PPC All Solved Open Book Papers

Birla Institute of Technology & Science, Pilani
Work-Integrated Learning Programmes Division

Second Semester 2013-2014
Comprehensive Examination
(EC-3 Regular)
Course No.
: ET ZC4I2
Course Title
: PRODUCTION PLANNING & CONTROL
Nature of Exam : Open Book
Weightage
: 50% No. of Pages =
Duration
: 3 Hours 2 No. of Questions
Date of Exam
: 06/04/2014 (FN) == 4
Note:
1. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. All parts of a question should be answered consecutively. Each answer should start from a fresh page.
3. Assumptions made if any, should be stated clearly at the beginning of your answer.
A manufacturer needs to perform APP and has the following information about the
problem. The demand forecast for the next four quarters is 100000, 50000, 70000 and
60000 units respectively. It is the company's policy to plan for each period an additional
inventory of 10% of next period's forecast (consider this as an excess demand required for
current quarter). Moreover planning needs to talce into consideration that 25000 units of
inventory will be available at the beginning of period l and 40000 units must be made
available at the end of period 4. The manufacture can produce 80000 units through regular
production, 20% of regular through overtime and upto 100000 additional units can be
obtained through subcontracting. Regular production cost is Rs. 80 per unit, overtime cost
is Rs 120 per unit and cost of subcontracting is Rs. 105 per unit. It is possible to carry
over the inventory from one period to another at a cost of Rs.2 per unit per period. Use the
transportation method to model the problem. [20]
,•
The master schedule and product structure for an end item 'Z' are as shown in Table 1 and
Figure 1 respectively. Numbers in the parentheses represent quantities required and the
lead times (LT) are also given. The master file is shown in Table 2. Determine planned
order release dates and quantities for components A, B and C. [10)
z
LT=O
Table 1:
Week number
Re uirement
2 3
30
4 5
75
6 7 8
95 •
A (1)
LT= 1
Table 2: Figure l
Item Lot size rule Initial Inventory +
A Multi 100 30 B (4)
B L4L 0 LT= 2
•
C FOQ (1000) 900
C (2)
LT= I
ET ZC412 (EC-3 Regular) Second Semester 2013-2014 Page I of 2

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Birla Institute of Technology & Science, Pilani Work-Integrated
Learning Programmes Division Second Semester 2011-2012
Comprehensive Examination (EC-3 Regular)
: ET ZC412
.e;::::::; o.
;;;;;;;;;;:::;;;;::;;. ,e:::::; -::I'itle : PRODUCTION PLANNlNG & CONTROL
---,e:::;; <=>Exam : Open Book
-t:_..;.2::IL.ge : 60% No. of Pages= 2 No. of Questions= 8
--s::i.. <=> :c::a. : 3 Hours
.c:,>-:::t= Exam : 08/04/2012 (FN)
-
.....,;"I:?' -i.. :21..se follow all the Instructions to Candidates given on the cover page of the answer book.
.--h--:-:-::_-:=> -...:a.mptions made if any, should be stated clearly.at the beginning of your answer.
';
.Art Binley has decided to look at his productivity from a multifactor perspective. To do so, he determined
his labour, capital, energy and material usage and decided to use dollars as the common denominator. His total
labour-hours are now $300 per day and will increase to $308 per day. His capital and energy costs will
remain constant at $350 and
$150 per day respectively. Material costs for the 100 logs per day are $1000 and will remain the same. Because he
pays an average of $10 per hour (with fringes), Binley wants to determines proportion and percentage change in his
productivity. [5]
z_ Hospital administrator Doris Laughlin wants to staff the oncology ward using a standard 5-day work week with two
consecutive days off, but also wants to minimize the staff. However, as in most hospitals she faces an inconsistent
demand. Weekends have low usage. Doctors tend to work early in the week and patients peak on Wednesday, and
then taper off. Daily staff requirements are as given below:
Day Mon. Tue. Wed. Thur. Fri Sat. Sun.

Staff required 5 5 6 5 4 3 3
Identify the number of employees needed to match the constraint. [6]

John Kras, owner of Carolina Ignitions Manufacturing, needs to expand his capacity. He is considering three
economical locations; A; B and c.. for a new plant. The company
wishes to find the most economical location for an expected volume of 2000 units per year. Kros conducts locational
break even analysis. To do so he determines that fixed costs per year at the sites are $30000; $60000 and $110000
respectively, and variable costs are $75 per unit, $45 per unit and $25 per unit, respectively. The expected price of
each ignitions system produced is $120. Find the most economical location. [5]
Q.4. A manufacturer of roofing supplies has developed monthly forecast for a family of products. Data for six
months period January to June are presented in the table below
Month Jan. Feb. Mar. Apr. May. June.
Expected Demand 900 700 800 1200 1500 1100
Production Davs 22 18 21 21 22 20
The manufacturer has identified three possible strategies to match the demand:
(a) Maintain a constant work force throughout the 6-months period.
(b) Maintain a constant workforce at a level necessary to meet the lowest demand month and meet all demands
above this level by subcontracting.
(c) Hire and lay off workers as needed to produce exact monthly requirements.
Analyse the three strategic and choose the best strategy amongst available alternatives.
[I OJ
ET ZC412 (EC-3 Regular) Second Semester 2011-2012 Page 1 o/2

ET ZC412 (EC-3 Regular) Second Semester 2011-2012 PageZ
Speaker Kits Inc. packages high-fidelity components for mail order. Components for
the top-of the line speakers kit "Awesome (A), include 2 standard 12 inch speakers kits
(B's) and 3 speaker kits with amp-boosters (C's). ·
Each "B" consists of two speakers (D's) and 2 shipping boxes each with an installation
kit (E). Each of the three 300-watt speaker kits (C's) has 2 speaker boosters (F's) and 2
installation kits (E's). Each speaker booster (F) includes 2 speakers (D's) and 1 amp
booster (G). Construct the product structure tree and find the requirement of
components on each level of the tree to satisfy demand for a new order of 50
"Awesome" speaker kits.
[1O]
.6.£a)
When is work sampling a more appropriate work-measurement technique than time
study?
;6 (b) The time study of a work operation at a restaurant yielded an average observed time of
4.0 minutes. The analyst rated the observed worker at 85%. The firm uses allowance
factor of 13%. The restaurant wants to compute the normal time and the standard
time for this operation. [8]
Q.7 (a)
Select a company of your choice and identify their method of evaluating their
suppliers? Give details of the company and reasons for your choice.
Q.7 (b)
Discuss the role of forecasting in supply chain
Q.7 (c)
management. Describe how a forecast is monitored to
Q.7 (d)
detect bias?
Differentiate between Push and Pull systems and give your answer in a tabular format.
[8]
Precision Machining provides custom machining for its customers. The company
presently uses a first-come first-served sequencing rule for customer jobs. Because the
company wants to finish customers order faster, it is considering two other rules:
shortest processing time and earliest due date. The company thinks that these criteria are
important in choosing a sequencing rule: average flow time, average number of jobs in
the system, and average job lateness. Six jobs are received at Precision, and their
production times are estimated and delivery dates are promised to customers. Use the
three rules to set the sequence of the jobs, and evaluate the rules according to the three
criteria. [8]
Job sequence Production time (hours) Time to promised
delivery (hours)
A 2 4
B 5 18
C 3 8
D 4 4
E 6 20
F 4 24
*******
ET ZC412 (EC-3 Regular) Second Semester 2011-2012 Page2of2
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Distance Learning Program.mes Division
. Second Semester 2008-2009
Course.No. : ET ZC412
Course Title : PRODUCTION PLANNNING & CONTROL ·
..
Nature of :Open Book
Exam :60% No. of Pages · . = 2 .
Weightage
Duration
: 3 Hours o. of Questions = 10 ...
: 05/04/2009 (FN)
Date of Exam
Note:
1. .Please t'bllow alt the Instructions to Candidoles given on the cover page of the answer book. '
2. All parts of a question should be answered consecutively. Each·answer should start ftoin a fresh page. .
3. Mobile phonesand computers of any kind should.not be used inside the examinatiQn hall.
4. Use of any unfair means will result ij\ severe disciplinary action. ·
.
'I '
Q.l Develop a fishbone· chart for=."Delayed flight departures" for·an airlin oomp y. Identity
the. various caus_es:undef n'lajor,heajings.and.'draw. a neat chart to display the· e. •· : []
/. tiff,. ·. Suppose a hospitaf is consrd ri{its inventory and ordering policy for surgical tray . The hospital
!; "f{J uses 200 trays per month at a relitivel,Y constant rate. Each tray costs $8.00 regardless of the
.
.
f 4 .3 quantity ordered. The hospital has detennined that its c9sts approximately ·$48 to place an order
q and approximately 18% per year of an item's value to hold the inventory..
(a) Compute the optimal order quantity. · · ··
(b) 61.ff>pose the supplier is willing to sell .the surgical trays for $7.90 each if the hospital will
· buy 1000 trays at a time and $7.80 each if the hospitai wil1 \)uy 1600 or more at a time.
9 · Under these conditions, what is the optimal order qunaiity for the hospital?
The m y emetgency room patients data .,.;, 2008) for

[6]
metro cspital is has bcim as follows:
h Jan Feb. Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Units 328 310 355 362 375 380 408 415 417 412 429 434
ca) - us the .iu1ear ' end u e proces to, to cas the number or e ergency· mpati nts ro
eaoh,month·. · ., . . . . .. ·
(b) ·F rcllst .the patientsfo( mo th of Ja.11. and Mar. next year.. .
(c) Find theMADoff rec error. - ., · . · :. .. [6]
:!: =::==.: ::e ::\5be1!:c ; !'='.!

/' approximately 25 autos per quarter for each worker on staff. Workers r 1:v e an ay rage .of
> $1!)000$15000
\J
per quartef in wages and benefits,:and it costs $7000 to bi.re and trai new worker
to I off a viofker. Workers can be hired or laidoff at the begi1111ing of aany quarter. GM ··
expects to hav7 orkets ontaff and 20 autos in inventory at the·enofll1 µrent quarter.(\)·· Any
auto held m· mvent·orv at·theend of , uarter· incurs a h0 ld'ln!'COSt Of$ 100O.'.' ;f:fi; r ·
Quarter .. I .:·2 .. ·3 ' 4' , w >,t'i.
Aggregate:Demand · · 1000.0 12000 9000 11000
f,
(a) Construct an aggregate plan for next fo q':Jfil'lers using the chase demand ·strategy d,
compute the total cost . · · · ·. . .· · ·· · , · · · · ·· ·· .
- (b) Construct an aggregate plan for next four::qq;uters using the level demand straregy and '..
compute the total cost. · [1.]
ET ZC412 (EC-2 R gular) Page lof2

ET ZC412 (EC-l Regular) Second Semester 2008-2009 Pagel
:, the table that follo s showing the activities, predecessors and time estimates (days)
Activity Predecessor Time estimate (days)
A - 3
B A 3
C A s
D B,C 4
E C 3
F D,E 2
(a) Determine an path through the network from-node A,.;F and duration of each and indicate critical path. '
· ·. ' ·
(b) Determine the earliest and latest activity start and finish times.···
(c) Determine the slack fQreach activity. · . ... ,:<:"- .,, [5+ 3 + 2 = 10]
Q.6 Martin is working as a supervisor in a manufacturing firm. Th shop floor for which he is the
_supervisor has five machines and five numbers of jobs are to be on the machines.
Cost estimates (in dollarsJ for completing each job--machine combination are 'given in the table
.below. Assign each job to machine so that the total cost is minimized. .. · . _ +. • ·l\:r. [8]
;,-
·.-.Machines
-Job A'' B ·c : u··/E
1 5 6" ;,•4 8 3
l .6 4 9 g·· 6
3 4 ·3 ,•:. 5·.:.. .4
2""'
4.: 7 2 4 .S 3
5 . "3 6 4 s s
·Q · A·- ···:;ctiti --sci1ed requires 45 units of a produd_· ;o be availabJ·irt eek 12 of a cycle;60
·
units
.. ·. week 13 and 40 .units in week 16. There are cummtly 10 wiits of the product in stock, but the
. ·. company always'keeps 5 units in reserve·io cove ·.emergency orders•. "Each unit of the
product takes two weeks to assemble from 2 units of part B and 3 units of part C Each unit of
part B is
·made in one week from 1 unit of material D and 3 units of material E, Part C is assembled in two "
. w ks.1h: m 2 units-of component F;·Lead tirhis.1fur D, E·and F'are one, two and three weeks
respectively. Current stocks are 50 units of B, 100 of C, 40 of D, 150 .of E arid 100 of F. The
, . company keeps minimum stocks of 20 units of o;:·too of E and.50.of F. The minimum order size
. for E is 300 units, while F can only be ordered- in discrete bat.ches of I00 units. An order
placed with a subcontractor for 100 units of C is expected to arrive in week 8. Develop a
-:i,
1
timetable of . activities for the company; : ·. :. . [JO}
:,
I
Q..8 Tabulafe"tliediff re e·betw eii"producifayoii£ 4.pi:ocess layout(aileast 8 differences) [4]

I I Q.9 M"assembly statiOn is asked to process 100 circuit boards per ho . It iakes 20 minutes to
Ireceive ·V the necessary components from the previous workstation. Completed circuit boards are placed in a
rack that.: 11 hold 10 boards. The rack must be full before it is sent to the next workstation: If
the
factbry wies a safety factor of 10%, how many kanbans are needed for the circuit board
1assembly
proc.ess? · . · [2]
I
Q. erring to q $5tio 9 above, how _many kanbans woul be.nee ed in each case?
(a) Demand is increased to 200 circuit boards per hour. .
(b) The le--d time for components is increased to 30 minutes
. (c) The rack size is halved
(d) The safety factor is increased to 20% [4]
J
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I ET ZC412 (EC-2 Regular) Page2 of2
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·. Distance Learning Programmes Division·

First Semester 2008-2 09
J' 1, -- ·- -:' r,)...J ,t.... "< I '
Course Title Nature of Exam Weightage ·

J :_}
. Examination·
Comprehens1ve
.
..
Dw:ation DateofExam (EC-2 Make-up).
Course No.
: ETZC4I2 : 12/10/2008 (FN) ··-·.....-- _, •._............ - : .,,,-, -.-- ,-.·r •
:_ PRODUCTION
PLANNING &
CONTROL
: Open Book
:60% No. of Pages ·. ,.;,2· ..
: 3 Hours No. of Q estions ==7
The foUowing tasks rnµst be perfonned on an assem ly line in the sequence and tim for ch
ttsk arespecified as follows:. · [10]
Task Task time Tasks that must

(Seconds) . precede
A so -
B 40 -
C 20 A
D 45 C
E 20 C
F 25 D
G 10 E .
H 35 B,F,G
a. Draw the precedence diag;- ..

. f
b. What is the theoretical minimum number of stations required to.meet a forecast demand of
400 units per 8-hour day? . · · . _. ·
c ... _use the longest-task-time rule and balance the line in the minimum number of stations to
produce 400 units per day · ·.'·. · ·.·· · · · . ·· . ·· .· ·
d. What is the efficiency of the assembly line? ·.

· · · · ·. ·
. ;he m ager fa hotel is considering expand ng his hotel. e ow are the number of nights e
hotel.was at Jeast 95% booked during each of the la. st seven years. . .·
.
. .
.-Y-e-ar----..--1-,,-2 --.3- -4-· -·--S ---6-,-7--. ·
.. "(\ f Ni ts booked 16 21 24· 28. 32 34 39
' a) mpute theleast square regression equation that ·expresses the number of.qi ts- are_
95% booked each year as.a linear_ function of ti e. · _.··.··:: · ·
b) Compute the forecasting errors that would have resulted frOIJl the model. . . ·:
· [8]
· c) Compute the forecasts for year 8 and 9 uring this model.
.·Q.J
/ demand. An aggregate production plan
is
A manufacturing company uses overtime, inventory and subcontracting to absorb fluctuations in
devised annually and updated quarterly.·· Cost
data,· expected demand, and available capacities in units for the next-four quarters are given in the table
below. Demand must be satisfied in the period it occurs; that is, no backordering is allowed. Design
a production plan that will satisfy demand at minimum cost. Use the x method for the
same... ·
Expected Canacitv·availahle
Quarter
·Demand Rei!ular Overtime Subcontract
.1 900 1000 100 500
2 1500 1200 150 500
3 1600 1300 200 . '.
500
4 3000 1300. 200 500
i Regular production cost per unit $20
Overtime production cost per unit $25
Subcontracting costper unit $28
Inventory h9lding cost per unit per period $3
Beginning inventory 300 units [1O]
E.T Z 412.
....
:::P::::::c
l(::;JI
wili ::s::::::::d tt=portation :::
One market area includes the lower part of the Great Lakes region and the upper portion of the
Southeastern region.· More than 600,000 tons are to be shipped to eight major ct1stomer locations
\ \ · as shown in '4ble below: · (8]
Markets for Electric Utilities supplier

'
Customer Location Tons Shipped XY..Coordinat s . '·
Thee Rivers. Mich. 5,000 7,13
Fort Wayne, Ind.. 92,000 s.12
Columbus, Ohio
· Ashland, KV.
70,000
35,000
. 11,10
11,7
Kingsnort, Tenn 9.000 · 12,4
Akron,Ohio 227,000 13,11
Wheeling, W.V 16,000 14,10
Roanoke Va 153,000. 15,5
I ,C';: a) Calculate the centre of gravity, rounding distance to the nearest th.
I ±..: ·
·
b) Calculate the load distance s re card for this loca_tion, ing rectilinear distance. . ·.
v Your organization is planning to go for exp sion of th existing facilities. You have been made
the head of the planning all the financial matters. Identify the f tors th are needed to be
considere "':hile you do financial analys.is for: equipment purchasing. Please ve fu!l details of .
. Q{h the orgamzatton and the me od of analysis. · · -(8]
. f;
A manufacturer .of dishware i; considering three alternative plant sizes. Demand depends upon the
selling price of the product; costs of manufacture depend on tlie size of the.plant sel cted. Demand
is expected to be as follows. . . ' ' ' ' ' -· · '
. Demand Probabilities·
Annual Demand (in sets of Sel1in2 price/Set of Disbware
,lishware) . $60 $42
0.1 ..
$40
10,000 0.2 0.05
20,000 0.4 0.4. 0.2S
30,000 0.3 0.4 · 0.40
i%%. 40,000 ·0.1. -0 1 · 0.30
\t)
.
Anticipated operating costs for the three plarit si:zes for different 'levels of operation are:
. V. a. ria ble Ma nuf:ac tu. nng COSt/UD·lt ' .
·Level of plant operation ...
(in units of output) Plant Size
Small Medium. Large
10,(!00 $21 ·$25. $32
20,(\()0 16 14 18
30,000 19 13 12
40,uOO 26 18 14
Annual Fixed cost of operation $400,000 $420,000 $500,000
Which alternative is most attractive on the basis of annual et :earnipgs?,_-6' .•,.. . ....1,.[.;.8J.,_·----
Q.7 (a).
What are the factors you will consider wfien yo are involved in Make or Buy decisions for
certain components in your organization? [4]
Q.7
Discus the framework for managing operations? [4]
(b).
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_ ... : .·. ·· .·.

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:-;··:,:··:·.
· Distance Learning Program:n1es Division · ··· · · · .... · - -·
. . . .· .· · . · First Seta.ester 2008--2009 .· . ··: . ': ··· •. r··: ... ..
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12
Com eNo:
Course ··: PRODUCTION 'PLANNING& CONTROL ..... :'.. ·:· .:...
..·...:.
Title Weightage Duration
Nature of Exam ;.: Book
.. : Open . . . .."- .>:.-,::.
D ofExam :. 0%,-.:::.- :·-_-;\: :.':·: .::·.·.-.. ·.). : .. ofP;:1ges No.. =2
· : 3 .Hours···. .···!··." ·: );,lo. of Qu ons = 8 .
: 2.8/09/2008.(FN).. ·
Note: . . .. . :,- : .. . .· .:· ·. .(, .'.:\..;.=,:: . ·. .· :
1. Pli.ase follow all th lnstnfc,tions to Candida es.Jivon the cover age·of the. e .bo?k..
2. All parts of aquestion should be answered·corujeputively. Each answer shp_qld. .trom fresh page.
3. Leave ut one inch margin space on all foti-sjcies of the answershee·t. ·. ···.)., \ .;.;":";···: . ·
4. Mobile ehoncs and comeuters of any kind sliouid notbe used inside the exruiiinatiori.halt
j
.
Q.1 The Union S eet i robie.'Yeries: e io ,
.i own adjoining restaU(allt a,s w U as by the ase. it sts.$1:7QO_..tg set up, brew
- ;Gh=-i ,t i :and
s lls n.
'arl.d "boti:ie a hatch 7of the beer:·The annual ·cost to store the be dn·-inventory is
?-- .•.$l S - bo'!le. 'J1i d.(or the js ,18900 b.!:>ttl d: ·br wery
\.'l/I . · ·has the cap 1ty to produce 30000 bottles ua ly. . . .. · -. :.. _ . : . : . \
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·a.· ·Determine·th _<>ptimal order quantity, total ual. jny 1_1.t9ry. _cp•t .t!ie))1:1J!lber
- -: ·,;;
. .:·· ··:of beerrunirperyeanuid
production
bottles·of in inventory, how maxi!llum
thewill 1hat affec i v:enfory_
iµventory'g>sts?
· b.",-JfMiccohreweries lias only enou_g stoni:&e spa tf ,hC\l - - axi #.j .(6fJ500
e'vet .: ··::::.'
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Q.2 ,.· Sandy can sort a ?in of·}.QQ l i:s .i l:(r .i ut . -.!,!P lt·y·so <!.
\ (,
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/ factor of IO percent. Ho rp Y, *-e;n M }e r rtu:1& process?
41
t<?
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. ·.. -::tt\·:_:·.<r-r· . - - ,:r··:_;}ii\ ;;\\ti
hour. A truck amves wi .. O f.:..bJ.ru?. Y fY.-·?,. i:.: .!n: t :.. office _ es a safe
... ty '
B
:,.;_---· l . -.
:J-'
Bits and Pieces uses oyertiine. inve tory aj:14:sub n ¢:ting to absorb
fluctillt.tions :,- .·
" fa demand. An annual production ·ptan is'"devised arid updatt? q erh -.l?
pC.Cted
v\dy\llc!P. o er the ne tfotir qu ers is-600i 8 0, ? Q ,'an .1- -0f \ ,!! ej. i:Y.ely.·i \,3
\,b
... units
Th.e cap_ac1ty forr regular,
per quarter overtime production;
s tiy ly!_Su,bcontra ;.tJ.g_. tslipt
1000· Wiits
t¢fto· 500per quarter.
units aQ.d 1(,)0 .
a quarter_.... ··. · .
Regular· p oduction costs_:· $2 per unit, ..: y - costs_.' $25 per }lllit. · and · £o-M
"i subqc;mtractmg costs $30per uml Inventory._J! du;1g _costs ire $3 per umt per ·- · · .,
j:
\ period. Ther no begiruiin inve <;n , (\e efO_ f OO plan!tat will satisfy \3 -
'-
demand at m1mmum cost.. .·. .. - ....:·;. .... ,· .. :· ,· .. : . ·- [8]
.. . \-·.:·
.. ··-- . ·;.
.
Q.4 What are the different types of layouts? List.down. the diff rent. factors that you ·
will consider for selection of e best type oflayout. ;gxpJait{ h factor briefly.
.. .;. . . . . ·:.:.: . ·.,- ·: . . .[6] ·_
: i.:· -X.; . : -... .;
·. ,.. ·,:,.. .· • I'' ·',.. ·.• ,.. ,-·
Q.5 (a). Write ··the. differences betwoon manufaq ng: _organization,s· servjce
.an.d 'in fq .: .
. . :,:·. o g;niiations 'a 'tabuiar ! ·:; . . . '
Q.5_(b)... W t are,the factors you will consider when you .are inv9lved·in Make or=·s·uy
... dedsfons for certain compon ts i yop. organization? ..:. .;- ;.1 [5 + 5. = 10]
ETZC412 · -Page·1 of 2 .(f '1°)

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·.. ··- urs T\tl
.· PRODUCTIO Pi..ANNJ:Nd & CON'rn.Ot ...
·::Nature of Exam e· ..·:
. -Duration :"Ope0: k-. ·. ·::·::.... ··. .
. : Date of Exam
'.:. · · · · No.. of.Pages == 2
:_6Q ·, . •,• ·· o/ of Questions.= 7
:3 Hows ...
: 13/04,ZOOS (FN).. ·
· NQte: . . . . . . ..
: ·I. Please follow all the lnstnu:lli>ni toCandit:11,Jtu given.on the tjwcr page of the atiswc-r book.
-.2. · AU partsof a qu.esti should be answere<l co cly.Ea.ch answer should start from a fresh page,
· - · l\iiobile phones and computers or Y kindshould t bebrought inside the exattµnation hall. ·
..4. · Use of any unfair means wt11result in severe disciplinary action. · · . ·· . ,
· Q.1- ..ADevelop p flo chart for withdrawing

ls money from a bank, which does not have an.
. · · facility. se ... ·. .i ncl ud ,_ [81·
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· "'./i tailor bas ght·jo be co pl
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and due dates as shown the in"
machine is availabl Given
times
and
Tat,le Q:2 below, prioritise the jobs _by
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'' . ' .asie biy tati n is ask ·to.·p s· 1 circuit boai-ds per 1¥,ur. :tt takes 20 minutes t
t· · . r ive the· sa:ry _compo ents. from e previous wo on. · Complete4 circuit
· .·_(;\ . · v- .:_. ar ax:e placed iii a i:a,ck that_will l(l boards.-1Ae :ra,ck must be·5:111 beforc)t
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·
ho m 10 - are neede4 for e
.. :. jrcuit board assembly:process? · '
:.ha · ,Calc:µla.te t\.te numbe.r; o..,.f.. k..a. nbans n-e. eded, if:
: : · ..-.
'
bans·
' i. · Demand is increased to 200 circuit bc;>ards per hour.·
: ii. .The rack size for
The lead-time : is increased
components
is halved:· · · · to 30 mi utes.
·m .
\ .. ·
'·iv. .The safety factor is increas¢d to 20 percent.
• I
[10)
ETZC412 Pagel of2
=
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·· 1tj· toethe company_
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...
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·;·
·,,:·: :·:· f 't.;.· " ••• . ·.,i!P.<!:.:

: \ ires 45 units of a product to be avai}a le in week 12 of a cycle,
nits !n '?' 16.· ? e .are ti' 10 unitsof product : ; .
. · .-! t.: _-: always keeps 5 .units in r erve tQ covet em gency orders_. ·,·
=:_....·._. ·_:·!
Each unit of the product.takes two'wee !> e'!lbl from 2 units·of part B ¥td 3 ilSof
e.
_ u.. • , ·• ·• ' - • ·-.'.·
'. -i.
·. -- .. ·. :.l60 pariC• .Each t of part Bis mad in one\v f fre>m _1 unit ofqiatt:pal D and runits of
·. . : } . ,: :: .j c..t ---
· · :- · : . _
.·.·
·_:
erialE.:PartC is. ernb_led·intwow eks om2 umtsofcomponC?ntF. -
fr\
mes for
: v:-.I.."\ . -.-. · :. . :t' "l o. E F are one. two and ee weelcs respectively. Current stocks are 50 units of B. \00
, = .f c. 40 of D.150 of.E and 100 ofF. The·company keeps minimum sfocks of 20 units ot:
·, · 1, ·""-\ . ..' D,100 ofEand 50 of.f .. The minimum order size for Eis 309 units,:whil_e·F. can only be .
. F i!;!.J . . ordered in discrete batches of l 00 units. An- order placed wit1!, a s ntractor for 100
. _ .. :· ·· , '"- -units ofC is .;.;....;.,....A to arrive in week 8. . • .:_· ." - · · . ·· · ·: ·
.; ·.-,f "'-::-- · . . . .....
eh'-:;\ ·
, . . .. ""i""'.'""""' .
Pf'IS."'. · a. D velopthebillofmaterial/productstructureforgiven_product.
. . .
·
.
··
f
l'\:\i:,t 1 ....\ ·. : b.. Develop the Mat Requi ements lanning .(MRPJ for first two level_s · of
Qi -.; .::'·; t"h. .,,_ ?>fll .. G"l --t" v<> .components n the_b,11 of material. . . [10]
· \ . · .. - .·: Q.5 · An au omobile manufacturer is cqnsidering a change in an assembly line that should save
· ·.
.. . .money due toareduction in labour and- material cost. change involves the installation The
. o
four new robots that will automatically instul windshields. The cost of the four robots.,
// .. :· · including on d initial program !lg, is $400,00Q. Current pradice .is o
r-"- . - · .··amortize the initial cost of robo over two years on a straight-line basis. The process
Y, .·,. .. ··engineer.estimates that one full-time technician will be needed to monitor, maintain, and
! \; . .
.. . . ·.(epl'Ogram the robots on ongoing _basis. This perso will cost_approxi ly $60.000
: I::( ·. per year. Cuirently. the C:OIJ\panY es four fulHime employees on this job and they each
.. .i . make ;moot $52,000 per year. One of.these employees. i a material handler, and this
person will still be needed with .the new process. To complicate -matters, the process"..
•, ,i -engineer estimates that 1he rpbots will-;ipply the windshield sealing material in a manner
! at will.result in a savings of$0.25 per windshield ins Ued. ·How many automobiles
. .\ needed to be purchased over the. next two years to· make the new robots a:n attractive
. investment'? ·nuc to the relatively short horizon, do not coqsider the time value of money;
-... ·Gi11e neatfigur:a t Sl:Jpport yo.ur answer. · ·· [
'. · · .,ABC Press Limited publishes textboo forthe college $1Udents. Tiie demand for Hege
-6
.·tcxtb!)oks is high during the beginning of h semester and then falls down during the
. ''· . . . . :/ ·or
.
.•.. semester.·: can
The µnavailability books e a pt'!lfessor to -change ·the textbook. but
. ..•. : •i;: ..· /-: .;;.-:·: e st of storing books and their ·rap d obsolescence m t_ also _be considered. The-
, . :: . ·.,\ 9'.'. <Jerµ3nd table (fable Q6}and CO$t factors aresµown belo)V, use thetransportation meth!)d
.... .: .•
...
', Pre .Limited
. _ s :·;e>.:..·.f ;f.;.:.·\·
.._..,. /.·!,. = .·s.=").:·:_:...· ,>.:·,-;:.·:_
.· .
:. . -.\:·-. -'{\.. . . ........,.-_f-.e-b'
( - k..meetdem : · ·_ tf .: ;
the cost ofthe_production_pl '!
..._M..,.. o_
':to d ign an aggregate produ ti n plan for ABC
o_ ,..bl'--··:.._.; -··
·.: ' . t .will.. . . CCQno!Oically
.....: .· -
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AuMat-=-t ber
November-Jan ·
1
25000
i=:
. · .··TableQ6,.
·-· : · :·
t
•.
.. ;; - \ ··. :··
· · Regular capaci q: ·10009 boob ··.· · -
.. Overtime capacity per quarter. 50.00 books
: ' I .. . su tracting_capacltyper quarter. 10000 books
.. . :Regular productio.il cost: 'Rs. 20per book . ·
. ·' ..·..·...:,i 1 I
Overtime wages: Rs. 30 per book
· :· Subcontracting t Rs. 35 "°°k per
:. 1 Holding cost: .Rs.·2.0Q per book· [101
..
!
i
' / .· Q.7 Discuss th6 following with respectto your organization:
.• Role ofinfonnation technology ·
:. .•, Suppliers and their
relationship
• Quality tool_s and
management
[6]
®
Page 2. o[2
ETZC412
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Birla institute.ofTedt.nofogy
· · Distance ming Progra mes & l)Msioa·
nce;-Pilani
.
··-·.. .
!
.. .. : . · Second Semester 2007.-2008 .·

·.\i-.
· :· :
. . ., Coin[trehensive·Eninination <E :.2 Reguiar)·

. . -' .
'
CourseNo.:.. :: ETZC412
Collrse Title ··
·.· = ION_r .lNG CO ROL
Nature of Exam
Weightage-. : 60'>/o · · ..--N-o-.o_f_P_ag_es ,._==_2------..
Duration : 3 Ho\U'S No. of Questions.= 7
Date of Exam" : 30/0lf2008· (FN)
' :N!)tc! . . _,. . -
t. Please follow all the Instructic,ru toCondidates given on the cover page of the answer book. .
U ai1s of a uesnon should be answered c:onsecutivcl • Each answer should st3rt from a fresh • c.
.An.electric company believes that the amount of electricity usage· in its service area during the
s\lJJUDCr ·is related .to the average daily temperature in the region.. The following table gives the
· v«.age f daily temperature for IO days and the amount of electricity used in the region that day•
.Forecast.the electricity usage QR 11th day if forecasted high and low. temperatures are 900F and
· 840F. The average daily temperature is defined as the average of the daily high tempeµture and
daily low femperatme · · [8]
Day ·Avenge. Usag Day ·Avenge Usage

temperatllrc {000 tempenture (
(de2Fl Kwli\ ('!<F\ .. Kwh)
l 91 1S 6· 86 72
2 94 79 1 91 77
3 .95 ·81 8. ' 90 76
4 --gg n ·9 95 82
s· 8S 69 10 93 78
·or b!aii
. .Z··;
" - producti n uie req 4S units. a product to week 12 a cycle. units
0
w ee1c q and 40 Wlits in week 16; There y 1o·units of the product in stl:>ck.. but the .
l , 1· v.. . : co my always· 5 unitsarein reserve to cover cy - Each.unit" of the product.
-.,.:<. :· ·.r Ji-.· ·_-., ·takes o "!'eeks.to asscmbl fs:om 2 ts·or Bd3-units.. fpart_ Q - unit of Bis.
-·l
•· · . :·· '::> · \ 09(_ made no."': wed:from l urut of material D 3 umts of al E. Part ts assembled m tw ---··-·......
I, ·. _- \ '; \a'IJ{ fu>m 2 umts f CCJmponcnt F.· .Lead times for D. E F e., two and three wecb
1
w .·.
·.. . and
I · respectively. Current stocks 50uni of B, 100 of C. 40 of.D. so·of E and 100 ofF. The
.·. company keeps minimum stocks of
I
.1 .. .
....
20 units of D. 100 of E and 50 of F. The ininimum order sj2e · .. ' ·· foi E is 300 l,lnits, wluie f
can only be ·om in o batches -of I - ,An order. placed ·.:.
....
with .' a subcontractor for 100 :units o(cz is ciq,ec;ed·to e in weeks.. De:velop a nm.c:tabte·.or. ·· ::-
._:_
: Jfj) , .' . C ·, acti_vities for tbe C:OmP:'1JIY· .· (8) ·
.
..
m ures f sitJ;s
\
I / , .
..Q.3 . Your company is planning to built a new plant dis the van us on you
.
. .·. ill consid . (G(v details bothecompanyits product) :· . • ·. . . · ·· . [ ]
Q.4 With t}le help1 of the information given below. build a house of quality.
• A company manufactures. bicycle components such as cranks. hubs., rims etc. and it wants to
.I I ./ · expand its bpeiations by also producing haitdlebar:i. for mountain bikes. The mer
I
· req can divided !nto - parts. primary.and. ndacy requiremeq Primary
requuetnents may be aesthetics and performance. Requirements under aesthetics can
·· be reasonable aerodynamic look. nice and corrosion .resistance.
i
j . Secondary req ments u!l(ler perfQnDance canbelightweight. suength and durability•.
'1·, • Primary technical I engineering requirements for above can be material selection &14
·,
manufacturing process. Secondary requirements can be· steel. aluminum, and titanium
''
I
as mate.rials requirements. Secondary requirements under manufacturing pro<.ess can be
welding, die casting, sand casting, forging and powder metallurgy. .
Develop tbe matrix with t e following data, rest of the information you canassume. {101
ET ZC4-l'l.. (pTO)
I
1 I
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ET ZC4i2 (EC-2 REGULAR)

. . .,
SECOND SEMESTER 2007- PAGEl

2008
· Q.5 Martin is working. as.
a supervism: in ufacyuri f ·1.Ji.e s floor·for "".hich h is. . ··· ·
. ,./. · ·SUperv .h:a,s five m.achin and·five. nUm ofjobs ate to be pro Ofl the mac ines. st-.. -.
V ··estimates (in dollars) for completing each job-machine combination ·are given in the le below;
· Assign each job to machine so that the tot,al cost is minimized. . · ....·. ·. / .· .: ·1 J
/ ;p Job A
s
B - E
.3
· .. ' .
.
1
2 6
'(j
4
4
9
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3 4 J 2 5. 4
4 7 2 4 s 3
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A..6 The Wetski Water Ski Company is the world's· largest producer skis. As you might of
V suspect. water sk exhibit a highly seasonal demand pattern. .wjth .peaks during·the summer·
months and valleys during the winter months. Oiven the following costs. and quaitcdy sales . ·· ..
B forecasts, design a P.roduction plan that wt11 coonom ly meet demand:. What the cost r the
. .17---· plan? · · · ·. . UO} .
.,--x Is.i.. ;:., Iso liS:.-1,.:. J I s2 .

Inventory carrying cost $3.00 per pair of skisper
quarter Production per employee 1000
pairs of skis per q ·· Regular workforce 50
workers · · ··
Overtime capacity 50,000 pairs ofskis
··Subcontractingcapacity · 40,000 pairs ofsk.is
Cost of regular production $50 per pair of skis
·Cost of overtime produciion $75 per pair f skis
j· · · .-_:· -Costofsubcontracting · $85.peq> jr fskis: -· · ·.· ·· ... ·· ·· :·
·.·· - ···..·. Q.;:-.. A ) \o for i ·-
I
.following.
. r/. d -A,B & c.'it..rnaae\he . ,,
i -·infertnces about the Products. The sales of A depend on.the price being c lt en f und
out
ii · · · the relationsl\ip bet\yeen price and sales. For product B historic values about 1he only ,·
I. f/
I:!- . .
. were ·avai.•le. Since p uct Cwas a new one. histori':
·- ught opt on from a group.of experts. The company IS m . were n available cori."ipany. . · :_ .
,n product C Qµly for .a slv;>rt .·. . and:th
\
1. j
.. .I. !L:1:;R>dy 711-ghly '.°' gtl,e: \ ; ·/,:,L.,\i{/.c.>: . ,
.' ·
·
,·,'..
,:,i:; . .•...,
IY... \nto.\1/ c·
i j .. '-.
a. _Forecasting be cl ified into 3_ broad categories. ow_su ,
.r
. ,i · · ·,. · each of the products )Vlll fall . . ' · . · .
· ·. · b. ,.How would you evaluate the forecasting method that you suggested for Produtt A (1he
· _suggested method $ould have not have more disadv.antages as co111pared to 1he ochers)
· c. If for Product B dte demand was a coµstant series demand, suggest the.best o method .
. that can be used forecasti g. for . . . . . .
· a. Suggest the type offorecasti(!g for C that would comply withthecompany's strategy. [8]
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·- . B1rla Institute of Teclmology & Science, P;Iani
. : Dista e Learning Programmes Division
·.· · : Second SemesteF 2006-2001 · ··
:· -.... . C9mprehensive Exalllination {EC-2 Make-1,1p)
. ....· . : . .. •.,:, . .. .- ' '
CourseNo. : ETZC412 ... .

. Course.Title • Nature of AN C O 'I D J l O L . .·..··
Exarr:i Weig : . , : PROD U C T IO N
: B o o. k . . .. D ... -- - _ : _ ·. _·-
Dura Date : (>00/o .. . ·. No. oft:>ages· = 2
htage ··
ion
P LA NN I N G
. . -::3-Hours
. ... . ... , -..,...,...-----:-r.
No. of Questions.,;,, 8
of Exam . : 15/04/2007 (FN) .
N ·' . :
1. Please follow all the lnstructw.ns to Candidates given on the covet:·page of 1he answer book. · .
2. All paJ!S of a 9uestion should beanswered consecutively. ch answer should start from a freshpage.
. . .
Q.l : Ap and Fitz is a chain of clothing stores that catc::rs to hip scbooi and college
·students: lt publishes .a quarterly catalogue an<! operates a Web site. that features
provocatively attired males and females. The Website is ve'ry sivc tomaintam. and ·
·company executives are not sure if the number of hits at the site. relate to -sales; that is. ·
people may be looking at the site for the pictures rather than as potential customers:
The Web master has accumulated the following data for hi ·.per month and o ders pla ed at
the website forthe 20 months. [8]
... · . "j.. .. - .
Hits (1OOOs) Orders (100 0 s) Hits{lOOOs.) Oiders (1000.s)
34.2 8.2 . . 46.7 9.1
285 5.1 43:S 12
36.7" 9.1 52.6 10.7.·
42.3 7.5 61.8· 9.3.
25.8 6.3 37.3 3.1
S2.l 10.4 28.9 4.4
35.2 . 7.5 26.4 5.2
27.9 6.2
.4.8
39,4
44.7
6.8. ...
31.4 8.4
29.4 ,5.3 46.3 7.9
.. . . . .. · ..... ..
ta jndica if there appears bc a ..:i,::_.::·.._: k>
0
:pev lop )inear" ie;ion del for th

. ·'strong relationship_ between the websjte .ltits arid ..orders•.What would :t:>e the forecast
. ·.-r r - .ooohi :1. - .-·.::::.: <:.. /<. --_:>··.. ·.....:·· J· .. :··.."/:. ··:'· ·:: :"::.. .:·..:.-
i2'·.. : W :·wa Ski Comp yis- or d -j est, or" skis. A:sy ght ·.· ·:..·.
:. · suspect, water..'skis exhibit a· highly seasODlJl demand paftem, With ·peaks ·during the .·:'-. ·. ·. ·•. ·.. . . .
· summer mon and
valleys .during th wµifer. µ1 :.,1it ,Given·th - following costs.and:.·
. ·:· .<i erly _sales forecas - use. the tr.msport,ation:_i' e\h9d.to desi ·8: prqduclion plan t
= •.
··....
-: ··. will economically_ eet dein d. What is
:. .Quarter
. thecost of the"plan? .
.-
Sales Forecast
.
. [8]
t 50,000
·2 150,000
3 200,000
4 52,000
. .
Inventory carrying cost ' . . 'tlfi l (l.
Production per employee

· 1000 pairs of skis per quarter 2- . tJ /\ .
Regular workforce
Overtime capacity
50 workers
50,000 pa!rs f skis · f . (."
W\M VV . ·
ij,
.
·.
Subcontracting capacity Cosl 40,000 pairs of skis . ·

of regular production Cost $ 50 per pair of skis
ofovertime production Cost $ 75 per pair of skis
of subcontracting $ 85 per pair of skis
2£: ::= · 2:1:Nr:u:::::o Sal :::,
-------·--····-·-=--, ----
n -.
:.., ' . J,
·.,
. -,:.,,·. .:o--
··-·
. . .·. . : produ_ct ar. e steady;. a .t eJ Y ue. generated has. to C?ver" fixed. osts for bmldmgs,
· machines and emp1oyees·atnountmg t Rs. 63000 a month. ch umt_of the product
· f2 ·<i.(\... raw.material and other variabfe·cQsts.amoµn, ng to:R.s-. 500. · : ·.· · · ..
.. - ·41> a). ·:Does _the company make a profit, if it fixes the selling price at Rs. 1200_ a uni ?
: - . Q: '. .· b) . It
ifisthe-
suggeste!i
P.rice isthat sales
re uc might
. but be do
salc:s. n t ?a.if
unproved ge,the wouJd price
sellingthe is reduced _to
co_mpany:_still Rs. ,a
make 1000.
·
, ·1· .
profit?_. . ·
profit? ·
_.- :I. ·. ciun shop loc ted on the ou kirts of. From\ To
·.
·· ··
.·· ·· ·
· · ·:
· . ·
A
·
·
·
c) :If the price reduction raised sales 'to 150 ':IDits a mont}l., would e _compa1.1y e a
·B
[9]
· · ·. .
c
··
:
. ·Pune accepts custo"!ll orders from a number
· .of hi-tech fums in Faridabad. The machine
'\) r{).. shop consii;ts of 4 d nts A, B. C and C
! ... 45 63
27
32
46
68
{Jc 17 \ , · Th: d stan between_ the.d ts D _,. _
""'\\ . (m ft) given m Table 4.1 - · ·
The .shop has accepted oi:det:s for Table4.1 ..
Prod ct Routing, Weekly Production

production of four products Pl, . P3
Pl - A·B-C-D .· 200
·and P4. The routing ·rorpr09µction of
i>2 . A-C-D .6QO
these-. products. and the weekly ·p3
productiqn rates are,given in 'fable 4.2 B-D 400
that the products are produced in P4 B-C-D 500
batches of size 25 and that the cost ·· Table,1-.2 ··
· to transport
. '. :
one
. •
batch .: foot is
.. . one .•. ·...
$2. _[8]_
1J ·.· ·;· .· :..Q5· ' ' ·.A.... p··60-

oduction week 13requires
ispiti, inschedule and·40 45
units in ,of
units a product
-week to bear:e
16. There available in 10
currently week 12 of
tmits of"a
thecycle. ,
product
· · · . J: > ··-·in · . ·stock; but the company a,ways keeps S tµlits in reserve to cover emergency orders.'
\ l ·11·•Y· ."·· . .
·.· · .,j' ·_Each unit.of the '!'roduct tak twow:eks to·assemble from_ nits of p_art B and 3
-:part <:··.Each umt o part is de m ne week from 1 1t_ of ma al D and 3 wu!-5 of
of !ts
1 ·. · { ; ; ·::·- . matena1 E. · Part G is embled m two weeks from·2 wuts of C91llpO_nent F •. Lc.;id s
\ . ·· .. · .·: . ··-.·. .. for D, E and F ar.e orte,.tw9 and three eeks respectjve y/Curi tstocks are 50-units of
.1 .
J ,·. ·.-.·<_··
,_ ·
·:· •
.
.-·.·.·-"· :,_"·.. B,_100ofC,10of'.D."150ofE:and 00- f_F. Thec9 any eep_sttlinim'-1;111-s oc.l9;of20_
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=·• , \_.::only
·.·.. \ 'OW
; ·,
:!;;:be_ order
.·
. of_Gd. ,s·= pected'?-
\ h9-:o l_OQ umts. in dtscretc: An order p1 ed-.Wl - a_su n ctor for
oc:i
:\ Ye_. eek 8. ,- efop le - vines
i,
Q.6 . Tabulate the difference. be.tween _ product iayout and pr s layout (at ·least 10
. diff ences). [5]
Q,7 · _The·production and delivery of pizza is a 'relatively s ightfo ard process. Develop a
fishbone· diagram to identify potential defects and 9Pportunities for poor .quality in this
.process. {6}
Q.8 What are. the factors that need to be considered while you do financial analysis for
equipment purchasing? [6}
Page 2 or2
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Bir la Institute of Technology & Science, Pilani

Distance Learning Programmes Division
Comprehensive Examination (EC-2 Regular}
Course No. : ET ZC412

· Course Title : PRODUCTION PLANNING & CONTROL
Nature of :OpenBook
Exam
Weightage . :60% No. of Pages =3
Duration : 3 Hours No. of Questions = 8
DateofExam : 01/04/2007 (FN)
Note:
29. Please follow all the Instructions to Candidates gtven on the cover page of the answer book.
Q.l Assume that you are working as a software consultant in a leading software
company. After completing a recent project, you find that five more small
projects need to be completed. The following table shows the estimated work -._
times required ta co plete each project and_ the due date requested by the \
clients.
Job Work time Due date

A 12 52
B 16 37
C 8 28
D 20 57
E 6 31
Use FCFS, SPT, EDD. and Least Slack to prioritise your projects. Calculate total
completion tiine, average flow time, average number 9f jobs in the system .;m<;i average
job lateness. · ' [8]
Q.2 A. manufacturing company .uses .overtime, inventory and subcontracting to absorb

....,. fluctuations in demand An aggregate production plan is devised annually and·updated
I quarterly. Cost data, expected demand, and available capacities in units for the next four
quarters are given in the table below. Demand must be satisfied in the period it occurs;
that is, no backordering is allowed. Design a production plan that will satisfy demand at
minimum .c. ost .Use the matrix/ transportation method for the same. [8]
Expected Caoacitv available

Quarter
Demand Reeular Overtime Subcontract
1 900 1000 100 500
2 1500 1200 150 500
3 1600 1300 200 ·soo
4 3000 1300 200 500
Regular production cost per unit $20

Overtime production cost per unit $25
Subcontracting cost per uriit $28
Inventory olding cost per _unit per period $3
'l..l- -
·• r·• ........ · ,. .;. .......,.. -,-· ·..-....--- ... ---
• - --·-··-·-.............. ._,., -··---· -- .:,i..·--·-
J3eginning inventory · 300 units

Q.3 What do you understand by vertical integration? How will it affect the process decisions?
, Give an example. [4]
Q.4 What are the reasons for an organization to change its location? If a company wants to
start supplying products to a new market, does it have to open a new facility there'?
Justify your answer. [4]
C-2REGULAR SECOND SEMESTER 2006-2007 rAGE2
A project has the following activities, precedence relati mships , .and time estimates in
days:[10]
Activity hnmediate Predecessor Optimistic Most Likely Pessimistic
Activities time (t.,) time(t..,) time (t,..)
a - 6 7 8
.b a 4 4 4
C a 5 6 8
d b ..
8 10 10
e b 7- 1-0--- 15
f C 9 9 13
'
C 7 7
h d 6 4 8
i e.f 6 9 11
i j? s· 9 -10
k h,i,i 3 5 6
5.1. Compute the duration (expected time) and vari ces for each activity.
5.2. Draw a PERT network · .
5.3. Compute the EF, LF and stack for each activity. Write the values on tlie PERT
net\vork. ·
5.4. What is the critical path?
5.5.. What is the probabiHty that the project will talc longer than 38 days?.
Valtec Electronics fills orders for its electronlc C()mponents and parts by truck to
customers through several· distribution centres. -A measure ·of its supply chain
responsiveness is order fulfilment and lead time which is the number of days from when a
company receives an order tQ when it is delivered to the customer. A distribution centre
i manager has taken 20 samples of 5 orders each during the month and recorded the lead
time for each as follows. . · . [10]
I I Sample Lead timeidavs)
I I
1 1.3 2.4 0.7 3 1.8
I
:j 2 2.1 1.2. I 2.5 · 3.6
:l 3 4.2 3.3 2.6 1.5 3
I 4
5
1.6
2.6
2.1
3.0
2.8 0.9
1.4 4.6
1.5
1.9
! 6 0.8 2.7 5.8 3.7 4.5
3.1 3.6 1.4
I
7 2.6 3.5
8 3.4 6.1 l.5 2.5 2.8
I ·>·
I
l
:i ...-..-...... . . .,........... · ·.-··.- -.. .. -.- ...... ······--,-..,. -. -.,.. _-•.;,,..,..,._

9 3.1 2.5 2.2 2.9 1.8
10 2.4 4.8 5.9 3.2 4.4
11 1.9 2.7 3.4 2.2 0.4
12 6.1 4.9 2.1 3.6 -s.2
13 1.2 3.4 . 2.82.3 4.5
14 2.4 2.9 3.4 2.3 2.5
15 3.7 7 1.4 2.4 3.3
16 3.6 2.7 4.8 2 1.7
17 0.4 1.8 6.5 3.2 4.8
18 5.3 2.9 3.4 4.8 4.4
19 2.7 3.6 2.9 4.1 5.2
20 4.7 2.0 2 3.1 1.8
Construct an X chart to be. sed in conjunction with an R-chart us g 3o- Iimits for
if?-,
. is data and indicate if the process is in control.
;;
ET ZC412 (EC-2 REGULAR) SECOND SEMESTER 2006-2007 .PAGE3
The Aztec company stocks a variety of parts and materials it us.es in its· manufacturing
. processes. Recently, as demand for its finished goods has increased, management has had
difficulty managing parts inventory; they :frequently run out of some crucial parts and
seem to have an endless supply of others. In an effort to control inventory more
effectively, they would like to classify their inventory of parts according to the ABC approach.
Following is a list of selected pa;rts and the annual usage and unit V3:lue for each: · ·
Item Annual Unit cost· Item number Annual Unit cost

number· usage usage·
I 36 $350 16 60 $610
2 510 30 17 ·120 . 20
3 50. 23 18 270 15
4 300 45 19 45 so
5 18 1900 20 19 3200
( \.
6 500. 8 -, 21 9 0 3
7 710 4, 22 12 4750
8 -80 26 23 30 2710
9 344 2g: 24 24 1800
10 67 4401 25 870 ,105
11 510 2, 26 244 . 30
· 12 682 35. 27 750 15
13 95 50 28 45 110
14 10 3 29 46 160
15 820 l 30 165 25
--- ·:· .:
::... : ... --- ·: ::-·..... ·:::· :: 2
:::-: -···........ ----·
,---····---:··· -----.- .•... ..
Classify the inventory items according to the ABC approach using dollar value of annual
00
Q.8 An assembly station is asked to process 100 circuit boards per hour.·It takes 20 minutes to
receive the necessary components ftom the previous workstation. Completed circuit
boards are placed in a rack that will hold 10 hoards. The rack must be full before it is sent
to the next workstation. How many kanbans would be needed in each case? · · [8]
a. Demand is increased to 200 circuit boards per hour.

b. The lead time for components is increased to30 minutes
c. The rack size is halved
d. Thesafety factor is increased to 29%
Ir<
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.. -D ceLeanring l'rogr.unmes Division. ·
. ·. · - · :.First Semester.2006-2607 ·
-::· . ......... '.·- :'".- ... . ... . . : . ....·
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·
.:
.Compx: nsive Examhmtion .
· (EC Regular) ·
.'. : -··:_;_ .. · .··:-CQurse.l\lo. : : ETZC412
. ,' Course Title. · .. .: ERODUC110N PL:ANNING & CONTROL
-NatureofBxam · ··..: OpeqBook ·· · · ·
Weightage : · : .. : -60% · ·.·. ·'.. . . ·.. No. of Pages · ·· = 2
_. ·· · . : 3 Hours No. of Ques ons = 8
· Duration · :.
:·Datei:>f'Exam ·: 29/10/2006 . (FN)
. ;Note: . . . . .
· l. f leasefollow_ allcbelnstnu:lions to Cmulidates givea ou thecover pageof the wer book. .
· 2. All parts of a question shoo1d 1,¢ answeted com«lltively. &ch answer sho Jd start from.a ueslip.ige.
' 3. Mobilephones and computets of any tcindshould notbe b10',lght inside thecx.amkwion hall. ··
-4. Useofanyunfair means will result in severe o action.
: ' . . .
. . .
Q.t.. Draw the process flow chart for the assembly of a t peo... that each component is
fabri ted and available in stores. The'operation starts from getting the compooents from store
and. ends. wi making_
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pens. (6)
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I · · Regular workf0r&e SO workers
..... .,. ...... . n ()veytjme capacity 50,000 pairs of skis
v Subcontractingcapacity 40,000 pairs of skis · ·
e · .Cost of regular production $50 per pair of skis
n Cost of overtime production $75 per pair of skis
t ··Cost of subcontracting $85 per pair of skis
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ET ZC412 (EC-2 GOLAR) FIRSTSEMESTER lOQG-2007 PAGEZ

.. Q.S. . A, prod _ion he.d t t: e.s 4S- its ofa product t be-;vailaJ>1e in·week 12 of a yclc, 6() ... ,a. •
its
.- .-. ·. ·. · - iii w :H and 40·urnts in week J6. There are,cuirently 10 units9f thc product in t butfuc
... "'t.
·....-.' ." company always keeps 5 units in reserve to covet Cfl?.ergency bI'QCfS:. 'Each unit of the·product
·.. : ..· takes two weeks to - ;S mble from 2 units f part B an4 3 Ullits of part C. cti u1;1it_..(?f part I) -
. de in one week:from l 'unitof mafai D arid- 3. uniJ.s of.ma(erial Ii.":Part Cis·a.ssemt,kd in two
· i:e ctively. ·Current stocks are SO units

of
.weeks·from 2 _uni coropo t F. kad umcs for D•.E and.F .ire one. two and tiu-cc weeks
of
B, 100-of C, 40 ofD, 1SO of E and 100 of F. The
· ·company keeps minin-.um stocks·of20 units ofD. too ofE and SO.ofF- .n.e millim.um order size
for E is . 00 wµts. while F n only be ordered in disc:tet.c batcbc:s of 100, units. Anorder placed
·with a sub:contractor for 100 units of C is expected to arrive in week 8. Develop_ a timctabl_e of
ac ti for coµ1pmy. .. (8) ·.
A company is plannh;; on mak;ing changes to the it"'mspects one of its products. way
Experimen w e done with di.ffa-ing num o_f inspections. and figures are now.availa le t
_show how.the average number of defects varies with nu•rofpections. · · ·
iI'
f
· · ·. .
i ·I ections O l 2
i(
. 34 5· 6 7· 9 10
Y
·· .. Defects. 102 96 91 82 77 69 63 53 42 34. . 22.
.If
. · · n:ipany adopts sitt inspecti
.ofd(?ing20inspections7 . · . how· nydefects·would it expect?. What
· · ·:would
· the ffi:ct
· -{6) ·
s ,\-' : . . . . .
•
The d nd data {oc.PM Computer Services is shown in. table. wi:at will.bed for· ..
C o mputers during t he period 13 us ing Reg ression

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_ · . . - · -·.
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rce av.ailable altcrnatives manl<d hausceeastimneaWtedprtohdduct ft must select onep od, ct from
e ta sh wn in the table:
Factors
... -- '
A
.. B
Product
'c
.. UExo. ected sales eacl1 y,ear ,· '600 900 [200
,_U.mt cost oforoducC10n
, .· mt sellini? orice
$680
$760·
$900.:
.$l000
$1200
$1290 -
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x ected produc.t rtt1e (im vears)u.c ton 3
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Work-Integrated Learning Programmes
Division Second Semester 2013-2014
(EC-3 Regular)

Course Title : PRODUCTION PLANNING &
Nature of Exam CONTROL
Weightage : Open Book
Duration
No. of Pages =2
: 50% No. of Questions = 4
Date of Exam : 3 Hours
Note: : 06/04/2014 (FN)
1. Please follow all the Instructions to Candidates given on the cover page of the answer book.
A manufacturer needs to perform APP and has the following information about the
problem. The demand forecast for the next four quarters is 100000, 50000, 70000 and
60000 units respectively. It is the company's policy to plan for each period an additional
inventory of 10% of next period's forecast (consider this as an excess demand required for
current quarter). Moreover planning needs to take into consideration that 25000 units of
inventory will be available at the beginning of period 1 and 40000 units must be made
available at the end of period 4. The manufacture can produce 80000 units through regular
production, 20% of regular through overtime and upto 100000 additional units can be
obtained through subcontracting. Regular production cost is Rs. 80 per unit, overtime cost
is Rs 120 per unit and cost of subcontracting is Rs. 105 per unit. It is possible to carry
over the inventory from one period to another at a cost ofRs.2 per unit per period. Use the
transportation method to model the problem. [20]
The master schedule and product structure for an end item 'Z' are as shown in Table 1 and
Figure 1 respectively. Numbers in the parentheses represent quantities required and the
lead times (LT) are also given. The master file is shown in Table 2. Determine planned
order release dates and quantities for components A, Band C. [10]
z
LT=O
Table 1:
Week number
Requirement
1 2 3
30
4 5
75
6 7 8
95
..
A (1)
LT= 1
Table 2:
Item Lot size rule Initial Inventory
Figure 1
..
A Multi 100 30 B (4)
B L4L 0 LT=2
•
C FOQ (1000) 900
C (2)
LT= 1
ET ZC4}2 (EC:-3 Regular) Second Semester 2013-2014 Page 1 o/2

ET ZC412 (EC-3 Regular) Second Semester 2013-2014 Page2
The past data about the load on a stamping centre are as follows:
Months I May 2012 I Jun 2012 I July 2012 Aug 2012 I Sep 2012 Oct 2012 Nov 2012 I
Load (hrs) I 584 I 610 I 655 747 I 862 913 963 I
(a) Find an exponential smoothing forecast for the month of Dec 2012. Take a= 0.33.
(b) Compare the answer with 5 month moving average of forecast and weighted 3 month
moving average for Dec 2012. The weights are 0.5 for the latest month, 0.3 and 0.2
for other months respectively.
(c) Determine the best forecast technique by comparing the accuracy using MAPD.
[10]
Q.4. Differentiate between pull and push production system. Explain how pull system can be
effectively implemented in an Industry with two different types of examples. [1O]
***************
ET ZC412 (E -3 Regular) Second Semester 2013-2014 Page 2 o/2

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Course No. : ET ZC4I2

Course Title : PRODUCTION PLANNING & CONTROL
Weightage :60% No. of Pages =
Duration : 3 Hours 3 No. of Questions =
Date of Exam : 04/04/20 IO (FN) 7
Note:
1. Please follow all the lnstrnctions to Candidates given on the cover page of the answer book.
3. Mobile phones and computers of any kind should not be used inside the examination hall.
4. Use of any unfair means will result in severe disciplinary action.
Copy Courier is a fledgling copy centre in downtown Richmond run by two college students.
Currently, the equipment consists of two high-speed copiers that can be operated by one operator.
If the students work alone, it is conceivable that two shifts per day can be staffed. The students
each work 8 hours a day, 5 days a week. They do not take breaks during the day, but they do
allow themselves 30 minutes for lunch or dinner. In addition, they service the machines for about
30 minutes at the beginning of each shift. The time required to set up for each order varies by the
type of paper, use of colour, number of copies and so on. Estimates of setup time are kept with
each other. Since the machines are new, their efficiency is estimated at I 00 percent.
Due to extensive advertising and new customer incentives, orders have been pouring in. The
students need help detennining the capacity of their operation and the current load on their facility.
Use the following information to calculate the nonnal daily capacity of Copy Courier and to
project next Monday's load profile and load percent. [10]
Job No. No. of Copies Setup time (Min) Run time (Min/ Unit)
10 500 5.2 0.08
20 1000 10.6 0.10
30 5000 3.4 0.12
40 10000 11.2 0.14
50 2000 15.3 0.10
! recision Machining provides custom machining for its customers. The company presently uses a
V first-come first-served sequencing rule for customer jobs. Because the company wants to finish
· customer's job faster, it is considering two other rules: shortest processing time and earliest due
date. The company thinks that these criteria are important in choosing a sequencing rule: average
flow time, average number of jobs in the system, and average job lateness. Six jobs are received·
at Precision, and their production times are estimated and delivery dates are promised to
customers. Use the three rules to set the sequence of the jobs, and evaluate the rules according to
the three criteria [6]
Job Production time (hours) Time to promised

sequence delivery (hours)
A 2 4
B 5 18
C 3 8
D 4 4
E 6 20
F 4 24
ET ZC412 (EC-2 Regular) Second Semester 2009-2010 Page 1 o/3

ET ZC412 (EC-2 Regular) Second Semester 2009-2010 Pag..J2
Seven jobs are to be processed on machine 1 followed by machine 2. The time needed by each job
on each machine is as follows. What sequence of jobs would maximize the machine's utilization
and calculate the total make span time? (6]
Job A B C D E F G
Machine 1 4 10 20 16 8 24 18
Machine 2 28 14 6 20 10 12 12
The following table provides the details regarding the sequence of activities for assembling a part
in an automobile manufacturing company. [8)
Task Immediate Predecessor Task time (Minutes)

A - 0.9
B A 0.4
C B 0.6
D C 0.2
E C 0.3
F D,E 0.4
G F 0.7
H G 1.1
v'( ). Draw a precedence diagram.

...{b). Assuming that 55 minutes per hour are productive, compute the cycle time needed to
obtain 50 units per hour.
- Detennine the minimum number of workstations required.
(d). Assign tasks to workstations using the longest-task-time heuristic.
Agents at the security gate at the national airport are able to check passengers and process them
through the security gate at the rate of 52per hour. Passengers arrive at the gate throughout the day
at the rate of 45 per hour.
- Determine the average waiting time and waiting line.

(b). The passenger traffic arriving at the airport security gate varies significantly during the day
and flight takeoffs tend to cluster making the passenger traffic very heavy at specific times
while at other times there is little or no passenger traffic through the security gate. At the
times leading up to flight takeoffs passengers arrive at a rate of 125 per hour. Develop and
solve a waiting line system that can accommodate this increased level of passengers'
traffic. [10]
- .
f /A small cale industry produces tw p:oducts, and Xis a simple pr du t which is assembled.
z_ .
;_/ from a smgle component T (quantity IS 1). Z IS a complex product, which IS made from two Ts
and 3 nos. of a sub assembly U. The sub assembly U is assembled from two Vs and 4 Ws. The
lead time for X and Z is I day and 2 days respectively, while the lead time of Tis 3 days and U is
2 days. V and W have a lead time of 1 day respectively. An order for 200 units of X and 350
units of Z has been received for day 8. An inquiry of available stock reveals 25 units of X on
hand, 40 units of Z, 90 ofT, 120 of U, 150 ofV, and 160 of W. For economy reasons, U is never
made in quantities under I 00. Similarly, V and W· have multiple order quantities of 100 and 500
respectively.
(a). Draw the product structure
(b). Determine what orders should be released for these components to satisfy the demand of X
and Z. (Note: the plan should be made on a combined basis for all the components) [l 0)

Mountain State Electric Service is an electrical utility company serving several states in the
Rocky Mountain region. It is considering replacing some of its equipment at a generating
substation and is attempting to decide whether it should replace an older, existing PCB
transformer (PCB is a toxic chemical known formally as polychlorinated biphenyl). Even though
the PCB generator meets al current regulations, if an incident occurred such as fire, and PCB
contamination caused harm either to neighboring businesses or farms or to the environment, the
company would be liable for damages. Recent court cases have shown that simply meeting utility
regulations does not relieve a utility of liability if an incident causes harm to others. Also, courts
have been awarding large damages to individuals and business harmed by hazardous incidents.
If the utility replaces the PCB transformer, no PCB incidents will occur, and the only cost will be
that of the transformer, $85,000. Alternatively, if the company decides to keep the existing PCB
transformer, then management estimates there is a 50-50 chance of there being a high likelihood of
an incident or a low likelihood of an incident. For the case in which there is a high likelihood that
an incident will occur, there is a 0.004 probability that a fire will occur sometime during the
remaining life of the transformer and a 0.006 probability that no fire will occur. If a fire occurs,
there is a 0.20 probability that it will be bad and the utility will incur a very high cost of
approximately $90 million for the cleanup, whereas there is a 0.80 probability that the fire will be
minor and a cleanup can be accomplished at a low cost of approximately $8 million. If no fire
occurs, then no cleanup costs will occur. For the case in which there is low likelihood of an
incident occurring, there is a 0.00 I probability that a fire will occur during the life of the existing
transformer and a 0.999 probability that a fire will not occur. If a fire does occur, then the same
probabilities exist for the incidence of high and low cleanup costs, as well as the same cleanup
costs as indicated for the previous case. Similarly, if no fire occurs, there is no cleanup cost.
Perform a decision tree analysis of this problem for Mountain States Electric Service and indicate
the recommended solution. Is this the decision you believe the company should make? Explain
your reasons. [1O]
*********
ET ZC412 (EC-2 Regular) Second Semester 2009-2010 Page3 o/3

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.'Copy·Couriestudents. Currently, the equipment consists of 1wo high-speed copiers that a Oe
can be copy centre in downtown Richmond
perated by one operator. If the students work alone, it is conceivable that two shifts per
ay can be staffed. The students each work 8 hours a 'day, 5 days a week They do not l ,Jr
rL.
take breaks during lhe day, but they do allow themselves 30 minutes for lunch or dinner. (
ocS\I ,35
' 1n addition, they service the machines for about 30 minutes at the beginning of each shift.
. The time required to set up. for each order varies by the type of paper, use of colour, nurpber slG
run by two college
of copies and so on. Estimates of setup time are kept with each other. Since the l\.S H) <,
!Tiachines are new, their efficiency is estimated at l00 cent. /' j.,..:, 1 •• '
/
y"'-)
.....--4-
Due to extensive advertising and new customer incentives, orders have been pouring in. The
students need help determining the capacity of their operation and the current load on Lhdr
facility. Use the following information to calculate the normal daj)y capacity of Copy Courier
and to.t=rroject next Monday's load profiie and load percent.
· Job No. No. of Conies Setuo time (Minl Run time <Min / Umtl
10 500 5.2 0.08
20 1000 10.6 0.10
30 5000 3.4 0.12
40 ]0000 11.2 0.14
15.3
50 2000 · ·-·---· 0.10
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First Semester 2011-2012
(EC-3 Regular)

Weightage :60%
Duration No. of Pages =3
: 3 Hours No. of Questions = 9
Date of Exam : 30/10/2011 (FN)
Note:
1. Please follow all the lnstrnctions to Candidates given on the cover page of the answer book.
Quality losses due to employee performance in a fast food facility were estimated as
shown below. Complete a Pareto analysis for this data and interpret your results for
management. For the largest dollar loss, prepare a Fishbone diagram with your thoughts
on the reason for the cost. [6]
Class of loss Loss in one shift (in $)

Wrong change 50.00
Impolite to customer 45.00
Prepare too much food 150.00
Prepare wrong item 35.00
Slow service 75.00
Incorrect order taken 30.00
Other services 100.00
Q.2. Vultex Fibers produces a line of sweatclothes that exhibits a varying demand pattern.
Given the following demand forecasts, production costs and constraints, design a
production plan for Vultex using the transportation method of Linear Programming. Also,
calculate the cost of the production plan. [8]
Period Se tember October November December

Demand 100 130 200 300
Maximum regular production 100 units/month

Maximum overtime production 50 units/month
Maximum subcontracting 50 units/month
Regular production costs $10/unit
Overtime production costs $25/unit
Subcontracting costs $35/unit
Inventory holding costs $5/unit/month
Beginning inventory
0
ET ZC412 (EC-3 Regular) First Semester 2011-2012 Pagel of3

ET ZC412 (EC-3 Regular) First Semester 2011-2012 Page2
The following tasks must be performed on an assembly line in the sequence and time
for each task are specified as follows: [6]
Task Task time Tasks that must
(Seconds) precede
A 50 -
B 40 -
C 20 A
D 45. C
E 20. C
F 25 D
G 10 E
H 35 B,F,G
(a) Draw the precedence diagram
(b) What is the theoretical minimum number of stations required to meet a forecast
demand of 400 units per 8-hour day?
(c) Use the longest-task-time rule and balance the line in the minimum number of
stations to produce 400 units per day
(d) What is the efficiency of the assembly line?
Q.7. Explain the new product development process with respect to a new product that has
been developed in your organization. [6]
Q.8. Copy Courier is a fledgling copy centre in downtown Richmond run by two college
students. Currently, the equipment consists of two high-speed copiers that can be
operated by one operator. If the students work alone, it is conceivable that two shifts
per day can be staffed. The students each work 8 hours a day, 5 days a week. They do
not take breaks during the day, but they do allow themselves 30 minutes for lunch or
dinner. In addition, they service the machines for about 30 minutes at the beginning of
each shift. The time required to set up for each order varies by the type of paper, use of
colour, number of copies and so on. Estimates of setup time are kept with each other.
Since the machines are new, their efficiency is estimated at I00 percent.
Due to extensive advertising and new customer incentives, orders have been pouring
in. The students need help determining the capacity of their operation and the current
load on their facility. Use the following information to calculate the normal daily
capacity of Copy Courier and to project next Monday's load profile and load percent.
(8]
Job No. No. of Copies Setup time (Min) Run time (Min/ Unit)
10 500 5.2 0.08
20 1000 10.6 0.10
30 5000 3.4 0.12
40 10000 11.2 0.14
50 2000 15.3 0.10
Q.9. Answer the following:

(a) What do you mean by vertical integration? How will it affect the process
decisions? Give examples for each case. [3]
(b) What are the reasons for an organization to change its location? If a company
wants to start supplying products to a new market, does it have to open a new
facility there? Justify your answer. [3]
ET ZC412 (EC-3 Regular) First Semester 2011-2012 Page3 o/3

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.
Course No. : .r T ZC412
Course Title : PRODUCTION PLANi>l'ING & CONTROL
Weightage :60% No. of Pages =3
Duration : 3 Hours No. of Questions =
Date of Exam : 03/04/2011 (FN) 8
Note:
l. Please follow all thF. Instructions to Candidates given on the cover page of the answer book.
3. Assumptions made ifany, should be stated clearly at the beginning of your answer.
Q. l. Assume that you are working as a software consultant in a leading software company. After
completing a recent project, you find that five more small projects need to be completed. The
following table shows the estimated work times required to complete each project and the due date .
requested by the clients.
Job Work time Due date

A 12 52
B 16 37
C 8 28
D 20 57
E 6 31
Use FCFS, SPT, EDD and Least Slack to prioritise your projects. Calculate total completion
time, average flow time, average number of jobs in the system and average job lateriess.
[8]
Draw the process flow chart for the assembly of a ballpoint pen. Assume that each component is
fabricated and available in stores. The operation starts from getting the components from store
and ends with making a pack of 1(' p ms. [6)
Q.3. A manufacturing company uses overtime, inventory and subcontracting to absorb fluctuations in
demand. An aggregate production plan is devised annually and updated quarterly. Cost data,
expected demand, and available capacities in units for the next four quaiters are given in the table
below. Demand must be satisfied in the period it occurs; that is, no backordering is allowed. Design
a production plan that will satisfy demand at minimum cost. Use the matrix method for the same. [8]
Expected Capacitv available

Qmuter
Demand Regular Overtime Subcontract
-- l 900 1000 100 500
2 1500 1200 150 500
3 1600 1300 200 500 /
4 3000 1300 200 50()/
Regular production cost per unit , $20 :) <f5'(-
Overti \e production cost per unit

I
$25
Subcontracting cost per unit $28
Inventory holding cost per unit per period $3
Beginning inventory 300 units
ET ZC412 (EC-2 Regular) . Second Semester 2010-2ti'i

ET ZC412 (EC-2 Regular) Second Semester 2010-WJl Page2
Q.4. Mountain States Electric Service is an electrical utility company serving several states in the
Rocky Mountain region. It is considering replacing some of its equipment at a generating
substation and is attempting to decide whether it should replace an older, existing PCB
transformer (PCB is a toxic chemical known formally as polychlorinated biphenyl). Even tbugh
the PCB .generator meets al current regulations, if an incident occurred such as fire, and ?CB
contamination caused hatm either to neighboring businesses or farms or to the environment, the
company would be liable for damages. Recent court cases have shown that simply meeting utility
regulations does not relieve a utility of liability if an incident causes harm to others. Also, courts
have been awarding large damages to individuals and business harmed by hazardous incidents.
If the utility replaces the PCB transformer, no PCB incidents will occur, and the only cost will be
that of the transformer, $85,000. Alternatively, if the company decides to keep the existing PCB
transformer, then management estimates there is a 50-50 chance of there being a high likelihood
of
an incident or a low likelihood.of an incident. For the case in which there is a high likelihood that'
an incident will occur, there fs a o..004 prnbability that a fire will occur sometime during the
remaining life of the transformer and <!: 0.006 probability that no fire will occur. If a fire occurs,
there is a 0.20 probability that it wil[ be bad and the utility will incur a very high cost of
approximately $90 million for the cleanup, whereas there is a 0.80 probability that the fire will
be minor and a cleanup can be accomplished at a low cost of approximately $8 million. If no fire
occurs, then no cleanup costs will o;;ct:r. For the ·case in which there is low likelihood of an
incident occurring, ther: is a 0.001 probability that a fire will occur during the life of the existing
transformer and a 0.999 probability that a fire will not occur. If a fire does. occur, then the same
probabilities exist for the incidence of high and low cleanup costs, as well as the same cleanup
costs as indicated for the previous case. Similarly, if no 'fire occurs, there is no cleanup cost.
Perform a decision tree analysis of this problem for Mountain States Electric Service and indicate
the recommended solution. Is this the decision you believe the company should make? Explain
your reasons. [10]
Q.5. Seven jobs are to be processed on machine 1 followed by machine 2. The time needed by each job
/ on each machine is as follows. What sequence of jobs would maximize the machine's utilization
and calculate the total make span time? [6]
Job A B C D E F G
Machine I 4 10 20 16 8 24 18
Machine2 28 14 6 20 10 12 12
The monthly demand for un·its manuf;acturedb>Y the Acme Rocket Company has been as follows:
Month Units
May 100
June 80
July 110
August 115
September 105
October 110
November 125
December 120
(a) ·use the exponential smoothing method to forecast the number of units for June-January.
The initial forecast for May Wa5 105 units and a = 0.2.
(b) Calculate the absolute percentage error for each month from June through December and
also the MAD of forecast error as of the end of December.
(c) Calculate the tracking ,signal at the end of December. What can you say about the
performance of the forecasting method? [8]

_E_T_Z_C_'4_1_2_.(_E_C_-2_R ..eg,_u_la_r.,_) _;_S ec,ond Semester 2010-2011 Pai:I!!_}_
Q.7. All trucks travelling on NH 8 are required to stop at a weigh station. Trucks arrive at the weib:1
station at a rate of 120 per eight-hour day (Poisson distributed) and the station can weigh on the
averagel40 trucks per day (Poisson distributed)
(a) Determine the average number of trucks waiting, the average time spent at the weigh station
by each truck, and the average waiting time before being weighted for each truck.
(b) If the truck drivers find out they must remain at the weigh station longer than 15 minutes on
the average, they will start taking a different route or travelling at night, thus depriving the
state of taxes. The state of Rajasthan estimates it loses as $10000 in taxes per year for each
extra minute (over 15) that the trucks must remain at the weigh station. A new set of scales
would have the same service capacity at the present set of scales, and it is assumed that tl:-:e
arriving trucks would line up equally behind the two set of scales. It would cost $50000 pu
year to operate the new scales. Should the state install the new set of scales?
(c) Suppose arriving truck drivers look to see how many trucks are waiting to be weighted at the
weigh station. If they see four or more trucks in line they will pass by the station and risk
being caught and ticketed. What is the probability that a trnck will pass by the station? [8]
Q.8. What are the factors you will consider when you are involved in Make or Buy decisions for certain
components in your organization? [6]
*********
ET ZC412 (EC-2 Regular) Second Semester 2010-2011 Page3 o/3

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Division First Semester 2013-2014
Comprehensive Examina tiou

(EC-3 Regular)
Course No.
: ET ZC412
Course Title
: PRODUCTION PLANNING & CONTROL
Nature of
: Open Book
Exam : 50% No. of Pages
Weightage
Duration : 3 Hours No. of Questions=.
: 10/11/2013 (FN)
Date of Exam
Note:
1. Please follow all the Instrnctions to Candidates given on the cover page of the answer book.
2. All parts ofa question should be answered consecutively. Each answer should sta1t from a fresh page.
Show the relative positions of different matrices in the house of quality .in the QFD
process. Derive a set of at least four customer requirements as y II a a set of four /eJ.A<J-!I. 5
technical specifications to obtain logically the target matrix for design of a computer table.
[5]
@,2. An educational institutio11 is trying to decide.which internet provider to use. The

institution wants a reliable access to the internet. Data has been collected on mean c.--
/ time between failure (MTBF) and mean time to repair (MTTR) for three internet 'f' "f' 1 )
service providers. Given that the cost and speed are comparable among the three options, which
provider would you recommend? [5]
Provider MTBF MTTR
1 20 I "'!S· 2;s
2 40 4 4o-?O
3 80 6 'J :,..OA.
Six jobs in the machine shop as listed in the table below, must be machined first and then
_polished! Determine a sequence that will minimize the timerequired to process all
six jobs. Chait the schedule on a Gantt chart and estimate the make-span time. [S]
JOBS B ,.... F
A ) E
Machining time (min.) 5 7 I 2 6
Polishing time (min.) 4 3 3. s
A printing press has four machines of different vintages and they operate at
different speeds. One day, it received four job orders. The approximate times (in
minutes) required to process each job on each press are given below. Assign
jobs to·presses so that the batch of jobs can be completed as soon as possible.
(5]
Job Press 1 Press 2 Press 3 Presi;; 4

A 20 90 40 [IQ)
B Gib- 45 50 35
C \ 70 Dll 25
D 30 \45\ 70 40
ET ZC412 (EC-3 Regitlar) Firs/ Semester 2013-2014 Page 1 o/2

JY!. :A. computer software firm has experienced the following demand for its
"Personal " ' Finance" software . acka e.
Period l 2 3 .4 5 6 7 8
Demand 56 61 55 70 66 6S 72 7S ,::; -(,
. Develop an exponential smoothing forecast using a ::::: 0.40 and an adjusted
smoothing forecast using a= 0.40 and p = 0.20. Compare the accuracy of the
two forecasts using MAD and cumulative error. (10]
. A ompany produces a line of sweat clothes that xhibits a varying demand.

,:., pattetn. Given the following demand forecasts, production costs and constraints,
design a production plan for the company. Also, calculate the cost of the
production plan. (IO]
Period Se tember October November December

Demand 100 130 200 ·300
Max regular production I 00 units/mo.nth
Max overtime production 50 units/month
Max subcontracting SO units/month
Production rate per 250 units/month
worker Regular $10 per unit
production cost Overtime $25 per unit
production cost $35 per unit
Subcontracting cost $5 per unit per month
Inventory holding cost 0
Beginning inventory
Discuss main inputs and outputs of MRP and CRP processes with the help of diagrams
and list t he steps of MRP process. Also, compIete the foi IIo.wmg MRP matn·x for item X
ITEM=X LLC=l Periods
LOT SIZE = Mult 50 LT=2 1 2 3 4 5
Gross Requirements 80 30 50 50 60
Scheduled Receipts 50
Projected on hand 100
Net Requirements
Planned·Order Receipts
Planned Order Releases
[IOJ
*********
ET ZC412 (EC-3 Regular) First Semester 2013-2014 Page2of2

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Birla Institute of Te nology & Science, Pilani
...:.• 1Disfance Learning Programmes Division
Comprehensive Examination .(EC-2 Reiuiar)
Course No.
Course Title
Nature of
Exam
: A.AOC ZCl 11
: PROBABILITY & STATISTICS
;Open Book I
Weightage
Duration
;,60%
: 3- /1 j No.ofPages
No. of Questions
=2
9 ===
Hours
Da e : -01/04/2006 (AN) / .,·-···--···--'- -=-
o.fExaq1
. I
a. Please
foilow
th/
a11 the Instructions to Candidates given on cover page of the answer book.
·,,,2.. AJ.l parts -t;1f.a 9uesp m shot:!ld be aJ}S\V {{;d ponsecutiyely. Each an .er should sta,rt from a fresh page.
. . •• I .
3
Q 1 (a) Two sludents A and B can so1v a pn)'blem with probabiliti and respectively. 4 3
If thi$ problem is given to both the·.students and :they ,5olve independent y; Find ·the
probability that the problem is·solved. / . ·
Qi (b} Two.·firms V and W a.re interested to id on a buil ing job. FirmV submits a bid and
! /
·fue ·probability is '5 lli t it wHt ¢'.et e job provided fu.m 'W does not "\,i<;l. The
. 2 /
probabUity is 3that W will bid /or the job and if W bids, the probabUity that V will
·g.ef fhejob is I /2 . What is the pfobability that V will get the Job?
- , •
{3 + 3 = 6J
I'
Q, · (a)
_If 89%.ofcircu .chips. eceivla thicl_c noulftl coatjn_$. Fµ:id e proba.l?ility that atmost
Q2 {b) $ ,Cb,ips out of J-0 phips W.HJ h.ave thick el).OU_gh Coat.ip gs.
A fa¢tory is producing 1%/defective items. iOO items are chosen at random from a
i.arg lot produce-d by this factory. Using Poisson .distnlmtion fmd, the probabjlity that
2 defective items are found among iOO items. · [3 + 3 = 6]
. / .
1
.Q3. Let X bf'; a continuous landom variable with density function f(x) .defined .as
"f{x)=7x 0 -S: x < l ru1i
zero ,elsewhere. ·
i
I · p (1--< . <- 3)
.·
x·
find .(a) Distribution fu tion F(x) (b)
·.4 - - 4 (4+3=7]
I
Q 4 (a) -if the switchboard of a consultant's office"reoeives oil the average 0.5 calls per
minute according to Poisson process. Find the pr-0bability that the time between.
successive calls.arri g at the switchboard will be less than 2 minutes.
:Q 4 (b) if X is a nonnal variate with mean µ = 100 d variance cr = 25. Find .the
2
· j)rohability that X lies between 90 anq.110. (3 +3 =6]

,.:;:
(
/0
2. D frth'
JvS
- p t--SLr!J
l Z)
f 40
c_ 35
0 45'
,3 u l-i
Q.7 . A sample.of 900 ·members has a mean 3.4 ems and standard deviation 2.61 ems. Is
the samp1e from a large popwation of mean 3.5 ems. and standard deviation 2.61 ems.
at 5% level ofsi fi ance? [6]
Q.8 The weights of a calf taken at weekly intervals are given below. Fit a straight line using
the method of least squares and calculate the average rate of growth per week.
Age (X) : 1 2 3 4 5 6 .
Weight.(Y): 2.4 3.0 3.6 4.0 5.0 6.0 [10]
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Birla Instjtute of Technology & Science, Pilani

I
Distance Learning Programmes Division /
Second Semes er k006-2007 J
Comprehensive Enmiriation (EC-2 Reg ular)
I
Course No. : AAOCZClll
Course Title· : PROBABILITY
Nature of &STATISTICS
Exam : Open Book Nolof Pages =1
Weightage
Duration •
<::60% _Nf of Questions= 8
: 3 Hours
:Date of Exam : 31/03/2007
Ncte: · · · /
-1.· i>tease ronow ail the Instructions t Candidates gtven on the coverrage oftbe answer book.
2. All parts, of.a question should be answered consecutively. Each answer should start from a fresh page.
J. Mopi}e p ones nd oompu:ers of anr
kind spo d.n t-be bro glit ·rI · side the examination ball.
-4. I.}se of any unfrur means will result m $evere d1sc1plmary actton. .
Q.1 A man ger has two ass"istants. His decision is bked

on the information SUpplied .f
independently by each of them. The probability that the manager makes a mistake in his
-thinl$$ is -0. 0$. The probability tha_t each assis t gives .wrong information to the
tpanager is 0.3. As uming that the. mistakes made b;v the manager are independent of the
l
. .information given by fhe assistants, find the pr.obab,tlity that manager reaches to a wrong
· tlecision. . . / . { 6]
.Q.2 [fa c-9:ntinµoµs dom .1u-fable b.ru; fu.e probao.m1 density function
· i<x)={kx(2-x\ -O xs2.
. . 0, :e.w. ,
E.ind its mean.and variance. . - {lOJ
..
1
Q.3 A an? _B plays a J ame in which th ir ch c9 of ymmirtg are in the ratio of 3:2. Find A's
.¢ban e of winning at least three games out Qfrc1ne fiv.e $3Pl.es played. . .[7]
-Q.4 If a do variable X bas a nortnal distribupon with mean 12 and variance 16,
0) Fmd X.o wh n P(x > X-0) =0.24.
{ii) Calculate P{O x :S:12). / [3 +4 =-7}
··Q:
5 : The'-druiy consumption of mi1k -(thousand/ of gailons) in a city is stributed according to
Gamma Distribution with parameters a/= 2, P = 1. The city has·a daily stock of 3000
.g allons. What is the probability that the s/ock is insufficient on a particular day? · . :[6]
. joint probability density of two ran¢o,m
The I variables X and Y is given by
Q.6
·O<x<oo O< ,<oo
:
f( ,y)=
{e- - , -Jr
(.r+y) '
· O, e.w. .
{i) Are X and Y independent ?
(ii): Fmd P(X <Y J X < 7Y). {3 + 5 = 8)
I •
.'
C-2MA.KE-UP} SECOND SEMESTER 2006-2007 PAGE2
fi e mean \veekly sales of soap bars in a departmental store was 146.3 bars per store. After
an'adv rtistng campaign the mean weekly sales in 22 stores for a typical week increased to l
i7and sJ?.owed a standard devia ori of J 7.2. It is a s med that e data .cons!Jtute a rando
sample from a normal populatJon. Was tbe advert1smg campaign successful at 5%
level of ·gnjficance? . . f6]
"\ I
JQ7 i1;5uranc gent has claimed that the avera;e
a e of policy hold'ei-s who insure
through him 1s less th the average for all· agents wh.jch 1s 30.5 years. A random
sample·of 100 . policy·hold s mean 28.8 years and standard deviation 6.35
years. Check his claim t .
. 5% levi::I ofsi· cance. · · · . · {6J
I
:Q.8 An eriment s ndu.cted to verifJ the J w. of falling tmder gravity pressed by
S '.'" gt2 where. S i the distance· fallen at time't and g is a gravitation:al constant The •.
follinying results were o tainect
t(seconds: l 3 4 ., 5
.s (Fee!} 1.0 . 1.3 Lu 63
; - ,;-
Taking S as the -dependent varia\1e, fit a straight line to the data by the mc::thod .of) a:st
squares an constito:te a 99% .c ence interval fqr regression coefficient fJ. flOJ
To'. be..
-;)· C::lo4i Lf.
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Q.2. A regional warehousG purchases hand tools from various suppliers and then
distributes them on demand to retailers in the region. The warehouse operates five days
per week, 52 weeks per year. Only when it is open can orders be received. The following
data are estimated for 3/8 - inch hand drills with double insulation and variable speeds.
Average daily demand = 100 drills
Standard deviation of daily demand =30 drills
Lead time = 3days
Holding cost = $ 9.40/unit/year
Ordering cost = $35/order
Cycle-service level = 92%
The warehouse uses a continuous review system.
(a). What order quantity and reorder point should be used? [6]
(b). If on-hand inventory is 40 units, there is one open order for 440 drills, and
there are no backorders, should a new order be placed? [4]
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0.4. Seven jobs must be processed in two operations: A and B. All seven jobs must go
through
A and B in that sequence - A first, then 8. Determine the optimal order in which the jobs
should be sequenced through the process using these times: [8]
Job Process A time Processes B time

1 9 6
2 8 5
3 7 7
4 6 3
5 1 2
6 2 6
7 4 7
1 l+ _]
l S:l b 1 ------
[J b \ 7l \ J
01 £ t .+'
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supervisor has five machines and five numbers of jobs are to be processed on the
machines. Cost
estimates (in dollars) for completing each job-machine combination are given in the table
below.
Assign each job to machine so that the total cost is minimized. [8]
Machines
Job A B C D E
1 5 6 4 8 3
2 6 4 9 8 6
3 4 3 2 5 4
4 7 2 4 5 3
5 3 6 4 5 5
j · i3 C
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Q.1 Assume that you are working as a software consultant in a leading software
company.
After completing a recent project, you find that five more small projects need to be
completed. The following table shows the estimated work times required to complete
each project and the due date requested by the clients.
JOB WORK TIME DUE DATE

A 12 52
B 16 37
C 8 28
D 20 57
E 6 31
Use FCFS, SPT, EDD and Least Slack to prioritise your projects. Calculate total
completion time, average flow time, average number of jobs in the system and average
job lateness. [8]
· FcF-5
l)w
f'n'i s
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b lj c.?JJ = 2-
Work-integrated Learning Progrnmmes Division
Second Semester 2!)13-2014
Mid-Semester Test
(EC-2 Regular)
Course No. : ET
ZC412
Nature of CONTROL
L
No. of Pages =2
Exam :: 35%
Closed Book
Weightage : 16/02/2014 (FN)
Date of
Exam
Duration :2
Hours No. of Questions= 3
Note:
I. Please follow all the Instructions to Candidates given on the cover page of the answer book.
Q.1. An automobile company. is evaluating the prospect,of developing fuel cells for cars. As
an alternative to financing the research and development by itself, the firm is considering
joining with an engineering firm. Depending upon the success of the R&D, the
automobile company estimates its 10 year, present value profit (crores) as shown in
following Table.
Highly Moderately Not

Successful Successful Successful
D = Develop on own 300 40 -60
J = Joint venture 200 30 -20
Probability 0.2 0.4 0.4
On the basis of feasibility studies and consultations with development and marketing
groups, the operations vice-president has assigned subjective probabilities of P 1=0.2,
P2=0.4 and P3=0.4.
(i) Which alternative should be selected based upon the criteria of (a) maximax, (b)
maximin, (c) Laplace, and (d) expected monetary value?
(ii) Depict the problem in the fonn of a decision tree and determine the decision. [1O]
Q.2. In a railway marshalling yard, goods train arrives at a rate of 30 trains per day. Assuming
that interarraival time follows an exponential distribution and the service time
distribution is also exponential with an average of 36 minutes. Calculate the following
(a) The mean queue size.

(b) The probability that queue size exceeds 10.
(c) lfthe input of the train increases to an average 33 per day, what ,viii be the change
in(a)and(b)? [10]
Q.3 (a) What do you mean by quality function deployment? Draw the generic representation
of the house of quality. · [5]
Q.3 (b) Define two major categories of quality cost and how they relate to each other? [5]
ET ZC412 (EC-2 Regular) Second Semester 2013-2014 Page I of2

Q.3 (c) Using the information in the foilowing grid, determine whether the department
locations shown are appropriate. If not, modify the arrangement so that the conditions
are satisfied. [5]
Department 1
Department 2
Department 3
:;;;l:b/P- ??
Department 4
Department 5
14 (!!
Department 6
k rE.55
/Tvr.R
1-:: tm J?t:77'
Department 7
Department 8
o; oA°?J
X :::.. Tl d-/ 7ef?ZU1re1_
(.,{ -:: U>1. r
*********
ET ZC412 (EC-2 Regular) Second Semester 2013- Page2 of2

2014
MIDSEM Test (Regular) - Key
£CJ2. (f<e ) - I<'

DJ [;J' [2=.l [2J
(D (i) i- MS /VIO-;< I YYI <1-A tmxiM.vY\ lG.._µ.eo.UL EMV
1
:::D 300
4-0 -60 70 @
:So -2.0
2.00
44
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( A\J . Y\,O • Ob o.u.,E=Qwut;n..2,) 1-.f I - o .7.5
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[4]
=
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Operating
requirements
[2]+[q
0 00
Customer RelationshipCompetitive
requirements trlxassessment
,,
[2.J
© Target values
1T ( % po(:;,7J'\
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f 01/1 -d'
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E.T ZC412 (EC-2 Regular) Second Semester 2013-2014 Page2
Q.3 (c) Using the information in the following grid, determine whether the department
locations shown are appropriate. If not, modify the arrangement so that the conditions
are satisfied. [5]
Department 1
Department 2
Department 3
Department 4
Department 5
Department 6
Department 7
Department 8
*********
ET ZC412 (EC-2_ Regular) Second Semester 2013-2014 Page 2 o/2

3(c)
Department 1
Department 2
Department 3
I -5- 4-
1/ 1
Department 4
2-8-.+
I-7 2-7 Department 5
I l
Department 6 6 2..
Department 7
Department S [05 marks]
A-}- l-3 J 3-5, 4--s, 1-8,, 3.-<i!>,, 4-S_., 5-8., 6-8.., g_E,.> 5-'=t-.J 2.-':f
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···--«·
Division Second Semester 2011-2012
Mid-Semester Test (EC-2 Regular)

Weightage : Closed Book
Duration No. of Pages =
:30% 1 No. of Questions =
DateofExam
: 2 Hours 6
Note: : 12/02/2012 (FN)
I. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. Assumptions made if any,.. should be stated clearly at the beginning. of your answer..
Q.1. A bottling hall has three distinct parts:

• Two bottling machines each with a maximum throughput of 100 litres a minute, and average
maintenance of one hour a day;
• Three labelling machines each with a maximum throughput of 3000 bottles an hour, and
planned stoppages averaging 30 minutes a day;
• A packing area with a maximmn throughput of 10,000 cases a day.
The hall is set to fill litre bottles and put them in cases of 12 bottles during a 12-hour working
day.
(a). What is the designed capacity of the hall?
(b). What is the effective capacity of the hall?
(c). If the bottling hall works at its effective capacity, what is the utilization of each operation?
(d). If the line develops a fault which reduces output to 70,000 bottles, what is the efficiency
of the operation? [6]
Q.2. Identify some reasons for diseconornies of scale occurring in an organization of your choice.
Explain each reason. [4J
Q.3. With the help of a neat sketch outline the product design process. [4]
Q.4 (a). Define the following:

i. Corporate mission ii. EVPI
iii. Minimax regret criterion iv. Operations strategy
Q.4 (b). With the help of an example differentiate between simplification and standardization [6]
Q.5. A simple process consists of six areas of equal size to be fitted into a rectangular building. Data
collected from process charts and observation gives the following table of expected movements
between areas.
To
A B C D E F
A -- 30 10 0 12 0
B 0 -- 10 40 5 0
From C 0 5 -- 60 0 20
D 0 10 15 -- 0 10
E 60 20 0 0 -- 10
F 0 0 30 5 10 --
Draw a block diagram of a good layout for the process in a 3 X 2 matrix. [4]
Q.6 (a). Briefly describe the dimensions of quality, for which a customer/ consumer looks in a product.
Q.6 (b). Differentiate internal and external failure costs.
Q.6 (c). How are reliability and maintainability related? [61
********
Birla Institute of Technology & Science, Pilani Distance Learning
Programmes Division
Firs-t Semester 2011-2012 Mid-Semester Test
(EC-2 Main) Solution
: ET ZC412
Course No. Course : PRODUCTION PLANNING & CONTROL
Title Nature of Exam : Closed Book
Weightage Duration :30%
Date of Exam : 2 Hours
1. A bottling hall has three distinct parts:
• Two bottling machines each with a maximum throughput of 100 litres a minute, and average maintenance of
one hour a day;
• Three labelling machines each with a maximum throughput of 3000 bottles an hour, and planned stoppages
averaging 30 minutes a day;
• A packing area with a maximum throughput of 10,000 cases a day.
The hall is set to fill litre bottles and put them in cases of 12 bottles during a 12-hour working day.
a. What is the designed capacity of the hall?
b. What is the effective capacity of the hall?
c. If the bottling hall works at its effective capacity, what is the utilization of
each operation?
d. If the line develops a fault which reduces output to 70,000 bottles, what is the efficiency of the operation? [6-
M}
Bottling Labelling Packing
2 machines 3 Machines 1 area
100 lit/ mins 3000 bottles/ hr 10,000 cases/ day
1hr / day maintenance 30 min / day stoppages
a. Design capacities of each stage are:
Bottling = 2 * 100 lit/ min= 200 lit/ min= 200 * 12 * 60 = 144,000 bottles/ day
Labelling= 3 * 3000 bottles I hr= 9000 bottles/ hr= 9000 * 12 = 108,000 bottles/day
Packing= 10,000 cases I day= 10,000 * 12 = 120,000 bottles/ day
Hence design capacity of the hall= 108,000 bottles/ day
b. Effective capacities of each stage are

Bottling = l hour/ day maintenance= 144,000 * 11 / 12 = 132,000 bottles/ day
Labelling= 30 mins / day stoppage = 108,000 * 11.5 / 12 = 103,500 bottles/day
Packing= 10,000 cases/ day= 10,000 * 12 = 120,000 bottles/ day
Hence effective capacity of the hall= 103,500 bottles/ day
c. Utilization at effective capacity= 103,500 bottles/ day

Bottling= (103,500 / 144,000) * 100 = 71.9%
Labelling= (103,500 / 108,000) * 100 = 95.8%
Packing= (103,500 / 120,000) * 100 = 86.3%
d. Efficiency, if actual output= 70,000 bottles per day Bottling= (70,000 / 132,000)
* 100 = 53.0% Labelling= (70,000 / 103,500) * 100 = 67.6%
Packing= (70,000 / 120,000) * 100 = 58.3%
2. Identify some reasons for diseconomies of scale occurring in an organization of
your choice. Explain each reason. {4M]
Economies of scale do not continue indefinitely. Above a certain level of output,
diseconomies of scale take over. Overtaxed machines and material handling
equipment tend to break down, service time slows, quality suffers requiring more
rework, labor costs increase with overtime, and coordination and management
activities become difficult. In addition, if customer preferences suddenly change,
high volume production can leave a firm with unusable inventory and excess
capacity. Factors like Distribution, Bureaucracy, Confusion and Vulnerability cause
this to escalate.
3. With the help of a neat sketch outline the product design {4M]
process. Text book page no. 153.
4. (a) Define the following:
i. Corporate mission ii) EVPJ
iii. Minimax regret criterion iv) operations strategy
Check the book for
definations
(b) With the help of an example differentiate between simplification
and standardization {6M]
Simplification reduces the number of parts, assemblies or options in a product. And
standardization is when we use commonly available and interchangeable parts.
5. A simple process consists of six areas of equal size to be fitted into a rectangular
building. Data collected from process charts and observation gives the following
table of expected movements between areas. Draw a block diagram of a good
layout for the process in a 3 X 2 matrix. [4M]
To
A B C D E F
A - 30 10 0 12 0
B 0 - 10 40 5 0
From C 0 5 - 60 0 20
D 0 10 15 -- 0 10
E 60 20 0 0 -- JO
F 0 0 30 5 10 --
Convert the matrix into one sided matrix
A B C D E F
A -- 30 10 0- 72 0
B -- 15 50 25 0
From C -- 75 0 50
D -- 0 15
E -- 20
F --
Rank the l1"nks· m descend"mg order:
Rank 1 2 3 4 5 6 7 8 9 10
Link C-D A-E B-D C-F A-B B-E E-F B-C D-F A-C
Value 75 72 50 50 30 25 20 15 15 10
Draw the matrix
F B A
C D E
6. (a.) Briefly describe the dimensions of quality, for which a customer/ consumer looks
in a product.
a. Performance
b. Features
c. Reliability
d. Conformance
e. Durability
f Serviceability
g. Aesthetics
h. Safety
i. Perceptions
(b) Differentiate internal and external failure costs.
Cost of Poor Quality can be segregated into
a. Internal failure costs
i. include scrap, rework, process failure, downtime, and price reductions
b. External failure costs
i. include complaints, returns, warranty claims, liability, and lost sales
(c) How are reliability and maintainability related? [6M)
Reliability is the probability that a given part or product will perform its intended
function for a specified length of time under normal conditions of use.
Maintainability refers to the ease and/or cost with which a product is maintained
or repaired. Maintainability and reliability are closely related. For example, if a
product is cheap to manufacture and priced so low that customers throw it away
when it fails (such as calculators, telephones, and watches), maintainability may
be a moot issue. Similarly, if a product is so reliable that it rarely breaks down,.
then ease of repair many not be important. On the other hand, it may be less
costly to make a product easy to maintain than to increase its reliability. And for
some products, both reliability and maintainability are very important (e.g., office
machines, computers).
**********************************
Second- SemeS"ter 2011-2012
End-Semester Test
(EC-3 Main)
Solutions
Course Title : PRODUCTION PLANNING & CONTROL 0
/1
Nature of Exam
(_J
: Cl sed Book _.,. I rJ,/t!t6•
Weightage : 60 Yo ar v--:· L IA cl)II
Duration : 3 Hours 5 {A . J(}IZ, PV
Date of Exam : c;· /4 /µ) / 4 c;IJ/rfu;
Q 1. Art Binley has decided to look at his productivity from a multifactor perspective. To do so, he
determined his labour, capital, energy and material usage and decided to use dollars as the
common denominator. His total labour-hours are now $300 per day and will increase to $308
per day. His capital and energy costs will remain constant at $350 and $150 per day respectively.
Material costs/or the 100 logs per day are $1000 and will remain the same. Because he pays an
average of $10 per hour (with fringes), Binley wants to determines proportion and percentage
change in his productivity. [SM]
Current System :
Labor: $300; Material: 100 logs/day = 1000; Capital= 350; Energy: 150,
Total Cost : 1800
Multifactor productivity of the current system islOO crates/1800 = .0555 crates/dollar
System with professional buyer:
Labor: $308;Material: 100 logs/day = lOOO;;Capital = 350;Energy:
150; Total Cost : 1808
Multifactor productivity of the proposed system islOO crates/1808 = .055309 crates/dollar
Using current productivity as base, that is 0.0553/0.0555= 0.9954 proportion or a 0.36%
decrease.
Q 2. Hospital administrator Doris Laughlin wants to staff the oncology ward using a standard 5-day
work week with two consecutive days off. but also wants to minimize the staff. However, as in
most hospitals she faces an inconsistent demand. Weekends have low usage. Doctors tend to
work early in the week and patients peak on Wednesday, and then taper off. Daily staff
requirements are as given below:
--- - -
Day Mon. Tue. Wed Thur. Fri Sat Su n.
Staff required 5 5 6 5 4 3 3
Identify the number of employees needed to match the constraint. [6M]
• Identify the 2 consecutive days that have the lowest total requirement and circle those assign
these two days off to the first employee. In this case the first employee has Saturday and Sunday
off.
• In the case of a tie choose the days with the lowest adjacent requirements. If there are more than
one, make an arbitrary decision.
• We now have an employee working each of the uncircled days; therefore make a new row for the
next employee by subtracting 1 from the first row. Except for the circled days, and any day that
has a zero.
• In the new row. Identify the 2 consecutive days that have the lowest total requirements and circle
them. Assign the next employee to the remaining days.
• Repeat the process until aII staffing requirements are met.
Employee Mon Tue Wed Thurs Fri Sat Sun
Requirement 5 5 6 5 4 3 3
1 5 5 6 5 4 3 3
2 4 4 5 4 3 J 3
3 3 3 4 3 2 J. 3
4 2 2 3 1 i 3 2
5 ! ! 2 2 2 2 1
6 1 1 1 1 1 ! Q
7 1
Doris needs six full time employees to meet the staffing needs and one employee to work
Saturday. Notice that capacity (number of employees) equal requirements provided an
employee works overtime on Saturday, or a part time employee is hired for Saturday.
Q 3. John Kros, owner of Carolina Ignitions Manufacturing, needs to expand his capacity. He is
considering three economical locations; A; B and C- for a new plant. The company wishes to
find the most economical location for an expected volume of 2000 units per year. Kros conducts
locational break even analysis. To do so he determines that fixed costs per year at the sites are
$30000; $60000 and $110000 respectively, and variable costs are $75 per unit, $45 per unit and
$25 per unit, respectively. The expected price of each ignitions system produced is $120. Find
the most economical location. [SM]
Approach: Kros conducts locational break-even analysis. To do so, he determines that fixed
costs per year at the sites are $30,000 and $60,000 and $110,000 respectively; and variable
costs are $75 per unit, $45 per unit, and $25 per unit respectively. The expected selling price
of each ignition system produced in $120.
Solution: For each of the three locations. Kros can plot the fixed costs and the total cost at
the expected volume of output. These lines have been plotted
For akron: Total cost= $30000+75(2000) = $180000
For Bowling Green: 60000+45(2000) = $150000
For chicage: 110000+25[2000] = $160000
With an expected volume of 2000 units per year . bowling green provides the lowest cost
location, The expected profit is Total revenue - total cost = $l 20[2000]-$150000 = $90000 per
year
The crossover point for Akron and Bowling green are 30000+75x = 60000+45x
30x = 30000 X = 1000
You need to draw the graph here
And the cross over point for bowling green and Chicago is 60000+45x = l 10000+25x
20x = 50000
x= 2500
Q 4. A manufacturer of roofing supplies has developed monthly forecast for a family of products.
Data for six months period January to June are presented in the table below
Month Jan. Feb. Mar. Apr. May. June.
Expected Demand 900 700 800 1200 1500 1100
Producti01r Days 22 18 21 21 22 20
The manufacturer has identified three possible strategies to match the demand:
a. Maintain a constant workforce throughout the 6-months period.
b. Maintain a constant workforce at a level necessary to meet the lowest demand month
and meet all demands above this level by subcontracting.
c. Hire and lay of/workers as needed to produce exact monthly requirements.flOM}
Month Jan. Feb. Mar. Apr. May. June. Total
Expeded Demand 900 700 800 1200 1500 1100 6200
Production Days 22 18 21 21 22 20 124
d.
Average Requirement = 6200/124= 50 units per day
Month Production at 50 Demand Forecast Inventory Cumm.Inv.
units/per day
Jan 1100 900 200 200
Feb 900 700 200 400
March 1050 800 250 650
Apr. 1050 1200 -150 500
May 1100 1500 -400 100
June 1000 1100 -100 0
Total 1850
Assuming the inventory carrying costs to be XI units the total amount shall be 1850X
Lets assume that to manufacture 50 units per day you need 10 workers.
So the total labour costs shall be= 124*10* labour cost per hour
Total costs= 1850X+1240*labour cost/hr
The minimum demand per day is for the month of March 800/21 =38 units
To produce 38 units you shall need 7.6 workers (10*38/50)
Hence total production shall be 38*124(production days) =4712 rest shall be met by subcontracting. The
subcontracting amount shall be 6200-4712 = 1488 units
There shall not be any inventory in this case.
Hence total costs shall be= 124*7.6*labour cost/her+1488*subcontracting costs
Beginning we have 10 workers from previous period:
Month Demand Forecast Daily Change in Change in

Production rate Increasing Reducing
production production
Jan 900 41 (900/22)
Feb 700 39 2
March 800 38 1
Apr. 1200 57 19
May 1500 68 11
June 1100 55 13
Total 30 16
The average number of workers needed shall remain the same as 10.
The changes in production costs are needed to be considered, along with the hiring and filing costs and on
the basis of that we may be able to take the actual decision for the most appropriate strategy.
Q 5. Speaker Kits Inc. Packages high-fidelity components/or mail order. Components/or the top-of
the line speakers kit "Awesome (A), include 2 standard 12 inch speakers kits (B's) and 3 speaker
kits wlth amp boosters (C'sJ
Each "B" consists of two speakers (D's) and 2 shipping boxes each with an installation kit
(E). Each of the three 300-watt speaker kits (C's) has 2 speaker boosters (F's) and 2 installation
kits (E's). Each speaker booster (F) includes 2 speakers (D's) and 1 amp-booster (G). Construct
the product structure tree and find the requirement of components on each level the tree for
the
demand for a new order of 50 "Awesome" speaker kits. fl OM]
0
Once the product structure is developed, we can determine the no. of units each item required
to satisfy demand for a new order of 50 awesome speaker kits.
PartB = 2 *no.of A= 2*50 = 100
Part C = 3* no.of A = 3*50 = 150
Part D = 2*no.of B's+2*no.ofF's = 2*100+2*300 =
800 Part E = 2*no.ofB + 2*No.ofC 's = 2*100+2*150
= 500 Part F = 2*no.of C's= 2*150 =300
Part G = 1*no.of F's= 1*300 = 300
Q 6. (a) When is work sampling a more appropriate work-measurement technique than time study?
(b) The time study of a work operation at a restaurant yielded an average observed time of 4.0
minutes. The analyst rated the observed worker at 85%. The firm uses allowance factor of
13%. The restaurant wants to compute the normal time and the standard time for this
operation. [SM]
6(a)
• A single worker can observe several workers simultaneously, it is less expensive.
• Observers usually do not require much training, and no timing devices are needed.
• The study can be temporarily delayed at any time with little impact on the results.
Because working sampling using instantaneous observations over a long period the
worker has little chance of affecting the study's outcome.
• The procedure is less intrusive and therefore less likely to generate objections.
Q6.b)
Average observed time= 4.0 min
Normal time= avg.observed time* performance rating factor
= 4 *.85 = 3.4 mins.
Standard time= normal time/ I-allowance factor= 3.4/(1-.13) = 3.4/0.87 = 3.9 mins
Q 7. (a) Select a company of your choice and identify their method of evaluating their suppliers? Give
details of the company and reasons/or your choice.
(b) Discuss the role of forecasting in supply chain management
(c) Describe how a forecast is monitored to detect bias?
(d) Differentiate between Push and Pull systems and give your answer in a tabular format [8M]
Q7a)
1. Quality of the product delivered
2. Market share of supplier
3. The internal and external audit's followed in the supplier's company.
4. ON time delivery of products
5. ISO certification of the supplier etc.,
Q7b)
Good supplier relations and the ensuing price advantages for materials and parts depend on
accurate forecasts.
Continuous replenishment of inventory
Less investment on stock and inventory
Q7c)
Cumulative error is one measure for detecting the bias on the part of the forecaster. If it is
negative it indicates that the forecaster is biased on higher value than the actual demand and
a positive value indicates negative or pessimistic bias of the forecaster.
Another way to monitor forecasts to ensure that they are performing well is to use tracking
signal. Tracking signal = (Running sum of the forecast errors/Mean absolute deviation)
It can also be monitored using adaptive smoothening and focus
forecasting. Bias = error /MAD
Q7d)
Push System Pull System
Rely on pre determined work schedule Rely on customer demands
Workers pushes the products to the next Workers pull products from the previous
station station
Q 8. Precision Machining provides custom machining/or its customers. The company presently uses a
first-come first-served sequencing rule for customer jobs. Because the company wants to finish
customers order faster, it is considering two other rules: shortest processing time and earliest due
date. The company thinks that these criteria are important in choosing a sequencing rule:
average flow time, average number of jobs in the system, and average job lateness. Six jobs are
received at Precision, and their production times are estimated and delivery dates are promised to
customers. Use the three rules to set the sequence of the jobs, and evaluate the rules according to
the three criteria. [8M]
Job sequence Production time (hours) Time to promised
delivery (hours)
A 2 4
B 5 18
C 3 8
D 4 4
E 6 20
F 4 24
a. First Come First Served (FCFS) b. Shortest Processing Time (SPT)
Duration Start Finish Lateness
Duration Start Finish Lateness Sequence
Sequence time time
time time
A 2 0 2 0
A 2 0 2 0
C 3 2 5 0
B 5 2 7 0
D 4 5 9 5
C 3 7 10 2
F 4 9 13 0
D 4 10 14 10
B 5 13 18 0
E 6 14 20 0
E 6 18 24 4
F 4 20 24 0
53 12 Total 47 71 9
Total 77
Average waiting time = 53 / 6 = 8.83 hours = 47 / 6 = 7.83 days

Average time in the system taken = 77 / 6 = 12.83 hours = 71 / 6 = 11.83 days
Average job lateness= 12/6=2 = 9/6=1.5
c. Earliest Due Date
Duration Start Finish Lateness

Sequence
time time
A 2 0 2 0
D 4 2 6 2
C 3 6 9 1
B 5 9 14 0
E 6 14 20 0
F 4 20 24 0
Total 51 75 3
Average waiting time = 51 / 6 = 8.5 days
Average time in the system taken= 75 / 6 = 12.5 days
Average job lateness= 3/6=0.5
---
11
PPC : ET ZC412 - QUESTION & ANSWERS FROM EXAM QP FOR CB SYLLABUS
Distinguish between Operations and Operations Management...............................Feb 4'07_Qlai_2 marks

Explain the concept of Operations with a help of a neat sketch ..........................,:...Feb 4'07_Qlaii_2 marks
What constitutes "Operations" at: ...........................................................:. ...........'... Feb 4'07_Qlb_2 marks
i. A Bank ii. A retail store iii. A Hospital . iv. A; .able TV Company
Discuss the concept of the changing corporation with minimum twelve poiit
to support that lots of
changes h.ave taken place in the corporations through the movement from the 20th to 21st century.
· Mar 9'08_Q1_6 mark
Define the following (i} Hurwicz Criterion Feb 3'08_Q2a_2 mark

(ii) EVPI
What is competitiveness? How is it Feb 7'101b_2 mark
measured?
list and explain the four steps of strategy formulation. Feb 3'08_Q2bi_2 mark
. ,.,
,·)
...........
What role should operations play in corporate strategy? Feb 3'08_Q2bii_2 mark
\..... Na e several strategic decisions that involve the operations Feb 3'08_Q2biii_2 mark
function.
Speoify the dimensions of quality which a customer/ consumer looks for in a product.
Feb 3'08_Q3a_3 mk
. I .
; How does the quality of design differ from quality of conformance? Feb 3'08_Q3a_2 mark
: /, {. . .
Di,tinguish between internal and external failure costs. Feb 3'08_Q3b_3 mark
Di1ff erentiate between performance specification, design specifications, and manufacturing

specifications. Feb 3'08_Q4a_3 mark
Tabulate the difference between product layout and process layout (at least 10 differences)
Sep 14'08_04_5 marks
/ _hat are the different types of layouts? List down the different factors that you will consider for
1selection of the best type of layout? Explain each factor briefly. Feb 08'09_Q6_6 marks
Enumerate the impact of E-Business on operations (Minimum 10) Aug 05'07_Ql_S
marks Describe the Primary contribution to quality management by each of the following.
Mar 9'08_Q6i_6 mark
Draw the process chart for the process of getting a loan from a bank for purchasing a computer.
Feb 7'10_Q4_8 mark
Di erences between manufacturing and service organizations in a tab. Format Aug 29'10_Q1_3 mark
Explain the impact of quality on productivity. What is the relation between quality and product yield?
Aug 30'09_Q4_4 mark
Draw the basic conversion process block diagram for branch office of a bank. Each component of the
diagram should have minimum three entities. Mar 18'07_01_5 mark
Differentiate between "Order Winners" and "Order Qualifier". How these are used in a purchasing
decision? Feb 7'10_Qla_3 mprk '
PPC_QP·THRV_CB Narayana_200918TSS63, gvn2009.bits@gmail.com Pagelof 37
What are the types of Process Strategies which shall be followed. Own question
What is Process Planning. Own question
What are the characteristics of Services Own question
Decision Analysis Own question
How Technology Affects Processes in Global Business and e-Business Own question
(Examples) Choice of Location & Features of a typical distribution system: Own question
Types of OM Decisions Own
Operations as the Technical Core question
Categories of E Commerce Own
question
Own question /
J
\.
Primary Topics in Operations Management Own question
Draw the process flow chart for the assembly of a ballpoint pen. Assume that each component is
fabricated and available in stores. The operation starts from getting the components from store and
ends with making a pack of 10 pens. Aug 03, 2008_Q5_6 marks, Apr 3'11_Q2_6 mark
An Operations Sheet for a Plastic Part Own question
Types of Processes Own question
Service Design Process Own question
r Vp
There are five operations performance objectives: Own question
If rjfoi'nGf Lvr
o
160&M v11_>
Narayana_200918TS563, gvn2009.bits@gmail.com Page2of 37
' PPC_QP-THRY_CB
1. Distinguish between Operations and Operations Management. Feb 4'07_Qlai_2 marks
Ans:
Operations Management Design, operation, and improvement of productive
Operations systems A function or system that transforms inputs into
outputs. of greater value
Transformation Process _ a. A series of activities along a value chain extending from
supplier to customer
b. Activities that do not add value are superfluous and
should be eliminated
Answer in detail
•!• Operations Vs. Operations Management

Operations management
• designs and operates productive system - systems for getting work done
• Food you eat, car you drive are provided to you by people in operations
r >- Operations
• is defined as a transformation process

• Requirements and feedback from customers are used to adjust factors in
transformation process
2. Explain the concept of Operations with a help of a neat sketch. Feb 4'07_Q1aii_2 marks
Ans:
• Operations as a Transformation Process
INPUT
Material Machines Labor Management Capital
OUTPUT
NS FORMATION
Goods Services
fROCESS
•••
Bl •
II • •
•
II
: .;aaa111111aaaai. Vlllllllma1111a111'1 II
• Fe e d b a c k . •
• ••••••••••••••• • • • • • • ••••••••••• ••
Requirements
Examples for Transformation :

Input Output
Facilities
Teachers
Educational Institute Service
Students
Energy
Raw material
Machinery
Industry Finished Product and Service
People
Energy
PPC_QP-THRV_CB Narayana_200918TS563, gvn2009.bits@)gmail.com Page 3of37

PPC: ET ZC412 - QUESTION & ANSWERS FROM EXAM QP FOR CB SYLLABUS
Transformation Process can

be
•Physical
as in manufacturing operations
•Locational
as in transportation or warehouse operations
as in retail operations
•Exchange
as in health care
•Physiological
as in entertainment
•Psychological
as in communication
• Informational
3. What constitutes "Operations" at : Feb 4'07_Q1b_2 marks

i. A Bank ii. A retail store iii. A Hospital iv. A cable TV Company
Ans:
Operations at a bank involves transferring funds, processing funds, providing checks,

cashing checks, preparing monthly statements, reconciling statements, approving loans,
loaning money, keeping track of loan payments, approving credit cards, and more.
Operations at a retail store involves purchasing goods, stocking goods, selling goods,
keeping track of inventory, scheduling workers, laying out the store, locating the. store,
forecasting demand, and more.
Operations at a hospital involve preparing the rooms, scheduling doctors, nurses and
other workers, processing paperwork, ordering supplies, caring for patients, maintaining
the facility, laying out the facility, ensuring quality and more.
Operations at a cable TV company involves taking orders, installing equipment,
maintaining equipment, keeping the shows on the air, scheduling work, processing
statements and payments, and more
4. Discuss the concept of the changing corporation with minimum twelve points to support that lots of
changes have taken place in the corporations through the movement from the 20th to 21st century.
Mar 9'08_Q1_6 mark
Ans:
20TH CENTURY 21ST CENTURY
CHARACTERISTlC CORPORATION CORPORATION
Style Structures Ff'exible ( '-:·
Source of Stabilli:ty Change

strength Physical lnfo.rmation
Resources assets Mass Mass customization
Products p.roduc.tion Global
Rea,ch Do.mes:tic Real-time
FinainciaJs Quarterl1y Hours
lnventon"es Months Bottom-up
Strategy Top-down Ins.pirational
Leadersh,ip D0g1matic Personal growth
Job Security Revolutionary
expectations l n cremental
1
No compromise
Improvements Affordable best
Quality
PPC_QP•THRY_CB
Narayana_200918TS563, gvn2009.bits@gmail.com Page4of37
5. Define the following (i) Hurwicz Criterion (ii) EVPI Feb 3'08_Q2a_2 mark
Ans:
i. Hurwicz Criterion
• Choose decision in which decision payoffs are weighted by a coefficient of optimism, alpha ( a)
• Coefficient of optimism is a measure of a decision maker's optimism, from O (completely
pessimistic) to 1 {completely optimistic)
ii. Expected Value of Perfect Information (EVPI)

• Maximum value of perfect information to the decision maker
• Maximum amount that would be paid to gain information that would result in a decision
better than the one made without perfect information
6. What is competitiveness? How is it Feb 7'101b_2 marks

measured?
Ans:
o Competitiveness
The degree to which a nation can produce goods and services that meet the test of international
markets while simultaneously maintaining or expanding the real incomes of its citizens.
o Measurement of Competitiveness - Productivity
The most common measure of competitiveness is productivity. Increases in Productivity allow
wages to grow thus raising the standard of living. Productivity growth also represents how quickly
an economy can expand its capacity to supply goods and services. Productivity is said to be the
ratio of OUTPUT to INPUT.
7. List and explain the four steps of strategy formulation. Feb 3'08_Q2bi_2 marks
ANS : Strategy formulation consists of four basic steps:
(1) Defining a primary task - what is the purpose of the firm? What is the firm in the business
of doing?
(2) Assessing core competencies - what does a firm do better than anyone else?
(3) Determining order winners and order qualifiers - what wins orders in the marketplace?
What qualifies a product or service to be considered for purchase?
(4) Positioning the firm - what one or two important things should the firm choose to
concentrate on? How should the firm compete in the marketplace?
8. What role should operations play in corporate strategy? Feb 3'08_Q2bii_2 marks
Ans: Operations can play two important roles in corporate
strategy:
(1) it can provide support for the strategy of a firm (help with order qualifiers), and
(2) it can serve as a firm's distinctive competence (win orders).
9. Name several strategic decisions that involve the operations function. Feb 3'08_Q2biii_2 marks
Ans : Strategic decisions in operations involve products and services, processes and technology,
capacity and facilities, human resources, quality, sourcing, and operating systems.
PPC_QP-THRY_CB Narayana_200918TS563, gvn2009.blts@gmail.com Page5of37
10. Specify the dimensions of quality which a customer/ consumer looks for in a product. Feb 3'08_Q3a_3 mk
Ans:
Performance : operating characteristics of a product
Features : extra items added to basic characteristics
Reliability : probability that a product will operate properly
Conformance
: the degree to which a product meets standards
Durability
: how long the product lasts
· Serviceability
: ease and speed of repair and courtesy of repair person
Aesthetics
: how a product looks, feels, sounds, smells, or tastes
Safety
: Assurance that no harm from a product, especially for Automobiles
Perceptions
: subjective perceptions based on brand name or advertising
11. How does the quality of design differ from quality of conformance? Feb 3'08_Q3a_2 marks
Ans: Quality of design is the degree to which quality characteristics are designed into a product,
whereas quality of conformance is how effectively the production process is able to conform to
the specifications required by design.
12. Distinguish between internal and external failure costs. Feb 3'08_Q3b_3 marks
Ans : Internal failure costs are incurred when poor quality is discovered before the product is
delivered to the customer, whereas external failure costs are incurred after a customer
receives a poor-quality product. Internal failure costs include scrap, rework, process failure,
and downtime, whereas external failure costs include customer complaints, product returns,
warranty claims, product liability, and lost sales.
13. Differentiate between performance specification, design specifications, and manufacturing specifications.
Feb 3'08_Q4a_3 marks
Ans: Performance specifications tell how a product is to perform. Design specifications detail the
measurements and standards to which a product is to be built so that it meets performance
specifications. Manufacturing specifications outline how the processes are supposed to
operate in order to produce the product to meet design specifications.
PPC_QP-THRY_CB Narayana_200918TS563, gvn2009.blts@gmall.com Page 6of37

14. Tabulate the difference between product layout and process layout (at least 10 differences)
Sep 14'08_Q4_5 marks
Ans:
Comparison Of Product And Process Layouts
Product layout Process layout
Sequential arrangement of Functional grouping

1 Description
machines of machines
------ ------------ -----C-o-n-ti-n-uo- -------In-t-er-m-i-tt-
u-s,------ en-t-, ------
2 Type of Process
------ ------------ mass production,

mainly assembly
job Shop batch production,
mainly fabrication
3 Product
------ - - - - - -----S-ta-n-da-r-di- ---------V-a-rie-d-,
--- -------
D e m a
- - -----
z ed ,
--------
4--- nd made to stock made to order
--- --------
V-o-lu-m- -------S-t-ab-l-e --------F-lu-ct-u-at-in-
5--- e
------- g-------
- -- -- --
- - .. - - E-----
6
-------- - -
q ui p m e ---------- - -
H ig L o
... nt h -------- w ---------
-W-o-r-ke-r-s ----S-p-e-ci-al-p-u- ------G-e-n-er-al-p-u-
--- ------
r-po-s-e ---- rp-o-s-e -----
7--- ------------ ----- - - - - - - - ------- -- - - - - -
8 Inventory lil L i m ite d s k V ar ie d sk i
- ..... - -S-to-ra-g-e-s- ill-s ----- lls-------
... - ----l-ow--i-n--p-ro- ------H-ig-h-i-n--p-ro-c-

- - ---
es-s-, -----
p ac e
--- ------------ highc-esfinished -s-, ----
goods low finished goods
9---
Material handling
--------S-m-al-l ----------L-ar-
-A-is-le- ------- ge---------
10
15. What are the different types of layouts? List down the different factors that you will consider for selection
of the best type of layout? Explain each factor briefly. Feb 08'09_Q6_6 marks
Ans:
Process layouts
• group similar activities together according to process or function they perform
Product layouts
• arrange activities in line according to sequence of operations for a particular product or service
Fixed position layouts

• are used for projects in which product cannot be moved
PPC_QP-THRV_CB Narayana_200918TS563,gvn2009.bits@gmail.com Page7of37

PPC: ET ZC412- QUESTION & ANSWERS FROM EXAM QP FOR CB SYLLABUS
16. Enumerate the impact of E-Business on operations (Minimum Aug 05'07_Ql_S marks
10)
Ans:
S.NO Benefits of E-Business Impact on Operations

Comparison shopping by Customer expectations escalate; quality must be
1
customers maintained and costs lowered
No more guessing about demand is necessary;

2 Direct contact with customers inventory. costs go down; product and service design
improves; build to-order products and services is made
possible
Business processes conducted Transaction costs are lower; customer support costs
3
online decrease; e-procurement saves big bucks
Demand increases; order fulfillment and logistics
4 Access to customers worldwide
become major issues; production moves overseas
Logistics change from delivering to a store or

distribution center to delivering to individual homes;
5 Middlemen are eliminated
consumer demand is more erratic and unpredictable
than business demand
Outsourcing increases; more alliances and

6 Access to suppliers worldwide partnerships among firms are formed; supply is less
certain; global supply chain issues arise
Online auctions and e- Competitive bidding lowers cost of materials; supply

7
marketplaces needs can be found in one location
More timely information is available with immediate

access by all stakeholders in decision-making
Better and faster decision
8 process; customer orders and product designs can
making
be clarified electronically; electronic meetings can be
held; collaborative planning is facilitated
Productivity increases as information can be shared

9 IT synergy
more efficiently internally and between trading partners
Order fulfillment, logistics, warehousing,

10 Expanded supply chains transportation and delivery become focus of
operations management; risk is spread out; trade
barriers fall
PPC_QP-THRY_CB Narayana_200918TS563, gvn2009.bits@gmail.com Page8of37

17, Describe the Primary contribution to quality management by each of the following. Mar 9'08 06i 6 mark
W.E.Deming Joseph Juran Armand Frighebatm
Kaoru Ishikawa Genichi Taguchi Phillip Crosby
Ans:
);., Walter Shewart
• In 1920s, developed control charts

• Introduced term "quality assurance"
);., W. Edwards Deming
• Developed courses during World War II to teach statistical quality-control techniques to

engineers and executives of companies that were military suppliers
• After war, began teaching statistical quality control to Japanese companies
);., Joseph M. Juran
/ • Followed Deming to Japan in 1954

• Focused on strategic quality planning & achieved Quality improvement securing breakthrough
solutions to solve problems
}> Armand V. Feigenbaum
• In 1951, introduced concepts of total quality control and continuous quality improvement
> Philip Crosby

• In 1979, emphasized that costs of poor quality far outweigh cost of preventing poor quality
• In 1984, defined absolutes of quality management - conformance to requirements, prevention,
and "zero defects"
}> Kaoru Ishikawa

• Promoted use of quality circles, Developed "fishbone" diagram
• Emphasized importance of internal customer
);., Genichi Taguchi - Quality Loss Function
• Quantifies customer preferences toward quality

• Emphasizes that customer preferences are strongly oriented toward consistently
• Design for Six Sigma (DFSS)
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18. Draw the process chart for the process of getting a loan from a bank for purchasing a computer.
Feb 7'10_Q4_8 marks
Ans:
l.oan
aP,j>litati!)n Pay book
,: __
F_..r;o;..n t o, .f..f...ic _
e
, Batk office
V ·. Customer wa it
. Employee. decision
PPC_QP·THRV_CB Narayana_200918TS563, gvn2009.bits@gmail.com Page 10of37

19. Differences between manufacturing and service organizations in a tab. Format Aug 29'10_Q1_3 mark
Ans:
• Customer needs and performance standards are difficult to quantify in services.
• The production of services often requires a high degree of customization.
• The output of many services is intangible, unlike manufactured goods.
• Services are produced and consumed simultaneously.
• Customers must often be involved and present during the performance of the service process.
• Services are more labor intensive, where manufacturing is more capital intensive.
• Many service organizations handle large numbers of transactions.
• Performance standards in service organizations are equally as important as specifications in
manufacturing firms. Services must also "meet or exceed customer expectations." Customer
needs are often more difficult to identify and quantify in services, because individual
customers are different and bring their own wants and needs into the definition of what is good
or excellent quality. They demand a higher degree of customization, rather than
standardization, which is common specification in manufacturing.
ORGANISATION MANUFACTURING ORGANISATION SERVICE

Product Physical, durable product Intangible, perishable product
Output that can be inventoried that cannot be inventoried
Customer Involvement Low High
Response Time Long Short
Markets Regional, national, or international Local
Facilities Large facilities Small
Intensive Capital intensive Labor
Quality Easily measured Not easily measured
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20. Define Cost of Quality and discuss the concept in Aug 3'0S_Q6_6 mark
detail.
Ans:
o Cost of quality :
A cost towards the Prevention & appraisal costs and Internal & external failures (or) difference
between price of nonconformance and conformance, cost of doing things wrong and cost of doing
things right
•!• Cost of Achieving Good Quality

• Prevention costs costs incurred during product design
• Appraisal costs costs of measuring, testing, and analyzing

•!• Cost of Poor Quality
• Internal failure costs -
include scrap, rework, process failure, downtime, and price
reductions
include complaints, returns, warranty claims, liability, and lost
• External failure costs sales
-
./ Prevention costs
» Quality planning costs Costs of developing and implementing quality
management program
» Product-design costs Costs of designing products with quality characteristics
» Process costs Costs expended to make sure productive process
conforms to quality specifications
... Training costs Costs of developing and putting on quality training
programs for employees and management
.- Information costs Costs of acquiring and maintaining data related to
quality, and development and analysis of reports on
quality performance
./ Appraisal Costs
» Inspection and testing Costs of testing and inspecting materials, parts, and
product at various stages and at end of process
Test equipment costs
Costs of maintaining equipment used in testing quality
characteristics of products
•• Operator costs
Costs of time spent by operators to gather data for
testing product quality, to make equipment
adjustments to maintain quality, and to stop work to
assess quality
./ Internal Failure Costs

» Scrap costs
Costs of poor-quality products that must be discarded,
including labor, material, and indirect costs
.... Rework costs
Costs of fixing defective products to conform to quality
specifications
Process failure costs
Costs of determining why production process is
producing poor-quality products
..., Process downtime costs
Costs of shutting down productive process to fix
problem
Price-downgrading costs
Costs of discounting poor-quality products-that is,
selling products as "seconds"
PPC_QP-THRV_CB Narayana_Z0091STSS63, gvn2009.bits@gmail.com Page1Zof37
,/ External Failure Costs

» Customer complaint costs - costs of investigating and satisfactorily responding to a
customer complaint resulting from a poor-quality
product
» Product return costs costs of handling and replacing poor-quality products
returned by customer
» Warranty claims costs of complying with product warranties
costs
litigation costs resulting from product liability and
» Product liability costs customer injury
costs incurred because customers are dissatisfied with
» Lost sales costs poor-quality products and do not make additional
purchases
21. Explain the impact of quality on productivity. What is the relation between quality and product yield?
Aug 30'09_Q4_4 mark
Ans:
o Effect of Quality Management on
Productivity
Ratio of output to input
Productivity
Fewer defects increase output, and quality
• Quality impact on productivity improvement reduces inputs
A measure of productivity
Yield
(total input}(% good units) + (total input)(l-
%good units)(% reworked) -or-
Y=(l}(%G)+(l)(1-%G)(%R)
• QPR productivity index that includes productivity and qua!ity costs
(good-quality units)
QPR= -------------------------- (100)
(input) (processing cost) + (reworked units) (rework cost)
22. Draw the basic conversion process block diagram for branch office of a bank. Each component of the
diagram should have minimum three entities. Mar 18'07_Q 1_5 mark
BANK
I '1 ·,·,I,:..:
ATM support Teller line Credit applications Fund management

Customer transactions Track Manage retail products .Ma ket making spot
transactions Service branch sales ATM Originate lease Dealer support
quality hotline portfolio Others Others·
Others others
Maintain cards
I
Process d!!Jposits
Loan documentation
Review credit standing
Prepare reports
Attend meetings
Research problems Cash checks Obtain manager Input funds
Site analysis Safe deposit boxes approval Others deals Others
Others Others
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23. Differentiate between "Order Winners" and "Order Qualifier". How these are used in a purchasing
decision? Feb 7'10_Qla_3 mark
Ans: Order Winners and Order Qualifiers
High
I'd OJ>:lerwinners
.E
c.. towin Ill Sufi.dent 0 rcler quaIit1ers
:i' orders
e
i3
Time
Order Qualifiers;. The5Paracteristics of a product or service that qualify it to be consideredfor 1

purchase, 1N- .e.py '1v\,t- Q. J2.V'r bv\}· i• v-owJ<?J' · "·
itu_ .J A MtL tul'Ql{ t)2_ G_ J}A7 6tAt

Order Winners: The characteristic of a product or service tha Wi orders in !,be mar)tet P.lace. f \I
-- A-ifit-.im1wmu ·t,; ; w1w
'f; \J f t\JJU OJ.L t\v 1Ai IOrlh to!'11 . Y Jf
peso Process Stra egies w ich shall be followed. wn question dt
•!• Vertical integration ;j--ftl l-:
./ extent to which firm will produce inputs and control outputs of each stage of -
...._
production process
•!• Capital intensity
./ mix of capital (i.e., equipment, automation) and labor resources used in
production process
•!• Process flexibility
./ ease with which resources can be adjusted in response to changes in
demand, technology, products or services, and resource availability
•!• Customer involvement '··.
./ role of customer in production process
25. What is Process Planning. Own question
•!• Process
,/' a group of related tasks with specific inputs and outputs
•!• Process design
./ what tasks need to be done and how they are coordinated among functions,
people, and organizations
•!• Process strategy
,r an organization's overall approach for physically producing goods and services
•:• Process planning
./ converts designs into workable instructions for manufacture or delivery
•!• Process Selection
PPC_QP·THRV_CB . Narayana_200918TS563, gvn2009.bits@gmail.com Page 14of37

26. What are the characteristics of Services Own question
CHARACTERISTICS OF SERVICES
•!• Services are intangible
•!• Service output is variable
•!• Services have higher customer contact
•!• Services are perishable
•!• Service inseparable from delivery
•!• Services tend to be decentralized and dispersed
•!• Services are consumed more often than products
•!• Services can be easily emulated
•!• Service concept
./ Purpose of a service; it defines target market and customer experience
•!• Service package
./ mixture of physical items, sensual benefits, and psychological benefits
•!• Service specifications
./ performance specifications
./ design specifications
./ delivery
specifications Service Process Matrix
PRODUCT-PROCESS MATRIX
High ContinuousI
Production
Mass Production
Batch Production
Projects
J ",
Low
Low Standardization High
27. Decision Analysis

Own question
+ Quantitative methods -
a set of tools for operations
manager
+ Decision analysis A set of quantitative decision-making techniques
for decision situations where uncertainty exists
Example of an uncertain
situation :
.,..,. Demand for a product may vary between O and 200 units, depending on the state of
market
Decision Making Without Probabilities :
./ States of nature
• Events that may occur in the future
• Decision maker is uncertain which state of nature will occur
• Decision maker has no control over the states of nature

PPC_QP-THRY_CB Narayana_200918TS563, gvn2009.blts@gmail.com Page 15 of 37
111 Examples of States of nature

high or low demand for a product
•• good or bad economic conditions
};> Decision making under risk
Probabilities can be assigned to the occurrence of states of nature in the future.
};> Decision making under uncertainty
Probabilities can NOT be assigned to the occurrence of states of nature in the

future
};> Payoff table
states
Method for organizing and illustrating payoffs from different decisions given
various of nature
Decision Making Criteria Under Uncertainty
../ Maximax criterion

+ Choose decision with the maximum of the maximum payoffs
../ Maximin criterion
+ Choose decision with the maximum of the minimum payoffs
../ Minimax regret criterion
+ Choose decision with the minimum of the maximum regrets for each alternative
../ Hurwicz criterion
+ Choose decision in which decision payoffs are weighted by a coefficient of optimism, ALPHA
• Coefficient of optimism a is a measure of a decision maker's optimism, from O (completely
pessimistic) to 1 (completely optimistic)
../ Equal likelihood (La Place) criterion
+ Choose decision in which each state of nature is weighted equally
Decision Making with Probabilities
../ Risk involves assigning probabilities to states of nature

../ Expected value
+ a weighted average of decision outcomes in which each future state of nature is assigned a
probability of occurrence
n
EV (' x).' "';\:" p·' , where
('.xit,-\"v'.t x, = outcome i
p(x1) = probability of outcome i
i.=1
../ TYPES OF DECISIONS

• Certainty
+ Uncertainty
o Risk
PPC_QP-THRY_CB Narayana_200918TS563, gvn2009.blts@gmail.com Page16of37
28. How Technology Affects Processes in Global Business and e-Business (Examples)
Operations Management : Strategy and Analysis define technology as "the know-how, physical
things, and procedures used to produce products and services. Based on this definition,
technology as the ever-evolving child of our individual curiosity and creativity in collaboration
with others in activities that in one form or another benefit society.
With this as a point of reference, we can stand somewhere in our densely technical society, pick
up a virtual compass and draw a direct line to connects each of our needs as individuals,
families, communities, nations and even a planet to a particular advancement in technology.
Indeed, technology surrounds us and as Scott mentioned in his lecturette, has surrounded us for
a very long time. Even if I wanted to "rough-it 11 out in the woods as I enjoy doing, I would be very
hard pressed to do so without some sort of technology to help me survive. Let's suppose that
one day I decide to listen to "the little voices" in my head and walk into the woods without the
comfort of a backpack full of technology, not even shoes or clothes. The moment I start
gathering kindle and rubbing sticks to build a fire, I would be making use of technology based on
the concept of "know how".
(
Krajewski, L. J. & Ritzman, L. P. (2002) Operations Management: Strategy and Analysis, 5th
edition, pp 151 define technology as "the know-how, physical things, and procedures used to
produce products and services. Based on this definition, I see technology as the ever-evolving
child of our individual curiosity and creativity in collaboration with others in activities that in one
form or another benefit society.
With this as a point of reference, we can stand somewhere in our densely technical society, pick
up a virtual compass and draw a direct line to connects each of our needs as individuals,
families, communities, nations and even a planet to a particular advancement in technology.
Indeed, technology surrounds us and as Scott mentioned in his lecturette, has surrounded us for
a very long time. Even if I wanted to "rough-it" out in the woods as I enjoy doing, I would be
very hard
pressed to do so without some sort of technology to help me survive. Let's suppose that one day
I decide to listen to "the little voices" in my head and walk into the woods without the comfort of a
backpack full of technology, not even shoes or clothes. The moment I start gathering kindle and
:" \ rubbing sticks to build a fire, I would be making use of technology based on the concept of
"know how".
Krajewski, L. J. & Ritzman, L. P. (2002) Operations Management: Strategy and Analysis, 5th
edition, pp 151 also talk about the three primary areas of technology and define these as
product, process and information technologies. I will now explain the impact that some of these
technologies and some of their sub-technologies in the processes associated with global and e-
business.
When thinking about global business, the greatest challenge to the efficiency of processes in an
organization has been in overcoming the barriers of geographical dispersion. It's funny how the
applied research by DARPA in the sixties to develop a command and control system for
Department of Defense sparked a combination of technologies which evolved eventually not just
to support global business, but also e-.business. At any rate, it has been the advancement and
proper application of all three technologies that has enabled many of the process improvements
enjoyed by global companies today. Looked at from a different perspective we could say that
overcoming the obstacle of connecting 2 computers in adjacent rooms was an application of
technology which in turn inspired improvement in technology that overcame the obstacle of
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connecting 2 or more computers in adjacent buildings, in a campus, state country and eventually
across the world.
Looking at product technology, we could say that engineers and researchers have with time
improved upon the processes for researching and applying new technologies in creation of new
products that meet customer needs and demands. At the same time we would have to think
about how information technology has created through its set of sub-technologies (hardware,
software, databases and telecommunications) tools that complement product technologies as
well. Hardware and software sub-technologies can help standardize processes and data formats
in a way that could be interpreted in a similar fashion by systems at remote locations.
Telecommunications has enabled the sharing of data and the collaboration of applications or
even processes at different locations. In this fashion experts in a particular manufacturing
process could collaborate with another group of experts at a different location while working on
the same project.
In terms of production technology, it could be said that technical advances in process-control, in

machinery and even information technology have increased the efficiency and productivity in ;
manufacturing and service areas for global companies. For example, Company X markets,
assembles and sells widgets throughout the world. Widget components are manufactured at
different geographic locations for economic reasons. Through the help of telecommunications,
application systems at corporate headquarters can coordinate production levels at each
geographic location to meet the supply needs of the assembly plant located in the US.
Global business cannot be discussed without mentioning technical advances that are enabling
realization of electronic Business (e-Business or e-commerce). Here I see the emergence of
"collaborating technologies" such as telecommunications in the form of local, wide and global
scale private networks and even that public artery we call Internet. These provide and enable
electronic communication between all other technologies. Hardware has played a substantial role
also providing scalability requirements of everything from desktop computers to high-end servers
to host electronic storefronts and warehouses. Software has provided more efficient operating
systems and specialized applications like web hosting, and client browsers and even computer
languages like Java, which enable running of applications on different types of computers.
PPC_QP-THRY_CB Narayana_200918TS563, gvn2009.bits@gmall.com Page 18of37

29. Choice of Location & Features of a typical distribution system :

Choice of location is a senior management decision. It is vital that organizations carefully
consider the implications of selecting the correct geographical region/location. Operations
personnel can, and often do, participate in this decision process and a number of factors, which
might influence the eventual choice, should be thought through. When choosing a new location it
is important to consider where the facility under question lies within the physical distribution (or
logistics) chain. The distribution systems of different products and services can vary
considerably, but a typical manufacturing and distribution system would comprise a number of
levels including raw materials processing, component processing, manufacturing, wholesale and
retail. The further back a particular operation is in the logistics chain, the closer to the source of
raw materials the location will probably be. Likewise the further downstream the operation, the
nearer it tends to be to the customer.
The features of a typical distribution system are as follows:

• Processing separated from warehousing, retailing, etc.: each organization can develop and use its
own expertise.
• Economies of scale by concentrating operations away from customers and suppliers.
• Wholesalers keep large stocks from many suppliers, allowing retailers a choice of goods.
• Wholesalers are close to retailers and have a short lead-time.
• Manufacturers need not carry large stocks of finished goods.
• Retailers carry less stock as wholesalers offer reliable delivery times.
• Wholesalers place large orders and reduce unit prices.
, \
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·,•·:PPC,::er:zqi12:4iQUESTION & ANSWERS FROM EXAM QP FOR CB SYLLABUS
30. Types.of OM Decisions
·.: .',; ;;tfidt:·::

. ,.,,,;QUf]/lty , ··.. . .
//:tdapacf:t:y,,Lqtatio6;'tdyout
.·0·,./,·0p ratiri :/j cfsions·.')'
·.r..·\:-'}../:.:./..:>··\ :·,..:-.\ .. ,,;...:
:_::\:.;t>.\):··;:-·_·.:
-Accounting
-- Distribution
Manufact-.rinu
:Construction
-
·--
Whole8ale
Ret•lllng
-Engineering
Banik
-Operations
Transportation
-Finance
oova-rn..nonit' -Human Resources
Health care
-Marketing
Operations Management As a Function
Skill Areas
• Quantitative
methods
• Organizational
Manufacturing
behavior
Construction
Transportation •-------<
etamng • General
management
• Information systems
Health care
• Economics
• International
business
• Business
ethics and law
PPC_QP·THRY_CB
Narayana_200918TSS63, gvn2009.b1ts@gmail.com Page20of37
36. Types of Processes
PROJECT BATCH MASS CONT.

Made-to- order Made-to- stock
Type of product Unique Commodity
{customized) (standardized )
Type of Few individual
One-at-a-time Mass market Mass market
customer customers
Product demand Infrequent Fluctuates Stable Very stable
Demand volume Very low Low to medium High Very high
No. of different
Infinite variety Many, varied Few Very few
products
Production Repetitive, Continuous,

Long-term project Discrete, job shops
system assembly lines process industries
Equipment Varied General-purpose Special-purpose Highly automated
Primary type of Mixing, treating,

Specialized contracts Fabrication Assembly
work refining
Experts, Equipment
Worker skills Wide range of skills limited range of skills
crafts-persons monitors
Highly efficient,
Custom work, Efficiency, speed,
Advantages flexibility, quality large capacity,
latest technology low cost
ease of control
Non-repetitive, Capital investment; Difficult to change,

Costly, slow,
Dis-advantages expensive, small lack of far-reaching errors,
difficult to manage
customer base responsiveness limited variety
Machine shops, Automobiles,

Construction, Ship Paint, chemicals,
Examples bakeries, print shops, fast food,
building, spacecraft foodstuffs
education televisions,
computers
Product-Process Matrix
High
ContinuousI
Production
Mass Production
Batch
Production
Projects
Low
Low Standardization High
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PPC: ET ZC412-QUESTION & ANSWERS FROM EXAM QP FOR CB SYLLABUS
37. SERVICE DESIGN PROCESS
. :sbeervs,(l' 'eed·1·.,.., liar.get

"' cust0mer
xperjen e , .
·, PsJch
Phy i'cal , Sen\ al, logka.r•· berief.its
items beneiit·s
. ·1 . I
Customer, C1:1stomer
',, I . ... I.
ScheduleDeli,ve abl:es
38. Process Innovation
Strategic Directives
Baseline Data
Customer Requirements Goals for Process Performance Benchmark
Dat
High - level Process map Innovative Ideas

Design Principles
DetailedModel
Process MapValidationKey
Performance
Measures
PiJot Study
of New Design
Full Scale Implementation

No Yes
PPC_QP-THRV _CB
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39. There are five operations performance objectives:
1 Cost: The ability to produce at low cost.

2 Quality: The ability to produce in accordance with specification and without error.
3 Speed: The ability to do things quickly in response to customer demands and thereby offer
short lead times between when a customer orders a product or service and when they receive it.
4 Dependability: The ability to deliver products and services in accordance with promises made to
customers (e.g. in a quotation or other published information).
5 Flexibility: The ability to change operations. Flexibility can comprise up to four aspects:
i. The ability to change the volume of production.
ii. The ability to change the time taken to produce.
iii. The ability to change the mix of different products or services produced.
iv. The ability to innovate and itroduce new products and services.
(\_
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-
40. 4 main Principles of BPR
1 . Rethink business processes in a cross-functional manner which

organizes work around the natural flow or information (or materials or
customers).
2. Strive for dramatic improvements in performance by radically rethinking
and redesigning the process.
3. Have those who use the output from a process, perform the process.
4. Put decision points where the work is performed. Do not separate
those who do the work from those who control and manage the work.
EXAMPLE OF A CONSUMER GOODS TRADING COMPANY
EXAMPLE OF A CONSUMER GOODS TRADING COMPANY - AFTER RE-ENGINEERING
PPC_QP-THRY_CB Narayana_Z00918TS563,gvn2009.bits@gmail.com Page26of37

PPC_ET ZC412 - TEST EXAM
Answer the following questions
1 Explain the concept of Operations with a help of a neat sketch. [2M]
Ans:
0· erations as a Transformation Process
INPUT
•Material
•Machines OUTPUT
•Labor TRANSFORMATION •Goods
•Management •Services
PROCESS
.. ..•.. •..
•Capital
..
. • . ........ . Ill Ill..... . . ...Ill.............. . .•
Ill •
.. •
• •
..
• ..
• •
. ................................ ... . .. . . . . . . . . . . .
• F e d & R eq u ln tm fl ln l:, a a
2 What constitutes "operations at: [2M].

};>A bank 2. A retail 3. A 4) A cable TV company ·
store hospital
Ans:
};> Operations at a bank involves transferring funds, processing funds, providing
checks, cashing checks, preparing monthly statements, reconciling statements,
approving loans, loaning money, keeping track of loan payments, approving credit
cards, .and more.
};> Operations at a retail store involves purchasing goods, stocking goods, selling
goods, keeping track of inventory, scheduling workers, laying out the store, locating
the store, forecasting demand, and more.
};> Operations at a hospital involve preparing the rooms, scheduling doctors, nurses
and other workers, processing paperwork, ordering supplies, caring for patients,
maintaining the facility, laying out the facility, ensuring quality and more.
};> Operations at a cable TV company involves taking orders, installing equipment,
maintaining equipment, keeping the shows on the air, scheduling work, processing
statements and payments, and more
3 List and explain the four steps of strategy formulation. [2M]

Ans : Strategy formulation consists of four basic steps:
(1) Defining a primary task-what is the purpose of the firm? What is the firm in the
business of doing?
(2) Assessing core competencies-what does a firm do better than anyone else?
(3) Determining order winners and order qualifiers-what wins orders in the marketplace?
What qualifies a product or service to be considered for purchase?
(4) Positioning the firm-what one or two important things should the firm choose to
concentrate on? How should the firm compete in the marketplace?
4 What role should operations play in corporate strategy? [2M1
PPC_ET ZC412-CH 01 Narayana_200918TS563, narayana.gvvs@gmail.com

PPC_ET ZC412-TEST EXAM
Ans : Operations can play two important roles in corporate strategy:

(1) it can provide support for the strategy of a firm (help with order qualifiers), and
(2) it can serve as a firm's distinctive competence (win orders).
s Name several strategic decisions that involve the operations function. (2M]
Ans : Strategic decisions in operations involve products and services, processes and technology,
capacity and facilities, human resources, quality, sourcing, and operating systems.
6 Briefly describe the dimensions of quality, for which a customer/ consumer looks in a service
(minimum five).
Ans:
Performance: operating characteristics of a product
Features: extra items added to basic characteristics
Reliability: probability that a product will operate
properly
Conformance: the degree to which a product meets standards
Durability: how long the product lasts
Serviceability: ease and speed of repair and courtesy of repair person
Aesthetics: how a product looks, feels, sounds, smells, or tastes
Other: subjective perceptions based on brand name or advertising
7 How does the quality of design differ from quality of conformance?

Ans : Quality of design is the degree to which quality characteristics are designed into a
product, whereas quality of conformance is how effectively the production process is
able to conform to the specifications required by design.
8 Differentiate internal and external failure costs.

Ans : Internal failure costs are incurred when poor quality is discovered before the product is
delivered to the customer, whereas external failure costs are incurred after a customer
receives a poor-quality product. Internal failure costs include scrap, rework, process failure,
and downtime, whereas external failure costs include customer complaints, product
returns, warranty claims, product liability, and lost sales.
9 Differentiate between performance specification, design specifications, and manufacturing

specifications.
Ans : Performance specifications tell how a product is to perform. Design specifications detail
the measurements and standards to which a product is to be built so that it meets
performance specifications. Manufacturing specifications outline how the processes are
supposed to operate in order to produce the product to meet design specifications.
10 MagTech assembles tape players from four major components arranged as follows:
-
PPC_ETZC412 - CH 01 Narayana_200918TS563, Pas
narayana.gvvs@gmail.com ./
PPC_ET ZC412 -TEST EXAM
The components can be purchased from three different vendors, who have supplied the
following reliability data:
Components 1 2 3
A 0.94 0.85 0.92
B 0.86 0.88 0.90
C 0.90 0.93 0.95
D 0.93 0.95 0.90
If MagTech has decided to use only one vendor to supply all four components, which vendor
should be selected? Would your decision change if all the components were assembled in
series "ABCD"?
Ans:
r
a. · Vendor 1: 0.94 ><[0.90 + .10(.86)]x 0.93 = .8620
Vendor 2: 0.85 x [0.93 + .07(.88)Jx 0.95 = .8007
Vendor 3: 0.92 x [0.95 + .05(.90)1><0.90 = .8239
Choose vendor 1.
b. Vendor 1: 0.94 x 0.86 x 0.90 x 0.93 = .6766

Vendor 2: 0.85 x 0.88 x 0.93 x 0.95 = .6609
Vendor 3: 0.92 x 0.90 x 0.95 x 0.90 = .7079
Yes, choose vendor 3.
·11 Three production processes - automated (A), cellular manufacturing (C), and job shop (J) -
have the following cost structure: [3+4+2M]
PROCESS FIXED COST PER VARIABLE COST PER UNIT
YEAR (IN$)
(IN$)
A 110,000 2
C 80,000 4
J 75,000 5
b. What is the most economical process for a volume of 10,000 units per year?
c. At what volume would each of the processes be preferred?
Ans:
a) Total cost (TC)= Fixed cost (FC) + Variable cost [V{q)J, Hence, for no. of units= 10,000
TCA = FCA + VA(10,000) = 110,000 + 2(10000) = 130,000
TCc = FCc + Vc(10,000) = 80,000 + 4(10000) = 120,000
TCJ = FCJ + VJ(10,000) = 75,000 + 5(10000) = 125,000
The most economical process is Cellular Manufacturing
PPC,..:ET ZC412- CH 01 Narayana_200918TS563, narayana.gvvs@gmail.com Pag

PPC_ET ZC412-TEST EXAM
b) Comparing any two processes,
i.e. TCJ = TCC = 75000 + 5(q) = 80000 + 4(q) Hence q = 5000 units
TCC = TCA = 80000 + 4(q) = 110000 + 2(q) Hence q = 15000 units
c) Job shop is preferred if volume is between O - 5000 units
Cellular Manufacturing is preferred if volume is between 5000 - 15000 units
Automation is preferred if volume is more than 15000 units
12 Bajaj Automobiles Limited wants to design a repetitive production line to produce one of the
components to be used in its motorbike. The production process requires 14 tasks, which are
listed in the table below. Draw a precedence diagram for the tasks.
Task .A B C D E F G H I J K L M N
Predecessor tasks - - A B,C - D,G J,K A,L
- A,E A - - F,H,I,M
Ans: -
13 List five goals of facilities layout. What are the three strategies for capacity expansion? (3M)
Ans:
Facilities can be "laid out" to meet the following objectives: minimize material handling
costs, utilize space efficiently, utilize labor efficiently, eliminate bottlenecks, facilitate
communication and interaction (between workers, between workers and their
supervisors, or between workers and customers), reduce manufacturing cycle time or
customer service time, eliminate wasted or redundant
movement, facilitate the entry, exit and placement of material, products, or people,
incorporate safety and security measures, promote product and service quality,
encourage proper maintenance activities, provide a visual control of operations or
activities, and provide flexibility to adapt to changing conditions.
Capacity Lead; capacity lag and average capacity: explain the three strategies
PPC_ET ZC412 - CH 01 Narayana_200918TS563, narayana.gvv$@gmail.com Pag

PPC_ET ZC412 -TEST EXAM
14 Carlos Furniture Limited has three existing warehouses to which it will ship furniture from a
new factory whose location must be decided. The factory will receive raw material from its
wood supplier and its fabric supplier. The annual number of shipments, shipment costs, and
the locations of the suppliers and warehouses are shown below. Locate the factory using the
Centre of gravity method. What is the annual transportation cost in this case? [5M]
Existing Ail,R/tv!ls Loads to Cost I Load / Mile Co-ordinate

Facility or from Factory to or from Location (x,y) in
Factory miles
Wood supplier 121 $8 . (100, 400)
..
Fabric supplier 200 $6 (800, 700)
\Varehouse 1 60 $5 (300,600)
Warehouse 2 40 $5 (200, 100)
Warehouse 3 70 $5 (600,200)
Ans:
Centre of gravity method
E:tisfing Annuals Cost /Load/ X coor·dinate Y coordinate Xi*"Wi \'1 +.-\Yi
Facility Loads to or :Mile to or from
fl'Om Factory Facto11'
Wood supplier 121 $8 100 400 12100 48400
fabi"ic supplier 200 $6 800 700 160000 140000
\Vare:house 1 60 $5 300 600 18000 36000
Wru.-ehou.se 2 40 $5 200 100 S.000 4000
Warehouse 3 70 $5 600 200 42000 14000
Total 491 240100 242400
Based on centre of gravity, Xo = Xi * Wi / Sum of Wi = 240100/491 =

Yo = Yi * Wi / Sum of Wi 489 242400/491 =
= 494
E:s:isfing Annuals Cost / Load I Co-01·dinate LoCiltion IXo-Xi! !Yo-\'.11 Total Cost
Facility Loads to or :Mile to or from (:s:,y) in miles
ft"Om Factory Facto1T
Wood 121 $8 (100,400) 389 94 483 467544
supplier
Fabric 200 $6 (800, 700) 311 206 517 6204-00
supplier
Warehouse 1 60 $5 (300,600) 189 106 295 88500
Warehouse 2 4-0 $5 (200, 100} 289 394 683 136600
Warehouse3 70 $5 (600,200) 111 294 405 141750
Total cost= 1,454,794
PPC ET ZC412-CH 01 Narayana_200918TS563,

/
/
Birl'a Institute ofrTechnology & Science, Pilani
Work..lntegrated. Learning Programmes
Division: First Semester 2010-2011
Mid'-Semester Test
(EC-1 Regula-r)
Course No; : ET ZC4l2 .

Course Titl'e : PRODtJCT:lON fLANNING & CONTROL
Nature of Exam : Cfosed Book
Weightage
:40% :
Duration : 2Hours
Date·of Exam : 29/08/4010 (FN)
Note:
I.. Plcas1: follqw all toe lnstruclion to Candidates given. on the cover page of the answer book.
2. . All parts of a question should be answered consecutively. Each answer should·stru:t froma fresh page.
3. Mobile p!:i0nes and computers of.any kind shouM not be.used inside the examination halt
4. Use of any. unfair means will result in seyere disciplinary acti.on.
Q. I. Bring out the differences I?etween manufacturing organ,i,zations ar,id! service organi,zations
in a tabul'ar format. [3]'·
Q.2. The Burger D00dl'e restaurant chain pur<chases ingredients foom, four different food:
suppliers. The company wants to eonstruct a new central distr.ibution centre to process.
and package the ingredients before shipping them to their various restaurants, The
supplies transport i,ngrediient items i,r,1, 40--foot truck trailers, each with a capacity of 3·&,000·
lb. The locations of four suppliers A, B, C arid. D and the annual! number of trailer loads
that wiU be transperted: fo t e diswial/lltion centre are shown in the. fol:lo:win table:
• X - coofdinate 200" .. :-100, '250. :soo

' Y - coordinate : 200! 500 • 600· :300
· Annua} no. of trailer loads· 75. , 135
. .
, that will be trali)sported
.
(a}.. Using centre of gravity method, determine a possible location for the distribution
centre ·;.:. '\S ; L \./1.../
(b J The management of Burger doodle was not convinced with location obtained in
Part (a). Hence·they further anal!ysed and, identi.fied three new sites. Now, they
waflt to evaluate these three differelilt sites it ha;S identified for its new distribution
centre relative to the four suppliers A,B,C_ and D mentioned above. The
coordi,nates of the new sites nd r conside9tion are as folJ;o s ,
,·, \ ,) b - sc.:. ',), r:1 ? ·'> ") u '.r c
Site l Site 2 Site 3
X - coordinate 360 420 250
Y - coordinate 180 450 400
Identify the best site f?ased on the load distance method. [7]
ET ZC412 (EC-I Regular) First Semester 20 I 0-20 I I Page 2

An automobile manufacturer is considering a change in an assembly line that should save.

money. du to a reduction in labour and material cost. The change inv_olves the installation
of four new robots that will automatically. install windshields. The cost of the four
robots.,. including installation and, initial programming, is $400,000 Current practice. is
to. amortize the initial! cost of robots over two years. on a straight-line basis. The procesS;
engineer estimates that one full-time technician willi be needed· to monitor, maintain, and
repvogram the robots on, an ongoing basis. This person will cost approximately $60,000
per year Currently, the corn,pany uses· four full-iime empl'oyees on this job and they
each
make about $$2,000· per y,ear. One of these employees fa a material handler, and- this pei:-
son will stiH be needed with the new process. "To complicate matters, the process engineer
estimates that the robots wm apply the windshield sealing matei:-ial in a manner that wilt
result in a savings of $0 25 per windshield installed. How many automobiles needed to be
purchased over the Ftext two years to make the new robots an attractive
investment? Due to the rd'ativety sbon h rizofl, do riot cons,ider the time value of money.
. <?,
., . .
t _ ; :·-:· ! tJ ...1 ,_:
'
[8]
J
Q- ExpJ:ain the new product devel<i>pmenct steps or process wi<tb respect to a new product that
A r.
·- was/ is being:d'eveioped in your, organization:. [6J
Q.5. Identify the various elements of waiti:ng line used for developing a model for service
design. [8]
Q.6-. Identify important toets used fuy bfack belts; gi.ve a bdef everview of each.
*********·*·
ET ZC4 I 2 (EC- I Regular) First Semester 20 I 0-20 l I Page2

/
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on
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ET ZC412 (E -1 Make-up) . First Semester 2009..:2010 Pagel
.·fi.4. The following. table provides. the details regarding the sequence of activiti fo
assembling a part in an automobile manufacturing company.
Task. Immediate Task fun

Predecessor Utnnutes)
A
B, A
- 0.9
0.4
C B 0.6
D C 0.2
E C 0.3
F D,E 0.4
G F 0.7 .\
. .'
H G 1.1
(a) Draw a precedence diagram .

. (b) Assuming that 55 minutes per hour are productive, compute the cycle time
needed to obtain 50 units per hour. \·\
.(c). D termineth :111in um number of workstations required . 4:,\Y
. .
th ,
. (d) .. Assigri ks .to.work.stations using the longest-task-time heuristic \·1
··(e) Calculate utilization of thesolution in Part - D. ·a, ..., · [1OJ S?..,... J
f (a). . (i) Briefly describe th dimensions of quality, fur which a customer/ consumer .
looks in a product.
a (ii). How does the qua1ity of design differ from quality of conformance?
(iii).Differentiate internal d external failure costs.· ··
. .t
· ··
.•
. " ..
S (b)....Djfferentiate between performance specification, .design -specifications, and
11Janufacroring specifications. · . . ·.. · · ' [ 6 + 4 =. l O] I
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ET ZC412 (EC-1 Make-up) First Se(ll:;Ster2009-2010 Page 2 of2
9, To1,& ';1::, i h ovJJ/.. tu_ 0'141ri f3Q lv
I
-
Work-Iittegrated Learning Programmes Division
Fir!i'.t Semester 2009-2010

Course Title : PRODUCTION PLANNING & CONTROL..
Nature of Exam. . Closed Book . . . . . . .
Weightage· : 4<Y1/o No. of Pages = 2-
Duration : 2 Hours No. of ·ons = 7.
est i .
Qu.
_D_a_te_o_f_E_x_a_m _:30/08/2009 (F...;N_.:,') -------- =:
Note: .
I. Please follow all the lns1ruc1ions 10 Candidates given on the c ver page of the answer book.
3. Mobile phones and computers of any kind should not be .used inside ihe examination hall.
4. Use of anv unfair means will result in vere disdplinary a;.:.;on. .. .
Q:t (b). Discuss the difference between manufacturing organization and servic
organization.
. Q. l (b). Discus the framework for managing operations. [3 + 5 = 8.]
, Q.2. What do you understand by vertical integration? How will.it affect the process
decisions? Give suitable examples. [3]
A company is planning to introduce a new product. It must select one product

from three available and has estimated the data.as shown belo . ·· ·
Expected product life.3 vea

. .
Which product would you recommend, basecl o' •
.- # ·
Break even point· · ;
Time to break even
Life time profit·· .:·· :...:.
What are the factors that need t.o b.e considere

equipment ·purchasing? ·'· '',.
.i
q.s. T .&. L, India. Limit d is·g ing to.· ,nstruct..a. new cement plabf witl1 an jQv tment
:.•,. of.about i20 crores and it.has decided upon four.locatioris':in .India. Assume that
, You are the operations manager ofT &L India Limited.,
\Vhat are the fact(?rS you.will consider to evaluate th e four sites {Minimum
a.
l O factors)? · ·
· b. Use the Location Factor Rating method for evaluation and demonstrate the
same, assuming suitable data. [6]
ET ZC4J2 (EC-l Regular) Pagel of2
J
Q.6. Assume .that you·are the production engineer in yc;>ur con1pany. You are entrusted
·with job of designing a repetitive production line. Ass me that the assembly
consists of 9 tasks, which are listed in the table shown below, along with
estimated. task times and the t.asks th.at must be completed before h task has to
is
begin. The &SSembly · line supposed t-0 produce at l ynj.t.s...per day and :Operates
480 minutes a day. ·
-- Task
,·
_}"ask time (sec) ·Preceding task .
A IO -
B . 11 I A
C . 5 8
D 4 8
E 12 .A.
F .. .
. :, C,D
G 7 F
t i
H .. . .E
I .) G,H
D ,c-
· 6.1 Draw the precedence diagram..
( 6.2 Calculate the cycle_ time and theoretical number of work stations.
fl: 6.3 Balance the as.sembly line and calculate the efficiency of e assembly line.
pq (n....(v _ 6A What will happen to the efficiency ifan_.additional workstation is added? [8]
· - Q.7. Explain the impact of quality on productivity. What

and product yield? ·
isthe relation between. quality
Q ·. (q ) B.£P·. tl ::- 6?O :;t>o-

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ETZC412(EC-l R gular) -; (OO /)OO . . Page2of2
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=3 b'f1t:OO -
.,.. •r

Mid-Semester Test
(EC-1 Regular}
Course No-. :ETZC412

Nature of Exam : Closed Book
Weightage :40%
Duration : 2 Hours
Date of Exam . : 04/02/2007 (FN)
Note: .. . ... -:}')}<'.·'.':(.·..
I. Please follow all theInstructions to Candidates given onthe cover page of the answer"book.· ·
2. from
All parts of a question sho1,1ld be answered consecutively. Each answer should start a fresh page..
3. Mobile phones and computers of any
kind should not'be brought inside the examination hall·.
4. Use of any unfair means will result in severe disciplinary action. · ·
Q.L Answer the following questions briefly:

a. Distinguish between Operations and Operations Management Explain the concept of
Operations with a help of a neat sketch.
b. What constitutes "operations at:
i. A bank
ii. A retail store·
iii. A hospital
iv. A cable TV company ....
c. Discuss the ways in, whic;b trade is conducted over ihe internet [4+2+2=8]
· . Q.2. List and explain the four steps of strategy formulation. What role should operations play
in corporate strategy? Name several strategic decisions that involve the operations
function. · [6]
· Q.3. MagTech assembles tape players from four major components arranged as follows:
·..The COJ11po11ents can te

p chased from·three different vendors, who have supbti;i' the
following reliability data: . ·
· Vendors
·Components I 2 ·3
\ .·
A. .. 0.94 0.85 0.92
B 0.86 0.88 '0.90
C 0:90 0.93 0.95
,!•
' I
D 0.93 0.95 0.90
'l
l
,a. If MagTech has decided to use only one vendor t supply all f ur components,
which vendor should be selected? · ·
b. Would your.. decision change if all the· components were assembled in series
"ABCD"? [5]
ET ZC412 (EC-1REGULAR) SECOND SEMES1ER 2006.2007 PAGE2
Q.4. Distinguish between On lihe inspection and Centralized inspection with minimum
four differences. Give 2 examples of each type of inspection. [6]
,. Q.5. An inspector found an ave ge· of 3.9 scratches ip. the exterio paint of each .of
automobiles being prep foshipment to dealers. With this information which control
cha.rt is appropriate and why? Calculate UCL andLCL for the control chart. Take z =2.·
. [4]
The owner of Old-Fashioned Beny Pies, S. Simon., thinking adding a n w line of pies,
which would require leasing new equipment for irionthly payment of $6,QOO.
Varial;>le costs would be $2.00.per pie, and pies -.vould retail for $7.00 each.. ·
a. How many.,pies mu t be sold in order to break even?
b. What would the profit (or loss) be if 1,000 pies are made and sold in a month?.
c. How manyp_ies must be sold to re ze a profit of $4,000? . ·
d; If 2,000 can be sold , and a profit target is $5,000, what price should be' charged per
\..
Q.7. Mohawk Valley Furniture Warehouse has purchased a retail outlet with six _,;..:
departments, as sho n below: 'fhe anticipated number of customers that move

between the departments
· each week is given in the load summary chart ·
From/To '.-. Department

Department ·A B C D $ F
.A 70· ,.
50
-
,,
·
B - JOO
C 70 •..
D 80 -
E ·40 7 30
F 60 100 -
a. Calculate.the nonadjacent l9ads for the layout shown.
b. Revise Mohawk's layout such that nonadjacent loads are minimized.
[5]
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!+
Birla Institute ofTecirnology & Science, Pilani

First Semester 2013-2014
Coursl:', }\Jo. : ET ZC412

Nature of : Closed Book
Exam
Weightage
: 35%
: 2 Hours
No. of Pages =0
No. of Questions = 5
Duration : 08/09/2013 (FN)
Date of Exam
Note:
l. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. All parts of a question should be answered consecutively. Eacb 2JlSWer should start from a fresh page.
Q.l. List the strengths, opportunities, weaknesses and threats that a production industry
may experience by adopting e-business technology. (5]
· .s.Jf{ k
Q.2. Explain the meaning of the terms o/r6Vm design, functig al design and production
design with respect to product design process. [5]
. '
Q.3. A company is developing boiler feed water pumping system. It is essential that the
water be permitted to flow only in one direction i.e. from pump to boiler and not
vice versa. Suggest a suitable design to restrict the chance of liquid flowing back
to just one percent. The non return valves with a reliability of ninety percent are
available. [5]
A dry cleaning unit has recently 'changed management and the new owners want
to revise the current layout. The store performs six main services: (l) laundry,
(2)°dry cleaning, (3) pressing, (4) alterations, (5) delivery, and (6) tuxedo rental.
Current layout is as shown below, where the cross movement is also possible. The
load summary chart gives the current level of interaction between the departments.
Calculate the number of nonadjacent loads for the current l yout. Design an
alternative layout using block diagramming approach to minimize the number of
nonadjacent loads. [1OJ
Load Summary Chart

1
-- ----
2 3 4 5 6
1 0 125 40 0 0
2 0 45 75 0 0
3 0 0 20 ·235 200
4 60 30 10 85 50
5 0 0 0 0 10 Current Layout
6 0 0 40 30 150
.Q.5. Make a process plan in the form of an ass mbly chart for manufacturing an
assembly of rocker arm including a basic forging, tappet, an adjusting screw and a
lock nut. Make and list suitable assumptions. [ l
OJ
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Division First Semester 2012-2013
Mid-Semester Test
(EC-2 Regular)

Weightage : Closed Book
Duration No. of Pages =
: 35%
Date of Exam 2 No. of Questions =
: 2 Hours
Note: 7
: 09/09/2012 (FN)
l. Please follow all the Instructions to Candidates given on the cover page of the answer book.
3. Assumptions made if any, should be stated clearly at the beginning of your answer. Incomplete and ambiguous
answers do not carry any weightage.
Q. I.
Name the type of transformation process in the following cases:
( (a) Hospitals
(b) Transportation
(c) Automobile Manufacturing
(d) Retail Operations
(e) Internet Service [I X5=5]
Q.2( List all the five basic steps of developing the manufacturing strategy. Describe them in
one sentence each. All steps are essential. No Partial Marks. [5]
Q.3. Define the following terms of dimensions of quality in one sentence each.
. Reliability
) Durability
. (c) Serviceability
(d) Responsiveness
(e) Time, & Timeliness [1 X 5 =5]
Q.4.
A glass factory specializing in crystal is developing a substantial backlog, and the firm's
/ management is considering three courses of action: (a) arrange for subcontracting, (b)
begin overtime production, and (c) construct new facility. The correct choice depends
largely on future demand, which may be low, mec:um or high. By consensus,
management ranks the respective probabilities as 0.10, 0.50, and 0.40. A cost analysis
revea I s thee fDect on th a.t 1s s in th e Do II owing ta b I e:
profiIts h own.
Data - Course of Action
Profit (Rs in lakhs)
A= Arrange B= Begin C= Construct
Subcontracting Overtime New Facility
LOW 10 -20 -150
Future
MEDIUM 50 -60 20
Demand
HIGH 50 100 200
t( b 0 -c-;t5
Find the expected value for each course of action and suggest the company the best
decision. [3+2=5]
ET ZC412 (EC-2 First Semester 2012- Page I of2

Regular) 2013
ET ZC4Ji (EC-2 Regular) First Semester 2012-2013 Pa 0 e2
"
Q.5.
The Colonial House Furniture Company manufactures two-drawer oak file cabinets that
( are sold unassembled through catalogues. The company initiates the production of 180
cabinet packages each week. The percentage of good quality cabinets averages 83% per
week, and the percentage of poor quality cabinets that can be reworked is 60%.
11
(a) Determine the weekly product yield of file cabinets. !b
(b) If the company desires a product yield of 174 units per week, what increase in the
percentage of good-quality products must result? '- (2+3=5]
q. ·r l ·"'
Q.6. Calculate the reliability of the following system [5]
/ . 0.90 . 0.85 0.80
0.95 0.90 0.85 ' -

- -
Q.7. For the product layout given below, determine

(a) Bottl neck operation .J3>
r
( (b) Maximum throughput per shift of 4l0 minutes. I O 1

(c) Efficiency of the line for a cycle time of 4 minutes;gv 'i,
(d) Cycle time, if the desired throughput is I 00 unitt h, 7,,-- [l + ]+2+ 1=5]
A(3.Smin) 8(4min) C(2.5min) D(3min).
Legend: A, B, C, D are the operations and the values in the brackets are time.
required carry out the respective operati0J1S. \
**********
"" 'J. l .-b

:. ·
: ;,
ET ZC412 (EC-2
First Semester 2012- Pa0 e ., or2·
Regular) 2013
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Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

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