1- Develop a bill of materials, an assembly chart, and an operation process chart for a

cheeseburger with everything on it. Identify the components that are purchased and the ones
that are prepared internally.

Bill of materials

Company: Company ABC

Prepared by: Mr. Ferasaldwaik
Product: cheeseburger
Part No. Name of Ingredients Quantity Prepared internally or purchased
1 Mayo 1 purchased
2 Ketchup 1 purchased
3 Mustard 1 purchased
4 Lettuce 1 purchased
5 Tomato 1 purchased
6 onions 1 purchased
7 Bun 1 purchased
8 swiss cheese 1 purchased
9 Regular pickles 1 prepared internally
10 Tartar 1 prepared internally
11 American cheese 1 purchased

Assembly chart

Operation process chart

2- Consider a simple three-step manufacturing process as illustrated in the given figure. Assuming
that demand is 1,000 units, what is the required input to meet demand? Assume that the scrap
cost is $5 at process 1, $10 at process 2, and $15 at process 3. The defective rates are 3%, 5%,
and 7%, respectively. Compute the total scrap cost for the given system.

Solution
Since the rate of defectives is provided, the process output is equal to the product of the input units and
(1-defective rate).

Process output= Input*(1-defective rate).

The output of process 1=I 1∗( 1−3 % )=0.97 I 1

The input of process two becomes the output of process 1 and defective rate of process two is 5%.

, and therefore the output of process is given by

The output of process 2=0.97 I 1*(1-5%)=0.97*0.95 I 1

Output of process two becomes the input of the third process and defective rate of process three is 7%.

The output of process 3=¿ 0.97*0.95 I 1*(1-7%)=0.93*0.95*0.97 I 1=0.856995 I 1

The demand is 1000 units , that means that output 3 is 1000 units

Therefore input at the process 1 will can computed as;

0.856995 I 1 =100 0

100 0
I 1= =1166.87 units
0.856995
Therefore the needed input to be meeting the demand of 1000 units is 1167 units.

The scrap cost is computed as the amount of defectives in each process multiplied by scrap cost in each
process.

Scrap cost for process 1= (1167*3%)*$5=35*5=$175

Scrap cost for process 2=( 1167-35)*5%*$10=1132*5%= 56*10=$ 560

Scrap cost for process 3=( 1132-56)*7%*$10=1076*7%*$15=76*15=$1140

Total scrap cost=175+560+1140= $1875

3. Given the figure below, operation 4 represents a rework operation on parts that fail inspection
upon completion of operation 2. How many units must the process start with in order to meet
the required output of 5000 units?
Solution

We start be determining the reliability of the system

Reliability of component 1=1−5 %=0.95

Reliability of component 2=1−5 %=0.95
Reliability of component 4=1−2%=0.98
Reliability of component 3=1−10 %=0.90
Component 2 and 4 are parallel , therefore their combined reliability =1-(1-0.95)*(1-0.98)=1-
0.001=0.999

The reliability of the entire system =0.95*0.999*0.90=0.854145

Let the number of units at start be k, then

0.854145k=5000

5000
K= =5853.81 ≈ 5854 units
0.854145
4. How should a project manager decide which problems (or potential problems) deserve being
reported to management and which are not worth the trouble when attempting to "never
surprise the boss."
Solution

Any problem that will likely impact the project’s completion date, budget, or
performance should be reported to management.
However, problems that can be resolved internally by the project manager and
project team that will not impact the project’s completion date, budget or
performance need not be reported formally.