IE4530 LEAN SYSTEMS

REVIEW GUIDE FOR FINAL EXAM

WHEN: Thursday, 12/9/21, 7:30-9:30am (in-person)

COVERAGE:
 Comprehensive for both lecture and lab materials – i.e., anything covered this term is fair
game.
 Will definitely be problem(s) on input analysis (hypothesizing & fitting distributions, &
KS / Chi-Square goodness of fit tests), output analysis (terminating & non-terminating
systems, estimating number of replications needed, interpreting, and calculating
confidence intervals), and comparison of alternatives (paired-t)
 For lab materials, additional emphasis on concepts from more recent labs is likely,
including material handling (free space, network, conveyor, fixed vs on-demand routing,
types of material handlers, loading/unloading, worker & vehicle resource configuration);
storage, detached queues, and queue search/scan and operations; use of control entities;
use of data sources for PT and IAT/AT data; use of views, status animators, watches,
breakpoints; more complex resource usage scenarios (holding resources across multiple
servers, task sequences), tools for output analysis and comparison of alternatives in Simio
(responses and controls, half widths, SMORES plots, performing paired-t, subset
selection, select best using KN or GSP, optquest, custom statistics)
 See guides for midterms #1 & #2 for earlier topics and examples

ALLOWED:
 Four sheets of notes (typed and/or handwritten) double sided or 8 pages single sided.
 Simple calculators
 You will be provided at the exam with any additional tabular reference materials needed
(such as statistical probability or critical value tables) as well as queuing model and
property reference sheets. These do not count against your four sheets

NOT ALLOWED:
 No sharing of materials will be allowed during exam.
 No devices with communication capabilities (cell phones, laptops, calculators with
WIFI/bluetooth/infrared enabled, etc).
 Cheating in any form. Keep your eyes on your own paper.

NOTE:
 If you are wearing a hat/cap, rim must be turned towards back
 If you must leave the room for any reason during the exam, you will have to turn in your
exam and will not be allowed to return (i.e., use the restroom, get tissues, water, etc.
BEFORE the exam).
 Cell phones are to be silenced and kept away during the exam
1
The questions in this review guide are from old exams.
In this guide, I have only included a summary of topics, the types of questions you might see, and 1-2 sample questions
under each major area; do a quick browse of the midterm review guides for representative problems on earlier topics.
Between all the review guides, there is significantly more than one final exam worth of questions; I have included points
on most questions to give you some idea of the % weight of the questions on the past exams (100pts being total). Rather
than working every problem, I suggest making a quick pass of the guides and your previous exams and quizzes to
distinguish what you have a fair idea how to solve & what you need to brush up on and focusing on the latter. Problems
are in topic order here. This will likely not be the case on the exam.
Not all problems in the guides have solutions. I will be happy to discuss any questions you have on the
wording/interpretation of any problems, or on the solutions I have provided to problems. I will not, however, answer any
questions on the solution to problems that do not have solutions given.

Lean Concepts
Covered in both midterm exams; see their review guides, class quizzes, and the class case study notes for more examples.
Specific topics: general lean concepts (from intro); work & visual control, standardization, production leveling, rapid
setup, quality, ZQD, Poka-Yoke, TPM, VSM, lean supply chain, variability reduction, metrics & OEE
Types of problems: case studies, concept questions (T/F, M/C, short answer)
Example problem:
1. [10pts] See bank problem on handout. Discuss what lean improvements you would look at making to improve the
processes at this bank.

 Cross-train officers so can serve any loan or account customer (single

queue, multiple servers rather than multiple queues with single servers;
eliminates idle time for some officers while other officers have queue).
 If officers are cross-trained, receptionist doesn't have much role. Can have
a computer terminal / kiosk check-in to keep order (would additionally allow
collecting data on wait and service times).
 Provide ability for customers to pre-complete forms for loans, accounts
online or at a kiosk – so very little processing time with officer for
signatures and any follow-up questions.
 Authorize officers to do final review and approval (so don't need manager to
approve while customer waiting).
 Distribute printers to reduce travel time.
 Online appointment system to reduce variability in arrival times (reducing
wait times).

Basic Statistics
These may be part of any problem. Make sure you know how to calculate sample mean and standard deviation, and CV on
your calculator (I will not provide formulas during the exam), calculate distribution probabilities and percentiles (given
tables, or with formulas from earlier in semester). Be able to interpret distribution parameters and write or interpret
distribution expressions in Simio.
Example problems:
2. [4pts] A processing time is specified in Simio as 10 + Random.Normal(14,5) minutes. What is the average and
standard deviation of the processing time?

3. [4pts] Arrivals are exponentially distributed with an arrival rate of 45 per hour. Write the Simio IAT expression for
this case.

2
Queuing & Factory Physics Concepts
Covered in both midterm exams; see earlier review guides and class quizzes for more examples
Specific topics: Kendall Notation, calculating queue metrics (equations), understanding what happens when arrival
rates/PT/utilizations change, understanding variability and bottleneck concepts in series queuing systems
Types of problems: Concept (T/F, M/C, Short answer), Calculation
Example problem:
4. [10pts] See bank problem on handout. Apply your knowledge of queuing theory and variability to calculate
approximate utilizations for each type of employee. Show work and provide explanation to justify your estimates.
What looks like the biggest bottleneck? (and why?)

Loan and account employees can all be treated as M/M/1 queues; tellers
M/M/2

Commercial loan officer:

Arrival rate = 30*.02 = .6 / hr
Service rate = 1 / (70/60) = 0.857 / hr
Utilization = .6 / .857 = 70%
Residential loan officer:
Arrival rate = 30*.05 = 1.5 / hr
Service rate = 1 / (32/60) = 1.875 / hr
Utilization = 1.5 / 1.875 = 80%
Accounts officer:
Arrival rate = 30*.1 = 3 / hr
Service rate = 1 / (15/60) = 4 / hr
Utilization = 3 / 4 = 75%
Receptionist:
Arrival rate = 30*(.02+.05+.1) = 5.1 / hr
Service rate = 1 / (2/60) = 30 / hr
Utilization = 5.1 / 30 = 17%
Bank manager:
Arrival rate = 30*(.02+.05+.1)*.8 = 4.08 / hr
Service rate = 1 / (5/60) = 12 / hr
Utilization = 4.08 / 12 = 34%
Tellers:
Arrival rate = 30*.9 = 27 / hr
Service rate = 1 / (3/60) = 20 / hr
Utilization = 27 / (2*20) = 67.5%

The residential loan officer has the highest utilization. This

utilization is fairly high given the high variability (exponential
arrival – so standard deviation = 32 minutes).

3
Input Analysis
Covered in Midterm #1, see review guide for that exam for more examples.
Specific topics: know how to setup and run KS and Chi-Square goodness of fit tests and correctly interpret results.
Understand what passing or failing a goodness of fit test means. Know how to run distribution fit and goodness of fit tests
in MATLAB or JMP.
Types of questions: Calculation, Interpretation
Example Problems:
5. [15pts] One hundred observations of inter-arrival times are collected. A WEIBULL(1.8,55) distribution is
hypothesized by fitting parameters to the 100 flowtimes. Your significance level is 10%. You bin the observations
(same as used to fit the Weibull distribution) into 4 equal-probable bins, shown in the histogram below. The right end
point of each bin (in minutes) is shown on the X-axis, and frequency (count) on the Y-axis. Determine whether to
REJECT H0 or FAIL TO REJECT H0. Show all work.

= 0.10

Class Interval Observed Frequency Expected Frequency Test Statistic

Oi Ei = n*pi (Oi – Ei)2 / Ei
[0, 28] 18 25 1.96
[28, 45] 24 25 0.04
[45, 66] 34 25 3.24
[66 , ] 24 25 0.04
Chi Square Statistic (sum of individual bin statistics): 5.28

5.28 ?> 2 0.1, 4 – 2 – 1 (= 2.71 from table or using chiinv in Excel)

REJECT H0, we reject the null hypothesis that Xi ~ WEIBULL(1.8,55)

6. [5pts] Given the following MATLAB goodness of fit tests results for a dataset, what conclusion is reached?

4
Material Handling
Covered in midterm #2 with new topics in lectures since that midterm. See Midterm #2 guide for additional examples.
Specific topics include free space, network, conveyor, fixed vs on-demand routing, types of material handlers,
loading/unloading, worker & vehicle resource configuration
Types of questions: Model writing, configuration, or interpretation; Concept (T/F, M/C, Short Answer)
Example problem:

7. [30pts] The "High Water" ride at Blue Bayou Water Park in Baton Rouge has 3 slides. People climb up the tower
(which also serves as the queue when the line gets long). At the top, an operator lines up a person at the top of each of
the 3 slides. Once all 3 are lined up, the operator then makes them wait until at the bottom is totally cleared of the last
batch of people to go down first. Then the 3 people are allowed to go. It takes NORM(20,1) seconds for each person
to go down the slide, and then 10+EXPO(5) seconds for each of them to clear the pool at the bottom. Draw a Simio
model to model this ride, noting pproperty values for each element and also definitions for any entities, resources,
state variables, attributes, add-on processes needed.

Verification / Validation
Covered in Midterm #2, see that review guide for additional examples
Specific topics: Verification and validation definition, tests; common errors; use of views, status animators, watches,
breakpoints in Simio
Types of questions: Concept (T/F, M/C, Short Answer), Interpretation or Debugging of a model
Example problem:
8. [5pts] Suppose you've developed a Simio model of the airport security gate process on the handout, and now wish to
validate it. What data should you collect to help with this process, and what will you check to ensure validity? Your
answer should be specific to this problem (not just regurgitating from notes)
5
Collect data from the actual system on the queue length distributions (id
checker, each scan station), flow times, and utilizations. Compare against
model outputs to check they are similar.

Animate. Show passengers, managers and operators for the gate area to check
behaviors make sense (face validity)

6
Output Analysis & Comparison of Alternatives
Covered in Midterm #2 and lectures since that midterm. See midterm 2 review guide for additional questions.
Specific topics: terminating & non-terminating systems, estimating number of replications needed, interpreting and
calculating confidence intervals on output performance metrics; comparison of alternatives (paired-t); tools for output
analysis, comparison of alternatives, and statistical optimization in Simio (responses and controls, half widths, SMORES
plots, performing paired-t, subset selection, select best using KN or GSP, OptQuest, custom statistics)
Types of questions: Calculation, Interpretation, Concept (M/C, T/F, short answer)
Example problems:
9. [20pts total] You are given the following replication averages for two alternatives for average job flowtime (in hours)
through a job shop.
REPL ALT A ALT B DELTA
1 2.02 2.05 -0.03
2 1.41 2.04 -0.63
3 2.13 1.67 0.46
4 1.60 2.11 -0.51
5 1.59 2.52 -0.93
6 1.5 2.85 -1.35
7 1.37 2.76 -1.39
Mean: 1.66 2.29 -0.63
Stdev: 0.30 0.43 0.68
a. Calculate a 90% CI for alternative B alone. Also, determine approximately how many replications (total) will
be required so that the total CI interval width is no more than 5 minutes.

DOF=7-1=6
α=.1 (use ½ this or .05 in table)
student t value = 1.94
2.29 +/- 1.94*0.43/sqrt(7)  2.29 +/- 0.3153 or [1.9747, 2.6053]

Desired half width = 5/2=2.5 min = 2.5/60 or 0.0417 hours

Required replications n* = ceiling ( 7*(0.3153/0.0417)^2 ) = 401

b. Calculate a 90% CI for A-B using the paired-t test. State your conclusions. Is one alternative statistically
“better” than the other? If so, which? Explain/justify your answer.

DOF=7-1=6
α=.1 (use ½ this or .05 in table)
student t value = 1.94
-.63 +/- 1.94*0.68/sqrt(7)  -.63 +/- 0.4986 or [-1.1286, -0.1314]
Since interval doesn’t include 0, statistical difference (B is larger
since A-B negative)
Since prefer smaller flowtimes, A is preferable

c. Briefly, explain the process you would use to collect this data from your Simio models and run the
comparison of alternatives.

In the response results of the experiment,having two models, we could export the responses made, and in excel sheet we
could do all statistics necessary and compare those two alternatives based on the paird t test

7
10. [5pts] A paired-t test of alternative A minus alternative B for profit yields a 95% confidence interval of [-3.5, -.1].
What does this tell us about the alternative and why?

Since CI doesn't include zero, statistically significant difference

Since negative, B is larger
Since for profit larger is better, alternative B is superior to A

11. [25pts total] For the following alternative models A & B, interarrival times are EXPO(12) minutes and processing
times are EXPO(10) minutes in A and EXPO(5) in B. Process blocks 2-4 in B do the same processing as 1 in A, but
are broken down finer and each has their own server. 50% of entities go to the Process2-3 path, and 50% to Process4.
Alternative "A" represents the current (or base) system. Note: "add/modify" might mean changes in the model, model
properties, and/or a model experiment.

A:

B:

a. To perform output analysis for average system WIP, what would you need to add/modify in alternative A?
a. Response variable to find average number of processing in the server…
Serve1.Processing.Capacity.Average
b. To perform output analysis for average time spent in processes 2-3 combined, what would you need to
add/modify in alternative B?
a. Response statistic/variable in experiment which would show the time spent at 2 and time at 3…
maybe a tally statistics could be used for this purpose as well…in add-ons tally from before P2 to
end of P3
c. Suppose the 95% CI for A-B difference in flowtime is [-3.4, -0.4] with a point estimate of -1.9. What does
this result tell you?
a. That B has bigger flowtimes thus is worse alternative since we want shorter flowtimes
d. Suppose this is a terminating simulation. Describe how you would modify the simulation to close the shop
door at 4:30pm (start time: 8am) but finish processing any customers still in the store
a. In source off-shift rule would be to stop after it is done, in servers off-shift rule would be to finish
started activites
e. For alternative B, assume the output@Source1 node sends more entities to process 2 as the line gets longer at
process 4. But process 2-3 are more expensive processing. You wish to optimize the number of servers at
each process to maximize system profit. Revenue is $15/entity processed, and resources costs are

8
 $10/hour/server (idle or busy) plus a $5/use material cost (at each server). Describe how you would
accomplish this using OptQuest (including any modifications needed in the model).
a. Multiple scenarios would be used with different servers at each station and costs would be
incorporated in those servers…OptQuest would then be used to find maximum prodder and pick the
best (highest) value from all of those scenarios
b. In the Analysis and OptQuest for Simio sections:
i. Primary response = Profit
ii. Min reps=15
iii. Max reps=30
iv. Max scenarios=300
v. CI=95%
vi. Relative error=0.1
vii. Objective type=single objective.

Modeling Scenarios
Covered in both Midterms and since that midterm; see both review guides for additional example questions.
Specific topics:
 Queuing system modeling basics (using sources, servers, sink)
 Using properties and defining / interpreting property expressions
 Finding and interpreting output results in report, response results
 Defining and using Model State Variables, ModelEntity State Variables (and the difference between them)
 Calling population behaviors (IAT, number of entities per arrival, defining and using arrival rate tables or arrival
time tables, arrival based on event, stopping arrivals, modeling closed (finite) calling population, modeling
arrivals by proportion vs multiple arrival sources)
 Queue behaviors (queue priority, balking, reneging, input and output queue capacities)
 Service behaviors (PT, resource capacity, using/seizing/releasing additional resources within servers and across
multiple servers, using task sequences, basing processing times on entity state variables, defining and using a data
table for PT, resource schedules, defining resource failure/downtime & repair/restock distributions)
 Modeling batching, assembly, and disassembly processes
 Process flow (connector vs path vs timed path vs conveyor; branching on probability or condition (such as SNQ);
requiring transporter; routing by entity type or other expression; defining and using sequence tables for routing)
 Transporters (free-space vs network vs conveyor travel by entity; types of material handlers; worker & vehicle
resource configuration; transfer node and link configuration for transport; fixed vs on-demand vehicle routing;
loading/unloading)
 Storage, detached queues, and queue search/scan and operations
 Defining and using control entities
 Defining and interpreting simple add-on processes
 Defining costing properties
 Defining & using custom tally (time independent), state (time dependent), and output (end of replication) statistics
 Use of data sources for PT and IAT/AT data
 Use of views, status animators, watches, breakpoints
 Defining and configuring experiments, scenarios, replication length, number of replications, controls, responses
 Configuring and using tools for output analysis and comparison of alternatives in Simio (responses and controls,
half widths, SMORES plots, performing paired-t, subset selection, select best using KN or GSP, optquest, custom
statistics)
Types of questions: Model writing, configuring, interpreting; Concept (M/C, T/F, short answer)
Example problem:

12. [30pts] Develop an Arena model for the airport security gate process outlined on page #2 of the handout. Assume and
state "reasonable" distributions and other input data required for the model.
9
13. [5pts] A shaved ice stand has one operator ($6.50 per operating hour). The stand costs $7 per operating hour to
operate for capitalized operating costs (payments on loan to buy it, energy cost to run it, and periodic maintenance).
Cost of materials per customer order is $0.42. How would you incorporate this information into a model so that cost
data appeared in the end of simulation report?

For operator resource, set idle and busy time to $6.50/hr and per use cost to $0.42/hr
For stand resource, set idle and busy cost to $7.0/hr

10
14. [10pts] For the following system, for optimization purposes, you want to define a metric that will severely penalize a
large number of entities being in the system. The metric you decide on is the time weighted average of the expression
(0.1 *Number of entities in system )^2. Describe how you would declare the statistic element needed to track this
metric for use in OptQuest, and provide the Simio expression to use for the element.

15. [5pts] A simulation will be used in conjunction with daily operations to determine the expected throughput and job
completion times for a given set of orders (each order specifying a particular quantity of a particular part type) and
order schedule (order in which job orders will be processed). Describe how you would setup your model to pull this
data in dynamically.

11
 IE4530 EXAMPLE FINAL EXAM HANDOUT

PAGE #1 - Bank
A bank has separate officers for commercial loans, residential loans, and opening/closing/changing bank
accounts (savings, checking, and certificate of deposit accounts), as two tellers at a counter (see figure below).
Customers have substantial wait and service times, which typically comes out of their work day due to bank
hours. The bank has been losing customers consequently to competitors
Customers arrive at a rate of 30 per hour. The table below gives percentages of customers requiring each type of
bank service plus the service time distributions for each service type.
Customers requiring the teller get directly on the teller waiting line.
Customers needing loans or account actions must first see the receptionist, who keeps a written "queue" for
each officer and then sends the customers to the common waiting area. When it is a customer's turn, the loan
officer retrieves the customer from the waiting area and brings them to their office.
Some customers require multiple types of services (this is why %'s add up to more than 100%). If so, the
services are performed consecutively. In this case, the customer must either get on the teller line (if that’s what
they need) or see the receptionist and get on the line again for the next officer. Assume customers see officers
before tellers if they require multiple services.
Loans and account actions require completing forms. After sitting with an officer, the officer asks the customer
for various information and types the information into computer forms. This is a lengthy process. The forms are
then printed for signatures. There is a single network printer in the upper right corner of the building shared by
all the officers, bank manager, and tellers. After getting signatures, all forms must be brought to the bank
manager for final review, approval, and signature. Some customers don't get to the signing phase (for instance,
they are rejected for a loan or decide not to get one) and finish without seeing the manager.

Service % Customers Service Time

Requiring Dist. (min) Printer
Commercial loan 2% EXPO(70) WAITING
AREA FOR
(1 officer) OFFICERS

Residential loan 5% EXPO(32)

(1 officer)
Accounts 10% EXPO(15) WAITING
(1 officer) LINE FOR
TELLERS
LOAN OFFICER

Receptionist (1) (all above) EXPO(2)

COMMERCIAL

TELLERS
Bank Manager 80% of all EXPO(5) RECEPTIONIST

Review (1mgr) officer services

above)
Teller (2) 90% EXPO(3)
LOAN OFFICER
RESIDENTIAL

BANK ACCOUNTS BANK

OFFICER MANAGER

12
 IE4530 EXAMPLE FINAL EXAM HANDOUT

PAGE #2 – Airport Security Gate

At an airport terminal security entrance, passengers line up on a long winding line. As they get close to the front
of the line a guard quickly checks passenger's tickets and ids, and directs passengers to the shortest line for one
of three walk-through scan machines. While on the line, passengers must take off their shoes and put their
belongings into one or more bins on a conveyor for the scanner. Passengers may then be subject to an additional
manual scan in a separate area (either by random selection or something suspicious observed). After the scan
process is completed, passengers gather belongings off the conveyor and put their shoes back on.

13