Operations Management

The Business I have selected for my paper is a School. The operation of a school seems very simple but in reality it requires many inputs and processes which then lead to the desired outcomes. Operation of any business can be evaluated by the inputs and the processes done in it (Reider , 2008). The operation of the school can be divided into three parts:

Inputs

The inputs put into the school include capable teachers. Teachers are the primary requirement of any educational institution as they share their knowledge and wisdom among the students and allow the minds of the student to mature thinking and develop their ideas.

Better education is considered as the prime source for any nation to progress and schools help to educate the nation. Properly trained teachers should ne hired. Other inputs should contain management workforce, some finance personal and an administration team. A large building with huge fields for different sports activities will also be required for the school. Numerous student chairs and tables will be required for each of the classrooms. Computer lab and all the science lab equipment should also be required for the students to perform practical.

Cleaning and security staff should also be hired for the effective running of the school as they are also important to any business. Lack of security will mean unprotected and vulnerable workplace and lack of cleaning staff will mean a polluted atmosphere especially at a place where several students come.

Process

Process is the duty which the inputs have to follow in order to get to the favorable outcomes. The processes in the school are primarily teaching and developing young minds. Academic results are important for the school as well as they in the end asses the school’s reputation.

But a school’s process is not only limited to academic learning. Schools also provide physical training, indoor and outdoor sports activities, gymnastic, yoga (is also thought in some schools), debates, quiz shows and many other developing activities. Some schools also have an audio visual class in which they are shown various audio and visual broadcasts followed by a small quiz to help brainstorm the mind and build a concentration level in the students. Schools also teach the students against racism and discrimination on the bases of cast and status.

All the students learn in the same classroom and wear the same uniform regardless of their cast or status. This teaches the students harmony to live together and also places merit a first choice against others.

Outcomes

The prime outcome of a school is to educate the students to an optimum level. Educated students will serve the country and make the institution’s and country’s name proud. The physical activities will have stronger and much sharper students and have a positive outcome on the students. Debates, quiz shows like spelling bee will sharpen the young minds and help them to show their qualities on the center stage.

Indoor and outdoor sports will also serve the students in maintaining their health and build on their reflexes. Playing sports will release the stress of homework and other academic stress which the students have to face in their schooling life. So the outcome of an successful school is to present quality education with many other co-curricular activities to help furnish the young minds of the students.

Reference:

1. Rob Reider. (2008). Effective Operations and Controls for the Small Privately Held Business. Wiley.

Information System Management (ISM) is the process by which organisations form strategies on how forces can be applied on information technology use and management to create value to their products and enhance competitive advantage (Pricewaterhousecoopers’, 2009). Organisations have used information systems in defining most of their production operations and to foster competitive strategies leading to improved quality production.

Information systems management is essential in organisations to help the executive monitor all stakeholders’ activities and contributions towards quality performance leading to increased returns on assets (Baltzan & Phillips, 2009). Comments on Information System Management (ISM) Information system management can be applied in different ways to directly support the organisational objectives to improve customer services through operational efficiency and effectiveness (Pricewaterhousecoopers’, 2009). Information systems management can be used to promote the following. First, cost reductions to customers and to the organisation as a whole.

A global SAP system can be implemented in an organisation to facilitate streamlining of the supply chains based on decision-making to ensure improved response time to customer requirements. SAP systems leads to improved inventory management and purchasing processes to promote customer services through integrated customer services and the incumbent inventories (Baltzan & Phillips, 2009). Integrating services will lead to cost effective way of procuring services and communicating with the customers and suppliers to meet their orders and requirements effectively (Baltzan & Phillips, 2009).

Improved inventories will facilitate ordering and reordering when necessary. Second, Information technology systems can be managed to ensure product or service differentiation and competitive advantage in an organisation. Electronic marketing systems can be used in organisations to enable customers to order online at their own convenience in a 24/7 basis. Intranet links can be created to enable customers’ access different services or products offered in an organisation to identify the available inventories, orders and shipping details and requirements such as advance notices, different shipping options available and their respective charges.

Third, the management in an organisation to facilitate innovation can implement information systems management. Information systems can be used in tracking new product development and performance promotion (Baltzan & Phillips, 2009). Through information system management, organisation can easily determine and assess performance for example sales performance to facilitate adjustments in the inventory and stock availability taking advantage of the potential opportunities as availed in different markets in a cost effective way (Pricewaterhousecoopers’, 2009).

Forth, information system management can be used in management operations to facilitate quality improvement and continuous organisational growth. SAP and Cognos Executive Management Information system provides different operational platforms through which successful replication of the systems can be done to allow increased reachability and reliability. An interoperable information systems platform will facilitate system usability by allowing system users to access the system from any point and using the same access commands or techniques (Baltzan & Phillips, 2009).

Fifth, information technology systems can be applied in leveraging alliances in organisations. An organisational executive can use enterprise resource planning (ERP) systems and procurement to enhance collaboration with the potential suppliers leading to increased visibility of sales information to the vendors. Increased visibility to suppliers is principal in determining when to replenish leading to improved services to meet the demand and supply effectively.

Thus, a proper management of the information systems will benefit an organisation by giving them a chance to provide on-time services leading to improved shipment and lead-time translating to improved customer satisfaction (Baltzan & Phillips, 2009). If all these applications are implemented in an organisation, improved competitive advantage and economic stability will be achieved.

Elan Brannan Evaluation Essay October 26, 2012 Toyota Camry vs. Honda Accord All across America millions of people search for a vehicle to keep them safe while driving. But that isn’t all car consumers look for, car buyers want style, comfort, and most importantly a smooth calming ride. For many years consumers have been comparing two top rated cars, the Toyota Camry and the Honda Accord. Both cars excellent in ratings all across the board however, the Toyota Camry is the number one best safety pick in its class.

Looking at both cars history one might decide to choose the Camry because of its long list of positives, but the Honda Accord in the recent year has stepped up the quality. The Honda Accord has improved seats, now with better back support along with more space and better views from the windows. All qualities consumers have come to love. The Honda Accord is the best overall sedan when compared to the Toyota Camry. At first look the design of a car can be intriguing and exciting. The Honda Accord does just that by offering sleeker and bolder abilities with the outstanding new technology. Both models offer Bluetooth, hands free calling and audio streaming but Honda has gone well beyond that, also offering SMS text capability, Pandora audio streaming, dual-zone climate control and an eight inch i-MID display”(Halverson). Honda also took the time to redesign the back seats. The seats are now higher so the passenger can have an easier time looking out the window. The 2012 Camry was redesigned to compete with the Honda. Camry’s have always looked boring compared to the bold design of an Accord. According to Halvorson, although the changes were so subtle and evolutionary they might not have even been noticed.

The new 2013 design of the Accord does look a slightly more exciting and better proportioned on the outside, with more of a premium look inside. The design of the Camry has put itself back in the race with the Accord. With a better look maybe more customers are stopping to look at the Camry instead. The design of the Honda Accord speaks for itself but there are more advantages car buyers want to take a look at. Fuel economy is another big factor when buying a car. The Toyota Camry beats Honda in fuel economy, a whopping 43 mpg city and 39 highway however, the Accord offers a lot under the hood. The Accord earns an excellent 27/36 mpg with its new direct-injection four-cylinder and continuously variable automatic transmission (CVT), while the four-cylinder Camry gets 25/35 at best. V-6 Accords are especially smart and efficient, with ratings of 21/34, while Camry V-6 models stand at 21/30”(Halverson). For someone who likes a little bit more edge when driving, the Honda is a better choice. When looking at the hybrid models Honda does not yet have anything planned to release to the market until 2014 but they are expected to do well.

Camry is not the leader in hybrid cars but they are doing very well right now. Nevertheless comfort is always must! A comfortable ride can be a deal breaker. Whether it is commuting or taking the kids to a soccer game the new back support technology and more space for your legs is making this car seem perfect. Also, the Honda Accord offers noise control to keep all of those outside noises out for an even more comfortable drive. “So they’re among the better choices for carrying adults in the back seat.

With its rather low beltline and a little more slide glass, the Accord offers a slightly better view outward for those in back-possibly eliminating the need for Dramamine”(Halverson). As for the Toyota Camry, it was proven to be the overall best drive, when it comes to bumps and being on the freeway. The Camry does not have noise control but it does have insulation proven to make the car ride less noisy and the car ride feel more peaceful. Both cars come so close in quality but what about quantity. Which one costs more? Every car can have all the bells and whistles but what is that going to cost?

The Honda Accord wins here too, but not by much. The price for a 2012 Honda Accord is $21,680 and the Toyota Camry is $22,055. Looking at both cars they compare quite nicely. Although there are many similarities, the differences are what set these two cars apart. The Toyota Camry is a smoother ride, safer and its fuel economy is amazing. The Honda Accord offers more technology, comfort and better driving capability. Both cars have been recently redesigned and have added upgrades. The Accord is a better car because of its less expensive price and complete package of a car.

There is nothing this car doesn’t offer. Yes, the Camry does go beyond safe and reliable but the Accord is not far behind. For the price of a Camry you’re getting safety, but for the price of an Accord you’re getting safety and style (Halverson). Overall the Honda is a better car; the company offers more amenities as well as a more modern feel. By offering more space and different technology the Honda wins best overall car when compared to Toyota Camry. Works Cited Halverson, Bengt. “Toyota Camry vs. Honda Accord Compare Cars”. The Car Connection. N. d. September 11, 2012. October 24, 2012.

The essay is about to critical measure the operations direction scheme of Hard Rock Cafe as described in the instance stuffs, and discourse the operations direction challenges every bit good as the chances when Hard Rock Cafe sing expand their concern in Hanoi-Vietnam. In the essay, text edition, cyberspace, academic researches will be mentioned to back up the critical evaluates operations direction, challenges and chances issues.

Harmonizing to Heizer EL at. , ( 2011 ) , “ Operations direction is defined as any activities that relate to the creative activity of goods and services through the transmutation of inputs and end products ” , while operation directors play an of import function in the direction procedure. “ The direction procedure contains be aftering, forming, staffing, taking, and commanding ” . ( Heizer el at. , 2011 ) .

In the instance stuffs provided, we will measure 10 critical determinations of Operations directions which are goods and service design, managing quality, procedure and capacity design, location scheme, layout scheme, HR and occupation design, supply-chain direction, stock list, programming and last determination is care to see whether how good Hard Rock cafe applied these determinations in their operation direction ( Heizer el at. , 2011 ) . We will measure few determinations amongst those 10 determinations to allow people hold a wide position of how Difficult Rock Cafe applies these determinations to run their concern.

For goods and service design, what services/products should Cafe give to clients? That is really of import issue to Hard Rock Management. As we ‘ve known, Hard Rock is in cordial reception industry. If they provide products/services wrongly, it would take the company to ruin. Follow the Hard Rock instance survey, due to the planetary economic alterations, differences in concern jurisprudence, a batch of hazard factors that make Difficult Rock Cafe alterations from planetary Strategy into multi-domestic scheme. Multi-domestic scheme is “ a scheme that companies in each market makes their operating determinations independently of others oversea markets ” ( hypertext transfer protocol: //tutor2u.net ) .

In here, company decided to franchise a big figure of their coffeehouse by fall ining with opened cafe such as in and Birmingham, which try to pull local occupants involve in their concern due to this topographic point is non a common topographic point for tourer, where people in here are rather conservative. This determination would do them to redesign their goods and services to run into with the local gustatory sensation. Differences state would hold different cultural, linguistic communications, concern patterns. For illustration: Hard Rock cafe in Kuwait would necessitate to alter their bill of fares because they ca n’t eat porc. All merchandises are related to porc are prohibited every bit good as intoxicant while in US where people can eat porc, imbibe intoxicant with no limitation due to difference faiths and jurisprudence every bit good ( Muslim in Kuwait and chiefly Catholic, Protestant, Buddhism in US ) . ( hypertext transfer protocol: //www.hardrock.com )

Another issue is pull offing quality. Base on Rose EL at. , ( 2005 ) , “ direction quality is looked at 4 issues: quality planning, quality control, quality confidence and quality betterment ” . Hard Rock Cafe has been focused on quality control and betterment by study. It has been done on a regular basis with rate from 1 to 7. If the mark is non reached score 7 that mean the nutrients and services will be reviewed. The company has changed their bill of fare to fit with local gustatory sensation every bit good as upgrade their bill of fare. They are non merely concentrate on their traditional nutrient such as beefburgers and beefs but besides look for high category of nutrient like fishes, lobsters. Although clients go to Hard Rock Cafe because they love music, atmosphere, environment, that is the chief ground but high quality of nutrient which show in bill of fare would be value-added to Hard Rock Cafe repute and brand clients come once more. Cianfrani el at. , ( 2009 ) told that: “ Quality direction could alter some of the direction rules. This can assist exceed degree direction to increase the company ‘s public presentation every bit good as satisfy the client ‘s demand ” . This issue is really of import for the company which they are strongly focused on client because most of the Hard Rock Cafe ‘ clients are tourers while a minority is a local occupant ( Heizer el at. , 2011 ) .

When the company changes their services/products, they besides need to believe of their existing supply concatenation direction. Mentzer et al. , ( 2001 ) stated that: “ Supply concatenation direction is seen as a mechanism to keep competition in domestic markets, in visible radiation of increasing planetary competition ” . The company chooses to upgrade their bill of fare that would reconstitute their supply concatenation direction because they will necessitate new providers every bit good as possibly extinguish some old providers. Hard Rock Cafe does non desire excessively much on beefs and beefburgers ; they want to add more expensive material such as fishes and lobsters which would pull a wider scope of clients every bit good as lift the degree of Hard Rock Cafe one measure higher.

Top degree directions besides need to see on the distribution web of new providers. Where are their warehouses, distribution centres, figure of networking, who are their clients? What are payment footings? Can they present goods so we play subsequently or we need to play upfront before they bringing goods? All those things need to see really careful because it will impact to the cost of the repast subsequently on. If the warehouse of new provider is excessively far, it would make a large job when we run out of nutrient to fix repast for clients. Furthermore, if the company has to do full payment before they deliver goods, it would be an issue to direction degree to see because if we can pay them subsequently in a certain twenty-four hours after we receive goods, that is so much better, we can utilize that money to make something else to do more money and pay the provider subsequently.

Location for Hard Rock Cafe would a large issue to see when choose the location. A batch of things would impact such as political hazard, currency hazard, societal norms, trade name tantrum, and concern patterns ( Heizer el at. , 2011 ) . Political hazard is defined as “ Probability of loss due to political instability in the purchaser ‘s state that may ensue in cancellation of a licence or otherwise impact the purchaser ‘s ability to do payments. Political hazards are insurable hazards, and overlap with the political constituent of force majeure hazards ” ( hypertext transfer protocol: //www.businessdictionary.com ) . It is the chief concern when taking location. Thailand will be a good illustration. Recently, Thailand has a batch of work stoppages which would do investors worry. It will besides impact tourer industry due to a batch of cancellation circuit to Thailand during work stoppage ( hypertext transfer protocol: //www.thaipro.com ) . While concern pattern is another issue Hard Rock Cafe demand to concern. “ The regulative model in Thailand is rather good but whether it is put into pattern is a different issue ” ( hypertext transfer protocol: //www.reuters.com ) . The concern environment in Thailand late is traveling down. Corruptness is increasing severely. If company wants to spread out concern in Thailand, this issue would be sing carefully while most of the concerns try to avoid bribing, they want to make clean concern particularly some companies come from developed states such as United State, Australia. Maintenance would acquire affect as the scheme of Hard Rock Cafe has changed to franchise with opened eating house or cafe . This mean they need to redesign the current cafe/restaurant so that will suit local cultural but it will non lose the Hard Rock ‘s ocular visual aspect.

Securency Company is an illustration for corrupting. Securency is a joint company between Reserve Bank Australia and British company call Innovia Films. “ Several former and functioning Securency executives engaged in graft to win trades in Vietnam, Nigeria, Malaysia and Indonesia. ” Securency Company has been investigated and graft for some middle-men in order to win the trades oversea has been probed. If Hard Rock Cafe gets involve in this sort of graft, this will destruct all the repute that Hard Rock Cafe has tried to construct up decennaries ago every bit good as it will take to shuting down a batch of concern if the graft is proved.

Human resource direction is besides an of import affair for company. Armstrong ( 2006 ) stated that: “ Human resource direction is the strategic and consistent attack to the direction of an organisation ‘s most valued assets: the people working there who separately and jointly lend to the accomplishment of the aims ” . Nowadays, most of the company is truly pay attending about human resource. It can assist the company win over their rivals. For eating house industry, merchandises are of import but services could be an excess point to pull client come back. How Difficult Rock could make it? The company needs to supply the “ better services, cheaper monetary value and faster response ” to vie with their rivals ( Blackwell et al. , 2001 ) .

Staff turnover is another issue particularly in eating house industry due to really high turnover of employees, around 80 % to 100 % per twelvemonth ( Heizer el at. , 2011 ) . Hard Rock Cafe is successfully in keep really low per centum of staff turnover by Lashkar-e-Taiba employees make full in each twenty-four hours schedule what day/shift they would wish to work base on their degree and how of import they are at each displacement. The intent is to equilibrate work and normal life of staff every bit good as will non allow over-employee between two displacements. This method works really good as Hard Rock staffs love that method and it helps to cut down the staff turnover which is per centum of staff turnover in eating house industry is really high.

Although staffs at Hard Rock Cafe are music lover, happy with the working environment but for normal living life, they can non populate without money. So company should hold sensible salary system in order to assist their staffs afford to normal life cost. There is an accusing of an anon. server staff in of the Hard Rock Cafe in United Kingdom that he/she was acquiring paid under the national lower limit rewards which is 2.06 lb per hr while national minimal rewards is around 5.73 lb per hr ( hypertext transfer protocol: //news.bbc.co.uk ) . Employees in Hard Rock Cafe in London are trusting on tips of client to force their rewards to national minimal rewards. These tips could come from hard currency, recognition card tips but we do non cognize all those tip will be distributed reasonably to staffs or the company will maintain them and give portion of it staffs merely. This affair is really of import. Salary would a tool to stimulus the public presentation of employees which could do them work harder, dynamic and enthusiasm. If this affair is proven, the company will be fined and leads to rivals get derive more market portion which is belong to company.

In order to spread out concern in Ha Noi, Vietnam, Hard Rock needs to look at challenges and chances before make concluding determination. These challenges and chances are mention below:

Based on General Statistics Office of Vietnam, Ha noi is about 3345 km2 with more than 6.5 1000000s of people which is around 1935 person/km2 ( hypertext transfer protocol: //www.gso.gov.vn ) . We can see in here, will little country with a batch of people live in, so it is really difficult to happen location to open a new concern in here. Location is a chief concern of company which is easy to entree ; locate around Central Business District where a batch of traveller and people can see their logo. Furthermore, existent estate monetary value in Ha Noi is really high comparison to other metropoliss so that company would necessitate to see rental or purchase it out ( hypertext transfer protocol: //vietbao.vn ) . That would be added to the cost of repast which would be an issue in competitory with other rivals.

Another challenge is cultural differences. Cultural differences could do a batch of job which Hard Rock needs to happen out when be aftering to make concern in Vietnam. Eye contact is an of import to state whether we respect opposite individual or non. For Western cultural, when people are speaking, it is impolite if we do non look at each other ‘s eyes. But in many Asiatic states such as Japan and Vietnam, they can non look at their higher-up ‘s eyes otherwise it means you have no regard for them. If you do that so, that mean you show your regard to them ( Moran el at. , 2007 ) .

Posture/Gesture can do misinterpretation every bit good if two concern work forces from difference states with difference cultural. In Vietnam, it would be friendly if two people stand near, remain small spread between two people but in western manner, it should be a spread ( at least one metre ) when they are speaking to each other, it is consider polite. On the other manus, handshaking would differences between Asiatic cultural and Western cultural. Western people prefer steadfast handshaking, that show their regard to concern spouse every bit good as trustworthy while in Asia, particularly in Vietnam, house handshaking should be avoided while people think it is ill-mannered, un-educated, non being friendly to think. Those things are really of import because if they do non understand Vietnamese cultural, it might make jobs between flat direction of Hard Rock towards their employees. This is non good for concern as it will make the spread between degree direction and employees, hapless public presentations, people might desire to discontinue due to defeated, do non like working environment.

Currency hazard is another hazard factor. At the minute, the exchange rate between US dollar and Vietnamese dong is really high which is 1 US dollar can alter to 19500 VND ( www.eximbank.com ) . If Difficult Rock would wish to convey their goods over from US to maintain original gustatory sensation, it would do the monetary value of each repast addition due to value of VND is decrease plus no transportation cost from US to Hanoi if they buy those merchandises in Vietnam. The rise and autumn of exchange rate could do company hold more competitory advantage to rival but it would be a catastrophe subsequently on so that advantage would turn to disfavor every bit Hard Rock Cafe scheme wants local occupants get affect along with tourers.

In Vietnam legal model is rather good but it is non applied. Intellectual belongings right is an illustration. It is non protected even Vietnam has signed a batch understanding which promised to protect the right of first publication but it does non set it in pattern ( hypertext transfer protocol: //www.vietnam-ustrade.org ) . The per centum of right of first publication violation is still high at 85 % , same at twelvemonth 2007, 2008 ( hypertext transfer protocol: //phapluattp.vn ) . Hard Rock Cafe can be set up today but following few hebdomads, another Cafe might be unfastened and all the repasts, layout, manners, music would be similar or somewhat differences. It will impact the trade name name of Hard Rock if clients come in, still though that is Difficult Rock Cafe and they have bad serves or nutrient toxic condition.

Disregard those challenges above, Ha Noi is still a possible topographic point for investor to see when unfastened concern in here. First, Hanoi is capital of Vietnam with labour force 1.6 million of people while 43 % of them are under age of 35 ; it means 400.000 people enter the market every twenty-four hours ( hypertext transfer protocol: //industrialzone.vn ) . Furthermore, GDP per capital of Vietnam is about $ 1156 USD/year which is really low comparisons to US. It means, company has more option in choosing staffs but pay less money than in US market ( hypertext transfer protocol: //www.dfat.gov.au ) . That would salvage a batch money for company while in US immense money has been paid off for HR and vocalists. This is an advantage when unfastened concern in Hanoi.

Second, supply concatenation direction would non be a job because people can come to Hanoi by three chief ways: railroad, roadway and air passage. Hanoi is besides a get downing point of a batch national main road such as Number 1A national main road, Number 3, 5 national route and NoiBai airdrome is about 40km off merely every bit good as near to 5 large industry zones which they can provide most of the demands for Hard Rock ( hypertext transfer protocol: //industrialzone.vn ) . It is easy to present goods for company on a regular basis and on clip so company will non be run out of stock even in peak period.

Third, since 1990, economic sciences of Vietnam is turning really fast. GDP of Vietnam is about 7 % turning continuously while GDP per capital is at $ 725 USD in 2006 goes up to $ 1156 USD in 2010 which is about double in 4 old ages clip. We can see bright economic system, turning really fast which is a possible market with around 90 1000000s of people ( hypertext transfer protocol: //www.dfat.gov.au ) . That could open for Hard Rock a batch of opportunities while invest in Vietnam as a batch of US companies did it long clip ago such as IBM, Intel and many more US companies. Intel is good illustration in investing. They merely announced to make up one’s mind to do the $ 1 billion investing in a comparative fledgling to the hi-tech game – Vietnam ( hypertext transfer protocol: //www.usatoday.com ) . This determination is good intelligence for Vietnam which could make a hundred 1000 occupations in Hanoi and Ho Chi Minh City every bit good as could convey back immense net incomes for Intel in the hereafter as labour cost in Vietnam is rather inexpensive but extremely educated.

In decision, ten operation direction determinations play an of import function in making concern of company. Those determinations mentioned supra are non all of 10 determinations but it would demo out how of import 10 operation direction determinations in pull offing quality, better public presentation of employees, create new goods/services in order to accommodate to the fast changing of planetary economic. If Hard Rock Cafe can go on to execute as they are making right now, it would be the strength and a competitory border toward their rivals.

Automobile sector is one of the most competitive and technological driven sector of the world, taking an advantage edge on Innovation and technology the automobile companies such as Ford, Honda, BMW etc. have successfully implemented these changes into its product as well process and introduced differentiated product in the market. To remain competitive, it is important for the organization to focus on its operations and supply management with which they are able to achieve competitive advantage over the other company.

The CEO of Rolls Royce has strongly focused on enhancing the operations management in 2006 so as improve on its production. Facilities: In 2006, the company commenced its operations at Derby, Hucknall, Barnoldswick and Bristol. These facilities are equipped with the modern working facilities along with the old repair and overhaul workforce in Montreal. With this the operations and the productivity of the company will improve which will help the company is producing more effective cars in 2007. Inventory: The inventory of the company was increased in 2006 because of the growth and demand of the products.

The company needed raw material to build the end product . The inventory is also expected to increase further in 2007 which will help in improving on the productivity of the company. For this it is important for the company to manage its working capital adequately. Information: The company enhanced on technology as well as learning in 2006. The company used its process excellence programme so as to continue to improve on its quality and production. With this the company was able to improve on its quality by 20% in 2006 as compared with 2005.

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With this the company will be able to further enhance quality and productivity of the company. The company also implemented and standardised ERP system to its unit in Europe, this is going to expand to the other units as well in 2007 which will help in improving the operations of the company. The company will be implementing its remaining IT ERP across its facilities which will help in enhancing its global supply chain management. Sourcing: With a strong focus on building supply chain management, the company is able to improve on its sourcing and having low cost production.

With the enhancement in the supply chain the company will be able to further improve on its supply chain, operations and cost. Pricing: Even with the increase in the prices of the fuel and some metals, the company has aligned its operations and activities with such a way that it has been able to focus on reducing the overall cost of overhead as well as value activities. The company also increased the number of employees so as to increase the productivity of the company. Even despite of all these measure, the per unit cost of the product is expected to increase in 2007 which might affect the sales of the company.

Production & Operations Management

Homework 1 for Section 4

1. 1 Eastman publishing Company is considering publishing a paperback textbook on spreadsheet applications for business. The cost of manuscript preparation, textbook design, and production setup is estimated to be $80,000. Variable production and material costs are estimated to be $3 per book. Demand over the life of the book is estimated to be 4,000 copies. The publisher plans to sell the text to college and university bookstores for $20 each.

• a. What is the breakeven point?
• b. What pro? Can be anticipated with a demand of 4,000 copies? With a demand of 4,000 copies, what is the minimum price per copy that the publisher must charge to break even?

1. 2 Creative Sports Design (CSD) manufactures a standard-size racket and an oversize racket. The rackets are extremely light due to the use of a magnesium-graphite alloy. Each standard-size racket uses 0. 125 kilograms of the alloy and each oversize racket uses 0. 4 kilograms; over the next two-week production period only 80 kilograms of the alloy are available. Each standard-size racket uses 10 minutes of manufacturing time and each oversize racket uses 12 minutes. Also, 40 hours of manufacturing time are available each week. The pro? t contributions are $10 for each standard-size racket and $15 for each oversize racket. How many rackets of each type should CSD manufacture over the next two weeks to maximize the total pro? t contribution?

• a. Decision variables and formulate the problem.
• b. Solve the problem using the graphical method.

1. 3 Management of High Tech Services (HTS) would like to develop a model that will help allocate their technician’s time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the two-week planning period. To satisfy cash? ow requirements, at least $800 in revenue (per the technician) must be generated during the two-week period. Technician time for regular customers generates $25 per hour. However, technician time for new customers only generates an average of $8 per hour. To ensure that new customer contracts are being maintained, the technician time spent on new customer contracts must be at least 60% of the time spent on regular customer contracts. Given these 1 revenue and policy requirements, HTS would like to determine how to allocate technician time between regular customers and new customers so that the total number of customers contracted during the two-week period will be maximized. Technicians require an average of 50 minutes for each regular customer contract and 1 hour for each new customer contract.

• a. Develop a linear programming model for the problem.
• b. Find the optimal solution via Excel.

1. 4 Industrial Designs has been awarded a contract to design a label for a new wine produced by Lake View Winery. The company estimates that 150 hours will be required to complete the project. The three graphics designers available for assignment to this project are Lisa, a senior designer and team leader; David, a senior designer; and Sarah, a junior designer. Because Lisa has worked on several projects for Lake View Winery, management that Lisa must be assigned at least 40% of the total number of hours assigned to the two senior designers. To provide a label-designing experience for Sarah, Sarah must be assigned at least 15% of the total project time. However, the number of hours assigned to Sarah must not exceed 25% of the total number of hours assigned to the two senior designers. Due to other project commitments, Lisa has a maximum of 50 hours available to work on this project. Hourly wage rates are $30 for Lisa, $25 for David, and $18 for Sarah.

• a. Formulate a linear program that can be used to determine the number of hours each graphic designer should be assigned to the project in order to minimize total cost.
• b. How many hours should each graphic designer be assigned to the project? What is the total cost?
• c. Suppose Lisa could be assigned more than 50 hours. What would this have on the optimal solution? Explain.
• d. If Sarah were not required to work a minimum number of hours on this project, would the optimal solution change?

Explain. 1. 5 National Insurance Associated carries an investment portfolio of stocks, bonds, and other investment alternatives. Currently, $200,000 of funds are available and must be considered for new investment opportunities. The four stock options National is considering and the relevant in Table 1. 2 Table 1: Problem 1.

National’s top management has stipulated the following investment guidelines: The annual rate of return for the portfolio must be at least 9% and no one stock can account for more than 50% of the total dollar investment.

• a. Use linear programming to develop an investment portfolio that minimizes risk.
• b. If ignores risk and uses a maximum return-on-investment strategy, what is the investment portfolio?

1. 6 Greenville Cabinet received a contract to produce speaker cabinets for a major speaker manufacturer. The contract calls for the production of 3,300 bookshelf speakers and 4,100 ? or speakers over the next two months, with the delivery schedule as given in Table 2. Table 2:

Problem 1. 6 

Greenville estimates that the production time for each bookshelf model is 0. 7 hours and the production time for the model is 1 hour. The raw material costs are $10 for each bookshelf model and $12 for the model. Labor costs are $22 per hour. Greenville has up to 3,400 hours of production time available each month. If production for either cabinet exceeds demand in month 1, the cabinets can be stored at a cost of $5 per cabinet. Formulate the problem to determine the numbers of units 3 that should be manufactured each month to minimize total production and storage costs.

1. 7 EZ-Windows, Inc. manufacturers replacement windows for the home remodeling business. In January, the company produces 15,000 windows and ended the month with 9,000 windows in inventory. EZ-Windows’ management team would like to develop a production schedule for the next three months. A smooth production schedule is obviously desirable because it maintains the current workforce and provides a similar month-to-month operation. However, given the sales forecasts, the production capacities, and the storage capabilities as shown in Table 3, the management team does not think a smooth production schedule with the same production quantity each month possible.

Table 3: Problem 1. 7

The company’s cost accounting department estimates that increasing production by one window from one month to the next will increase total costs by $1. 00 for each unit increase in the production level. In addition, decreasing production by one unit from one month to the next will increase total costs by $0. 65 for each unit decrease in the production level. Ignoring production and inventory carrying costs, formulate a linear programming model that will minimize the cost of changing production levels while still satisfying the monthly sales forecasts.

1. 8 Two television stations compete with each other for viewing audience. Local programming options for the 5 PM weekday time slot include a sitcom rerun, an early news program, and a home improvement show. Each station has the same programming options and must make its pre-season program selection before knowing what the other television station will do. The viewing audience gains in thousands of viewers for station A are shown in Table 4. 4 Station A/Station B Sitcom Rerun News Program Home Improvement Table 4:

Problem 1. 8

Formulate a linear program to determine the optimal strategy for each station and then solve it. What is the value of the game?

1. 9 A local television station plans to drop three Friday evening programs at the end of the season. Steve Botuchis, the station manager, developed a list of four potential replacement programs. Estimates of the advertising revenue (in dollars) that can be expected for each of the new programs in the four vacated time slots are as in Table 5. Table 5:

Problem 1. 9

1. 10 Adirondack Paper Mills, Inc. operates paper plants in Augusta, Maine, and Tupper Lake, New York.

Warehouse facilities are located in Albany, New York, and Portsmouth, New Hampshire. Distributors are located in Boston, New York, and Philadelphia. The Augusta plant has a capacity of 300 units, and the Tupper Lake plant has a capacity of 100 units. Boston has a demand of 150 units, New York has a demand of 100 units, and Philadelphia has a demand of 150 units. The unit transportation costs (in dollars) for shipments from the two plants to the two warehouses are presented in Table 6 and those from the two warehouses to the three 5 distributors.

Problem 1. 10  a. Draw the network representation of the Adirondack Paper Mills problem.

• a. Formulate the Adirondack Paper Mills problem as a linear programming problem.
• b. Solve the linear program to determine the minimum cost shipping schedule for the problem.

Operations Management in INSURANCE SECTOR Q. How to measure operational efficiency in service industry? Ans-Insurance companies use KPI indicators to measure operational efficiency and ensure optimum standards. The secret to success for an insurance company is providing the right product, having the right people selling and managing risks associated with it. Insurance organizations use and act on metrics to avoid unnecessary risks. Following are the Key Performance Indicators (KPI) that insurance companies use to measure operational efficiency.

Policy Sales Growth Ratio It measures policy sales growth over a set period of time. It is increase in the number of clients over a specified period. It is helpful to gain insights into policy sales trend. The higher this percentage, the better it is. Policy Sales Growth = (Current period sales revenue – previous period sales revenue)/previous period sales revenue Claims Ratio It is defined by claims in a period divided by earned premium in the period. It helps to know the risk of claims and effectiveness of the policy.

The ratio needs to be analyzed carefully to understand the risk associated. A higher ratio indicates too many claims compared to premiums and it isn’t good for the company. A lower ratio may indicate difficulty claiming which would lead to customer dissatisfaction. Claims Ratio = Total claims per period/Total earned premiums per period Percentage of Total Lapses It measures the total number of missed payments in a period compared with the policies sold. It helps in understanding why lapses are occurring and stop them from occurring at a high frequency.

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A high percentage might be because of inefficient operations such as problems in the payment process. A company constantly improves its operations to decrease the percentage of lapses in each period. Percentage of Total Lapses = Lapses/Policies Sold Average Time to Settle a Claim It measures the time it takes settle claims. A decreasing trend is favorable. Lower time to settle the claim defines higher operational efficiency of the company. Average Time to Settle a Claim = Total no. of days taken to settle all claims/ Total claims Quotas vs.

Production It measures the effectiveness of sellers and agents at meeting their targets. It helps in identifying when target sales are below and taking corrective action. A ratio below 1 means targets is not being met. A higher than 1 ratio means brokers are exceeding the target and it is favorable for the organization. Quotas vs. Production = Total Rs. Quoted Business/Total Revenue Top Brokers in Sales Revenue It ranks brokers based on sales revenue and no. of policies sold. It helps to identify top performers for each category of policies.

It also helps to improve the performance of brokers who are lacking behind. Top Brokers in Sales Revenue = Rank top 3 or 10 brokers based on sales revenue Total Benefits as a percentage of premium It is an indicator of financial performance. This measure helps in pricing of insurance policies. It helps to know the risk factors associated with each policy and set fair premiums. Total paid benefits as a percentage of premium = Total paid benefits/Total premium earned Q. How to ensure quality in service business and how to enhance quality in service sector?

Ans-There are several ways to ensure and enhance the quality of an insurance company. These are listed below. •Six Sigma concepts can be implemented to ensure quality and conform to consumer needs. Six Sigma concepts make use of statistical tools which makes measurement of results easier. •Dividing the company into departments based on different categories of insurance such as separate departments for car insurance and health insurance. This would provide better understanding of which categories of insurance should be improved by the company. Deciding on the maximum time to settle an insurance claim. This would allow to improve service and quality of claim processes as claims would be settled more quickly. •Online information should be used to provide policy holders with accounts that provide updated information regarding their claims and premium payments. •Insurance companies can get into an strategic partnership with mobile banking providers so that customers can pay their premiums through mobile banking •A chart showing the updated rankings of brokers should be available to all brokers.

This would increase competition and let the brokers know how much they are lacking behind others. •Incentives for top performing brokers should also be announced in advance to keep the motivation level high throughout and improve services. •Regular training programs should be conducted for brokers in order to increase their marketing and selling skills •A complaint center should be established in the premises to deal with the complaints received from customers. The complaints should be discussed and a corrective action plan should be develop to deal with problem.

The action plan should be implemented and results must be analyzed •A maximum time to act on a complaint should be decided within that time the department has to act on the complaint. The corrective action taken should be documented and implemented within the specified time •External benchmarking with other insurance companies might also be helpful in identifying short comings and improving services •Define to brokers the criteria of quality customer interaction and to led them act on it