Exam 1: Using Operations to Create Value

List and briefly describe five differences between services and manufacturing. Processes provide examples to illustrate your arguments.

Admission to the prestigious school had become so competitive that a high GPA is no longer enough to separate one fresh-faced high school student from another. Today's outstanding candidate must also demonstrate their involvement in a myriad of extracurricular activities in order to be admitted. It seems that good grades are now:

At the level of the firm, service providers offer just services and manufacturers offer just products.

Table 1.3 The Abco Company manufactures electrical assemblies. The current process uses 10 workers and produces 200 units per hour. You are considering changing the process with new assembly methods that increase output to 300 units per hour, but will require 14 workers. Particulars are as follows: Workers are paid at a rate of $10 per hour, and overhead is charged at 140% (or 1.4 times) labor costs. Finished switches sell for $20/unit. a. Calculate the multifactor productivity for the current process. b. Calculate the multifactor productivity for the new process. c. Determine if the new process should be implemented.

A business focusing on increasing the efficiency of its operations is more directly addressing:

Contact with the customer is usually higher in a manufacturing process than in a service process.

At the process level, it is much easier to distinguish whether the process is providing a service or manufacturing a product.

The details of weekly output and input for a fabrication process are as follows: output is 400 units, with a standard selling price of $100 per unit. For the week, total labor costs are: 10 workers at 40 hours for the week, are paid $15 per hour. Total material costs for the 400 units are $5,000. Weekly overhead is charged at the rate of 1.5 times the labor costs. What is the multifactor productivity for the week?

The three person crew worked their way through the neighborhood, mowing lawns, edging, applying fertilizer and weed treatments where necessary and collecting all the clippings for use as mulch as part of their new green initiative. Their pricing scheme appears in Table A and the mix of orders and service costs appear in Table B: a. What is their multifactor productivity for these orders in the prestigious Edmond Oaks neighborhood? b. Which of the service combinations provided by them is the most productive service combination from a multifactor perspective? c. What is their labor productivity for the same mix of orders? Table A: Price List Workers are paid at a rate of $10 per hour, and overhead is charged at 120% (or 1.2 times) labor costs. For a customer that gets both mowing and edging, their $95 bill would be discounted for two services times 5% for a total of 10% off the $95 straight charge for a cost of $85.50. A customer receiving three services would get a 15% discount off their service bill. Labor hours shown in Table A are total hours for the three-person crew. Table B: Orders Processed

Table 1.1 You are the Production Manager for the toy manufacturing process at the ABC Company. -Use the information provided in Table 1.1. An example of an external supplier is:

The three main line functions of any business include Operations, Finance and Marketing.

Understanding the concepts in this text will help you become an effective manager in any functional area of business.

What are some ethical issues that are prevalent in organizations that have a global operations presence?

Barry's Tire Service completed 100 tire changes, six brake jobs, and 16 alignments in an eight-hour day with his standard crew of six mechanics. A brake specialist costs $16 per hour, a tire changer costs $8 per hour, and an alignment mechanic costs $14 per hour. The materials cost for a day was $2,000, and overhead cost was $500. a. What is the shop's labor productivity if the retail price for each respective service is $60, $150, and $40? b. What is the multifactor productivity, if the crew consisted of two of each type mechanic?

________ provide vital resources and inputs to core processes.

Price, quality, and the degree of customization are all examples of:

Service processes usually have:

You are interested in buying a laptop computer. Your list of considerations include the computer's speed in processing data, its weight, screen size and price. You consider a number of different models, and narrow your list based on its speed and monitor screen size, then finally select a model to buy based on its weight and price. In this decision, speed and monitor screen size are examples of:

What are some of the concerns operations managers must address regarding using the internet of things? Cite a specific example.

Half of the world's greenhouse gases are produced by only ________ nations.