Write A Description Of An Operations Management Issue

Write A Description Of An Operations Management Issue Based On A Provi

Write a description of an operations management issue based on a provided scenario and draw or outline a decision tree showing possible decisions for addressing the issue. In addition, complete a load-distance analysis for the scenario and describe your calculations. The focus in this assessment is on the factors in layout planning and facility layout. Companies realize that the costs of a product are inherent in how they transform their inputs into outputs. Transformation costs correlate directly to how well the facility is laid out and how well that layout translates to the delivery of a high-quality, on-time product.

Operational decisions also have substantive impact on sustainability; for example, layout can affect how much electric power, heating, and cooling resources are expended. By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria: Competency 2: Apply the tools and technology used in operations management. Analyze capacity planning using a decision tree approach. Analyze a facility layout using a load-distance approach. Scenario Jackson Medical Diagnostics Lab is a small lab providing medical testing for doctors and hospitals. It was founded 10 years ago, has a good reputation among local doctors, and has been experiencing strong growth the past two years. Jackson's general manager knows from a relatively recent operations management analysis that the lab's design capacity is 340 patients per day, its effective capacity is 310 patients per day, and the lab currently processes 295 patients per day. The general manager is concerned that the lab will not have the capacity to meet future demand unless the lab is expanded. She has hired a market research firm to study the demand for the lab's services in the area. After completing its study, the market research firm predicted that there is a .60 probability of continued high demand (PH) for the lab's services over the next five years, and a .40 probability of low demand (PL). Based on that, Jackson's general manager has decided to move forward with an expansion. However, she is not sure whether she should do a small expansion (SE) by taking over some adjacent vacant office space that has recently become available, or do a large expansion (LE) by moving the lab to a different floor of the same building. The general manager has worked with the lab's finance manager to come up with an estimate that a small expansion would have a profitability of $35,000 if the demand for the lab's services is low (ProfitSmallLow). If the lab undertakes a small expansion and the demand for the lab's services is high, the lab would likely have to undertake a second small expansion (assuming appropriate space was available), and the profitability of the two expansions would be $55,000 (ProfitSmallHigh). If the lab undertakes a large expansion, the profit would be $90,000 if the demand for its services is high (ProfitLargeHigh), but only a $52,000 profit if the demand is low (ProfitLargeLow). Directions: Complete all of the following three components of this assessment: Component 1. Briefly describe the operations management issue in the scenario above and describe how you would approach an analysis. Component 2. Draw or outline a decision tree showing the possible decisions, the probability of each, and the profitability of each. Based on those probabilities and profits, determine the probabilistic profitability of each, and thus the best expansion decision for Jackson to pursue. Component 3. As part of considering these two expansions, Jackson's general manager is looking into how they might best lay out the lab areas if they do the large expansion. The new larger space they would be using is already divided into several rooms connected by doors. Plumbing is available in each area, and thus the bathrooms (which are not yet built) could be located in any area. Jackson's general manager would like to design a layout that minimizes the number of trips employees must make between rooms each day. Her preliminary layout involves a 3x2 equal size room arrangement. One set of three rooms in that preliminary layout consists of the reception (R) room, the office (O), and the private patient stations (P) room. The other set consists of the employee break area (E), the bathrooms (B), and the storage area (S). The manager has asked each employee to log their current movements between areas, and the resulting data is available for analysis. Complete a load-distance (LD) analysis for the preliminary layout by assigning a load of 15 feet for each room-to-adjacent-room movement (assuming a door between all adjacent rooms). Describe your calculations and compute the final LD value.

Paper For Above instruction

The scenario presented revolves around an operations management challenge faced by Jackson Medical Diagnostics Lab, which is experiencing growth and is contemplating expanding its capacity to meet future demand. The core issue involves selecting the most appropriate expansion strategy—either a small expansion (taking over adjacent space) or a large expansion (relocating to a different floor)—based on probabilistic market demand forecasts. The decision directly impacts operational efficiency, costs, and sustainability. Analyzing this scenario requires a systematic approach combining decision tree analysis for capacity planning and load-distance calculation for optimal facility layout, aiming to minimize traversal distances and operational costs.

In terms of capacity planning, the key is to evaluate the expected profitability of each expansion option considering the probabilistic demand forecast. The probabilities assigned are 0.60 for high demand and 0.40 for low demand. For each expansion strategy, profitability varies depending on whether demand is high or low. For the small expansion, profits are $35,000 in low demand and $55,000 in high demand, with a potential need for a second expansion if demand remains high. The large expansion yields $52,000 in low demand and $90,000 in high demand. Utilizing a decision tree, one can calculate the expected monetary value (EMV) for each option: EMV = (Probability of high demand × Profit in high demand) + (Probability of low demand × Profit in low demand). The decision with the higher EMV should be preferred.

For the facility layout analysis, the focus is on minimizing the travel distance between key functional areas to improve efficiency and reduce operational costs, thereby positively contributing to sustainability. The preliminary layout involves arranging six rooms in a 3x2 grid, with known adjacencies and logged employee movements. Assigning a fixed distance of 15 feet to movements between adjacent rooms allows for a load-distance analysis. By calculating the total weighted distance based on movement frequency, the layout that minimizes total traversal can be identified, leading to improvements in workflow and reducing energy expenditure.

In conclusion, the operations management issue involves evaluating capacity expansion options through probabilistic analysis and optimizing facility layout via load-distance calculations. Together, these tools support strategic decision-making aimed at enhancing operational efficiency, cost-effectiveness, and sustainability.

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