C215 Operations Management (100% Correct)

14 points for quality improvement by Dr Deming correct answers Total Quality Management (TQM) process was developed to stress management's responsibility for quality Total Quality Management (TQM) process was developed to stress management's responsibility for quality correct answers Aggregate plan is preferable when a company produces custom or special purpose equipment, one-of-a-kind items, or highly perishable products o Produce what is needed for each week, month, and/or year o used for products with large production requirements o Disadvantages: can be expensive; constantly changing short term capacity o Example, how you are going to schedule labor? Think about scheduling employees in a restaurant busy weekends verses non-busy middle of the week. o Produces exactly what is needed each period o Sets labor/equipment capacity to satisfy period demands o Good for make-to-order products o Uses Capacity-Based Options A company manufactures and distributes its own products. When should the company consider outsourcing its distribution? correct answers When the company determines that distribution is no longer a core function o You don't want to tie up your resources (like money or people) performing non-core functions. A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory. correct answers Hire temporary workers Subcontract a portion of production capacity A hybrid aggregate plan correct answers Combination of the above two strategies Take the best of the two Once you know which strategy you going to use, you must know your production rate. You don't want back orders Adjust your plan Look at your inventory and labor to make sure everything is adequate Consider the type of service are you giving to customers Are the people working for you? Can you offer them real jobs? Is your labor work stable or are you utilizing temporary workers? A level aggregate plan correct answers Constant plan The average of the product is figured out and used for stock products Example, items you would purchase at Target Stores Disadvantage: you are forecasting demand, but demand cannot be averages; demand can change each week Maintains a constant workforce Sets capacity to accommodate average demand Often used for make-to-stock products like appliances Disadvantage- builds inventory and/or uses back orders. Remember extra inventory is tying up money that can be used for other purposes.