Birla Institute of Technology & Science, Pilani
Work-Integrated Learning Programmes Division
First Semester 2022-2023
Mid-Semester Test
(EC-2 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.
Q.1
: DM ZG533
: MANUFACTURING PLANNING & CONTROL
: Open Book
: 30%
: 2 Hours
: Sunday, 25/09/2022 (AN)
No. of Pages
=2
No. of Questions = 7
Please follow all the Instructions to Candidates given on the cover page of the answer book.
All parts of a question should be answered consecutively. Each answer should start from a fresh page.
Assumptions made if any, should be stated clearly at the beginning of your answer.
A product manufacturing company is deciding between manufacturing a part in-house
that costs $26 per unit, including direct cost, fixed overheads, and variable overheads,
as given in the table below.
Cost Head
Cost per Unit ($)
Direct Cost
15
Fixed Overhead
4
Variable Overhead
7
Total Cost
26
The same part is available in the market at $23 per unit, including the cost of buying,
shipping, and warehousing, as shown in the table below.
Cost Head
Cost Per Unit ($)
Cost of Part
20
Shipping & ware housing cost
3
Total Cost
23
Based on this data, is it economical for the company to go for buying the product from
market or manufacturing in house? (6 marks)
Q.2
Explain what you understand by the term “Theory of constraints”. What are the
possible special challenges to implementing TOC (Theory of Constraints) in a maketo-order environment? (5 marks)
Q.3
What is a floating bottleneck? What causes this to occur? (4 marks)
Q.4
What is elevation of bottleneck in TOC? What are the two methods of doing it? What
are its benefits? (5 marks)
Q.5
What is the difference between product life cycles and industry life cycles? (5 marks)
Q.6
During which stage of product life cycle the customer develop a tendency of
indifference to product? Why? (3 marks)
Q.7
Give an example of an industry which has a shorter product life cycle? Why? (2
marks)
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