Final

Exam - Solutions Module 1 Smooth Chin Device Company SC1. Which station is the bottleneck of the process? The activity capacities are: A = 1/44 razor/sec B = 1/40 C = 1/55 D = 1/60 E = 1/50 F = 1/40 So D, the slowest, is the bottleneck. SC2. What is the process capacity (you can ignore any start-up or empty system effects)? This is the capacity of Station D: 1/60 * 3600 razors/hour. 60 razor(s) / hour SC3. What are the direct labor costs associated with producing one razor? 1 minute * 6 stations * $25/60 per minute = $2.5 per razor SC4. What is the average labor utilization of the six workers? 289 / (289 + 71) = 0.802 Industrial Baking Process IB1. Inventory = 4000 units/hr x 1/5 hr = 800 units Save-A-Lot Retailers SL1. Using Littles Law: Flow time=Inventory/Flow rate where Flow rate = COGS (cost of the goods that flows per year) Substituting, Flow time=$5,743MM/$53,962MM/year=0.106years

In days, Flow time=0.106years*365days/year=38.69 days SL2. First, we calculate inventory costs for Save-A-Lot. A product stays 38.69 days on average for Save-A-Lot. The inventory costs for a $50 household cleaner are $50*0.2*38.69/365=$1.06 For Wallys Mart, the average number of days in inventory is ($40,694MM/$316,606MM)*365=46.91 days. The inventory costs for a $50 household cleaner are $50*0.2*46.91/365=$1.29 The inventory cost for a $50 household cleaner is $0.23 lower for Save-A-Lot. Great Valley Income Tax Advice
Resource Admin Capacity (min/mth) 9600 Workload for groups (min/mth) 7.5(70)+2.5(120)+25(50)+15(100) Total workload (min/mth) 3575 Implied utilization 37%

Senior Junior Admin w/WP

9600 9600 9600

7.5(50)+2.5(150)+25(5)+15(30) 7.5(120)+25(300)+25(80)+15(200) 7.5(45)+2.5(80)+25(35)+15(70)

1325 6650 2462.5

14% 69% 26%

GV1. Junior accountant GV2. Senior accountant: 14% GV3. Junior accountant: 69% GV4. Administrator: 37% Module 2 Wind Tunnel Testing Carbon Bike Frames CBF1. On average, 2 out of 7 customers per day are refits, which leaves 5 new customers per day.
2

CBF2. OEE = (100 min value-add time/customer x 5 new customers/day x 9 days/cycle) / (60 min/hr x 24 hr/day x 10 days/cycle) = 4500/14,400 = 0.31 Tasty Tims TT1. 30+20+240+180+10+15+40+5+5+5+10+20 = 580 seconds = 9 minutes and 40 seconds TT2. 1/demand =3600secs/120units=30 sec/unit TT3. Labor content/takt = 580/30 = 19.3 -> round up = 20 workers TT4. Takt=3600/40=90sec/unit Labor content/takt = 580/90 = 6.4 -> round up = 7 employees FastBus Inc. FB1. # of customers served per year = (28 seats sold per one-way trip) x (14 one-ways trips per day) x (2 buses) x (365 days) = 286,160 customers FB2. 0.3 (see Excel below, column 1) FB3. 0.66 (see Excel below, column 2)

 Module 3 PTests

PT1. Capacity = 300 / (30 + (300 x 0.2)) = 200 samples/hr PT2. Capacity = 2.5 samples/min = B / (30 + (B x 0.2)) B = 150 samples

Power For All (PFA) PFA1. Total demand = 12 kg/hr. Total setup time = 1 hr. Processing time p = 1/20 hr/kg. Setting capacity = demand and solving for B gives B = 30 kg. Therefore, the amount of soy based protein that should be produced = 10/12 *30 = 25 kg. PFA2. Total demand = 15 kg/hr. Total setup time = 1.5 hr. Processing time remains the same. Setting capacity = demand and solving for B gives B = 90. Therefore, the amount of soy based protein that should be produced = 10/15 * 90 = 60 kg. Module 4 Tom Opim

TO1. Utilization = flow rate/capacity = (20 calls/hr) / (30 calls/hr) = 2/3 = 0.6667 Idle time = 1 utilization = 1/3 = 20 min/hr In an 8-hour shift, Tom will have 8 * 20 = 160 min to read 160 pages TO2.

Use wait time formula for one resource: Average wait time = 2.5 min TO3. Line charge = $5.00/hr = $0.083/min Average customer takes 2.5 min wait time + 2 min processing time = 4.5 min Therefore the average line cost per customer = $0.083 * 4.5 = $0.375 Flow rate per day = (20 customers/hour) * 8 hours = 160 customers/day Line cost per day = $0.375 * 160 = $60 Philly Barber Shops PBS1. Use wait time formula for multiple resources: Activity time = 30 min m = 4 Utilization = flow rate/capacity = (4 customers/hr) / (8 customers/hr) = 0.5 CVa = 1 CVp = 1 Therefore average wait time = 3.35 min PBS2. Use wait time formula for one resource: Activity time = 30 min Utilization = flow rate/capacity = (1 customer/hr) / (2 customers/hr) = 0.5 CVa = 1 CVp = 1 Therefore average wait time = 30 min PBS3. Total time = 20 min walking + 3.35 min wait time + 30 min haircut = 53.35 min PBS4. New flow rate = 5 customers/hr Therefore new inter-arrival time = 12 min PBS5.

Use wait time formula for multiple resources: Activity time = 30 min m = 5 Utilization = flow rate/capacity = (5 customers/hr) / (10 customers/hr) = 0.5 CVa = 1 CVp = 1 Therefore average wait time = 2.17 min. The waiting time is lower compared to the pre-merger scenario because the only variable that has changed is m (the number of barbers); the greatest impact of this change in the wait time formula is in reducing the size of the first term of the formula (activity time/m). Hospital Trauma Bays HTB1. m = 6 r = p/a = 90 min / 30 min = 3 From Erlang loss table, probability that all trauma bays are full and patient is sent to another hospital = 0.0522 Thus, 5.22% of patients end up sent to another hospital HTB2. Average # of patients treated in trauma bays per day = (1 0.0522) * (demand of 2 patients/hr) * (24 hrs/day) = 45.5 patients HTB3. Answer: b. Processing time changes, which gives us a new r = p/a = 60 min / 30 min = 2. Thus, the probability that all trauma bays are full declines to 0.0121, and more patients will have immediate access to a trauma bay. HTB4. Consulting the Erlang loss table reveals that the minimum number of trauma bays needed to ensure a loss probability of < 0.1 is 6. To Do List TDL1. Answer: C (homework). Do the shortest task first. The sequence is the following: Friend (finishes in 10 min from now), food (30 min from now), mother (60 min from now), Facebook

(120 min from now), homework (200 min from now), nap, snow shoes. Since 90 min < 120 min, you will be doing homework in 190 minutes from the time that you start. YourNurse YN1. Answer: C Module 5 50-Step Assembly Line 50SAL1. Probability of defect: 1-(0.99^50)=0.39499 50SAL2. Probability of shipping a defective product=0.39499*0.1*0.1=0.0039499 Process with Scrap PS1. Assume the demand is D units. That implies that D units have to flow through steps 3 and 4. However, because of the scrap rate, 5D units have to flow through resources 1 and 2. PS2. The capacity if 1/5, 1/4, 2/20, 1/12 units per minute respectively. Calculate implied utilization (IU) for each resource as (demand at that resource) / (capacity at that resource): Resource 1: IU = 5D / (1/5) = 25D Resource 2: IU = 5D / (1/4) = 20D Resource 3: IU = D / (2/20) = 10D Resource 4: IU = D / (1/12) = 12D The highest implied utilization is at resource 1, which makes this resource the bottleneck. Lean Burgers LB1. Capability Score = (95.5-94.5) / (6*0.25) = 0.66667

LB2. What is the probability that beef patty is too heavy? This is 1- Normdist(95.5, 95, 0.25, 1)=0.02275 What is the probability that that the beef patty is too light? This is Normdist(95.5, 95, 0.25, 1)= 0.02275 So the defect probability is: 2*0.02275 = 0.0455 LB3. To get the new standard deviation, we solve: (95.5-94.5) / (6*stdev) = 1 => stdev = 1/6 = 0.16666 Toyota Jidoka TJ1. Answer: G. Jidoka refers to making production problems visible and stopping production upon detection of defects