Note 1: Show all your work to get credit! Write your solutions clearly and neatly.
Some Helpful YouTube Videos
Decision Trees: https://www.youtube.com/watch?v=jzoDKtnTPpg
Flowchart Diagram: https://www.youtube.com/watch?v=hN9xemJYwos
Create a Flowchart in Excel: https://www.youtube.com/watch?v=HSfYsmTVogw
Create a Flowchart in PowerPoint: https://www.youtube.com/watch?v=GsfZD4oU7l0
Create a Flowchart in Word: https://www.youtube.com/watch?v=hjhJ3-jSBM8
Fishbone Diagram: https://www.youtube.com/watch?v=JbRx5pw-efg
Pareto Chart: https://www.youtube.com/watch?v=gSy7KPfaA8g
Problem 1
Chapter 1: Read “Using Operations to Create Value at Crayola” on pages 29 & 30 of the textbook and answer the questions.
Create an assessment of Crayola’s competitive priorities and discuss opportunities and/or any challenges related to them as Crayola expands into Asian markets. Below is an example for the assessment of Crayola’s development speed competitive priority. You should add assessments of at least three other competitive priorities to the table. See Table 1.4 on page 16 of the textbook for a list of competitive priorities.
| Competitive Priority | Measure | Capability | Opportunity/Challenge |
| Development Speed | New product time to market | First to the market with almost every innovation | This will create an opportunity as Crayola will quickly bring new products to the market based on customer preferences and its own innovative capability. |
You can access the video from “Multimedia Library” on MyOMLab’s website.
Problem 2
Supplement A: The demand for a customized knee implants continues to increase at a large orthopedic hospital. The management is evaluating three different alternatives to meet the increasing demand: purchase of one or two 3D printers and the related software or outsourcing to a manufacturer. A consultant’s report indicates a 0.20 probability that demand will be low, 0.50 probability that demand will be moderate, and 0.30 probability that demand will be high. Potential profits/losses for different demand levels are presented in the below table.
| Alternative | Payoff: Profit (in thousands) for Demand Levels | ||
| Low | Moderate | High | |
| Buy One 3D Printer | – 20 | 75 | 100 |
| Buy Two 3D Printers | – 40 | 65 | 135 |
| Outsource | 20 | 45 | 80 |
- nodes, the associated probabilities, and the payoffs.
Problem 3
Chapter 2: Think of a process problem that you have experienced and submit your answers to the following questions about the process and the problem.
- Describe the process and the problem.
- Draw a flowchart for the process. Make sure all the steps of the process and the arrows used to show the flow are clearly illustrated in your chart. See Figure 2.16 on page 82 of the textbook for an example.
- Construct a cause-and-effect diagram (fishbone) showing the potential causes of the problem. The process problem you discussed in part a should be presented in the head of the diagram. Your diagram should include at least four major categories and eight suspected causes. Make sure the causes are clearly stated. See Figure 2.13 on page 75 of the textbook for an example.
- Provide/create data for the number of occurrences of the problem causes you identified in part c and develop a Pareto diagram to prioritize the causes. Make sure your diagram shows all the causes (not the major categories). See Figure 2.12 on page 71 of the textbook for an example.
- Suggest process improvements that would eliminate/relieve the major cause(s) of the problem as identified by your Pareto chart in part d.


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