Exam 2 Operations Management Essay

2664 Words Feb 28th, 2012 11 Pages
Exam 2
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The objective of strategic capacity planning is to provide an approach for determining the overall capacity level of labor-intensive resources.

| False |
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Best operating level is the volume of output at which average unit cost is minimized.

| True | 4. award: 10 out of
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Overtime and personnel transfers are solutions to capacity problems in the intermediate term.

| False |
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Capacity flexibility means having the ability to rapidly increase or decrease production levels, or to shift production capacity quickly from one product or service to another.

| True |
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Top of Form27.award:
50 out of
100 points Francis Johnson's plant needs to design an efficient assembly line to make a new product. The assembly line needs to produce 6 units per hour and there is room for only four workstations. The tasks and the order in which they must be performed are shown in the following table. Tasks cannot be split, and it would be too expensive to duplicate any task. | TASK | TASK TIME
(MINUTES) | IMMEDIATE
PREDECESSOR | A | 2 | — | B | 3 | — | C | 8 | — | D | 5 | A-B-C | E | 5 | C | F | 2 | E | G | 4 | E | | Required: | (a) | What is the workstation cycle time? | Cycle time | 29 minutes per unit | (b) | Balance the line using the largest number of following tasks, so that only four workstations are required. Use the longest task time as a secondary criterion. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.) | Work station | Task | Idle time | I | C-A | 0 | II | E-B | 2 | III | D-F | 1 | IV | G | 3 | | (c) | What is the efficiency of your line balance? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) | Efficiency | 1.81 % |

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