Operations management decisions go into every product or service. The operations manager impacts all parts of the business from the raw materials to the delivery of the good or service. To continue to provide the highest quality products and services requires constant improvement.
CONCEPT REVIEW:
Organizations look to the operations manager to determine what type of process is best suited to fulfill their customers’ needs. To make this determination, the operations manager needs to have knowledge of the facts and how to interpret information. By measurement, the operations manager can decide if their process is the most efficient for their product or service.
Problem 21
A catering company prepared and served 355 meals at an anniversary celebration last week using nine workers. The week before, five workers prepared and served 255 meals at a wedding reception. 
a1.  Calculate the labor productivity for each event. (Round your answers to 1 decimal place.) 
Anniversary  meals/worker  
Wedding  meals/worker 
a2.  For which event was the labor productivity higher?  

Problem 23
Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40hour weeks and an hourly wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $8 per pound. (Round your answers to 2 decimal places.) 
Week  Output (units)  Workers  Material (lbs) 
1  28,000  5  410 
2  32,000  8  520 
3  33,000  8  470 
4  34,000  8  570 
Week  MFP (Output / Total Cost) 
1  
2  
3  
4 
Match the forecasting method to the appropriate classification.
Reset
Linear Regression
Linear Regression
Seasonal Relative
Seasonal Relative
Exponential Smoothing
Exponential Smoothing
Delphi Method
Delphi Method
Consumer Surveys
Consumer Surveys
Executive Opinions
Executive Opinions
Associative Models
Timeseries Forecasts
Judgemental Forecasts
Match the forecasting method to the appropriate classification.
Reset
Concept Check
Forecasting Method Selection
Read the overview below and complete the activities that follow.
A forecast is a statement about the future value of a variable, such as demand. That is, forecasts are predictions about the future. The better those predictions, the more informed decisions can be.
CONCEPT REVIEW:
Many different kinds of forecasting techniques are available, and no single technique works best in every situation. Different forecasting methods require different levels of background sophistication in the personnel involved in the methods’ creation.
Period 1 had actual sales of 1,020. Period 2 had actual sales of 1,010, and Period 3 had actual sales of 1,060. What is the threeperiod moving average?
select
select 1,020 1,010 1,030 3,090 1,060
Our last four periods had sales, from oldest to most recent, of 100, 200, 130, and 300. What is the threeperiod MA?
select
select 143 300 183 210 243
Last month our forecast was 800, but we sold 1,000 units. What is the forecast error?
select
select 200 800 200 1,800 1,000
Last month, the forecast error was 300. With an alpha of .10, by how much will this month’s forecast change?
select
select 30 300 30 300
The last two months had forecast errors of 200 and 50; what is the MAD?
select
select 125 150 50 200 75
We find our data has a trend, with intercept a=90 and slope b=2. At time 6, what is the forecast?
“Profitable Sustainability” featuring Subaru of Indiana
Read the overview below and complete the activities that follow.
Subaru of Indiana is the first domestic auto plant to achieve zero landfill. They focused on waste reduction, reuse and recycling. They took the time to look for every opportunity to cut waste.
CONCEPT REVIEW:
The approach used to achieve the zero landfill goal was proactive and forward looking. They tapped into the extensive job knowledge of the plant associates. By tracking the waste they were generating and eliminating it at the source, they have reduced costs and accomplished the zero landfill goal.
Problem 48
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. 
Technical Requirements  
Customer Requirements  Ingredients  Handling  Preparation 
Taste  (Click to select) √ x  (Click to select) √ x  (Click to select) √ x 
Appearance  (Click to select) √ x  (Click to select) √ x  (Click to select) √ x 
Texture/Consistency  (Click to select) √ x  (Click to select) √ x  (Click to select) √ x 
Problem 54
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 $38,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $19. 
a.  Determine each alternative’s breakeven point in units. (Round your answer to the nearest whole amount.) 
Q_{BEP,A}  units 
Q_{BEP,B}  units 
b.  At what volume of output would the two alternatives yield the same profit?(Round your answer to thenearest whole amount.) 
Profit  units 
c.  If expected annual demand is 10,000 units, which alternative would yield the higher profit? 
Higher profit  (Click to select) B A 
Problem 56
A real estate agent is considering changing her cell 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 $.40 a minute for daytime calls and $.20 a minute for evening calls. Plan B has a charge of $.50 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 200 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening. 
a.  Determine the total charge under each plan for this case: 130 minutes of day calls and 50 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the “$” sign in your response.) 
Cost for Plan A  $ 
Cost for Plan B  $ 
Cost for Plan C  $ 
c.  If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number.Include the indifference point itself in each answer.) 
Plan A is optimal from zero to minutes. Plan C is optimal from minutes onward. 
d.  Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places. Omit the “%” sign in your response.) 
Point  percent daytime minutes 
rev: 10_10_2014_QC_56210
Problem 64
A producer of inkjet printers is planning to add a new line of printers, and you have been asked to balance the process, given the following task times and precedence relationships. Assume that cycle time is to be the minimum possible. 
Task  Length (minutes)  Immediate Predecessor 
a  0.2  – 
b  0.4  a 
c  0.3  – 
d  1.3  b, c 
e  0.1  – 
f  0.8  e 
g  0.3  d, f 
h  1.2  g 
a.  Do each of the following: 
(2)  Assign tasks to stations in order of greatest number of following tasks. Use greatest positional weight as a tiebreaker rule. 
Work Station  Task Assigned 
I  (Click to select) A, B, C, D E, F, G, H A, B D, E, F A, B, C, E 
II  (Click to select) C D F B A 
III  (Click to select) B, D D, C F, G A, E G, H 
IV  (Click to select) F H D A G 
Task  Following Tasks 
a  
b  
c  
d  
e  
f  
g  
h  
(3)  Determine the percentage of idle time. (Round your answer to 2 decimal places. Omit the “%” sign in your response.) 
Percentage of idle time  % 
(4)  Compute the rate of output in printers per day that could be expected for this line assuming a 420minute working day. (Round your answer to the nearest whole number.) 
Rate of output  units per day 
b.  Answer these questions: 
(1)  What is the shortest cycle time that will permit use of only two workstations? (Round your answer to 1 decimal place.) 
Shortest cycle time  minutes 
(2)  Determine the percentage of idle time that would result if two stations were used and each station was loaded with the worktime shown in Part b(1).(Leave no cells blank – be certain to enter “0” wherever required. Omit the “%” sign in your response.) 
Percentage of idle time  % 
(3)  What is the daily output under this arrangement a using the cycle time from Part b(1)? (Round your answer to 1 decimal place.) 
Daily output  units per day 
(4)  Determine the output rate that would be associated with using the maximum cycle time. (Round your answer to 2 decimal places.) 
Rate of output  units per day 
Problem 65
As part of a major plant renovation project, the industrial engineering department has been asked to balance a revised assembly operation to achieve an output of 240 units per eighthour day. Task times and precedence relationships are as follows: 
Task  Duration (minutes)  Immediate Predecessor 
a  0.2  – 
b  0.4  a 
c  0.2  b 
d  0.4  – 
e  1.2  d 
f  1.2  c 
g  1.0  e, f 
Do each of the following: 
b.  Determine the minimum cycle time, the maximum cycle time, and the calculated cycle time. (Round your answers to 1 decimal place.) 
The minimum cycle time  minutes per unit 
The maximum cycle time  minutes per unit 
Calculated cycle time  minutes per unit 
c.  Determine the minimum number of stations needed. (Round your answer to the next whole number.) 
Minimum number of stations 
d.  Assign tasks to workstations on the basis of greatest number of following tasks. Use longest processing time as a tiebreaker. If ties still exist, assume indifference in choice. 
Work stations  Following Tasks 
I  (Click to select) D, B, C D, C, A A, B, C,D A, B, D, C A 
II  (Click to select) E A D, C, A C, F, B B,E 
III  (Click to select) E F, G B F C 
IV  (Click to select) E, F A, B, C C, D E G 
e.  Compute the percentage of idle time for the assignment in part d. Use the actual bottleneck cycle time in your calculation. (Round your answer to 1 decimal place. Omit the “%” sign in your response.) 
Percentage of idle time  % 
rev: 02_04_2015_QC_CS1791
Problem 66
Twelve tasks, with times and precedence requirements as shown in the following table, are to be assigned to workstations that have a fixed machine cycle time of 1.5 minutes. Two heuristic rules will be tried: (1) greatest positional weight, and (2) greatest number of following tasks. 
In each case, the tiebreaker will be shortest task time. 
Task  Length (minutes)  Immediate Predecessor 
a  0.1  – 
b  0.2  a 
c  0.9  b 
d  0.6  c 
e  0.1  – 
f  0.2  d, e 
g  0.4  f 
h  0.1  g 
i  0.2  h 
j  0.7  i 
k  0.3  j 
l  0.2  k 
b.  Assign tasks to stations under each of the two rules. 
(1) greatest positional weight (shortest task time as tiebreaker) 
Work Station  Tasks 
I  (Click to select) A, B A, B, C, D E, F, G, H A, B, C, E D, E, F 
II  (Click to select) A, B, C, E D, E, F, H D, F, G, H, I J, K, L H, I 
III  (Click to select) A, B, C, E B, D, E J, K, L D, F, G, H A 
(2) greatest number of following tasks (shortest task time as tiebreaker) 
Work Station  Tasks 
I  (Click to select) A, B, C, E A, B, C, D D, E, F, G A, B J, K, L 
II  (Click to select) C, D, E, F G, H, I A, B, C, E J, K, L D, F, G, H, I 
III  (Click to select) C, D, E, F E, F D, F, H, I A, B, C J, K, L 
c.  Compute the percentage of idle time for each rule. (Round your answer to 2 decimal places. Omit the “%” sign in your response.) 
Percentage of idle time  % 
rev: 02_04_2015_QC_CS1678
Problem 72
A job was timed for 60 cycles and had an average of 1.6 minutes per piece. The performance rating was 95 percent, and workday allowances are 11 percent. Determine each of the following: 
a.  Observed time. (Round your answer to 1 decimal place.) 
Observed time  minutes 
b.  Normal time. (Round your answer to 2 decimal places.) 
Normal time  minutes 
c.  Standard time. (Round your answer to 2 decimal places.) 
Standard time  minutes 
Problem 73
A time study was conducted on a job that contains four elements. The observed times and performance ratings for six cycles are shown in the following table. 
OBSERVATIONS (minutes per cycle)  
Element  Performance Rating  1  2  3  4  5  6 
1  90%  0.44  0.50  0.43  0.45  0.46  0.46 
2  85  1.50  1.56  1.47  1.51  1.49  1.52 
3  110  0.84  0.89  0.77  0.83  0.83  0.80 
4  100  1.10  1.14  1.08  1.20  1.16  1.26 
a.  Determine the average cycle time for each element. (Round your answers to 3 decimal places.) 
Element  Average cycle 
1  
2  
3  
4  
b.  Find the normal time for each element. (Round your answers to 3 decimal places.) 
Element  Normal time 
1  
2  
3  
4  
c.  Assuming an allowance factor of 14 percent of job time, compute the standard time for this job. (Round your answers to 3 decimal places.) 
Element  Standard time 
1  
2  
3  
4 
Location Factors
Read the overview below and complete the activities that follow.
Organizations need to make location decisions for many reasons. The options available in location planning and the factors that go into location selection are covered here.
CONCEPT REVIEW:
Considering the benefits, disadvantages, risks and issues associated with various location options is important in an organization’s location selection. Options include expanding an existing location, adding a new location, moving, or doing nothing. Location decisions are influenced by many factors at different geographic levels including country, region, community, and site.
Concept Check
Location Factors
Read the overview below and complete the activities that follow.
Organizations need to make location decisions for many reasons. The options available in location planning and the factors that go into location selection are covered here.
CONCEPT REVIEW:
Considering the benefits, disadvantages, risks and issues associated with various location options is important in an organization’s location selection. Options include expanding an existing location, adding a new location, moving, or doing nothing. Location decisions are influenced by many factors at different geographic levels including country, region, community, and site.
Which location option is the least expensive form of expansion?
select
select Do nothing Close a location and move to a new location Add a new location Close all locations Expand an existing location
Fixed cost is $30,000, and variable cost is $4 per unit. What is the total cost for 20,000 units?
select
select $30,000 $20,000 $80,000 $110,000 $50,000
Fixed cost is $30,000, and variable cost is $2 per unit for 10,000 units. If fixed costs increase by 10%, how much will total cost increase?
select
select $1,000 $30,000 $2,000 $5,000 $3,000
Total cost is $60,000 to make 20,000 units. Fixed cost is $20,000. What is the variable cost per unit?
select
select $2 $1 $3 $6 $4
We have customers in three locations at grid locations (2,6), (5,1), and (2,2). Each area needs the same quantity. Where is the center of gravity?
select
select (3,3) (2,1) (2,2) (4,2) (5,5)
We have two customers; one is at coordinates (6,2) and has 200 units of demand, and the other is at (3,4) with 800 units of demand. What is the center of gravity (round to the nearest whole number coordinates)?
select