Operations Management (IEF)

1. What are the trends in the global economy that have a significant impact on the operations management.


2. CD players are manufactured on an automated assembly line. The cost of production of one player $ 105 ($ 15 salary, $ 60 materials, $ 30 overhead). In the sale of players come at the price of $ 200.

a. If multifactor productivity will be increased by 5% due to the decrease in the cost of materials, how much to reduce production costs?

b. If multifactor productivity will be increased by 5% due to the decrease in the cost of wages, how much will decrease the cost of production?

c. If multifactor productivity will be increased by 5% due to lower overhead costs, how much will decrease the cost of production?


3. In order to reduce the toxicity of waste products is offered a choice of two processes. The first process requires 205,000 dollars in fixed costs and $ 650 per unit of output variable costs. The second process requires 145,000 dollars in fixed costs and $ 800 per unit of output variable costs.

a. Determine the break-even point at which the first process becomes more profitable

b. What is the difference in the unit cost of production at the level of production of 500 units?


4. The airline believes that its baggage system should work with a level of reliability at least 95%. This system consists of the following subsystems with appropriate levels of reliability:

Subsystem level of reliability

Power 70%

Scanning System 99.8%

Computer software 98.2%

Mechanical systems 97.5%

Operators 96%

a. What is the reliability of the system as a whole?

b. The introduction of uninterruptible power supply can improve the reliability of power supply to 99.9%. In this case, what would be the reliability of the system as a whole?


5. The average weight products in the same package to be 385 grams. When checking the spread of the weight 7 packages of products was 13 grams. Use Table 3.2.1 in the textbook to calculate control limits for R-charts and X-chart.


6. During the production of the valuation work to collect 10 pieces of production for 50 minutes. Quantity surveyor to estimate the speed of his work in 95% of the maximum. Personal differences, fatigue and other factors contribute to the execution of work by 20%. Calculate the normal time and standard time for the assembly unit of production.