Professor Blake
OPM 101
Name__________________________
Spring 2009
EXAMINATION 2, Version A
Use a Scantron Form No. 886-E to record your choice of the best answer to each of the
following questions. You have the full period to answer the questions.
The following questions are worth three (3) points each.
1. JIT considers waste anything that
a) Fits in a waste basket
b) Reduces production capacity
c) Has been discarded
d) Cannot be recycled
e) Does not add value
2. Which of the following is characteristic of the JIT philosophy?
a) Inventories are an asset
b) Lot sizes are optimized by formula
c) Tolerate some scrap
d) Elimination of waste
e) Rigidity
3. Three basic elements work together to complete a JIT system: just-in-time manufacturing, total quality
management, and
a) Quality circles
b) Pull production
c) Minimizing inventory
d) Respect for people
e) Full utilization of capacity
4. Which is typically the most difficult data pattern to predict?
a) Horizontal
b) Trend
c) Level
d) Seasonality
e) Cycle
5. What is the mean absolute deviation of the following forecasts?
Month
Actual Sales
Forecast Abs. Deviation
Jan.
614
600
14
Feb.
480
480
0
Mar.
500
550
50
Apr.
500
600
100
a) 3174
164
b) 164
c)
41
MAD: 164÷4=41
d) 136
e) -34
6. The maximum output rate that can be achieved by a facility under ideal conditions is _________________.
a) utilization
b) design capacity
c) effective capacity
d) ultimate capacity
e) temporary capacity
1
Professor Blake
OPM 101
Name__________________________
Spring 2009
7. Long-term capacity requirements are identified on the basis of ________________________________.
a) the current trend of the economy
b) the expected lifetime of the facility
c) demographic factors
d) forecasts of future demand
e) future political events
8. Service organizations such as restaurants, movie theaters, and banks focus on locating near ____________.
a) suppliers
b) roads
c) intersections
d) their customers
e) potential workers
9. The load-distance model frequently utilizes
points using only north-south and east-west movements.
a) curvilinear
b) Euclidean
c) rectilinear
d) direct
e) vertical
distance, which is the shortest distance between two
10. A job shop is most likely to use which layout type?
a) inverted
b) hybrid
c) process
d) fixed position
e) product
11. Building construction is an example of which layout type?
a) inverted
b) hybrid
c) process
d) fixed position
e) product
12. What is the term for the number of units we wish to produce over a specific period of time?
a) job flow
b) output rate
c) cycle time
d) output flow
e) flow time
13. What is the longest task in a process called?
a) obstruction
b) bottleneck
c) blockade
d) hindrance
e) constrainer
14. What occurs when a customer decides not to enter the waiting line?
a) balking
b) walking
c) reneging
d) vacillating
e) jockeying
2
Professor Blake
OPM 101
Name__________________________
Spring 2009
15. Customers generally consider which of the following priority rules to be the fairest?
a) quickest service requirements first
b) longest service requirements first
c) first-come, first-served
d) best customers first
e) highest profit customer first
16. What is the approach to job design which involves an increase in responsibility for work planning and/or
inspection?
a) job enlargement
b) job rotation
c) job enrichment
d) job involvement
e) job enhancement
17. The
time is the time it should take a qualified operator, working at a sustainable pace and using the
appropriate tools and process, to do the job.
a) performance
b) observed
c) normal
d) standard
e) ideal
18. When performing a time study, the analyst converts the observed time into the time an "average" worker would
require working at an acceptable pace by using which of the following?
a) allowance factor
b) mean time modulation
c) methods analysis
d) performance rating factor
e) analysis of efficiency
19. By focusing on value-added processes, JIT is able to achieve high-volume production of high-quality, low-cost
products.
a) True
b) False
20. Forecasts are more accurate for individual items than for groups or families of items.
a) True
b) False
21. Capacity planning is complicated by the fact that capacity is usually purchased in chunks, rather than smooth
increments.
a) True
b) False
22. In product layouts, the material moves continuously and uniformly through a series of workstations until the
product is completed.
a) True
b) False
23. A single-line service system eliminates jockeying behavior.
a) True
b) False
24. In a time study, personal time, fatigue, and unavoidable delays (PFD) during the typical work day are accounted
for in the allowance factor.
a) True
b) False
3
Professor Blake
OPM 101
Name__________________________
Spring 2009
The following problems are worth ten (10) points each.
1. Hoops, Inc. produces videos on the art of shooting in basketball. The firm has experienced the following
demand for the most recent four months.
Month
Mar.
Apr.
May
June
July
Demand
10,000
2,000
20,000
30,000
Forecast
8,000
8,800
6,080
11,648
18,988.8, ~18,989
Ft+1 = At + (1-α)Ft
FAPR=.4*10,000+.6*8,000=8,800
FMAY=.4*2,000+.6*8,800=6,080
FJUN=.4*20,000+.6*6,080=11,648
FJUL=.4*30,000+.6*11,648=18,988.8
Prepare an exponential smoothing forecast for July, using an  value of .40. Initiate the process by assuming
that the forecast for March is 8,000 units.
18,988.8 or 18,989
2. Aamedco plans to open a new medical center and is looking for a suitable location. They have narrowed their
choice down to three locations, on Oak, Elm, and Ash Streets. They have defined four factors and have assigned
weights to these factors as follows: proximity to hospitals (40), customer parking (30), appearance (20), and ease
of expansion (10). They then rated the three locations for the four factors, using a scale of one to five. Their
ratings are as follows:
Oak
Location
Score
Elm
Score
Ash Score
Weight
40
2
80
5
200
3
120
30
5
150
1
30
3
90
20
4
80
2
40
5
100
10
3
30
4
40
1
10
100
340
310
320
(a) Calculate the scores for each location. OAK: 340, ELM: 310, ASH: 320
(b) According to the model which location should they choose? Choose OAK as it has the highest score
Factor
Proximity to hospitals
Customer parking
Appearance
Ease of expansion
3. The reference desk of a university library receives requests for assistance. Assume that a Poisson probability
distribution with a mean rate of 10 requests per hour can be used to describe the arrival pattern and that service
times follow the exponential probability distribution, with a mean service rate of 12 requests per hour.
λ = 10 requests/hour
μ = 12 requests per hour
ρ = λ / μ = 10/12 = .833
a) What is the average number of requests that will be waiting for service?
LQ = ρ*L
L = λ/ μ- λ = 10/12-10 =5 requests
LQ = .833 * 5 = 4.17 requests
b) What is the average waiting time in minutes before service begins?
WQ = ρ*W
W = 1/ μ- λ = 1/12-20 = .5 hours or 30 minutes
WQ = .833 * .5 = .42 hours or 25 minutes
c) What is the average time at the reference desk in minutes (waiting time plus service time)?
W = 1/ μ- λ = 1/12-10 = .5 hours or 30 minutes
d) Suppose that a “super” librarian can be hired who can handle 16 requests per hour. Now what is the
average waiting time in minutes before service begins?
λ = 10 requests/hour
μ = 16 requests per hour
ρ = λ / μ = 10/16 = .625
W = 1/ μ- λ = 1/16-10 = .1666 hours or 10 minutes
WQ = ρ*W WQ = .625 * .1666 = .10417 hours or 6.25 minutes
4
Professor Blake
OPM 101
Name__________________________
Spring 2009
Formulas--Examination 2
Chapter 7: JIT
Kanbans: N 
DT  S
N—no. of kanbans, D—demand rate, T—lead time, S—safety stock, C—container size
C
Chapter 8: Forecasting
Naïve: Ft+1 = At
 At
[n – number of periods to be used]
n
Weighted moving average: Ft 1   C t A t [Ct – weight for period t]
Exponential smoothing: Ft 1  αA t  1 αFt or Ft 1  Ft  αA t  Ft 
Moving average: Ft 1 
Linear regression:
Y = a + bx
Forecast error: At – Ft
MSE 
b
 XY  n X Y
 X 2  nX
a  Y  bX
2
(actual  forecast)2
n
MAD 
 actual  forecast
n
actual  forecast
Tracking_signal 
MAD
Note: Ft is the forecast and At is the actual in period t
Chapter 9: Capacity Planning and Facility Location
Utilizationef f ective 
actual_out put
100% 
effective_ capacity
Utilizationdesign 
actual_out put
100%  ld 
design_cap acity
Chapter 10: Facility Layout
available_ time
; C  cycle_time
output
available_ time
Output 
output
available_ time
Maximum_ou tput 
minimum_cy cle_time_( bottleneck )
C
TM 
 t ; TM  theoretica l_min.# workstatio ns; t  total_task _time
C
Efficiency (%) 
 t (100); N  number_wor kstations
NC
Balance_de lay(%)  100% - efficiency
Supplement D: Waiting Lines
λ
; average_system_utilization
μ
λ
L
; average_# customers_in_system
μλ
L Q  ρL;average_# customers_waiting_in_line
ρ
W
WQ
1
; average_time_in_system
μλ
 ρW; average_time_in_line
Pn  (1  ρ)ρn ; probability_n_customers_in_system
5
l d
ij
ij
X c.g. 
l x
l
i
i
i
Yc.g. 
l y
l
i
i
i