Operations Management: What is operations management? Why is it important? Is a good knowledge of operations management more important in service or manufacturing industries? Custom Essay

Operations Management

The exam consists of five essay and eight problem questions. Answer all the questions.

Essay Questions:
There is no set length for answers; students may be as verbose or brief as they feel necessary to cover the

question. Use this same exam document for your answers, placing them below each question.

Problem Questions:
Make sure to show all your work to get full credit. The instructor needs to know the formulas and calculations

you used to get to your final answer. You can do part of the exam in Excel and Paste your Excel work into this

document.

File Convention:
File name for the exam attachment to be
Studentlastname-finalexam (Be sure there are no spaces)
Be sure to put your name on the exam paper.

Essay Questions
1. What is operations management? Why is it important? Is a good knowledge of operations management more

important in service or manufacturing industries? Explain your answer.

2. Discuss the use of PERT/CPM techniques for managing projects. Describe what PERT/CPM does. Discuss advantages

and disadvantages of using it. What other techniques might you choose to manage your project?

3. What are economies of scale in a manufacturing plant? Do they continue forever? What are diseconomies of

scale? How might you decide the optimal size of a plant?

4. What, in your opinion are the 3 most important issues in supply chain management. Discuss why you think these

are the key issues.

5. Discuss why (or if) inventories are necessary. What are the benefits of inventories? What are the

disadvantages of holding inventories?

Problem Questions
1. Thermostats are subjected to rigorous testing before they are shipped to air conditioning technicians around

the world. Results from the last five samples are shown in the table. Draw and R Chart and an x-bar chart. Based

on the charts, is the process under control? (20 Points)

Observations
Sample 1 2 3 4 5
1 73.5 70.8 72.2 73.6 71.0
2 71.3 71.0 73.1 72.7 72.2
3 70.0 72.6 71.9 72.4 73.3
4 71.1 70.6 70.3 74.2 73.6
5 70.8 70.7 70.7 73.5 71.1

Answer 1:

2. A professor records the number of students who complain each week throughout the semester. If the class size

is forty students, what are 3-sigma control limits for this class? Construct a control p-chart and interpret the

data. Is the process in control? (20 points)
Week number Complaints
1 5
2 2
3 7
4 1
5 3
6 2
7 8
8 1
9 3
10 5
11 4
12 6
13 3
14 1
15 4
Answer 2:

3. A department store chain is designing a layout for a new store. The store manager wants to provide as much

convenience as possible for her customers. Based on historical data, the number of trips between departments per

hour is given in the following closeness matrix. A block plan showing a preliminary layout is also shown.

Closeness Factors (Trips per hour)
1/O 2/S 3/H 4/T 5/A 6/E

1. Office Supplies (O) — 40 100 50 20 10
2. Sporting Goods (S) — 100 80 60 80
3. Hardware (H) — 70 100 50
4. Toys (T) — 70 90
5. Automotive (A) — 60
6. Electronics (E) —

1. OFFICE SUPPLIES

2. SPORTING GOODS
3. HARDWARE

4. TOYS

5. AUTOMOTIVE
6. ELECTRONICS

Customer travel between departments is restricted to the aisles shown in the block plan as dotted lines.

CALCULATIONS TABLE:
Dept. Pair Closeness Factor (w) Original Distance (dO)
w  dO Revision #1 Distance (d1)
w  d1
1 – 2
1 – 3
1 – 4
1 – 5
1 – 6
2 – 3
2 – 4
2 – 5
2 – 6
3 – 4
3 – 5
3 – 6
4 – 5
4 – 6
5 – 6
TOTAL

Complete the calculations and fill in the table above. Based on the table above answer the following questions.

a) What is the total expected weighted-distance score between Office Supplies and Hardware? (4 points)

b) What is the total weighted-distance score between Hardware and Toys? (4 points)

c) What is the total weighted-distance score for the entire store? (4 points)

d) A suggestion has been made to switch Hardware and Automotive. What would the total weighted-distance score for

the entire store if these two departments were switched? (4 points)

e) Based on your calculations, would you recommend that Hardware and Automotive be switched? (4 points)

Answer 3:

4. Balance the assembly line for the tasks contained in the table. The desired output is 240 units per day.

Available production time per day is 480 minutes.

Work Element Time (Sec.) Immediate Predecessor(s)
A 40 —
B 45 —
C 55 A
D 55 B
E 65 B
F 40 C,D
G 25 D,E

a) What is the desired Cycle time in seconds? (4 points)

b) What is the theoretical minimum number of stations? (4 points)

c) Use trial and error to work out a solution in the table below. Your efficiency should be at least 90%. (10

Points)

Station Candidates Choice Work-Element
Time (Sec) Cumulative Time (Sec) Idle Time

d) Calculate the efficiency of your solution. (2 points)

Answer 4:

5. A manufacturer’s research and development center must expand by building a new facility. The search has been

narrowed to five locations, all of which are acceptable to management. The assessment of these sites is being

made on the basis of the five subjective location factors that follow. Management has agreed to use a five-point

scale (Excellent = 5, and Poor = 1) to quantify and compare their subjective opinions about the relative goodness

of the sites. The weight reflects the importance of each factor in the decision.

Locations
Factor Weight A B C D E
Labor climate 0.30 4 2 1 4 2
Proximity to markets 0.30 5 3 3 4 4
Quality of life 0.15 1 3 2 1 5
Proximity to suppliers 0.15 2 5 3 4 3
Taxes 0.10 4 4 4 1 3

Calculate the weighted score for each alternative. Which location would you recommend? (15 points)

Answer 5:

6. Complete the following MPS Record (15 points)

Lot Size 130
Lead Time 1
Quantity on Hand 45 1 2 3 4 5 6 7 8 9 10
Forecast 25 25 25 25 50 50 50 50 40 20
Customer Orders (booked) 30 20 5 8 2
Projected On-Hand Inventory
MPS Quantity
MPS start
Available to Promise Inventory

Answer 6:

7. Use the bill of materials and inventory records to determine the quantity of purchased items necessary to

assemble 20 end items if the manufacturer uses lot-for-lot ordering. There are no end items currently on hand,

and none of the components have any scheduled receipts. (20 points)

Component On-hand Component On-hand
A 5 D 15
B 75 E 3
C 10 F 20

Answer 7:

8. Use the table below to answer the following questions.

a) Use the information in the Table above, what is the throughput time for the process, assuming that the Call

Center is always busy and has customers waiting to be processed? (5 points)

b) Use the information in Table above, what is the process bottleneck? (5 points)

c) Use the information in Table above, what is the 8-hour capacity for the process? (5 points)

d) Use the information in Table above, where would you expect customer wait times to occur? (5 points)

 

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