MS-53 Production and Operation Management Exam Paper
MBA - Master of Business Administration
Note: Section A has 5 questions that carry 20 marks each. Attempt any three questions. Section B is compulsory and carries 40 marks.
1. Organizations may be viewed as systems. The system view is important to operations managers since (a) the production/operation system is a part of the firm or organisation and
(b) within the production/operations function there are subsystems. Explain.
2. The forecast values and the actual values for the different quarters are given below. Calculate the RSFE (Running Sum of Forecast Error), Forecast Error, Cumulative Error and Mean Absolute Deviation (MAD). Calculate also the Tracking Signal (TS)
| Quarter | 1 | 2 | 3 | 4 | 5 |
| Forecast Demand | 110 | 110 | 110 | 120 | 120 |
| Actual Demand | 100 | 105 | 125 | 110 | 135 |
3. The following REL chart is given for the departments A,B, C and D which are to be laid out on a 2x2 grid. CORELAP method is being used. Arrange the departments into a suitable 2x2 grid.
REL Chart
| A | B | C | D | |
| A | – | |||
| B | X | – | ||
| C | A | O | –– | |
| D | E | U | I | – |
Assume A=6, E=5,1=4,0=3, u-2 AND x=1.
4. What are the important elements of JIT manufacturing? How does JIT system eliminate waste, enforce continuous improvements? What are the benefits of JIT manufacturing?
5. An appliance store carries a certain brand of TV which has the folloing characteristics:
Average annual sales = 100 units
Ordering cost = Rs. 25 per order
Carrying cost = 25 percent per year
Item cost = Rs. 400 per unit
Lead time -= 4 days
Working days per year = 250
(a) Determine the EOQ
(b) Calculate the reorder point for a 95% service level assessing normal demand.
SECTION B
6. The net requirements of an item per week are as shown below:
| Week | Net Requirements |
| 3 | 200 |
| 4 | ––– |
| 5 | 100 |
| 6 | 75 |
| 7 | 400 |
| 8 | –– |
| 9 | 300 |
| 10 | 200 |
| 11 | 100 |
| 12 | 200 |
The set up costs for this item are Rs. 1000. The inventory carrying costs are taken as 30 percent. The value of the item is Rs. 500 per unit.
If (a) the lead time to produce the item is two weeks, (b) there is no stock of this item on hand now, and 9c) we are in week 1, compute the size and timing of the order release for this item. Use part period balancing in your computations.
7. Explain the following:
(a) Quality Control, Quality Assurance and Total Quality
(b) Group Technology
(c) Computer-Aided Process Planning (CAPP)
