Examinations for Semester II. / 2014 Semester I

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1 Programme Cohort BMAN/10/PT Aug BSc (Hos) Maagemet F/G/M/L F/G/M BMAN/1/FT Ja L/G Eamiatios for Semester II / 014 Semester I MODULE: OPERATIONS MANAGEMENT MODULE CODE: MGMT 307 DURATION: HOURS Istructios to Cadidates: 1. This questio paper cosists of Sectio A ad Sectio B.. Sectio A is Compulsor. 3. Aswer a two questios from Sectio B. 4. Alwas start a ew questio o a fresh page. 5. Total Marks: 100. This questio paper cotais 6 questios ad 8 pages (icludig FORMULAE SHEET). Page 1 of 8

2 SECTION A: COMPULSORY QUESTION 1: (0 MARKS) (a) (b) A software egieer is about to release a ew versio of its popular software program. What iformatio do ou thik it would take ito accout i forecastig iitial sales? A motorised law maufacturig compa iteds to use sales of law fertilizer to predict law mower sales. The store maager estimates a probable si-week lag betwee fertilizer sales ad law mower sales. The data are as follows: Period Fertilizer Sales Number of Mowers sold (Tos) (Si-Week Lag) (i) Determie the correlatio betwee the two variables. Does it appear that a relatioship betwee these variables will ield good predictios? Eplai. (8 marks) Page of 8

3 (ii) Obtai a liear regressio lie for the data. QUESTION : (0 MARKS) (a) What are si factors that cause orgaisatios to redesig their products or services? (b) A computer repair service has a desig capacit of 80 repairs per da. Its effective capacit, however, is 64 repairs per da, ad its actual output is 6 repairs per da. The maager would like to icrease the umber of repairs per da. Which of the followig factors would ou recommed that the maager ivestigate: qualit problems, abseteeism, or schedulig ad balacig? Eplai our reasoig. (c) Laout decisios affect a wide rage of facilities from factories, supermarkets, departmet stores ad others. From the three facilities listed, eplai for each what are the five cosideratios for laout desig? (8 marks) SECTION B: ANSWER ANY TWO QUESTIONS QUESTION 3: (30 MARKS) (a) What is job desig, ad wh is it importat? (8 marks) (b) A recetl egotiated uio cotract allows workers i a shippig departmet 4 miutes for rest, 10 miutes for persoal time, ad 14 miutes for delas for each four hours worked. A time stud aalst observed a job that is performed cotiuousl ad foud a average time of 6.0 miutes per ccle for a worker she rated at 95 percet. What stadard time is applicable for that operatio? (1 marks) Page 3 of 8

4 (c) What factors must be take ito accout whe developig stadards? (10 marks) QUESTION 4: (30 MARKS) (a) A compa is cosiderig the relocatio of its maufacturig plat ad admiistrative offices from a small cit i the Midwest to a similar-sized cit i the South. Approimatel 0 percet of the residets of the cit are emploed b the compa, ad ma others are emploed i busiesses such as baks, persoal services, restaurats, shoppig cetres, ad supermarkets that would suffer a declie i busiess if the compa decides to relocate. Does the compa have a social resposibilit to factor ito its decisio, the impact that its move would have o the cit? Eplai our reasoig. (15 marks) (b) The ower of Geuie Subs. Ic., hopes to epad the preset operatio b addig oe ew outlet. She has studied three locatios. Each would have the same labour ad materials costs (food, servig cotaiers, apkis, etc.) of $l.76 cets per sadwich. Sadwiches sell for $.65 each i all locatios. Ret ad equipmet costs would be $5,000 per moth for locatio A, $5,500 per moth for locatio B, ad $5,800 per moth for locatio C. (i) Determie the volume ecessar at each locatio to realize a mothl profit of $1 0,000. (ii) If epected sales at A, B, ad Care 1,000 per moth,,000 per moth, ad 3,000 per moth, respectivel, which locatio would ield the greatest profits. (9 marks) Page 4 of 8

5 QUESTION 5: (30 MARKS) (a) Eplai the use of critical path method (CPM) i project maagemet. (b) Outlie two differet was that will help project maagers i idetifig the critical path of a project. ( marks) (c) The activities i a project are show i the table below. Activit Immediate Predecessor Duratio (das) A - 6 B - 4 C - D C 7 E B,D 4 F A,E 10 G A,E H F 6 I G 11 J C 16 K H,I 8 (i) Draw the project etwork usig AOA method. (5 marks) (ii) Determie the earliest times (ES & EF) latest times (LS & LF) for each activit. (1 marks) (iii) What is the slack time for each idividual activit? (3 marks) (iv) Determie the critical path for this project. (1 marks) (v) Determie the epected completio time for the total project. (1 marks) Page 5 of 8

6 QUESTION 6: (30 MARKS) (a) Distiguish betwee fabricatio lie ad assembl lie. (b) Eplai the purpose of assembl lie balacig. (4 marks) (4 marks) (c) The activities i a assembl lie are show i the table below. The productio time available is 480 mis ad the dail demad is 60 uits. Task Assembl times (mis) Depeds o A 5 - B 3 A C 4 B D 3 B E 6 C F 1 C G 4 D,E,F H G Dail demad = 60 uits (i) Draw a precedece diagram. (4 marks) (ii) Calculate ccle time. ( marks) (iii) Calculate the theoretical miimum umber of workstatios. ( marks) (iv) Balace the lie. (4 marks) (v) Calculate the lie efficiec. ( marks) (d) Five jobs must be processed through two work cetres, The time for processig each job i hours is give i the table below. Sequece the jobs usig Johso s rule ad costruct a time-phased chart to determie the total completio time. JOB WORK CENTER 1 WORK CENTER A 1 6 B 8 14 C D 16 E 16 6 (8 marks) ***END OF QUESTION PAPER*** Page 6 of 8

7 Liear regressio a b c where c b a Predicted(depedet) variable Predictor (idepedet) Slope of Value of the lie c whe 0 FORMULAE SHEET variable b a b or b = Number of paired observatios Correlatio Coefficiet r Page 7 of 8

8 Cotrol Charts Equatios = Mea Chart: X ± A R Rage Chart: UCL = D 4 R LCL = D 3 R Number of Observatio i Subgroup, CONTROL CHARTS CONSTANTS Factor for A Chart, Lower Cotrol Limit, D 3 Upper Cotrol Limit, D Page 8 of 8

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