practice problems for Process Analysis

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Feb 20, 2024

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P RACTICE PROBLEMS FOR P ROCESS A NALYSIS : S OLUTIONS P ROCESS A NALYSIS These practice problems are intended to help you prepare for the exams. The best way to use these practice problems is to work through them yourself first, without looking at the solutions. You do not need to all these practice problems, it is up to you to determine when you are ready. I recommend reviewing numerical examples that we did in class in addition to these practice problems. The quiz is timed: once you start the quiz, you will have 60 minutes to finish it, so you should not attempt the quiz until you are comfortable with these practice problems. Q UESTION 1 Consider the following simple assembly process: The numbers below each step refer to the time necessary to process one unit of the product at that step. The process is staffed by three operators with one operator assigned to each of the three steps. Assume no setups are required, processing times are constant, and no Work in Process (WIP) is permitted beyond that actually being worked on at each process step (i.e., there are no buffers between process steps). a) What is the Capacity of the process in steady state? b) What is the Direct Labor Utilization of the operator at Step A? c) Each operator receives regular wages of $12/hour for the first 8 hours, and overtime wages of $18/hour for any additional time. Twelve hours per day is the maximum work time permitted. A finished unit sells for $10 while its direct material cost is $6/unit. Does it pay to use overtime under this cost structure (assuming sufficient demand exists)? (You can assume steady state in your analysis, i.e., ignore the startup effects in the first hour.) d) Would you hire a skilled operator whose wage rate were $20/hour (regular time), but could perform Step B at a processing time of 4 minutes/unit? (Assume no overtime. Assume also that, if you hire the skilled operator, you no longer need a regular operator at Step B.) e) Would you hire a skilled operator whose wage rate were $20/hour (regular time), but could perform Step A at a processing time of 2 minutes/unit? (Assume no overtime. Assume also that, if you hire the skilled operator, you no longer need a regular operator at Step A.) P AGE 1
Q UESTION 2 Professors Corbett and Roels are thinking of buying a pizza carry-out shop in West Los Angeles and have asked you to help them evaluate the current operation. The shop, OTM’s Pizza, currently operates in a build-to-order fashion with four employees: an order taker who receives/processes orders and does bookkeeping; a pizza tosser who tosses the pizza shell; a pizza assembler who prepares the pizza shell and customizes the pizza and a chef who supervises the placement of the pizza in the oven. The production process begins when an order is transmitted to a computer in the kitchen. Order processing takes a negligible amount of time. It takes one half of a minute for the pizza assembler to prepare the pizza shell to give to the pizza tosser. The pizza tosser then tosses the shell for two minutes to obtain proper shape and consistency. The tossing operation is highly skilled and can only be performed by the tosser. It then takes one minute for the pizza assembler to customize the pizza by adding the correct sauce and ingredients (e.g., cheese, pepperoni, mushrooms). The secret to OTM’s famous taste is a three-minute wait prior to placing the pizza in the oven. This wait allows the flavors of the ingredients to blend. After this three-minute delay, the chef places the pizza in one of six ovens (with a capacity of one pizza each) for a baking time of ten minutes. a) Draw a process flow chart of the pizza production process. Identify the key resources involved in each task. b) What is the capacity of the current cooking process? Specifically, what is the maximum number of pizzas that OTM’s can produce in the first hour (assuming an empty system at the beginning of the day) and in each subsequent hour? c) Somebody has suggested producing pizza shells for inventory before each day’s hours of operations. That is, the pizza tosser would arrive prior to the business hours and perform all of the work associated with pizza shell production (shell preparation and tossing). These shells would then be available to the assembler for customization during store hours. How would producing pizza shells to inventory change your answer to question (b)? (You can adopt a back-of-the-envelope approach, similar to the one used in class, which may lead to a slightly different answer than a detailed analysis based on a Gantt chart.) d) Profs. Corbett and Roels would like to increase potential demand by offering pizza delivery direct to the customer. Demand in the past has been 20 pizzas per hour, but they are concerned that the current production process will not be able to support this demand increase. What (if any) changes will be needed in the cooking process to support a demand of 40 pizzas/hour (after the first hour startup period)? Assume that pizza shells are made to inventory as indicated in question (c). Q UESTION 3 A five-stage process is depicted below. Each task must be performed in the order given. Assume one employee can only work on one unit at any point in time. A B C D E Employees assigned 1 1 1 1 2 P AGE 2
Task time (or processing time) in seconds 15 30 20 10 45 a) What is the minimal possible throughput time of this process? A) 30 seconds B) 45 seconds C) 97.5 seconds D) 120 seconds E) 165 seconds b) If the process operates at 100% capacity utilization, i.e., the bottleneck operates at 100% capacity utilization, what is the capacity utilization at step E? A) 1 B) more than 0.8 but less than 1 C) more than 0.6 but less than 0.8 D) more than 0.4 but less than 0.6 E) 0.4 or less c) Which of the following alternatives is best in terms of efficiency? A) Add a third worker to E B) Combining tasks A and B into one work station and eliminating one worker C) Combining tasks C and D into one work station and eliminating one worker D) Indifferent between b and c E) Indifferent between a, b, and c d) What is the capacity of the process? A) 100 or more per hour B) more than 75 but less than 100 per hour C) more than 55 but less than 75 per hour D) more than 30 but less than 55 per hour E) 30 or fewer units per hour Q UESTION 4 The New Cola Company utilizes five tasks to produce 12-ounce bottles of soft drinks: Task Dscription Task Time per 100 bottles Number of Machines Cycle Time per 100 bottles 1 Clean bottles 60 seconds 3 2 Fill bottles 40 seconds 1 3 Check fill heights 20 seconds 2 4 Cap bottles 30 seconds 4 5 Package bottles 60 seconds 5 a) What is the cycle time per 100 bottles for bottle packaging? A) 12 seconds B) 20 seconds P AGE 3
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C) 60 seconds D) 210 seconds E) 300 seconds b) What is the cycle time per 100 bottles for the process as a whole? A) 7.5 seconds B) 20 seconds C) 40 seconds D) 60 seconds E) 89.5 seconds c) What is the bottleneck operation in the New Cola Company production process? A) Bottle cleaning B) Bottle filling C) Fill height checking D) Bottle capping E) Bottle packaging d) Assuming management allows no inventories to accumulate between tasks, what is the throughput time for each batch of 100 bottles? A) 89.5 seconds B) 40 seconds C) 60 seconds D) 200 seconds E) none of the above Q UESTION 5 Consider the following process. All Steps (A, B, C, D, and E) are necessary to create each finished unit. Each step employs a single worker. Task times are shown for each step. a) What is the fastest a rush order for one unit can go through the process? b) Working eight hours a day, what is the daily capacity of the process? For the next two problems, consider hiring another worker and duplicating Operation D as shown in the diagram below (no buffers). The two workers work on Successive products; they never work on the same product at the same time. The product still requires the five Steps (A, B, C, D, E). P AGE 4
c) What is the fastest a rush order of one unit can go through the process? d) Working 8 hours a day, what is the daily capacity of the process? P AGE 5
Q UESTION 6 Consider a five-workstation, worker-paced line, with five manual tasks to be performed before the product is completed, as diagrammed below: The times shown are the times, in minutes, that it takes one worker to perform that task for one unit of product. This line is staffed with six workers, two of whom are assigned to Workstation D. For the next question, assume that each of the Tasks A through E are never split among multiple workers. Thus, the two workers doing Task D work on every other unit, each doing all of Task D on the particular unit on which he or she is working. (Assume there is ample equipment so that all workers can perform their tasks). a) What is this line’s capacity in an eight-hour day? time to go from one step to another, and doing their tasks in the allotted time without getting in each other’s way. Assume that ample equipment is available. b) One of the two workers assigned to Task D is equally competent at Task C, and it is decided that this worker will work on both Tasks C and D. (i.e., one worker is assigned to C, one worker is assigned to D, and one worker moves between C and D.) This third worker moves between C and D so as to maximize the output of the process. What is this line’s maximum output rate, in units per eight-hour day? Q UESTION 7 At a local business school, there is a toasted submarine sandwich process that uses a conveyor-fed oven. Zeynep is the sole operator of the sub making process. In the first step of the process, she spends 2 minutes putting various ingredients in the sub. Then, she puts the sub on a conveyor belt and, over a period of 12 minutes, the conveyor moves the sub from the beginning of the oven to the end of the oven, fully toasting it. After the sub comes out of the oven, Zeynep spends 1 minute slicing the sandwich and putting it in a box. At most, 5 subs can fit in the oven at once. The toasting time in the oven does not depend on the number of subs in the oven. a) What is the hourly capacity of this sub making process? b) What is the labor utilization? Suppose another employee is hired to do the slicing and boxing, and Zeynep now only loads the subs with the right ingredients: P AGE 6 2 min/sub (Zeynep) 12 min (oven) 1 min/sub (Zeynep) load ingredien ts slice and box
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c) What is the hourly capacity of this process with the additional employee? P AGE 7