POKHARA UNIVERSITY

Level: Bachelor Semester - Fall Year : 2018

Programme: BBA/BHCM/BBA-TT Full Marks: 100
Course: Fundamentals of Operations Management Pass Marks: 45
Time : 3hrs.
candidates are required to give their answers in their own words as far as practicable.
The figures in the margin indicate foil marks.
Section "A"
Very Short Answer Questions
Attempt all the questions. 10 x 2
1. What are the objectives of operation management?
2. Material delays have routinely limited production of household sinks to 400 units per day. If the plant
efficiency is 80%, what is the effective capacity?
3. How quality can improve profitability?
4. Explain the role of Master Production Schedule?
5. Thapa metal work shop produces cast bronze valves on a 4-person assembly line. On a recent day 40 valves
were produced during an 8-hour shift. Calculate labor productivity of the line.
6. What is vertical integration in supply chain management?
7. Write the differences between design capacity and effective capacity.
8. What is the optimal level of inventory?
9. Write about the types of scheduling.
10. Write on Kanban.
Section "B"
Descriptive Answer Questions
Attempt any six questions 6 x 10
11. What are the factor affecting Operation System? Explain the role of aeration manager in organization to
achieve competitive advantage.
12. Company, which sells industrial values and fluid-control devices. One of Central's most popular values is the
Western, which has an annual demand of 4,000 units. The cost of each value is $90, and the inventory
carrying cost is $9. Marilyn has made a study of the costs involved in placing an order for any of the values
that central stocks and she has concluded that the average ordering cost is $25 per order. Furthermore, it
takes about 5 working days for an order to arrive from the supplier. During this time, the demand per week
for values is approximately 80.
I. What is the economic order quantity?
II. What is the average inventory level?
III. What is the optimal number of order per year?
IV. What is the optimal number of days between any assuming 250 working days per year?
V. What is the total annual inventory?
VI. What is reorder point?
13. Shampoo Manufacturing Company wants that the contents of a bottle should measure 100+/-1 mls net. A
statistical quality control operation is established and the following data are obtained:

From the table, for n=6, A2 = 0.483, D3 = 0, D4 = 2.004

a. Construct neat and suitable control charts of mean and range for these given data.
b. What points, if any, out of control?
c. Comment on your result.
14. What do you understand by supply chain management? Discuss about different types of supply chain strategies.
15. Use Johnson's rule to find the optimum sequence that will minimize the total completion time for processing
the six jobs shown through two work centers. The first work center involves drill process and second involves
lathe. Processing time at each of the work centers are in hours shown in below.

Also show the chart of these jobs through the two work center

16. Write down distinguish between the product design and service design. Describe about different stages of
product development processes.
17. Eliminating waste is a vital part of JIT. Identify some sources of waste and how they may be eliminated. Explain
it.

Section "C"
Case Study
Read the following text and answer the questions given below. 20
World renowned Toyota Motor Corporation has a worldwide presence, With Toyota's investment in
North America alone exceeding $13 billion in manufacturing plants. Toyota is at the forefront of lean firms and
a showcase of JIT. Executives from all over the world make the journey to Toyota to see how JIT works.
But early one Saturday morning in February, a fire roared through the huge Aisin Seiki plant in Kariya
Japan. The fire incinerated the main source of crucial brake valves that Toyota buys from Aisin and uses in most
of its cars. Aisin has long been a supplier of the critical brake-fluid-proportioning (P-valves) values, supplying
99% of Toyota's requirement for the valve. About 80% of Aisin's total output goes to Toyota. As the smoke
cleared, the extent of the disaster was clear-most of the 506 special machines used to manufacture the P-valves
were useless. A few might be repaired in 2 weeks, but most would need to be replaced and the lead time was 6
weeks. Both Aisin and Toyota had been operating at full capacity.
Consistent with J1T practices, Toyota maintained only a 4-hour supply valve. And there were few of
the valves in the closely knit network that constituted Toyota's supply chain. Depending on a single, source and
holding little inventory is a risk, but it also keeps Toyota lean and its cots low. The Toyota Plants in Japan build
1400 cars a day. Without that valve, production would come to a rapid halt. Moreover, Toyota production
managers were dismayed to find they needed 200 variations of the P-valve.
Consistent with the Kesector, Toyota holds 23% of Aisin's stock and Aisin's president is Kanshiro
Toyota of the Toyota family that founded the automaker. Kosukelkebuchi, a Toyota senior managing director,
was tracked down at * A.M. at a golf course clubhouse and given the bad news.
Questions: -
i. If you are Mr. Ikebuchi what would you do?
ii. What does this experience tell you about just in time?
iii. If you had been incharge of Chrysler JIT supplies the morning of September 11, 2001 what actions would
you have taken?