Week 3 and 4

*********************** Week-3 *******************
W3 Assignment-1
Discussion Question 1
Since its release in 2001, the iPod has become a music player phenomenon.
In your opinion, how would the QFD approach have helped Apple in developing the iPod? What are the limitations of this approach?
Since its initial release, the iPod has gone through some major and minor product design changes. Many of the design updates were based on incrementalism, which is a frequent redesign throughout the product's life.
What are the pros and cons of updating the product design based on incrementalism? Besides the iPod, identify at least two products that use this approach for product design.
Justify your answers using examples and reasoning. Comment on the postings of at least two peers.
Discussion Question 4
Many production facilities often operate below available capacity. In your opinion, why would a production manager choose to keep a capacity cushion? Is it possible to have a negative capacity cushion? Why or why not?
As a manager, how would you tie your capacity decisions to the mission and strategy of your organization? How would forecasting affect your capacity decisions? What information would you require to make a capacity decision?
Justify your answers using examples and reasoning. Comment on the postings of at least two peers.

W3 Assignment 2: Decision Making
HYY Consulting is a new venture that develops and markets products offered for sale in the Second Life marketplace. The company is currently located in Philadelphia and employs 150 people. Due to strong growth, the company needs additional office space. The company has the option of leasing additional space at its current location in Philadelphia for the next two years and then moving to a new building. Another option is moving the entire operation to a small rural town immediately.
If the company chooses the first option and leases new space at its current location, at the end of two years it can either lease a new building in Philadelphia or move to a small rural town.
The following are some additional facts about the alternatives and the current situation:
• The company has a 75 percent chance of surviving the next two years.
• Leasing the new space for two years at the current location in Philadelphia would cost $750,000 per year.
• Moving the entire operation to a small rural town would cost $1 million. Leasing space in the small rural town would cost $500,000 per year.
• Moving to a new building in Philadelphia would cost $200,000 and leasing the new building space would cost $650,000 per year.
• The company can cancel the lease at any time.
• The company plans to build its own building in five years, if it survives.
Assuming all other costs and revenues are the same no matter where the company is located, what should HYY Consulting do? Should the company lease additional space at its current location in Philadelphia for the next two years and then move to a new building? Why or why not? Should the company move the entire operation to a small rural town immediately? Why or why not?
Submit your answers in a four- to five-page Microsoft Word document.

W3 Assignment 3: Final Project
Process Strategy
Define the product you will be offering at College Pretzel Company (CPC) in detail. Create any necessary documentation such as an engineering drawing or a bill of material for the product.
Identify the process strategy you will utilize at CPC and explain why this strategy is appropriate for your business. Create a process flow chart for CPC. Identify opportunities to improve the system and provide specific suggestions to make this improvement.
Based on the current system, answer the following questions:
• What is the current capacity—number of orders that can be completed in one night?
• How much time will it take to complete an order? How much available time do you have each day? What is your time utilization based on the above?
• If you charge $3 per 6 pretzels and fixed costs are $10 per day, what is your
break-even point in dollars?
Submit your answers in a three- to five-page Microsoft Word document.


******************* WEEK -4 *********************
W4 Assignment-1
Discussion Question 1
You are the owner of a U.S.-based bicycle manufacturing business. You currently manufacture bicycles in Seattle. Market demand for bicycles is expected to double in the next five years. Your sales in the United States are currently 100 percent. However, you hope to expand your business within the next two years. You are currently considering opening a new facility in China, Italy, or Mexico.
Where would you propose locating a new manufacturing facility? Why? How would you make this decision? Which critical success factors are most important in your analysis? What concerns would you have about expanding the business internationally versus within the United States? Why?
Justify your answers using examples and reasoning.

Discussion Question 4
There are many ways a firm can create value for its customers.
In what ways do you think the design of a firm's transportation network can affect its ability to create value for customers through efficiency, effectiveness, and differentiation? What factors can cause a firm to analyze the design of its network or reconsider the location of a particular facility? How?
Justify your answers using examples and reasoning.

W4 Assignment 2: Factory Location Problem
A manufacturer of circuit board parts has factories in a city at the location coordinates shown below. Each coordinate unit (roughly 100 feet) represents a city block. The yearly demand at each factory is also given.
Factory Demand X-Coordinate Y-Coordinate
Glen Mills 20,000 20 150
Media 7,000 55 45
Brandywine 5,000 80 90
Springfield 2,000 90 30
Management has decided to build a new factory to supply raw material to these factories. The location of the new factory should be central to the existing factories.
What should be the map coordinates of the new factory? Graph the locations of the four factories and the proposed raw material factory. Is the location of the proposed raw material factory where you expected it to be based on the coordinates of the other factories? Why or why not? What is the main contributing factor leading to the location of the proposed raw material factory?
Submit your answers in a Microsoft Excel sheet.

W4 Assignment 3: Final Project
Location Strategies
Discuss the critical success factors leading to your decision to locate the
College Pretzel Company (CPC) in your apartment. Include in your plan the key factors that will be important when you decide to expand CPC to other college campuses and the criteria you will use in identifying these potential locations.
Submit your answers in a three- to four-page Microsoft Word document