FALL 2011 2011 Deadline: October 26‚ Middle East Technical University – Northern Cyprus Campus BUS 361 Operations Management Homework 1 - Solutions 1. Fruit Computer Company manufactures memory chips in lots of ten chips. From past experience‚ Fruit knows that 80% of all lots contain 10% (1 out of 10) defective chips‚ 20% of all lots contain 50% (5 out of 10) defective chips. If a good batch (that is‚ 10% defective) of chips is sent on to the next stage of production‚ processing costs
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obtain a stable utilization rate throughout all machines to prevent incurring any late penalty. For example at Day 50‚ before the game started‚ we observed that machine 1 was running at 100% utilization for a few days before‚ and we predicted a bottleneck situation would occur here. Therefore we decided to purchase an additional machine immediately as the game started so as to allow continuous processing of lots to meet the demand and prevent losses in revenue. After purchasing additional machine
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= 6 + 2 + 10 + 5 + 2 + 1 = 26 minutes 2. How many orders can you fill in a night‚ assuming you are open four hours each night? 4 hours per each night = 4 hours * 60 minutes = 240 minutes Cycle Time = The Duration of the bottleneck = (Setting thermostat and Timer) + (Baking Cookies) = 1 minute + 9 minute = 10 minutes Maximum no of orders we can fill in a night = (No of minutes per night-Duration of First Setup) / Cycle Time + 1 = ((240
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has to be stopped because raw materials are not available or the design has still have to be clarified. (orders are not clear enough) * Production time is pretty high and therefore it is difficult to get the orders out on time. (´´one week the bottleneck may be in one machine center‚ and the next week it is another´´ every production sector is not well organized) Related to this Production time is on average 4 weeks. ) 90% of the time the order is waiting in line for a machine to become available
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success in running the simulation; all team members knew what was going on when changes needed to be made. We all came together to figure out the best course of action and then we executed. II. Operational Decision and Analysis 1. Step 1 is the bottleneck because it has the largest average queue size compare to step 2‚ 3 or 4. Even though we purchased 5 machines for Step 1‚ the utilization rate were around 80% or 90% when demand was high. Although Step 2 and 4 do their jobs in the station‚ they only
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| Thurs | Fri | Sat | Sun | Question 4 a) Yes more capacity does need to be added to the facility. The bottleneck resource is the available beds and this directly affects the throughput rate. By increasing the number of available beds the hospital can admit more patients and operate on more of them leading to an increased throughput rate. b) My suggestion
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the time needed to produce 1 part 37.7 seconds X 1000 = 37‚700 37‚700 seconds / 60 = 628 minutes to produce 1000 units 420 minutes per day available which means that we can only produce (25‚200/37.7= 668) 668 units per day. This is the bottleneck station.
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The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox‚ is a management-oriented business novel. Goldratt is an Israeli physicist who became a business management guru. He is a business consultant known for his Theory of Constraints. The purpose of the novel is to teach the importance of strategic capacity planning and constraint management. The Goal tells the story of Alex Rogo‚ a 38-year-old executive plant manager working at a factory owned by UniCo Corporation Manufacturing
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EINGB333 LAMBION Amaury Case report: Kristen’s Cookie Company Question 1 Total= 26 minutes (6+2+1+1+2+5+9) Question 2 The time we need for the first dozen of cookies is 26 minutes (see question 1). But the next orders only take 10 minutes. We can explain that by the fact that first we are obliged to do the whole operation. Then the mixing(6min) and the dishing(2min) can be done will an other dozen is baking (10 minutes). In the same reasoning cooking‚ baking and paying can be done when another
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Bottlenecks in a Process Paper Tino Hearn OPS/571 James Powell April 13‚ 2010 RUNNING HEAD: Bottlenecks in a Process Paper The daily exercise process design is not an extensive process. The cycle time may vary daily. There are potential bottlenecks but not many relating to the daily exercise process design. “Good intentions often lead to bad habits. This is evident when bottlenecks occur from relying too heavily on highly productive individuals or systems. It is common practice to place
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