Dhangadhi Engineering College

Level: Bachelor Semester – Fall Year : 2019

Programme: BBA Full Marks : 100
Course: Operation Management Time : 3 hrs
Candidates are required to give their answer in their own words as far as practicable. The
figures in the margin indicate full marks.
Attempt all the questions.

Section: A

Very short answer questions

Attempt all the questions. (10*2=20)

1. Define operation strategy.

2. What do you mean by productivity?
3. Define operation system.
4. Define company mission.
5. Write any two differences between dependent and independent demand.
6. What is competitive advantage?
7. Define modular design.
8. What are the components of product life cycle?
9. If a plant has an effective capacity of 6500 and an efficiency of 88% what is the actual
output?
10. Define quality.
Section: B
Long answer questions

Attempt any six questions. (6*10=60)

1. "Operation management plays a significant role for gaining long term sustainable
competitive advantage for the company" Justify.
2. Upgrading capacity frequently is expensive and upgrading capacity infrequently is also
expensive. Comment on the statement.
3. Define supply chain management. Explain about the supply chain strategies.
4. 10 samples of 15 parts each were taken from an ongoing process to establish a chart for
control. The samples and the no. of defectives in each are shown in the following table:

Sample 1 2 3 4 5 6 7 8 9 10
Defectives 3 1 0 0 0 2 0 3 4 0
Draw a suitable quality control chart for 95% confidence interval. Comment on the
information provided by the chart.
5. At the end of each month, a research and development team writes status reports for the
projects at work. The team leaders, Andrew and Julie, submit them to the R&D director
on the first Monday of each month. Unfortunately, they forgot to check their calendar one
month until late Friday evening. To their surprise, they discovered that the month ended
on Sunday and the reports were due the following Monday morning. As they had not
started writing them, they decided to come to work early Saturday morning, so they could
finish the reports before Monday morning. They split the work as follows: Andrew writes
and edits the reports while Julie collates data and draws all the necessary graphs. Assume
that Julie starts her work on a report as soon as Andrew is finished with it and that
Andrew works continuously. Times for the reports (in hours) are as follows:

Projects Andrew Julie

A 4 2

B 3 5

C 5 1

D 7 3

E 8 6

a. What is the order of the tasks using Johnson's rule?

b. How many hours will it take them to finish all the reports?
c. How many hours is Andrew idle?
d. How many hours is Julie idle?
6. Surge electric uses 4000 toggle switches a year. A supplier has approached the company
with following price schedule:
Range (units) Unit price(Rs)
1 to 499 90
500 to 999 85
1000 to more 82
It costs approx. Rs 18 to operate an order and receive it and carrying costs are 18% of
purchase price per unit on an annual basis. Determine the optimal order quantity.
7. Define JIT. Explain about the various elements of JIT.

Section: C
Comprehensive answer questions
8. Read the case situation given below and answer the questions that follow. (20)

JIT
Indian Institute of Materials Management (IIMM) is a forum for purchase 
andmaterials related employees and they have frequent meetings, seminar
s   a n d annual conventions to share knowledge.
In one of their annual conventions the topic was implementation 
o f   J I T   f o r competitive advantages. Leading personalities of the Indian industries talked
lots of positive points and benefits due to the JIT purchase and JIT manufacturing methods. Many
presented calculations and statistics of savings in costs and time and how it helps in reduce the
price of the end products and hence competitive advantage. Most of the audience
were impressed about the theory and thought of
practicala p p l i c a t i o n   i n   t h e i r   r e s p e c t i v e   c o m p a n i e s .   H o w e v e r ,   f e w   o
f   t h e   e x e c u t i v e participants were more worried about practice and less i
n t e r e s t e d   i n   i d e a l i s t i c theories.O n e   M r .   J I t e n d r a   J o s h i   o f   L M L ’ s   B a n g a l o r e   o
ffice was impressed. He has beena r r a n g i n g   E n g i n e   B l o c k   c a s t i n g s
,   t y r e   t u b e   s e t s ,   m a c h i n e d   c o m p o n e n t s , speedometers etc from
southern region to LML, Kanpur Unit. He has 15 years’ of  experience in facing lots
of problems in arranging the long distance supplies. He mustered courage to get up and
ask few questions against the JIT and summary of question to Mr. Sudhakar (the speaker) were
as follows: Mr. Joshi said JIT cannot be fully implement able in Indian conditions due to
following genuine constraints.
(a)The interstate disputes like ‘Kaveri Dispute’, “Border disputes’ at tim
e s disturb the arrangements.(b)On and off terrorism, political hagitatations, holidays due to local,
regional and national leaders’ deaths also disturb work environment.(c)Spread of vendors all
over India and vastness of coverage do not enable to know correct position of WIP
of vendors.(d)Transport bottlenecks, heavy rains, floods (coastal areas), workers’
strikes cause anxiety and worry.
( e ) P a r t n e r s h i p   p r o b l e m s ,   f i n a n c i a l   a n d   q u a l i t y   c o n s t r a i n t s   a r e   n o t 
e a s i l y attended or solved.  T h e s e q u e s t i o n s w e r e l i k e a m i n i s p e e c h o n a n t i J I T
a n d t h e a t m o s p h e r e i n t h e auditorium got charged up Mr. Sudhakar, the speaker, gave
half hearted replies to questions for which Mr. Joshi and his friends were not satisfied. Finally
Mr. Sudhakar said:“The system which operate successfully in Japan may not work equally well in
other countries.” Only when Mr. Joshi took his seat as he felt he has made his clear
on

Practical problems than merely going through the theory. Suddenly he seems to
have won the admiration of the gathering. Prof. Rao who was chairman of the technical session
gave his concluding remarks. He appreciated the ideology of JIT but advised executives to take it
up step by step and ensure pragmatic views and do not over depend on JIT to fail.
This he told as Indian Industrial Environment is yet to mature to take care of JIT systems in
totality.
QUESTIONS
1. Explain why JIT purchase works well in the developing countries
2. Do you agree with Mr. Joshi’s views on constraints to JIT? Explain the
correct problems.
3. Write how you feel the JIT systems can be adopted in developing countries with an
example.