Graduate School of Management Northwestern University Essay Sample

See the life rhythm of a merchandise from debut to adulthood to worsen. What sort of procedure ( occupation store. batch procedure. or line flow ) would be appropriate at each phase and why?

At the debut stage. merchandise volumes are little and design alterations frequent. Thus production in a occupation store apparatus is likely to most appropriate. At adulthood volumes will be big and monetary value force per unit areas more important. Thus production in a line flow or batch scene ( depending on volumes ) is likely to be more appropriate. As the merchandise declines. volumes lessening and a return to occupation stores is most appropriate. [ 2 ] A little printed circuit board maker has established itself based on the ability to provide a big assortment of little orders in a timely mode. A house approaches the maker to put a big order ( equal to the current volume from all other orders ) but asks for a 30 per centum price reduction. Do you believe the circuit board maker should accept the order? Justify your reply.

The circuit board maker should either reject the order or put up a separate line to treat this order. The current production procedure is likely to be good at flexibleness but non supply the lowest cost. Producing the big order on the same procedure will non ensue in lower costs for the big order but will interrupt seasonableness of the current orders that are little. [ 3 ] Explain why the overall public presentation of Wriston will deteriorate if the Detroit works is closed and merchandises moved for production to lines in other workss.

Assortment and graduated table are two of import drivers of operating expense costs for Wriston. Detroit has focused on merchandises with high assortment and low volumes. This allows other workss to concentrate on lower assortment with higher volumes. Traveling the Detroit merchandises to other workss will ensue in a big addition in assortment at these workss with really small addition in volume. This will increase overhead aching public presentation. The other workss will lose their focal point further aching their public presentation.

Compare the differences in patient demands at an exigency room in a infirmary with that of a section making knee replacings in footings of monetary value. quality. clip. and assortment. Which of these sections should follow the attack taken by Shouldice? Why?

Patients geting at an exigency room are likely to concentrate on quality and the ability of the exigency room to be flexible and manage a assortment of complaints. A section making articulatio genus replacings merely on the other manus does non hold to manage assortment. It can set in topographic point processes that exploit this fact to better quality and cut down cost. Thus a section making articulatio genus replacings is more likely to follow the attack taken by Shouldice and work the fact that it requires no assortment.

See CRU Computer Rentals with the following informations ( different from the original instance ) . Leases occur at the rate of 1. 000 per hebdomad. Each rental norms 6 hebdomads. and generates

OPNS-430 mid-term

$ 35/wk. Transporting cost is $ 2. 5/unit. Receiving cost is $ 2. 5/unit. Preconfig cost is $ 6/unit. Repair cost is $ 130/unit. Each unit costs $ 780 and is depreciated over 3 old ages. Flow clip. stock list and throughput at each phase are as shown in the Table below.

Status 40 30 %

Receiving
70 % Status 24 15 %

Repairs

Status 41

Customer Pre- Config

Config

Status 20

Repairs

Status 42

Throughput ( units / hebdomad ) Inventory ( units ) Flow Time ( hebdomads ) a )

Customer Receivin Status Status Status Status Status g 24 40 41 42 20 1. 000 1. 000 700 405 405 405 1. 000 6. 000 6. 0 500 0. 5 1. 500 1. 000 2. 14 2. 47 905 2. 23 500 1. 23 2. 000 2

Calculate the public presentation metric “utilization” that CRU uses. Entire figure of units =12. 405 Number on rent = 6. 000 Utilization = 6. 000/12. 405 = 0. 48

A rented computing machine follows one of three possible paths depending upon its categorization at receiving: 1. 2. 3. Classified right as ready for preconfig ( Status 24 ) Classified falsely as Status 24 ( necessitating fix ) Classified as position 40 ( fix )

Measure the flow clip of each path ( this can besides be called the continuance of the rental rhythm in each instance ) . [ 6 points ]

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Case 1: Duration of rhythm = Customer + Receiving + Pre-config + Status 20 = 6 + 0. 5 + 2. 14 + 2 = 10. 64 hebdomads. Case 2: Duration of rhythm = Customer + Receiving + Pre-config + Status 40+ Status 41 + Status 42 + Status 20 = 6 + 0. 5 + 2. 14 + 2. 47 + 2. 23 + 1. 23 + 2 = 16. 57 hebdomads. Case 3: Duration of rhythm = Customer + Receiving + Status 40+ Status 41 + Status 42 + Status 20 = 6 + 0. 5 + 2. 47 + 2. 23 + 1. 23 + 2 = 14. 43 hebdomads. degree Celsius ) Measure the part per path ( or rhythm ) per computing machine in each of the three instances in portion ( B ) . What is the hebdomadal part of a computing machine in each of the three instances in portion ( B ) . [ 8 points ] Case 1: Computers that merely travel through pre-config Revenue per rhythm = 6?35 = $ 210 ; Cost per rhythm = pre-config + transportation cost = $ 6+ $ 5 = $ 11 Depreciation per rhythm = 10. 64? ( 780/156=5 ) = $ 53. 2 Contribution per rhythm = 210 – ( 11 + 53. 2 ) = $ 145. 8 Contribution per hebdomad = 145. 8 / 10. 64 = $ 13. 70 Case 2: Computers that are mis-classified and travel through both pre-config and repairs Revenue per rhythm = 6?35 = $ 210 ; Cost per rhythm = Repair cost + transporting = $ 130 + 5 = $ 135 Depreciation per rhythm = 16. 57?5 = $ 82. 85 Contribution per rhythm = 210 – ( 135 + 82. 85 ) = -7. 85 Contribution per hebdomad = -7. 85 / 16. 57 = – $ 0. 47 Case 3: Computers that merely travel through fixs Revenue per rhythm = 6?35 = $ 210 ; Cost per rhythm = Repair cost + transporting = $ 135 Depreciation per rhythm = 14. 43? ( 5 ) = $ 72. 15 Contribution per rhythm = 210 – ( 135 + 72. 15 ) = $ 2. 85 Contribution per hebdomad = 2. 85 / 14. 43 = $ 0. 20

[ 6 ] Kristina’s Pizzeria: Kristen’s friend Kristina has watched Kristen’s unbelievable success with selling fresh. home-made cookies. and decided to put up store likewise. to sell fresh. hot pizzas and Quiches. She ab initio plans on a one-man operation. After thorough analysis. she has decided to do and sell one or both of her two favourite dishes: ‘All-the-works’ mini pizza and Hawaiian Ananas comosus Quiche. Customers stand in line and topographic point orders. It takes Kristina a negligible sum of clip to observe down the orders. After careful survey of the pupil market. she determines that the pizzas can be sold for $ 6. 00 each and the Quiche for $ 7. 00 each. The procedure for doing these is somewhat different. To do the pizza. Kristina rapidly applies pizza sauce on to ready-made crust. and so beds it with cheese. meat and vegetable toppings. Then she pops it into the oven. Layering the pizza crust with toppings takes her 3 proceedingss ; the pizza has to bake for 10 proceedingss.

OPNS-430 mid-term

The Quiche is much more labour-intensive. The dough for the crust has to be laid out artfully on the baking home base. and the dressing ( of cheese. Ananas comosus. Spinacia oleracea and miscellaneous condiments ) has to be loaded with attention. Then the borders of the dough base have to be trimmed. This full procedure takes Kristina 8 proceedingss to make. Then the Quiche is loaded into the oven. Baking the Quiche takes merely 5 proceedingss. The cost of stuffs ( peculiarly. the fresh. juicy Ananas comosuss ) is greater for the Quiche than for the pizza. It costs $ 3. 00 for the stuffs for the Quiche. but merely $ 1. 50 for the pizza natural stuffs.

After baking. the pizza or Quiche is rapidly removed from the oven. and served shrieking hot to clients. To complete an order. Kristina has to pack the pizza or Quiche. add packages of mozzarella cheese. hot Piper nigrums and other dining accessories. and so take money from clients. All of these ( postbaking ) activities take a sum of 2 proceedingss per order. The oven can bake precisely one pizza or Quiche at a clip. Your occupation is to assist your friend Kristina with process-analysis. and do recommendations. Assume that. at the monetary values she has set. the demand is sufficiently high that all the pizza and Quiches Kristina makes can be sold. [ To reply the undermentioned inquiries. you may happen it utile to pull a procedure flow chart for pizza and Quiche devising ] . a ) What is the theoretical flow clip for pizza? What is the theoretical flow clip for Quiche?

Autonomic nervous system:

Theoretical flow clip for pizza is _ 15 proceedingss. Theoretical flow clip for Quiche is _15 proceedingss.

B ) Suppose Kristina were to do and sell merely pizzas. What is the theoretical procedure capacity per hr?

Autonomic nervous system:

Theoretical Process Capacity for pizza merely is 6 per hr. Bottleneck is oven.

degree Celsius ) Suppose Kristina were to do and sell merely quiche. What is the theoretical procedure capacity per hr?

Autonomic nervous system: Theoretical Process Capacity for Quiche merely is 6 per hr. Bottleneck is Kristina. vitamin D ) If Kristina wanted to do merely one of the two dishes ( pizza or Quiche ) . which would you urge to her? How much money could she do per hr by following your recommendations? Capacity for both pizzas and Quiche is 6 per hr. However. the borders per pizza is $ ( 61. 50 ) = $ 4. 50. and the border per Quiche is $ ( 7-3 ) = $ 4. 00. Hence. it is better to do merely pizza. and generate $ ( 4. 50 • 6 ) per hr = $ 27. 00 per hr.

OPNS-430 mid-term

vitamin E ) Could Kristina do still better than your solution for ( vitamin D ) ? If so. how? If non. why non? You will necessitate to confirm your statements with existent computations. The fast one is to detect that constrictions are different for pizzas and Quiche. The right merchandise mix could take down the emphasis on the single constrictions. therefore increasing effectual capacity and net incomes. For pizza. oven capacity is the restraint. For Quiche. work force ( Kristina ) is the restraint. In fact. the resource uses are reciprocally related. Making and selling one pizza takes 5 proceedingss of Kristina’s clip and 10 proceedingss of oven clip. Making and selling Quiche takes 10 proceedingss of Kristina’s clip and 5 proceedingss of oven clip. See now an order consisting of one Quiche and one pizza. Unit loads for such order are: ( 10+5 ) =15 proceedingss for Kristina and 15 proceedingss of oven clip: Therefore. both resources are constrictions and will be used maximally.

The procedure capacity is 1order/15min = 4 orders/hr. Therefore. with this mix. the procedure can do 4 pizzas and 4 Quiche per hr. bring forthing $ ( 4 • 4. 50 + 4 • 4. 00 ) = $ 34. 00 per hr. which is significantly higher than the $ 27. 00 per hr generated by doing pizza entirely. [ 7 ] National Cranberry: Workers at the RP1 works are really unhappy at the long overtimes they need to set in during the extremum season. and are endangering to travel on work stoppage. National Cranberry’s direction is now sing steps to turn to this. Indicate whether overtime will diminish. addition or stay unchanged by each of the undermentioned alterations ( circle your reply ) : a ) Buying a new Kiwanee dump truck. Effect on processing overtime: Increase Decrease Remain unchanged

B ) Addition in monetary values paid by RP1 to agriculturists for dry berries ensuing in more dry berries being grown by husbandmans Effect on treating overtime: Increase Decrease Remain unchanged

degree Celsius ) Fall in monetary values of bagged berries ensuing in less bagged berries at works Effect on treating overtime: vitamin D ) Purchase of a drier Effect on treating overtime: Increase Decrease Remain unchanged Increase Decrease Remain unchanged

Indicate which of the undermentioned statements is ( are ) correct ( I ) A functional layout is preferred to a merchandise focal point cell layout when a big assortment of merchandises is to be produced with really unsure demand for each merchandise. A merchandise focal point cell layout is preferred to a functional layout when a big assortment of merchandises is to be produced with really unsure demand for each merchandise.

A functional layout is preferred to a merchandise focal point cell layout when a little assortment of merchandises is to be produced with stable demand for each merchandise. A merchandise focal point cell layout is ever preferred to a functional layout. A functional layout is ever preferred to a merchandise focal point cell layout.

Tikes. Inc. makes plaything houses. A plaything house consists of two chief constituents – a base and a roof ( much like our house game exercising in category ) . Their installation is setup in cells with seven individuals per cell. Assortment and velocity are competitory precedences in this concern. Market research suggests that the undermentioned colour combinations will be popular. [ Preliminary monthly prognosiss are besides given. ] Roof Color Green Black Burgundy Red Base Color Red Yellow Beige White Total Monthly Forecast 4000 2000 500 1000

The direction of Tikes wants to implement Toyota Production System ( TPS ) . Just-in-Time. Pull Systems. and Heijunka are some of the cardinal thoughts in TPS. ( a ) For the prognosis given above. propose an ideal production agenda that implements Heijunka. Heijunka degree loads the works and therefore replicates the above mix with the smallest quotable rhythm. Such rhythm can non hold less than 1 unit of burgundy-beige. This so implies that the optimum heijunka rhythm contains 8green-red. 4 black-yellow. 1 burgundy ecru. and 2 ruddy white. ( The sequence within a rhythm can besides be “leveled” and assorted sequences are possible. For illustration. 4 green-red. 2 black yellow. 1 ruddy white. 4 greenred. 2 black yellow. 1 ruddy white. 1 burgundy beige repeated. ) ( B ) See the procedure flow to bring forth a plaything house as shown below. Suggest TWO pull mechanisms to implement the assorted theoretical account production agenda developed in portion ( a ) . For each of the mechanisms specify what colour ( s ) stuff each buffer may incorporate ( bespeak this in the several flow charts shown below ) . Mechanism 1: Multiple buffers ( one for each colour at each phase ) . Multiple buffers shown merely on base part.

( degree Celsius ) Heijunka production suggested in portion ( a ) requires some information sing the sequence of toy production. For each of the mechanisms suggested in ( B ) . stipulate which phase in the procedure flow needs this information. With multiple buffers. concluding assembly needs to cognize the sequence in which merchandises are produced. With sequenced flow. production control needs to cognize the sequence in which merchandises are produced. ( vitamin D ) Compare the two mechanisms outlined in ( B ) along TWO dimensions giving pros and cons of each. Multiple kanbans is easier to implement but will necessitate more stock list to be stored in the work country. It is best suited for lower cost constituents with limited assortment and little size. Sequenced flow ensures merely one unit at the assembly country. Quality demands from Stationss are really high if this system is to map.

Sequenced flow is better suited for high value constituents with high assortment and big size such as seats in a auto. [ 10 ] Company ABC manufactures doodads utilizing a two-stage system in which there is one machine in the first phase and 2 indistinguishable machines in the 2nd phase. The machine in the first phase can bring forth at an mean rate of 10 occupations per displacement. Each machine in the 2nd phase can bring forth at an mean rate of 5 occupations per displacement. Each merchandise has to be foremost processed on the first machine and so on one of the three 2nd phase machines. The demand for doodads is 10 occupations / displacement. Recently a Nipponese company entered the market and ABC faces terrible competition. Mr. O. M. Veep. V. P. Operations of ABC has heard about the Nipponese attack to operations and after visits to several installations in Japan concludes that the key to Nipponese cost and clip fight is zero stock lists. Based on the informations supplied by the comptroller. Mr. Veep dictates that no stock lists be carried in the store floor.

You were merely hired as ABC’s new direction houseman and given duty to implement Mr. Veeps directives. Preliminary information aggregation shows that the first machine produces at an mean rate of 10 occupations per displacement but there are fluctuations from one hebdomad to the following. Similarly. each machine in the 2nd phase produces at an mean rate of 5 jobs/shift but there are fluctuations from one displacement to the following. Due to Mr. Veep’s determinations. you believe the throughput of the installation will be: ¦ Less than 10 occupations / displacement ¦ More than 10 occupations / displacement ¦ Unchanged Explain. Reducing the buffer size will diminish end product. Restricting the buffer size consequences in more state of affairss where the first phase is blocked because the buffer is full. As a consequence there are more state of affairss where the 2nd phase has nil to work on because the buffer is empty. This reduces end product. The nexus between buffer size and throughput is as discussed in the machine simulation in category and the river analogy.