Debre Berhan University

Debre Berhan University

Distance and Continuing Education Program

Department of Management
Operations Management Assignment I
Name ______________________________ ID No. __________ Sec. _____ Center
__________
Part I: Say true if the Statement Is Correct and false if it is Incorrect (0.5 mark each)
1. An organization's strategy is its purpose or rationale for an organization's existence.
2. The customer may participate in the design of, and in the delivery of, services.
3. The layout approach that addresses trade-offs between space and material handling is called
the fixed position layout. False
4. Aggregate planning in manufacturing ties organizational strategic goals to a production plan.
5. A job shop is similar to an assembly line in that both produce products or services to meet the
customers' specifications.
6. Understanding and matching the timing of demand is more important when doing capacity
planning for services than it is for capacity planning for manufacturing.
Part II: Select the Alternative That Best Answers the Question (1 mark each)
1. Who among the following is associated with contributions to quality control in operations
management?
A. Charles Babbage D. W. Edwards Deming
B. Henry Ford E. Henri Fayol
C. Frank Gilbreth
2. Which of the international operations strategies involves high cost reductions and high local
responsiveness?
A. International strategy D. Multi domestic strategy
B. Global strategy E. None of the above
C. Transnational strategy
3. A work sampling study requires an acceptable error level of 10 percent and z = 2 for 95.45
percent confidence. The adequate sample size is _______ if the sample proportion is thought
to be as large as 50 percent, but ________ if the sample proportion is thought to be about 20
percent.
A. 50; 20 D. 20; 50
B. 100; 64 E. cannot be determined from the
C. 100; 16 information given
4. Process X has fixed costs of $10,000 and variable costs of $2.40 per unit. Process Y has fixed
costs of $9,000 and variable costs of $2.25 per unit. Which of the following statements is
true?
A. The crossover point is approximately 6667 units.
B. It is impossible for one process to have both of its costs lower than those of another
process.
C. Process Y is cheaper than process X at all volumes; there is no crossover point.
D. Process X should be selected for very large production volumes.
E. Process X is more profitable than process Y and should be selected.
5. The analysis tool that helps determine what products to develop, and by what strategy, by
listing products in descending order of their individual dollar contribution to the firm is
A. decision tree analysis D. product-by-value analysis
B. Pareto analysis E. product life cycle analysis
C. breakeven analysis
Part III: Please Answer the Following Essay Question (2 marks)
1. Identify the four methods of service design that can reduce costs and enhance the product.
Part IV: Solve the following problems (2.5 marks each)
1. Process A has fixed costs of $1000 and variable costs of $5 per unit. Process B has fixed
costs of $500 and variable costs of $15 per unit. How much is the crossover point between
process A and process B?
2. An assembly line consists of 21 tasks grouped into 5 workstations. The sum of the 21 task
times is 85 minutes. Cycle time for the line is 20 minutes. Calculate the efficiency of this
line.
Debre Berhan University
Distance and Continuing Education Program
Department of Management
Operations Management Assignment II
Part I: Select the alternative that best answers the question (1 mark each)
1. Which of the following activities takes place once the mission has been developed?
A. The firm develops alternative or back-up missions in case the original mission fails.
B. The functional areas develop their functional area strategies.
C. The functional areas develop their supporting missions.
D. The ten OM decision areas are prioritized.
E. Operational tactics are developed.
2. In a job shop, volume is low, and product variety tends to be:
A. High B. Moderate C. Low D. Very low
3. Which one of the following is not generally regarded as an advantage of product layouts?
A. Material handling costs per unit are low.
B. Labor costs are low per unit
C. The system is fairly flexible to changes in volume of output.
D. unit costs may be lower than with other processes
E. There is high utilization of labor and equipment
Part II: Please Answer the Following Essay Question (2 marks each)
1. Distinguish between design capacity and system capacity.
2. Explain, in your own words, how backward scheduling and forward scheduling differ.
Part III: Solve the following problems
1. Five jobs are waiting to be processed. Their processing times and due dates are given below.
Using the shortest processing time dispatching rule, in which order should the jobs be
processed?
2. Lockport Marine Services, Inc. wishes to assign a set of jobs to a set of machines. The
following table provides data on the cost of production of each job when performed on a specific
machine.
a. Determine the set of assignments that maximizes production value.

b. What is the total production value of your assignments?
2. Cartons of Plaster of Paris are supposed to weigh exactly 32 oz. Inspectors want to develop
process control charts. They take ten samples of six boxes each and weigh them. Based on
the following data, compute the lower and upper control limits and determine whether the
process is in control.
Sample Mean Range
1 33.8 1.1
2 34.6 0.3
3 34.7 0.4
4 34.1 0.7
5 34.2 0.3
6 34.3 0.4
7 33.9 0.5
8 34.1 0.8
9 34.2 0.4
10 34.4 0.3

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Debre Berhan University

Distance and Continuing Education Program

a. Determine the set of assignments that maximizes production value.

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