Running head: OPERATION MANAGEMENT
Q1. a. A sample of 12 units taken from data of 99 units
Standard deviation becomes sigma in this case.
To calculate the standard deviation, use the following formula.
Sample standard deviation= √
for i=1 to N
Using the formula in Microsoft excel will give 0.0129 as the sample standard deviation.
1. c. The sample is still in statistical control. As seen from the graph,
there is no point that UCL comes into contact with the LCL.
question 2a. to estimate the seventh value using excel, we start with the second variable in the
case of 5 moving average.
The formula used
in excel is as
(600*.5 + 511*.3
+ 738*.2)/3 =
D represents the
demand for that
F (7) =
F(n+1) =a*D(n) + (1-a) *F(n) is the formula for exponential smoothing
Q3. EXPLAIN THE CROSS FUNCTIONAL DECISION AND ITS IMPORTANCE.
Cross-functional decisions are types of an approach used in an organization which comprises of
people with a different set of skills and work with one another to have a better performance of
the entity. It may involve members from a different department in an organization. Some of the
functional areas in an organization that the team may come from our sales department, finance,
accounts and audit department, human resource and customer care department (Li, X. 2003).
The advantages that come along with such teams include:
1. Better decision-making process because of the diversified set of skills combined.
Members of the teams come with different knowledge, expertise, and problem-solving
2. There is improved collaboration in the team, especially among major functional areas.
Better teamwork among members of the team helps it to give the client a great experience
in working with them. A satisfied client always come back or refer others hence
improving the performance of the entity.
3. Product innovation is improved. Different skill sets among workers in the team provide
different ideas on how to improve a particular project to ensure customer loyalty keeps
increasing. Working together forms ensures that comprehensive solutions to problems are
realized quickly without much struggle.
A company that has been dealing with the transportation of cargo realizes that revenue generated
is reducing significantly annually. The board of management requires that the chief executive
officer come up with a solution to that. As a professional manger, a team of representatives is
done to come up with solutions to improve the performance of the business. A cross-section team
put in place sees the company improving in performance and to its optimal point.
Q4. What are the different types of quality?
Quality is the extent of value to which one gets from consuming a product or a service.
1. Product quality value. Different products offer different ways of satisfaction to their
2. Service quality. Defined as the level of satisfaction one gets from receiving a service.
3. Information quality. If the information received or relayed is clear, timely and serves the
purpose it was intended, it off...
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