msc 385 - exam 2
Which of the following is least likely to be included in order costs?
temporary storage of delivered goods
What are the 2 key aspects of process strategy?
Capital intensity (operation) & process flexibility (design)
repetitive processing: product layouts
Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow (sequential)
The quality tool which helps focus on the most important problem areas based on the 80-20 rule is:
Pareto analysis.
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location FC (annual) VC (per unit) Atlanta $ 80,000 $ 20 Phoenix $ 140,000 $ 16 If annual demand is estimated to be 20,000 units, which location should the company select?
Phoenix
How many workstations are needed?
The required number of workstations is a function of Desired output rate Our ability to combine tasks into a workstation
A company needs to locate three departments (X, Y, and Z) in the three areas (I, II, and III) of a new facility. They want to minimize interdepartmental transportation costs, which are expected to be $.50 per load per meter moved. An analyst has prepared the following distances and flow matrices: Distances (meters) From/To I II III I - 10 20 II - 30 III - Flows (loads per week) From/To X Y Z X - 60 90 Y - - 160 Z ---
$2,600
Job Shop
- High variety, Low volume - A job shop usually operates on a relatively small scale - Processing is intermittent - Work includes small jobs, each with somewhat different processing requirements - Example: Repair shop Hospital
Repetitive
- Low variety, High volume - Higher volumes of more standardized goods or services - Repetitive processing - Only slight flexible of equipment is needed - Skills of workers is low - Example: Production lines for computers Assembly lines for automobiles
Continuous
- Low variety, very High volume - Non-discrete, highly standardized output - No need for equipment flexibility - Example: Petroleum products Steel Sugar Flour Services: air monitoring, supplying electricity, internet
Batch
- Moderate variety, Moderate volume - The equipment need not be as flexible as in a job shop, but processing is till intermittent. - The skill level of workers doesn't need to be as high as in a job shop because less variety in products and service. - Example: Bakeries Airlines Classroom lecture
Project
-Variety and volume range from low to high - Non-routine, with a unique set of objectives to be accomplished in a limited time frame. - Example: Consulting Launching a new product Publishing a book
The chair of the operations management department at Quality University wants to construct a p-chart for determining whether the four faculty teaching the basic P/OM course are in control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results: Instructor Number of Failures Prof. A 13 Prof. B 0 Prof. C 11 Prof. D 16 What is the sample proportion of failures (p) for Prof. D?
.16
Why is line balancing important?
1. It allows us to use labor and equipment more efficiently. 2. To avoid fairness issues that arise when one workstation must work harder than another.
In an A-B-C system, the typical percentage of the number of items in inventory that is classified as A items is about:
10
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. What is the economic order quantity for pepperoni?
100 pounds
If a line is balanced with 85 percent efficiency, the "balance delay" will be
15%
A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows: Location FC (annual) VC (per unit) Atlanta $ 80,000 $ 20 Phoenix $ 140,000 $ 16 At what annual output would the company be indifferent between the two locations?
15,000 units
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: Machine Measurements #1 17 15 15 17 #2 16 25 18 25 #3 23 24 23 22 What is the sample mean for machine #1?
16
Refer to this product tree: If 17 Ps are needed, and on-hand inventory consists of 10 As, 15 Bs, 20 Cs, 12 Ms, and 5 Ns, how many Cs are needed?
192
A production line is to be designed for a job with three tasks. The task times are .5 minutes, 1.2 minutes, and .5 minutes. The maximum cycle time in minutes is
2.2
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: Machine Measurements #1 17 15 15 17 #2 16 25 18 25 #3 23 24 23 22 What is the estimate of the mean of the sampling distribution for the sample mean?
20
Refer to this product tree below, if 17 Ps are needed, and no on-hand inventory exists for any items, how many Cs will be needed?
272
In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:
28.
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the length of an order cycle?
4 days
A clothing manufacturer produces clothing in five locations in the United States. In a move to vertical integration, the company is planning a new fabric production plant that will supply fabric to all five clothing plants. The clothing plants have been located on a coordinate system as follows: Location (x, y) A 7, 2 B 4, 7 C 5, 5 D 6, 2 E 8, 4 Shipments of fabric to each plant vary per week as follows: plant A, 200 units; plant B, 400 units; plant C, 300 units; plant D, 300 units; and plant E, 200 units. What is the optimal location for the fabric plant?
5.6, 4.4
The materials manager for a billiard ball maker must periodically place orders for resin, one of the raw materials used in producing billiard balls. She knows that manufacturing uses resin at a rate of 50 kilograms each day, and that it costs $.04 per day to carry a kilogram of resin in inventory. She also knows that the order costs for resin are $100 per order, and that the lead time for delivery is four days. What is the economic order quantity for resin?
500 kilograms
What is control chart?
A time ordered plot of representative sample statistics obtained from an ongoing process (e.g. sample means), used to distinguish between random and nonrandom variability
Why is there a need for location decisions?
Addition of new facilities As part of a marketing strategy to expand markets Growth in demand that cannot be satisfied by expanding existing facilities Depletion of basic inputs requires relocation Shift in markets Cost of doing business at a particular location makes relocation attractive
How do you measure effectiveness?
Balance delay & Effiency
What is the process layout problems?
Distance between locations in meters and interdepartmental work flows( loads per day)
Which of the following is absolutely necessary for successful implementation and operation of MRP? (I) accurate inventory records(II) master schedules(III) accurate holding and backordering costs(IV) accurate bills of materials
I, II, and IV only
In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:
It increases by about 40 percent.
A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process is in control, package weight is normally distributed with a mean of 20 ounces and a standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each: Day Weight (ounces) Monday 23 22 23 24 Tuesday 23 21 19 21 Wednesday 20 19 20 21 Thursday 18 19 20 19 Friday 18 20 22 20 If he uses upper and lower control limits of 22 and 18 ounces, on what day(s), if any, does this process appear to be out of control?
Monday
What is the goal of line balancing?
Obtain task grouping that represent approximately equal time requirements since this minimizes idle time along the line and results in a high utilization of equipment and labor
Location Decisions are based on:
Profit potential or cost and customer service Finding a number of acceptable locations from which to choose Position in the supply chain
Which of the following is not one of the assumptions of the basic EOQ model?
Quantity discounts are available.
Process Flexibility (design)
The degree to which the system can be adjusted to changes in processing requirements due to such factors as product & service design changes, volume changes, changes in technology (1/2) process strategy
What is the purpose of designing product layouts?
The goal of a product layout is to arrange workers or machines in the sequence that operations need to be performed
Designing Process Layouts
The main issue in designing process layouts concerns the relative placement of the departments Measuring effectiveness A major objective in designing process layouts is to minimize transportation cost, distance, or time
line balancing
The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements is called
The output of MRP is:
a schedule of planned orders for all parts and end items.
The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:
bill of materials.
In which type of processing system would gasoline be produced from crude oil?
continuous
A time-ordered plot of sample statistics is called a(n) ______ chart.
control
The EOQ model is most relevant for which one of the following?
determining fixed order quantities
The purpose of control charts is to:
distinguish between random variation and assignable variation in the process.
Which is not a cost of quality?
extended service contract costs
Cause-and-effect diagrams are sometimes called:
fishbone (Ishikawa) diagrams
what is locational cost profit volume analysis?
for a cost analysis, compute the total cost for each alternative location TOTAL COST = FC + V * Q
What is the center of gravity method?
if quantities to be shipped to every location are equal you can obtain the coordinates of the center of gravity by finding the average of the x-coordinates & the average of the y-coordinates
In order for TQM to be successful, it is essential that most of the organization be:
in agreement with the philosophy and its goals.
A stock or store of goods is called a(n):
inventory
The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:
inventory records.
A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below: Location Factor Wt. A B C Labor Cost .4 70 80 90 Transportation Cost .2 80 80 60 Market Access .2 90 70 60 Raw Materials Cost .1 50 70 90 Utility Cost .1 80 90 70 If the selection criterion is to be the greatest composite score, management should choose:
location B.
A quality analyst wants to construct a control chart for determining whether three machines, all producing the same product, are in control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results: Machine Measurements #1 17 15 15 17 #2 16 25 18 25 #3 23 24 23 22 For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?
machine #1
The MRP input stating which end items are to be produced, when they are needed, and what quantities are needed, is the:
master schedule.
What is the major objective in measuring effectiveness in designing process layouts?
minimize transportation cost, distance, or time
Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $24 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered?
once a month
What is efficiency?
percentage of busy time of a line
What is balance delay?
percentage of idle time of a line
Which one of the following is not an input in an MRP system?
planned-order schedules
non-repetitive processing: process layouts
process layouts: layouts that can handle varied processing requirements
A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):
product structure tree.
Which of the following is typically the largest of all inventory costs?
purchase cost
A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supply of raw materials, which has a weight of .50, transportation cost, which has a weight of .40, and labor cost, which has a weight of .10. The scores for raw materials, transportation, and labor are for Akron 60, 80, and 70, respectively; for Boston 70, 50, and 90, respectively. Given this information and a minimum acceptable composite score of 75, we can say that the manager should:
reject both locations.
Job shops tend to be __________ while continuous processes tend to be __________.
small scale and flexible; large-scale and inflexible
How much to inspect?
the amount of inspection is optimal when the sum of the costs of inspection and passing defectives is minimized
Facilities Layout
the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system
What is cycle time?
the maximum time allowed at each workstation to complete its set of tasks on a unit
Capital Intensity (operations)
the mix of equipment & labor that will be used by the organization (1/2 of process strategy)
Cycle time establishes:
the output rate of a line
What is line balancing?
the process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements
What are mean control charts?
they are used to monitor the central tendency of a process and establishing control limits