SLOP501 OM (A)/0208

4. The desired daily output for an assembly line is 360 units. This assembly line will operate 450
minutes per day.
The following table contains information on this products task times and precedence
relationships:
Task Task time (seconds) Immediate predecessor
30 !
" 35
# 30
$ 35 "
% &5 #
' 65 #
( 40 %)'
* +5 $)(
a. $raw the precedence diagram.
(2 Marks)
Suggested Answer:

B D
C
E
F
G
30
35
65
30
H
35
15
40
25
b. ,hat is the workstation cycle time-
(2 Marks)
Suggested Answer:
# . production time per day/re0uired output per day . 1450 minutes/day2/360units per day . &.+5
minutes per unit or 35 seconds per unit
c. "alance this line using the largest number of following tasks as primary criteria. 4se the
longest task time as a secondary criterion.
(4 Marks)
Suggested Answer:
,ork station Task Task time 5dle time
1
SLOP501 OM (A)/0208
5

#
%
30
30
&5 0
55
'
65 &0
555
"
(
35
40 0
56
$
*
35
+5 &5
d. ,hat is the efficiency of your line balance-
(2 Marks)
Suggested Answer:
%fficiency .
C N
T
a
.
) 75 ( 4
275
. .7&3 or 7&.38
5. (i9en the choices customers face today) how do they decide which product or ser9ice to buy-
$ifferent customers are attracted by different attributes thus companies need to carefully choose
its competiti9e dimensions. %:plain the ma;or competiti9e dimensions that form the competiti9e
position of the firm.
(10 Marks)
Suggested Answer:
a. cost or price
b. 0uality
c. deli9ery speed
d. deli9ery reliability
e. coping with changes in demand
f. fle:ibility and new product introduction speed
g. other product!specific criteria
2
SLOP501 OM (A)/0208
Part C
Case Ana!sis
6. <uick =ube 5nc. operates a fats lube and oil change garage. >n a typical day) customers arri9e at
the rate of 3 per hour) and lube ;obs are performed at an a9erage rate of one e9ery &5 minutes.
The mechanics operate as a team on one car at a time.
ssuming ?oisson arri9als and e:ponential ser9ice) find
a. The model used and the ser9ice rate.
b. 4tili@ation of the lube team
c. 9erage number of cars in line.
d. 9erage time a car waits before it is lubed
e. The total time it takes to go through the system1waiting time A lube time2
(10 Marks)
Suggested Answer:
1a2 model &
Ber9ice rate C.60/&5.4
1b2 utili@ation D. E/C. 3/4. 358
1c2
) 3 4 ( 4
3
) (
2 2

q
L .+.+5 cars in line
1d2
3
25 . 2
= =

q
q
L
W ..35 hour or 45 minutes
1e2

s
s
L
W =
. /E. /3.& hour
3. builder has located a piece of property that she would like to buy and e9entually build on. The
land is currently @oned for four homes per acre) but she is planning to re0uest new @oning. ,hat
she builds depends upon appro9al of @oning re0uests and your analysis of this problem to ad9ise
her. ,ith her input and your help) the decision process has been reduced to the following costs)
alternati9es and probabilities:
#ost of land: Fs. +0 lakhs
?robability of re@oning: .60
5f the land is re@oned) there will be additional costs for new roads) lighting and so on) of Fs. &0
lakhs
"
SLOP501 OM (A)/0208
5f the land is re@oned) the contractor must decide whether to build a shopping center or &500
apartments that the tentati9e plan shows would be possible. 5f she builds a shopping center) there
is a 308 chance that she can sell the shopping center to a large department chain for Fs. 40
lakhs o9er her construction cost) which e:cludes the land: and there is a 308 chance that she
can sell it to an insurance company for Fs. 50 lakhs o9er her construction cost 1also e:cluding
the land2. 5f ) instead of the shopping center) she decides to build the &500 apartments) she
places probabilities on the profits as follows:
There is a 608 chance that she can sell the apartments to a real estate in9estment corporation
for Fs 3000 each o9er her construction cost: there is a 40 8 chance that she can get only Fs
+000 each o9er her construction cost. 1"oth e:cluding the land cost2
5f the land is not re@oned) she will comply with the e:isting @oning restrictions and simply build
600 homes) on which she e:pects to make Fs 4000 o9er the construction cost on each one
1e:cluding the cost of land2
a. $raw a decision tree of the problem.
b. $etermine the best solution and the e:pected net profit.
(20 Marks)
Suggested Answer:
Fe@oned shopping center:
Fs40 lakh
Rs3,000 x 1500
=Rs 45 Lakh
Rs 2,000 x 1500 =
Rs30 lakh
Rs 50 Lakh
Rs4,000 x 600 =
Rs24 lakh
.70
.30
.60
Shoppi!
C"#"$
%pa$#&"#s
Ho's"s
.60
.40
.40
R"(o")
*o#
R"(o")
2
1
3
Rs. 30 Lakhs
Rs.20 Lakhs
4
SLOP501 OM (A)/0208
?oint &: %:pected 9alue . .301Fs 40 lakh2 A .301Fs 50 lakh2 . Fs 43 =akh
Fe@oned apartments:
?oint +: %:pected 9alue . .601Fs 45 lakh2 A .401Fs 30 lakh2 . Fs 37 lakh
Bince a shopping center has more 9alue) prune the apartment choice. 5n
other words) if re@oned) build a shopping center with a profit of Fs 43 =akh G
Fs 30 =akh . Fs&3 =akh
5f not re@oned:
?oint 3: %:pected ?rofit is Fs +4 =akh ! Fs+0 =akh . Fs 4 =akh
%:pected profit is .601Fs &3 lakh2 A .401Fs 4 lakh2 .Fs 7.4 =akh
#