Course Outline 362

COMSATS University Islamabad, Lahore Campus
Department of Management Sciences

COURSE HANDBOOK
MGT-362
Production and Operations Management
Bachelors of Business Administration

(BSBA)
Session 2021-2022
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Course Description
Operations Management is concerned with the management of resources and activities that produce and deliver
goods and services for customers. Efficient and effective operations can provide an organization with major
competitive advantages since the ability to respond to customer and market requirements quickly, at a low cost, and
with high quality, is vital to attaining profitability and growth through increased market share. As competition
becomes fiercer in an increasingly open and global marketplace, a company's survival and growth become greatly
contingent on its ability to run its operations efficiently and to exploit its resources productively.
This course provides a clear, authoritative, well structured and interesting treatment of operations management as it
applies to a variety of businesses and organizations (manufacturing and services). It provides both a logical path
through the activities of operations management and an understanding of their strategic context. More specifically,
this course is:
 Strategic in its perspective. It is unambiguous in treating the operations function as being central to
competitiveness.
 Conceptual in the way it explains the reasons why operations managers need to take decisions.
 Comprehensive in its coverage of the significant ideas and issues which are relevant to most types of
operation.
 Practical in that the issues and challenges of making operations management decisions in practice are
discussed.
Objectives
Upon completing this course, students should be able to:
 understand the strategic role of operations management in creating and enhancing a firm’s competitive
advantages and tactical operations management issues and their relationship to the other functional areas of
the firm.
 understand the tradeoffs among different types of goods and services operations systems in terms of key
characteristics, management tasks, organization and control, and impact on the strategy and direction of the
firm.
 Demonstrate awareness and an appreciation of the importance of the operations and supply management to
the sustainability of an enterprise.
 Demonstrate an understanding of the concept of aggregate planning and the problems involved in inventory
management and materials requirements planning.
 Develop basic materials requirement schedules.
 Demonstrate an understanding of the concepts of operations scheduling.
Reading and Lecture Notes

 Slack N, Chambers S and Johnston R. (2007), Operations Management, 5th Edition, FT/Prentice-Hall (4th
Edition is also satisfactory).
 Slack N and Lewis M. (2002), Operations Strategy, Harlow, FT Prentice-Hall (Newest Edition)]
 Chase, Aquilano, and Jacobs. Operations Management for Competitive advantage, McGraw-Hill, Ninth
edition.
 Heizer J & Render B. (2014), Operations Management: Sustainability and supply chain management, 11th
Edition, Pearson.
Students are also expected to read papers in relevant journals such as Journal of the Operational Research Society,
European journal of Operations Research, Omega, Interfaces, Management Sciences and Operations Research, plus
any seminar papers. Some research papers from renowned international journals will be provided in the class also.
Lecture notes, handouts, slides, and case studies will be provided to a class through a course representative.
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Assessment
There will be three parts of assessment:
a). Assignments
A group Coursework 10%

Individual Coursework 10%
Total 20%
In some cases, students may be assigned to groups and are assessed as a group for an element of coursework. Where
a group member does not fully contribute to a group coursework report, the other member should inform the faculty
member responsible, and an individual grade may then be awarded to that student. Any individual working on a
group coursework may be given an oral examination to identify their contribution to the group grade.
b). Examination 75%

The breakup is as follows:
Midterm 25
Final Exam 50%
c). Quizzes 5%
Plagiarism
It is an academic offence for a candidate to commit any act to obtain for him/her, or another, unfair advantage with a
view to achieving a higher grade or mark than his/her abilities would otherwise secure. In case of any such attempt
to convey deceitfully the impression of acquired knowledge, skills, understanding, or credentials, the University
shall have the authority to confirm the recommendation for permanent exclusion or to impose one of the following
penalties:
 To permit the student to repeat the work, subject to receiving only the minimum pass mark appropriate to
the piece of work;
 To award zero for the work in question;
 To award zero for the whole coursework or exam;
 To disqualify from the course/semester;
 To exclude the student permanently from the university; where the offence is detected before the final
assessment is completed;
 Not to award the degree, where the offence is detected after the final assessment has been completed.
Deadlines
In relation to a written coursework, any request for extension of a deadline must be agreed with the lecturer
concerned - before that deadline is reached. The request shall be made in writing, which the concerned lecture must
sign. Work not completed by the stated deadline and without an agreed extension will lose 10% of the earned marks
if it is between 1 and 7 days late (for example a mark of 75% will be reduced to 65%). Work more than 7 days late
and without an agreed extension will be awarded zero.
Code of teaching Practices

 A student with a complaint about a course should first approach the course instructor. If the instructor fails
to resolve the problem to the student’s satisfaction the complaint should then be taken up, if necessary, with
the head of the department of management sciences.
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 Lectures are compulsory. Students cannot expect staff to take their efforts seriously if they attend only
occasionally. Case studies are intended to support the lectures and students are strongly advised to attend
and be adequately prepared.
 Course instructor can only be seen by appointment through e-mail.
 Assessment of written work will normally be available to students within two weeks of submission,
excluding vacations, unless otherwise specified by the lecturer.
 Students will be given an opportunity to comment on how helpful they find lectures through the use of
formal module questionnaires.
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Lecture Details
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Week 1
Lecture 1 & 2
Operations Management
Description
Operations management is about how organizations produce goods and services. Everything you wear, eat, sit on,
use, read or knock about on the sports field comes to you courtesy of the operations managers who organized its
production. Every book you borrow from the library, every treatment you receive at the hospital, every service you
expect in the shops and every lecture you attend at university – all have been produced. While the people who
supervised their ‘production’ may not always be called operations managers that is what they really are. And that is
what this book is concerned with – the tasks, issues and decisions of those operations managers who have made the
services and products on which we all depend. This is an introductory chapter, so we will examine what we mean by
‘operations management’, how operations processes can be found everywhere, how they are all similar yet different,
and what it is that operations manager’s do to serve their customers
Lecture Contents:
➤ Introduction to the operations management
➤ Why is operations management important in all types of organization?
➤ The input–transformation– output process?
➤ The dimensions of operations. Volume, variety, variation, and visibility and its implications
➤ Activities of operations management? Challenges to operation managers
Recommended Reading
 Chapter 1.
Operations Management
(sixth edition) Nigel Slack, Stuart Chambers, Robert Johnston
Important cases/examples to read

o Pret A manger
o Two very different hotels
o All Critical commentaries and worked examples given in the text of chapter 1
Week 2
Lecture 3 & 4
Operations Performance
Key Questions:
➤ Why is operations performance important in any organization?
➤ How does the operations function incorporate all stakeholders’ objectives?
➤ What does top management expect from the operations function?
➤ What are the performance objectives of operations and what are the internal and external benefits which are
derived from excelling in each of them?
➤ How do operations performance objectives trade off against each other?
Lecture contents
 The vitality Operations performance
 The performance objectives:
o The quality objective
o The speed objective
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o The dependability objective

o The flexibility objective
o The cost objective
 Trade-offs between performance objectives
Recommended Reading
 Chapter 2.
Operations Performance
(sixth edition)
Nigel Slack
Stuart Chambers
Robert Johnston
Important Cases/Examples to read

o When speed means life or death page 43
o Dabbawalas hit 99.9999% dependability page 44
o Flexibility and dependability in the newsroom page 47
o Critical commentary and worked examples given in the text
Week 3
Lecture 5 & 6.
Operations Strategy
Key Questions:
➤ What is strategy and what is operations strategy?
➤ What is the difference between a ‘top-down’ and a ‘bottom-up’ view of operations strategy?
➤ What is the difference between a ‘market requirements’ and an ‘operations resources’ view of operations
strategy?
➤ How can an operations strategy be put together?
Lecture Contents
 What is strategy and what is operations strategy?
 The four-stage model of operations contribution and its criticism
 The ‘top-down’ and ‘bottom-up’ perspectives
 The market requirements and operations resources perspectives
 The process of operations strategy
 The product/service life cycle influence on performance objectives
Recommended Reading
 Chapter 3.
Operations Strategy
(sixth edition)
Nigel Slack
Stuart Chambers
Robert Johnston

o Giordano Page 68
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o Amazon, what exactly is your core competence? page 74

o Sometimes any plan is better than no plan Page 77
o Critical commentary and worked examples given in the text
Week 4
Lecture 7 & 8.
Process Design
All operations managers are designers, because design is the process of satisfying people’s requirements through the
shaping or configuring products, services, and processes. This part of the course looks at how managers can manage
the design of the products and services they produce and the processes that produce them. At the most strategic level
‘design’ means shaping the network of operations that supply products and services. At a more operational level it
means the arrangement of the processes, technology and people that constitute operations processes.
Key Questions:
➤ What is process design?
➤ What objectives should process design have?
➤ How do volume and variety affect process design?
➤ How are processes designed in detail?
Lecture Contents
o What is process design?
o What effects should process design have?
o Process types ( Manufacturing vs Services Processes)
o The volume–variety effect on process design
o Detailed process design
o Little’s Law and its application
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Recommended Reading
 Chapter 4.
Slack N, Chambers S and Johnston R. (2007), Operations Management, 5th Edition, FT/Prentice-Hall (4th

o Heathrow delays caused by capacity utilization Page 107
o Solved examples given in the text
Applications and problems solving
Week 5
Lecture 9 & 10.
Layout Design
Key Questions
Layout decisions entail determining the placement of departments, work groups within the departments,
workstations, machines, and stock-holding points within a production facility. The objective is to arrange these
elements in a way that ensures a smooth work flow (in a factory) or a particular traffic pattern (in a service
organization). In our treatment of layout, we examine how layouts are developed under various formats (or work-
flow structures). Our emphasis is on quantitative techniques, but we also show examples of how qualitative factors
are important in the design of the layout. Both manufacturing and service facilities are covered.
Lecture Contents
 Basic Production Layout Formats
o Process layout defined
o Product layout defined
o Group technology (cellular) layout defined
o Fixed-position layout defined
 Process Layout
o Computerized layout techniques—CRAFT CRAFT defined
o Systematic layout planning Systematic layout planning (SLP) defined
 Product Layout
o Assembly lines Workstation cycle time defined
o Assembly-line balancing Assembly-line balancing defined
o Splitting tasks Precedence relationship defined
 Group Technology (Cellular) Layout
o Developing a GT layout
o Virtual GT cells
 Fixed-Position Layout
Recommended Reading
Chapter 7
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Additional resources will be provided by the instructor before the lecture.
Week 6 & 7
Lecture 11, 12, 13, and 14
Supply Chain Management
Key questions
➤ Why should an organization take a total supply network perspective?
➤ What is involved in configuring a supply network?
➤ Where should an operation be located?
➤ How much capacity should an operation plan to have?
Lecture Contents
 Introduction to the supply network perspective
 Strategic importance
 Configuring the supply network
 The Bullwhip effect and its causes
 Manufacturing vs. Services supply chains
 The location of capacity
 Long-term capacity management
Recommended Reading
Chapter 6
Chapter 11
Edition, Pearson.

 Developing nations challenge Silicon Valley
Slack N, Chambers S and Johnston R. (2007), Operations Management, 5th Edition, FT/Prentice-Hall page
161
 The Tata Nano finds a new home
Slack N, Chambers S and Johnston R. (2007), Operations Management, 5th Edition, FT/Prentice-Hall page
147
Week 9, &10
Lecture 15, 16, and 17, and 18
Inventory Management
Key questions
➤ What is inventory?
➤ Why is inventory necessary?
➤ What are the disadvantages of holding inventory?
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➤ How much inventory should an operation hold?

➤ When should an operation replenish its inventory?
➤ How can inventory be controlled
Lecture contents
 The importance of inventory
o Functions and types of inventory
 Managing inventory
o ABC analysis
 Inventory models
o Independent vs. dependent demand
o Holding, ordering and setup costs
 Inventory models for independent demands
o The basic Economic order quantity
o Reorder points
o Production order quantity model
o Quantity discount models
 Probabilistic models and safety stock.
Recommended Reading
Chapter 12
Chapter 12, 13
Edition, Pearson.
Additional reading material will also be provided by the lecturer before lecture
Week 11, & 12

Lecture 19 20, 21, 22 and 23
Material Requirements Planning (MRP)
Key Questions
 Materials requirements planning (MRP) is an approach to calculating how many parts or materials of
particular types are required and what times they are required.
Lecture Contents
 Dependent Inventory Model Requirements
o Master Production Schedule
o Bills of Material
o Inventory Record File
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o Purchase Orders Outstanding

o Lead times for Components
 MRP Structure
 MRP Management
 Lot-sizing Techniques
Recommended Reading
Chapter 14, & Supplement to chapter 14
Chapter 14
Edition, Pearson.
Additional reading material will also be provided by the lecturer before lecture
Week 13
Lecture 23, 24, and 25
Lean Management
Key questions
➤ What is lean synchronization?
➤ How does lean synchronization eliminate waste?
➤ How does lean synchronization apply throughout the supply network?
➤ How does lean synchronization compare with other approaches?
Lecture Contents
 Introduction
 What is lean synchronization?
 Eliminate waste
 Lean synchronization applied throughout the supply network
 Lean synchronization and other approaches
Recommended Reading
Chapter 15
Chapter 16
Edition, Pearson

Lean hospitals
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Edition is also satisfactory). Page 440
Operations in practice Toyota
Edition is also satisfactory). Page 440
Week 14
Lecture 26, 27 & 28
Project Planning and Management
Key questions
➤ What is a project?
➤ What makes project management successful?
➤ How are projects planned and controlled?
➤ What is project planning and why is it important?
➤ How can the techniques of network planning help project management?
Lecture Contents
 What is a project?
 Successful project management
 The project planning and control process
 Network planning
Recommended Reading
Chapter 16
Week 15
Lecture 29, & 30
Scheduling
Key Questions
 The importance of Scheduling
 Scheduling issues
Lecture Contents
 The importance of short-term scheduling
 Sequencing jobs
o Priority rules for sequencing jobs
o Critical Ratio
o Johnson’s rule
Recommended Reading
Will be provided by the lecturer
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Assignments
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Assignment No 1
Group Assignment
WORTH 10% OF TOTAL MARKS FOR THE COURSE
SUBMISSION DATE: FRIDAY 14th OF November 2017 BEFORE 4PM
Late work will be penalized by 10% for submission up to one week late and will not be marked
after that. Extensions may in certain circumstances be given but only if you contact the lecturer
or before the deadline with a valid reason. Any evidence of collusion or collaboration will be
dealt with under the University rules for plagiarism.
Maximum number of words: 3500, (excluding graphs tables and references IF you plan to
include/use these)
Project Brief
Part a)
Visit and observe some facility such as, restaurants, cafés or somewhere that food is served. Compare them in terms
of the Volume of demand that they have to cope with, the Variety of menu items they service, the Variation in
demand during the day, week and year, and the Visibility you have of the preparation of the food. Think about and
discuss the impact of volume, variety, variation and visibility on the day-to-day management of each of the
operations and consider how each operation attempts to cope with its volume, variety, variation and visibility .
Part b)
Outline how you would interpret and measure the five performance objectives for the chosen facility.
 Quality
 Speed
 Dependability
 Flexibility
 Costs
Part c)
Discuss whether the layout, process technology and job design are appropriate for the demands made on the
operation as discussed above.
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Assignment No 2
Individual Assignment
WORTH 10% OF TOTAL MARKS FOR THE COURSE
SUBMISSION DATE: FRIDAY 14th OF December 2017 BEFORE 4PM
Late work will be penalized by 10% for submission up to one week late and will not be marked
after that. Extensions may in certain circumstances be given but only if you contact the lecturer
or before the deadline with a valid reason. Any evidence of collusion or collaboration will be
dealt with under the University rules for plagiarism.
Maximum number of words: 2500, (excluding graphs tables and references IF you plan to
include/use these)
Project Brief
“Practika” is a newly established known brand that sells variety of furniture and tools to both
consumers and businesses. The main store is located in the area of Main Boulevard near liberty
market, Lahore and most of their business is generated from this area. The manager of the
company, Umair, has been thinking for quite a while now how to grow the business further,
although business has not been that bad.
Umair has been doing a lot of online shopping recently buying books on Amazon and he even
recently bought a pair of jeans from Levi’s online. Whilst buying the pair of jeans he suddenly
had what he thinks might be a good idea “what if we started selling our products online”. He
typed the words “furniture” in Google and found that there were a number of other companies
that were already selling products online. He was not surprised by the fact that some of the big
furniture retailers such as “Interwood”, and “workman” were already selling such types of
products online. He was however surprised to find that there were a number of other retailers,
whom he would not usually regard as competitors that were selling online. He has never heard of
some of these retailers either; most of them were virtual stores only. He visited some of these
websites but was disappointed by the web design and the “service” provided by the e-tailers. His
first thought was “it’s not as good as AMAZON” {he buys a lot of products from Amazon}.
Then he wondered “do they sell Furniture on OLX” and he went on OLX and found that one
could buy old and new products. On OLX he decided to find out if he could buy the same tools
that they were selling in his store. He nearly fell off his chair when he found out that it was
cheaper to buy some of the tools on OLX than to buy them from his store. Another dark thought
crossed his mind immediately, what if his core group of customers decided to use the Internet to
buy such tools. He immediately sent a text message to both Waqas and Amir, who are his two
assistants, informing them that he wanted to arrange to meet the following morning. During the
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meeting, Umair explained to Waqas and Amir about his idea of selling some of their products
online. Amir thought that it was a good idea but unsurprisingly stated that he did not have the
skills to develop a website although he regularly uses the Internet at work and at home and does
a lot of online shopping. Waqas then asked “do people really buy furniture and tools online; I
thought that consumers only bought books and CDs online”. Umair said that there were a
number of retailers that were already selling such products online. Umair then said “all this will
change, consumers are changing, even I have bought some trousers online, I used to only buy
CDs and books online”
He also explained that he found that some of the retailers online were selling some of their tools
cheaper than they were selling these in their store. Waqas responded to that by saying that they
would have to be extremely competitive online perhaps selling some products cheaper than in
our store. Amir then said “what if some of our customers find out that we are selling the same
stuff cheaper online”. Then Umair came up with another idea “what if we have a website with a
different name where customers cannot find out that it is “Practika” that is selling these
products”. Both Waqas and Amir thought that this could be a good idea but they were not too
sure of the implications that this would have on the current business structure and process. There
was also some concern about the management of an online store and that both were extremely
already busy with their current responsibilities. All three recognised that online shopping
represented a threat but also an opportunity for the business. They decided that they should mull
over this idea for a while but that it was important for them to think about this seriously.
Amir and his associates have decided that they need help to fully understand the market potential
of Internet shopping. They are starting to realise that it is not simply a matter of setting up a
website and that customers will start buying online. They are interested in the challenge of
integrating Internet shopping within the business model. At the same time, they also are a bit
concerned about the potential disruptive effect that such a strategic change will have and whether
it is worth it.
Your task is to write a report for the company that looks into the strategic implications of the
idea of online retailing for Practika.
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PAST PAPERS
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COMSATS - Lancaster Dual Degree Programme

COMSATS Institute of Information Technology Lahore
Sessional 1 – Spring 2016

Course Title: Production and Operations Management Course Code: Mgt 362 Credit Hours: 3
Course Instructor/s: Nayyar Butt Programme Name: BSBA (
Semester: 6 th
Batch: Section: Date:
Time Allowed: Semester 60 minutes Maximum Marks: 10
Student’s Name: Reg. No.
Important Instructions / Guidelines:
 Attempt both questions.

Question No. 1 (5 marks)
What managerial challenges do service present that manufacturing does not? Also discuss in brief the possible
implications of these challenges for operations management.
Question No2. (5 marks)

Three managers from a large retail bank (the type of bank that you use) were discussing the processes that they
managed. They were managers of a call centre that dealt with customer enquiries, a manager running a voucher
processing centre that scanned cheques, and a manager who dealt with ‘high net worth’(rich) clients. This is what
they said.
1. Call Centre Manager: ‘My biggest issue is the inbound calls screen. That tells me the number of calls being
handled by the operators and the number queuing. Monday morning just after 9 am the screen is going
crazy, that’s when we are at our busiest. Sometimes during the night shift it’s a real surprise when the
phone rings. The next biggest issue is staff turnover as it takes usually four weeks to recruit and similar
time to train someone as we look to handle fifteen basic banking enquiries from our customers and people
need a fair amount of background knowledge.
2. Voucher Processing Manager: ‘It’s really about keeping the cheque encoding machines rolling. Cheques
come to us by couriers from branches in a wide geographical area and we process them through four large
machines. They start arriving around lunch time and carry on until around 7 pm. Monday is our busiest day
as shopkeepers deposit their weekend takings. Sometimes running up to Christmas it can be manic and we
really struggle to get the work out before cut-off time. If a machine breaks down on the Monday before
Christmas we are in real difficulties’.
3. High Net worth Banking Manager: ‘I guess flexibility is the key word. We have relatively few customers,
but they are extremely wealthy and demanding. We never know what the next phone call brings but we
have to be able to deal with it because if we can’t we know someone else will. Sometimes it is a small
query but the customer will ask for their regular point of contact, sometimes it is a really big issue and one
of pour account executives will have to get over to the customer’s workplace-or often their home-straight
away. It is the personal touch that rally matters’.
Question
Determine the similarities and differences between the three processes using the 4V’s approach.
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Sessional 2 – spring 2015

Course Title: Production and Operations Management Course Code: Mgt 362 Credit Hours: 3(3,0)
Course Instructor/s: Nayyar Butt Programme Name: BSBA
Semester: 6th Batch: Section: Date:
Time Allowed: Semester 1Hours Maximum Marks: 10
 Attempt all the questions.

Question No. 1. Using the information contained in the table shown, do each of the following:
a. Draw a precedence diagram (marks 2)

b. Assuming an eight hour workday, compute the cycle time needed to obtain an output of 400 units per day.
(marks 1)
c. What is minimum number of stations possible? (marks 1)
d. Assign tasks to work stations according to greatest number of following tasks. In case of a tie, use the
tiebreaker of assigning the task with the longest processing time first. (marks 2)
e. Compute the resulting percent idle time and efficiency of the system. (marks 1)
Task Immediate follower Task time in minutes

a b 0.2
b e 0.2
c d 0.8
d f 0.6
e f 0.3
f g 1.0
g h 0.4
h end 0.3
Question No 2. Surgery is a classic example of fixed position layout where patients remain stationary with surgeons
and other theatre staff performing their task around the patient. But this idea has been taken a step further by one
surgeon who moves continually between two theatres. While he is operating on a patient in one theatre, his
anaesthetist colleagues are preparing a patient for surgery in another theatre. After finishing with the first patient, the
surgeon ‘scrubs up’, moves to the second operating theatre and begins the surgery on the second patient. While he is
doing this the first patient is moved out of the first operating theatre and the third patient is prepared. The surgeon
devised this method of overlapping operations in different theatres because he claims he was frustrated at wasting
his time drinking tea while patients were being prepared for surgery. ‘If you were running a factory,’ he says, ‘you
wouldn’t allow your most important and most expensive machine to stand idle. The same is true in a hospital.’
Currently used on hip and knee replacements, this layout would not be suitable for all surgical procedures. But since
its introduction the surgeon’s waiting list has fallen to zero and his productivity is doubled.
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Questions
a. What do you think are the advantages and disadvantages of this arrangement when compared with the
conventional layout of one surgeon remaining in one operation theatre? (2 marks)
b. The surgeon in question encountered some resistance from his colleagues when introducing this new
layout. Why do you think some colleagues were unwilling to try out the new layout? (2 marks)
Question No 3. What is Bullwhip effect? Briefly explain the causes of Bullwhip effect and how it can be avoided?
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Sessional I
Course Nayyar Butt Programme Name: BSBA
Time Allowed: 1 Hour Maximum Marks: 10
Question No1
With a vision that explicitly states its ambition to be ‘the best and the biggest world brand in apparel retailing’,
Giordano is setting its sights high. Yet it is the company that changed the rules of clothes retailing in the fast
growing markets around Hong Kong, China, Malaysia and Singapore, so industry experts take its ambitions
seriously. Before Giordano, up-market shops sold high-quality products and gave good service. Cheaper clothes
were piled high and sold by sales assistants more concerned with taking the cash than smiling at customers. Jimmy
Lai, founder and Chief Executive of Giordano Holdings, changed all that. He saw that unpredictable quality and low
levels of service offered an opportunity in the casual clothes market. Why could not value and service, together with
low prices, generate better profits? His methods were radical. Overnight he raised the wages of his salespeople by
between 30 and 40 per cent, all employees were told they would receive at least 60 hours of training a year and new
staff would be allocated a ‘big brother’ or ‘big sister’ from among experienced staff to help them develop their
service quality skills. Even more startling by the standards of his competitors, Mr Lai brought in a ‘no-questions-
asked’ exchange policy irrespective of how long ago the garment had been purchased. Staff was trained to talk to
customers and seek their opinion on products and the type of service they would like. This information would be
immediately fed back to the company’s designers for incorporation into their new products. How Giordano achieved
the highest sales per square metre of almost any retailer in the region and its founding operations principles are
summarized in its ‘QKISS’ list. ● Quality – do things right.
● Knowledge – update experience and share knowledge.
● Innovation – think ‘outside the box’.
● Simplicity – less is more.
● Service – exceed customers’ expectations.
Questions ` (3+3 marks)
1. In what way did Mr Lai’s experiences change the market position of his Giordano operation?
2. What are the advantages of sales staff talking to the customers?
Question No2. Critically discuss the implications of the ‘four Vs’ (Volume, variety, variation, and visibility) on
operations.. (4 marks)
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Sessional II
Time Allowed: 1.5 Hours Maximum Marks: 15
Question No 1:
Walters Company management wants to arrange the six departments (Table 1) of its factory in a way that will
minimize interdepartmental material handling cost. They make an initial assumption (to simplify the problem) that
each department is 20 x 20 feet and that the building is 60 feet long and 40 feet wide. The inter-departmental load
summary is given in table 2
Table 1. Description and relative positioning of the departments
Area A Area B Area C
Assembly Department(1) Painting Department(2) Machine Shop Department (3)
40’
Receiving Department (4) Shipping Department (5) Testing Department (6)
Area D Area E Area F

60’
Table 2. Number of load per week
Department Assembly Painting Machine Receiving Shipping Testing

(1) (2) Shop (3) (4) (5) (6)
Assembly(1) 50 100 0 0 20
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Painting (2) 30 50 10 0
Machine 20 0 100
Shop (3)
Receiving(4) 50 0
Shipping (5) 0
Testing(6)
Walters Company assumes that a forklift carries all inter-departmental loads. The cost of moving one load between
adjacent departments is estimated to be $1. Moving a load between nonadjacent departments costs $2.
Requirement:
a. Develop an initial schematic diagram showing the sequence of departments through which parts must
move (2 marks)
b. Determine the cost of this layout (2 marks)
c. Suggest improvements in the existing layout by minimizing the material handling cost.
(4 marks)
Why supply chain risk is something that companies and their executives should be worrying about now?
How can supply chain risk be eliminated if the future can’t be predicted?
25

Terminal Exam Fall 2016
Time Allowed: 3Hours Maximum Marks: 50
Question No 1. Consider the warehouse with the following 2-dimensional lay-out. Distances in meters are indicated
with numbers next to arrows. An example “In” route for putting a product in a grid indicated by “x” is given. “Out”
routes are similar.
In
x Out
The (horizontal) travelling speed is 15km/hour. The time to pick an item is 5 SECONDS
Four product types are stored and the relevant information is given below.
product # of grids total loads moved per
required (mj) day (pj)
1 3 210
2 4 400
3 3 210
4 2 50
Determine an optimal product/grid allocation. (Marks 10)
26
Question No2. Consider the following Vehicle Routing Problem (VRP) with ten customers. Note that we assume
that distances are symmetric. That is, the distance from i to j and from j to i are equal for any i and j, which is why
only the part of the distance matrix under the diagonal is given.
Note that same graphic follows twice, as it may be useful in deriving your answers.
Vehicle capacity = 35
Maximum trip length = 30
Index number
1
2 Demand 9
3 11
4 6
14 Depot
5
6 16
14
7
8 3 9
1 4
10
16
Vehicle capacity = 35
Maximum trip length = 30
Index number
1
2 Demand 9
3 11
4 6
14 Depot
5
6 16
14
7
8 3 9
1 4
10
16
27
Distance matrix
1 2 3 4 5 6 7 8 9 10
1
2 7.4
3 9.4 2.3
4 10.9 4.1 2.3
5 10.1 12.9 13.7 15.4
6 10.3 10.7 10.9 12.0 3.7
7 12.1 11.8 11.4 12.3 6.0 2.3
8 14.3 8.2 7.3 6.1 13.8 10.0 8.4
9 16.0 15.5 15.9 16.6 5.5 3.7 3.0 10.4
10 17.1 9.5 9.2 7.5 11.2 7.7 5.7 5.5 7.0
Depot 8.7 6.2 7.4 8.8 7.7 7.0 6.1 6.9 9.7 9.1
a) Complete the savings matrix below, which you will use in part b of this question. Note that five values are
missing. (5 marks)
1 2 3 4 5 6 7 8 9 10
2 7.5
3 6.7 11.3
4 6.6 10.9 13.9
5 6.3 1.0 1.1
6 3.5 3.8 11.0
7 2.7 0.5 2.1 7.8 10.8
8 1.3 4.9 7.0 9.6 0.8 3.9 4.6
9 2.4 0.4 1.2 1.9 11.9 13.0 12.8 6.2
10 0.7 7.3 10.4 5.6 8.4 9.5 10.5 11.8
28
(b). Find a solution (with trip length and load for each route) using the Clarke-Wright savings method. You need to
provide an explanation as well! (5 marks)
(c). Find a solution (with trip length and load for each route) using the sweep heuristic, starting with a route that first
visits customer 1 and sweeping anti-clockwise (towards customer 2). Use the simple variant that visits customers in
the order in which they are swept. (5 marks)
You need to provide an explanation as well!
29

Time Allowed: 1 HOUR Maximum Marks: 10
Question 1.
What is a process design? What objective should process design have? and how do volume and variety
affect process design? (2+3)
“Television news is big business. Satellite and cable have helped boost the popularity of 24-hour news
services. But news perishes fast. A daily newspaper delivered one day late is particularly worthless. This
is why the news channels like GEO has to ensure that up-to-date news is delivered on time, every time.
Channels ability to achieve high levels of dependability is made possible by the technology employed in
news gathering and editing. At one time news editors would have to schedule a video-taped report to start
its countdown five seconds prior to its broadcasting time. With new technology the video can be started
from a freeze-frame and will broadcast the instant the command to play is given. In addition, technology
allows them the flexibility to achieve dependability, even when news stories break just before
transmission.
In hours before scheduled transmission, journalists and editors prepare an ‘inventory’ of news items
stored electronically. The presenter will prepare his or her commentary on the Autocue and each item will
be timed to the seconds. If the team needs to make a short term adjustments to the planned schedule, the
news studio’s technology allows the editors to take broadcasts live from journalists at their locations, on
satellite ‘takes’, directly into the program. Editors can even type news reports directly onto the Autocue
for the presenter to read as they are typed- nerve-racking, but it keeps the program on time.”
(Slack N, Chambers S, Johnston R; 2007)
Question 2.
What do the five performance objectives mean for an operation such as the GEO’s newsroom? 5
30

Second Sessional Exam

Course Title: Production and Operations Management Course Code: MGT362 Credit Hours: 3(3,0)
Course Instructor/s: Nayyar Butt Program Name: BSBA
Semester: 6tH Batch: SPRING 2011 Section: Date:
Time Allowed: 90 MINUTES Maximum Marks: 15
Reg. No.
 Please attempt ALL the questions.
Question No1. The following tasks must be performed on an assembly line in the sequence and times specified:
Tasks Task Time Tasks that must precede

(seconds)
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 schematic diagram. [2 marks]

b. What is the theoretical minimum number of stations required to meet a forecast demand of 400 units per 8-
hours day? [2 marks]
c. Use the longest task time rule and balance the line in the minimum number of stations to produce 400 units
per day. [2 marks]
Question No2. How do the performance objectives of operations strategy influence capacity planning? Relate your
discussion to the various product life cycle stages. [4 marks]
Question No 3.
The university’s students union is going to rearrange the layout of its lounge. It has been noticed that different
groups of students use the two bars and four machines in the room in different ways, as shown in Table 1. The union
would like to group the facilities in twos. Which groupings would you suggest, given that the sandwich bar and
drinks bar are at opposite ends of the room and cannot be moved? [5]
31
Table 1 Students’ use of union facilities
Student type
Facilities 1 2 3 4 5 6
Cola Machine X X X
Drinks Bar X X
Hot drinks machine X X X
Cigarette machine
X X
Sandwich bar X X
Chocolate machine X X
32
final exam
Course Title: Production and Operations Management Course Code: MGT362 Credit Hours: 3(3,0)
Course Instructor/s: Nayyar Butt Program Name: BSBA
Semester: 6th Batch: Section: A&B Date:
Time Allowed: 3 hours Maximum Marks: 50
Reg. No.
 Please attempt all the questions
Question No1. Case Study: Four location decisions
In practice, companies are driven by a whole variety of motives when they make their location decisions. Here are
four examples which illustrate a diversity of operations objectives.
Example 1
In 1994 the Ford Motor Company embarked on one of its most radical reorganizations on a worldwide scale. Part of
its plan was to establish five vehicle program centers (VPCs). Each VPC was to take responsibility for the design of
a particular type of vehicle worldwide. The idea of forming these five VPCs was to avoid costly duplication of
design and development effort. For example, the Ford Escort launched in the early 1990s had been developed
separately for the US and European markets. Although both cars were of almost the same dimensions and aimed at
very similar parts of their respective markets, entirely unrelated versions were built in the US and Europe. Ford
figured that locating all design and development of each class of vehicle in one place would prevent this kind of
waste. The location of its five VPCs was based on which part of its organization had the greater experience and
expertise. For example, the European VPC would take worldwide responsibility for the design, development and
engineering of all of Ford’s small and medium front-wheel-drive cars. North America by contrast had the greater
experience in larger cars, trucks, higher displacement engines and automatic transmission.
Example 2
The Polish government has been engaged in its strategy of returning formerly state owned industries into private
hands. One industry in particular has attracted considerable interest and investment from Western companies. The
country’s car- and truck-making capacity was the focus of attention from such car giants as Fiat, PSA (Peugeot and
Citroen), Ford, Volvo, General Motors, Mercedes-Benz and Volkswagen. The cause of all this interest was only
partially due to Poland’s lower manufacturing costs (anyway, exports from Poland were sometimes restricted: for
example, the European Union allowed only a certain number of models to be imported free of its 30 per cent
customs duty). The car companies were playing a longer game. They had in mind the potential growth in the East
European market in the medium to long term. When Fiat bought 90 per cent of the former state-held FSM car maker
based in Bielsko-Biola in southern Poland, it was not only investing in the experience and under-utilized resources
of the company, it was seeing its investment as a longer-term gateway to other East European markets.
Example 3
When Hyundai moved its personal computer operations to America, its market share had shifted from 5 per cent in
the late 80s down to 1.5 per cent in the 90s. It seems, therefore, an unusual decision to move to a country with higher
labor and accommodation costs. In fact, Hyundai reckoned that the increased costs were more than offset by savings
in time and inventories. When it manufactured in Korea its goods used to take two months to reach the US, after
which its sales operations used to hold the stocks for around three months of sales. After the move, the amount of
stock was reduced to less than a third and responsiveness to market trends was enhanced by being far closer to the
market itself. Also, product development time, which had been between 12 and 18 months, was reduced to five
months after the move.
Example 4
33
In 1994 the domestic appliance manufacturer Hoover (owned by the American Maytag Corporation) closed its
French vacuum cleaner manufacturing operation and relocated production to its Scottish plant. The decision was
primarily influenced by cost of manufacture. The company had figured that, to remain competitive in its global
business, all vacuum cleaner production for Europe should be concentrated on a single plant in order to gain
economies of scale. Hoover’s workers in Scotland were also paid lower wages than their French counterparts.
Furthermore, non-wage costs such as health insurance were a much lower percentage of overall costs in Britain than
they were in France. Reportedly, the company also believed that the workforce in its Scottish plant had
demonstrated more flexibility in adapting to new working methods, which would help it to keep manufacturing costs
down in the future.
Questions
(5marks+2.5marks+2.5marks)
1. For each of these four location decisions, rank what you think are the main factors that influenced the
location decision.
2. What do you think the companies described in each of these four location decisions were trying to improve
and why?
3. In the decision by the Ford Motor Company to establish vehicle program centers, do you think the factors
influencing the location of design centers are different from those that influence the location of
manufacturing operations?
Question No2. Define Bullwhip effect. Using the logic of Bullwhip effect (all operations keep one period
inventory), what would the effect on the chain be if demand fluctuated period by period between 100 and 95? That
is, period 1 has a demand of 100, period two has a demand of 95, period three has a demand of 100, period 4 has a
demand of 95 and so on. Comment on your findings. (2 marks+5 marks)
Question No3. The MRP gross requirements for item A are shown here for the next 10 weeks. Lead time for A is
three weeks and setup cost is $10. There is a carrying cost of $.01 per unit per week. Beginning inventory is 90
units.
Use the least unit cost method to determine when and for what quantity the first order should be released?
(10
marks)
Weeks 1 2 3 4 5 6 7 8 9 10
Gross 30 50 10 20 70 80 20 60 200 50
Requirement
Question No 4.
a) List the advantages and disadvantages associated with the following
1. Standard pallet racking system (2 marks)
2. Double deep pallet racking system (2 marks)
b) (Sizing the warehouse)
m number of required stocking positions

αx ,α y occupation of a unit load
wx , w y width of the side aisles and the central aisle
nx , ny , nz number of stocking positions in each direction
34
Double Deep Pallet Racking is used.

The figure below shows the warehouse lay-out if nx = ny = 8.
x wx
a. Express the length Lx and
width Ly of the warehouse as
y functions of αx, αy, wx, wy, nx
and ny. (3 marks)
b. Explain why it is
reasonable to assume an
average travelling distance
Ly
Lx +
wy In / Out Ly of 2 . (3
marks)
Question No 5
(08 marks)
Nancy’s Auto Seat Cover
and Paint Shop are bidding
on a contract to do all the
Lx custom work for Sarah’s
used car dealership. One of
the main requirements in obtaining this contract is rapid delivery time. Sarah has said that if Nancy can refit and
repaint five cars that Sarah has just received in 24 hours or less, the contract will be hers. Following is the time
required in refitting shop and the paint shop for each of the five cars. Assuming that cars go through the refitting
operations before they are repainted, can Nancy meet the time requirements and get the contract?
CAR Refitting Time (hours) Repainting time (hours)

A 6 3
B 0 4
C 5 2
D 8 6
E 2 1
Question No6.
Assume that product Z is made of two units of A and four units of B. A is made of three units of C and four D. D is
made of two units of E.
Lead times for purchase or fabrication of each unit to final assembly are: Z takes two weeks; A, B, C, and D take
one week each; and E takes three weeks.
Fifty units are required in period 10. (Assume that there is currently no inventory on hand of any of these items.)
a. Show the bill of materials (2 Marks)
b. Develop an MRP planning schedule showing gross and net requirements and order release and order receipt
dates. (5 Marks)
35
COMSATS INSTITUTE OF INFORMATION TECHNOLOGY

THE DEPARTMENT OF MANAGEMENT SCIENCES
Production and Operations Management COURSE INSTRUCTOR: NAYYAR BUTT

SECOND SESSIONAL
BBA SECTION A TIME ALLOWED: 90
MINUTES
An assembly line is to be designed to operate 7 ½ hours per day and supply a steady demand of 300 units per day.
Here are the tasks and their performance times:
TASKS PRECEDING PERFORMANCE TASJS PRECEDING PERFORMANCE

TASKS TIME TASKS TIME
(SECONDS) (SECONDS)
a - 70 g d 660
b - 40 h e 50
c - 45 i f 115
d a 10 j g 25
e b 30 k h, i 20
f c 20 l J, k 25
a. Draw the precedence diagram.
b. What is the workstation cycle time?
c. What is the theoretical minimum number of workstations?
d. Assign tasks to the work stations using the longest operating time.
e. What is the efficiency of your line balance?
Problem No 2. (3 marks + 2 marks)

a). Determine the minimum number of receiving zones for a warehouse if the daily demand for orders is 1500
pallets, the truck capacity is 15 pallets, and the time to unload a truck is 40 minutes. The warehouse opens at 9:30
am and operates for 10 hours daily that is till 7:30 pm.
b). Briefly explain the advantages and disadvantages associated with Standard pallet racking system and double
deep pallet racking system
Problem No 3.
a. Differentiate between functional and cell layout. What kind of layout is used in physical fitness center?
(3 marks)
b. An initial solution has been given to the following process layout problem. Given the flows described and a
cost of $2 per unit per foot, compute the total cost for the layout. Each location is 80 feet long and 40 feet
wide as shown in the following figure. Use the centers of department for measuring the distance using
metropolitan rectilinear distance. Also suggest improvement in the existing layout.
80 FEET
40 FEET
A B C
Load Summary: AB= 10
AC=25
D
AD=55
BC=10 BD=5 CD=15
36
Good Luck !
37

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COMSATS University Islamabad, Lahore Campus

Department of Management Sciences

COMSATS University Islamabad, Lahore Campus

Bachelors of Business Administration

Reading and Lecture Notes

A group Coursework 10%

b). Examination 75%

Code of teaching Practices

Important cases/examples to read

o The dependability objective

Important Cases/Examples to read

Important Cases/Examples to read

o Amazon, what exactly is your core competence? page 74

Important Cases/Examples to read

Applications and problems solving

Additional resources will be provided by the instructor before the lecture.

Applications and problems solving

Important Cases/Examples to read

➤ How much inventory should an operation hold?

Applications and problems solving

Week 11, & 12

o Purchase Orders Outstanding

Applications and problems solving

Important Cases/Examples to read

Applications and problems solving

WORTH 10% OF TOTAL MARKS FOR THE COURSE

SUBMISSION DATE: FRIDAY 14th OF November 2017 BEFORE 4PM

WORTH 10% OF TOTAL MARKS FOR THE COURSE

SUBMISSION DATE: FRIDAY 14th OF December 2017 BEFORE 4PM

COMSATS - Lancaster Dual Degree Programme

Sessional 1 – Spring 2016

 Attempt both questions.

Question No2. (5 marks)

COMSATS - Lancaster Dual Degree Programme

Sessional 2 – spring 2015

 Attempt all the questions.

a. Draw a precedence diagram (marks 2)

Task Immediate follower Task time in minutes

COMSATS - Lancaster Dual Degree Programme

COMSATS - Lancaster Dual Degree Programme

Table 1. Description and relative positioning of the departments

Area A Area B Area C

Assembly Department(1) Painting Department(2) Machine Shop Department (3)

Receiving Department (4) Shipping Department (5) Testing Department (6)

Area D Area E Area F

Table 2. Number of load per week

Department Assembly Painting Machine Receiving Shipping Testing

Question No2. (7 marks)

COMSATS - Lancaster Dual Degree Programme

Determine an optimal product/grid allocation. (Marks 10)

4 6.6 10.9 13.9

5 6.3 1.0 1.1

6 3.5 3.8 11.0

7 2.7 0.5 2.1 7.8 10.8

8 1.3 4.9 7.0 9.6 0.8 3.9 4.6

9 2.4 0.4 1.2 1.9 11.9 13.0 12.8 6.2

10 0.7 7.3 10.4 5.6 8.4 9.5 10.5 11.8

You need to provide an explanation as well!

COMSATS - Lancaster Dual Degree Programme

COMSATS - Lancaster Dual Degree Programme

Second Sessional Exam

Tasks Task Time Tasks that must precede