1a. An analyst has timed a metal-cutting task for 50 cycles. The average time per cycle was 10.40 minutes, and the standard deviation was 1.20 minutes for a worker with a performance rating of 125 percent. Assume an allowance of 16% of task time.

Calculate the standard time for this task (10%)

1b. A task was timed for 60 cycles. It took an average of 1.2 minutes per cycle. The performance rating was 95%, and workday allowance is 10%.

Determine each of the following: (10 Points)

a.     Observed time.

b.     Normal time.

c.     Standard time.

2.  A large law firm uses an average of 10 packages of copier a day. Each package contains 500 sheets. The firm operates 260 days a year. Holding cost for the paper is $1 per year per package, and ordering costs is $10 per order. (10 Points)

a)     What order quantity would minimize total annual ordering and holding costs?

b)    Calculate the total annual inventory control cost using your order quantity from part a.

c)     Except for rounding, are annual ordering and holding costs equal at the EOQ?

d)    The office manager is currently using an order quantity of 100 packages. The partners of the firm expect the office to be managed in a cost-efficient manner. Would you recommend that the office manager use the optimal order quantity instead of 100 packages? Justify your answer.

3. What is master production scheduling and how is it done? (10 Points)

4. Why are each of the following considerations in an ERP software important? (10 Points)

a.     Ease of use.

b.     Complete integration.

c.     Data reliability.

5a. How has technology (5 Points)

(aa) had an impact on analyzing waiting-line systems give - examples, and

(ab) improved waiting-line performance - give examples?

5b. Explain why having a good preventive maintenance program in place is necessary prior to implementing a lean system (5 Points)

6. Many of a bank’s customers use its automated banking machine (ABM). During the early evening hours in the summer months, customers arrive at the ABM at the rate of one every other minute (assume Poisson). Each customer spends an average of 96 seconds completing the transaction. Transaction times are exponentially distributed. Assume that the length of the queue is not a constraint. (10 Points)

a. Determine the average time customers spend at the machine, including waiting in line and completing transactions. (Round the intermediate calculations to 2 decimal places. Round the calculation of the service rate to the nearest whole number. Round the final answer to 1 decimal place.)

b. Determine the probability that a customer will not have to wait upon arrival at the ABM. (Round the value of "μ" to the nearest whole number. Round the final answer to 2 decimal places.)         

c. Determine the utilization of the ABM. (Round the value of "μ" to the nearest whole number. Round the final answer to 2 decimal places.)

d. Determine the probability that a customer waits five minutes or more in the line. (Round the final answer to 3 decimal places.)

7. A sausage factory can produce European wieners at a rate of 510 kg per day. It supplies wieners to local stores and restaurants at a steady rate of 90 kg per day. The cost to prepare the equipment for producing European wieners is $16. Annual holding cost is $2 per kg of wieners. The factory operates 290 days a year. (Round the final answers to the nearest whole number.) (10 Points)

a. Calculate the optimal production run quantity. (Do not round intermediate calculations.)

b. Calculate the number of productions runs per year.

c. Calculate the length (in days) of a production run.

8. A manager wants to determine the number of kanbans to use in a new process for a part. The process will have a usage rate of 75 pieces of the part per hour. Because the process is new, the manager has assigned a safety factor of 1.0. Each container holds 46 pieces and a kanban will take an average of 75 minutes to complete a cycle. (10 Points)

a. How many kanbans should be used? (Round up the final answer to the next whole number.)

b. As the system improves, will more or fewer kanbans be required?

9. Prepare an HACCP analysis for burgers made in a fast food such as McDonalds (5 Points)

10. Review the Mini Case “Staples Extended-Service Warranty Process” - Page 349 (course textbook). Answer the following questions: (5 Points)

a. State the quality problems incurred during the extended service warranty process described in the case.

b. For each quality problem, determine a quality assurance plan that could have prevented it in the first place.