BUAD 311 practice problem solutions

Practice #1
Process Analysis and Capacity Management
BUAD311 – Operations Management
1. Dello is a world-class PC company. Management believes that they understand their products and customers better than any outsourcing company; therefore Dello should provide customer service in-house. Ideally, Dello’s customer service department wants to handle all the customer phone calls. During peak hours, however, Dello receives so many customer calls that they ask an outsourcing company, Telemate, to help handle incoming calls. Dello’s switchboard system is programmed in the following way; A customer calls Dello at its 1-800 number. If there are 14 or less callers in the system waiting to speak with one of the customer service representatives, then the call stays within Dello’s system and the customer inquiry will be answered by a Dello customer service representative. If, on the other hand, there are 15 or more calls waiting within Dello’s system, then the incoming call is forwarded to the outsourcer Telemate, and the call will be answered by a Telemate agent. Draw the process flowchart for Dello’s customer service call handling process.
2. Getaway is another computer company known for mass customization. Its secret is to always maintain an inventory of base models, and to offer its customers add-on options. The process is as follows:
The first step is receiving the order. After receiving an order, the order is checked for add-ons. If needed, add-ons are added to the base model. (Note that base models are held in inventory). Then the computer is packed, and finally shipped. Draw a process flow diagram for the above process.
If you want to be stricter, you can have triangles for add-on parts inventory and work-in-process between packing and shipping.3. Kate is managing his company’s production facility. Consider the following production process. Note: some triangles may be intentionally omitted.
Raw materials go…