SKMM 3813 / SME 3813 INTRODUCTION TO INDUSTRIAL ENGINEERING

TEST 2
Dec 2015, sem1 2017 / 18
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ANSWER ALL QUESTIONS
TOTAL MARKS 40

QUESTION 1 (20 marks)

a) The result of an inspection of product A samples taken over the past 15 days are given below.
Sample size is 100.
Table 1
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Defectives 7 6 7 4 5 3 5 6 6 8 8 5 6 4 5

i. Calculate the UCL and LCL for 3-sigma p-chart using the information given.
(6 marks)
p=85/1500 = 0.057
σ = √(0.057)(0.943)/100 = 0.023
UCLp = 0.057 + 3(0.023) = 0.126
LCLp = 0.057 – 3(0.023) = -0.012 = 0

ii. Defectives from the subsequent three days are 10, 5 and 7. Based on p-chart in part(i),
is the process still in control?
(4 marks)
Defectives for the next three days = 0.10, 0.05 and 0.07. All are between LCL and
UCL, therefore the process in still in control
b) An assembly work consisting of two sequential job elements has been studied by using a
stopwatch approach. The observed times for the job elements are shown in Table 2.
Determine the standard time for the assembly work, with the assumption of a combined
personal delay and fatigue of 20%.
(10 marks)
Table 2
Observation (minutes)
 Job 1 2 3 4 5 6 Performance
element rating (%)
A 0.15 0.21 0.18 0.19 0.21 0.17 90
B 0.54 0.55 0.57 0.62 0.49 0.46 100
C 0.33 0.31 0.32 0.75 0.30 0.30 85

A average observed time = (0.15+0.21+0.18+0.19+0.21+0.17)/6 = 0.185 min

B average observed time = (0.54+0.55+0.57+0.62+0.49+0.46)/6 = 0.538 min
C average observed time = (0.33 + 0.31 + 0.32+0.30 + 0.30)/5 = 0.312 min
A normal time = (0.185)(0.90) = 0.166 min
B normal time = (0.538)(1.00) = 0.538 min
C normal time = (0.312)(0.85) = 0.265 min
Normal time for job = 0.166 + 0.538 + 0.265 = 0.969 min
Standard time = (0.969)/(1-0.20) = 1.21 min

QUESTION 2 (20 marks)

c) AMZ Enterprise is a shop that sells kid toys. Its most popular toy is Ejen Ali action figure.
The Ejen Ali action figure has the following characteristics;
Demand, D = 2500 units/year
Working day per year = 250 days
Ordering cost, S = RM25/order
Holding cost, H = RM4/unit/year
Lead time = 10 days

i. Determine the optimal order quantity for Ejen Ali action figure
(4 marks)
Q* = √(2DS/H) = √2(2500)(25)/4 = 176.7 = 177

ii. Calculate the number of orders (N) per year

(3 marks)
N = demand / order quantity = 2500 / 177 = 14 orders per year
 iii. What is the expected time between orders (T), assuming that AMZ Enterprise has 250
working days a year.
(3 marks)
T = working days per year / number of orders = 250/14 = 17 day
iv. Determine the total annual cost for the workbook
(4 marks)
TC = (D/Q)*S + (Q*/2)*H
= (2500/177)*25 + (177/2)*4
= RM 707.10

d) You are a retail variety shop owner and one of your fatest moving product (product XB) has
an annual demand of 8000 pieces. Your shop operates 250 days per year, and on average,
delivery of product XB from your supplier takes 3 days.

v. What would be an appropriate reorder point?

(4 marks)
d = annual demand/number of working days = 8000/250 = 32 pieces
ROP = 32 x 3 = 96 pieces
vi. Lately, the delivery from your supplier has been not consistent, ranging from 3 days
to 5 days. How do you deal with the situation?
Add 2 more days’ demands as safety stock = 96 + 32 (2) = 160
(2 marks)