TINIV ERSITY OIi CO[,ON4BO. SRI I-ANKAFACULTY OF h'llAhiAfjHlvlENT ct Fi'INANCE

Po st6ira.ciuate & &tid- Ll areer Deve I t-'pmt::nt Unit

Master of Bu'siness Administration (S,{BA) / MII A. in MarketingSeine';ter-Il (First-Haif) Examination - .Tutre 2407

MBA 538 * Operations Managemenit

Threer (03) Lfr:urs

Instructions f,rr cart rliql*lteri

i Answcr L[YS-,{,t$-]. questioils in all selectron at least Uf.(}l{UD questions fromeach part.

ii Answers to ff,RT:-Lqrgt FAR:L,-[! shouid bc written in WPAK$TElII^SWB08KS ancl I tendr-rver to the supervisor ,SUHffiAT&LX

flAffiT-II

i. The total ilcrernelultr cost of simpier rnodel of an inventory control system is givenby:

"t'ic : i()/2)* LjH-+ (R/Q) *Cu

w*hereC,, '.'' iJolr"ling cost / unit I Year(lp -= OrrJeritrg cost / orderQ --- 0rdering quantitYR '= Anfiiial drrnand

and the econotnic order qttantii)' is given Lry:I-*;_ --

EOO .= ^ l{K!:- V C n

State all assurtFtions made in deriving the aborre equations[03 Marks]

t l l

IV

Anal-vze the model graphrca111, rvhen su5i1r1'', iead tine is not constant and varyingwith each '.ime an oreler is plaet:cl.

t03 Nfarksl

Discuss hor,v this rnoclei iri appliecl ra'heu yoLt leai r.vith quantity price breaks. Y ouranswer.must incluctre steps invoh'cd in ar','ir,'ing tu the economic order quantity.

[04 Marksj

Items pi:rchased liom a vencli;i oi]:it iiZi} each, and tire fbrecast fbr next year'sdemand is 1,000 units. lf it costs $5 *,'v'ery time arr order is placed fcrr more units andthe stor;rge cost is $4 per r"rnit per.vear'" Ca.lc"rjatr: the i'ollo'wlllSl:

)

(Total20 Marks)

What is the strategic nole of dernanii iirrtc;,rsting: in bilsines-'; planning? Explainbrieflv.

i 'r.Io

What quantit)'should hs ,rrdere{"| each tinle'iWhat is the totalr:rderi'in6 cost fi)r a year?

c^ What is the total st{-lrage r,:ost {br a vear'/

What are the steps involved ill fixing a forecasting rnoclei toconsidering past datii? Lixpiain.

The formulae for expcnential srnoothing and adjusted exponentialstandard notations are gil'en below:

Simple exponential smootltiug F1nr == cr.Dt + (li - u)F1Adjusted exponentiitl smoothinl; AF,*r =F1*1* T1*1

Where Tt*r = i3(Ftor - F,) :"( l - P) Tt

Discuss the behavior of smooil Ling constant t,r.

[04 Marks][03 Marks][03 Marks]

[02 Marksl

an organization

[06 Marks]

smoothing withl l l .

102 Marksl

y*"-]-q"1lilr;;l- s;t"s ($)T. Ii-0ffir;;il-s;t"' ($)-i. iI I l l l u r ! !4 l ruJ

__----j-2{ )05 I i 138

* _ . _ _ . . - . i _

Quarterly sales of tloviers e.t a wtrolesaler are as fblitrws:

l"orecast quarterly sales fbr r'cr* 2007 usinq

a. Simple exponential srnonthing with tr:0' lb. ,z\djustcd exponential rir;r,;othiug u'ith sr.'= 0.1 and 1p '= 11.1

State ail ynui ottumpti,.,r:s. 110 Marks]

(Total20 Marks)

What i:i Distribution Requirement Planning {DRI'}i? 102 Marksl

t.t.

Dii;cr:ss steps involvecl in implementilg supplv chaitt prar;tices in your organizatton.

[08 Marks]

{BC' l]iq;ycle (l]vt) X,rrJ. has .r centrrl warehr-ritsc. iv]rich {}perates, at a location farf,r\\ni tilc assembly planf. T'he bic;r'cies are disr:'itruted iiom the central warehouseto rcgilnal warehouse:;. 'I'he central r.!'atreholt.:ie currently has 950 bicycies and asafeV stock of 150 is to be strictXy rr,.aintaine:il tr: cater demand uncertainty. Thedistri:rution lead-time has been estimai.ed as 2 r;ionths" A container full load couldacconrmodate 200 bicl'cles and tirere.''ore the film expects at least a minirnumorder size of 200 units" Fiovrever, the warehouse can order more than theminirnum order quantity bLrt each lot siz:e rnust satisfy the fi"rll container load. Thedafti gathered from a number of distribution points ha'ue been tabulated as a totalgross reqirirement for thu 'bicycle. Note that due to a kiss in demand of thebir;ycles since August" the ,Cistribution nranager has decided to reduce the safetyslock to 75 units startins ftom Juiv.

Jun Jul Aus3_50 30u 120

f M"rh -.

I t#;-lF.'bTM* -T tpi-Ir't"r;

i-E!;yrtgl- - --l]sr iaqqhse-It:L l?zqp0 Marksl

(Total20 Marks)Derive a plan to nlanage ilrer ciemand.

4i

l t

List two MF{P II problernu unil gx-piain lrow it is soivedand Schedr"i ling) system.

rn APS (Advanced Planning

[03 Marks]

[05 Marks]

within the bracketl l l

Briefly explain the follorving tcririinologies in h,LRP.

(a) Shrinl,rage factor(b) Scra',:r facror(c) Do'.;k to stock lead time(d) O'.'der multiple(e) (.'hildren of the parentr

In the bill of rnaterial stnicturr-' sirrrl'rt trelolv. the nuinhersrepresenl s quantities tr)er iisserrrhl)'.

L*i

The rnaster prodr,rction st:hedule for th"e finished item A is given below;

The other data to consider during materiai planning is listed in the table below:

20

2 3 A1+ 5 61 0 0 300 0 ?"50 1 5 0

il;* fQ;'titifil;d rt'".]_---o 'd;; -T--o.d*

_ __ _ Lq-s Hryd ll_qtsg!) | Ivtiqipusq__t_vlglSxle-L- | -19---j-----t ---l noiq--j --ryte-

100

Perform a conrpletecon:,ider ins traditional

material pianningMI{P concept.

planning horizon of 5 periods

[2 marks]

for the

(Total20 Marks)

)

ABC Co l,td. presenllir manufactures customlzed machine elements. Its highly skilledwork fbrce, who has diversifled skills" is a gr:eat strength fbr th,e cornpany. The companyclaim ilremium price for its highllr cnstomized prochlcts. I{owever factory mangerrecently observeci some complaints fi'om its customers. MissinE5 some important featuresof the product ancl delaS's in deliverl, are the major complaiirs noticed by the factorymanalJer.

i \\rhat ob"iectives should be aitroptcrl in rnanufhcturing i.vith respect to cost, delivery,quali ty. anci i {, : .xibiI i tv?

[05 marks]ii What may be tlie causes for irrobienrs in nresent production system? What are the

possible improv':rnent tools to elirninate them'J[05 marksi

iii The company rvishes to change its business strategy by shif,ting its market fr6mcustomized ptoducts to trigh t'oJufiic stancJarcj producls. What are the changesneeded in mernufacturing strateE)' u'i,th respe'ct to pror:ess. equiprnent, workf,orce,and quality rr:anagement?

[08 marks]

(Total20 lVlarks)6

What are the relative ach'antages and rjisaclv,{ntageous srJ'incremental and one-stepcapacity str"ategies? Discuss in what situations each of tliese strategies is suitable.

[08 marks]An assernt,ly line is trl be designr:d to cper;rte ll rzi hours per tial,and supply a steadydemand of 300 units prer cia,v" Tlre tasir: anci f heir penfbrrnurr,,"l tirnes u.* giu*n in thetable nexr page.

\a.b.

Draw the precedence ciiagramWhat is the c-y-cle tirnel)Assign the tasks into workstatlons tn give an eflicient line.

[03 marks][02 marks][07 marks]

Expiain the sa"rpe of 'Qualit3, ccntrol'Management'( fQM).

(Total20 Marks)

"Qualitv i{ssurance', and'Total Quality

[06 Marks]

l l l

Explain'Quali.ty of design' and 'Qr.la.lity of'confi:rrrnanco'. Discnss their impact onthe organizational performanci:.

[07 Marks]

Head of an academic department is itusrlrated b1, the depa.rtment's inability toprovide good computer facilities for the str:rXenls ot the: department. Show howyou would use a fishbone (cause and effect) diagram to analyze this situation.

[07 marks]

(Total20 Marks)