IGBINEDION UNIVERSITY, OKADA.

GEN. ABDULSALAMI ABUBAKAR COLLEGE OF ENGINEERING.

DEPARTMENT OF MECHANICAL ENGINEERING.
B.Eng.(Hons), Second Semester Examination, 2019/2020 Session
Course Code: GRE 502 Unit: 3
Course Title: ENGINEERING MANAGEMENT II Time Allowed: 3hrs.
Instructions: Answer questions 1, 2 and any other THREE.

Q 1 (a) State two techniques each for method study and work measurement.
Use the information in the table below to answer this question (b).
(b) A certain entrepreneur purchases high- quality term papers (“guaranteed A”) from an
even bigger entrepreneur for resale to unethical students. Annual demand is D papers,
carrying cost is 8% of purchase price per paper per year, and ordering cost is NCO per order.
Students, being as desperate as they are, never backorder. The purchase price is normally a
stiff NP per paper. However, the supplier will sell at a 1- percent discount if the buyer
purchases in lots of 5,000 to 9,999 papers and 1.5- percent discount if the buyer purchases in
lots of 10,000 papers or more. Establish the most economic quantity to order.
Annual PURCHASE Ordering cost
If last digit of MAT. NO. is:
Demand (D) PRICE (NP) (NCO)
EVEN (ZERO INCLUSIVE) 30,000 25 80
ODD NO. 25,000 30 100

Q2. (a) Define motion and Time study.

Stiller builders have been awarded a contract to build an office block. The project has been
broken down into a number of activities.

Immediately preceding
Activity
Activity
A _
B _
C A
D A
E B
F C, D
G D
H D, E
I G, H
The overheads on the project are N5, 000 per month.
Duration in months Total cost (N000)
8 100
2 75
3 135
7 70
5 160
9 255
2 30
4 90
3 55

Required:

(a) Construct an AON network diagram for the project and hence determine the minimum
project duration and its associated cost.

(b) Stiller are subsequently offered a bonus of N25, 000 if the can complete the project in
20 months (or less). The site manager is aware that certain activities can be speeded
 up, if necessary. These activities, with their associated durations and total costs, are
shown in following table.

Activity Duration in months Total cost (N000)

A 6 125
B 1 90
D 5 85
E 3 200
F 7 275
H 2 95
Activities C, G and I cannot be speeded up.

Find the minimum cost schedule and hence determine whether or not Stiller should accept the
bonus.

(c) What would your recommendation be if the bonus was N15, 000? Give reasons for your
recommendation.

Q3

(b) A new Health- care facility is targeted to serve seven LGA in a state. Table Q 3 shows the
coordinates for the centre of each LGA, along with the projected populations, measured in
thousands kilometer. Customers will travel from the seven LGA centres to the new facility
where they need health care. Two locations being considered for the new facility are at (2.5,
3) and (5, 2), which are the centres of the LGAs B and D. Details of seven LGA centres,
coordinate distances along with the population for each centre are given below. If we use the
population as the load and the rectilinear distance, which location is better in terms of its total
load- distance score? Table Q 3
S/N Census Tract (x, y) Population
1 A (2, 4) 2
2 B (2.5, 3) 5
3 C (4.5, 5.5) 10
4 D (5, 2) 7
5 E (7, 5) 10
6 F (6, 2.5) 20
7 G (4.5, 4) 14

Q. 4 (a) How may inventory be classified in relation to the flow of materials into, though, and
out of a manufacturing organization?
(b) A time study was made of an existing job to develop new time standards. A worker was
observed for 45 minutes. During that period, 30 units were produced. The analyst rated the
worker as performing at a 90 percent performance rate. Allowances in the firm for rest and
personal time are 12 percent.
(i) What is the normal time for the task?
(ii) What is the standard time for the task?
(iii) If the worker produced 300 units in an eight-hour day, what would be the day’s pay if the
basic rate was N6 per hour and the premium payment system paid on a 100 percent basis?

(b)

(a)

Q 2. (a) There are two plants which distribute their production output to three warehouses.
The plant capacities, warehouse capacities, and per unit cost of product shipment from each
plant to each warehouse in Naira (italicised) are given in the table Q 2.

Table Q 2

Destination or Warehouse
Origin or Plant SUPPLY (Tons)
A B C
1 6 8 10 150
2 7 11 11 175
3 4 5 12 275
DEMAND 200 100 300 600
(Tons)

How much of each plant’s capacity should be shipped to each warehouse in other to
minimize the total shipping cost? Use VAM for your initial allocation and give the total
shipping cost.

(b) State four (4) reasons for holding stocks.

Q 4. (a) What is plant layout? State four objectives of a good layout

Q 5.

Q 6. (a) What is time value of money?

(b) Enumerate the approaches to be considered in developing possible solution from which a
preferred work method is selected.

(c) What is the present value of a 4- year annuity of N1000 per year that makes its first
payment 2 years from today if the discount rate is 90%?

(d) How may principles of motion economy be classified?

Q 7. (a) State the four objectives of purchasing and describe one type of sourcing.

(b) A foreman has four fitters and has been asked to deal with five jobs. The times for each
job are estimated as shown in Table Q 7.

Table Q 7

Fitters
Job A B C D
1 6 12 20 12
2 22 18 15 20
3 12 16 18 15
4 16 8 12 20
5 18 14 10 17

Allocate the men to d job so as to minimise the total time taken and identify the job which
will not be dealt with