Portfolio Exercise 1 A production manager at Ultra Clean Dishwashing Company is monitoring the quality
Portfolio Exercise 1
A production manager at Ultra Clean Dishwashing Company is monitoring the quality of the company’s production process. There has been concern relative to the quality of the operation to accurately fill the 16 ounces of dishwashing liquid. The product is designed for a fill level of 16.00 ± 0.30. The company collected the following sample data on the production process:
| Sample | Observations | |||
| 1 | 2 | 3 | 4 | |
| 1 | 16.40 | 16.11 | 15.90 | 15.78 |
| 2 | 15.97 | 16.10 | 16.20 | 15.81 |
| 3 | 15.91 | 16.00 | 16.04 | 15.92 |
| 4 | 16.20 | 16.21 | 15.93 | 15.95 |
| 5 | 15.87 | 16.21 | 16.34 | 16.43 |
| 6 | 15.43 | 15.49 | 15.55 | 15.92 |
| 7 | 16.43 | 16.21 | 15.99 | 16.00 |
| 8 | 15.50 | 15.92 | 16.12 | 16.02 |
| 9 | 16.13 | 16.21 | 16.05 | 16.01 |
| 10 | 15.68 | 16.43 | 16.20 | 15.97 |
- Develop an R-chart and an x-bar-chart for this process.
- Is the process in control? Explain your answer.
- Do you think this process is capable of meeting the design standards?
- What is your recommendation for the company?
Write a business report to the company where you explain the problem, present your solution and provide recommendations based on sound analysis of your results. The report should be between 600-1000 words (excluding graphs, tables, references and appendix).
Portfolio Exercise 2 (Deferral/Re-sit 2009)
The following data are monthly sales of jeans at a local department store. The buyer would like to forecast sales of jeans for the next month, July.
| Month | Sales |
| January | 45 |
| February | 30 |
| March | 40 |
| April | 50 |
| May | 55 |
| June | 47 |
- Forecast sales of jeans for March through July using the naive method, a two-period moving average, exponential smoothing with an α=0.2, and exponential smoothing with an α=0.7. (Hint: use naive method to start the exponential smoothing process.)
- Are your results the same using the two α values? Explain.
- Compare the forecasts using MAD and MSE and decide which forecasting model is best.
- Are your results the same using the two error measures? Explain.
- What is your recommendation for the company?
Write a business report to the company where you explain the problem, present your solution and provide recommendations based on sound analysis of your results. The report should be between 600-1000 words (excluding graphs, tables, references and appendix).
Portfolio Exercise 3 (Deferral/Re-sit 2009)
My Kitchen Delights (MKD) is considering two new suppliers for the jars used in the production process. The quality at both suppliers is equal. Assume that the annual holding cost is 30 percent of the unit price. Monthly demand averages 20,000 jars. Ordering cost with these two suppliers is £30 per order. The price lists for the suppliers are as follows:
| Supplier A | Supplier B | |||
| Quantity | Unit Price (£) | Quantity | Unit Price (£) | |
| 1-2499 | 3.00 | 1-1999 | 3.50 | |
| 2500-3499 | 2.90 | 2000-2999 | 3.15 | |
| 3500-4999 | 2.80 | 3000-3999 | 2.85 | |
| 5000 or more | 2.70 | 4000-4999 | 2.75 | |
| 5000 or more | 2.60 | |||
- Determine the optimal order quantity when using Supplier A.
- Determine the optimal order quantity when using Supplier B.
- Given MKD’s lack of space, which supplier do you recommend be used? Justify your answer.
Write a business report to the company where you explain the problem, present your solution and provide recommendations based on sound analysis of your results. The report should be between 600-1000 words (excluding graphs, tables, references and appendix).
Portfolio Exercise 4 (Deferral/Re-sit 2009)
W. C. Sanders, owners of Fort Engines, a producer of heavy-duty snow blower engines, needs to develop an aggregate plan for the coming year. The company currently uses twenty individuals working 160 regular-time hours each month. Each worker is capable of producing ten heavy-duty snow blowers per month. Employees are paid £12 per hour. Overtime is limited to a maximum of 40 hours per month per employee. Holding costs are £5 per unit per period. Back-order cost is £10 per unit per period. The beginning inventory is 40 units. Monthly demand projections are:
| Month | Demand (units) |
| January | 250 |
| February | 230 |
| March | 190 |
| April | 170 |
| May | 200 |
| June | 220 |
| July | 220 |
| August | 220 |
| September | 260 |
| October | 260 |
| November | 240 |
| December | 220 |
- Develop a hybrid aggregate plan using the initial workforce supplemented by overtime. If demand in any period exceeds regular-time production plus overtime production plus any beginning inventory, the company will use back orders. Calculate the cost of this plan.
- Another alternative is to try a level plan that uses inventory and back orders to absorb fluctuations. Calculate the cost of this plan.
- A third alternative being considered is to use a hybrid plan but also to close down the facility for the entire month of July. Overtime, inventory, and back orders can be used. Calculate the cost of this plan.
- Compare the three plans in terms of cost, customer service, operations, and human resources.
Write a business report to the company where you explain the problem, present your solution and provide recommendations based on sound analysis of your results. The report should be between 600-1000 words (excluding graphs, tables, references and appendix).
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