MGT4304 - Operation Management PDF

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STUDENT Examination NO: ………………………

KIU
Faculty of Management

Bachelor of Management Honors in HRM- 0606 01005/0606 05002


Bachelor of Management Honors in MKT- 0706 01005/0706 05002
Bachelor of Management Honors in ACC- 0806 01005/0806 05002

4th Year 2nd Semester - Final Examination - June 2022


MGT4304 - Operation Management

Date : 11th June, 2022 Marks 100%


Time : 01.00 pm – 4.00 pm Duration 03 hours

INSTRUCTIONS
A) This paper consists of Seven (07) questions.
B) Select any Five (05) questions out of seven (07) questions given.
C) Write your index number on each page of your answer script. Do Not write your
name.
D) Question number should be written clearly on the left side of the blue line in the
answer script.
E) Well-focused answers written in clear handwriting are highly expected.
F) Handover your answer script directly to the invigilator.
G) All notes, files, books, etc., should be kept at the place prescribed by the
invigilator.

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STUDENT Examination NO: ………………………
Question 01

Briefly explain the evolution of Operations Management. (20 Marks)

Question 02

“Managing Services is challenging due to various service specific factors.”


Do you agree with the above statement? Explain the answer with suitable examples.
(20 Marks)
Question 03

“Product design and process selection are two integrated processes.”


Do you agree with the above statement? Explain the answer with suitable examples.
(20 Marks)
Question 04

4.1 “When managing the waiting lines, it is necessary to understand the characteristics of the
customers.”
Do you agree with the above statement? Explain your answer. (05 Marks)

4.2 A help desk in the computer lab serves students on a first-come, first served basis. On
average, 15 students need help every hour. The help desk can serve an average of 20
students per hour.

(a) What is the average system utilization? (03 Marks)


(b) What is the average number of students in the system? (03 Marks)
(c) What is the average number of students waiting in line? (03 Marks)
(d) What is the average time a student spends in the system? (03 Marks)
(e) What is the average time a student spends waiting in line? (03 Marks)
(Total 20 Marks)

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STUDENT Examination NO: ………………………
Question 05

A precedence table is given below for a process with 5 tasks, their immediate predecessors and
their task times:
Task Immediate Task time
label predecessor(s) (minutes)
a – 2.0
b a 3.0
c – 1.5
d b, c 2.5
e d 1.0

Workers are known to work 8 hours in one shift, and there are 2 shifts per day dedicated to this
job. The daily output need is 320 pieces.
5.1 Plot a simple precedence diagram for the process, with activities on the nodes.

5.2 Calculate the positional weight of each task.


a: …………..… b: …………..… c: …………..… d: …………..… e: …………..…

5.3 Calculate the minimum cycle time (CTmin), the maximum cycle time (CTmax) and the
estimated cycle time (CT):
CTmin =…………………….. CTmax CT =……………………..
=……………………..

5.4 Calculate the theoretical minimum number of workstations. Nmin = ………………..

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STUDENT Examination NO: ………………………
5.5 Assign tasks to work stations in order of most following tasks (the tiebreaker is the greatest
task time) using the following table. Calculate the idle time for each workstation and for
the whole process. The company is using a linear process layout.
Work- Assign task Idle time
station (minutes)


5.6 Calculate the percentage of idle time (balance delay) for the line: …………..…%

5.7 Compute the efficiency of the line: …………..…%

(Total 20 Marks)
Question 06

The given below is the work elements of a small electrical appliance.

No Element Description Time (min.) Must be Precedence by


1 Place frame on work holder and clamp 0.2 ---
2 Assemble plug, grommet to power cord 0.4 ---
3 Assemble brackets to frame 0.7 1
4 Wire power cord to motor 0.1 1,2
5 Wire power cord to switch 0.3 2
6 Assemble mechanism plate to bracket 0.11 3
7 Assemble blade to bracket 0.32 3
8 Assemble motor to bracket 0.6 3,4
9 Align blade and attach to motor 0.27 6,7,8
10 Assemble switch to motor bracket 0.38 5,8
11 Attach cover, inspect, and test 0.5 9,10
12 Place in tote pan for packing 0.12 11

6.1 Draw the precedence diagram. (05 Marks)

6.2 Compare the line balancing results under Largest-Candidate Rule and Kilbridge Wester’s
Method for the above work elements assuming cycle time as 1 minute.

(15 Marks)
(Total 20 Marks)

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STUDENT Examination NO: ………………………
Question 07

You are given the following information for the ABC Company.

Month Demand Forecast number of working days


January 1,800 22
February 1,500 19
March 1,100 21
April 900 21
May 1,100 22
June 1,600 20
8,000 units 125 days

Cost Items
Materials Rs. 100/unit
Inventory holding cost Rs. 1.50/unit/month
Marginal cost of stockout Rs. 5/unit/month
Marginal cost of subcontracting Rs. 20/unit (Rs. 120 subcontracting costs less
Rs. 100 material savings)
Hiring and training cost Rs. 200/worker
Layoff cost Rs. 250/worker
Labor hours required 5/unit
Straight line cost (1st 8 hours each day) Rs. 4/hour
Overtime cost Rs. 6/hour
Inventory
Beginning inventory 400 units
Safety stock 25%

Plan 1: Follow the Case Strategy.


Plan 2: Produce to meet the minimum expected demand.

You are required to select the best production plan (out of the plan 1 and plan 2) for the ABC
Company.
(Total 20 Marks)

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