OPER360-3 Manufacturing &amp; Service Operations Final Your Name: Read and follow ALL instructions carefully. Failure to do so will result in the assessment of a point penalty based on the infraction. Instructions: It should take approximately 2 hours to complete this exam, if you study prior to taking it. The exam is DUE Friday June 9 by 2:00PM. It MUST be in my hands by this time. A paper copy of your exam must be delivered to Pigott 201 by this time. Late exams will NOT be accepted for ANY reason. A late exam will receive NO CREDIT. For multiple choice questions, you need only type the letter of the answer you select unless you select &quot;none of the above.&quot; In this case, you must show your work. Exam answers should be neatly presented and sequentially organized. This exam is an individual effort. Any student caught cheating (collaborating with other students to complete the exam) will receive NO CREDIT for the exam. Your exam MUST be submitted with a signed &amp; dated cover sheet. If you fail to submit a signed &amp; dated cover sheet you will receive NO CREDIT for the exam. This is an OPEN book exam. You may use your book, notes, PowerPoint slides, and any other course materials to complete the exam. You may NOT discuss the exam or its contents with ANY other student. Total Point Value Points Earned 1 2 3 2 Question Type Essay Short Answer (10 pts each) Short Problems Problems (20 pts each) TOTAL 40 20 20 40 120 I did not provide or receive any assistance in completing this exam. Signed: Dated: ____________ OPER360-3 Manufacturing &amp; Service Operations Final Essay (40 points) CHOOSE ONE OF TWO Your answer should be structured as an essay with an introduction, body &amp; conclusion. It should demonstrate your understanding of course concepts and contain references to course materials supporting your arguments. The essay should be no more than 3 pages in length. I prefer the essay be typewritten but neatly handwritten work is acceptable. Please DO NOT single space your essay. 1. You are the Vice President of Operations at a key supplier to DaimlerChrysler. Your company has historically produced transmissions, suspension systems and other smaller parts for their U.S. &amp; Canadian assembly lines. The parts are produced in large batches to their specifications and then delivered to the main receiving dock of the appropriate plant. On-time delivery percentages hover around 85% and quality levels are average (not exceptional or horrible). Historically, DaimlerChrysler has been satisfied with your performance but you know things will soon change. You have been reading about the Liberty project and see the writing on the wall. You believe changes should be made now so that your company will be an attractive partner to DaimlerChrysler in the future. You have a meeting with your colleagues on the Executive Committee tomorrow to present your ideas. Develop a strategy, identify the changes you would need to make to implement this strategy and highlight the potential risks and benefits of making this strategic shift. Siekman, Philip, &quot;Jeep Builds a New Kind of Plant,&quot; Fortune, November 11, 2002. Essay Question #2 We all know that customers and service are important dealing with a business. Having a product that best suits it needs can give a company an advantage, such as the in the <a href="/keyword/automotive-industry/" >automotive industry</a> . DaimlerChrysler has been satisfied in the ways they operate their Jeep Liberty line operation in Toledo plant. However, it does need improvement in different categories of the parts and production process. Some of their improvement has to involve their shipments of parts from suppliers, competitive priorities, productivity, and customization of parts. They believe that strategic plan is best suits their needs as production line with no inventory. They are many ways in going on a long term plan for this company and should develop more of a better strategic than the one that is implemented. DaimlerChrysler company needs to improve the way they handle there shipments of parts to build their line of Jeep Liberty's. In the article, they said that they had trouble with shipments Page 2 OPER360-3 Manufacturing &amp; Service Operations Final because some of the parts customize from different suppliers rather than stick with one. They rely more on the forecasting the amount of Jeep they're going to make in one day than the actual data statistic building their line. One problem with that is a lot can change in matter of days such as their shipments of parts or missing parts. Without their shipments of parts needed their whole production line can be cancelled in days and that can cost the company lot money holding their line. When parts are missed they are critical in building a single Jeep. One way to look at is that the company is keeping a good source of the inventory of parts. However, the company says that they are fine without keeping an inventory of parts. In the long term nature of things, they should rely on keeping a good inventory because they said that consume all the parts needed from the inventory in one day of the production line. That's not a good idea if it good to be a long term plan for its business and plus the also rely too much on their JIT (just in time) method. Another good way that DaimlerChrysler should do is use a better way of using their competitive priorities (Cost, Quality, Time, and Flexibility). This is important in looking at long term strategic plan and goes in the line with their productivity level. They believe that their production line time is competitive among different cars companies such as Ford Company and Nissan. In the article they say the can build a single Jeep in 26.11 man hours of their production line. However, Ford and Nissan build them faster than DaimlerChrysler Jeep line they average about 20.5 man hours in building one of their SUV lines. Time management important and they need to be more focused on because some companies can build their line of cars and SUV faster and get them out the showroom cases to sell. Slow productivity time can cost in the long run. As most of the companies look into the future, they should be more productive as they said that they are. In the cost and quality, they believe that their line of Jeep and SUV are reasonable price and the quality meets their expectations as well. I believe they need to improve on their flexibility and time. Even though they some companies they are falling like Ford you can't really assume Page 3 OPER360-3 Manufacturing &amp; Service Operations Final that they are going to fall off in the long run. A lot companies such as Ford can perform better as year progress. The <a href="/keyword/automotive-industry/" >automotive industry</a> is a competitive business and companies are going to improve in different ways. Competitive priorities are important and would benefit DaimlerChrysler the way they use productivity time and it flexibility. Mass customization is a long term process that can benefit DaimlerChrysler Company. By implement these ideas; they can differentiate themselves among the variety of competitive automotive companies. Having different line can attract consumer globally with different assortments parts integrated in their line of Jeep Liberty's. In looking to the future, they are a lot younger buyers out there and the more technological the vehicles can be. However, the Jeep Liberty already has provided customization parts to their vehicles but they need more technological upgrade. A lot more automotive companies are putting higher technological products to their vehicles. By having more of a technological feel DaimlerChrysler will have a better competitive aspect among the competition. In conclusion, they are many ways in implementing ideas for a long term strategic for DaimlerChrysler Company. Some of the ideas that I stated, I think will help suit them in a better long term strategic plan. One of their problems was their shipments and relied more without consuming any inventory and their suppliers. It's always a good idea to have a little inventory of parts in case if any specific are missing. Another idea is customization; it's always a good plan to differentiate the company from many of the automotive companies. In consumer market, you can easily find a distinction from parts integrated into their vehicles. Again, DaimlerChrysler is a good company I pretty sure they will find problems but I believe they can improve as year progress in the ideas I implemented. Page 4 OPER360-3 Manufacturing &amp; Service Operations Final 2. You and your friends enjoy spending your free time at the local pub discussing operations concepts. One evening during a heated discussion a woman at the neighboring table interrupts you. She has been listening to your conversation and wants your advice on how she can improve her business. She explains to you that she owns a nearby bakery. Her business has almost doubled in the past three months. As a result, she is struggling to keep pace with the increased demand. Additionally, some of her best customers have told her they feel product and service quality have significantly degraded. She doesn't have much capital to invest in improvements but wants to address her customers' concerns. She asks if there are ways she can improve the quality of her products and services without increasing her costs. Formulate an answer to her question. Page 5 OPER360-3 Manufacturing &amp; Service Operations Final Short Answer (10 points) You may use bullet points or short paragraphs to answer these questions. Answers DO NOT need to be in essay form. Each answer should be no more than one page in length. Brevity &amp; clarity are preferred. 3. Think back to your plant tour. Identify and define three concepts/ideas we have discussed this quarter. Describe with an example how you saw each concept applied at the plant you visited. The three concepts I found while doing the plant tour is Benchmarking, Productivity and Competitive Priorities. Benchmarking: It's a process of determining who is the very best, who sets the standard, and what that standard is: I found that this was a good to implement while going on our tour of the Seattle Times Facility. It helped me define how the standards are met and what their goals are and how they measure it. One example, Competitive Priorities: Capabilities the operations function can develop in order to give a company a competitive advantage (Cost, Quality, Time, and Flexibility). Seattle Times Company implement these ideas cost, quality, time, and Flexibility. They care on the quality of their product, the time that is made, the flexibility varieties of section in the newspaper, and the cost is convenient to customer. Productivity: It measures how well resources used. Seattle Times uses a good amount of their resources given by their suppliers supplied to them. The massive rolls of newsprint are used everyday to meet their demands daily. What is social responsibility? Is it important in today's business environment? Why or why not? What issues make social responsibility challenging? 4. Social Responsibility: The principle that companies should contribute to the welfare of the society and not be solely devoted to maximizing their profits. These effects cover: Environment Community Employees Workplace Conditions Educating the Customers Conservations Quality I think it's the important in today's environment because everything changes everyday it focuses the important values that state above (the bulleted points). I think the challenging issue in dealing with social responsibility for a company is dealing the community and the environment. A lot of companies these days care too much on their business that they don't think about care about the environment and the community. Page 6 OPER360-3 Manufacturing &amp; Service Operations Final SHORT PROBLEMS 5. (10 points each) SHOW YOUR WORK!!! 6. The company that manufactures door panels for the Smart can produce door panels at a rate of 650 per week. The panels are packaged in pallets of 10 for shipment to the final assembly facility. Demand for door panels is 430 per week. They operate 50 weeks per year. The set up cost is $220 and the annual holding cost is $100 per pallet. a. What is the EPQ (Economic Production Quantity) for door panels? (5 points) 528.47 b. What is the total cost associated with the EPQ solution? (5 points) 17,934.37 Outdoor Gear Inc. packages equipment for hiking enthusiasts. The Adventure Tent is (AT380) is composed of two components: AT382 and AT384. Create a material requirements plan using the ordering, usage &amp; demand information provided below. Component Lot Size Rule Lead Time (weeks) Usage Factor Beginning Inventory Parent AT380 AT382 AT384 L4L FOQ=100 POQ=2 3 2 1 1 2 1 250 50 0 -AT380 AT380 Demand for AT380 Week 1 Gross Rqmts. Proj. Avail 250 Planned Order Gross Rqmts. Proj. Avail 50 Planned Order Gross Rqmts. Proj. Avail Planned Order 2 250 3 250 50 100 50 100 4 90 160 20 20 110 40 5 50 110 70 140 70 70 6 70 40 7 60 0 8 70 0 40 70 Problems (20 points each) Answer BOTH questions. 7. Bob's Big Burgers produces a world famous 13 oz. Big Burger. Bob's Big Burger is best known for its size and consistency. You have been asked to review the data to determine if Bob's Big Burger is being produced consistently. Samples of five observations each were taken and the results are listed below. (Factors can be found on Table 6-1 on p. 182 of the text.) 1 1 14.3 2 12.6 3 13.2 4 13.1 5 12.1 6 13.7 7 12.0 8 12.5 Page 7 OPER360-3 Manufacturing &amp; Service Operations Final 2 3 4 5 1. 13.2 13.5 13.9 13.0 13.3 12.8 12.4 13.0 12.7 13.0 13.3 12.1 13.4 12.8 13.1 12.2 12.1 12.4 13.4 13.3 14.0 13.4 14.4 13.3 12.1 13.6 12.4 12.4 12.7 13.0 12.2 12.6 The upper and lower control limits of the process mean are: (5 points) a. 14.0 / 11.9 b. 13.7 / 12.2 c. 13.6 / 12.3 d. 13.4 / 12.5 e. None of the above. The correct answer is: ______________________. The process mean is IN CONTROL / OUT OF CONTROL(X) (3 points) The upper and lower control limits of the process range are: (5 points) a. 3.7 / 0.0 b. 3.3 / 0.2 c. 2.6 / 0.0 d. 2.3 / 0.2 e. (X) None of the above. The correct answer is: _____2.185/0.2 or .1645_. The process range is IN CONTROL(X) / OUT OF CONTROL (3 points) What actions would you take as the result of this analysis? (4 points) The samples taken the Bob's Big Burger produces burgers that aren't exactly 13oz as they say. Some of the burger were a little too big and just a tad under size. When doing UCL and LCL process mean chart they a little out of control in the burger size. However, their burger range were in control of their control 2. 3. 4. 5. Page 8 OPER360-3 Manufacturing &amp; Service Operations Final 8. Given the following information about a plan to prepare the grounds for commencement at Pleasantville University: (Durations are in hours.) Task Label A B C D E F G H I J Task Title Cut &amp; trim field grass Cut &amp; trim lawn at President's Home Move stage to field Move chairs to field Plant flowers at President's Home Assemble stage on field Set up canopy, tables &amp; chairs Install PA system Arrange chairs &amp; runners on field Sweep streets &amp; remove trash A 10 Start C 8 F 6 H 6 D 4 I 3 J 4 B 5 E 12 G 4 Page 9 OPER360-3 Manufacturing &amp; Service Operations Final a. The critical path is: (4 points) a. ACFHJ b. ACFIJ c. ADIJ d. BEGJ e. All of the paths listed above are critical. b. How much TOTAL SLACK does Activity D have? (3 points) a. 0 hours b. 4 hours c. 10 hours d. 13 hours e. None of the above. The correct answer is: ________________________. c. How much FREE SLACK does Activity D have? (3 points) a. 13 hours b. 10 hours c. 4 hours d. 0 hours e. None of the above. The correct answer is: ________________________. d. How much FREE SLACK does Activity I have? (3 points) a. 10 hours b. 13 hours c. 3 hours d. 0 hours e. None of the above. The correct answer is: ________________________. e. How much TOTAL SLACK does Activity J have? (3 points) a. 9 hours b. 0 hours c. 3 hours d. 4 hours e. None of the above. The correct answer is: ________________________. f. TRUE or FALSE If Task B (Cut &amp; trim the lawn at the President's home) is delayed by 3 hours the entire project will be delayed. (2 points) g. TRUE or FALSE If Task B (Cut &amp; trim the lawn at the President's home) is delayed by 10 hours the entire project will be delayed. (2 points) Page 10