OPMA 3306 Exam 2 Questions and Answers Solved Correctly
The optimal utilization rate of a service operation is context specific. Planning for low utilization rates is
appropriate when both the degree of uncertainty and the stakes are high as in emergency response
services. Which of the following services should plan for a high utilization rate?
A. An expensive restaurant
B. The fire department
C. A hospital ambulance service
D. A customer help line
E. A stage performance - Answers E. Stage performance
(All sports teams like sellouts, not only because of the virtually 100 percent contribution margin of each
customer, but because a full house creates an atmosphere that pleases customers, motivates the home
team to perform better, and boosts future ticket sales. Stage performances share this phenomenon.)
The point at which the scale economy curve and the learning curve intersect is called the capacity
optimum.
T/F - Answers FALSE
(Capacity optimum is a meaningless term not referenced in the text.)
The unit improvement factor for a 60% learning curve at 25 units is 0.0933. The first and second timings
of a person doing a job are 10 minutes and 6 minutes respectively. The learning-adjusted time estimate
for the unit number 25 is 0.9330 minutes.
,T/F - Answers Learning curve rate = 60% = 0.6
Unit improvement factor at 25 units = 0.0933
Time required for 1st unit = 10 minutes
The unit time for the nth unit can be calculated using learning curve formula as follows:
Tn = T1 x C
T1 = time required for first unit
Tn = time required for nth unit
C = unit improvement factor
T25 = T1 x C = 10 x 0.0933 = 0.9330 minute
TRUE
You time someone completing a single task the first time at 120 minutes and the second time they do
the task it takes 108 minutes. You should use a 90 percent Learning Curve to estimate the length of time
this worker will take to complete this task in the future.
T/F - Answers T1 = time required for first unit = 120 minutes
T2 = time required for 2nd unit = 108 minutes
, Tn = time required for nth unit
Learning rate from 1st to 2nd unit = Time required for 2nd unit/time required for 1st unit = L2/ L1
T2/ T1 = 108/120 = 0.90
TRUE
A production facility develops virtuosity and works best when it focused on a widely varied set of
production objectives.
Group of answer choices
T/F - Answers FALSE
(A production facility works best when it focuses on a fairly limited set of production objectives.)
Overtime and personnel transfers are solutions to capacity problems in the intermediate term.
T/F - Answers FALSE
(Short range —less than one month. This is tied into the daily or weekly scheduling process and involves
making adjustments to eliminate the variance between planned and actual output. This includes
alternatives such as overtime, personnel transfers, and alternative production routings)
A company's production process has an 80 percent learning curve rate. The process has produced 1,000
units to date. A process refinement is estimated to allow a future learning curve rate for the identical
product of 75 percent. However, the initial unit made using the new process will take the same amount
of time as the initial unit produced using the old process. At what point, using the new process, will the
production rate exceed the production rate achieved by the old process?
The optimal utilization rate of a service operation is context specific. Planning for low utilization rates is
appropriate when both the degree of uncertainty and the stakes are high as in emergency response
services. Which of the following services should plan for a high utilization rate?
A. An expensive restaurant
B. The fire department
C. A hospital ambulance service
D. A customer help line
E. A stage performance - Answers E. Stage performance
(All sports teams like sellouts, not only because of the virtually 100 percent contribution margin of each
customer, but because a full house creates an atmosphere that pleases customers, motivates the home
team to perform better, and boosts future ticket sales. Stage performances share this phenomenon.)
The point at which the scale economy curve and the learning curve intersect is called the capacity
optimum.
T/F - Answers FALSE
(Capacity optimum is a meaningless term not referenced in the text.)
The unit improvement factor for a 60% learning curve at 25 units is 0.0933. The first and second timings
of a person doing a job are 10 minutes and 6 minutes respectively. The learning-adjusted time estimate
for the unit number 25 is 0.9330 minutes.
,T/F - Answers Learning curve rate = 60% = 0.6
Unit improvement factor at 25 units = 0.0933
Time required for 1st unit = 10 minutes
The unit time for the nth unit can be calculated using learning curve formula as follows:
Tn = T1 x C
T1 = time required for first unit
Tn = time required for nth unit
C = unit improvement factor
T25 = T1 x C = 10 x 0.0933 = 0.9330 minute
TRUE
You time someone completing a single task the first time at 120 minutes and the second time they do
the task it takes 108 minutes. You should use a 90 percent Learning Curve to estimate the length of time
this worker will take to complete this task in the future.
T/F - Answers T1 = time required for first unit = 120 minutes
T2 = time required for 2nd unit = 108 minutes
, Tn = time required for nth unit
Learning rate from 1st to 2nd unit = Time required for 2nd unit/time required for 1st unit = L2/ L1
T2/ T1 = 108/120 = 0.90
TRUE
A production facility develops virtuosity and works best when it focused on a widely varied set of
production objectives.
Group of answer choices
T/F - Answers FALSE
(A production facility works best when it focuses on a fairly limited set of production objectives.)
Overtime and personnel transfers are solutions to capacity problems in the intermediate term.
T/F - Answers FALSE
(Short range —less than one month. This is tied into the daily or weekly scheduling process and involves
making adjustments to eliminate the variance between planned and actual output. This includes
alternatives such as overtime, personnel transfers, and alternative production routings)
A company's production process has an 80 percent learning curve rate. The process has produced 1,000
units to date. A process refinement is estimated to allow a future learning curve rate for the identical
product of 75 percent. However, the initial unit made using the new process will take the same amount
of time as the initial unit produced using the old process. At what point, using the new process, will the
production rate exceed the production rate achieved by the old process?
