MS 5 Management of Machines and Materials Test Paper

MBA - Master of Business Administration

Note : (i) Attempt any three questions from Section A.
(ii) Section B is compulsory

SECTION A

1 a). Why is R & D a key factor in productivity improvement? Name some ways R & D contributes to productivity improvements.

b) Some suggest that 'expectation is the key to service success'. Give an example from your own experience to support or refute this assertion.

2. a) i) Give some reasons why methods analysis are needed.

ii) If an average worker could be identified, what advantages would there be in using that person for a time study? What are some reasons why an average worker might not be studied?

b) Udhampur Distilleries ltd has for existing facilities - W, X, Y, Z. The details of these facilities are given below. The company wants to locate a new facility such that the total transportation cost is the minimum. Advise the management of the company about the best possible location using the simple median model. Also, find the total transportation cost.

Existing facility F Annual Loads between F and new Facility (Units) Cost of moving one unit distance (Rs) Coordinate Location (x,y)
W 279 10 (20,30)
X 473 10 (70,10)
Y 350 10 (50,40)
Z 266 10 (10,80)


3. a) A battery wholesale company purchases batteries for Rs. 140, and it costs Rs. 11 to proces an order. The company sells about 12000 of a particular type of battery per year at uniform rate. the company is open 5 days a week for 52 weeks per year. The order lead time is 3 days, and the company wants to have an average of 2 days sales on hand as safety stock when new order is scheduled to arrive. The holding cost is estimated to be 24 % of the item cost per year. Determine

i) EOQ
ii) Expected level of the maximum inventory.
iii) Reorder level
iv) Average inventory level
v) Average annual cost to hold inventory

b) The following table contains info concerning four jobs that are awaiting processing at a work centre

Job job time (days) Due date (days)
A 14 20
B 10 16
C 7 15
D 6 17

Suppose the jobs using

i) Shortest processing time (SPT)
ii) Processing with due dates assume the list is by order of arrival

For each of the methods, determine the average job flow time, average lateness and average number of jobs at the work centre. is one method superior to the other. explain

4. a) i) Describe value anaysis. Why is purchasing department sometimes helpful in value analysis programmes.

ii) Should the supplier with the highest quality-lowest price combination always be selected over other. Explain.

b) Assume that an airline, a hotel, and a hospital have chosen quality for differentiation. Identify two or more measures of quality for a firm in each of these industries.

5 a) Discuss the issue of centralization versus decentralization of the purchasing function.

b) Describe the 'integrated concept of material mangement' and state how it is important in managing a big manufacturing company.

SECTION B

6. A construction project has 10 activities. :

Activity Immediate Predecessor Time (weeks)
1 -- 4
2 1 2
3 1 4
4 1 3
5 2, 3 5
6 3 6
7 4 2
8 5 3
9 6,7 5
10 8,9 7

i) Draw the network and find out the normal duration and minimum duration

ii) Find the critical path?

iii) If activities 1 and 10 cannot be shortened, but activities 2 through 9 can be shortened to a minimum of 1 week at a cost of Rs. 50000 per week, which activities would you shorten to cut the project by four weeks?

7. Write short notes on any four of the following:

a) Cost of quality
b) Taxonomy of waste
c) VED analysis
d) Preventive maintenance
e) CRAFT
f) CAD/CAM

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