Exam 2 Operations Management

1. Identify four main points that would be included in a contract of employment. If possible, use an example contract to support your answer (feel free to obscure any confidential information).

a) Why does this make sense? Be sure to explain what workload and potential mean (2 pts)

Answer: Capacity is the maximum rate of output of a process or a system. And utilization is measured as the ratio of average output rate to maximum capacity. In Southwest, capacity can be measured in available seat-miles (AMS) pre month. Therefore, utilization can be measured as the ratio of average seat-mile rate to maximum

Adriana Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:

The ties normally sell for $22 each. Strangle Company has received a special order for 2,000 ties at $10.00 per tie. Strangle Company has excess capacity.

Capacity utilization: Capacity utilization is on of the factors that the level of activity in the industrial construction market depends on (3). The capacity utilization for the construction industry, machinery, and other related industries related to industrial distribution range between 80 and 90 percent, with an overall average of 82.9% (2). There is a common belief by economists when utilization rises above

Since the current assembly line layout should achieving 100% line efficiency when running at maximum capacity of 215 units. Thus, to operate at target 300 units/day, the current assembly line needs to redesign.

management, which concerned with ensuring that sufficient resources are available when needed to deliver the agreed level of services as cost effectively as possible (Southern, 2001). Management needs to balance the use of capacity adjustments method and eliminating the need to adjust capacity method. In the first

Capacity utilization is defined as the ratio between the actual output produced and the potential output that can be produced in the plant. The comparison between the 6 plants is as follows:

Capacity is very important but least understood concept in manufacturing and business world (Klammer,1996). Different categories of people in business and manufacturing measure capacity differently. For example, some financial managers might measure plant capacity in terms of the equipment installed in the plant while operational supervisors might measure capacity in terms of worker efficiency. Klein & Summers ,(1996) defined an organization’s productive capacity as “the total level of output or production that it could produce in a given time period”. Capacity utilization is the percentage of the firm’s total possible production capacity that is being used. Therefore, an organization should be most efficient if it is running at 100% capacity utilization. An organization’s full capacity is the minimum point on total cost function, a full input point on the aggregate production function and a bottleneck point in a general equilibrium system. Full capacity should be defined as a realizable level of output that can be attained under normal input conditions without prolonging accepted working

Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products.[1] In the context of capacity planning, "design capacity" is the maximum amount of work that an organization is capable of completing in a given period, "effective capacity" is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as quality problems, delays, material handling, etc. The phrase is also used in business computing as a synonym for Capacity Management.

Descriptive measure of volume flexibility can be the lower and upper bound of capacity for range dimension and time/cost of capacity adjustment for response perspective. But economic metrics are most commonly used in literature, since many researchers define volume flexibility as the ability to profitably produce at different levels. Stigler(1939) considered a plant to be flexible if it has a relatively flat average cost curve. Falkner (1986) suggest the stability of manufacturing costs over widely varying levels of total production volume to be the measure of volume flexibility. Sethi and Sethi (1990) developed volume flexibility metric to be the curvature of the average cost curve.

Operations administration concentrates on precisely dealing with the procedures to create and circulate items and administrations. Operations administration is the procedure, which joins and changes different assets utilized as a part of the creation/operations subsystem of the association into quality included item/benefits in a controlled way according to the arrangements of the association. In this way, it is that part of an association, which is worried with the change of a scope of inputs into the required (items/administrations) having the essential quality level.

A set of tasks is performed at each workstation, and each task has its own processing time. The total time required to perform each set of tasks assigned to a given assembly line must be less than the cycle time that is predetermined by the manager of the line. Hence, the production rate is determined by the cycle time. The main objective of assemble

Assembly lines Assembly-line balancing Splitting tasks Flexible and U-shaped line layouts Mixed-model line balancing Current thoughts on assembly lines Workstation cycle time defined Assembly-line balancing defined Precedence relationship defined