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Production Engineering Class Tasks

This document contains 6 questions related to production engineering and forecasting techniques. It asks students to calculate productivity measures, forecast future demand using different methods, and evaluate the accuracy of two forecasting techniques by calculating error measures. The questions provide data on production output, sales, customer numbers, and demand forecasts to analyze using calculations and graphing. The goal is to help students learn how to apply quantitative analysis and choose the most appropriate forecasting approach.

Uploaded by

Khalid Abdirashid Abubakar
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© © All Rights Reserved
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65 views2 pages

Production Engineering Class Tasks

This document contains 6 questions related to production engineering and forecasting techniques. It asks students to calculate productivity measures, forecast future demand using different methods, and evaluate the accuracy of two forecasting techniques by calculating error measures. The questions provide data on production output, sales, customer numbers, and demand forecasts to analyze using calculations and graphing. The goal is to help students learn how to apply quantitative analysis and choose the most appropriate forecasting approach.

Uploaded by

Khalid Abdirashid Abubakar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SOMALI NATIONAL UNIVERSITY

Introduction to Production Engineering


Class Activity I
1. Compute the multifactor productivity measure for each of the weeks shown for production of
chocolate bars. What do the productivity figures suggest? Assume 40-hour weeks and an hourly
wage of $12. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound.
Week Output (units) Workers Material (lbs)
1 30,000 6 450
2 33,600 7 470
3 32,200 7 460
4 35,400 8 480
2. A commercial bakery has recorded sales in dozen for the products as shown below:
Blueberry Cinnamon
Day Cupcakes
Muffins buns
1 30 18 45
2 34 17 26
3 32 19 27
4 34 19 23
5 35 22 22
6 30 23 48

12 31 28 26
13 35 29 27
14 34 31 24
15 33 33 22
(a) Predict orders for the following day for each of the products using an appropriate naïve method. Also Plot
each data set.

3. The following table shows data on the average number of customers processed by several bank
service units each day. The hourly wage rate is $25, the overhead rate is 1.0 times labor cost, and
material cost is $5 per customer.
Customers
Unit Unit Employees
Processed/Day
A 4 36
B 5 40
C 8 60
D 3 20
(a) Compute the labor productivity and the multifactor productivity for each unit. Use an eight-hour day
for multifactor productivity.

4. A property title search firm is contemplating using online software to increase its search
productivity. Currently an average of 40 minutes is needed to do a title search. The researcher cost
is $2 per minute. Clients are charged a fee of $400. Company A’s software would reduce the average
search time by 10 minutes, at a cost of $3.50 per search. Company B’s software would reduce the
average search time by 12 minutes at a cost of $3.60 per search. Which option would have the highest
productivity in terms of revenue per dollar of input?

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SOMALI NATIONAL UNIVERSITY
Introduction to Production Engineering
Class Activity I
5. A company records indicates that monthly sales for a seven-month period are as follows:
Month Sales (000, unit)
Feb 19
Mar 18
Apr 15
May 20
Jun 18
July 22
Aug 20
(a) Plot the monthly data as can be seen in the table above.
(b) Forecast the monthly sales using linear trend equation,
(c) A five-month moving average and exponential Smoothing technique? Assume that smoothing
constant and march forecast value are 0.20 and 19 respectively.
(d) The naïve approach
(e) A weight average method conducting 0.60 for August, 0.30 for July, and 0.10 for June.
(f) Which method seems least appropriate? Why?

6. Two different forecast techniques (F1 and F2) were used to forecast demand for cases of bottled
water. Actual demand the two sets of forecasts are as follows:
Period and Demand Predicted Demand
Period Unit sold F1 F2
1 68 66 66
2 75 68 68
3 70 72 70
4 74 71 72
5 69 72 74
6 72 70 76
7 80 71 78
8 78 74 80

(a) Compute MAD for each set of forecast. Which forecast is better or appears to be more accurate? Briefly
explain.
(b) Compute MES for each set of forecast. Which forecast is better or appears to be more accurate? Briefly
explain.
(c) Compute MAPE for each set of forecast. Which forecast is better or appears to be more accurate?
Briefly explain.

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