Assignment1_Solution - Production and Operations Management...

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Production and Operations Management (70-371) Professor Soo-Haeng Cho Assignment 1 Performance Measurement and Process Analysis D UE : February 2, 2009, 12:30pm; hard-copy ONLY. N OTE : To receive partial/full credit all calculations must be explained and shown. Q UESTION 1 (10 P OINTS ) Following are several examples of organizations. For each, identify underlying business processes in terms of inputs, outputs and resources employed. Who are potential customers and major competitors? What financial and operational measures would you choose to assess the performance of these processes? - Dell - Café in the ground floor of Posner Hall - Tepper School of Business The below is one good answer from one of your classmates. There could be multiple answers to this question. You need to recognize that performance measures must depend on each organization’s unique objective. 1. Dell Inputs at Dell are the materials that go into each process of making computers, labor from machines and people to assemble the computers, made-to-order and shipping processes. They are going to output laptops, servers, pc’s that are made to order from their website or telephone, or sold through retail stores. Potential customers are single family homes that need a PC or laptop, college students, business professionals and other individuals. They also can mass-market their computers to big corporations and universities. Finally, they sell their computers to retailers like Best Buy who resell them with a mark-up price. Their major competitors for computers would be Apple who makes Macs with a different operating system. Also, other Microsoft windows operated computers like Hewlett-Packard, Lenovo, Compaq, Acer and Gateway all make competing products with Dell. In order to assess the performance of this process, I would look at financial income statements and balance sheets and also compare throughput ratios. I could look at the Dupont formula to compare the ROA of each company by looking at the turnover multiplied by the operating profit as a percentage of sales. I would also look at the turnover ratios of each company as sales/total assets. Finally, I could look at the operating profit as a percentage of sales as operating profit/sales.
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2. Gingers in Posner Hall Gingers has inputs of paid staff that work by the hour, all the food that they buy to prepare and the rent they have to pay to the school for being at CMU. The food and ingredients are also a resource. They have outputs of assorted sandwiches and hot foods
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Assignment1_Solution - Production and Operations Management...

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