Question: 24SEVEN convenience store, which opened its first

> Bank manager Art Hill wants to determine the percentage of time that tellers are working and idle. He decides to use work sampling, and his initial estimate is that the tellers are idle 15% of the time. How many observations should Hill take to be 95.45%

> The process of replacing an old tire for customers at Tire Tech.company involves five work elements. The table below shows the results of a time study of the process performed by the manager on seven occasions. a) What is the standard time for the proces

> Draw a process chart for receiving an order for a coffee, making the coffee, and handing it to the customer in a café.

> The Dubuque Cement Company packs 80-pound bags of concrete mix. Time-study data for the filling activity are shown in the following table. Because of the high physical demands of the job, the company’s policy is a 23% allowance for work

> Based on a careful work study in the Hofstetter Corp., the results shown in the following table have been observed: a) Compute the normal time for each work element. b) If the allowance for this type of work is 15%, what is the standard time? c) How many

> A time study of a factory worker has revealed an average observed time of 3.20 minutes, with a standard deviation of 1.28 minutes. These figures were based on a sample of 45 observations. Is this sample adequate in size for the firm to be 99% confident t

> Why have many manufacturing facilities relocated from Western Europe to Asia? Discuss the motives and risks.

> Each year, Lord & Taylor, Ltd., sets up a gift-wrapping station to assist its customers with holiday shopping. Preliminary observations of one worker at the station produced the following sample time (in minutes per package): 3.5, 3.2, 4.1, 3.6, 3.9. Bas

> Peter Rourke, a loan processor at Wentworth Bank, has been timed performing four work elements, with the results shown in the following table. The allowances for tasks such as this are personal, 7%; fatigue, 10%; and delay, 3%. a) What is the normal time

> The results of a time study to perform a quality control test are shown in the following table. On the basis of these observations, determine the normal and standard time for the test, assuming a 23% allowance factor.

> A pizza shop in Dubai wants to estimate the standard time for preparing its famous margarita pizza. The manager has performed a time study of the process and the following results have been observed. What is the standard time for the process, if the shop

> A hotel housekeeper, Alison Harvey, was observed five times on each of four task elements, as shown in the following table. On the basis of these observations, find the standard time for the process. Assume a 10% allowance factor.

> Susan Cottenden clocked the observed time for welding a part onto truck doors at 5.3 minutes. The performance rating of the worker timed was estimated at 105%. Find the normal time for this operation. Note: According to the local union contract, each wel

> After training, Mary Fernandez, a computer technician, had an average observed time for memory-chip tests of 12 seconds. Mary’s performance rating is 100%. The firm has a personal fatigue and delay allowance of 15%. a) Find the normal time for this proce

> Make a process chart for changing the right rear tire on an automobile.

> Jell Lee Beans is famous for its boxed candies, which are sold primarily to businesses. One operator had the following observed times for gift wrapping in minutes: 2.2, 2.6, 2.3, 2.5, 2.4. The operator has a performance rating of 105% and an allowance fa

> After being observed many times, Beverly Demarr, a hospital lab analyst, had an average observed time for blood tests of 12 minutes. Beverly’s performance rating is 105%. The hospital has a personal, fatigue, and delay allowance of 16%. a) Find the norma

> Asda, a leading supermarket in the U.K., is taking its click-and-collect service (where customers can order online and collect their items from the collection points) to train stations across London for the first time as part of a wider charge to expand

> A Northeast Airlines gate agent, Chip Gilliken, gives out seat assignments to ticketed passengers. He takes an average of 50 seconds per passenger and is rated 110% in performance. How long should a typical agent be expected to take to make seat assignme

> Claudine Soosay recorded the following times assembling a watch. Determine (a) the average time, (b) the normal time, and (c) the standard time taken by her, using a performance rating of 95% and a personal allowance of 8%.

> Refer to Problem 10.13. a) If the allowance factor is 15%, what is the standard time for this operation? b) If the allowance factor is 18% and the performance rating is now 90%, what is the standard time for this operation? Data from Problem 10.13: If C

> If Charlene, the worker in Problem 10.13, has a performance rating of 90%, what is the normal time for the operation? Is she faster or slower than normal? Data from Problem 10.13: If Charlene Brewster has times of 8.4, 8.6, 8.3, 8.5, 8.7, and 8.5 and a

> If Charlene Brewster has times of 8.4, 8.6, 8.3, 8.5, 8.7, and 8.5 and a performance rating of 110%, what is the normal time for this operation? Is she faster or slower than normal?

> Design a process chart for printing a short document on a laser printer at an office. Unknown to you, the printer in the hallway is out of paper. The paper is located in a supply room at the other end of the hall. You wish to make five stapled copies of

> Encouraging people to separate their household waste into recyclable and non-recyclable bins and collecting these bins has been a big task for many local authorities. In the collection process, the bin lorry collects two types of bins from each house. Th

> Draw an activity chart for washing the dishes in a double-sided sink. Two people participate, one washing, the other rinsing and drying. The rinser dries a batch of dishes from the drip rack as the washer fills the right sink with clean but unrinsed dish

> Rate a job you have had using Hackman and Oldham’s core job characteristics on a scale from 1 to 10. What is your total score? What about the job could have been changed to make you give it a higher score?

> Reid Chocolates has yet another layout it wishes to consider. Layout 5, which follows, has what total trip distance?

> Distribution centres have a key role in ensuring quick home delivery of products in online sales. What techniques can be employed by retailers to select the best locations for their distribution centres?

> The National Library of China consists of four major sections, each occupying different floors of a seven-storey building. A study shows that the average total distance covered by visitors per day among different sections of the library is around 1,500 k

> A job shop in the new industrial area of Six of October, Egypt, wants to arrange four work centers to minimize the interdepartmental material-handling cost. The flow and the current layout are shown below. a) What is the “load * distanc

> Marilyn Hart, operations manager at Hart Electronics, faces assembly-line balancing problems. She has been told that the firm needs to complete 1,400 electronic relays per day. There are 420 minutes of productive time in each working day (which is equiva

> Given the following task, times, and sequence, develop a balanced line capable of operating with a 10-minute cycle time at Dave Visser’s company. a) Draw the precedence diagram. b) Assign tasks to the minimum feasible number of workstat

> An assembly plant for the Blood Pressure RX, a portable blood pressure device, has 400 minutes available daily in the plant for the device, and the average demand is 80 units per day Final assembly requires 6 separate tasks. Information concerning these

> The process of renewing a driver’s license at the traffic department in Egypt involves the following seven activities. These activities are currently performed in order and there are seven workers on duty. a) Develop a layout for the cu

> A manufacturing firm in Saudi Arabia has four work centres arranged in the following order: Plan A (Existing Layout). The number of work pieces moved between the four work centres are shown in the table below. The cost to move 1 work piece for 1 meter is

> Ten basic tasks must be performed on an assembly line to manufacture a product. The demand for the product is 60 units per day and the line is available 8 hours per day. The time to perform each task and the immediate predecessors are shown below: a) Dra

> A medical center located in Kuwait has the following layout. Each department is nearly 10 × 15 meters. The average number of patients moving among the different departments per day is shown in the table below: a) Compute the total patient mo

> A large equipment manufacturer uses five adjacent work centres to manufacture its equipment. The distance between any two adjacent work centres is 100 meters. The number of daily trips between the different work centres is given below: Find the best layo

> How can the centre-of-gravity method be used to find the best locations for local services such as public libraries, medical centres, or post offices? What constraints should be considered when the method is used in large, congested cities?

> Brazil’s fast-growing economy has been largely dependent on its freight transport capacity. A recent study has categorized the country’s containership sea port terminals into three distinct groups based on the competit

> Subway, with more than 27,000 outlets in the U.S., is planning for a new restaurant in Buffalo, New York. Three locations are being considered. The following table gives the factors for each site. a) At which site should Subway open the new restaurant? b

> The main post office in Tampa, Florida, is due to be replaced with a much larger, more modern facility that can handle the tremendous flow of mail that has followed the city’s growth since 1970. Since all mail, incoming or outgoing, tra

> Xun Xu Health and Fitness has several production facilities scattered around the central and northern part of Iowa. It would be desirable to have a distribution center from which to send product to retailers such as Sears, WalMart, Kmart, and large sport

> The fixed and variable costs for four potential plant sites for Brent Snyder’s Ski Supplies are shown here: a) Graph the total-cost lines for the four potential sites. b) Over what range of annual volume is each location the preferable

> The fixed and variable costs (in U.S. dollars) for the new recycling plant that Eldon Yi is opening in Australia are computed as follows: a) Over what range is each city preferable? b) For a recycling of 5,000 units, which site is best?

> A Detroit seafood restaurant is considering opening a second facility in the suburb of West Bloomfield. The following table shows its ratings of five factors at each of four potential sites. Which site should the owner, Lucy Lyu, select?

> When placing a new medical clinic, the county health commissioner, Vicky Luo, wishes to consider three sites. The pertinent data are given in the following table. Which is the best site (assuming a higher weight is more desirable than a lower one)?

> Katie Reynolds owns two exclusive women’s clothing stores in Miami. In her plan to expand to a third location, she has narrowed her decision to three sites—one in a downtown office building, one in a shopping mall, and

> What keeps plotted revenue data from falling on a straight line in a break-even analysis?

> A production line at V. J. Sugumaran’s machine shop has three stations. The first station can process a unit in 10 minutes. The second station has two identical machines, each of which can process a unit in 12 minutes. (Each unit only needs to be process

> Under ideal conditions, a service bay at a Fast Lube can serve 6 cars per hour. The effective capacity and efficiency of a Fast Lube service bay are known to be 5.5 and 0.880, respectively. What is the minimum number of service bays Fast Lube needs to ac

> Southeastern Oklahoma State University’s business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester. However, in an effort to limit class sizes to a “reasonable” level (under 200, generally), Southeastern’s

> The effective capacity and efficiency for the next quarter at MMU Mfg. in Waco, Texas, for each of three departments are shown: Compute the expected production for next quarter for each department.

> Material delays have routinely limited production of household sinks to 400 units per day. If the plant efficiency is 80%, what is the effective capacity?

> Portland Savings and Loan is considering new computer software, which, because of installation and training cost, will have an unusual pattern of net receipts. The expected receipts are: $20,000 in year 1, nothing in the next year, $30,000 in year 3, and

> Cheryl Druehl needs to purchase a new milling machine. She is considering two different competing machines. Milling Machine, a will cost $300,000 and will return $80,000 per year for 6 years, with no salvage value. Milling machine B will cost $220,000 an

> Justin Bateh is considering a new machine for his shop. The machine is expected to generate receipts as follows: $50,000 in year 1, $30,000 in year 2, nothing in the next year, and $20,000 in year 4. At an interest rate of 6%, what is the present value o

> Tony and Steve are considering whether to purchase a new “bending brake.” This machine puts precise bends in a material used in their vinyl siding business. The machine will cost $70,000. Tony and Steve estimate that the machine will generate profits as

> Evaluate the following capital investments according to net present value. Each alternative requires an initial investment of $20,000. Assume a 10% cost of capital. Which is the preferred investment?

> What are the assumptions of break-even analysis?

> Kurt Hozak, VP of Operations at McClain Manufacturing, has to make a decision between two investment alternatives. Investment A has an initial cost of $61,000, and investment B has an initial cost of $74,000. The useful life of investment A is 6 years; t

> A plant has an effective capacity of 900 units per day and produces 800 units per day with its product mix; what is its efficiency?

> Bold’s Gym, a health club chain, is considering expanding into a new location: the initial investment would be $1 million in equipment, renovation, and a 6-year lease, and its annual upkeep and expenses would be $75,000 (paid at the beginning of the year

> Your boss has told you to evaluate two ovens for Tink-the-Tinkers, a gourmet sandwich shop. After some questioning of vendors and receipt of specifications, you are assured that the ovens have the attributes and costs shown in the following table. The fo

> Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they have the costs shown in the following table. He is told to assume that: 1. The life of each machine is 3 years. 2. The company thinks it knows how to mak

> What is the present value of $5,600 when the interest rate is 8% and the return of $5,600 will not be received for 15 years?

> The initial cost of an investment is $65,000 and the cost of capital is 10%. The return is $16,000 per year for 8 years. What is the net present value?

> What is the net present value of an investment that costs $75,000 and has a salvage value of $45,000? The annual profit from the investment is $15,000 each year for 5 years. The cost of capital at this risk level is 12%.

> As operations manager of Holz Furniture, you must make a decision about adding a line of rustic furniture. In discussing the possibilities with your sales manager, Steve Gilbert, you decide that there will definitely be a market and that your firm should

> James Lawson’s Bed and Breakfast, in a small historic Mississippi town, must decide how to subdivide (remodel) the large old home that will become its inn. There are three alternatives: Option A would modernize all baths and combine roo

> What is the theory of constraints?

> Use the same data in Problem S7.28: a) If the expected volume is 28,500 units, which alternative should be chosen? b) If the expected volume is 15,000 units, which alternative should be chosen? Data from Problem S7.28: Wolfgang Kersten Mfg. intends to i

> Given the data in Problem S7.28, at what volume (units) of output would the two alternatives yield the same profit (loss)? Data from Problem S7.28: Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors hav

> If a plant has an effective capacity of 6,500 and an efficiency of 88%, what is the actual (planned) output?

> You are given the data in Problem S7.28: a) What is the break-even point in dollars for proposal X? b) What is the break-even point in dollars for proposal Y? Data from Problem S7.28: Wolfgang Kersten Mfg. intends to increase capacity through the additi

> Wolfgang Kersten Mfg. intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, $170,000. The variable cost for X is $120.00, and for Y, $100

> As manager of the St. Cloud Theatre Company, you have decided that concession sales will support themselves. The following table provides the information you have been able to put together thus far: Last year’s manager, Scott Ellis, has

> As a prospective owner of a club known as the Red Rose, you are interested in determining the volume of sales dollars necessary for the coming year to reach the break-even point. You have decided to break down the sales for the club into four categories,

> Zan Azlett and Angela Zesiger have joined forces to start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food-processing experience, and Angela has extensive commercial food- preparation experience.

> The electronics firm in Problem S7.23 is now considering the new equipment and increasing the selling price to $1.10 per unit. With the higher-quality product, the new volume is expected to be 45,000 units. Under these circumstances, should the company p

> An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 per unit. Fixed costs are $14,000. Current volume is 30,000 units. The firm can substantially improve the product quality by add

> Distinguish between bottleneck time and throughput time.

> You are considering opening a copy service in the student union. You estimate your fixed cost at $15,000 and the variable cost of each copy sold at $.01. You expect the selling price to average $.05. a) What is the break-even point in dollars? b) What is

> Given the following data, calculate a) BEPx; b) BEP$; and c) the profit at 100,000 units: P = $8/unit V = $4/unit F = $50,000

> Janelle Heinke, the owner of Ha’Peppas! is considering a new oven in which to bake the firm’s signature dish, vegetarian pizza. Oven type A can handle 20 pizzas an hour. The fixed costs associated with oven A are $20,000 and the variable costs are $2.00

> For the past month, which has an effective capacity of 6,500, has made only 4,500 hammers per day because of material delay, employee absences, and other problems. What is its efficiency?

> Given the data in Problem S7.17, at what volume (units) of output would the two alternatives yield the same profit? Data from Problem S7.17: Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment.

> Using the data in Problem S7.17: a) What is the break-even point in dollars for proposal A if you add $10,000 installation to the fixed cost? b) What is the break-even point in dollars for proposal B if you add $10,000 installation to the fixed cost? Da

> Sroufe Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixed costs for proposal A are $50,000, and for proposal B, $70,000. The variable cost for A is $12.

> Smithson Cutting is opening a new line of scissors for supermarket distribution. It estimates its fixed cost to be $500.00 and its variable cost to be $0.50 per unit. Selling price is expected to average $0.75 per unit. a) What is Smithson’s break-even p

> A production process at Kenneth Day Manufacturing. The drilling operation occurs separately from, and simultaneously with, sawing and sanding, which are independent and sequential operations. A product needs to go through only one of the three assembly o

> Klassen Toy Company, Inc., assembles two parts (parts 1 and 2): Part 1 is first processed at workstation A for 15 minutes per unit and then processed at workstation B for 10 minutes per unit. Part 2 is simultaneously processed at workstation C for 20 min

> Explain why doubling the capacity of a bottleneck may not double the system capacity.

> The Pullman Mfg., Inc., three-station work cell has two machines at station 1 in parallel. The manager, Ms. Hartley, has asked you to evaluate the system if she adds a parallel machine at station 2. a) What is the throughput time of the new work cell? b)

> The three-station work cell at Pullman Mfg., Inc. It has two machines at station 1 in parallel (i.e., the product needs to go through only one of the two machines before proceeding to station 2). a) What is the throughput time of this work cell? b) What

> The three-station work cell has a product that must go through one of the two machines at station 1 (they are parallel) before proceeding to station 2. a) What is the bottleneck time of the system? b) What is the bottleneck station of this work cell? c)

> A work cell at Chris Ellis Commercial Laundry has a workstation with two machines, and each unit produced at the station needs to be processed by both of the machines. (The same unit cannot be worked on by both machines simultaneously.) Each machine has

> Amy Xia’s plant was designed to produce 7,000 hammers per day but is limited to making 6,000 hammers per day because of the time needed to change equipment between styles of hammers. What is the utilization?

> Organic Grains LLC uses statistical process control to ensure that its health-conscious, low-fat, multigrain sandwich loaves have the proper weight. Based on a previously stable and in-control process, the control limits of the x- and R-charts are UCLx =