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
-
Suds and Duds Laundry
-
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
|
-
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.
-
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 .
-
A $14 reduction in material costs is 
-
A $14 reduction in labor costs is 
-
A $14 reduction in overhead is $14/$50 = 28.00%
-
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
|
-
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
-
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
-
-
AON network diagram
-
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.
-
The AON diagram is:
-
The critical path is: B–E–G–H, which takes 29 weeks.
-
The slack for activity A = 10 – 4 = 6 weeks.
The slack for activity D = 13 – 7 = 6 weeks.
-
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.
-
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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