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1
. What is operations management? Why is it important? Is a good knowledge of operations management more important in service or manufacturing industries?
E
xplain your answer.
2
.
D
iscuss the use of PERT/
C
PM techniques for managing projects. Describe what PERT/CPM does. Discuss advantages and disadvantages of using it. What other techniques might you choose to manage your project?
3
. What are economies of scale in a manufacturing plant? Do they continue forever? What are diseconomies of scale? How might you decide the optimal size of a plant?
4
. What, in your opinion are the 3 most important issues in supply chain management. Discuss why you think these are the key issues.
5
. Discuss why (or if) inventories are necessary. What are the benefits of inventories? What are the disadvantages of holding inventories?
Problem Questions
1. Thermostats are subjected to rigorous testing before they are shipped to air conditioning technicians around the world. Results from the last five samples are shown in the table. Draw and R Chart and an x-bar chart.
B
ased on the charts, is the process under control? (
20
Points)
Sample
1
2
3
4
5
7
3.5
70.
8
72.2
73.
6
71.0
71.3
71.0
73.1
72.7
72.2
70.0
72.6
71.
9
72.4
73.3
71.1
70.6
70.3
74.2
73.6
70.8
70.7
70.7
73.5
71.1
A
nswer 1:
2. A professor records the number of students who complain each week throughout the semester. If the class size is forty students, what are 3-sigma control limits for this class? Construct a control p-chart and interpret the data. Is the process in control? (20 points)
|
Week number |
Complaints |
||
| 7 | |||
| 6 | |||
| 8 | |||
| 9 | |||
|
10 |
|||
|
11 |
|||
|
12 |
|||
|
13 |
|||
|
14 |
|||
|
15 |
Answer 2:
3. A department store chain is designing a layout for a new store. The store manager wants to provide as much convenience as possible for her customers. Based on historical data, the number of trips between departments per hour is given in the following closeness matrix. A block plan showing a preliminary layout is also shown.
Closeness
F
actors (Trips per hour)
1/O 2/S 3/H 4/T 5/A 6/E
1. Office Supplies (O)
—
40
100
50
20 10
2. Sporting
G
oods (S) — 100 80 60 80
3. Hardware (H) — 70 100 50
4. Toys (T) — 70 90
5. Automotive (A) — 60
6. Electronics (E) —
|
1. OFFICE SUPPLIES |
2. SPORTING GOODS |
3. HARDWARE |
|
4. TOYS |
5. AUTOMOTIVE |
6. ELECTRONICS |
Customer travel between departments is restricted to the aisles shown in the block plan as dotted lines.
CALCULATIONS TABLE:
|
Dept. Pair |
Closeness Factor (w) |
Original Distance (dO) |
w dO |
Revision #1 Distance (d1) |
w d1 |
|
1 – 2 |
|||||
|
1 – 3 |
|||||
|
1 – 4 |
|||||
|
1 – 5 |
|||||
|
1 – 6 |
|||||
|
2 – 3 |
|||||
|
2 – 4 |
|||||
|
2 – 5 |
|||||
|
2 – 6 |
|||||
|
3 – 4 |
|||||
|
3 – 5 |
|||||
|
3 – 6 |
|||||
|
4 – 5 |
|||||
|
4 – 6 |
|||||
|
5 – 6 |
|||||
|
TOTAL |
Complete the calculations and fill in the table above. Based on the table above answer the following questions.
a) What is the total expected weighted-distance score between Office Supplies and Hardware? (4 points)
b) What is the total weighted-distance score between Hardware and Toys? (4 points)
c) What is the total weighted-distance score for the entire store? (4 points)
d) A suggestion has been made to switch Hardware and Automotive. What would the total weighted-distance score for the entire store if these two departments were switched? (4 points)
e) Based on your calculations, would you recommend that Hardware and Automotive be switched? (4 points)
Answer 3:
4. Balance the assembly line for the tasks contained in the table. The desired output is 240 units per day. Available production time per day is 480 minutes.
Work Element
Time (Sec.)
Immediate Predecessor(s)
A
B
45
—
C
55
A
D
55
B
E
65
B
40
C,D
25
D,E
a) What is the desired Cycle time in seconds? (4 points)
b) What is the theoretical minimum number of stations? (4 points)
c) Use trial and error to work out a solution in the table below. Your efficiency should be at least 90%. (10 Points)
|
Station |
Candidates |
Choice |
Work-Element Time (Sec) |
Cumulative Time (Sec) |
Idle Time |
d) Calculate the efficiency of your solution. (2 points)
Answer 4:
5. A manufacturer’s research and development center must expand by building a new facility. The search has been narrowed to five locations, all of which are acceptable to management. The assessment of these sites is being made on the basis of the five subjective location factors that follow. Management has agreed to use a five-point scale (Excellent = 5, and Poor = 1) to quantify and compare their subjective opinions about the relative goodness of the sites. The weight reflects the importance of each factor in the decision.
|
Locations |
||||||
|
Factor |
Weight |
A | B | C | D | E |
|
Labor climate |
0. 30 |
|||||
|
Proximity to markets |
||||||
|
Quality of life |
0.15 |
|||||
|
Proximity to suppliers |
||||||
|
Taxes |
0.10 |
Calculate the weighted score for each alternative. Which location would you recommend? (15 points)
Answer 5:
6. Complete the following MPS Record (15 points)
|
Lot Size |
130 |
|||||
|
Lead Time |
||||||
|
Quantity on Hand |
||||||
|
Forecast |
50 | 20 | ||||
|
Customer Orders (booked) |
30 | |||||
|
Projected On-Hand Inventory |
||||||
|
MPS Quantity |
||||||
|
MPS start |
||||||
|
Available to Promise Inventory |
Answer 6:
7. Use the bill of materials and inventory records to determine the quantity of purchased items necessary to assemble 20 end items if the manufacturer uses lot-for-lot ordering. There are no end items currently on hand, and none of the components have any scheduled receipts. (20 points)
Component
On-hand
Component
On-hand
A
5
D
15
B
75
E
3
C
10
F
20
Answer 7:
8.
Use the table below to answer the following questions.
Table for problem 8
The figure above shows the call routing process for a customer service call center. Incoming calls are routed, depending on the complexity of the caller’s request. Simple request are routed to work center B, while the more complex calls are routed to work center C (which also takes simple calls when not busy). The numbers in parentheses are the time in minutes for each step of the process.
A
(4)
B
(3)
C
(6)
D
(10)
E
(2)
a) Use the information in the Table above, what is the throughput time for the process, assuming that the Call Center is always busy and has customers waiting to be processed? (5 points)
b) Use the information in Table above, what is the process bottleneck? (5 points)
c) Use the information in Table above, what is the 8-hour capacity for the process? (5 points)
d) Use the information in Table above, where would you expect customer wait times to occur? (5 points)
Answer 8:
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