THE UNIVERSITY OF THE WEST INDIES EXAMINATION OF Summer 2003 Code and Name of Course: Introduction to Production and Operations MS29P Paper: BSc. Date and Time: Wednesday July 23,2003 Duration: Two Hours 9:00 - 11:00 a.m INSTRUCTIONS/NOTES TO CANDIDATES 1. Non-programmable calculators are allowed 2. This paper has 5 questions and 8 pages. 3. Do any three questions (please show all workings to support your answers where necessary). 4. The last page of this paper has formulae to help you with some of the quantitative problems 5. You are also provided with the following table, which you may need depending on your choice of questions: (@) —_Atable of learning curve coefficients © The University ofthe West Indies Course Code 2003.....1 87.144?Ques: (1) 1(a) What is reorder point? Define service level. List four cases of safety stock determination. (5 marks) 1(b) What are the four types of inventory? Provide an example of each. What are the assumptions of the E0Q model? (6 marks) Plumbing.COM a distributor of valves for commercial use has offered quantity discounts to its customer for a specialty valve No. 642 in a bid to break into the home valve market. The discount follows the schedule below: Order Unit Cost Quantity, Q T to 398 $2.20 400 to 639 2.00 700or more T.80 One of its customers Joe Plummer forecasted that the demand for this specialty valve per annum is 10,000, the cost to place an order via the Net is $ 5.50 per order, and the cost to carry an item in stock is 20% of the cost of the item per year. Based on the information do the following: 1(c) Sketch and label a total cost curve for valve No. 642 based on the above schedule. (4 marks) 1(d) Advise Mr. Plummer on the quantity to order that will minimize the total cost of carrying inventory per annum. What is the estimated total cost to carry this inventory, inclusive of the cost the item? (10 marks) © The University of the West Indies Course CodeQues: (2) 2(a) What is the purpose of aggregate planning? Explain the fundamental difference between the “capacity options” and the “demand options” of aggregate planning strategies. (6 marks) 2(b) How does aggregate planning in services differ from aggregate Planning in manufacturing? (5 marks) 2(c) What three functions are typically performed by a production control department? List three ways in which the problem of scheduling service systems differs from scheduling manufacturing systems. (6 marks) 20a) At the University Hospital, nurses beginning a new shift report to a central area to receive their primary patient assignments. Not every nurse is equally efficient with particular kinds of patients. Given the following patient roster, and time estimates (see table below), assign nurses to patients to optimize efficiency. Also, determine how long it will take for the nurses to complete their routine tasks on this shift. (8 marks) Tine required in hours to complete routine tasks (hours) Patient | Nurse 1 | Nurse 2 | Nurse 3 | Nurse 4 Alan 5 a 3 Brian z T 3 2 Chris = 4 z z [Dave 4 3 z a 3 © The University of the West Indies Course CodeQues.3 3(a) Why do operations managers require labour standards? State the three factors that influence the adequate sample size in time studies. (5 marks) 3(b) What are predetermined time standards? What are the advantages of work sampling over time-study methods? (5 marks) 3c) How does labour specialization assist in reducing labour costs? (3 marks) 3(a) In a preliminary work sample of an operation, out of 50 observations the operator was observed idle in 5. What sample size is required for a work sampling study if the desired confidence level is 98% and the desired accuracy level is 58? (6 marks) 3(e) A Lab-tech in DOMS laboratory has an actual cycle time of 10 minutes on her tasks. The performance rating of the worker timed was estimated at 110%. Practice in this department is to permit a total of 15% for allowances. Find the normal time for the operation. Compute the standard time for the operation. (6 marks) © The University of the West Indies Course Code 2008... ORL.a(a) What is the basic premise underlying the learning curve? when comparing a 70% and a 90% learning curve, which one results in a more rapid reduction in labour requirements? Why? (7 marks) 4(b) A certain product under development took 200 hours for the production of its second (2™) unit and 180 for the production of the fourth (4") unit. What is the learning rate? How much time did the first unit take? How much time did the production of the 10™ unit take? How long will it take to produce 35 units of this product? (8 marks) 4(e) The manager of Life of Mona carefully examined the organization's database and has determined the daily requirements for part time clerks at the Liguanea Branch. This branch operates seven days per week and the daily part time staffing requirements are FT S [sa 3{5{7 [7/273 Day MT] W [th Requirements | 6 Find the minimum number of workers that must be hired. Prepare a workforce schedule for these individual so that each will have two consecutive days off per week and all staffing requirements will be satisfied. Give preference to the pair Saturday — Sunday in case of a tie. (10 marks) © The University of the West Indies Course CodeQues S(a) The Department of Management Studies is experiencing difficulties with frequent breakdowns of its photocopying machines. The new Head of Department Dr. Anne Crick in her plans for the coming academic year is considering leasing one of two machines to supplement those already in the department. There is a regular copier with a lease xate of $8 per hour and it takes an employee an average of 6 minutes (exponentially distributed) to complete a job. A deluxe high speed copier leases for $16 per hour and requires an average of 3 minutes to complete a copying job. Students arrive at the copy room at the rate of seven (7) per hour (Poisson distributed) and the student time is valued at $10 per hour. Advise her which copier the department should lease. Please show all calculations to support your decision. (15 marks) S(b) Its summer and students are finding it difficult to get a summer job. A group student decided to form a company. This company will carry out painting in the Hope Pasture and Mona areas. They have just landed five contracts involving houses that differ in size and Painting requirements. Each house must be prepped first before painting. In what sequence should the houses be worked on in order to finish all five houses as soon as possible? Chart out the sequence on Gantt charts and determine the time to complete all five jobs. (10 marks) © The University of the West Indies ‘Course Code 2003 ...f ILE,2u-a - (2) W, =H“ ® 7 2u(u-A) @ metas OADM aye (® 1,=aR, 6) m=", © 1,=4m, z Note: Formulae (4), (5), and (6) apply regardless of whether the problem is single server (whether exponential or constant service times) or multiple servers 0 o- EFE | (8) TC= S424 PD or pot PEO ae po Q 2p 0) n=-ZPd=P) roe (10) Ty= (7) Where: b = log(L)+og(2) and L = the learning rate bserved Time* PR 11) s7-= Observed Time* PR ay (-4F) (12) X= target value, X = expected value, = standard deviation Desired Learning Curve Values of b Confidence Learning Rate : (%) b % Z Values 70 0.515 90 1.65 75 -0.415 95 1.96 30 -0.322 95.45 2.00 85 0.234 99 2.58 90 -0.152 99.73 3.00 © The University of the West Indies ‘Course Code 2008... A OTL LYE.TABLE E.3 m Loorning-Curve Coofficients, where Coeticiont = N(29 aleamingrt/tog 2) 70% 75% 30% 35% 0% On Numer | Uw Ur Tom | uw = Tome | Un = Tora, | Un Toran (OTe | Toe Te Toe | toe toe | toe Twe_ | Time Time 1 1.000 1000 100 | 1.000 1000 | 1.000 1.000 | 1.000 1.000 2 700 7301780 | 8001800 | 50 1850 | 900 1.900. 3 368 sa 2384 | ror son | 32603 | eas TH, 4 490 sa 2946 | oo = 3192 | 233345 | 8103556 5 437 sis 3459 | 596 3.738 | eas 401 | 783339 6 398 453934 | 5624299 | 6s7 4688 | 702101 7 367 46 4380 | 54 ase | gas 5x2 | tae Stas 8 343, 42 48m | 52 5346 | 64 5936 | 29574 9 33 42 5204 | 493, 5azp | so7 gs | 7167250 10 306 3855589 | 4773s | 58376 | 7087904 u 21 37 5958 | 462° 677 | 30 7686 | 605689 2 218 3763s | 4497277 | segue | 68s 9374 B 261 35 6660 | 43g 7665 | a8 8792 | oto 0s 7 257 34 69 | 428 tom | 539 an | 60 tom2t Is 248 35739 | ais ast | 530 tet | 66311 384 16 240 36705 | 410 8920 | 522 toes | 86 tu 233, 30 794 | aor 9322 | 515.8 | 650 12.600 8 226 sor 8245 | 39¢ 716 | 508 taas | oe) 13 334 9 220 295 8540 | 388 tote | 501i go7 | a9 974 2 216 2888828 | a1 oaes | 49s zon | sue 1.608 2 191 26 © 0.11 | 35512309 | ater | 673 30 178 au ais | 335° 420 | 4500 | 59620227 35 160 29 2618 | 318 seas | 4349294 | 583 23.666 0 150 26 i373 | 30s ras | at ataas | ss 503, “6 141 205 14773 | 208 tee | sto 23.500 | 561 29.366, 0 14 sign 1s776_ | aaa zoe | 0 assis | ss ae 8 Course Code © The University of the West Indies