PROBLEMS

1. A manager checked production records and found that a worker produced 160 units
while working 40 hours. In the previous week, the same worker produced 138 units
while working 36 hours. Did the worker’s productivity : Increased Decreased
OR Remain same. At what level ?

2. An operation has a 10 percent scrap rate. As a result, 72 pieces per hour are produced.
What is the potential increase in labor productivity that could be achieved by
eliminating the scrap?

3. Determine the productivity for these cases:

4. Collins Title wants to evaluate its labor and multifactor productivity with a new
computerized title search system. The company has a staff of four , each working 8
hours per day ( for a payroll cost of $640 /day) and overhead expenses of $400 per day.
Collins processes and closes on 8 titles each day. The new computerized title search
system will allow the processing of 14 titles per day. Although the staff , their work
hours, and pay are the same, the overhead expenses are now $800 per day. Comment on
the single factor and multifactor productivity.

RELIABILITY
1. Mr. Robert must choose a service provided for his company’s e-commerce site. Other
factors being equal, he will base his decision on server availability. Given the following
server performance data, which provider should he choose?

Provider MTBF (hr) MTTR

A 60 4.0

B 36 2.0

C 24 1.0

2. A hospital has three independent fire alarm systems, with reliabilities of 0.95, 0.97 and 0.99. In the
event of a fire, what is the probability that a warning would be given?

3. A product engineer has developed the following equation for the cost of a system
component : C= (10P)2, where C is the cost in dollars and P is the probability that the
component will operate as expected. The system is composed of two identical components,
both of which must operate for the system to operate. The engineer can spend $173 for the
two components. To the nearest two decimal places, what is the largest component
probability that can be achieved?
4. A computer system has 3 components UPS, PC and printer in series. The printer has a backup
printer to increase its reliability. Find the reliability of the system to enable a printout to be taken at
any point of time.

5. One of the industrial robots designed by a leading producer of servomechanisms has four
major components. Components’ reliabilities are 0.98, 0.95, 0.94 and 0.90. All the
components must function in order for the robot to operate effectively.
a. compute the reliability of the robot.
b. Designers want to improve the reliability by adding a backup component. Due to
space limitations, only one backup can be added. The backup for any component will
have the same reliability as the unit for which it is the backup. Which component
should get the backup in order to achieve the highest reliability?
c. If one backup with a reliability of 0.92 can be added to any one of the main
components, which component should get it to obtain the highest overall reliability?
6. Draw the House of quality and label its parts
7. Prepare a service blueprint for each of these banking transactions

- Apply for a home equity loan