Birla Institute of Technology (BIT Mesra) 2006 JUST-IN-TIME MANUFACTURING - Question Paper

Birla Institute of Technology & Science, Pilani

Distance Learning Programmes Division

Second Semester 2004-2005

Mid-Semester Test

(EC-1 Regular)



Course No. : MM ZG542

Course Title : JUST-IN-TIME MANUFACTURING

Nature of examination : Closed Book

Weightage : 40%

Duration : two Hours

Date of examination : 20/02/2005 (AN)

Note:

1. Please follow all the Instructions to Candidates provided on the cover page of the ans book.

2. All parts of a ques. should be answered consecutively. every ans should begin from a fresh page.



Q. 1. Why is it important for the builder of production system models to completely understand the components of any accounting figure? [4]



Q. 2. List down the dimensions that are used to classify a production system and categorize the production system based on these dimensions. Also, discuss the differences ranging from make to order, make to stock and assemble to order production system. [6]



Q. 3. The monthly demand for a product manufactured by the XYZ company has been as follows:



Month
Unit
Month
Unit

May
100
September
105

June
80
October
110

July
110
November
125

August
115
December
120




a. The initial forecast for May was 105 units and 2 values of a are examined: a = 0.2 and a = 0.50. Use the exponential smoothing method to forecast the number of units for June-January using these 2 values.

b. Which value of smoothing constant (a) is preferred and why? [6 +1]



Q. 4. explain briefly about the operational decision in distribution system. [5]

Q. 5. The ABC Knitwear Company is India’s largest producer of woollen sweaters. As you might suspect, sweaters exhibit a highly seasonal demand pattern, with peaks during the winter months and valleys during the summer months. provided the subsequent costs and quarterly sales forecasts, design a production plan that will economically meet demand. What is the cost of the plan?



Quarter
1
2
3
4

Sales Forecast
50,000
150,000
200,000
52,000




Inventory carrying cost Rs.3.00 per sweater per quarter

Production per employee 1000 sweaters per quarter

Regular workforce 50 workers

Overtime capacity 50,000 sweaters

Subcontracting capacity 40,000 sweaters

Cost of regular production Rs.50 per sweater

Cost of overtime production Rs.75 per sweater

Cost of subcontracting Rs.85 per sweater [6]



Q. 6. explain the difference in assumption ranging from the Economic order volume (EOQ) and Economic manufactured volume (EMQ) models. How does this affect the development of cost function in the 2 models? [6]



Q. 7. describe production authorization and discuss briefly the production authorization options with neat diagrams. [6]

Earning:   Approval pending.