Business

Homework on Operations Improvement (Due November 21)

Directions: The assignment must be submitted a single Word document Please. Only one Word document is to be uploaded. Please upload on time (by November 21). Please look at the PowerPoint that I have attached it will help you for this homework.

Problem 1: Oregon fiber board makes roof liners for the automotive industry. The manufacturing manager is concerned about product quality. She suspects that one particular failure, tears in the fabric, is related to production-run size. An assistant gathers the following data from production records.

Run Run size Failures (%)
1

1000 3.5
2 4100 3.8
3 2000 5.5
4 6000 1.9
5 6800 2
6 3000 3.2
7 2000 3.8
8 1200 4.2
9 5000 3.8
10 3800 3
11 6500 1.5
12 1000 5.5
13 7000 1
14 3000 4.5
15 2200 4.2
16 1800 6
17 5400 2
18 5800 2
19 1000 6.2
20 1500 7

a. Create a scatter diagram for these data (Run size vs. Failure percent) (Use Excel to create and paste it here). (10)

b. Does there appear to be a relationship between run size and percent failures? If so, what type or relationship you see? What implications does this data have for Oregon Fiber Board’s business? (Answer here). (10)

Problem 2: UP Local (UPL) is a short-haul household furniture moving company. UPL’s labor force, selected from the local university’s soccer team, is temporary and part-time. UPL is concerned with recent complaints, as provided in the following table:

Complaint Frequency
Broken glass 13
Delivered to wrong address 9
Furniture rubbed together on truck 20
Late delivery 5
Late arrival for pickup 18
Missing items 26
Scratches from rough handling 10
Soiled upholstery 8

a. Create a Pareto chart (Use Excel to draw and paste it here). (10) (Note: Please watch a YouTube video here: http://www.youtube.com/watch?v=TBtGI2z8V48 if you forgot how to do it).

b. What percent of complaints are attributable to the two major causes? (answer here) (5)

c. The manager of UPL is trying to understand the root causes of complaints. He has identified following issues:

a. Truck broke down, ran out of packing boxes, no furniture pads, employee dropped several items, driver got lost, ramp into truck was bent, no packing tape, new employee doesn’t know how to pack, moving dolly has broken wheel.

Organize these causes using the four M’s method and draw a cause-and-effect diagram below (Fishbone diagram) (Use Visio or any tool to do and paste it here). Also show how you organized causes into categories. (15)

Problem 3: Draw a flow chart for a customer purchasing book on Amazon. You have to come up with your own steps and decision points. The chart must have at least five steps and two decision points. (Use Visio or any tool). You must include the steps and diagram below. (20)

Problem 4: A bottling plant samples 531 bottles to check for consistency of quality. It finds that 5 bottles had one or more defects and there were 12 defects in total. Four types of errors were observed.

a) Find proportion defective? Use three decimals for reporting. (10)

b) Find defects per unit? Use three decimals for reporting. (10)

c) Find defects per million opportunities (DPMO)? Use three decimals for reporting. (10)

Show all your work including formulas, number substitution, and answers.

· End of homework problems

Reference:

Krajewski et al. (2013). Operations Management, Pearson publishing.

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