Washburn University School of BusinessSpring 2006 BU 347: Production / Operations ManagementInstructor: Bill Roach Student Name ____________________________Exam 2AFill InsFill in the appropriate terms for the definitions given below.1. ______________________________ any instance when a process fails to satisfy its customer.2. ______________________________ a philosophy that stresses three principles for achieving high levels of process performance and quality: customer satisfaction, employee involvement, and continuous improvement in performance.3. _______________________________ the purely random, unidentifiable sources of variation that are unavoidable with the current process.4. ________________________________ a chart used to monitor process variability.5. ___________________________________ the degree to which equipment, space, or labor is currently being used.6. _________________________________ the amount of reserve capacity that a process has to handle sudden increases in demand or temporary losses of production capacity; it measures the amount by which the average utilization (in terms of total capacity) falls below 100 percent7. _________________________________ the time required to change a machine from making one service or product to making another8. _________________________________ the difference between the flows of funds intoand out of an organization over a period of time, including revenues, costs, and changes in assets and liabilities9. ________________________________ a statement of all work that has to be completed10. ________________________________ a network planning method developed in the 1950s as a means of scheduling maintenance shutdowns at chemical-processing plants11. ________________________________ the sequence of activities between a project's start and finish that takes the longest time to complete12. ________________________________ the maximum length of time that an activity can be delayed without delaying the entire project13. ________________________________ the design of a firm's customer relationship, order fulfillment, and supplier relationship process and the synchronization of these processes with the key processes of its suppliers and customers in order to match the flow of services, ;materials, and information14. ________________________________ the items in manufacturing plants, warehouses, and retail outlets that are sold to the firm's customers15. ________________________________ the phenomenon in supply chains whereby ordering patterns experience increasing variance as you proceed upstream in the chain16. ________________________________ the awarding of a contract for a service or itemto only one supplier17. ________________________________ the description of businesses' deployment of facilities and operations around the world18. ________________________________ solution guidelines, or rules of thumb, that find feasible-but not necessarily the best- solutions to problems19. ________________________________ a situation whereby several competing firms clustered in one location attract more customers than the total number who would shop at the same stores at scattered locations20. ________________________________ a factor that considers the availability of good schools, recreational facilities, cultural events, and an attractive lifestyleWord BankActivity, Assignable Causes of Variation, Attributes, Bullwhip Effect, Capacity Cushion, Cash Flow, Common Causes of Variation, Critical Mass, Critical Path, Critical Path Method (CPM), Defect, Distribution, Earliest Finish Time (EF), Finished Goods (FG), Globalization, Heuristics, P-Chart, Prevention Costs, Quality Circles, Quality of Life, R-Chart, Setup Time, Slack, Sole Sourcing, Statistical Process Control (SPC), Supply ChainManagement, Total Quality Management (TQM), Utilization, Work Breakdown StructureProcess AnalysisInputsSolver - Process ChartsEnter data in yellow shaded areas.Process: Pr 5-11 Making One Ice Cream ConeSummarySubject: Server at the CounterBeginning: Walk to the cone storage areaActivityNumber ofStepsTime(min)Distance(ft)Ending: Give cone to server or customerOperation6 1.70Transport6 0.80 31Inspect1 0.25Delay1 0.50Store-- --StepNo.Time(min)Distance(ft)OP TRANINSPDELAY STOREStep Description1 0.20 5.0 x Walk to cone storage area2 0.05 x Remove empty cone3 0.10 5.0 x Walk to counter4 0.05 x Place cone in holder5 0.20 8.0 x Walk to the sink area6 0.50 x Ask dishwasher to wash scoop7 0.15 8.0 x Walk to counter with clean scoop8 0.05 x Pick up empty cone9 0.10 2.5 x Walk to flavor ordered10 0.75 x Scoop ice cream from container11 0.75 x Place ice cream in cone12 0.25 x Check for stability13 0.05 2.5 x Walk to order placement area14 0.05 x Give server or customer the cone15 16a) Show how the total distance traveled is calculated. b) How much time would be eliminated by placing the ice cream scoop in a bucket of water? Hint: The attendant would not have to perform any of the steps involved in washing the scoop.c) Which steps involve a delay?d) How would this chart change if the ice cream shop went to softserve, that is, no scoops and fewer variaties of ice cream?e) Statistical Process ControlThe Watson Electric Company produces incandescent light bulbs. The following data on the number of lumens for 40-watt light bulbs were collected when the process was in control. Statistical Process ControlObservationSample 1 2 3 4 xbar range1 604 612 588 600 601 242 597 601 607 603 602 103 581 570 585 592 582 224 620 605 595 588 602 325 590 614 608 604 604 24xbarbar 598.2rbar 22.4SampleSize A2 D3 D42 1.880 0 3.2674 0.729 0 2.2825 0.577 0 2.11510 0.308 0.223 1.777UCLxbar 614.5LCLxbar 581.9UCLr 51.1LCLr 0Explain the circled calculations. Your explanation should include both formulas and numbers.Construct the r-chart and explain whether the process is in control.Theory of ConstraintsTuff Rider, Inc. manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 100. The projected demand, lot size, and time standards are shown in the following table.Item Touring MountainDemand Forecast 5,000 units / year 10,000 units / yearLot Size 100 units 100 unitsStandard Processing Time ¼ hour / unit ½ hour / unitStandard Setup