Operations Management 1st Edition

Cachon Solutions Manual

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CHAPTER 5
PROCESS ANALYSIS WITH MULTIPLE FLOW UNITS

CONCEPTUAL QUESTIONS

1.
C. 6

2.
A. 2

3.
A. True

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4.
B. False.
This really depends on the available capacity.

5.
B. False.
When demand exceeds capacity, the implied utilization is bigger than 100%.

6.
A. True

7.
C. 40 / 0.5 = 80 units per day

8.
B. 100%

9.
B. False.
We have to also look at the demand matrix.

10.
C. The yield decreases.

11.
D. Minutes or hours of work

12.
A. True

13.
A. True

14.

B. False

15.

D. Scrap is a special case of rework in which flow units have to repeat all resources in
the process up to the defect.

16.
A. True
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PROBLEMS AND APPLICATIONS

1.

(a)

Answer: 50 per week

(b)

Answer: 10 per week

(c)

Answer: 40 per week

Feedback: We use the first two steps from Figure SUM1.

Step 1: Compute the demand matrix

(Group 1) (Group 2)
(Administrator) 0.2 * 50 0.8 * 50
D= (Senior ac.) 0.2 * 50 0
(Junior ac.) 0 0.8 * 50

Step 2: Compute the total demand rates, which are 50 per week for the administrator,
10 for the senior accountant, and 40 for the junior accountant.

2.

(a)
Answer: Administrator

Feedback: We continue with Step 3 in Figure SUM1.

Step 3: We compute the capacity levels as follows:
Administrator: 1/20 units / minute = 3 units per hour = 120 units per week
Senior accountant: 1/40 units / minute = 1.5 units per hour = 60 units per week
Junior accountant: 1/15 units / minute = 4 units per hour = 160 units per week

Step 4: The levels of implied utilization are:

Administrator: 50 units per week / 120 units per week = 0.4166

Senior accountant: 10 units per week / 60 units per week = 0.1667
Junior accountant: 40 units per week / 160 units per week = 0.25
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 So the administrator is the bottleneck.

(b)
Answer: The flow rate 10 new cases per week and 40 repeat customers per
week; the capacity for new customers is 24 cases per week and for repeat
customers is 96 cases per week

Feedback: Step 5: The process is demand constrained and thus the flow rates are the
demand rates, 10 new cases per week and 40 repeat customers per week.

The capacity levels are found by dividing the demand rates by the highest implied
utilization. Thus, the capacity of this process with a 20:80 mix would be:

New customers: 10 / 0.4166 = 24 cases per week

Repeat customers: 40 / 0.4166 = 96 cases per week

3.

(a)
Answer: The written exam

Feedback: We follow the 4-step process outlined in Figure SUM2.

Step 1: We find the demand matrix by starting with one good unit (a student that
passes). Given the 40% failure rate, we need 1 / 0.6 = 1.67 students to take the road
exam to get one succeed. In the same way, we compute that we need 1.667/ 0.85 =
1.96 students to take the written exam, and 1.96 / 0.9 = 2.18 students to show up. So
the demand matrix is:

(ID) (2.18)
D= (Written) (1.96)
(Road) (1.67)

Step 2: The capacity levels are simply computed as the number of workers divided by
the processing times:
Capacity(ID) = 4/5 units / minute = 384 units per day
Capacity(Written) = 2/3 units / minute = 320 units per day
Capacity(Road) = 15/20 units / minute = 360 units per day

Step 3: Compute the levels of implied utilization

IU(ID) = 2.18 / 0.8 = 2.72
IU(Written) = 1.96 / 0.67 = 2.94
IU(Road) = 1.67 / 0.75 = 2.22
So the bottleneck is at the written exam.
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(b)
Answer: 163 good units per day

Feedback: Step 4: Find the capacity of the process in terms of good units by dividing
1 good unit of output by the highest implied utilization:

Capacity(ID) = 1 / 2.94 = 0.34 good units per minute = 163.2 good units per day

4. We use the 5-step process outlined in Figure SUM3.

(a)
Answer: Resource 3

Feedback: Step 1: Compute the work-load matrix

(Type A) (Type B) (Type C)

(Resource 1) (40 * 5 50 * 5 60 * 5)
(Resource 2) (40 * 4 50 * 4 60 * 5)
WL = (Resource 3) (40 * 15 0 0)
(Resource 4) (0 50 * 3 50 * 3)
(Resource 5) (40 * 6 50 * 6 40 * 4)

Step 2: Add up the work-loads for each resource:

Resource 1: 750 minutes per day
Resource 2: 660 minutes per day
Resource 3: 600 minutes per day
Resource 4: 300 minutes per day
Resource 5: 700 minutes per day

Step 3: Compute the available time per day at each resource

Resource 1: 2 * 480 = 960 minutes per day
Resource 2: 2 * 480 = 960 minutes per day
Resource 3: 1 * 480 = 480 minutes per day
Resource 4: 1 * 480 = 480 minutes per day
Resource 5: 2 * 480 = 960 minutes per day

Step 4: Compute the implied utilization levels as demand rate in minutes of work
divided by the available time in minutes of work:
Resource 1: 750 minutes per day / 960 minutes per day = 0.78
Resource 2: 660 minutes per day / 960 minutes per day = 0.69
Resource 3: 600 minutes per day / 480 minutes per day = 1.25
Resource 4: 300 minutes per day / 480 minutes per day = 0.625

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 Resource 5: 700 minutes per day / 960 minutes per day = 0.73

Resource 3 is the bottleneck because it has the highest implied utilization.

(b)
Answer: The flow rate for A is 32 units per day; B is 40 units per day; and C is 48
units per day.

Feedback: Step 5: The process is capacity constrained. So we have to divide all flows
by 1.25:
Flow A = 40 / 1.25 = 32 units per day
Flow B = 50 / 1.25 = 40 units per day
Flow C = 60 / 1.25 = 48 units per day

5. We use the framework outlined in Figure SUM4.

(a)
Answer: Step 3

Feedback: Step 1: We compute the work-load matrix

Good Rework
1 (0.7 * 5 0.3 * [5 + 5])
2 (0.7 * 6 0.3 * [6 + 6])
WL = 3 (0.7 * 3 0.3 * [3 + 3])
4 (0.7 * 4 0.3 * 4)
Step 2: This gives us a total work-load for one good unit for each of the resources as
follows:
Resource 1: 0.7 * 5 + 0.3 * [5 + 5] = 6.5 minutes per good unit
Resource 2: 0.7 * 6 + 0.3 * [6 + 6] = 7.8 minutes per good unit
Resource 3: 0.7 * 3 + 0.3 * [3 + 3] = 3.9 minutes per good unit
Resource 4: 0.7 * 4 + 0.3 * 4 = 4 minutes per good unit

Step 3: The available time at each resource corresponds to 60 minutes per hour.

Step 4: This gives us the following implied utilizations:

Implied utilization (Resource 1) = 6.5 / 60 = 0.11

Implied utilization (Resource 2) = 7.8 / 60 = 0.13

Implied utilization (Resource 3) = 3.9 / 60 = 0.065

Implied utilization (Resource 4) = 4 / 60 = 0.0667

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 Thus, step 3 is the bottleneck and the highest implied utilization is 0.13.

(b)

Answer: 7.69 good units per hour

Feedback: Step 5: Compute the capacity as 1 good unit per hour / 0.13 = 7.69 good
units per hour.

CASE

The process flow diagram looks as follows:

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Let M be the total number of passengers arriving and p be the amount of time spent with
the CBP officer in the traditional process for a US citizen / permanent resident.

For the 80-10-10 mix, the total work load on the CBP officers would be:
Traditional Process: 0.8*M * (0.5* p + 0.5 * 2p) = 0.8 * M * 1.5 p = 1.2 Mp

NEXUS Process: + 0.1 * M * (0.95* 0 + 0.025 p + 0.025 * 2p) = 0.1 * M * 0.075p = 0.0075
Mp

New Kiosk Process: + 0.1 * M * ( 0.5* 0.5*p + 0.5 * p) = 0.1 * M * 0.75p = 0.075 Mp

TOTAL = 1.2825 Mp

For the 70-10-20 mix, the total work load on the CBP officers would be:

Traditional Process: 0.7*M * (0.5* p + 0.5 * 2p) = 0.7 * M * 1.5p = 1.05 Mp

NEXUS Process: + 0.1 * M * (0.95* 0 + 0.025 p + 0.025 * 2p) =0.1 * M * 0.075p = 0.0075 Mp

New Kiosk Process: + 0.2 * M * ( 0.5* 0.5*p + 0.5 * p) = 0.2 * M * 0.75p = 0.15 Mp

TOTAL = 1.2075 Mp

Reduction in workload for CBP officer: 1.2075 Mp / 1.2825 Mp = 0.94152 => a little less
than six percentage reduction in work-load

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