1. Brunchy Kreme, in making its famous doughnuts, begins with the three-step process shown below. There are three dedicated workers, each assigned to one step. Mixing the dough is performed by one worker. Creating the doughnut shape from the dough is performed by the second worker. Batches of doughnuts from Shaping are processed in a flavoring machine in the third step, staffed by the third worker. We shall ignore the remaining tasks required to make doughnuts, such as frying and packing, for simplicity because they have ample capacity and require negligible labor time.

Setup time (minutes per batch)	15	25	30
Run time (minutes per doughnut)	0.35	0.30	0.05

All setups are done by the workers. A setup must be performed in each step of the process for each batch after the batch reaches the worker. Suppose that the batch size is 100 doughnuts.

a) What is the capacity of the above process in doughnuts per hour?

b)  Suppose demand is sufficient. What is the utilization of the three workers staffing the operation?

c) For what range of batch sizes is Mixing the bottleneck?

2.Answer the following questions related to the Toyota Production System.

a) Toyota uses the Andon system to (circle one):

2. level or balance the production
4. make mistakes known
6. reduce setup times
8. achieve just-in-time production
10. manage relationships with suppliers

b) The Toyota Production System has received much acclaim for how well it can cut costs and improve quality in a manufacturing environment. Judge whether the followings contribute to its success. Circle Yes or No for each item.

Yes	No	Use large batch sizes to cut costs through economies of scale
Yes	No	Use leveled production (heijunka) to reduce inventory and idle time for workers and machines
Yes	No	Use mechanical jidoka to eliminate the need for operators to watch over each machine continuously
Yes	No	Eliminate all work in process inventories to minimize holding costs

c) Provide a real-life, or everyday, example of poka-yoke.

3. Industrial Pipes Corporation makes two kinds of pipes (Pipe A and Pipe B). Pipe A sells for $3000, while Pipe B sells for $2200. The firm has identified two processes, heat treatment and final assembly, as critical areas for overall throughput for the firm. Industrial Pipes operates both processes two shifts per day (15 hours per day) for 20 days per month for a total 300 hours per month each. Pipe A takes 4 hours on heat treatment and 5 hours on final assembly while pipe B takes 6 hours on heat treatment and 1.5 hours on final assembly. Assume that the firm can sell no more than 50 units of each pipe per month (i.e., maximum demand for each type of pipe is limited to 50 per month).

The firm is trying to maximize its total contribution from these two products. Formulate the problem of determining how many of each type of pipe they should make each month and use the Excel Solver to obtain a solution.