Faculty of Engineering

School of Automobile, Mechanical and Mechatronics Engineering

B. Tech. (Mechatronics Engineering)
VII Semester
End Term Examination: 2021-22
MC1761 – Production and Operation Management
(CLOSED BOOK)
Duration: 2 Hour Max. Marks: -40
Instructions:
 Answer any four questions,
 Missing data, if any, may be assumed suitably,
 Calculator is allowed.
1. a) Differentiate between the production management and operation management with suitable [5]
examples in detail.

b) What are the various types of production layouts? Explain and give their relative advantages [5]
and applications.

2. a) What are the factors affecting the forecast and explain the types of forecasting in decisions [5]
making?

b) Explain the different techniques of the existing and new product design and analysis and [5]
discuss concept of Value Engineering (VE).
3. a) The annual demand of a product is 36,000 units. The average lead time is 3 weeks. The [10]
standard deviation of demand during the average lead time is 150 units/week. The cost of
ordering is Rs. 500 per order. The cost of purchase of the product per unit is Rs. 15. The cost
of carrying per unit per year is 20% of the purchase price. The maximum delay in lead time
is 1 week and the probability of maximum delay is 0.3. Assume a service level of 0.95
(K=1.64).

i. What is the reorder level (ROL) if Q system is followed?

ii. If P system is followed, what is the maximum inventory level?
4. a) Write short note on the following topics: [5]
i. Standardization and Simplification,
ii. Pure and Mixed Strategies used in capacity planning.

b) Company A sells its product for $4 per unit, has variable costs per unit of $2.50, and its fixed [5]
cost is $50,000 per period. Company B sells a product like A's for $3.80 per unit, has variable
costs per unit of $1.80, and its fixed cost is $80,000 per period.
i. Calculates the Break-Even Quantity (BEQ) for A and for B.
ii. Estimates the break-even revenue for A and for B.
5. a) The forecast for a group of items manufactured in a firm is shown in table 5-a. The firm [10]
estimates that is costs Rs. 225 per unit to increase the production Rs. 275 per unit to decrease
the production rate, Rs. 80 per unit per quarter to carry the items on inventory and Rs. 150
per unit if subcontracted. Compare the cost incurred if the following pure strategies are
followed.
i. Plan-1: Varying the workforce size
ii. Plan-2: Changing the inventory levels
iii. Plan-3: Subcontracting
Table 5-a
Quarter 1 2 3 4 5 6 7 8
Demand 420 370 620 720 600 200 300 400