Reference no: EM132413749
BUS 241 Operations Management Assignment - Department of Business Administration - Jubail University College, Saudi Arabia
Calculations: Answer all the questions
Question 1: Shoeless Joe is a specialty retailer that is deciding where to locate a new facility. The annual fixed and variable costs for each possible site have been estimated as follows:
|
Location
|
Fixed cost (in $)
|
Variable cost (in $)
|
|
A
|
72000
|
1.5
|
|
B
|
35000
|
4.0
|
|
C
|
25000
|
8.0
|
|
D
|
50000
|
5.0
|
If demand is expected to be 2500 units, which location is best and why?
Graphically determine the range of units for each of the location (use excel to draw the graph).
Question 2: A manager wants to assign tasks to workstations as efficiently as possible and achieve an hourly output of 33? units. Assume the shop works a 60-minute hour. Assign the tasks shown in the accompanying precedence diagram (times are in minutes) to workstations:
a. Compute the cycle time (in minutes) to achieve the desired output rate.
b. What is the theoretical minimum number of stations?
c. Assign tasks to workstations as per theoretical minimum number of stations; determine the idle time and efficiency in percentage.
d. Assign tasks to three workstations; determine the idle time and efficiency in percentage.
e. Assign tasks equally among two workstations; determine the idle time and efficiency in percentage.
f. Based on the efficiency among option c, d, and e which option will you choose.
Question 3: A time study was conducted on a job that contains four elements. The observed times and performance ratings for six cycles are shown in the following table.
|
Element
|
Performance Rating
|
Observation (minutes per cycle)
|
|
1
|
2
|
3
|
4
|
5
|
|
1
|
85%
|
1.25
|
1.21
|
1.10
|
1.15
|
1.23
|
|
2
|
95%
|
0.85
|
0.5*
|
0.87
|
0.83
|
0.89
|
|
3
|
110%
|
1.50
|
1.43
|
1.47
|
1.42
|
1.41
|
|
4
|
105%
|
2.32
|
2.27
|
2.35
|
3.2*
|
2.25
|
|
5
|
90%
|
2
|
3
|
1
|
3
|
2
|
*Disregard these observations.
a. Determine the standard time for this job assuming rest and personal allowance factor of 5% and 8% respectively.
b. What is the standard quantity of output in an hour?
c. Calculated the expected hourly output at 105% of standard.
Note: Write the formula for every question depending upon the requirement.