Production Management Important questions

Unit  I :

1. Define Production Management
2. Discuss the system concept of production management
3. Discuss different Models of production systems with suitable examples
4. List out the basic functions of production management
5. Define operation management, state the historical development of OM
6. Explain different Factors influencing plant location-
7. What is Plant layout and what are its Types of layout?
8. What is meant by productivity?
9. An electrical equipment manufacturing company manufacturers AC motors, DC motors & transformers.   During the month of December the production of these items in Rupee terms has been respectively, Rs.140 million, Rs.250 million and Rs.90 million. The   inputs   of human   resources,   capital materials and power have been given below:

		Product
	AC	DC	Transformers
Human	14	23	12
Capital	28	81	14
Materials	72	108	24
Power	9	20	10

What are the total productivities of each of the three products?  

What are the partial productivities of each of the inputs?

What are the partial productivities of each of the three products?

10. An automobile company has extra capacity that can be used to produce gears that the company has been buying for Rs.300 each. if the company makes the gears, it will incur materials cost of Rs.90 per unit, labour cost of Rs.120 per unit and variable overhead cost of Rs.30 per unit. The annual fixed cost associated with the unused capacity is Rs.2, 40,000. Demand over the next year is estimated at 4000 units. Would it be profitable for the company to make the gears? 

Unit  II :

1. List out and briefly discuss different phases of  Production Planning and Control
2. What is meant  by Project Management?
3. Differenciate CPM and PERT
4. What do you mean by Material requirement planning?
5. List out the inputs of Material requirement planning.
6. Discuss Master production schedule
7. Define different levels of Aggregate planning
8. Explain different phases of project management and discuss the guidelines for network construction
9. A product line manufacturing shoes has five stations in series whose individual capacities per shift are stated in the following table. The actual output of the line is 500 pairs per shift

Station No.                                1	2	3	4	5
Individual capacity/Shift        600	650	650	550	600

Find:  (a) the system capacity, and he system efficiency.

2.  ABC company produces toilet soaps at their works in Mumbai. An aggregate

        planning measure used by ABC is tonnes of soap which includes making and

        packaging of the soap. The planning is done for a time horizon of one year   

        and for 4 quarters.

Quarter                         I        II       III       IV

Demand (tonnes) .      40        60        50     45

The company has a regular workforce which can produce 35 tonnes of output per quarter. If the workers are allowed to work overtime with a restriction that the extra time cannot be more than 20 per cent of the regular time in any time. The output rate is 25 per cent higher than regular time during overtime but the overtime expenses are 40 per cent more than that of regular time. The company subcontracts the soap making and packaging operation to a SSI unit but only at the cost of 50 per cent premium than the cost of regular production. The regular time production costs are Rs. 10,000 per tonne. Inventory carrying costs are Rs. 5,000 per tonne per annum.

Design the cost efficient aggregate plan assuming zero starting inventory. Compute total production cost.

10. To demonstrate the working of MRP, let us consider the example of manufacturing the fire extinguisher. The master production schedule to manufacture the fire extinguisher is given in Table 1, The details of Bill of Materials along with economic order quantity and stock on hand for the final product and subassemblies are shown in Table 1.1

Table 1 Master Production Schedule

Week	1           2           3           4           5           6	7           8
Demand	100                    150       140       200       140	300
	Table 1.1 Details of Bill of Materials
Parts Required	Order            No. of        Lead Time Quantity            Units            (week)	Stock on Hand

Fire extinguisher	300	1	1	150
Cylinder	450	1	2	350
Valve assemblies	400	1	1	325
Valve	350	1	1	150
Valve housing	450	1	1	350
Handle bars	700	2	1	650

Complete the material requirements plan for the fire extinguisher, cylinder, valve assembly, valve, valve housing and handle bars and show what quantities of orders must be released and when they must be released in order to satisfy the MPS.

11. An automobile component manufacturer has the plan of buying a moulding machine which can manufacture 170,000 good parts per year. The moulding  machine is a part of a product line. The system efficiency of the product line is 85%

1. What is the required systems capacity ?
2. Assume that it takes 100 sec to mould each part & plant operates 2000 hrs / yr. If moulding machines are  used only 60% of the time & are 90% efficient, what is the actual output of the moulding machine / hr ?
3. How many moulding machines would be required?

12. ABC Corporation has developed a forecast for a group of items that has the following seasonal demand pattern.

Quarter Demand                                      Cumulative Demand

1          270                                                                     270

2          220                                                                     490

3          470                                                                     960

4          670                                                                   1630

5          450                                                                   2080

6          270                                                                   2350

7          200                                                                   2550

8          370                                                                   2920

1.      Suppose that the firm estimates that it costs Rs.150 per unit to increase the production rate, Rs.200 to decrease the production rate, Rs.50 per quarter to carry the items on inventory, and an incremental cost of Rs.100 per unit if subcontracted.

2.      Compare the cost incurred if pure strategies are used.

12.  Consider the following data of a project. 

                                                                                     Duration (Weeks)

                               

ACTIVITY	PREDECESSORS)	A	M	B
A	-	3	5	8
B	-	6	7	9
C	A	4	5	9
D	B	3	5	8
E	A	4	6	9
F	C, D	5	8	11
G	C, D, E	3	6	9
H	F	1	2	9

(a)  Construct the project network.

(b)  Find the expected duration and variance of each activity,

(c)   Find the critical path and the expected project completion time.

(d)  What is the probability of completing the project on or before 30 weeks?

(e)  If the probability of completing the project is 0.9, find the expected project completion time.

13. Consider the following problem involving activities from A to J

Activity	Immediate Predecessors)	Duration (months)
A	_	1
B	A	4
C	A	2
D	A	2
E	D	3
F	D	3
G	E	2
H	F,G	1
I	C, H	3
J	B	2

a)  Construct the CPM network.     

 b)     Determine the critical path. 

Unit III:

1. What is service level?
2. What is meant by Safety stock?
3. What do you mean by Re- Order point?
4. List out and explain different types of model of inventory system
5. Derive the EOQ formula for the purchase model without shortages
6. Explain the basic principles and Bottlenecks in implementing JIT in Indian Industry
7. Briefly explain the steps which are followed in a KANBAN system
8. List out and explain the control systems in inventory.
9. Beta industry estimates that it will sell 24000 units of its product for the forthcoming year.the ordering cost is rs.150 per order and the carrying cost per unit per year is 20% of the purchase price per unit.the purchase price per unit is rs.50

Find

EOQ

No.of orders per year

Time between successive orders

Total annual cost

10. The annual demand for an automobile component is 24000 units. The carrying cost per unit per year is Re.0.40, the ordering cost is Rs.20.00 per order and the shortage cost is Rs.10.00/unit/year.

Find the optimal values for the following:

EOQ

Maximum inventory

Maximum shortage quantity

Cycle time

Inventory period t₁

Shortage period t₂

11. If a product is to be manufactured with in the company.the details are as follows:

r = 24000 units / year

k = 48000 units / year

C_o = Rs.200 per set-up

C_c = Rs.20 per unit / year

12. The demand for an item is 18000 per year. Its production rate is 3000 per month. the carrying cost is Re.0.15/unit/month and the set-up cost is Rs.500 per set-up. the shortage cost is Rs 20.00 per unit per year. find the various parameters of the inventory system. 
13. The annual demand for an item is 48000 units per year. The average lead time is 4 weeks. the standard deviation of a demand during the average lead time is 75 units / week. The cost of ordering is Rs.400 per order. The cost of purchase of the product per unit is Rs.10. the cost of carrying per unit per year is 15% of the purchase price. The maximum delay in lead time is 2 weeks and the probability of this delay is 0.25. assume a service level of 0.95 . If Q system is followed, find the reorder level.

If P system is followed, find the maximum inventory       

Unit IV:

1. Discuss the steps in constructing X BAR and R chart
2. Explain the OC curve with all its parameters
3. Distinguish between 100% inspection and acceptance sampling
4. The following table gives the number of defects in a casting used for making crank case of a diesel engine:

Casting No.	1	2	3	4	5	6	7	8	9	10
No. of Defects ( c )	15	11	25	10	12	20	15	10	17	13

Construct a c chart with 3 sigma limits and comment

5. Briefly explain the types of Six Sigma in detail.

Unit V:

1. Briefly discuss the steps in methods study
2. Explain the steps of time study using a suitable example
3. Discuss the steps of the work sampling
4. Explain the different charts and diagrams which are used in method study
5. Discuss the principles of motion economy in detail
6. In a welding shop, a direct time study was done on a welding operation. One in- experienced industrial engineer and one experienced engineer conducted the study simultaneously. They agreed precisely on cycle time but there opinion on rating the worker differed. The experienced engineer rated the worker 100% and the other engineer rated the worker 120%. They used a 0.10% allowance fraction.

Cycle Time (in mins)	Number of times observed
20	02
24	01
29	01
32	01

Determine the standard time for both the engineers and comment.

7. A job consists of three work elements and all are performed by the same operator. An analyst conducted work sampling to determine the standard time for the job. the duration of the study is two shifts each with 400 minutes of effective time. The details of the observations are summarized in the following table. The total number of acceptable units produced during the study period is 150 units. Determine the standard time by assuming the allowance of 10%

Work element	Frequency of  performance	Performance rating
1	70	80%
2	80	120%
3	50	110%