RTU 2015 Question Paper Semester VIII Mechanical Engineering Operations Management

RollNo. Total No of Pages: tr
8E4050
B. Tech. VIII Sem. (Main/Back) Exam., April, 2015
Mechanical Engineering
8ME2 Operations Management

Time: 3 Hours Maximum Marks: 80
Min. Passing Marks: 24
Instructions to Candidates :
Attempt any five questians, selecting one question from each unil. All questions
carry equal marks. Schenntic diagrants must be shown wherever necessary. Any
datayoufeel missing suitabk be assumed ond stated clearly.
[Jnits of qrutnities used./calculated must be stated clearly.
u"se of follow'ing supporting material is permined during examination.

I. \.IL 2.NIL

UNIT - I

Q.l (a) Explain what is meant by the term serv'ice revolution? Name five service
industries and explain in brief their service rypes. t6l

(b) A large health maintenance organization (HMO) was created as a result of a
corporate merger two years ago. Cindy Belle, the operation manager, needs to

develop a staffing plan for the legal department. She wants to use the two years

of historical law suit data given below to forecast the number of law suits filed

against the company for one month ahead. t10l

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No of No of No of
Month Lawsuits Month Lawsuits Month Lawsuits
tt6 951 t7 63
225 r0 56 18 57
316 1l 67 19 48
424 t2 45 20 55
s38 l3 53 2t 6l
646 t4 61 22 5l
754 15 55 23 56
852 16 69 24 53

(i) Develop moving average forecasts for the past l0 months (months 15 - 24)
for AP =2,4,6 & 8 months.

(ii) Which AP results in the lowest mean absolute forecasting error? Which AP
would you recommend? Why?

(iii) Using your recornmended AP, forecast the number of lawsuits expected for
next month (month 25)

OR

Q.l (a) Define and describe the concept of a product life cycle for each srage of the
product life cycle. Give an example of a product that is in that stage. t61

O) A toy company buys large quantities of plastic pellets for use in the manufacture
of its products. Production manager Josh Kang wants to develop a forecasting

[8E40s0] PageZ of7 [82ool

system for plastic pellet prices. The price per pound of plastic pellets has varied

as shown: t10l

oellets
Plastic Plastic pellets
Month Month
price/pound price / pound
I $0.39 9 $0.3s
2 0.41 10 0.38

3 0.45 11 0.39
4 0.4 t2 0.43
t, 5 0.40 l3 0.37
6 0.41 t4 0.38
I
7 0.38 l5 0.36
TP 8 0.36 t6 0.39

(i) Use exponential smoothing to forecast monthly plastic pellet prices.
Coryc wbat the forecasts would have been for all the months of
F
historical data for c = 0.1, c = 0.3 and cr = 0.5 if the assumed forecast for
I

all s's in the first month is $0.39.

I

(ii) Which alpha value results in tre least mean absolute deviation for months 7
It - t6?
6I
(iii) Use the best alpha value for part (ii) to compute the forecasted plastic
IE
pellets price for month 17.

Ir

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Q.zDiscuss different types of ,ro.r"ffir, -

(a) Examples & figure (layouts) t6l
(b) Triveni steels (P) Ltd is planning to start a new factory for manufacturing steel
utensils. It is considering three location options, namely Bokaro, Jamshedpur and
Bhilai. The fixed costs at the three locations have been estimated at Rs 8.15
million, Rs 7.377 million and Rs 7.903 million, respectively. The variable costs
at the three locations are estimated at Rs 500 per unit, Rs 580 per unit and Rs 490
per unit respectively. The factory will have an annual production capacity of
10,000 steel utensils and in the initial years it will operate at 75Vo efficiency.
Find the best location option which has the lowest total cost of production.
tlgl

OR
Q.2 (a) Name three ways that firms can reduce long - range capacity. Name five ways
that firms can expand long - range capacity.
t6l
(b) A manufacturing needs to add more production capacity. Two alternatives are
now being studied - automated and manual. The information below is important
to this decision.
tl0l
Automated Process Manual Process
Annual fixed cost $ 545,000 $ 123,000
variable cost per product $ 1s.66 $ 17.69
Estimated annual production
(in no to products): Year I 120,0000 120,000

Year 5 150,000 150,000

Year 10 220,OA0 220,000

[8E4oso] Page 4 of7 [82001

(i) Which alternative would be the least cost alternative in year 1, 5 & 10?
(ii) How much would the variable cost per unit have to be in year 5 for the
automated alternative to justify the additional annual fixed cost of the
automated alternative over the manual alternative?

Q.3 (a) What is materials requirement planning (MRP)? What are the in puts and out
puts required by the MRP processing logic? t6l
(b) The central terminal at the Quick Cargo Air Freight company receives air freight
from aircraft arriving from all over the United States and redistributes it to
aircraft for shipment to all U.S. destinations. The company guarantees overnight
shipment of all parcels, so enough personnel must be available to process all
cargo as it arrives. The company now has 24 employees working in the terminal.
The forecasted demand for ware house workers for the next seven months is 24,
26, 30, 28, 28, 24 & 24. It costs $2,000 to hire and $ 3,500 to lay off each
worker. If over time is used to supply labour beyond the present work force
straight time capacity, it will cost the equivalent of $2,600 more for each
additional worker needed. Should the company use a level capacity with over
time or a matching demand plan for the next six months? tl0l

Q-: Lrsr t}re adr antases and disadvantages of these traditional aggregate plans: tl6]
rar }{atching demand
(b) Level capacitl' '*'ith inventory
(c) Level capacity with back log.
(d) Level capacity with subcontracting.
(e) Level capacity with part time workers.
Give suitable examples.

[8E40s0] Page 5 of7 [82ool

UNIT - IV
Q.4 Describe how customer - as - participant service operations are planned, controlled
analyzed, scheduled and managed.
lrsl

OR
Q.4 (a) what are routing, dispatching, prioritization and expediting? Explain.
t6I
(b) Table I gives the processing time (in hours) of seven jobs to be processed
on
three machines MI, M2 and M3 in the order Ml, M2, M3. Sequence
the jobs
Q.5
using Johnson's method and find the overall processing time. Find also the
waiting times of the jobs and the idre times of the three machines.
tl0l
Table
Job MI M2 M3
A 7 6 l0
B l0 3 9
C ll I 15

D t4 2 r3
E 2t 5 l8
F 17 4 1l
G 8 I 9

UNIT - V

Q.5 (a) How is the producer's model of inventory different from the retailer's model?
Derive an expressive for the Eoe in the producer's model.
- t6l

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(b) If the annual demand for a product is 350,000 units, then the annual
carrying cost
rate is 25Vo of the cost of the unit. The product
ttrolled costs g l4.75per unit to purchase,
and eaeh time the product is ordered the related
t16l ordering cost is $ 53.00. tlgl
(i) What is the EOe?
(ii) what is the Totar annual Storing Cost (TSC) at the Eoe?
(iii) How much would the TSC increase if the order quantity must be
2500 units
because of a standard shipping container size?
[6]

dm OR
re jobs
Q'5 (a) Why is the ABC classification of items done? How is the ABC distribution
curve
bo the (Pareto Curve) drawn? t6l
ll0I (b) 7-nn Bicycles Ltd sources 3,000 seat covers for its bicycles
from an outside
supplier' The operating cost is Rs. 10 per order
and the carrying cost is Rs. 6 per
unit per year. The company has 300 working days _
per year. Find the tlOl
(i) EoQ
(ii) The number of orders per year
(iii) Total inventory cost
(iv) No of inventory cycles in a year, and
(v) The duration of an inventory cycle.

nodel?

t6l

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