CONFIDENTIAL BMIMAR 2016/MGT345/375 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE OPERATIONS MANAGEMENT COURSE CODE MGT345/375 EXAMINATION MARCH 2016 3 HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of two (2) parts: PART A (5 Questions) PART B (5 Questions) 2 ‘Answer ALL questions in the Answer Booklet. Start each answer on a new page. 3 Do not bring any material into the examination room unless permission is given by the invigitator. 4. Please check to make sure that this examination pack consists of i) the Question Paper ii) an Answer Booklet ~ provided by the Faculty 5. ‘Answer ALL questions in English DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists of 6 printed pages {© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL PART A QUESTION 1 BMIMAR 2016/MGT345/375 Royal Fumiture Sdn. Bhd. is considering three potential locations to build a factory in Sabah. The information below provides both annual cost and ratings for intangible factors on each location: ‘Annual cost Ranau ‘Sandakan Tawau Machinery (RM) 400,000 130,000 750,000, Land cost (RM) 510,050 730,000 640,000 Labor (RM) 40,500 37,500 23,050 Intangible Factors | Rank | _Ranau ‘Sandakan Tawau Availability of labor 4 [Excellent Very Good Excellent | Proximity to resources 3_| Excellent ‘Good Good [Access to transportation 1 Poor Very Good | Excellent Facilities 2__| Very Good Very Good Very Good ‘Community acceptance 5 Fair Excellent Fair a) Based on the annual cost, which location is the most suitable? (4.marks) b) Based on intangible factors, which location would be preferred? (8.5 marks) ¢) Which location would you recommend if both tangible and intangible factors are taken into consideration in determining the best site? (© Hak Cipta Universiti Teknologi MARA (2.5 marks) CONFIDENTIALCONFIDENTIAL 3 BM/MAR 2016/MGT345/375, QUESTION 2 A network consists of the following list: a) b) c) 4) e) Activity Preceding Activity(s) Duration (Weeks) A : 4 a = 2 c B 7 D A 1 E A 1 F on) 3 G Ag 2 H E 3 o AH 4 Construct a PERT network for the project. (6 marks) Compute the earliest event times and the latest event times. (4 marks) Identify the critical path for the project. (1 mark) Determine the project estimated completion time. (1 mark) Determine the total float, free float and independent float activity for activity H. (3 marks) © Hak Cipta Universit Teknologi MARA CONFIDENTIALCONFIDENTIAL, QUESTION 3 BMIMAR 2016/MGT345/375 Himalaya Sweets Sdn. Bhd. has the following aggregate demand requirements and other data for the upcoming months. Months July [Aug [Sept | Oct _[ Nov | Dec Beginning Inventory 700 Forecasted Demand (units) | 1320 _| 1200 | 1470 | 1280 | 1180 | 1500 Holding cost RM B/unitimonth Stockout cost RM 12/unitimonth Subcontracting cost RM 80/unit Labor cost/hour ~ straight time RM 10 Labor cost/hour — overtime RM 15 Labor hours/unit 2 Work days/month 25 Current workforce 13 Working hours per day 8 a) Develop an aggregate production plan for Himalaya Sweets Sdn. Bhd. using constant workforce strategy by varying inventory and stockout. b) Compute the total production costs for the plan. © Hak Cipta Universiti Teknologi MARA (8.5 marks) (5.5 marks) CONFIDENTIALCONFIDENTIAL, 5 BMIMAR 2016/MGT345/375 QUESTION 4 Bumblee Tumbler Sdn. Bhd. sells 10,000 tumblers per year. The purchase price is RMS5 per tumbler if fewer than 500 tumblers are ordered, RMS0 per tumbler if 500 or more but fewer than 1000 tumblers are ordered and RMS if 1,000 or more tumblers are ordered. The ordering cost is RM10 and the annual carrying cost is 15% of its purchase price. Determine the best order size for the tumblers. (13 marks) QUESTION 5 A time study was performed on a paint production process covering an 8-hour shift. The following data shows time recorded for each task of the operation: a OBSERVED TIME (MINUTES) PERFORMANCE na (2 3 4 5 RATING (%) A 12 15 13 15 13 ‘95 B 30 29 28 31 32 100 [ej 4 7 7 5 6 110 D 14 13, 15, 14 13 100 The allowances given to the workers are as follows: Relaxation : 45minutes Contingency 20 minutes Process : 31 minutes a) Compute the normal time of the operation. (4 marks) b) Compute the allowance factor. (1.5 marks) ©) Determine the standard time for the operation, (1.5 marks) d) Calculate the expected number of units per worker for every 8-hour shift (1.5 marks) e) Compute the labor cost per unit. (Assume labor cost is RM 70 per hour). (1.5 marks) (© Hak Cipta Universit Teknologi MARA CONFIDENTIALCONFIDENTIAL 6 BMIMAR 2016/MGT345/375 PART B QUESTION 1 a) With the aid of a diagram, identify the four (4) basic components in an operation system. (4 marks) b) List any four (4) objectives of operations management. (4 marks) QUESTION 2 a) State any four (4) importance of Research and Development (R&D). (4 marks) b) Identify the four (4) types of process strategies. (4 marks) QUESTION 3 Differentiate between process-oriented layout and product-oriented layout. (8 marks) QUESTION 4 Explain the four (4) types of cost of quality. (8 marks) QUESTION 5 Explain with examples the two (2) types of maintenance. (8 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL