MAN 2500 – Discussion Questions & Problems

a. Describe the difference between annual physical count and cycle counting.

b. Describe the reasons for doing physical annual count and cycle counting.

a. Which do you think is the most important element of lean thinking? Discuss the reasons for your answer.
b. Consider the operations of a McDonalds restaurant. List the seven wastes according to Lean Thinking, identify at
least two examples for each waste type typically seen in a fast-food restaurant and propose initiatives to
eliminate each of the waste examples you identified.


McDonalds keep track of customer complaints for each restaurant. There are 10 possible causes of complaints
associated to hamburgers, and the data for first, second and third quarter of 2021 is listed for a store located in the
Tampa area:
a. Calculate the defects per million opportunities (DPMO) for each quarter and describe if the store is improving its

performance from quarter to quarter or not. Justify your answer. Using table 8.4 from your textbook, determine
if this McDonalds restaurant is operating better than 6 Sigma, or not. Explain

b.Discuss how you would apply the seven waste types from Lean Thinking to reduce DPMO for this restaurant.

Correlate the answer to this question to your answer in the previous question in order to enhance your chances
of getting a better grade in this question


a. When a service competes using a cost leadership strategy, does it mean the service is low quality? Explain.
b. What are some alternatives to hiring and laying off workers to vary service capacity as demand varies


a. How can performance standards create functional silos in an organization?
b. Using the basic formula for productivity, (outputs)/(inputs), what are all the ways that productivity can be
increased? In addition, provide examples of these initiatives in a fast-food restaurant such as McDonalds


What the video: Why Everything Is On Sale: The Bullwhip Effect | WSJ – YouTube
Answer the questions:
1. The video presents the graph “Inventories to Sales” ratio for general retailers. Explain in detail, your
understanding of this graph and how does this ratio relate to the Bullwhip Effect?
2. Based on this video, what are the contributing causes for the current Bullwhip Effect we are observing?
3. What are the effects of the Bullwhip Effect being observed now

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