Question: A computer-system installation project consists of

> A hospital is evaluating whether to outsource or perform in-house a large set of blood and urine laboratory tests. The fixed cost of the laboratory located in the hospital is $800,000 and the weighted average variable cost per test if performed in-hous

> Build a House of Quality (showing only the Voice of the customer, Technical features, Interrelationships, and Relationship matrix from Exhibit 5.2) for designing and producing chocolate chip cookies. The voice of the customer consists of the following:

> The following exhibit shows a partially completed House of Quality for a proposed fitness center. a. Examine the relationships in the roof of the House of Quality. Explain why they make sense (or if you think they do not, explain why). How would this ass

> Develop a House of Quality for a manufactured good or service based on current or past work experience or something else you are familiar with. Some ideas might be a quick service oil change, a fast-food restaurant, a DVD player, a new car, or a fitness

> Given the following customer requirements and technical requirements for an automobile, construct a partial House of Quality. Use your own preferences to denote relationship strengths.

> A simple electronic assembly consists of two components in a series configuration with reliabilities as shown in the figure below. Engineers would like to increase the reliability by adding additional components in one of the two proposed designs shown

> David Christopher received his medical degrees from the University of Kentucky and the University of Virginia. He did his residency and early surgeries at Duke University Medical Center. Eight years ago he set up his own orthopedic surgery clinic in Atla

> A mortgage loan approval process consists of three steps in series performed by clerks A, B, and C. Errors are often made, and a study found that clerks A and B had an average reliability of only 0.85, which results in the paperwork having errors, missi

> Given the following diagram, determine the total system reliability if the individual component reliabilities are: A = 0.94, B = 0.82, and C = 0.87. (Hint: Use equations 5.2 and 5.3 and note that the reliabilities of the parallel components are different

> Two cooling fans are installed in some laptop computers. Suppose the reliability of each cooling fan is 0.98. What percent improvement in reliability does adding the second fan provide?

> The system reliability for a three-component series system is 0.893952. If the reliability of the first and third components is 0.96 and 0.97 respectively, determine the reliability of the second component.

> The system reliability for a two-component parallel system is 0.99968. If the reliability of the first component is 0.992, determine the reliability of the second component.

> The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of these services over one month with these results: 90%, 80% and 96% respecti

> The manufacturing of compact disks requires four sequential steps. The reliability of each of the steps is 0.96, 0.87, 0.92, and 0.89 respectively. What is the reliability of the process?

> Cameras Galore, Inc. wants the economic loss due to a failed part to be no more than $300 with a target (T) specification of 4.5 centimeters and a k= 12,000. Using the Taguchi loss function, what is the value of x that meets these criteria?

> Vehicle transmission repairs for part number TAC45123 are costly to replace. A highly skilled mechanic must disassemble the tranmission. If the part fails while it is in warranty, the manufactuerer pays the full cost of the repair to the garage or dealer

> A quality characteristic has a specification (in inches) of 0.200  0.020. If the value of the quality characteristic exceeds 0.200 by the tolerance of 0.020 on either side, the product will require a repair of $150. Develop the appropriate Taguchi loss

> Appleton Corporation is one of the largest forest- products companies in the world, converting trees into three basic product groups: (1) building materials, such as lumber and plywood; (2) white paper products, including printing and writing grades of

> Suppose that the specification for a part (in inches) are 6.00 ± 0.02, and the Taguchi loss function for some part is estimated to be L(x) = 6,800 (x – T)2. Determine the economic loss if x = 6.05 inches.

> In Problem 35, Cynthia’s Cookies must decide between two improvement options. Option 1 is spending $10,000 on a new online marketing campaign that is expected to increase last year’s sales (units) by 20 percent. Option 2 is to reduce variable costs by 10

> The selling price per box for Cynthia’s Cookies selling price per box is $19.95. Fixed costs are $65,000 and the variable cost per box is $9.88. a. What is the breakeven quantity? b. If sales last year were 8,200 boxes, what was the net profit?

> Pesto Restaurant must decide between two types of technology in its kitchen. Option A is to use an induction oven process with a fixed cost of $20,000 and a variable cost of $6.51 per meal. Option B is to use a gas-fired oven process with a fixed cost of

> MovieFix is a video streaming company that sells to a potential audience of 300,000 customers. The selling price is $20 per month and its variable cost is $14.62 per month. What is the most the company should spend on annual fixed costs to acquire and ma

> Meyers Window Company introduced a new window design but sales were below expectations. Sales in units last year were 800 units. Variable cost per unit averaged $105.72, the fixed cost was $42,000, and the selling price was $149.99. a. What is the break

> Luke’s Ristorante wants to add a sea bass dinner to their menu. A small grill and oven would be added to the kitchen cooking area at a fixed cost of $9,000. The variable cost per fish dish is estimated to be $9.60 per entrée. If 600 fish dinners are sold

> The Vera Molding company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 with variable cost at $30 per unit. Alternative two is to outsource for a total cost o

> You need to expand your small business, Paddle Incorporated that manufactures paddle board rackets. The fixed cost for the new technological advanced equipment is $15,000. The variable cost to produce each unit using the new equipment is $10, and the sel

> The Gorman Manufacturing Company must decide whether to purchase a component part from a supplier or to manufacture the component at its own plant. If demand is high, it would be to Gorman's advantage to manufacture the component. If demand is low, howev

> 1. The worksheet Hudson Jeweler Demand Case Data in MindTap provides the number of visits over one year from January to December (52 weeks). Chart the data in Excel and explain the characteristics of the time series. How would you forecast future demand

> Southland Corporation's decision to produce a new line of recreational products has resulted in the need to choose one of two automated manufacturing systems based on proposals from two vendors, A and B. The economics of this decision depends on the mar

> A company has two alternatives for meeting a customer requirement for 880,000 units of a part used in office printers. If done in-house, fixed cost would be $1,400,000 with variable cost at $1.90 per unit. Alternative two is to outsource for a total cost

> LCD Software must complete the project defined by the following network in 22 weeks. The expected times and the activity variances are shown in the table below. a. Find the critical path(s) and compute the probability of completing the project by week 18

> A competitor of Kozar International, Inc. has begun marketing a new instant-developing film project. Kozar has had a similar product under study in its R&D department but has not yet been able to begin production. Because of the competitorâ&#12

> You are responsible for wiring a smart 12-story building in downtown Chicago. The project network and basic information are shown in the following table. The time is in weeks. Your promotion depends on the successful completion of this project in 20 week

> The table below shows estimates of activity times in (weeks) for a project: Suppose that the critical path is A-C-E-F-G. What is the probability that the project will be completed a. within 33 weeks? b. within 30 weeks? c. in more than 31 weeks? d. in 32

> Estimates of activity times in (weeks) for a project are as follows. Suppose that the critical path is A-D-F-H. What is the probability that the project will be completed within a. 20 weeks? b. 22 weeks? c. 24 weeks?

> The table below shows the crash times, and normal and crash costs for the international bank systems integration project. What is the total project completion time and lowest-cost solution if the bank wants to complete the project two weeks early?

> Suppose that some of the activities in the Environment Recycling, Inc. project (problem 40) can be crashed. The table below shows the crash times and costs associated with performing the activities at their original (normal) times and also for the crash

> You are in charge of the purchasing, installing, and testing a new 30-ton stamping machine for a major automobile assembly line. It stamps out metal fenders and hoods for vehicles prior to painting them. The goal is to complete the project on time and wi

> Hello, is this the investment management help desk?” said a tired voice on the other end of the telephone line at 7:42 a.m. “Yes, how can I help you?” said Thomas Bourbon, customer service representat

> Office Automation, Inc. has developed a proposal for introducing a new computerized office system that will improve word processing and interoffice communications for a particular company. Contained in the proposal is a list of activities that must be ac

> You are a marketing major and have been working at a major consumer products company for the past three years. Today, your boss walked into your office and said, “Polly, I want you to be the Project Leader for our launch of Perfect Clea

> You have collected the information in the table below for the project you are leading on web page design and development. The times are in weeks. a. What is the total time of this project? b. What is the total normal cost of the project? c. If you need t

> You are assigned your first project and if things go well you should get promoted. The CEO is aware of this project, so you have a chance for high visibility. You want to do a good job! Your first task is to define the work break down structure by interv

> Two international banks are integrating two financial processing software systems as a result of their merger. Preliminary analysis and interviews with all parties involved resulted in the following project information. The “systems int

> Rozales Manufacturing Co. is planning to install a new flexible manufacturing system. The activities that must be performed, their immediate predecessors, and estimated activity times are shown below. Draw the project network and find the critical path c

> Environment Recycling, Inc. must clean up a large automobile tire dump under a state environmental cleanup contract. The tasks, durations (in weeks), costs, and predecessor relationships are shown as follows: a. Draw the project network. b. Identify the

> A computer-system installation project consists of eight activities. The immediate predecessors and activity times in weeks are shown below. a. Draw the network for this project. b. Identify the critical path(s). c. What is the project completion time?

> Colonial State College is considering building a new athletic complex on campus. The complex would provide a new gymnasium for intercollegiate basketball games, expanded office space, classrooms, and intramural facilities. The activities that would have

> United Dairies, Inc. supplies milk to independent grocers in Collier County, Florida. Milk is perishable so forecast accuracy is critical in predicting the number of gallons of milk sold per month. Sales data in gallons for the past twelve months is show

> Mary is planning her wedding and develops the following preliminary information. a. Draw the network for this project. b. Identify the critical path(s)? c. What is the project completion time? d. Construct an early start date Gantt chart. e. As a project

> You are in charge of the advertising program for the Boston Red Sox baseball team during their spring training season in Fort Myers, Florida. You have defined the advertising program as a project with the following characteristics. The goal is to fill al

> You are in charge of a new initial public offering (IPO) on the NASDAQ stock exchange for a major bank. You have defined the project with the follow- ing characteristics. You expect to be promoted if this project and offering goes well. a. Draw the proje

> Construct a project network for the activities listed below. Do not attempt to perform any further analysis.

> The Mohawk Discount Store chain is designing a management-training program for individuals at its corporate headquarters. The company would like to design the program so that the trainees can complete it as quickly as possible. There are important preced

> The county government has decided to redo the street you live on and plans to block the street off, which causes you and your neighbors considerable inconvenience. The project has three parallel paths defined as follows: (i) path A-B-C-H to install stre

> A pillow assembly line consists of five stages arranged in series. The first workstation stuffs the pillow with filler material. The second workstation sews the pillow case and the third stage places the pillow in a clear plastic sleeve. The fourth works

> An automobile transmission manufacturer is considering using a JIT approach to replenishing its stock of transmissions. Daily demand for transmission #230 is 55 transmissions per day and they are built in groups of six transmissions. Total assembly and w

> Due to rapid changes in technology, a telecommunications manufacturer decides to produce a router using JIT methods. Daily demand for the router is 17 units per day. The routers are built on racks that hold four at a time (i.e., the container size). Tota

> Lou’s Bakery has established that JIT should be used for chocolate chips due to the high probability of the kitchen heat melting the chips. The average demand is 150 cups of chocolate chips per week. The average setup and processing time is ¼ day. Each c

> The Hudson Jewelers case study available in MindTap integrates material found in each chapter of this book. Case Question for Discussion: 1. Design and draw the layout for your high-end jewelry store. Critique its strengths and weaknesses. (Make use of c

> Tooltron Manufacturing uses a Kanban system for a component. Daily demand is 425 units. Each container has a combined waiting and processing time of 1.5 days. If the container size is 35 and the alpha value (a) is 12 percent, how many Kanban card sets sh

> Bracket Manufacturing uses a Kanban system for a component. Daily demand is 1,000 units. Each container has a combined waiting and processing time of .85 days. If the container size is 70 and the alpha value (a) is 13%, how many Kanban card sets should b

> A plastic injection molding machine operates 348 days a year. It is the bottleneck workstation in a process that produces plastic housed wall clocks. Industrial engineers collected data on the probability of machine breakdowns, the costs of preventive ma

> A Florida lottery machine and printer at Store #8302 operates 360 days a year. If the machine does not work and breaks down, it costs the Florida Lottery Commission $2,000 per day. If store employees are trained to perform local tests on the machine each

> CDC Discrete Fabricators wants to produce parts in batches of 300 parts. Each part must be processed sequentially from workstation A to B to C to D. a. How many seconds is required to produce the batch under the assumptions of batch processing? b. How ma

> Esplanade Marine Parts Inc. wants to produce parts in batches of 100 parts. Each part must be processed sequentially from workstation A to B. a. How many seconds is required to produce the batch under the assumptions of batch processing? b. How many seco

> A specification for a spacer plate used in a machine tool has specifications LSL 5 0.05 and USL 5 0.10 cm in thickness. A sample of 100 parts found m 5 0.067 and s 5 0.021. Compute and interpret the process capability indexes Cp, Cpl, Cpu, and Cpk.

> Suppose that a specification calls for LTL 5 2.0 and UTL 5 6.0. A sample of 100 parts found m 5 4.5 and s 5 0.5. Compute Cp, Cpl, Cpu, and Cpk. Should the manager consider any action based on these results?

> The worksheet C17 P37 Data in MindTap provides five examples of control charts. Interpret the patterns in each and determine if the processes are in control. If not, state the type of out-of-control condition that you identify (for example, points outsid

> Consider the following data showing the number of errors per thousand lines of code for a software development project. Find the control limits for a c-chart for monitoring errors per thousand lines of code.

> Del, every wire transfer request is processed first- come-first-served. Some of these wires are for millions of dollars, while others are under $100,” said Betty Kelly, a 28-year-old manager of Cash Movement (CM). She continued, â

> Find control limits for a c-chart with /

> A fast food franchise tracked the number of errors that occurred in customers’ orders. These included wrong menu item, wrong size drink, lack of condiments, wrong price total, and so on. Some orders may have more than one error. In one week, 1,500 orders

> At a pizza restaurant, a 20-week study of 30 pizzas per week found a total of 18 pizzas made improperly. Compute control limits for a p-chart.

> Twenty-five samples of 100 items each were inspected and 68 were found to be defective. Compute control limits for a p-chart.

> Twenty-five samples, each consisting of 200 loan applications at a bank, resulted in a total of 40 applications that had some type of error. Compute the control limits for a p-chart.

> Thirty samples of size 4 of the customer waiting time at a call center for a health insurance company resulted in an overall mean of 14.7 minutes and average range of 0.9 minutes. Compute the control limits for x- and R-charts.

> Twenty-five samples of size 5 resulted in an overall mean of 5.42 and an average range of 20. Compute control limits for x- and R-charts.

> Thirty samples of size 3 resulted in an overall mean of 16.51 and average range of 1.30. Compute control limits for x- and R-charts.

> Bill & Becky Travel, Inc. is a full service travel agency. Data in the worksheet C17 P27 Data in MindTap shows results for the question “Would you recommend us to a friend?” from 200 customers who were sampled during one week. Count the number of respons

> Develop cause-and-effect diagrams for any one of the following problems: a. Poor exam grade b. No job offers c. Too many speeding tickets d. Late for work or school

> He filed a lawsuit against us, Luke,” stated Mike Verssa, the Vice President of Operations for the State Human Resources Commission (SHRC). “Luke, you are his manager. What happened? He claims you raised his daily prod

> The following list gives the number of defects found in 30 samples of 100 electronic assemblies taken on a daily basis over one month. Plot these data on a run chart, computing the average value (center line). How do you interpret the chart?

> Reship Solutions, Inc. has a distribution center in Cincinnati, where it receives and breaks down bulk orders from suppliers’ factories and ships out products to retail customers. The different quality cost elements are shown in the tab

> Classify the cost elements shown below for the Impressive Printing Company into the proper quality cost categories and find the total quality cost by category and percentage of total quality cost by category.

> Given the cost elements in the table below, deter- mine the total percentage in each of the four major quality-cost categories.

> Analyze the cost data below. What implications do these data suggest to managers?

> Boardwalk Electronics manufactures 300,000 circuit boards per month. A random sample of 3,000 boards is inspected every week for five characteristics. During a recent week, three defects were found for one characteristic, and two defects each were found

> Nighthawk Airlines measured their numbers of lost bags in one month and found that they had lost 35 bags for 10,000 customers. If the average number of bags per customer is 1.2, how many errors per million opportunities (epmo) does this represent? The wo

> Wellplace Insurance Company processes insurance policy applications in batches of 50. One day, they had ten batches to process and, after inspection, it was found that four batches had nonconforming policies. One batch had three nonconformances, another

> Leatherlike Manufacturing Company makes an artificial leather-like product for the fashion accessory market. The material is made in sheets and has the appearance of a thin rug. Each sheet is 36 inches wide, 100 feet long, and is wound into a roll. The q

> The Naples Newspaper completes production of its daily edition by 5 a.m. A truck picks up pallets loaded with newspapers and delivers them to five neighbor sites, where carriers sort and fold the papers for individual routes. The mileage is shown in the

> 1. Research the parts of the diamond value chain and then answer the following question: How would you describe the type of process used for (a) exploration, (b) diamond mining, (c) sorting and grading, (d) cutting and polishing centers, (e) trading cent

> Dan’s Auto Detailing business performs two major activities: exterior cleanup, and interior detailing. Based on the size of car and condition, time estimates for six cars on Monday morning are as shown in the accompanying table. a. Sequ

> On Monday morning, Baxter Industries has the following jobs waiting for processing in two departments, milling, and drilling, in that order. a. Develop a minimum makespan schedule using Johnson’s rule. b. Construct a Gantt chart for the

> A manufacturing process involving machined components consists of two operations done on two different machines. The status of the queue at the beginning of a particular week is as follows: The processing on machine 2 must follow processing on machine 1.

> At Lynwood Manufacturing, (see Solved Problem 15.9), suppose the dispatcher uses the LWR instead of FNO. Which job (job 2 or job 3) will be scheduled next on the drill press at time 30?

> Five customers brought in computers to be repaired to a small shop. Estimated repair times (in days) and dates promised are given below. Due dates were set based on available technicians; however, one technician had a medical emergency and will be unavai

> A workstation has one maintenance mechanic to re- pair failed machines. We can think of the mechanic as the processor (scarce resource) and the machines awaiting repair as the jobs. Let us assume that six machines are down, with estimated repair times gi