INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING

GRADUATESHIP EXAMINATION
Section-A February 2017
Time: 3 hrs. Max. Marks: 100
IEA 01 – PROBABILITY AND STATISTICAL METHODS
Instructions :
1. Answer Any Five questions
2. Use of statistical tables permitted
3. Show the working steps clearly

Q1. (i) For many years TV executives used the guideline that 25
percent of the audience were watching each of the prime-time
networks and 5 percent were watching cable stations on a
weekday night. A random sample of 400 viewers in an area of
a city last Monday night showed that 170 homes were tuned in
to the ABC affiliate, 160 to the CBS affiliate, 120 to the NEC
affiliate, and the remainder were viewing a cable station. At
the 0.05 significance level, can we conclude that the guideline
is still reasonable? (8)
(ii) Retail prices (in dollars) of five brand name 50-inch
television sets and five brand name 25-inch television sets were
advertised as follows:
50-inch sets: 1,700 1.900 2,500 3,200 1,500
25-inch sets: 444 425 499 599 375
(a) Compute the range, sample mean, sample standard
deviation and coefficient of variation for 50-inch TV sets.
(b) Compute the range, sample mean, sample standard
deviation and coefficient of variation for 25-inch TV sets.
(c) Compare the answers for parts (a) and (b) and comment
on the differences in the two sets of data. (3×4=12)

Q2. a) Analyses of drinking water samples for 100 homes in

each of two different sections of a city gave the following
means and standard deviations of lead levels (in parts
per million): (3×5=15)

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 Section 1 Section 2
Sample size 100 100
Mean 34.1 36.0
Standard deviation 5.9 6.0
(i) Calculate the test statistic and its p-value (observed
significance level) to test for a difference in the two
population means. Use the p-value to evaluate the
statistical significance of the results at the 5% level.
(ii) Use a 95% confidence interval to estimate the difference
in the mean lead levels for the two sections of the city.
(iii) Suppose that the city environmental engineers will be
concerned only if they detect a difference of more than
5 parts per million in the two sections of the city. Based
on your confidence interval in part b, is the statistical
significance in part a of practical significance to the city
engineers? Explain.
b) Write in detail about the central limit theorem (5)
Q3. a) A medicine is effective only if the concentration of a certain
chemical in it is at least 180 parts per million (ppm). At
the same time, the medicine would produce an
undesirable side effect if the concentration of the same
chemical exceeds 180 ppm. How would you set up the
null and alternative hypothesis to test the concentration
of the chemical in the medicine? (8)
b) Suppose that the number of ounces of soda put into a
branded cold drink can is normally distributed with
µ=13.07 ounces and σ 0.025 ounces. (i) Legally a can
must contain at least 13 ounces of soda. What fraction
of cans will contain at least 13 ounces of soda? (ii) The
cold drink company controls the mean weight in a can
by setting a timer. For what mean should the timer be
set so that only 1 in 1000 cans will be underweight?
(iii) Every day the company produces 10,000 cans. The
government inspects 10 randomly chosen cans each day.
If at least two are underweight, the company is fined
$10,000. Given that µ =13.07 ounces and σ = 0.025
ounces, what is the probability that the cold drink
company will be fined on a given day? (3×4 = 12)

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Q4. The following data are observations collected using a completely
randomized design:
Sample 1 Sample 2 Sample 3
4 5 1
1 4 1
3 4 2
2 2 1
3 4 5
a) Calculate CM and Total SS.
b) Calculate SST and MST.
c) Calculate SSE and MSE
d) Construct an ANOVA table for the data (4×5=20)
Q5. Using a chemical procedure called differential pulse
polarography a chemist measured the peak current generated
(in microamperes) when a solution containing a given amount
of nickel (in parts per billion) is added to a buffer:

X = Ni (ppb) Y = Peak current

(microamperes)
19.1 0.095
38.2 0.174
57.3 0.256
76.2 0.348
95 0.429
114 0.500
131 0.580
150 0.651
170 0.722
a) Calculate the preliminary sums of squares and cross
products, Sxx, Syy and Sxy
b) Calculate the least-squares regression line

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 c) Plot the points and the fitted line. Does the assumption
of a linear relationship appear to be reasonable?
d) Use the regression line to predict the peak current
generated when a solution containing 100 ppb of nickel
is added to the buffer. (4×5=20)

Q6. a) Write in detail about different time series methods of

forecasting with their merits and demerits. (14)
b) Explain about cyclic, seasonal and irregular variations (6)

Q7. a) Present an overview of SPSS package along with its

features, applications, advantages and limitations (15)
b) Explain the general procedure of testing the
appropriateness of a distribution (5)

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 INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING
GRADUATESHIP EXAMINATION
Section - A February 2017
Time: 3 hrs. Max. Marks: 100
IEA 02 OPERATIONS RESEARCH
Instructions :
1. Answer Any Five questions.
2. Answer in Brief and to the point
3. Necessary calculations must be shown in your answer paper

Q.1. Solve the following linear programming problem. (20)

Minimize z = 3x1, + 2x2 + x3 + 4x4

Subject to 2x1 + 4x2 + 5x3 + x4 ≥ 10
3x1 – x2 + 7x3 – 2x4 ≥ 2
5x1 + 2x2 + x3 + 6x4 ≥ 15
x1, x2, x3, x4 ≥ 0

Q.2. Four intravenous fluid manufacturing plants are located at M1,

M2, M3 and M4 which supply the Hospitals located at H1, H2,
H3, H4 and H5. Daily plant capacities are 80, 120, 125 and 75
units respectively. Daily hospital requirements are 30, 70, 150,
50 and 100 units, respectively. Unit transportation costs
(in Rs.) are given below:
To
H1 H2 H3 H4 H5

M1 6 8 15 17 9

From M2 11 13 7 4 16
M3 13 15 8 6 11
M4 10 5 9 3 6
Determine the optimum distribution for the plants in order
to minimize the total transportation cost. (20)

Q.3. a) Obtain the inverse of following matrix (08)

2 3 4 
4 3 1
 1 2 4
 

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Q.3. b) Two companies share the bulk of the market for a
particular kind of product. Each is now planning its new
marketing plans for the next year in an attempt to wrest
some sales away from the other company. (The total
sales for the product are relatively fixed, so one company
can increase its sales only by winning them away from
the other.) Each company is considering three
possibilities:
(1) better packaging of the product, (2) increased
advertising, and (3) a slight reduction in price. The costs
of the three alternatives are quite comparable and
sufficiently large that each company will select just one.
The estimated effect of each combination of alternatives
on the increased percentage of the sales for company 1
is as follows:
Strategy Player 2
1 2 3
Player 1 1 2 3 1
2 1 4 0
3 3 -2 -1
Each company must make its selection before learning the
decision of the other company.

a) Without eliminating dominated strategies, use the

minimax (or maximin) criterion to determine the best
strategy for each company.
b) Now identify and eliminate dominated strategies as far
as possible. Make a list of the dominated strategies,
showing the order in which you were able to eliminate
them. Then show the resulting reduced payoff table with
no remaining dominated strategies. (12)

Q.4. Mr. Raj is interested in developing and marketing a new drug.

The cost of extensive research to develop the drug would be
Rs. 1,00,000. The manager of research programme said that
there is 60 % chance that the drug will be developed
successfully. The market potential is assessed as follows with
present value of profits.

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 Market conditions Probability Present value
of profit (Rs.)
Large market potential 0.1 5,00,000
Moderate market potential 0.6 2,20,000
Low market potential 0.3 80,000

The present value figures do not include the cost of research.

While Mr. Raj was considering this proposal, another similar
proposal came up which also required the investment of
Rs.1,00,000. The present value of profit for second proposal
was Rs. 1,20,000. The return on investment for second
proposal is almost uncertain.

a) Draw a decision tree for Mr. Raj indicating all choices

and events.
b) What decision Mr. Raj should take regarding the
investment of Rs.1,00,000?
c) If Mr. Raj is a risk averter, should he change the decision
given by you? (20)

Q.5. A certain maintenance facility is responsible for the upkeep of

five machines. The machines, which fail frequently, must be
repaired as soon as possible to maintain as high a productive
capacity of the production system as possible. Management is
concerned about the average downtime per machine and is
considering an increase in the capacity of maintenance facility.
The following distributions have been developed from historical
data:

Time between Probability Repair Probability

breakdowns (days) time
2 0.05 1 0.40
3 0.10 2 0.50
4 0.15 3 0.10
5 0.40
6 0.20
7 0.10

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 Simulate the failure and repair of 10 machines. Begin by
determining the time of the first breakdown by each of the 5
machines. Sequence the machines through the repair facility
on first come first served basis. If there is more than one
machine waiting to be repaired, arbitrarily choose one to repair
the next. After a machine has been repaired, determine its
next time of break down and continue until you have repaired
10. (20)

Q.6. A duplicating machine maintained for office use is used and

operated by people in the office who need to make copies,
mostly secretaries. Since the work to be copied varies in length
(number of the pages of the original) and copies required, the
service rate is randomly distributed but it does approximate a
Poisson having a mean service rate of 10 jobs per hour.
Generally, the requirements for use are random over the entire
8- hour working day but arrive at a rate of 5 per hour. Several
people have noted that a waiting line develops occasionally
and have questioned the policy of maintaining only one unit. If
the time of a secretary is valued at Rs. 3.50 per hour, make an
analysis.
a) Equipment utilization
b) The percentage time an arrival has to wait
c) The average system time, and
d) The average cost of waiting and operating the machine(20)

Q.7. Write the short notes on following (20)

a) OR packages for Simulation

b) Principles of modelling

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 INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING
GRADUATESHIP EXAMINATION
Section - A February 2017
Time: 3 hrs. Max. Marks: 100
IEA 03 FINANCIAL ACCOUNTING & COSTING
Instructions:
1. Answer Any Five questions.
2. Assume suitable data wherever missing

Q.1. From the following Trial balances, prepare the trading and profit
and loss account and balance sheet as on March 31,
2016. (20)
Dr. Balances Amount Cr. Balances Amount
Rs. Rs.
Drawings 6400 Capital 1,50,000
Cash at bank 13,970 Discount received 3,000
Bills receivable 1,960 Loans 15,750
Loan and Building 42,680 Purchases return 2,000
Furniture 5,230 Sales 2,82,000
Discount allowed 4060 Reserve for bad debts 4,700
Bank charges 200 Creditors 19,500
Salaries 6,520
Purchases 2,00,080
Stock (opening) 60,320
Sales return 1,970
Carriage 5,270
Rent and Taxes 7,780
General expenses 3,730
Plant and Machinery 31,740
Book debts 82,840
Bad debts 1,350
Insurance 850
4,76,950 4,76,950

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 Adjustments
(1) Closing stock Rs. 70,000 (2) Create a reserve for bad and
doubtful debts @ 10% on book debts (3) Insurance prepaid
Rs. 50 (4) Rent outstanding Rs. 150 (5) Interest on loan is due
@ 6% p.a.

Q.2. A five-year project, if undertaken, will require an initial

investment of Rs.1,00,000. The expected end-of-year cash
flows are:
Year 1 : Rs.15,000
Year 2 : Rs. 42,000
Year 3 : Rs. 42,000
Year 4 : Rs. 33,000
Year 5 : Rs. 21,000

If the appropriate discount rate for this project is 15%, which of

the following is a correct statement? Use cash flow diagram
and the following strategy check feasibility of project returns (i)
Net Present Value (ii) Internal Rate of Return (iii) Discount rate
(iv) Future Value

Q.3. The XYZ company uses a periodic inventory system. The

beginning balance of inventory and the purchases made by
XYZ during the month of July are given below: (20)
Date Description Units Unit cost Total cost
July 01 Beginning inventory 600 Rs.20 Rs.12,000
July 18 Inventory purchased 800 Rs.23 Rs. 18,400
July 25 Inventory purchased 700 Rs.27 Rs. 18,900
Total 2,100 Rs.49,300
The XYZ company sold 1,400 units during the month of July.
Required: Compute inventory on 31st July and cost of goods
sold for the month of July using following inventory costing
methods:
(i) First in, first out (FIFO) method
(ii) Last in, first out (LIFO) method
(iii) Average cost method
(iv) Prepare Tabulation compare all methods

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Q.4. a) Explain the following method of cost classification :

(i) According to elements;

(ii) According to Functions or Operations; (10)
b) Write about the following as source of long term financing
(i) Equity shares
(ii) Debentures and bonds (10)

Q.5. a) The fixed cost for the year 2015-2016 are Rs.80,000/-
The estimated sales for the period ) are valued at
Rs.2,00,000/- The variable cost per unit for the single
product made is Rs. 4/- If each unit sells at Rs.20/-
Determine 1 . No.of units involved coincides with the
expected volume of output 2. Determine the breakeven
point volume of goods. 3. How many units, the company
should produce in order to seek profit 4. Determine the
profit earned at a turnover of Rs. 1,60,0007- 5. Draw the
break even chart (15)
b) Write short note on Break even analysis with graphical
representation (5)

Q.6. Explain the following balance sheet analysis ratios (20)

a) Liquidity ratios (i) Current ratio (ii) Quick ratio

b) Profitability ratio (i) Profit margin (ii) Return on assets
(iii) Return on equity
c) Leverage ratio (i) Debt-Equity ratio
d) Activity ratio (i) Inventory turnover (ii) fixed asset turnover
(iii) Total asset turnover

Q.7. Write short notes on any four (20)

a) Activity based costing
b) Job and contract costing
c) Generally accepted Accounting Principles (GAAP)
d) Standard Costing
e) Sources of finance
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 INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING
GRADUATESHIP EXAMINATION
Section-A February 2017
Time: 3 hrs. Max. Marks: 100
IEA 04 PRINCIPLES AND PRACTICE OF MANAGEMENT
Instruction : Answer Any Five Questions.

Q.1. Define Production Planning & Control? Explain the different

functions of it? What are the challenges in PPC? (20)

Q.2. Explain the evolution of Scientific Management? What are the

principles of scientific management? Also explain it's
significance in today's era? (20)

Q.3. Justify: "A Healthy Organization Culture leads to improved

performance". (20)

Q.4. a) Explain the functions of Project Manager? What are the

characteristics of successful Project Manager?` (10)
b) Write a detailed note on "Corporate Social
Responsibility"? (10)

Q.5. a) What are the objectives and functions of Human

Resource Management? (10)
b) What do you understand by Industrial Safety? List the
various personal safety equipments? (10)

Q.6. Why Recruitment and Selection process is given importance

in a strategic organization? Explain the step by step process
of Recruitment and Selection? (20)

Q.7. a) What are the characteristics of Project & Matrix

Organizations? (10)
b) Explain the role of Marketing Manager? (10)

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 INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING
GRADUATESHIP EXAMINATION
Section-A February 2017
Time: 3 hrs. Max. Marks: 100
IEA 05 – WORKS SYSTEMS DESIGN
Instructions :
1) Attempt any FIVE questions
2) All questions carry equal marks.
3) Necessary calculations must be shown in the answer paper
4) Figures in brackets on the right hand side indicate full marks.
5) Assume Suitable data if necessary

Q.1. Write in brief about followings : (20)

a) Purpose of work measurement
b) String Diagram and its uses
c) Predetermined Time Standard System
d) Therbligs

Q.2. a) With the help of a suitable example explain "Fitting the

Job to the Worker - Ergonomics perspective". (10)
b) Discuss the role of motion and time-study in increasing
productivity (10)

Q.3. a) Differentiate between Productivity and Production. (06)

b) An industrial engineer deputed to conduct a time study
for job, has after observation, divided the job into 5
elements. He had noted the timings for four cycles of
the job as below: (14)
Time in minutes
Element Cycle 1 Cycle 2 Cycle 3 Cycle 4 Performance
rating (%)
1 1.246 1.328 1.298 1.306 90%:
2 0.972 0.895 0.798 0.919 100%
3 0.914 1.875 1.964 1.972 100%
4 2.121 2.198 2.146 2.421 110%
5 1.253 1.175 1.413 2.218 100%

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 (i) Are there any outliers in the data i.e. probable errors in
reading or recording data which should not be included
in the analysis?
(ii) Compute the basic time for the job and the standard
time if a relaxation allowance of 12%, a contingency
allowance of 3% and an incentive of 20% are applicable
for the job.

Q.4. a) What are different steps in Method study? Explain in

detail. (10)
b) Differentiate between job evaluation and merit rating. List
down limitations and benefits of job evaluation. (10)

Q.5. a) Explain the process of work sampling. How is the sample

size known in work sampling? Give example. (10)
b) Explain in detail Theory of learning curve (10)

Q.6. a) Describe the concept and history of Ergonomics?

Explain the principles of ergonomics with a suitable case
study? (10)
b) Explain objectives and principals of Plant layout.
Explain in brief types of layout. (10)

Q.7. Write Short note on following (20)

a) Method Time Measurement (MTM)

b) Different allowances in time study
c) Anthropometry for workplace design
d) Normal distribution curve

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 INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING
GRADUATESHIP EXAMINATION
Section-A February 2017
Time: 3 hrs. Max. Marks: 100
IEA 06 MANUFACTURING TECHNOLOGY
Instructions : 1) Answer any Five Questions.
2) All questions carry equal marks
3) Illustrate your answers with well labeled diagram.

Q.1. a) Describe the objectives of gating systems in any casting.

What are the various elements that comprise of the gating
system? (10)
b) What is core and list down types of core materials? Write
down advantages, limitation and application of core
material. (10)

Q.2. a) What is principal of gas welding? Write down various

types of gas and correspondingly flame temperature in
degree Celsius. (10)
b) Explain the process of MIG and TIG welding. Give their
advantages and limitations. (10)

Q.3. a) Differentiate the Bending, Forming and Wiredrawing and

also classify the dies used in each. (10)
b) What do you understand by press working of sheet
metals? Explain any three types of different sheet metal
operation. (10)

Q.4. a) Explain in detail extrusion process. What are different

extrusion methods? Illustrate with examples. (10)
b) What factor will be greatly influence the cutting tool
material and the geometry. (10)

Q.5. a) Draw Merchant's force diagram. State the assumptions

made in the development of such a diagram. (10)
b) What are the applications of Ultrasonic Machining? Why
can hard material are cut better by ultrasonic process
than soft ones. (10)

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Q.6. a) What do you understand by angular measurement?
Explain any one angular measuring instrument with a
neat sketch. (10)
b) Why is clamping necessary in a jig? Explain any four
types of clamping device. (10)

Q.7. Write-short notes on the following: (20)

a) CAM
b) Welding Defects
c) Robotics Manipulator Geometry
d) ECM

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 INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING
GRADUATESHIP EXAMINATION
Section-A February 2017
Time: 3 hrs. Max. Marks : 100
IEA 07 – SYSTEMS APPROACH
Instructions :
1. Answer Any Five questions.
2. All questions carry equal marks.

Q.1. a) Explain the characteristics of an operational and tactical

information system. (10)
b) Illustrate different categories of MIS. What is the most
advanced category? (10)

Q.2. Briefly describe the following: a) multiple approach;

(b) database; (c) decision support system; (d) executive support
system. (20)

Q.3. a) Explain the common elements of any system? (10)

b) Discuss critically the relevance of these experiments for

management and organisational behaviour today. (10)

Q.4. Evaluate the application of the systems approach to the analysis

of work organisations. (20)

Q.5. a) Why is system maintenance necessary? Discuss the

types of system maintenance. (10)
b) To what extent do the criticisms and shortcomings of
the human relations approach detract from its potential
benefits? (10)

Q.6. a) Debate critically the extent to which the ideas of

management gurus have any practical relevance or
benefits for managers. (10)
b) What are the main conclusions that can be drawn from
the Hawthorne experiments? (10)
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 INDIAN INSTITUTION OF INDUSTRIAL ENGINEERING
GRADUATESHIP EXAMINATION
Section-A February 2017
Time: 3 hrs. Max. Marks: 100
IEA 08 ECONOMICS & INDIAN ECONOMIC
ENVIRONMENT
Instructions : 1) Answer Any Five questions
2) All questions carry equal marks

Q.1. a) What are the challenges in Agro-based industries in

India? (10)
b) Explain the Law of Demand? (10)

Q.2. What are the challenges in Industrial development in India?

How Government does promotes small and medium scale
industries in India? (20)

Q.3. a) Explain the following types of markets: Monopoly, Perfect

competition. (10)
b) Comment on "Impact of Increasing population of India
on economic'growth of a nation". (10)

Q.4. Define Value, Price, Cost, Wealth, Wants, Needs, Scarcity and
give examples of each? (20)

Q.5. Explain the significance of Power sector for the economic

development of India? Suggest the strategies through which
further growth of Power sector may be achieved? (20)

Q.6. Define economic development? What are the various indicators

of development? Explain the role of Transport, Communication
infrastructure in economic development? (20)

Q.7. Write short notes on : (20)

a) Significance of Cooperative sector

b) Law of Diminishing Marginal Utility
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