Management Homework Problems and Answers

Homework Problems and Answers Chapter Two: 1) Scheduling personnel is an example of operations management: a) Operational decision 2) The fundamental purpose for the existence of any organization is described by its: a) Mission statement 3) In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per five-day week. What is the labor productivity of this operation? a) 15 chairs/worker a day b) Explanation: 450/5= 90 90/6=15 4) ___________ is generally used to facilitate an organization strategy that emphasizes low cost. a) Standardization 5) Careful planning must be used with technology, otherwise, there could be a(n) _____ in productivity. a) Improvement 6) In the 1970s and early 1980s in the United States, organizations concentrated on: a) Marketing and financial strategies 7) Productivity growth can be calculated by: a) ((current productivity - previous productivity) ➗(previous productivity)) X 100 8) Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each eight-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by: a) 50 percent (see above for formula) 9) Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time. a) Order winners; order qualifiers 10) *see other sheets 11) *see other sheets 12) *see other sheets 13) *see other sheets 14) *see other sheets Chapter 4: 1) List the steps involved in getting gasoline into your car for full service and for selfservice. Assume that paying cash is the only means of payment. a) Self-service comprises the following order of steps. i) Customer selects station ii) Select octane level iii) Customer pumps desired amount of gas and performs other services iv) Pay cashier for gas and other products inside station v) Return to auto and drive off b) Full service comprises the following order of steps i) Customer selects station ii) Tell attendant type and amount of gas and services desired iii) Attendant pumps desired amount of gas and performs other services iv) Pay attendant for gas and other services v) Drive off 2) Refer to the figure below relating to a commercial printer (customer) and the company that supplies the paper. i) Paper width ii) Paper thickness iii) Roll roundness iv) Tensile strength b) The following table presents technical requirements and customer requirements for the output of a laser printer. Determine which single technical requirement likely has the greatest impact on each individual customer requirement (only choose one technical requirement for each customer requirement). Use "√" for correct answers and 'x' for other options. 3) Watch the video. Which of these statemtns is true (choose all that apply) a) The key to mass cstomization is postponement b) Postponement depends upon the use of standardization and modularization 4) It is actually possible to postpone the point of differentiation outside of the factory and further down the supply chain a) True 5) Beginning production based on a forecast of customer demand is called _____ strategy a) Push 6) Design for Manufacturing and Assembly considers: a) Ease of production b) Product Mix c) Costs 7) Which of these is not a principle of DFMA? a) Design unique processes 8) “Design fo the Environment” is concerned with packaging materials and designs. a) True 9) A product is composed of four parts. In order for the product to function properly in a given situation, each of the parts must function. TWo of the parts have a 0.89 probability of functioning, and two have a probability of .73. What is the overall probability that the product will function properly? a) .4221 (see other sheet) 10) A Web server has 6 major components that must all function in order for it to operate as intended. Assuming that each component of the system has the same reliability, what is the minimum reliability each one must have in order for the overall system to have a reliability of .91? (Round your answer to 3 decimal places.) a) 0.984 (see other sheet) 11) Fill the following table for cookies sold in a bakery. Indicate by a checkmark which customer requirements and which technical requirements are related. Use "√" to show the relation and "x" to indicate that there is no relation. Chapter Nine: 1) Prepare a check sheet for the above car repair shop data a) *see other sheet 2) Select a appropriate Pareto diagram for the above car repair shop data: a) Graph that is descending straight down 3) Using the data, prepare a check sheet for the problem types for each customer type. a) *see other sheet 4) Select a appropriate Pareto diagram for the Residential customers. a) Graph that is descending down (10, 6, 3, 3) 5) Select a appropriate Pareto diagram for the Commercial customers. a) Graph that is descending down (7, 7, 4, 1) 6) Drag each tool below into the box corresponding to the step in the DMAIC cycle where it is most likely to be used. a) Define i) Flow charts b) Measure i) Check sheets c) Analyze i) Pareto Charts ii) Cause-and- Effect Diagrams d) Improve i) Brainstorming ii) Quality Circles e) Control i) Control Charts for New Progress 7) A visual representation of the steps in a process is known as a a) Flow chart 8) Determining the baseline performance occurs in the Six Sigma DMAIC step known as: a) Measure 9) A tool that is commonly used to help facilitate data collection is the: a) Check sheet 10) The tool that is used to separate the most important problems regarding a process from problems of less importance is the a) Pareto Chart 11) Control charts show plotted values of a statistic a) On a time-ordered chart 12) Factors that might be causing a problem are grouped into categories such as Methods, Materials, People and Equipment in a a) Fishbone diagram Chapter Fourteen: 1) A manager wants to determine the number of containers to use for incoming parts for a kanban system to be installed next month. The process will have a usage rate of 75 pieces per hour. Because the process is new, the manager has assigned an inefficiency factor of . 20. Each container holds 45 pieces and it takes an average of 70 minutes to complete a cycle. a) *see other sheet 2) A machine cell uses 195 pounds of a certain material each day. Material is transported in vats that hold 25 pounds each. Cycle time for the vats is about 2.25 hours. The manager has assigned an inefficiency factor of .10 to the cell. The plant operates on an eight-hour day. a) *see other sheet 3) Given this set of daily service operations, and assuming a processing order of A-B-C-DE: a) Determine the number of repetitions for each service if four cycles are used. i) *see other sheet 4) Compute the takt time for a system where the total time per shift is 420 minutes, there is one shift, and workers are given 3 14-minute breaks and 40 minutes for lunch. Daily demand is 358 units. a) *see other sheet 5) Compute the takt time for a service system that intended to perform a standardized service. The system will have a total work time of 366 minutes per day, excluding two 18-minute breaks, and an hour for lunch. The service system must process 96 jobs a day. a) *see other sheet 6) Determine the number of containers required to support a lean process which uses 170 parts per hour. The time for a container to complete a cycle (move, wait, empty, return, fill) is 0.5 hours. A single container has a capacity of 3 parts. An inefficiency factor of 0.09 is currently being used a) *see other sheet 7) Which of the following is not a principle regarding the way lean systems function? a) Both IV and VI (increasing forecast accuracy & optimizing on setup costs with long production runs) 8) Lean systems often rely on a method of overhead allocation known as a) Activity-based costing 9) Which one of the following is not one of the building blocks that is the foundation of the lean philosophy? a) Kanban 10) The kaizen philosophy applies to a) Waste 11) With regard to suppliers, lean systems typically involve a) Long-term relationships Chapter Ten: 1) An automatic filling machine is used to fill 1-liter bottles of cola. The machine’s output is approximately normal with a mean of 0.91 liter and a standard deviation of 0.05 liter. Output is monitored using means of samples of 30 observations. Use Table-A. a) *see HW sheet 2) The time in minutes to replace vehicle wiper blades at a service center was monitored using a mean and a range chart. Six samples of n = 20 observations were obtained and the sample means and ranges were computed: a) * see HW sheet 3) Using samples of 194 credit card statements, an auditor found the following: Use TableA. a) *see HW sheet 4) The postmaster of a small western town receives a certain number of complaints each day about mail delivery. a) * see HW sheet 5) For each of the accompanying control charts, analyze the data using both median and up/down run tests with z = ± 1.96 limits. a) *see HW sheet 6) A process that produces computer chips has a mean of .04 defective chips and a standard deviation of .003 chips. The allowable variation is from .033 to .047 defective. a) *see HW sheet 7) Inspection is a(n) _____ activity. a) Appraisal 8) This step in the control process includes a standard that can be used to evaluate the measurements. a) Compare 9) When a process is in control, it results in there being, on average, 16 defects per unit of output. chart limits of 4 and 28 would lead to a _____ percent chance of a Type I error. a) .26 10) A p-chart would be used to monitor a) The fraction defective 11) A c-chart is used for a) Number of defects per unit Chapter Five: 1) Determine the utilization and efficiency for each of the following situations. a) *see HW assignment 2) A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $54,000 for A and $27,000 for B; variable costs per unit would be $9 for A and $11 for B; and revenue per unit would be $16. a) *see Hw assignment 3) A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.39 a minute for daytime calls and $.19 a minute for evening calls. Plan B has a charge of $.49 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 225 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a) * see HW assignment 4) A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. Either of two processes could be used for in-house production; Process A would have an annual fixed cost of $180,000 and a variable cost of $6 per unit, and Process B would have an annual fixed cost of $190,000 and a variable cost of $5 per unit. Determine the range of annual volume for which each of the alternatives would be best. a) *see HW assignment 5) What is Zappos biggest challenge? a) Hiring, training and motivating employees 6) What is the purpose of the spider merge? a) To speed up the conveyors 7) Zappos order picking, packing and shipping process is best described as: a) Nearly continuous flow, almost liquid 8) Why does Zappos offer free overnight shipping, free returns and operate a 24/7 call center and warehouse? a) Expensive but the great experience results in repeat customers 9) Why did Zappos expand from shoes to handbags, apparel, and accessories? a) They listened to their customers 10) Which combination of characteristics best describes the Zappos order fulfillment process? a) Random access storage and homegrown software Chapter Three: 1) A commercial bakery has recorded sales (in dozens) for three products, as shown below: a) * see HW sheet 2) National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a sevenmonth period were as follows: a) * see HW sheet 3) An electrical contractor's records during the last five weeks indicate the number of job requests: a) *see HW sheet 4) Freight car loadings over an 18-week period at a busy port are as follows: a) * see HW sheet 5) Obtain the linear trend equation for the following data on new checking accounts at Fair Savings Bank and use it to predict expected new checking accounts for periods 16 through 19 a) * see HW sheet 6) After plotting demand for four periods, an emergency room manager has concluded that a trend-adjusted exponential smoothing model is appropriate to predict future demand. The initial estimate of trend is based on the net change of 19 for the three periods from 1 to 4, for an average of +6.33 units. a) * see HW sheet 7) A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her forecasts are a combination of trend and seasonality. She uses the following equation to estimate the trend component of monthly demand: Ft = 80 + 6t, where t = 0 in June of last year. Seasonal relatives are 1.03 for January, .95 for February, and 1.00 for March. What demands should she predict? a) * see HW sheet 8) An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is Ft = 125 + 1.9t, and it was developed using data from periods 1 through 10. Based on data for periods 11 through 20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used? a) * see HW sheet 9) Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: a) * see HW sheet 10) The following data were collected during a study of consumer buying patterns: a) * see HW sheet