Exam 15: Appendix: Quality Management

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A furniture manufacturer has an order for 20 custom wine cabinets for a large hotel in Hawaii. It is estimated that the first cabinet will take 100 hours of shop time. An 85 percent learning curve is expected. The labor rate is $12.00 per hour. The pricing policy is to charge two times the labor cost for the order. a. How many hours will the 20th wine cabinet take? b. How many hours should the whole order take? c. What is the price of each cabinet?

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Locksmith Inc. has an order from a bank for 50 specially designed safes, one for each branch. It is estimated that the first safe will require 75 hours of shop time and a 90 percent learning curve is expected. The labor rate is $15.00 per hour and the pricing policy of the company is to triple the labor cost of the order. a. How many labor-hours should the 50th unit require? b. How many labor-hours will the whole order require? c. What is the customer's price for each safe?

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Discuss several factors that can affect the applicability of the learning curve or experience curve and/or the amount of learning that occurs.

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The outputs from a work measurement study lead to the development of labor and equipment standards that are used for all of the following EXCEPT:

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Explain the use of regression analysis in establishing standard times with an example.

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Work sampling _____.

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Determine the sample size for the following time study given a standard deviation of four minutes and a 98 percent probability that the value of the sample mean is within 1.5 minutes?

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The people best suited to set work standards are managers with input from industrial engineers.

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Unavoidable delays should not be included in time studies.

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In the sample size for work sampling, "p" will never be known exactly since it is the population parameter that is being estimated.

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For a work-sampling study, there is a 95 percent probability that the processing time of an activity has an error of less than 0.06 minutes. The best estimate we have for "p" is 0.30. Determine the sample size needed for a work-sampling study if no estimate of "p" is available.

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An employee was observed over an extended period of time for a work-sampling study with the following results: Performance Activity Percentage of Time Rating Factor On the Phone 30 1.15 Filing 35 0.70 Face-to-Face with Customer 25 1.10 Idle 10 \ldots... While doing her job in a 40-hour workweek, the employee helped 120 face-to-face, walk-in customers. Determine the standard time in minutes that it took her to help each customer.

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Define work measurement and what it leads to from an operations perspective.

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Job and process analysis should follow work measurement.

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Consider the work sampling information below.  Cycles (Actual Time in Seconds) \text { Cycles (Actual Time in Seconds) } Work Task 1 2 3 4 5 6 Q 25 30 27 31 22 20 R 40 52 35 42 47 38 S 60 62 50 55 62 58 a. If the performance rating factor for Q = 0.80, R = 1.10, and S = 1.10 and the total allowance is 17 percent, determine the normal time for the job. b. With the allowance of 17 percent, determine the output per hour.

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A 90 percent learning curve implies faster learning than an 80 percent learning curve.

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A fast-food stand has a thriving business in downtown Portland. They serve 3,500 burgers; 3,000 orders of fries; and 4,000 soft drinks per week. The workers work 40 hours per week but are idle two percent of the time. The manager wants to try to become more efficient. He has done a time study and found: Elements for One ltem Minutes Take order 2 Time taken for kitchen to fill 5 order Pick up order \& put in bag 1 Take customer's money 2 It takes 1 additional minute per additional item. The average order size is 3 items. a. What is the average number of orders per week? b. What is the average cycle time (in minutes) per order? c. What is the labor standard (in minutes) per order? d. How many workers does the manager need per week?

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Define work sampling. Give examples of both manufacturing and service applications.

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All of following are true of learning curves EXCEPT:

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The learning curve does not apply to supervisory personnel, some skilled craftspeople, or jobs that have non-repetitive job tasks.

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