Professor Blake OPM 101 Name__________________________

Spring 2009

EXAMINATION 2, Version A

Use a Scantron Form No. 886-E to record your choice of the best answer to each of the
following questions. You have the full period to answer the questions.

The following questions are worth three (3) points each.

1. JIT considers waste anything that

a) Fits in a waste basket
b) Reduces production capacity
c) Has been discarded
d) Cannot be recycled
e) Does not add value

2. Which of the following is characteristic of the JIT philosophy?

a) Inventories are an asset
b) Lot sizes are optimized by formula
c) Tolerate some scrap
d) Elimination of waste
e) Rigidity

3. Three basic elements work together to complete a JIT system: just-in-time manufacturing, total quality
management, and
a) Quality circles
b) Pull production
c) Minimizing inventory
d) Respect for people
e) Full utilization of capacity

4. Which is typically the most difficult data pattern to predict?

a) Horizontal
b) Trend
c) Level
d) Seasonality
e) Cycle

5. What is the mean absolute deviation of the following forecasts?

Month Actual Sales Forecast Abs. Deviation
Jan. 614 600 14
Feb. 480 480 0
Mar. 500 550 50
Apr. 500 600 100
a) 3174 164
b) 164
c) 41 MAD: 164÷4=41
d) 136
e) -34

6. The maximum output rate that can be achieved by a facility under ideal conditions is _________________.
a) utilization
b) design capacity
c) effective capacity
d) ultimate capacity
e) temporary capacity
7. Long-term capacity requirements are identified on the basis of ________________________________.

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Professor Blake OPM 101 Name__________________________
Spring 2009

a) the current trend of the economy

b) the expected lifetime of the facility
c) demographic factors
d) forecasts of future demand
e) future political events

8. Service organizations such as restaurants, movie theaters, and banks focus on locating near ____________.
a) suppliers
b) roads
c) intersections
d) their customers
e) potential workers

9. The load-distance model frequently utilizes distance, which is the shortest distance between two
points using only north-south and east-west movements.
a) curvilinear
b) Euclidean
c) rectilinear
d) direct
e) vertical

10. A job shop is most likely to use which layout type?

a) inverted
b) hybrid
c) process
d) fixed position
e) product

11. Building construction is an example of which layout type?

a) inverted
b) hybrid
c) process
d) fixed position
e) product

12. What is the term for the number of units we wish to produce over a specific period of time?
a) job flow
b) output rate
c) cycle time
d) output flow
e) flow time

13. What is the longest task in a process called?

a) obstruction
b) bottleneck
c) blockade
d) hindrance
e) constrainer

14. What occurs when a customer decides not to enter the waiting line?
a) balking
b) walking
c) reneging
d) vacillating
e) jockeying

15. Customers generally consider which of the following priority rules to be the fairest?

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Professor Blake OPM 101 Name__________________________
Spring 2009

a) quickest service requirements first

b) longest service requirements first
c) first-come, first-served
d) best customers first
e) highest profit customer first

16. What is the approach to job design which involves an increase in responsibility for work planning and/or
inspection?
a) job enlargement
b) job rotation
c) job enrichment
d) job involvement
e) job enhancement

17. The time is the time it should take a qualified operator, working at a sustainable pace and using the
appropriate tools and process, to do the job.
a) performance
b) observed
c) normal
d) standard
e) ideal

18. When performing a time study, the analyst converts the observed time into the time an "average" worker would
require working at an acceptable pace by using which of the following?
a) allowance factor
b) mean time modulation
c) methods analysis
d) performance rating factor
e) analysis of efficiency

19. By focusing on value-added processes, JIT is able to achieve high-volume production of high-quality, low-cost
products.
a) True
b) False

20. Forecasts are more accurate for individual items than for groups or families of items.
a) True
b) False

21. Capacity planning is complicated by the fact that capacity is usually purchased in chunks, rather than smooth
increments.
a) True
b) False

22. In product layouts, the material moves continuously and uniformly through a series of workstations until the
product is completed.
a) True
b) False

23. A single-line service system eliminates jockeying behavior.

a) True
b) False

24. In a time study, personal time, fatigue, and unavoidable delays (PFD) during the typical work day are accounted
for in the allowance factor.
a) True
b) False

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Professor Blake OPM 101 Name__________________________
Spring 2009

The following problems are worth ten (10) points each.

1. Hoops, Inc. produces videos on the art of shooting in basketball. The firm has experienced the following
demand for the most recent four months.

Month Demand Forecast Ft+1 = At + (1-α)Ft

Mar. 10,000 8,000
Apr. 2,000 8,800 FAPR=.4*10,000+.6*8,000=8,800
May 20,000 6,080 FMAY=.4*2,000+.6*8,800=6,080
June 30,000 11,648 FJUN=.4*20,000+.6*6,080=11,648
July 18,988.8, ~18,989 FJUL=.4*30,000+.6*11,648=18,988.8

Prepare an exponential smoothing forecast for July, using an  value of .40. Initiate the process by assuming
that the forecast for March is 8,000 units. 18,988.8 or 18,989

2. Aamedco plans to open a new medical center and is looking for a suitable location. They have narrowed their
choice down to three locations, on Oak, Elm, and Ash Streets. They have defined four factors and have assigned
weights to these factors as follows: proximity to hospitals (40), customer parking (30), appearance (20), and ease
of expansion (10). They then rated the three locations for the four factors, using a scale of one to five. Their
ratings are as follows:

Location
Oak Score Elm Score Ash Score
Factor Weight
Proximity to hospitals 40 2 80 5 200 3 120
Customer parking 30 5 150 1 30 3 90
Appearance 20 4 80 2 40 5 100
Ease of expansion 10 3 30 4 40 1 10
100 340 310 320
(a) Calculate the scores for each location. OAK: 340, ELM: 310, ASH: 320
(b) According to the model which location should they choose? Choose OAK as it has the highest score

3. The reference desk of a university library receives requests for assistance. Assume that a Poisson probability
distribution with a mean rate of 10 requests per hour can be used to describe the arrival pattern and that service
times follow the exponential probability distribution, with a mean service rate of 12 requests per hour.
λ = 10 requests/hour μ = 12 requests per hour ρ = λ / μ = 10/12 = .833
a) What is the average number of requests that will be waiting for service?
LQ = ρ*L L = λ/ μ- λ = 10/12-10 =5 requests
LQ = .833 * 5 = 4.17 requests
b) What is the average waiting time in minutes before service begins?
WQ = ρ*W W = 1/ μ- λ = 1/12-20 = .5 hours or 30 minutes
WQ = .833 * .5 = .42 hours or 25 minutes
c) What is the average time at the reference desk in minutes (waiting time plus service time)?
W = 1/ μ- λ = 1/12-10 = .5 hours or 30 minutes
d) Suppose that a “super” librarian can be hired who can handle 16 requests per hour. Now what is the
average waiting time in minutes before service begins?
λ = 10 requests/hour μ = 16 requests per hour ρ = λ / μ = 10/16 = .625
W = 1/ μ- λ = 1/16-10 = .1666 hours or 10 minutes
WQ = ρ*W WQ = .625 * .1666 = .10417 hours or 6.25 minutes

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Professor Blake OPM 101 Name__________________________
Spring 2009

Formulas--Examination 2

Chapter 7: JIT
DT  S
Kanbans: N  N—no. of kanbans, D—demand rate, T—lead time, S—safety stock, C—container size
C
Chapter 8: Forecasting
Naïve: Ft+1 = At
 At
Moving average: Ft 1  [n – number of periods to be used]
n
Weighted moving average: Ft 1   C t A t [Ct – weight for period t]
Exponential smoothing: Ft 1  αA t  1  α Ft or Ft 1  Ft  α A t  Ft 
 XY  n X Y
Linear regression: Y = a + bx b 2
a  Y  bX
 X 2  nX
(actual  forecast) 2  actual  forecast
Forecast error: At – Ft MSE  MAD 
n n
 actual  forecast 
Tracking_s ignal 
MAD
Note: Ft is the forecast and At is the actual in period t

Chapter 9: Capacity Planning and Facility Location

actual_output actual_output
Utilization effective  100% Utilization design  100%
effective_capacity design_capacity

l x l y
l d
i i i i
ld  X c.g.  Yc.g. 
l l
ij ij
i i

Chapter 10: Facility Layout

available_ time
C ; C  cycle_time
output
available_ time
Output 
output
available_ time
Maximum_ou tput 
minimum_cy cle_time_(bottleneck )

TM 
 t ; TM  theoretical_min.# workstations; t  total_task_time
C

Efficiency(%) 
 t (100); N  number_wor kstations
NC
Balance_de lay(%)  100% - efficiency

Supplement D: Waiting Lines

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Professor Blake OPM 101 Name__________________________
Spring 2009

λ
ρ ; average_sy stem_utili zation
μ
λ
L ; average_# customers_ in_system
μλ
L Q  ρL; average_# customers_ waiting_in _line
1
W ; average_ti me_in_syst em
μλ
WQ  ρW; average_ti me_in_line
Pn  (1  ρ)ρn ; probabilit y_n_custom ers_in_system