Chapter 6 - Review and Discussion Questions 1 Compare...

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Review and Discussion Questions 1. Compare McDonald's old and new processes for making hamburgers. How valid is McDonald's claim that the new process will produce fresher hamburgers for the customers? Comparing McDonald's new process to the processes used by Burger King and Wendy's, which process would appear to produce the freshest hamburgers? Exhibit 6.2 illustrates the various processes. McDonald's old process was a make-to-stock, where orders were pulled from finished goods. However, McDonald's new process will assemble-to-order. Therefore, McDonald's claim of a fresher hamburger should hold. Burger King's process is a combination of McDonald's old and new processes. The best Burger King can hope to do is match McDonald's with their orders that are assembled-to-order. The ones that are taken from finished goods will generally not be as fresh. Wendy's, on the other hand, should beat both McDonald's and Burger King on freshness, since they cook-to-order (Make-to-order)! 2. State in your own words what Little's Law means. Think of an example that you have observed where Little's Law applies. Little's Law shows the relationship between throughput rate, throughput time, and the amount of work-in-process inventory. Specifically, it is throughput time equals amount of work-in-process inventory divided by the throughput rate. Little's Law is useful for examining the performance of a process. Example 6.1, bread-making operation, illustrate an application of Little Law. 3. Explain how having more work-in-process inventory can improve the efficiency of a process? How can this ever be bad?
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