IMT 15 Production and Operation Management M3

IMT 15 Production and Operation Management M3
1. What is operations strategy? What is the role of operations strategy in a business enterprise
engaged in manufacturing of innovative products? How are operations strategies developed?
2. Major Jasbir Singh after taking voluntary retirement from Army has started a Car Rental
Business. His company serves the Corporates and Business houses in Delhi NCR region. List
and describe buying cycle, conversion cycle and selling cycle processes of a car rental
3. Himalayan Adventure Rafting Company has decided to produce rubber rafts due to Quality
and Availability problem in India. Details of manufacturing processes available are as follows:
Process A: Company can produce rafts at an estimated investment in semi-automatic
Plant and Machinery of Rs. 5, 00,000. Labor & material cost is approximately Rs.1250 per

Process B: Rafts can be produced on fully automated Plant and Machinery at an
investment of Rs.25, 00,000 that would reduce the variable cost of manufacturing to Rs.
500 per raft.
Rubber raft can be sold at a price of Rs. 2500 per raft. Compare the two manufacturing
processes utilizing Break Even Analysis Technique. For what volume of demand should
each process be chosen?
4. Nanotech Electronics Ltd. manufacturing flash drives has decided to diversify in to
manufacturing of DVD Players. CMD has given 12 months’ time to plant for product
development and commercial production to meet forecasted demand of year 2010. Describe
the process to be followed for product design and development of the new business. Explain
the technique to get the voice of customer in to the design specification of the product.
5. What are the benefits of developing an aggregate plan, from the perspective of operations
management, marketing, finance and human resources management? Describe the inputs
required and output generated from the aggregate production plan.


1. Blessings Electronics Ltd is in the business of manufacturing and trading electronic memory
modules. Product is made to stock and sold as per the market demand. Annual demand rate
for MC1 product model used in cameras is 12000 units. One unit of the product costs $ 10 and
inventory holding cost rate is 24% / year. Setting up to produce a batch of products requires
changeover of equipment which takes 4 hour. The cost of equipment down time and labor is $
100/hr. Determine for this product case:
a. Economic Order Quantity
b. Total inventory costs
c. Total annual cost to the business
2. Twenty samples of n=200 were taken by an operator at a workstation in a production process.
The number of defective items in each sample were recorded as follows:
Sample Number of
p Sample Number of
1 12 0.060 11 16 0.080
2 18 0.090 12 14 0.070
3 10 0.050 13 12 0.060
4 14 0.070 14 16 0.080
5 16 0.080 15 18 0.090
6 19 0.095 16 20 0.100
7 17 0.085 17 18 0.090
8 12 0.060 18 20 0.100
9 11 0.055 19 21 0.105
10 14 0.070 20 22 0.110
Management wants to develop a p chart using 3 sigma limits. Set up the p-chart and plot the
observations to determine if the process was out of control at any point.

3. a) “If line employees are required to assume the quality control function, their productivity will
decrease.” Express your views on this.
b) Why must JIT have a stable schedule and partnering with Vendors?
4. a) What are the three types of demand behavior while forecasting demand? Draw each type of
demand behavior curve with time.
b) A manufacturing company has monthly demand for one of its products as follows
February 520
March 490
April 550
May 580
June 600
July 420
August 510
September 610
Develop a three-period moving average forecast and a three-period weighted moving average
forecast with weights of 0.50, 0.30, and 0.20 for the most recent demand values, in that order.
Calculate MAD (Mean Absolute Deviation) for each forecast, and indicate which would seem
to be most accurate.
5. Rainbow Automobiles Ltd. want to start their manufacturing unit outside India for
manufacturing of Low price model of their newly designed car for the Global Market. This
model of car has done well in India. They have short listed three locations; these are Nepal,
Singapore and Taiwan. Utilizing the Factor Rating Analysis Method determine and propose the
location of new Plant. Support your answer with the facts.
1. Business writer Tom Peters has suggested that in making process changes, we should “Try it,
test it, and get on with it”. How this philosophy signifies with the continuous improvement
philosophy in Production and Operations Management?
2. Explain the difference between the following:
(a) DMAIC cycle & PDCA cycle
(b) Short range and long range forecasts
(c) TPM and MRO in maintenance management

3. How can firms compete operationally? Describe the concepts of competitive priorities,
competitive capabilities, order winners, and order qualifiers.
4. Tasks A, B,C, ……, H, I constitute a project. The precedence relationships are
A < D; A < E; B < F; D < F; C < G; C < H; F < I; G < I.
Draw a network to represent the project and find the minimum time of completion of the project
when time, in days, of each task is as follows:
Task : A B C D E F G H I
Time : 8 10 8 10 16 17 18 14 9
Also identify the critical path.
5. Write short notes on any three of the following:
a. Dimensions of Quality
b. Line Balancing
c. Use of ERP in Material Requirement Planning
Select a manufacturing or a service providing organization, visit and study the processes involved in
manufacturing of products or developing services. Prepare a report covering following scope in
(a) Type of layout of the facility and its sketch
(b) Input and output at each stage of process
(c) Value addition at each stage
(d) Cycle time of production process
(e) Scope of productivity improvement
Plan and visit a departmental store or a reputed restaurant or a corporate bank and perform a quick
service delivery study / audit, thinking like a customer. Prepare a report covering following scope in
(a) Desired features of the service delivery important for customer satisfaction.
(b) List the attributes which will make it unique & create differential advantage
(c) Evaluate the three T’s of service on a scale of 1 (poor) to 5 (excellent):
i. The task
ii. The treatment
iii. The tangible features of service
Tangible features to include the environment, layout and appearance of the facility and not
the goods you purchased or service you enjoyed.

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