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Output

Productivi ty =

Input

to accompany SUPPLEMENT A: Decision Making

F

1. Break-even volume: Q = p − c

Fm − Fb

2. Evaluating process, make-or-buy indifference quantity: Q =

cb − c m

ES = max (EF times of all activities immediately preceding activity)

EF = ES + t

LS = LF – t

LF = min (LS times of all activities immediately following activity)

2. Activity slack:

S = LS – ES or S = LF – EF

3. Project costs:

Crash cost – Normal cost CC – NC

Cost to crash per unit of time = =

Normal time – Crash time NT – CT

4. Activity time statistics:

a + 4m + b

te = (Expected activity t ime)

6

2

b −a

σ2 = (Variance)

6

5. z-transformation formula:

T − TE

z=

σ2

where

T = due date for the project

TE = (expected activity times on the critical path)

= mean of normal distribution

σ = Σ (variances of activities on the critical path)

2

1. Euclidean distance: d AB = ( x A − x B ) 2 + ( y A − y B ) 2

2. Rectilinear distance: d AB = x A − x B + y A − y B

1. Mean: ∑x i

x= i =1

n

2. Standard deviation of a sample:

( ∑ xi ) 2

σ =

∑ ( xi − x ) 2 or σ =

∑ x 2

− n

n−1 n−1

3. Control limits for variable process control charts

a. R-chart, range of sample:

Upper control limit = UCL R = D4 R

Lower control limit = LCL R = D3 R

b. x-chart, sample mean:

Upper control limit = UCL x = x + A2 R

Lower control limit = LCL x = x − A2 R

c. When the standard deviation of the process distribution, σ , is known:

Upper control limit = UCL x = x + zσ x

Lower control limit = LCL x = x − zσ x

where

σ

σx =

n

4. Control limits for attribute process control charts

a. p-chart, proportion defective:

Upper control limit = UCL p = p + zσ p

Lower control limit = LCL p = p − zσ p

where

σp = p (1 − p ) n

b. c-chart, number of defects:

Upper control limit = UCL c = c + z c

Lower control limit = LCL c = c − z c

5. Process capability ratio:

Upper specificat ion − Lower specificat ion

Cp =

6σ

6. Process capability index:

C pk = Minimum of

x − Lower specificat ion Upper specificat ion − x

,

3σ 3σ

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