practice_1_solution

practice_1_solution - Practice #1 Solutions Process...

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Practice #1 Solutions Process Analysis and Capacity Management BUAD311 – Operations Management Fall 2010 1. Dello is a world-class PC company. Management believes that they understand their products and customers better than any outsourcing company; therefore Dello should provide customer service in-house. Ideally, Dello’s customer service department wants to handle all the customer phone calls. During peak hours, however, Dello receives so many customer calls that they ask an outsourcing company, Telemate, to help handle incoming calls. Dello’s switchboard system is programmed in the following way; A customer calls Dello at its 1-800 number. If there are 14 or less callers in the system waiting to speak with one of the customer service representatives, then the call stays within Dello’s system and the customer inquiry will be answered by a Dello customer service representative. If, on the other hand, there are 15 or more calls waiting within Dello’s system, then the incoming call is forwarded to the outsourcer Telemate, and the call will be answered by a Telemate agent. Draw the process flowchart for Dello’s customer service call handling process. 15 or more callers waiting? Callers on hold for Dello agent Call is handled by Telemate. No Yes Call arrives. Dello rep answers call
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2. Getaway is another computer company known for mass customization. Its secret is to always maintain an inventory of base models, and to offer its customers add- on options. The process is as follows: The first step is receiving the order. After receiving an order, the order is checked for add-ons. If needed, add-ons are added to the base model. (Note that base models are held in inventory). Then the computer is packed, and finally shipped. Draw a process flow diagram for the above process. If you want to be stricter, you can have triangles for add-on parts inventory and work-in-process between packing and shipping. Customer places order Need add- on or Base model Pack Ship Add add-ons No Yes
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3. Kate is managing his company’s production facility. Consider the following production process. Note: some triangles may be intentionally omitted. Raw materials go through machines A, B, and then C, to produce a final product. Capacity, or service rate, of each machine is as follows: Machine A: 200 units per hour Machine B: 180 units per hour Machine C: 120 units per hour (All these numbers are expressed in terms of units of final product.) a) Identify the bottleneck process. Is it A, B, or C? Explain briefly. Machine C, since it’s the slowest process of all. Kate sincerely believes that she must keep high utilization of machines. Every time she sees an operator idle, therefore, she orders the operator to go back to the machine and continue operating. b) What is she doing wrong? What is the most likely result if she manages the
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practice_1_solution - Practice #1 Solutions Process...

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