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Semester II Examinations 2007/ 2008
Exam Code(s) 1DQ
Exam(s) Higher Diploma in Quality Assurance
Module Code(s) IE
Module(s) Operations Management
Paper No. 1 1
External Examiner Prof J Antony Internal Examiners Dr D O’Sullivan Dr. D Mulligan
Instructions: Answer any four (4) questions out of six (6) All questions carry equal marks
Duration: 3 Hours
No. of Pages: 5
Department Industrial Engineering Course Coordinator Dr. P Donnellan
Requirements : Mathematical (log) Tables Graph Paper
Microcomp is a US based manufacturer of personal computers. It is planning to build a new manufacturing and distribution facility in either South Korea, China, Taiwan, the Philippines, or Mexico. It will take approximately five years to build the necessary infrastructure (e.g. roads), construct the new facility and put it into operation. The eventual cost of the facility will differ between countries and will even vary within countries depending on the financial, a labour and political climate, including monetary exchange rates, The company has estimated the facility cost in each country under three different future economic/political climates as follows.
Decline Improve South Korea 21.7 15. China 19.0 17. Taiwan 19.2 14. Philippines 22.5 13. Mexico 25.0 12.
Determine the best decision using the following decision criteria. a. Minimi (3 marks) b. Minimax (3 marks) c. Minimax Regret (7 marks) d. Hurwicz (alpha = 0.4) (6 marks) e. Equal likelihood (6 marks)
a) What are the characteristics of fixed location layout? (4 marks)
b) What are the key differences between product and process layouts. (6 marks)
c) Given the following load summary chart, design a layout on a 2 X 3 grid that will minimise nonadjacent loads. (15 marks)
a) What is meant by the term economic order quantity and provide a formula for it? (5 marks)
b) The annual demand for a certain item made to stock = 15, pc/yr. One unit of the item costs €20.00, and the holding cost rate = 18%/yr. Setup time to produce a batch = 5hr. The cost of equipment downtime plus labour = €150/hr. Determine the economic order quantity and the total inventory cost for this case. (10 marks)
c) The cost of raw materials for a certain part is €100. The part is processed through 20 processing steps in the plant and the MLT is 15 weeks. The production time per processing step is 0.8 hrs, and the machine and labour rate is 25 per hour. Inspection material handling and other related costs average to 10 per processing step by the time the part is finished. The interest rate used by the company is 20% and the storage rate is 13%. Determine the cost per part and holding cost. (10 marks)
a) What does design for manufacture entail? List several techniques that can facilitate the DFM process. (5 marks)
b) How can design teams improve the quality of design? (4 marks)
c) What is the purpose of performance measures? How does the balanced scorecard help to manage performance measures? (6 marks)
d) List eight characteristics of services and explain how each characteristic impact the design process. (10 marks)
6. What are the different types of forecasting that can be used? (5 marks)
PM Computer Services assembles customised personal computers from generic parts. Formed and operated by part-time state University students Paulette Tyler and Maureen Becker, the company has had steady growth since it started. The company assembles generic computer parts in volume at a discount from a variety of sources whenever they see a good deal. Thus, they need a good forecast of demand for their computers so that they will know how many computer components parts to purchase and stock. The company has accumulated the demand data shown in the accompanying tables for its computers for the past twelve months, from which it wants to consider exponential smoothing forecasts using smoothing constants (alpha) equal to 0.30 and 0.50.
Estimate the projected demand for both January and February using: a) Alpha = 0.30 (10 marks) b) Alpha = 0.50 (10 marks)
Period Month Demand 1 January 37 2 February 40 3 March 41 4 April 37 5 May 45 6 June 50 7 July 43 8 August 47 9 September 56 10 October 52 11 November 55 12 December 54
