BUS 515 Week 2 Operations Management Answers

Course: BUS 515 Operations Management
School: Strayer University

  1. Two workers have the job of placing plastic labels on packages before the packages are shipped out. The first worker can place 1000 labels in 30 minutes. The second worker can place 850 labels in 20 minutes. Which worker is more productive?
  2. Last week a painter painted three houses in five days. This week she painted two houses in four days. In which week was the painter more productive?
  1. One type of bread-making machine can make six loaves of bread in five hours. A new model of the machine can make four loaves in two hours. Which model is more productive?
  1. A company that makes kitchen chairs wants to compare productivity at two of its facilities. At facility #1, six workers produced 240 chairs. At facility #2, four workers produced 210 chairs during the same time period. Which facility was more productive?
  2. A painter is considering using a new high-tech paint roller. Yesterday he was able to paint three walls in 45 minutes using his old method. Today he painted two walls of the same size in 20 minutes. Is the painter more productive using the new paint roller?
  1. Aztec Furnishings makes hand-crafted furniture for sale in its retail stores. The furniture maker has recently installed a new assembly process, including a new sander and polisher. With this new system, production has increased to 90 pieces of furniture per day from the previous 60 pieces of furniture per day. The number of defective items produced has dropped from 10 pieces per day to 1 per day. The production facility operates strictly eight hours per day. Evaluate the change in productivity for Aztec using the new assembly process.
  2. Howard Plastics produces plastic containers for use in the food packaging industry. Last year its average monthly production included 20,000 containers produced using one shift five days a week with an eight-hour-a-day operation. Of the items produced 15 percent were deemed defective. Recently, Howard Plastics has implemented new production methods and a new quality improvement program. Its monthly production has increased to 25,000 containers with 9 percent defective.a) Compute productivity ratios for the old and new production system.
    b) Compare the changes in productivity between the two production systems.
  1. Med-Tech labs is a facility that provides medical tests and evaluations for patients, ranging from analyzing blood samples to performing magnetic resonance imaging (MRI). Average cost to patients is $60 per patient. Labor costs average $15 per patient, materials costs are $20 per patient, and overhead costs are averaged at $20 per patient.

    a) What is the multifactor productivity ratio for Med-Tech? What does your finding mean?
    b) If the average lab worker spends three hours for each patient, what is the labor productivity ratio?

  1. Handy-Maid Cleaning Service operates five crews with three workers per crew. Different crews clean a different number of homes per week and spend a differing amount of hours. All the homes cleaned are about the same size. The manager of Handy-Maid is trying to evaluate the productivity of each of the crews. The following data have been collected over the past week.
Work Crew Hours Homes Cleaned
Anna, Sue, and Tim 35 10
Jim, Jose, and Andy 45 15
Dan, Wendy, and Carry 56 18
Rosie, Chandra, and Seth 30 10
Sherry, Vicky, and Roger 42 18

Assuming the quality of cleaning was consistent between crews, which crew was most productive?

  1. Slick Pads is a company that manufactures laptop notebook computers. The company is considering adding its own line of computer printers as well. It has considered the implications from the marketing and financial perspectives and estimates fixed costs to be $500,000. Variable costs are estimated at $200 per unit produced and sold. Describe the types of operations considerations that the company needs to consider before making the final decision.a) If the company plans to offer the new printers at a price of $350, how many printers does it have to sell to break even?
    b) Describe the types of operations considerations that the company needs to consider before making the final decision.
  1. Harrison Hotels is considering adding a spa to its current facility in order to improve its list of amenities. Operating the spa would require a fixed cost of $25,000 a year. Variable cost is estimated at $35 per customer. The hotel wants to break even if 12,000 customers use the spa facility. What should be the price of the spa services? (Round answer to 2 decimal places, e.g. 15.25)
  • 14/05/2017
  • 15
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