QUIZ 1
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1.Why are organizations changing from standardization to mass
customization?
(2 Points)
2.An industrial plant needs to make 100,000 parts per month to meet demand.
Each month contains 20 working days, each of which allows for 3 separate 8
hour shifts.
(a) If a worker can produce 10 parts/hour, how many workers are needed on
each shift?
(b) If each shift has 100 workers, what is the productivity of an individual
worker?
(c) If material costs are $10/part, capital costs are $100,000 and labor costs
are $10/hour, what is the multifactor productivity of the plant from part (a)?
(2 Points)
Productivity= 100,000 parts per month
Labor Working hours=20*24=480 hours
By Single-factor productivity formula
a) 100,000=480*10*x
X=100,000/4800=20,8=21 worker
b) Worker=100
100,000=480 hour*100 worker * y productivity
Y=100,000/48000=2,08
By multifactor productivity formula
c) Material cost = 10$/part
Capital cost= 100,000$
Labor cost = 10$/hour
Worker = 21
Multifactor productivity =
𝑢𝑛𝑖𝑡𝑠 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑
Labor + Material + Energy + Capital + Miscellaneous
Multifactor productivity=100,000/((21 worker*10$/hour*480 hour)+(10$/part*100,000
part)+100,000$ capital=100,000/(21*4800+1,000,000+100,000)=100,000/1,200,800=0.08
3.QuestionA grocery chain is considering the installation of a set of 4 selfcheckout lanes. The new self-checkout lane setup will replace 2 old cashier
lanes that were staffed by a cashier and bagger on each lane. One cashier
mans all 4 self-checkouts (answering questions, checking for un-scanned
items, taking coupons, etc). Checkout on the new lanes takes 2 minutes
(customers bag their own orders) while checkout with the old lanes took only
45 seconds. In addition, the electricity costs for both setups are $0.05 per
checkout while bagging (material) costs are $0.10 per checkout with the old
system and $0.15 for the new system. The new lanes also require $100/shift in
capital costs. Assume that the lanes are always in use for 8 hours per day (1
shift) and that a worker makes $10/hour.
(a) How many checkouts did the old system provide in a shift?
(b) How many checkouts does the new system provide?
(c) What is the multifactor productivity for each system?
(2 Points)
4 self-checkout lane will be replaced by 2 old cashier lanes.
1 cashier – 4 self-checkout
New – 120 sec
Material cost – 0.15 $/per chechout
Electricity = 0.05$/per checkout
Capital cost – 100$/shift
8 hour (1 shift)
Worker makes 10$/hour=80$/shift
Old – 45 sec
Material cost – 0.10 $/per
Electricity = 0.05$/per
Worker makes 10$/hour= 80 $/shift
a) Productivity = 1 checkout - 45 sec
Shift=8 hour*60minutes*60 sec=28,800 sec
Checkouts=2(28,800/45)=640*2=1280 (checkouts)
b) Productivity = 1 checkout – 120 sec
Shift= 28,800 sec
Checkouts=4(28,800/120)=240*4=960 (checkouts)
c) Multifactor productivity (old) = 1280/(1280*0.10+0.05*1280+80$/shift*4)=
1280/(128+64+320)=2.5 checkout/$
Multifactor productivity (new) = 960/(960*0.15+0.05*960+100$*2)=
960/(144+48+100$+80$*1)= 960/372 checkout/$=2,6 checkout/$
4.Gibson Products produces cast bronze valves for use in offshore oil
platforms. Currently, Gibson produces 1600 valves per day. The 20 workers at
Gibson work from 7 a.m. until 4 p.m., with 30 minutes off for lunch and a 15minute break during the morning work session and another at the afternoon
work session. Gibson is in a competitive industry and needs to increase
productivity to stay competitive. They feel that a 20 percent increase is
needed.
Gibson's management believes that the 20 percent increase will not be
possible without a change in working conditions, so they change work hours.
The new schedule calls on workers to work from 7:30 a.m. until 4:30 p.m.,
during which workers can take one hour off at any time of their choosing.
Obviously, the number of paid hours is the same as before, but production
increases, perhaps because workers are given a bit more control over their
workday. After this change, valve production increased to 1800 units per day.
(a) Calculate labor productivity for the initial situation.
(b) Calculate labor productivity for the hypothetical 20 percent increase.
(c) What is the productivity after the change in work rules?
(d) Write a short paragraph analyzing these results.
Productivity(old) =1600 valves per day
Working hour = 9 hour – 1 hour(breaks)= 8 hour
Productivity(new)=1800 valves per day
Working hour=9-1=8 hour
hypothetical 20 percent increase = 1600+1600*0.2=1920 valves per day
a) Labour productivity(old)= 1600/8=200 valves/hour
1 worker = 200/20=10 valves/hour per worker
Labour productivity(new)= 1800/8=225 valves/hour
1 worker= 225/20=11.25=12 valves/ hour per worker
b) Labour productivity(hypothetical)= 1920/8=240 valves/hour
240/20=12 valves hour
c) Labour productivity(new)= 1800/8=225 valves/hour
1 worker= 225/20=11.25 valves/ hour per worker
d) To give employee ability to manage his/her break time, has a positive
impact in productivity increase. It was not 20% but ((18001600)/1600)*100) 12.5% without increase capital or labor.
Answer:
(a) Workers are active for eight hours per day; labor productivity is 10
valves/hour
(b) If productivity rises by 20 percent, to 12 valves/hour; output would be 12 ×
8 × 20 = 1920
(c) New productivity is 1800 / (20 × 8) = 11.25 valves/hour
(d) Gibson did not gain the desired 20 percent increase in productivity, but
they did gain 12.5%, without extra equipment or energy, and without
increasing the labor cost
(2 Points)
5.The service sector has lower productivity improvements than the
manufacturing sector because:
(2 Points)
the service sector uses less skilled labor than manufacturing.
the quality of output is lower in services than manufacturing.
services usually are labor-intensive
service sector productivity is hard to measure
the service sector is often easy to mechanize and automate
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Quiz #2 Ch2 Operations Strategy
in a Global Environment
Answer the questions below
Points:
7/10
1.Starbucks is one of the best known coffeehouse chains in the world. Each
store sells a variety of innovative products to complement the array of coffee
choices available. However, 75% of current stores are located in the United
States and the expensive nature of the coffee leaves Starbucks vulnerable to
changes in consumer spending behavior (such as recessions). Recently
Starbucks has begun initiatives to sell its specialty coffee beans for home use,
presenting a chance for a large increase in revenue and
diversification. However, Starbucks faces fierce competition seeking a piece of
its lucrative market share and the threat of consumer behavior changes, given
its reputation rides on a singular product. Perform a SWOT analysis for
Starbucks.
(0/2 Points)
2.Identify and explain the four basic global operations strategies. Give an
example of each strategy.
(1/2 Points)
3.Which of the following is true about business strategies?
(1/1 Point)
An organization should stick with its strategy for the life of the business.
All firms within an industry will adopt the same strategy.
Well defined missions make strategy development much easier.
Strategies are formulated independently of SWOT analysis.
Organizational strategies depend on operations strategies.
4.How can global operations improve the supply chain?
(2/2 Points)
5.Identify and explain product life cycle
(2/2 Points)
6.Identify and explain organization’s mission
(1/1 Point)
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Quiz #3 Chapter 3 Project
Management
Show all calculations for your solution
Points:
9/10
1
What is the basic difference between PERT and CPM?
(2/2 Points)
The basic difference between PERT and CPM is that PERT requires three
time estimates of activity completion time, whereas CPM uses only a single
estimate.
2
The expected activity time in PERT analysis is calculated as :
(1/1 Point)
the simple average of the optimistic, pessimistic, and most likely times
the weighted average of a, m, and b, with m weighted 4 times as heavily as a and b
the sum of the optimistic, pessimistic, and most likely times
the sum of the optimistic, pessimistic, and most likely times, divided by six
the sum of the activity variances, divided by six
3
What is Agile methodology in Project management ? How do you define ?
What fields is Agile used in ?
(2/2 Points)
4
Three critical path activities are candidates for crashing on a CPM network.
Activity details are in the table below.
1.What is the crash cost per unit time for activity A?
2.What is the crash cost per unit time for activity B?
(2/2 Points)
5
The network below represents a project being analyzed by Critical Path
Methods. Activity durations are A=5, B=2, C=12, D=3, E=5, F=1, G=7, H=2,
I=10, and J=6.
1. What is the critical path of this network?
2. What is slack time at activity B?
3. What is the Late Finish of activity H?
(2/3 Points)
critical path A-B-G-I-J
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Quiz #4
Chapter 5 Design of Goods and
Services
(Note- Show Calculations)
Points:
7/10
1.Identify the general benefits derived from CAD
(3/3 Points)
2.Identify the steps involved in building the House of Quality.
(3/3 Points)
3.A swim club is designing a new pool to replace its old pool. The new pool
would need to last for 10 years since the club is planning on relocating after
10 years. A concrete shell would cost $100,000 and last for all 10
years. Another option is to install a vinyl liner that would cost only $75,000 to
install. However, the vinyl is not guaranteed to last for all 10 years, and has a
33% chance of breaking down. Repair of the vinyl would cost $40,000 and
would extend the life of the vinyl liner to the 10 year mark.
If both options are acceptable to the swim club, which one minimizes their
cost? And why ?
(1/4 Points)
EMV(in thousands) of vinyl is .33(115)+.67(75) = $88.2
EMV (in thousands) of concrete is $100
The club should install the vinyl option to minimize cost
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