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## Ms-53 December, 2009 Production/Operations Management

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December, 2009

MS-53 : Production/Operations Management

SECTION – A

1. (a) What factors have contributed to the increased emphasis on faster product development and introduction ?

(b) A manufacturing firm has three proposals for a product. Either it can be purchased from an outside vendor at Rs. 4.00 per unit or it can be manufactured in-plant. There are two alternatives for in-plant manufacturing. Either a fully automatic unit is procured, involving fixed cost of Rs. 30,000 and variable cost of Rs. 2.75 per unit. Alternatively, a semi-automatic unit would cost Rs. 20,000 as fixed cost and Rs. 3.00 per unit as variable cost. Draw a break-even chart for these alternatives. Suggest range of production - volume suited for these alternatives.

2.(a)  Give an example of a business that would use a push and one that would use a pull operations control system. Explain your choice and briefly describe how the system would work.

(b) Assume that your stock of sales merchandise is maintained based on the forecast  demand. If the distributor's sales personnel call on the first day of each month, compute your forecast sales for each of the three methods mentioned here.

 Month Actual June 140 July 180 August 170

(i) Using a simple three - month moving average, what is the forecast for September ?

(i) Using a weighted moving average, what is the forecast for September with weights of 0.20, 0.30 and 0.50 for June, July and August respectively ?

(iii) Using simple exponential smoothing and assume that the forecast for June, had been 130, calculate the forecasts for September with a smoothing constant alpha of 0.30.

3. (a) What factors should be taken into account when taking make-or-buy decision ? Illustrate your answer with examples from a service and a manufacturing organisation.

(b) In an attempt to increase productivity and reduce costs, Rho Sigma corporation is planning to install an incentive pay plan in its manufacturing plant.

In developing standards for oneoperation, time study analysts observed aworker for a 30 minute period. During that time the worker completed 42 parts. The analysts rated the worker as producing at 130 percent. The base wage rate of the worker is Rs. 50 per hour. The firm has established 15 percent as a fatigue andpersonal time allowance (as a percentage of job time).

(i) What is the normal time for the task ?

(ii) What is the standard time for the task ?

4. (a) What are the differences between implementing JIT in a manufacturing facility and implementing it in a service operation ?

(b) The following tasks must be performed on an assembly line in the sequence and times

specified.

 Task Task Time Seconds Task that Must Precede A 50 - B 40 - C 20 A D 45 C E 20 C F 25 D G 10 E H 35 B, F, G

(i) Draw the schematic diagram.

(ii) What is the theoretical minimum number of stations  required to meet a forecasted demand of 400 units per eight-hour day ?

(iii) Compute the efficiency of the line.

5. (a) What is Group Technology ? Why is Group Technology more important in the present manufacturing scenario ? Briefly explain with an example.

(b) Jobs A, B, C, D and E must go through  Processes I and II in that sequence (i.e., Process I first, then Process II)

Use Johnson's rule to determine the optimal sequence to schedule the jobs to minimize the total required time. Also compute the total completion time for all five jobs.

 Job Required Processing time on A Required Processing time on B A 4 5 B 16 14 C 8 7 D 12 11 E 3 9

SECTION – B

6. (a) How does inventory contribute to the  value-adding activities of a firm ? When should inventory be considered a symptom of waste ?

(b) Items purchased from a vendor cost Rs. 200 each, and the forecast for next year's demand is 1000 units. If it costs Rs. 50 every time an order is placed for more units and the carrying cost is Rs. 40 per unit per year, what quantity should be ordered each time ?

(i) What is the total ordering cost for a year ?

(ii) What is the total carrying cost for a year ?

7. Write short notes on any four of the following :

(a) Aggregate Production Planning.

(b) Delphi Technique

(c) Cellular Manufacturing

(d) Pareto Diagram

(e) MRP -II

(f) VED - classification

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