Candidate No.

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S. K. PATEL INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES

PRODUCTION AND OPERATIONS MANAGEMENT (CC 206)
MID TERM EXAMINATION
MBA I Semester II Marks: 60
Time: 9.30 to 12.00 Date: 11/04/2017
Instructions:
1. This paper has FIVE questions.
2. Your answer should be precise and to the point.
3. Give examples and make diagrams wherever necessary.
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Question 1 Answer the following: [12]

A. What is work breakdown structure? How do the companies utilize it?
B. What are the two major variables that are used to improve productivity? Explain
with examples.
OR
B. How does the OM strategy change during a product’s life cycle?

Question 2 Answer the following: [12]

A. What is vertical integration? Explain forward and backward integration with examples.
B. Explain the MRP structure in detail.
OR
A. What are the disadvantages of implementing an ERP?
B. What are the various types of risks involved in supply chain?

Question 3 Answer the following: [12]

A. Explain strategy of process focus with respect to newspaper industry. What are
the benefits of this strategy?
B. Explain the concept of quality function deployment. How is it deployed in an
organisation?
OR
A. Explain concept of computer integrated manufacturing, with examples.
B. Explain the four broad categories of “causes” to structure cause-and-effect diagram.

Question 4 Answer the following: [12]

A. An operations manager narrowed the search for a new facility location to four
communities. The annual fixed costs (land, property taxes, insurance,
equipment, and buildings) and the variable costs (labor, materials, transportation
and variable overhead) are as follows:
Community Fixed Costs per Year Variable Costs per Unit
A Rs. 1,50,000 Rs. 62
B Rs. 3,00,000 Rs. 38
C Rs. 5,00,000 Rs. 24
D Rs. 6,00,000 Rs. 30

Using break-even analysis, calculate the break-even quantities over the relevant
ranges. If the expected demand is 15,000 units per year, what is the best
location?
OR
 A. A firm wishes to find a central location for its service. Business forecasts indicate
travel from a central location to Bangalore on 20 occasions per year. Similarly, there
will be 15 trips to New Delhi and 30 trips to Ahmedabad. The x, y-coordinates are
(11.0, 8.5) for Bangalore, (12.0, 9.5) for New Delhi and (4.0, 1.5) for Ahmedabad.
What should be central location based on the three demands?

Question 5 Answer the following: [12]

The MS 800 car is to be assembled on a conveyor belt. Five hundred cars are required
per day. Production time per day is 420 minutes, and the assembly steps and times for
the wagon are given below. Find the balance that minimizes the number of
workstations, subject to cycle time and precedence constraints.