Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 7, Problem 12P
Summary Introduction
To determine: The CAD software system that MB person must decide to rent.
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McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is for 500 sandwiches. A sandwich costs $1.30 to produce. Non-defective sandwiches sell, on the average, for $2.50 per sandwich. Defective sandwiches cannot be sold and are scrapped. The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period. Designs K1, K2, and K3 cost $80,000, $100,000, and $140,000, respectively. Under design K1, there is a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 chance that 70 out of each 100 sandwiches are non-defective. Under design K2, there is a .85 chance that 90 out of each 100 sandwiches are non-defective and a .15 chance that 75 out of each 100 sandwiches are non-defective. Under design K3, there is a .90 chance that 95 out…
McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is for
600
sandwiches. A sandwich costs
$1.30
to produce. Non-defective sandwiches sell, on the average, for
$2.50
per sandwich. Defective sandwiches cannot be sold and are scrapped.
The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period. Designs K1, K2, and K3 cost
$115,000,
$140,000,
and
$170,000,
respectively.
Under design K1, there is a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 chance that 70 out of each 100 sandwiches are non-defective. Under design K2, there is a .85 chance that 90 out of each 100 sandwiches are non-defective and a .15 chance that 75 out of each 100 sandwiches are non-defective. Under design K3, there is a…
What role does scalability play in performance measurements, and why is it significant for business growth?
Chapter 7 Solutions
Operations Management
Ch. 7.S - Prob. 1DQCh. 7.S - Prob. 2DQCh. 7.S - Prob. 3DQCh. 7.S - How is actual, or expected, output computed?Ch. 7.S - Explain why doubling the capacity of a bottleneck...Ch. 7.S - Distinguish between bottleneck time and throughput...Ch. 7.S - Prob. 7DQCh. 7.S - Prob. 8DQCh. 7.S - Prob. 9DQCh. 7.S - Prob. 10DQ
Ch. 7.S - Explain how net present value is an appropriate...Ch. 7.S - Prob. 12DQCh. 7.S - What are the techniques available to operations...Ch. 7.S - Amy Xias plant was designed to produce 7,000...Ch. 7.S - For the past month, the plant in Problem S7.1,...Ch. 7.S - If a plant has an effective capacity of 6,500 and...Ch. 7.S - Prob. 4PCh. 7.S - Material delays have routinely limited production...Ch. 7.S - Prob. 6PCh. 7.S - Southeastern Oklahoma State Universitys business...Ch. 7.S - Under ideal conditions, a service bay at a Fast...Ch. 7.S - A production line at V. J. Sugumarans machine shop...Ch. 7.S - A work cell at Chris Ellis Commercial Laundry has...Ch. 7.S - The three-station work cell Illustrated in Figure...Ch. 7.S - The three-station work cell at Pullman Mfg., Inc....Ch. 7.S - The Pullman Mfg., Inc., three-station work cell...Ch. 7.S - Klassen Toy Company, Inc., assembles two parts...Ch. 7.S - Prob. 15PCh. 7.S - Prob. 16PCh. 7.S - Markland Manufacturing intends to increase...Ch. 7.S - Using the data in Problem S7.17. a. What is the...Ch. 7.S - Given the data in Problem S7.17, at what volume...Ch. 7.S - Janelle Heinke, the owner of HaPeppas!, is...Ch. 7.S - Prob. 21PCh. 7.S - Prob. 22PCh. 7.S - Prob. 23PCh. 7.S - Prob. 24PCh. 7.S - Prob. 25PCh. 7.S - As a prospective owner of a club known as the Red...Ch. 7.S - Prob. 27PCh. 7.S - James Lawsons Bed and Breakfast, in a small...Ch. 7.S - Prob. 29PCh. 7.S - Prob. 30PCh. 7.S - Prob. 31PCh. 7.S - What is the present value of 5,600 when the...Ch. 7.S - Prob. 33PCh. 7.S - Prob. 34PCh. 7.S - Bolds Gym, a health club chain, is considering...Ch. 7.S - Prob. 1VCCh. 7.S - Prob. 2VCCh. 7.S - Prob. 3VCCh. 7 - What is process strategy?Ch. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - What is process redesign?Ch. 7 - Prob. 5DQCh. 7 - Name the tour quadrants of the service process...Ch. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Identify manufacturing firms that compete on each...Ch. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 11DQCh. 7 - Identify the competitive advantage of each of the...Ch. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Explain what a flexible manufacturing system (FMS)...Ch. 7 - Prob. 17DQCh. 7 - Prepare a flowchart tor one of the following: a....Ch. 7 - Prob. 2PCh. 7 - Prepare a time-function map for one of the...Ch. 7 - Prepare a service blueprint for one of the...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Ski Boards, Inc., wants to enter the market...Ch. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Using Figure 7.6 in the discussion of value-stream...Ch. 7 - Metters Cabinets, Inc., needs to choose a...Ch. 7 - Rochester Manufacturings Process Decision...Ch. 7 - Prob. 2CSCh. 7 - Prepare the case for an optimistic sales manager...Ch. 7 - Prob. 1.1VCCh. 7 - Prob. 1.2VCCh. 7 - Prob. 1.3VCCh. 7 - Prob. 1.4VCCh. 7 - Prob. 2.1VCCh. 7 - Prob. 2.2VCCh. 7 - Process Strategy at Wheeled Coach Video Case Video...Ch. 7 - Prob. 2.4VC
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Similar questions
- Mont Corp produces and sells 1,000 dining tables per year. Currently its only quality problem with the products is related to varnishing. It currently incurs $400 per year for quality training and $600 per year for reliability engineering. Inspection cost is $6 per unit, and all units produced are inspected. Traditionally, at an internal inspection, 9% of all units fully-produced are found to have problems with the varnishing, and are reworked. Rework cost is $100 per unit. Defective units sold to customers are returned to the company and reworked. External failures are 1% of units sold, and the company incurs the shipping costs at the rate of $20 per unit. In 2020, management are considering an alternative method of inspecting products which will reduce inspection cost by $1.50 per unit. The alternative method will reduce the internal failure to 4% of all units produced, and increase the external failure rate to 6% of all units sold. In addition, with the alternative inspection…arrow_forwardA design analyst at paccar winch works for eight hours per day and produces sixteen designs. Instead of a T-scale, he uses a drafter and find that he is able to now produce twenty designs. His new productivity is ---- designs per hour?arrow_forwardAs a manager what strategy, style, or action plan in Scope for Reducing Costs in terms of Process Optimization. Please explain.arrow_forward
- Critically discuss the concept of benchmarking as it relates to the performance improvement of Fastjet. Give typing answer with explanation and conclusionarrow_forwardDescribe the importance of the matching process capabilities with product requirements?arrow_forwardLincoln Electric Inc. has a direct manufacturing cost of $147/welding unit and defective units can be reworked for $46/unit. Of the 343 units that begin production per day, 89% are good and 60% of defective motors can be reworked. What is the yield?arrow_forward
- Consider a local business you've visited in the past and describe one job to be done, the workers needed for the entire business, and how the workers help achieve the objectives of the business. Describe factors affecting the work environment of the business selected in Q1 that must be considered in improving their existing work systems design.arrow_forwardshow complete solutionarrow_forwardThe Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogs. The company initiates production of 488 cabinet packages each week. The percentage of good-quality cabinets averages 84% per week, and the percentage of poor-quality cabinets that can be reworked is 64%. If the direct manufacturing cost per cabinet is $78 and the rework cost is $38, what is the manufacturing cost per good product? (Round your answer to 2 decimal places, e.g. 35.50) Manufacturing cost per good product = $ per cabinetarrow_forward
- Describe the process diagram shown and what could be improved and make recommendations for those improvementsarrow_forwardWhich of the following is considered as a design decision? Select one: O a Market share growth b. Quality control O c Inventory management O d. Facility layout Clear my choice ge pe here to search ideapadGAMINGarrow_forwardMcBurger, Inc., wants to redesign its kitchensto improve productivity and quality. Three designs, calleddesigns K1, K2, and K3, are under consideration. No matterwhich design is used, daily production of sandwiches at a typi-cal McBurger restaurant is for 500 sandwiches. A sandwichcosts $1.30 to produce. Non-defective sandwiches sell, on theaverage, for $2.50 per sandwich. Defective sandwiches cannotbe sold and are scrapped. The goal is to choose a design thatmaximizes the expected profit at a typical restaurant overa 300-day period. Designs K1, K2, and K3 cost $100,000,$130,000, and $180,000, respectively. Under design K1, thereis a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 chance that 70 out of each 100 sandwichesare non-defective. Under design K2, there is a .85 chance that90 out of each 100 sandwiches are non-defective and a .15chance that 75 out of each 100 sandwiches are non-defective.Under design K3, there is a .90 chance that 95 out of each…arrow_forward
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