MS-53 Production and Operation Management Question Paper
MBA - Master of Business Administration
Note: There are two Sections A and B. Attempt any three questions from section A. Each question carries 25 marks. Section B is compulsory and carries 25 marks.
1. Operations personnel usually have a large volume and variety of resources at their command --- they should endeavour to make effective and efficient use of these resources to achieve the largest outputs. Comment. What are the approaches for enhancing the utilisation of resources?
2. What are the various methods of judge-mental forecasting? Comment on possible errors that are associated with judgmental forecasting.. What are the suggestions given by Armstrong for carrying out judgmental forecasting?
3. In a time study of an operation, the following observations are noted down with respective time in minutes. The performance is rated at 90% with allowances for personal needs, fatigue and other unavoidable delays as 15%. Determine the standard time for the operation.
| Observation | Time (minutes) |
| 1 | 4.2 |
| 2 | 4.0 |
| 3 | 4.5 |
| 4 | 4.3 |
| 5 | 3.8 |
| 6 | 4.8 |
4. Using the following data, obtain the EOQ and total variable cost associated with the policy of ordering quantities of that size:
Annual Demand = Rs. 25,000
Ordering Cost = Rs. 200 per order
Inventory carrying cost - 20% of average inventory value
If the lead time allowed is 5 days, what will be reordering, quantities. Total working days in a year is 300 days.
5. Write short notes on the following: (any three)
(i) Material Requirement Planning (MRP)
(ii) Mass and Batch production
(iii) Aggregate production planning
(iv) The Kanban system
(v) Relationship chart
SECTION B
6. Simco Industry uses MRP for its material planning. The table below provides the information about a particular component Z. The demand for this component is uncertain and in order to take care of the sudden spurt in the demand, a safety stock of 100 items if recommended.
Week
| Lot–for–lot Order Quantity=300 Lead time = 2 weeks | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Requirements | 50 | 100 | 80 | 200 | 50 | 40 | 100 |
| Schedule receipts | – | 200 | – | – | – | – | – |
| On hand at the end of the period/ 300 | |||||||
| Planned Order Release |
During which week/weeks should the receipts be planned? When should the orders be placed? What is the expected on hand position at the end of the week 7.
