Case summary:
FL Company produces potato chips. The firm has 38 plants around the U Country and over 48,000 employees are working for the firm. The company focuses more on the firm operations, from product designing, meeting changing consumer preferences, adjusting changing consumers’ costs,
FL Company quality inspection begins at the farm in procuring potatoes and continues with the inspection till the final product is packed and dispatched to the market. FL Company would make sure that they have a proper product mix, effective maintenance and quality inspection has to be done.
To determine: How the operation management decisions for service companies such as HR Cafe differ from FL Company’s operations decision.
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Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
- Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?arrow_forwardScenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.arrow_forwardScenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?arrow_forward
- A decision table simplifies the process of associating conditions with actions in operations management.explain?arrow_forward4. What is meant by the expressions order winners and order qualifiers? What was the order winner(s) for your last purchase of a product or service?arrow_forwardWhat is your opinion of DMParrow_forward
- Describe which are the 3 principles concerning process strategy are particularly important?arrow_forwardMultiple choice: When should product strategy focus on forecasting capacity requirements? A. at the introduction stage of the product life cycle 5. B. at the growth stage of the product life cycle C. at the maturity stage of the product life cycle D. at the decline stage of the product life cycle E. none of the above 6. Which of the following industries is likely to have low equipment utilization? A. restaurants B. commercial baking C. television manufacturing D. chemical processing E. auto manufacturing Which of the following statements is true? 7. A. Almost all services and almost all goods are a mixture of a service and a tangible product. B. A pure good has no tangible product componer C. A pure service has only a tangible product component. D. There is no such thing as a pure good. E. None of the above is a true statement.arrow_forward3. What is benchmarking?arrow_forward
- 2. How would a hospital use each of the three OM planning strategies to improve its operations ?arrow_forward1.What is operating philosophy in traditional culture (face to face classes) and Quality Culture (modular/online classes)? 2.What is objectives of traditional culture(face to face classes) and Quality Culture (modular/online classes)? 3.What is management approach in traditional culture (face to face classes) and Quality Culture (modular/online classes)? 4.what is Attitude towards customers (teacher- student attitude) in traditional culture (face to face classes) and Quality Culture (modular/online classes)? 5.Problem solving approach in traditional culture (face to face classes) and Quality Culture (modular/online classes)? 6.Supplier relationship (teacher-student relationship) in traditional culture (face to face classes) and Quality Culture (modular/online classes)? 7. Performance improvement approach (students output) in traditional culture (face to face classes) and Quality Culture (modular/online classes)?arrow_forwardCarpet City recorded the following data on carpet installa-tions over the past week. Use the data to calculate the average rate (in yards per hour) at which carpet can be installed. Installation 1 2 3Square yards 1225 1435 2500No. of workers 4 3 5No. of hours per worker 3 5 6arrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning