QUESTION #3 MATERIAL REQUIREMENT PLANNING 25 MARKS

You have been appointed Operations Manager for a gym equipment manufacturing company. One of its most popular equipment is the steppers machine. You have an order for 50 treadmills, which are to be shipped in 8 weeks. Below is the information about the components for assembling the treadmills

Item	Lead Time	On Hand	Components
Steppers	2	20	A(1), B(3), C(2)
A	1	10	D(1), F(2)
B	2	30	E(1), F(3)
C	3	10	D(2), E(3)
D	1	15
E	2	5
F	2	20

1. Develop a product structure indicating levels (5 marks)

2. Develop a time-phased structure (10 marks)

3. Develop the net material requirement for the components using the accompanying sheet at the end of this paper.

(10 marks)

QUESTION # 4 - MAINTENANCE AND RELIABILITY 25 MARKS

1. The Bureau of Standards conducted high pressure test on forty (40) water meters, each were tested for 50 hours. One failed at 20 hours; another failed at 30 hours and all others completed the test. Calculate FR(%), FR(N), and MTBF. (6 marks)

2. The common area photocopy machine in SOBAs main office has been down several times over the past few months, as shown below.

Number of breakdowns	0	1	2	3	4
Monthly frequency	8	2	3	4	2

Each time the system is down, SOBA loses an average of $3000 in time and service expenses. SOBA is considering signing a contract for preventive maintenance. With preventive maintenance, the system would be down on average only 0.6 per month. The monthly cost of preventive maintenance would be $2500 a month. Which is cheaper, breakdown or preventive maintenance? Show calculations to justify (12 marks)

3. Determine the reliability for the system shown below: (7 marks)