Week 1 -- Problem Solving Assignment

Monday, June 16, 2014 10:07 AM

1. [Productivity] Ch 2 – Page 66 – Problem 7

The following table shows data on the average number of customers processed by several bank service units each day. The hourly
wage rate is $25, the overhead rate is 1.0 times labor cost, and material cost is $5 per customer.

a. Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day for multifactor
productivity.
b. Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional
customer per day. Compute the expected labor and multifactor productivity rates for each unit.

a.

Customers Labor Cost Overhead Cost Material Cost Total Cost Labor MFP
Unit Employees per Day Productivity
A 4 36
B 5 40
C 8 60
D 3 20

b.

Customers Labor Cost Overhead Cost Material Cost Total Cost Labor MFP
Unit Employees per Day Productivity
A 4 40
B 5 45
C 8 68
D 3 23

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2. [Product Layout] Ch 6 – Page 281 – Problem 3
A manager wants to assign tasks to workstations as efficiently as possible and achieve an hourly output of four units. The department uses a
working time of 56 minutes per hour. Assign the tasks shown in the accompanying precedence diagram (times are in minutes) to
workstations using the following rules:
a. In order of most following tasks. Tiebreaker: greatest positional weight.
c. What is the efficiency?

a.

Number of
Task Following Tasks Positional Weight
a
b
c
d
e
f
g
h
i

Revised Time
Time Remaining Assign Remaining
Station Eligible Will Fit (task time) Idle
1

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 Time Remaining Assign Remaining
Station Eligible Will Fit (task time) Idle
1

c.

Efficiency =

Percent idle time =

3. [Process Layout] Ch 6 – Page 284 – Problem 12

Arrange the eight departments shown in the accompanying Muther grid into a 2 × 4 format. Note: Department 1 must be in the location
shown.

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A Links X Links
1-3
1-7
2-3
2-4
2-7
3-5
4-7
4-8
6-8
7-8

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