MGT 3900 Exam 2 QUESTIONS AND ANSWERS/ STUDY NOTES

MGT 3900 Exam 2 QUESTIONS AND ANSWERS/ STUDY NOTES Questions: 1. There can be no more than two firms on the efficient frontier. False 2. If the takt time is shorter than the cycle time, the process needs to run faster. True 3. When an operation improves its efficiency, its revenue will always stay constant while its costs will go down. False. 4. You and three of your friends run a car wash for a fundraiser. Between interior and exterior cleaning, you spend about 40 minutes per vehicle. You are so successful that the next day, you invite four more friends to help. How does this impact the labor content? The labor content stays the same. 5. The capacity of a nonbottleneck resource is the capacity of the process. Larger than. 6. The of a resource is how long that particular resource takes to complete one flow unit. Processing time. 7. A resource with a utilization of less than 100% is never the bottleneck. False. 8. A bottleneck resource in a process has the least idle time. True 9. Which of the following statements about process analysis is true? Process analysis helps one analyze all the activities involved in providing one unit of supply. 10. In a process with rework, we find the bottleneck as the resource with the highest implied utilization. True 11. A suburb of Dayton, Ohio, has four local dry cleaners which compete with each other on the basis of price and service speed. Each of them can perform the same basic services at the same level of quality. The table below provides the price that each dry cleaner charges to clean a two-piece suit as well as the quoted number of days that the service will take. Which of these dry cleaners are not on the efficient frontier? (B) 12. The resource with the largest total demand rate is the bottleneck. False. 13. A group of workers works really hard. In fact, they work so hard that one of them claims to have an average labor utilization of 120%. Is that possible? No 14. Little’s Law describes the relationship between the following metrics EXCEPT: flow unit. a. It does involve flow time, flow rate, inventory. 15. A non-bottleneck worker currently has an idle time of 20 seconds per unit. Because of the large demand, the company improves the process by adding more capacity to the bottleneck. How does this impact the idle time of the worker? The idle time would decrease. 16. The process capacity determines the a process can provide per unit of time. Maximum flow rate 17. What is the highest possible yield a process can obtain? 100% 18. From the perspective of a cashier in a supermarket, the appropriate level for the process scope is: the customer checkout process. 19. How does the target manpower change as the demand rate increases? The target manpower increases. 20. You are sitting in a restaurant and the waiter brings you the food that you ordered a while ago. If you think about you being the flow unit in the process of the restaurant - which step of this process will be downstream relative to your current position in the process? Paying the bill. 21. A process has a yield of 50%. How many units are needed as inflow to create an outflow of 40 units per day? 80 22. You observe a vehicle registration department at your local township. Assume that all employees are ready to work at 9 a.m. You arrive at 9 a.m. sharp and are the first customer. Is your time through the empty process longer or shorter or equal to the flow time averaged across all customers that arrive over the course of the day? Shorter than average time. 23. Specialization increases the costs of labor as specialists will command a higher wage rate. False 24. Customers are driving away after failing to find a place to park at a supermarket. The process currently is: capacity constrained. 25. Rework can increase the costs of an operation, but has no impact on the capacity of the process. False. 26. Inventory is shown as in a process flow diagram. Triangles 27. Resources are shown in a process flow diagram as: Boxes 28. CodeDesk Inc matches programmers with freelance jobs. They have 30 employees who staff their online chat room. They receive on average 250 chat requests per hour and the average chat session takes 3 minutes to complete (i.e. from start to finish). On average how many chat sessions are active (i.e., started but not completed)? (Round to nearest integer) 13 chat session. 29. LaVilla is a village in the Italian Alps. Given its enormous popularity among Swiss, German, Austrian, and Italian skiers, all of its beds are always booked in the winter season and there are on average 1050 skiers in the village. On average, skiers stay in LaVilla for 11 days. H ow many new skiers are arriving – on average – in LaVilla every day? (Round to nearest integer) 95 skiers. 30. The table below provides the time stamps for the 8 people who called a reservation desk for a ferry service between 8:00 am and 8:20 am. Based on the data in the table, what is the flow rate of callers? 0.4 per minute. 31. Consider the baggage check-in process of a small airline. Check-in data indicates that from 9am to 10am, 240 passengers checked in. Moreover, based on counting the number of passengers waiting in line, airport management found that the average number of passengers waiting for check-in was 30. 7.5 minutes. 32. Consider a four-step serial process with the number of workers at each step and processing times given in the list below. Assuming that the process starts out empty and is worker-paced, how long will it take (in minutes) to serve 16 customers? (Round to nearest minute) 115 minutes to serve 16 customers. 33. An automated car wash serves customers with the following serial process: pre-treat, wash, rinse, wax, hand dry. Each of these steps is performed by a dedicated machine except for the hand dry step, which is performed manually on each car by one of 4 workers. The steps of the process have the following processing times a. If the car wash has a demand of 11 cars per hour, what is the flow rate of the process? (Do not round intermediate calculations. Round your answer to 2 decimal places) 8.57 cars per hour b. If the car wash has a demand of 11 cars per hour, what is the utilization of the machine that performs the Wax process? (Round to nearest integer) 7.1 percent 34. It takes a lawyer 120 minutes to serve one customer. Demand is 2 customers per eight hour day. The lawyer has a wage rate of $200 per hour. What is the cost of direct labor for the lawyer expressed in $ per customer? $800 per customer Exam 1 Practice: 1. What are the subcomponents of inconvenience in a customer utility function? Location and time 2. Custom-built windows are designed and produced for the unique needs of a particular building. Which dimension of the customer utility function is particularly emphasized with the concept of “custom-built”? fit 3. Which of the following characteristics is a subcomponent of consumption utility in a customer utility function? performance 4. A national restaurant chain has just opened a sit-down location at Chicago’s O’Hare International Airport. Next to the sit-down location, it has also established a “to-go” section where travelers can purchase pre-made sandwiches and salads as well as drinks and snacks. Which dimension of the customer utility function is particularly emphasized with the “to-go” section? Timing 5. A car manufacturer has designed a special edition version of its popular two door coupe. This special edition has increased horsepower compared to the standard model and a sports suspension. Which dimension of the customer utility function is particularly emphasized with the special edition coupe? Performance 6. Which of the following items would be considered an input in the operations of a soft drink manufacturer? Empty bottles 7. Which of the following items would be considered a resource in the operations of a soft drink manufacturer? Bottling machines 8. Which of the following items would be considered an input in the operations of a doctors office? Needle 9. Which of the following items would be considered a resource in the operations of a movie theater? Projector 10. Which of the following inefficiencies in a grocery stores operation results from inflexibility? Employee work schedules set a week in advance 11. Which of the following inefficiencies in a bank’s operations results from variability? Customers incorrectly list information on forms 12. Which of the following operations decision correspond to the convinces component of the consumer utility function? When will the demand be fulfilled and where will the demand be fulfilled? 13. Which of the following operational decision correspond to the price component of the consumer utility function? How efficiently will the products or the services be delivered? 14. Which of the following operations decisions correspond to the consumption utility component of the consumer utility function? What Is the product or service to be delivered? Efficient Frontier: Flow rate and Flow Time