MGMT 3306Operations and Supply Chain ManagementFall 2015Answer all.1. In 2013, Gibison’s Auto Repair invested in a computer diagnostic machine that reads codes on a car’scomputer, thereby shortening the time it takes to determine what is wrong with a car. Consider the figuresbelow:Year Sales ($000s) Labor costs ($000s) Machine costs ($000s)2010 $2,468 $987 $02011 $2,838 $1,192 $02012 $3,085 $1,172 $02013 $3,702 $1,074 $1502014 $4,072 $1,140 $1502015 $4,319 $1,166 $150a. Calculate the labor productivity for each of the six years. How much has labor productivity improvedsince the diagnostic machine was brought in?b. Calculate the multi-factor productivity score for each year, where the “input” is the total amount spent on labor and the diagnostic machine.Next, calculate the average multi-factor productivity score for years 2010 – 2012, and years 2013 – 2015. According to the results, was it worthwhile for Gibson to invest in the diagnostic machine? Why or why not?2. To earn money while he is in school, Scott has decided to clean carpets on the side. Scott caneither rent, lease, or buy the equipment. The costs associated with each of the three capacityoptions are shown below:VariableYearly cost perOption fixed cost jobRent $1,050.00 $210.00 Lease $3,150.00 $189.00Buy $7,350.00 $147.00Scott estimates that the revenue for each job will be, on average, $231.0.Calculate the break-even point for each capacity option.3. The following information relates to a project (in weeks).Task Preceding Tasks a m bA None 8 9 10B None 5 9 12C A 3 5 7D B 8 14 19E C,D 7 12 16F E 10 14 18G F 6 10 15a. Draw the network diagram.b. Calculate slack for each activity using either ES, EF or LS, LF.c. Based on the slack, determine the critical path and project duration.d. Calculate the variance of critical path.e. What is the projects completion time for which we are 95% sure of success?4. You have been hired as VP of Operations for a new venture. One of the immediate agenda for you isto develop overall strategy for your unit. Discuss strategic planning process you will use. How doesoperational performance measures can contribute to overall organizational strategy of costleadership, differentiation, or focus strategy?5. Discuss the four process strategy you can use for a new manufacturing operations you are going tohead.OrDiscuss at least five different techniques/approaches to integrate supply chain activities for enhancedperformance.MGMT 3306Operations and Supply Chain ManagementFall 2015Answer all.1. In 2013, Gibison’s Auto Repair invested in a computer diagnostic machine that reads codes on a car’scomputer, thereby shortening the time it takes to determine what is wrong with a car. Consider the figuresbelow:Year Sales ($000s) Labor costs ($000s) Machine costs ($000s)2010 $2,468 $987 $02011 $2,838 $1,192 $02012 $3,085 $1,172 $02013 $3,702 $1,074 $1502014 $4,072 $1,140 $1502015 $4,319 $1,166 $150a. Calculate the labor productivity for each of the six years. How much has labor productivity improvedsince the diagnostic machine was brought in?b. Calculate the multi-factor productivity score for each year, where the “input” is the total amount spent on labor and the diagnostic machine.Next, calculate the average multi-factor productivity score for years 2010 – 2012, and years 2013 – 2015. According to the results, was it worthwhile for Gibson to invest in the diagnostic machine? Why or why not?2. To earn money while he is in school, Scott has decided to clean carpets on the side. Scott caneither rent, lease, or buy the equipment. The costs associated with each of the three capacityoptions are shown below:VariableYearly cost perOption fixed cost jobRent $1,050.00 $210.00 Lease $3,150.00 $189.00Buy $7,350.00 $147.00Scott estimates that the revenue for each job will be, on average, $231.0.Calculate the break-even point for each capacity option.3. The following information relates to a project (in weeks).Task Preceding Tasks a m bA None 8 9 10B None 5 9 12C A 3 5 7D B 8 14 19E C,D 7 12 16F E 10 14 18G F 6 10 15a. Draw the network diagram.b. Calculate slack for each activity using either ES, EF or LS, LF.c. Based on the slack, determine the critical path and project duration.d. Calculate the variance of critical path.e. What is the projects completion time for which we are 95% sure of success?4. You have been hired as VP of Operations for a new venture. One of the immediate agenda for you isto develop overall strategy for your unit. Discuss strategic planning process you will use. How doesoperational performance measures can contribute to overall organizational strategy of costleadership, differentiation, or focus strategy?5. Discuss the four process strategy you can use for a new manufacturing operations you are going tohead.OrDiscuss at least five different techniques/approaches to integrate supply chain activities for enhancedperformance.
