Operation Management Exam
EXAMINATION I NAME: __________________________________________________________
1. David Upton is president of Upton Manufacturing, a producer of Go-Karts tires. Upton makes 2500 tires per day with the following resources:
Labor: 50 hours per day @15.00 per hour Raw Material: 20,000 lbs. per day at @ $3 per lb Energy: $5,000 per day Capital: $10,000 per day
a) What is the labor productivity for these tires?
The labor productivity for these tires is … 50 tires/labor hr
Productivity = 2,500/50
= 50 tires per labor hr.
b) What is the multifactor productivity for these tires?
Productivity = 2,500 units/50($15) + 20,000 lbs ($3) + 5,000 + 10,000
= 2,500/75,750
= .033 tires per dollar
c) What is the percent change in the multifactor productivity if the energy bill can be reduced by $2000 without cutting production or changing any other inputs?
The percent change is 3%
= 2,500/$750 = $60,000 + $3,000 + $10,000
= 2,500/$73,750 = .034
.034 / .033 = 1.03 = 3%
2. Draw an AON network for the project described below.
Activity Immediate Predecessor (s)
A - B - C A D A E B,C F B,C G D,E H D,E I H J F,G K G,I
[pic]
3. A PERT project has an ending completion time of 62 weeks with a variance of 16 weeks. Determine the following probabilities:
a) The project is completed in 68 weeks.
Z = (68 wks – 62wks) / 4
= 6 / 4
= 1.5 = .93319 = 93.32 %
b) The project takes longer than 70 weeks.
Z = (70 Wks – 62 wks) / 4
= 8 / 4
= 2. = .97725 = 97.73%
c) The project is
1. David Upton is president of Upton Manufacturing, a producer of Go-Karts tires. Upton makes 2500 tires per day with the following resources:
Labor: 50 hours per day @15.00 per hour Raw Material: 20,000 lbs. per day at @ $3 per lb Energy: $5,000 per day Capital: $10,000 per day
a) What is the labor productivity for these tires?
The labor productivity for these tires is … 50 tires/labor hr
Productivity = 2,500/50
= 50 tires per labor hr.
b) What is the multifactor productivity for these tires?
Productivity = 2,500 units/50($15) + 20,000 lbs ($3) + 5,000 + 10,000
= 2,500/75,750
= .033 tires per dollar
c) What is the percent change in the multifactor productivity if the energy bill can be reduced by $2000 without cutting production or changing any other inputs?
The percent change is 3%
= 2,500/$750 = $60,000 + $3,000 + $10,000
= 2,500/$73,750 = .034
.034 / .033 = 1.03 = 3%
2. Draw an AON network for the project described below.
Activity Immediate Predecessor (s)
A - B - C A D A E B,C F B,C G D,E H D,E I H J F,G K G,I
[pic]
3. A PERT project has an ending completion time of 62 weeks with a variance of 16 weeks. Determine the following probabilities:
a) The project is completed in 68 weeks.
Z = (68 wks – 62wks) / 4
= 6 / 4
= 1.5 = .93319 = 93.32 %
b) The project takes longer than 70 weeks.
Z = (70 Wks – 62 wks) / 4
= 8 / 4
= 2. = .97725 = 97.73%
c) The project is