Operation Management 355 – Problems
KOGOD SCHOOL OF BUSINESS AMERICAN UNIVERSITY ITEC 355 Operations Management INDIVIDUAL ASSIGNMENT 2 SUBMISSION REQUIREMENTS: UPLOAD ONE FILE TO CANVAS IN PDF. IF YOU WORK ON A PIECE OF PAPER, THEN YOU CAN TAKE A PHOTO OF THE PAGES, AND CREATE A SINGLE “PDF” FILE AND THEN UPLOAD THAT FILE TO CANVAS. Problem 1. LITTLE’S LAW: “GreenLeaf Farm is a company that operates a large greenhouse for cultivating organic tomatoes. The tomatoes go through several stages of growth before they are ready for harvest. Please answer the following questions regarding GreenLeaf Farm’s operations: a) (6 points) GreenLeaf Farm produces an average of 200 kilograms of organic tomatoes per day. The greenhouse operates in a steady state, maintaining a constant production rate. At any given time, there are quantities of tomatoes in different growth stages within the greenhouse, representing work in process inventory. The average work in process inventory is estimated to be 3,000 kilograms’ worth of tomatoes. How long (in days) does it take for tomato plants to grow from planting to harvest? b) (10 points) The tomato cultivation process at GreenLeaf Farm involves three key stages: planting, seedling growth, flowering, and harvest. Out of the 3,000 kilograms’ worth of tomatoes in the greenhouse, on average, 1,800 kilograms are in the seedling growth stage, 400 kilograms are in the flowering stage, and 600 kilograms are ready for harvest. How long (in days) does a typical tomato plant spend in each of the following stages: i. Seedling growth? ii. Flowering? iii. Ready for harvest?” NOTE: SHOW ALL YOUR WORK -> UNSUBSTANTIATED ANSWERS RECEIVE NO CREDIT. USE 4 DECIMAL PLACES IN ALL CALCULATIONS. KOGOD SCHOOL OF BUSINESS AMERICAN UNIVERSITY ITEC 355 Operations Management Problem 2. PROCESS ANALYSIS. HealthyCare Hospital specializes in providing outpatient orthopedic surgeries to patients in a busy urban area. Lately, the hospital has been receiving complaints about extended wait times and is seeking your assistance in investigating the issue. The process involves several steps, starting with patient check-in, medical history and insurance form completion, preparation in an examination room, surgery in an operating room, and check out. Each of these steps requires various resources and time, as shown in the table below: Resources Receptionist Nurse, Exam Room Anesthesiologist, Op. Room Anesthesiologist, Surgeon, Nurse, Op. Room Receptionist Task Check-in Preparation Anesthesia Surgery Check-out Average Time (minutes) 6 15 20 50 3 The hospital has 1 receptionist, 4 nurses, 2 exam rooms, 2 anesthesiologists, 2 surgeons and 2 operating rooms. a) (3 points) What is the raw process time (flow time in system with no waiting) of a patient in this process (in minutes)? Assume all resources are available whenever needed and there are no delays between tasks (e.g., you may ignore the time the patient spends walking or getting transported between tasks). b) (12 points) Complete the table below. Determine the total workload assigned to each resource per patient. Show all your work and fill in the answers in the table. Notice that you will compute the capacity of each resource. Note that “pat/hr” refers to “patients per hour”. Resource Receptionist Nurse Exam Room Anesthesiologist Op. Room Surgeon Processing Time (min/pat) Capacity of each Resource (pat/hr/resource) Number of Resources per Resource Type Capacity of Resource Type (pat/hr) KOGOD SCHOOL OF BUSINESS AMERICAN UNIVERSITY ITEC 355 Operations Management c) (3 points) What is the hourly capacity (i.e., maximum hourly throughput rate) of the process? Your answer should be in number of patients per hour (pat/hr). d) (3 points) Which resource (or resources) is (are) the bottleneck of this process? e) (4 points) What is the hourly utilization rate of nurses if the bottleneck(s) work nonstop (i.e., works at capacity), i.e., the process is paced at its full capacity? Keep in mind that the nonbottleneck resources may be idle during the day because the process follows the pace of the bottleneck resource and that a patient is served completely on the day they arrive, i.e., there is no work-in-process remaining at the end of the day. f) (20 points) Hospital decides to update the process in the following way because the demand is expected to increase: add another operating room which costs $1000/hr and the anesthesiologist stays only for 30 minutes of each surgery instead of the current 50 minutes on the average. A patient brings $4000 in revenue, on average. You can ignore the fixed cost of constructing a new operating room. i. (6 points) Update the capacity of the operating rooms and the anesthesiologists. ii. (2 points) Which resource (or resources) is (are) the bottleneck of this process after the change? iii. (2 points) What is the capacity of the process now? iv. (6 points) Compute the incremental benefit of this change in $/hr? Assume that the process can work at its capacity. Hint: Consider the increase in capacity thanks to this change. v. (4 points) Is updating process feasible? Prove your answer by comparing the incremental benefit with the incremental cost of the change. NOTE: SHOW ALL YOUR WORK -> UNSUBSTANTIATED ANSWERS RECEIVE NO CREDIT. USE 4 DECIMAL PLACES IN ALL CALCULATIONS. KOGOD SCHOOL OF BUSINESS AMERICAN UNIVERSITY ITEC 355 Operations Management Problem 3. Managing and Estimating Delays. AUzon’s customer call center wants you to analyze its operation for the time between 1pm and 2pm. On average, it takes 15 minutes to handle a call with a standard deviation of 12 minutes. Calls come in every 2 minutes on average with a standard deviation of 2.5 minutes during this period. DO NOT use the Queuing Models and the Excel spreadsheet to answer the questions below. Instead, use the table below to answer the questions. m 8 9 10 11 12 13 Iq 13.3995 2.9237 1.1427 0.5301 0.2673 0.1417 a) (5 points) What is the capacity of each call agent in calls per hour? Show your work! b) (5 points) What is the minimum number of call agents to strictly handle the demand? Show your work! c) (3 points) What is the capacity of the call center, if 9 agents are scheduled to answer calls, in calls per hour? Show your work! d) (6 points) If 9 agents are scheduled to answer calls, what is the average time a customer spends in the system in minutes? Show your work! e) (6 points) If 9 agents are scheduled to answer calls, what is the average total number of customers at the call center either waiting or talking to call agent? Show your work! KOGOD SCHOOL OF BUSINESS AMERICAN UNIVERSITY ITEC 355 Operations Management f) (6 points) If 9 agents are scheduled to answer calls, what is the percentage of time (probability) that the customer call center is idle? Show your work! g) (8 points) At most, how many call agents should be scheduled for this period to keep the utilization of the call center at least at 70%? Show your work! NOTE: SHOW ALL YOUR WORK -> UNSUBSTANTIATED ANSWERS RECEIVE NO CREDIT. USE 4 DECIMAL PLACES IN ALL CALCULATIONS. SUBMISSION REQUIREMENTS: UPLOAD ONE FILE TO CANVAS IN PDF. IF YOU WORK ON A PIECE OF PAPER, THEN YOU CAN TAKE A PHOTO OF THE PAGES, AND CREATE A SINGLE “PDF” FILE AND THEN UPLOAD THAT FILE TO CANVAS.
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