MGT613 Solved Subjective

Mgt613 · Subjective · Reorder point determinants (3 marks) · 1. The rate of demand · 2. The lead time · 3. Stock out risk (safety stock) · 4. Demand and/or lead time variability

Why the waiting lines are formed? What are its effects on services operations? Give an example? (5 marks)

Waiting Lines

4. Waiting lines are non-value added occurrences

5. Are formed at airports, cricket stadiums, post offices.

6. Formed due to non scheduled random arrivals · 7. Often regarded as poor service quality · Waiting Line Examples · 1. Orders waiting to be filled · 2. Trucks waiting to be loaded or unloaded · 3. Job waiting to be processed · 4. Equipment waiting to be loaded

5. Machines waiting to be repaired.

Service Station as a Waiting Line Example

Service station is usually designed to provide service on average service time. At macro level system is unloaded at micro level the system is overloaded a Paradox

Customers arrive at random rate

Service requirements vary only oil change or even tuning or maintenance activity in order to change oil.

Q2. What is critical ratio? How to compute it? (3 marks)

CR - critical ratio: Jobs are processed according to smallest ratio of time remaining until due date to processing time remaining.

Factors to be consider for using the sampling plan (5 marks)

Sampling plans are the plans that specify lot size, sample size, number of samples, and acceptance/rejection criteria

Factors to be considered for using sampling plan · � Single-sampling · � Double-sampling · � Multiple-sampling · Single Sampling Characteristics

� One random is drawn from each lot.

� Every item in the sample is examined

� Each item after examination is classified good or defective. � If the sample contains more than a specified number of defectives say c, then that lot is rejected.

Double Sampling Plan Characteristics

� Takes care of limitation of Single Sampling Plan by taking another sample if results of the initial sample are inconclusive. � A double sampling plan specifies the lot size, the size of the initial sample, � If defects are greater than c2, than lot is rejected.

Multiple Sampling Plans

� Similar to double sampling plan but allows more than two samples. � A sampling plan will specify each sample size and two limits for each sample. � The values increase with number of samples. � If the cumulative number of defects (in current and previous samples) exceed the upper limit, then sampling is terminated and the lot is rejected.

4. Advantages and disadvantages of concurrent engineering (5 marks) Concurrent Engineering

Concurrent engineering is the bringing together of engineering design and manufacturing personnel early in the design phase.

Concurrent Engineering Advantages

� Manufacturing Personnel are able to identify production capabilities and capacities .They have thus the opportunity to inform the design group about the suitability of certain materials on the flipsides the designer would know the suitability of certain designs in aiding in cost reduction and quality improvement in production/assembly process. � Early opportunities for design or procurement of critical tooling, some of which might have long lead times. � early consideration of the Technical Feasibility of a particular design or a portion of a design. Again this can avoid serious problems during production.

Concurrent Engineering Disadvantages

� long standing existing boundaries between design and manufacturing can be difficult to overcome. Simply bringing a group of people together and thinking that they will be able to work together effectively is probably naive. � There must be extra communication and flexibility if the process is to work, and these can be difficult to achieve.

� Computer-Aided Design

� Computer-Aided Design (CAD) is product design using computer graphics.

� increases productivity of designers, 3 to 10 times

� creates a database for manufacturing information on product specifications

� provides possibility of engineering and cost analysis on proposed designs

Numerical question of annual carrying cost · Learn from the example 2 page no 146 of handouts · Philosophy of JIT system? (Marks 3)

Just In Time Production or Lean Production systems focus on the efficient delivery of products or services. Some of the distinguishing elements of the JIT systems are a pull method to manage material flow, consistently high quantity, small lot sizes, uniform work station loads. The JIT systems provide an organizational structure for improved supplier coordination by integrating the logistics, production and purchasing processes. When Operations Manager focuses on their organization’s competitive advantage they aim for low cost of production, consistent quality with reductions in inventory, space requirements, paperwork and increases in productivity, employee participation and effectiveness.’

EDI rewards? (5 marks)

Electronic data interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention. Electronic Data Interchange gives an organization the following benefits and advantages.

1. Increased productivity · 2. Reduction of paperwork · 3. Lead time and inventory reduction · 4. Facilitation of just-in-time systems · 5. Electronic transfer of funds · 6. Improved control of operations · 7. Reduction in clerical labor · 8. Increased accuracy