Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
9th Edition
ISBN: 9781119371618
Author: Roberta S. Russell
Publisher: Wiley (WileyPLUS Products)
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Chapter 15, Problem 1.3CP
Just ERP
Just Sofas (JS) had begun the year full of promise with a new facility, restructured manufacturing process, and high hopes for its new ERP system. Most of the domestic furniture manufacturers had long since gone overseas, but JS believed being close to the customer gave it a competitive edge. The workers had rallied behind President Ruffner’s idea of guaranteed four-day deliveries on customer orders. And for a while, the promo had worked. Then orders began pouring in and the
It was for just such a case that Ruffner had sought out an ERP system—to automatically handle customer orders, factory schedules, and supply chain coordination as demand varied. Ruffner had carefully chosen the ERP software package used by all the large corporations he knew of, reasoning that if successful companies had chosen this vendor, who was he to choose otherwise? Implementation had proceeded carefully as well, one might say painstakingly slow, as the IT staff started with the finance module and worked down through sales and marketing, order fulfillment, production planning, MRP, capacity planning, and finally scheduling. Actually, the scheduling module was still having the kinks worked out and the bill of materials tile had not been updated to the current catalog offerings, but everything else seemed to be working tine.
Ruffner had included statements about the ERP system in his earnings reports for the past three quarters, noting that “productivity wanes as new IT system is being implemented,” “earnings down as company adjusts to new ordering system.” and “scheduling glitch causes backlog of customer orders.” For this quarter, he was trying to put a more positive spin on “only 5% of orders shipped on time due to incomplete jobs waiting for materials that were not ordered as they should have been.” He supposed a more innocuous “new scheduling system still not up to speed” would suffice. What Ruffner really wondered was if the company could survive another year like this one.
Does Ruffner understand the relationships between strategy and operations? Why or why not?
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1) Under “Costs of Quality”, costs associated with quality can be classified into four categories: appraisal, prevention, internal failures, and external failures. The costs of quality for Corley Motors Logistics is given in the table.
Cost Elements
Amount
Checking outbound boxes for errors
$31,000
Quality planning
$10,625
Downtime due to conveyor/computer problems
$342,125
Incoming product inspection
$21,000
Customer complaint rework
$33,000
Correcting erroneous orders before shipping
$36,550
Quality training of associates
$25,925
Correction of typographical errors--pick tickets
$11,475
a) Classify the quality cost elements given in the table into the different quality cost categories (prevention, appraisal, internal failure, external failure).
b) Total the quality costs in each of the different quality cost categories (prevention, appraisal, internal failure, external failure).
c) Using a) and b), suggest which areas…
Note: In chapter 9, section 9.4 of the Stevenson text, the costs of quality are covered; chapter 9 Stevenson lecture power point slide 7 touches upon this topic; see lecture video, 3.55 mins to 4.54 mins.
2) The production process at Hansa Ceylon Coffee fills boxes with dark arabica coffee. The data for the fill weight (in ounces) of eight samples are presented below. A sample size of six was used. The firm’s operations analyst wants to construct X-bar and R-charts to monitor the filling process.
Sample
Sample Mean
Sample Range
1
15.80
0.42
2
16.10
0.38
3
16.02
0.08
4
15.95
0.15
5
16.12
0.42
6
16.18
0.23
7
15.87
0.36
8
16.20
0.40
a) Calculate the upper and lower control limits for the X-bar chart.
b) Calculate the upper and lower control limits for the R chart.
c) Is the process under control? Why or why not?
Note: In chapter 10, section 10.3 of the Stevenson text, control charts for variables are…
Chapter 15 Solutions
Operations and Supply Chain Management, 9th Edition WileyPLUS Registration Card + Loose-leaf Print Companion
Ch. 15 - Describe a production environment in which MRP...Ch. 15 - Explain with an example the difference between...Ch. 15 - What are the objectives, inputs, and outputs of an...Ch. 15 - How is a master production schedule created, and...Ch. 15 - What is the purpose of phantom bills, K-bills, and...Ch. 15 - What type of information is included in the item...Ch. 15 - Describe cycle counting. How does it improve...Ch. 15 - Describe the MRP process, including netting,...Ch. 15 - What are the inputs to capacity requirements...Ch. 15 - Discuss several assumptions of MRP and how they...
Ch. 15 - Explain how MRP could be applied to (a) the...Ch. 15 - How does MRP differ from ERP? Find a description...Ch. 15 - What are the capabilities of customer relationship...Ch. 15 - What ate the capabilities of supply chain...Ch. 15 - What is PLM? How does it relate to other business...Ch. 15 - Describe how the ERP systems from two different...Ch. 15 - Discuss the scope of ERP and difficulties in...Ch. 15 - Referring to the product structure diagram for...Ch. 15 - Construct a multilevel bill of material for...Ch. 15 - The classic One-Step step stool shown in the next...Ch. 15 - Draw a product structure diagram from the...Ch. 15 - Product A is assembled from two units of S1 and...Ch. 15 - The popular Racer Scooter comes in a variety of...Ch. 15 - Draw a product structure diagram from the bill of...Ch. 15 - Prob. 8PCh. 15 - Use the product structure diagram for item X shown...Ch. 15 - Kids World sells outdoor play equipment for...Ch. 15 - Complete the following MRP matrix for item A:Ch. 15 - Complete the following MRP matrix for Item X....Ch. 15 - Complete the MRP matrix below, then answer the...Ch. 15 - Alpha Corp. (a spinoff of Alpha Beta) makes...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...Ch. 15 - Just ERP Just Sofas (JS) had begun the year full...
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