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Assignment 3 Design of Operation System

This document outlines an assignment on designing operation systems for an MBA operations management course. It includes 15 discussion questions on topics like product design, capacity, work measurement, and facility layout. It also provides 10 workout problems calculating utilization rates, standard times, and sampling sizes. Finally, it presents a case study where students measure the times for each step in a purchase process and calculate observed, normal, and standard times for each activity and the overall process.

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beyene
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87 views

Assignment 3 Design of Operation System

This document outlines an assignment on designing operation systems for an MBA operations management course. It includes 15 discussion questions on topics like product design, capacity, work measurement, and facility layout. It also provides 10 workout problems calculating utilization rates, standard times, and sampling sizes. Finally, it presents a case study where students measure the times for each step in a purchase process and calculate observed, normal, and standard times for each activity and the overall process.

Uploaded by

beyene
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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International Leadership Institute

Operation Management –OM-(MBA-5131), Degree Program: MBA


2nd Semester, second year, Academic Year 2021/22
By: Kassu Jilcha (PhD)

Assignment Three: Design of Operation System

Part I: Discussion Type Questions


1. What is the importance of Product or Service Design?
2. What are the major factors in design strategy?
3. What are the reasons for Product or Service Design?
4. What are the steps in the product or service Design Process?
5. What are the advantage and disadvantage of product or service standardization?
6. What are the life cycles of Products or Services? Discuss them in detail and using
drawing
7. What is means by robust design?
8. What are the phases in Product Development Process?
9. What is the difference between Product and Service Design?
10. What are the characteristics of Well Designed Service Systems?
11. Draw and discuss bathtub shape phases?
12. What are the types of capacity and show efficiency and utilization in formula?
13. What are the determinants of Effective Capacity?
14. What are the types of facility layout, their differences and their objectives? Discuss
each.
15. What is the difference between work measurement and work study?
16. Define time study.
17. What are the advantage of work sampling and work distribution?
18. How do you sample work at your organization when you want to undertake work
study?
Part II: Workout Type Questions
1. A manufacturer of ballet shoes has determined that its production facility has a design
capacity of 300 shoes per week. The effective capacity, however, is 230 shoes per week.
What is the manufacturer’s capacity utilization relative to both design and effective
capacity if output is 200 shoes per week?
2. In the bakery, we have established that design capacity is 30 pies per day and effective
capacity is 20 pies per day. Currently, the bakery is producing 27 pies per day. What is
the bakery’s capacity utilization relative to both design and effective capacity?
3. An operator manufactures 50 jobs in 6 hours and 30 minutes. If this time includes the
time for setting his machine. Different times allowed for the job was setting time =35 min
and production time per piece =8 min. Calculate
a. The operator’s efficiency.
b. Standard time
4. A Mechanical Engineer working for an automobile manufacture in Lahore presents the
following information to the Operations Manager. The assembly workers take a mean
time of 120 minutes to assemble a single car with a standard deviation of 5 minutes. The
confidence limit if 95%. The Operations Manager will need how many observations if the
desired maximum error is + 5%.
5. A time study revealed the following observed times for a job:

The analyst gave a performance rating of 1.2 for this job. Determine the appropriate standard
time for this operation, assuming allowances for personal needs, delays, and fatigue total 15
percent.
6. To illustrate work sampling, assume that a study is made of an operation to determine the
percentage of time a worker or group of workers are working. The observations are made
at random, and a simple tally is made to indicate whether the operator was working or
idle when each observation was made. A sample of the resultant tally of 60 observations
made in a given day is given below.

Note that the operator was working during 49 observations, or 81.7% of the time, and
idle during 11, or 18.3%. Determine the sample size with an accuracy of + 2%, and a
confidence level of 95%
7. Work-sampling of customer service representatives in a telephone company office
revealed that a receptionist was working 84% of the w time at 1.05 performance rating.
This receptionist handles 200 customers during an 8-hour study period. Company policy
is to give allowances of 10% of total on-the-job time. Calculate:
a. the observed time,
b. normal time, and
c. Standard time.
8. Given the following time study data conducted by continuous time measurement,
compute the standard time. Use an allowance of 15%.

9. Comfort Faucet Manufacturing wants to have a 90% probability that the value of the sample
mean provides a sampling error of .01 minute or less. The estimated standard deviation from
historical experience is .02. Determine the sample size that will provide the required
precision
10. A work-sampling was made of a cargo-loading operation with the aim toward to
developing a standard time. During the total 160 minutes of observation the worker was
working 85% of the time and loaded 60 pieces of cargo. The performance was rated at
100%. The company wants to incorporate a 10% allowance factor for fatigue, delays, and
personal time. What is the standard time for this operation in minutes per piece?
11. Assembly of a transistor unit has a learning curve of 80 percent. Estimated time to build
the second unit is 64 hours. Calculate about how much time will be required for:
(a) The eighth unit.
(b) The first ten units.
Part III: Case study Question

You are requested to consider a work unit and measure the time each activity takes in your
organization, for this work consider purchase process. Use the time study procedure in
recording information of the work study time. For simplicity and common objective, this
project or case study considers your organization or any other organization you prefer aligned
to purchase department following the following purchase process:
 Needs Analysis
 Purchase Requisition to Purchase Order
 Purchase Order Review and Approval
 Requests for Proposal
 Contract Negotiation and Approval
 Shipping and Receiving
 Three-Way Matching; NB: It is a cornerstone of spend management, three-way-
matching is the comparison of shipping documents/packing slips with the original
purchase order and the invoice issued by the supplier.
 Invoice Approval and Payment
 Accounting Records Update

Based on the case, measure each work and rate your employee performance rating. Then you
are requested to record and show the following parameters:
a) develop number of observation or cycle by work sampling before recording the time
or taking from existing data base of the organization
b) observed time
c) Normal time
d) standard time for each
e) standard time for the whole process

Submission date:
One week after the chapter is completed
Up-to 5:00PM

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