SCMS 7313 Test 1

Three lamps have probabilities of .90, .80, and .70. One light is needed for success - 2 lamps are considered backups

1 - [(1-.90) x (1-.80) x (1-.70)] = .994

Process Technology

Methods, procedures, and equipment used to produce goods and provide services

Remanufacturing

Refurbishing used products by replacing worn-out or defective components

Standardization

extent to which a product, service, or process lacks variety

system operation

involves management of personnel, inventory planning and control, scheduling, project management, and quality assurance

lead time

time interval between ordering a good/service and and receiving it

Sustainability

using resources in ways that do not harm ecological systems that support human existence

2 lamps in a room. One has a probability of working .90 and other of .80. One lamp is a backup.

.90 + (1 - .90) x .80 = .98 or .80 + (1-.80) x .90 = .98

Degree of Newness

1. Modification of an existing product/service. 2. Expansion of an existing product/service. 3. Clone of a competitor's product/service. 4. New product/service.

what are the 3 key questions in capacity planning?

1. what kind of capacity is needed? 2. how much is needed to match demand? 3. when is it needed?

if productivity increased from 80 to 84, growth rate would be

84-80/80 X 100 = 5%

if a system has 8 components in a series, each with a reliability of .99

= .99x8 = .923 reliability

availability

= MTBF/MTBF + MTR MTBF = mean time between failures MTR = meant time to repair, including waiting time

productivity growth

= current productivity - previous productivity / previous productivity

Productivity

= output / input

Modular Design

A form of standardization in which component parts are grouped into modules that are easily replaced or interchanged

Productivity

A measure of the effective use of resources, usually expressed as the ratio of output to input

product life cycle management (PLM)

A systematic approach to managing the series of changes a product goes through, from its conception to its end-of-life.

Kano Model

A technique that categorizes customer requirements into three types: 1. Delighters 2. Satisfiers 3. Dissatisfiers.

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who together produced an average of 80 carts per hour. Workers receive $10 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10 per hour, while output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 3 decimal places.) c. Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.)

A) Before 16 carts per worker per hour After 21 carts per worker per hour p = 80 carts / 5 workers = 16 p = 84 carts / 4 workers = 21 B) Before 0.889 carts/dollar cost After 0.933 carts/dollar cost mfp = output / labor cost + material cost + overhead Before: 5 workers x $10 = $50 + $40 (machine) = $90 80 carts / $90 = .889 After: 4 workers x $10 = $40 + $50 (increase in cost machine) = $90 84 carts / $90 = .933 C) productivity growth = current - previous productivity / previous productivity a. Labor productivity increased by 31.20% b. Multifactor productivity increased by 5.00% a. 21-16/16 = 0.3125 = 31.20% b. 84-80/80 = 5%

The guidance system of a ship is controlled by a computer that has three major modules. In order for the computer to function properly, all three modules must function. Two of the modules have reliabilities of 0.97, and the other has a reliability of 0.99. a. What is the reliability of the computer? (Round your answer to 4 decimal places.) b. A backup computer identical to the one being used will be installed to improve overall reliability. Assuming the new computer automatically functions if the main one fails, determine the resulting reliability. (Round your intermediate calculations and final answer to 4 decimal places.) c. If the backup computer must be activated by a switch in the event that the first computer fails, and the switch has a reliability of 0.98, what is the overall reliability of the system? (Both the switch and the backup computer must function in order for the backup to take over.) (Round your intermediate calculations and final answer to 4 decimal places.)

A. .97 x .97 x .99 = 0.9315 B. (1st computer reliability) + (1 - 1st computer reliability)(1st computer reliability) is (0.9315) + (1-0.9315)(0.9315) = .9955 C. (.98)(.97)(.97)(.99) = 0.9129 (1st computer reliability) + (1 - 1st computer reliability)(2nd computer reliability) is (0.9315) (1-0.9315)(0.9129) = .9940

A property title search firm is contemplating using online software to increase the productivity of the researcher performing the search. Currently, an average of 40 minutes is needed to do a title search. The researcher cost is $2 per minute. Clients are charged a fee of $400. Company A's software would reduce the average search time by 10 minutes, at a cost of $3.50 per search. Company B's software would reduce the average search time by 12 minutes at a cost of $3.60 per search. a. Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places.) b. Which option would have the highest productivity in terms of revenue per dollar of input?

A. Current: 40 x 2 = 80 400/80 = $5 Company A: 30 x 2 + 3.50 = 63.50 400/63.50 = 6.30 Company B: 28 x 2 + 3.60 = 59.60 400/59.60 = 6.71 B. Company B

One of the industrial robots designed by a leading producer of servomechanisms has four major components. Components' reliabilities are 0.98, 0.95, 0.94, and 0.90. All of the components must function in order for the robot to operate effectively. a. Compute the reliability of the robot. (Round your answer to 4 decimal places.) b1. Designers want to improve the reliability by adding a backup component. Due to space limitations, only one backup can be added. The backup for any component will have the same reliability as the unit for which it is the backup. Compute the reliability of the robot. (Round your answers to 4 decimal places.) b2. Which component should get the backup in order to achieve the highest reliability? c. If one backup with a reliability of 0.92 can be added to any one of the main components, which component should get it to obtain the highest overall reliability?

A. .0.98 x .0.95 x 0.94 x 0.90 = 0.7876 B1. Component 1: Step 1: .98+(1-.98)(.98)=0.9996 Step 2: .9996*.95*.94 *.90 =0.8034 Component 2: Step 1: .95+(1-.95)(.95)=0.9975 Step 2: 0.9975*.98*.94*.90=0.8270 Component 3: Step 1: .94+(1-.94)(.94)=0.9964 Step 2: 0.9964*.98*.95*.90=0.8349 Component 4: Step 1: .90+(1-.90)(.90)=0.9900 Step 2: 0.9900*.98*.95*.94=.8664 B2: Component 4 C: Component 4

A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents. FC = 9,200 R = .90 v = .70 a. What volume per month is required in order to break even? b-1. What profit would be realized on a monthly volume of 61,000 units? b-2. What profit would be realized on a monthly volume of 87,000 units? c. What volume is needed to obtain a profit of $16,000 per month? d. What volume is needed to provide a revenue of $23,000 per month? (Round your answer to the nearest whole number.)

A. Q bep = FC/ R - v 9200/ .90-.70 = 46,000 B1. p = Q(R-v) - FC 61,000 (.90 - .70) - 9200 = 3,000 B2. p = Q(R-v) - FC 87,000 (.90 - .70) - 9200 = 8,200 C. Q = P + FC / R - v 16000 + 9200 / .90 - .70 = 126,000 D. Rev = 23,000 23000 / .90 = 25,556

model

An abstraction of reality. A simplified representation of something

Quality Function Deployment (QFD)

An approach that integrates the "voice of the customer" into both product and service development

order winners

Characteristics of an organization's goods or services that cause it to be perceived as better than the competition

Reverse Engineering

Dismantling and inspecting a competitor's product to discover product improvements

competitiveness

How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services

Time-based strategies

Strategies that focus on the reduction of time needed to accomplish tasks

Reliability

The ability of a product, part, or system to perform its intended function under a prescribed set of conditions

Operations Management

The management of systems or processes that create goods and/or provide services

Delayed Differentiation

The process of producing, but not quite completing, a product or service until customer preferences are known

normal operating conditions

The set of conditions under which an item's reliability is specified

Pareto Phenomenon

a few factors account for a high percentage of the occurrence of some events

service blueprint

a method used in service design to describe and analyze a proposed service

Six Sigma

a process for reducing costs, improving quality, and increasing customer satisfaction

Uniform Commercial Code

a product must be suitable for its intended purpose

ethical framework

a sequence of steps intended to guide thinking and subsequent decision or action

system

a set of interrelated parts that must work together

ethics

a standard of behavior that guides how one should act in various situations

mass customization

a strategy of producing basically standardized goods, but incorporating some degree of customization

SWOT

analysis of strengths, weaknesses, opportunities, and threats

R&D efforts may involve...

basic research, applied research, development1

Concurrent Engineering

bringing engineering design and manufacturing personnel together early in the design phase

outsourcing

buying goods or services instead of producing or providing them in-house

Order Qualifiers

characteristics that customers perceive as minimum standards of acceptability to be considered as a potential for purchase

e-commerce

consumer-to-business transactions

development

converts the results of applied research into useful commercial applications

system design

decisions that related to a system capacity, location of facilities, arrangement of departments, placement of equipment within physical structures, product and service planning and the acquisition of equipment

Designed for Disassembly (DFD)

design so that used products can be easily taken apart

Design for recycling (DFR)

design that facilitates the recovery of materials and components in used products for reuse

Design for Assembly (DFA)

design that focuses on reducing the number of parts in a product and on assembly methods and sequence

Robust Design

design that results in products or services that can function over a broad range of conditions

independent events

events who's occurrence or nonoccurence does not influence each other

value analysis

examination of the function of parts and materials in an effort to reduce cost and/or improve product performance

is item cost justified in certain system. Probability of .98. System failure would involve a cost of $20,000. For a cost of $100, switch could be added to auto back up in event of failure. should backup be added if probability is .98?

no probability of switch so assume 100% 20,000 X (1 - .98) = $400 not failing .98 + .2 (.98) = .9996 probability of failure would be 1 - .9996 = .0004. expected cost of failure = $100 + 20,000 (.0004) = $108 adding backup is cost justifiable

applied research

objective of achieving commercial applications

process

one or more actions that transform inputs into outputs

research and development (R&D)

organized efforts to increase scientific knowledge or product innovation

multifactor productivity

output / labor + materials + overheard

interchangeable parts

parts of a product made to such precision that they do not have to be custom fitted

goods

physical items produced by business organizations

strategies

plans for achieving organizational goals

1 item has a probability of working .90 and the other working .80.

probability that both will work .90 x .80 = .72

computer-aided design (CAD)

product design using computer graphics

goals

provide detail and scope of the mission

recycling

recovering materials for future use

values of e ^-t/mtbf

section 4S.2

failure

situation in which a product, part, or system does not perform as intended

service

something that is done to or for a customer

mission statement

states the purpose of an organization

Quality-based strategies

strategy that focuses on quality in all phases of an organization

craft production

system in which highly skilled workers use simple, flexible tools to produce small quantities of customized goods

mass production

system in which low-skilled workers use specialized machinery to produce high volumes of standardized goods

lean systems

systems that uses minimal amounts of resources to produce a high volume of high-quality goods with some variety

Reliability

the ability of a product, part, or system to perform its intended function under a prescribed set of conditions

Agility

the ability of an organization to respond quickly to demands or opportunities

Technology

the application of scientific discoveries to the development and improvement of products and services and operations processes

Operations Strategy

the approach, consistent with the organization strategy, that is used to guide the operations function

Cradle-to-grave assessment

the assessment of the environmental impact of a product or service throughout its useful life

Mean Time Between Failures (MTBF)

the average length of time between failures of a product or component

division of labor

the breaking up of a production process into small tasks, so that each worker performs a small portion of the overall job

Manufacturability

the capability of an organization to produce an item at an acceptable profit

Serviceability

the capability of an organization to provide a service at an acceptable cost or profit

product bundle

the combination of goods and services provided to a customer

design for manufacturing (DFM)

the designing of products that are compatible with an organization's capabilities

value-added

the difference between the cost of inputs and the value or price of outputs

Service Delivery System

the facilities, processes, and skills needed to provide a service

availibility

the fraction of time a piece of equipment is expected to be available for operation

tactics

the methods and actions taken to accomplish strategies

environmental scanning

the monitoring of events and trends that present threats or opportunities for a company

basic research

the objective of advancing the state of knowledge about a subject, without any near term expectation for commercial applications

service package

the physical resources needed to perform the service, the accompanying goods, and the explicit and implicit services included

suppose that an item has a reliability of .90 means that 90% probability of functioning as intense either when needed or over its life span.

the probability it will fail is 1 - .90 = .10 or 10% 1 in every 10 items will fail

mission

the reason for the existence of an organization

product liability

the responsibility of a manufacturer for any injuries or damages caused by a faulty product

supply chain

the sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service

core competencies

the special attributes or abilities that give an organization a competitive edge

redundancy

the use of backup components to increase reliability