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STUVIA?_APPROVED??
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PR
AP
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TABLE OF CONTENTS
PR
Solutions Manual: Operations Management: Sustainability and
Supply Chain Management, 5th Canadian Edition
Authors: Jay Heizer, Barry Render, Chuck Munson, Paul Griffin
OV
1. Operations and Productivity
2. Operations Strategy in a Global Environment
ED
3. Project Management
4. Forecasting
5. Design of Goods and Services
_S
6. Managing Quality
7. Process Strategy
8. Location Strategies
TU
9. Layout Strategies
10. Human Resources, Job Design, and Work Measurement
11. Supply Chain Management
VI
12. Inventory Management
13. Aggregate Planning and Sales and Operations Planning
A?
14. Material Requirements Planning (MRP) and ERP
15. Short-Term Scheduling
16. Lean Operations
17. Maintenance and Reliability
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1
AP
C H A P T E R
PR Operations and Productivity
OV
DISCUSSION QUESTIONS many other countries) are increasingly “knowledge” societies,
productivity is harder to measure. Using labour-hours as a
1. The text suggests four reasons to study OM. We want to measure of productivity for a postindustrial society vs. an industrial
understand (1) how people organize themselves for productive or agricultural society is very different. For example, decades spent
E
enterprise, (2) how goods and services are produced, (3) what
operations managers do, and (4) how this costly part of our economy
D_ developing a marvellous new drug or winning a very difficult legal
case on intellectual property rights may be significant for post-
and most enterprises functions. industrial societies, but not show much in the way of productivity
2. Possible responses include: Adam Smith (work specialization/ improvement measured in labour-hours.
division of labour), Charles Babbage (work specialization/division of 10. Productivity is difficult to measure because precise units of
labour), Frederick W. Taylor (scientific management), Walter Shewart measure may be lacking, quality may not be consistent, and
(statistical sampling and quality control), Henry Ford (moving exogenous variables may change.
assembly line), Charles Sorensen (moving assembly line), Frank and
3.
ST
Lillian Gilbreth (motion study), Eli Whitney (standardization).
See references in the answer to Question 2.
11. Mass customization is the flexibility to produce in order to
meet specific customer demands, without sacrificing the low cost
of a product-oriented process. Rapid product development is a
4. The actual charts will differ, depending on the specific source of competitive advantage. Both rely on agility within the
organization the student chooses to describe. The important thing organization.
UV
is for students to recognize that all organizations require, to a
greater or lesser extent, (a) the three primary functions of
operations, finance/accounting, and marketing; and (b) that the
12. Labour productivity in the service sector is hard to improve
because (1) many services are labour intensive and (2) they are
individually (personally) processed (the customer is paying for
emphasis or detailed breakdown of these functions is dependent that service—the haircut), (3) it may be an intellectual task
on the specific competitive strategy employed by the firm. performed by professionals, (4) it is often difficult to mechanize
5. The answer to this question may be similar to that for Question 4.
IA and automate, and (5) it is often difficult to evaluate for quality.
Here, however, the student should be encouraged to utilize a more 13. Taco Bell designed meals that were easy to prepare; with
detailed knowledge of a past employer and indicate on the chart actual cooking and food preparation done elsewhere; automation to
additional information such as the number of persons employed to save preparation time; reduced floor space; and manager training to
perform the various functions and, perhaps, the position of the increase span of control.
functional areas within the overall organization hierarchy.
??
6. The basic functions of a firm are marketing, accounting/
finance, and operations. An interesting class discussion: “Do all
ETHICAL DILEMMA
With most of the ethical dilemmas in the text, the instructor
firms/organizations (private, government, not-for-profit) perform should generate plenty of discussion. The authors are hesitant to
these three functions?” The authors’ hypothesis is yes, they do. endorse a particular correct answer, and students may well be on
7. The 10 decisions of operations management are product both sides of this dilemma.
design, quality, process, location, layout, human resources, Many students will be inclined to accept the child labour laws
supply-chain management, inventory, scheduling (aggregate and of their home country. For instance, Americans accept teenagers
short term), and maintenance. We find this structure an excellent working. But Germans (and others) are more likely to expect
way to help students organize and learn the material. teenagers to be home studying or in an apprentice program; they
8. Four areas that are important to improving labour productivity frown upon teenagers working. Students raised in more affluent
are: (1) basic education (basic reading and math skills), (2) diet of environments may not understand children working. However,
the labour force, (3) social overhead that makes labour available those who had to scrape by in their youth or had parents that did
(water, sanitation, transportation, etc.), and (4) maintaining and may be more sympathetic to 10-year-olds working.
expanding the skills necessary for changing technology and From an economic and self-preservation perspective many
knowledge, as well as for teamwork and motivation. 10-year-olds do work and need to work. There are still a lot of
poor people in the world. Such a decision may endorse the moral
9. Productivity is harder to measure when the task becomes
philosophy perspective defined as a utilitarianism decision.
more intellectual. A knowledge society implies that work is more
intellectual and therefore harder to measure. Because Canada (and
, STUVIA?_APPROVED??
2 CHAPTER 1 O P E RAT I O NS AND P RO DUCT IVIT Y
AP
A utilitarianism decision defines acceptable actions as those that 1.5 Resource Last Year This Year Change Percent Change
maximize total utility, that is, the greatest good for the greatest
number of people. 1,000 1,000 0.31 0.31
Labour 3.33 3.64 9.3%
From a Canadian corporate management perspective, 300 2.75 3.33
PR
companies cannot tolerate the publicity that goes with hiring 10-
year-olds. These companies need to have standards that prohibit Resin 1,000
20
1,000
22.22 2.22
2.22
11.1%
such actions by their subcontractors. The moral philosophy per- 50 45 20
spective might call this the virtue ethics position—the decision 1,000 1,000 0.01
that a mature person with a good moral character would deem Capital 0.1 0.09 –0.01 10.0%
correct.
END-OF-CHAPTER PROBLEMS
OV Energy
10,000
1,000
0.33
11,000
1,000
0.35
0.1
0.02
6.1%
3,000 2.850 0.02 0.33
120 boxes
1.1 (a) = 3.0 boxes/hour
40 hours
1.6 Last Year This Year
125 boxes
(b)
40 hours
E
= 3.125 boxes/hour
D_ Production
Labour hr. @ $10
1,000
$3,000
1,000
$2,750
Resin @ $5 250 225
(c) Change in productivity = 0.125 boxes/hour Capital cost/month 100 110
0.125 boxes Energy 1,500 1,425
(d) Percentage change = = 4.166%
3.0 $4,850 $4,510
1.2 (a) Labour productivity is 160 valves/80 hours = 2 valves [(1,000/4,850) (1,000/4,510)]
per hour.
ST
(b) New labour productivity = 180 valves / 80 hours = 2.25
valves per hour
(1,000/4,850)
0.206–0.222 –0.016
= = 0.078 fewer resources
(c) Percentage change in productivity = .25 valves / 2 0.206 0.206
valves 12.5%
1.3 0.15 =
57,600
, where L
UV
number of labourers
Output
7.8% improvement*
* with rounding to 3 decimal places.
(160)(12)(L)
employed at the plant 1.7 Productivity =
Input
57,600 (a) 65 65
So L = = 200 labourers employed Labour productivity = =
(160)(12)(0.15)
IA (520 × 13) $6,760
= 0.0096 rugs per labour $
Units produced 100 pkgs
1.4 (a) = = 20 pkgs/hour
Input 5 (b) Multifactor 65
(b)
133 pkgs
= 26.6 pkgs per hour
?? productivity (520 × $13) + (100 × $5) + (20 × $50)
5 65
0.00787 rugs per $
6.6 $8,260
(c) Increase in productivity 33.0%
20 1.8 (a) Labour productivity = 1,000 tires/400 hours = 2.5
tires/hour.
(b) Multifactor productivity is 1,000 tires/ (400 $12.50
20,000 $1 $5,000 $10,000) 1,000 tires/$40,000
0.025 tires/dollar.
(c) Multifactor productivity changes from 1,000/40,000 to
1,000/39,000, or from 0.025 to 0.02564; the ratio is
1.0256, so the change is a 2.56 % increase.
A?
VI
TU
_S
STUVIA?_APPROVED??
ED
OV
PR
AP
, STUVIA?_APPROVED??
AP
TABLE OF CONTENTS
PR
Solutions Manual: Operations Management: Sustainability and
Supply Chain Management, 5th Canadian Edition
Authors: Jay Heizer, Barry Render, Chuck Munson, Paul Griffin
OV
1. Operations and Productivity
2. Operations Strategy in a Global Environment
ED
3. Project Management
4. Forecasting
5. Design of Goods and Services
_S
6. Managing Quality
7. Process Strategy
8. Location Strategies
TU
9. Layout Strategies
10. Human Resources, Job Design, and Work Measurement
11. Supply Chain Management
VI
12. Inventory Management
13. Aggregate Planning and Sales and Operations Planning
A?
14. Material Requirements Planning (MRP) and ERP
15. Short-Term Scheduling
16. Lean Operations
17. Maintenance and Reliability
?
, STUVIA?_APPROVED??
1
AP
C H A P T E R
PR Operations and Productivity
OV
DISCUSSION QUESTIONS many other countries) are increasingly “knowledge” societies,
productivity is harder to measure. Using labour-hours as a
1. The text suggests four reasons to study OM. We want to measure of productivity for a postindustrial society vs. an industrial
understand (1) how people organize themselves for productive or agricultural society is very different. For example, decades spent
E
enterprise, (2) how goods and services are produced, (3) what
operations managers do, and (4) how this costly part of our economy
D_ developing a marvellous new drug or winning a very difficult legal
case on intellectual property rights may be significant for post-
and most enterprises functions. industrial societies, but not show much in the way of productivity
2. Possible responses include: Adam Smith (work specialization/ improvement measured in labour-hours.
division of labour), Charles Babbage (work specialization/division of 10. Productivity is difficult to measure because precise units of
labour), Frederick W. Taylor (scientific management), Walter Shewart measure may be lacking, quality may not be consistent, and
(statistical sampling and quality control), Henry Ford (moving exogenous variables may change.
assembly line), Charles Sorensen (moving assembly line), Frank and
3.
ST
Lillian Gilbreth (motion study), Eli Whitney (standardization).
See references in the answer to Question 2.
11. Mass customization is the flexibility to produce in order to
meet specific customer demands, without sacrificing the low cost
of a product-oriented process. Rapid product development is a
4. The actual charts will differ, depending on the specific source of competitive advantage. Both rely on agility within the
organization the student chooses to describe. The important thing organization.
UV
is for students to recognize that all organizations require, to a
greater or lesser extent, (a) the three primary functions of
operations, finance/accounting, and marketing; and (b) that the
12. Labour productivity in the service sector is hard to improve
because (1) many services are labour intensive and (2) they are
individually (personally) processed (the customer is paying for
emphasis or detailed breakdown of these functions is dependent that service—the haircut), (3) it may be an intellectual task
on the specific competitive strategy employed by the firm. performed by professionals, (4) it is often difficult to mechanize
5. The answer to this question may be similar to that for Question 4.
IA and automate, and (5) it is often difficult to evaluate for quality.
Here, however, the student should be encouraged to utilize a more 13. Taco Bell designed meals that were easy to prepare; with
detailed knowledge of a past employer and indicate on the chart actual cooking and food preparation done elsewhere; automation to
additional information such as the number of persons employed to save preparation time; reduced floor space; and manager training to
perform the various functions and, perhaps, the position of the increase span of control.
functional areas within the overall organization hierarchy.
??
6. The basic functions of a firm are marketing, accounting/
finance, and operations. An interesting class discussion: “Do all
ETHICAL DILEMMA
With most of the ethical dilemmas in the text, the instructor
firms/organizations (private, government, not-for-profit) perform should generate plenty of discussion. The authors are hesitant to
these three functions?” The authors’ hypothesis is yes, they do. endorse a particular correct answer, and students may well be on
7. The 10 decisions of operations management are product both sides of this dilemma.
design, quality, process, location, layout, human resources, Many students will be inclined to accept the child labour laws
supply-chain management, inventory, scheduling (aggregate and of their home country. For instance, Americans accept teenagers
short term), and maintenance. We find this structure an excellent working. But Germans (and others) are more likely to expect
way to help students organize and learn the material. teenagers to be home studying or in an apprentice program; they
8. Four areas that are important to improving labour productivity frown upon teenagers working. Students raised in more affluent
are: (1) basic education (basic reading and math skills), (2) diet of environments may not understand children working. However,
the labour force, (3) social overhead that makes labour available those who had to scrape by in their youth or had parents that did
(water, sanitation, transportation, etc.), and (4) maintaining and may be more sympathetic to 10-year-olds working.
expanding the skills necessary for changing technology and From an economic and self-preservation perspective many
knowledge, as well as for teamwork and motivation. 10-year-olds do work and need to work. There are still a lot of
poor people in the world. Such a decision may endorse the moral
9. Productivity is harder to measure when the task becomes
philosophy perspective defined as a utilitarianism decision.
more intellectual. A knowledge society implies that work is more
intellectual and therefore harder to measure. Because Canada (and
, STUVIA?_APPROVED??
2 CHAPTER 1 O P E RAT I O NS AND P RO DUCT IVIT Y
AP
A utilitarianism decision defines acceptable actions as those that 1.5 Resource Last Year This Year Change Percent Change
maximize total utility, that is, the greatest good for the greatest
number of people. 1,000 1,000 0.31 0.31
Labour 3.33 3.64 9.3%
From a Canadian corporate management perspective, 300 2.75 3.33
PR
companies cannot tolerate the publicity that goes with hiring 10-
year-olds. These companies need to have standards that prohibit Resin 1,000
20
1,000
22.22 2.22
2.22
11.1%
such actions by their subcontractors. The moral philosophy per- 50 45 20
spective might call this the virtue ethics position—the decision 1,000 1,000 0.01
that a mature person with a good moral character would deem Capital 0.1 0.09 –0.01 10.0%
correct.
END-OF-CHAPTER PROBLEMS
OV Energy
10,000
1,000
0.33
11,000
1,000
0.35
0.1
0.02
6.1%
3,000 2.850 0.02 0.33
120 boxes
1.1 (a) = 3.0 boxes/hour
40 hours
1.6 Last Year This Year
125 boxes
(b)
40 hours
E
= 3.125 boxes/hour
D_ Production
Labour hr. @ $10
1,000
$3,000
1,000
$2,750
Resin @ $5 250 225
(c) Change in productivity = 0.125 boxes/hour Capital cost/month 100 110
0.125 boxes Energy 1,500 1,425
(d) Percentage change = = 4.166%
3.0 $4,850 $4,510
1.2 (a) Labour productivity is 160 valves/80 hours = 2 valves [(1,000/4,850) (1,000/4,510)]
per hour.
ST
(b) New labour productivity = 180 valves / 80 hours = 2.25
valves per hour
(1,000/4,850)
0.206–0.222 –0.016
= = 0.078 fewer resources
(c) Percentage change in productivity = .25 valves / 2 0.206 0.206
valves 12.5%
1.3 0.15 =
57,600
, where L
UV
number of labourers
Output
7.8% improvement*
* with rounding to 3 decimal places.
(160)(12)(L)
employed at the plant 1.7 Productivity =
Input
57,600 (a) 65 65
So L = = 200 labourers employed Labour productivity = =
(160)(12)(0.15)
IA (520 × 13) $6,760
= 0.0096 rugs per labour $
Units produced 100 pkgs
1.4 (a) = = 20 pkgs/hour
Input 5 (b) Multifactor 65
(b)
133 pkgs
= 26.6 pkgs per hour
?? productivity (520 × $13) + (100 × $5) + (20 × $50)
5 65
0.00787 rugs per $
6.6 $8,260
(c) Increase in productivity 33.0%
20 1.8 (a) Labour productivity = 1,000 tires/400 hours = 2.5
tires/hour.
(b) Multifactor productivity is 1,000 tires/ (400 $12.50
20,000 $1 $5,000 $10,000) 1,000 tires/$40,000
0.025 tires/dollar.
(c) Multifactor productivity changes from 1,000/40,000 to
1,000/39,000, or from 0.025 to 0.02564; the ratio is
1.0256, so the change is a 2.56 % increase.
