UNIVERSITY OF MALAYA EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION ACADEMIC SESSION 2013/2014: SEMESTER 2 CMGB6104: OPERATIONS MANAGEMENT JUNE 2014 INSTRUCTIONS TO CANDIDATES: Section A: Candidates must answer ail questions in this section. Section B : Candidates are required to answer any 2 questions from this section Diagramvilustration must be drawn clearly (This question papas consists of 4 quostions an 5 printed pages)CMGB6104 SECTION A 1. (a} One of Just in Time (JIT) system's requirements is to build long term relationships with few suppliers. What are the benefits and risks invotved in this approach? Use relevant examples to Support your answer. (20 marks) (b) Achieving mass customization is a challenge for many companies. Discuss (20 marks) 26CMGB6104 ‘SECTION B 2. An assembly line operates 8 hours a day with a desired output of 240 units per day. ‘The tasks of the assembly line are listed in the table below:- Activity | Task Time Immediate Predecessors a) Draw a precedence diagram of this operation (6 marks) b) Calculate the cycle time for this operation (6 marks) ‘¢) What is the theoretical minimum number of workstations? (6 marks) ) Assign tasks to workstations using the most following tasks rule (8 marks) ) Evaluate your solution, in terms of efficiency (4 marks) 353. The cCMGBE104 activities of a consultancy project that must be performed, their immediate predecessors, and estimated activity times are shown below:- Immediate ; Activity | predecessors Time (days) | ~ - I Draw the project network. (8 marks) Identify the critical path(s) by calculating early and late start days, early and late finish days and activity slack. (16 marks) What is the project completion time? Given this analysis, as a project manager, where would you focus your attention or resources? (6 marks) 4. A3 Manufacturing uses a chemical CS in its production facility. The price of CS depends on the quantity ordered. The annual demand is 50 000 Ka. It costs $30 to place an order and the annual cost of holding is 20 percent of price of C5. The price schedule for C5 is as follows:- [Order Quantity | Pricet | '0-2489 Kg $0.82 2500-5000 Kg $0.81 5001 Kg or more 30.80 ASCMGB6104 (a) Evaluate the various discount options and advise the management on the optimal quantity of CS that A3 Manufacturing should order at a time. (24 marks) (b) Calculate the total annual material cost with the optimal order quantity. (6 marks) FORI 10, 1 12. 13. 14. 15. LA: Economic Order Quantity = /2PS/, Annual Setup Cost = 25 ld Annual Holding Cost = 2 71 Average inventory level = Maximum inventory level 2 Reorder point =dx L Expected number of orders = N Length of production oycle = £ EFSES+t LS=LF-f¢ S=LS-ES or S=LF-EF Cycle time = Preduction time available per day Units required per day Minimum no. of workstations = 5 '@sHimes “ cycleime Efficiency = E task times (actual number of workstations) X (largest assigned oycle time) END 515