Lingnan University

Department of Computing and Decision Sciences

The First Term, 2022–2023
BUS 2211: Operations Management
Assignment 1
(Total marks = 50 marks)

Notes for Submissions:

1. Your answers should be properly presented.

2. You should provide clear units for your numerical answers, otherwise your answers will be considered
as wrong.

3. You should provide your name, student number and section number on the …rst page of your answer
sheets.

4. You should submit your answers of the assignment by the due date. Late assignment will not be
accepted and zero mark will be given.

5. Warning: Cases of plagiarism will be forwarded to the Student Disciplinary Committee for consid-
eration.

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BUS 2211: Operations Management Assignment 1

Question 1 (Productivity) [20 marks]

A computer manufacturer produces various types of computers. In July, the company produced 600
laptop computers at a standard price of $2; 500. The company has 12 direct labor employees whose
compensation (including wages and fringe bene…ts) amounts to $60 per hour. During July, laptop
computers were produced on 9 working days (of 8 hours each), and other products were produced on
other days. Note: For all the calculation of productivity ratios, you are required to use the dollar values.

1. Determine the labor productivity of the laptop computers. [3 marks]

2. The company also produces desktop computers at a standard price of $2; 000. During July, 750
desktop computers were produced on 11 working days (of 8 hours each). On one day, one employee
called in sick.

(a) Determine the labor productivity of the desktop computers. [3 marks]

(b) Was productivity higher for the laptop computers or for the desktop computers in July? [1
mark]

3. Here is additional information about the company. There were 20 working days in July. The direct
material cost of laptop computers is $1; 600 per unit; the direct material cost of desktop computers
is $1; 200 per unit. The annual overhead expense incurred in operating the factory is $500 per
working day.

(a) Determine the multi-factor productivity of the company in July. [5 marks]

(b) What is the interpretation of the multi-factor productivity? [2 marks]

4. In August, the company produced 520 laptop computers in 8 working days. What was productivity
growth— the percentage change in labor productivity of laptop computers— from July to August?
[6 marks]

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BUS 2211: Operations Management Assignment 1

Question 2 (Layout) [30 marks]

A manufacturer is introducing a new model of refrigerator and needs to balance the process for its new
assembly line, given the following task times and precedence relationships. Assume that the cycle time
is 12 seconds.

Task Time (seconds) Immediate Predecessor

A 6 —
B 5 A
C 5 —
D 3 B
E 4 C
F 7 C
G 4 E
H 8 D, F, G

You are required to

1. Draw the precedence graph. [3 marks]

2. Assign tasks to stations by using the longest processing time decision rule. In case of a tie, use the
tiebreaker of assigning the task with the largest number of following tasks. [15 marks]

3. Determine the e¢ ciency of the process. [3 marks]

4. Draw the product layout. [3 marks]

5. Compute the rate of output that is expected for this line assuming a 480-minute working day. [6
marks]