VTU Mechanical Engineering (Semester 8)
Operations Management
May 2016
Total marks: --
Total time: --
(1) Assume appropriate data and state your reasons
(2) Marks are given to the right of every question
(3) Draw neat diagrams wherever necessary

1(a) Define operation management. Draw the operations management system showing input and output model for an international airport.
6 M
1(b) Briefly explain how service producers differ from goods producers in important aspects of their operations.
6 M
1(c) With neat schematic sketch, explain the frame work managing operations.
8 M

2(a) Define decision making.Explain the frame work for decision making.
6 M
2(b) Two assembly robots X and Y working at the same rate together produce 400 filters per day. During a recent day, 40 filters were found defective. Given that the filter is defective, there is 0.40 probability it was produced it was produced by robot X (i.e. Px/d=0.40). What is the probability that a filter selected at random is :
i) Defective
ii) Produced by robot Y
iii) Defective and produced by robot X
iv) Defective or produced by robot X.
4 M
2(c) Define BEP. Briefly explain the various methods of lowering the breakeven point.
10 M

3(a) Briefly explain the following :
i) Time series forecasting
ii) Forecasting error and tracking signal.
10 M
3(b) The following table gives the annual shipment (tons) of weded tube by an aluminum producer to machinery manu facturers :
Year 2004 05 06 07 08 09 10 11 12 13 2014
Shipment (tons) 2 3 6 10 8 7 12 14 14 18 19

Use the least square method to develop a linear trend equation for the data given, state the equation and forecast the shipment for 2015.
10 M

4(a) Define capacity planning. Explain long-terms and short-term capacity strategies.
5 M
4(b) The individual component capacities (in units/day) for an assembly line that consists of five activties are shown in the figure below Fig.Q4(b)
i) What is the system capacity?
ii) What is the efficiency of the system?
5 M
4(c) Annual demand for a manufacturing organization capacity is expected to be as follow :
Unit demanded 8000 10000 15000 20000
Probability 0.5 0.2 0.2 0.1
Revenues are Rs.35/unit. The existing manufacturing facility has annual fixed cost/operation are Rs.2lakhs. Variable manufacturing cost are Rs.7.75/unit
& Rs.7.42/unit at the
15000 and 20000 unit output level respectively. An expanded facility under consideration would require RS.2,50,000 fixed operating cost annually. Variable cost are
Rs.3.8/unit and Rs.4.9/unit at the
20000 unit output level receptively. In order to maximize the earnings which size facility should be selected?
10 M

5(a) List and explain the aggregating planning strategies.
6 M
5(b) Demand forecast for a non automatic washing machine is given inthe following table for three periods
Period Demand forecast Limits on sources of capacity
Regular Overtime Subcontract
1 600 975 225 150
2 1050 975 225 150
3 1600 975 225 150
Initial inventory=0
Ending inventory=220
Unit production cost(regular)=Rs.5000/-
Overtime production cost /unit =Rs.8000
Subcontracting cost/unit=Rs.12000/-
Back odering cost=Rs.400/unit/period
Inventory carrying cost=100/unit/period Formulate the aggregate planning problem by transportation method.
14 M

6(a) Define inventory. Enlist the various reasons for maintaining inventories.
6 M
6(b) Enlist the characteristics of manufacturing model with no shortages.
4 M
6(c) A company puchases 9000 parts of a machine for its annual requirement , odering one month's usage at a time. Each part cost Rs.20/-. The odering cost per order is Rs.15/- and the carrying charges are 15% of the average inventory per year. Determine the economical puchasing policy for the company. What advice would you offer and how much would it save the company per year?
10 M

7(a) Define MRP.Explain the fundamental concept of MRP.
7 M
7(b) Briefly explain MRP-II.
7 M
7(c) A company makes Q model from components R, S and T component R is made from 2 units of component X and one unit of component Y. Component T is made from one unit of component Y and 3 units of component Z.
i) Draw the product structure tree for the Q-model
ii) Calculate the gross requirement for each of the components if the company plans to build 100 units of its Q-model, if 150 units component T and 200 units of component R in ineventories.
6 M

8(a) Define supply chain.Explain the components of supply chain in detail.
8 M
8(b) With neat block diagram, explain the various activities of company and supplier.
8 M
8(c) Bull whip effect in supply chains.Explain.
4 M

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