Ch. 1 Competing with Operations. 2, 3, 4 on p27-28



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Ch. 1 Competing with Operations.

2, 3, 4 on p27-28

Ch. 2 Project Management.

1, 6, 7, 8,10 on p79-80

Ch. 3 Process Strategy

1, 3, 4 on p116

Ch. 4 Process Analysis.

10, 11, 20, 21, 25 on p147-149

Ch. 5. Quality and Performance

3, 4, 5, 6, 7, 8, 15 on p206-209

Ch. 6. Capacity Planning

2, 3, 4 on p234-235

Ch. 7. Constraint Management

3, 4, 5 on p282-283

Ch. 8. Lean Systems

3, 4, 7 on p317-318

Ch. 9. Supply Chain Design.

2, 5, 9 on p346-347

Ch. 10 Supply Chain Integration

2, 3, 4 on p381-382

Ch. 11. Location.

1, 2, 3, 4, 8, 12 on p407-410

Ch. 12. Inventory Management.

1, 7, 9, 10, 13, 14 on 440-442

Ch. 13. Forecasting.

2, 4, 5, 11, 13 on p490-492

Ch. 14. Operations Planning and Scheduling

2, 3, 11, 16 on p530-534

Ch. 15. Resource Planning.

1, 4, 5, 14 (MRP), 6 (PMS)

Ch1


  1. Suds and Duds Laundry

  1. Labor productivity


Week

Number of

Workers

Input

(Labor-hours)

Output

(Shirts)

Output/Input

Ratio

1

2

24

68

2.83 shirts/hour

2

2

46

130

2.83 shirts/hour

3

3

62

152

2.45 shirts/hour

4

3

51

125

2.45 shirts/hour

5

2

45

131

2.91 shirts/hour




  1. Output per person does not vary much whether it is Sud, Dud, or Jud working. Productivity declines when all three are present. Perhaps there isn’t enough work to keep three persons occupied, or perhaps there is not enough work space or equipment to accommodate three workers.

  1. Compact disc players

Value of Output: $300

Value of Input: Labor + Materials + Overhead

Productivity

10% productivity improvement

Given productivity, and the value of output we solve for the cost of inputs:

Productivity



Input or $136
The cost of inputs must decrease by.

    1. A $14 reduction in material costs is

    2. A $14 reduction in labor costs is

    3. A $14 reduction in overhead is $14/$50 = 28.00%




  1. The output of a process is valued at $100 per unit. The cost of labor is $50 per hour including benefits. The accounting department provided the following information about the process for the past four weeks:




Week 1

Week 2

Week 3

Week 4

Units Produced

1124

1310

1092

981

Total Value

112,400

131,000

109,200

98,100

Labor ($)

12,735

14,842

10,603

9526

Labor (hrs)

254.7

296.8

212.1

190.5

Material ($)

21,041

24,523

20,442

18,364

Overhead ($)

8,992

10,480

8,736

7,848

Multifactor Productivity

2.63

2.63

2.75

2.75

Labor Productivity

4.41 units/hr

4.41units/hr

5.15 units/hr

5.15 units/hr




  1. Use the multifactor productivity ratio to see whether recent process improvements had any effect and, if so, when the effect was noticeable.

Value of output

Value of input: labor + material + overhead


$12,735 + $21,041 + $8,992 = $42,768
Productivity ratio:

Labor Productivity

Week 1 Productivity

Week 2 Productivity

Week 3 Productivity

Week 4 Productivity





Improved 4.45% - noticeable in Week 3

  1. Has labor productivity changed? Use the labor productivity ratio to support your answer.

Labor-hours of input: Labor $50/hour

Labor costs

Week 1 = $12,735/$50 = 254.7

Week 2 = $14,842/$50 = 296.84

Week 3 = $10,603/$50 = 212.06

Week 4 = $9,526/$50 = 190.52
Productivity ratio:

Labor Productivity

Week 1 = Labor Productivity

Week 2 = Labor Productivity

Week 3 = Labor Productivity

Week 4 = Labor Productivity





Improved 16.68%
Ch2




    1. AON network diagram





    1. The critical path is A–C–F–H–J with a completion time of 27 days.


















Earliest

Latest

Earliest

Latest




On Critical







Activity

Duration

Start

Start

Finish

Finish

Slack

Path?







A

2

0

0

2

2

0

Yes







B

4

2

3

6

7

1

No







C

5

2

2

7

7

0

Yes







D

2

6

15

8

17

9

No







E

1

6

16

7

17

10

No







F

8

7

7

15

15

0

Yes







G

3

8

17

11

20

9

No







H

5

15

15

20

20

0

Yes







I

4

15

16

19

20

1

No







J

7

20

20

27

27

0

Yes

6.


    1. The AON diagram is:




    1. The critical path is: B–E–G–H, which takes 29 weeks.

    2. The slack for activity A = 10 – 4 = 6 weeks.

The slack for activity D = 13 – 7 = 6 weeks.

    1. If A takes 5 weeks, then D will have 10 – 5 = 5 weeks’ slack.

7. Web Ventures Inc.



















Activity Statistics




Activity

Optimistic

Most Likely

Pessimistic

Expected Time

Variance







(a)

(m)

(b)

()

()




A

3

8

19

9

7.11




B

12

15

18

15

1.00




C

2

6

16

7

5.44




D

4

9

20

10

7.11




E

1

4

7

4

1.00







8.


  1. The expected activity times (in days) are:










Activity

Optimistic

Most Likely

Pessimistic











A

5

8

11

8.00

1.00







B

4

8

11

7.83

1.36







C

5

6

7

6.00

0.11







D

2

4

6

4.00

0.44







E

4

7

10

7.00

1.00










Path

Total Expected Time







A–C

8 + 6 = 14.00







A–D–E

8 + 4 + 7 = 19.00







B–E

7.83 + 7 = 14.83
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