SET A

National Institute Of Fashion Technology

(Common Board Examination)

(End Term Exam- Session July-December, 2016)

Subject: Production and Operations Management, BFTech-V

***

Hours: 03 hours Max Marks: 100

Section A is of 30 marks and Compulsory. Do any five questions from Section B, each carrying
6 marks and Do any four questions from Section C, each carrying 10 marks.

Section A

A1. Choose the correct option (10*1)

i) ______________________ are designed so that the assembly tasks are performed in the
sequence they are designed.
a) Plant Layout b) Product Layouts c) Assembly Units d) Production Units

ii) VAM is a method to find ________________ in transportation Problem.

a) Optimal Solution b) Feasible Solution c) Initial Basic Feasible Solution d) None of the above
iii) _________ is a probabilistic technique of networking.
a) PERT b) CPM c) ICT d) None of the above
iv) ______________ is not a characteristic of most service system.
a) Product is tangible b) Production and consumption occur simultaneously
 c) Quality of output can be highly variable d) No finished goods inventory is accumulated
v) _____________________________is not a major requirement of a Linear Programming
Problem.
a) Alternative courses of action among which to decide b) An objective for the firm
c) The problem must be of maximisation type d) Resources must be limited

vi) The minimum Ratio in Simplex Tableau is neglected if it is

a. Zero b. Infinity c. Negative d. Infinity or Negative
vii) Which of the following is always a balanced Problem?
a. Transportation b. Assignment c. Travelling Salesman d. None of the above
xiii) The purpose of production planning is to
a. Minimize the work force size b.Maximize the production rate
c. Minimize the cost of meeting demand d.Optimize the inventory level
ix) Group replacement policy is most suitable for:
(a) Trucks, (b) Infant machines (c) Street light bulbs, (d) New cars.
x) The competitive strategy that focuses on the ability of the production process to adjust the
volume of output is known as
a. efficiency b.dependability c.quality d.flexibility

A 2. State true or False (10 * 1)

1. A transportation problem is said to be balanced if demand is greater than supply.

2. A linear programming problem more than 3 variables can be solved with graphical
method.
3. The time estimates for the different activities in PERT are assumed to be deterministic.
4. Johnson model is used to do the sequencing of n job through 2 machines.
5. Delphi technique is a forecasting tool.
6. Critical path is the shortest path.
7. In network construction, no two activities should have the same starting node & the same
ending node.
8. Crash Cost is alawys lower than the Normal Cost.
9. Capital is an output of conversion process.
10. TPM is a type of inventory control technique.
 Q3. Fill in the Blanks (10*1)
1. In transportation problem matrix of order 4x3, degeneracy occurs when no. Of allocations
are __________.
2. The inventory order size at which the total cost is minimum and is called ………
3. Penalty cost method is also called as ……………………
4. The time differene between two consecutive orders is called ………..
5. Dam Construction is an example for a ………………………..
6. The ratio of Output to Labour Input is ……………….
7. Gantt Chart is a …………………….given by Henry L. Gantt

8. Cutting, spreading and Fusing Room Layout will alsways be a ……………….

9. VED stands for ……..

10. EOQ ……….Cost = …………. Cost

PART B

B1. A company quarterly spends some amount on advertising. The actual sales per quarter are
also noted. Company is planning to spend 1100K for 11th quarter. Using trend line method
calculate forecasted value for 11th quarter.

Quarter Advertising (Rs. Sales (Rs.

100,000) 1,000,000)
1 4 1
2 10 4
3 15 5
4 12 4
5 8 3
6 16 4
7 5 2
8 7 1
9 9 4
10 10 2
B2. Explain ABC analysis in Inventory management with suitable examples.

B3. Write short notes on different stages in a product life cycle with respect to manufacturing
strategies and challenges of each stage in the life cycle.

B4. Distinguish between P and Q systems of inventory management.

B5. Draw and discuss the curve indicating balance of costs defining an optimal preventive
maintenance policy.

B6. Write the short note Unit production System.

Section C

C1. Maximize Z=10X1+15X2+20X3

Subject to 2X1+4X2+6X3≤ 24
3X3+9X2+6X3≤ 30
X1,X2,X3 ≥ 0
C2. The activities necessary for the completion of a software development project are listed
in the table below along with their costs and completion times in weeks.

Norma Crash Norma Crash Immediate

Activit l Time Time l Cost Cost Predecessor
y
A 4 3 2,000 2,600 -
B 2 1 2,200 2,800 A
C 3 3 500 500 A
D 8 4 2,300 2,600 A
E 6 3 900 1,200 B, D
F 3 2 3,000 4,200 C, E
G 4 2 1,400 2,000 F
(a) What is the project expected completion date?
(b) What is the total cost required for completing this project on normal time?
(c) If you wish to reduce the time required to complete this project by 1 week,
which activity should be crashed, and how much will this increase the total cost?
C 3. A dairy firm has three plants (X, Y, and Z) and four distribution centers (A, B, C and D)
located throughout a state. The production capacities and demands are given in the table below.
The capacities and demand are in million litres. The cost of shipping one million litres from each
plant to each distribution centre is given in hundreds of rupees in the table.

Distribution Centre

A B C D Capacity

Plants X 2 3 11 7 6

Y 1 0 6 1 1
Z 5 8 15 9 10
Demand 7 5 3 2

The dairy firm is interested to know the optimal transportation scheduling so that the total cost of
transportation is minimum. The Manager is approached to a consultant for this problem. The
consultant advised following shipment scheduling as given below:

Sr. Plant Distribution Quantity of milk transported

centre (in million litres)
1 X A 1
2 B 5
3 Y D 1
4 Z A 6
5 Z C 3
6 Z D 1
The cost of transportation with the above schedule is Rs. 10,200. The company is interested to
know if the cost of transportation can be further reduced. What is your opinion? Justify your
answer.

C4. A Company faces a problem of assigning four salesmen to four territories for promoting its
Sales. The following table gives the expected annual sales (in thousands of Rupees) for each
salesman if assigned to various territories.
 Territory
A B C D
1 60 50 40 30
2 40 30 20 15
Salesman 3 40 20 35 10
4 30 30 25 20
Assign Salesmen to territories to maximise the profit.

C5. Find the Sequence that minimizes the total elapsed time required to complete the following tasks
on the machines in the order 1-2-3 by Johnson Rule. Find also the minimum total elapsed time
(hours) and the idle times on the machines for a full cycle.

Task A B C D E F G
Time on

Machine 1 3 8 7 4 9 8 7

Machine 2 4 3 2 5 1 4 3

Machine 3 6 7 5 11 5 6 12