Opration Management TAM

Assignment (TMA) for the answer of Operation Management
Name Id BA- Center A.A

Part 1 True or False
1, False
2, False
3, False
4, False
5, False
6, False
7, False
8, False
9, False
10, False
Part ii short answer
1, operation management is the management of resources, systems and functions that are responsible
for the creation of goods or services. It involves planning, organizing, coordinating, and controlling all
the resources needed to produce a company , s goods and service.
2, service design guidelines:- a number of simple but high effective rules are often used to guide the
development of service systems. The key rules are the following .
i, have a single, unifying theme, such as convenience or speed. This will help personnel to work together
rather than at cross-purposes.
ii, make sure the system has the capability to handle any expected variability in service requirements.
iii, include design features and checks to ensure that service will be reliable and will provide consistently
high quality.
iv, Design the system to be user –friendly. This is especially true for self-service systems.
3, there are four layout types these are:
Product layouts are used to achieve smooth and rapid flow of large volume of goods or consumes
through a system. It is a type of layout that uses standardized processing operations to achieve smooth,
rapid and high volume flow.
Process layouts are designed to process items or provide services that involve a variety of processing
requirements. The layout feature departments or other functional activities in which similar kinds of
activities are performed.
Fixed position layouts the item being worked on remain stationery and workers, materials and
equipment are moved about as needed. This is in marked, contrast to product and process layouts.
Combination( hybrid) layouts the three basic layout types are: ideal models, which may be altered to
satisfy the needs of a particular situation. It is not hard to find layouts that represent some combination
of these pure types. For instance: super market layouts are essentially process layouts, and yet we find
most use fixed –path material handling, device such as roller type conveyors both in the stock-rooms
and belt type conveyors at the cash register. Ideally, a system is flexible and yet efficient, with low unit
production cost. Cellular manufacturing, group technology, and flexible manufacturing systems
represent efforts to more toward this ideal.
1
4, The following are among the major factors that affect the decision making in selecting location of
operations.
i, Regional factors: these factors are more inclusive, basic and general when compared to the
community or site factors. Raw materials, labor and market considerations are the major regional
factors.
Location of raw material firms locate near or at the site of raw materials for three primary reasons:
necessity, probability and transportation costs.
Location of markets profit oriented firms frequently locate near the markets they intend to serve as part
of their competitive strategy, where as non- profit organizations choose locations relative to the needs
of the users of their service.
Labor factors primary labor considerations are the cost and availability of labor, wage rates in an area,
labor productivity and attitudes toward work
ii, Community factors consist of quality of life, services, attitudes, taxes, environmental, regulation,
utilities, facilities, incentives and development support.
iii, Site related factors the primary considerations related to sites are land, transportation, and zoning or
other restrictions. Because of the long-term commitment usually required, land costs may be secondary
to other site-related factors, such as to room expansion, current utilities, etc in addition, for many firms,
roads and rail ways are important.
5, the term total quality management refers to a quest for quality in an organization. There are three
key philosophies in this approach.
i, total quality management (TQM) is never-ending push to improve, which is referred to as continuous
improvement.
ii, total quality management(TQM) is the involvement of everyone in the organization
iii, total quality management(TQM) is a goal of customer satisfaction, which means meeting or
exceeding customer expectation.
iii , Part answer of work out questions
1, solution
Working time=28 minutes
Number of units made =5000
Performance rating(PR)=125% or 1.25
Allowances(A)=10% or 0.1
I can calculate the observed time(OT),Normal time(NT) and Standard time(ST) in the following manner:
A, Observed time(OT) = total working time ÷ number of unit made
= 28minutes ÷ 5000
= 0.0056 minutes
B, Normal time(NT) = OT× PR
= 0.0056 minutes × 1.25
= 0.007 minutes
C, Standard time(ST) = NT× (n + A)
= 0.007×(1 + 0.1)
= 0.0077 Minutes
2B Solution
Defective (p) = total number of defects from all sample/number of samples × sample size
= 46/15×100
= 0.031
2
Standard devation (sp)=√ p(1-p) ÷n
=√ 0.031(1-0.031) ÷15
= 0.045
i, for 95% confidence interval, Z = 1.96
UCL= p + Z Sp = 0.031+(1.96)(0.045) = 0.119
LCL= p-Z Sp = 0.031- (1.96)(0.045) = 0.057
ii,
Sample Sample size Number of defects fraction defects
1 100 4 0.04
2 100 3 0.03
3 100 5 0.05
4 100 0 0
5 100 2 0.02
6 100 8 0.08
7 100 1 0.01
8 100 3 0.03
9 100 4 0.04
10 100 2 0.02
11 100 7 0.07
12 100 2 0.02
13 100 1 0.01
14 100 3 0.03
15 100 1 0.01
The process is not out of the control because the points are within the control limits, the process is in the control.
iii, solution
Ft = W1(ft-1) + W2(ft-2) + W3(ft-3) + W4(ft-4) + W5(ft-5) + W6(ft-6) + W7(ft-7) + W8(ft-8) + W9(ft-9) + W10(ft-10) +
W11(ft-11) + W12(ft-12) + W13(ft-13) + W14(ft-14) + W15(ft-15)
Ft = 0.04(4) + 0.03(3) + 0.05(5) + 0(0) + 0.02(2) + 0.08(8) + 0.01(1) + 0.03(3) + 0.04(4) + 0.02(2) + 0.07(7)
+ 0.02(2) + 0.01(1) + 0.03(3) + 0.01(1) = 1.64
Month in thousands Advertising cost(X) In thousands sales revenue(Y) XY X2
1 4 10 40 16
2 10 40 400 100
3 15 50 750 225
4 12 40 480 144
5 8 30 240 64
6 16 40 640 256
7 5 20 100 25
8 7 10 70 49
9 9 40 360 81
10 10 20 200 100
3c,
N=10 , (∑x)=96, (∑y) =300 , (∑xy) =3280, ( ∑x2)=1060, (∑x)2=9216
A, b = n(∑xy) - (∑x) (∑y) = 10(3280) - (96) (300) = 2.89

n( ∑x2)- (∑x)2 10( 1060)- (9216)
a = (∑y) –b(∑x) = (300) –2.89(96) = 300-277.44 = 2.26
n 10 10
Yc = 2.26 +2.89x
B, Next month advertising budget to be $6000, the Equation Yc = 2.26 +2.89x But substituting the
value of 2.26 or $2260 by Next month advertising budget to be $6000 and at T= 11
Y(11) = ?
Y(11) = $6000 + 2.89× 1000× 11 = $37790 therefore the next monthly forecast sales volume is $37790

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Assignment (TMA) for the answer of Operation Management

Name Id BA- Center A.A

Sample Sample size Number of defects fraction defects

W11(ft-11) + W12(ft-12) + W13(ft-13) + W14(ft-14) + W15(ft-15)

+ 0.02(2) + 0.01(1) + 0.03(3) + 0.01(1) = 1.64

Month in thousands Advertising cost(X) In thousands sales revenue(Y) XY X2

A, b = n(∑xy) - (∑x) (∑y) = 10(3280) - (96) (300) = 2.89

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