Part 1

1. The following data is collected from customer complaints about service problems at a hotel. Complaint types are coded A-G. Use a spreadsheet to construct a Pareto chart for this data.

2. In your own words explain principles of lean thinking. Use a logistics related example to show where and how those concepts apply.

3. You are managing an order processing facility where employees pick the customer orders from the warehouse, package, and deliver them to postal services. There are bar-code scanners and conveyors to facilitate finding and moving items through the facility. Deliveries to each state are grouped together as part of your deal with postal services for a lower rate. There are problems in order processing, including orders filled with wrong items, orders with right items but wrong number of some items, and finding packages being shipped to the wrong state. Prepare a cause-and-effect diagram to show causes of these problems and explain your solution for each.

4. The following data is collected at a carpet production facility to show the number of flaws per 100 yards of carpet:

Determine a proper control chart. Use a spreadsheet to calculate the upper and lower control limits for the control chart and draw it. Suppose that the next carpet sample of 100 yards has 14 flaws. What can you say about the process?

Part 2

1. Streets in Bellevue are maintained by Public Works Division; "Street Maintenance".Public Works administrators are planning the workforce of this division for next year.Labor hour requirements for the next year are 8,000, 14,000, 29,000, and 18,000, forequarters 1 to 4 respectively. Each of the current 15 workers on the workforce can contribute 500 hours per quarter. Overtime is limited to 20 percent of the regular-time capacity in any quarter. Subcontracting is not permitted. Payroll costs are $7,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of $21 for each overtime hour. Although unused overtime capacity has no cost, unused regular time is paid at $14 per hour. The cost of hiring a worker is $3,500, and the cost of laying off a worker is $2,800.

a. Find a level workforce plan that uses overtime and the minimum amount of under time (idle time for workers) possible. Overtime can be used to its limits (20%). What is the total cost of this plan?

b. Plan for a chase strategy to with variable workforce levels adjusted each quarter.

What is the total cost of this plan?

c. Propose a mix strategy. Compare your plan to plans "a" and "b" and show the

Differences. Is your plan better than plan "a" or "b"? Why or why not?

2- Create a process chart/flow chart to map the process of taking a license plate at Department of Motor Vehicle. Here are the process details: You enter the office and take a number, then walk 50 feet to the waiting area. During the wait, you count additional 30 customers waiting for service. Some customers become discouraged and leave. When a number is called, if a customer stands the ticket is checked by a uniformed person and the customer is directed to the available clerk. If no one stands, several minutes are lost while the same number is called repeatedly. Eventually the next number is called and more often than not that customer has left too. The DMV clerk has now been idle for several minutes but does not seem to mind. After 4 hours wait the customer number is called and checked by the uniformed person. You walk 60 feet to the clerk and the process of paying city sales tax is completed in 4 minutes. The clerk then directs you to the waiting room area for paying state personal property tax, 80 feet away. You take a different number and sit down with some different customers who are just renewing licenses. One hour-forty minutes wait this time, and after a walk of 25 feet you pay property taxes in a process that takes 2 minutes. Now that you have paid taxes you are eligible to pay registration and license fees. That department is 50 feet away. The registration and license customers are called in the same order in which personal property taxes were paid. There is only a 10 minute wait and a 4 minute process. You receive your license plates and leave exactly 6 hours after arriving. Make a process chart to depict this process and suggest improvements.