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Operations Management Comprehensive

The document provides guidelines for a comprehensive exam on operations management. It includes 8 practice problems covering various topics such as facility layout, line balancing, project management network diagrams, forecasting techniques, production planning, inventory management, and applications of supply chain management and lean manufacturing concepts. Students have 1 hour to complete the exam.

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ashish
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212 views

Operations Management Comprehensive

The document provides guidelines for a comprehensive exam on operations management. It includes 8 practice problems covering various topics such as facility layout, line balancing, project management network diagrams, forecasting techniques, production planning, inventory management, and applications of supply chain management and lean manufacturing concepts. Students have 1 hour to complete the exam.

Uploaded by

ashish
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 9

ID ________________________ Name ____________________________ Page 1 of 9

BP 6904 Operations Management


Comprehensive Exam Guideline
These are the list of practices questions for comprehensive exam. The exam will be given in the
similar format. Students will need 1 hour.
Problem 1:
The associate administrator at ABAC Hospital wants to evaluate the layout of the outpatient clinic. The
following table shows the interdepartmental flows (patients/day) between departments.
Trips Between Departments
Department
1
2
3
4
5
6
1. Reception
15
20
5
10
15
2. Business Office
10
5
10
15
3. Examining room
15
20
20
20
4. X-Ray
25
10
5. Laboratory
10
20
6. Surgery
5
If the current layout is as follow:
4
6
5
2

a. Determine the effectiveness of the current layout (as measured by the non-adjacent load).
b. Try to find the best possible layout if it must be revised to keep department 1 at its present
location. Determine the total non-adjacent load obtained. (Try the following layout)
4
5
2
6

(Chapter 7) [15 marks]

Two-way load
1<->2=15+10=25
1<->3=20+15=35
1<->4=5+0=5
1<->5=10+0=10
1<->6=15+0=15

2<->3=5+0=5
2<->4=10+0=10
2<->5=15+0=15
2<->6=0+0=0

3<->4=20+0=20
3<->5=20+10=30
3<->6=20+0=20

4<->5=25+0=25
4<->6=10+5=15

5<->6=20+0=20

a. Original layout
15
5
25
4
10

15
20

20

20

15

35

5
30

10

25

Total non-adjacent load = 15+5+25+25 = 70


b. New layout (Hint: Try to reduce maximum non-adjacent load in the original layout (1<->2
= 25 and 4<->5 =25))

ID ________________________ Name ____________________________ Page 2 of 9

5
10
4
15

25

5
20

20

15

30

25
5

20

10
35

15

Total non-adjacent load = 5+10+15 = 30

ID ________________________ Name ____________________________ Page 3 of 9


Problem 2:
A company is setting up an assemble line to produce 192 units per eight-hour shift. The following
table identifies the work elements, times, and immediate predecessors.
Work Element
Time (sec)
Immediate Predecessor(s)
A
40
B
80
A
C
30
D, E, F
D
25
B
E
20
B
F
15
B
G
120
A
H
145
G
I
130
H
J
115
C, I
Total
720
a. Draw a precedence diagram.
b. What is the desired cycle time?
c. What is the theoretical minimum number of work stations?
d. Balance the line, and show your solutions on your precedence diagram.
e. What is the efficiency of the solution found?
(Chapter 7) [20 marks]

Solution
a. Precedence Diagram
D
25
B
80
A
40

E
20

C
30
J
115

F
15
G
120

H
145

I
130

b. Desired Cycle time


Cd = (8 hours x 60 min. x 60 sec.) / 192 units = 150 seconds/unit
c. N = 720 / 150 = 4.8 or 5 stations
d.
Workstation
1
2
3
4
5

Work Elements
A, B, D
G, E
H
I, F
C, J

Cumulative Time
145
140
145
145
145

D
25
B
80
A
40

E
20

C
30
J
115

F
15
G
120

H
145

I
130

Ca = 145 seconds
e. Efficiency = 720 / (5 x 145) = 0.9931 = 99.31%

Idle Time
5
10
5
5
5

ID ________________________ Name ____________________________ Page 4 of 9


Problem 3: (Chapter 9)

The following table shows all activities required to complete a project.


Task Time (weeks)
Precedence Task(s)
A
12
B
10
C
3
A, B
D
23
C
E
17
C
F
8
E
G
12
C
H
8
G
I
5
D, H, F
8.1. Draw the network and calculate ES, LS, EF, and LF.
8.2. Find the total number of paths in this project network.
8.3. What is the project completion time?
8.4. Identify the critical activities.
8.5. Identify all jobs that have slack and also show the number of slack of each job.
8.1.
D
23

A
12

12

12
C
3

B
10

10

12

12

15

12

15

E
17

G
12

15

38

17

40

15

32

15

32

15

27

20

32

8.2. There are 6 paths: 1. A-C-D-I, 2. A-C-E-F-I, 3. A-C-G-H-I,


4. B-C-D-I, 5. B-C-E-F-I, 6. B-C-G-H-I
8.3. 45 weeks
8.4. A, C, E, F, I
8.5. B =2, D=2, G =5, H=5

F
8

H
8

32

40

32

40

27

35

32

40

I
5

40

45

40

45

ID ________________________ Name ____________________________ Page 5 of 9


Problem 4:
Fill in the forecasted data of each period.
Month
Sales
By 3-month average
By 4-month average
1
10
2
12
3
14
4
16
12.0
5
14
14.0
13.0
6
15
14.7
14.0
7
13
15.0
14.8
8
15
14.0
14.5
9
14
14.3
14.3
10
19
14.0
14.3
11
20
16.0
15.3
12
12
17.7
17.0
Which method gives the superior forecasted data?
Solution
Calculate Mean Absolute Deviation (MAD)
MAD of 3MAD of 4-month
By 4Month
Sales
By 3month average
average
month
month
(5) = |(2)-(3)|
(6) = |(2)-(4)|
average
(1)
(2)
average
(4)
(3)
1
10
2
12
3
14
4
16
12.0
4.0
5
14
14.0
13.0
0.0
1.0
6
15
14.7
14.0
0.3
1.0
7
13
15.0
14.8
2.0
1.8
8
15
14.0
14.5
1.0
0.5
9
14
14.3
14.3
0.3
0.3
10
19
14.0
14.3
5.0
4.8
11
20
16.0
15.3
4.0
4.8
12
12
17.7
17.0
5.7
5.0
Mean
2.48
2.38
Since the MAD of 4-month average is less than those of the 3-month, the 4-month average is a better
choice.

ID ________________________ Name ____________________________ Page 6 of 9


Problem 5:

Mamas Stuffin is a popular food item during the fall and winter months, but it is marginal in the
spring and summer. Use the following demand forecasts and costs to determine which of the
following production planning strategies is best for Mamas Stuffin:
a. Level production over the 12 months
b. Produce to meet demand each month. Absorb variations in demand by changing the
size of the workforce.
c. Keep the workforce at its current level. Supplement with overtime and subcontracting
if necessary.
d. What is the cheapest plan?
Month
Demand forecast (pallet)
1
2000
2
1000
3
1000
4
1000
5
1000
6
1500
7
2500
8
3000
9
9000
10
7000
11
4000
12
3000
Overtime capacity per month = regular production
Subcontracting capacity per month = unlimited
Regular production cost = $30 per pallet
Overtime production cost = $40 per pallet
Subcontracting cost = $50 per pallet
Holding cost = $2 per pallet
Beginning workforce = 10 workers
Production rate = 200 pallets per worker per month
Hiring cost = $5000 per worker
Firing cost = $8000 per worker

Solution
a. Total yearly demand = 36,000 pallets, therefore, average demand = 36,000 / 12 = 3,000
Total worker needed = 3,000 / 200 = 15 workers. Need more = 15 10 = 5 workers
Month Demand forecast (pallet)
Production Plan
Inventory
1
2,000
3,000
1,000
2
1,000
3,000
3,000
3
1,000
3,000
5,000
4
1,000
3,000
7,000
5
1,000
3,000
9,000
6
1,500
3,000
10,500
7
2,500
3,000
11,000
8
3,000
3,000
11,000
9
9,000
3,000
5,000
10
7,000
3,000
1,000
11
4,000
3,000
0
12
3,000
3,000
0
Total
36,000
36,000
63,500
Total cost = (36,000 x $30) + (63,500 x $2) + (5 x $5,000) = $1,232,000

ID ________________________ Name ____________________________ Page 7 of 9


b.
Month
1
2
3
4
5
6
7
8
9
10
11
12
Total

Demand forecast
(pallet)
2,000
1,000
1,000
1,000
1,000
1,500
2,500
3,000
9,000
7,000
4,000
3,000
36,000

Production Plan

Workers
Needed

Workers
Hired

Workers
Fired

2,000
1,000
1,000
1,000
1,000
1,500
2,500
3,000
9,000
7,000
4,000
3,000
36,000

10
5
5
5
5
8
13
15
45
35
20
15

0
0
0
0
0
3
5
2
30
0
0
0

0
5
0
0
0
0
0
0
0
10
15
5

181

40

35

Total cost = (36,000 x $30) + (40 x $5,000) + (35 x $8,000) = $1,560,000


c. Regular capacity = 2000 pallets
Overtime = 2000 pallets
Month Demand forecast Production Plan
(pallet)
1
2,000
2000
2
1,000
1,000
3
1,000
1,000
4
1,000
1,000
5
1,000
1,000
6
1,500
1,500
7
2,500
2,500
8
3,000
3,000
9
9,000
9,000
10
7,000
7,000
11
4,000
4,000
12
3,000
3,000
Total
36,000

Regular
Capacity
2,000
1,000
1,000
1,000
1,000
1,500
2,000
2,000
2,000
2,000
2,000
2,000
19,500

Overtime

500
1,000
2,000
2,000
2,000
1,000
8,500

Total cost = (19,500 x $30) + (8,500 x $40) + (8,000 x $50) = $1,325,000


d. Plan A is the cheapest.

Subcontract

5,000
3,000

8,000

ID ________________________ Name ____________________________ Page 8 of 9


Problem 6:

The James-75 Carpet Discount Store in Banglampoo stocks carpet in its warehouse and sells it
through an adjoining showroom. The store keeps several brand and styles of carpet in stock;
however, its biggest seller is Super Shag carpet. The store wants to determine the optimal order
size and total inventory cost for this brand of carpet given an estimated annual demand of 10,000
yards of carpet, an annual carrying cost of $0.75 per yard, and an ordering cost of $150. The store
would also like to know the time between orders given that the store opens 300 days a year.
(Hint: find EOQ)

Demand =
Carrying cost =
Order cost =

10000
0.75
150

Solution
2C o D
2(10000)(150)
=
= 2000 yards
Cc
0.75
Time Between Order = (2000/10000) x 300 = 60 (working) days
(The company has to order every time 2000 yards at every 60 (working) days.)
Qopt =

ID ________________________ Name ____________________________ Page 9 of 9


Problem 7:

We have seen the role of information and information technology, the supply chain
management, and lean manufacturing, for Toyota and 7/11 cases. Please discuss in detail
how to utilize the IT, Supply Chain Management concept, and Lean Manufacturing concept
in MK restaurant?
Problem 8:

The chase strategy and the level strategy represent two extremes in aggregate planning.
Describe the type of environment in which each would work best.

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