OPERATIONS MANAGEMENT

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Q1. A company has asked YOU to evaluate the firm’s productivity by comparing this year’s performance with last year’s. The following data are available: ______________Last Year This Year OUTPUT 10 500 units 12 100 units Labour Hours 12 000 13 200 Utilities 7 600 MU 8 250 MU Capital 83 000 MU 88 000 MU Has the company improved its PRODUCTIVITY during the past year?

Q2. A firm cleans chemical tank cars in the Bay Gazimagusa area. With standard equipment, the firm typically cleaned 60 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 6 hours a day. The company decided to switch to a larger cleaning machine. Last February, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and two employees worked 6 hours a day. a. What was their productivity with the standard equipment? b. What is their productivity with the larger machine? c. What is the change in productivity?

Q3. Is there a difference between forecasting demand and forecasting sales?

Q4. Describe briefly the steps to develop a forecasting system.

Q5. What are the major decision areas in P/OM?

Q6. List four basic operations strategies.

Q7. Explain the difference between total and partial productivity.

Q8. What is continuous improvement (CI)? What are the major tools for this philosophy?