UNIT - II FORECASTING, CAPACITY ANF FACILITY DESIGN

SYLLABUS: Demand Forecasting – Need, Types, Objectives and Steps. Overview of Qualitative and
Quantitative methods, Capacity Planning – Long Rage, Types, Developing Capacity Alternatives,
Overview of Sales and Operations Planning. Overview of MRP, MRP II and ERP. Facility Location –
Theories, Steps in Selection, Location Models, Facility Layout – Principles, Types, Planning Tools and
Techniques
PART - A
S.NO QUESTIONS BT LEVEL COMPETENCE

1 Define capacity requirement planning. Level 1 Remembering

Compare mean absolute deviation (MAD) and mean
2 Level 2 Understanding
squared error (MSE).
How would you state the characteristics of Demand
3 Level 3 Applying
Forecasting?
4 What are the methods of Qualitative Forecasting? Level 4 Analysing

5 Can you elaborate on the reason why forecast is needed? Level 5 Evaluating

6 How could you define Capacity planning? Level 6 Creating

7 Define aggregate planning. Level 1 Remembering

8 State the factors affecting Capacity Planning. Level 2 Understanding

9 Differentiate between RCCP and CRP Level 3 Applying

10 Outline the Capacity Planning process. Level 4 Analysing

11 Define Material Requirement Planning. Level 5 Evaluating

12 What can you say about Bill of Materials? Level 6 Creating

13 How would you explain Enterprise Resource Planning? Level 1 Remembering

14 Identify the steps in Location Planning. Level 2 Understanding

15 Can you explain Cellular Manufacturing Level 3 Applying

16 What is your opinion on Product Layout? Level 4 Analysing

17 Define MRP II. Level 1 Remembering

18 Compare MRP I and MRP II. Level 2 Understanding

19 What are the inputs of MRP system? Level 1 Remembering

20 What is facility location? Level 1 Remembering

S.NO QUESTIONS BT LEVEL COMPETENCE

1 How would you show the evolution of MRP and ERP? Level 1 Remembering
2 What can you say about MRP II? Level 2 Understanding
a) How would you explain the types of capacity?
(6Marks)
b) Alpha company has the following sales pattern.
(7Marks)
3 Year 1 2 3 4 5 6 7 8 9 Level 3 Applying

Sales in Lakhs 6 8 11 23 29 34 40 45 56
Compute the sales forecast for the 10th Year
a) How would you use the different alternatives for
capacity development? (5Marks)
4 Level 4 Analysing
b) How would you classify the facility
layout?(8Marks)
A) Past data about the load on the stamping center are as
follows:

5 Level 5 Evaluating

a) Find the exponential smoothing forecast for the

month of December 2009. Take (a=0.33) (4Marks)
b) Compare your answer with five months moving
average forecast.(4Marks)
B) How would you classify the various types of demand
forecasting and explain in detail any two qualitative
and quantitative methods of demand forecasting?
(5Marks)
How would you describe the capacity requirement Level 6 Creating
6
planning? Explain with suitable example.
a) What factors should be considered when selecting the
appropriate capacity? How does the choice of capacity relate
to other decision in operation management and to other Level 1 Remembering
7 functional areas? (6Marks)
b) Can you assess the principles and techniques of facility
layout? (7Marks)
 A company has to decide on the location of a new plant.
It has narrowed down the choice to 3 locations A,B and
C data in respect of which is furnished below:
Locations
Data A B
C (Rupees)
(Rupees) (Rupees)
Wages and Salaries 20000 20000 20000
Power and Water
Expenses 20000 30000 25000

Raw Materials and

Other Supplies 80000 75000 60000
8 Total Initial Level 2 Understanding
200000 300000 250000
investment
Distribution
50000 40000 60000
Expenses
Miscellaneous
Expenses 40000 25000 30000

Expected Sales Per

Year 225000 250000 225000

Use a suitable criterion and advise the company on

the best choice.

a) A steel plant has a design capacity of 50,000 tons of

steel per day, effective capacity of 40,000 tons of steel
per day an actual output of 36,000 tons of steel per
9 day. Compute the efficiency of the plant and its Level 3 Applying
utilization. (8Marks)
b) How would you explain the problems
in implementing ERP?(5Marks)
Give a detailed account on Material Requirement
10 Level 4 Analysing
Planning
State the factors which should be kept in mind while deciding
11 upon a suitable type of plant layout Level 1 Remembering

12 Discuss various types of Facility layout Level 2 Understanding

Explain the steps in Location Selection and Discuss the

13 Level 4 Analysing
factors affecting facility location.
14 Compare and contrast MRP I and MRP II Level 1 Remembering
 PART - C
S.No Questions

A TV assemble unit has 5 work stations whose individual capacities per shift are given below.
1 The capacity of the assembly line is 350 TV’s per day of single shift. Calculate the system
capacity and system efficiency?

2 During which type of situations do you decide to improve or modify the existing layout?