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Full Om 5 5Th Edition Collier Solutions Manual Online PDF All Chapter
Full Om 5 5Th Edition Collier Solutions Manual Online PDF All Chapter
Manual
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OM5 C7 IM
Discussion Questions
1. What type of process—project, job shop, flow shop, and continuous flow—would most
likely be used to produce the following? Explain your reasoning.
2. Provide some examples of customer- and provider-routed services that you have
encountered that are different from those described in this chapter. Can you identify
any improvements to these processes?
FYI--To simplify things we only have two choices in OM but in the original research
articles (Collier and Meyer) there is a third choice: co-routed services such as playing
golf (must go hole 1 to 18 but otherwise the customer can do his/her own thing), bank
checkbook services, consulting, some medical and estate services, Scottrade on-line
services, H&R Block’s tax service, etc. This might come up in class and is similar to
hybrid processes in the product-process matrix.
3. List some common processes that you perform as a student. How can you use the
knowledge from this chapter, such as identifying bottlenecks, to improve them?
Example student processes include: studying for a test, applying for a student loan,
writing a term paper, applying for US citizenship, paying rent or automobile loans,
moving into or out of the dorm or apartment, reserving a U-haul, using it, and its
return; establishing credit, planning a wedding, etc.
Simply identifying the process is the first step followed by recognition of C7 concepts
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Other example job and process related questions students might cite include:
1. How much time does it take to process the good or service?
2. Where are service management skills needed in the process? Do we do a good job
of training for these types of skills at these points of customer contact?
3. Should we continue working on continuous improvement or is a more radical
reengineering approach required to make this process competitive?
4. What are the root causes of defects, errors and service upsets in each job and the
process?
5. What is the cost per unit of output (i.e., cost per unit or transaction, etc.)?
6. How is the process affected by global sourcing?
7. Should the process be split into one or more parallel stages?
8. What process tasks should be performed by teams?
5. What sustainability issues are present in the example restaurant order fulfillment
process example (Exhibits 7.6 to 7.11)? What other restaurant processes need to
include sustainability criteria in their design and day-to-day management?
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opportunities and manages risk for all products, systems, supply chains, and
processes to preserve resources for future generations.
Social Sustainability
• Product safety: Ensure consumer safety in using goods and services
• Workforce health and safety: Ensure a healthy and safe work environment
• Ethics and governance: Ensure compliance with legal and regulatory requirements
and transparency in management decisions
• Community: Improve the quality of life through industry-community partnerships
Economic Sustainability
• Performance excellence: Build a high-performing organization with a capable
leadership and workforce
• Financial management: Make sound financial plans to ensure long-term
organizational survival
• Resource management: Acquire and manage all resources effectively and
efficiently
• Emergency preparedness: Have plans in place for business, environmental, and
social emergencies.
(Note: an asterisk denotes problems for which an Excel spreadsheet template on the
CourseMate Web site may be used.)
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1. Research and find an example of a process and/or value chain improvement initiative
where sustainability is included in the analysis. Write a short paper (maximum of
two typed pages) describing the initiative similar to the chapter description about Alfa
Laval.
One objective of this “green” assignment is to get students motivated w/r to OM.
Students should write something similar to the example of Alfa Laval in the chapter
introduction.
2. Carbon dioxide emissions associated with a one-night stay in a hotel room are
calculated at 29.53 kg of CO2 per room day for an average hotel. If your hotel’s 102
rooms are all occupied for two days during a college football game, how much CO2
did the guests and hotel release into the atmosphere? What work and leisure
activities and processes in the hotel generate CO2 emissions? Provide three
examples. Explain.
And, of course, the vehicles that supply the hotel (vendors), airport transport, and
customer vehicles all contribute to the release of CO2 into the atmosphere. Ask your
students, “How can we reduce this release for say, hotel laundry services?” “How
can we design “green hotel processes?” Can we design “green hotels?” Can we
plant more trees on the hotel site? Can we paint the hotel roof white to reflect (not
absorb) the sun’s rays and heat?
OM must now analyze costs, time, quality AND sustainability in process and
value chain design!
If you Google “green hotels” you will get over 2 million hits such as the partial
example below:
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And in a nod to the wishes of its environmentally concerned membership, AAA has
added an "eco" icon to its 2010 Tour Books for hotels, motels, and other lodging
facilities. The AAA Eco Program identifies - and in turn, promotes - AAA-approved
lodgings that are certified by designated government and private programs. Clearly,
eco-conscious meeting and leisure travelers are putting their dollars (and their Euros,
yen, pesos and rupees) toward travel-related businesses with a focus on sustainability,
and their preferences can no longer be disregarded. And not only are those travelers
coming down on the side of green, but so are federal, state and local governments.
"In the hospitality industry, we're seeing a wave of new government mandates stating
that employees can only stay in or host meetings in green hotels," said Ray Hobbs, a
member of EcoRooms & EcoSuites' Board of Advisors and a certified auditor for
Green Globe International. "But there are only twenty three states with official green
certification programs, and the industry is still attempting to find the certification
process that best serves its needs."
For example, in 2007, Florida Governor Charlie Crist signed an executive order
mandating that all state meetings and conventions be held in designated green
facilities whenever possible. With the stroke of a pen, Governor Crist started a
veritable stampede of hoteliers scrambling to earn green certification for their
properties - and achieve a competitive advantage when jockeying for state business.
The mandate, while welcomed by environmental advocates in Florida, put a serious
strain on the state's excellent green lodging certification program, which has since
been nearly dismantled by drastic budget cuts. And Florida isn't alone.
3. Draw a flowchart for a process of interest to you, such as a quick oil-change service, a
factory process you might have worked in, ordering a pizza, renting a car or truck,
buying products on the Internet, or applying for an automobile loan. Identify the points
where something (people, information) waits for service or is held in work-in-process
inventory, the estimated time to accomplish each activity in the process, and the total
flow time. Evaluate how well the process worked and what might be done to improve
it.
This question helps students see processes from a larger perspective and better
appreciate the need for improvement and better design. Show their flowcharts in class
on overheads or as power points and let them explain the process, how it works,
performance metrics, etc.
The instructor should expect a simple flowchart with 3 to 10 activities possibly with
feedback loops. Make sure the students understand a group of tasks define a
workstation and the process map (flowchart) should be at the work station level. For
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many students this will be the first time they have organized their thinking about how
things are accomplished so be patient. Ask them questions such as (1) Where does the
process start and end? (2) Why does the process exist? (3) Can you identify the
bottleneck? (4) Is the bottleneck labor or equipment constrained? (5) Is there a "line
of visibility" in their flowchart? (6) Are there alternative ways to define how work
gets done?
5. A 30,000-seat college football stadium is used 18 times for games, concerts, and
graduation ceremonies. Each event averages four hours and assumes the stadium is
full for each event. The stadium is available 365 days a year from 6 am to midnight.
What is stadium (seat) utilization using Equation 7.1? Can you think of one or two
other assets that have such low resource utilization?
6. The demand for intensive care services in an urban hospital is 11 patients per hour on
Mondays while intensive care nurses can handle 4 patients per hour. What is nurse
(labor) utilization if five intensive care nurses are scheduled to be on duty for
Monday? What are the advantages and disadvantages of this resource schedule for
Mondays from the patient’s and management’s perspective?
Use Equation 7.2 and notice all equation inputs are in the same units of measure!
The planned nurse utilization is close to100% so any delays or longer emergencies
will probably result in patients waiting for service. If you assume sufficient capacity
of exam rooms, equipment, and doctors, then the bottleneck may very well be nurse
capacity. Management may like this situation because nurse staff capacity is almost
adequate, customers won't have to wait too long, and nursing labor costs are lower.
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7. A telephone call center uses three customer service representatives (CSRs) during the
8:30 a.m. to 9:00 a.m. time period. The standard service rate is 2.0 minutes per
telephone call per CSR. Assuming a target labor utilization rate of 80 percent, how
many calls can these three CSRs handle during this half-hour period?
For all of these problems emphasize that students must get all variables in the same
units of measure “before” plugging numbers into the formula! Not doing this is a
common mistake; for example, mixing up minutes and hours.
8. What is the implied service rate at a bank teller window if customer demand is 43
customers per hour, two bank tellers are on duty, and their labor utilization is 90
percent?
Service rate = ??
9. Refer to Exhibit 7.7 and recomputed the total value-added and non-value-added time
and cost given the following new information. If a restaurant uses iPads to place
orders and notify waiters when the customer’s order is ready, the time on the order
board (now an electronic order board) decreases from 5 to 1 minute, and the prepared
order wait time decreases from 5 to 3 minutes. How might speeding up the order and
delivery process affect customer satisfaction? Explain.
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Therefore, introducing technology into this restaurant ordering process has reduced
non-value added time and costs. In the spirit of continuous improvement, the next
initiative is to try to reduce VA times and costs using better procedures, equipment
(ovens), and operating practices.
10.* An express checkout line at a grocery store takes an average of 3 minutes to ring-up
a customer’s order. On average 4 customers are in the checkout line. What is the
average number of customers per hour that are processed in the checkout line?
WIP = R* T
4 = R*(3 min)
R = 1.33 customers per minute, or 60(1.33) = 80 customers/hour
The Excel template Little’s Law may also be used to solve this problem:
11.* An accounts receivable manager processes 200 checks per day with an average
processing time of 15 working days. What is the average number of accounts
receivable checks being processed in her office? What if through information
technology she reduces the processing time from 15 days to 10 days to 5 days? What
are the advantages and disadvantages of adopting this technology? Explain.
The Excel template Little’s Law may also be used to solve this problem. The first
calculation is shown below:
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12.* A manufacturer’s average work-in-process inventory for Part #2934 is 750 parts.
The workstation produces parts at the rate of 225 parts per day. What is the average
time a part spends in this workstation?
WIP = R* T
750 parts = (225 parts/day)(T days)
T = 750/225 = 3.33 days
The Excel template Little’s Law may also be used to solve this problem.
13. Marion Health Clinic sees patients on a walk-in basis only. On average, 10 patients
per hour enter the clinic. All patients register at the registration window with a
registration clerk (RC), which takes 3 minutes. After registration, but before being
seen by a nurse practitioner (NP), the registration records clerk (RRC) pulls the
patient’s records from the records room, which takes 6 minutes. At his or her turn,
each patient then sees a NP, who checks weight, temperature, and blood pressure.
This work activity takes 5 minutes. The NP determines if the patient must see a
doctor (MD) or can be handled by a Physician’s Assistant (PA). There is one MD,
one PA, one NP, one RRC, one BC, and one RC in the system at the current time.
The NP sends 40 percent of the patients to the PA and 60 percent to the MD. The
PA takes on average 6 minutes per patient whereas the MD takes 15 minutes. After
the patient sees the PA and/or MD, the patient pays the bill or processes insurance
information with the billing clerk (BC), which takes 5 minutes per patient. Then the
patient exits the process.
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a. Draw a process flow diagram, label everything, and place the times and
percentages given in the problem on the diagram. See the following.
Notice that in the base analysis, the RRC is at 100% labor utilization (10/10) and
the MD is overloaded at 150% (6/4) planned (100% actual) utilization. If 2 MDs
are used, their utilization drops to 75% (6/(4*2)).
b. What is the throughput in patients per hour of each stage in the process?
c. What are the labor utilization rates for the MD, NP, PA, BC, RRC, and RC? Are
these values appropriate? If not, how might you redesign the process? Where is the
bottleneck?
d. The PA often discovers the patient should see a MD so the patient is sent to the
MD after seeing the PA 50% of the time. How does this change affect your answers
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OM5 C7 IM
14. The Wilcox Student Health Center has just implemented a new computer system and
service process to “improve efficiency.” The process flowchart and analysis
framework is also provided. As pharmacy manager, you are concerned about waiting
time and its potential impact on college students who “get no respect.” All
prescriptions (Rxs) go through the following process:
Assume that students arrive to drop-off Rxs at a steady rate of two Rxs per
minute, with an average of one Rx per student. The average number of students in
process (assume waiting and being serviced) at each station is: DROP-OFF—five
students, PICK-UP—three students and PAY CASHIER—six students.
The fill Rx station typically has 40 Rxs in process and waiting on average. Because of
this perceived long wait, 95 percent of the students decide to come back later for
pick-up. They come back an average of three hours later. If the students choose to
stay, each name is called as soon as the Rx is filled and the student then enters the
pick-up line. Assume that the system is operating at a steady state.
This is not an easy problem but it illustrates you must flowchart both people
and information (Rx here) flows to do a good process analysis.
a. What is the average time a student spends in the pharmacy if they stay to pick-up
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OM5 C7 IM
WIP and R are given in problem and T is computed. For example, T = WIP/R = 40/2
= 20 minutes for filling Rxs.
b. How many minutes does the student spend in the pharmacy if he or she picks-up the
Rx 3 hours later (i.e., the student goes home after dropping the Rx off)?
c. What is the average time in minutes that all students spend in the pharmacy?
d. What is the average time in minutes that the Rx spends in the process? Count time
from entering the drop-off line to completing payment.
0.95(7 min + 180 min) + 0.05(27 min) = 177.65 + 1.35 = 179 minutes
15. A manufacturer of air conditioner compressors is concerned that too much money is
tied up in its value chain. Average raw material inventory is $50 million and work-in-
process (WIP) production inventory is $20 million. Sales are $20 million per week
and finished goods inventory averages $30 million. The average outstanding accounts
receivable is $60 million. Assume 50 weeks in one year. The value chain is shown
below:
a. What is the total flow (process) time of a throughput dollar? (Hint: Use a WIP =
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OM5 C7 IM
First, review the calculations below. If we add the flow times for each process
in the value chain we obtain .05 + .02 + .03 + .06 = .16 years or 8 weeks. R
= ($20m/week)(50 weeks) = $1,000m/year). This problem applies Little’s
Law to a supply chain.
Clearly, accounts receivable ties up $60m in cash and takes on average .06 years or 3
weeks to process and collect the money. The fact is a dollar tied up in accounts
receivable is just as valuable as a dollar tied up in production or inventory.
38% (3/8) of the total flow time and total cash to operate the business ($60m/$160m)
is due to accounts receivable.
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OM5 C7 IM
Hopewell Hospital is trying to reduce costs yet maintain high quality. There are many
opportunities for errors in writing and filling an Rx in a hospital pharmacy and this case
focuses, in part on that issue. The case cites national studies on hospital pharmacies found
error rates ranging from .01 percent (1 in a 1,000) to 15 percent (15 in 100).
The focus of the case is on job and process design and "how to organize and group
work?" Instructors might want to assign other (extra) questions to focus student attention
or at least pose during class (see teaching plan).
1. Draw the process flowchart including processing times and capacities per step, and
total time per prescription.
Since process steps (stages) are in series this is a relatively easy assignment. See Excel
diagram and computations later in this teaching note. Students normally do great
flowcharts. The numbers in the OM4 case have changed from previous OM editions!
2. As a baseline measure for one time period, what is the labor utilization if 30
prescriptions arrive between 8 a.m. and 9 a.m. on Monday and four or five pharmacists
are on duty doing all seven steps? (You do not have the data to evaluate staffing levels
by hour of the day for Monday.)
See answers on spreadsheet that follows. We use Equation 7.2 here. If 4 pharmacists
does all steps then Utils = 121.3% or if 5 pharmacists do all steps Util% = 97%.
3. Clearly identify two other ways to group and divide the work among the medical
technicians and pharmacists, compute labor utilizations, and discuss the advantages
and disadvantages of each job and process design option.
The case questions are general so expect a wide variety of student options. The idea is
to get then to think in depth about job and process design and how one might group
work and what are the advantage and disadvantages. Three possible job/process design
options are:
Advantages - one process and Rx owner, higher quality and less opportunity for errors
(no handoffs), job enlargement
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OM5 C7 IM
The spreadsheet analysis indicates with 4 pharmacist utilization is 121% and with 5
pharmacists utilization is 97%. You might also discuss with the students that the times
per workstation activity might be reduced (work faster) and that would free up staff
capacity.
Also, note that if you group all work and one pharmacist fills a RX from A to Z, the
bottleneck at Step 5 does not matter. Only if each step (stage) is discrete (like an
assembly line) would the BN matter and then total process output is constrained.
(2) Process Design Option B -- Assign steps 1 and 7 to medical technicians and steps
2 to 6 to pharmacists.
Advantages - lessen workload on pharmacists labor pool, all that is legally required
With Option B utilization is 96.2% with 4 pharmacists and 92.3% with 5. Notice that
the service rate went from 6.19 Rx/hour to 7.8 Rx/hour assuming this option.
(3) Process Design Option C -- Assign steps 1 and 7 to medical technicians and group
steps 2 to 4 and steps 5 to 6 and assign to pharmacists.
Advantages - more job and pharmacists specialization, may become more efficient
(learning curve)
Disadvantages - since the two pharmacists workstation are now interdependent must
be staffed at all times, not sure about impact on quality, uneven assignment of work
Step 2 to 4 Workstation utilization with 2 pharmacists is 92.6%. Step 5 and 6
workstation with 2 pharmacists is 100%.
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OM5 C7 IM
Other case questions you might use during class discussion or assign prior to case
write-up are as follows.
Low High
• Quality is #1 -- zero errors, minimize opportunities for errors, process and customer
ownership assigned, etc.
• Both medication and service quality are highly dependent on the job and process
design.
3. Would you rather have one pharmacist handle your prescription from A to Z or
can these tasks be assigned to different pharmacists?
For goods-producing assembly lines job specialization has many advantages (we
cover assembly line balancing in Chapter 8) but in this professional pharmacy service
it may not be advantageous.
Basically, yes. Not much latitude for parallel workstations given the work and quality
control requirements.
5. How can software technology help ensure quality? (Pharmacy software checks
thousands of drug interactions and recalls while a human does not have this memory
capability).
Teaching Plan
You can use the four case questions and the five extra questions to create a good case
discussion depending on how much time you wish to allocate to the case. If you teach
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OM5 C7 IM
this case on the board it can take up to one hour (drawing process stages, putting up
each option with numbers and advantages and disadvantages, address a few of extra
questions, etc.). You can also have student teams present this case and then lead the
discussion.
• How you group (organize) work affects resource utilization, waiting time, cost, and
quality—it does matter—that is, OM does matter!
• Rx ownership is important w/r to the tradeoffs between costs, quality control, risk,
and liability.
• Job and process design is important for any functional area of a business.
• Operations expertise is required to make good job and process design decisions.
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OM5 C7 IM
Rx
min/Rx 0.5 1.3 1.4 1.0 3.2 0.8 1.5 9.70
6.19
Capacity 120.0 46.2 42.9 60.0 18.8 75.0 40.0 (60/9.7)
(Rx/Hour) BN
JOB & PROCESS DESIGN -- OPTION A
If you assume all work can be grouped together than one pharmacist has a capacity of 6.2 Rxs/hour
or one RX every 9.7 minutes. Four pharmacists have an average utilization of 121% so not feasible.
Here, 5 pharmacists have an average labor utilization of 97% if they do all work.
or 6.1 Rxs/hour. The revised pharmacist utilization 96.2%. If 5 pharmacist are assigned under these job and
process design assumptions then utilization decreases to 92.3%.
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Arrival Rate
= 30 Arrival Rate = 30 Arrival Rate = 30 Arrival Rate = 36
Service Rate Service Rate
= 6.19 = 6.19 Service Rate = 7.80 Service Rate = 7.80 (60/7.7)
No. Phar = 4.00 No. Phar = 5.00 No. Phar = 4 No. Phar = 5
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OM5 C7 IM
20
Another random document with
no related content on Scribd:
By Alfred Tennyson
OPPORTUNITY
By Edward Rowland Sill
II
III
IV
VI
VII
PICKETT’S CHARGE
By Fred Emerson Brooks
“INASMUCH....”
By Edwin Markham
TO GERMANY
By George Sterling
II
III
IV
TO THE WAR-LORDS
By George Sterling
II
III
PAULINE PAVLOVNA
By T. B. Aldrich
(Scene: Petrograd. Period: The present time. A ballroom in the
winter palace of the prince. The ladies in character costumes and
masks. The gentlemen in official dress and unmasked, with the
exception of six tall figures in scarlet kaftans, who are treated with
marked distinction as they move here and there among the
promenaders.
Quadrille music throughout the dialogue. Count Sergius Pavlovich
Panshine, who has just arrived, is standing anxiously in the doorway
of an antechamber with his eyes fixed upon a lady in the costume of
a maid of honor in the time of Catherine II. The lady presently
disengages herself from the crowd, and passes near Count
Panshine, who impulsively takes her by the hand and leads her
across the threshold of the inner apartment, which is unoccupied.)
He. Pauline!
She. You knew me?
He. How could I have failed? A mask may hide your features, not
your soul. There’s an air about you like the air that folds a star. A
blind man knows the night, and feels the constellations. No coarse
sense of eye or ear had made you plain to me. Through these I had
not found you; for your eyes, as blue as violets of our Novgorod, look
black behind your mask there, and your voice—I had not known that
either. My heart said, “Pauline Pavlovna.”
She. Ah, your heart said that? You trust your heart then! ’Tis a
serious risk! How is it you and others wear no mask?
He. The Emperor’s orders.
She. Is the Emperor here? I have not seen him.
He. He is one of the six in scarlet kaftans and all masked alike.
Watch—you will note how every one bows down
Before those figures; thinking each by chance
May be the Tsar; yet none know which is he.
Even his counterparts are left in doubt.
Unhappy Russia! No serf ever wore such chains
As gall our Emperor these sad days.
He dare trust no man.