Note 1: Show all your work to get credit. Write your solutions clearly and neatly.
Note 2: Questions 1, 2, and 3 worth 10 points each, and question 4 worth 20 points.
Some Helpful YouTube Videos
Decision Trees: https://www.youtube.com/watch?v=jzoDKtnTPpg
Flowchart Diagram: https://www.youtube.com/watch?v=hN9xemJYwos
Create a Flowchart in Excel: https://www.youtube.com/watch?v=HSfYsmTVogw
Create a Flowchart in PowerPoint: https://www.youtube.com/watch?v=GsfZD4oU7l0
Create a Flowchart in Word: https://www.youtube.com/watch?v=hjhJ3-jSBM8
Fishbone Diagram: https://www.youtube.com/watch?v=JbRx5pw-efg
Pareto Chart: https://www.youtube.com/watch?v=gSy7KPfaA8g
Question 1
Chapter 1: Read and watch the video case “Using Operations to Create Value at Crayola” on pages 29 & 30 of the textbook. Identify one of Crayola’s competitive priorities and answer the following questions for it. See Table 1.3 on pages 12&13 of the textbook for a list of competitive priorities and for their definitions.
You can access the video from “Multimedia Library” on MyOMLab’s website.
Question 2
Supplement A: The demand for a customized knee implants continues to increase at a large orthopedic hospital. The management is evaluating three different alternatives to meet the increasing demand: purchase of one or two 3D printers and the related software or outsourcing to a manufacturer. A consultant’s report indicates a 0.20 probability that demand will be low, 0.50 probability that demand will be moderate, and 0.30 probability that demand will be high. Potential profits/losses for different demand levels are presented in the below table.
| Alternative | Payoff: Profit (in thousands) for Demand Levels | ||
| Low | Moderate | High | |
| Buy One 3D Printer | – 20 | 55 | 100 |
| Buy Two 3D Printers | – 40 | 50 | 125 |
| Outsource | 20 | 60 | 80 |
Question 3
Chapter 2: Describe a process you are familiar with and draw a flowchart for the process. Make sure all the steps of the process and the arrows used to show the flow are clearly illustrated in your chart. See Figure 2.16 on page 82 of the textbook for an example.
Question 4
Chapter 2: Think of a process problem that you have experienced and submit your answers to the following questions.
- Describe the process problem.
- Construct a cause-and-effect (fishbone) diagram showing the potential causes of the problem. The process problem you discussed in part a should be presented in the head of the diagram. Your diagram should include at least three major categories of potential causes (e.g., management, manpower, materials, etc.) and six specific causes. Make sure the causes are clearly stated. See Figure 2.13 on page 75 of the textbook for an example.
- Provide/create data for the number of occurrences of the specific causes you identified in part b and develop a Pareto diagram to prioritize the causes. Make sure your diagram shows ALL the specific causes (not the major categories). See Figure 2.12 on page 74 of the textbook for an example.
- Suggest process improvements that would eliminate/relieve the major cause of the problem as identified by your Pareto chart in part c (the cause that has the highest percentage of occurring).
