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Gujarat Technological University: Instructions

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Seat No.: ________ Enrolment No.

______________

GUJARAT TECHNOLOGICAL UNIVERSITY


M.B.A -IInd SEMESTER–EXAMINATION – MAY/JUNE- 2012
Subject code: 820006 Date: 02/06/2012
Subject Name: Production and Operations Management
Time: 10:30 am – 01:30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.

Q.1 (a) Define Operations Management. Where OM stands in the 07


organization?
(b) Explain various product design approaches. 07

Q.2 (a) XYZ television Lt. sources 3000 picture tubes for its TV 07
sets from its supplier. The Ordering cost is Rs. 10 per order
and the Carrying cost is Rs. 6 per unit per year. The
company has 300 working days per year. Find
1. EOQ
2. number of orders /year
3. total inventory cost
4. duration of an inventory cycle
(b) Describe MRP system in detail. Is MRP-II differing than 07
MRP? Explain.
OR
(b) Define inventory and inventory management. What 07
different cost components to be considered while
controlling the inventory?

Q.3 (a) Find the sequence that minimizes the total elapsed time 07
required to complete following jobs on Machines M1, M2
and M3 in the order M1M2M3.

Jo M1 M2 M3
b
A 8 3 8
B 3 4 7
C 7 5 6
D 2 2 9
E 5 1 10
F 1 6 9

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(b) A small project is composed of activities whose time 07
estimates are listed in the table below.
1. Draw the project network
2. Find the expected duration
3. What is the probability that the project will be
completed at least 4 weeks earlier than expected?

Z: 0.5 0.67 1.00 1.33 2.00


P: 0.1915 0.2486 0.3413 0.4082 0.4772

Activity To Tm Tp
1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15
OR
Q.3 (a) ABC company is engaged in manufacturing 5 brands of 07
packed snacks. It has five manufacturing setups, each
capable of manufacturing any of its bands one at a time.
The costs to make a brand on these setups vary according
to the following table.
Brands\ setups S1 S2 S3 S4 S5
B1 4 6 7 5 11
B2 7 3 6 9 5
B3 8 5 4 6 9
B4 9 12 7 11 10
B5 7 5 9 8 11
1. Find the optimum assignment of products on these
setups resulting the minimum cost.
(b) The data for a project are given below. Time is in weeks. 07
Activity Preceding Normal Crash Normal Crash
Activity Time Time Cost Cost
A - 3 2 18000 19000
B - 8 6 600 1000
C B 6 4 10000 12000
D B 5 2 4000 10000
E A 13 10 3000 9000
F A 4 4 15000 15000
G F 2 1 1200 1400
H C,E,G 6 4 3500 4500
I F 2 1 7000 8000
1. Draw a project network diagram and find the
project completion time.
2. If a deadline of 19 weeks is imposed for project
completion what would be the additional costs?

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Q.4 (a) Assume that at a bank teller window the customers arrive at 07
the average rate of 20/hr according to a Poisson
distribution. The bank teller spends an average 2 minutes
/customer to complete the service, according to exponential
distribution. Customers, who arrive from an infinite
population, are served on a FCFS basis.
1. What is the expected waiting time in the system?
2. What is the mean number of customers waiting in
the system?
3. What is the probability of zero customers in the
system?
4. What is the value of the utilization factor?
(b) What is SCM? What are the activities involved in SCM ? 07
OR
Q.4 (a) Explain the basic four supply chain strategies according to 07
Hau Lee.
(b) What is queuing? Explain the general queuing system. 07

Q.5 (a) What is SQC? Explain and differentiate various process 07


control charts.
(b) What is JIT? Explain the benefits of JIT. 07
OR
Q.5 (a) What is TQM? What is the SIX sigma concept for quality 07
management?
(b) Write a note on ISO and its various series applicable to 07
operations management.

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