Assignment – 2
For
Operations
& Material Management
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Section A (20 Marks)
Write short notes
on any four of the following:
1.
Techniques of SQC
2.
Just in Time (JIT) Concept
3.
Price-Cost Analysis and Price
Negotiation
4.
The Purchasing Management Cycle
Section B (30 marks)
(Attempt any three)
1.
Focus on the application of
Gauges in Quality Control.
2.
What are the three Quality
Assurance Models?
3.
Signify the importance of
Materials Management to Business Management.
4.
Discuss the application of
Computers in Purchasing.
Section C (50 marks)
(Attempt all questions. Every question carries 10 marks)
Read the case “Creature Care Animal Clinic” and answer the following
questions.
Creature Care Animal Clinic
It has been three years since Dr.
Julia Barr opened Creature Care Animal Clinic, a suburban veterinary clinic.
Dr. Barr thought that by now she would be enjoying having her own practice. She
had spent many years in college and worked to save money in order to start a
business. Instead, she felt overwhelmed with business problems that were facing
the clinic. She thought to herself: “I don’t produce anything. I just provide a
service doing something I enjoy. How can this be so complicated?”
Company Background
Dr. Barr opened Creature Care Animal
Clinic as a veterinary clinic specializing in the care of dogs and cats. The
clinic was set to operate Monday through Friday during regular business hours,
with half days on Saturday and extended hours on Wednesday evening. Dr. Barr
hired another full-time veterinarian, Dr. Gene Yen, a staff of three nurses, an
office manager, and an office assistant. Both doctors were to work during the
week and rotate the shift for Wednesday evenings and Saturdays. A similar
schedule was set up for the nurses. The office manager worked during regular
business hours, and the assistant worked on Wednesday evenings and Saturdays.
Dr. Barr set up this schedule based on a clinic she had observed as a resident
and thought it sounded reasonable.
Since the clinic was small, Dr. Barr
did not have a formal system of inventory management. All physicians and nurses
were allowed to place purchase orders based on need. Initially this system
worked well, but after a few months problems started developing. Frequently
there was excess inventory of certain items and in many cases there were
multiple brands of the same product. Sometimes medications passed their
expiration dates and had to be thrown away. At the same time, the clinic often
unexpectedly ran out of stock of certain supplies and rush orders had to be
placed. On one occasion they ran so low on bandages that the assistant had to
be sent to the local drug store.
Dr. Barr continued to rotate with Dr.
Yen for coverage on Saturdays and Wednesday evenings. However, demand was
increasing so rapidly on Saturdays that one doctor was not enough to provide
needed coverage. Also, the Friday afternoon schedule was usually so packed that
the staff frequently had to stay late in the evening. At the same time, there
was little demand on Wednesday evenings and Dr. Barr found herself working on
paperwork on those evenings, while the nurse and office assistant performed
menial office tasks.
Questions:
1.
Identify the operations
management problems that Dr. Barr is having at the clinic.
2.
The schedule Dr. Barr set up
worked well at the clinic where she was a resident. What are some of the
reasons why it might not be working here?
3.
Identify some of the reasons
why the clinic is having inventory problems.
4.
What should Dr. Barr have done
differently to avoid some of the problems she is currently experiencing?
5.
What suggestions would you make
to Dr. Barr now?
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