Saturday, April 21, 2012

SCM 301 HW3 Solution



HW3 – Spring 2011: SCM 301

1.       In order for demand to be communicated to everyone in the supply chain a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a:
 a.  Semaphore System
b. Kanban Pull System
 c.  Keiretsu Network
 d.  TQM Network

2.       At the customer service counter, there are three steps to process a product a customer wishes to return. These steps are: 1) examine the original sales invoice to ensure the customer purchased the item from the store, 2) enter the item back into the store’s inventory records, and 3) issue the customer a store credit for the amount of the item. An analysis of the last 800 customer return transactions uncovered 10 errors. This results in a DPMO of approximately:
a.    2380
b.    4167
c.    375
d.    12,500

3.       Which of the following is an essential element of lean production?
a.  Waste reduction
 b.  Multiple suppliers
 c.   Safety stock increases
 d.  Push production system

4.       Lean Production is often closely associated with which of the following concepts?
 A.  Periodic Order Review
B.  Six Sigma Quality
 C.  Efficient Consumer Response
 D.  muda

5.       A downtown specialty food store makes chocolate covered cherries for the holidays. The five step process includes:
1) selecting cherries and boiling them in a sugary sauce,
2) pouring a small amount of chocolate onto wax-paper,
3) setting a cherry with sauce onto the chocolate,
4) pouring chocolate over the cherry, and
5) removing the cherry from  the waxed paper with no damage and placing it in the box.

So far the store made 1,000 chocolate covered cherries, and the store owner rejected 70 of the chocolate covered cherries. What is the DPMO?
a.    71
b.    8,000
c.    14,000
d.    70,000

Statistical Process Control
You’ve just been promoted to be the line supervisor for Ames Awesome Candies Company. Immediately, you get a call that Finance noticed a cost variance in your department.  It appears that you are consuming too few ingredients for your scheduled output.  A box of Special Mixed Candies is supposed to be 140 ounces, and your annual bonus is paid on how close you manage your per/unit costs.  To begin analyzing the process, you ask your fill machine operator to record the weights of 9 candy cartons each hour for the next 11 hours.
Batch
Wgt. 1
Wgt. 2
Wgt. 3
Wgt. 4
Wgt. 5
Wgt. 6
Wgt. 7
Wgt. 8
Wgt. 9
1
146.97
143.60
148.84
152.40
152.14
153.98
140.47
154.85
147.20
2
151.78
145.92
143.22
143.56
141.63
144.63
145.33
140.70
140.70
3
146.05
146.61
148.46
146.74
146.87
146.72
152.63
147.70
147.70
4
147.36
146.23
154.81
150.99
156.20
145.75
153.73
142.43
142.43
5
149.86
151.12
154.62
148.87
146.19
150.33
146.69
150.61
150.61
6
143.02
145.08
142.76
146.75
147.89
148.09
147.84
155.57
155.57
7
141.99
145.46
139.11
152.99
143.58
145.75
150.61
149.61
149.61
8
151.01
150.06
143.26
144.15
150.39
149.12
144.76
147.17
147.17
9
148.45
149.92
148.48
144.86
156.10
149.68
148.25
150.86
150.86
10
150.98
146.80
144.81
151.83
143.86
142.62
150.45
150.21
150.21
11
155.61
152.98
152.50
148.39
148.01
149.56
147.91
144.37
144.37
6.       What is UCLR?
 a.  Less than 18.00
 b.  Between 18.00 and 20.00
 c.  Between 20.00 and 23.00
 d.  Between 23.00 and 26.00

7.       What is LCLR?
 a.  Less than 0.75
 b.  Between 0.76 and 1.50
 c. Between 1.51 and 2.25
 d.  Between 2.26 and 3.00

8.       All points on the R-chart are within the control limits.
True
False

9.       What is UCLX ?
 a.  Less than 150.00
 b.  Between 150.00 and 151.00
 c.  Between 151.01 and 152.00
 d.  Between 152.01 and 153.00
 e.  Between 153.01 and 154.00

10.    What is CLX? (i.e. X-double bar)
 a.  Less than 145.00
 b.  Between 145.51 and 146.25
 c.  Between 146.26 and 147.00
 d.  Between 147.01 and 147.75
e. Between 147.76 and 148.50

11.    What is LCLX ?
 a.  Less than 143.00
 b.  Between 143.01 and 144.00
 c. Between 144.01 and 145.00
 d.  Between 145.01 and 146.00
 e.  Between 146.01 and 147.50

12.    All points on the X-bar chart are within the control limits.
True
False

13.    Is the candy making process considered in control?
 a.  Yes, all points on the r-chart are within the control limits.
 b.  Yes, all points on the r-chart and x-bar chart are within the control limits 
c.  No, all points on the r-chart or x-bar chart are not within the control limits
 d.  Not enough information

Project Management
The Northern Iowa Little Theater is planning its first play for the upcoming season.  However, due to illness of one of their key board members, they are behind schedule.  Their President, Dat Sarap, has used Project Management principles to lay out the task relationships, and he finds they do not have enough time to make the performance date if they follow the traditional schedule as outlined below. Dat has come up with a list of tasks, their time requirements, and their relationships.  He has also begun a network diagram, but needs to know what to do next. He knows that he needs to reduce the total time by 4 weeks. 

Activity
Duration (weeks)
Crash Time (weeks)
Description
Preceding Activity(ies)
Crashing Cost/Week
A
10

Select Play
-

B
2

Select Director and Producer
A

C
4
2
Director/Producer Select Staff
B
$1,500
D
4
3
Auditions for Cast
B
$1,000
E
10
8
Construct Set/Sound/Lighting
C
$2,000
F
8
6
Costumes & Makeup
C,D
$750
G
2

Promotions/Ticket Sales
D

H
12
8
Rehearsals
D
$500
I
2

Dress Rehearsal
E,F,H

J
2

Performance
G,I




14.     What is the slack time for activity G?
a)       1
b)       2
c)       4
d)       12

15.    What is the earliest start time for activity I?
a)       20
b)       26
c)       28
d)       30
16.    What is the latest finish time for activity D?
a)       16
b)       19
c)       22
d)       30

17.    Which of the following is the critical path at the beginning of the analysis?
a)       ABDGJ
b)       ABDFIJ
c)       ABCEIJ
d)       ABDHIJ
e)       ABCFIJ

18.    What is the expected duration of the project (before crashing it)?
a) 26 weeks
b) 32 weeks
c) 33 weeks
d) 56 weeks

19.    What is the first activity that Dat should crash?
a) D
b) C
c) H
d) F
e) E

20.    What is the minimum completion time for the project after crashing (until no more crashing is possible)?
a) 26 weeks
b) 27 weeks
c) 28 weeks
d) 31 weeks

21.    If Dat has a budget of only $2,000 for crashing costs, what is the shortest possible completion time?
a) 29 weeks
b) 30 weeks
c) 31 weeks
d) 32 weeks

22.    How much will it cost Dat to reduce the original total project time by 4 weeks?
a) $2,000
b) $3,000
c) $5,000
d) $8,000

23.    When creating a supply chain strategy, which set of trade-offs needs to be analyzed?
a) Reach, Breadth, Distance, Focus
b) Location, Distance, Price, Capability
c) Price, Product, Promotion, Place
d) Cost, Quality, Quantity, Service
e) Head, Heart, Hands, Health

24.    ISO 9000 is primarily concerned with which of the following management systems?
A. environmental
B. safety
C.  logistics
D. quality

25.  The SCOR model is used by firms for which of the following objectives?
A.  Analyzing their supply chain operations record
B.  Benchmarking themselves against other firms
C.  Creating new markets for their products
D.  Decreasing the number of suppliers they have
E.  Meeting new firms at conference receptions

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