Production and Operations Management - FINAL Fall 2025

1. Explain the steps of Project Life Cycle and the monitoring system. Summarize properly with example and in point manner the effect of Production and Operations Management course to increase productivity for the business and for your self. 8 2. a. List your underlying assumptions about Break-Even Analysis 4 b. OM explorer owner of Williams products estimates the variable costs of each unit produced and sold at $6 and the fixed costs per year at $ 60,000. If the selling price is set at $ 18 each, how many units must be produced and sold for Williams to break even? Draw the chart also. Analyze profit contribution if selling price is $14 for forecasting sales of 12000 units and 15000 units. 4 3. a. Examine the cost of quality for a specific product with example. 4 b. The total processing cost for producing local T-Shirt is $21. The Arunima Company starts production of 600 pieces of shirt weekly and the average weekly yield is 80%, with 20% defective shirt. One-quarter of the defective shirt can be reworked at a cost of $5. Analyze product cost per unit & quality productivity ratio (QPR). Compute the Product cost per unit & QPR if the product yield is increased to 95% good quality. 4 4. Country Hospital orders syringes from a hospital supply firm. The hospital expects to use 40,000 per year. The cost to order and have the syringes delivered is $800. The annual carrying cost is $1.90 per syringe because of security and theft. The hospital supply firm offers the following quantity discount pricing schedule. Quantity Price 0-999 $ 3.40 1000-19,999 $ 3.20 20,000-29,999 $ 3.00 30,000-39,999 $ 2.80 40,000-49,999 $ 2.60 50,000 + $ 2.40 Determine the order size for the hospital. 8 5. Determine a network for the project below for critical path and project completion time. Also determine the Activity Slack. Activity Predecessor Time (In Weeks) A 4 B 6 C A 2 D A 8 E A 7 F E 4 G F,D 4 H B,C 4 I G,H 3 K I 2 8 Alex Mason has a wide-curving, uphill driveway leading to his garage. When there is a heavy snow, Alex hires a local carpenter, who shovels snow on the side in the winter, to shovel his driveway. The snow- shoveler charges $30 to shovel the driveway. Following is a probability distribution of the number of heavy snows each winter. Heavy Snows 1 2 3 4 5 6 7 Probability 0.12 0.19 0.24 0.22 0.13 0.08 0.02 Alex is considering the purchase of a new self-propelled snow blower for $575 that would allow him, his wife, or his children to clear the driveway after a snow. Provide your Opinion either he should buy or hire the snow- shoveler.