4. (13 points)Â

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a)Â What is a poka-yoke?Â A typical word processing software program (such as Word, WordPerfect, etc.) is loaded with poka-yokes.Â List any two of these for this type of software program.Â Briefly explain your selections.b) Operations management concepts can be applied to both manufacturing and service operations.Â It can often be more challenging to apply them in a service operation.Â *Briefly describe* at least two of the challenges that a service operation presents for the application of operations management concepts that are not found in a manufacturing operations. Â

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5.Â (27 points)

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Blackburn Engineering, a parts reseller in Nashville, is currently considering using one of three suppliers.Â For a specific part, Blackburnâ€™s upper specification limit (USL) is 8.8 centimeters (cm) and its lower specification limit (LSL) is 6.5 centimeters (cm).Â

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a) The first supplier, ABC, can adjust its mean but cannot reduce its standard deviation. Its standard deviation is 0.3 cm.Â What is the range (lower and upper limits) for the mean of the process if ABC wants its process capability index (C_{pk}) to satisfy at least Blackburnâ€™s minimum acceptable value of 1.33?

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b) The second supplier, DEF, cannot adjust the mean of its process which is currently 7.5 cm.Â However it can improve its standard deviation if necessary.Â What is the maximum standard deviation (Ïƒ) allowed if DEF wants its process capability index (C_{pk}) to be at least the minimum acceptable value of 1.33?

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c) The third supplier, GEF has a process whose standard deviation is 0.6 cm and the mean of its process is 7.3 cm.Â Answer the following:

- â€¢Can this supplier meet the minimum C
_{pk }of 1.33?Â Explain - â€¢If the supplier cannot meet the minimum C
_{pk}, explain if it is due to a drifting of the mean or too much variability or both.

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d) For the third supplier, GEF, whose process has a standard deviation is 0.6 cm and a mean of 7.3 cm, what percent of the products it produces falls below the LSL?

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6.Â (17 points)

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A company manufactures stamped steel products.Â With global competition increasing, the company is looking at options for it to be in a more competitive position. There are three possible market conditions that can develop.Â There can be high market demand with a probability of 0.4, there can be medium market demand with a probability of 0.5, or there can be a low market demand with a probability of 0.1.Â It is currently looking at three options.Â It can automate now (referred to as the *Automate Now* decision), form an *Alliance* or delay the decision (referred to as *Delayed Decision*) for two years.Â If the company decides to *Automate Now*, the present value of the returns (this means that the returns are expressed in terms of todayâ€™s dollars) are $4.0 million if there is high market demand, $2.6 million if there is medium market demand, and $2 million if there is low market demand.Â The company could also form an *Alliance* with one of its suppliers.Â In this case,Â the present value of the returns for high, medium, and low market demand are $3 million, $2.8 million and $1 million respectively. Â

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The company can also delay this situation for two years (referred to as *Delayed Decision*).Â At that point the company would either automate then or outsource.Â If it automates then (referred to as *Automates Later*), the expected return for this decision is $2.5 million.Â If it *Outsources Later* at that time, the expected return is $3.3 million.Â Â Â

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a) Draw the appropriate decision tree for this company and using an expected value approach, what decision should the company make.Â *Provide your supporting work.* Â

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b) Now, consider only the *Automate Now* and *Delayed Decision* options.Â Let everything else be the same except for the return for the high market demand for the *Automate Now* option.Â What would this return have to be so that the *Automate Now* and *Delayed Decision* options are equal? Â Â

Subject | Business |

Due By (Pacific Time) | 01/17/2015 10:16 pm |

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