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Sub optimisation - Operations Function
Another important issue raised by the systems approach is that of sub-optimisation. This is of considerable significance for managers, as it refers to situations where a sub-system is configured such that its performance appears to be optimal, yet the performance of the larger system is prejudiced. A hypothetical example might be a firm comprising several divisions (sub-systems), one of which is responsible for the assembly of final products.
The management of this division decides to reduce operating costs by cutting the stock levels of component parts, and placing replenishment orders for smaller quantities, and more frequently than previously. If this division is supplied by other manufacturing divisions of the firm, they may be obliged to produce in uneconomically small batches: the resulting increases in set-up costs of the supplying divisions may turn out to be greater than the stock-holding savings made by the assembly division. What appears to be optimal for a sub-system (the assembly division in this case) may not be not be optimal for the higher level system (the firm).
In December, general motors produced 7,200 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor hour during that
"Project Selection" •For the purpose of completing the requirements of this course, select an actual business or personal project that assumes duration of 15 months and a functiona
What is operational issues
Should urine testing, or other types of testing, be permitted among public and private employees to prevent drug and alcohol abuse? why or why not?
If Textile Manufacturing, Inc. reduces the hourly wages of its employees so that it can compete with imported clothing, it can anticipate a significant increase in employee theft o
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The purpose of operations management is to make the best use of productive resources. It entails the design and control of all the systems for the productive use of various raw mat
An industrial engineer has obtained the following data in connection with a time study on the lines of the Hawthorne studies taking four different elements and five
In a diverse team, a "fault-line" refers to: a. Cases in which a team tends to find fault or blame in the other team members rather than their own behaviour b. Cases in which group
How does Radisson Hotels Worldwide apply Capacity and Scheduling, and quality?
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