Question 1: Barry's Tyre Service completed 100 tyre changes, six break jobs and 16 alignments in an eight-hour day with his standard crew of six mechanics. A break specialist costs $16 per hour, a tire changer costs $8 per hour and an alignment mechanic costs $14 per hour. The materials cost for a day was $2000, and overhead cost was $500.

(a) What is the shop's labour productivity if the retail price for each respective service is $60, $150, and $40?

(ii) What is the multifactor productivity, if the crew consisted of two of each type mechanic?

Question 2: The general manger of your organisation has asked you to manage a protect which will see the construction of a packing centre in your but factory. You have identified 9 major activities for the project. The cost and duration of each activity are shown in the following table.

Question 3: A pizza delivery company wants to improve its response time to gain a competitive advantage. Create an ishikawa diagram with 8 unique events from the time the customer calls in to the time the pizza is delivered.

Question 4: Using the factor ratings shown below, determine which location fast alternative for a fast food outlet should be chosen on the basis of maximum composite score.

Question 5:

(a) Consider a restaurant or other food-service firm that experience an hourly 'seasonal' pattern. (That is, each hour of the service has a Pattern that tends to repeat day after day). Give an example and explain the significance for operations managers when forecasting inputs to production in the example you have cited.

(b) What can managers do to manage demand (output) in the example you have cited.

Question 6: A product has a reorder poet of 110 Leas and is ordered four times a year. The following table shows the historical distribution of demand values observed during the reorder period.

Managers have noted that stock outs occur 30 percent of the time with this policy, and question whether a change in inventory policy, to include some safety stock, might be an improvement. The managers realize that any safety stock would increase the service level, but we worried about the increased costs of carrying the safety stock. Currently, stock outs are valued at $20 per unit per occurrence, while inventory carrying costs are $10 per unit per year. What is your advice? Do higher levels of safety stock add to total costs, or not? What level of safety stock is best?

Question 7:

(a) Briefly describe the goals of JIT partnerships?

(b) Compare and contrast Throughput with manufacturing cycle time.