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Chapter 5

Problem 1

A producer of pottery is considering the addition of a new plant to absorb the backlog of demand that now exists. The primary location being considered will have fixed costs of $9,200 per month and variable costs of 70 cents per unit produced. Each item is sold to retailers at a price that averages 90 cents.

a.

What volume per month is required in order to break even?

9,200/0.2=46,000units to break even.

b.

What profit would be realized on a monthly volume of 61,000 units? 87,000 units?

61,000*0.2=12,000

12,000-9,200=$3,000

c.

What volume is needed to obtain a profit of $16,000 per month?

(16,000+9,200)/0.2=126,000 units

d.

What volume is needed to provide a revenue of $23,000 per month?

23,000/0.9=25,556 units

e.

Plot the total cost and total revenue lines.

Chapter 6

Problem 2

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 eight-hour day. Task times and precedence relationships are as follows:

Do each of the following:

a.

Draw the precedence diagram.

b.

Determine the minimum cycle time, the maximum cycle time, and the calculated cycle time.

The minimum cycle time= max task time= 1.2 minutes

The max cycle time=.2 + .4 + .2 + .4 + 1.2 + 1.2 + 1.0= 4.6 minutes

CT=

c.

Determine the minimum number of stations needed.

d.

Assign tasks to workstations on the basis of most following tasks. Use shortest processing time as a tiebreaker. If ties still exist, assume indifference in choice.

e.

Compute the percentage of idle time for the assignment in partd.

Chapter 8

Problem 3

Using the following factor ratings, determine which location alternative (A, B, or C) should be chosen on the basis of maximum composite score.

Factor

(100 points each)

Weight

A

B

C

Convenience

0.15

80

70

60

Parking facilities

0.20

72

76

92

Display area

0.18

88

90

90

Shopper traffic

0.27

94

86

80

Operating costs

0.10

98

90

82

Neighborhood

0.10

96

85

75

1.00

Chapter 9

Problem 4

An air-conditioning repair department manager has compiled data on the primary reason for 41 service calls for the previous week, as shown in the table.Using the data, make a check sheet for the problem types for each customer type, and then construct a Pareto diagram for each type of customer.

Job Number

Problem/ Customer Type

Job Number

Problem/ Customer Type

Job Number

Problem/ Customer Type

301

F/R

315

F/C

329

O/C

302

O/R

316

O/C

330

N/R

303

N/C

317

W/C

331

N/R

304

N/R

318

N/R

332

W/R

305

W/C

319

O/C

333

O/R

306

N/R

320

F/R

334

O/C

307

F/R

321

F/R

335

N/R

308

N/C

322

O/R

336

W/R

309

W/R

323

F/R

337

O/C

310

N/R

324

N/C

338

O/R

311

N/R

325

F/R

339

F/R

312

F/C

326

O/R

340

N/R

313

N/R

327

W/C

341

O/C

314

W/C

328

O/C

Check Sheet

Problem Check Sheet

Customer Type

Noisy (N)

Failed (F)

Odor (O)

Warm (W)

Totals

Residential (R)

Commercial (C)

Totals

Problem 5

Prepare a run diagram for this emergency call data. Use five-minute intervals (i.e., count the calls received in each five-minute interval. Use intervals of 0-4, 5-9, etc.).Note:Two or more calls may occur in the same minute; there were three operators on duty this night. What can you conclude from the run chart?

Call

Time

Call

Time

Call

Time

Call

Time

1

1:03

12

1:36

23

1:56

34

2:08

2

1:06

13

1:39

24

2:00

35

2:11

3

1:09

14

1:42

25

2:00

36

2:12

4

1:11

15

1:43

26

2:01

37

2:12

5

1:12

16

1:44

27

2:02

38

2:13

6

1:17

17

1:47

28

2:03

39

2:14

7

1:21

18

1:48

29

2:03

40

2:14

8

1:27

19

1:50

30

2:04

41

2:16

9

1:28

20

1:52

31

2:06

42

2:19

10

1:29

21

1:53

32

2:07

11

1:31

22

1:56

33

2:08

Chick-n-Gravy Dinner Line

The operations manager of a firm that produces frozen dinners had received numerous complaints from supermarkets about the firm's Chick-n-Gravy dinners. The manager then asked her assistant, Ann, to investigate the matter and to report her recommendations.

Ann's first task was to determine what problems were generating the complaints. The majority of complaints centered on five defects: underfilled packages, a missing label, spills/mixed items, unacceptable taste, and improperly sealed packages.

Next, she took samples of dinners from the two production lines and examined each sample, making note of any defects that she found. A summary of those results is shown in the table.

The data resulted from inspecting approximately 800 frozen dinners.What should Ann recommend to the manager?

DEFECTS OBSERVED

Date

Time

Line

Underfilled

Missing Label

Spill/ Mixed

Unacceptable Taste

Improperly Sealed

5/12

900

1

5/12

1330

2

5/13

1000

2

5/13

1345

1

5/13

1530

2

5/14

830

1

5/14

1100

2

5/14

1400

1

5/15

1030

1

5/15

1145

2

5/15

1500

1

5/16

845

2

5/16

1030

1

5/16

1400

1

5/16

1545

2

Chapter 17

Problem 6

Three recent college graduates have formed a partnership and have opened an advertising firm. Their first project consists of activities listed in the following table.

a.

Draw the precedence diagram.

b.

What is the probability that the project can be completed in 24 days or less?

c.

Suppose it is now the end of the seventh day and that activities A and B have been completed while activity D is 50 percent completed. Time estimates for the completion of activity D are 5, 6, and 7. Activities C and H are ready to begin. Determine the probability of finishing the project by day 24.

TIME IN DAYS

Activity

Precedes

Optimistic

Most Likely

Pessimistic

A

5

6

7

B

8

8

11

C

A

6

8

11

D

-

9

12

15

E

C

5

6

9

F

D

5

6

7

G

F

2

3

7

H

B

4

4

5

I

H

5

7

8

End

E,G,I

d.

The partners have decided that shortening the project by two days would be beneficial, as long as it doesn't cost more than about $20,000. They have estimated the daily crashing costs for each activity in thousands, as shown in the following table.Which activities should be crashed, and what further analysis would they probably want to do?

Activity

First Crash

Second Crash

C

$8

$10

D

10

11

E

9

10

F

7

9

G

8

9

H

7

8

I

6

8

Chapter 10

Problem 7

Computer upgrade times (in minutes) are being evaluated. Samples of five observations each have been taken, and the results are as listed.Using factors from Table 10.3, determine upper and lower control limits for mean and range charts, and decide if the process is in control.

SAMPLE

1

2

3

4

5

6

79.2

80.5

79.6

78.9

80.5

79.7

78.8

78.7

79.6

79.4

79.6

80.6

80.0

81.0

80.4

79.7

80.4

80.5

78.4

80.4

80.3

79.4

80.8

80.0

81.0

80.1

80.8

80.6

78.8

81.1

Problem 8

After a number of complaints about its directory assistance, a telephone company examined samples of calls to determine the frequency of wrong numbers given to callers. Each sample consisted of 100 calls.Determine 95 percent limits. Is the process stable (i.e., in control)? Explain.

Problem 9

A teller at a drive-up window at a bank had the following service times (in minutes) for 20 randomly selected customers:

SAMPLE

1

2

3

4

4.5

4.6

4.5

4.7

4.2

4.5

4.6

4.6

4.2

4.4

4.4

4.8

4.3

4.7

4.4

4.5

4.3

4.3

4.6

4.9

a.

Determine the mean of each sample.

b.

If the process parameters are unknown, estimate its mean and standard deviation.

c.

Construct control charts for means and ranges using Table 10.3. Are any samples beyond the control limits? If so, which one(s)?

d.

If the process has a known mean of 4.4 and a known standard deviation of .18, what would three-sigma control limits be for a mean chart? Are any sample means beyond the control limits? If so, which one(s)?

Problem 10

As part of an insurance company's training program, participants learn how to conduct an analysis of clients' insurability. The goal is to have participants achieve a time in the range of 30 to 45 minutes. Test results for three participants were: Armand, a mean of 38 minutes and a standard deviation of 3 minutes; Jerry, a mean of 37 minutes and a standard deviation of 2.5 minutes; and Melissa, a mean of 37.5 minutes and a standard deviation of 1.8 minutes.

a.

Which of the participants would you judge to be capable? Explain.

b.

Can the value of theC_pkexceed the value ofC_pfor a given participant? Explain.

Chapter 4 (Supplement)

Problem 11

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 .96 probability of functioning, and two have a probability of .99. What is the overall probability that the product will function properly?

Chapter 14 (Supplement)

Problem 12

The probability that equipment used in a hospital lab will need recalibration is given in the following table. A service firm is willing to provide maintenance and provide any necessary calibrations for a fee of $650 per month. Recalibration costs $500 per time.Which approach would be most cost-effective, recalibration as needed or the service contract?