Email- ft20examnew@gmail.
com
Sub Code- MS5A-504
INSTITUTE OF MANAGEMENT STUDIES
DEVI AHILYA VISHWAVIDYALAYA, INDORE
June – 2021
M.B.A (FT) OPEN BOOK ONLINE EXAMINATION
SEMESTER - II
Subject Name- OPERATIONS MANAGEMENT
Time: 3 Hrs. Max Marks: 60
Instructions: 1. Submit the attendance before 2.30pm, by filling the google form link
provided in the mail.
2. The complete answer sheet has to be scanned as a pdf file and saved as “Roll
number.name.subject name” (Example- 66890.surabhiyadav.financialmanagement) and sent to
the above specified mail id before 5.30 pm.
Note:- 1) Attempt any 5 questions.
2) All questions carry equal marks.
Q1) a) What do you mean by operations management ? what is its utility for a
firm ? (6)
b) Explain the concept of quality control and statistical quality control. (6)
Q2) Navneet Prakashan ltd. is considering to set up a printing unit in M.P. For
this it has finalized four cities Indore, Bhopal, Jabalpur & Gwalior. The break up of
costs at these locations is as follows :-
Cost (Rs) Indore Bhopal Jabalpur Gwalior
Machinery 450,000 400,000 440,000 500,000
Water (per yr) 30,000 20,000 40,000 60,000
Local Taxes(per yr) 50,000 30,000 20,000 40,000
Labour (per unit) 0.60 1.0 0.80 0.50
Raw mat.(per unit) 0.40 0.50 0.30 0.28
Transport.(per unit) 0.18 0.30 0.20 0.20
a) Determine the best location for production of 150,000 units. (3)
b) Find the range of production for which these cities are most economical. (9)
Q3) a) ‘GVK India ltd’ has bagged an order of supplying 8 boiler units to Reliance
Petrolium ltd.
‘GVK India ltd’ has recently started its operations and discovered that it
is on the top of a 90% learning curve. The company has just completed the fourth
unit which took 30 days to complete. The direct cost of manufacturing a boiler unit
is Rs. 10000 per day. At this point of time the company has come to know about a
new advanced boiler manufacturing system. Installing this system will put the
operations on a 80% learning curve (from the fifth unit onwards) . But the
manufacturing time of the fifth unit will be 32 days as per the new system. The cost
of installing the new system will be Rs. 90000.
Should the company install the new boiler manufacturing system? (8)
[unit values from 1-8 for 90% learning rate are – 1 , 0.9 , 0.846 , 0.810 , 0.783 ,
0.762 , 0.744 , 0.729]
[unit values from 1-8 for 80% learning rate are – 1 , 0.80 , 0.702 , 0.64 , 0.596 ,
0.562 , 0.535 , 0.512]
b) Make a comparison of two processes operating on two different learning curves.
(4)
Q4) A manufacturer of sports car engines wants to prepare an aggregate production
plan for the next six months. Following is the forecast of the demand of the product
and the number of working hours available during the next six months:
Month Jan Feb Mar Apr May June
Demand(units) 250 220 300 290 260 180
Working days 23 22 21 24 22 22
Following details are also available :
1) Production is done in a single shift of 8 hours and initially 125 workers are
employed.
2) One engine requires 100 hours of production time.
3) Overtime costs are Rs. 40/hr and undertime costs are Rs. 20/hr.
4) Hiring costs are Rs. 7500 per worker and laying off costs are Rs. 2000 per
worker.
You are required to devise a chase strategy for the manufacturer :
a) Using overtime and undertime alternatives. (6)
b) Using hiring and laying off alternatives for capacity adjustment. (6)
Q5) Tata Aeronautics Ltd. Manufactures a product code named A. The product A
is made of two units of component B and three units of component C. The
component B is again made up of two units of sub component D and three units of
sub component E. Similarly the component C is made of two units of E and three
units of D. The expected demand of the components A,B,C,D and E during next 8
weeks as forecasted by the company is as given.
1 2 3 4 5 6 7 8
A 100 50 200 --- 350 --- 500 ---
B --- 50 100 150 --- 200 100 150
C 300 100 --- 200 --- 150 50 100
D --- 700 --- 600 --- 500 400 ---
E --- 3000 --- 2000 --- 1500 1800 2500
The lead time information, inventory status and lot sizing rule for the components
A,B,C,Dand E is as given :
OHI LT LSR
A 250 2 weeks LFL
B 100 0 FOQ=800 units
C 800 2 weeks POQ=2 weeks
D 6000 2 weeks POQ=2 weeks
E 5000 1 week FOQ=6000 units
a) Draw the product structure of A showing different levels. (1)
b) Prepare a Master Production Schedule for all the components for 8 weeks. (8)
c) Why some of the components have a lead time ? (1)
d) What could be the pros and cons of the lot sizing rules FOQ and POQ ? (2)
Q6) A refrigeration company has six plants located in different parts of a city.Every
year it is necessary for each plant to be completely overhauled. The overhauling is
carried out in two stages A and B , and each stage requires a crew of workmen with
completely different skills. The work on stage B can start only when stage A has
been completed. The plant has to be closed during the entire process of overhauling.
The time required by each crew (in days) at each plant and the current schedule
followed by the company is given below :
Plant P1 P2 P3 P4 P5 P6
Crew A 12 9 10 8 10 10
Crew B 10 7 9 14 6 8
a) Find the optimal sequence for servicing the plants. (2)
b) If the downtime of a plant costs Rs. 5000 per day , idle time for crew A costs
Rs. 1500 per day and idle time for crew B costs Rs. 2500 per day , which of the
two schedules,the present one or the one determined in part (a) is more economical
(10)
Q5) A Wi-Fi Modem manufacturer has received an order to supply 293 units in one
day from a vendor. The manufacturing unit operates 8 hrs in a day and remains shut
down for 40 minutes due to power cut.The product is manufactured on an assembly
line. The precedence relationship of the activities on the assembly line and their
completion time is as given :
Activity Immediate Predecessor Completion Time (min)
A --- 1.1
B A 0.4
C A 0.5
D A 1.2
E B,C 0.3
F D 0.4
G E 0.4
H F 0.8
I G,H 0.7
J I 0.3
a) Group the activities into appropriate workstations and calculate different
parameters. (7)
b) If possible rebalance the assembly line and calculate the efficiency
parameters. (5)
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