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operations management

Operations Management 2nd International Edition Gerard Cachon, Christian Terwiesch - Solutions

A high signal-to-noise ratio makes learning harder. True or false? a. True b. False
John has been fixing bicycles for three years now. He notices that he is getting better with an increase in experience, though he does not necessarily know why. John’s learning is most likely a form of autonomous learning. True or false? a. True b. False
Which of the following is not part of the standard work sheet? a. The processing time for an activity b. The name of the person in charge of the activity c. The work sequence of all steps making up the activity d. The standard amount of inventory at the resource
In an environment with high employee turnover, standards are less important than in environments with low turnover. True or false? a. True b. False
If the employee turnover increases, the average tenure of an employee in the company 386 a. Increases. b. Decreases.c. Stays the same. d. Cannot be determined from the given information.
The employee turnover can be computed as a. Number of new employees recruited per year/Average number of employees b. Average number of employees/Number of new employees recruited per year c. 1/2 × Average time an employee spends with the company d. 1/2 × Number of new
How does the average tenure of an employee relate to the average time an employee spends with the company? a. They are one and the same thing. b. The average tenure is twice the average time an employee spends with the company. c. The average tenure is half the average time an
Assume a learning curve following the power law. If you double the initial cost c(1) of a product, the costs of producing an order of 20 units: a. Stay the same. b. Are reduced by 50 percent. c. Are doubled. d. Cannot be determined from the given information.
The cumulative learning curve coefficient CLCC(20, 0.8) is defined as follows: a. The cost to produce 20 units in a process with c(1) = 1 and a learning rate of 0.8. b. The cost to produce one unit in a process with c(1) = 20 and a learning rate of 0.8. c. The cost to produce one
The cumulative learning curve coefficient CLCC(x, LR) is always bigger than the learning curve coefficient LCC(x, LR) for all x > 1. True or false? a. True b. False
Instead of using the learning curve coefficient method, it is possible to compute the costs of the Nth unit as c(N) = c(1) × N b , where b is the slope of the learning curve in the log-log graph. True or false? a. True b. False
What is the difference between the PDCA cycle and the Deming cycle? a. The PDCA cycle includes four steps (plan, do, check, act), while the Deming cycle includes six steps. b. The Deming cycle only applies in manufacturing. c. The PDCA cycle is a method for quality improvement, while
A higher value of the learning rate (LR) leads to a lower value of the learning curve coefficient LCC(x, LR). True or false? a. True b. False
Consider the navigation skills of two cab drivers (without a GPS). Driver 1 is driving her routes as demanded by the customer and improves her understanding of the region that way. Driver 2 is deliberately taking time off from serving customers to explore new shortcuts. Driver 1 is relying on
The learning curve coefficient LCC(10, 0.8) captures: a. The cost to produce one unit in a process with c(1) = 1, a cumulative output of 10, and a learning rate of 0.8. b. The cost to produce one unit in a process with c(1) = 10, a cumulative output of 1, and a learning rate of
What are the three elements of a standard work sheet? a. They are the processing time for an activity, the work sequence of all steps making up the activity, and the standard amount of inventory at the resource. b. They are the processing time for an activity, the most common cause of
A firm has a learning rate almost equal to 1 (just slightly less than 1). What does this imply for the slope of the learning curve in a log-log graph? a. The slope is close to 0.b. The slope is close to –1. c. The slope is close to 1. d. Cannot be determined from the given
A company has 2200 employees, on average, and it recruits, on average, 300 employees per year. What is the average tenure of an employee?
A lower learning rate corresponds to a steeper slope in a log-log graph of the learning curve. True or false? a. True b. False
A company has 2200 employees, on average, and it recruits, on average, 300 employees per year. What is the employee turnover?
Will has just started a small company making special cakes for retirement parties. He just received a large order of five cakes from a local business. Will expects substantial productivity improvements in his work as he moves from the first cake in this order to the fifth cake. His current cost of
A learning curve following the power law has what shape in the loglog graph? a. Exponentially increasing b. Exponentially decreasing c. Linearly increasing d. Linearly decreasing
Consider again the preparation of income tax statements. The process starts with an initial cost c(1) = 45 and a learning rate of LR = 0.95, and by now has reached a cumulative output of 100. Without using the LCC method, what do you expect production costs to be for the 100th unit?
Consider two processes, A and B, with an initial cost of c(1) = 20. Process A has a learning rate of LR = 0.95 and process B has a learning rate of LR = 0.8. After 20 units: a. Process A is cheaper. b. Process B is cheaper. c. The two processes will have the same cost. d. Cannot
Consider the preparation of income tax statements. The process starts with an initial cost c(1) = 45 and a learning rate of LR = 0.95, and by now has reached a cumulative output of 100. Using the LCC method, what unit costs do you expect for the 100th unit?
Assume a learning curve following the power law. If you double the initial cost c(1) of a product, the cost of the 21st unit, c(21), will: a. Stay the same. b. Be reduced by 50 percent. c. Be doubled. d. Increase by a factor of ln(2).
An experienced car mechanic is working on changing the exhaust system. In 2010, the mechanic had performed this operation 100 times over her career. She estimates that, on average, it took her 80 minutes to change one exhaust system. By 2014, she had performed that operation 220 times, and it took
The power law describes a learning process with exponential growth in performance. True or false? a. True b. False
Consider a process restringing tennis rackets. The process starts with a unit cost of $10 for the first unit—that is, c(1) = 10—and a learning rate of LR = 0.9. What will be the unit cost for the 35th unit?
A novice rower is practicing for a 2000-meter test on a rowing machine (an “erg”). He presently takes 7 minutes and 10 seconds to complete the distance. His goal, in order to be recruited by a good college, is 6 minutes and 30 seconds. What form of improvement trajectory will most likely
Consider a process that makes high-end boards that get mounted on skateboards. The process starts with a unit cost of $20 for the first unit—that is, c(1) = 20—and has a learning rate of LR = 0.95. What will be the unit cost for the 128th unit?
A regional rail company wants to reduce its delays. Presently, 70 percent of the trains arrive on time. The company’s goal is to improve this to 95 percent. What form of improvement trajectory will most likely occur? a. Exponential growth b. Exponential decay c. Diminishing return
Consider the trajectory showing the amount of data storage space that comes with the average PC each year. What shape would a learning curve have in this setting? a. Exponential growth b. Exponential decay c. Diminishing return growth
A bakery produces cookies; however, it makes some defects, leading to occasionally broken or burnt cookies. Presently, the yield of the process is 90 percent (i.e., 9 out of 10 cookies are good). The bakery has a goal of producing 99 percent good cookies. What form of an improvement trajectory is
Consider the trajectory showing the number of luggage pieces that an airline loses on a flight. What shape would a learning curve have in this setting? a. Exponential growth b. Exponential decay c. Diminishing return growth
A bank is underwriting loans for small businesses. Currently, about 5 percent of the underwriting decisions are found to be incorrect when audited by the bank’s quality assurance department. The bank has a goal of reducing this number to 1 percent. What form of an improvement trajectory is most
In 1913, how long did the average worker stay with the plant? What was the average tenure of a worker? Assume the one-millionth vehicle was produced in 1916 at a cost of $8084 (in 2013 US$). By how much did Ford reduce his cost with each doubling of cumulative output from 1916 to 1927?In October
Consider the trajectory showing the percentage of customer orders in a restaurant that were handled correctly. What shape would a learning curve have in this setting? a. Exponential growth b. Exponential decay c. Diminishing return growth
Consider the following four-step assembly operation with quality problems. All resources are staffed by one employee. The first resource has a processing time of 5 minutes per unit. The second resource has a processing time of 6 minutes per unit. The third resource has a processing
In a process with rework, we find the bottleneck as the resource with the highest implied utilization. True or false? a. True b. False
David O’Bannon offers real estate training classes. Each of his classes has 3 hours of instruction and is offered in hotel rooms that hold 25 seats. David believes his course is great, so he offers any unsatisfied student the opportunity to take the class 1 more time. A student taking the class
What is the difference between a process with rework and a process with scrap? a. Scrap processes have less capacity. b. Scrap processes have higher implied utilization c. A process can have scrap or rework, but never both. d. In a scrap process units do not visit a resource
Patients enter a hospital with the hope of being cured. Unfortunately, 15 percent of patients return for a second visit shortly after they are discharged from the hospital because of recurring symptoms or other complications. Suppose the hospital has 30 beds and they operate 24 hours per day. A
Rework can increase the costs of an operation but has no impact on the capacity of the process. True or false? a. True b. False
A pharmaceutical company creates a compound with a four-stage process: Some of the resources have partial yields: 15 percent of material is discarded after the Acid step and 45 percent of the material is discarded after the separation step. The capacities of the last three steps are indicated
To find the bottleneck in a process with attrition loss, all we need to do is find the resource with the lowest capacity. True or false? a. True b. False
To obtain your first driver’s license, you must successfully complete several activities. First, you must produce the appropriate identification. Then, you must pass a written exam. Finally, you must pass the road exam. At each of these steps, 10 percent, 15 percent, and 40 percent of driver’s
What is the highest possible yield a process can obtain? a. 95 percent b. 100 percent c. 200 percent d. It depends on the process.
The help desk at Triple Stacked handles calls from customers regarding their high-end industrial switches. The help desk is actually divided into two groups. The first group is called the “Frontline” and it is staffed with 5 people. The second group is called the “Solver” and it is staffed
A process has a yield of 50 percent. How many units are needed as inflow to create an outflow of 40 units per day? a. 10 b. 20 c. 80 d. 90
An architectural firm has three types of clients: “G” = “green/new”; “EC” = experienced with a complex project; and “ES” = experienced with a simple project. The process flow for these types of projects and the staffing of each of the stages are provided below in the
The magnetic resonance imaging (MRI) unit of St Francis hospital has 2 MRI machines and sees two kinds of patients, “regular” patients and “contrast” patients. The regular patients don’t need any special preparation before imaging but the contrast patients receive an injection of
The following on-boarding process for new employees has two stages. In the first, employees fill out several government forms and necessary visas for immigration. In the second the employees attend human resources training sessions to instruct them in company policies. Each stage has 9 workers.
Consider a process consisting of five resources that are operated 8 hours per day. The process works on three different products, A, B, and C: Demand for the three different products is as follows: product A, 40 units per day; product B, 50 units per day; and product C, 60 units per
A resource has an implied utilization of 150 percent. This is the highest implied utilization in the process. This means that the resource is the bottleneck. True or false? a. True b. False
Rockin’ Rocks offers two types of indoor climbing walls, the Challenge and the Psycho. There is one Challenge wall and 4 Psycho walls. There are two types of customers: Recreational and Expert. Recreationals do the Challenge wall in 10 minutes and then the Psycho wall in 30 minutes. Experts only
At a career fair there are two types of job seekers, ones with low experience (Elow) and those with high experience (Ehigh). 70 Elows arrive per hour and 30 Ehighs arrive per hour. The Elows first meet with a coach to go over their resume and to get interviewing tips. Coaching takes 10 minutes and
The local Department of Motor Vehicles issues new licenses and renews licenses. The office receives 110 customers per hour. All customers first see a receptionist. The receptionist directs them in one of three directions. 75 percent go directly to Issue License (staffed by 9 workers) where a
Panini, a popular sandwich shop, offers 3 types of sandwiches: grilled vegetables, grilled chicken, and pastrami. Demand (sandwiches per hour) are Grilled Vegetables = 25, Grilled Chicken = 15, and Pastrami = 10. There are up to five steps in the process of making sandwiches, listed below with
Evaluate the impact of increasing the usage of the new kiosks. To do this, first draw a process flow diagram that combines the three different flows (traditional process, NEXUS program, new kiosks). Then, compute by what percentage the workload of the CBP officers would decrease if the usage of the
GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey to its customers, asking for the information required for preparing the tax statements. Based on 50 years of experience, GV categorizes its
The implied utilization can never be bigger than 100 percent. True or false? a. True b. False
The resource with the largest total demand rate is the bottleneck. True or false? a. True b. False
The total demand rate for a resource is the sum of the individual demand rates that need to be processed by the resource. True or false? a. True b. False
A process has 10 resources and two types of flow units. How many columns will there be in the demand table? a. 2 b. 5 c. 10 d. 20
A process has six resources and three types of flow units. How many rows will there be in the demand table?a. 2 b. 3 c. 6 d. 18
What do you think of the comments of these two experts? Draw a process flow diagram for each of the two expert proposals. For each proposal, compute process capacity, labor utilization, and costs of direct labor, assuming that the processing times in the proposal of the first expert would be cut in
The White Tooth Device Company is a manufacturer of high-end electric toothbrushes. For each toothbrush, there are a sequence of assembly steps performed by five workers. Each worker does two tasks. Workers are paid $15 per hour. a. What is the labor content of a toothbrush (seconds)?b. What
Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity
It takes a lawyer 120 minutes to serve one customer. Demand is 2 customers per 8-hour day. The lawyer has a wage rate of $200 per hour. a. What is the cost of direct labor for the lawyer expressed in $ per customer? b. What is the labor utilization of the lawyer?
Specialization typically leads to a higher average labor utilization. True or false? a. True b. False
Specialization increases the costs of labor because specialists will command a higher wage rate. True or false? a. True b. False
Balancing a process with a fixed sequence of activities will achieve a higher average labor utilization than balancing a process with no fixed sequence of activities. True or false? a. True b. False
It is possible to increase process capacity by balancing a process. True or false? a. True b. False
Which of the following actions does not relate to off-loading the bottleneck? a. Reassigning activities to other, nonbottleneck resources b. Automating some of the activities at the bottleneck c. Increasing wages for production workers d. Outsourcing some of the bottleneck
What happens to the target manpower if the labor content is doubled? a. The target manpower increases by 50 percent. b. The target manpower doubles. c. The target manpower decreases by 50 percent. d. The target manpower decreases by a factor of 2.
How does the target manpower change as the demand rate increases? a. The target manpower increases. b. The target manpower stays the same. c. The target manpower decreases. d. Cannot determine from the given information.
How does the takt time change as the demand rate increases? a. The takt time increases. b. The takt time stays the same. c. The takt time decreases. d. Cannot determine from the given information.
If the takt time is shorter than the cycle time, the process needs to run faster. True or false? a. True b. False
Which of the following statements about takt time and cycle time is true? a. Takt time only depends on demand, not capacity. Cycle time does depend on capacity. b. Takt time only depends on capacity, not demand. Cycle time depends on demand. c. Takt time and cycle time only depend on
The bottleneck resource in a process has the least idle time. True or false? a. True b. False
A group of workers works really hard. In fact, they work so hard that one of them claims to have an average labor utilization of 120 percent. Is that possible? a. Yes b. No
A nonbottleneck worker currently has an idle time of 20 seconds per unit. Because of the large demand, the company improves the process by adding more capacity to the bottleneck. How does this impact the idle time of the worker? a. The idle time would decrease. b. The idle time would stay
You and three of your friends run a car wash for a fund-raiser. Between interior and exterior cleaning, you spend about 40 minutes per vehicle. You are so successful that the next day you invite four more friends to help. How does this impact the labor content? a. The labor content goes
A process is replicated in another country where wages are 50 percent lower. Staffing and processing times are identical. What would be the effect on the costs of direct labor?a. Costs of direct labor would be 50 percent lower. b. Costs of direct labor would be the same. c. Costs of
Imagine you could take a tour of the Tesla plant. To prepare for this tour, draw a simple process flow diagram of the operation. What is the cycle time of the process (assume two shifts of 8 hours each and 5 days a week of operation)? What is the flow time? Where in the process do you expect to
The local driver’s license center processes applications for driver’s license renewals through the following three steps. First, the customer registers with the receptionist, who updates the customer’s information in the database. This first step takes 2 minutes per customer. Then, the
An automated car wash serves customers with the following serial process: pretreat, wash, rinse, wax, hand dry. Each of these steps is performed by a dedicated machine except for the hand-dry step, which is performed manually on each car by one of three workers. The steps of the process have the
An assembly process has a cycle time of 45 seconds and operates with 100 stations. Assuming the process starts empty and is machinepaced, how long will it take (in minutes) to complete 50 units?
Consider a four-step serial process with the number of workers at each step and processing times given in the following table. Assuming that the process starts out empty and is worker-paced, how long will it take (in minutes) to serve 20 customers? Time per Customer (in Minutes) Process Step
Consider a four-step serial process with processing times given in the following list. There is one machine at each step of the process, and this is a machine-paced process. Step 1: 25 minutes per unit Step 2: 15 minutes per unit Step 3: 30 minutes per unit Step 4: 20 minutes
A small mortgage lender has one receptionist, four loan officers, and two office managers. When applicants apply for a new loan in person, they first fill out paperwork with the receptionist. Then the applicants meet with one of the loan officers to discuss their needs. The loan officer spends
Consider the following production process for manufacturing biscuits. The first step of the process is mixing, where all of the ingredients are combined in the correct proportion to form dough. In the next step of the process, the dough is formed into sheets and cut into pieces in preparation for
Consider a process consisting of three resources. Assume there exists unlimited demand for the product. Resource 1 has a processing time of 6 minutes per unit. Resource 2 has a processing time of 3 minutes per unit. Resource 3 has a processing time of 5 minutes per unit. All three
A community health system’s nurse team consists of 12 nurses working in the local community. It takes a nurse 1.5 hours to complete one patient visit (including travel time and breaks). a. What is the capacity of the nurse team over the course of a 9-hour workday? b. Assuming the
It takes a barber 15 minutes to serve one customer. a. What is the capacity of the barber expressed in customers per hour?b. Assuming the demand for the barber is 2 customers per hour, what is the flow rate?c. Assuming the demand for the barber is 2 customers per hour, what is the
You observe a vehicle registration department at your local township. Assume that all employees are ready to work at 9 a.m. You arrive at 9 a.m. sharp and are the first customer. Is your time through the empty process longer or shorter than the flow time averaged across all customers that arrive
Smartphones are made on a 40-step assembly process. All 40 steps are connected through a conveyor belt and all of the 40 steps must work at the same rate even if some of them have more capacity than others. Is this process a machine-paced process or a worker-paced process? a.
Is the capacity of the bottleneck larger than, equal to, or smaller than the capacity of the process? a. Larger thanb. Equal to c. Smaller than d. The answer depends on the specific process under consideration.
What is the maximum utilization a resource can achieve? a. A value equal to the demand b. A value equal to the capacity c. There is no maximum utilization. d. 1.00

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