Operations management

Individual Assignment 6: Chapter 11 and Chapter 12

Solutions
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Chapter 11

1. Which priority rule do you use in sequencing your homework? If you find that you have more homework
than there is time remaining to the end of term, which priority rule will result in your completing all
homework?

Solution:
Depend on student’s behavior. For me, I generally use FCFS at the beginning when I have few homework to
do. By the way, at the end or anytime that I have lots of homework to finish and the due dates have been
approached, I will switch to the EDD or Min. Slack rules.

2. The Taylor Machine Shop rebores engine blocks. Currently, five engine blocks are waiting for processing. At
any time, the company has only one engine expert on duty who can do this type of work. The engine
problems have been diagnosed, and processing times for the jobs have been estimated. Times have been
agreed upon with the customers as to when they can expect the work to be completed. The accompanying
table shows the situation as of Monday morning. As Taylor is open from 8 A.M. until 5 P.M. each weekday,
plus weekend hours as needed, the customers pickup times are measures are measured in business hours from
Monday morning. Determine the schedule for the engine expert by using (a) the EDD rule and (b) the SPT
rule. For each, calculate the average completion time, average tardiness, and number of tardy jobs. Which
rule seems to have a better result?
Engine Block Processing Scheduled Customer Pickup
time (hr.) Time (business hr. from now)
Ranger 8 10
Explorer 6 12
Bronco 15 20
Econoline 150 3 18
Thunderbird 12 22

Solution:
EDD Rule
Engine Block Begin Processing Completion Scheduled Tardiness Tardy Job
Time time (hr.) Time (hr.) Customer
Pickup Time
Ranger 0 8 8 10 0 No
Explorer 8 6 14 12 2 Yes
Econoline 150 14 3 17 18 0 No
Bronco 17 15 32 20 12 Yes
Thunderbird 32 12 44 22 22 Yes
Total 115 36 3
Average 115/5 = 23.0 36/5 = 7.2

SPT Rule
Engine Block Begin Processing Completion Scheduled Tardiness Tardy Job
Time time (hr.) Time (hr.) Customer
Pickup Time
Econoline 150 0 3 3 18 0 No
Explorer 3 6 9 12 0 No
Ranger 9 8 17 10 7 Yes
Thunderbird 17 12 29 22 7 Yes
Bronco 29 15 44 20 24 Yes
Total 102 38 3
Average 102/5 = 20.4 38/5 = 7.6

For average completion time, SPT seems to be better, but for average tardiness EDD is a better choice.
Chapter 12

5. How did lean production evolve into a system of continuous improvement?

Solution
Reducing inventory was the first step in eliminating waste in early lean systems. With no inventory to guard
against poor quality, late deliveries, and machine breakdowns, companies implementing lean production are
forced to improve their quality systems, supplier relationships, and preventive maintenance systems. In
addition, the pull system itself encourages continuous improvement. Inventory is held only to satisfy
demand during lead time (i.e., until a replacement order arrives). To reduce inventory further, one must
reduce lead time or the components of lead time, such as processing time, transit time, setup time, and
inspection time. Thus, lean production touches every area of operations.

6. How are the Kanban system and the reorder point system similar? How are they different?
Solution
In a reorder point system, a certain quantity, Q, is ordered whenever the stock on hand falls below a reorder point.
The reorder point is determined so that demand can be met while an order for new material is being processed.
Thus, the reorder point corresponds to demand during lead time. A kanban is a visual reorder point. When the
kanban arrives with an empty container, a new order needs to be placed. The kanban system and reorder point
system are different in that the quantity ordered and the reorder point are equivalent in the kanban system. (In
terms of the two-bin system, that means the first bin is eliminated.) With kanbans, an order for new material is
always outstanding.

7. How are suppliers affected by lean production?

Solution
Suppliers must deliver fewer orders more frequently. Quality expectations are higher. Partnerships with
producers mean longer-term contracts and competition based on more than price.
8. An assembly station is asked to process 100 circuit boards per hour. It takes 20 minutes to receive the
necessary components from the previous workstation. Completed circuit boards are placed in a rack that will
hold 10 boards. The rack must be full before it is sent on to the next station.
(a) If the factory uses a safety factor of 10%, how many kanbans are needed for the circuit board assembly
process?
(b) How many kanbans would be needed in each case? If:
(b-1) The demand is increased to 200 circuit boards per hour.
(b-2) The lead time for components is increased to 30 minutes.
(b-3) The rack size is halved.
(b-4) The safety factor is increased to 20%.

Solution
(a) d = 100 units per hour
L = 20 min. = 20/60 = 0.33 hr
C = 10
α = 10% = 0.10
N = [d L (1 + α)] / C = [100  0.33 (1+ 0.10)] / 10 = 3.63 → round up to 4 kanbans
(b-1) d = 200 units per hour
L = 20 min. = 20/60 = 0.33 hr
C = 10
α = 10% = 0.10
N = [d L (1 + α)] / C = [200  0.33 (1+ 0.10)] / 10 = 7.26 → round up to 8 kanbans
If d increases, number of kanbans increases.
(b-2) d = 100 units per hour
L = 30 min. = 30/60 = 0.50 hr
C = 10
α = 10% = 0.10
N = [d L (1 + α)] / C = [100  0.50 (1+ 0.10)] / 10 = 5.50 → round up to 6 kanbans
If L increases, number of kanbans increases.
(b-3) d = 100 units per hour
L = 20 min. = 20/60 = 0.33 hr
C=5
α = 10% = 0.10
N = [d L (1 + α)] / C = [100  0.33 (1+ 0.10)] / 5 = 7.26 → round up to 8 kanbans
If C decreases, number of kanbans increases.
(b-4) d = 100 units per hour
L = 20 min. = 20/60 = 0.33 hr
C = 10
α = 20% = 0.20
N = [d L (1 + α)] / C = [100  0.33 (1+ 0.20)] / 10 = 3.96 → round up to 4 kanbans
If α increases, safety stock increase and number of kanbans tends to increases. (But actual number of
kanbans remains the same in this case due to round up procedure.)