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1. ANmmont department, on average, completes 300 projects per year. According to

ID: 350787 • Letter: 1

Question

1. ANmmont department, on average, completes 300 projects per year. According to a ber of projects currently "on the department's plate" is 588. The department at average time to complete a project is under six months. Do you have any 1 of 2 as w uisagree? 2. Product P is made in-house by assembling two parts (parts 1 and 2): Par s first processed on machine A for 15 minutes per unit and then processed on Machine B for 10 minutes per unit. Part 2 is processed on machine C for 20 minutes per unit. An assembler then assembles the two parts, with the assembly operation taking 15 minutes. The process flow diagram is given below Machining Part 1 on A Machining Part 1 on B Assembling Parts 1 and 2 Machining Part 2 on (a) What is the capacity of the process? Where is the bottleneck? (b) Assuming that the process is running at maximum capacity, calculate the utilization of (c) Suppose the assembler has come up with an innovation that can reduce assembly time each resource. from 15 to 10 minutes. As a result of this innovation, will the process capacity increase, decrease or remain unchanged? Justify your answer 3. American Vending Inc. (AVI) supplies vended food to a large university. Because students often kick the machines out of anger and frustration, management has a constant repair problem. The machines break down on an average of three per hour, and the breakdowns are distributed in a Poisson manner. Downtime costs the company $25 per hour per machine, and each maintenance worker gets S4 per hour. One worker can service machines at an average rate of five per hour, distributed exponentially; two works working together can service seven per hour, distributed exponentially; and a team of three workers can do cight per hour distributed exponentially. What is the optimal maintenance crew size for servicing the machines? (Hint: Use the excel file "Note03B Qmmc.xls", sheet "MMc")

Explanation / Answer

Inventory of projects = 588 projects

Throughput, Projects completed = 300 projects/ year

Average flow time for completion of projects = Inventory / Throughput = 588/ 300 = Roughly 2 years.

Hence, we have a reason to disagree that projects are completed under 6 months.