Match the forecasting method to the appropriate classification.

Ch 1.1_VC What is Operations Management?

What is Operations Management?

Read the overview below and complete the activities that follow.

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 2-1

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?

Wedding

Anniversary

Problem 2-3

Compute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour 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

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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

Time-series 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.

· 1.

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 three-period moving average?

select

· select

· 1,020

· 1,010

· 1,030

· 3,090

· 1,060

· 2.

Our last four periods had sales, from oldest to most recent, of 100, 200, 130, and 300. What is the three-period MA?

select

· select

· 143

· 300

· 183

· 210

· 243

· 3.

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

· 4.

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

· 5.

The last two months had forecast errors of 200 and -50; what is the MAD?

select

· select

· 125

· 150

· -50

· -200

· 75

· 6.

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 4-8

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

Appearance

Texture/Consistency

Problem 5-4

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 break-even point in units. (Round your answer to the nearest whole amount.)

QBEP,A

units

QBEP,B

units

b.

At what volume of output would the two alternatives yield the same profit? (Round your answer to the nearest whole amount.)

Profit

units

c.

If expected annual demand is 10,000 units, which alternative would yield the higher profit?

Higher profit

Problem 5-6

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 6-4

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

II

III

IV

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 420-minute 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 6-5

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:

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

II

III

IV

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_CS-1791

Problem 6-6

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

II

III

(2) greatest number of following tasks (shortest task time as tiebreaker)

Work Station

Tasks

I

II

III

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_CS-1678

Problem 7-2

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 7-3

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.

· 1.

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

· 2.

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

· 3.

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

· 4.

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

· 5.

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)

· 6.

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

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