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business
operations management 6th
ISE Operations Management 3rd International Edition Gerard Cachon, Christian Terwiesch - Solutions
Consider the trajectory showing the amount of data storage space that comes with the average PC each year. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growth
Consider the trajectory showing the number of luggage pieces that an airline loses on a flight. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growth
Consider the trajectory showing the percentage of customer orders in a restaurant that were handled correctly. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growth
What are the four steps in the Deming cycle?a. Plan-do-implement-executeb. Plan-do-check-actc. Mission-vision-strategy-executiond. None of the above
Which of the following statements is correct?a. Autonomous learning happens based on experience alone. In contrast, induced learning requires deliberate effort.b. Induced learning happens based on experience alone. In contrast, autonomous learning requires deliberate effort.c. The amount of induced
A company has 1500 employees, on average, and it recruits, on average, 500 employees per year. What is the employee turnover and what is the average tenure of an employee?
Mike and Tom have started a small bike shop where they specialize in assembling high-end race bikes. They just received a large order of 20 bikes from the local university to equip all varsity athletes with a new bike. Mike and Tom expect substantial productivity improvements in their assembly as
Consider again the production process of snowblowers. The process starts with an initial cost c(1) = 104, a learning rate of LR = 0.9, and by now has reached a cumulative output of 1000. Without using the LCC method, what do you expect production costs to be?
Consider the production process of snowblowers. The process starts with an initial cost c(1) = 104, a learning rate of LR = 0.9, and by now has reached a cumulative output of 1000. Using the LCC method, what unit costs do you expect?
A seasoned high school teacher is, once again, writing letters of recommendation for her students as they send in their applications to college. In 2008, the teacher had written 150 letters of recommendation over her career. She estimates that, on average, it took her 45 minutes to write one
Consider a process assembling shopping carts. The process starts with a unit cost of $20 for the first unit—that is, c(1) = 20—and a learning rate of LR = 0.95. What will be the unit costs for the 29th unit?
Consider a process that makes LED lamps. The process starts with a unit cost of $30 for the first unit—that is, c(1) = 30—and has a learning rate of LR = 0.9. What will be the unit costs for the 64th unit?
Consider the trajectory showing the percentage of patient records entered correctly into a computer by a typist. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growth
Consider the trajectory showing the number of photos that can be stored on a smartphone. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc. Diminishing return growth
Consider the trajectory showing the percentage of patients with depression that were not appropriately screened for suicide risk. A doctor’s practice aims to reduce this percentage over time. What shape would a learning curve have in this setting?a. Exponential growthb. Exponential decayc.
A high signal-to-noise ratio makes learning harder. True or false?a. Trueb. False
Which of the following activities is not part of the Deming cycle?a. Planb. Doc. Checkd. Improvee. Act
John has been fixing bicycles for 3 years now. He notices that he is getting better with an increase in experience, though he does not necessarily know why. John’s learning is most likely a form of autonomous learning. True or false?a. Trueb. False
Which of the following is not part of the standard work sheet?a. The processing time for an activityb. The name of the person in charge of the activityc. The work sequence of all steps making up the activityd. The standard amount of inventory at the resource
In an environment with high employee turnover, standards are less important than in environments with low turnover. True or false?a. Trueb. False
If the employee turnover increases, the average tenure of an employee in the company:a. increases.b. decreases.c. stays the same.d. cannot be determined from the given information.
The employee turnover can be computed as:a. Number of new employees recruited per year/Average number of employees.b. Average number of employees/Number of new employees recruited per year.c. ½ × Average time an employee spends with the company.e. ½ × Number of new employees recruited per year.
How does the average tenure of an employee relate to the average time an employee spends with the company?a. They are one and the same thing.b. The average tenure is twice the average time an employee spends with the company.c. The average tenure is half the average time an employee spends with the
Assume a learning curve following the power law. If you double the initial cost c(1) of a product, the costs of producing an order of 20 units:a. stay the same.b. are reduced by 50 percent.c. are doubled.d. cannot be determined from the given information.
The cumulative learning curve coefficient CLCC(20, 0.8) is defined as follows:a. the cost to produce 20 units in a process with c(1) = 1 and a learning rate of 0.8.b. the cost to produce one unit in a process with c(1) = 20 and a learning rate of 0.8.c. the cost to produce one unit in a process
True or false?a. Trueb. False
The cumulative learning curve coefficient CLCC(x, LR) is always bigger than the learning curve coefficient LCC(x, LR) for all x >
d. Cannot be determined from the given information.
b. The slope is close to −1.c. The slope is close to
A firm has a learning rate almost equal to 1 (just slightly less than 1). What does this imply for the slope of the learning curve in a log-log graph?a. The slope is close to
When estimating the slope of the line in a log-log graph, we pick two points with coordinates (x1 , y1 ) and (x2 , y2 ). Which of the following statements is true?a. x1 has to be exactly one unit bigger than x2 .b. x2 needs to be the value on the x-axis corresponding to the last period for which we
Process A has a learning rate of LR = 0.95 and process B has a learning rate of LR = 0.8. After 20 units:a. process A is cheaper.b. process B is cheaper.c. the two processes will have the same cost.d. cannot be determined from the given information.
Consider two processes, A and B, with an initial cost of c(1) =
Consider the case of GV described in the preceding problem and the following processing times and assume that everyone works 40 hours per week.a. Which of the three persons is the bottleneck?b. For a mix of 20:80 between new and old cases, what is the flow rate and what is the capacity?
GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey to its customers, asking for the information required for preparing the tax statements. Based on 50 years of experience, GV categorizes its
Consider the following three-step assembly operation with quality problems. All resources are staffed by one employee. • The first resource has a processing time of 7 minutes per unit. • The second resource has a processing time of 6 minutes per unit. • The third resource has a processing
An employment verification agency receives applications from consulting firms and law firms with the request to validate information provided by their job candidates. Figure 5.9 shows the process flow diagram for this agency. Note that while the three customer types share the first step and the
Finally, the coach’s assistant contacts the customer to confirm the trip and to complete a travel schedule. This takes, on average, 50 minutes for each contacted customer. Unfortunately, at this point, on average, two-thirds of the cyclists decide that they will not participate in the trip. The
ETF’s accountant spends 20 minutes per customer discussing financing options.
The coach looks at the cyclist’s profile and organizes a follow-up call. Together, this takes, on average, 40 minutes per profile. Between customers who are rejected by the coach for not being fit enough and customers deciding that they are no longer interested, only 20 percent of the profiles
One salesperson spends 20 minutes on the phone with a potential customer to put together the customer’s full profile. After the call, each profile is forwarded to the coach.
Experience the Tour de France (ETF) allows amateur cyclists to experience the Tour de France cycling race by letting them ride the same course the day before the professional cyclists. Customers fill out an online application form showing their interest. ETF reaches out to these customers using the
In the Old City Photography scenario in the preceding problem, where is the bottleneck? What is the flow rate?
Located along a cobblestone street in Old City, Old City Photographics (OCP) specializes in processing traditional 35mm film negatives, the once-dominant photographic medium that is now in decline due to the popularity of digital photography. OCP offers three packages to its customers. With the
What is the relationship between a process with rework and a process with scrap?a. Scrap and rework are not related.b. Scrap and rework are sequential processes. First, items are scrapped and then they are reworked.c. A process either has scrap or rework. The two are mutually exclusive.d. Scrap is
If a flow unit type j does not consume any time at a resource i, the corresponding cell in the workload matrix, WL(i, j), is zero. True or false?a. Trueb. False
The workload matrix has exactly the same number of rows and the same number of columns as the demand matrix. True or false?a. Trueb. False
What flow unit do you use when dealing with flow unit–dependent processing times?a. Revenue dollarsb. Customersc. Each different type of finished goodsd. Minutes or hours of work
As the attrition loss in a process increases, what happens to the yield?a. The yield increases.b. The yield stays the same.c. The yield decreases.d. Cannot determine from the given information.
A process has 10 resources and two types of flow units. How many columns will there be in the demand matrix?a. 2b. 5c. 10d. 20
A process has six resources and three types of flow units. How many rows will there be in the demand matrix?a. 2b. 3c. 6d. 18
Atlas Inc. is a toy bicycle manufacturing company producing a 5- inch small version of the bike that Lance Armstrong rode to win his first Tour de France. The assembly line at Atlas Inc. consists of seven work stations, each performing a single step. Stations and processing times are summarized
How would that impact process capacity?e. How could you increase the capacity of the process by rebalancing it?
The Geneva Watch Corporation manufactures watches on a conveyor belt with six stations. One worker stands at each station and performs the following tasks:Workers get paid $10 per hour. You can ignore any idle time of workers resulting from the beginning or the end of the day.a. What is the labor
a. What is the labor content?b. What is the average labor utilization?c. At a wage rate of $20 per hour, what is the cost of direct labor per customer?d. Mr. K considers hiring a new employee to help any one (and only one) of the service employees without changing the tasks performed by each
Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity
Glenn Dental Clinic provides general dental care to residents of Philadelphia on a walk-in basis. The clinic has started receiving complaints from patients that the waiting time is too long and has asked you to investigate whether this problem can be solved.Upon arrival, customers receive a form
Consider a process consisting of three resources. Assume there exists unlimited demand for the product. • Resource 1 has a processing time of 6 minutes per unit. • Resource 2 has a processing time of 3 minutes per unit. • Resource 3 has a processing time of 5 minutes per unit. All three
It takes a lawyer 120 minutes to serve one customer. Demand is 2 customers per eight-hour day. The lawyer has a wage rate of $200 per hour. What is the cost of direct labor for the lawyer expressed in $ per customer?
Assume that One Hour Loan obtains $50 for each loan it originates. The company faces fixed costs of $1200 per 8-hour work day, which includes the labor costs of $20 per hour for each employee. Variable costs for paper and express mailing are estimated to be $5 per loan. By how much would One Hour
Consider again the case of One Hour Loan and the initial process design in which activity 1 takes 4 minutes/loan, activity 2 takes 5 minutes/loan, activity 3 takes 7 minutes/loan, activity 4 takes 2 minutes/loan, and activity 5 takes 4 minutes/loan. Recall further that currently the assignment of
A cabinetmaker producing custom-built kitchen cabinets contemplates how to organize his workforce. One way he can envision his production process is that each of his craftsmen would take ownership of an entire order, including all the woodworking such as cutting, sanding, staining, all the way to
How would you rebalance the process to maximize process capacity, assuming that the five activities have to be carried out in the given order?
Consider again the case of One Hour Loan. Recall that activity 1 takes 4 minutes/loan, activity 2 takes 5 minutes/loan, activity 3 takes 7 minutes/loan, activity 4 takes 2 minutes/loan, and activity 5 takes 4 minutes/loan. Recall further that currently the assignment of tasks to workers is as
Consider again the case of One Hour Loan and assume there exists unlimited demand. If you had one additional worker available to help another worker, to which worker would you assign her?
Each worker is paid $20 per hour. You can assume that there exists unlimited demand and that loans are only entering the process at the rate of the bottleneck. (a) What is the bottleneck in the process? (b) What are the costs of direct labor? (c) What is the labor content? (d) Across all three
One Hour Loan offers customized loans. Customers call a toll-free number with a specific loan request and obtain a response within an hour. One Hour Loan’s business process includes five activities that must be conducted in the sequence described below. (The time required for each activity is
A machine-paced line has six stations with processing times of 30, 20, 25, 28, 22, and 24 seconds per unit, respectively. The process is capacity-constrained and runs on a 30 second/unit cycle time. (a) What is the total idle time across all six stations? (b) What is the average labor utilization?
Consider the example of the three-step airport security. The first step, verifying ID and boarding pass, takes 30 seconds per passenger. The second step, searching the passenger for metal objects using a metal detector, takes 10 seconds per passenger. The third step, running the carry-on luggage
When an operation improves its efficiency, its revenue will always stay constant, while its costs will go down. True or false?a. Trueb. False
A process has low fixed costs and high variable costs. It is currently capacity-constrained. Will the impact of an efficiency improvement be small or large?a. Smallb. Large
A process has high fixed costs and low variable costs. It is currently capacity-constrained. Will the impact of an efficiency improvement be small or large?a. Smallb. Large
Specialization typically lead to a higher average labor utilization. True or false?a. Trueb. False
What happens to the target manpower if the labor content is doubled?a. The target manpower increases by 50 percent.b. The target manpower doubles.c. The target manpower decreases by 50 percent.d. The target manpower decreases by a factor of
How many cars are you likely to encounter as work in progress inventory?
Where in the process do you expect to encounter inventory?
What is the flow time?
What is the cycle time of the process (assume two shifts of 8 hours each and 5 days a week of operation)?
The local driver’s license center processes applications for driver’s license renewals through the following three steps. First, the customer registers with the receptionist, who updates the customer’s information in the database. This first step takes 2 minutes per customer. Then, the
An automated car wash serves customers with the following serial process: pre-treat, wash, rinse, wax, hand dry. Each of these steps is performed by a dedicated machine except for the hand-dry step, which is performed manually on each car by one of three workers. The steps of the process have the
Consider a four-step serial process with processing times given in the following list. There is one machine at each step of the process, and this is a machine-paced process.a. Step 1: 25 minutes per unitb. Step 2: 15 minutes per unitc. Step 3: 30 minutes per unitd. Step 4: 20 minutes per unit
A small mortgage lender has one receptionist, four loan officers, and two office managers. When applicants apply for a new loan in person, they first fill out paperwork with the receptionist. Then the applicants meet with one of the loan officers to discuss their needs. The loan officer spends
Consider the following production process for manufacturing biscuits. The first step of the process is mixing, where all of the ingredients are combined in the correct proportion to form dough. In the next step of the process, the dough is formed into sheets and cut into pieces in preparation for
Glenn Dental Clinic provides general dental care to residents of Philadelphia on a walk-in basis. The clinic has started receiving complaints from patients that the waiting time is too long and has asked you to investigate whether this problem can be solved. Upon arrival, customers first receive a
A small, privately owned Asian company is producing a privatelabel soft drink called Yoggo. A bottling line puts the soft drinks into plastic bottles and then packages the bottles into boxes holding 10 bottles each. The bottling line is comprised of the following four steps: (1) the bottling
Consider a process consisting of three resources. Assume there exists unlimited demand for the product.a. Resource 1 has a processing time of 6 minutes per unit.b. Resource 2 has a processing time of 3 minutes per unit.c. Resource 3 has a processing time of 5 minutes per unit. All three resources
It takes a barber 15 minutes to serve one customer.a. What is the capacity of the barber expressed in customers per hour?b. Assuming the demand for the barber is two customers per hour, what is the flow rate?c. Assuming the demand for the barber is two customers per hour, what is the utilization?d.
How long would it take to serve five guests, starting with an empty system?
Consider the process described in question
Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described below (the time required for each activity
A food-truck can produce 20 meals per hour. The demand rate is, however, only 15 meals per hour. (a) What is the flow rate? (b) What is the utilization of the food-truck? (c) What is the cycle time?
A plumbing company has eight crews fielding repair calls. It takes a crew 2 hours to complete one repair call (including travel time and breaks). What is the capacity of the plumbing company over the course of a 10-hour workday?
It takes a dentist 20 minutes to see one patient. What is the capacity of the dentist expressed in patients per hour?
The School of Dentistry at Penn provides general dental care to residents of Philadelphia on a walk-in basis. Upon arrival, customers first provide health-relevant information such as personal health records and insurance provider to a receptionist who enters the information into the computer
You observe a bank and notice that a customer leaves the bank about every 5 minutes. These 5 minutes between customers are:a. the capacity of the process.b. the processing time of the last resource.c. the cycle time.d. the lead time.
What is the relationship between the processing time at a resource and its capacity? page 62a. They are the same.b. They are reciprocals of each other.c. They are multiples of each other.d. They are not related.
How long did the average passenger have to wait in line?
Consider the baggage check-in process of a small airline. Check-in data indicate that from 9 a.m. to 10 a.m., 240 passengers checked in. Moreover, based on counting the number of passengers waiting in line, airport management found that the average number of passengers waiting for check-in was
LaVilla is a village in the Italian Alps. Given its enormous popularity among Swiss, German, Austrian, and Italian skiers, all of its beds are always booked in the winter season and there are, on average, 1200 skiers in the village. On average, skiers stay in LaVilla for 10 days. How many new
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