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Operations management assignment




Question;1. Receptionists at a medical clinic are estimated to spend;approximately 5% of the time during each shift in answering telephone calls. A;work-sampling study of the receptionists? jobs is proposed to determine more;precisely how much time is actually spent on the telephone. If a 95% confidence;interval and ? 2% absolute error are acceptable, how many observations are;required?;2. A work-sampling study was performed on an electronic assembly;operation at OK Instruments. The study covered an 8 hour shift with a single;worker. The results of the study were;Activity;Percent of worker?s time;Assemble units;80;Allowance;20;If the worker received a performance rating of 1.20 on the;assemble units activity and 400 units were produced during the study, what is;the labor standard for this operation?;3. John Morton, design engineer at the corporate R&D center;of Computer Products Corporation (CPC) in San Jose, is a member of a new;product development team. The team is near the end of the of the new product;development process and is working on manufacturing cost estimates for the new;product so that the marketing staff can set the price of the product to CPC?s;customers. The new product is a new bubble memory unit to be incorporated into;personal and small-business computers. The team produced one of the units in;their model shop and it took 22.5 labor-hours. If the manufacture of the new;product is expected to conform to a 90% learning rate and the marketing staff;estimates that the firm should be able to sell 4.096 units in its introductory;year, use the arithmetic analysis method to estimate the labor-hours required;to produce a memory at the end of the first year.;4. A repair facility is beginning to repair a group of 35;identical machines with identical malfunctions. It is estimated that the first;unit will require 190 labor-hours and an 85% learning rate is expected.;a. How many labor-hours will be required to repair the;thirty-fifth machine?;b. How many labor-hours will be required to repair all 35;machines?;Phonograph Corporation of American (PCA) is a company;specializing in the manufacturing of phonograph records on a subcontracting;basis. For such companies as Music Corporation of American (MCA), Columbia;Records, Motown Record:, and Radio Corporation of American (RCA). The company;is located in Fort Wayne, Indiana and has been in business for 35 years. At;present, 300O local employees work at PCA.;Phonograph records are manufactured by molding hot plastic resin;in hydraulic presses. The ?stumpers? or molds are furnished by the customer for;each order to be pressed. The plastic resin is prepared in batches as needed;and maintained in supply tanks in the press floor area. Record labels are;printed by an outside printer (usually arranged for by the customer) and are;maintained in a small supply room off the press floor. As needed, an;appropriate supply of labels is held on a small ?spindle? next to the press;where the label is being used. The steps in making the records are not;complicated. The press operator must;Obtain a;premeasured amount of resin *about 2 cubic inches) from the holding tank;adjacent to the press.;Center the;lower side label on the lower mold;Center the;resin on the lower mold;Center the;upper label on the resin;Engage the;press (for about 12 seconds);Release the;press;Remove the;pressed record;Inspect the;record for major flaws;Place the;record on a finished goods holding spindle;The press operator can work two presses at the same time. In;addition the operator has related duties associated with materials handling of;raw materials and finished goods.;After pressing, the records proceed to sampling inspection and;then to the packaging and shipping department which is under the supervision of;the packaging supervisor. The packaging supervisor reports directly to the Vice;President for Operations.;The Press Department (consisting of 150 presses) is managed by a;production superintend who has been with the company for 32 years. He is;responsible for the present operations design as well as the operation;procedures, most of which are not documented in writing. However the procedures;are generally well understood by the press room employees. There are about 175;employees in the Press Department, although new presses (10 employees) were;added last year and 10 new presses (11 employees) will be added this year. The;production superintends reports directly to the Vice President for Operations.;The company recently established a Methods and Work Measurement;Unit which also reports directly to Vice President for Operations. The unit was;established in order to quantify measures of work content in the various jobs;in the organization, including the press floor, materials handling, resin;production, and even office operations. The Vice President had felt for some;time that improvements were needed in the work methods and measurement area. He;felt that through the unit, improvement would result in the company?s job cost;bidding procedures and general production control procedures. The V. P. has;always had a high level of confidence in the production superintendent but;recognized the fact that line employees need specialized staff assistance. The;line employees could simply not be expected to do an adequate job of work measurement;and methods analysis since they have more important primary missions, e. g.;met production goals.;The concerns of V.P. were heightened recently by a consulting;report which showed PCA losing several major contacts to other record;subcontractors who are using the same basic technology as PCA. The V.P. simply;felt that improvements could be made throughout the organization.;The Methods and Work Measurement Unit is headed by John Raymond;a 35 year old graduate of The Industrial Engineering Technology program at;Southern Tech in Atlanta. Raymond has 14 years experience in methods and work;measurement but has not heretofore worked in the phonograph record;manufacturing industry.;The first major task undertaken by the Unit was to establish;specific standards for the pressing of 33 and 45 PRM records, including;packaging. Raymond informed the production superintendent that a brief methods;study would firs be performed. The production superintendent became furious;complaining directly to the V. P.;?Why do we need a method study of the press operation? I agree;that we do have an immediate need for standards so that our sales people can;bid jobs more effectively and we can implement a wage incentive system. The;process we are using is fine however. You and I set that process ourselves;together the two of us have over 50 years experience in this business while;Raymond has 2 weeks experience. Do you trust our collective judgment or his? If;those college kids in the Methods and Work Measurement Unit want to waste time;on a methods study, let them do if after we?ve got the standards in place. I?m;in charge of production on the press floor and therefore assume that I will;continue to have responsibility for production methods. You can?t let the staff;people circumvent my line authority. When we set up the unit, I thought that it;was going to be a ?support? unit for the line. Now I find out that Raymond;thinks he has the run of the place around here so that he can initiate any;study he wants. That kind of practice is going to undermine my relationship;with my supervisors and employees. After all, I am the line manager am I not? I;manage the bread and butter, money making end of this organization. As such I;should have control of my operation. The Unit should undertake studies of my;operation at my invitation, not at their election. As a matter of fact, my;press floor operation is by far the largest organization unit reporting to you;as V.P. Maybe the Methods and Work Measurement Unit should report to me since;75% of their work will be done for me. That would resolve our conflict.?;Questions;What is the;major issue in this case?;What created;the major problem described in this case?;What course of;action should be taken?


Paper#51752 | Written in 18-Jul-2015

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