SVKM’S NMIMS SCHOOL OF BUSINESS MANAGEMENT Academic Year: 2016-17 Program Master of Business Administration ‘Year: I Trimester: IT Subject: Operations Management Batch: 2016-18 Date: 31/03/2017” ‘Time:2 hrs(10.30am To 12.30pm) Marks: 50, No. of Pages:_4- FINAL EXAMINATION Instructions: Candidates should read carefully the instructions printed on the question paper and on the cover of the Answer Book, which is provided for their use N 1. Answer any Five out of Six Questions 2. Use of Calculator is permitted 3. All Questions carry equal (ten) marks 4, Answer to each question to be started on a fresh page 5, Assume data where ever necessary and state them clearly Question 1 Rich Cole Control Devices, Inc., produces custom-built relay devices for auto makers. The most recent project undertaken by Cole requires 14 different activities. Cole’s managers would like to determine the total project completion time (in days) and those activities that lie along the critical path. The appropriate data are shown in the following table: “Activity Optimistic Most Likely ae [Time [Time ae 4 [oe 8 a 2 c fa is —i6é ofA {se E B,C 1 9 [Eo 2 3 - Ie D {a ak i EF fa 4 ee [a 6 yt 2 [s K 1 8 9 L J om 4 a a fa 2 mE N [uM 6 8 (fom a. Whatis the probability of being done in 53 days? b. What date results in a 99% probability of completion? — —_ Page gpQuestion 2a The JIT philosophy carries with it an objective of continuous improvement (Kaizen). Explain this central theme with a problem solving example Question 2b “Waste elimination is one of the most effective ways to increase the profitability of any business” Explain how eliminating waste can free up resources and enhance production? Question 3a What are the reasons of holding Inventories? What are the costs associated with inventories & their significance? Question 3b A quantity discount of 10% in existing unit price is offered, provided order cum supply quantity is at least 500 units. The following information is given: a) Annual demand = 1000 numbers b) Procurement Cost per order = Rs 100 ) Inventory carrying cost per annum = 22% of the acquisition cost d) Existing unit price (acquisition Cost) Rs 10 ‘What will be the annual saving (if any) if discount is availed of, instead of ordering out as per EOQ based on the information above? Question 4a TQM is a philosophy that involves everyone in an organization in a continual effort to improve quality & achieve customer satisfaction.” Explain the approach for TM implementation in an Organization Question 4b ‘The school board is trying to evaluate a new math program introduced to second-graders in five ‘elementary schools across the county this year. A sample of the student scores on standardized math tests in each elementary school yielded the following data: NO. OF TEST ERRORS. te Construct a c-chart for test errors, and set the control limits to contain 99.73% of the random variation in test scores. What does the chart tell you? Has the new math program been effective?Question 5a “Failure to match process capabilities with product or service requirements can result in inefficiencies and higher cost, creating a competitive disadvantage’. Explain the Batch & Continuous process types & summarize their comparison on the four key dimensions: job variety, process flexibility, unit cost, and output volume, Question 5b "The need for layout planning arises both in the process of designing new facilities and in redesigning existing facilities”. Explain the most common reasons for redesign of layouts Question 6a Six jobs are to be processed on 3 machines. The processing time (in days) for each job on each machine is given, Find the sequence of job, which will take minimum time and calculate minimum time. Indicate schedule on Gantt chart fob Ae Ce Ore Mic + Question 6b Booker's Book Bindery divides SKUs into three classes according to their dollar usage. Calculate the usage values of the following SKUs and determine which is most likely to be classified as Unit Value ($) 3.00 = | 0.02 | 0.75 I 40.00 B 0.03 6 3000_ 015 iz 450000 0.45eed er eae Sted Perr ed Pend 0 4a75olaea ‘reas under the Standard Normal Probability Distribution Between the Mean and Postve Values of 2 0.08 0.07 0.0279 0.0675 otoce bias 0.1608 o2i57 6248 02704 03078 03340 0.4282 04525 baste 0.0160 262 0.498? 0.4969 Al