Operations Management – II

Term – III

Assignment 2

Section C
Group 3

Ujjawal Sawarn 18FPM001

Sumeet Sharma 18FPM002
A.Manish Kumar 18FPM003
Darshan Pandya 18FPM004
Shreyan Gedam 18PGP179
Venu Vardhan 18PGP246
 Operations Management – II
Assignment 2
Group 3

Question 1
Question 2

For week 1, we are facing back order situation for item E. In order to tackle this situation, we can
negotiate with our suppliers to provide us with sufficient amount of item E to fulfill the backorders in
the first week itself.
We must also ensure that the schedule receipts for the subsequent weeks are received on time to avoid
further backorders.

Question 3
(a)

(b) As the schedule receipts for item E in the week 1 is very large, i.e. 800, it is necessary to ensure
that the suppliers stick to the schedule receipts so that MRP of other parent items like C & D do not
get affected.
(c)

If this new emergency order of product A (200 units) is accepted, this will lead to huge backorders for
product E, which can be easily observed in MRP of Product E. In order to manage such huge
backorders, we must have a sufficient amount of schedule receipts beforehand. This may not be
possible in such a short span of time.
However, an alternative way to tackle this situation is not to accept this emergency order.

Question 4
a) Beginning Inventory = 400
FOQ = 500
Lead time = 1 week

(b)
Question 5
(a)

(b) Most prevalent defect is Misplaced transistors with 47.13 %

(c) If we initially start with concentrating on misplaced transistors, wrong components and defective
board transmission we can show effective and high impact on reducing the occurrence of defects.
Question 6

Question 7
(a) Out of those surveyed, 18.81% people found nothing they disliked.
(b)
(c)

(d)
If I was managing airline I would like to focus initially on those issues solving which would help me
to solve majority of my problems. So, if we refer pareto chart we can observe that following are the
issues which needs immediate attention as they are the major ones:
 Security Measures (22.92%)
 Fear of Flying (10.98%)
 Cramped Seats (8.67%)
 Late Planes (10.98%)

Question 8
(a) As shown in the scatter plot below, there a very strong positive correlation (R2=95.1%)
between Total No. of Shipments and No. of Defective Shipments. Hence, we can safely
conclude that there is a strong relationship between Total No. of Shipments and No. of
Defective Shipments.

Question 8 (a)
R² = 0.951
16

14
No. of Defective Shipments

12

10

0
0 10 20 30 40 50
Total No. of Shipments
 (b) As shown in the scatter plot below, there is very weak correlation (R 2 = 35.98%) between the
variable “Turnover” and the No. of Defective Shipments. Hence, we can safely conclude that
there is little to no relationship between the variable “Turnover” and the No. of Defective
Shipments.

Question 8 (b)
R² = 0.3598
16

14

12
No. of Defective Shipments

10

0
0 1 2 3 4 5 6 7
Turnover

(c)
(d)

Question 9

(a) Based upon the given table, we can calculate the UCL and LCL for the X-chart and R-chart as
follows:
𝑋̿ = 8.066666667
𝑅̅ = 0.38
A2 = 0.373
D4 = 1.864
D3 = 0.136

For X-chart :
As we do not know the standard deviation for the samples,
UCL = 𝑋̿ + A2 ̅𝑅
= 8.208407

LCL = 𝑋̿ - A2 ̅𝑅
= 7.924927

For R-chart :
As we do not know the standard deviation for the samples,
UCL = D4 ̅𝑅
= 0.70832

LCL = D3 ̅𝑅
= 0.05168
(b)

Question 9 (b)
X-Chart
8.3
8.25
8.2
Axis Title
8.15
8.1
8.05
8
7.95
7.9
1 2 3 4 5 6
X-bar 8.04 8.26 7.94 8.05 7.98 8.13
UCL 8.20840678.20840678.20840678.20840678.20840678.2084067
LCL 7.92492677.92492677.92492677.92492677.92492677.9249267
mean 8.06666678.06666678.06666678.06666678.06666678.0666667

Interpretation of X-Chart :
As seen in the X-Chart above, there is a lot of erratic variation.
Sample 2 clearly lies out of control limits and must be investigated immediately.
Sample 3, though within the control limits, is very close to the LCL and therefore
must also be investigated immediately.
We may also investigate sample 5 and 6 for it is neither close to LCL nor to the
Mean Line.
However, no trend is observed in the X-Chart.

Question 9 (b)
R-Chart
0.8
0.7
0.6
Axis Title

0.5
0.4
0.3
0.2
0.1
0
1 2 3 4 5 6
R 0.76 0.43 0.32 0.41 0.33 0.03
UCL 0.70832 0.70832 0.70832 0.70832 0.70832 0.70832
LCL 0.05168 0.05168 0.05168 0.05168 0.05168 0.05168
mean 0.38 0.38 0.38 0.38 0.38 0.38

Interpretation of R-Chart:
As seen in the R-Chart above, not only the R values of sample 1 & 6 lie outside the
control limits, but also there is a steep downward trend from sample 1 to sample 6.

Hence, we can safely conclude that the Process Variability is out of statistical
control, and we should immediately investigate for the causes of excessive
variability and address them.
Question 10

(a) Based upon the given table, we can calculate the UCL and LCL for the X-chart and R-chart as
follows for the first 15 samples:
𝑋̿ = 13.06667
𝑅̅ = 9.933333
A2 = 0.577
D4 = 2.115
D3 = 0

For X-chart :
As we do not know the standard deviation for the samples,
UCL = 𝑋̿ + A2 ̅𝑅
= 18.7982

LCL = 𝑋̿ - A2 ̅𝑅
= 7.335133

For R-chart :
As we do not know the standard deviation for the samples,
UCL = D4 ̅𝑅
= 21.009

LCL = D3 ̅𝑅
=0

Chart Title
19

17

15
Axis Title

13

11

7
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
LCL 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335 7.335
X-bar-bar 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07 13.07
UCL 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8 18.8
X-bar 17 14 8 17 12 13 15 16 13 14 16 9 11 9 12
 R-chart for Sample 1 to 15

20.00

15.00
Axis Title

10.00

5.00

0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
LCL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
R-bar 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93
UCL 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01
R 6 11 4 8 9 14 12 15 10 10 11 6 9 11 13

(b) Process is out of control because the variations are occurring due to reasons other
than natural causes as can be seen from the control charts below.

X-bar chart for Sample 16 to 25

22.0000

20.0000

18.0000

16.0000
Axis Title

14.0000

12.0000

10.0000

8.0000

6.0000
1 2 3 4 5 6 7 8 9 10
LCL 7.3351 7.3351 7.3351 7.3351 7.3351 7.3351 7.3351 7.3351 7.3351 7.3351
CL 13.0667 13.0667 13.0667 13.0667 13.0667 13.0667 13.0667 13.0667 13.0667 13.0667
UCL 18.7982 18.7982 18.7982 18.7982 18.7982 18.7982 18.7982 18.7982 18.7982 18.7982
mean 11 14 9 15 17 19 13 22 20 18
 Chart Title
20.00

15.00
Axis Title

10.00

5.00

0.00
1 2 3 4 5 6 7 8 9 10
LCL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
CL 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93 9.93
UCL 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01 21.01
range 7 11 6 4 12 14 11 10 8 6

(c) Drift in Mean is given by X-chart, whereas an Increase in Variability is given by R-

chart. As seen from the figures above, we can clearly see that in X-chart, the process
mean is out of control and in R-chart, the process variability is within control.
Hence, the process is out of control due to the Drift in Mean only.