OM 01
Operations Management
Assignment I
Assignment Code: 2012 OM01 B1 Last Date of Submission: 15th October, 2012
Maximum Marks: 100
Attempt all the questions. All questions are compulsory and carry equal marks
SECTION – A
1. a) Distinguish between Production and Operations Management.
b) A housewife needs to manage the house for a family of 4 persons which includes two children. Explain the various Operations decisions she will need to take and what are the Operational Challenges before her.
c) Consider the following process :
i. manufacture of ball point pens
ii Modernization of the Delhi Airport
For each of the above products identify the type of process that you would recommend and the major issues that would be faced by the Operations Manager.
2. (a) One of the strategies for being cost effective is the Location of the Plant. What factors would you consider while locating an office which caters to the tourism business. Explain the priority you would assign for each factor.
(b) Explain how Customer’s preferences can be incorporated while designing the product.
(c ) Distinguish between Value Analysis and Value Engineering. When do you think it is appropriate to carry out Value Engineering.
3. The desired daily output for an assembly line is 360 units. This assembly line will operate 450 minutes per day. The following table contains information on this product’s task times and precedence relationship.
Task A B C D E F G H
Task time ( sec) 30 35 30 35 15 65 40 25
Immediate Precedence - A A B C C E,F D,G
a) Draw the precedence diagram (6)
b) What is the workstation cycle time (7)
c) Balance the line using the longest task time heuristic and determine the efficiency of the line.
4. Explain the role of Control Charts in Quality Control. Explain the uses and the need for having the mean chart, range chart and proportion chart.
SECTION- B
A leading Indian Airline charges slightly higher for travel as compared to the competitors for travel between the same pair of cities. People still prefer to fly by this airline even when the flights are in nearly similar time slots. This means that customers are willing to give a premium for the service delivery process even though the same time is taken by the airline and in the same time slot. Similarly, the first AC compartments of the Indian Railways are not sought after with the same intensity by paying customers as the 3rd AC compartments. Here the people are willing to pay the extra premium for the service. It is important to think what could be the causes, as the service delivery seems to be as important as the product itself for competitive advantage.
Think of any service place you have experienced recently. It can be a restaurant, bank, a hospital etc. Also recall what you felt was good and bad about that service. Focus only on the service delivery process and not on the service product itself.
Part I : Think like a customer of service and develop a list of the desired features or attributes of the service, which are important to you as a customer. Then list the attributes, which will make it really unique and create a differential advantage in the sense that you will always come back to the same place for receiving that service.
Part II : Now you have to become the owner of that service provider. Now take the list in part 1 and try to group the items under major heads. Finally make a list of “Service delivery Process Design Requirements” that will have to be met by your service. As you do this, think of the measurable standards; i.e. what you would measure so that you can evaluate the efficiency of the service.
OM 01
Operations Management
Assignment II
Assignment Code: 2012 OM01 B2 Last Date of Submission: 15th Nov 2012
Maximum Marks: 100
Attempt all the questions. All questions are compulsory and carry equal marks.
SECTION – A
1. (a) Are the moving averages method and the exponential smoothing method of forecasting related ? How and Why ?
(b) Quality Control is a key element in Operations Management. Trace the methods that have been used for Quality Control from the 60’s to modern times and explain the need for such changes from time to time.
2. (a) Enumerate the key factors critical for success of JIT system in manufacturing.
(b) Daily demand for a product is normally distributed with mean at 60 units and a standard deviation of 6 units. The lead time is constant at 9 working days. The cost of placing an order is Rs. 20 and annual holding costs are 20% of the unit price of Rs. 10. A 95% service level is required for the customers who place orders during the re-order period. Determine the Economic Order Quantity and Re-order level assuming there are 300 working days annually.
3. You and your friends are about to prepare a dinner because you have heard that you will not be liking the food that is being served in your hostel mess. The tasks to be performed, their immediate predecessors and their estimated time durations are as follows.
Task Task Description Immediate Precedence Duration ( in minutes)
A Buy the Mozzarella Cheese - 30
B Slice the Mozzarella A 5
C Beat 2 eggs - 2
D Mix eggs and ricotta cheese C 3
E Cut up onions and mushrooms - 7
F Cook the tomato sauce E 25
G Boil Large quantity of water - 15
H Boil lasagna noodles G 10
I Drain the lasagna noodles H 2
J Assemble all the ingredients I,F,D,B 10
K Pre heat the oven - 15
L Bake the lasagna J,k 30
a) Construct a project network for the preparation of this dinner and find the critical path.
b) While you were cutting up onions and mushrooms, you got a phone call from your professor and you had to attend to it. This call was for 6 minutes duration . Would your dinner be delayed? Assume that you will eat the dinner as soon the cooking is over)
c) If you had used a food processor which reduces the cutting time from 7 to 2 minutes, will your dinner still be delayed.
4. (i) Write short notes on the following
a) Various methods by which Capacity planning decisions are made.
b) Uses for generating a Bill of Material for a product
(ii) Seven jobs must be processed in two Operations A and B in that sequence. Determine the Optimal order in which the jobs should be sequenced through the process using these times.
Job Time in ( minutes) in Process A Time in ( minutes) in Process A
1 9 6
2 8 5
3 7 7
4 6 3
5 1 2
6 2 6
7 4 7
SECTION-B
Amrit Lal Enterprises requires to prepare a production plan for a four month period namely February through May. For February and March, the production should exactly as per demand forecasted. For April and May, the use of overtime and inventory is permitted with a stable workforce; stable workforce means that the number of workers needed for March will be held constant through May. However, government constraints put the maximum of 5000 hours of overtime labour per month in April and May. ( zero overtime in Feb and March ) If demand exceeds supply, then backorder occur. There are 100 workers on January 31st. The forecast for the months are as follows:
February --- 80000 units , March ----- 64000 units , April ---- 1,00,000 , May ---- 40000 units.
Productivity is 4 units per worker hour , eight hour per day in normal time, 20 days per month. Assume zero inventory on February 1st. Costs of hiring Rs. 100 per new worker. ; lay off Rs. 130 per worker laid off; inventory holding cost Rs. 7 per unit per month. Normal time labour cost Rs. 12 per hour , overtime Rs. 18 per hour , backorder cost Rs. 20 per unit.
Find the total cost of production for this plan. ( Neglect the material costs etc. )
Operations Management
Assignment I
Assignment Code: 2012 OM01 B1 Last Date of Submission: 15th October, 2012
Maximum Marks: 100
Attempt all the questions. All questions are compulsory and carry equal marks
SECTION – A
1. a) Distinguish between Production and Operations Management.
b) A housewife needs to manage the house for a family of 4 persons which includes two children. Explain the various Operations decisions she will need to take and what are the Operational Challenges before her.
c) Consider the following process :
i. manufacture of ball point pens
ii Modernization of the Delhi Airport
For each of the above products identify the type of process that you would recommend and the major issues that would be faced by the Operations Manager.
2. (a) One of the strategies for being cost effective is the Location of the Plant. What factors would you consider while locating an office which caters to the tourism business. Explain the priority you would assign for each factor.
(b) Explain how Customer’s preferences can be incorporated while designing the product.
(c ) Distinguish between Value Analysis and Value Engineering. When do you think it is appropriate to carry out Value Engineering.
3. The desired daily output for an assembly line is 360 units. This assembly line will operate 450 minutes per day. The following table contains information on this product’s task times and precedence relationship.
Task A B C D E F G H
Task time ( sec) 30 35 30 35 15 65 40 25
Immediate Precedence - A A B C C E,F D,G
a) Draw the precedence diagram (6)
b) What is the workstation cycle time (7)
c) Balance the line using the longest task time heuristic and determine the efficiency of the line.
4. Explain the role of Control Charts in Quality Control. Explain the uses and the need for having the mean chart, range chart and proportion chart.
SECTION- B
A leading Indian Airline charges slightly higher for travel as compared to the competitors for travel between the same pair of cities. People still prefer to fly by this airline even when the flights are in nearly similar time slots. This means that customers are willing to give a premium for the service delivery process even though the same time is taken by the airline and in the same time slot. Similarly, the first AC compartments of the Indian Railways are not sought after with the same intensity by paying customers as the 3rd AC compartments. Here the people are willing to pay the extra premium for the service. It is important to think what could be the causes, as the service delivery seems to be as important as the product itself for competitive advantage.
Think of any service place you have experienced recently. It can be a restaurant, bank, a hospital etc. Also recall what you felt was good and bad about that service. Focus only on the service delivery process and not on the service product itself.
Part I : Think like a customer of service and develop a list of the desired features or attributes of the service, which are important to you as a customer. Then list the attributes, which will make it really unique and create a differential advantage in the sense that you will always come back to the same place for receiving that service.
Part II : Now you have to become the owner of that service provider. Now take the list in part 1 and try to group the items under major heads. Finally make a list of “Service delivery Process Design Requirements” that will have to be met by your service. As you do this, think of the measurable standards; i.e. what you would measure so that you can evaluate the efficiency of the service.
OM 01
Operations Management
Assignment II
Assignment Code: 2012 OM01 B2 Last Date of Submission: 15th Nov 2012
Maximum Marks: 100
Attempt all the questions. All questions are compulsory and carry equal marks.
SECTION – A
1. (a) Are the moving averages method and the exponential smoothing method of forecasting related ? How and Why ?
(b) Quality Control is a key element in Operations Management. Trace the methods that have been used for Quality Control from the 60’s to modern times and explain the need for such changes from time to time.
2. (a) Enumerate the key factors critical for success of JIT system in manufacturing.
(b) Daily demand for a product is normally distributed with mean at 60 units and a standard deviation of 6 units. The lead time is constant at 9 working days. The cost of placing an order is Rs. 20 and annual holding costs are 20% of the unit price of Rs. 10. A 95% service level is required for the customers who place orders during the re-order period. Determine the Economic Order Quantity and Re-order level assuming there are 300 working days annually.
3. You and your friends are about to prepare a dinner because you have heard that you will not be liking the food that is being served in your hostel mess. The tasks to be performed, their immediate predecessors and their estimated time durations are as follows.
Task Task Description Immediate Precedence Duration ( in minutes)
A Buy the Mozzarella Cheese - 30
B Slice the Mozzarella A 5
C Beat 2 eggs - 2
D Mix eggs and ricotta cheese C 3
E Cut up onions and mushrooms - 7
F Cook the tomato sauce E 25
G Boil Large quantity of water - 15
H Boil lasagna noodles G 10
I Drain the lasagna noodles H 2
J Assemble all the ingredients I,F,D,B 10
K Pre heat the oven - 15
L Bake the lasagna J,k 30
a) Construct a project network for the preparation of this dinner and find the critical path.
b) While you were cutting up onions and mushrooms, you got a phone call from your professor and you had to attend to it. This call was for 6 minutes duration . Would your dinner be delayed? Assume that you will eat the dinner as soon the cooking is over)
c) If you had used a food processor which reduces the cutting time from 7 to 2 minutes, will your dinner still be delayed.
4. (i) Write short notes on the following
a) Various methods by which Capacity planning decisions are made.
b) Uses for generating a Bill of Material for a product
(ii) Seven jobs must be processed in two Operations A and B in that sequence. Determine the Optimal order in which the jobs should be sequenced through the process using these times.
Job Time in ( minutes) in Process A Time in ( minutes) in Process A
1 9 6
2 8 5
3 7 7
4 6 3
5 1 2
6 2 6
7 4 7
SECTION-B
Amrit Lal Enterprises requires to prepare a production plan for a four month period namely February through May. For February and March, the production should exactly as per demand forecasted. For April and May, the use of overtime and inventory is permitted with a stable workforce; stable workforce means that the number of workers needed for March will be held constant through May. However, government constraints put the maximum of 5000 hours of overtime labour per month in April and May. ( zero overtime in Feb and March ) If demand exceeds supply, then backorder occur. There are 100 workers on January 31st. The forecast for the months are as follows:
February --- 80000 units , March ----- 64000 units , April ---- 1,00,000 , May ---- 40000 units.
Productivity is 4 units per worker hour , eight hour per day in normal time, 20 days per month. Assume zero inventory on February 1st. Costs of hiring Rs. 100 per new worker. ; lay off Rs. 130 per worker laid off; inventory holding cost Rs. 7 per unit per month. Normal time labour cost Rs. 12 per hour , overtime Rs. 18 per hour , backorder cost Rs. 20 per unit.
Find the total cost of production for this plan. ( Neglect the material costs etc. )
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