252samp2

# 252samp2 - BA 252 Dr. Campbell Samples II 1. A grinding...

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Unformatted text preview: BA 252 Dr. Campbell Samples II 1. A grinding machine is used to shape metal plates for use in aircraft landing gear. Each plate should be exactly 25 cm wide. Five samples of 4 plates each were measured as follows: Sample No. 1 2 3 4 5 Width i24.89 n cm. 25.12 24.94 24.99 25.04 24.93 24.89 24.98 25.06 25.11 24.98 24.72 25.04 24.88 24.97 25.04 25.02 24.79 25.00 24.90 a) Determine the upper and lower control limits for a three-sigma chart and for a three-sigma R chart. b) Given the following three samples, is in the process in control or out of control? Sample No. 1 2 3 Width i25.10 n cm. 25.28 24.91 24.96 24.82 24.92 24.98 24.71 25.04 24.97 25.08 25.09 2. Micro-Z is building a new plant to make CDs. Three options are under consideration. Option 1 has a fixed cost of \$700,000 per year and a variable cost of \$3 per CD. Option 2 has a fixed cost of \$400,000 per year and a variable cost of \$5 per CD. Option 3 has a fixed cost of \$300,000 per year and a variable cost of \$7 per CD for the first 80,000 produced each year and \$5 per CD for all over 80,000 produced each year. a) If Micro-Z sells CDs for \$9 each, what is the break-even point using Option 1? b) If Micro-Z sells CDs for \$9 each, what is the break-even point using Option 2? c) If Micro-Z sells CDs for \$9 each, what is the break-even point using Option 3? d) If Micro-Z sells CDs for \$10 each, what level of output produces a profit of \$1000/month using Option 2? e) If Micro-Z sells CDs for \$10 each, what level of output produces a profit of \$1000/month using Option 3? f) If Micro-Z produces 150,000 CDs per year using Option 2 and wishes to make an annual profit of \$80,000, what should be the selling price of each CD? g) If Micro-Z produces 150,000 CDs per year using Option 3 and wishes to make an annual profit of \$80,000, what should be the selling price of each CD? h) Compare the costs for the three options to determine the level of output over which each is best. Also, 1 graph the cost for the three options. 3. An assembly line consists of seven tasks A-G as shown below. Times are in minutes. Task A B C D E F G Time 6 2 5 4 3 4 4 Predecessor A,C C A,D B,E E,F a) What cycle time is needed to obtain an output of 60 units per 8 hour day? b) What is the minimum number of workstations required to achieve an output of 60 units per 8 hour day? c) Assign tasks to workstations to obtain the best balance using 4 workstations. What is the efficiency of your solution? 4. Given the following daily workflow cost information for 5 work centers, and the following distance information for five locations (denoted A, B, C, D, E), assign the work centers to the locations to minimize the total distance*workflow. Workflow (loads/day) 1 From 2 3 4 5 Distance (feet) A B 1 30 15 20 10 to 2 10 20 5 40 3 15 0 5 5 4 5 10 10 10 5 10 20 20 5 - A 20 20 B 20 30 C 20 30 - D 30 20 10 E 50 60 30 30 50 20 60 10 30 40 40 - C D E 5. A firm can invest \$2 million today to establish a new plant. They would then need to spend \$200,000 after two years and \$400,000 after four years in maintenance and upgrades. This new plant could generate revenues of \$700,000 at the end of each of the first four years. If the rate of return is 9%, should the firm establish the new plant? 6. A company must make deliveries to the following 5 points (identified by x,y-coordinates): (1,2), (2,4), (3,8), (4,2), (4,3). Each point has a weight equal to twice its y-coordinate. What is the center-of-gravity 2 location? 7.1 Which type of process strategy is most appropriate for a gourmet restaurant? a) process focus b) product focus 7.2 Which of the following is useful for improving the layout of a service system? a) utilization b) efficiency c) proximity chart d) differentiation 7.3 Which of the following is not a key concept of TQM a) continuous improvement. b) focus on the customer. c) cost minimization. d) employee empowerment. 3 ...
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## This note was uploaded on 02/15/2012 for the course BA 252 taught by Professor Jamescampbell during the Winter '03 term at UMSL.

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