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Module 1 - Practice Questions Atlas Inc Atlas Inc. is a toy bicycle manufacturing company producing a five-inch small version of the bike that Lance...

Hi attached PDF questions related to Operation MGMT kindly mail me d answers

1 Module’1 ’ –’ Practice’ Questions Atlas Inc Atlas Inc. is a toy bicycle manufacturing company producing a five-inch small version of the bike that Lance Armstrong rode to win his first Tour de France. The assembly line at Atlas Inc. consists of seven work stations, each performing a single step. Stations and processing times are summarized here: • Step 1 (30 sec.): The plastic tube for the frame is cut to size. • Step 2 (20 sec.): The tube is put together. • Step 3 (35 sec.): The frame is glued together. • Step 4 (25 sec.): The frame is cleaned. • Step 5 (30 sec.): Paint is sprayed onto the frame. • Step 6 (45 sec.): Wheels are assembled. • Step 7 (40 sec.): All other parts are assembled to the frame. Under the current process layout, workers are allocated to the stations as shown here: • Worker 1: Steps 1, 2 • Worker 2: Steps 3, 4 • Worker 3: Step 5 • Worker 4: Step 6 Worker 5: Step 7 AI1.’ What is the bottleneck in this process? AI2. What is the capacity of this assembly line, in finished units/hour? AI3. What is the utilization of Worker 4, ignoring the production of the first and last units? AI4. What is the average labor utilization of the workers, ignoring the production of the first and last units? AI5. Assume the workers are paid $15 per hour. What is the cost of direct labor for the bicycle? Airline Check-in AC1. Consider the baggage check-in of a small airline. Check-in data indicate that from 9 a.m. to 10 a.m., 255 passengers checked in. Moreover, based on counting the number of passengers waiting in line, airport management found that the average number of passengers
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2 waiting for check-in was 35. How long did the average passenger have to wait in line? Joe’s Beer, Bait & Tackle Joe’s Beer, Bait, & Tackle Co. is a small chain of fishing tackle stores in northern Minnesota. In 2009, the company’s revenue was $4,300,000 and its cost of sales was $3,200,000. Assume 52 weeks and 365 days per year. JBBT1. Joe keeps only 5.5 days-of-supply of inventory on average because much of his inventory is live bait and micro-brew beer, both of which have a short shelf life. What is his annual inventory turns? JBBT2.’ Given that he has 5.5-days-of-supply of inventory on average, how much inventory does Joe have on average (in $s)? Process Analysis with Multiple Flow Units Consider a process consisting of five resources that are operated eight hours per day. The process works on three different products, A, B, and C: Resource Number of workers Processing time for A (minutes) Processing time for B (minutes) Processing time for C (minutes) 1 2 5 5 5 2 2 4 4 5 3 1 12 0 0 4 1 0 3 3 5 2 6 6 4 Demand for the three different products is as follows: product A, 40 units per day; product B, 50 units per day; and product C, 60 units per day. PA1.’ What is the bottleneck? PA2.’ What is the flow rate for each flow unit assuming that demand must be served in the mix described above (i.e., for every four units of A, there are five units of B and six units of C)?
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1 Module’2 ’ –’ Practice’ Questions Dr Peters Dr Peters is a physician employed by a large primary care practice in Wynnewood, PA. The practice in which he works is open 260 days a year. Physicians have 30-minute appointment slots starting at 8am all the way up to 6pm. The practice is looking for improvement opportunities and wants to get a sense of the Overall People Effectiveness (OPE) of their physicians. The data collected so far suggests that: - Dr Peters, because of his German parents, spends 30 work days a year on vacation. - He also loses 2h of potential work time each day due to electronic medical record- keeping (he blocks these 2 hours in his schedule, so no appointments are available during this time). - Dr Peters has a really busy schedule, so 75% of his appointments are booked. - About half of the patients Dr Peters sees are coming for their annual check-up. Such exam appointments are made a long time in advance. About one out of every six patients does not show up for his or her appointment. - Though the appointment slots are 30 minutes per slot, Dr Peters only spends, on average, 23 minutes with the patient (or doing work related to the patient after the patient has left the office). Of those 23 minutes, about 5 minutes could easily be done by one of Dr Peters’s assistants. DRP1. How many patients does Dr Peters see on a typical day when he is at work? DRP2. What is his OPE? (Assume that his maximum availability is 260 days in a year) MySunshine Hotel MySunshine Hotel is a chain with 10 identical hotels which operate 365 days a year. The chain invested $200M to purchase land for these 10 hotels and $100M to build and furnish them. Each hotel has 150 rooms and charges and average price of $180 per night. Each operating material cost for each hotel is $1M. On top of that, each hotel is staffed with 60 employees, each paid $50,000 a year on average. The number of hotel employees has a direct effect on hotel occupancy in the following way: Hotel occupancy rate=0.01 X Number of Employees
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2 Define the return on invested capital as the ratio of the profits (PER YEAR) and the invested capital. You can draw an ROIC tree in the same way that we drew a KPI tree in class. Simply have the ROIC as “the root” of the tree instead of profits. Then answer the following questions. MH1. What is the ROIC? MH2. Reducing the number of employees reduces staffing costs, but it also reduces the occupancy rate when service level drops. What is the ROIC if MySunshine reduces the number of employees to 50 per hotel? Assign Tasks to Workers Consider the following six tasks that must be assigned to four workers on a conveyor-paced assembly line (i.e., a machine-paced line flow). Each worker must perform at least one task. Time to Complete Task (seconds) Task 1 30 Task 2 25 Task 3 35 Task 4 40 Task 5 15 Task 6 30 The current conveyor-paced assembly line configuration assigns the workers in the following way: • Worker 1: Task 1 • Worker 2: Task 2 • Worker 3: Tasks 3, 4 • Worker 4: Tasks 5, 6 ATW1. What is the capacity of the current line? ATW2. Now assume that tasks are allocated to maximize capacity of the line, subject to the conditions that (1) a worker can only perform two adjacent operations and (2) all tasks need to be done in their numerical order. What is the capacity of this line now? ATW3. Now assume that tasks are allocated to maximize capacity of the line and that tasks can be performed in any order. What is the maximum capacity that can be achieved?
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