the scheme.arrow_forwardGiven the trade-offs between efficiency and effectiveness, managers should strive for the highest Select one: a. efficiency given the effectiveness goals b. efficiency of the process c. effectiveness with customer goals d. customer satisfaction levels The braking system on a vehicle has two major components both of which must function in order that the breaks will work as intended. Assuming that the first component has a reliability of 96%, and the second a reliability of 99%. If the first brake component in the system is given a backup with reliability of 90%, then the overall reliability of the system will Select one: a. increase b. remain unchanged c. decrease d. none of the above O O O Oarrow_forward
- a bread manufacturer relies on maintenance employees to keep its rather quite old production equipment for their operation. Whenever the equipment breaks down, the maintenance team is able to repair the equipment quickly. However, they are less effective at avoiding these breakdowns and cannot predict when the equipment will break down. The maintenance group has modified the equipment over the years and, in any event, the manufacturer of the equipment is no longer in business. The maintenance employees teach each other how to repair the equipment, but have refused to document any of this information (saying that it is too difficult to document these details). The company owner has thought about firing the maintenance staff unless they document the maintenance procedures, but realizes that there is no one else who can repair the equipment. Discuss or explain the sources or types of power and contingencies (moderator) of power among the maintenance employees in this situation.arrow_forwardThe gap theory measures A.levels of satisfaction by comparing the service received to the service that was expected B.satisfaction or dissatisfaction by measuring the gap between the service a customer received and the service that was expected. C.service quality by evaluating the level of performance of the service provider and the level of satisfaction with the service encounter D.service quality by measuring the gap between the service a customer received and the service that was expected.arrow_forwardThe Teaching Learning in a class of a professional institute. The causes of poor performance of the students have been explored. A cause is a proven reason for the existence of the defect. A remedy is a change that can successfully eliminate or neutralize a cause of defects. The effect may be due to the combination of few such causes. Once the causes and remedies are available the potential cause affecting the system can be identified, analysis can be made and suggestions can be implemented to improve the performance of the system. With the available measures in the tables 1, 2, 3, 4, 5 construct the cause and effect diagram to improve the poor performance of a class. Table 1: Causes & Remedies under Curriculum Design Category Causes | Lengthy syllabus Out dated topics Inadequate study material Too many reference books suggested Remedy Needs to be revised by board of studies as per industries requirement Management must spend enough money to enrich library facility Table 2: Causes &…arrow_forward
- The quality of work of an entrepreneur is solely based on the quality that the manufacturers of his company puts out. Statement 2: When not enough products are sold, the company is entitled to reduce the entrepreneur’s pay. True or False?arrow_forward1) S1: In the pioneer years of the balanced scorecard development, innovation process was the same from internal processes. S2: Customer value is important to measure from time to time in order to identify change trends. Both statements are incorrect Only S1 is incorrect Both statements are correct Only S1 is correct 2) S1: A balanced scorecard contains both customer and internal business process performance measures since improvements in customer satisfaction should result in improvements in internal business processes. S2: Different companies, having different strategies, should have different balanced scorecards even if they are in the same industry. Both statements are incorrect Only S1 is incorrect Both statements are correct Only S1 is correctarrow_forwardThe customer perspective of the balanced scorecard approach is the most traditional view of the company. evaluates the internal operating processes critical to the success of the organization. evaluates how well the company develops and retains its employees. evaluates how well the company is performing from the viewpoint of those people who buy its products and services.arrow_forward
- A manufacturing company has a weekly product input of 1700 units. The average percentage of good-quality products is 83%. Of the poor-quality products, 60% can be reworked and sold as good-quality products. Determine the weekly product yield and the product yield if the good-product quality is increased to 92%.arrow_forwardCriterion deficiency occurs when performance standards focus on a single criterion and exclude other important but less quantifiable performance dimensions. Group of answer choices False Truearrow_forward1. The trading partners (such as suppliers, distributors and logistics service providers) are not part of the value stream of an organization. True False 2. A Total Quality Management (TQM) system systematically, sustainably and deliberately exposes hidden problems in an organization. True False 3. From a perspective of Statistical Process Control (SPC), a six-sigma process will have which of the following attributes? a) The USL and LSL will be separated by a distance of six sigma b) The process center will be aligned with the LSL c) The number of defects produced by the process will be 0.0018 parts per million d) All of the abovearrow_forward
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