HOMEWORK SET 1

1. HOMEWORK SET 1 • Probs. 1-5, 1-12 • Question 2-8 • Probs. 2-1, 2-14 • Case Prob. 2.4 • Probs. 3-2, 3-14 • Probs. 4-8, 4-14 • Probs. 5-4 and 5-5

2. Problem 1.5

3. Problem 1.12

4. Problem 2.1a

5. Problem 2.1b

6. Problem 2.1c These index values do not provide much information regarding the effectiveness of the quality assurance program. They are, however, useful in making comparisons from one period to the next and in showing trends in product quality over time.

7. Problem 2.14

8. Case 2.4 • Stage 1 yield: Y1 = (I)(%G) + (I)(1-%G)(%R) • = 500 (.94) + 500(.06)(.23) • = 470 + 6.9 = 476.9 • Stg 2 yield: Y2=476.9(.96)+476.9*(.04)(.91) • = 457.82 + 17.36 = 475.2 • Stg 3 yield: Y3= 475.2(.95)+475.2*(.05)(.67) • = 451.44 + 15.92 = 467.6 • Stg 4 yield: Y4=467.6*(.97)+467.6*(.03)(.89) • = 453.57 + 12.48 = 466.1 • Stg 5 yield: Y5 = 466.1*(.98)+466.1*(.02)(.72) • = 456.78 + 6.71 = 463.5

9. Case 2-4

10. Case 2-4

11. Problem 3.2

12. Problem 3.2

13. Problem 3.14

14. Problem 4.8

15. Problem 4-14 • Provider MTBF MTTR SA • JCN (8*40)/50=6.4 3+2=5 6.4/(6.4+5)=.56 • Bell (8*40)/100=3.2 2+1=3 3.2/(3.2+3)=.52 • Com (8*40)/250=1.3 1+.5=1.5 1.3/(1.3+1.5)=.46 • Best choice in terms of SA is JCN

16. Problem 5-4

17. Problem 5-5

18. Problem 5-14 – Not assigned

19. Stitching Problem • Stitches and glue are redundant—i.e., in parallel—not in series • Ask yourself—will the shoe ‘system’ function the first day with only glue and not stitches, or vice versa? • System reliability of one row of stitches and glue = .5 + .7 - .5*.7 = .85

20. Stitching Problem • Add a second row of stitches • Reliability = .85 + .5 - .85*.5 = .925 • Add a third row of stitches • Reliability = .925 + .5 - .925*.5 = .9625

21. Review for Exam 1 This exam will be administered Tuesday July 16, 2013 in this room—you will have the entire period

22. Exam Structure • 50 multiple choice worth 50% • 4-5 problems worth 50% • Bring: pencils, erasure, 5-function calculator, orange scantron sheet • Exam is closed-notes, closed-books, closed-neighbors

23. Chapters covered • 1, 2, 3, 4, 5, 6 • No supplements to any of these chapters

24. Problems • Calculate product yield • Calculate product cost based on product yield • Calculate reliability • Like problem 4-8 in your HW • Calculate break-even volume and indifference points • RE-ENGINEER A PROCESS

25. More problems • P-chart//R-chart//xbar chart • Like problems 3-2 and 3-14 in your HW • Cpr/Cpk problem—standard deviation given to you. • QFD (Quality Function Deployment) Problem is not likely, but there will be Multiple Choice on it

26. Chapter 1 • Name some activities of operations managers • Organizing work, selecting and innovating processes, arranging layouts, locating facilities, designing jobs, measuring performance, controlling quality, scheduling work, managing inventory, planning production • Is the Japanese success in Manufacturing a cultural one? • No. Witness what Matsushita did with Motorola’s Quasar

27. Activities in Operations Management include all but…. • Organizing work • Controlling quality • Selecting processes • Controlling finances • Scheduling work

28. Operations at a Bank • Processing funds • Providing checks • Cashing checks • Preparing monthly statements • Reconciling statements • Approving loans • Loaning money • Tracking loan payments

29. Operations at a retail store • Purchasing goods • Stocking goods • Selling goods • Tracking inventory • Scheduling workers • Laying out the store • Locating the store • Forecasting demand

30. Operations at hospital • Preparing rooms • Scheduling doctors, nurses, operating rooms • Processing paperwork • Ordering supplies • Billing customers • Caring for patients • Maintaining the facility

31. Operations at a cable TV company • Taking orders • Installing equipment • Maintaining equipment • Staying on the “air” • Scheduling work • Processing statements • Processing payments

32. Evolution of Operations • Industrial revolution—Adam Smith • Scientific management—Frederick Taylor • Human relations—Abraham Maslow • Operations research—George Dantzig • Quality revolution—W. Edwards Deming • Globalization—many contributors • Internet—Tim Berners Lee

33. Productivity is what exactly? • Output/Input • Measured in $$$ • The most common measure of competitiveness of a country • Government reports measure CHANGES IN PRODUCTIVITY from month to month

34. Name some trends in OM • Intense Competition • Global markets • Importance of Strategy • Product variety and mass customization • More services • Emphasis on quality • Flexibility • Advances in technology • Worker involvement

35. Name some barriers to entry of new enterprises • Economies of Scale • Access to customers and suppliers • The capital investment required • Learning curves • {Which of these would cause the cost to manufacture an airliner to decline from $300M to $30M as the manufacturer proceeds from the 1st to the 10th airplane??}

36. More Chapter 1 • Would you say that cheap labor rates are the strongest motivation for plant location? • Whose hourly wage rates are substantially higher than ours? • Operations has been likened to a _____ process • The purpose is to add _____, more ____ than you add cost.

37. Chapter 1 • _____ is the most common measure of competitiveness of a country. • a) Operations • b) Process • c) Productivity • d) E-commerce • e) Positioning

38. How important is a country’s competitiveness? • Somewhat • Not very • Not at all • Very important, if you value standard of living

39. Operations Strategy • Primary tasks, core competencies, order qualifiers--define these • Name four dimensions of competition • Today the focus in not on functions but _____ • Name four PROCESS (OPERATIONS) types • project, batch, mass production, continuous production • Which of these are low-volume, which are high volume

40. Operations Strategy • What is meant by a core competence • What is meant by • make to order • make to stock • assemble to order

41. Service Operations • There are four types • Professional service, service shop, mass service, service factory • Schema coordinates are labor intensity and customization

42. Competing On Cost • Eliminate all waste • Invest in • updated facilities & equipment • streamlining operations • training & development • Examples • Walmart • Southwest Airlines Ch 2 - 3 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e

43. Competing On Quality Please the customer • Understand customer attitudes toward and expectations of quality • Example • Ritz-Carlton Hotels Ch 2 - 4 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e

44. Competing On Flexibility • Produce wide variety of products • Introduce new products quickly • Modify existing products quickly • Respond to customer needs • Example • Anderson Windows • Custom Foot Shoe Store • National Bicycle Industrial company Ch 2 - 5 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e

45. Competing On Speed • Fast moves • Fast adaptations • Tight linkages • Example: Dell • Another example: Walmart’s cross-docking Ch 2 - 6 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e

46. Product-Process Matrix High Continuous production Mass production Volume Batch production Projects Low Low High Standardization Ch 2 - 17 © 2000 by Prentice-Hall Inc Russell/Taylor Oper Mgt 3/e

47. Low Service Factory Mass Service Labor Intensity Service Shop Professional Service High High Low Customization Service-Process Matrix Figure 2.4

48. Chapter 2--Quality Management • Be able to calculate Yield and Product cost • Formulas will be given to you What we learn from problems 2-1 and 2-14? That improvements in quality (Yield) produce reductions in cost

49. Chapter 2-Quality Gurus • Who gave us P-D-C-A? • What was the name of his mentor? • Who Wrote the book QUALITY IS FREE? • Who proposed that TQM was a total commitment among both management and employees

50. Name the first five of Deming’s 14 points • Maintain constancy of purpose • Adopt a philosophy of prevention • Eliminate the need for inspection • Select a few suppliers • Constantly improve the production process