Updated BES 323 - WK 6-8
Updated BES 323 - WK 6-8
Updated BES 323 - WK 6-8
College of Engineering
Office of the Program Coordinator
LEARNING MODULE
BES 323
PRODUCTION
MANAGEMENT
AND
QUALITY CONTROL
COMPILED BY:
2020
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
i
VISION
The Technological University of the Philippines shall be the premier state university
with recognized excellence in engineering and technology at par with leading universities in
the ASEAN region.
MISSION
The University shall provide higher and advanced vocational, technical, industrial,
technological and professional education and training in industries and technology, and in
practical arts leading to certificates, diplomas and degrees.
It shall provide progressive leadership in applied research, developmental studies in
technical, industrial, and technological fields and production using indigenous materials;
effect technology transfer in the countryside; and assist in the development of small-and-
medium scale industries in identified growth center. (Reference: P.D. No. 1518, Section 2)
QUALITY POLICY
CORE VALUES
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
ii
TABLE OF CONTENTS
Page Numbers
TUP Vision, Mission, Quality Policy, and Core Values…..……………….…… i
Table of Contents…………………………………………….………………..…..ii
Course Description……………………………………..……………….… iii
Learning Outcomes……………………………………………………...…iii
General Guidelines/Class Rules…………………………………………...iii
Grading System…………………………………………………………....iv
Learning Guide (Week No. 6) ………………………………………….…1
Topic/s……………………………………………………………..1
Expected Competencies……………………………………………1
Content/Technical Information…………………………………….2-14
Progress Check…… ………………………………………………15
References…………………………………………………………16
Learning Guide (Week No. 7) …………………………………….……...17
Topic/s……………………………………………………….……17
Expected Competencies………………………………………..….17
Content/Technical Information …………………………………..18-32
Progress Check…… ……………………………………………...33
References…………………………………………………..…….34
Learning Guide (Week No. 8)……………………………………………35
Topic/s……………………………………………………….……35
Expected Competencies…………………………………………..35
Content/Technical Information…………………………………..36-46
Progress Check…… ………………………………………….….47
References…………………………………………………….….48
List of References………………………………………………………………49
About the Author/s……………………………………………………………..50
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
iii
COURSE DESCRIPTION
The subject deals with two major topic: Production Management and Quality
Control. It includes basic principles of production management and their effective application
geared toward producing optimum output as per required quality, the different methods and
techniques used to control quality of products. Topics such as forecasting, inventory control,
schedule routing and dispatching are given emphasis for effective control of production. Also,
this subject presents statistical tools that will equip students on the fundamentals of quality
control and background of the management systems abide and complied by the industry.
LEARNING OUTCOMES
By the end of the course, the students will be able to do the following:
1. explain the basic concept of production management and quality control as applied
to operation and manufacturing set up;
2. exhibit ability to present data and and analysis through the use of statistical tools
for proper control of quality products; and
1. Make-up exams and quizzes will only be given with prior approval of the professor and
under exceptional circumstances. For excused absences during the exam, the university
policy will be followed.
2. Students are not allowed to leave the classroom once the class has started, unless extremely
necessary. Students who leave the classroom without any valid reason will be marked absent.
3. Students are expected to comply strictly with the university’s rule on dress code, class
tardiness and attendance.
4. Cell phones or any e-gadgets must be turned off or put in a silent mode during class hours.
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
iv
5. Late homework or projects will not be accepted. Students are expected to maintain
complete honesty and integrity in their academic work. Acts of academic dishonesty, such as
cheating, plagiarism, or inappropriately using the work of others to satisfy course
requirements, will not be tolerated and may result in failure of the affected assignments
and/or failure of this class.
GRADING SYSTEM
Final Grade : (Prelim Grade x 0.30) + (Mid-term Grade x 0.30) + (End term
Grade x 0.40)]
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
1
LEARNING GUIDE
TOPIC/S
TRANSPORTATION MODEL
EXPECTED COMPETENCIES
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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CONTENT/TECHNICAL INFORMATION
Transportation model is used to determine how the available supplies from the
different factories can be allocated to the warehouses that store or demand those goods, so
that the overall cost of shipping is reduced. Typically, the problem analysis would create a
shipping plan that applies only to a certain period of time, but once the parameters or
constraints are changed the plan for allocation also changes.
1. Point of origin and the capacity or available supply for a certain period from each
source
2. Point of destination and the demand per location for a certain period
3. The cost of shipping one unit from each source to individual destination
These data are then arranged in a table for the analysis and computation.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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1. The products to be delivered shall be homogeneous (i.e., they are the same
regardless of their source or destination).
2. Shipping costs per unit shall be the same, regardless of the amount of units
delivered.
3. There is only one path or mode of transport between each origin and destination.
North-West Method:
Below are the steps on finding initial solution using the north-west method:
1. Construct a table that contains a row for each source and a column for each
destination. A path from a source to a destination is represented by each cell.
The demand of each destination is given at the base of each column and at the
end of each row the stock of each source is specified. Enter quantities to
indicate how many units are to be sent along that route in each cell.
2. Start with the left-hand top corner (the north-west corner). Allocate the maximum
quantity available at this destination to satisfy the requirement (whilst not
exceeding the stock at this source).
3. Upon emptying each stock, shift one square down and assign as many items as
possible from the next source until the destination requirement is met. Shift
one square to the right as each demand is met, and allocating as many units as
possible again.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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4. If all the stock is allocated and all the demands are met, stop
Example:
Given the data indicated in the table below, compute for the initial solution using
the north-west method.
Solution:
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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This process is normally used to determine the initial solution of the problem by
identifying the transportation with the lowest cost. This is a trial and error process, the
answer generated from this method is considered to be the the nearest of the optimal
solution.
1. Assess the cost of transportation and identify the lowest-cost square (in case of
tie make an arbitrary selection ).
2. Allocate the maximum possible units to the lowest cost square, depending on
the inventory setting.
3. Delete the row or column whose allocation are satisfied (or both)
4. Repeat steps 1 and 3 after you have allocated all the units.
Sample Problem:
Solve for the initial solution given the data on the below using intuitive method
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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When there is no alternative option to reduce the cost , then the solution is optimum.
1. Select a water square (a square without any allocation) to assess, row by row.
2. Tracing/forming a closed loop back to the original square through squares that are
currently being used, starting at this square.
3. At the unused corner (water square), beginning with a plus (+) sign, position
alternate minus and plus signs at each corner of the path just traced.
4. By first adding the unit cost values contained in each square containing a plus sign
and subtracting the unit cost in each square containing a minus sign,
calculate an improvement index (the net cost change for the path).
5. Repeat steps 1 through 4 until an improvement index for all unused squares has
been determined.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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Evaluation of cost from optimality test by observing the sign of the net cost change
The negative sign (-) means that by making the shift, a decrease on cost can be made.
If the shift would be made, the positive sign (+) indicates an increase in cost.
It means that the optimum solution has been obtained if all the signs are positive.
If more than one square has a negative symbol, then in the case of tie, the water
squared with the largest negative net cost shift is chosen for a faster solution; select
one of them randomly.
Choose the route (unused square) with the highest negative shift index if an
enhancement is feasible.
Select the smallest number contained in the squares containing minus signs on the
closed path for that direction, apply this number to all squares with plus signs on the
closed path and deduct it from all squares with a minus sign. Repeat this procedure
until all unused squares have been evaluated.
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
10
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
11
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
12
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
13
Sample MODI index number and cell evaluation from previous problem
In the given problem, two cells appear to have negative evaluation; the cell 3-B and 1-
C with a value of -1 and of -5 respectively. Select the value that implies a bigger
improvement and ignore the other cell. In this case select 1-C and shift quantity as many as
possible to maximize the reduction.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
14
Cost Computation:
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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PROGRESS CHECK
Determine the optimum distribution for this company to minimize shipping costs through
north-west and stepping stone method.
2. A Timber company ships pine flooring to three building supply houses from its mills in
Bhunya, Mondi and Pigg’s Peak. Determine the best transportation schedule for the data
given below using the Northwest corner rule and the Stepping Stone method.
3. A trucking company has a contract to move 115 truckloads of sand per week between three
sand-washing plants W,X and Y, and three destinations, A,B and C. Cost and volume
information is given below. Compute the optimal transportation cost using intuitive method
and MODI.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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REFERENCES
Textbook/s:
S. Anil Kumar and N. Suresh, Production and Operation Management, 2nd Edition,
New Age International Publisher, 2008
Online:
https://www.scribd.com/presentation/461044209/Transportation-Model
https://www.youtube.com/watch?v=ItOuvM2KmD4
https://www.youtube.com/watch?v=KVGEXbmvsfk
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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LEARNING GUIDE
TOPIC/S
Queuing Theories
Queuing Models
EXPECTED COMPETENCIES
3. illustrate the measures of system performance that are used in queuing; and
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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CONTENT/TECHNICAL INFORMATION
In any operation, you can always see a queuing process. In our daily activities we
encounter waiting lines in the fast food chains, supermarket, banks, and agencies. In the end
of the supplier this can result to lost of income, adds up to the operating cost of the business
and unsatisfied customers.
Waiting lines can be found whenever customers randomly arrive for service. They
occur when there is an unbalanced supply and demand, meaning the ability of the operation
to cater the customers are not equal to the available service providers. In lean manufacturing,
this is considered as a waste and a non-value occurrence.
For clients, waiting for service can vary from reasonable (usually short waits), to
irritating (longer waits), to being a matter of life and death (e.g., in emergencies). The cost of
waiting for companies comes from reduced efficiency and a competitive disadvantage. For
economy, cost of waiting is equivalent to wasted resources and reduction of the standard of
living.
In the actual scenario of operation, customers and provision of service is not ideal.
The operation may at times be very busy but at some point it is idle. Customers arrived at
random intervals and giving of service is not always the same. And when this happens the
system gets overloaded and waiting lines occurs.
Management focus is to find the ideal level of service to provide and minimization of
cost through analysis of models of waiting lines.
Capacity Cost are the costs of maintaining the ability to provide service
Customer Waiting Cost includes salaries paid to employees while they wait for the
service, cost of the space for waiting and any loss of business due to customers
refusing to wait and possibly going to others in the future
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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QUEUING SYSTEM
Customers enter a waiting line of a service facility, receive service when their turn
comes, and then leave the system
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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Characteristics:
The size of the calling population can be either unlimited (essentially
infinite) or limited (finite).
The pattern of arrivals can arrive according to a known pattern or can
arrive randomly. Random arrivals generally follow a Poisson
distribution.
Behavior of arrivals
Most queuing models assume customers are patient and will wait in
the queue until they are served and do not switch lines. But
there are other behaviors that are being argued in queuing
theory such as:
Balking refers to customers who refuse to join the queue.
Reneging customers enter the queue but become impatient
and leave without receiving their service.
Characteristics:
Waiting lines can be either limited or unlimited.
Queue discipline refers to the rule by which customers in the line
receive service.
The most common rule is first-in, first-out (FIFO).
Other rules are possible and may be based on other important
characteristics.
Other rules can be applied to select which customers enter which
queue, but may apply FIFO once they are in the queue.
Characteristics:
Service systems are classified in terms of the number of channels, or
servers, and the number of phases, or service stops.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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A notation which was developed by D. G. Kendall that is used for queuing models
specifies the pattern of arrival, the service time distribution, and the number of channels.
a. A single-channel model with Poisson arrivals and exponential service times would be
represented by:
M/M/1
M/M/2
c. A three-channel system with Poisson arrivals and constant service time would be
M/D/3
d. A four-channel system with Poisson arrivals and normally distributed service times
would be
M/G/4
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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When these assumptions are met, a series of equations can be developed that
define the queue’s operating characteristics.
Let:
λ = mean number of arrivals per time period
μ = mean number of customers or units served per time period
The arrival rate and the service rate must be defined for the same time period
λ
L =
μ−λ
1
W=
μ−λ
�2
�� =
�(� − �)
�
�� =
�(� − �)
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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5. The utilization factor for the system, the probability the service facility is being
used:
λ
ρ=
μ
�
�0 = 1 −
�
7. The probability that the number of customers in the system is greater than k:
�
��>� = ( )�+1
�
Total Waiting Cost = (Total time spent waiting by all arrivals) * (Cost of waiting)
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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Sample Problem:
A car mechanic can render 3 repair service per hour. Customers arrive at a rate of 2
per hour. Estimated cost for customer’s waiting is Php50 per hour, wage of mechanic is
Php100 per hour and the operation is 8 hours per day.
Given:
μ = 3 repair service per hour
λ = 2 customers arrived per hour
Solution:
λ 2 2
1. L = μ−λ = 3−2 = 1 = 2 L = 2 average repair services in the system
1 1 1
2. W = μ−λ = 3−2 = 1 = 1 W = 1 hour, average time customer spends in a system
�2 22
3. �� = �(�−�) = 3(3−2) = 1.33 �� = 1.33 customers, average queue in the system
� 2 2
4. �� = �(�−�) = 3(3−2) = 3 �� = 40 minutes average waiting time per customer
λ 2
5. ρ = μ = 3 = 0.67 ρ = 67 % of the time the car mechanic is busy
� 2
6. �0 = 1 − � = 1 − 3 = 0.33 �0 = 33% probability that 0 cars are in the system
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
26
The shop owner would want to hire a new mechanic, whose rate is Php125 per hour
but can process 4 customers per hour.
λ 2 2
1. L = μ−λ = 4−2 = 2 =1 L = 1 average repair services in the system
1 1 1
2. W = μ−λ = 4−2 = 2 =0.50 W = 0.50 hour, ave. time customer spends in a system
�2 22 1
3. �� = �(�−�) = 4(4−2) = 2 �� = 0.50 customers, average queue in the system
� 2 1
4. �� = �(�−�) = 4(4−2) = 4 �� = 15 minutes average waiting time per customer
λ 2
5. ρ = μ = 4 = 0.50 ρ = 50 % of the time the car mechanic is busy
� 2
6. �0 = 1 − � = 1 − 4 = 0.50 �0 = 50% probability that 0 cars are in the system
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
27
Multichannel Queuing Model with Poisson Arrivals and Exponential Service Times
(M/M/m)
Let:
m = number of channels open
λ = average arrival rate
μ = average service rate at each channel
1
�0 = 1 � � 1 � �� for mμ>λ
[ �=�−1
�=0 ( ) ]+ ( )�
�! � �! � ��−�
λ
λμ( )m λ
μ
L= P 0 +
(m − 1)! (mμ − λ)2 μ
3. The average time a unit spends in the waiting line or being served, in the system
λ
μ( )m 1 L
μ
W= 2 P0 + =
(m − 1)! (mμ − λ) μ λ
�
�� = � −
�
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
28
1 ��
�� = � − =
� �
λ
ρ=
mμ
SAMPLE PROBLEM:
In the problem stated above, the owner is considering to open a new shop where he
would hire a mechanic with the same rate as his first one and the rate of arrival of customers
is the same.
Solution:
1
�0 = 1 2 1 2 2(3)
= 0.50
1
[ ( )0 ] + ( )2
�=0 0! 3 2! 3 (2)(3)−2
λ
λμ( )m λ
μ
L= 2
P0 +
(m − 1)! (mμ − λ) μ
2
2(3)( )2 1 2
3
L= 2 (2) +
= 0.75
(2 − 1)! [(2)(3) − 2) 3
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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3. The average time a unit spends in the waiting line or being served, in the system
L
W=
λ
3
4 3
W= = hours = 22.5 minutes
2 8
�
�� = � −
�
3 2 1
�� = − = = 0.083
4 3 12
1 ��
�� = � − =
� �
�� 0.083
�� = = = 0.0417 ℎ���� = 2.5 �������
� 2
Conclusion: The option with the least total cost is hiring a new mechanic with faster rate of
service.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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�2
�� =
2�(� − �)
�
�� =
2�(� − �)
λ
L = Lq +
μ
4. Average time in the system
1
W = Wq +
μ
SAMPLE PROBLEM:
The company collects and compacts aluminum cans and glass bottles. Trucks arrive at
an average rate of 8 per hour (Poisson distribution). Truck drivers wait about 15 minutes
before they empty their load. Drivers and trucks cost $60 per hour.A new automated machine
can process truckloads at a constant rate of 12 per hour. A new compactor would be
amortized at $3 per truck unloaded.
Given:
Waiting time (current) = 15 minutes = 0.25 hour
Waiting Cost (current) = $60
λ (new) = 8 trucks / hour
μ (new) = 12 trucks / hour
Solution:
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�
�� =
2�(� − �)
8 1
�� = = ℎ���� = 0.083 ℎ����
2(12)(12 − 8) 12
When the population of potential customers is limited, the models are different.
There is now a dependent relationship between the length of the queue and the arrival
rate.
1
�0 = �! �
�
( )�
�=0 (�−�)! ��
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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�+�
�� = � − ( )(1 − �0 )
�
L = Lq + (1 − P0)
��
�� =
(� − �)�
1
W = Wq +
μ
�! �
�� = (�−�)! (� )� (�0 ) for n=0,1,…, N
CONSTRAINT MANAGEMENT
Shift demand
Variable pricing strategies can be effective in smoothing demand more evenly on the
system
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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PROGRESS CHECK
Problem Solving: Read, analyze and answer the following problems (10 points each)
1. Many of a bank’s customers use its automatic teller machine to transact business after
normal banking hours. During the early evening hours in the summer months, customers
arrive at a certain location at the rate of one every other minute. This can be modeled using a
Poisson distribution. Each customer spends an average of 90 seconds completing his or her
transactions. Transaction time is exponentially distributed. Determine:
a. The average time customers spend at the machine, including waiting in line and
completing transactions.
b.The probability that a customer will not have to wait upon arriving at the automatic
teller machine.
c.The average number waiting to use the machine.
2. A small town with one hospital has two ambulances to supply ambulance service. Requests
for ambulances during non-holiday weekends average .45 per hour and tend to be Poisson-
distributed. Travel and assistance time averages two hours per call and follows an exponential
distribution. Find:
a. System utilization.
b. The average number of customers waiting.
c. The average time customers wait for an ambulance.
d. The probability that both ambulances will be busy when a call comes in.
3. A milling department has 10 machines. Each operates an average of eight hours before
requiring adjustment, which takes an average of two hours. While running, each machine can
produce 40 pieces an hour.
a. With one adjuster, what is the net average hourly output per machine?
b. If machine downtime cost is $80 per hour and adjuster cost is $30 per hour, how
many adjusters would be optimal?
4. Trucks arrive at the loading dock of a wholesale grocer at the rate of 1.2 per hour. A single
crew consisting of two workers can load a truck in about 30 minutes. Crew members receive
$10 per hour in wages and fringe benefits, and trucks and drivers reflect an hourly cost of $60.
The manager is thinking of adding another member to the crew. The service rate would then
be 2.4 trucks per hour. Assume rates are Poisson.
a.Would the third crew member be economical?
b.Would a fourth member be justifiable if the resulting service capacity were 2.6
trucks per hour?
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
34
REFERENCE
Textbook/s:
S. Anil Kumar and N. Suresh, Production and Operation Management, 2nd Edition,
New Age International Publisher, 2008
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
35
LEARNING GUIDE
TOPIC/S
Introduction to Quality
Quality Fundamentals
Dimensions of Quality
Cost of Quality
Benefits and Consequences
Problem Solving
Quality Tools
EXPECTED COMPETENCIES
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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CONTENT/TECHNICAL INFORMATION
Operation nowadays does not only focus on product costs but most especially they
focus on the quality of products or service they give. If the product or service surpass the
customers expectation then the product is considered to be of good quality. But according to
ANSI (American National Standard Institute) and ASQ (American Society of Quality),
quality is the entirety of a product or service's features and characteristics that help its ability
to meet implied or specified needs.
Implied needs are those that are specifically written and agreed upon by the customer
Specified Needs are needs identified in functions of market such as safety, availability,
maintainability, reliability, usability, impact to environment and economics (price). These
needs are then translated to product specification which are identifiable and measurable. But
these are also reviewed periodically due to the changing needs of the end-user.
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for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
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Dimensions of Quality:
Product Quality
Service Quality
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Quality Determinants
The level to which a product or service satisfy its intended function effectively
has four primary determinants:
1. Quality of Design.
Designers' aim to incorporate or remove characteristics in a product or
service. The variety of products or services reflects the quality of the design
developed by the designers. Customer expectations, manufacturing or service
capacities, protection and liability (both during production and after delivery),
costs, and other related components must be taken into account in design
decisions.
2. Quality of Conformance.
The degree to which products and services adhere to (i.e. attain) the
designers' purpose. This is influenced by factors such as the capacity of the
equipment used; the abilities, training and encouragement of employees; the
degree to which the design lends itself to production; the conformity
evaluation monitoring process; and, where appropriate, the taking of
corrective measures
3. Ease of use.
These refers to the ease of usage of the product or services for the
customers. The term “ease of use” refers to user instructions. Designing a
product with “ease of use” increases the chances that the product will be used
in its intended design and it will continue to function properly and safely.
4. Service after delivery.
There will be times when products may fail or problems with usage
may occur. This is when “Service after delivery” is important through recall
and repairs of the product, adjustment, replacement or buys back, or
reevaluation of a service.
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
39
2. Design
Quality of products and services begins with design. This includes not just the
product or service features but also includes attention to the processes necessary to
manufacture the goods and/or services that will be needed to provide consumers with
the service.
3. Procurement
It is the responsibility of the procurement department to acquire products and
services that would not affect the quality of the goods and services of the company.
4. Operation / Production
Production/operations are responsible for ensuring that processes of goods and
services comply with the requirements created of the design. Management system and
the identification and correction of root causes of problems are essential elements of
this function.
5. Quality Assurance
Quality assurance is responsible for data collection, analysis and evaluation of
problems then collaborating with other areas for activities to solve problems.
8. Customer Care
The first unit to learn about customer concerns is always the customer service.
They are responsible for distributing this information to the appropriate agencies,
engaging with customers in a sensible manner, working on solving issues, and
keeping track to ensure that the situation has been effectively addressed.
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
40
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
41
Quality Control
Refers to use of different techniques to achieve, maintain and improve the quality of a
product or service.
This involves integration of methods and activities such as product design and
specifications, manufacturing and installation to meet the required specifications, inspection
of products to determine conformance, and review of usage for needed revision of the
product
Quality Assurance
Quality assurance are planned or systematic activities and mechanisms necessary to
ensure adequate confidence that a product or service will meet specified quality requirements..
These includes:
quality parameters for continuous evaluation for adequacy & effectiveness.
corrective measures
feedback initiated where necessary
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
42
2. Check sheet:
An organized form that helps in preparing, collecting and analyzing data; a generic
tool that can be adapted for a wide variety of purposes.
Figure 3: Sample Check sheet Format
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
43
3. Control chart:
Graph used to study how a process changes over time. Comparing current data to
historical control limits leads to conclusions about whether the process variation is consistent
(in control) or is unpredictable (out of control, affected by special causes of variation).
Figure 4: Control Chart Sample (Moving Range)
4. Histogram:
The most common used graph for showing the distribution of frequency, or how often
the value occurs in a set of data
Figure 5: Sample Histogram
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
44
5. Pareto chart
A graph (bar) that shows which factors or cause are more significant.
Figure 6: Pareto Chart Example
6. Scatter diagram:
Pairs of numerical data that are presented in a graph with one variable on each axis, to
look for a relationship.
Figure 7: Scatter Diagram Sample
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
45
7. Stratification:
A technique that separates data gathered from a variety of sources so that patterns can
be seen
Figure 8: Sample of Stratification
1. Affinity diagram. Organizes the natural relationships of broad or large number of ideas.
3. Tree diagram. It divides large categories into detail to help carry out a step-by-step
thinking from generalities to particulars.
4. Matrix diagram. Illustrates the correlation between two, three, or four groups of data
such as its impact, the responsibilities performed and other factors
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
46
6. Arrow diagram. Demonstrates the appropriate order of tasks in a project or process, the
best timetable for the project as a whole, possible issues and solution with resources and
their coordination.
7. Process decision program chart. Systematically defines what may be wrong with a
proposal under construction.
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
47
PROGRESS CHECK:
II. Discussion. Read the following statements and explain briefly. (5 points each)
1. Use the dimensions of quality to describe typical characteristics of these products
and services:
A. Mobile phone
B. School Canteen Service
2. A computer repair shop had received a number of complaints on the length of time
it took to make repairs. The manager responded by increasing the repair staff
by 10 percent. Complaints on repair time quickly decreased, but then
complaints on the cost of repairs suddenly increased. Oddly enough, when
repair costs were analyzed, the manager found that the average cost of repair
had actually decreased relative to what it was before the increase in staff.
What are some possible explanations for the complaints, and what actions
might the manager contemplate? As a manager, how would you deal with the
possibility that customer satisfaction does not always lead to customer
retention?
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
48
REFERENCES
Textbook/s:
S. Anil Kumar and N. Suresh, Production and Operation Management, 2nd Edition,
New Age International Publisher, 2008
Online:
https://asq.org/quality-resources/seven-basic-quality-tools
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
49
LIST OF REFERENCES
S. Anil Kumar and N. Suresh, Production and Operation Management, 2nd Edition,
New Age International Publisher, 2008
https://www.scribd.com/presentation
https://asq.org/quality-resources
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.
50
This module's author is a licensed mechanical engineer who graduated in 2002 with her
course at TUP-Visayas. Her preceding industry experience for approximately 10 years covers
maintenance and operation. She works as a specialist, officer, and supervisor that allows her
to apply and practice various management functions. She is currently a TUP-Visayas faculty.
This module is a property of Technological University of the Philippines Visayas and intended
for EDUCATIONAL PURPOSES ONLY and is NOT FOR SALE NOR FOR REPRODUCTION.