Reg. No.

MANIPAL INSTITUTE OF TECHNOLOGY

(A Constituent Institution of Manipal University)

Department of Printing & Media Engineering

Second Semester M.Tech (Printing and Media Technology) Examination
May 2012
PRINT PRODUCTION AND BUSINESS MANAGEMENT (PME-604)

Time: 3 Hrs. Max. Marks: 50

Each Main question carries 10 marks. Answer any 5 full Questions.
Instructions to Candidates:
(i) Draw neat sketch / figures where ever necessary.
(ii) Answer to the point and clearly.
(iii)Assume missing data and mention the same.

1A. Explain the Operation management’s transformation role.

1B. Which areas of the printing operations will come under process decisions?
1C. M/s SA & Co. is a leading paper merchant. The company wants to monitor demand for
its particular product. For the month of June, it was estimated that the average number of
cases sold per month was 900,000 and the trend was expected to be 50,000 per month.
The following table shows the actual sales history for June, July and August.
Month Sales
June 890,000
July 800,000
August 825,000

Generate the forecast for the month of September. Assume appropriate smoothing
parameter for average and trend.
[02 + 03 + 05 = 10 Marks]
2A. M/s In-Design is into pre-press solutions. In the previous week, in design section, 5
employees made 200 designs, by working in a 8 hour shift for 6 days. In the Layout
section, a team of worker made 100 layouts, which is valued by its standard cost of Rs.
100 / layout. As per the information from the accounting department, the actual costs are

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 Rs. 5000 for labor, Rs.500 for materials and Rs.2000 for overhead. Calculate the
productivity, both for Design section and Layout section.
2B. What are the considerations involved in developing corporate strategy.
2C. A manager of a Paper Plant must determine the lot size for Art paper, which has a
steady demand of 30 reams per day. The production rate is 190 reams per day, annual
demand is 10,500 reams, setup cost is Rs. 200, annual holding cost is Rs. 0.21 per
ream, and the plant operates 350 days per year.
Determine the following task:
 The economic lot size (ELS)
 Total annual setup and inventory holding cost
 TBO for the ELS
 Production time per lot
[02 + 03 + 05 = 10 Marks]
3A. What are the similarities between manufacturing and service industry?
3B. Five engine blocks are waiting for processing. The processing times have been
estimated. Expected completion times have been agreed. The table shows the situation
as of Monday morning. Customer pickup times are measured in business hours from
Monday morning.
Processing Time Scheduled Customers Pickup Time
Engine Block
Including setup (hours) (business hours from now)
Ranger 8 10
Explorer 6 12
Bronco 15 20
Econline 150 3 18
Thunderbird 12 22
Task:
 Determine the schedule by using the EDD rule and then the SPT rule.
 Calculate the average hours early, hours past due, WIP inventory, and total Inventory
for each method.

3C. Explain a type of manufacturing strategy related to printing industry, where competitive
priority is high degree of customization.
[03 + 05 + 02 = 10 Marks]

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4A. M/s Jain & co. Pvt. Ltd, a leading cotton waste supplier’s, monthly demand is as follows:
Months Units Months Units
January 100 May 105
February 80 June 110
March 110 July 125
April 115 August 120
Task:
 Use the exponential smoothing method to forecast the number of units for February
to September. The initial forecast for January was 105 units, with α = 0.2
 Calculate the absolute percentage error for each month from February through
August and the MAD and MAPE of forecast error as of the end of August.
 Calculate the tracking signal and give your comment

4B. Giapetto’s toy company manufactures two types of wooden toys: soldier and trains. A
soldier sells for $27 and uses $10 worth of raw materials. A train sells for $21 and uses
$9 worth of raw material. Labour cost for each soldier is $14 and for each train is $10.
The manufacture of wooden soldiers and trains requires two types of skilled labour:
carpentry and finishing. A soldier requires 2 hours of finishing labour and 1 hour of
carpentry labour. A train requires 1 hour of finishing and 1 hour of carpentry labour. Each
week, Giapetto can obtain all the needed raw material but only 100 finishing hours and
80 carpentry hours. Demand for trains is unlimited but not more than 40 soldiers are
bought each week.
Task:
 Formulate the problem to maximize Giapetto’s weekly profit.
(Hint: Profit = Selling price - Cost)
 Using the graphical method, determine the maximum profit that Giapetto can make.
[05 + 05 = 10 Marks]

5B. The best operating level is the output that results in the lowest unit cost justify this
statement.
5C. Explain the factors to be considered, when going for a new location.
5A. The manager of a printing press, is planning for expansion of his business. Now he is
having 4 different alternatives. The annual fixed costs and the variable costs are as
follows:

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 Alternatives Fixed cost (Rs) Variable cost (Rs)
1 2,000 15
2 3,000 10
3 4,000 6
4 5,000 8
Task:
 Plot the total cost curves for all the alternatives and range of low cost
 Using break-even analysis, calculate breakeven quantities over the relevant range
 If the expected demand is 1000 units per year and firm can produce maximum of 1500
units, which is the best alternative?
[03 + 03 + 04=10 Marks]

6A. M/s A copy center in an office building prepares bound reports for two clients. The center
makes multiple copies (the lot size) of each report. The processing time to run, collate,
and bind each copy depends on, among other factors, the number of pages. The center
operates 250 days per year, with one 8-hour shift. Management believes that a capacity
cushion of 15 percent (beyond the allowance built into time standards) is best. It
currently has three copy machines. Based on the following table of information,
determine how many machines are needed at the copy center.
ITEM Client X Client Y
Annual demand forecast (copies) 2000 6000
Standard processing time (hour/copy) 0.5 0.7
Average lot size (copies per report) 20 30
Standard set up time(hours) 0.25 0.40

6B. Explain the reasons for globalization, also mention its disadvantages
6C. M/s Roy pack is a famous for supplying Dampening solution to printing industry. The
average sales are 18 units per week, with a standard deviation of 5 units. The supplier
charges Rs. 60 per unit. The cost of placing an order with the supplier is Rs. 45. Annual
holding cost is 25 percent of unit price and the shop operates 52 weeks per year. The
lead time is constant at 2 weeks.
Task:
 Determine the safety stock and the reorder point if management wants a 90 percent
cycle-service level.
 What is the EOQ?
 What is the total cost of the Q system? [02 + 03 + 05 =10 Marks]
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