Exam Production Execution and Logistics SS2021 Final

Exam
Production Execution and Logistics

July 22nd 2021
Dr.-Ing. H.-H. Westermann; Dr.-Ing. O. Oechsle;

Dr.-Ing. T. Drews; M.Sc. S. Butzer
Matriculation
number:
Please note:
 Please fill in all pages with your matriculation number in the header!
 Allowed auxiliary means: writing and drawing utensils (pen, felt pen,
ball-pen), scientific calculators (non-programmable and non-graphic); for editing
only use the handed out pages of this exam – if necessary, use the back
of the page.
 The editing time is 90 minutes.
Rating:
Exam question
1 2 3 4 5 6 -- -- -- --
Number of points achievable:

Total:
30 10 10 10 14 16 -- -- -- -- 90
Mark
-- -- -- --
Hochschule Hof – University of Applied Sciences Page 1 of 24

Exam: Production Execution and Logistics
July 22nd 2021 Matr.-Nr: Correction notes
Exam question 1 – Value stream mapping / analysis

Value stream mapping (VSM) is a tool for analyzing process flow and eliminating
waste.
1a) Please name the four steps of the value stream method in the
correct order. 5 Points
1b) Please name the eight steps of the design guideline of the value
stream method in the correct order. 9 Points
1c) Please answer the following multiple-choice questions, accord-

ing to your expertise gained within the fields of lean production
and value stream mapping. 8 Points
1d) Please answer the following questions considering the basics of

lean production.
1d-1.) The operation time (OT) of a manufacturing process step
is 13.75 minutes. What is the maximum possible value-adding
time (VAT) in this case (in minutes)?
1d-2.) Which time is used to compare operation times and pro-
cess times, in comparison to the customer takt time?
1d-3.) Is efficiency increase a benefit of the Toyota Production
System (TPS)? 3 Points
1e) Please draw a value stream map based on the information

provided below.
 Components are ordered via email at your supplier.
 Your customer orders your products via letter.
 Goods are delivered by trucks from your supplier.
 Goods are delivered to our customers.
 You have 3 workstations, named: station a, b, and c,
which produce in push production with buffers in be-
tween.
 For station one, three employees and one machine are
required.
 Station two is operated by one employee and two ma-
chines.
 Station three is operated by four employees on assembly
tables, with no machines.
 The PPC (Production planning and control) is done man-
ually. Production orders are handed over to each station
5 Points
as a printed copy.
Hochschule Hof – University of Applied Sciences Page 2 of 24 Correction notes

Exam question 1 – Please write your answers here
1a.)
1.
2.
3.
4.

1b.)
1.
2.
3.
4.
5.
6.
7.
8.

1c.)
Question Yes No
What is a customer paying for – Processing?
What is a customer paying for – Storage?
What is a customer paying for – Transport?
Is overproduction the “worst” type of waste?
Is transport a type of waste (muda)?
Is motion time a type of waste (muda)?
Does a value stream comprise all activities – value-adding and

non-value-adding?
Is the value stream approach used to show potential for im-
provements?
1d.)
1d-1.)
1d-2.)
1d-3.)

1e.)

Exam question 2 – Decision criteria

Franconian FutureBike Company produces Franconian FutureBike Company
E-Bikes and Scooters. It is planning to build a new
manufacturing and distribution facility in either Bra-
zil, Croatia, India, Malaysia, or Vietnam.
The cost of the facility will differ between countries
and will even vary within countries depending on
the economic and political climate, including mon-
etary exchange rates. The company has estimated
the facility cost (in € millions) in each country under
three different future economic/ political climates as follows:
As responsible operations manager, please determine the best decision using

the following decision criteria.
2a) Minimin 2,5 Points
2b) Minimax 2,5 Points
2c) Hurwicz (Alpha α = 0.40) 2,5 Points
2d) Equal likelihood 2,5 Points
(Note that since the payoff is cost, the maximax criteria becomes minimin and
maximin becomes minimax.)



Exam question 3 – Block diagramming problem

The facility of Franconian FutureBike Company is a job shop that employs 350
workers and is currently arranged into five departments:
(1) incoming/ outgoing goods department,

(2) machining,
(3) welding,
(4) painting, and
(5) assembly.
The current layout of the facility is shown schematically on the 2 X 3 grid.

In addition, the load summary chart gives the average number of unit loads
transported between the departments over a period of time.
Notice that there is quite a bit of flexibility in the facility,

as indicated by the six possible locations (i.e., intersections)
Load Summary Chart

from / to Department
Department 1 2 3 1 2
1 100 50
2 200 50
3 60 40 50
4 100 60
5 50
The management would like to know if a similar layout should be used, or if a

better layout can be designed for the new manufacturing and distribution facil-
ity.
As responsible operations manager, please help the company to make the right
decision, and:
3a) Evaluate the current layout by calculating the back-and-forth

movements (↔) between the departments.
2 Points
Please describe the results in table and add the number of
movements to the grid.
3b) Calculate the number of nonadjacent loads. 2 Points
3c) Improve the layout in such a way that nonadjacent loads are
completely eliminated.
Finally draw the new grid according to your findings. 6 Points



Exam question 4 – Line balancing

The Franconian FutureBike Company assumes an increase in customer orders and is re-
organizing its assembly procedures.
The demand for E-bikes is 420 units per day (8:00 a.m. to 4:00 p.m.).
To complete the assembly process fast, eleven work elements must be
completed according to the following table.
Work Element Work Description Precedence Time [Sec.]
A Connect the front tire to the bicycle frame --- 50
B Insert the handle bar A 16
C Tighten handle bar with two screws and B 14
nuts
D Connect the rear tire to the bicycle frame --- 55
E Position chain mechanism to the frame D 20
F Attach right hand brake to handle bar C 17
G Attach left hand brake to handle bar C 17
H Attach right side pedal E 17
I Attach left side pedal E 17
J Position chain onto chain mechanism F, G, H, I 13
K Attach seat post J 14
As responsible operations manager please help the company to reorganize
their order processing and packing procedures, by:
4a) Draw and label the precedence diagram 3 Points

4b) Calculate the desired cycle time 𝐶𝑑 required for the line
Production time available 1 Point
𝐶𝑑 =
Desired units of output
4c) Calculate the theoretical minimum number of workstations 𝑁
(If necessary, please round up)
𝑗
∑𝑖=1 𝑡𝑖
𝑁= ; 1 Point
𝐶𝑑
𝑡𝑖 = completion time for element 𝑖 ;
𝑗 = number of work elements
4d) Group elements into workstations 4 Points
(Recognize there are cycle time and precedence constraints)
4e) Calculate the efficiency 𝐸 of the line

𝑗
∑𝑖=1 𝑡𝑖
𝐸= ;
𝑛∗𝐶𝑑 1 Point
𝑛 = actual number of work stations;
𝐶𝑎 = actual cycle time



Exam question 5 – Supply Chain and Logistics Management
5a) The supply network design is based on the seven principles

of supply chain management and is also related to the
task model of supply chain management.
 Please refer/specify and explain two of the seven principles
in detail. 2 Points
 Maximum two sentences for each of the two principles.
5b) Assign the following seven items to the corresponding place of

the task model in supply chain management.
1. Tactical
2. Supply Chain Planning
3. Supply Chain Design
4. Executive
5. Strategic
6. Supply Chain Execution
7. Operative 3,5 Points
For your answer, please use the pyramid figure below.
5c) The mission of logistics management is to plan and coordinate all

those activities necessary to achieve desired levels of delivered
service and quality at the lowest possible cost. Logistics must
therefore be seen as the link between customers/markets and
the supply base.
Subtask 5c-1): 2 Points
The goals of efficient and effective logistics are often referred to
and explained by the seven “R” of logistics.
 Please specify four of the seven “R” of logistics!
Subtask 5c-2):
3,5 Points
Please enter at the right position all seven process steps (mate-
rial flow, information flow, supplier, procurement, customer, oper-
ations, and distribution) of the logistics management process
model in the figure below.
5d) There are three different types of basic supply chain network ful-
fillment options. Please assign the three options in the figure be-
low:
 “cross dock”,
 “direct delivery”, and
 “distribution center”. 3 Points

5a.)

5b.)
5c-1)

5c-2)
5d)

Exam question 6 – Production Management

There are different approaches to categorize products, suppliers, and customers
to evaluate proper manufacturing or sourcing strategy.
6a) In this case you have to explain the major fields of the Pareto
principle. Please sketch the Pareto principle, assign the axis of
the diagram and give a typical range of the items were located in
the three categories (value and amount).
For your answer, please use the figure below. 3 Points
6b) There are many types of different sourcing strategies in case to

establish an appropriate and secure supply chain.
Subtask 6c-1):
Please describe the advantages and disadvantages of the 2 Points
“single sourcing strategy”. Please highlight one advantage
and one disadvantage of this strategy.
Subtask 6c-2):
Please describe the advantages and disadvantages of the 2 Points
“JIT sourcing strategy”. Please highlight one advantage and
one disadvantage of this strategy.
Your answer could be in bullet points.
6c) There are many types of different manufacturing strategies in

case to set the best suitable decoupling point (DP). Please enter
the five missing terms: Forecast driven, Customer-order driven,
Source-to-order, Make-to-order, and Make-to-stock.
For your answer, please use the figure below. 2,5 Points
6d) In your position as an operations manager, you must decide

which manufacturing strategy meets the defined requirements
for a dedicated product segment. For three new product seg-
ments, a specific decoupling point and manufacturing strategy
are required. For your decision, you have to use the P/D and
RDV parameters.
P/D - RDV -
Production to Delivery Relative Demand
Product segment Ratio Volatility
A 1,5 low
B 3,5 high
C 0,5 high

Subtask 6d-1): 5 Points

Please determine a suitable and sufficient manufacturing
strategy for each new product segment.
For your decision:

 use the grid below,
 mark/tick the sector for the selected manufacturing strat-
egy with the name of the manufacturing strategy and
 assign the axis of the diagram.
Subtask 6d-2): 1,5 Points

Please describe your decision in your own words for each of the
selected manufacturing strategies in one sentence.

6a)
6b)

6c-1)
6c-2)

6d-1)
6d-2)

Exam Production Execution and Logistics SS2021 Final

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Exam Production Execution and Logistics SS2021 Final

Uploaded by

Copyright:

Available Formats

Exam

Production Execution and Logistics

Dr.-Ing. H.-H. Westermann; Dr.-Ing. O. Oechsle;

Number of points achievable:

Hochschule Hof – University of Applied Sciences Page 1 of 24

Exam question 1 – Value stream mapping / analysis

1c) Please answer the following multiple-choice questions, accord-

1d) Please answer the following questions considering the basics of

1e) Please draw a value stream map based on the information

Hochschule Hof – University of Applied Sciences Page 2 of 24 Correction notes

Exam question 1 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 3 of 24 Correction notes

Exam question 1 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 4 of 24 Correction notes

Exam question 1 – Please write your answers here

What is a customer paying for – Storage?

What is a customer paying for – Transport?

Is overproduction the “worst” type of waste?

Is transport a type of waste (muda)?

Is motion time a type of waste (muda)?

Does a value stream comprise all activities – value-adding and

Hochschule Hof – University of Applied Sciences Page 5 of 24 Correction notes

Exam question 1 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 6 of 24 Correction notes

Exam question 2 – Decision criteria

As responsible operations manager, please determine the best decision using

2a) Minimin 2,5 Points

2b) Minimax 2,5 Points

2c) Hurwicz (Alpha α = 0.40) 2,5 Points

2d) Equal likelihood 2,5 Points

Hochschule Hof – University of Applied Sciences Page 7 of 24 Correction notes

Exam question 2 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 8 of 24 Correction notes

Exam question 2 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 9 of 24 Correction notes

Exam question 3 – Block diagramming problem

(1) incoming/ outgoing goods department,

The current layout of the facility is shown schematically on the 2 X 3 grid.

Notice that there is quite a bit of flexibility in the facility,

Load Summary Chart

The management would like to know if a similar layout should be used, or if a

3a) Evaluate the current layout by calculating the back-and-forth

3b) Calculate the number of nonadjacent loads. 2 Points

Hochschule Hof – University of Applied Sciences Page 10 of 24 Correction notes

Exam question 3 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 11 of 24 Correction notes

Exam question 3 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 12 of 24 Correction notes

Exam question 4 – Line balancing

4a) Draw and label the precedence diagram 3 Points

4e) Calculate the efficiency 𝐸 of the line

Hochschule Hof – University of Applied Sciences Page 13 of 24 Correction notes

Exam question 4 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 14 of 24 Correction notes

Exam question 4 – Please write your answers here

Hochschule Hof – University of Applied Sciences Page 15 of 24 Correction notes

Exam question 5 – Supply Chain and Logistics Management

5a) The supply network design is based on the seven principles

5b) Assign the following seven items to the corresponding place of

5c) The mission of logistics management is to plan and coordinate all

Hochschule Hof – University of Applied Sciences Page 16 of 24 Correction notes

Exam question 5 – Please write your answers here