OPERATION MANAGEMENT
2nd Edition
ISBN: 9781260242423
Author: CACHON
Publisher: MCG
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Chapter 7, Problem 7CQ
Summary Introduction
To determine: If the given statement is true or false.
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Process time is part of cycle time. The process time of a business process refers to:
a. alWways is the largest part of cycle time.
b. timMe a customer spends waiting in a queue (e.g., time customer spends waiting in a drive-thru line)
c. is ofFten considered to be value-added time to the customer.
d. timMe from beginning to completion of the business process.
A graphics reproduction i rm has four units of equipment that are automatic but occasionallybecome inoperative because of the need for supplies, maintenance, or repair. Eachunit requires service roughly twice each hour, or, more precisely, each unit of equipmentruns an average of 30 minutes before needing service. Service times vary widely, rangingfrom a simple service (such as pressing a restart switch or repositioning paper) to moreinvolved equipment disassembly. The average service time, however, is i ve minutes.Equipment downtime results in a loss of $20 per hour. The one equipment attendant ispaid $6 per hour.Using i nite queuing analysis, answer the following questions:a. What is the average number of units in line?b. What is the average number of units still in operation?c. What is the average number of units being serviced?d. The i rm is considering adding another attendant at the same $6 rate. Should the i rmdo it?
A lab provides ultrasound service to patients. The service process consists of two
steps:
1. Registration. Performed by a receptionist (Salary rate = $25/hr; Process time
= 6 minutes/patient)
2. Ultrasound scan. Performed by a technician (Salary rate = $30/hr; Process
time = 20 minutes/patient)
Note that the ultrasound images need to be read by radiologists, but we assume that
they have an ample capacity and thus will not model the role in the service process.
Currently, the lab has 2 receptionists and 3 technicians. The manager anticipates
demand to grow to 14 patients/hr in the near future. Thus, he plans to hire more
receptionists and/or technicians to increase the service capacity to at least 14
patients/hr. What would be the extra payroll cost (in dollars per hr)?
Chapter 7 Solutions
OPERATION MANAGEMENT
Ch. 7 - Prob. 1CQCh. 7 - Prob. 2CQCh. 7 - Prob. 3CQCh. 7 - Prob. 4CQCh. 7 - Prob. 5CQCh. 7 - Prob. 6CQCh. 7 - Prob. 7CQCh. 7 - Prob. 8CQCh. 7 - Prob. 9CQCh. 7 - Prob. 10CQ
Ch. 7 - Prob. 11CQCh. 7 - Prob. 12CQCh. 7 - Prob. 13CQCh. 7 - Prob. 14CQCh. 7 - Prob. 1PACh. 7 - Prob. 2PACh. 7 - Prob. 3PACh. 7 - Prob. 4PACh. 7 - Prob. 5PACh. 7 - Sarahs Organic Soap Company makes four kinds of...Ch. 7 - Prob. 7PACh. 7 - Prob. 8PACh. 7 - Bruno Fruscalzo decided to set up a small...Ch. 7 - Prob. 10PACh. 7 - Prob. 11PACh. 7 - Prob. 1CCh. 7 - Prob. 2CCh. 7 - Prob. 3CCh. 7 - Prob. 4C
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- . A resource has an implied utilization of 150 percent. This is the highest implied utilization in the process. This means that the resource is the bottleneck. True or false?a. Trueb. Falsearrow_forwardA copy machine is available 24 hours a day. On a typical day, the machine produces 100 jobs. Each job takes about 3 minutes on the machine, 2 minutes of which is processing time and 1 minute is setup time (logging in, defining the job). About 20 Percent of the jobs need to be reworked, in which case the setup time and the processing time have to be repeated. The remainder of the time, the equipment is idle. What is the OEE of the equipment? answer:______percentarrow_forwardPerformance Evaluation and Risk Aversion Jill Lewis is the office manager of PureBreds Inc.Her office has 30 employees whose collective job is to process applications by dog owners whowant to register their pets with the firm. There is never a shortage of applications waiting to be processed, but random events beyond Lewis’s control (e.g., employees out sick) cause fluctuations inthe number of applications that her office can process. Jill is aware that it is important that the applications be processed quickly and accurately. Alex Zale, the district manager to whom Jill reports,bases his evaluation of Jill on the number of applications that are processed.Required1. If Jill is risk averse, how should Alex compensate her? Why?a. Flat salary.b. Straight commission based on the number of applications processed.c. Flat salary with a bonus based on the number of applications processed.d. Flat salary with a bonus based on the firm’s earnings.2. What is a disadvantage of an evaluation method…arrow_forward
- People are served in a process with two resources. A worker in the first resource serves 28 people per hour and a worker in the second resource serves 14 people per hour. The first resource has 3 workers and the second resource has 5 workers. Demand occurs at the rate 14 people per minute (Instruction Round your answer to one decimal place) What is the implied utilization (%) of the second resource?___________arrow_forwardThe bottleneck resource in a process has the least idle time. True or false?a. Trueb. Falsearrow_forwardIn a multi-station serial process system, the capacity of the system is the equal to the capacity of the station that has the highest capacity among all stations. True Falsearrow_forward
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