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 BComponent/ set up 4000

pieces3000 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 A

Machine B

Investment Rs 50,000 Rs 80,000Interest on Capital invested 15% PA 15 % PAHourly charges( wages+ power) Rs 10 Rs 8No of pieces produced per hour 5 8Annual 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 QFixture-Cost Rs 24,000 Rs,16000Fixture-Life 6 months 4 monthsTooling-Cost Rs 2,560 Rs 4,800Tolling -Life 300 pieces 500 pieces

Processing Time per piece

6 mts 4 mts.

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 AutomaticTime for the job 2 mts 5 mtsSet up time 2 hrs 1.5 HrsCost 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 BComponent/ set up 4000

pieces3000 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:

Process

Fixed cost per year Variable cost per unit

A Rs 1, 25,000.00 Rs 2.50B Rs 85,000.00 Rs 4.00C 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.

Week Actual Sales

1 1102 1023 1084 1215 1126 1057 1148 1069 1151011

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 .

Week Actual sales1 1102 1023 1084 1215 1126 1057 1148 1069 1151011

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

Period Number of Complaints1 602 653 554 585 64

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

Period

Demand

1 442 523 504 545 556 557 608 569 62

Q 10. Compute MAD, MSE and MAPE for the following data:

Period Actual Forecast1 217 2152 213 2163 216 2154 210 2145 213 2116 219 2147 216 2178 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.

Element Cycle 1

Cycle 2 Cycle 3 Cycle d

Element rating on scale 0-100

a 1.2 1.3 1.3 1.4 85b 0.7 0.6 0.65 0.75 120c 1.4 1.3 1.3 1.2 90d 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 1.306 902 0.972 0.895 0.798 0.919 1003 0.914 1.875 1.964 1.972 1004 2.121 2.198 2.146 2.421 1105 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 A Loc B

Loc C Loc D

Production Cost 0.35 50 40 60 30Raw Material Supply

0.25 70 80 80 60

Labor Availability 0.20 60 70 60 50Cost of living 0.05 80 70 40 80Environment 0.05 50 60 70 90Markets 0.10 70 90 80 50Total 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 CWages & Salaries 20,000 20,000 20,000Power & water Expense

20,000 23,000 25,000

Raw Material & other supplies

80,000 75,000 60,000

Total initial investment

2.0 Lacs 3.0 Lacs 2.5 Lacs

Distribution Expense 50,000 40,000 60,000Misc Expense 40,000 25,000 30,000Expected Sales/year in Rs

2,25,000 2,50,000 2,25,000

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 EECONOMIC FACTORSLabor cost 1,20,000 1,10,000 1,60,000 85,000 75,000Tptn Cost 10,000 8,000 7,000 12,000 14,000Local Taxes 17,000 20,000 25,000 19,000 17,000Power Cost 21,000 29,000 25,000 18,000 23,000Other Cost 16,000 11,000 12,000 16,000 18,000INTANGIBLE FACTORSCommunity attitude

Very Good Fair Good Fair Very Good

Labor Availability Good Very Good Fair Outstanding AcceptableQuality of Tptn Fair Acceptable Outstanding Acceptable FairQuality 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

Tasks

Immediate Follower Task time in minutes

a b 0.2b e 0.2c d 0.8d f 0.6e f 0.3f g 1.0g h 0.4h 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 CT2. 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

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 taska 0.2 bb 0.4 cc 0.2 fd 0.4 ee 1.2 gf 1.2 gg 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).

a c e g

b d f

h i

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 53 7 1 9 6

Layout B

7 1 9 6 34 10 2 5 8

Dept movement combination

Dist between deptLayout A

Dist between deptLayout B

Dept movement combination

Dist between deptLayout A

Dist between deptLayout B

1-5 30 30 3-9 30 201-7 10 10 4-5 30 301-9 10 10 4-7 10 101-10 10 10 4-10 10 102-5 10 10 5-6 10 102-6 20 20 6-9 10 102-10 10 10 7-8 20 503-6 40 10 8-10 20 30

Product Dept processingsequencing

No of productsAssessed/month

Product Dept processingsequencing

No of productsAssessed/month

A 1-5-4-10 1000 D 1-7-8-10 1000B 2-6-3-9 2000 E 2-5-6-9 2000c 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 QWeek 1

2 3 4 5 Week 1

2 3 4 5

Intra company orders - - 20 10 10

- - 10

- 10

Branch warehouse orders - 20

- - - - - - 20 -

R&D orders - 10

10 - - - - - 10 10

Customer demand(forecast+ on hand order

25 25

20 25 20

30 25 25

25 20

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 CQuantity supplied 90 80 75Quantity accepted 78 80 70Price of each item Rs 4 Rs 4.2 Rs 3.9Delivery Promised 6 weeks 6 weeks 6 weeksActual deliveries made in

8 weeks 6.2 weeks

7 weeks

Weightage for quality = 70%, price= 20% and Delivery = 10%

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

Supplier data I II IIIQuantity Supplied 108 90 80Equivalent Quantity accepted 102 90 75Price of item Re 1 Rs 1.2 Rs 1.1Delivery promised 3 weeks 4 weeks 4 weeksActual Delivery 2.7 weeks 5 weeks 4.4 weeksResponse 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 lakhsOpening Inventory 2974.61Closing Inventory 3004.30Average Inventory 2989.47Salaries of stores dept 24.84Rent of stores bldng 7.40Computer services 15.50Admn overheads 21.70Insurance 8.25Other exp like fuel, power etc 16.60Maint of Transport vehicles of stores

1.80

Material accounts 1.07

Salaries of purchase dept 12.96Receiving and shipping orders

5.40

Receiving Inspection 2.85Follow up cost 0.52provisioning 6.80audit 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 item

Annual use in Rs

% of total inventory usage in 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.