SHRISHANKARACHARYA INSTITUTE OF TECHNOLOGY AND MANAGEMENT , JUNWANI , BHILAI PRODUCTION MANAGEMENT QUESTION BANK 8TH SEMESTER UNIT - 1

1. Production is a value addition process. Comment with an example ? 2. Production management is process of planning , organizing and controlling the activities of production function. Explain. 3. Discuss the scope and objectives of production management. 4. Explain the frame work for production management. 5. Explain the factors that affect the performance of production function. 6. Explain the salient features , characteristics and when to use the following types of Production system. (i) Make to order (ii) Make to stock (iii) Make to assemble. 7. Explain with a graph various stages of product - life cycle. 8. What are the sources that help to identify a new product ? 9. ABC company plans to sell an article at a local market. The articles are purchased at Rs. 5 on the condition that all unsold articles shall be returned. The rent for the space is Rs. 2000. The articles will be sold at Rs. 9. Determine the no. of articles which must be sold (a) To break-even, (b) To earn Rs. 400 as profit, (c) If the company sells 750 articles. Calculate margin of safety and profit. 10. Give the classification of production system (Types of production) based on quantity (or volume) of production.

UNIT - 2
1. The following data gives the sales of the company for various years. Fit the straight line. Forecast the sales for the year 1998 and 1999. year Sales (000) 1989 13 1990 20 1991 20 1992 28 1993 30 1994 32 1995 33 1996 38 1997 43

2. The past data regarding the sales of SPMS for the last five years is given. Using the least square method, fit a straight line, estimate the sales for the year 1996 and 1997. Year 1991 1992 1993 1994 1995 Sales (00) 35 56 79 80 40 3. The sales for the domestic water pumps manufactured by Ajit manufacturing company is given forecast. The demand for the pumps for the next three years using least square method. 1986 1987 1988 1989 1990 1991 1992 1993 1994 30 33 37 39 42 46 48 50 55 4. A company manufacturing washing machines establishes a fact that there is a relationship between sale of washing machines and population of the city. The market research carried out reveals the following information : Population (million) 5 7 15 22 27 36 No. of washing machines demanded (000) 28 40 65 80 96 130 Fit a linear regression equation and estimate the demand for washing machines for a city with a population of 45 million. 5. The past data on the load on the weaving machines is shown below: Month Load (HRS) May-96 June-96 585 July-96 610 Aug.-96 675 Sep.-96 750 Oct.-96 860 Nov.-96 970 Compute the load on the weaving machine centre using 5th moving average for the month of December1996. 6. The data given below represents sales figures of ABC company for the 12 months of the year 1996. (a) Compute 3 months moving average (ignoring decimal values) (b) Forecast the demand for the month of jan. 1997 (c) If the actual demand for the month of jan. 1997 is 905 units, what should be the forecast for the month of feb. 97 Month Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Sales Rs. (000) 400 490 570 500 640 680 710 800 820 910 860 950 7. The demand for the particular product is given for the last 8 periods. Compute the exponentially smoothed forecast for the periods taking = 0.1 and 0.3. Which of these forecast is better Period 1 2 3 4 5 6 7 8 Demand 10 18 29 15 30 12 16 8

Year Sales (000)

1995 58

8. The demand for the disposable plastic tubing for a general hospital is 300 units and 350 units for the September and October respectively. Using 200 units as demand for September, compute the forecast for the month of November. Assume the value of as 0.7. 9. Estimate the sales forecast for the year 2000, using exponential smoothing forcastor. Take = 0.5 and the forecast for the year 1995 as 160x105 units. Compare the forecast with least square method. Year 1995 1996 1997 1998 1999 Sales Rs. (x105) 180 168 159 170 188 10. What are different methods of sales forecasting, discuss the merits and limitations of sales forecasting method ?

UNIT - 3
1. Five jobs are to be processed on two machines M1 and M2 in the order M1 M2. Processing time in hours are given below : Processing time (hrs) Job Machine M1 Machine M2 1 5 2 2 1 6 3 9 7 4 3 8 5 10 4 Determine the sequence that minimizes total elapsed time. Find out the total elapsed time. Find out the total elapsed time and idle time (in any) on M2. 2. There are seven jobs which are to be pressed first on machine I and then on machine II. Processing time in hours are given below : Job A B C D E F G Machine I 6 24 30 12 20 22 18 Machine II 16 20 20 13 24 2 6 Find the optimal sequence and total elapsed time. Compute the idle time on machine II. 3. Seven jobs are to be processed through 3 machines M1 , M2 and M3 in the order M1 , M2 , M3. The processing times are given in hrs to process each one of the 3 jobs through all the machines. Find the optimal sequence of the jobs. Also find the minimum total elapsed times and idle times on M2 and M3. 4. Define material handling. State objectives of material of handling. 5. material handling is considered necessary evil. Comment. 6. What are the principles of material handling ? 7. What are different types of material handling equipment ? 8. What are the symptoms of bad layout ? 9. Explain the elements of material handling. 10. What is the relationship between plant layout and material handling system ?

UNIT 4
1. ABC corporation has got a demand for particular part at 10,000 units per year. The cost per unit is Rs. 2 and it costs Rs. 36 to place an order and to process the delivery. The inventory carrying cost is estimated as 9 per cent of average inventory investment. Determine (a) Economic order quantity. (b) Optimum no. of orders to be placed per annum. (c) Minimum total cost of inventory per annum. 2. A manufacturer has to supply his customers 3600 units of his product per year. Shortages are not permitted. Inventory carrying cost amounts Rs. 1.2 per unit per annum. The set-up cost per run is Rs. 80. Find : (a) Economic order quantity. (b) Optimum no. of orders per annum. (c) Average annual inventory cost (minimum). (d) Optimum period of supply per optimum order. 3. Usha corporation currently practices the following system for the procurement of an item. No. of orders placed in a year = 8, Ordering cost = Rs. 750/order Each time order quantity = 250, Carrying cost = 40 per cent Comment on the ordering policy of the company and estimate the loss to the company in not practicing scientific inventory policy 4. Indian telecoms entered into contract with precision instruments for the purchase of 12,500 instruments at the rate of Rs. 250 per instrument during the year. The deliveries of the instruments will be made each time half a month after the order is placed. Indian telecoms estimates its carrying cost at Rs. 48 per instrument per annum. The cost of paper work, follow up transport and receipt work out to be Rs. 2000. How frequently should Indian telecom place orders with precision instrumenets ? what is the re-order point ? 5. ABC company produces a cable at the rate of 5000 metres per hour. The cable is used at the rate of 2500 metres/hour. The cost of the cable is Rs. 5 per metre. The inventory carrying cost is 25 per cent and set-up costs are Rs. 4050 per set-up. Determine the optimal no. of cycles required in a year for the manufacture of this cable. 6. A contractor undertakes to supply diesel engines to a truck manufacturer at the rate of 25 per day. He finds that the cost of holding a completed engine in stock is Rs. 16 per month. Production of engines is in batches and each time a new batch is started, there are set-up costs of 10,000 Rs. How frequently should the batches be started and what will be the minimum average inventory cost and production time if production rate is 40 engines/day. Assume 300 working days in a year. 7. An automobile manufacturing company is purchasing an item from outside suppliers. Demand is 10,000 units per annum. Cost of the item is Rs. 5 per unit and procurement cost is estimated to be Rs. 100 per order. Cost of carrying inventory is 25 per cent. If the consumption rate is constant determine EOQ.

In the above problem, if the company decides to manufacture the above item with an equipment which produce 100 units per day. The cost of units thus produced is Rs. 3.5 per unit setup cost is Rs. 150. How your answer is changed in the second case. 8. A company consumes 12000 units of a particular item. The company has a production capacity of 60 units/day. The cost of each unit produced by the company is Rs. 8. The setup and tooling up cost is Rs. 96 per setup. The carrying charges are 15 per cent of cost per unit. Determine (a) Economic quantity to be manufactured in each batch. (b) How frequently should the production runs be made. (c) Determine the production period. Assume 300 working days per annum. 9. Universal toolings has a requirement for 1,50,000 metal bushings per annum. The company orders the metal bushing in lots of 40,000 units from a supplier. The ordering cost is Rs. 40 and the carrying charges are expressed 20 per cent of the unit cost. The bush costs Rs. 15 each. The company wants to know what percentage of their order quantity differs from economic order quantity and how the cost varies for the two. Find the optimal order quantity. 10. A pharma company has a demand for 10,00,000 bottles. Each empty bottle costs the company Rs. 1. Empty bottles are supplied by M/s Rupa Glass Ltd. The R.O.L. system of stock replenishment is followed. Ordering cost is Rs. 12.5 /order and inventory carrying cost is 25 per cent of cost per bottle. The demand is constant throughout the year. The lead time is 15 days. Determine (a) Economic order quantity. (b) Lead time consumption. (c) Re-order level. (d) Average inventory.

UNIT 5
1. In the following table the length of 10 samples of 5 rods are shown. Construct x bar and R charts. Length in cm Total Mean Range Sample 6 7 8 1 2 3 4 5 1. 6.2 6.8 7.2 6.0 5.8 32.0 6.4 1.4 2. 5.8 6.0 7.4 6.8 6.6 32.6 6.5 1.6 3. 4.8 5.2 5.8 6.4 6.8 29.0 5.8 2.0 4. 6.6 6.8 6.4 6.2 6.0 32.0 6.4 0.8 5. 6.6 6.2 7.2 7.4 7.2 34.6 6.9 1.2 6. 6.8 6.6 4.2 4.8 4.0 26.4 5.3 2.8 7. 8.8 7.2 7.8 3.8 5.6 33.2 6.6 5.0 8. 4.6 4.8 6.6 6.8 6.0 28.8 5.7 2.2 9. 6.8 7.2 6.6 6.4 6.0 33.0 6.4 1.2 10. 6.6 4.4 5.2 6.2 6.6 29.0 5.8 2.2

Total 2. Draw x bar chart and R bar chart for the given data. Sample no. Size n = 5 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. X bar R

309.6

20.4

7.0 2 7.5 3 8.0 2 10.0 2 9.5 3 11.0 4 11.5 3 4.0 2 3.5 3 4.0 2 X = 76 R = 26

3. A quality controller examines a sample of 1000 items each and finds the no. of defectives as follows : Sample no. No. of defectives Sample no. No. of defectives 1. 215 11. 285 2. 227 12. 287 3. 220 13. 312 4. 180 14. 195 5. 320 15. 180 6. 240 16. 190 7. 218 17. 215 8. 195 18. 210 9. 280 19. 215 10. 310 20. 240 Total 4734 Construct the fraction defective chart. 4. Draw p chart for the following problem. No. of pieces No. of defective Date inspected pieces found November 4 300 25 November 5 300 30 November 6 300 35 November 7 300 40 November 8 300 45 November 10 300 35 November 11 300 40 November 12 300 30 November 13 300 20 November 14 300 50 Total days = 10 3000 350

5. In a manufacturing process, the no. of defectives found in the inspection of 15 lots of 400 items each is given below Lot no. No. of defectives Lot no. No. of defectives 1. 2 9. 18 2. 5 10. 8 3. 0 11. 6 4. 14 12. 0 5. 3 13. 3 6. 0 14. 0 7. 1 15. 6 8. 0 Determine the trial control limits for np-chart and state whether the process is in control or not. What will be new value of mean fraction defective if some obvious pints outside control limits are eliminated ? what will be the corresponding upper and lower control limits and examine whether the process is still in control or not. 6. The following figures show the no. of defective items discovered in 10 samples taken on 10 consecutive days in a month. Date:(Month January) 1 2 3 4 5 6 7 8 9 10 No. of defectives per 1 2 4 16 4 3 5 20 16 4 unit of sample Construct a control chart for the no. of defectives per unit from the above data. 7. Ten castings were inspected in order to locate defects in them. Every casting was found to contain certain no. of defects as given below. It is required to plot a C-chart and draw the conclusion. Castings: 1 2 3 4 5 6 7 8 9 10 Total = 10 No. of defects found 2 4 1 5 5 6 3 4 0 7 Total = 37 on inspection 8. Define the term quality and state the various factors which affect the product quality. 9. Distinguish between quality control and inspection. 10. Define the term quality control and explain its objectives.