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NAME OF CANDIDATES :
1.

2.

3.

4.

5.

6.







P a g e | 2

1. Question S10.21, page 428
20 marks

S10.21
(a) 10 marks

Job Element

Observed Time
(seconds)

Perf. Rating
Grasp and place bag 8 9 8 11 7 110%
Fill bag 36 41 39 35 112
a
85%
Seal bag 15 17 13 20 18 105%
Place bag on conveyor
8

6

9

30
b


35
b


90%

a
Bag breaks open, include as part of delay in allowance factor.

b
Conveyor jams, include as part of delay in allowance factor.
Note: If bags break open with any regularity, then these observations would be included in
the time for this element . . . it would be part of the element and task.

Calculating average observed time:
8 9 8 11 7 43
Element 1 8.6 seconds
5 5
36 41 39 35 151
Element 2 37.75 seconds
4 4
15 17 13 20 18 83
Element 3 16.6 seconds
5 5
8 6 9 23
Element 4 7.67 seconds
3 3
+ + + +
= = =
+ + +
= = =
+ + + +
= = =
+ +
= = =


Calculating normal time for each task element:
Normal time Observed time Performance rating
Element 1 8.60 1.10 9.46 seconds
Element 2 37.75 0.85 32.09 seconds
Element 3 16.60 1.05 17.43 seconds
Element 4 7.67 0.90 6.90 seconds
=
= =
= =
= =
= =


Normal time for the process:
Normal time for process = Sum of normal times for elements
= 9.46 + 32.09 + 7.43 + 6.90
= 65.88 seconds
Standard time for process:

=
= =
Normal time for process
Standard time for process
1 Allowance factor
65.88
85.56 seconds
1 0.23
(b) 10 marks









2
2
2
2
Sample size required
2.58 1.52
83 samples for grasp and place bag
0.05 8.6
2.58 2.75
14 samples for fill bag
0.05 37.75
2.58 2.7
70 samples for seal bag
0.05 16.6
zs
n
hx
n
n
n
| |
= =
|
\ .
| |
= =
|

\ .
| |
= =
|

\ .
| |
= =
|

\ .
2
2.58 1.54
107 samples for place bag on conveyor
0.05 7.67
n
| |
= =
|

\ .

Therefore, if all cycles must be studied together (the typical case), 107 cycles must be
studied.

Calculating Sample Size


Job Element


Mean ( ) X
Desired
Accuracy
(h)
Std. Dev.
Required
(Z)
Std. Dev. of
Sample
(S)

Samples
Required
Grasp and place bag 8.60 0.05 2.58 1.52 83
Fill bag 37.75 0.05 2.58 2.75 14
Seal bag 16.60 0.05 2.58 2.70 70
Place bag on conveyor 7.67 0.05 2.58 1.54 107

P a g e | 4

2. Question S10.30, page 429
10 marks

S10.30

(a) Minutes available per day = 6 hours 2 hours
= 4 x 60 min = 240 min

(b) Minutes of room cleaning required

200 room @ 30 min each = 6,000 minutes

200 room @ 15 min each = 3,000 minutes

Total of 9,000 minutes = 150 hours

(c) Each employee can clean 8 rooms (4 hr/.5 hr = 8)

Each employee can refresh 16 rooms (4 hr/.25 hr = 16)



(d) 400 room @ .5 hr each = 200 hr

200/4 = 50 employees required to thoroughly clean all 400 rooms.

9,000 min.
Total housekeepers needed today 37.5 38
240 min.
= = ~
3. Question 13.9, page 215
16 marks

13.9









(a) Plan A: Minimum rate of 1,000/month, subcontract for additional.




Month Expected Demand
Jul 1,000
Aug 1,200
Sep 1,400
Oct 1,800
Nov 1,800
Dec 1,600
Plan A
Period Demand Production Ending
Inv.
Subcont.
(Units)
Extra Cost

Jul

1,000

1,000

0



0

Aug

1,200

1,000

0

200

12,000

Sep

1,400

1,000

0

400

24,000

Oct

1,800

1,000

0

800

48,000

Nov

1,800

1,000

0

800

48,000

Dec

1,600

1,000

0

600

36,000
Total Extra Cost: $168,000
(b) Plan B: Vary workforce.
Plan B
Period Demand Production
(Existing)
Hire (Units) Layoffs
(Units)
Extra Cost
Jul 1,000 1,300 300 $18,000
Aug 1,200 1,000 200 6,000
Sep 1,400 1,200 200 6,000
Oct 1,800 1,400 400 12,000
Nov 1,800 1,800
Dec 1,600 1,800 200 12,000
Total Extra Cost: $54,000
P a g e | 6

13.10
(a)
Plan C
Period Demand Production
(Units)
Subcont.
(Units)
Ending
Inv.
Extra Cost
Jun 300
Jul 1,000 1,300 600 $15,000
Aug 1,200 1,300 700 17,500
Sep 1,400 1,300 600 15,000
Oct 1,800 1,300 100 2,500
Nov 1,800 1,300 400 0 24,000
Dec 1,600 1,300 300 0 18,000
Total Extra Cost: $92,000


Plan D
Subcont. Idle Time
Month Demand Reg. (Units) O.T. (Units) End Inv. Units (Units) Extra Cost
Jul 1,000 1,300 180 120 $11,700
Aug 1,200 1,300 180 100 10,500
Sep 1,400 1,300 100* 180 8,500
Oct 1,800 1,300 260 0 60 14,000
Nov 1,800 1,300 260 0 240 24,800
Dec 1,600 1,300 260 0 40 12,800
Total Extra Cost: $82,300






If our object in comparing the plans is to identify the elements of an optimal plan, we must
consider the following:

Plans A, B, and D begin with zero initial inventory, Plan C begins with an initial inventory of 300
units. It is therefore inappropriate to compare directly the results of Plan C with those of Plans A,
B, and D. In addition, we can assume that the warehouse constraint introduced in Plan D would
have affected the costs of Plan A and Plan C had it been in effect in those plans. What one can
say is that the aggregate planning options should be utilized as available, in the following order:
Carryover of inventory: $25/unit
Overtime: $40/unitHiring: $30/unit
Layoff: $60/unit
Subcontracting: $60/unit
Stockout: $100/unit



(b) Plan D: Maximum units in overtime = 0.20 1,300 = 260
* In anticipation of October demand.
4. Describe the four types of inventory and gives an examples to each.
5 marks

The four types of inventory are:

1. Raw materialitems that are to be converted into product

2. Work-in-process (WIP)items that are in the process of being converted

3. Finished goodscompleted items for which title has not been transferred

4. MRO(maintenance, repair, and operating supplies)items that are necessary
to keep the transformation process going


5. Question 12.16, page 518
15 marks

12.16 D = 12,500/year, so d = (12,500/250) = 50/day, p = 300/day, S = $30/order, H =
$2/unit/year

(a)


(b)


(c)




(d) Days of demand satisfied by each production run




Time in production for each order =
days in production for each order.

Total time = 13.42 days per cycle.

Thus, percent of time in production

(e)



DS
Q
d
H
p
2 2 12,500 30
= = = 671
50
2 1
1
300
( (
(

D
N
Q
12,500
Number of production runs ( ) = = =18.63
671
50
Maximum inventory level 1 = 671 1
300
1
= 671 1 = 559
6
d
Q
p
| | | |
=
| |
\ . \ .
| |

|
\ .
250
=13.42 days in demand only mode
18.63
=
671
= = 2.24
300
Q
p
Cost of inventory, excluding goods
559
(18.63 30) 2 $1,117.90
2
| |
= + =
|
\ .
2.24
= =16.7%
13.42
P a g e | 8

6. Question 6.9, page 215
10 marks

Depending on the type of student body, the response could
vary. A typical chart might look like the following:


7. Discussion question 1, page 214.
5 marks

Higher quality leads to greater demand, to greater market share, to greater economies of scale.

Additionally, higher quality leads to less scrap, rework, and warranty cost, hence to less input

required for same output.

8. Discussion question 6, page 214.
5 marks

The seven tools of TQM are:

Checksheet

Scatter diagram

Histograms

Pareto charts

Flow charts

Cause-and-effect diagrams

Statistical process control chart

9. Discussion question 16, page 214.
5 marks

According to Berry, Zeithaml, and Parasuraman, the 10 determinants of service quality are:
Reliability

Responsiveness

Competence

Access

Courtesy

Communication

Credibility

Security

Understanding/knowing the customer

Tangibles
P a g e | 10

10. Discussion question 1, page 681.
3 marks

The objective of maintenance and reliability is to maintain the capability of the system while

controlling costs.

11. Discussion question 3, page 681.
3 marks

Infant mortality refers to the high rate of failures that exists for many products when they are

relatively new.

12. Discussion question 10, page 681.
3 marks

Only when preventive maintenance occurs prior to all outliers

of the failure distribution will preventive maintenance preclude all failures. Even though most

breakdowns of a component may occur after time t, some of them may occur earlier. The earlier

breakdowns may not be eliminated by the preventive maintenance policy. A distribution of

natural causes exists.