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: 2 hours (9:30am – 11:30am) Chetan Soman and Sachin Jayaswal
PLEASE READ CAREFULLY: 1. 2. 3. 4. This is an open book, open notes examination. Be brief and precise. State assumptions, if any, clearly with a brief justification. For obtaining full credit, clearly show all your supporting work. Use of non-scientific calculators is allowed. Question No. I II III Total Topic Ahmedabad Consulting ABC Contract Manufacturer Patel & Shah Computer Consultants Maximum Marks 08 10 12 30
At which operation should ABC first increase capacity if it needs to increase the overall capacity? c. ignoring growth opportunities in the 21st century. but at the same time not suffering from a need to downsize in the recent recession. 2 . [5 Marks] Now suppose XYZ mobile is planning to launch a new model of its mobile. which are detected only after all the operations are over. A partner. and needs to setup its machines every day it has to start production. Similarly. is a strategy consulting firm. in her position before she becomes a partner or is dismissed. on an average. The work environment at Ahmedabad Consulting is rather competitive. an associate stays in her position for 4 years. [2 Marks] How many new MBA graduates does Ahmedabad Consultancy have to hire every year? b. Does ABC have enough capacity to meet these new demand requirements? If not.I. ABC operates 1 shift (8 hours) a day. On an average. and expects to keep the same level of workforce. and has of late been finding it difficult to meet the growing demand from XYZ mobile. Rework does not produce any defect. it has maintained around 200 associates. Specifically. respectively. [3 Marks] What are the odds that a new hire at Ahmedabad Consultancy will become a manager as opposed to being dismissed? c. 60 managers and 20 partners. XYZ mobile has now placed an order for 50/day of the new sub-assembly along with 100/day of the older type. [3 Marks] Now suppose that operation C-1 produces 15% defective items. ABC is a new start-up. which divides its consultants into three classes: associates. started by IIMA students. Ahmedabad Consulting [8 Marks] Ahmedabad Consulting. It currently manufactures only a single type of sub-assembly exclusively for XYZ mobile. ABC is now considering ramping up its capacity to be able to meet the growing demand from XYZ mobile. which needs a different subassembly for which the sequence of operations and the corresponding setup times and run times are given in Table 2. a. Table 1 lists the sequence of operations in the manufacturing of these sub-assemblies at ABC. a manager spends 6 years. managers and partners. where should it consider adding capacity? Assume 15% defects for older sub-assembly type as described in (b). The firm has been stable in size for the last 20 years. as associate consultants. on an average. It is clear from Table 2 that the new subassembly does not need the C-2 operation. [3 Marks] What are the odds that a new hire at Ahmedabad Consultancy will ultimately become a partner as opposed to being dismissed? II. mainly from IIMA. [2 Marks] Where should it first increase capacity? b. and no defects for newer sub-assembly type. a. ABC is planning to produce the older and the newer sub-assembly types in batches of 100 and 50. ABC Contract Manufacturer [10 Marks] ABC is a contract manufacturer of critical sub-assemblies for XYZ mobile. no hires are made at the manager or partner level. All such defects need to be reworked at C-1 and all the subsequent operations. stays with the company for another 10 years (a total of 20 years with the company). after which she is either promoted as a manager or is fired from the company. The company recruits MBAs.
5 3. [1 Mark] What is the latest time that the development of input/output screens can be completed without delaying the project? c. Module 3 requires parts of module 1. and the precedence relationships are given in Table 3. the programmers can begin work on the modules.2 A B C 45 20 50 0 1. design of the input/output screens. Patel & Shah Computer Consultants [12 Marks] Jignesh Patel and Mayank Shah. After they complete the flowchart. [ 1 Mark] Suppose that a similar problem is discovered in coding of module 1. a. Because the system will be interactive and icon driven. The work on modules 1 and 2 can begin immediately after completion of the flowchart. they can proceed with the second part of the graphics development.4 1 Table 1: Setup and Run Times for Old Assembly Table 2: Setup and Run Times for New Assembly III.25 1 D C-1 C-2 C-3 50 0 60 0 2 0 1. The first task is to undertake a market survey in order to determine exactly what the potential clientele will require and what features of the software are likely to be most attractive. The second part of the project is coding the modules that make up the application. These include the various menus and report generators required in the system. [1 Mark] Suppose that Jignesh discovers a bug in the coding of module 2. In order to determine whether this is feasible. the actual development of the programs can begin. so the work on module 3 cannot begin until module 1 is finished. so that the time required to complete module 2 is longer than anticipated. both computer consultants. the two separate phases of the system must be merged and the entire system tested and debugged. Once the graphics potion of the project and the modules are completed. are considering embarking on a joint project that will involve development of an application for Android based tablet PCs. the first task is to identify and design icons. The programming requirements fall into two broad categories: graphics and source code. The programming of module 4 cannot start until both modules 1 and 2 are completed. The first step is to develop a detailed flowchart of the system.3 1.5 Operation Setup time (min) 35 40 Run time/unit(min) 2. After the programmers have completed the icon designs. Jignesh and Mayank have broken down the project into 9 tasks. Jignesh has managed to obtain some funding for the project. the times required. Jignesh and Mayank have divided the project into 9 indivisible tasks and have estimated the time required for each task. but his source requires that the application be completed and ready to market in 25 weeks. [2 Marks] Is it possible to complete the project in 25 weeks? b. Will the project necessarily be delayed in this case? 3 . Will this necessarily delay the project? d. There are a total of four modules. The list of these tasks. Once this stage is completed.5 2.Operation A B C C-1 C-2 C-3 D Setup time (min) 30 35 Run time/unit(min) 2 2.
Module 2 coding C G. Perform market survey B. Develop flowchart A D. Module 1 coding C F. Module 4 coding E.e. Merge modules and graphics D.. C screens E.000 A.000 Cost to Expedite/Week 10.000 per week for the first three years that the product is available. What is the optimal expediting strategy (i. Design graphic icons A C. and all time estimates are accurate.000 2. [2 Marks] If Mayank is responsible for the coding of modules and Jignesh is responsible for screen development.F I. Design input/output B.000 25.000 40.000 30.000 80.000 15. Expediting costs vary based on the nature of the task.000 20. Most of the activities can be expedited by subcontracting parts of the programming.e. they hope to be able to realize the income earlier. Module 3 coding E H. They obtain the estimates given in Table 4. By completing the project earlier.000 45.000 13. [5 Marks] Jignesh and Mayank expect that once they complete the project and place the application in the market.000 15.000 15.000 12. H and test application Table 3: Activity precedence and normal time Table 4: Expedited times and costs 4 . will they be able to complete the project within 25 weeks? f.000 20. which activities should be expedited and by how much)? Task Immediate Predecessor Time Required (Weeks) 3 4 2 6 5 3 7 5 8 Task A B C D E F G H I Expedited Time (Weeks) 1 3 2 4 4 2 4 4 5 Normal Cost 10.000 30.000 15. it will fetch them an average of Rs. They carefully consider each task and the possibility of reducing the task time and the associated costs. G. 15.