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Week 1 OPMT 620 HBD – Productivity and Service Quality in Operations

Delve into productivity exercises from Week 1 of OPMT 620 HBD, including case studies on energy efficiency, labor productivity, multi-factor productivity, and service quality improvement for businesses.

<h3>Week 1 – OPMT 620 HBD Fall 2024: Productivity Exercises</h3>
<p><strong>Due Date</strong>: 4 October 2024 (11:59 PM)<br><strong>Instructions</strong>: Please upload your Excel sheet file to Brightspace for grading. Answer theoretical questions below your calculations/graphs.</p>
<hr>
<h4>Question 1: Productivity Analysis at Kelly’s Organics</h4>
<p>Kelly’s Organics invested $5,000 in a new heating mix tank aimed at improving energy efficiency and increasing product output. This advanced vessel can mix oil and water while heating to create emulsions for her skincare products, packaged in 100g bottles. However, Kelly noticed the new equipment requires extra labor hours due to its size, needing two additional personnel for operation. Here is a summary of her production data:</p>
<table>
<thead>
<tr>
<th>Metric</th>
<th>2023</th>
<th>2024</th>
</tr>
</thead>
<tbody>
<tr>
<td>Production Finished Units</td>
<td>7,920</td>
<td>14,625</td>
</tr>
<tr>
<td>Production Throughput (Kg) per batch</td>
<td>100</td>
<td>300</td>
</tr>
<tr>
<td>Labor (Hrs) per day</td>
<td>24</td>
<td>40</td>
</tr>
<tr>
<td>Batches per day</td>
<td>8</td>
<td>5</td>
</tr>
<tr>
<td>Capital ($)</td>
<td>20,000</td>
<td>55,000</td>
</tr>
<tr>
<td>Energy (kWh)</td>
<td>1,500</td>
<td>3,500</td>
</tr>
</tbody>
</table>
<p><strong>Task</strong>: Calculate partial productivity measures to assess if the new equipment has achieved the desired energy efficiency and output increase.</p>
<p><em>(4 Marks)</em></p>
<hr>
<h4>Question 2: Multi-Factor Productivity at Kani Packaging</h4>
<p>Kani Packaging, a corrugated box manufacturer for a frozen poultry supplier, recently made process and equipment adjustments. These changes increased daily output by 400 boxes, reaching 3,500 boxes. Labor costs averaged $18 per hour for 25 employees before the changes, now reduced to 23 employees. Capital costs rose from $3,200/day to $3,400/day, while energy costs remained the same.</p>
<ul>
<li><strong>Part a</strong>: Calculate labor productivity and multi-factor productivity before and after the operational changes.</li>
<li><strong>Part b</strong>: Determine the percentage change in productivity.</li>
</ul>
<p><em>(2 Marks)</em></p>
<hr>
<h4>Question 3: Service Quality Improvement at Vancouver Pinnacle Hotel</h4>
<p>The Vancouver Pinnacle Hotel is analyzing guest complaints data to enhance service quality and the overall guest experience. Below is the summary of complaints received by different hotel areas:</p>
<table style="width: 55.7237%; height: 366px;">
<thead>
<tr style="height: 44.7656px;">
<th style="width: 14.3862%; height: 44.7656px;">Hotel Area</th>
<th style="width: 61.5134%; height: 44.7656px;">Description</th>
<th style="width: 24.1424%; height: 44.7656px;">No. of Complaints</th>
</tr>
</thead>
<tbody>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">F</td>
<td style="width: 61.5134%; height: 22.3828px;">Incorrect food order or food prepared incorrectly</td>
<td style="width: 24.1424%; height: 22.3828px;">3</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">R</td>
<td style="width: 61.5134%; height: 22.3828px;">No towels provided</td>
<td style="width: 24.1424%; height: 22.3828px;">12</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">R</td>
<td style="width: 61.5134%; height: 22.3828px;">Poor cleanliness of room/bathroom</td>
<td style="width: 24.1424%; height: 22.3828px;">4</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">F</td>
<td style="width: 61.5134%; height: 22.3828px;">No waiter/waitress available at the bar</td>
<td style="width: 24.1424%; height: 22.3828px;">2</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">L</td>
<td style="width: 61.5134%; height: 22.3828px;">No front desk staff available</td>
<td style="width: 24.1424%; height: 22.3828px;">2</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">F</td>
<td style="width: 61.5134%; height: 22.3828px;">Poor breakfast options</td>
<td style="width: 24.1424%; height: 22.3828px;">3</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">L</td>
<td style="width: 61.5134%; height: 22.3828px;">No record of booking</td>
<td style="width: 24.1424%; height: 22.3828px;">1</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">R</td>
<td style="width: 61.5134%; height: 22.3828px;">Uncomfortable bedding/linen</td>
<td style="width: 24.1424%; height: 22.3828px;">5</td>
</tr>
<tr style="height: 22.3828px;">
<td style="width: 14.3862%; height: 22.3828px;">L</td>
<td style="width: 61.5134%; height: 22.3828px;">Inadequate facilities (gym/pool)</td>
<td style="width: 24.1424%; height: 22.3828px;">2</td>
</tr>
</tbody>
</table>
<p><strong>Task</strong>: Create a Pareto chart to visualize the complaints, followed by an analysis identifying priority areas for improvement, potential root causes, and actionable recommendations.</p>
<p><em>(4 Marks)</em></p>

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Week 1 OPMT 620 HBD – Productivity and Service Quality in Operations

Delve into productivity exercises from Week 1 of OPMT 620 HBD, including case studies on energy efficiency, labor productivity, multi-factor productivity, and service quality improvement for businesses.

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