INTRODUCTION TO OPERATIONS & SUPPLY CHAIN MANAGEMENT 2E PROBLEMS SOLUTIONS

P. 77 QUESTIONS 1 2 3 & P. 208 QUESTIONS 2 3 4 8

SOLUTIONS PROVIDED BY : Esta (Nadine) Noer , Miko Vargas, Pricsillia Mailoa, Shinta Kusumasari

CHAPTER 3 PROBLEMS P 77 QUESTION 1

A.

Productivity is a ratio measure, defined as follows: Productivity= outputs/inputs So, Marcis & Jacks productivity are:
Marcis productivity = 20 pages / 15 hours = 1.33 pages per hour Jacks productivity = 15 pages / 8 hours = 1.87 pages per hour

The output to calculate each of Marcis and Jacks productivity is the number of pages they produced for philosophy class report whilst the input to calculate each of Marcis and Jacks productivity is the number of hours they spent on researching and writing. This is a single-factor productivity measure because it measures output levels relative to a single input. There is one-to-one relationship exists between the output and input that can be managed, which fit the calculation above that measures the number of pages produced per research and writing hour.

B.

The productivity measure used above determines only the speed of the students in researching and writing the report. But this limits further analysis of what is important. Generally, instructors prioritize other performance dimensions relative to the productivity when evaluating written reports such as the quality of the given report, taking into consideration of the variables spelling, grammar, relevance and conformity to the predetermined standards. These factors cannot be utilized into the productivity equation as there is an indirect relationship between the factors and time used. Hence, another measure that the instructor

could use is benchmarking comparing each report with an alternate and superior report and determining if they met the given standards.

QUESTION 2
WEEK 1 2 3 4 5 6 OUTPUT 1,850 1,362 2,122 2,638 2,599 2,867 LABOR HOURS 200 150 150 250 250 300 LABOR PRODUCTIVITY
9.25 units/hour 9.08 units/hour 14.15 units/hour 10.55 units/hour 10.40 units/hour 9.56 units/hour

Average Labor Productivity = Total Labor Productivity/ # of Weeks = 62.99/ 6 = 10.5 unit/hour The rule of thumb regarding productivity assuming regular circumstances apply is that if there is an increase in input then there should also be an increase in output, vice versa. In week 1, 9.25 units are being produced per hour with 200 labor hours. When the hours worked in week 2 dropped by 50 hours, the output decreased as well. But in week 3, when the labor hours were exactly the same as the previous week, the labor productivity spiked to 14.15 units per hour. This is very unusual, given that the labor productivity decreased significantly the week after, even when the labor hours increased up to 300 hours. What made it more unusual is that, in week 2 compared with week 3, with the same 150 labor hours, the output variance is a staggering 760 units.

QUESTION 3
A. Year 1999 2000 2001 2002 2003 2004 Total Sales (output) $4,790,000 5,750,000 6,900,000 8,280,000 9,930,000 11,920,000 Phone Rep costs (input) $200,000 210,000 221,000 230,000 245,000 255,000 Productivity 23.95 27.38 31.22 36 40.53 46.75

Based on the results above, it can be concluded for the past 6 years from 1999 to 2004 that Phone rep costs of Smarmy Sales, Inc. have increased each year for approximately $10,000 but no more than $15,000. Thus, the more money they expended on the phone rep costs the more productive they are. Despite that, the total sales they earned have also increased.

B. Year 1999 2000 2001 2002 2003 2004 Total Sales (output) 4,790,000 5,750,000 6,900,000 8,280,000 9,930,000 11,920,000 Web site costs (input) 50,000 65,000 85,000 110,000 145,000 190,000 Productivity 95.8 88.46 81.17 75.27 68.48 62.73

Differing from the previous data that used phone rep costs, this new data used web site costs as the inputs of productivity measurement. The web site costs of Smarmy Sales, Inc. have increased per year but not as consistently as phone rep costs. As web site costs increased the productivity decreased, even though total sales also increased.

C.

Although, those two data show that Smarmy spent more money on both phone rep costs and web site costs for these past six years, but the results are so much different. Smarmy was more productive when the phone rep costs increased, while Smarmy was less productive as the web site costs increased. Using those single-productivity measures Smarmy does not know how productive they really are when using each, phone rep and web site. Since the output used in this example is the total sales, not yet divided how much from phone rep and how much from web site. Hence, the limitation to the single factor productivity measure is that it is assumed that there is only one direct relationship between the output and input that can be managed, disregarding other factors that may have significant effects.

D. Year 1999 2000 2001 2002 2003 2004 Total Sales 4,790,000 5,750,000 6,900,000 8,280,000 9,930,000 11,920,000 (Phone Rep + Web site costs) 250,000 275,000 306,000 340,000 390,000 445,000 Productivity 19.16 20.91 22.55 24.35 25.46 26.79

Since Smarmy Sales, Inc. used two ways to sell their herbal remedies through its web site and phone reps, the costs of those two could be added as sales costs to better measure their productivity level. Therefore, using phone rep plus web site costs as the inputs could possibly be a better indicator to calculate the productivity of Smarmy related to sales costs.

CHAPTER 7 PROBLEMS P 208 QUESTION 2

Idle Time (IT) = Wactual x CT Time required for task IT = (4 X 50 ) 170 =30 seconds Percent Idle Time (PI) = 100% (IT/ WactualCT) PI = 100% (30/200) = 15% Efficiency Delay (ED) = 100% - PI ED = 100% - 15% = 85%

QUESTION 3 Takt time sets the maximum allowable cycle time for a line.
Takt Time = Available production time/ required output rate = 28,800 seconds/ 50 coolers = 576 seconds per cooler Maximum output per day = 28,800 seconds/ 400* = 72 coolers Since the longest individual task taking 50 seconds, we assume that Polar containers has 8 workstations (360/50 = 7.2 ~ 8). So, the time for the production line is the maximum amount of time spent in any one workstation times the total workstations = 50*8 From the calculation above we can conclude, if Polar Containers like to set up a line capable of producing 50 coolers per eight-hour day means they worked inefficiently. They predict the time above the actual/standard time, which is not effective considering the time itself as well as the cost. Based on the calculation, the maximum output per day is 72 coolers.

QUESTION 4
TASK A B C D E F G H I J K L TOTAL TIME (MINUTES) 2.9 0.2 0.25 0.4 1.7 0.1 0.7 1.7 1.2 2.3 2.7 1.5 15.65 IMMEDIATE PREDECESSOR NONE NONE AB AB C CD D EFG H I I JK

A.

Precedence Diagram LightEdge Technologies

The theoretical minimum number of workstations is as follows: Wmin = time required for task/takt time Wmin = 15.65/ 4 = 3.91 or 4 workstations

B. WORKSTATION 1 Task A Task B Task C TOTAL WORKSTATION 2 Task D Task E Task F Task G TOTAL WORKSTATION 4 Task J TOTAL

2.9 0.2 0.25 3.35

0.4 1.7 0.1 0.7 2.9

WORKSTATION 3 Task H Task I TOTAL WORKSTATION 5 Task K TOTAL

1.7 1.2 2.9

2.3 2.3

2.7 2.7

WORKSTATION 6 Task L TOTAL

1.5 1.5

C.

Despite the minimum of 4 workstations, due to the takt time of 4 minutes and a rather rigid business process, an additional 2 workstations was constructed. In addition, Task D (initially put in workstation 1) was moved to workstation 2 to decrease idle time thus consequently improving efficiency. Wactual = 6 workstations Cycle Time (CT) = 3.35 Idle Time (IT) = Wactual x CT Time required for task IT = ( 6 x 3.35 ) 15.65 = 4.45 minutes

QUESTION 8
Initial Layout of Hardin Company Facility & Area Distances (in meters):
AREA A B C D A 20 40 45 B C D

45 40

20

Numbers of Daily Interdepartmental Trips:

DEPARTMENT 1 2 3 4 1 10 5 30 2 3 4

60 0.4

50

Ranked Numbers of Daily Interdepartmental Trips:

DEPARTMENTS 32 43 41 21 31 42 AVERAGE TRIPS PER DAY 60 50 30 10 5 0.4

Total Distance Traveled per day, Solution 1:

INTERDEPARTMENTAL TRAVELS 32 43 41 21 31 42 TOTAL DISTANCE TRAVELLED DISTANCE TRAVEL PER DAY (METERS) 60*20 = 1200 50*40 = 2000 30*20 = 600 10*40 = 400 5*45 = 225 0.4*45 = 18 4,443 METERS

A-1

B-4

C-2

D-3

Total Distance Traveled per day, Solution 2:

INTERDEPARTMENTAL TRAVELS 32 43 41 21 31 42 TOTAL DISTANCE TRAVELLED DISTANCE TRAVEL PER DAY (METERS) 60*40 = 2400 50*20 = 1000 30*40 = 1200 10*20 = 200 5*45 = 225 0.4*45 = 18 5,025 METERS

A-3

B-4

C-2

D-1

Total Distance Traveled per day, Solution 3:

INTERDEPARTMENTAL TRAVELS 32 43 41 21 31 42 TOTAL DISTANCE TRAVELLED DISTANCE TRAVEL PER DAY (METERS) 60*45=2700 50*40 = 2000 30*45 = 1350 10*40 = 400 5*20= 100 0.4*20 =8 6558 METERS

A-4

B-2

C-3

D-1

Total Distance Traveled per day, Solution 4:

INTERDEPARTMENTAL TRAVELS 32 43 41 21 31 42 TOTAL DISTANCE TRAVELLED DISTANCE TRAVEL PER DAY (METERS) 60*20 = 1200 50*45 =2250 30*20 = 600 10*45 = 450 5*40 = 200 0.4*40 = 16 4716 METERS

A-1

B-4

C-3

D-2

After evaluating the solutions above, by multiplying the interdepartmental travels and distance travel per day we can conclude that the solution 1 is the best alternative compare to the others. The solution 1 can saved 273 meters compare to the second best solutions. Since department 3 has more interaction with department 2 than department 4 and department 2 has more interaction with department 3 than department 4, department 3 should be placed closest to department 2.