PRACTICE QUESTION SET A

Group A
Short answers 2*10 = 20
1. Explain the concept of operations management.
2. What do you mean by capacity chunk?
3. What is ERP?
4. What do you mean by job shop technology?
5. What do you mean by robust design?
6. What do you mean by bull whip effect?
7. Define TQM.
8. What do you mean by competitive advantage?
9. What is six sigma concept?
10. Draw a figure for the service blueprint.
Group B
Long answers: 10*6 =60
11. Define operation system. Explain the most recent trends of operation management in
Nepal.
12. Six jobs are to be processed through a two step operation. The first operation involves
sanding and the second involves painting. Processing times in days are as follows:
Job Sanding (days) Painting (days)
A 10 5
B 7 4
C 5 7
D 3 8
E 2 6
F 4 3
Apply Johnson’s rule and calculate
 Optimal schedule
 Total completion time
 Total slack time

13. A visual inspection for scratches (each unit is judged good or bad) on a decorative paint
trim produced the following data for the last week. For each sample, 30 units were
inspected.
Sample 1 2 3 4 5 6 7 8 9 10
Defectives 5 4 4 5 7 4 5 6 4 5
This week 30 pieces were again inspected on each of two occasion and on Monday 6 pieces
were found defective in the first sample and on Tuesday nine were found defective in the
second sample. Comment on the process by developing a suitable chart with standard
deviation equaling 2.

14. Explain the supply chain management. Also explain stages of vendor selection process.
15. The Annapurna hotel uses approximately 600 base of soap each day and this tends to be
fairly constant. Lead time for soap delivery is normally distributed with a mean of six
days and standard deviation of two days. If a service level of 90% is desired, find the
ROP.
16. What factors will you consider before choosing the best capacity decisions?
17. An organization has four jobs on order as shown in the following table. Today is day 205
on the schedule. In what sequence would the jobs be ranked according to the following
decision rules:
Job Due date Remaining Time (days)
A 212 6
B 209 3
C 208 3
D 210 8
a. SPT b. EDD c. Critical Ratio

Group C
18. Case study: 4*5 = 20
Maruti Suzuki limited is one of the most successful examples of supply chain management in
the Indian Automobile sector. Over the years it has worked to convert many obstacles into
opportunities. Maruti has around 246 local suppliers and about 20 global suppliers. They all
function in a seamless manner. The company strictly receives its suppliers ordered the
previous night, in a two three hour slot the next day than an initial 30 days supply period.
Some of the salient features that make the supply chain of Maruti effective are summarized
below. Maruti was set up in the 1980’s. Many of the Suzuki’s global vendors set up joint
ventures in the northern region of India. While setting up the plant, the government had
approved of manufacturing only on condition of localization of components.
Maruti used this by scouting for entrepreneurs and turning them into vendor facilitating
loans, licenses, technical know- how and even location in a phase manner. Of the 246
suppliers, Maruti has joint ventures with 14 of them and hold strategic equity stake to have a
say in production and quality issues.
Maruti, however, was not satisfied with the delays in production due to the time lag in
suppliers. The company had adopted the Japanese system, just in time to achieve higher
operational efficiencies and reduce inventory carrying cost. Maruti Suzuki has adopted the e-
Nagare system of electronic flow which has completed transformation in supply chain. To
achieve JIT material supplies, the company has given preference to locally based suppliers.
Over 76 percent of the company’s 24 suppliers are located within the radius of 100 km. They
have strategically located the suppliers of bulky components such as instrument panels, fuel
tanks, bumpers, seats, etc. adjacent to the company’s manufacturing facilities in the
Supplier’s Park. Maruti supports its vendors in all possible ways. This includes finding
technological partners, giving financial, technical and management support and bringing
transparency in its dealings. Of late, Maruti has been collaborating with suppliers to
smoothen human resource development issues which has resulted strikes and delays. Fifty
four of the top 80 component suppliers of Maruti Suzuki India compete against each other in
what has been called quality circle competition and the top three get a chance to present their
cases in Suzuki’s Japan facility alongside other global vendors. The idea behind the QCC
was for the team from different vendors to identify, discuss and resolve any one core
business issue that with add value to the overall functioning of the company, thereby
increasing overall efficiency.
Questions:
1. Maruti has joint ventures with 14 suppliers, what kinds of supply chain strategies it is?
Explan different others kind of supply chain strategies too
2. Has the implementation of quality circle affected the efficiency and responsiveness of
supply chain of Maruti Suzuki India?
3. Do you think JIT technique used by Maruti contributes to competitive advantages?
4. You must suggest how Maruti Suzuki builds the lead management system for better
performance.
 PRACTICE QUESTION SET B
Group A
Very short answers: 2*10 =20
1. Draw a figure for the transformation process in operations management
2. Give any four differences between goods and services
3. What do you mean by service blue printing?
4. What do you mean by producer’s risk and consumer’s risk?
5. What do you mean by Pareto analysis?
6. What do you mean by bull whip effect?
7. What do you mean by dependent and independent demand?
8. What do you mean by Keizen
9. What do you mean by 5s’?
10. What do you mean by operations scheduling?
Group B
Long questions: 10*6=60 (Any six)
11. What do you mean by productivity? Describe about the factors affecting productivity in
detail
12. What do you mean by TQM? Describe about the philosophical elements of TQM
13. What do you mean by SCM? Describe about the strategic decisions to make effective
SCM
14. Describe about the different types of wastes and different ways of eliminating these
wastes?
15. The advanced company has three jobs to be done on three machines. Each job must be
done on one and only one machine. The cost of each job on each machine is given in the
following table:
Cost information:
Jobs Machines
X Y Z
A 25 31 35
B 15 20 24
C 22 19 17
Note: cost is given in rupees
Question: Give the job assignments which will minimize the cost

16. The demand for subassembly S is 100 units in week 7. Each unit of S requires 1 unit of T
and 2 units of U. each unit of T requires 1 unit of V, 2 units of W, and 1 unit of X. finally,
each unit of requires 2 units of Y and 3 units of Z. one firm manufactures all items. It
takes 2 weeks to make S, 1 week to make T, 2 weeks to make U, 2 weeks to make V, 3
weeks to make W, 1 week to make X, 2 weeks to make Y, and 1 week to make Z.
 Construct a product structure. Identify all levels, parents, and components
 If 100 units of S are needed in week 7, develop a planning schedule showing
when each item should be ordered and in what quantity

17. The following 5 jobs are waiting to be processed ABC Inc. These jobs were logged as
they arrived. All dates are specified as planning calendar days. Assume that all jobs
arrived on day 180; today’s date is 200
 Job Due Date Duration (days)
A 214 10
B 223 7
C 217 11
D 219 5
E 217 15

Using the critical ratio scheduling rule, in what sequence would the jobs be processed?
Group C
Long questions: 2*10 =20
18. The following figures give the number of defectives in 20 samples, each containing 2000 items.
425 430 216 341 225 322 280 306 337 305
356 402 216 264 126 409 193 326 280 289

Calculate the values for central line and the control limits for p-chart. Draw the p-chart
and comment if the process can be regarded in control or not.
19. A toy manufacturer uses 48000 rubber wheels per year for its popular dump truck series.
The firm makes its own wheels, which it can produce at a rate of 800 per day. The toy
trucks are assembled uniformly over the entire year. Carrying cost is $1 per wheel a year.
Setup cost for a production run of wheel is $45. The firm operates 240 days per year.
Determine:
 Optimal run size
 Minimum total annual cost for carrying and setup
 Cycle time for the optimal run size
 Run time

*THE END*