WWW.YAZDANPRESS.COM WWW.YAZDANPRESS.COM 132 PART 2 DESIGNING AND MANAGING PROCESSES floor to the first-floor view boxes in the emergency room c. Classroom without having to send a runner. More than 90 percent of d. Product designers’ office the estimated 30 billion health transactions each year are conducted by telephone, fax, or mail. To what extent, and e. Law firm how, can information technology improve productivity and 7. Consider this sign seen in a local restaurant: “To-go or- quality for such processes? Remember that some doctors ders do NOT include complimentary chips and salsa. If are not ready to give up their pads and pencils, and many you have any questions, see our management, NOT our hospitals have strong lines drawn around its departments, employees.” What impact does this message have on its such as pharmacy, cardiology, radiology, and pediatrics. employees, their service processes, and customer satis- 5. What processes at manufacturing firms are really service faction? Contrast this approach with the one taken by a processes that involve considerable customer contact? five-star restaurant. Are the differences primarily due to Can customer contact be high, even if the process only different competitive priorities? has internal customers? 8. Select one of the three processes shown in the 6. Performance criteria important in creating a layout can MyOMLab’s video for King Soopers (bread, pastry, or go well beyond communication and materials handling. custom cakes). What kind of transformation process, Identify the types of layout performance criteria that process choice, and inventory strategy are involved? Is might be most important in the following settings. the process properly aligned? Explain. a. Airport b. Bank Problems The OM Explorer and POM for Windows software is available distance (the current distance from inspection to ship- to all students using the 10th edition of this textbook. Go to ping and receiving is three units) to calculate the change www.pearsonglobaleditions.com/krajewski to download in the weighted distance, wd, score if Baker exchanges the these computer packages. If you purchased MyOMLab, you locations of the tool crib and inspection. also have access to Active Models software and significant help in doing the following problems. Check with your instructor CLOSENESS MATRIX on how best to use these resources. In many cases, the instruc- Trips Between Departments tor wants you to understand how to do the calculations by hand. At the least, the software provides a check on your cal- Department 1 2 3 4 5 6 culations. When calculations are particularly complex and the 1. Burr and grind — 8 3 10 6 goal is interpreting the results in making decision, the software entirely replaces the manual calculations. 2. Numerically controlled (NC) — 2 Problems 1 and 2 apply break-even analysis (discussed in equipment Supplement A, “Decision Making Models”) to process decisions. 3. Shipping and receiving — 9 10 1. Two different manufacturing processes are being considered for making a new product. The first process is less capital- 4. Lathes and drills — 3 intensive, with fixed costs of only $50,000 per year and 5. Tool crib — 4 variable costs of $700 per unit. The second process has fixed costs of $400,000, but has variable costs of only $200 per unit. 6. Inspection — a. What is the break-even quantity, beyond which the second process becomes more attractive than the first? 3 4 2 b. If the expected annual sales for the product is 800 units, which process would you choose? 2. Dr. Gulakowicz is an orthodontist. She estimates that 1 5 6 adding two new chairs will increase fixed costs by FIGURE 3.13 $147,000, including the annual equivalent cost of the Current Layout capital investment and the salary of one more technician. Each new patient is expected to bring in $3,919 per year 4. Baker Machine (see Problem 3) is considering two alterna- in additional revenue, with variable costs estimated at tive layouts. Compare the wd scores using rectilinear dis- $1,030 per patient. The two new chairs will allow tance of the following two block plans to determine which Dr. Gulakowicz to expand her practice by as many as alternative layout is better. 195 patients annually. How many patients would have to be added for the new process to break even? 3 6 4 3. Baker Machine Company is a job shop that specializes in precision parts for firms in the aerospace industry. Figure 3.13 shows the current block plan for the key manufacturing centers of the 75,000-square-foot facility. 5 1 2 FIGURE 3.13(a) Refer to the following closeness matrix and use rectilinear Alternative Layout 1 COM WWW. From statistical samplings over the past three months.15 B C D Available Space 7. 4.14(c) E — 105 Alternative Layout 3 F — . The following closeness matrix indicates the ex- pected number of contacts per day between professors. The distance between offices 1 and 2 (and between offices 1 and 3) is 1 unit. 5 6 FIGURE 3. Assume equal-sized offices.14 4 5 6 1 2 Conway Consulting’s Block Plan Evaluate the wd scores of the following three alternative 3 4 layouts. and 5. to minimize the total weighted- distance score (assuming rectilinear distance)? 1 2 3 b. The block plan in Figure 3. whereas the distance between offices 5. Garber developed the following closeness matrix for daily C B D trips between the department’s offices. The head of the information systems group at Conway Con. Because of their academic positions. and deter- mine which is best. What is the weighted-distance score of your solution? FIGURE 3.14 shows the available office locations (1–6) for the six analysts (A–F). Contacts Between Professors Assume equal-sized offices and rectilinear distance.YAZDANPRESS. Richard Garber is the head designer for Matthews and A E F Novak Design Company.13(b) 6. The available office spaces (1–6) for the six faculty mem- 5 6 2 bers are shown in Figure 3. The department of engineering at a university in New 3 1 4 Alternative Layout 2 Jersey must assign six faculty members to their new of- fices.14(a) Alternative Layout 1 design the layout for a newly constructed office building. again assuming rectilinear distance.WWW. CLOSENESS MATRIX A F E Trips Between Departments FIGURE 3. sulting must assign six new analysts to offices.15. Garber has been called in to FIGURE 3. Professor A B C D E F CLOSENESS MATRIX A — 4 Contacts Between Analysts B — 12 10 Analyst A B C D E F C — 2 7 Analyst A — 6 D — 4 Analyst B — 12 E — Analyst C — 2 7 F — Analyst D — 4 a. Professor A must Analyst E — be assigned to office 1.COM DEVELOPING A PROCESS STRATEGY CHAPTER 3 133 FIGURE 3.14(b) Alternative Layout 2 Department A B C D E F A — 25 90 185 F B D B — 105 C — 125 125 D — 25 A C E FIGURE 3.YAZDANPRESS. The following closeness matrix shows the expected frequency of contact CLOSENESS MATRIX between analysts. Analyst F — Which faculty members should be assigned to offices 3. 1 and 4 is 2 units. Professor C must be assigned to office 2. and Professor D must be assigned to office 6. respectively. 1 . Develop a better layout.17. A firm with four departments has the following closeness matrix and the current block plan shown in Figure 3. What is its total weighted- layout (assuming rectilinear distance)? distance score? Active Model Exercise This Active Model for Example 3.17 Current Block Plan 8. If the swap does not help. FIGURE 3. If other factors are equal.1 appears in MyOMLab. If the swap cost? helps.YAZDANPRESS. What is the current total weighted-distance score? the swap button once again to put the departments back.WWW. What space as- QUESTIONS signments lead to the minimum cost? What is this 1. What is the total weighted-distance score for this plan based on rectilinear distance and assuming A B that offices A and B are three units of distance apart? c. 2. and use the yellow-shaded column to put departments in spaces. a. Use the swap button one swap at a time. Use the explicit enumeration method of the POM for Windows software to find the block plan that minimize C D the total weighted-distance score.16 shows an alternative layout for the depart- ment.YAZDANPRESS.16 Alternative Block Plan B — 20 6 C — 0 a. What is the weighted-distance score for the current b.COM 134 PART 2 DESIGNING AND MANAGING PROCESSES CLOSENESS MATRIX C F A Trips Between Departments Department A B C D B E D A — 12 10 8 FIGURE 3. move to the next pair. hit 3. Figure 3.COM WWW. Layout Using Data from Example 3. It What is the minimum weighted-distance score after all allows you to see the effects of performing paired swaps of swaps have been tried? departments. Look at the two data tables. which two offices should be D — located closest together? b.