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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 threesigma chart and for a threesigma 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. MicroZ 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 MicroZ sells CDs for $9 each, what is the breakeven point using Option 1?
b) If MicroZ sells CDs for $9 each, what is the breakeven point using Option 2?
c) If MicroZ sells CDs for $9 each, what is the breakeven point using Option 3?
d) If MicroZ sells CDs for $10 each, what level of output produces a profit of $1000/month using
Option 2?
e) If MicroZ sells CDs for $10 each, what level of output produces a profit of $1000/month using
Option 3?
f) If MicroZ 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 MicroZ 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 AG 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,ycoordinates): (1,2), (2,4),
(3,8), (4,2), (4,3). Each point has a weight equal to twice its ycoordinate. What is the centerofgravity
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.
 Winter '03
 JamesCampbell

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