Kaplan University Davenport Operation Management Problems Questions The CEO sends you, the operations manager, a memo that customer complaints are up the past couple of months, and her directions are, check into where quality is breaking down and tell me how we can fix it.
You start your investigation by speaking to customer services, and they say customers are complaining that stitching is unraveling around the sleeves and bottoms of The Beast, your companys top of the line athletic t-shirt marketed to high schools and colleges for their mens and womens competitive sports teams. The chief of customer service tells you, these t-shirts are worn every day in practice and they go through a lot of washings the teams are really rough on them. He provides you with the specific orders and production lot #s for the majority of the defects. You ask to see samples of defective t-shirts returned by customers and you notice the thread weight is way too light for The Beast. The thread in the defects is used on low-end casual t-shirts, and would not withstand the harsh abuse of competitive sports teams.
As you delve into the production lot #s provided, you find most of the defective shirts are being stitched on the grave yard shift (10pm 6am). Then you remember back to the days when you were production manager on the grave yard shift and start asking yourself, what processes could be breaking down on that shift to cause the problem? Then it comes to you; swing shift (2 10pm) is responsible for positioning precut t-shirt fabric and bulk thread for sewing on the grave yard shift because grave yards only has one forklift operator and swings has three, so the fabric and bulk thread required by grave yards has to be in place when swings leaves.
You talk to the grave yard shift production supervisor, and he says, most of the time swings prepositions enough fabric and bulk thread for our production run that night, but occasionally they short us fabric or bulk thread so I have my forklift driver get some from stock. Your gut sinks because you know the fork lift driver probably does not know The Beast shirt requires the heaviest thread in the warehouse.
Are you starting to put two and two together? Yes, the forklift driver was pulling the wrong thread from the warehouse, and since he was doing this toward the end of the shift it was not being caught by the sewing machine operator. As a result, the wrong thread was being used to stitch some of the shirts. In the assignments below, students get the opportunity to explore quality issues in organizations, conduct analysis of data to determine if quality is being compromised, and then formulate recommendations to improve quality in a process.
Unit Learning Outcomes
Formulate a plan to manage quality in an organizations products and services, and incorporate quality improvement. (CLO 2, 3, 4, 5, 6 and 7)
Prepare a Pareto diagram for evaluating quality improvement measures into an organization. (CLO 1, 3, 4, 5, and 6)
Identify whether quality management metrics are adequate to ensure organizational goals are met. (CLO 1, 4 and 7)
Develop a data collection plan that will permit the appropriate application of statistical process control (SPC) to investigate inefficiencies and or ineffective processes. (CLO 3 and 4)
Calculate critical inventory management metrics such as economic order quantity and economic production quantity. (CLO 2, 4, and 5)
The links below has examples that can help you to understand the assignment better
https://www.youtube.com/watch?v=8vvqo6bge-4 Work through the problems in Excel. Enter your answers in the following Attach your Word file
and Excel spreadsheet where indicated. YOU MUST SUBMIT YOUR EXCEL
SPREADSHEET OR OTHER WORK IN ORDER TO RECEIVE CREDIT FOR THE
ASSIGNMENT. FAILURE TO SUBMIT THE EXCEL SPREADSHEET OR OTHER WORK
WILL RESULT IN A GRADE OF 0.
You will only have access to the problems. Therefore, complete all of the homework problems in
Excel, and then enter your answers and upload your Excel file.
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Question 1 10 pts
1. An air-conditioning repair department manager has compiled data on the primary reason
for 41 service calls for the previous week, as shown in the table. Using the data, make a
check sheet for the problem types for each customer type, and then construct a Pareto
diagram for each type of customer.
Upload your check sheet and Pareto diagram as an Excel file.
Job
Problem/Customer Job
Problem/Customer Job
Problem/Customer
Number Type
Number Type
Number Type
301
F/R
315
F/C
329
O/C
302
O/R
316
O/C
330
N/R
303
N/C
317
W/C
331
N/R
304
N/R
318
N/R
332
W/R
305
W/C
319
O/C
333
O/R
306
N/R
320
F/R
334
O/C
307
F/R
321
F/R
335
N/R
308
N/C
322
O/R
336
W/R
309
W/R
323
F/R
337
O/C
310
N/R
324
N/C
338
O/R
311
N/R
325
F/R
339
F/R
312
F/C
326
O/R
340
N/R
313
N/R
327
W/C
341
O/C
314
W/C
328
O/C
Key Problem type:
N = Noisy
F = Equipment failure
W = Runs warm
O = Odor
Customer type:
C = Commercial customer
R = Residential customer
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Question 2 10 pts
Prepare a run chart similar to Figure 9.11 on page 403 for the occurrences of defective computer
monitors based on the following data, which an analyst obtained from the process for making the
monitors. Workers are given a 15-minute break at 10:15 a.m. and 3:15 p.m., and a lunch break at
noon. What can you conclude?
Upload your Excel file with the run chart. Be sure to include your conclusion with the chart.
Interval Start
Time
8:00
8:15
8:30
8:45
9:00
9:15
9:30
9:45
10:00
10:30
Number of
Defects
1
0
0
1
0
1
1
2
3
1
Interval Start
Time
10:45
11:00
11:15
11:30
11:45
1:00
1:15
1:30
1:45
2:00
Number of
Defects
0
0
0
1
3
1
0
0
1
1
Interval Start
Time
2:15
2:30
2:45
3:00
3:30
3:45
4:00
4:15
4:30
4:45
Number of
Defects
0
2
2
3
0
1
0
0
1
3
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Question 3 10 pts
Prepare a scatter diagram for each of these data sets and then express in words the apparent
relationship between the two variables. Put the first variable on the horizontal axis and the
second variable on the vertical axis.
Upload your Excel file with both scatter diagrams. Be sure to include your conclusions about
each scatter diagram.
1.
Age
24 30 22 25 33 27 36 58 37 47 54 28 42 55
Absenteeism rate 6 5 7 6 4 5 4 1 3 2 2 5 3 1
2.
Temperature
(°F)
65 63 72 66 82 58 75 86 77 65 79
Error rate
1 2 0 0 3 3 1 5 2 1 3
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Question 4 10 pts
Determine an A-B-C classification for these items:
Item Unit Cost Annual Volume (00)
1
$100
25
2
80
30
3
15
60
4
50
10
5
11
70
6
60
85
7
10
60
Class A item(s):
Class B item(s):
Class C item(s):
Find the EOQ given this information: D = 4,500 units/year, S = $36, and H = $10 per unit
per year.
EOQ =
units
Find the economic production quantity given this information.
D = 18,000 units/year, S = $100, H = $40 per unit per year, p = 120 units per day, and u =
90 units/day
economic production quantity =
units
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Question 5 10 pts
A bakery buys flour in 25-pound bags. The bakery uses 1,215 bags a year. Ordering cost is $10
per order. Annual carrying cost is $75 per bag.
1. Determine the economic order quantity.
bags
2. What is the average number of bags on hand?
bags
3. How many orders per year will there be?
4. Compute the total cost of ordering and carrying flour.
$
5. If holding costs were to increase by $9 per year, how much would that affect the minimum
total annual cost?
increase or decrease?
amount of change? $
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Question 6 10 pts
A food processor uses approximately 27,000 glass jars a month for its fruit juice product.
Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is 18
cents per jar, and reordering cost is $60 per order. The company operates an average of 20 days a
month.
1. What penalty is the company incurring by its present order size?
$
per month
2. The manager would prefer ordering 10 times each month but would have to justify any
change in order size. One possibility is to simplify order processing to reduce the ordering cost.
What ordering cost would enable the manager to justify ordering every other day (i.e., 10 times a
month)?
$
per month (round to two decimal places)
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