CASE STUDY

OPerace

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For-3 is a long endurance race that happens every year to find the fastest
team and driver of the world. The operations of the business are currently
undertaken by the FIA (Form-3 International Association). The FIA has been
thinking of expanding the number of races. Races are organized throughout
the year in 21 different countries on all different tracks. Since the handover of
all operations to Liferty Labs, Form 3 has been gaining a lot of support and
worldwide followers.

Operace Caselet – 1
The Next Venue:
Help the FIA
 Help the FIA
The new CEO did not want to appear political in nature. He asked you to take the decision on the
following basis.

Decision Process

• Identify the Decision Variables which are indifferent to category of the owner
type of the track. No matter if the track is private or government, other
decision variable should not vary (consider the confidence as stated below in
all the case). From the remaining Decision Variables which come out as
indifferent, assign +1 to the country for each "great" decision variable and -1
for "poor" category of the decision variable. The resulting highest number will
be the selected country for the next year. In case of a tie or no decision, use
the alphabetical order of country name to take the decision i.e. Country with
name starting with "A" should be preferred over "B".

You are the Operations Head at FIA. You need to take the decision as indicated by the Decision Process.
Assume 95% decision confidence wherever required

Track health has been categorized as great if more than 4 Drivers Liking is categorized as "great" if 2
Track health has been categorized as Poor if less than or equal to 4 Drivers Liking is categorized as "poor" if 1

Cost of freight is categorized as great if less than or equal to 10 Previous Race is categorized as "great" if 2
Cost of freight is categorized as poor if more than 10 Previous Race is categorized as "poor" if 1
 Decision Variable 1 Decision Variable 3 Decision Variable 4 Decision Variable 5 Not a Decision Variable
Country Previous Race Ever Cost of Freight for Liferty's Camp Track Health Places Drivers agreed for (Unanimous) Owner of tracks
1= Government, 2=
Sr. No 1= No, 2= Yes Cost in millions $ 7 is best, 1 is worst 1= Dislike, 2= Like Private
Argentina 1 1 14 7 1 1
Australia 2 2 2 3 2 2
Canada 3 2 3 4 1 2
Chile 4 2 3 7 1 2
Chile 5 1 13 7 1 1
China 6 2 6 5 1 2
Colombia 7 2 2 4 2 2
Colombia 8 2 6 5 2 2
Denmark 9 2 6 6 1 2
Denmark 10 1 15 7 1 2
England 11 2 3 4 2 2
Germany 12 2 4 6 2 2
Greece 13 1 9 6 2 1
Hungary 14 1 8 3 2 2
Iceland 15 1 5 5 1 2
India 16 2 3 4 2 2
Indonesia 17 1 9 5 1 1
Ireland 18 1 4 5 1 2
Italy 19 1 14 6 1 1
Japan 20 2 6 6 2 2
Kenya 21 1 7 4 2 2
Luxembourg 22 1 6 5 2 1
Malaysia 23 2 7 4 2 2
Maldives 24 1 6 6 1 1
Poland 25 2 6 5 1 2
Portugal 26 1 13 6 1 1
Qatar 27 2 4 5 1 1
Russia 28 2 2 3 2 2
South Africa 29 1 4 5 1 2
Sri Lanka 30 1 3 7 1 2
Sweden 31 1 7 5 1 2
Switzerland 32 1 6 3 1 1

Case 2
Peter was the owner of a soap factory located 100km away from the city of Neverland. He produced only one kind of soap and this was extremely sought after by the people. From
distinct fragrances to unique extracts he left no stone unturned. The soap was priced to sell at 140$ per unit and its cost is constant at 80$ per unit. Each unsold unit has a salvage
value of 40$. Demand is expected to range from 55 to 60 units for the period.55 can be sold as Peter had invested in advertising and promotions and was confident based on his
forecast. He also estimated that not more than 60 units would be sold either. He suddenly remembered that Wendy, his Supply Chain Manager had left behind some data related to
demand before she left for vacation.

The demand probabilities and the associated cumulative probability distribution (P) as estimated by Wendy are as follows:

No. of units Demanded Probability of this Demand Cumulative Probability

55 0.10 0.10

56 0.20 0.30

57 0.15 0.45

58 0.25 0.7

59 0.10 0.80

60 0.20 1.00
Peter seems perplexed on viewing this data and seems helpless. You are the new intern at this soap factory and here is your chance to shine. You find Peter worried and you offer to
help him out by analyzing this data. Help Peter estimate how many units are to be ordered? He also expects you to tell him what the marginal cost of will be ordering the desired
number of units. Also, since you are new in the organization, he expects you to provide some new innovative solutions to optimize his inventory.

Case - 3
Gilbert Foods Pvt Ltd, an FMCG company has a well-defined marketing strategy and keeps customer satisfaction as one of the priorities while producing the products. Over a period,
Sneha, product manager, is getting quality complaints from retailers and is worried about its impact on the sales of the product. Quality specifications limits set as per customer
requirement analysis is predicted in range of 32-35. Board meeting was called and operations manager, Parul Mehta, suggested to opt six sigma methodology and closely monitor the
quality deviations. For successful implication, it is important for Mrs. Mehta to know when deviation can occur and what actions to be taken at minimum cost as possible. Data taken
from operations team is as follows –

X - bar R X bar R

29.76 10.00 28.69 13.64

27.22 8.69 30.02 6.40

31.28 13.56 29.40 6.50

28.00 9.79 26.77 6.75

31.16 7.78 28.46 10.18

31.04 2.74 28.68 3.99

32.52 9.66 31.53 7.66

30.02 14.32 28.86 10.04

29.46 8.12 30.00 3.67

31.31 14.00 28.23 6.03

30.29 12.08 30.43 5.99

31.58 7.83 27.83 11.95

27.25 14.73 31.66 10.00

31.15 7.58 28.69 10.04

32.00 12.56 29.54 8.98

Answer the following questions:

1. Identify the best sample size to be taken and explain why.

2. Calculate x-bar and R upper and lower control limits. (Given A = 0.58 & D = 2.11)

3. If internally control the process, Mrs. Mehta set control limits in range of 31.28 to 33.87. State whether process is capable or not and justify the same quantitatively.

4. In case of any deviation, what are the areas that company can focus on?

Case – 4
Subway, Andheri branch makes sandwiches to order. Right now, it is analyzing the processes at its shop. The flow of activities with time is equal to-
i) Taking Order- 1 minute/order

ii) Slicing the Bun and adding meat- 3 minutes/order

iii) Adding the toppings- 4 minutes/order

iv) Providing the order- 2 minutes/order

It follows an 8-hour workday.

QUESTIONS

1) Maximum output of the day?

2) If one person is added, what is the change in maximum output?
3) If we move one minute from Toppings to Providing Order, what is the change in maximum output?