Production and Operations Management-2


SKU: AMSEQ-217 Category:

Assignment – A

Question 1a) Define production operatio ns management. What are its objectives and functions?

Question 1b) What are the operations management strategies?

Question 2a) Explain the concept of product design and development.

Question 2b) What are the various production systems?

Question 3a) What is capacity planning? Explain the various methods of altering capacity.
b)What are the factors affecting facility location? What are the techniques for facility lo cation?
c) What are the various facility layo uts? Enumerate the advantages and disadvantages.

Question 4a) What is meant by master productio n schedule?

Question 4b) Explain the activities involved in production planning and control.

Question 4c) Discuss MRP. What ar e the inputs and outputs of an MRP system?

Question 5a: Explain JIT manufacturing

Question 4b)Explain acceptance sampling

Question 4c) What do you understand by maintenance policy? Explain various categories of spares.

Assignment – B

Question 1a) What is economic order quantity? What are the assumptions of EOQ?

Question 1b) If the annual demand for a product is 3,50,000 units. The annual carrying cost rate is 25 percent of the cost of the unit the product costs Rs 14.75 per unit to purchase, and each time the product is ordered the related ordering cost is Rs 53.00.
i) What is EOQ?
ii) What is total cost at EOQ?
iii) How much would be the total cost if the order quantity is 2500 units due to standard packing?

Question 2a. Operations scheduling is one of the most important function of production planning and control. Discuss.

Question 2b) Seven jo bs are to be carried out on three machines M1, M2, M3 in the order of M1, M2, M3. The processing time in hours of various jobs are tabulated below.

Job M1 M2 M3
A 1 7 8
B 3 3 1
C 7 8 8
D 9 2 11
E 4 8 9
F 5 6 14
G 2 1 12

Question i) What are the conditions for using Johnson’s rule to sequence jobs on three machines?

Question ii) What is the make span for these jobs?

Question iii) What is the idling time?

Question 3a) A company that produces mixer gr inder has the follo wing orders over the next six months.

Period 1 2 3 4 5 6
Demand 2000 5000 8000 4500 2000 8000

Monthly production capacities are 5000 units on regular time, 1000 units on over time, and 2000 units can be sub contracted each month. Production costs are Rs20/- per unit on regular time, Rs 25/- per unit on over time, and Rs 28/- for sub contracted quantities.
Inventory holding costs are charged @ Re 1/- per u nit per month. Use transportation mode! to develop a production plan for next six months.

Question 3 b) Five jobs are to be assigned to five mac hinists. The following matrix shows the time taken by each of the machinist for reach of the jobs.

Machinist Jobs
1 2 3 4 5
A 10 5 3 2 8
B 9 7 8 2 7
C 7 5 6 2 4
D 3 5 8 2 4
E 9 10 9 6 10

Using Hungarian method find out the optimum assignment and processing time.

Case Study

a) An electro nic goods company pro duces radio s and calcu lators. The radios generates a profit of Rs10/- per unit while calculators generates a profit of Rs 15/- per unit. Each radio requires four dio des and four resistors, while each calculator requires ten diodes and two resistors. The radio takes 12 minutes and calculators take 9,6 minutes on the testing machine. The production manager estimates that 160 hours of testing time are available. The firm has 8000 diodes and 3000 resistors in stock. Formulate the linear pro gramming pro blem and so lve it graphically.

b) Systems Software (P) Ltd. is planning to develop new software. It has identified the activities in the in the table below fo r this software development project and has calculated three time estimates in days for each of the activity.

Activity Description Predecessors Optimistic time Most likely time Pessimistic time
A Create objectives 1 2 3
B Choose Operating system A 3 5 7
C Generate algorithm A 6 10 14
D Choose a suitable programming A 4 6 8
E Write the programme B, C, D 8 9 10
F Test the software E 2 4 6
G Get approval for commercialization F 1 3 5

Question i) Draw the network diagram; find out the critical path and the expected duration of the project.

Question ii) Calculate the slack time fo r each of the activities.

Question iii) Calculate the probability of completing the project in 30 days.

Assignment – C

1. Organizations that produce something other than physical products are called
(a) Transformation org anizations
(b) Data transfer groups
(c) Service organizations
(d) Cultural organizatio ns

2. Which of the fo llowing is NOT a chara cterist ic of service operat io ns
(a) Intangible output
(b) Perishable products
(c) Labour intensive
(d) Low customer contact

3. Decisions that tend to focus on the entire organization, cutting across departmental lines, and have long consequences are called
(a) Departmental
(b) Tactical
(c) Strategic
(d) Routine

4. Competing on differentiation is
(a) Concerned with uniqueness
(b) Based on cost leader ship
(c) Based on flexibility
(d) Reliability of scheduling

5. Which of the following is NOT important in globalization
(a) Product design
(b) Culture and ethics
(c) Facility location
(d) Facility lay out

6. Which of the following conditions are NOT generally associated with a jo b process?
(a) Work force with highly specialized skills
(b) Low product volume
(c) Relat ively high customizat ion
(d) High resource flexibility

7. Low vo lume, high variety production is best suited for
(a) Process focus
(b) Repetitive focus
(c) Product focus
(d) Mass customization

8. Which of the following automatically place parts into a warehouse
(a) ASRS
(b) AGV
(c) FMS
(d) SGV

9. The planning and scheduling of production only against specific production order is
(a) Make-to-Stock
(b) Make-to-Order
(c) Assemble-to-Order
(d) Mass Customization

10. Which of the following is NOT a characteristic during the introductory phase of the product life cycle?
(a) Research
(b) Process modification
(c) Supplier develo pment
(d) Capacity utilization

11. Which of the following is a characte rist ic of the maturity phase?
(a) Products are ‘line tuned”
(b) Product designs begin to stabilize
(c) Competitors are well-established
(d) Products are considered for termination

12. Benefits of design for manufactur ability and value engineering include all of the following except
(a) Reduced complexity of the product
(b) Additio nal standardization of the components
(c) Improved job design and safety
(d) Compromise qualit y

13. Modular design
(a) Offers flexibility to both production and marketing
(b) Means that small variatio ns in production do not ad versely affect the product
(c) Uses computers to interactively design the products
(d) Are environmentally friendly

14. Which of the following is NOT a concept of green manu facturing
(a) Make products recyclable
(b) Standardizat ion of co mponents
(c) Use less harmful ingredients
(d) Use lighter components

15. Design effectiveness is NOT measured by
(a) Percentage of standard parts & processes
(b) Number of revisions in the design
(c) Cost of field repa irs
(d) Time taken fro m concept to market

16. Which of the following is NOT a benefit of concurrent engineering
(a) Ena ble s early supplier involvement
(b) Promotes consensus decision making
(c) Reduces developmental lead-time
(d) Eliminates design changes after product introductio n

17. Which of the following is NOT a method for evaluating location alternatives,
(a) The transportation model
(b) Factor rating
(c) Center of gravity method
(d) Waiting line analysis

18. Which of the following is NOT a mathematical technique used for finding the best location for a single distribution point that services several stores or areas
(a) Factor rating.
(b) Center of gravity
(c) Transportation model
(d) Hungarian met hod

19. The system that has the highest equipment flexibility is
(a) Job shop
(b) Batch
(c) Repetitive production
(d) Co ntinuous processing

20.In a product layout the process of deciding how to assign tasks to work stations is referred to as:
(a) Process balancing
(b) Task a llocat ion
(c) Line balancing
(d) Factor rating

21. The advantages NOT associated with a U shaped assembly line over a straight one are
(a) Fewer workers are needed
(b) Workers can reach more of the work area
(c) Work area can be efficiently balanced
(d) Automated material handling

22. All of the following statements about using the transportation model to develop an acceptable aggregate plan are true EXCEPT
(a) The least expensive alternatives often are those in which the output is produced and sold in the same period
(b) It is possible to disallow backorders by making the back-order cost an impossibly high number
(c) The transport at ion model is less useful fo r chase strat egies
(d) A period’s overtime capacity is generally a percentage of its regular time capacity

23. Which of the following statements about a linear programming model is NOT true
(a) An optima l product ion plan is desired
(b) The values of decision variables are fractional
(c) A set of linear co nstraints might be defined
(d) Cross-product relationships exist between two or more decision variables

24. The limit at io ns that re strict the permissibl e choice s for decision variables are c alled
(a) Parameters
(b) Objective function
(c) Decision variables
(d) Constraints

25. The total cost for a co ntinuo us review system with uncertain demand excludes consideration of
(a) Cycle inventory holding cost
(b) Product cost
(c) Order ing cost
(d) Safety sto ck ho lding cost

26. Select the characterist ic that is not indicative of a job shop environment
(a) Low to medium volume production
(b) Job or batch pro cesses
(c) Consistent, sequential process flow
(d) Continual introduction of new jobs to be processed

27. The priority -sequencing rule for job shop scheduling that relies ieast on time based data is
(a) Critical ratio
(b) Earliest duedate
(c) First come, first served
(d) Shortest processing time

28. Which statement about capacity requirements planning (CRP) is not true
(a) CRP systems adjust the order release time to prevent a workstation fro exceeding its capacity
(b) CRP systems access inventory records to determine when planned orders or scheduled receipts will reacr a workstatio n
(c) CRP systems enable the identification of critical workstations
(d) The purpose if CRP is to match the material requirements plan with the plant’s production capacity

29. Materials handling includes all of the following activities except
(a) Moving an assembly
(b) Drilling a hole
(c) Storing a product
(d) Handling mater ia ls

30. The work measurement method that is not usually used for setting standar ds for repetitive, well defined jobs is
(a) The elemental standard data approach
(b) The work sampling method
(c) The time study method
(d) The pr edetermined data appr oach

31. Attribute inspection measur es
(a) The range of a characteristic
(b) If product responsiveness is adequate
(c) If cause and eff ect are present
(d) If the product is good or bad

32. One hundred percent inspection
(a) Will always catch all of the defective parts
(b) Means that only good parts will be shipped to the customer
(c) Is always practical and gener ally a good idea
(d) Means that every part is checked to see whether or not it is defective

33. Process capability
(a) Means that the natural variation of the pr ocess must be small enough to produce pr oducts that meet the standards
(b) Exists when Cpk is less than 1
(c) Exists when the process is perfectly centered
(d) Cannot be measured

34. The R-c ha rt
(a) Is used to measure changes in the central tendency
(b) Is always in control if the X-bar chart is in control
(c) Generally uses control limits set at plus or minus 2 standard deviations of the distribution, rather than plus or minus 3 which is commonly used on the X-bar chart
(d) Is used to indicate gains or losses in unifor mity

35. A customer service hotline has received an average of 7 complaints a day for the last 25 days. What type of control
chart should be used to monit or this hotline
(a) C-chart
(b) P-chart
(c) X-bar chart
(d) np-chart

36. The maximu m output of a system in a giv en period is called the
(a) Br eak-even point
(b) Design capacity
(c) Effective capacity
(d) Efficiency

37. Methods analysis focuses on
(a) The design of the machines used to perform a task
(b) How a task is accomplished
(c) The raw materials that ar e consumed in perfor ming a task
(d) Reducing the number of steps r equir ed to perfor m a task

38. Which of the following doesn’t relate to work scheduled?
(a) flex time
(b) flexible
(c) work week
(d) part time system
(e) ergo no mics

39. A go od maintenance facility should have on the following except
(a) Well train personnel
(b) availability to identify the cause of break down
(c) availability to extend MTBF
(d) availab ility to increase MTTR

40. The process that is intended to find potential failure and make change or repair is known as
(a) break do wn maintenance
(b) failure maintenance
(c) preventive maintenance
(d) reactive maintenance



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