Homework Data Question 3 Auto Pistons Question 4 Data Entry
Homeworkdataquestion 3 Auto Pistonsquestion 4 Data Entrydaymean Mm
HomeworkData Question 3: Auto Pistons Question 4: Data Entry Day Mean (mm) Range (mm) Sample No. No. Defective Sample No. No. Defective Sample No. No. Defective.9 4..2 4..6 4..5 5..6 4. Assignment 2: Due Sept 20th, 2016 (beginning of class) MGT 303 For your convenience, an excel spreadsheet is posted together with this homework on blackboard. You can find the data you need and do calculations in excel to answer Questions 4 and 5. 1. Metters Cabinets, Inc., needs to choose a production method for its new office shelf. It could implement either a product focus process or repetitive process. To help accomplish this, the firm has gathered the following cost data: Process Type Annual Fixed Cost Variable Cost (per unit) Labor Material Product Focus $50,000 $10 $10 Repetitive Focus $25,000 $18 $12 Compare these two process types using a crossover chart. Find the production volume that Metters Cabinets is indifferent between the two process strategies. 2. Wally’s Widget Warehouse takes orders from 7 AM to 7 PM. The manager wants to analyze the process and has provided the process flow diagram shown below (with capacity rates at each step). There are three steps required to ship a customer order. The first step is to take the order from a customer (one customer places one order). The second step is to pick the order for the customer, and then they have to pack the order ready for shipping. There are currently only three workers taking care of these three steps; one for each. Wally wants to figure out the following: a. How many customer orders at most can this process deal with per day assuming a 12-hour working time? b. What is the process time of the order picker? c. If orders arrive every 1.5 minutes, what is the process utilization? (Hint: how many orders have arrived in one hour as the input?) d. Wally is not satisfied with the number you give in (a); he wants the process capacity to become larger. There is a worker recently hired. Who do you want the new worker to help? Order taker, picker, or packer? Why? e. Following question (d). Assume that the new worker can help double the capacity rate at the step he is sent to. Would hiring this new worker double the number you give in question (a)? Why? 3. Consider the example we did in class: Suppose that each output unit generates $10. An extra resource (1, 2, or 3) can be leased for $14 per hour. If you have a budget of $28 (that is, you can lease at most two resources), should you go for it? If yes, which one/ones should you lease? And how much is your net hourly gain if you are about to lease? 4. Auto pistons at the South Florida plant are produced in a forging process, and the diameter is a critical factor that must be controlled. From sample sizes of 10 pistons produced each day, the mean and the range of this diameter have been as shown in the spreadsheet. Hint: you may need Table S6.1 in the textbook. a. If the population (process) standard deviation is 0.5, what are the Upper Control Limit and Lower Control Limit for sample means using 3-sigma? b. Without the knowledge of the population standard deviation, find the Upper Control Limit and Lower Control Limit of sample means using 3-sigma. c. Find the Upper Control Limit and Lower Control Limit for the range using 3-sigma. 5. Five data entry operators work at the data processing department of the Georgia Bank. Each day for 30 days, the number of defective records in a sample of 250 records typed by these operators has been noted, as shown in the spreadsheet. a. Establish the 99.73% upper and lower control limits for a p-chart. b. When we apply the control limits, what would we do if we saw a day’s sample (250 records) has 21 defective records? Note: Show all your works Total Marks: 5*10=50
Paper For Above instruction
Metters Cabinets, Inc. faces a critical decision in selecting an optimal production process for its new office shelves. The company can choose between a product focus process and a repetitive process. To inform this decision, the firm has gathered relevant cost data: the product focus process involves a fixed annual cost of $50,000 with variable costs of $10 per unit for both labor and material; alternatively, the repetitive focus process has a fixed annual cost of $25,000 with variable costs of $18 for labor and $12 for materials per unit. The comparative analysis using a crossover chart helps identify the production volume where both processes incur the same total cost, indicating the point of indifference.
Similarly, Wally’s Widget Warehouse aims to optimize its order fulfillment process. Operational capacity considerations, process times, and resource allocation are analyzed to improve throughput. The warehouse operates from 7 AM to 7 PM, providing a 12-hour window. The existing process involves three steps: taking orders, picking, and packing. With three workers—each dedicated to a step—the maximum order capacity depends on the step with the lowest capacity, the bottleneck.
Calculating the maximum orders per day in this setup involves understanding each step’s capacity rate. For example, if the bottleneck step processes orders at a rate of one per a specific time frame, this determines the total possible orders. The process time of the order picker can be derived from capacity rates. Additionally, the utilization rate is calculated based on arrival rates of orders every 1.5 minutes, translating into throughput efficiency.
Furthermore, the analysis considers resource allocation for capacity expansion. The decision of whom to assign a new worker is crucial — whether to assist the order taker, picker, or packer — based on process bottlenecks and potential impacts. Doubling the capacity at a specific step with this new worker tests strategic improvements.
The problem then shifts to a resource leasing scenario: leasing extra resources at a cost of $14 per hour to generate additional revenue of $10 per output unit. The decision involves determining whether leasing additional resources is profitable within a $28 budget — specifically, if leasing one or two resources yields net gains.
In manufacturing quality control, auto pistons produced at a South Florida plant require precise diameter control. Each day's sample includes 10 pistons, with known mean and range values. The control limits are computed using either known population variance (0.5) or sample data to assess process stability. Upper and lower control limits for means and ranges are calculated using 3-sigma control chart methods.
Finally, the quality monitoring extends to the data entry department of the Georgia Bank, where the defect rate is tracked over 30 days. The construction of a p-chart with 99.73% confidence intervals involves establishing upper and lower control limits based on the proportion of defective records. When a specific day's defect count exceeds the control limit, appropriate process adjustments are recommended to maintain quality standards.
Overall, this set of exercises combines cost analysis, process capacity planning, quality control, and resource management, demonstrating key principles in operations management and process improvement.