CONFIDENTIAL, z : EM/JUN 2016/MEM575/KJP585/450 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE INDUSTRIAL MANAGEMENT COURSE CODE : MEMS75/KJP585/450 EXAMINATION JUNE 2016 TIME : 3 HOURS INSTRUCTIONS TO CANDIDATES 1 This question paper consists of three (3) parts : PART A (7 Questions) PART B (5 Questions) PART C (2 Questions) 2 ‘Answer five (5) questions from PART A, ALL questions from PART B and PART C in the ‘Answer Booklet, Start each answer on a new page. 3 Do not bring any material into the examination room unless permission is given by the invigilator, 4 Please check to make sure that this examination pack consists of i) _ the Question Paper ji) an Answer Booklet — provided by the Faculty 6. Answer ALL questions in English. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consisis of 9 printed pages © Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 2 EM/JUN 2016/MEMS75/KJP585/450 PART A (Answer five (5) questions only out of the following seven (7) questions) QUESTION 1 Operation Management is one of the three major functions of any organization and it is generally related to all the other business functions. List down any five (5) of the important trends in business or operations management which help to increase the productivity of a particular business. (5 marks) QUESTION 2 There are seven (7) major factors that affect location decisions. List down two (2) of these factors and elaborate on them. (5 marks) QUESTION 3 Just-in-Time and Lean Operations are sometimes misunderstood as the same philosophy. Explain clearly the concept of JIT and Lean Operations. (5 marks) QUESTION 4 The physical environment in which employees work affects their performance, safety and quality of work life. Explain the quality of lighting in a workplace. (5 marks) QUESTION 5 Describe all four (4) types of cost of quality. Determine the highest cost that will be incurred by a company due to poor products or services. (5 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL, 3 EM/JUN 2016/MEMS575/KJP585/450 QUESTION 6 Comcord Restaurant is a western restaurant located in the Comcord Hotel Kuala Lumpur. The restaurant had received some complaints from the customers since their establishment early of this year. There are 30 complaints on long waiting time, 40 complaints on overpriced menu, 25 complaints on small portion menu, 10 complaints on noisy environment and 5 complaints on unfriendly staff. Based on the complaints, prepare a Pareto Chart that will help the top management of the Comcord Restaurant to prioritize on the crucial problem that need fast countermeasure action. (6 marks) QUESTION 7 The owner of Shud Manufacturing Sdn. Bhd. argues about preventive maintenance, and asked the production line manager why should he fix any machine if there is no breakdown? If you are the production line manager, how would you respond? Elaborate your answer. (5 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 4 EM/JUN 2016/MEMS575/KJP585/450_ PART B (Answer ALL questions) QUESTION 1 ‘Aqua Best Sdn. Bhd. produces beverages products for export. The production of beverages shown in Table Q1: Production of drinking water at Aqua Drop Sdn. Bhd. Table Q1: Production of drinking water at Aqua Drop Sdn. Bhd. Month Jan Feb | Mac | Apr | May | Jun Water gallons ('000) 45 50 Ey 60 58 52 a) Compute the forecasts for each month using exponential smoothing technique with = 0.3 and a=0.8 with an initial forecast for January of 32,000 gallons. (6 marks) b) _ Identify which a gives a better prediction. (4 marks) QUESTION 2 Suria Permata Sdn. Bhd., a manufacturing company making steel pipes is preparing to expand to a new plant and is considering three potential locations for it. The fixed and variable costs for the three alternative locations are presented below. a) Complete a numeric location cost-volume analysis. Determine the breakeven points for each of these locations. (6 marks) b) Indicate over what range each of the alternatives K, P, JB is the low-cost choice (3 marks) c) _ Isany alternative never preferred? Explain. (1 mark) Table Q2: Costs for the three (3) locations Costs Kedah(k) | Pahang(P) | Johor Bahru(JB) | Fixed (RM) 2,500,000 | 2,000,000 3,500,000 | Variable (RM per unit) | 21 25 15 © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL 5 EM/JUN 2016/MEMS75/KJP585/450 QUESTION 3 Wah Kau Sdn. Bhd. had introduced their first high-end cruiser to the market, and the demand recorded is 60 boats per day. There are 200 minutes available per day and given the following information (Table Q3): Table @3 Task Performance Time __| Task Must Follow Task Listed Below A - 1 ~ - B - 1 c : 2 D - 1 E 3 F_ 1 G 1 H 2 I 1 a) Whatis the cycle time? (2 marks) b) Draw the precedence diagram and assign tasks using five workstations. (4 marks) ©) Whats the efficiency of the assembly line, using your answers to (a)? (2 marks) d) _ Whatis the theoretical number of workstations? (1 mark) ) Whats the idle time per cruiser produced? (1 mark) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL 6 EM/JUN 2016/MEMS75/KJPS85/450 QUESTION 4 Alinas Sdn. Bhd. is planning to conduct a survey on a segment of potential product buyers The planning process for preparing to conduct the survey consists of six activities, with procedure relationships and activity time estimates as follows (Table Q4): Table Q4 i Time Description Predecessor | (ps) P| Determine survey objectives - 3 Q__| Select and hire personnel P 5 R__| Design questionnaire Q 3 S$ _| Train personnel QR 6 T _| Select target audience R 4 Lou Make personnel assignments 8.7 | 3 a) Construct a network diagram. (1 mark) b) Determine the earliest and latest activity start and finish times. (6 marks) ©) Determine the critical path and project duration. (2 marks) d) Determine the slack for each activity. (1 mark) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL,CONFIDENTIAL 7 EM/JUN 2016/MEMS75/KJP585/450 QUESTION 5 Housekeeping Room Attendant performs routine duties in cleaning and servicing of guest rooms and baths under supervision of Housekeeping Supervisor. Room attendant promotes a positive image of the property to guests and must be pleasant, honest, and friendly and should also able to address guest requests and problems. Table QS shows the elements and observation time, Based on the union contract, the allowance time for the operation must include 5% of personal time, 10% for fatigue and 6% of delay. Determine the normal time and standard time for the process. (10 marks) Table Q5: Routine duties for Housekeeping Room Attendant Observations (minutes per cycle) Element Performance os Rating (%) | 4 2 3 4 3 Enters and prepares the cn eres 100 os | o7 | 05 | 06 | 05 | | Makes bed. 90 25 | 30 | 27 | 25 | 26 Dusts the room and | Gute 100 1 [18 | 12] 43 | 15 Cleans the bathroom. 95 as | 37 | 38 | 36 | 36 Replenishes guestroom cea cath suppioe, 100 12 | 13 | 12 | 13 | 14 Vacuums and racks the Ty 48 | carpet. 93 16 1.8 1.9 | 1.8 17 (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIAL,CONFIDENTIAL 8 EM/JUN 2016/MEMS75/KJP585/450 PART C (Answer ALL questions) QUESTION 1 The MechE Students Club purchases tshirts emblazoned with the faculty name and logo from a vendor in Penang. The vendor sells the tshirts to the Club for RM34.99 a piece. Setup cost is RM135 per order. The annual holding cost for the tshirts is RM3.85 per unit per year. ‘The Club estimates that 3100 tshirts will be sold during the upcoming academic year. a) Determine the optimal order quantity using the basic EOQ inventory model (2 marks) b) How many orders will there be in a year? (2 marks) ©) Whatis the annual average inventory level? (1 mark) d) What is the reorder point if the lead time is 3 business days? Assume that there are 260 business days a year. (1 mark) e) One type of the main inventory management costs has not been included in calculating the optimal order quantity. What is it and why has it been left out? (2 marks) f) The vendor has recently offered a discount scheme for the tshirts to the Club as shown in Table Q1. The annual holding cost is 11% of the unit price P (refer Table Q1), Calculate the new optimal order quantity. (2 marks) Table Q1 Discount Discount ‘count Discount No. Quantity (%) Price (P) | 1 0to.499 No discount | RM34.99 2 500 to 1999 3 RM33.94 (© Hak Cipta Universiti Teknolog! MARA CONFIDENTIAL,CONFIDENTIAL, 9 EM/JUN 2016/MEMS75/KJP585/450 QUESTION 2 ‘A product can be assembled by a worker in 8 working hours. The initial sale volume is 200 units, and in the subsequent 5 months the order will increase by 100 units every month (200-300-400-500-600-700). A company has 10 salaried workers and it intends to hire some temporary workers to cope with the increasing customer order. The salary of workers is RMS/hour during normal working hours and RM7.50 during overtime. The normal working day is 8 hours, 20 days per month and maximum overtime is 50% of daily worktime. Inventory holding cost is RM2.00 per day, hiring cost is RM200/month and termination allowance is RM500/month. ‘Any shortages of production will be complemented by supply from a subcontractor at RM80 er unit ‘What is the total production cost if the company does not wish to employ temporary workers. Will there be any financial advantage if the management decide to increase the work force by 50%. (15 marks) END OF QUESTION PAPER (© Hak Cipta Universiti Teknologi MARA, CONFIDENTIAL