Operations Management
Operations Management
17th Edition
ISBN: 9781259142208
Author: CACHON, Gérard, Terwiesch, Christian
Publisher: Mcgraw-hill Education,
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Chapter 7, Problem 7CQ
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To determine: If the given statement is true or false.

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Process time is part of cycle time.  The process time of a business process refers to: a. alWways is the largest part of cycle time. b. timMe a customer spends waiting in a queue (e.g., time customer spends waiting in a drive-thru line) c. is ofFten considered to be value-added time to the customer. d. timMe from beginning to completion of the business process.
A graphics reproduction i rm has four units of equipment that are automatic but occasionallybecome inoperative because of the need for supplies, maintenance, or repair. Eachunit requires service roughly twice each hour, or, more precisely, each unit of equipmentruns an average of 30 minutes before needing service. Service times vary widely, rangingfrom a simple service (such as pressing a restart switch or repositioning paper) to moreinvolved equipment disassembly. The average service time, however, is i ve minutes.Equipment downtime results in a loss of $20 per hour. The one equipment attendant ispaid $6 per hour.Using i nite queuing analysis, answer the following questions:a. What is the average number of units in line?b. What is the average number of units still in operation?c. What is the average number of units being serviced?d. The i rm is considering adding another attendant at the same $6 rate. Should the i rmdo it?
A lab provides ultrasound service to patients. The service process consists of two steps: 1. Registration. Performed by a receptionist (Salary rate = $25/hr; Process time = 6 minutes/patient) 2. Ultrasound scan. Performed by a technician (Salary rate = $30/hr; Process time = 20 minutes/patient) Note that the ultrasound images need to be read by radiologists, but we assume that they have an ample capacity and thus will not model the role in the service process. Currently, the lab has 2 receptionists and 3 technicians. The manager anticipates demand to grow to 14 patients/hr in the near future. Thus, he plans to hire more receptionists and/or technicians to increase the service capacity to at least 14 patients/hr. What would be the extra payroll cost (in dollars per hr)?
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