CONFIDENTIAL BM/MAR 2012/MGT345/365/375

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE OPERATIONS MANAGEMENT

COURSE CODE MGT345/365/375
EXAMINATION MARCH 2012
TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) parts : PART A (5 Questions)

PART B (5 Questions)

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paper

ii) an Answer Booklet - provided by the Faculty
iii) a graph paper - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 7 printed pages
© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL
CONFIDENTIAL 2 BM/MAR 2012/MGT345/365/375

PARTA

QUESTION 1

Agro Plantation is planning to produce a new line of chili based product. The following table
shows the tasks to be performed and assigned to the appropriate Workstations. The
management has determined an Output rate of 320 units per day. Assume 8 hours of
workday and 5 days of working week.

ACTIVITY PREDECESSOR(S) TASK TIME

(MINUTES)
A - 0.4
B - 0.5
C A 0.6
D B 0.6
E B 0.6
F C,D 0.55
G E 0.7
H F 0.5
I G,H 0.45
J I 0.6

a) Draw the precedence diagram of the Operation.

(3 marks)

b) Calculate the required cycle time of the line.

(2 marks)

c) Determine the theoretical minimum number of Workstations.

(2 marks)

d) Construct the line layout of the Operation.

(3 marks)

e) Compute the resulting efficiency and balance of delay percentages.

(2 marks)

f) If wages per worker costs RM32 per day, compute the cost of idleness per month.

(2 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 3 BM/MAR 2012/MGT345/365/375

QUESTION 2

ADZ Sdn. Bhd is trying to set up a critical path network for Controlling its research project of
developing new product. The project has ten activities. Its precedence relationships and
activity duration as shown below:

ACTIVITY PRECEEDING DURATION

ACTIVITY (WEEKS)
A - 6
B A 5
C A 7
D A 7
E B 5
F C,E 6
G B 7
H B,D 8

I B,D 7
J F.G.H 5

a) Construct the PERT network for this project.

(4 marks)

b) Caiculate the Earliest Event Time (EET) and Latest Event Time (LET) for each event.

(4 marks)

c) Identify the critical activities for the network. (1 mark)

d) Compute the following:

i) Free Float for activity D. (1 mark)

ii) Total Float for activity G. (1 mark)

iii) Independent Float for activity H. (1 mark)

e) Caiculate the project completion time if activity F were revised to 8 weeks. (2 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 4 BM/MAR 2012/MGT345/365/375

QUESTION 3

Our local farmers co-operative (PPK) at Jalan Bachok is a huge supplier of hydrophonic
lettuce and other vegetables for the Kota Bharu farmers' market. During the planting periods,
it uses urea fertilizers at the rate of 300 bags a day, for 250 days a year. Delivery is virtually
normally constant but requires 5 days to reach the PPK from Kuala Lumpur. The Board of
Directors of has set a two-day usage of safety stock. The cost of ordering inventory is RM 55
per order and carrying cost is RM 0.37 per bags per year.

Based on the Information above, determine the following:

a) Economic order quantity.

(2 marks)

b) The number of order placed per year.

(2 marks)

c) The reorder point.

(2 marks)

d) Reorder cycle.
(2 marks)

e) Total annual inventory cost.

(2 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 5 BM/MAR 2012/MGT345/365/375

QUESTION 4

A time study has been carried out on a typist and the information gathered is recorded in the
time study Observation sheet shown below:

Operations : Prepare letter.

Operators name : Nora Elena
Working time : 9.00 a.m. to 3.00 p.m.

ELEMENTS OBSERVED TIME IN MINUTES PERFORMANCE

RATING
1 2 3 4 5
A. Read rough draft 2.5 20 2.8 2.5 2.6 95%
B. Correct errors 1.5 1.4 1.6 1.5 1.5 120%
C. Set typewriter 2.5 2.5 2.2 2.5 2.3 105%
D. Type Letter 8.0 8.4 8.5 8.5 8.6 110%
E. Proof-read letter 2.6 2.7 2.8 2.5 2.5 90%
F. Correct errors 1.6 1.5 1.6 1.8 1.5 105%

Time allowances per day:

Relaxation: 50 min
Process : 22 min

a) Compute the basic time of the Operation.

(4 marks)

b) Compute the allowance factor.

(2 marks)

c) Determine the Standard time for the Operation.

(2 marks)

d) Caiculate the expected number of letters Nora Elena can type per day.
(2 marks)

e) Determine the number of typist requires to process 120 letters per day.
(2 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 6 BM/MAR 2012/MGT345/365/375

QUESTION 5

The Mega Film Company manufacturers color Photographie film. The film is produced in
large rolls of various lengths before it is cut and packaged as smaller rolls purchased in retail
Stores. The Company wants to monitor the quality of these rolls using a p-chart. 10 samples,
each containing 50 films have been inspected and the results of which are as follows:

SAMPLES NUMBEROF
DEFECTIVES
1 4
2 1
3 2
4 5
5 3
6 2
7 7
8 3
9 4
10 3

Construct a control chart based on 99.7% confidence interval (Z=3). What is the conclusions
can you make regarding the quality of the process?
(10 marks)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 7 BM/MAR 2012/MGT345/365/375

PARTB

QUESTION 1

Discuss the four (4) basic components of an Operations system.

(8 marks)

QUESTION 2

a) Describe two (2) types of research in Operations management.

(4 marks)
b) Identify any four (4) objectives of research and development.
(4 marks)

QUESTION 3

Describe two (2) differences between Process Focus and Product Focus.

(8 marks)

QUESTION 4

Discuss four (4) dimensions of Service quality.

(8 marks)

QUESTION 5

Define the following terms:

a) Inventory
b) Material Requirement Planning (MRP)
c) Lead time
d) Reorder point
(8 marks)

END OF QUESTION PAPER

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL