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Corporate Management

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Roll No............................. CounePart
1 Examination

NSV 711i

UI(-P-3-Ptoductii Lad Productivity

Maupinenl

Total No. of Questions 6



Time Allowed 3 Hours

Total No. of Printed Pages 4


Maximum Marks - 100

IXIJ

Answer any five Questions.

Marks
1. (a) Define Production and Operations Management. What are the major 2+2
+8
components of a Production System? Explain the areas of Production =12
and Operations Management.
(b) XYZ Cement Company is trying to decide between two location sites, 4+4
=8
A and B. The following data is available for both A and B sites:
Potential

Revenue

Variable Cost

Fixed cost

Location

Per unit

Per unit

per unit

(in?)

(in?)

(in?)

Site-A

50

32

60,000

Site-B

48

29

80,000

Variable cost includes direct material, direct labour and ttahspdrtation


cost.
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Considering above data, suggest,:
(i)

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Which site would yield higher profit to the company at an annual


volume of production of 9,000 units?

(ii) At what volume would the company be indifferent between the


two alternative sites, when. considered in terms of annual profit?

2. (a) Define materials handling. Discuss the principles of materials handling. 2+8
=10
(b) Calculate the standard production per shift of 8 hours duration with the io
fo1lowig data :- .
Observed time per unit 05 minutes'
Rating factor = 120%
Total Allowances = 33 /% of normal time

3. (a).' wht'dd you mean by Siiiy circles 9. Suggest betS 4olity circles 3+7
proginmUor an organization.

(b) Ten samples each of size 100 of a component were inspected The 10
I

ieslttf the inspection are narrated in the table below


8.

10

, 3

Draw , a relevant control chart taking 3 sigma limits; .

--

Sample No. '

No. of Defections 2

2 ' 3
0

4,3

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II

(3)
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Marks

4. (a) A manufacturing firm produces a single product whose selling price is

16 per unit and the variable cost per unit is 12. If the annual fixed
costs of the firm are estimated as 1,20,000; find the break-even point
in units, in rupees, and as a percentage of capacity, if the firm has an
estimated capacity of 50,000 units of the product. What is the margin of
safety?
(b) The production planner of Omega industries, a maker of industrial 12
lenses, devised the following level output aggregate plan for the next 4
periods.

4.'
Period

Demand

Planned Beginning Ending

Forecast Production Inventory Inventory


40,000

48,000

70,000

48,000

30,000

48,000

55,000

48,000

9,000
.

Calculate the projected beginning inventory and ending inventory for


each period. Possible back orders may be shown by a negative number.
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(4)'
Marks

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,5. (a) "Iiip'ut-OUtjt mthbd is uthqU among forecasting methods In that it

reflects inter-industry relationship." Comment.


(b) The manager of an Oil Refinery must decide on the optimum mix of 12
two possible blending process. of which the input and output production
rimsAreas follows:
Output

Input
Process
:1!

Crude-A Crude-B Gasoline-X Gasoline-Y


7

5s

7.

10.

:7.

.6

Th maximum amounts available of, Crude-A and Crude-B are 300


units and 250 units respectively. Market demand shows that at least 180
units ofGasolineX and 160 units of Gasoline-Y must be processed.
The profits per production run from Process - 1 and Process - 2 are
?' 5 and Z6 respectively. Formulate the problem for maximizing the
profit.

6.

Write short notes on- any four of the following:


(i)

ObjeCtives of Job Design

Diagram
,
(ii) Flow
(iii) Normal Time and The Crash Time
(iv) Measures to increase productivity .
(v) Work study

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