VTU Mechanical Engineering (Semester 8)
Operations Management
June 2014
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. Give the classification of production systems
6 M
1 (b) Explain in brief the functions of operations management.
6 M
1 (c) Define productivity. List the various factors affecting productivity
8 M

2 (a) What is Decision Making? What are the steps involved in decision making?
6 M
2 (b) Briefly explain the characteristics of operations decision and the frame work for decisions
8 M
2 (c) What is break even analysis? Explain
6 M

3 (a) What is forecasting? List the steps involved in forecasting process.
5 M
3 (b) Briefly explain the various factors affecting forecasting
5 M
3 (c) A company believes that its annual profit depend on its expenditure for research. The information for the preceding 6 years is given in the table below. Estimate the profit when the expenditure for research is 6 units. compute the values for slope and intercept.
Expenditure for Research (X) 2 3 5 4 11 5 6
Annual profit (Y) 20 25 34 30 40 31  
10 M

4 (a) Define : i) Design capacity ii) System capacity and iii) Capacity planning..
6 M
4 (b) What are the the factors influencing plant location?
6 M
4 (c) An automobile component manufacturer has the plan of buying a moulding machine which can manufacturer 17000 parts /year. The moulding m/c is apart of product line and its efficiency is 85%. i) What is the required system capacity ii) Assume that 100 seconds time is required to mould each part and the plant operates for 2000 hour/year. If the mould machines are used for 60% of the time and are 90% efficient, what is the output of moulding machines hour iii) How many moulding machines would be required
8 M

5 (a) Briefly explain the following with the help of a flow chart :
i) Aggregate planning ii) Master scheduling.
8 M
5 (b) A firm has developed the following demand forecast in units for an item which is influenced by seasonal factors
Month Jan Feb March April May June July Aug
Forecast Demand 270 220 470 670 450 270 200 370
Comulative Demand 270 490 960 1630 2080 2350 2550 2920

Suppose that the firm estimates that it costs Rs l5ofunit to increase the production rate, Rs 200/unit to decrease the production rate, Rs 150 unit per month to carry the items on inventory and Rs 100 per unit if subcontracted. Compare the cost incurred if pure strategies are followed
12 M

6 (a) What do you mean by inventory? What are the types of inventories?
4 M
6 (b) What are the major costs associated with inventories? What are the reasons for carrying inventories?
6 M
6 (c) A producer of photo equipment buys lenses from a supplier at loo dollars each. The producer requires 125 lenses/year and the ordering cost is 18 dollars/order. Carrying costs/unit year are estimated to be 20 dollars each. The supplier offers a 6% discount for purchases of 50 lenses and an 8% discount for purchases of 100 or more lenses at one time. What is the most economical amount to order at a time?
10 M

7 (a) Define Materials Requirement planning. What are the basic inputs for MRP?
6 M
7 (b) What are the benefits and limitations of MRP?
8 M
7 (c) Briefly explain the following: i) MRP-ll ii) ERP.
6 M

8 (a) Briefly explain the importance of purchasing and supply chain Management
6 M
8 (b) Write a note on Mayor Buy decision.
5 M
8 (c) Briefly explain the following
i) Vendor development
ii) E -procurement.
iii) Concept of tenders.
9 M

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