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1) What is Operations Management? | Rated A+
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1)What is Operations Management?

Read the overview below and complete the activities that follow. 

Operations management decisions go into every product or service. The operations manager impacts all parts of the business from the raw materials to the delivery of the good or service. To continue to provide the highest quality products and services requires constant improvement. 

CONCEPT REVIEW: 
Organizations look to the operations manager to determine what type of process is best suited to fulfill their customers' needs. To make this determination, the operations manager needs to have knowledge of the facts and how to interpret information. By measurement, the operations manager can decide if their process is the most efficient for their product or service. 

 

2) A catering company prepared and served 400 meals at an anniversary celebration last week using nine workers. The week before, seven workers prepared and served 265 meals at a wedding reception.

   
 

a1.

Calculate the labor productivity for each event. (Round your answers to 1 decimal place.)

   
 

  Anniversary

  

meals/worker

  Wedding

  

meals/worker

    
 

a2.

For which event was the labor productivity higher?

 

   

 

Anniversary

Wedding

   


 

3)Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $18. Overhead is 1.5 times weekly labor cost. Material cost is $10 per pound. (Round your answers to 2 decimal places.)

   
 

  Week

Output (units)

Workers

Material (lbs)

1

29,000

5

400

2

32,000

7

510

3

30,000

8

540

4

36,000

8

510


    
 

Week

MFP (Output / Total Cost)

  1

       

  2

       

  3

       

  4

       

 

 

4) Read the overview below and complete the activities that follow. 

 

A forecast is a statement about the future value of a variable, such as demand. That is, forecasts are predictions about the future. The better those predictions, the more informed decisions can be.

CONCEPT REVIEW: 
Many different kinds of forecasting techniques are available, and no single technique works best in every situation. Different forecasting methods require different levels of background sophistication in the personnel involved in the methods' creation.

 

5) A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $38,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $19.

a.

Determine each alternative’s break-even point in units. (Round your answer to the nearest whole amount.)

    
 

  QBEP,A

 units  

  QBEP,B

 units  

   
 

b.

At what volume of output would the two alternatives yield the same profit? (Round your answer to thenearest whole amount.)

    

  Profit

 units  

   
 

c.

If expected annual demand is 10,000 units, which alternative would yield the higher profit?

    
 

  Higher profit

  


 

 

6) A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.40 a minute for daytime calls and $.20 a minute for evening calls. Plan B has a charge of $.50 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 200 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening.

     
 

a.

Determine the total charge under each plan for this case: 130 minutes of day calls and 50 minutes of evening calls in a month. (Do not round intermediate calculations.  Round your answer to 2 decimal places.  Omit the "$" sign in your response.)

      
 

  Cost for Plan A

  

  Cost for Plan B

  

  Cost for Plan C

  


       

c.

If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number.Include the indifference point itself in each answer.)

    

 

7) A producer of inkjet printers is planning to add a new line of printers, and you have been asked to balance the process, given the following task times and precedence relationships. Assume that cycle time is to be the minimum possible.


 

Task

Length
(minutes)

Immediate
Predecessor

a

0.2

-

b

0.4

a

c

0.3

-

d

1.3

b, c

e

0.1

-

f

0.8

e

g

0.3

d, f

h

1.2

g


    
 

a.

Do each of the following:


 

(2)

Assign tasks to stations in order of greatest number of following tasks. Use greatest positional weight as a tiebreaker rule.


 

Work Station

Task Assigned

I

  

II

  

III

  

IV

  




 

Task

Following   
Tasks     

a

  

b

  

c

  

d

  

e

  

f

  

g

  

h

  



 

(3)

Determine the percentage of idle time. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)


 

  Percentage of idle time

 %  


 

(4)

Compute the rate of output in printers per day that could be expected for this line assuming a 420-minute working day. (Round your answer to the nearest whole number.)


 

  Rate of output

 units per day  


 

b.

Answer these questions:


 

(1)

What is the shortest cycle time that will permit use of only two workstations? (Round your answer to 1 decimal place.)


 

  Shortest cycle time

 minutes  


 

(2)

Determine the percentage of idle time that would result if two stations were used and each station was loaded with the worktime shown in Part b(1). (Leave no cells blank - be certain to enter "0" wherever required. Omit the "%" sign in your response.)


 

  Percentage of idle time

 %  


 

(3)

What is the daily output under this arrangement a using the cycle time from Part b(1)? (Round your answer to 1 decimal place.)


 

  Daily output  

 units per day  


 

(4)

Determine the output rate that would be associated with using the maximum cycle time. (Round your answer to 2 decimal places.)


 

  Rate of output

 units per day  

 

 

8) As part of a major plant renovation project, the industrial engineering department has been asked to balance a revised assembly operation to achieve an output of 240 units per eight-hour day. Task times and precedence relationships are as follows:

   
 

Task

Duration
(minutes)

Immediate
Predecessor

a

0.2

-

b

0.4

a

c

0.2

b

d

0.4

-

e

1.2

d

f

1.2

c

g

1.0

e, f


    
 

Do each of the following:

    
 

b.

Determine the minimum cycle time, the maximum cycle time, and the calculated cycle time.(Round your answers to 1 decimal place.)

    
 

 

 

  The minimum cycle time  

 minutes per unit 

  The maximum cycle time  

 minutes per unit  

  Calculated cycle time  

 minutes per unit  


    
 

c.

Determine the minimum number of stations needed. (Round your answer to the next whole number.)

    
 

  Minimum number of stations

  
 

    
 

d.

Assign tasks to workstations on the basis of greatest number of following tasks. Use longest processing time as a tiebreaker. If ties still exist, assume indifference in choice.

    
 

Work stations

      Following Tasks

I

  

II

  

III

  

IV

  


    
 

e.

Compute the percentage of idle time for the assignment in part d. Use the actual bottleneck cycle time in your calculation. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

    
 

  Percentage of idle time

 %  

rev: 02_04_2015_QC_CS-1791

9) Twelve tasks, with times and precedence requirements as shown in the following table, are to be assigned to workstations that have a fixed machine cycle time of 1.5 minutes. Two heuristic rules will be tried: (1) greatest positional weight, and (2) greatest number of following tasks.

In each case, the tiebreaker will be shortest task time.


 

Task

Length
(minutes)

Immediate
Predecessor

a

0.1

-

b

0.2

a

c

0.9

b

d

0.6

c

e

0.1

-

f

0.2

d, e

g

0.4

f

h

0.1

g

i

0.2

h

j

0.7

i

k

0.3

j

l

0.2

k



 

b.

Assign tasks to stations under each of the two rules.


 

(1) greatest positional weight (shortest task time as tiebreaker)


 

Work Station

Tasks

I

  

II

  

III

  



 

(2) greatest number of following tasks (shortest task time as tiebreaker)


 

Work Station

Tasks

I

  

II

  

III

  



 

c.

Compute the percentage of idle time for each rule. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)


 

  Percentage of idle time

 %  

rev: 02_04_2015_QC_CS-1678

 

10) A job was timed for 60 cycles and had an average of 1.6 minutes per piece. The performance rating was 96 percent, and workday allowances are 16 percent. Determine each of the following:


 

a.

Observed time. (Round your answer to 1 decimal place.)


 

  Observed time

 minutes  


 

b.

Normal time. (Round your answer to 2 decimal places.)


 

  Normal time

 minutes  


 

c.

Standard time. (Round your answer to 2 decimal places.)


 

  Standard time

 minutes  

 

11) A time study was conducted on a job that contains four elements. The observed times and performance ratings for six cycles are shown in the following table.


 

 

 

OBSERVATIONS (minutes per cycle)

Element

Performance
Rating

1

2

3

4

5

6

1

90%       

0.44  

0.50  

0.43  

0.45  

0.46  

0.46  

2

85          

1.50  

1.54  

1.47  

1.51  

1.49  

1.52  

3

110          

0.84  

0.89  

0.77  

0.83  

0.85  

0.80  

4

100          

1.10  

1.14  

1.08  

1.16  

1.16  

1.26  



 

a.

Determine the average cycle time for each element. (Round your answers to 3 decimal places.)


 

 Element

        Average cycle  

  1

   

  2

   

  3

   

  4

   


 
 

b.

Find the normal time for each element. (Round your answers to 3 decimal places.)


 

 Element

           Normal time  

  1

   

  2

   

  3

   

  4

   



 

c.

Assuming an allowance factor of 14 percent of job time, compute the standard time for this job. (Round your answers to 3 decimal places.)


 

 Element

           Standard time  

  1

   

  2

   

  3

   

  4

   


 

 

12) A firm that has recently experienced an enormous growth rate is seeking to lease a small plant in Memphis, TN; Biloxi, MS; or Birmingham, AL. Prepare an economic analysis of the three locations given the following information: Annual costs for building, equipment, and administration would be $31,400 for Memphis, $60,000 for Biloxi, and $100,000 for Birmingham. Labor and materials are expected to be $8 per unit in Memphis, $4 per unit in Biloxi, and $5 per unit in Birmingham. The Memphis location would increase system transportation costs by $50,000 per year, the Biloxi location by $60,000 per year, and the Birmingham location by $28,000 per year. Expected annual volume is 17,000 units.(Omit the "$" sign in your response.)


 

 

      Total Cost

  Memphis

 $   

  Biloxi

  

  Birmingham

  


 

1

13)A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers. Two locations are being considered, one in the center of the city and one on the outskirts. The central city location would involve fixed monthly costs of $6,920 and labor, materials, and transportation costs of $30 per car. The outside location would have fixed monthly costs of $4,500 and labor, materials, and transportation costs of $40 per car. Dealer price at either location will be $90 per car.


 

a.

Which location will yield the greatest profit if monthly demand is (1) 200 cars? (2) 300 cars?


 

  200 cars:  yields the greatest profit.

  300 cars:  yields the greatest profit.


 

b.

At what volume of output will the two sites yield the same monthly profit?


 

  Volume of output

 cars  

 

 

 

14) 

 

Location Score

  Factor
(100 points each)

Weight

A

B

C

  Convenience

.15       

86

77

83

  Parking facilities

.20       

70

88

98

  Display area

.18       

86

90

94

  Shopper traffic

.27       

90

88

89

  Operating costs

.10       

86

91

96

  Neighborhood

.10       

90

86

84

 


 

 

 

 

1.00       

 

 

 

 



 

 

 



 

a.

Using the above factor ratings, calculate the composite score for each location. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)


 

Location

         Composite Score

A

  

B

  

C

  



 

b.

Determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.

 

 

 

C

A

B

15 Factor

Weight

East #1

East #2

West

 

  Initial cost

8       

150    

160    

130    

 

  Traffic

8       

50    

35    

45    

 

  Maintenance

5       

25    

25    

22    

 

  Dock space

6       

12    

19    

14    

 

  Neighborhood

3       

8    

15    

12    

 


 

             


 

a.

Using the above factor ratings, calculate the composite score for each location.


 

Location

         Composite Score

East #1

  

East #2

  

West

  



 

b.

Determine which location has the highest composite score:

 

 

 

East #1

East #2

West

 

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