Seat No.: ________ Enrolment No.

___________

GUJARAT TECHNOLOGICAL UNIVERSITY

MBA –SEMESTER 02– EXAMINATION – SUMMER 2017

Subject Code: 2820006 Date: 09/06/2017

Subject Name: Production and Operations Management
Time: 10.30 AM TO 01.30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Multiple Choice Questions. 6

Q.1(a) ______ is the cost to prepare a machine or process for manufacturing an
order
A. Set up B. Initial
1.
C. Bottleneck D. Backlog
Which of the following is an inventory system?
A. Two bin system B. Ishikawa
2.
C. Coordination of D Andon
operational goals
_____________is a tool for evaluating capacity alternatives?
A. Gantt chart. B. P.E.R.T.
3.
C. Decision Tree D. All of the above

_______control aims at preventing the defects rather than detecting the

defects.
4.
A. Quantity B Zero based budgets
C. Conformance D Quality
Which of the following is not a method of evaluating facility location
alternatives.
5. A. Factor -Rating B Locational Break even analysis method
C. Qualitative factor D Ishikawa
analysis
Average successive time between completion of successive units is called___?
6. A. Utilization B. Cycle Time
C. Process D. Pacing
Q.1 (b) Explain the following : 04
1. Independent demand.
2. Kanban.
3. Process capability ratio.
4. Acceptance Sampling.
Q.1 (c) Define Operations Management. Discuss in brief ‘production as 04
transformation process’.
Q.2 (a) Explain along with advantaged and disadvantages, any two facility 07
layout in detail.

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 (b) TIM incorporated produces copper contacts that it uses in switches 07
and relays. TIM needs to determine the order quantity to meet the
annual demand at the lowest cost. the price of copper depends on the
quantity ordered. Here are price break and other data for the problem:
Annual demand 50,000 tons per year
Holding cost 20 percent per unit per year of the price of the copper
Ordering cost 30 Rs.
Price of copper
Rs 0.82 per ton up to 2499 tons
Rs. 0.81 per ton for orders between 2500 and 5000 tons
Rs. 0.80 per ton for orders greater than 5000 tons.
What quantity should be ordered?

OR
(b) Which are the required Inputs to the Production Planning System? 07

Q.3 (a) 1) Define and explain various costs of quality that a producer should 04
consider while designing quality management issues.

2) Neutron Inc. is attempting to determine whether an existing machine is

capable of milling an engine part that has a key specification of 4+
0.003 inches. After a trial run on this machine, Manufacturer has 03
determined that the machine has a sample mean of 4.001 inches with a
standard deviation of 0.002 inch. Calculate the Process capability index
and whether the manufacturer should use this machine to produce this
part?

(b) Enlist and enumerate factors that will affect the choice of a site for a 07
readymade garment manufacturing facility in India.
OR
Q.3 (a) 6 jobs with processing times on machine A & B have to be sequenced 07
optimally. The time taken for operations on machine A & B are given
below:
Apply Johnson’s rule, determine the optimal sequence of processing the
job. Also determine the cycle time and idle times on machine & B.

Job Machine A (Time in hours) Machine B

J1 8 4
J2 6 7
J3 5 5
J4 7 4
J5 3 6
J6 9 8
(b) What do you understand by the term (PPC)’Production Planning and 07
Control? Explain objectives of PPC

Q.4 (a) Discuss elements of lean production system. 07

(b) Explain principles of material handling that should be followed for 07
effective and reliable material planning
OR
Q.4 (a) Describe and explain assumptions and limitation of Critical Path Method. 07

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 (b) An established company has decided to add a new product t its line. It 07
will buy the product from a manufacturing concern, package it & sell it to
a number of distributors that have been selected on a geographical basis.
Market research has already indicated the volume expected and the size
of sales force required. following table shows the description.
Activity Description Predecessors Duration(days)
A Organize Sales office - 6
B Hire salesman A 4
C Train salesman B 7
D Select ad agency A 2
E Plan ad agency D 4
F Plan ad campaign E 10
G Conduct ad campaign - 2
H Design package G 10
I Setup ad package J, H 6
J Package initial stocks - 13
K Order stock from A 9
manufacturer
L Select distributors & sell C, K 3
M Ship stocks to distributors I, L 5

a) Draw Network diagram

b) Indicate critical path
c) For each non critical activity, find total & free float
Q.5 The Orange bus company manufacture buses for different purposes. 14
The Orange bus objective is to provide expert, bespoke minibus
conversions for individual customers, companies and charities. The
corporate ethos of ‘driving quality’ focuses the company to continuously
look at improving the quality and effectiveness of its products and
services. This is demonstrated through high staff morale, increased sales
and most importantly satisfied customers. Although The Orange bus was
already successfully measuring the quality of its builds and processes
informally, the company wanted to put in place a more formal structure
to improve operational efficiency and drive market share. The Orange bus
decided that a quality certificate would provide the
ideal framework to achieve this.

Successful certification may enable The Orange bus to gain national

recognition as a quality company which consistently builds a high quality
product. The majority of motor manufacturers insist on certification to
this standard and The Orange bus has, subsequently achieved national
accreditation and approval from these manufacturers due to its
outstanding quality.
Auditing is performed monthly and continues to highlight opportunities
for process improvements. Non-conformities and corrective actions are
religiously logged, enabling The Orange bus to learn from mistakes and
put in place initiatives to prevent
recurrences of problems. Now that the company monitors each stage of
the vehicle build, preventative action means that warranty costs have
substantially reduced. The management system also helps the
monitoring of customer feedback. As a result of this feedback, the
company now offer a 36-month warranty which
demonstrates firstly that they do listen to our customers, and, secondly
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 that they have confidence in the build quality of the product.
The only other obstacle they faced was helping staff understand why they
were implementing certification.
a) Explain the quality tool that can be applied in the above case?
b) How will the employees access their role in quality management?
OR
Q-5 The following table gives data on normal time, cost and crash time and 14
cost for a project.
Activity Normal time Normal cost Crash time Crash cost
1-2 3 300 2 400
2-3 3 30 3 30
2-4 7 420 5 580
2-5 9 720 7 810
3-5 5 250 4 300
4-5 0 0 0 0
5-6 6 320 4 410
6-7 4 400 3 470
6-8 13 780 10 900
7-8 10 1000 9 1200

Indirect cost is Rs. 50 per week.

1)Draw network diagram for project & identify the critical path.
2) What are the normal project duration & associated cost?
3) Find out the total float associated with each activity.
4)Crash the relevant activities systematically & determine the optimal
project completion time and cost.

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