Operations Management

02 Jul

1. (a) Draw a systems view diagram of any service organization of your choice. Identify its various components. Explain its interdisciplinary nature.

(b) What are the major characteristics of a Production system? Discuss some of its upcoming issues that provide economies in production and efficiency in the performance of the system.

2. (a) Explain with examples, how the TQM concept can integrate design engineering, manufacturing and service.

(b) What are process capability studies? Explain the process capability index with applications to a real life example.

3. (a) Compare traditional process planning with Computer Aided Process Planning (CAPP). Also explain a generative CAPP system.

(b) Explain the objectives of Total Productive maintenance. Give its importance. Also comment on the concept of TPM promotion.

4. (a) Why is forecasting required in operations management ? Discuss the concept of forecast error as applied to different conditions.

(b) How are quantitative models of forecasting different from qualitative models ? Discuss in detail time-series model as used for forecasting.

5. (a) What is facility planning ? Explain with examples different types of layouts as used in manufacturing organisations.

(b) Discuss work measurement as a process to establish task time. Explain the various techniques for developing time standards.

6. (a) Explain just in time manufacturing with the help of examples. Discuss its advantages and disadvantages.

 (b) For an independent demand inventory model, derive the equation for Economic Order Quantity. List all assumptions.

7. Write short notes on the following:

(a) OPT

(b) Break even analysis

(c) Lean manufacturing

(d) Kanban system

(e) Line of Balance for Production Control

(f) Purpose of aggregate plans.

Operations Management

02 Jul

CASE-1                                                                                                                     

Bloomsday Outfitters produces T-shirts for road races. They need to acquire some new stamping machines to produce 30,000 good T-shirts per month. Their plant operates 200 hours per month, but the new machines will be used for T-shirts only 60 percent of the time and the output usually includes 5 percent that are “seconds” and unusable. The stamping operation takes 1 minute per T-shirt, and the stamping machines are expected to have 90 percent efficiency considering adjustments, changeover of patterns, and unavoidable downtime. How many stamping machines are required?

 

CASE-2                                                                                                                     

In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what would be the quantities that would need amendment as far as Distribution Manager is concerned to service for week two and onwards?

After week one the actual sales to Forecasted sales for week one ratio is as under: Mumbai did 80 % of forecast, Lucknow did 75 % of forecast Kolkata did 60 % of week one forecast Chennai did 125 % of forecast and Delhi did 150 % of week one forecast

  Mumbai Chennai Lucknow Delhi Kolkata
Op Bal 120 350 270 250 350
Safety Stocks 60 125 150 100 200
Min Order Qty 80 200 200 100 300
Lead time wks 1 2 3 2 3
Transit         300
Sales Forecast          
Week 1 50 100 150 50 100
Week 2 35 75 100 75 150
Week 3 55 125 150 80 200
Week 4 65 100 200 55 135
Week 5 80 200 300 75 125
Week 6 125 150 200 80 165
Week 7 50 100 100 90 200

Note: Kolkata will receive transit stocks in week 2.

 

CASE-3                                                                                                                     

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his business and decided to venture into Road transportation business between Chennai and Mumbai and Mumbai and Delhi as he felt that he could do well on this line. However before taking a final decision he hires your Management Consultant firm formed by yourself. He has requested you to work out the Price to quote his clients for these two routes considering the costs involved. He expects to earn a minimum profit of Rs 1000 per day per truck after meeting all expenses. Your analysis of market conditions tell you the following:

Vehicle cost Rs 7 lacs Depreciation 15 % Maintenance costs per day Rs 150 Drivers monthly Salary Rs 5000 : Attendants monthly salary Rs 3000 . Misc expenses Rs 200 per day. Driver allowance is Rs 125 per day and attendant gets Rs 75. Diesel cost per liter is Rs 25 and the vehicle gives an average mileage of 4 km to a liter. The Financial institutions offer loans at 10 % interest pa, which Ramjee has been negotiating. It has been observed that on an average the vehicle covers 400 km per day. The distance between Mumbai to Delhi is 1500 km and Mumbai to Chennai is 1350 km. The driver gets rest day in Mumbai only for one day after they return from any trip.

 

CASE-4                                                                                                                     

A company is operating in two unrelated businesses. The first one is making common salt, which is sold in one-kilogram consumer packs. The second business is making readymade garments. The owner of the businesses has decided to implement Materials Requirement Planning (MRP) in one of the two businesses, which is likely to give him greater benefit. Assuming that the current turnover and profits of both the units are comparable, compare the relative benefits and limitations of Materials Requirement Planning (MRP) for these two businesses.

 

CASE-5                                                                                                                     

A Manufacturer of motorcycles buys spark plugs at Rs.15 each. Now he wishes to manufacture the plugs in his own factory. The estimated cost for the manufacture of spark plugs is around Rs.50,000=00 and the variable cost comes to Rs.5 per spark plug. The Production Manager advises the Manufacturer that the factory should go for manufacturing instead of procuring them from the open market.

List out reasons for the decision of the Production Manager backed up by the necessary data.

Operation Management

02 Jul

1. How would operations strategy for a service industry be different if any from that for a manufacturing industry? (It’s an example & explains)

2. Consider the following two mutually exclusive projects. The net cash flows are given below:

YEAR NET CASH FLOWS FROM

PROJECT A

NET CASH FLOWS

FROM PROJECT B

0 – Rs. 1,00,000 – Rs. 1,00,000/-
1 + Rs. 30,000 + Rs. 15,000/-
2 + Rs. 35,000 + Rs. 17,500/-
3 + Rs. 40,000 + Rs. 20,000/-
4 + Rs. 45,000 + Rs. 22,500/-
5   + Rs. 25,000/-
6   + Rs. 27,500/-
7   + Rs. 30,000/-
8   + Rs. 32,500/-

 

If the desired rate of return is 10% which project should be chosen?

3. What are the levels of aggregation in forecasting for a manufacturing organization? How should this hierarchy of forecasts be linked and used?

4. How would forecasting be useful for operations in a BPO (Business processes outsourcing) unit? What factors may be important for this industry? Discuss.

5. A good work study should be followed by good supervision for getting good results. Explain with an example.

6. What is job evaluation? Can it be alternatively used as job ranking? How does one ensure that job evaluation evaluates the job and not the man? Explain with examples?

7. What is the impact of technology on jobs? What are the similarities between job enlargement & job rotation? Discuss the importance of training in the content of job redesign? Explain with examples?

8. What is internet connectivity? How is it important in to days business would with respect to materials requirement planning & purchasing? Explain with examples?

9. Would a project management organization be different from an organization for regular manufacturing in what ways? Examples.

10. How project evaluation different from project appraisal? Explain with examples.

Operation Management

02 Jul

Q1. Suzan has a part-time “cottage-industry” producing seasonal plywood yard ornaments for resale at local craft fairs and bazaars. She currently works a total of 4 hours per day to produce 10 ornaments. a. What is her productivity? b. She thinks that by redesigning the ornaments and switching from use of a wood glue to a hot-glue gun she can increase her production to 20 ornaments per day. What is her new productivity? c. What is her percentage increase (or decrease) in productivity?

Q2. Ahmet grows domatoes in his 100 by 100 meters garden. He then sells the crop at the local farmer’s market. Two summers ago, he was able to produce and sell 1200 kgs of tomatoes. Last summer, he tried a new fertilizer that promised a 20% increase in yield. He harvested 1350 kgs. Did the fertilizer live up to its promise?

Q3. A company has asked YOU to evaluate the firm’s productivity by comparing this year’s performance with last year’s. The following data are available:

 

______________Last Year This Year OUTPUT 10 500 units 12 100 units Labour Hours 12 000 13 200 Utilities 7 600 MU 8 250 MU Capital 83 000 MU 88 000 MU Has the company improved its PRODUCTIVITY during the past year?

 

Q4. A firm cleans chemical tank cars in the Bay Gazimagusa area. With standard equipment, the firm typically cleaned 60 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 6 hours a day. The company decided to switch to a larger cleaning machine. Last February, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and two employees worked 6 hours a day. a. What was their productivity with the standard equipment? b. What is their productivity with the larger machine? c. What is the change in productivity?

Q5. Serra’s Ceramics spent 3 000 MU on a new kiln last year, in the belief that it would cut energy usage 25 % over the old kiln. This kiln is an oven that turns “greenware” into finished pottery. Serra is concerned that the new kiln requires extra labour hours for its operation. Serra wants to check the energy saving of the new oven, and also to look over other measures of their productivity to see if the change really was beneficial. Serra has the following data to work with: Last Year This Year Production (finished units) 4000 4000 Greenware (pounds) 5000 5000 Labour (hrs) 350 375 Capital (MU) 15000 18000 Energy (kWh) 3000 2600 Were the modifications BENEFICIAL?

Q6. Ahmet Uslu makes wooden boxes in which to ship motorcycles. Ahmet and his three employees invest 40 hours per day making the 120 boxes. a. What is their productivity? b. Ahmet and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what would be their new productivity? c. What would be their increase in productivity?

Q7. Magusa Metal Works produces cast bronze valves on an assembly line. On a recent day, 160 valves were produced during an 8-hour shift. Calculate the productivity of the line.

Q8. Kleen Karpet cleaned 65 rugs in April, consuming the following resources: Labour: 520 hours at 13 MU/hour Solvent: 110 litres at 5 MU/litre Machine Rental: 20 days at 50 MU/day a. What is the labour productivity? b. What is the multifactor productivity?

Operation Management

02 Jul

Answer the following question.

Q1. List the types of quality costs.

Q2. What is production/operations?’

Q3. What are the major decision areas in P/OM?

Q4. Explain the difference between total and partial productivity.

Q5. Contrast the world class view with the traditional view in quality control.

Q6. Describe total quality management (TQM).

Q7. Describe briefly the “Delphi Method”.

Q8. What is the logic of Taguchi methods?

Operations Management

28 Jun

Q1) Explain the concept Six Sigma. Bring out the significance of Six Sigma in Quality Management?

Q2) Define Project Management and explain its nature and features?                     

Q3) What is Process Analysis? Explain the steps in Manufacturing Process Selection and Design?

Q4) Enumerate and explain the Theory of Constraints?                   

Q5) Write short notes:               

a) Inventory Control

b) Operations Scheduling

c) Aggregate Sales and Operations Planning

Q6) Explain the following concept:                      

 1) Product Design                 

 2) Strategic Capacity Management               

 3) Lean Productions              

Q7) Define Material Requirements Planning. Discuss its various components?                   

Q8) What is Supply Chain Strategy? Discuss its characteristics?           

Operation Management

28 Jun

CASE STUDY: 1

Ram Dubey recently purchased a chain of dry cleaners in North Uttar Pradesh. Although the business is making a modest profit now, Ram suspects that if he invests in a new press, he could recognize a substantial increase in profits. The new press costs $ 15,400 to purchase and install and can press 40 shirts an hour or 320 per day. Ram estimates that with the new press, it will cost $ 0.25 to launder and press each shirt, customers are charged $ 1.10 per shirt.

Q1) How many shirts will Ram have to press to break even?

Q2) So far Ram’s workload has varied from 50 to 200 shirts a day. How long would it take to break even on the new press at the low demand estimate? At the high demand estimate?

Q3) If Ram cuts his price to $ 0.99 a shirt, he expects to be able to stabilize his customer base at 250 shirts per day. How long would it take to break even at the reduced price of $ 0.99?

Q4) Should Ram cut his price and buy the new press?

 

CASE STUDY : 2

The Peachtree Airport in Atlanta serves light aircraft. It has a single runway and one air traffic controller to land planes. It takes an airplane and minutes to land and clear the runway (exponentially distributed) planes arrive at the airport at the rate of 5 per hour (Poisson distributed).

Q1) Determine the average number of planes that will stack up waiting to land?

Q2) Find the average time a plane must wait in line before it can lead?

Q3) Calculate the average time it takes a plane to clear the runway once it has notified the airport that it is in the vicinity and wants to land?

Q4) The FAA has a rule that an air traffic controller can, on the average, land planes a maximum of 45 minutes out of every hour. There must be 15 minutes of idle time available to relieve the tension. Will this airport have to hire an extra air traffic controller?

 

CASE STUDY : 3

During the past few years the legislature has severely reduced funding for State University. In reaction, the administration at State has significantly raised tution each year for the past 5 years.

A bargain five years ago, State is now considered an expensive State-supported University. Some parents and students now question the value of a state education and applications for admission have declined. Since a portion of State educational funding is based on a formula tied to enrollments, State has maintained its enrollment levels by going deeper into its applicant pool and accepting less qualified students.

On top of these problems, an increase in the college age population is expected in this decade key members of the State legislature have told the University administration that State will be expected to absorb additional students during this decade. However, because of the economic outlook and the budget situation, State should not expect any funding increases for additional facilities, classrooms, dormitory rooms, or faculty. The University already has a classroom deficit in excess of 25% and class sizes are above the average of their Peer Institutions.

The President of the University MrShekhar, established several task forces consisting of faculty and administrations to address these problems. These groups made a number of recommendations, including the implementation of Total Quality Management (TQM) practices and more in depth focused planning.

Q1) Discuss the general terms how forecasting might be used for planning to address these specific problems?

Q2) Explain the role of forecasting in initiating a TQM approach?

Q3) What are the types of forecasting methods that might be used?

Q4) Describe the Delphi method for forecasting?

 

CASE STUDY : 4

The Aurora Electronics company has been receiving a lot of customer complaints and returns of a front loading VCR that it manufacturers. When a videotape is pushed into the loading mechanism, it can stick inside with the door open, the recorder cannot run, and it is difficult to get the tape out. Consumers will try to pull the tape out with their fingers or pry the tape out with an object such as knife, pencil or screw driver or hurting themselves.

Q1) What are the different costs of poor quality and costs of quality assurance that might be associated with this quality problem?

Q2) Explain the term quality?

Q3) Discuss the dimensions of quality for manufacturing products?

Q4) Discuss the dimensions of quality for services?

Operations Management

27 Jun

1. What is continuous improvement (CI)? What are the major tools for this philosophy?

2. What is the logic of Taguchi methods?

3. Describe briefly the steps to develop a forecasting system.

4. Regression and correlation are both termed “causal” methods of forecasting. Explain how they are similar in this respect and also how they are different.

5. Define the terms “Qualitative Methods”, “Trend Analysis Method (Time Series Method), and “Causal Forecast”. Describe the uses of them.

6. What do you see as the main problem with qualitative (judgmental) forecasts? Are they ever better than “objective” methods?

7. Describe total quality management (TQM).

8. Explain the process of collaborative planning? How is available to promise involved?

Operations Management

27 Jun

Answer the following question.

Q1. A company has asked YOU to evaluate the firm’s productivity by comparing this year’s performance with last year’s. The following data are available: ______________Last Year This Year OUTPUT 10 500 units 12 100 units Labour Hours 12 000 13 200 Utilities 7 600 MU 8 250 MU Capital 83 000 MU 88 000 MU Has the company improved its PRODUCTIVITY during the past year?

Q2. A firm cleans chemical tank cars in the Bay Gazimagusa area. With standard equipment, the firm typically cleaned 60 chemical tank cars per month. They utilized 10 gallons of solvent, and two employees worked 20 days per month, 6 hours a day. The company decided to switch to a larger cleaning machine. Last February, they cleaned 60 tank cars in only 15 days. They utilized 12 gallons of solvent, and two employees worked 6 hours a day. a. What was their productivity with the standard equipment? b. What is their productivity with the larger machine? c. What is the change in productivity?

Q3. Is there a difference between forecasting demand and forecasting sales?

Q4. Describe briefly the steps to develop a forecasting system.

Q5. What are the major decision areas in P/OM?

Q6. List four basic operations strategies.

Q7. Explain the difference between total and partial productivity.

Q8. What is continuous improvement (CI)? What are the major tools for this philosophy?