Module 1: Break Even Analysis:

Q 1. What are the limitations of Break Even Analysis.

Q 2. What are the limitations of Cost Volume Profit Analysis.

Q 3. What are the various approaches in CVP analysis and what all are the assumption in which the
CVP analysis is based.

Q4.Two alternative set ups, A and B are available for the manufacture of a component on a particular
machine, where the operating cost per hour is Rs 20/-

Data Set up A Set up B

Component/ set up 4000 pieces 3000 pieces
Set up cost Rs 300/- Rs 1500/-
Production rate/hour 10 pieces 15 pieces

Which of these set ups should be used for long range and economic production?

Q 5. Machine A and B are both capable of manufacturing a product. They compare as follows:

Description Machine Machine B

A
Investment Rs 50,000 Rs 80,000
Interest on Capital invested 15% PA 15 % PA
Hourly charges( wages+ power) Rs 10 Rs 8
No of pieces produced per hour 5 8
Annual Operating Hours 2000 2000

Which machine will have the lower cost per unit of output, If run for the whole year.

If only 4000 pieces are to be produced in a year, which machine would have the lower cost / piece.

Will you answer to first question above will change if you are informed that 12.5% of the output of
machine B, get rejected at the inspection date. If so, what would be the new solution.

Q 6. Methods P and Q are both capable of manufacturing a product. They compare as follows

Data Method P Method Q

Fixture-Cost Rs 24,000 Rs,16000
Fixture-Life 6 months 4 months
Tooling-Cost Rs 2,560 Rs 4,800
Tolling -Life 300 pieces 500 pieces
Processing Time per 6 mts 4 mts.
 piece

The annual requirement is 1500 nos. Operating cost per hour of the process is Rs 128 for both
processes. Material cost is the same in each case.

 Which method will you prefer

 Which method would you choose for production during a period of one year.

Q 7. Calculate the break even point for the following

Production Manager of a unit wants to know from what quantity he can use automatic machine as
against semi automatic machine.

Data Automatic Semi Automatic

Time for the job 2 mts 5 mts
Set up time 2 hrs 1.5 Hrs
Cost per hour Rs 20 Rs 12

Q. 8.Two alternative set ups, A and B are available for the manufacture of a component on a
particular machine, where the operating cost per hour is Rs 20/-

Data Set up A Set up B

Component/ set up 4000 pieces 3000 pieces
Set up cost Rs 300/- Rs 1500/-
Production rate/hour 10 pieces 15 pieces

Which of these set ups should be used for long range and economic production?

Q 9.Three productions process A, B and C has the following structure:

Proces Fixed cost per year Variable cost per unit

s
A Rs 1, 25,000.00 Rs 2.50
B Rs 85,000.00 Rs 4.00
C Rs 75,000.00 Rs 5.00
a) What is the most economic process for a volume of 12,000 units/year.
 b) How many units per year must be sold with each process to have annual profits of
Rs 50,000.00, if the selling price is Rs 6.00 per unit

Module 2. Forecasting

Q 1. What are the various factors that are common to al forecasting methods.

Q 2. What are the elements of a good forecasting.

Q 3. List the basic steps in forecasting.

Q 4. List the various methodology In the qualitative approach.

Q 5. List Various method of improving the qualitative approach.

Q 6. The table below contains the weighted moving average forecasts for Spencer. If we use
the sum of digits weighting scheme with N=4, we shall calculate the WMA (weighted Mean
Average) for the period 10 and 11.

Wee Actual Sales

k
1 110
2 102
3 108
4 121
5 112
6 105
7 114
8 106
9 115
10
11

Q 7. Table below gives the forecast that would be generated for a Mall, by an exponential
smoothing model using α= 0.2 and an initial forecast for week upto 9. Work out the forecast
for week 10,11 .
 Wee Actual sales
k
1 110
2 102
3 108
4 121
5 112
6 105
7 114
8 106
9 115
10
11

Q 8. Given the following data: Calculate the forecast of the number of complaints for week 6 with a
smoothing constant of 0.40.

Perio Number of Complaints

d
1 60
2 65
3 55
4 58
5 64

Q 9. Using the trend line method, calculate the forecast for the period 10 and 11.

Perio Demand
d
1 44
2 52
3 50
4 54
5 55
6 55
7 60
8 56
9 62
Q 10. Compute MAD, MSE and MAPE for the following data:

Period Actual Forecast

1 217 215
2 213 216
3 216 215
4 210 214
5 213 211
6 219 214
7 216 217
8 212 216

Module 3: Employee Productivity:

Q 1. What are the various ways of improving the productivity.

Q 2. Write short notes of Learning curve and Ergonomics.

Q 3. How safety, health and incentives affect productivity.

Q 4. What are the benefits of work study.

Q 5. What are the factors affecting the job design.

Q 6. Describe the various ways of improving the behavioral aspects of employee to achieve higher
productivity.

Q 7. What the objectives of Method study.

Q 8. List and compare the various step in Method study and Work Measurement.

Q 9. Write short notes on Therbligs or SIMO.

Q 10. List various method of doing analytical work measurement.

Q 11. An 8 hours work measurement study in a plant reveals the following.

Unit Produced= 320 nos

Idle time =15%

Performance rating = 120%

Allowance = 12% normal time.

Calculate the standard time per unit produced.

Q 12. Calculate the standard production per shift of 8 hours duration with the following data:

Observed Time per unit= 5 mins, Rating factor = 120%, Total allowance= 33.33% of normal
time.

Q 13. Calculate the ST per article produced from the following data obtained by work
sampling study.

Total number of observation= 2500

No of working Observation= 2100

No of units produced in 100 hours of operation= 6000 numbers.

Proportion of manual labor= 2/3 and proportion of machine time = 1/3

Observed rating factor= 115% and

Total allowance= 12% of normal time.

Q 14. Compute the production cost per piece from the following data:

Direct material cost per piece= Rs 2/-

Wage rate Rs 2000 per month consisting of 25 working days and 8 hours per shift.

Overhead expense expressed as a percentage of direct labor: 200%.

The time for manufacture of 4 pieces of the item was observed during time study. The
manufacture of 4 elements a, b, c and d. The data collected during the time study are as
under. Time observed( in mins) during the various cycles are as below.

Elemen Cycle Cycle 2 Cycle Cycle Element rating on scale 0-100

t 1 3 d
a 1.2 1.3 1.3 1.4 85
b 0.7 0.6 0.65 0.75 120
 c 1.4 1.3 1.3 1.2 90
d 0.5 0.5 0.6 0.4 70

Allowance: the personal fatigue and delay allowance can be taken as 25%.

Q 15. A work sampling study is to be made of a typist pool. It is felt that typist are idle 30% of
the time. How many observations should be made in order to have 95.5% confidence so that
the accuracy is within ± 4%.

Q 16. In a work sampling study , a mechanic was found to be idle for 20% of time. Find out
the number of observation needed to conform to the above figures with a confidence level of
95% and a relative error level by ±5%.

Q 17. An industrial engineer, deputed to conduct a time study for a job, has, after
observation, divided the job into 5 elements. He had noted the timings for four cycles of the
job as below:

Elements Cycle 1 Cycle 2 Cycle 3 Cycle 4 Performance

rating
1 1.246 1.328 1.298 1.306 90
2 0.972 0.895 0.798 0.919 100
3 0.914 1.875 1.964 1.972 100
4 2.121 2.198 2.146 2.421 110
5 1.253 1.175 1.413 2.218 100
Are there any probable errors in reading or recording data which should not be included in
the analysis.

Compute the basic time for the job and the standard time if the relaxation allowance of 12%,
a contingency allowance of 3 % and incentive of 20% are applicable for the job.

Module 4 : Facility Location:

Q 1. What are the factors affecting facility location decision.

Q 2. What are the various models available to identify a near ideal location.

Q 3. XYZ company is evaluating four locations for a new plant and has weighted the relevant
scores as given below. Scores have been assigned with higher values indicative of preferred
conditions. Using these, develop a qualitative factor comparison for the four locations.

Relevant Factors Assigned Weights Loc Loc B Loc Loc D

A C
Production Cost 0.35 50 40 60 30
 Raw Material 0.25 70 80 80 60
Supply
Labor Availability 0.20 60 70 60 50
Cost of living 0.05 80 70 40 80
Environment 0.05 50 60 70 90
Markets 0.10 70 90 80 50
Total 1.00

Q 4. A company is to decide on the location of a new plant. It has narrowed down the choice
to 3 locations A, B and C: Data in respect of which is furnished below:

DATA Loc A Loc B Loc C

Wages & Salaries 20,000 20,000 20,000
Power & water 20,000 23,000 25,000
Expense
Raw Material & other 80,000 75,000 60,000
supplies
Total initial 2.0 Lacs 3.0 Lacs 2.5 Lacs
investment
Distribution Expense 50,000 40,000 60,000
Misc Expense 40,000 25,000 30,000
Expected Sales/year 2,25,000 2,50,000 2,25,000
in Rs
Use a suitable criterion and advise the company on the best choice;

Q 5. A company has to select one location out of the five alternatives considered for a new
plant . The annual operating costs and other intangible factors are given below for these five
locations.

Factors Loc A Loc B Loc C Loc D Loc E

ECONOMIC
FACTORS
Labor cost 1,20,000 1,10,000 1,60,000 85,000 75,000
Tptn Cost 10,000 8,000 7,000 12,000 14,000
Local Taxes 17,000 20,000 25,000 19,000 17,000
Power Cost 21,000 29,000 25,000 18,000 23,000
Other Cost 16,000 11,000 12,000 16,000 18,000
INTANGIBLE
FACTORS
Community Very Good Fair Good Fair Very Good
attitude
Labor Availability Good Very Good Fair Outstanding Acceptable
Quality of Tptn Fair Acceptable Outstanding Acceptable Fair
Quality of Life Acceptable Fair Good Very Good Outstanding
 1) On the basis of annual operating costs, which site would you choose?
2) Devise a method of quantifying the intangible cost and integrate them with the cost
data into the overall evaluation. Which is best now?

Q 6. What are the objectives of good layout.

Q 7. What are the factors that influences a good layout.

Q 8. List the principles of Layout Planning

Q 9. Write short notes on the following:

 Product and Process Layout.

 Automation
 Group Technology Layout.

Q 10. Compare the merits and demerits between Product and process layout.

Q 11. List and explain the various types of Layout.

Q 12. Using the information contained in the table shown, do each of the following:

1. Draw a precedence diagram.

2. Assuming an eight hour shift for the production, compute CT for an output of 400
units per day.
3. Determine the number of minimum number of workstations required.
4. Assign the tasks to WS according to the following work rules.
a. Assign tasks according to greater number of following tasks. Incase of a tie, use
the tiebreaker of assigning the task with the longest processing time first.
5. Compute the resultant efficiency of the system

Task Immediate Follower Task

s time in
minutes
a b 0.2
b e 0.2
c d 0.8
d f 0.6
e f 0.3
f g 1.0
g h 0.4
h end 0.3
Q 13. The task shown in the following precedence diagram are to be assigned to WS with the
intent of minimizing idle time. Management has decided an output rate of 275 units per day.
Production available time is 440 minutes per day.

1. Determine the appropriate CT

2. What is the minimum number of station possible.
3. Assign task using “positional weights”: Rule: Assign task with highest following
items(include a task’s own time) first. Break ties using greatest number of following
tasks.
4. Compute efficiency.

0.3 min 0.4 min 0.2 min 0.1 min 0.5min 0.3min

a c e g h i

b d f
0.6 min 1.2 min 0.6 min

Q 14. As part of a major renovation plant, the industrial engineering department has been
asked to balance a revised assembly line of operation to achieve an output of 240 units per
eight hour day. Task times and precedence relationship are as follows:

Task Duration in mins Precedence task

a 0.2 b
b 0.4 c
c 0.2 f
d 0.4 e
e 1.2 g
f 1.2 g
g 1.0 end

Do each of the following:

1. Draw Precedence diagram.

2. Determine the minimum cycle time, the maximum cycle time and the cycle time.
3. Determine the number of minimum station needed.
4. Assign tasks to work stations on the basis of greatest number of following tasks. Use
longest processing time as a tie breaker. If ties still exist, assume indifferent in choice (
your arbitrary decision).
 5. Compute the percentage of idle time for the assignment in part above.

Q 15. Two layout alternatives are shown below. The facility’s product, their travel between
departments and the distance between departments for each layout alternative are also
shown below: The layout alternative that minimizes the monthly product travel through the
facility be determined.

Layout A

8 4 10 2 5
3 7 1 9 6
Layout B

7 1 9 6 3
4 10 2 5 8

Dept Dist between Dist between Dept Dist between Dist between
movement dept dept movement dept dept
combination Layout A Layout B combination Layout A Layout B
1-5 30 30 3-9 30 20
1-7 10 10 4-5 30 30
1-9 10 10 4-7 10 10
1-10 10 10 4-10 10 10
2-5 10 10 5-6 10 10
2-6 20 20 6-9 10 10
2-10 10 10 7-8 20 50
3-6 40 10 8-10 20 30

Product Dept processing No of products Product Dept No of products

sequencing Assessed/month processing Assessed/month
sequencing
 A 1-5-4-10 1000 D 1-7-8-10 1000
B 2-6-3-9 2000 E 2-5-6-9 2000
c 2-10-1-9 3000 F 1-7-4-10 4000

Module 5 : Capacity Planning

Q 1. What is aggregate capacity planning and list the various steps in ACP.

Q 2. Write short notes on Top Down ,Bottom Up , Time fence and Rough cut capacity
planning.

Q 3. What are the various factor that decide the plant capacity.

Q 4. Explain with the help of a flow chart the working of CRP ( capacity requirement
planning).

Q 5. What are the objectives and function of MPS ( Master production Schedules).

Q 6. How MPS differ in Produce to Stock and Produce to Order.

Q 7. A company that makes industrial pumps wants to make a make MPS for June and July.
Marketing has forecasted demand of 120 pumps for Jun and 160 pumps for Jul. These have
been evenly distributed over the four weeks in each month: 30 per week in Jun and 40 per
week in Jul. The stock in hand at the beginning is 64 pumps. Find the MPS and uncommitted
ATP inventory.

Q 8. A firm produces two products P and Q on produce to order basis. The demand for the
products come from several sources. The estimate demand for the two products over the
next 5 weeks are given below:

Sources of demand Product P Product Q

Week 2 3 4 5 Week 2 3 4 5
1 1
Intra company orders - - 20 1 10 - - 10 - 10
0
Branch warehouse orders - 2 - - - - - -
2 -
0 0
R&D orders - 1 10 - - - - - 1 10
0 0
Customer demand(forecast+ on hand 25 2 20 2 20 30 25 25 2 20
order 5 5 5
The safety stock for product P is 25 Product Q is 30. The lot size for P is 60 and Q is 70.

The beginning inventory for P is 50 and Q is 60. Prepare a MPS for these two products.

Q 9. What are the objectives of MRP ( Material Resource Planning).

Q 10. Short notes on MRP 1 and MRP II.

Q 11. List various issues in MRP.

Q 12. List Potential benefits of MRP.

Module 6: Material Planning:

Q 1.What are the various objectives of Material Planning.

Q 2. List the objectives of Purchase Department.

Q 3. What are the various method of Vendor Rating.

Q 4. Calculate the vendor rating for the following. The item under consideration is the same
from all suppliers.

Supplier’s data A B C
Quantity supplied 90 80 75
Quantity accepted 78 80 70
Price of each item Rs 4 Rs 4.2 Rs 3.9
Delivery Promised 6 weeks 6 weeks 6 weeks
Actual deliveries made 8 weeks 6.2 weeks 7 weeks
in
Weightage for quality = 70%, price= 20% and Delivery = 10%

Q 5. Calculate the vendor rating for the following weightage.

Supplier data I II III

Quantity Supplied 108 90 80
Equivalent Quantity accepted 102 90 75
Price of item Re 1 Rs 1.2 Rs 1.1
Delivery promised 3 weeks 4 4 weeks
weeks
Actual Delivery 2.7 weeks 5 4.4 weeks
weeks
Response to suggestion 90% 85% 100%
Q 6. List the objectives of Inventory management.

Q 7. List all the elements of inventory Cost.

Q 8. Calculate the carrying cost and inventory cost on the data provided below:

Various heads Rs in lakhs

Opening Inventory 2974.61
Closing Inventory 3004.30
Average Inventory 2989.47
Salaries of stores dept 24.84
Rent of stores bldng 7.40
Computer services 15.50
Admn overheads 21.70
Insurance 8.25
Other exp like fuel, power etc 16.60
Maint of Transport vehicles of 1.80
stores
Material accounts 1.07

Salaries of purchase dept 12.96

Receiving and shipping 5.40
orders
Receiving Inspection 2.85
Follow up cost 0.52
provisioning 6.80
audit 6.80

Q 9. What are the benefits of Inventory and Management control.

Q 10. Explain in detail the P and Q system of inventory control.

Q 11. List the various inventory control technique.

Q 12. Do a ABC analysis of the items from the following table:

Inventory Annual use in % of total inventory usage in Rs.

item Rs
101 3000 0.3%
 102 40000 4.0%
103 2000 0.2%
104 10000 1.0%
105 5000 0.5%
106 40000 40.0%
107 7000 0.7%
108 9000 0.9%
109 8000 0.8%
110 30000 30%
111 1000 0.1%
112 50000 5.0%
113 15000 1.5%
114 20000 2.0%
115 90000 9.0%
116 8000 0.8%
117 7000 0.7%
118 11000 1.1%
119 9000 0.9%
120 5000 0.5%
Total 20 Items Rs 10,00,000 100%
Q 13. A company’s books of accounts revealed the following:

Staff salaries of Purchase department =Rs 2,50,000

Expenses incurred in warehouse personnel salaries= Rs 2,75,000

Cost of securities for warehouse = Rs 80,000

Travelling and purchase follow up expense = Rs 80,000

Taxes and Insurance = 1.0%pa

Interest rate on inventory value = 20%pa

Cost of bills payment = Rs 30,000

Cost of materials handling in store = Rs 1,50,000

Obsolescence and pilferage = Rs 20,000

Cost of in wards inspection = Rs 48,000

The company has an average inventory of Rs 60 lacks and has placed order of 3400 orders in
the year of review. Calculate the cost per order and inventory carrying cost as percentage
based on the above costs. What would be the EOQ, if the annual demand of an item is 12000
numbers and unit price is Rs 60 per unit.

Q 14. An auto industry purchases spark plugs at the rate of Rs 25 per piece. The annual
consumption is 18,000 nos. If the ordering cost is Rs 250 per order and carrying cost is 25%pa.
What would be the EOQ. If the supplier of spark offers a discount of 5 % for order quantity of
3000 Nos per order, do u accept the discount offer.

Q 15. For a given item of constant demand rate of 60000 units per annum, the unit price is Rs
60. Ordering cost per order is Rs 600/ and the carrying cost is 30%pa on average inventory
value. What would be the total cost at optimal order quantity?

The vendor is offering a quantity discount of 5 % if 20000 units are purchased at a time. Do u
accept the offer.

Q 16. A company uses 1200 units per month of an electronic component each costing Rs 2.
Placing each order cost Rs 50/- and carrying cost is 6% pa of the average inventory.

Find EOQ,

If the company gets 5% discount if it places the single order at the first instant , should the
accept the order.

Find break even discount percentage which matches EOQ ordering

Module 7 and 8: Quality Management

Q 1. List the difference in the understanding of small “q” and big “ Q”.

Q 2. What is Total Quality Management.

Q 3. List and explain the Deming’s 14 points on management

Q 4. What are the seven sins of management as per Deming.

Q 5. What is Juran’s Quality Triology.

Q 6. Discuss Kano’s model on customer satisfaction.

Q 7. Discuss Pareto Diagram( Pareto Charts).

Q 8. Classify the quality of cost.

Q 9. What is PDCA cycle.

Q 10. What is ISO 9000.

Q 11. Write short notes on

o MBQNA Awards.
o Deming prize.
o Balbridge Awards

Q 12. What are the objectives of quality assurance.

Q 13. What are the control charts for Variable data.

Q 14. What is JIT system.