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Operations Management 6Th Edition Reid Solutions Manual Full Chapter PDF
Operations Management 6Th Edition Reid Solutions Manual Full Chapter PDF
1. Given the following information, determine the sample size needed if the standard time
estimate is to be within 5 percent of the true mean 97 percent of the time.
Answer:
With z = 2.17 and a = 0.05, the number of observations needed for each work element is:
2
2.17 0.20
Work element 1: n = 63
0.05 1.10
2
2.17 0.10
Work element 2: n = 30
0.05 0.80
2
2.17 0.15
Work element 3: n = 53
0.05 0.90
2
2.17 0.10
Work element 4: n = 19
0.05 1.00
2. Using the information in Problem 1, determine the sample size needed if the standard
time estimate is to be within 5 percent of the true mean 99 percent of the time.
Answer:
With z = 2.58 and a = 0.05, the number of observations needed for each work element is:
2
2.58 0.20
Work element 1: n = 89
0.05 1.10
2
2.58 0.10
Work element 2: n = 42
0.05 0.80
2
2.58 0.15
Work element 3: n = 74
0.05 0.90
2
2.58 0.10
Work element 4: n = 27
0.05 1.00
3. Using the following information, determine the sample size needed if the standard time
estimate is to be within 5 percent of the true mean 95 percent of the time.
Answer:
With z = 1.96 and a = 0.05, the number of observations needed for each work element is:
2
1.96 0.60
Work element 1: n = 97
0.05 2.40
2
1.96 0.20
Work element 2: n = 28
0.05 1.50
2
1.96 1.10
Work element 3: n = 126
0.05 3.85
2
1.96 0.85
Work element 4: n = 171
0.05 2.55
2
1.96 0.40
Work element 5: n = 97
0.05 1.60
2
1.96 0.50
Work element 6: n = 62
0.05 2.50
4. Using the information in Problem 3, calculate the sample size needed if the standard time
estimate is to be within 5 percent of the true mean 99 percent of the time. Calculate the
percentage increase in sample size for the higher precision.
Answer:
With z = 2.58 and a = 0.05, the number of observations needed for each work element is:
2
2.58 0.60
Work element 1: n = 167
0.05 2.40
2
2.58 0.20
Work element 2: n = 48
0.05 1.50
2
2.58 1.10
Work element 3: n = 218
0.05 3.85
2
2.58 0.85
Work element 4: n = 296
0.05 2.55
2
2.58 0.40
Work element 5: n = 167
0.05 1.60
2
2.58 0.50
Work element 6: n = 107
0.05 2.50
Use the following information from the Arkade Company for Problems 5–10.
Answer:
6. The Arkade Company has decided to use a 15 percent allowance factor based on job time.
Calculate the standard time for each work element and for the total job.
Answer:
ST = (NT)(AF), where AF = 1 + PFD = 1 + 0.15 = 1.15
7. Based on the standard time calculated in Problem 6, how many units should an employee
operating at 100 percent of standard complete during an eight-hour workday?
Answer:
Answer:
1 1
ST = (NT)(AF), where AF = = = 1.176
1 PFD 1 0.15
Work Element Standard Time (ST)
1 (1.14)(1.176) = 1.341
2 (0.85)(1.176) = 1.000
3 (0.88)(1.176) = 1.035
4 (0.99)(1.176) = 1.164
9. Based on the standard time calculated in Problem 8, how many units should an employee
operating at 100 percent of standard complete during an eight-hour workday?
Answer:
From Problem 8, the sum of the standard times is 4.540 minutes.
10. Compare the two standards calculated in Problems 6 and 8. What other factors should be
considered in selecting the method for determining the allowance factor?
Answer:
The standard time for the total job is greater when the 15 percent allowance factor is
based on time worked. Some of the factors that should be considered in selecting the
method for determining the allowance factor are the jobs similarities and whether they
have the same allowance factors. The allowance factor by time worked is better for jobs
with the same PFD allowances.
11. Jake’s Jumbo Jacks has collected the following information to develop a standard time for
building jumbo jacks.
Answer:
a)
Element Mean Observed Time
1 2.194
2 1.265
3 1.771
4 2.608
5 1.576
b)
Element Normal Time (NT)
1 (2.194)(0.9)(1) = 1.975
2 (1.265)(0.8)(1) = 1.012
3 (1.771)(1.10)(1) = 1.948
4 (2.608)(1.05)(1) = 2.738
5 (1.576)(0.95)(1) = 1.497
= 5.45 units/hour
12. Frank’s Fabricators has collected the following information to develop a standard time for
producing their high-volume Navigator III, a universal remote control. All of the times
are in minutes.
Element
Observations 1 2 3 4 5 6
Cycle 1 1.10 3.00 0.92 1.23 1.46 1.80
Cycle 2 1.08 0.88 1.30 1.64 1.78
Cycle 3 1.15 3.20 0.85 1.26 1.55 1.76
Cycle 4 1.16 0.88 1.33 1.52 1.80
Cycle 5 1.07 3.10 0.90 1.28 1.62 1.82
Cycle 6 1.10 0.94 1.30 1.60 1.82
Rating factor 0.95 0.90 1.05 1.00 0.85 1.10
Frequency 1.00 0.50 1.0 1.0 1.0 1.0
Answer:
a)
Element Mean Observed Time
1 1.110
2 3.10
3 0.895
4 1.283
5 1.565
6 1.797
b)
Element Normal Time (NT)
1 (1.110)(0.95)(1) = 1.055
2 (3.10)(0.90)(0.5) = 1.395
3 (0.895)(1.05)(1) = 0.940
4 (1.283)(1.00)(1) = 1.283
5 (1.565)(0.85)(1) = 1.330
6 (1.797)(1.10)(1) = 1.976
g) The standard time for element 6 becomes 1.8975 minutes. The new standard time for
the Navigator III is 8.80 minutes/unit.
h) Since 0.377 minutes/unit is saved when using the new process, the total time saved for
20,000 Navigator IIIs each month is equal to 0.377(20,000) = 7540 minutes or 125
hours.
13. The following information is provided to you for each of five elements performed in
building the Aviator model, a basic universal remote control.
Answer:
a)
Element Normal Time (NT)
1 (0.96)(0.96)(1) = 0.9216
2 (3.10)(0.90)(0.5) = 1.595
3 (0.895)(1.05)(1) = 1.110
4 (1.283)(1.00)(1) = 1.116
5 (1.565)(0.85)(1) = 1.239
1 1
b) ST = (NT)(AF), where AF = = = 1.176
1 PFD 1 0.15
14. You have 25 observations of university policeman Sgt. Jack B. Nimble during his normal
workday. The results are shown here. Assume that the estimated proportion is to be
within 5 percent of the true proportion 95 percent of the time.
a) Based on your preliminary observations, how many total observations do you need to
estimate the proportion of time Sgt. Nimble spends doing paperwork?
b) How many total observations do you need to estimate the proportion of time Sgt.
Nimble spends on the phone?
c) How many total observations do you need to estimate the proportion of time Sgt.
Nimble seems to be unavailable?
Answer:
a) Based on the preliminary observations, the estimate of the proportion of time Sgt.
Nimble spends doing paperwork is 0.36 (9 observed times/25 observations taken).
2
1.96
n= (0.36)(1 – 0.36) = 355 observations
0.05
b) Based on the preliminary observations, the estimate of the proportion of time Sgt.
Nimble spends on the phone is 0.12 (3 observed times/25 observations taken).
2
1.96
n= (0.12)(1 – 0.12) = 163 observations
0.05
c) Based on the preliminary observations, the estimate of the proportion of time Sgt.
Nimble seems to be unavailable is 0.16 (4 observed times/25 observations taken).
2
1.96
n= (0.16)(1 – 0.16) = 207 observations
0.05
Answer:
a)
b)
Element Normal Time (NT)
1 (0.582)(0.95)(1) = 0.553
2 (1.515)(0.90)(0.25) = 0.341
3 (0.759)(1.0)(1) = 0.759
4 (0.319)(1.10)(1) = 0.351
5 (1.565)(0.90)(0.20) = 0.378
16. As a class project you have been asked to project the proportion of time a professor
spends on various activities. You have decided to use the work-sampling method. Your
initial observations are shown.
You are instructed that your estimates are to be within 5 percent of the true value with 97
percent confidence (z = 2.17).
a) Based on your initial observations, how many total observations are needed to
estimate the proportion of time the professor spends on each activity?
Answer:
a) Based on the preliminary observations, the estimate of the proportion of time the
professor spends grading is 0.10 (4 observed times/40 observations taken).
2
2.17
n= (0.10)(1 – 0.10) = 170 observations
0.05
Based on the preliminary observations, the estimate of the proportion of time the
professor spends doing administrative paperwork is 0.15 (6 observed times/40
observations taken).
2
2.17
n= (0.15)(1 – 0.15) = 241 observations
0.05
Based on the preliminary observations, the estimate of the proportion of time the
professor spends preparing for class is 0.125 (5 observed times/40 observations
taken).
2
2.17
n= (0.125)(1 – 0.125) = 207 observations
0.05
Based on the preliminary observations, the estimate of the proportion of time the
professor spends teaching class is 0.125 (5 observed times/40 observations taken).
2
2.17
n= (0.125)(1 – 0.125) = 207 observations
0.05
Based on the preliminary observations, the estimate of the proportion of time the
professor spends meeting with student(s) is 0.20 (8 observed times/40 observations
taken).
2
2.17
n= (0.20)(1 – 0.20) = 302 observations
0.05
Based on the preliminary observations, the estimate of the proportion of time the
professor spends on the phone is 0.05 (2 observed times/40 observations taken).
2
2.17
n= (0.05)(1 – 0.05) = 90 observations
0.05
Based on the preliminary observations, the estimate of the proportion of time the
professor spends working on research is 0.15 (6 observed times/40 observations
taken).
2
2.17
n= (0.15)(1 – 0.15) = 241 observations
0.05
Based on the preliminary observations, the estimate of the proportion of time the
professor is unavailable is 0.10 (4 observed times/40 observations taken).
2
2.17
n= (0.10)(1 – 0.10) = 170 observations
0.05
b) The proportion of time the professor spends teaching class is 30/302 = 9.9%.
c) The proportion of time the professor spends working on research is 45/302 = 14.9%.
d)
Activity Observed Time spent (hours)
Grading (30/302)(54) = 5.36
Administrative paperwork (50/302)(54) = 8.94
Preparing for class (30/302)(54) = 5.36
Teaching class (30/302)(54) = 5.36
Meeting with student(s) (66/302)(54) = 11.80
On the phone (17/302)(54) = 3.04
Working on research (45/302)(54) = 8.05
Unavailable (34/302)(54) = 6.08
17. Your 20 observations of Dr. Knowitall reveal the following information. Assume that the
estimate is to be within 5 percent of the true proportion 95 percent of the time.
Away on emergency 4
Not available 4
a) Calculate the sample size needed to estimate the proportion of time Dr. Knowitall
spends away on emergencies.
b) Calculate the sample size needed to estimate the proportion of time Dr. Knowitall
spends reviewing test results.
c) Calculate the minimum number of observations that must be made to complete the
work-sampling analysis.
Answer:
a) Based on the preliminary observations, the estimate of the proportion of time Dr.
Knowitall spends away on emergencies is 0.20 (4 observed times/20 observations
taken).
2
1.96
n= (0.20)(1 – 0.20) = 246 observations
0.05
b) Based on the preliminary observations, the estimate of the proportion of time Dr.
Knowitall spends reviewing test results is 0.15 (3 observed times/20 observations
taken).
2
1.96
n= (0.15)(1 – 0.15) = 196 observations
0.05
18. You need to develop a labor time estimate for a customer order of 20 network
installations. It is estimated that the first installation will require 60 hours of labor, and a
learning curve of 90 percent is expected.
a) How many labor-hours are required for the fifteenth installation?
b) How many labor-hours are required for the twentieth installation?
c) How many labor-hours are required to complete all 20 installations?
d) If the average labor cost is $32.00, what is the total labor cost for installing the
networks?
Answer:
a) T = 60 hours, and the coefficient from Table 11-9 is 0.663.
Number of labor-hours = 60(0.663) = 39.78 hours
19. Students in an operations management class have been assigned six similar computer
homework problems. Alexis needed 40 minutes to complete the first problem. Assuming
an 80 percent learning curve, how much total time will Alexis need to complete the
assignment?
Answer:
T = 40 minutes, n = 6, total learning curve coefficient = 4.299
Total time = 40(4.299) = 171.96 minutes, or 2.87 hours.
20. Your company has received an order for 20 units of a product. The labor cost to produce
the item is $9.50 per hour. The setup cost for the item is $60 and material costs are $25
per unit. The item is sold for $92. The learning rate is 80 percent. Overhead is assessed at
a rate of 55 percent of unit labor cost.
a) Determine the average unit cost for the 20 units if the first unit takes four hours.
b) Determine the minimum number of units that need to be made before the selling price
meets or exceeds the average unit cost.
Answer:
a) n =20, total learning curve coefficient = 10.485
b) If Total Revenue ≥ Total Cost, the selling price per unit exceeds the average unit cost.
92n ≥ 60 + 25n + 1.55(9.5)(4)(total learning curve coefficient for n)
More simply, 67n – 60 = 58.9 (total learning curve coefficient); While several
approaches may be taken from here, the simplest may be by trial and error. The
production becomes profitable at n = 4.
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