MBA Grade

Cairo University

Chapter 7:
Process Design
Case studies
Operation Management
 TABLE OF CASES:

01 02
Rochester Manufacturing Wheeled Coach
Company- RMC

03 04
Alaska Airlines Arnold Palmer
Hospital
 01
Rochester Manufacturing
Company- RMC
Rochester Manufacturing Corporation (RMC) is considering moving some of its
production from traditional numerically controlled machines to a flexible
manufacturing system (FMS). Its computer numerical control machines have been
operating in a high-variety, low-volume manner. Machine utilization, as near as it can
determine, is hovering around 10%. The machine tool salespeople and a consulting
firm want to put the machines together in an FMS. They believe that a $3 million
expenditure on machinery and the transfer machines will handle about 30% of RMC’s
work. There will, of course, be transition and startup costs in addition to that.
 The firm should be able to go from 15 to about 4
machines, and personnel should go from 15 to perhaps
as low as 3. Similarly floor space reduction will go from
20,000 square feet to about 6,000.
Throughput of orders should also improve with processing
of this family of parts in 1 to 2 days rather than 7 to 10.
Inventory reduction is estimated to yield a one-time
$750,000 savings, and annual labor savings should be
in the neighborhood of
$300,000.
return on investment showed it to be between 10% and
15% per year.
Question 1:
As a production manager for RMC, what do you
recommend? Why?

Question 2:
Prepare a case by a conservative plant manager for
maintaining the status quo until the returns are
more obvious.

Question 3:
Prepare the case for an optimistic sales manager
who suggests that you should move ahead with the
FMS now.
Question 1:
As a production manager for RMC, what do
you recommend? Why?
Production Manager focus on Increasing Efficiency and customer
satisfaction
•With FMS
Less machineries
Decrease labor cost
Quick processing
Recommendation
FMS allows for better control and more efficient process
Question 2:
Prepare a case by a conservative plant
manager for maintaining the status quo
until the returns are more obvious.
Focus on ROI Conservative in taking risks
With FMS
The number is not satisfactory (The company has traditionally had
an expectation that projects should yield well over 15%
Many hidden costs
Uncertain Risk and outcome
Recommendation
Prefer Not to take the risk to consume money in FMS
.
Question 3:
Prepare the case for an optimistic sales
manager who suggests that you should
move ahead with the FMS now.
•Improved Process by enhancing time of delivery using JIT
•enhancing quality to Increase market share
•If company is good in that crossing break even than this would
increase rate of profitability and therefore ROI will also become high
than their projection
•Management tasks easier for example small number of people for
supervision and limited number of machines
•Better utilization
.
 02
Wheeled Coach
Wheeled Coach, based in Winter Park, Florida, is the world’s
largest manufacturer of ambulances. Working four 10-hour
days each week, 350 employees make only custom-made
ambulances; virtually every vehicle is unique. Wheeled Coach
accommodates the marketplace by providing a wide variety of
options and an engineering staff accustomed to innovation
and custom design.
 03
Alaska Airlines
Alaska Airlines is unique among the nine major U.S. carriers
not only for its extensive flight coverage of remote towns
throughout Alaska (it also covers the U.S., Hawaii, and Mexico
from its primary hub in Seattle). It is also one of the smallest
independent airlines, with 10,300 employees, including 3,000
flight attendants and 1,500 pilots. What makes it really
unique, though, is its ability to build state-of-the-art
processes, using the latest technology, that yield high
customer satisfaction. Indeed, J. D. Power and Associates has
ranked Alaska Airlines highest in North America for seven
years in a row for customer satisfaction.
Question 1 : Prepare a flow chart of the process of
passenger’s bag follows from kiosk to destination
carousel?
1-Passenger check in the kiosik

2-Passenger tag their own bag with barcode stickers

3-Passengers deliver their bag to the customer service

4- scan through automated system :

(a) Pass scan , automaticaly send and transfer baggage their locations.
(b) fail scan , bags are munually opened and inspected & then if proven gulity
so further investigation with the police
Question 1 : Prepare a flow chart of the process of
passenger’s bag follows from kiosk to destination
carousel? Con’t

5- baggage handler loads the baggage onto cart to be transfered to the plan

6- baggage delivered to the terminal’s carousel within 20 minutes of the plan

arrival to the gate .

7- time taken exceeded 20 minutes ?

(a) If no >> achieved.
(b) If yes >> Passengers receive compensations.
Question 2: What other processes can airline
examine ? Why is each important?

The process of aircraft catering service

conductive to further improve customer satisfaction

The process of aircraft cleaning

More comfortable experience and impression for the customer

Marketing process
Increase market share , consequently increasing revenues

The feedback from the customer

Identify their own shortcomings and improve themselves
Question 3: How does the kiosk alter the check in
process?

Separation : to fasten the check in process , as the passengers can do

their own check in and produce their own barcode.

Self service passengers put their own luggage in the kiosk by them
selves and put the stickers on them

Automation kiosk just help the passengers confirm their ticket and
other documents and then give them the barcode sticker to put them
on the luggage.

Scheduling Alaska airline was the first airport to sell tickets via internet
Question 4 : What metrics ( measures) are needed to
track the baggage?

One of the most used metrics is time measures it is measured in

such way of tracking time in minutes for the baggage to reach
carousel.

The system is called time to carousel (TTC) , so that the time

needed for the whole process should not exceed 20 minutes .
Question 5 : What is the role of scanners in the
baggage process?

1- Improve accuracy , efficiency and reliability .

2- Check in the luggage when the passenger arrives .

3- The scanner once again will scan the luggage before they are
delivered back to the passenger.

4- It avoids bags getting lost or being sent to the wrong

destination.
 04
Arnold Palmer Hospital
Alaska Airlines is unique among the nine major U.S. carriers not only for
its extensive flight coverage of remote towns throughout Alaska (it also
covers the U.S., Hawaii, and Mexico from its primary hub in Seattle). It is
also one of the smallest independent airlines, with 10,300 employees,
including 3,000 flight attendants and 1,500 pilots. What makes it really
unique, though, is its ability to build state-of-the-art processes, using
the latest technology, that yield high customer satisfaction. Indeed, J. D.
Power and Associates has ranked Alaska Airlines highest in North
America for seven years in a row for customer satisfaction.
Question 1: As Diane’s new assistant, you need to
flowchart this process. Explain how the process
might be improved once you have completed the
chart. ?
Question 2: If a mother is scheduled for a Caesarean-
section birth (i.e., the baby is removed from the
womb surgically), how would this flowchart change?
Question 3: If all mothers were electronically (or
manually) preregistered, how would the flowchart
change? Redraw the chart to show your changes. ?
Question 4: Describe in detail a process that the
hospital could analyze,
besides the ones mentioned in this case.
 Prepared By:
Rochester
Manufacturing Wheeled Coach
Company- RMC Mahmoud
Ahmed

Arnold Palmers
Alaska Airlines
Hospital
Islam
Eman

Under-Supervison: Dr. Magdi Abdelfattah

THANKS!