Gauhati University 2007 Post Graduate Diploma Business Management Final --VI - Question Paper

2007
PRODUCTION AND MATERIALS
MANAGEMENT
SIXTH PAPER
Full Marks: 100
Time: three hours
The figures in the margin indicate full marks for the ques.
1. ans any 5 questions: 5×5=25
(a) A two-wheeler component manufacturing unit uses a large amount of a
component made of steel. Although these are production items, the demand is
continuous and inventory planning could be done independent of the production
plan. The annual demand for the component is 2500 boxes. The company
procures the item from a supplier at the rate of Rs.750 per box. The company
estimates the cost of carrying inventory to be 18 per cent per box per annum and
the cost of ordering as Rs.1, 080 per order. The company works for 250 days in
a year. How should the company design an inventory control system for this
item? What is the overall cost of the plan?
(b) discuss the ABC inventory classification system and indicate its advantages.
(c) How is moving avg. method of forecasting similar to exponential
smoothing? discuss.
(d) elaborate the components of a time series? discuss with suitable examples.
(e) Under what conditions should 1 take action while using control charts for
process control? discuss.
(f) Distinguish ranging from assignable and common causes of variations. Why is this
distinction important in quality control?
(g) Why should the project manager calculate the slack of activities in a project?
How are the slacks calculated?
(h) What is the purpose of aggregate production planning? List options for
adjusting capacity.
2. ans any 3 questions: l0×3=30
(a) M/s ABC Manufacturing Company must choose a process for its new product,
from among 3 various options. The subsequent cost data have been
gathered:
Process A Process B Process C
Rs Rs Rs
Fixed cost 1,00,000 2,00,000 5,00,000
Variable cost
(per unit) : 50 40 20
For what quantity of demand would every process be desirable?
(b) What is meant by Assembly-line Balancing? describe cycle time and discuss its
implications. describe Balance Efficiency and Balance Delay of an assembly line.
(c) What is statistical process control? How is it various from acceptance
sampling? When is a process stated to be out of control? How can control charts
be of use in identifying out of control processes?
(d) discuss the difference ranging from attribute control charts and variable control
charts. How are mean (X-) and range (R -) charts used together?
(e) explain the advantages and disadvantages of centralized and decentralized
purchasing. elaborate the advantages of rate contract purchasing?
3. ans any 3 questions: 15×3=45
(a) define the 4 basic kinds of production processes. elaborate the advantages
and disadvantages of each? When should every be used? How is the continuous
flow system various from intermittent flow system? elaborate the key
implications for operations managers?
(b) A manufacturing company has monthly demand for 1 of its products as
follows :
Month Demand
February 520
March 490
April 550
May 580
June 600
July 420
August 510
September 610
Develop a three-period moving avg. forecast and a three-period weighted moving
avg. forecast with weights of 0'50, 0,30 and 0.20 for the most latest demand values in
that order. compute MAD for every forecast, and indicate which would seem to be most
accurate.
(c) (i) What is meant by work breakdown structure? Why do you need this in project
management?
(ii)Consider a project having 7 activities and the subsequent precedence
relationship:
Activity Predecessor Duration
(weeks)
a - 6
b a 3
c a 4
d a 6
e c 4
f b 2
g d, e, f 2
(1) Draw a network of the project and identify the critical path for the project.
(2) compute the slack for the activities in the network.
(3) Suppose the project manager is likely to face a few issues arising out of
resource constraints. Which of the activities, in your opinion, could the manager
consider for rescheduling to optimize the resource utilization?
(d) (i) State the assumptions of the basic EOQ model and explain how they limit the
usefulness of this model.
(ii) M/s XYZ Computers wants to decrease a large stock of PCs that is discontinuing. It has
offered the University Bookstore a volume discount pricing schedule, as follows:
volume Price
(Rs)
1-49 14,000
50-89 11,000
90+ 9,000
The annual carrying cost for the bookstore for a PC is Rs 190, the ordering cost is Rs
2,500, and annual demand for this particular model is estimated to be 200 units.
Determine whether the bookstore should take advantage of this discount scheme or order
the basic economic order volume (EOQ) order size.
(e) (i) Distinguish ranging from a process and product layout. provide an example of every.
(ii) elaborate the various kinds of layouts? How should an organization decide on which
layout to choose?
(iii) A factory, working in two shifts, every eight hours, produces 24000 electric bulbs using a
set of workstations. Using this information, calculate the true cycle time of the plant
operation. There are eight tasks needed to manufacture the bulb. The sum of all task times is
equal to12 seconds. How many workstations are needed to maintain this level of
production, assuming that combining of tasks into these workstations is a feasible
alternative?
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