Safety

 Q: A worker slipped but without any injury:

- Unsafe condition.
- Near miss.
- Hazard.
- Accident.
Safety
 Unsafe condition: A condition in the work place that is
likely to cause property damage or injury. For example:
having defective tools.
 Unsafe Act: Performance of a task or other activity that is
conducted in a manner that may threaten the health and/or
safety of workers. For example: using defective tools.
Safety
 Hazard: An object or situation that has the potential to harm
a person, the environment or cause damage to property.
 Near miss: An incident that could have resulted in an injury
or illness to people, danger to health, and / or damage to
property or the environment.
 Accident: An unplanned event that results in personal injury
or property damage.
Safety
 The Three E‟s:
- Engineering
- Education
- Enforcement

 Factor of safety
Safety
 Q: which OSHA regulation is about record keeping?
- 1901
- 1902
- 1903
- 1904
Safety
 Q: why do they put a screen guard on the machine?
A: to provide a barrier between the machine and the worker.
 Safety
 Q: A proactive company cares about:
- Hazards
- Near misses
- Safety of contractors
- All of the above
 Safety
 Q: occupational organization concerned about back pain of
workers:
A: OSHA 200 log
 Safety Theories
 Domino‟s Effect Theory: an "accident" is one factor in a sequence
that may lead to an injury.

 Accident/Incident Theory: Extension of human factors theory. Here

the following new elements are introduced:
• Ergonomic traps
• Decision to err
• Systems failure
 Safety Theories
 The Logical order of (loss, hazard, near miss & Accident)?
 Human Factors
 Q: For an auditory signal to be localizable, its frequency spectrum
must include:
- Frequency components between 1000 Hz and 4000 Hz.
- Less than 1000 Hz and greater than 3000 Hz.
- Frequency components between 500 Hz and 5000 Hz.
- None of the above.
 Human Factors
 Localizing signal

 Threshold for hearing

 Background noise
 Simulation
 Q: the imitation of a real world process over time is:
- simulation
- quality
- inventory
- quality
Validation & Verification
 Q: When a system mimics reality this is:
- Validation.
- Verification.
Validation & Verification
 Verification: verification of a model is the process of
confirming that it is correctly implemented with respect to the
conceptual model (it matches specifications and assumptions
deemed acceptable for the given purpose of application).
 Validation: validation checks the accuracy of the model's
representation of the real system. (will meet the customer
needs)
 Simulation
 Q: What is an example of Discrete event simulation?
a - Students entering school.
b - water flow.
c - customers entering bank.
d-a&c
 Simulation
 Q: What makes a good random number generator?
- Long cycle
- short cycle

 Other properties: good randomness , uniform , independence &

speed.
 Simulation
 Q: In simulation, what is the term used for when an object status
changes?
- Activity
- Entity
- Event
- Status

 Activity: is the state of an object over an interval of time. An

activity starts with an event and ends with another event.
 Simulation
 Q: In simulation, what do you call comparable events that have the
same attributes and parameters value?
A: Identical events
 Simulation
 Q: which of the following is either seized, delayed or released?
- Activity
- Resource
- Event
- Status
 Simulation
Q: which of the following seizes, delays or releases?
- Activity
- Entity
- Event
- Status
How to calculate Total Cost?
 Total Cost (TC) = Total Fixed Cost (FC) + Variable
Cost (VC).
 A fixed cost is a cost that does not change with an
increase or decrease in the amount of goods or
services produced.
 A variable cost is a constant amount per unit
produced or used.
Variable Cost = cost per unit * number of units
produced.
Direct Vs. Indirect Cost
 Direct costs: are those costs which are related to the
product and amount of expense is easily assignable /
traceable to the product. (i.e. direct labor or direct
material)
Direct Cost= sum of the direct materials costs and direct
labor costs.
 Indirect Costs: Indirect costs go beyond the costs
associated with creating a particular product to include the
price of maintaining the entire company. (i.e. electricity and
rent).
They are usually called “Overhead costs” or “burden cost” !!
 Direct Vs. Indirect Cost
 Q: if the illumination cost is 685 K.D. , the total variable cost is 350
K.D. and the setup cost is 900 K.D. find the total direct cost.
- 685
- 1035
- 900
- 1250
 Q: when calculating the total direct cost , which is not considered?
- Labor cost
- Material cost
- Overhead cost
- All of the above
 Direct Vs. Indirect Cost
 Q: how does failing to allocate direct and indirect cost affect the
company?
- focus on Long term goals
- focus on Short term goals
- leads to making poor decisions
- managers will gain more power
 Cost of Goods Sold
 Cost of goods sold (COGS): are the direct costs attributable to the
production of the goods sold by a company. This amount includes
the cost of the materials used in creating the good along with the
direct labor costs used to produce the good.

 It excludes indirect expenses such as distribution costs and sales

force costs. COGS appears on the income statement and can be
deducted from revenue to calculate a company's gross margin. Also
referred to as "cost of sales."
 Marginal cost
 Marginal cost: the change in the total cost that arises when the
quantity produced is incremented by one unit, that is, it is the cost of
producing one more unit of a good.
 Marginal cost
 Q: Marginal cost = unit variable cost?
- True
- False

 Q: if the fixed cost equation is linear then the marginal cost equal
the unit variable cost:
- True
- False
 Marginal contribution
 Marginal contribution: Contribution margin is a cost accounting
concept that allows a company to determine the profitability of
individual products. The phrase "contribution margin" can also refer
to a per unit measure of a product's gross operating margin
calculated simply as the product's price minus its total variable costs.
This metric allows an entity to evaluate different areas of business
to determine which service or product line to emphasize based on
the highest margin.

 Q: Q: if the price of a product is 176 $ and the total variable cost

of all units is 168 $ , the marginal contribution is 8$:
- True
- False
Breakeven Point
 Q: if you are producing at a higher level than your breakeven
point, then you are safe:
- True
- False

 Breakeven point : when the Total Cost equals the total revenue
and the entity starts making profit.
 You can determine the time or the number of sales at which is
the breakeven point.
 Economy
 The time value of money (TVM) is the idea that money available at
the present time is worth more than the same amount in the future
due to its potential earning capacity.
 Economy
 Net Present Value (NPV): is the difference between the present
value of cash inflows and the present value of cash outflows.

 Note: it is valid for analyzing investments that have a life of 2

years or more !
 Economy
 The internal rate of return (IRR) on an investment or project is the
"annualized effective compounded return rate" or rate of return
that makes the net present value of all cash flows (both positive
and negative) from a particular investment equal to zero.
 IRR calculations are commonly used to evaluate the desirability of
investments or projects. the project with the highest IRR would be
considered the best and undertaken first.
 MARR = Minimum attractive rate of return.
 Economy
 Q: the IRR includes:
- cash inflow
- length of period
- capital
- all of the above
 Economy
 Q: when to use NPV not IRR?
A: when there is a change in discount rate, it is better to use the
NPV.

 This is the difference between them.

 Economy
 Q: If the IRR is 15% & the MARR is 12%, the investment should be
accepted.
- True
- False
 Economy
 Annual Worth (AW):The Annual Worth method evaluates the
desirability of an alternative as an equal annual series of cash
flows during the study period. Basically, it looks at the annual
equivalent of all the cash flows of an alternative.
 Economy
 Payback Period: Payback period is the time in which the initial cash
outflow of an investment is expected to be recovered from the cash
inflows generated by the investment.

𝐼𝑛𝑖𝑡𝑖𝑎𝑙 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
 Payback Period= 𝑐𝑎𝑠𝑕 𝑓𝑙𝑜𝑤 𝑝𝑒𝑟 𝑝𝑒𝑟𝑖𝑜𝑑
 Economy
 Return on investment (ROI): is the benefit to an investor resulting
from an investment of some resource.

𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒
 Return on investment =
𝑖𝑛𝑖𝑡𝑖𝑎𝑙 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
 Economy
 Q: the time value of money when interest rate is yearly is:
- relevant only to merchandising firms
- relevant only when deciding on alternatives with cashflows of one month to one year
- none of them
- relevant only when deciding on alternatives with cashflows of two or more years
 Economy
 Q: Two investments have the same total cash inflows and the same
payback period. Therefore:
- These two investments are equally desirable.
- These two investments must be identical in terms of the present value of the cash inflows.
- The payback period method can help decision makers choose between these two investments.
- One pattern of cash inflows may be preferable to the other investment's pattern of cash inflows
 Economy
 Q: results from npv and irr may differ depending on:
- cost of capital
- length of useful life
- all of them
- initial investment
 Economy
 Q: when the cashflow repeats itself then the annual equivalent
worth will be the same for all repeating cycles:
- True.
- False.
 Accounting
 Q: which of the following equations is correct:
- Assets = Liabilities + Equity
- Liabilities = Assets + Equity
- Equity = Assets + Liabilities
- Income = Liabilities + Equity
 Accounting
 Q: Which of the following considered as a liability:
- Lands
- Inventory
- Accounts Payable
- All of the above
 Accounting
 Examples:
 Typical Asset Accounts: Cash , Accounts Receivables, Inventories,
Investments, Equipment , Building/land, Vehicles, Prepaid expenses,
Marketable Securities, Patents & Trademarks.
 Typical Liability Accounts: Notes Payable, Accounts Payable &
Taxes Payable.
 Typical Equity Accounts: Paid-in Capital, Retained Earnings (incomes
or expenses)
 Accounting
 Income statement: summarizes the profits or losses of a company
at the stated period of time.
- single step or multi-step income statements.
- shows if the company‟s operations resulted in profits or losses.

 Balance Sheet: a financial statement that reports the assets,

liabilities & equity of a company at a particular date.
 Accounting
 Q: the expenses in income statement includes:
- Material cost
- overhead cost
- Cost of goods sold (cogs)
- All of the above
 Accounting
 Q: the income statement shows what the company owns:
- True
- False
 Accounting
 Book value: is the term which means the value of the firm as per
the books of the company. It is the value at which the assets are
valued in the balance sheet of the company as on the given date.
 The net book value of a noncurrent asset is the net amount
reported on the balance sheet for a long-term asset.
 The book value of a long term asset is the original acquisition cost
less accumulated depreciation.
 Market value: The price an asset would fetch in the marketplace.
 Salvage value: an estimate of the value of a fixed asset at the
end of its useful life.
 Depreciation
 Depreciation: the reduction in value over time of an asset.
 Always related to tax.
 Depreciation calculation methods:
- Straight line.
- Declining balance.
- Sum of the years.

1
 Depreciation rate for straight line method:
𝑛
 Depreciation
 Which assets are eligible for depreciation?

 Net Book Value Vs. Gross Book Value?

 Depreciation
 Q: historic cost of an asset minus depreciation over the years:
- Market Value
- Salvage Value
- Net book Value
- Depreciation cost
 Depreciation
 Q: Salvage value is always equal to the market value:
- True
- False
 Accounting
 Five Characteristics of an Effective (Successful) Budget:
- Must be realistic
- Should be flexible
- Should be evaluated regularly
- Must be a well planned and clearly communicated
- Should have a simple format
 Statistics
 Q: What represents the lower part of the data?
- median
- mode
- first quartile
- third quartile
 Statistics
 Q: the value that appears most often in a set of data?
- median
- mode
- standard deviation
- variance
 Statistics
 Q: the "middle" of a sorted list of numbers?
- median
- mode
- standard deviation
- variance
 Statistics
 Q: which measures the spread of data?
- variance
- Range
- standard deviation
- All of the above

 Q: which of the following is not measures of the dispersion?

- variance
- Range
- standard deviation
- mode
 Precision & Accuracy
 Measurement accuracy: it is the degree to which the measured
value agrees with the true value of the quantity of interest.

 Measurement precision: it is the repeatability of the measurement

system. High precision means that the random errors in the
measurement procedure are small.
Precision & Accuracy
 Distributions
 Q: 95% of the values lie within µ ± 2σ , in which distribution:
- Normal
- Binomial
- Exponential
- Poisson
 Normal Distribution
 The value of E(X)= µ determines the center of the probability
density function
 The value of V(X)= σ𝟐 determines the width or spread of the
probability density function
Normal Distribution
 Distributions
 Q: What distribution has the memoryless property?
- normal
- binomial
- poisson
- exponential
Exponential Distribution
 The exponential distribution is often used in
reliability studies as the model for the time until
failure of a device.
 Mean and Variance of Exponential Distribution:
 Distributions
 Q: a non-stationary process It is better modeled using?
- normal
- binomial
- Poisson
- exponential
Poisson Distribution
Discrete Distribution
 Distributions
 Q: Which distribution has the mean
- Normal
- Binomial
- Uniform
- exponential
 Uniform Distribution
 Mean µ =

 Median =

 For Discrete :
Variance =
 For Continuous:
Variance =

 Equal probability for each time.

 Distributions
 Q: In a binomial distribution with X is random variable:
- X is independent
- each try has the same probability
- there are two outcomes
- all of the above

 In a binomial and bernoulli distributions random variable X should

be independent.
Binomial Distribution
 Binomial Distribution
 Binomial distribution is repeated bernoulli trials
 In bernoulli n=1
 Distributions
 Skewness: skewness is a measure of the asymmetry of the
probability distribution of a real-valued random variable about its
mean.
 Distributions
 Q: A histogram with a long right-hand tailed is:
- normal.
- centered.
- right skewed.
- left skewed.
 Statistical hypothesis testing
 Q: How to test if the mean of a population is equal to 11?
A: Hypothesis testing

 Q: Which test is used to test if the mean is equal to a specific

number and the variance is unknown?
- Z-test
- t-test
-
- F-test

 The 𝐻0 and 𝐻1
 Statistical hypothesis testing
 Q: to answer the question whether or not the mean is greater than
11 , we use:
- t-test
- f-test
- hypothesis testing
- n-test
 Statistical hypothesis testing
 Type 1: test on one mean , variance known: z-test

or
 Type 2: : test on one mean , variance unknown: t-test

 Type 3: test on equality of two means , variances equal:

t-test
 Statistical hypothesis testing
 Type 4: test on equality of two means , variances not equal:
z-test
 Type 5: test on variance:
- test
 Type 6: test on equality of two variances:
F-test
 Statistics
 Q: How to make the confidence interval larger?
- Increase the sample size
- decrease sample size

 A confidence interval gives an estimated range of values which is

likely to include an unknown population parameter.
 The confidence level represents the theoretical ability of the
analysis to produce accurate intervals.
 A 95% confidence level implies that 95% of the confidence
intervals would include the true population parameter.
 Regression
 Regression: an approach for modeling the relationship between a
scalar dependent variable y and one or more explanatory
variables (or independent variables) denoted X.
 Simple linear regression:

 Multiple linear regression:

 Regression
 Q: which of the following is used to evaluate regression Accuracy?
- 𝑋 2 -test
- 𝑅 2 -test
- 𝑅 3 -test

 Actual value of predicted variables is affected by confidence

interval.
 Regression
 Other tests commonly used in Regression:
- t-test
- F-test
- Sum of Squares
 Regression
 Q: multiple regression analysis:
- does not produce measure of error probability.
- measures the change in one variable associated with the change in more than one variable.
- measures the change in one variable associated with the change in another variable
 Regression
 Q: the equation: $2500 + $3x was probably found
using:
- linear programming
- dynamic programming
- simple linear regression
- multiple linear regression
 Supply Chain
 Supply chain management is the management of flows between
and among supply chain stages to maximize total supply chain
profitability.
 The Objective of a Supply Chain is to Maximize overall value
created.
 Value is correlated to supply chain profitability (difference
between revenue generated from the customer and the overall cost
across the supply chain).
 Supply chain success should be measured by total supply chain
profitability, not profits at an individual stage.
 Supply Chain
 Definition: Supply chain responsiveness -- ability to:
- respond to wide ranges of quantities demanded
- meet short lead times
- handle a large variety of products
- build highly innovative products
- meet a very high service level

 Increasing responsiveness results in higher costs that lower

efficiency.
 Supply Chain
 Q: If the supplier hides the cost from other parts in the
network, the supply chain lacks:
- Responsiveness.
- Visibility.
- Efficiency.
- Certainty.
Supply Chain
Responsiveness

High

Low
Cost
High Low
 Supply Chain
 Drivers of Supply Chain Performance: - Facilities.
- Inventory
- Transportation
- Information
- Sourcing
- Pricing.
 Supply Chain
 Q: What happens to the Cost when a new Warehouse is added to
the network:
- Rise
- Decline
- Rise then decline
- Decline then rise
 Supply Chain

Transportation
Costs

Number of facilities
 Supply Chain

Inventory
Costs

Number of facilities
Supply Chain

Number of
Facilities

Response Time
 SWOT
 Internal Analysis: - Strength
- Weakness
 External Analysis:- Opportunities
- Threats
 Output of SWOT analysis is (1) company‟s current position (2)
direction to be taken by company next 3 – 5 years.
 SWOT
 Q: where to look in the company to identify its strength &
weakness?
- customer
- potential customer
- products
- competitive companies
 SWOT
 Q: the swot analysis is used to:
- build on strength and resolve weakness
- both build on strength and resolve weakness and exploit opportunities and avoid threats
- exploit opportunities and avoid threats
- none of them
 SWOT
 Q: in swot , strength and weakness are identified by looking at:
- potential customers
- inside the firm at its resources
- competitors
 SWOT
 Q: strength and weakness in swot analysis are essentially external
to the organization:
- true
- false
 Mission
 Q: What should the Mission Statement include?
- Why do we exist? (Purpose)
- Whom are we serving?
- What do we do to serve them?
- All of the above.
 Vision
 Vision - Company Aspiration:
• Business performance
• Ranking in industrial sector
• Market Share
• Others.
 Mission , Vision & Values
 Q: “Zain will become a global wireless operator by 2011 through
a 3x3x3 profitable expansion plan.” This is a:
- Mission
- Vision
- Value
- Objective
 Mission , Vision & Values
 Q: “To cement Zain as a leading global mobile operator that
provides professional, world-class mobile and data services to all
customers, wherever they are, worldwide.” This is a:
- Mission
- Vision
- Value
- Objective
 Mission , Vision & Values
 Q: “ Integrity “ This is a:
- Mission
- Vision
- Value
- Objective
 Management
 Manager Vs. Leader?

 Steps of planning
 Management
 Planning (forecasting, setting objectives, action planning)
 Organizing (selecting organizational structure, delegating,
establishing working relationship, administering policies,
establishing procedure)
 Leading (deciding, communicating, motivating, selecting/developing
people)
 Controlling (setting performance standards,
evaluating/documenting/correcting performance)
 Management
 Q: the objective of management control of a manager includes:
- intensity and breadth
- motivate , incentive and fairness
- quality and quantity
- consistency and comparability
 Management
 Authority: Authority is the right to give orders and the power to
exact obedience.

 Responsibility: Responsibility is an obligation of individual to

perform assigned duties to the best of his ability

 Accountability: Every employee/manager is accountable for the job

assigned to him. He is supposed to complete the job as per the
expectations and inform his superior accordingly.
 Management
 Business organizations:
- Sole/individual
- Partnership
- Limited liability company WLL
- Shareholding Company
Critical Path Method (CPM)
 Critical Path Method (CPM)
 For each activity, three time estimates are taken:
The Most Optimistic
The Most Likely
The Most Pessimistic
The Duration of an activity is calculated using the following formula:

Where te is the Expected time, to is the Optimistic time, tm is the most

probable activity time and tp is the Pessimistic time.
 Optimization
 Optimization: to find optimal solution for the objective function that
satisfies all the constraints.

 Q: Optimization models seek to find the objective function value

that optimizes the decision variables and satisfies all the
constraints.
- True
- False
 Linear Programming
 Q: Given the following LP model, which of the following points is
feasible?

a) (12/7,20/7)
b) (-1,4)
c) (3,5)
d) a & c
 Linear Programming
 Q: Given the following LP model, which of the following points is
optimal?

a) (12/7,20/7)
b) (4,4)
c) (3,5)
d) a & c
 Linear Programming
 Types of LP models: - static & dynamic
- linear & non-linear
- integer & non-integer
- deterministic & stochastic

 Solving methods: - Simplex algorithm

- Big M method
- Two-phase method
 Simplex method only works with "≤" type inequality.
 Slack Variable
 a slack variable is a variable that is added to an inequality
constraint to transform it to an equality. It represents Unused
resources
 the slack variable cannot take on negative values, as the Simplex
algorithm requires them to be positive or zero.
 If a slack variable associated with a constraint is zero in a given
state, the constraint is binding.
 If a slack variable is positive in a given state, the constraint is non-
binding.
 If a slack variable is negative in a given state, the point is infeasible,
and not allowed, as it does not satisfy the constraint.
 Slack Variable
 Binding Constraint: If an inequality constraint holds with equality at
the optimal point, the constraint is said to be binding. the binding
constraint is the factor that the solution is more dependent on. If you
change it, the optimal solution will have to change.
 Non-binding Constraint: If an inequality constraint holds as a strict
inequality at the optimal point (that is, does not hold with equality),
the optimization problem would have the same solution even in the
absence of that constraint. The non-binding constraint doesn't affect
the optimal solution and can be changed without changing it.
 Slack Variable
 Q: What do we use with ≤ constraint?
- Artificial variable
- Slack Variable
 Surplus Variable
 A surplus variable represents the amount by which solution values
exceed a resource.
 It is added to greater than or equal to (≥) type constraints in order
to get an equality constraint.
 Surplus variables like slack variables carry a zero coefficient in the
objective function.
 Linear Programming
 A linear program is unbounded if the optimal solution is un-
bounded, i.e. it is either ∞ or −∞ Note that the feasible region
may be unbouded.
 A feasible solution to a linear program is a solution that satisfies all
constraints.
 If there are n variables and m constraints, a solution with at most m
non-zero values is a basic solution.
 Linear Programming
 in a basic solution, n−m of the zero-valued variables are
considered non-basic variables and the remaining m variables are
considered basic variables.
 Linear Programming
 Q: If all non-basic variables have a non-negative coefficient in the
objective function, this is a:
- infeasible solution
- unbounded LP
- Optimal solution
 Linear Programming
 Q: the LP is unbounded if the value of the non-basic variable is
zero in the final iteration.
- True
- False

 Q: the decision variables constraint should all be:

-≥0
-≤0
->0
-<0
 Artificial Variable
 Artificial variables are added to those constraints with equality
(=) and greater than or equal to ( ≥ ) sign.
 Co-efficient in the Z – objective function: -M for Maximization and
+M for minimization.
 It is initially used but later on eliminated to get an initial solution to
an LP problem.
 Artificial variables have no meaning in a physical or economical
sense.
 Artificial Variable
 Q: in two-phase method, if some artificial variable has a positive
value in the optimal solution?
- Unbounded LP
- Infeasible solution
- non-binding constraint
- binding constraint
 Linear Programming
 Duality: optimization problems may be viewed from either of two
perspectives.
 Sensitivity Analysis: study of how the uncertainty in the output of
a mathematical model or system (numerical or otherwise) can be
apportioned to different sources of uncertainty in its inputs
 Linear Programming
 Dual function of prime function:
 if primal is unbounded ≈ dual is infeasible
 If dual is unbounded ≈ primal is infeasible
Linear Programming
 Linear Programming
 Strong Duality Vs. Weak Duality
 Linear Programming
 Relaxation: the linear programming relaxation of a 0-1 integer
program is the problem that arises by replacing the constraint that
each variable must be 0 or 1 by a weaker constraint, that each
variable belong to the interval [0,1].

 If the optimal solution to the linear program happens to have all

variables either 0 or 1, it will also be an optimal solution to the
original integer program.
 Linear Programming
 In a maximization problem, the relaxed program has a value
greater than or equal to that of the original program.

 in a minimization problem, the relaxed program has a value

smaller than or equal to that of the original program.
 Linear Programming
 Q: if the coefficient of the nonbasic variable in the objective function is
changed, then the value of the objective function will change.
- True
- False
 Q: when the artificial variable in the final Z row in the simplex method
is = 0, then the LP id unbounded.
- True
- False
 Q: if 𝑥 ∗ is the optimal solution to the primal and 𝑦 ∗ be the optimal
solution to the dual. Then 𝑐 𝑡 𝑥 ∗ = 𝑏 𝑡 𝑦 ∗
- True
- False
 Linear Programming
 Q: LP with all constraints being of type < are always feasible:
- True
- False

 Q: If x* is feasible solution for the primal , and y* is feasible solution

for the dual , then bx* = cy* :
- True.
- False.
Location Problem
 Q: In Location Problems , the objective is to :
- Minimize transportation Cost
- Minimize transportation time.

 Assignment problem: is a special type of linear programming

problem which deals with the allocation of the various
resources to the various activities on one to one basis. It does it
in such a way that the cost or time involved in the process is
minimum and profit or sale is maximum.
Location Problem
 The transportation problem is concerned with finding the
minimum cost of transporting a single commodity from a given
number of sources (e.g. factories) to a given number of
destinations (e.g. warehouses).

 Balanced Transportation problem.

 Dummy Source & Dummy destination.

Location Problem
 Q: in a balanced Transportation problem, the number of basic
variable is m+n, where m is no. Of supply and n is no. Of
demand.
- True
- False
 Layout Planning
 The Demand Constraint in layout planning: the amount of items
produced should be at least as the customers demand.

 The Capacity Constraint in layout planning: the amount of items

produced should not exceed the capacity.
 Layout Planning
 Q: In facility decisions, demand allocation studies:
- what processes are performed at each facility
- where facilities should be located
- how much capacity should be allocate to each facility
- which market is served by which plant? which supply sources are used by a plant?
 Work Design
 Q: the amount of time that should be allowed for an average
worker to process one work unit using the standard method and
working at a normal pace:
- Standard time.
- Allowance time.
- Normal time.
- Average time.
 Work Measurement
 Q: normal time is calculated after adding an allowance time for
the worker.
- True
- False

 Normal time: it is a time taken to perform a work cycle at a 100%

performance.
 standard time: To account for the rest breaks, an allowance is
added to the normal time in order to determine an allowance time
for the worker to perform the task through out the shift.
 Tstd = Tn (1 + Apfd)
 Work Design
 Task: it is an amount of work that is assigned to a worker or for
which a worker is responsible.
 Work elements: it is a series of work activities that are logically
grouped together because they have a unified function within the
task.
 Basic motion elements: they are actuations of the limbs and other
body parts while engaged in performing the task.
 Work Design
 Q: What is utilization?
- Idle time/total time.
- Busy time/idle time.
- Busy time/total time.
- idle time/busy time.
 Work Measurement
 Q: Which of these is a techniques used to rate the performance of
a qualified worker?
- Direct time study
- Predetermined motion time systems
- Standard data systems
- All of the above
 Work Measurement
 Work measurement: it is a set of four techniques that are
concerned with the evaluation of a task in terms of the time that
should be allowed for an average human worker to perform that
task:
1. Direct time study
2. Predetermined motion time systems
3. Standard data systems
4. Work sampling
 Direct time study (DTS): it involves direct observation of a task
using a stopwatch or other chronometric device to record the time
taken to accomplish the task by timing each work element
separately.
 Work Measurement
 Worker efficiency: it is the amount of work accomplished during the
shift expressed as a proportion of the shift hours.
 Defect rate: it is the fraction of parts produced that are defective.
 Availability: it is the proportion of time the equipment is available
to run relative to total time it could be used.
 Batch: processing refers to operations in which work units are
processed in groups (i.e., batches)
 Setup time: refers to the time lost for the changeover of the
machine between batches
 Work Measurement
 Disadvantages of batch processing:
• Time lost in equipment setup (i.e., lost production time) Example:
time lost in changing the machine tool for the next part style
• Work-in-process (WIP): the accumulation of large quantities or
amounts of work units in the sequential processing system Example:
the accumulation of work units in front of a machine
 Histogram
 A statistical graph consisting of bars representing different
members of a population, in which the length of each bar indicates
the frequency or relative frequency of each member.
 A useful tool because the analyst can quickly visualize the features
of the data, such as:
• Shape of the distribution
• Any central tendency in the distribution
• Approximations of the mean and mode
• Amount of scatter in the data
Histogram
 Pareto chart
 Special form of histogram in which attribute data are arranged
according to some criterion.
Pareto chart

Pareto Chart – CRF

 Pareto Chart
 Based on Pareto‟s Law*: “the vital few and the trivial many”
 Often identified as the 80%-20% rule
• 80% of a nation‟s wealth is owned by 20% of the population
• 80% of sales are accounted for by 20% of the SKUs.
• 80% of problems come from 20% of causes.

- * Principle or rule or law.

Scatter Diagram
 Cause & Effect Diagrams
 A graphical-tabular chart used to list and analyze the potential
causes of a given problem
 Can be used to identify which causes are most consequential and
how to take corrective action against them
 Also known as a “fishbone diagram”
 Diagrams
 Q: what graphical chart shows variation in data:
A: Box plot
 Diagrams
 Q: What is common between Pareto and fishbone?
- both statistical representation
- both represent a problem
- both difficult to obtain

 Q: what is the difference between them?

A: both look for causes that lead to problems. But Pareto shows the
reason first.
 Diagrams
 Q: which graph shows variation of data?
- histogram
- pareto
- fishbone
- control chart
 ISO Standards
 ISO 9000: Quality Management Systems-Vocabulary

 ISO 9001:Quality Management Systems-Requirements

 ISO 9004:Quality Management Systems-Guidelines for

Improvements

 ISO 9000 is a family of standards that describe a Quality

Management System. ISO 9001 is the document that contains the
requirements. Companies register to ISO 9001.
 Quality
 Quality can take many forms:
• quality of design … product design reflects customer needs.
• quality of conformance … product manufacture meets specs.
• quality of performance … product performance (after sale) meets
customer needs.
 Quality
 Productivity focuses on doing something more efficiently; i.e. doing
it right.
 Productivity = output/input
 Quality
 Control charts:
 Quality
 Q: if the product does not meet design, this is due to:
- inadequate material handling
- inadequate layout planning
- inadequate quality standards

 The acceptable quality limit (AQL): is the worst tolerable process

average (mean) in percentage or ratio that is still considered
acceptable; that is, it is at an acceptable quality level
 Quality
 Q: if the quality of product declines, the loss of products due to
defects :
- increases linearly
- increase exponentially
- decreases linearly
- decreases exponentially
 Q: wanting to meeting requirements with continuous improvement of
the process is:
- quality improvement
- quality assurance
- quality management
 Quality
 Quality Assurance (QA): is a management approach that places
emphasis on preventing errors in management processes by
ensuring that practice is in accordance with documented
procedures.
 Total Quality Management (TQM): is a management approach
that places emphasis on continuous process and system
improvement as means of achieving customer satisfaction to ensure
long-term company success.
 Quality
 Process Capability:
• Process Capability refers to the ability of a process to produce
products or provide services capable of meeting the specs set by
the customer or designer.

 Process Capability Indices:

• Process capability indices are mathematical ratios that quantify the
ability of a process to produce products within the specifications.
• The process capability indices compare the spread of the
individuals with the spec limits.
 Quality
 Q: Conformance to a quality specification expressed as a specified
range around a target is:
- End-zone conformance.
- Target conformance.
- Goalpost conformance
- Absolute quality conformance

 Q: Conformance to a quality standard that requires all products or

services to meet exactly the target value with no variation allowed is:
- End-zone conformance.
- Target conformance.
- Goalpost conformance
- Absolute quality conformance
 Taguchi‟s Loss Function
 Taguchi’s Loss Function is a Quadratic Function.
 Taguchi‟s Loss Function
 Q: The Taguchi Quality Loss Function demonstrates that as the
quality measure of a product declines, the loss due to quality:
a- increases as a linear function.
b- decreases as a quadratic function.
c- increases as an exponential function.
d- increases as a quadratic function.
 Bill of materials
 Q: The Bill of materials shows:
a- the components of the product
b- the processes involved in making the product
c- the machines used in each process
d- b & c
 Route Sheet
 Route sheet: The route sheet documents which machines to use, their sequence as well
as summarizing all the information which is necessary to manufacture the part. This
includes detailed information for the machinist related to machine settings for example
(speeds, feeds, depths of cut, etc.) as well as cutting tools to be used.
Route Sheet
Part Name : Veneered Counter Top
Stock No. 002
Operation Description Machine Pressure Speed Feed Depth Tools Timing
No. Name & Heat of cut Setup Run time
time
01A Cut to length & CNC - 13000 - 18 Vertical 3 min 05-06
width RPM MM 12MM min
Bit
02A Pressing Veneer Pressing 150 atm. - - - Pressing 2-3 min 5-7 min
on MDF machine 60 C. Machine
obtained shape

03A Edging Edge 205 C. - 8 - Edge 1-2 min 4-5 min

Bending M/min Bending
04A Polishing Spray - - - - Spray 2-3 min 15-20
guns guns min
05A Dispatch Manual - - - - - - 5 min
 Flow Process Chart
 Graphical and symbolic representation of the processing activities
performed , analysis of a material or workpiece being processed.
 ABC analysis
 Q: in ABC analysis of inventory control , which of the categories
are the most valuable items and require tighter control:
-A
-B
-C
 ABC analysis
 The ABC analysis suggests that inventories of an organization are
not of equal value. Thus, the inventory is grouped into three
categories (A, B, and C) in order of their estimated importance.
 „A‟ items – 20% of the items accounts for 70% of the annual
consumption value of the items.
 „B‟ items - 30% of the items accounts for 25% of the annual
consumption value of the items.
 „C‟ items - 50% of the items accounts for 5% of the annual
consumption value of the items.
 Note: These numbers are not rigid and differ from theory to other
(i.e. the 20% can be 10%)
 Inventory
 Q: which of the following is considered inventory(keep track of)?
- raw materials
- work in process
- finished goods
- all of the above

 Inventory: what to order , how much to order and when to order

with minimum cost.
 Inventory
 Q: the economic order quantity is?
- average level of inventory
- optimum lot size
- capacity of a warehouse
- lot size corresponding to break-even point
 Inventory
 Q: the economic order quantity is used when the demand is
stochastic.
- true
- false
 Inventory
 the economic order quantity assumptions:
- production is instantaneous.
- delivery is immediate.
- demand is deterministic.
- demand is constant.
- set up cost is fixed.
Inventory
 Inventory
 Q: The ordering cost is incurred when product is finished
manufacturing?
- true
- false
 Inventory
 Safety Stock: a level of extra stock that is maintained to mitigate
risk of stockouts (shortfall in raw material or packaging) due to
uncertainties in supply , demand or manufacturing.
 Service level: represents the expected probability of not hitting a
stock-out. This percentage is required to compute the safety stock.
 The reorder point (ROP): is the level of inventory which triggers an
action to replenish that particular inventory stock.
 Ordering Cost: the costs incurred every time you place an order.
 Inventory
 Q: Safety Stock is only needed for finished goods and sub-
assemblies:
- True
- False
 Inventory
 Q: as the number of orders increases , the holding cost:
- decreases
- increases
- stays the same
- decrease then increase
 Facilities
 Q: If the fixed cost of the facility increases, does it become less
desirable to have many local facilities:
- True.
- False.
 Facility Layout
 Facility Layout: the location of the various/units of the facility
within the premise of the facility.
 Routing Plan: Computing the most cost-effective route involving
several nodes or stopovers by minimizing the distance traveled
and/or time taken.
 Facility Layout
 Objectives of Facility Design: - Flexibility
- Material handling
- Capacity
- Safety
- Integration
 Product layout: large volumes of one product.
 Process layout: small volumes of many products.
 Facility Layout
 Q: Which of the following is not considered in SLP approach ?
- space relationship
- cost analysis
- flow of material
- activity relationship
 Material Handling
 Q: Which equipment is used with belts?
- conveyor
- heist
- monorail
- forklift
 Material Handling
 Q: Which equipment is used with pallets?
- crane
- heist
- monorail
- forklift

 Also use pallet jacks

 Material Handling
 Monorail: a single rail
 Heist: lifting a free load using a hook
 Palletizer: complete unit of load
 Crane: combination of a heist and a monorail
 Forecasting
 Definition: using the historical data to determine the direction of the
future trends.

 Some Forecasting methods: - Exponential smoothing

- Moving average
- Weighted moving average
- Linear
 Forecasting
 Q: which forecasting method is better used with seasonal demand?
- Exponential smoothing
- Moving average
- Weighted moving average

 Q: Time series is used as historical data for forecasting

- True
- False
 Forecasting
 Q: When it is better to use moving average method?
- forecasting long-term trends
- forecasting short-term trends
- forecasting seasonal trends

 Q: Forecasting demand in IE uses:

- Historic sales
- marketing
- demand trend
- all of the above
 Queuing theory
 Queuing theory: the study of waiting time.
 Interarrival time: time between two successive events.
Queuing theory
 Queuing theory
 Q: in Queuing theory , what does (M/D/1) mean?
A: it means:
- the interrarival time is exponentially distributed.
- the service time is constant.
- one server
Queuing theory
Queuing theory
 Queuing theory
 Q: in Queuing theory (M/D/5) means there are 5 servers working.
- True
- False

 Q: a queue with (M/D/2) is:

- M servers , exponential arrivals , constant serving time
- M servers , exponential arrivals , constant serving time
- D servers , exponential arrivals , poisson serving time
- none of the above
 Productivity & Profitability
 Q: What does productivity represent?
- input / output
- input + output
- output / input

 Q: How to increase Profitability?

- minimizes costumers satisfaction
- minimizes utilization
- minimizes cost
- minimizes employees satisfaction

𝐴𝑐𝑡𝑢𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡
 Efficiency =
𝑒𝑓𝑓𝑒𝑐𝑡𝑖𝑣𝑒 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦
𝐴𝑐𝑡𝑢𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡
 Utilization =
𝑑𝑒𝑠𝑖𝑔𝑛𝑒𝑑 𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦
 Questions
 Q: Which is a numerical data?
- Height
- gender

 Q: what is the type of this equation (y = 100 + 10x)?

- polynomial
- linear
- quadratic
- cubic
 Questions
 Q: Which is a value added action?
- Operation
- shipping

 Gant chart gives information about production schedule.

 Standard time = Normal time + Allowance.
 Questions
 Q: Which is a measure of how often the machine fails?
- Efficiency
- Utilizing
- Reliability

 Q: Static system are those who their state changes over time
- True
- False
 Q: what can an industrial engineer do in a public transportation
company?
 Questions
 Q: a business plan is the brief description but a strategic plan is
more detailed.
- True
- False

 Q: which transportation method does not consider operator cost?

- Rail
- Pipeline
- Truck
Good Luck !