IGBINEDION UNIVERSITY, OKADA.

GEN. ABDULSALAMI ABUBAKAR COLLEGE OF ENGINEERING.

DEPARTMENT OF MECHANICAL ENGINEERING.
B.Eng. (Hons), Second Semester Examination, 2018/2019 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) What is unbalanced transportation problem? [5]

(b) We need 1,000 electric drills per year. The ordering cost for these is N100 per order and
the carrying cost is assumed to be 40% of the per unit cost. In orders of less than 120, drills
cost N78; for orders of 120 or more, the cost drops to N50 per unit.
(i) Should we take advantage of the quantity discount? Based on (i),
(ii) Assume a 300-day work year, how many orders should be processed per year?
(iii)what is the expected time between orders?
(iv) if the demand for an item is 5 units per day, and delivery lead time is 20 days, what value
should we use for a reorder point? [15]

2. A construction company has a N1 million contract to complete a building by 30 th March,

2016 but is experiencing delays due to complex design. The managers have to make a
decision now whether to continue as at present, or to employ specialist engineering
consultants at a cost of N200, 000. If the company continues as at present, it estimates there is
only a 30% chance of completing the building on time, and that the delay could be one, two
or three months, with equal probability. If the building is late, there are penalties of N100,
000 for each month’s delay (or part of a month). The managers believe that if they employ
specialist engineering consultants, their chance of completing the contract on time will be
trebled. But if the building is still late, it would be only one or two months late, with equal
probability.
(a) Draw the decision tree and include the probabilities, revenues, and penalties; [8]
(b) Analyse the tree using expected value techniques; [8]
(c) Write a short report for the manager, with reasons and comments, recommending which
decision to make. [4]

3. Consider a PERT network with the precedence relations specified in the table below.

Immediate
Activity Estimated duration (in days)
Predecessor
Optimistic Most likely Pessimistic
A - 2 5 14
B - 1 4 7
C A 3 3 3
D A, C 1 2 3
E B, D 1 2 21
F C, D 2 4 24
G D, E 1 3 5
(a) Draw the network and determine the earliest possible and latest allowable starting and
finishing times. [
1
8 ¿
2
(b) What is the minimum duration of the project? [2]
(c ) Calculate the probability of completing the project in 23 days. [
1
7 ¿
2
(d) What can be done if management considers this probability of 84% not high enough? [2]

4. (a) what is plant layout? Distinguish between product layout and process layout. [6]
(b) Three outlets A, B and C are supplied by three suppliers X, Y and Z. The table shows the
cost, in Naira, of transporting each unit, the number of units required at each outlet and the
number of units available at each supplier. [14]

A B C SUPPLY
X 9 11 10 40
Y 10 8 12 60
Z 12 7 8 50
DEMAND 50 40 30
(i) Use the north-west corner method to obtain an initial solution and estimate the
total shipment cost, and
(ii) state if the solution is degenerate or not, with reason.

5. (a) Define Motion and Time Study. [5]

(b) The new Health-care facility is targeted to serve seven villages in a Local Government
Area. The table given below shows the coordinates for the centre of each village, along with
the projected populations, measured in thousands. Customers will travel from the seven
village centres to the new facility when they need health-care. Two locations being
considered for the new facility are at (4, 3) and (3, 2), which are the centres of census tracts C
and G. Details of seven village centres, co-ordinate distances along with the population for
each centre are given below. If we use the population as the loads and use rectilinear distance,
which location is better in terms of its total load-distance score? Show the village on a
graph. [15]

S/N Village x, y population (l)

1 A (1.5, 2) 2
2 B (2, 4.5) 5
3 C (4, 3) 10
4 D (6, 2) 7
5 E (7, 5) 10
6 F (4.5, 1.5) 20
7 G (3, 2) 14

6. (a) List and explain any three (3) the principles in the design of an efficient system of
materials Handling. [9]
(b) Bassey and Tony Saviour recently time-studied a janitorial task. From a sample of 75
observations, they computed an average cycle time of 15 minutes with a standard deviation of
2 minutes. Was their sample large enough that one can be 99% confident that the standard
time is within 5% of the true value? [7]
(c) what is Engineering management. [4]
7. (a) Why is forecasting important in organizations? [5]
(b) State five (5) objectives of Work Measurement [5]
(c) A friend needs N500 now, and will pay you back N570 in a year. Is that a good
investment when you can get 10% elsewhere? [10]