Question 1
Which of the following steps are value-added work?
The following data consists of the actual time used and potential (the best time possible for this review process) to complete each step in the review process. The actual times are based on the review of 30 projects. The potential times are subjective engineering judgment estimates.
Table: Basic Data Review for Construction Project Equipment Arrangement
Cycle Time (hours)
Step
Description
Actual
Potential
Difference
1
Read basic data package
4
4
2
Write, type, proof, sign, copy, and distribute cover letter
21.9
0.5
21.4
3
Queue
40
0
40
4
Lead engineer calls key people to schedule meeting
4
0.25
3.75
5
Write, type, proof, sign, copy, and distribute confirmation letter
25.4
2.1
23.3
6
Hold meeting; develop path forward and concerns
4
4
7
Project leader and specialist develop missing information
12
12
8
Determine plant preferred vendors
12
12
9
Review notes from meeting
12
12
10
Resolve open issues
106
104
2
11
Write, type, proof, sign, copy, and distribute basic data acceptance letter
26.5
0.25
26.25
Totals
267.8
151.1
116.7 t
Use the data in the table above and select the best answer
What are the sources of value-added work in this process?
A) Read basic data package
Write, type, proof, sign, copy, and distribute the cover letter
Lead engineer calls key people to schedule meeting
Write, type, proof, sign, copy, and distribute confirmation letter
Hold meeting; develop path forward and concerns
Review notes from the meeting
Resolve open issues
Write, type, proof, sign, copy, and distribute basic data acceptance letter
B) Write, type, proof, sign, copy, and distribute a cover letter
Queue
Write, type, proof, sign, copy, and distribute confirmation letter
Review notes from a meeting
Resolve open issues
Write, type, proof, sign, copy, and distribute basic data acceptance letter
C) Read basic data package
Hold meeting; develop path forward and concerns
Determine plant preferred vendors
Write, type, proof, sign, copy and distribute basic data acceptance letter
D) Queue
Lead engineer calls key people to schedule meeting
Project leader and specialist develop missing information
Determine plant preferred vendors
Review notes from the meeting
6 points
Question 2
Which activities are considered non-value added work?
Table: Basic Data Review for Construction Project Equipment Arrangement
Cycle Time (hours)
Step
Description
Actual
Potential
Difference
1
Read basic data package
4
4
2
Write, type, proof, sign, copy, and distribute cover letter
21.9
0.5
21.4
3
Queue
40
0
40
4
Lead engineer calls key people to schedule meeting
4
0.25
3.75
5
Write, type, proof, sign, copy, and distribute confirmation letter
25.4
2.1
23.3
6
Hold meeting; develop path forward and concerns
4
4
7
Project leader and specialist develop missing information
12
12
8
Determine plant preferred vendors
12
12
9
Review notes from meeting
12
12
10
Resolve open issues
106
104
2
11
Write, type, proof, sign, copy, and distribute basic data acceptance letter
26.5
0.25
26.25
Totals
267.8
151.1
116.7
A) Write, type, proof, sign, copy, and distribute a cover letter
Queue
Lead engineer calls key people to schedule meeting
Write, type, proof, sign, copy, and distribute confirmation letter
Project leader and specialist develop missing information
Review notes from a meeting
Resolve open issues
B) Write, type, proof, sign, copy, and distribute confirmation letter
Hold meeting; develop a path forward and concerns
Project leader and specialist develop missing information
Determine plant preferred vendors
Review notes from a meeting
C) Queue
Lead engineer calls key people to schedule meeting
Write, type, proof, sign, copy, and distribute confirmation letter
Hold meeting; develop path forward and concerns
D) Write, type, proof, sign, copy, and distribute a cover letter
Queue
Lead engineer calls key people to schedule meeting
Write, type, proof, sign, copy, and distribute confirmation letter
Hold meeting; develop a path forward and concerns
6 points
Question 3
Where are the main opportunities to improve the cycle time of this process, with respect to both actual time used and the potential best times? What strategy would you use?
A) Eliminate non-value added steps
B) Eliminate value-added work.
C) Use time in Queue wisely to get more work done
D) Hold more meetings to ensure work is done correctly the first time.
6 points
Question 4
Step 10: Resolve Open Issues required 104 hours (potential) versus 106 hours (actual). Is there an OFI here? Why or why not? If so, how would you attack it?
A) Increase the setup time to dilute the amount of work necessary. This reduced the issues up front.
B) On Step 10, resolve open issues, requires 106 hours cycle time (actual) and 104 hours cycle time (potential). Resolve open issue is an opportunity for improvements. Some common causes of open issues include incomplete information during the meeting, indecisions by the project leader or manager, responsible person (or people who are the expert on the case) not present in the meeting, an organization with an improper chain of commands in decision making, etc.
C) Reduce the open issues from 104 to 106 so that it is not an issue with which we should have any concern. For example, we may set up preferred vendor lists so that we can quickly reach out to our vendors for the supplies.
D) Task managers with open issue – concerns to refocus the group.
6 points
Question 5
What do you think are the most difficult critical issues to deal with when designing a sound cycle time study such as this one? Choose the best answer.
A) These problems should be addressed in all business processes so that the cycle time of the business process can be reduced. Suggestions on improving cycle time on resolving open issue include (1) well organized, well attended and well-informed path forward meeting, (2) well-established processes on what if analysis, (3) clearly defined organization structure for decision making power.
B) The most difficult issue in the project often lies in the decision making power. People who have expert knowledge on the project may not align with a person who makes the final decision. As a result, there will be a large number of open issues left for future decisions (delay the inevitable) that cause a long cycle time.
C) Resolve open issue is an opportunity for improvements. Some common causes of open issues include incomplete information during the meeting, indecisions by the project leader or manager, responsible person (or people who are the expert on the case) not present in the meeting, an organization with an improper chain of commands in decision making, etc.
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