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OPERATIONS MANAGEMENT ASSIGNMENT

1. Prepare the service blueprint of an order processing system referring to your recent visit to Pizza hut.
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a. Precedence Diagram of above activity

B
G

A I J

D E F
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b. Calculation of cycle time

The details of a product X are as follows:

Daily demand = 504 units

Production time = 7 hrs. =7x60x60 = 25200 seconds

Cycle time =Net production time divided by Number of units produced

Thus Cycle time = 25200/504 = 50 seconds/unit

The average throughput rate is 1 unit in every 50 seconds.

c. Calculate the minimum number of workstations

Minimum number of workstations = sum of total task times/cycle time

=45+11+9+50+26+11+12+10+9+10/50

= 193/50

=3.86 or 4

d. The positional weight computes the sum of the task and all tasks that follow

for task a rank positional weight is A+B+C+G+H+I+J =106.

for task D rank positional weight is D+E+F+I+J =106.

e. Calculate Efficiency of the line

Efficiency of the line = Sum of all the task time /actual number of workstations x cycle time

Efficiency of the line= 193/8x50=0.4825=48.25 %

f. Calculate idle time:

Idle Time = Theoretical Production Time – Actual Production Time

Idle Time =25200-193 =13056 second.
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OPERATIONS MANAGEMENT ASSIGNMENT

3.The company wants to implement the new project. The following are the activities required
tocomplete the project, the precedence relationship of the activities and the activity
estimates (in weeks) also given as below.

Draw the network diagram; determine the earliest and latest activity times, the expected time of
completion, standard deviation, and the probability that the project will be completed in 40 weeks
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Expected time Et= Optimistic+(4*most likely) +pessimistic

6
Et (A)= 5+(4*8)+17
6
=54/6 = 9

Et (C ) =11

Et (D ) = 7

Et ( B ) = 10

Et ( E ) = 1

Et ( F ) = 5

Et ( I ) = 6

Et ( M )= 3

Et ( G ) =1

Et ( H )= 2

Et ( K )= 8
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The critical path is A C D I M

Project completion time is (in week) = Et(A )+ Et (C) + Et (D ) +Et (I )+Et (M)

= 9 +11 + 7+6+3

= 36 weeks

V(A)= (17-5)/6^2= (12/6)^2=4

V(C) = (15-3)/6^2=(12/6)^2=4

V(D)= (10-6)/6^2 = (6/6)^2=1

V(I)= (9-3)/6^2= (6/6)^2 = 1

V(M)= (7-1)/6^2= (6/6)^2=1

Variance of project= V(A)+V(C)+V(D)+V(I)+V(M)= 4+4+1+1+1+1= 11

Standard deviation (S)= Variance

= 11

= 3.31

Z=(40-36 )/ S

= (40-36)/3.32

=1.20
Probability (Z=1.20) = 0.8849 or 88.49%
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OPERATIONS MANAGEMENT ASSIGNMENT

4. A manager is attempting to put together an aggregate plan for the coming nine months. She has
obtained a forecast of expected demand for the planning horizon. The department has 20 full time
employees each of whom produces 10 units of output per period at a cost of $6 per unit. Beginning
inventory of period 1 is zero. Inventory carrying cost is $5 per unit per period and backlog cost is $10
per unit per period.

Determine the total cost of the plan, including production, inventory, and backorder costs.

Full time employee 20

Production per employee 10
Cost per unit ( in $) 6
Inventory for period 1 0
Inventory carrying cost per unit per period (in $)
5
backorder cost unit per period ( in $)
10

Periods 1 2 3 4 5 6 7 8 9 Total
Forecast 190 230 260 280 210 170 160 260 180 1940
Standard output per period 200 200 200 200 200 200 200 200 200
Carrying units 10 0 0 0 0 0 0 0 0
backorder units 0 20 80 160 170 140 100 160 140
Standard cost@ 6 per unit in $ 1200 1200 1200 1200 1200 1200 1200 1200 1200 10800
Carrying Cost @ 5 per unit in $ 50 0 0 0 0 0 0 0 0 50
Backorder cost @ 10 per unit in $ 0 200 800 1600 1700 1400 1000 1600 1400 9700
Total Cost in $ 20550

The standard cost is calculated as the product of the standard output of 200 and a cost of $6 per unit
for a total of 9 periods.

Standard Cost = 9 × 200 × $6= 9 × $1,200= $10,800

The carrying cost is calculated as the product of carrying units of 10 and costs of $5 per unit will be::

Carrying Cost = 10 × $5= $50

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The backorder costs are calculated as the product of backlog units for all the 9 periods and the costs
of backorder units which is $10 per unit.

Backorder Cost = $10 × 20 + 80 + 160 + 170 + 140 + 100 + 160 + 140= $10 × (970) = $9,700

Now the total costs are the sum of standard costs, backorder costs, and carrying costs.

Total cost = Standard cost + Carrying cost + Backorder cost= $10,800 + $50 + $9,700= $20,550

5.A manager has the option of purchasing one, two, or three machines. Fixed costs and
potentialvolumes are as follows:

Variable cost is $10 per unit, and revenue is $40 per unit. a) Determine the break-even point
foreach range. b) If projected annual demand is between 580 and 660 units, how many
machines should the manager purchase?

a)

No of machines Total annual fixed costs in $ Corresponding range of output Break-even point
1 9600 0-300 320
2 15000 01-900 500
3 20000 666.67

Variable Cost in $ 10
Revenue in $ 40

b)

For 2 machines, the break-even point is 500 units which are in the output range of 301-600. This indicates even if
the demand is at the low end of the range, it would still be above the break-even point and yield profit. But for
the top end of the range, it would be less than the break-even point.Hence, the manager should choose two
machines.
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6. Print-for-All is a family-owned print shop that has grown from a three-press two-color operation
to a full-service facility capable of performing a range of jobs from simple copying to four-color
printing, scanning, binding, and more. The company is moving into a new facility and would like
some help arranging its 16 processes into an efficient, yet flexible, layout. A list of the most
popularjobs is shown with processing information. How would you arrange the processes to
ensure an efficient and flexible operation?
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Original Matrix:

Matrix Sorted:
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Final Matrix – (Reorganized and regrouped)

Cell 1: Processes 1, 2, 3, 7, 9, 12, 14

Jobs A, C, D, G, I, M

Cell 2: Processes 5, 10, 15, 16

Jobs H, K, N, O

Cell 3: Processes 4, 6, 8, 11, 13

Jobs B, E, F, J, L, P, Q
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A Links – D

I Links- A & B, A & E , B & E

So A will be the middle of the grid with D

X links B & F, C & E , E & F

So, F will be in one corner and B & E will be in other corner.

Layout will be

B A C

E D F
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OPERATIONS MANAGEMENT ASSIGNMENT

8.Operations times of servicing of Washing Machines are given below. The first operation
involvescleaning in Machine 1 and the second operation involves oiling in Machine 2. a.
Determine a sequence that will minimize the total completion time for this group of jobs,
following Johnson’s Rule. b. Construct a chart of the operations of the jobs at the two work
centers and determine idletime of each line, assuming no other activities are involved.
Processing times (Hrs.) is as follows:

a)

Johnson rule:

1. From the unscheduled jobs, select the job with the shortest processing time from both
machine.
2. If the shortest time is from 1st machine, do the job first in the schedule otherwise do the job
last in the schedule.
3. Remove the job assigned in step 2 from the list of unscheduled jobs.
4. Repeat steps 1,2 and 3 filling in the schedule from the front and the back until all jobs have
been scheduled.
5. In case of the assign job from either machine first as per the rule.

Lowest time 2 Hrs- Machine 1 (Job D). Assign left. D_ _ _ _ _

Lowest time 3 hrs- Machine 2 (Job B). Assign right D _____ B

Lowest times 5 Hrs – Machine 1 & 2 (Job A) Tie breaking situation. Assign left D A ____ B

Lowest time 6 Hrs- Machine 1 (Job E). Assign left DAE__B

Lowest time 8 Hrs. Machine 1 (Job C) Assign left DAEC_B

Now only one job left. Assign in empty space DAECFB

Suggested order DAECFB

If Johnson’s Rule is used to sequence the jobs, then the order in which the order would be

performedIs D- A- E- C- F -B
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b)