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Siddaganga Institute of Technology, Tumkur 572 103

(An Autonomous Institution under Visvesvaraya Technological University, Belgaum)

Second Semester Master of Business Administration Summer Examinations August 2010

Production & Operations Management

Time: 3 Hours
Not e : 1. 2. 3. 4. Answer any 5 full questions Use Graph Sheet wherever necessary. Answer should be supported by neat Sketches / Diagrams / Workings wherever necessary. Statistical tables may be used.

Max. Marks: 100

1 a) b) c)

What are inventory costs? Draw a diagram to explain the conversion process (operations system) of a plastic bottle manufacturing company. From the following data, do the ABC inventory analysis Inventory Item Code Annual Consumption (Units) Price per unit 2001 105 200 2002 3500 250 2003 2900 500 2004 156 525 2005 176 800 2006 500 250 2007 4000 410 2008 172 102 2009 186 202 2010 173 75 Describe what is Process planning. Find the EOQ for a given item of constant demand rate of 60,000 units per annum, unit price of 60, ordering cost per order, 600 and carrying cost is 30% per annum on average inventory value. How much can you increase the volume of order without loosing the optimum point if a discount of 10 % is offered? What is Operations Management? Describe the role of Operations management in the Organisation. Explain the Cellular Manufacturing (CM) Layout. What is Process layout? Explain its advantages and disadvantages. A manufacturer of a firm equipment is considering three locations A, B and C for a new plant.Costs studies show that the fixed cost per year at the sites are 240,000, 270,000 and 252000 respectively. The variable costs are 100/unit, 90/unit and 95/unit respectively. If the plant is designed to have an effective system capacity of 2500 units per year and is expected to operate at 80 % efficiency. Which is the most economic location on the basis of actual output? Please support your answer with necessary calculations. What is Bill of Materials (BoM)? Illustrate. Compare and Contrast Critical Ratio (CR) and Shortest Processing Time (SPT) rule. -1-

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c) 3 a) b) c)

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4 a) b)

Please Turn Over



The time to perform each task and the tasks that must immediately precede are shown below. Task Tasks that immediately precede Time to perform task (min.) A 0.07 B 0.15 C A,B 0.08 D C 0.05 E C 0.18 F 0.12 G 0.06 H F,G 0.10 I D,E 0.15 J H,I 0.11 K J 0.06 L K 0.19 If 220 products are needed per hour and 55 minutes per hour are productive: i) Draw a diagram of the precedence relationships. ii) Compute the theoretical and maximum allowable cycle time. iii) Compute the minimum number of workstations required. iv) Use the longest-task-time heuristic to balance the production line. Calculate the line efficiency and idle-time factor. Improve the line efficiency by means of different cycle time(s); calculate their respective line efficiency and idle-time factors and compare them. What are the difficulties in scheduling and how do you minimize the difficulties? Write a note on the hidden costs of ERP implementation. Beauty and Handsome Products has eight jobs in its flow shop. The jobs must be processed sequentially through three operations. The time taken for the jobs (in hours) for the operations is given below. Use Johnsons rule to develop the job sequence that will minimize the completion time over all the jobs. Job No A B C D E F G H Pre-preparation 4 8 5 9 3 4 9 6 Preparation 6 4 7 1 4 2 5 2 Finishing 8 7 9 7 9 8 9 7 What is a kanban system? How can MRP and JIT complement each other in manufacturing? The product structure tree shown in Fig. 6(c) indicates the components needed to assemble one unit of product W. Determine the quantities of each component needed to assemble 200 units of W.

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6 a) b) c)

Fig. 6(c) _________