EIN 4364 - Facilities Planning, Spring 2013 Homework 3 Due Date: February 1st, 2013 (Friday) by midnight Problem

1 Consider process of making a 3-topping pizza. Decide on which toppings you want to have on your pizza and develop a) a parts list, b) a bill of materials (either table or schema), c) an assembly chart, d) a route sheet e) an operations process chart, f) a precedence diagram so that someone could follow the recipe without additional instructions. Problem 2 See Table 2.1 below:

Table 2.1. Activity Relationship Table

Activity Predecessor Duration A 8 B 15 C 10 D A 10 E A 12 F E 5 G B, C, F 10 H C 20 I D, E 15 J E, G, I 7 K H 8 L H 10

Draw the project network according to the precedence relationships and give appropriate numbers to the event nodes. (Do not use unnecessary dummy arcs!!!) a) Show the Earliest Start (ES i ) times of events and Latest Completion (LC i ) times of events next to the event nodes on the project network. (See the examples in the lecture notes). b) Show the critical path and write down the critical activities. c) Fill in the blanks in Table 2.2:

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Table 2.2. Final Table

Activity A B C D E F G H I J K L

D ij

ES ij

LC i

TF ij

FF ij

Problem 3 Given the figure below, operation 4 represents a rework operation on parts that fail inspection upon completion of operation 2. represents the defect percentage for operation = 1, , 4. How many units must the process start with in order to meet the required output of 8000 units?

8000 units

1 = 3%

2 = 8% 4

3 = 5%

Figure 3.1. Operations flow and defect percentages

4 = 1%

Problem 4 a) Given the information in Problem 3 and the information in the table below, how many machines are needed to perform each operation? Assume operations 1, 2, and 3 run for 16 hours per day, five days per week. Machine 4 is available for 8 hours per day, five days per week. The production amount given above is the goal for weekly production.
Table 3. Operational data

Operation 1 2 3 4

Standard time 4 min 3 min 5 min 5 min

Efficiency 98% 95% 102% 80%

Reliability 95% 90% 90% 95%

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b) In addition to the information given in part (a), assume that each machine used for operations 1, 2 and 3 require some setup-up at the beginning of each work day. The setup-up times are 12 min, 9 min and 14 min, respectively. Operation 4 is performed by using some tools specifically for rework, and their setup time is negligible. Given the setup-times, recalculate how many machines are needed for each operation. Problem 5 A job shop has received an order for high-precision formed parts. The cost of producing each part is estimated to be $70,000. The customer requires that either 8, 9, or 10 parts be supplied. Each good part sold will produce revenue of $110,000. If fewer than 8 good parts are produced, the customer will buy the good parts for the agreed price, however a penalty clause in the contract results in the job shop having to pay the customer $1500 per unit short. If more than 10 good parts are produced, the excess will not be purchased by the customer. The excess good parts can be sold at discounted price of $20,000. The bad parts can be recycled at a value of $500. The probability of an individual part being acceptable as a good part equals 0.85. Write down the revenue, cost and profit functions. Determine the expected profits for batch production quantities of 10, 11, and 12. For each, determine the probability of losing money. Of the three choices, which is the least preferred? Why? Note: With your submissions, please do not forget to add your Excel files (or any other spread-sheet type file) you used in your calculations for this problem.

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