Computer Rentals Essay Example for Free

Computer Rentals Essay1.a Using the dimensions we discussed in class, how would you describe Mitchell Gold Co.s strategical position?Mitchell Gold competes by offering high quality products at a lower price than most makers of similar quality furniture. They offer limited variety in relation to other makers, which allows them to be more responsive and deliver orders in a timely manner (97% on time shipment).1.b Consider the following description of other furniture makers (unbeatable IPF) businessThe standard product line has about 500 different items, with many of the pieces starting as stock, unfinished woody frames imported from Europe. But the finished furniture can be as different as the imaginations of the designers, with 60 different standard finishes for the wood and an almost eternal selection of upholstery provided by designers. Because each piece is hand finished by rag and brush and made to order, the wait on can take 12 weeks or longer, with one custom-made en tertainment cabinet nearing completion after almost six months. (The Record, Bergen County, NJ, 12/09/2001)How would you anticipate that Mitchell Golds production processes differ from those of Invincible IPF? Be sure to discuss the nature of the production equipment and the placement of inventory.MG offers less variety and has greater volume than Invincible. Consequently, MG believably uses more specialised equipment while Invincible has primarily usual-purpose equipment.Since designers provide upholstery provided for custom orders, Invincible should have little raw material and no finished goods. MG likely has higher raw material and finished goods inventory. Given the long flow times, Invincible likely has much higher WIP levels.Question 22.a In The Goal, curse asks Alex 3 questions Did your throughput increase? Did your inventories decline? Did your process approach decline? Define each of the three italicized terms for a process and explain why a positive answer to each of the three questions may be classified as an improvement.Throughput corresponds to the rate at which flow units flow through the process. Throughput in general should correspond to sales not production. If the product has a positive margin, an increase in throughput increases positive cash flows. Inventories correspond to the number of flow units within process boundaries. Decreasing inventories decreases the amount of working capital required. It also decreases any reduction in inventory value due to obsolescence. Process cost refers to the cost incurred in transforming inputs to outputs. A reduction in process cost increases margin and thus profitability.2.b Many enlightened firms have made flow time reduction a key objective. Discuss under which conditions a reduction in flow time improves performance of a process in terms of the modules we have discussed1. strategic competitive impactReducing flow time allows a firm to target customer segments that may want a faster response. I t also allows a firm to be more responsive to volume and taste changes of the customer.2. impact on financial flowsCash is tied up as working capital for a shorter amount of time.3. impact on critical pathThe critical path gets shorter.4. impact on stymiesBottleneck capacity may go up totally if the flow time at the bottleneck is reduced.5. impact on lean operationsGenerally allows a firm to operate with lower levels of inventory. overly shortens the time lag between introduction and detection of defects.2.c List three ways to increase the capacity of a process. Consider the likely relative cost of implementing these changes and present them in order from cheapest to most expensive to implement. Explain the rationale for your ordering.Option 1Decrease work at the bottleneck resource (e.g. by moving QC before bottleneck)Option 2 Move work from a bottleneck to a non-bottleneck resource.Option 3Add to the bottleneck resourcerationaleMoving QC before the bottleneck is a very simple c hange that eliminates work even if quality does not improve. Moving work from a bottleneck to a non-bottleneck resource requires training and changed capability at the non-bottleneck resource. Adding to the bottleneck clearly requires additional investment.Question 3The three hair stylists, Francois, Bernard and Mimi (FBM) run a refrain Service Hair Styling Saloon for busy professionals in the Gold Coast area of downtown Chicago. They stay open between 645 AM 900PM in order to fit to a large variety of peoples work schedules. In their fast service location, they perform only shampooing and hair styling activities. On average, it takes 10 min to shampoo, 15 min to style the hair and 5 minutes to bill the customer. The store layout is shown below. It consists of a shampooing area, which can charge 3 customers at a time and a styling area with 4 desks, which have fully integrated hair-modeling equipment.