MBA II (Second) Semester Examination 2012-13

Course Code:MBA203 Paper ID:0522403

Production and Operations Management

Time: 3 Hours Max. Marks: 70 Max Marks: 75

Note: Attempt six questions in all. Q. No. 1 is compulsory.

1. Elucidate any five of the following (limit your answer to 50 words). (4x5=20)

a) Explain the significance of therbligs.

b) What do you understand by activity sampling?

c) Enlist 5s pillars of TPM principles of quality.

d) Explain PARETO principle.

e) What do you mean by master production schedule?

f) Describe the functions of production control in brief.

g) Enlist the responsibilities of operations manager.

h) Explain the types of manufacturing system.

2. Define work-study. Explain the steps involved in work measurement. (10)

3. What do you mean by forecasting errors? How tracking signal can be used to monitor and control the forecasting model? Explain with the help of suitable diagram. (10)

4. a) Following data is from Bharat Construction Co., you are required to categorize the inventories in ABC categories. (5)

Materials / Bolts
(Unit) / Steel
(Kg) / Paint
(Kg) / Teak Wood
(Unit) / Nails
(Kg)
Annual consumption qty / 3000 / 2800 / 3 / 10 / 10
Unit price / 1 / 15 / 100 / 550 / 20
Materials / Structural
(Kg) / Washers
(Unit) / Bushes
(Unit) / Home Wood
(Cu Ft.) / Nuts
(Unit)
Annual consumption qty / 1000 / 750 / 1000 / 30 / 800
Unit price / 22 / 14 / 4 / 300 / 1

b) Calculate the RSFE,MAD, MAPE, MSE, and tracking signal for each week from the given set of data. (5)

WEEK / 1 / 2 / 3 / 4 / 5
Actual
demand / 954 / 1045 / 1162 / 1189 / 1250
Forecast
demand / 991.6842 / 1053.486 / 1123.539 / 1209.983 / 1277.335
WEEK / 6 / 7 / 8 / 9 / 10
Actual
demand / 1291 / 1368 / 1325 / 1372 / 1499
Forecast
demand / 1341.141 / 1395.097 / 1454.341 / 1475.15 / 1497.628

5. Explain Deming’s principles of quality. (10)

6. On making a number of preliminary observations, a machine appears to be idle 30% of the total time available for its operation. Use a proper statistical formula to calculate how many activity sampling observations should be made to obtain a more accurate estimate of idleness within limits of ±5% and at a 95 % confidence level. (10)

7. Stop watch time study was made of an assembly task that involved four elements. The data gathered are as follows (allowances are 15 % of normal time): (10)

ELEMENTS / 1 / 2 / 3 / 4 / 5 / RATING
1 / 0.04 / 0.04 / 0.03 / 0.03 / 0.04 / 100
2 / 0.12 / 0.10 / 0.09 / 0.10 / 0.10 / 90
3 / 0.16 / 0.24 / 0.15 / 0.16 / 0.16 / 115
4 / 0.13 / 0.13 / 0.12 / 0.14 / 0.14 / 120

Calculate- Normal And Standard Time.

8. MK BOND PAPER manufactures photocopier papers. It is evaluating two location options for its new facility. The first location option is Dehradun, where the fixed cost will be ` 2 million and variable cost will be `200 per ream of paper. The second location option is Hyderabad where the fixed cost of the facility will be `2.5 million and the variable cost will be `170 per ream of paper. The factory will produce 10,000 reams of the papers in the first year of production. Which location should the company choose? (10)