Please read the following article about a start-up and then answer the questions after the article.
Vinebox Offers Wine By The Glass As A Monthly Subscriiption
Jordan Crook, TechCrunch, 2015/09/16
There are plenty of subscriiption services out there that will hit you with a box of various wine bottles, but none offer subscriiption tastings by the glass.
Until Vinebox https://www.getvinebox.com/ (Links to an external site.)).
The new startup has just launched to offer subscriiption wine by the glass for $35/month, with each box containing three separate tasting vials of wine that are measured to the standard 100ml cup. These wines come from highly curated and world-renowned vineyards across France, Spain, and Italy.
The idea here is that the high-end wine offered through Vinebox would usually cost the American customer a fortune and could only be purchased by the bottle. So, if the customer didn’t like it, they’d have already spent quite a bit on an entire bottle. With Vinebox, users can still sample some of the best wines to learn what they like while being generally cost-effective. If they really enjoy a particular vial of wine, they can then order a full bottle from Vinebox.
Beyond that, Vinebox gives extra attention to detail when it comes to its tasting vials, which are made with hand-drawn glass and maintain the same graphic design label you’d see on each vineyard’s bottle. Wine can last up to three years in the Vinebox vials.
Vinebox ensures that the tech it uses to rebottle wine from its original bottle over to the vial will maintain the exact same taste and quality as if the user were pouring directly from a freshly uncorked bottle.
The regular price of a Vinebox subscriiption is $35/month, but users who sign up for a three-month subscriiption before October 1 will get a 20 percent discount, paying $28/month.
https://www.youtube.com/watch?v=NmgnGu68jrU (Links to an external site.)
Question 1 (5 points)
The traditional way customers buy wine is through retail shops. Namely, a shop or supermarket (i) orders bottles from a supplier, (ii) receives the bottles and stores them in inventory or their shelves, (iii) waits for customers to come and buy the wine bottles. For this traditional wine buying method, list one information risk that customers face and one that retailers face. One or two sentences for each risk is sufficient.
Question 2 (10 points)
Name three Business Model Innovation concepts from our class that Vinebox is using. How is Vinebox using them? Short explanations suffice.
Question 3 (10 points)
Do the innovations concepts you listed in Question 2 help address one of the information risks you listed in Question 1? How? If you do not think the innovation concepts you listed in Question 2 address the risks you listed in Question 1, explain what risks Vinebox addresses. Short explanations suffice.
Part 2 – Quality (10 points)
Think about a quality problem you, a company you worked at, or a company you are familiar with recently faced.
Question 1 (5 points)
Briefly explain the problem. Then, draw a fishbone diagram outlining at least four overarching potential causes for the problem. For each potential cause, identify two possible primary causes.
Question 2 (5 points)
Starting with the quality problem and two of the potential causes you identified in part (a), do a root cause analysis at least 4 layers deep.
Part 3 – Multiple Choice (10 points)
Please answer the multiple-choice questions below. Provide a brief explanation for your answers if requested.
Question 1 (2 points)
Consider Alex Rogo’s plant in The Goal, at the beginning of the book before any of Jonah’s recommendations are implemented. Suppose Alex wishes to identify the bottlenecks in the plant. Production data helps him to find a few machines with utilization very close to 1. Can Alex be sure that all these machines are bottlenecks (recall our definition of bottlenecks)?
Why (answer in one or two sentences)?
Question 2 (2 points)
Which of the following most directly expresses the motivation behind the expression “Do not starve the bottleneck”?
If the bottleneck has nothing to work on, the overall capacity of the process will be lower than it could be.
The overall capacity will be reduced if the bottleneck has nowhere to put its output.
Starving the bottleneck will increase the coefficient of variation of the arrival process, which decreases capacity.
Starving the bottleneck increases inventory turns, which increases the annual holding costs.
It is not good to starve the bottleneck because there are economies of scale in inventory management.
Question 3 (4 points)
Demand for 3M N95 masks has increased significantly due to the Covid-19 Omicron outbreak, and the company needs to increase throughput rapidly. Currently, these masks are made by hand in a four-step process:
In Step 1, the material is cut. In Step 2, the material is layered and sewn together to form the protective barrier. In Step 3, the wire is added to the mask to give it structure. In Step 4, the mask is bagged and sealed for shipping. The steps take 1 minute, 3 minutes, 5 minutes, and 2 minutes, respectively, for a total of 11 minutes per mask.
3M is approached by Elon Musk, who offers to donate for free a machine that can perform steps 2 and 3 (the layering and adding of wire) in just 6 minutes, saving 2 minutes per mask! The free machine would combine steps 2 and 3, and the new process would have only three steps. Should 3M take Elon Musk up on this offer?
The answer cannot be determined based on the given information
Why (a short answer suffices)?
Question 4 (2 points)
Sun Valley is a ski resort in Idaho. One of their triple chair lifts unloads 1350 skiers per hour at the top of the slope. The ride from the bottom to the top of the slope takes 8 minutes. How many skiers are riding on the lift going up at any time?
None of the above.
Part 4 – Interface, Inc. (25 points)
After dazzling interviewers with your Operations Management knowledge, you are hired by Interface, Inc. — an Atlanta-based commercial flooring company founded by Georgia Tech alumni Ray C. Anderson. Your first task is to analyze and improve the carpet manufacturing process in one of Interface’s factories.
The input to the manufacturing process is raw materials such as nylon and yarn, purchased from suppliers. The raw material then goes through a three-step process to become carpet tiles sold to customers.
The first step is tufting, where raw material is stitched and glued together to produce base carpet tiles. At Interface’s factory, the total capacity of the tufting machines is 1,800 kg of raw material input per hour. There is yield loss in the tufting process, and 20% of the input raw material is lost during this step. The output of the step is large pieces of uncolored carpet.
The second step is dyeing, where the carpet output of the first step is chemically treated, dyed, and tinted to customers’ tastes. The capacity of the dyeing stage is 1,600 kg of uncolored carpet input per hour. The yield rate of the dyeing process is 95% (5% of the input mass is lost).
The third step is cutting, where the dyed carpet is cut to customer specifications. The capacity of the cutting step is 1,700 kg dyed carpet input per hour. About 20% of the carpet input into this step becomes scrap waste during the cutting process.
The output of the cutting step is finished carpet, which is then sold to customers.
Question 1 (5 points)
Draw a diagram of the carpet-making process. Clearly indicate the capacity of each step and the yield loss that occurs throughout the process.
Question 2 (10 points)
Which step is the bottleneck of the carpet-manufacturing process? What is the maximum output capacity of the manufacturing process (i.e. what is the process output capacity when the bottleneck is used at 100%)? What is the utilization of each step when the process is running at maximum capacity?
Question 3 (10 points)
After some research on how to improve the process, you narrow your choices to two options:
Reengineering and updating the tufting process (Step 1). The updated tufting process has an input capacity of 1,900 kg/hour. The yield loss in the updated tufting step tufting would remain at 20%.
Upgrading the machinery in the cutting stage (Step 3) reduces the amount of scrap generated in the cutting process. With the new machinery, the yield loss in cutting becomes 5%.
If both options costs have the same implementation costs, which one do you prefer? Why? What is the new maximum process output capacity under your preferred option?
Part 5 – Yellow Jacket Home Renovations (30 points)
After graduating from Georgia Tech, you open Yellow Jacket Home Renovations, a home renovation company that focuses on full renovations of midcentury modern homes in the greater Atlanta region. You estimate that the revenue you make per renovation is $250,000.
Your first business decision is to choose how many full-time renovation crews you will hire. A renovation crew is a small team of workers responsible for renovating one house. To keep things simple, once a renovation crew is allocated to a house, they work on its renovation until it is completed. If there are fewer home renovation requests at any given time than renovation crews, some renovation crews will be idle until more requests come in. Conversely, if all renovation crews are busy and a home renovation request from a customer arrives, that customer will wait in a queue until a renovation crew becomes available.
After gathering some data, you estimate that a renovation crew takes about four months on average to renovate a home. The time it takes to renovate a home has uncertainty, and you estimate that the standard deviation of the renovation time is three months.
Furthermore, customers are impatient. If a customer arrives and sees that their average wait time until their home renovation begins is longer than three months (i.e., their average wait time is longer than three months), they will leave and write a terrible review on Google and Yelp. You want to avoid bad reviews as much as you can.
Question 1 (10 points)
Your initial revenue goal is to have an average revenue of $2,000,000 per year (i.e., an average of 8 home renovations per year). Assume that the coefficient of variation of the inter-arrival time of customers requesting renovations is 1. Given your annual revenue goal, what is the minimum number of renovation crews you need to hire such that customers’ average wait time for their renovation to start is less than three months?
Question 2 (5 points)
For your answer in the previous question, what will your renovation crews’ average utilization be? What is the average number of customers in the system (customers waiting for renovation to start + customers having their home renovated)? What is the average annual revenue per renovation crew?
Question 3 (10 points)
Business is going well, and demand is growing. As a result, you invest in a sales and customer scheduling system that reduces the variability of incoming renovation requests from customers to zero (the coefficient of variation of the customer interarrival rate is now zero). Furthermore, you hope to increase your yearly revenue to $5,000,000 per year while keeping the average customer wait time below three months. Will you be able to achieve your revenue and wait time goals with your answer to question (a)? If not, what is the smallest number of additional renovation teams do you need to hire?
Question 4 (5 points)
Assuming an average annual revenue of $5,000,000 per year, what is the average annual revenue per renovation crew for the number of crews you determined in the previous question? How does the average revenue per crew compare to the one that you obtained in Question 2? If the average annual revenue per crew is significantly lower or larger, what is one reason for this difference?
if we need more pages please let me know asap. It should be about 4 pages. thats how many pages it took my friends.
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