OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 2, Problem 14PA
Summary Introduction
Interpretation:The measures of performance against which the organizations applying for the Baldrige award are assessed.
Concept Introduction:In 1987, the United States congress established the Malcom Baldrige National Quality Award in raising awareness on management of quality within organizations in the U.S.A. Companies that have successfully implemented systems of
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2a. Complete the following Make or Buy Analysis.
Make or Buy Analysis
Food Cost
Processed chopped lettuce
• $23.80/case of 4, 5 lb. bags
• Price/lb
Whole head lettuce
$16.49/50 lb case
• Price/lb AP
• 75% yield on whole head lettuce
• Price/lb EP
Labor Cost
Processed chopped lettuce
⚫ No labor cost
Whole head lettuce
• Cooks are paid $10.85/hr with 20% benefits
• It takes 2 hours to process 50 lbs. of lettuce
• Benefits
• Cook labor cost with benefits
• Total labor cost for 1 lb. lettuce
analysis needs to address the following issues:
The battery temperatures are a major concern for us. Can you analyze and describe the sample data? What are the average and median temperatures? How much variability is there in the temperatures? Is there anything that stands out?
Our engineers’ assumption is that the temperature data is normally distributed. If that is the case, what would be the likelihood that the Safety Zone temperature will exceed 5.15 degrees? What is the probability that the Safety Zone temperature will be less than 4.65 degrees?
What is the actual percentage of samples that exceed 5.25 degrees or are less than 4.75 degrees?
Is the manufacturing process producing units with stable Safety Zone temperatures? Can you check if there are any apparent changes in the temperature pattern? Are there any outliers? A closer look at the Z-scores should help you in this regard.
Factor Factor Description
Weight
Present Location Newbury
Hyde Park
1
Average community income
0.35
2
Community growth potential
0.15
3
Availability of public transportation
0.20
4
Labor availability, attitude, and cost
0.30
3 2 3 2
35
20
25
75
33 28
55
55
25
75
65
50
50
55
Chapter 2 Solutions
OM (with OM Online, 1 term (6 months) Printed Access Card)
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