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BM/APR 2011/MGT345/365/375

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

OPERATIONS MANAGEMENT MGT345/365/375 APRIL 2011 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. 2. 3. 4. This question paper consists of two (2) parts : PART A (5 Questions) PART B (5 Questions)

Answer ALL questions in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) ii) the Question Paper an Answer Booklet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 6 printed pages
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BM/APR 2011/MGT345/365/375

PART A

QUESTION 1 Maher Electronics assembles power supplies for use in printers and fax machines. The company wants to set an assembly line to make its operation more efficient. The productive time per day is 400 minutes. The following table provides details on their operation: ACTIVITY TASK TIME(MINUTES) A B C D E F G H I J K 0.56 0.34 0.11 0.09 0.43 0.22 0.62 0.35 0.21 0.57 0.33
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PREDECESSOR

A A A B,C D E F,G H H

U
(3 marks)

a) Draw the precedence diagram of the operation.

b) Compute the maximum rate of output that could be expected from this line per day. (2 marks) c) Determine the theoretical minimum number of workstations. (2 marks) d) Construct the line layout of the operation based on (c) above. (3 marks) e) Compute the resulting efficiency and balance of delay percentages of the line. (2 marks) f) If wages per worker cost RM 50 per day, determine the cost of idleness per week. (Assume 5 working days per week.) (2 marks) CONFIDENTIAL

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BM/APR 2011/MGT345/365/375

QUESTION 2 A project has the following activities, precedence relationships and activity duration. ACTIVITIES IMMEDIATE PREDECESSOR (S) A B C D E F G H I J K
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TIME (WEEKS)

3 9 7 12 10 11 10 7 14 15 9

A A,B E D F G,H C l,J

Given the above information, answer the following questions: a) Draw the appropriate PERT diagram. (4 marks) b) Calculate the earliest start and the latest start time for each event. (4 marks) c) Calculate the project completion time. (1 mark) d) Identify the critical activities. (1 mark) e) Calculate the free float and the independent float for activity D. (2 marks) f) Compute the project completion time if activity I is delayed by 4 weeks. (2 marks)

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QUESTION 3 Good Year Center sells 20,000 go-cart tires per year. The cost to store each tire is 20% of its purchase price. The cost for each order is RM40. The purchase price is RM20 per tire if fewer than 500 tires are ordered, RM18 per tire if 500 or more but fewer than 1000 tires are ordered, and RM17 per tire if 1000 or more tires are ordered. Determine the best order size for the tire. (12 marks) QUESTION 4 Wills and Brothers Manufacturing are in the process of developing an aggregate capacity plan for the month of June - December 2011. The company has signed a contract promising to deliver the products to customers according to the schedule below: Month June July August September October November December Demand (units) 2400 3200 3400 3600 2000 3300 2500

Apart from the contract, the normal monthly forecasted demand from other buyers is 2000 units. Additional information: : 15 workers Current workforce : 30 minutes per unit Standard output : 6 hour Working hour : RM 4 per hour Regular rate cost : RM 6 per hour Overtime cost Overtime unit capacity : Maximum of 500 units per month Inventory holding costs : RM 1.50 per unit Subcontract costs : RM 8 per unit Working days : 26 days

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BM/APR 2011/MGT345/365/375

a) Prepare an aggregate production plan for Wills and Brothers Manufacturing for the month of June through December 2011 using constant workforce strategy by varying overtime and subcontract to meet the demand. (7 marks) b) Calculate the total costs for the plan. (5 marks) QUESTION 5 Karl & Hary is a CPA firm specializing in payroll preparation. The firm has been successful in automating much of its work, using high speed printers for check processing and report preparation. The computerized approach however has problems. Over the past 24 months, the printers have broken down at the rate indicated in the following table: Number of breakdowns No of months that breakdowns occurred 0 1 2 3 4 5 2 8 5 4 3 2

Each time the printers break down, Karl & Hary estimates that it loses an average RM300 in production time and service expenses. One alternative is to purchase a service contract for preventive maintenance. Even if Karl & Hary contracts for preventive maintenance, there will still be breakdowns, averaging one breakdown per month. The price for this service is RM150 per month. Determine whether CPA firm should purchase a service contract for preventive maintenance or continue the current maintenance. Justify your answer. (8 marks)

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BM/APR 2011/MGT345/365/375

PART B

QUESTION 1 Explain any four (4) disadvantages of process oriented layout. (8 marks) QUESTION 2 Explain the four (4) basic types of allowances. (8 marks) QUESTION 3 Explain any four (4) factors that influence the choice of plant location. (8 marks) QUESTION 4 Discuss four (4) types of quality costs. (8 marks) QUESTION 5 Explain any four (4) importance of maintenance. (8 marks)

END OF QUESTION PAPER

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