solution

Installing mufflers at the O’Sullivan Garage in Golden, Colorado, involves five work elements. Jill O’Sullivan has timed workers performing these tasks seven times, with the results shown in the following table:

By agreement with her workers, Jill allows a 10% fatigue factor and a 10% personal-time factor, but no time for delay. To compute standard time for the work operation, Jill excludes all observations that appear to be unusual or nonrecurring. She does not want an error of more than ±5%.

a) What is the standard time for the task?

b) How many observations are needed to assure a 95% confidence level?

 
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The Miami Central Hotel has 400 rooms. Every day, the housekeepers clean any room that was occupied the night before. If a guest is checking out of the hotel, the housekeepers give the room a thorough cleaning to get it ready for the next guest. This takes 30 minutes. If a guest is staying another night, the housekeeper only “refreshes” the room, which takes 15 minutes.

Each day, each housekeeper reports for her 6-hour shift, then prepares her cart. She pushes the cart to her floor and begins work. She usually has to restock the cart once per day; then she pushes it back to the storeroom at the end of the day and delivers dirty laundry, etc. Here is a timetable:

1) Arrive at work and stock cart (0.10 hrs).

2) Push cart to floor (0.10 hrs).

3) Take morning break (0.33 hrs).

4) Stop for lunch (0.50 hrs).

5) Restock cart (0.30 hrs).

6) Take afternoon break (0.33 hrs).

7) Push cart back to laundry and store items (0.33 hrs). Last night, the hotel was full (all 400 rooms were occupied). People are checking out of 200 rooms. Their rooms will need to be thoroughly cleaned. The other 200 rooms will need to be refreshed.

a) How many minutes per day of actual room cleaning can each housekeeper do?

b) How many minutes of room cleaning will the Miami Central Hotel need today?

c) How many housekeepers will be needed to clean the hotel today?

d) If all the guests checked out this morning, how many housekeepers would be needed to clean the 400 rooms?

 
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Kamal Fatehl, production manager of Kennesaw Manufacturing, finds his profit at $15,000 (as shown in the statement below)—inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve the profit line to $25,000 so he can obtain the bank’s approval for the loan.

a) What percentage improvement is needed in a supply chain strategy for profit to improve to $25,000? What is the cost of material with a $25,000 profit?

b) What percentage improvement is needed in a sales strategy for profit to improve to $25,000? What must sales be for profit to improve to $25,000? (Hint: See Example 1.)

Example 1

 
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Arrow Distributing Corp. (see Table 11.9) likes to track inventory by using weeks of supply as well as by inventory turnover.

a) What is its weeks of supply?

b) What percent of Arrow’s assets are committed to  inventory?

c) What is Arrow’s inventory turnover?

d) Is Arrow’s supply chain performance, as measured by these inventory metrics, better than that of Baker in Problem 11.5?

Problem 11.5

Baker Mfg. Inc. (see Table 11.9) wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.

a) What is Baker’s inventory turnover?

b) What is Baker’s percent of assets committed to inventory?

c) How does Baker’s performance compare to the industry leaders?

 
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