Bangalore University 2005 M.B.A Business Administration PRODUCTION AND OPERATION MANAGEMENT - exam paper

Second Semester M.B.A (Day) Degree Examination, July/August 2005
(Updated Scheme)
Paper – 2.5 : MANAGEMENT
Production and Operations Management


part – A

ans any 6 ques..

1. a) Distinguish ranging from Defectives and Defects and elaborate the control charts used
for monitoring the two.

b) elaborate the 2 kinds of line balancing and what techniques are used to solve the
same?

c) What are the ways of controlling work in process inventory ?

d) What is 6 SIGMA?

e) What is “CRAFT”?

f) Is Value Engineering a cost control or cost reduction technique ? discuss briefly.

g) What are the factors considered for evaluating a vendor?

h) What is Beta distribution, where is it used and what is the mean of the distribution?


SECTION-B

2. elaborate the criteria for deciding what items should be made in house and what items
to be outsourced?

3. An item is needed at the rate of 2500 numbers/month. every item costs Rs.12 and
cost of placing every order is Rs.50. The inventory carrying cost is Rs.1 plus 12% of
unit cost. obtain EOQ and total inventory cost.

If the supplier provide 8% discount for volumes ordered in the range of 10000 and
above should they accept it. If the company works for 300 days a year, obtain the
number of days needed to consume the Economic order volume.



4. What is ISO 14000? elaborate the steps involved in getting the certification?

5. What is TPM? How does it differ from the other maintenance systems? elaborate the
salient features of TPM?

6. compute the Vender Quality Rating for the following:


Suppliers X Y Z
Qty. Supplied 100 110 120
Qty. Accepted 93 98 108
Price of item 5 Rs. 5.2 Rs. 4.9 Rs.
Delivery Promised 6 Weeks 6 Weeks 6 Weeks
true Deli very 7 Weeks 6.2 Weeks 6.6 Weeks
Weightage Quality : 70%
Price: 15%
Delivery: 15%

7. a) elaborate the different kinds of control charts used for monitoring quality on shop floor?
b) A resistor is made from a process which operates ranging from 99.5 ohms to 100.5 ohms. The specification of resistor is 100 ohms ± one ohm.
obtain the Cp (Process Capability) .


SECTION-C
ans any 3 ques..

8. a) Why work measurement is needed ? elaborate the areas where the work
measurement is used ?





b) A time study on a job relates to the following:

Hrs. worked :8 Hrs.
A v. performance rating : 90%
Total allowances for eight hrs. : 55 mts.
Units produced : 400
Idle time : 10%
obtain the standard time per piece.

9. a) elaborate the different forecasting methods used?
b) Forecast for the period 12 for the subsequent data:

Time Actual Moving avg. for Exponential smoothing
Value 3 months for Alpha= .7

1 10
2 11.5
3 12
4 10.9
5 8.9
6 10.5
7 8.9
8 10.5
9 11.7
10 13.8
11 15

Use Mean Absolute deviation and decide ranging from Moving avg. ( 3Months)

Or Exponential smoothing (Alpha=.7) and predict the value for period 12.


10. Discuss:

a) J.I.T
b) CRITERIA FOR Product Design
c) Computer Integrated manufacturing.

11. A sports wear firm has set up an automated production of sweaters. Twenty samples
of size n=50 are checked to establish the control limits for the process.

Defective items in 20 samples of size 50 are

Sample No. of Defective
No. items

1 2
2 3
3 4
4 1
5 0
6 2
7 4
8 1
9 1
10 3
11 0
12 1
13 2
14 1
15 0
16 3
17 7
18 2
19 1
20 2

Establish the control limits using the improper control chart.

12. a) elaborate the modern tools of management used by Industries, to produce High Quality Products at optimum cost ?

b) What is meant by Quality Cost? How it is computed and how does it help the
organization ?








SECTION-D

A contractor had bid Rs. two lakhs to complete a project in 20 weeks. A penalty of Rs. 25,000 will be levied for every week's delay. Also he will be provided an incentive of Rs. 10,000 per week of advance completion. The details are

Activity Precedence Duration Total cost of
(weeks) the activity Rs.
A - 3 6,000
B A 4 8,000
C A 6 12,000
D A 4 8,000
E B 5 10,000
F C 3 6,000
G D 7 14,000
H F, G 3 6,000
I E,H 2 4,000


Draw a network and obtain the project duration.

compute total project cost.

The Management wants to get the project completed in 17 weeks. Which of the subsequent activities should be considered for shortening at provided costs and why?

Activity 'C' at Rs. 8,000/week shortening possible by 1 week
D at Rs. 14,000/week II II II 1 week
E @ Rs. 5,OOO/week II II 1 week
G @ Rs. 8,000/week II " two weeks

Earning:   Approval pending.