QUESTION 1

1. Which of the following 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

   Use the data in the table above and answer the following questions in the space provided below:

   1. What are the sources of value-added work in this process?

   		Read basic data package Write, type, proof, sign, copy, and distribute 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 meeting Resolve open issues Write, type, proof, sign, copy, and distribute basic data acceptance letter
   		Write, type, proof, sign, copy, and distribute cover letter Queue Write, type, proof, sign, copy, and distribute confirmation letter Review notes from meeting Resolve open issues Write, type, proof, sign, copy, and distribute basic data acceptance letter
   		Read basic data package Write, type, proof, sign, copy, and distribute confirmation letter Hold meeting; develop path forward and concerns Determine plant preferred vendors
   		Queue Lead engineer calls key people to schedule meeting Project leader and specialist develop missing information Determine plant preferred vendors Review notes from meeting

6 points

QUESTION 2

1. 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.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

   		Write, type, proof, sign, copy, and distribute cover letter Queue Lead engineer calls key people to schedule meeting Write, type, proof, sign, copy and distribute confirmation Project leader and specialist develop missing information Review notes from meeting Resolve open issues
   		Write, type, proof, sign, copy, and distribute confirmation letter Hold meeting; develop path forward and concerns Project leader and specialist develop missing information Determine plant preferred vendors Review notes from meeting Resolve open issues Write, type, proof, sign, copy, and distribute basic data acceptance letter
   		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
   		Write, type, proof, sign, copy, and distribute cover letter 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

6 points

QUESTION 3

1. 1. 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?

   		Eliminate non-value added steps
   		Eliminate value added work.
   		Use time in Queue wisely to get more work done
   		Hold more meetings to ensure work is done correctly the first time.

6 points

QUESTION 4

1. 1. 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?

   		Increase the setup time to dilute the amount of work necessary. This reduced the issues up front.
   		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 manger, responsible person (or people who is the expert on the case) not present in the meeting, organization with improper chain of commands in decision making etc.
   		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.
   		Task managers with open issue – concerns to refocus the group.

6 points

QUESTION 5

1. 1. 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.

   		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.
   		The most difficult issue in the project often lies on the decision making power. People who have the expert knowledge on the project may not align with a person who makes the final decision. As a result, there will be large number of open issues left for future decisions (delay the inevitable) that cause long cycle time.
   		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 manger, responsible person (or people who is the expert on the case) not present in the meeting, organization with improper chain of commands in decision making etc.

6 points