Chapter 02 - Competitiveness, Strategy, and Productivity3. (1) (2) (3) (4) (5) (6) (7)Week Output WorkerCost@$12x40Overhead********MaterialCost@$6TotalCostMFP(2) ÷ (6)1 30,000 2,880 4,320 2,700 9,900 3.032 33,600 3,360 5,040 2,820 11,220 2.993 32,200 3,360 5,040 2,760 11,160 2.894 35,400 3,840 5,760 2,880 12,480 2.84*refer to solved problem #2Multifactor productivity dropped steadily from a high of 3.03 to about 2.84.4. a. Before: 80 ÷ 5 = 16 carts per worker per hour.After: 84 ÷ 4 = 21 carts per worker per hour.b. Before: ($10 x 5 = $50) + $40 = $90; hence 80 ÷ $90 = .89 carts/$1.After: ($10 x 4 = $40) + $50 = $90; hence 84 ÷ $90 = .93 carts/$1.c. Labor productivity increased by 31.25% ((21-16)/16).Multifactor productivity increased by 4.5% ((.93-.89)/.89).*Machine ProductivityBefore: 80 ÷ 40 = 2 carts/$1.After: 84 ÷ 50 = 1.68 carts/$1.Productivity increased by -16% ((1.68-2)/2)Chapter 03 - Product and Service Design6. Steps for Making Cash Withdrawal from an ATM1. Insert Card: Magnetic Strip Should be Facing Down2. Watch Screen for Instructions3. Select Transaction Options:1) Deposit2) Withdrawal3) Transfer4) Other4. Enter Information:1) PIN Number2) Select a Transaction and Account3) Enter Amount of Transaction5. Deposit/Withdrawal: 1) Deposit —place in an envelop e (which you’ll find near or in the ATM) andinsert it into the deposit slot2) Withdrawal —lift the “Withdrawal Door,” being careful to remove all cash6. Remove card and receipt (which serves as the transaction record)8.Chapter 04 - Strategic Capacity Planning for Products and Services2. %80capacityEffective outputActual Efficiency ==Actual output = .8 (Effective capacity) Effective capacity = .5 (Design capacity) Actual output = (.5)(.8)(Effective capacity) Actual output = (.4)(Design capacity) Actual output = 8 jobs Utilization = .4capacityDesign outputActual =n Utilizatiojobs 204.8capacity Effective output Actual Capacity Design ===10. a. Given: 10 hrs. or 600 min. of operating time per day.250 days x 600 min. = 150,000 min. per year operating time.Total processing time by machineProductABC 1 48,000 64,000 32,000 2 48,000 48,000 36,000 3 30,000 36,000 24,000 460,000 60,000 30,000 Total 186,000208,000122,000machine181.000,150000,122machine 238.1000,150000,208machine224.1000,150000,186≈==≈==≈==C B A N N NYou would have to buy two “A” machines at a total cost of $80,000, or two “B” machines at a total cost of $60,000, or one “C” machine at $80,000.b.Total cost for each type of machine:A (2): 186,000 min ÷ 60 = 3,100 hrs. x $10 = $31,000 + $80,000 = $111,000B (2) : 208,000 ÷ 60 = 3,466.67 hrs. x $11 = $38,133 + $60,000 = $98,133 C(1): 122,000 ÷ 60 = 2,033.33 hrs. x $12 = $24,400 + $80,000 = $104,400Buy 2 Bs —these have the lowest total cost.Chapter 05 - Process Selection and Facility Layout3.Desired output = 4Operating time = 56 minutesunit per minutes 14hourper units 4hourper minutes 65output Desired time Operating CT ===Task # of Following tasksPositional WeightA 4 23B 3 20C 2 18D 3 25E 2 18F 4 29G 3 24H 1 14 I5a. First rule: most followers. Second rule: largest positional weight.Assembly Line Balancing Table (CT = 14)b. First rule: Largest positional weight.Assembly Line Balancing Table (CT = 14)c. %36.805645stations of no. x CT time Total Efficiency ===4. a. l.2. Minimum Ct = 1.3 minutesTask Following tasksa 4b 3c 3d 2e 3f 2g 1h3. percent 54.11)3.1(46.CT x N time)(idle percent Idle ==∑=4. 420 min./day 323.1 ( 323)/1.3 min./OT Output rounds to copiers day CT cycle=== b. 1. inutes m 3.224.6N time Total CT ,6.4 time Total ==== 2. Assign a, b, c, d, and e to station 1: 2.3 minutes [no idle time]Assign f, g, and h to station 2: 2.3 minutes3. 420182.6 copiers /2.3OT Output day CT ===4.420 min./dayMaximum Ct is 4.6. Output 91.30 copiers /4.6 min./day cycle==7.Chapter 06 - Work Design and Measurement3. Element PR OT NT AF job ST1 .90.46.414 1.15 .4762 .85 1.505 1.280 1.15 1.4723 1.10.83.913 1.15 1.05041.00 1.16 1.160 1.15 1.334Total4.3328. A = 24 + 10 + 14 = 48 minutes per 4 hours.min 125.720.11x70.5ST .min 70.5)95(.6NT 20.24048A =-=====9. a. Element PR OT NT A ST1 1.10 1.19 1.309 1.15 1.5052 1.15 .83 .955 1.15 1.09831.05.56.588 1.15 .676b.01.A 00.2z 034.s 83.x ==== 222(.034)67.12~68.01(.83)zs n observations ax ⎛⎫⎛⎫===⎪ ⎪⎝⎭⎝⎭c. e = .01 minutes 47 to round ,24.4601.)034(.2e zs n 22=⎪⎭⎫⎝⎛=⎪⎭⎫ ⎝⎛=Chapter 07- Location Planning and Analysis1. Factor Local bank Steel mill Food warehouse Public school1. Convenience forcustomers H L M–H M–H2. Attractiveness ofbuilding H L M M–H3. Nearness to rawmaterials L H L M4. Large amounts ofpower L H L L5. Pollution controls L H L L6. Labor cost andavailability L M L L7. Transportationcosts L M–H M–H M8. Constructioncosts M H M M–HLocation (a) Location (b)4. Factor A B C Weight A B C1. Business Services 9 5 5 2/9 18/9 10/9 10/92. Community Services 7 6 7 1/9 7/9 6/9 7/93. Real Estate Cost 3 8 7 1/9 3/9 8/9 7/94. Construction Costs 5 6 5 2/9 10/9 12/9 10/95. Cost of Living 4 7 8 1/9 4/9 7/9 8/96. Taxes 5 5 5 1/9 5/9 5/9 4/97. Transportation 6 7 8 1/9 6/9 7/9 8/9Total 39 44 45 1.0 53/9 55/9 54/9 Each factor has a weight of 1/7.a. Composite Scores 39 44 45 7 7 7B orC is the best and A is least desirable.b. Business Services and Construction Costs both have a weight of 2/9; the other factors eachhave a weight of 1/9.5 x + 2 x + 2 x = 1 x = 1/9c. Composite ScoresA B C 53/9 55/9 54/9B is the best followed byC and then A.5.Locationx yA 3 7B 8 2C 4 6D 4 1E 6 4Totals 25 20-x =∑x i= 25 = 5.0 -y =∑y i= 20 = 4.0 n 5 n 5Hence, the center of gravity is at (5,4) and therefore the optimal location.Chapter 08 - Management of Quality1. ChecksheetWork Type FrequencyLube and Oil 12Brakes 7Tires 6Battery 4Transmission 1Total 30ParetoLube & Oil Brakes Tires Battery Trans.2 .The run charts seems to show a pattern of errors possibly linked to break times or the end of the shift. Perhaps workers are becoming fatigued. If so, perhaps two 10 minute breaks in the morning and again in the afternoon instead of one 20 minute break could reduce some errors. Also, errors are occurring during the last few minutes before noon and the end of the shift, and those periods should also be given management’s attention.4break lunch break3 2 1 0• • •• • • ••• • • ••••••• ••• •• • •• • •••Chapter 9 - Quality Control4. Sample Mean Range179.48 2.6 Mean Chart: =X ± A 2-R = 79.96 ± 0.58(1.87) 2 80.14 2.3 = 79.96 ± 1.083 80.14 1.2UCL = 81.04, LCL = 78.884 79.60 1.7 Range Chart: UCL = D 4-R = 2.11(1.87) = 3.95 5 80.02 2.0LCL = D 3-R = 0(1.87) = 0680.381.4[Both charts suggest the process is in control: Neither has any points outside the limits.]6. n = 200 Control Limits = np p p )1(2-±Thus, UCL is .0234 and LCL becomes 0.Since n = 200, the fraction represented by each data point is half the amount shown. E.g., 1 defective = .005, 2 defectives = .01, etc.Sample 10 is too large.7. 857.714110c ==Control limits: 409.8857.7c 3c ±=± UCL is 16.266, LCL becomes 0.All values are within the limits.14. Let USL = Upper Specification Limit, LSL = Lower Specification Limit,X = Process mean, σ = Process standard deviationFor process H:}{capablenot ,0.193.93.04.1 ,938.min 04.1)32)(.3(1516393.)32)(.3(1.14153<===-=σ-=-=σ-pk C X USL LSL X 0096.)200(1325==p 0138.0096.200)9904(.0096.20096.±=±=For process K:.1}17.1,0.1min{17.1)1)(3(335.3630.1)1)(3(30333===-=σ-=-=σ- C X USL LSL X pk Assuming the minimum acceptable pk C is 1.33, since 1.0 < 1.33, the process is not capable.For process T:33.1}33.1,67.1min{33.1)4.0)(3(5.181.20367.1)4.0)(3(5.165.183===-=σ-=-=σ- C X USL LSL X pk Since 1.33 = 1.33, the process is capable.Chapter 10 - Aggregate Planning and Master Scheduling7. a.No backlogs are allowedPeriodForecast Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Regular Overtime Subcontract Inventory Totalb. Level strategyPeriodForecastOutputRegularOvertimeSubcontractOutput - ForecastInventoryBeginningEndingAverageBacklogCosts:RegularOvertimeSubcontractInventoryBacklogTotal8.PeriodForecastOutputRegularOvertimeSubcontractOutput- ForecastInventoryBeginningEndingAverageBacklogCosts:RegularOvertimeSubcontractInventoryBacklogTotalChapter 11 - MRP and ERP1. a. F: 2 G: 1 H: 1J: 2 x 2 = 4 L: 1 x 2 = 2 A: 1 x 4 = 4D: 2 x 4 = 8 J: 1 x 2 = 2 D: 1 x 2 = 2Totals: F = 2; G = 1; H = 1; J = 6; D = 10; L = 2; A = 44. Master Schedule10. Week 1 2 3 4Material 40 80 60 70Week 1 2 3 4Labor hr. 160 320 240 280Mach. hr. 120 240 180 210a. Capacity utilizationWeek 1 2 3 4Labor 53.3% 106.7% 80% 93.3%Machine 60% 120% 90% 105%b. C apacity utilization exceeds 100% for both labor and machine in week 2, and formachine alone in week 4.Production could be shifted to earlier or later weeks in which capacity isunderutilized. Shifting to an earlier week would result in added carrying costs;shifting to later weeks would mean backorder costs.Another option would be to work overtime. Labor cost would increase due toovertime premium, a probable decrease in productivity, and possible increase inaccidents.Chapter 12 - Inventory Management2. The following table contains figures on the monthly volume and unit costs for a random sample of 16 items for a list of 2,000 inventory items.a. See table.b. To allocate control efforts.c. It might be important for some reason other than dollar usage, such as cost of astockout, usage highly correlated to an A item, etc.3. D = 1,215 bags/yr. S = $10 H = $75a. bags HDS Q 187510)215,1(22===b. Q/2 = 18/2 = 9 bagsc.orders ordersbags bags Q D 5.67/ 18 215,1== d . S QD H 2/Q TC +=350,1$675675)10(18215,1)75(218=+=+=e. Assuming that holding cost per bag increases by $9/bag/yearQ ==84)10)(215,1(217 bags71.428,1$71.714714)10(17215,1)84(217=+=+=TCIncrease by [$1,428.71 – $1,350] = $78.714.D = 40/day x 260 days/yr. = 10,400 packagesS = $60 H = $30a. oxes b 20496.2033060)400,10(2H DS 2Q 0====b. S QD H 2Q TC +=82.118,6$82.058,3060,3)60(204400,10)30(2204=+=+=c. Yesd. )60(200400,10)30(2200TC 200+=TC 200 = 3,000 + 3,120 = $6,1206,120 – 6,118.82 (only $1.18 higher than with EOQ, so 200 is acceptable.)7.H = $2/month S = $55D 1 = 100/month (months 1–6)D 2 = 150/month (months 7–12)a. 16.74255)100(2Q :D H DS2Q 010===83.90255)150(2Q :D 02==b. The EOQ model requires this.c. Discount of $10/order is equivalent to S – 10 = $45 (revised ordering cost)1–6 TC74 = $148.32180$)45(150100)2(2150TC 145$)45(100100)2(2100TC *140$)45(50100)2(250TC 15010050=+==+==+=7–12 TC 91 =$181.66195$)45(150150)2(2150TC *5.167$)45(100150)2(2100TC 185$)45(50150)2(250TC 15010050=+==+==+=10. p = 50/ton/day u = 20 tons/day200 days/yr.S = $100 H = $5/ton per yr.a. bags] [10,328 tons 40.5162050505100)000,4(2u p p H DS 2Q 0=-=-=b. ]bags 8.196,6 .approx [ tons 84.309)30(504.516)u p (P Q I max ==-=Average is92.154248.309:2I max =tons [approx. 3,098 bags] c. Run length =days 33.10504.516P Q == d. Runs per year = 8] approx .[ 7.754.516000,4QD == e. Q ' = 258.2TC =S QD H 2I max + TC orig. = $1,549.00 TC rev. = $ 774.50Savings would be $774.50D= 20 tons/day x 200 days/yr. = 4,000 tons/yr.15. RangeP H Q D = 4,900 seats/yr. 0–999 $5.00 $2.00 495 H = .4P 1,000–3,999 4.95 1.98 497 NF S = $50 4,000–5,999 4.90 1.96 500 NF 6,000+ 4.85 1.94503 NFCompare TC 495 with TC for all lower price breaks:TC 495 =495 ($2) + 4,900($50) + $5.00(4,900) = $25,490 2 495 TC 1,000 = 1,000 ($1.98) + 4,900($50) + $4.95(4,900) = $25,4902 1,000 TC 4,000 = 4,000 ($1.96) + 4,900($50) + $4.90(4,900) = $27,9912 4,000 TC 6,000 = 6,000 ($1.94) + 4,900($50) + $4.85(4,900) = $29,6262 6,000Hence, one would be indifferent between 495 or 1,000 units 22. d = 30 gal./day ROP = 170 gal. LT = 4 days,ss = Z σd LT = 50 galRisk = 9% Z = 1.34 Solving, σd LT = 37.31 3% Z = 1.88, ss=1.88 x 37.31 = 70.14 gal.Chapter 13 - JIT and Lean Operations1. N = ?N = DT(1 + X)D = 80 pieces per hourC T = 75 min. = 1.25 hr. = 80(1.25) (1.35)= 3C = 45 45X = .35QuantityTC4. The smallest daily quantity evenly divisible into all four quantities is 3. Therefore, usethree cycles.Product Daily quantity Units per cycleA 21 21/3 = 7B 12 12/3 = 4C 3 3/3 = 1D 15 15/3 = 55.a. Cycle 1 2 3 4A 6 6 5 5B 3 3 3 3C 1 1 1 1D 4 4 5 5E 2 2 2 2 b. Cycle 1 2A 11 11B 6 6C 2 2D 8 8E 4 4c. 4 cycles = lower inventory, more flexibility2 cycles = fewer changeovers7. Net available time = 480 – 75 = 405. Takt time = 405/300 units per day = 1.35 minutes. Chapter 15 - Scheduling6. a. FCFS: A–B–C–DSPT: D–C–B–AEDD: C–B–D–ACR: A–C–D–BFCFS: Job time Flow time Due date DaysJob (days) (days) (days) tardyA 14 14 20 0B 10 24 16 8C 7 31 15 16D 6 37 17 2037 106 44SPT: Job time Flow time Due date Days Job (days) (days) (days) tardyD 6 6 17 0C 7 13 15 0B 10 23 16 7A 14 37 20 1737 79 24EDD:Job D has the lowest critical ratio therefore it is scheduled next and completed on day 27.b.ardi Flow time Average flow time Number of jobsDays tardy Average job t ness Number of jobs Flow timeAverage number of jobs at the center Makespan==∑=FCFS SPT EDD CR26.50 19.75 21.00 24.75 11.0 6.00 6.00 9.25 2.86 2.142.272.67c. SPT is superior.9.Thus, the sequence is b-a-g-e-f-d-c.。