Operations Management

Chapter 03 Homework Assignment

Use this file in input your answers. Please include citations and any excel files with same name format as below.

Please name file Chapter 02 Homework Mission Statement and Productivity_yourlastname.doc

1. The owner Berry Pies, is contemplating adding a new line of pies, which will require leasing new equipment for a monthly payment of $7,000. Variable costs would be $3 per pie, and pies would retail for $8.00 each.

1. How many pies must be sold in order to break even?

1. What would the profit (loss) be if 1,300 pies are made and sold in a month?

1. How many pies must be sold to realize a profit of $4,500?

1. If 3,100 can be sold, and a profit target is $8,000, what price should be charged per pie?

2. Describe the stages of the product life cycle. What are the demand characteristics at each stage? (about one paragraph)

3. For your product (about one to two paragraphs):
   1. Discuss the stages of the life cycle for your product.
   2. At which stage is your product is in its life cycle.
   3. What do you think are the primary sources for idea development for your product and how important is the feedback loop in the Product Design Process for your product.

4. Mop and Broom Manufacturing estimates that it takes 10.0 hours for each broom to be produced, from raw materials to final product. An evaluation of the process reveals that the amount of time spent working on the product is 7 hours. Determine process velocity. Your answer should have five significant numbers. If you can, evaluate what this number means and or if you can’t please explain why.

5. Oakwood Outpatient Clinic is analyzing its operation in an effort to improve performance. The clinic estimates that a patient spends on average 1.25 hours at the facility. The amount of time the patient is in contact with staff (i.e., physicians, nurses, office staff, lab technicians) is estimated at 60 minutes. On average the facility sees 42 patients per day. Their standard has been 40 patients per day. Determine process velocity AND efficiency for the clinic. Mind you units. Your answer for PV should have three significant numbers. If you can, evaluate what the PV number means and or if you can’t please explain why. Also comment on the efficiency level of the Clinic.