POKHARA UNIVERSITY

Level: Bachelor Semester - Fall Year : 2017

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 do you mean by value added in operation function?
2. Find the productivity if four workers installed 720 square yards of carpeting in eight hours.
18.

3. What is Robust Design?

4. Explain the term consumer's risk and producer's risk in process control.
5. What is Inventory decoupling?
6. Give the concept on bullwhip effect in supply chain management.
7. What do you mean by critical ratio?
8. What do you mean by safety stock?
9. The design capacity for engine repair in our company is 80 engines/day. The effective capacity is 40engines/day and
the actual output is 36engines/day. Calculate the system utilization and system efficiency of the operation department.
10. What do you mean by Value-stream mapping?
Section "B"
Descriptive Answer Questions
Attempt any six questions 6 x 10
11. The following jobs are waiting to be processed at the same machine center. Jobs are logged as they arrive:

In what sequence would the jobs be ranked according to the following decision rules: (a) FCFS, (b) EDD, (c) OPT, and
(d) LPT? All dates are specified as manufacturing planning calendar days. Assume that all jobs arrive on day 275.
Which decision is best and why?
12. What is operation management? Explain major operational changing environment in Nepal.
13. The maintenance department of a company uses 936 units of material annually. The cost of placing an order is Rs. 45.
The holding cost is 25%of unit price of materials and the vendor charges different rice rates to the company for a
different range of orders. If it orders less than 300 units, the price is charged Rs. 60, for 300 to 499 units the price is
Rs. 58 and for 500 units and more the price is Rs. 57 only. Determine the optimal order quantity.
14. a) Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound
interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if
his organization is maintaining the manufacturing average of 3% increase in productivity. He has the following data
representing a mottle from last year

Show the productivity percentage change for each category and then determine the improvement for labor hours, thw
typical standard for comparison
15. What do you mean by vendor selection? Explain its various stages.
16. Describe the JIT system in operation. How it will be considered as a competitive advantage in the country like Nepal?
17. Describe various strategies practiced by Nepalese Organization under the supply chain management.
Section "C"
 Case Analysis
Read the following case and answer the questions. 20
In 1978 George Thrall founded Hydrolock Inc. a manufacturing company producing small rubber gaskets used in
hydraulic systems. His Gaskets were simple in design and relatively easy to produce in large quantities. In 1990, gross
sales from servicing customers throughout North America with large quantity shipments reached $8 million. A very
autocratic management style exists unrequited. ,
Demand for Hydrolock products has increased so rapidly that the manufacturing facility is constantly under
pressure to increase output around the clock. Customers and sales personnel in the field often call the, home facility. to
determine estimated lead times for prospective orders and estimated delivery times for exiting orders. In response,
production supervisors continually emphasize to employees the need for increasing output to meet demand.
In late 1990, George Thrall encountered a new problem: an increase in customer complain. about the quality
of shipments being received. Plant supervision insisted the problem was two fold and that nothing could be done about
either (1) workers were asked to produce at maximum efficiency, so quality suffered and (2) workers had absolutely
no motivation for high quality performance. George decided to add a quality control analyst to the Hydrolock staff in
hopes of finding and correcting the sources of customers' dissatisfaction.
In his first two weeks, the quality analyst uncovered some data that production supervisors had recorded two years
previously.

*Sample sizes of 40 units.

The analyst began gathering data on current production of the same Gasket. Samples of 40 units were taken once each
day for five consecutive work days with these results.

Questions:
a. Develop a suitable control chart for Gasket (1988) and interpret results.
b. Using fishbone diagram, explain the causes of quality and their effects on existing quality problems of the
company.
c. Did company apply Total Quality Management (TQM) principles?
d. Explain any two TQM's philosophical elements that seem more relevant to solve existing quality' problem of
the company