Running head: Project 2 (Weeks 3 & 4) Essay Questions

Weeks 3 & 4 Essay Questions

SCMG 201 – Principles of Supply Chain Management

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Chapter 3: Network and Systems Design (Questions 1 through 5)

Question 1: There are two views for how to manage processes across a supply chain.

Research these two views both in your textbook and on the internet and then describe each

view, the primary focus, the advantages and disadvantages of both, and find an example of

each on the internet. DO NOT copy or paraphrase your textbook, use your own words in

defining these two views.

The two views on how to accomplish the supply chain procedures include transactional

and relationship views. A transactional view is a process of creating a supply chain process the

best it may be for a firm based on its requirements. A relationship view is a procedure of creating

relationships with the firm's departments, clients and suppliers. The transactional view's key

focus is looking at the process and enhancing changes required for things to run efficiently

through the supply chain. A main focus of the relationship view is building relationships through

the suppliers and supply chain. The advantage of a transactional view is that it’s applied to make

the process more effective. The advantages of the relationship view include building long-term

based relationships in a firm and suppliers that may be applied afterwards to work on the new

plans.

Question 2: Assume a retail harbor can process 28,000 containers from cargo freight ships

per day, under maximum conditions, using overtime hours. The harbor offloading facility

was designed to process 22,000 containers per day under normal conditions. During the

month of July, the harbor facility processed 19,000 containers per day. Calculate the

harbor’s ability to offload containers for both design and effective capacity. Show the

formulas and the steps using Microsoft Office’s “Insert Equation” function.

Design Capacity (DC) 19000

22000𝑥100 = 86.36%

Effective Capacity (EC) 19000

28000𝑥100 = 67.86%

Question 3: Using the Word “Smart Art Function” create three separate illustrations for

the evolution of supply chain integration for Material Flow where organizational functions

are (a) independent, (b) integrated within the organization, and (c) integrated across the

supply chain.

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Question 4: Explain the “Modular Method” for Enterprise Resource Planning. Pay close

attention to the advantages and disadvantages. Research online and find two expert

resource for the modular method, summarize them and provide a hyperlink to the resource

on modular enterprise research planning. Do not use a software company or any other

“Ad” for a product. A good place to start is in Google using key words found in this

question.

ERP modular technique is when the firm only buys the required parts of a database

system to run out of a firm's supply chain network. This may save the firms money by

purchasing what it requires and not a complete system.

Smartsheet is my 1st expert resource. These are companies that bring into line individuals

and the technology so that business may move efficiently. The company’s website provides an

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in-depth description of what ERP is, how the process of ERP works, disadvantages and

advantages of ERP, the leading ERP sellers, ERP software businesses examples, a checklist to

find if the firm is ERP ready. Individuals may establish what they require through the online help

to build up their ERP system.

Select Hub is my second resource that gathers data, examine the software products and

the platforms consulting with the firms on what they require in the software-based programs.

Select Hub website offers information on what ERP is, it’s way of functioning, the form of

software products present and what the firms may apply them. They similarly provide what an

individual requires to conform to the industry and controlling standards. They have a staff that

help individuals with what they require to figure out and what one requires in the ERP based

system.

Question 5: Papi Toys can produce 500 toys in a single day under maximum conditions.

However, it is designed to produce 400 units per day under normal conditions. In

February, it produced 480 units per day. What was Papi Toys’ capacity utilization for both

design and effective capacity? What do these numbers tell you? (Sanders, Nada R. Supply

Chain Management, 2nd Edition. Wiley, 2017-09-18. VitalBook file)

Capacity utilization is the extent at which a nation or firm employs its fit

productive capacity. The rate of capacity utilization can be calculated by multiplying the Actual

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output by Maximum possible output*100 (Yu & Shen 2020). Following the provided book, the

capacity utilization of the design and effective capacity can be denoted by:

Design Capacity (D.C) = 120%

Effective Capacity (E.C) = 96%

The numbers reveal that Papi’s Toys is working beyond the usual conditions, though not

equipped to uphold such high capacity for a longer time.

Chapter 5: Operations Management (Questions 6 through 10)

Question 6: Explain the unique challenges to operations that manufacturing and service

organizations each face. When explaining these challenges use a company of your choice

for each (service and manufacturing) to explain these differences and how, if managed

poorly, the impact could destroy the company.

The service company I am using to explain exceptional challenges is Uber. Uber

is a ride-sharing firm that connects the passengers with the drivers. Some of the challenges Uber

faces may include states looking at the passing laws stating Uber should treat the drivers as their

workforces rather than autonomous contractors. Uber upholds that it is firmly a “Technology

company” to connect drivers with the riders. Another challenge is tax. If Uber is an employer-

employee firm and not a technology firm, the states and cities will make the company pay taxes.

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Some nations and even the airports have barred Uber from being used in their areas. Finally,

Uber has issues with driver and passenger protection and safety. According to my perception, if

Uber does not adhere to the local city's laws and state, afford better safety for the passengers and

drivers and provide improved wages for the drivers, the firm would start losing the drivers to the

rest of the companies Lyft.

The Manufacturing firm I am using to clarify unique challenges is Procter & Gamble (P

and G). P and G are among the leading firms in the global customer goods market. P&G's

challenges are: first, imitable products because numerous products similar to other firms may be

vulnerable to imitation. The second challenge is limited Online presence, P&Gs website limits

the firm's online market since it is mostly just available in the US. If P&G does not expand

outside the US, then as a result of the rapid growth of the rest of the firms providing similar

products, this firm would start seeing a decline in sales. By opening up a larger base, this firm

would lower product prices to attract more customers.

Question 7: In your own words, explain the Product Design Process. Use an example of

your choosing to illustrate the process of product design.

The process of product design is when a firm creates a phase for a new product to sell to

the customers. Toyota company has a 13-step procedure for its system. First, they begin client-

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defined ideals to separate the value from waste, secondly, they frontload the product

development to reduce design space exploring the alternatives, thirdly, they develop the flow of

the process. On the fourth process step, they apply standardization to minimize variations, fifth,

they develop a chief engineer system to take part in development from beginning to end, sixth,

they organize to balance functional expertise, seventh step, they develop the towering technical

skill in all their engineers. Eighth, they fully join in the suppliers to the system of product

development. Ninth, they build in learning and constant improvement. Tenth, they build a culture

to support excellence. In the eleventh procedural step, the firm adapts technology to fit the

employees. Twelfth, they align the firm and lastly, use the tools for standardization and

administrative learning. In completing all of the denoted steps, this firm still uses the process in

inventing their truck and the car designs keeping up with the competitors.

Question 8: Music Inc. has been selling music DVDs for 10 years and now wants to enter

the Movie DVD business. They have entered a deal with paramount pictures to sell on

DVD all of their future and past movies. The accounting department has estimated the cost

of the DVD, Packaging, and Copyright fees for each DVD to be $5.00. The fixed cost for

machinery, buildings & grounds, and overhead to be $30,000 per year. If Music Inc. sells

each DVD for $20.00, how many DVDs must they sell to break even? Next, if Music Inc.

sells 18,000 DVDs per year at a price of $20.00 what is their profit? Finally, if Music Inc.

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instead decides to lower the selling price per DVD by 10% ($18.00) and projects they will

sells 10% more in that year (19,800), what is their profit? What conclusion can you draw

about lowering prices in the market by 10% (hint – how many more units must be sold to

recover the profit lost from selling at a 10% lower price)?

$30,000/ ($20-%5) = 2000 DVDs in order to break the even

(($20-$5) *18,000)-$30,000= $240,000 total profits

(($20-$5) *19,800)-$30,000= $227,400 total profits

Although they vended 1,800 extra units at $18, the firm still had lesser profit by $12,600. To

recover profit the firm would require to vend 970 more units to get similar profit as earlier.

Question 9: Pizza Field Trip Exercise: Observe and then define in detail the process design

for creating a Pizza in a “make to order” pizza house of your choice. Allow for different

sizes and toppings. (Note: Feel free to pose this to your family as a mandatory fieldtrip 😊)

With my family, we went to the local go-to pizzeria, Mario’s of New York. This

particular family running the pizzeria hails from New York City. The menu they use is small

since the firm imports all the ingredients from New York. They like one to get the full effect of

the New York-style pizza down into ingredients. In ordering, we, at all times, get at least two

pizzas since my two kids just like cheese pizza. With my eldest son, we always get meat pizza or

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supreme style pizza. Together with the pizza, they also have Stromboli’s, salads and calzones.

They similarly have fresh Tiramisu they make every day. In making an order, we relax and wait

whereas listening to music. The procedure is that they usually roll out dough, place sauce and the

cheese on them and all other toppings, and once pizzas are put composed, they go to a brick oven

to be baked for almost 12 minutes; the chef cuts the pizza into eight slices and places them on

pizza sheet and are brought to the table. Then we enjoy fresh out of oven pizza and dessert.

Question 10: Discuss in detail the four types of Facility layouts. Explain the differences,

applications, and advantages and disadvantages.

The four forms of the facility layouts include Fixed Position, Process, Product and

Cellular Layouts.

The fixed Position layouts are applied when the product may not be moved during the

production due to size or is very difficult to move after it is finished. For instance, the Aircraft

carrier. A key advantage is that this particular Layout was formed definitely for the type of end

products. A disadvantage is in-depth planning and lacks enough proper space to build the

products (Zhu, Balakrishnan & Cheng 2018).

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Process Layout is when the facility is used for numerous products with diverse process

requirements. The key purpose is to enable using the facility for many items while saving time,

cost. Some disadvantages include equipment use, specialized tools that cannot be applied that

frequently and always changing the schedules to juggle Layout.

Product Layout involves when a facility uses an assembly line form layout to form a

product. This particular Layout produces large sizes of the product. A key advantage is that the

large quantity of product might be mass formed in a short time. The key disadvantage is the

system protection. The risk from the equipment downtime and breakdown because of

maintenance.

Cellular Layout is a layout where the machines are gathered according to the process

wants for the same products. This particular Layout's key advantages include cost as it affords

for fast time processing, and the flexibility allows the creation of small batches.

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References

Yu, B., & Shen, C. (2020). Environmental regulation and industrial capacity utilization: An

empirical study of China. Journal of Cleaner Production, 246, 118986. Retrieved from

https://www.sciencedirect.com/science/article/abs/pii/S0959652619338569

Zhu, T., Balakrishnan, J., & Cheng, C. H. (2018). Recent advances in dynamic facility layout

research. INFOR: Information Systems and Operational Research, 56(4), 428-456.