POM602
Enroll. No. -_____________________
[BMCF]
END SEMESTER EXAMINATION : AprilMay, 2021
Operations Management
Time :3.00
Hrs
Maximum Marks :50
Note: Attempt questions from all sections as directed.
Calculators are allowed during exam.
Statistical tables shall be provided.
Section - A : Attempt any Four questions out of Five . Each
question carries 05 marks.[20 Marks]
Q1.
Explain the difference between an order qualifier and an order winner. Provide
some examples.
(5)
Q2.
Explain the basic elements of Project Management? What are the differences between CPM and PERT.
(5)
Q3.
Define the strategic goals of Supply Chain Management, and indicate how procurement, transportation
and distribution have an impact on these goals.
(5)
Q4.
The carpet Discount Store has estimated annual demand of 10,000 yards of carpet for its biggest selling
brand ‘Super Shag Carpet’, with an annual carrying cost of $0.75 per yard, and an ordering cost of
$150. Determine the following:
i.
ii.
EOQ,
Number of orders that will be made annually, and
iii.
Order cycle time (given that the store is open every day except Sunday).
(5)
Q5.
Explain the 14 principles of Deming? How are they important in Quality drive of an organisation?
(5)
Section – B : Attempt any two questions out of three. Each
question carries 8marks.[16 Marks]
Q6.
A restaurant chain purchases ingredients from four different food suppliers. The
company wants to construct a new central distribution center to process and
package the ingredients before shipping them to their various restaurants. The
suppliers transport ingredient items in 40-foot truck trailers, each with a capacity of
38000 kg. The location of the four suppliers A, B, C, and D with annual number of
trailer loads that will be transported to the distribution center are as follows:
Existing Facility
Annual load
Coordinates
A
75
(200,200)
B
105
(100,500)
C
135
(250,600)
D
60
(500,300)
Suppose company wants to evaluate three different sites it has identified for its new
distribution center relative to the four suppliers identified. The coordinates of the
three sites under consideration are as follows:
Site 1: x1=360, y1=180
Site 2: x2=420, y2=450
Site 3: x3=250, y3=400
Find the best location using load-distance method.
(8)
Q7.
The Ritz Hotel has 240 rooms. The hotel’s housekeeping department is responsible for maintaining the quality
of the rooms’ appearance and cleanliness. Each individual housekeeper is responsible for an area
encompassing 20 rooms. Every room in use is thoroughly cleaned and its supplies, toiletries, and so on are
restocked each day. Any defects that the housekeeping staff notices that are not part of the normal
housekeeping service are supposed to be reported to the hotel maintenance. Every room is briefly inspected
each day by a housekeeping supervisor. However, hotel management also conducts inspection tours at random
for a detailed, thorough inspection for quality-control purposes. The management inspectors not only check
for normal housekeeping service defects like an inoperative or missing TV remote, poor TV picture quality or
reception, defective lamps, a malfunctioning clock, tears or stains in the bedcovers or curtains, or a
malfunctioning curtain pull. An inspection sample includes 12 rooms, i.e., one room selected at random from
each of the twelve 20-room room blocks serviced by a housekeeper. Following are the results from 15
inspection samples conducted at random during a 1 month period:
Sample
Number of Defects
1
12
2
8
3
16
4
14
5
10
6
11
7
9
8
14
9
13
10
15
11
12
12
10
13
14
14
17
15
15
The hotel believes that approximately 99 percent of the defects are caused by natural, random variations in
the housekeeping and room maintenance service, with 1 percent caused by nonrandom variability. They want
to construct c-chart to monitor the house keeping service.
(8)
Q8.
Write short notes on any two of the following
a)
Jonsons' Rule
b)
Green Operations Management
c)
Transformation Process
(8)
Section - C : Compulsory question[14 Marks]
Q9.
Mike-Weaver , president of weaver popcorn company of Van Buren, Indiana ,had always believed that if the
customer was not happy with an order the only thing to do was to take it back. “ No sale is complete if the
customer isn’t satisfied,” the Reverend era E. Weaver , company founder and mike’ s grand father was found
of saying. What if the order was 280,000 pounds of popcorn ( use your imagination ), and what if it was
in Tokoyo , and what if it was worth $ 70000 ? “ lets bring it back,” Weaver told Pat Vogel, The company’s
export manager, when awakened with the bad news around midnight one evening in October 1985.
The refusal of the order by Shintoa Koeki Kaisha Ltd. On the basis of excess impurities, was a hard kernel to
swallow for weaver the man and weaver the company’s ability to sell popcorn to anybody , anywhere. How
could the company recover its quality image in the face of such an embarrassment?
A few months later, trucks pulled up to the weaver plant bearing $1 million worth of high- speed optical
scanners. The new machines would subject anything passing beneath their electronic eyes to a coldhearted
inspection, dooming to the trash heap any weed seeds, dirt clods, any soybeans trying to pass themselves off
as popcorn. Goodbye irate customers. Hello quality !
However continuous improvement seldom occurs in big bangs and rarely can be accomplished simply by
buying new technology. These were the quality lessons learned by weaver in the months and years after the
new equipment was installed. Although the machines couldn’t solve weaver’s quality problems, they certainly
made people more aware of them. Questions were raised about virtually every aspect of the operation,
including the raw materials, the tools, and the people.
Things came to a head when, during a quality meeting, Marty Hall from processing informed the group that
all the talk about quality was nonsense as long as Weaver was accepting popcorn that was way out of spec,
for example in moisture content. Aware that the outgoing product cannot be good if the incoming raw materials
are not, Hall believed that the quality efforts to date were useless.
This sparked dramatic changes in weaver’s operation. Mike Weaver began to give vastly increased
responsibility for quality to people in the plant. The resigning plant manager was replaced by seven team
leaders from the plant floor. Employees were bought into the process of hiring, even for managers. Hundreds
of minor changes have been made by employees now sensitized to the importance of quality which has been
steadily improving the lesson? According to Mike weaver, “With the machines their, everybody began to see
that it takes so much more than machines. Nothing has a greater impact on the quality of the corn than these
people.” As Mike’s grandfather might have added,” Amen” .
a- Did the fact that Weaver is a family- owned business make a difference in how mike weaver thought
about quality ?Can the same attitude be created in shareholder- owned companies? (4)
bc-
What elements of the company had to change for the quality of the popcorn to improve? (5)
Can quality ever be completely automated so that people don’t make any difference?
(5)