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EM/ YEAR/MEM575/KJP585/450

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE

INDUSTRIAL MANAGEMENT

COURSE CODE

MEM575/KJP585/450

EXAMINATION

SAMPLE EXAM (IN NEW FORMAT) USING ACTUAL

JAN 2012 EXAM QUESTIONS

TIME

3 HOURS

INSTRUCTIONS TO CANDIDATES
1.

This question paper consists of three (3) parts : PART A (7 Questions)

PART B (7 Questions)
PART C (2 Questions)

2.

Answer six (6) questions from PART A, five (5) questions from PART B and one (1)
question from PART C in the Answer Booklet. Start each answer on a new page.

3.

Do not bring any material into the examination room unless permission is given by the
invigilator.

4.

Please check to make sure that this examination pack consists of :

i)
ii)

the Question Paper

an Answer Booklet provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 8 printed pages
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PART A (Answer six (6) questions only out of the following seven (7) questions)
(Total marks = 33 (old format) vs 35 in this new format)

Question 1
List ten (10) management duties of an operations manager.

(5 marks)

Question 2
What is CAD? Give and explain four (4) advantages of its application in modern factory.
(6 marks (vs 5 marks for this new format))
Question 3
None from the last exam. But in this new format, there should be a descriptive question here,
bearing 5 marks).
Question 4
What is the main objective of Kanban, JIT and Lean Production in Operations Management?
Explain i) Kanban, ii) JIT and iii) Lean Production concepts. Give two (2) advantages of
implementing JIT and Lean Production in Operations Management.
(7 marks (vs 5 marks for this new format))

Question 5
The materials requirements planning (MRP) system depends on three major sources of
information; a master production schedule (MPS), a bill of materials file, and an inventory
status file. What is the function of each of these components in the proper running of the
system?
What is MRP II and how does it relate to MRP?
(5 marks)
Question 6
Identify three (3) categories of quality and provide a brief explanation for each category.
(5 marks)
Question 7
Define the terms maintenance and reliability. State and briefly explain three (3) reasons why
maintenance is important for the proper running of a production facility.
(5 marks)

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PART B (Answer five (5) questions only out of the following seven (7) questions)
(Total marks = 68 (old format) vs 70 in new format)

Question 1
IDEA Furniture Manufacturer has experienced the following demand for its latest designed
shoe cabinet.
Month

Units

54

59

53

68

64

63

i)

Develop an exponential smoothing forecast using = 0.2 and = 0.4.

ii)

Find and compare the accuracy of the two forecasts using Mean Absolute Deviation
(MAD).
(10 marks)

Question 2
A metal fabricator is planning to arrange the work-cell of a production line. The duration of
each activity is listed in Table Q1(d). Find the minimum number of workers that can deliver
the daily output target. It should be noted that the welding and painting activities have to be
manned by dedicated workers; they are not allowed to leave their stations to assist in other
tasks. Find the task time, number of workers (fitters, welders and painters) and the efficiency
of the production line.
Daily working time = 8 hours, daily output target = 80 pieces
(8 marks (vs 10 marks for this new format))
Table Q1(d) : Work duration
Station

Activity

Time (mins)

Cutting

Assembly

Welding

Finishing & Inspection

Painting

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Question 3
The activities needed to build a special purpose laboratory are as listed in Table Q4(b).
Table Q4(b)
Activity
A

Immediate Predecessor
-

Duration (hours)
8

B
C
D
E
F
G
H
I

A
A
B,C
A
A
F
E
E

10
5
12
13
3
6
2
11

J
K

G,H
D,I,J

15
10

As a project manager you are required to brief the project committee members on the
performance of this project. To do that, you need to do the followings:
i)

Draw a network diagram linking the activities.

ii)

Calculate the EETs (earliest event times) and LETs (latest event times) for each node
and mark it on the diagram.

iii)

Identify the critical path and determine the completion time for the project.

iv)

Explain how the project duration could be shortened.

(10 marks)

Question 4
Two of the six important concepts for an effective Total Quality Management (TQM) system
are employee involvement and Just In Time (JIT). Discuss the above statement. Explain
how TQM can lead to lower production cost.
(10 marks)

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Question 5
The management of a production plant is not satisfied with the performance of one of its
machine. As an experienced Quality Assurance personnel you have been asked by the
management to investigate this. The operator who is responsible for that machine handed
over a Statistical Process Control output data for your examination (refer Table Q5(c)). Your
investigation should provide answers to the following questions posed by the management:
i)

What is the number of samples?

ii)

What is the sample size?

iii)

What is the mean of sample 12?

iv)

What is the range of sample 3?

v)

Based on the data given by the operator, is the process in control? Explain your
answer.

vi)

Is the managements concern valid? Explain your answer if necessary. (Hint: You may
want to recalculate the given value of LCL for the Mean as it is suspiciously too low).
(10 marks)

Table Q5(c)
Mean
UCL (Upper control limit)
2.76
CL (Center line)
2.31
LCL (Lower control limit)
0.86
Sample Number
Item1
Item2
Item3
Sample 1
2.2
2.6
2.0
Sample 2
1.9
2.5
2.4
Sample 3
2.0
2.2
2.9
Sample 4
2.4
2.5
2.6
Sample 5
2.2
2.8
2.7
Sample 6
2.1
2.5
1.8
Sample 7
2.3
2.4
2.8
Sample 8
2.0
2.1
2.4
Sample 9
2.1
2.8
2.4
Sample 10
2.6
2.4
2.1
Sample 11
2.1
2.1
2.4
Sample 12
2.0
1.7
1.7

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Item4
2.1
2.7
3.1
2.8
2.0
2.3
2.4
2.2
1.9
2.3
2.5
1.8

Range
1.42
0.62
0
Mean
2.225
2.375
2.55
2.58
2.425
2.175
2.475
2.175
2.3
2.35
2.275
1.8

Range
0.6
0.8
1.1
0.4
0.8
0.7
0.5
0.4
0.9
0.5
0.4
0.3

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Question 6
The probability of an equipment break down in a manufacturing plant is known from previous
data to be as follows :
Number of breakdowns
per day
Probability

0.05

0.35

0.30

0.14

0.10

0.06

i)

Compute the expected number of breakdowns per day.

ii)

Simulate breakdowns for a 5-day period using the Monte Carlo simulation technique
and then calculate the average number of breakdowns. Use random numbers from
column 1 of the Table Q2(c) below, starting from top going downwards.
Repeat the above (ii) using random numbers from column 2 of the same table (Table
Q2(c)).
If the simulation is repeated a sufficiently large number of times, what will be the
average of the average number of breakdowns? Justify your answer.
(10 marks)
Table Q2(c): Random Number Table
5
90
45
80
77
9
37
18
37
49
59
7
98
93
25

72
17
66
54
9
19
66
65
21
95
84
45
62
67
95

85
80
20
48
67
91
30
99
2
98
14
23
21
69
1

65
58
34
28
55
75
31
30
18
14
44
73
19
78
23

35
46
78
64
59
81
33
96
10
85
55
61
57
79
52

Question 7
With the current emergence of internet and information technology (IT), it helps directly in
the growth of e-commerce. How important are the internet and IT in supporting the ecommerce? Consider your answer by discussing specific examples of OM (Operations
Management) activities on (i) E-procurement; (ii) Product design; (iii) Inventory management,
and (iv) Supply Chain Management.
(10 marks)
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PART C (Answer one (1) question only from the following two (2) questions)
(Total marks = 18 (old format) vs 40 in this new format but in the new format student
answers one (1) question only out of two (2) with total mark of 20).

Question 1
a)

MDI Automotive Company has a monthly demand for a wheel bearing of 700 units.
The item can be purchased from either AAA Manufacturing or BBB Manufacturing.
Their price lists are shown in Table Q3(a). Ordering cost is RM50, and annual holding
cost per unit is RM5.
As a Procurement Engineer you are asked to analyse the offers from both suppliers.
By showing your analyses, propose the supplier that MDI Automotive Company should
deal in getting the supply of wheel bearing. Highlight the optimal order quantity and
total annual cost of ordering, purchasing and holding the components from the
selected supplier.
(8 marks (vs. 10 marks in this new format))
Table Q3(a)
AAA Manufacturing

b)

BBB Manufacturing

Quantity

Unit Price (RM)

Quantity

Unit Price (RM)

1 - 499

16.00

1 - 399

16.10

500 - 999

15.50

400 - 799

15.60

1000+

15.00

800+

15.10

None from the last exam. But in this new format, there should be a question on
Scheduling that carries 10 marks.

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Question 2
a)

Company ABC is responsible for supplying certain product for a hotel chain in
Malaysia. The forecasted demand for the product for the next 6 months is as shown in
Table Q4(c).
Table Q4(c)
Month

Demand (units)

January

4,500

February

4,400

March

4,700

April

4,700

May

4,100

June

4,300

Further information:
Beginning inventory : 200 units
Regular wage : RM6.00/hour
Standard output : 2 units/hour for each worker
Overtime rate : RM8.00/hour
Inventory carrying cost : RM0.50/unit/month
Current workforce : 10 workers.
Average working days : 25 days/month (assume 8-hour workday)
Prepare an aggregate production plan using constant workforce and making use of overtime
when necessary. Determine the total cost of the plan. No backlog is allowed.
(10 marks (vs 15 marks in this new format))
b)

None from the last exam. But in this new format, there should be a question on
Inventory control that carries 5 marks.

END OF QUESTION PAPER

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UNACCOUNTED FOR.
c) A company has the intention to establish a production plant manufacturing rubber based
products. The current market outlets and the respective sale volume are listed in Figure
Q1(c) and Table Q1(c). Find a suitable location of the factory so that the cost of delivery
will be at minimum. If the centre of location is not ideal, explain the reasons for the
limitation of the assessment method. Suggest a better alternative and justify your
decision.
(6 marks)

Figure Q1(c) : Location of market outlets

Table Q1(c) : Sale volume in four market outlets
Market

Sales volume

Pulau Pinang

300

Kuala Lumpur

600

Kuantan

200

K. Trengganu

200

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