Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Instructor Manual
Chapter 15: Operations, Quality, and Productivity
Work Application Sample Answers
Most of the answers are actual student answers or based on student answers. You may give these
answers as part of your lecture before, after, or in place of getting student answers.
15-1. Is your present or past organization concerned about time-based competition? If so,
what functional areas are primarily responsible for speed?
I work for Domino’s Pizza, which is concerned about time-based competition. Both the pizza
15-2. Using Exhibit 15-2, identify the operations system where you work or have worked
based on product tangibility, customer involvement, flexibility, and resources.
I work for Sears.
15-3. List the product mix for an organization for which you work or have worked. Be sure
to identify the number of major product lines, the number of products within one of the
major lines offered, and the mixture of goods and services within that one major line.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
I work at McDonald’s. There are eight different major product lines at McDonald’s:
15-4. Identify the facility layout used where you work or have worked. Draw the physical
arrangement of the facilities.
I worked at a pharmacy, which used a process layout with three aisles. When you walked in
15-5. Identify which priority scheduling method(s) the organization for which you work
or have worked uses.
15-6. Give an example of a project in an organization for which you work or have worked
that is suitable for scheduling using the planning sheet.
The Mail Box store taught me how to prepare mass mailings that would go out in bulk mail.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
15-7. Give an example of a project in an organization for which you work or have worked
that would be appropriate to schedule using a Gantt chart.
I was an intern at Springfield Marketing Services. On a wall in the office was a giant Gantt
15-8. Give an example of a project in an organization for which you work or have worked
that would be appropriate to schedule using a PERT network.
15-9. Identify the type of inventory and how it is controlled where you work or have
worked.
I worked at a company that manufactured boxes. We used pulp raw material that the
15-10. Explain quality control in an organization where you work or have worked.
I worked as an auto mechanic. The service manager would assign cars to be repaired. When
15-11. Are any of the gurus’ quality contributions used where you work or have worked?
Explain how.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
I work for a Ford auto dealership. “Quality Is Job One” signs are on the walls. We are
Review Question Answers
15-1. What does the operations department do?
15-2. Is the level of customer involvement highest with make–to-stock, assemble-to-order,
or make-to-order operations?
15-3. Which type of process operations is the most flexible? Least flexible?
15-4. Which type of process operation is most commonly used by retailers and service
organizations?
15-5. Are services generally more capital or labor intensive than manufacturing? Why?
15-6. Why is it important to balance time-based competition and design?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
While companies need to increase innovation and speed products to market, they also need to
15-7. Which two facility layouts are the most flexible? Which two layouts are the least
flexible?
15-8. Why is capacity planning so important?
15-9. Why is scheduling important?
Scheduling is the process of listing activities that must be performed to accomplish an
15-10. What does a Gantt chart show that a planning sheet and PERT network don’t
show?
The Gantt chart has an advantage over the planning sheet in that it places progress toward the
15-11. When would you use a PERT network rather than a Gantt chart?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
15-12. What are the four types of inventory?
15-13. What does materials requirement planning integrate?
15-14. What is the relationship between inventory and quality control?
15-15. What are the five rules of customer relations?
The five rules of customer relations are:
15-16. Why should you measure productivity rather than just production?
If you measure only output production and it increases, you can be fooled into thinking you
Communication Skills Answers
15-1. Why are some companies (such as Apple) innovative when it comes to changing
products and processes, while others (such as Eastman Kodak) are slow to innovate and
change?
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
15-2. Can a standard make-to-stock product (such as soda) also be made to order? If so,
how?
Yes. It is being done now by changing repetitive-process operations outputs to batch-process
15-3. Is the trend towards broader product mix with unrelated diversification? Why or
why not?
No. The general trend is to keep the product mix to related diversification. The major reason
15-4. Think about your career and the ideal job you are planning to obtain. Use Exhibit 15-
2 to classify the operations systems and Exhibit 15-4 to identify the facility layout where
you will work.
15-5. Assume you are planning a major event or project, such as a big wedding. (If you
have an actual future event or project, use it rather than selecting an assumed event.)
Would you use the planning sheet, Gantt chart, or PERT to plan and control the event?
Why? Identify the major things that you need to plan for and make, and put them on
the actual form using either Exhibit 15-5, 15-6, or 15-7 as a guide.
15-6. Many companies are now using radio-frequency identification (RFID) technology.
RFID is revolutionary and is helping businesses improve supply chain management.
However, critics are concerned about protecting people’s privacy. For example, with
RFID, businesses will better know consumers’ shopping habits and purchases. Do you
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
want businesses to know where you live and the products you have in your house?
Explain.
15-7. What is your view of the quality of products you have purchased over the past year
compared to previous years? Did you have to return and exchange products or have them
repaired? Do you think that quality is getting better with time?
15-8. The balanced scorecard (BSC) calls for measuring performance in four areas. If a
business is making good profits, should it bother with the other three non-financing
measures? Why or why not?
Yes. Customer service performance, internal business performance, and learning and growth
Applying the Concept Answers
Applying the Concept 15-1: Level of Customer Involvement
Identify each product by its level of customer involvement.
A. Make-to-stock
B. Assemble-to-order
C. Make-to-order
1. Chocolate cream in a sugar cone at Helen’s Homemade Ice Cream.
B. Assemble-to-order. An ice cream cone is a standard product. The ice cream in a sugar cone is a
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
2. TheaterSeat Store chairs with subwoofer speakers.
3. UPS delivers a package from Walmart to a customer.
4. A Dell laptop at a Best Buy store.
A. Make-to-stock. The smartphone is a standard product. The customer has a low level of
involvement because he or she either takes the product as is or doesn’t buy it.
5. A message at Cannon Ranch Resort & Spa.
6. A bag of Smart Food popcorn by Frito-Lay.
A. Make-to-stock. Snack foods are standardize prepackaged items.
Applying the Concept 15-2: Flexibility of Operations
Identify the operations system that would be used to produce each product.
A. Continuous Process Operations
7. A Maytag washing machine built in the United States.
B. RPO. Appliances are commonly made on an assembly line.
8. A swimming pool installed by Teddy Bear Pools.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
9. The asphalt delivered for the driveway at a new house.
A. CPO. Hot top is not delivered in discrete units, it continuously flows until you fill the driveway.
10. Packages of Kirland white, whole wheat, and rye breads.
11. The new library replacement Learning Commons built at Springfield College.
E. PPO. Project process operations are used in the construction industry
Applying the Concept 15-3: Facility Layout
Identify the facility layout that would be used to produce each product.
12. A man walks into a Target store to buy some t-shirts.
B. Process. Commonly used in retail. The man would go directly to the men’s department.
13. Meals being made at TGF restaurant.
14. A Camaro car being built in a GM plant.
A. Product. Most traditional automotive plants use repetitive-process operations in which the
automobiles are made on an assembly line.
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
Applying the Concept 15-4: Scheduling Tools
Select the most appropriate scheduling tool for each situation.
A. Planning sheet
B. Gantt chart
C. PERT network
17. You want a tool to schedule the making of five products on three different types of
machines.
B. Gantt chart. Gantt charts can show the progress of multiple products.
20. You want to use a tool to develop procedures for opening and closing the retail store.
A. Planning sheet. Planning sheets are good for developing procedures.
21. You want to use a tool to schedule training classes in different rooms.
B. Gantt chart. Gantt charts are good for allocating room resources to courses so you can see at a
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
23. January: outputs of 6,200, inputs of $9,000
______ ratio, ______%, increase/decrease of ______%
.69:1 ratio, 69%, increase/decrease of 2.99%
26. April: outputs of 6,300, inputs of $8,800
______ ratio, ______%, increase/decrease of ______%
.72:1 ratio, 72%, increase/decrease of 7.46%
Join the Discussion
Join the Discussion 15-1: Factory Conditions
Many companies in the past, including Gap, have been criticized for not monitoring factory
conditions. To address the criticism, the firm set standards for its manufacturers and developed a
thorough factory inspecting system. Gap’s vendor compliance officers inspect factories around
the world and check compliance with Gap factory standards. These standards include suppliers
Instructor Resource
Lussier, Management Fundamentals 8e
SAGE Publishing, 2019
not employing anyone under the age of 14 and factories not permitting physical or nonphysical
abuse. Gap will terminate its business relationship or require the factory to implement a
corrective action plan if this code is violated. In fact, since 2003, Gap has closed some 200
factories due to persistent or severe violations of standards.
1. Is it ethical and socially responsible for Gap to revoke contracts, causing poor workers to
lose their jobs?
2. Is it ethical and socially responsible to Gap’s stockholders to pay higher labor costs than
necessary, thus possibly reducing profits and their dividends?
Join the Discussion 15-2: Social Accountability International
Social Accountability International (SAI; www.sa-intl.org) is a U.S.-based nonprofit
organization dedicated to the development, implementation, and oversight of voluntary verifiable
social accountability standards. SAI works to improve workplaces and combat sweatshops
through the expansion and further development of the current international workplace standards.
SAI gets key stakeholders to develop consensus-based voluntary standards and promotes
understanding and implementation of standards worldwide. Like ISO 9000 certification, SA8000
certification verifies compliance of qualified organizations with international workplace
standards.
1. Should global multinationals eliminate sweatshops by having SA8000-certified facilities?
2. Should global multinationals require all their suppliers to get SA8000 certification?
3. How might working toward SA8000 certification affect cost, revenues, and profits?