6) Different capacities used for Aggregate Planning:
a) Regular time production, subcontracting, overtime & Hiring and Firing
capacity
b) Regular time production, subcontracting, time & Hiring and Firing capacity
c) Timely production, subcontracting, overtime & Hiring and Firing capacity
d) Rough cut capacity planning
CII Institute of Logistics
PGDSCM/DSCM/ADSCM & CERTIFICATE PROGRAMS
Semester-end Examinations- December 2011
OPERATIONS MANAGEMENT II
Time: 3 hours
Marks: 100
Part A
Answer all questions
7) Which is not the general factor influencing plant location?
a) Proximity to market place
b) Industrial relations
c) Machinery
d) Availability of Land
(10 x 1 = 10 Marks)
8)
1) What are the different types of layout?
a) Product, Process, Combination , Fixed Position
b) Fixed, Cellular, Product, Process
c) Flexible, Cellular, Product, Process
d) Product, Procedure, Combination & Fixed Position
2) Which is not the characteristic of service-operations?
a) Intangible
b) Cannot be stored
c) Production and consumption is simultaneous
d) Quality Control is easy
3) Reorder Point is _____________________.
a) Probable demand + lead time
b) Expected Demand + Safety stock
c) Quantity of safety stock
d) Expected demand
4) VED is _________________.
a) Vital, elemental, & Demand
b) Voluntary, Elevated & Demand
c) Vital, Essential & Desirable
d) Vigor, Essence & Demand
5) The “Lot for lot” means _______________.
a) Batches that match the orders
b) Economic Batch quantity
c) Making batches whose batches cover a fixed period of demand
d) Economic Order quantity
 In Queuing Models is called as _____.
a) Service rate
b) Customer arrival rate
c) System utilization
d) Average number of customers
9) Linear Programming Problems has three elements:
a) Decision Variables, Objective function & Maximization
b) Decision Variables, Objective function & Minimization
c) Decision Variables, Objective function & Constraints
d) Fixed cost, variable cost and Direct cost
10) Which is not the Method Used in Aggregate Planning
a) Tabular Method
b) Graphical Method
c) Heuristic method
d) Lean Method
Part B
Answer any four
1)
2)
(4 x 15 = 60 marks)
Discuss Elaborately the Decision Areas in Operations Management.
Annual demand for an item is 4800 units. Ordering cost is Rs 500 per order.
Inventory carrying cost is 24 % of the purchase price per unit, per year. The
price breaks are shown as.
Quantity
Price (Rs.)
0 ≤ Q1 ≤ 1200
10
1200 ≤ Q2 ≤ 2000
9
2000 ≤ Q3
8
1
3)
4)
5)
6)
Find out the optimal order size using Price Discount Model.
Write about Just in time(JIT) Systems:
Explain the Goal and Philosophy of Theory Of constraints:
Consider the following two machines and six jobs flow shop scheduling
problem. Using Johnson’s Algorithm, Obtain the optimal sequence which will
minimize the make span.
Machines Number
Job
I
II
1
5
4
2
2
3
3
13
14
4
10
1
5
8
9
6
12
11
Six jobs are received for processing and their processing times and customer
delivery dates are given:
Job
Production time
Delivery date
Sequence
A
2
4
B
5
18
C
3
8
D
4
4
E
6
20
F
4
24
a) Use first come first Serve (FCFS) rule to find out the sequence and
then calculate the flow time and lateness (tardiness).
b) Use Short Processing time rule (SPT) rule to find out the sequence
and then calculate the flow time and lateness.
Part C
Answer both the questions:
1)
(2 x 15 =30 marks)
An architect has been awarded a contract to prepare a plan for an urban
renewal project. The job consist of the following activities and their
estimated times:
Activi
Immediate
Time
Description
ty
predecessors
(Days)
A
Prepare Preliminary Sketches
----2
B
Outline Specification
-----1
C
Prepare Drawings
A
3
D
Write Specifications
A,B
2
E
Run Off Prints
C,D
1
F
Have specification
B,D
3
G
Assemble Bid packages
E,F
1
a) Draw a network diagram
b) Find out the critical Path and project completion time.
2. Case Study:
SmithKline Beecham Pharmaceuticals (India) Ltd., which operates in the area of
consumer health care and pharmaceuticals. In India, it has three companies in its
fold: SmithKline Beecham Consumer healthcare (SBCH), SmithKline Beecham Asia
and SmithKline Beecham Pharmaceuticals Ltd (SBPI).
SBPI is one of the major players in the highly competitive Indian
Pharmaceuticals market. Its flagship product is a popular pain balm which has a
dominant market share. From the manufacturing view point, SBPI major product
categories are:

Capsules

Ointments’

Syrups

Tablets

Chemical bulk Drugs
Of these categories, the first three are manufactured in-house at Bangalore and
Mysore and have been awarded the ISO 9002 certification. The Good
Manufacturing Practices (GMP) code of the Industry is rigorously adhered to. The
manufacturing Philosophy is characterized by the feature of what is described as
“Mass Production” (as opposed to lean production). Batch sizes are very large and
are sought to be increased because of large set up times and also the exhaustive
batch history documentation requirements typical of the pharmaceutical industry.
Questions:
a) What is meant by batch production by SBPI with a large setup time?
b) What are the benefits of Lean manufacturing over Mass production?
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