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problem set 1 - COMM 399 Logistics and Operations...

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1 COMM 399: Logistics and Operations Management Problem Set 1 (Due Wednesday, March 26 th Note: The full mark of this problem set is 66. You must show your work to fully justify your answers. , 2010) 1. True or False (2 points) a. (1 point) Efficiency measures how well a process performs to meet customer requirements or to create value. (Justify your answer.) b. (1 point) Capacity Rate = 1 / Flow Time. (Justify your answer.) 2. Productivity (6 points) a. (3 points) Iris's Auto Body Repair Shop had revenues that averaged $70,000 per week in April and $60,000 per week in May. During both months, the shop employed six full-time (40 hours/week) workers. In April the shop also had four part-time workers working 25 hours per week but in May there were only 2 part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Iris's Auto Body Repair? b. (3 points) In addition to labor input, Iris’s Auto Body Repair Shop also pays $1,000 per week for energy and $10,000 per week for material in April. If all workers are paid at rate of $10 per hour, then what is the multi-factor measure of productivity for labor, energy and material in April? 3. Process Flow Analysis (12 points) A certain product X consists of two major parts A and B. For the final assembly part A goes through the following two stations: painting color (3 mins), drying the new paint (10 mins). In parallel to the part A finishing, part B goes through the two stations: painting color (5 mins), drying the new paint (8 mins). Then the finished two parts will be connected (5 mins). Before the final packing station (3 mins), the product X is re-examined (5mins). Assume this is a fully automated process. a. (2 points) Draw a simple linear flow chart.
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