Assignment 1

Rana Mohamed Nasreldin Sadek

Mini Case 1:
The Goode and Cooke Company produces several models of frying pans. There is little difference in the production time
required for the various models; the plant is designed to produce 160 frying pans per eight-hour shift, and there are two
shifts per working day.However, the plant does not operate for the full eight hours: the employees take two 12-minute
breaks in each shift, one in the first four hours and one in the second four hours; two hours per week are devoted to
cleaning the factory and performing maintenance on the machines; one four-hour period every four weeks is devoted to
the meeting of the quality circle. The plant usually produces about 3,500 frying pans per four-week period. You may
ignore holidays in solving this problem. Answer the following questions by adjusting the data to a four-week time period.

a.What is the design capacity in frying pans?

20 working days (4*5 working days)

-Design Capacity 6,400 packs/four-weeks

b.What is the effective capacity in frying pans? As a percent?

Available time 320 hours
Employee breaks -16
Cleaning -8
Meeting of Quality -4
total 292 hours
Number of pans produced per hour= 160/8= 20 Pans
Effective Capacity= 292*20= 5840 pans
In percent =5840/6400=91.25%

c.What is the actual output?

3500 Pans
d.What is the efficiency?
actual/effective capacity 3500/5840 59.93%

e.What is the utilization?

actual/design capacity 3500/6400 54.69%

f.Re-work the problem using a time period of one eight-hour shift.

1-Design Capacity in one eight hour shift 160 Pans
2-Effective Capacity
Available time 008 hours
Number of pans produced per hour 20 Pans
Effective Capacity
Available time per 4weeks 292 hours
Availabe time per shift =292/20/2= 7.3 hours

Effective Capacity per shift: =7.3*20= 146 Pans

=91.25%

The rest of percentages of percentages of KPIs are the same.

Mini Case 2:
1-In some instances, the outsourced service occurs in different location, while in others it takes place inside the
organization doing the outsourcing, as the food service did in this case. What advantages were there in having the
outsourced work performed within Al-Salama hospital? Suppose a different hospital outsourced its food service but
decided not to have the work performed in-house. What might its rationale be?

ANS:

Employees outsourced tho still work on the hospital premises have a more sense of belonging towards the
organization, employees feel more valued in that sense although not really hired by the hospital. Additionally, having
all employees in the same place allows rules and regulations of management to be better monitored and controlled,
increasing overall operations efficiency in that case.

Along with that example of Al-Salama hospital, some organizations prefer the outsourced employees to be off-site for
multiple reasons, such as cost cutting of expenses the employees wouldn’t be performing needed tasks inside the
hospital premises which would save on operations cost. Moreover, going back to the point of managerial control focus
of management would be on the main operating departments of the core business while the outsourced company
could manage the supporting employee functions which is the food service in this case.

2. In the housekeeping situation, why not just forget about outsourcing, especially because the hospital ended up
rehiring its employees anyway?

ANS:

Outsourcing employees hammers on the idea of specialization, the outsourced company would be able to better hire
housekeeping individuals that are competent for the job requirements because this is the outsourced company’s core
of business, rather than the hospital doing the hiring process. Also, it was mentioned in the case that the hospital is
facing financial constraints and hence that being said as mentioned in question 1 it is more cost efficient to outsource
employees. The issue with the housekeepers is the fact that they don’t feel a sense of belongness towards the
organization because of the loneliness in the workplace it’s not an outsource issue. To conclude, this is a cost/benefit
analysis, in Al-Salama Hospital case it’s better to push on outsourcing employees for both financial benefit and
specialization (Expertise)of job benefits too.

3. For laundry service, what might have been the rationale for asking another hospital to join it?

Along with outsourcing the risk of knowledge sharing is possible, so the idea of having another rival joining in the same
management way/ operations execution process makes it better to improve overall quality of operations. Furthermore,
having more than one hospital dealing with the outsourced company could increase the bargaining ability in business
deals which serves Al-Salama hospital’s financial needs.