USN | l l 18MBA21 New Horizon College of Engineering, Bangalore Autonomous College affiliated to VTU, Accredited by NAAC with ‘A’ Grade & NBA. Supplementary Semester End Examination October 2020 OPERATIONS MANAGEMENT Duration: 3 hrs Max. Marks: 100 Answer five full questions choosing one complete question from each module. Module 1 1a) Organize the elements of cycle view of operations system 14 COI b) Draw a line of difference between production and operation management 4 13 cor ©) Summarize the elements of Operation Strateg; 8 12 col OR 2a) Identify the challenges associated with operations management 4 L4 cor b) Categorize different types of Strategic Alliances. 4 13 col ©) Discuss framework of Operation strategy 8 12 col Module 2 3.) Identify Principles of good layout 4 Ls cor b) Explain the reasons of change in Layout 4 12 coz ©) From the following data select the most advantage location for selling a plant for 8 13 CO2 making transistor radios.(4 M) Particulars SiteX (RS) Site ¥ (Rs) Site 2(RS) Total Initial 2,00,000 2,00,000 2,00,000 Investment Total expected sales 2,50,000 3,00,000 2,50,000 Distribution Expense 40,000 40,000 75,000 Raw material Expense | 70,000 80,000 90,000 Power and water 40,000 30,000 20,000 supply Wage and salaries 20,000 25,000 20,000 ‘Other expense 25,000 40,000 30,000 Page 1of418MBA21 OR 4 a) Interpret the importance of good facility layout. 4 L4 con b) Illustrate the Facility layout objectives for Manufacturing operation 4 12 coz c) Potential locations X, Y and Z have the cost structures shown below. The ABC 8 L3 Cor company has a demand of 1, 30,000 units of a new product. Three potential locations X, Y and Z having following cost structures shown are available. Select which location is to be selected Location ¥ Location Y Location Z Fined Costs Rs. 150,000 Rs. 350,00 Rs. 950,000 ‘Vasiable Costs Rs 10 BS B.6 Module 3 5 a) Derive the Factors considered in make / buy decision 4 L4 CO3 b) _ Illustrate the significance of demand forecasting, L3 Co3 ©) An 8 hours work measurement study in a plant reveals the following 8 12 CO3 produced =320 nos Idle time =15% performance Rating =120% Allowance =12% of normal time Compute the standard time/unit produced OR 6 a) Identify the objectives of demand forecasting 4 L4 COB b) Illustrate the steps in method study 4 13 Co3 c) Fora certain element of work, the basic time is established to be 20 see. If for 3 8 L2 CO3 observations, a time study observer records ratings of 100, |25 and 80 respectively, ‘on 100 a normal scale. What are the observed timings? Module 4 7 a) Illustrate the advantages of Material Requirement Plant 4 L3 Cco4 b) Describe different types of maintenance 4 Li co4 ©) Anauto industry purchases spark plugs at the rate of Rs.25/piece .The annual 8 L4 COs consumption of spark plug is 18,000 nos ..If the ordering cost is Rs250/order and carrying cost is 25%Perannum what would be the EOQ? If the supplier of spark plug offer a discount of 3% for order quantity of 3,000n0s order do you accept the discount offer Page 2 of 418MBA21 8a) b) 9a) ») ° 10.) OR Illustrate the steps involves in MRP process. 4 L3 Co4 Write different methods of statistical Quality Control 4 LI cos Manufacturing company purchases 9000 parts of machine for the annual 8 L4 cos requirement each part costing Rs.20. The ordering cost per order isRs.15 and the carrying charges are 15% of the average inventory/ year. Compute the a most. economical purchases policy for the company. Assume that total no of the working days:300 Module 5 Interpret the features of WCBM 4 LS C06 Deseribe the advantages of flexible manufacturing system 6 Li CO6 Calculate vendor rating for the following . The item under consideration isthe © »=—« LS CO6 same from all supplier. Weightage for quali 70% , Price=2% , Delivery =10% Supplier's Data A B Cc Quantity Supplied 90 80 15 Quantity Accepted 8 20 70 Prive of Each Item 4 42 [39 Delivery Promised 6 6 6 ‘Actual Deliveries made in Woe 8 627 OR Interpret the reason for Automation 4 Ls cos List the factors influencing store location. 6 LI Co6 Calculate the vendor rating for the following weightage. 6 LS C06 Quality =50, Delivery=25, Price =15, response to suggestions= 10 Supplier's Data T W i ‘Quantity Supplied 90 a Equivalent Quantity Accepted [78 70 ‘of Item (Rs) a 3 Delivery Promised (in Weeks) _| 6 6 ‘Actual Deliveries (in Week) [8 7 Response to suggestion (%) | 90 700 Page 3 of 418MBA21 Case Study (Compulsory) 11. A company has to select one location out of five alternatives considered for 2 new plant .The operating costs and other intan; le factors are given below for these five location. Factor a B ic D E Ecoromie | 1.20000 110,000 1,60,000 85,000 75,000 factor Labour cost | 10,000 8.000 7,000 12,000 14,000 Tocal Taxes | 17,000 20,000 25,000 19,000 17,000 Costof power | 21,000 29,000 25,000 18,000 23,000 Other costs | 16,000 7,000 72,000 76,000 15,000 Intangible factor Very good | Fair Good Fair Very good Community atitude Tabour Good Veryeood | Fair Outstanding | Acceptable Quality oF | Fair Acceptable | Outstanding | Acceptable | Fair transport Quality of fife [Acceptable | Fair ‘good Very good | Outstanding a) On the basis of annual operating costs which sits would you choose? 5 3 Coz b) On the basis of combined factors whidch size would you choose? 5 L6 COZ ©) Devise a method of quantifying the intangible costs and integrate them with the cost. 5 L3 CO2 deta into the overall evaluation which is best now? @) “Facility location and facility layout complement to each other”. Justify the statement. 5 L6 Cor Page 4 of AUSN 18MBA22 New Horizon College of Engineering, Bangalore Autonomous College affiliated to VTU, Accredited by NAAC with ‘A’ Grade & NBA Supplementary Semester End Examination October 2020 FINANCIAL MANAGEMENT Duration: 3 hrs Max. Marks: 100 Answer five full questions choosing one complete question from each module. Module 1 1a) Briefly explain the role of Finance Managers. 6 Lt cor b) Ifthe discount/ required rate is 10%. Examine the P.V of the cash flow stream detailed 10 L4 CO1 below Rs. 100 at the end of year 1. Rs. 100 at the end of year 4, Rs. 100 at the end of the year3 and 5 years. OR 2a) Discuss the objectives of Financial management. 6 Lt cor b) Suppose a firm borrows Rs. 10, 00,000 at an interest rate of 15% p.a and the loan is to 10 L4 COI be repaid in five equal installments payable at the end of the each of next five years. + Examine equated annual installments. * Prepare loan amortization schedule. Module 2 3.a) Evaluate the various short term sources of finance. 6 LS coz b) ABC Itd issues 10% perpetual debentures of Rs 1, 00,000. The tax rate applicable is 10 L3 CO6 35% Compute the cost of capital (before and afier tax) assuming debt is issued at i) at par ii) at 10% premium iii) at 10% discount. oR 4a) What is meant by lease financing? Briefly explain its types. 6 b) The shares ofa leather company are selling at Rs. 30 per share. The firm has paid 10 dividend at the rate of RS. 3 per share last year. The estimated growth of the company is approximately 6% per year. + Determine the cost of equity capital of the company. © Determine the new cost of equity capital if the anticipated growth rate of the firm (1) rises to 9% (2) falls to 3%. C06 coz oh Module 3 Sa) Explain the factors affecting capital budgeting decision 6 b) The expected cash flow of ABC is as follows: 10 Year [0 1 2 3 4 5 Cash: 100000 | 20000 | 30000 | 40000 | 50000 | 30000 flow Rs. The cost of capital is 12%, calculate the folloy © Net Present Value * Benefit Cost Ratio © Internal Rate of Retum: co3 cos cB Page 1of318MBA22 6a) Ba) b) 9a) b) 9 OR What are the discounted investment evaluation techniques? Explain The firm has initial investment Rs 100,000 and cash flow. Year i 2 3 4 Cash flow Rs. [50,000 | 40,000 | 30,000 _ | 10,000 Discount factor 10%, caleulate NPV and Pl. Module 4 Explain the various factors affecting divided policy. ‘The earings per share of @ company is 8Rs and rate of capitalization applicable is 10%. ‘The company has before it, an option of adopting: + 50% © 75% + 100% dividend payout ratio Compute market price of company’s quoted shares as per Walters’s Model, If it can earn a return of 15%, 10% & 5% ied earnings. currently quoted at par. The company proposes declaration of a di at the end of current financial year. The capitalization rate for the company belongs is 12%. What will be the market price of the share at the end of the year? If * Dividend is not declared + Ifdividend is declared. Module 5 What is working capital management? Prepare an estimate of working capital requirement from the following information of a trading concem. Projected annual sales 2,00,000 units ‘Selling price per unit Rs 8. * Percentage of net profit to sales 25% + Average credit period allowed to customers 8 weeks + Average credit period allowed to suppliers 4 weeks + Average stock holding in terms of sales requirement 12 weeks. + Allow 10% for contingencies. Briefly explain the various factor uencing working capi oR Enumerate the different types of working capital. A firm sells 40,000 units of its product per annum @ Rs. 35 per unit and the variable cost per unit is Rs. 28. The average collection period is 60 days. Bad debt losses are 3% of sales and the collection charges amount to Rs. 15,000. ‘The firm is considering a proposal to follow strict collection policy which would reduce bad debts 10 1% of sales and average collection period to 45 days. It would, however reduce sales volumes by 1000 units and increase the collection expenses to 25,000. The firm required rate of return is 20%, would you recommend the adoption of new collection policy? Explain the three different approaches of financing working capital. I requirements. 6 LW 10 3 6 12 10 13 6 12 10 13 41 4 Ls 8 12 4 1 45 8 12 cos Co3 cos cos cos cos cos, cos. cos cos cos cos Page 2 of 318MBA22 M1 Case Study (Compulsory) Estimate the working capital required for the project. Raw material: 80 Direct labour: 30 Overhead (exclusive depreciation of Rs.10): 60 Total cost of production: 170 Additional information: Selling price- Rs 200 per unit. Level of capacity 104000 unit Work in progress (50%)- average 2 weeks. Raw materials in stock — average 4 weeks Finished goods in stocks — average 4 weeks Credit allowed by suppliers —4 weeks Credit allowed to debtors — 8 weeks. Lag in payment of wages — average 1.5 weeks Cash in bank — Rs 25000 Production is carried out evenly throughout the year. All sales are on credit basis. Ex the necessary working notes. Examine the total Current Assets. Predict the total Current Liabilities. Predict net working capital, een L4 L4 L6 L6 cor co3 cos cos Page 3 of 3