Operations Management- Assignment 01

Due Date: 08th, 19

Note: Please submit the handwritten.
Problem-1
A health-check clinic has five employees and ‘processes’ 200 patients per week. Each employee
works 35 hours per week. The clinic’s total wage bill is £3,900 and its total overhead expenses
are £2,000 per week.

 What are the clinic’s single-factor labor productivity and its multi-factor productivity?
The health clinic described in above has expanded by hiring one extra member of staff and now
has six employees. It has also leased some new health-monitoring equipment which allows
patients to be processed faster. This means that its total output is now 280 patients per week.
Its wage costs have increased to £4680 per week and its overhead costs to £3000 per week.

 What is its single-factor labor productivity and its multi-factor productivity now?
 Also calculate percentage change in productivity for each case – SFP and MFP for above
example.

Problem-2
A publishing company plans to replace its four proofreaders who look for errors in manuscripts
with a new scanning machine and one proofreader in case the machine breaks down. Currently
the proofreaders check 15 manuscripts every week between them. Each is paid €80,000 per
year. Hiring the new scanning machine will cost €5,000 each calendar month. How will this new
system affect the proofreading department’s productivity?

Short Questions
1. What is ‘service’?
2. What is service operations management?
3. Why is service operations management important?
4. Apply the concept of 4 V’s of operation for the services of doctor
performing open heart surgery. Just mention the 4 V’s as High, Low, and
Moderate. No explanation is required.