QUESTION #1
a. Describe the difference between annual physical count and cycle counting.
b. Describe the reasons for doing physical annual count and cycle counting.
QUESTION #2
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.
QUESTION #3
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:
Complaint Types
Sandwich is cold
Not enough catch-up
Too long waiting time
Bun tastes old
Wrong hamburger
Patty tastes burned
Patty is too small
Patty is not cooked
enough
Not enough cheese
Forgot to include sauces
in the bag
Total number of
hamburgers sold per
quarter
1st Quarter
20
25
11
15
12
33
5
40
2nd Quarter
25
22
12
15
15
34
8
25
3rd Quarter
25
32
23
22
21
12
12
33
25
10
22
15
34
23
12,500
11,750
12,150
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.
QUESTION #4
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?
QUESTION #5
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.
QUESTION 6
What the video: Why Everything Is On Sale: The Bullwhip Effect | WSJ – YouTube
Answer the questions:
1. The video presents the graph nventories to Sales2atio 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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