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PART A
Descriptive Type Question
Question 1: A small electronics company produces pocket calculators and records the demand
monthly. The following demand data are for a representative calculator:
November 45
December 57
January 60
Using 50 as the exponential smoothing forecast for November, and using 0.3 as the exponential
smoothing coefficient, forecast February sales.
Question 2: ACE Computers has the following expected production capacity and demand for
minicomputers:
Quarter
1
2
3
4
The company does not accept any backorders and wishes to fulfill demand by letting inventories
absorb all fluctuations. How many minicomputers must they have on hand on January 1 to meet
the forecast demand throughout the year?
Question 3: The Vice President of Koza Company has estimated the following demand
requirements for the forthcoming periods.
Periods
1
2
3
4
The operations manager is considering the following plans:
Plan 1: Maintain a stable workforce that is capable of producing 1800 units per period, and meet
the demand by overtime at a premium of $50 per unit. Idle time costs are equivalent to $60 per
unit. Do not build to inventory.
Plan 2: Produce at a steady of 1600 units per period, and accept a limited number of backorders
during periods when demand exceeds 1600 units. The stockout cost of lost sales is $100 per
unit. Inventory costs per period are $20 per unit.
Plan 3: Produce at a steady rate equal to minimum requirements of 1400 units and subtract the
additional units at a $75 per unit premium.
Plan 4: Vary the workforce level, which is currently capable of producing 1600 units per period.
The cost of additional workforce per 100 units is $5000, and the cost of layoffs per 100 units is
$7500.
Plan 5: Vary inventory levels, but maintain a stable workforce level by maintaining a constant
production rate equal to the average requirements. The company can accumulate required
inventory before period 1 at no additional cost. The inventory cost per period is $20 per unit.
Answer the following:
1. Analyse the above plans. Use graph and tables for presentation of your analysis.
2. Discuss the merits and disadvantages of these plans.
3. Which plan will you recommend and why?
Question 4: Using the data in Table 1 below, compute weekly requirement for the following
schedule:
Question 5: With reference to Problem 4, calculate the capacity requirements for the final
assembly department, ignoring lead times.
Average assembly time: 1.2 hours
Average subassembly time: 0.8 hours
Average fabrication time 0.2 hours
The subassembly lead times are included in the assembly lead times.
Question 6: Given the following BOM, MPS and inventory status, develop MRP tables for all
items (ten tables in total)
Question 8: Clark Company makes three products on three different types of equipment. The
matrix of operating times and job setup times (in decimal hours), demand per month, and
economical lot sizes for manufacturing are given in Table below. The machine utilisation factor is
approximately 90%, and operator efficiency of the shop is believed to be 105%.
How many of each of the machines will be needed if the plant works a 40 hour week?
Question 9a: Explain the forecasting process? What are the techniques for monitoring
forecasts?
January
February
March
Regular Time
600
300
200
Over Time
300
300
300
Sub Contracted
500
500
500
The production cost per unit during regular time is Rs 60, during over time is Rs 70, and
the sub contracted cost is Rs 72. The cost of carrying inventory is Rs 5 per unit per
month. The cost of unused regular time capacity is Rs 15. Find the optimum production
plan using transportation model.
Question 11a: What is Master Production Scheduling? Explain various types of Bill of
Materials.
Question 11b: What are the various disaggregation methods in use?
Question 12a: Explain Materials Requirement Planning. What are the inputs and
outputs of MRP?
Question 12b: Explain the various Lot sizing techniques.
Question 13a: Explain assembly line balancing clearly defining various terminologies
like cycle time, precedence diagram, work stations, efficiency, utilization, balance delay,
etc.
Question 13b: Explain the key elements to successful JIT.
Question 14: Explain, long-range, medium-range and short-term capacity planning
methods?
Question 15a: What are various batch processing techniques?
Question 15b: Explain the concept of theory of constraints and synchronous
manufacturing.
Question 16: Short notes
(a) Kanban
b)
c)
System nervousness
PART B
Case Study 1
In 1990, Jain began to make custom furniture full time in his garage. Jain's work had been
admired by friends and neighbours, who often asked him to make special pieces for them. In
1995, he expanded his operations by leasing a used facility and hiring two additional skilled
workers: a woodworker and a leather specialist. By 1998, Jain formed a company called Good
Wood P Ltd, and had 11 employees.
Today, Good Wood serves a custom furniture market covering Delhi and surrounding regions.
Jain, the CEO, has a staff of 37 employees. Custom made furniture is the sole product line, and
the company has prided itself on high quality and timely delivery services. Organisationally,
Good Wood has Production, Sales, Purchasing, Shipping, and Design departments. Production
department includes wood framing, wood preparation, wood finishing, metal finishing, leather,
glass, plastics, and cloth fabrics.
This past year, 250 to 300 jobs were processed in the facility on any given day. Although
product quality remains high, on time deliveries have deteriorated. The average job seems to be
four to seven weeks late. Suresh, an employee since 1995, and a special assistant to the shop
manager does the shop loading. His job also includes coordinating the overall shop efforts with
those of the sales and design departments. He recently compiled data on waiting job orders for
a typical day.
Detailed scheduling of orders has always been the responsibility of the three shop foremen.
Joshi is foreman of the wood preparation, framing, and finishing departments. Srivastava is the
foreman for the leather and cloth fabrics departments. Chatterjee is the foreman of the metal,
glass and plastics departments.
Jain is concerned about job lateness. He feels deteriorating customer service might well affect
future sales. He has requested George, whose primary experience has been co-ordinating a
new physical distribution system, to analyse the current situation and recommend changes.
George is uncertain which factors he should consider and how to proceed with the problem.
Discuss
1. What is the main problem and what could be the causes of the problem?
2. Propose a production planning and control system to George which would minimise the
above problems
Case Study 2
a.- A company is setting up an assembly line to produce 192 units per eighthour shift. The following table identifies the work elements, items, and
immediate predecessors.
Work element
Time (seconds)
A
B
C
D
E
F
G
H
I
J
Total
Questions:
40
80
30
25
20
15
120
145
130
115
720
Immediate
predecessor(s)
None
A
D, E, F
B
B
B
A
G
H
C, I
Washing
Drying
Ironing
A
B
C
D
E
F
G
1
3
7
9
4
5
2
7
3
8
2
8
6
1
8
10
9
11
9
14
12
a) Sequence these jobs using Johnsons method and find the overall
processing time.
b) Find out the waiting time for the jobs.
c) Find out the idling times for the machines.
d) What are the conditions for using Johnsons rule?
PART C
Multiple Choice Question Set 1
1. If the order winner is delivery speed to customer, then the production
planning and control
system must focus on:
a)
b)
c)
d)
Cost
Lead time
Quality
Coordination with Marketing
2. A firm uses simple exponential smoothing to forecast demand with a = 0.2. The
forecast for the
month of March was 500 units whereas the actual demand turned out to be 460
units. What is
the forecast for the month of April?
a)
b)
c)
d)
489.6
492
480
490
one week
five years
daily
three months to 1 year
a)
b)
c)
d)
one
one
one
one
which has MRP II in full use and the closed loop is working
in which MRP system is working only in the computing department
which may have MRP, capacity planning and shop floor controls working
which uses MRP for inventory ordering but not for scheduling
Net requirements
Net requirements
Net requirements
Net requirements
13. The simulation studies on many of the lot sizing rules show:
a)
b)
c)
d)
a)
b)
c)
d)
assigning jobs to work centers without considering the work center's capacity
using Gantt chart for loading
using visual load profile for showing load
considering loading of planned orders only
when
when
when
when
21. An aluminium extruder forecasted the demand for pipe extrusions to be 500
units per month
for each of three months. The actual demands turned out to be 400, 560 and
700. The forecast
error in terms of MAD(Mean Absolute Deviation) is:
a)
b)
c)
d)
-50 units
125 units
120 units
53 units
22. Frigerware has experienced demand for ice coolers at 400 units for April, 500
units for May and
600 units for June. The forecast of demand for July using a three period model
with the most
recent period's demand weighted twice as heavily as each of the previous two
period's demand
is:
a)
b)
c)
d)
425
525
625
400
23. In the regression model for forecasting, the forecast of the period's demand F is
expressed as
F = a + bX, where:
a) F is the independent variable
b) X is the dependent variable
c) X is the independent variable
25. For short term periods of up to one year, fundamental capacity is fixed.
However, short term
adjustments of capacity are possible by:
a)
b)
c)
d)
29. Which sequencing rule will you prefer for minimising average job lateness:
a)
b)
c)
d)
30. For scheduling N jobs through two machine centers in series, you will use:
a)
b)
c)
d)
Johnson rule to decide the sequence and then schedule on a Gantt chart
McLaren's Order Moment
Groff's Algorithm
None of the above
31. If a machining center has a machine utilisation of 95% and operator efficiency of
80%, what is
the effective work centre capacity in July assuming 26 working days and 3 shifts
running each
day:
a)
b)
c)
d)
472.24 hours
472 hours
158.08 hours
59.28 hours
33. Job A and B are waiting to be released. Both will go to work center 1. Then A will
continue on
to work center 3 while B will go to work center 4. Suppose that A has high
priority on the first
work center and center 4 is backlogged and center 4 is idle. Which order should
be released
first?
a)
b)
c)
d)
Job A
Job B
Both Job A and Job B together
Toss a coin and if its heads, go for Job A otherwise Job B.
35. In an assembly line the total processing time per, unit is 380 seconds, and the
cycle time for
the line is 90 seconds. What is the minimum number of workstations required in
the assembly
line?
a)
b)
c)
d)
4 stations
4.22 stations
5 stations
4.2 stations
38. If the setup cost is Rs 10,000 per setup, annual demand is 100,000 units and
holding cost is Rs
200 per unit per year the optimal batch quantity in production should be
(rounded off):
a)
b)
a)
c)
3162
316
31623
3000
40. If D is the demand per unit of time, L is the lead time, A is the container capacity
and S the
safety stock factor, the number of Kanbans N will be :
a)
b)
c)
d)
DL(1+S)/A
A(l+S)/D
LAS(l + D)/24
(D/A) + L+S
a)
b)
c)
d)
2.
a)
Continuous production
b)
c)
Intermittent production
d)
Flexible manufacturing
3.
a)
Aggregate planning
b)
Pricing of products
c)
Capacity assessment
d)
Scheduling of operations
4.
a)
b)
The factor of the product that wins the order for the firm
c)
d)
Repeat order
5.
a)
An estimation tool
b)
c)
d)
6.
a)
High
b)
Low
c)
Nil
d)
Significant
7.
a)
b)
c)
d)
Routine decisions
8.
refrigerators
a)
Compressor
b)
c)
Refrigerators
d)
9.
a)
Positive value
b)
Negative value
c)
Zero value
d)
Infinity
10.
a)
Delphi method
b)
Historical data
c)
Econometric models
d)
11.
The most suitable method for forecasting the demand for a brand new product is
a)
Moving averages
b)
Historical data
c)
Exponential smoothening
d)
Delphi method
12.
The planning that addresses the supply side of a firm's ability to meet the demand is
known as
a)
Business plan
b)
c)
d)
13.
plan
a)
Concept of aggregation
b)
c)
d)
14.
The aggregate production planning strategy that cannot be employed in a strong union
environment is
a)
b)
c)
Subcontracting
d)
Influencing demand
15.
a)
b)
Promotional schemes
c)
Capacity adjustment
d)
Capacity augmentation
16.
a)
b)
Varying shifts
c)
d)
Subcontracting
17.
a)
Trial-and-error method
b)
Transportation method
c)
d)
Assignment method
18.
a)
b)
c)
d)
19.
a)
b)
c)
d)
20.
All of the following are time phasing requirement of an MRP logic except
a)
b)
c)
d)
21.
a)
b)
Bill of materials
c)
Engineering drawing
d)
22.
a)
b)
c)
Mini-Max approach
d)
23.
a)
Pegging
b)
Cycle counting
c)
Lot sizing
d)
Time fencing
24.
a)
Updating
b)
Cycle counting
c)
Lot Sizing
d)
Time fencing
25.
a)
b)
c)
d)
26.
a)
b)
c)
d)
27.
Operations managers are concerned with capacity for several reasons. Which of the
b)
c)
d)
28.
Which of the following is not a short term strategy for modifying capacity
a)
Inventories
b)
Employment levels
c)
Subcontracting
d)
Expansion
29.
a)
Monitoring of output
b)
c)
Assessing demand
d)
30.
a)
Increasing capacity
b)
Increasing flexibility
c)
Improving productivity
d)
Waste elimination
31.
a)
b)
c)
d)
32.
a)
b)
c)
d)
33.
Three planning premises are used in production management. Which of the following is
Make to stock
b)
Make to order
c)
Assemble to order
d)
Make subassemblies
34.
a)
Overlapping
b)
Lot sizing
c)
Operations splitting
d)
Lot splitting
35.
a)
b)
c)
d)
Subcontracting
36.
a)
Critical ratio
b)
Critical Path
c)
Random number
d)
37.
a)
b)
c)
d)
38.
a)
Multipurpose equipment
b)
c)
High investment
d)
39.
a)
b)
c)
d)
40.
a)
Precedence diagrams
b)
Cycle time
c)
Closeness matrix
d)