M.B.A. DEGREE EXAMINATION,
APRIL 2017
Second Semester
PRODUCTION AND OPERATIONS MANAGEMENT
(CBCS 2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all questions.
All questions carry equal marks.
1. What is reverse engineering?
2. What do you know by locational flexibility?
3. What are the factors to be considered for good layout?
4. What is process planning? What are the aspects
considered for an effective process planning?
5. Explain the usefulness of PERT?
Part B x 10 50)
Answer all questions, choosing either or
All questions carry equal marks.
6. Briefly explain the type of manufacturing systems.
Or
Describe the importance of designing the product.
What are the various considerations made in
designing products?
Sub. Code
641205
RW- 050
2
Wk 3
7. Discuss the capacity planning strategies.
Or
What are factors affecting the capacity
determination of a service industry?
8. Discuss the procedure for time and work study.
Or
Explain the characteristics of production process
systems.
9. Describe the methods of layouts.
Or
Discuss the aggregate production planning
strategies.
10. Explain inventory control systems? Why it is
important for a manufacturing company?
Or
Describe with example the CPM as an effective
networking technique.
Part C 10 10)
(Compulsory)
11. Location of a plant has direct relevance to raw materials,
market, human resources, civic amenities transportation
etc. However, in some countries the problem becomes
complicated due to Inter-State competitions and
RW- 050
3
Wk 3
tussles, Regional development and Political
pressures and biased decision. During 1970, Government
of India mooted the idea of expanding steel production
under public sector units to be established at suitable
locations. A committee of eminent personalities was
formed to go through claims of Vijaynagar Steel plant
near Bellary in Karnataka, Salem Steel in TN and
Vishakapatanam steel plant in A.P. Since it was
under PSU the political pressure was going on and if it
was under private sector, there would not have been any
kind of political pressure. The most important raw
materials for steel plant are iron core power and coal.
Again in iron ore the iron percentage should be preferably
more than 60% and ash content in coal should be less
than 30%. These factors enable production of iron and
steel at competitive price. From experts' reports the
following brief was available:
Vizag — The Iron ore is rich with 65% Iron and coal
can be arranged from MP and Bihar and Vizag is
well connected by broad gauge railway line to all
important cities and the place has sea port and
airport. Hence this place has more natural
advantage than other cities.
RW- 050
4
Wk 3
Salem — Iron ore was having 60 to 65%. Iron
content and hence be economically exploited. The
coal is in lignite form which is low quality coal.
Hence this needs to be converted as coke for use.
The place has broad gauge line and Madras sea port
and airport are nearby. This place was considered
second preference.
Vijaynagar — Bellary belt has Iron ore of 60% iron
but coal has to come from AP (Singareni Colliery).
The place had meter gauge railway line and hence
not well connected to all India network. The seaport
and airports were far away and hence this place
was not found suitable. As per the expert committee
report steel plant work started Vizag and Salem
and these plants came up as per the plan and are
doing well. However, to everyone's surprise the
them PM, Smt. Indira Gandhi, did foundation stone
laying in 1971 at Toranagallu in Bellary district for
Vijaynagar steel plant also. This ultimately proved
to be an election gimmick to please the votes,
though the PSU unit did not come up there at all.
This is a clear example how politicians try to fool
gullible voters by way of inaugurations/foundation
stone laying. Steel plants are quite huge with
township having about 50,000 to 1,00,000 people.
Hence requirements of housing, electricity, water,
RW- 050
5
Wk 3
hospitals, education, institution and entertainment
facilities are very essential. The investment is huge
and this helps to develop the surrounding area quite
well and there is abundant scope for ancillary units,
engineering services and employment inside and
outside the steel plant. Both Vizag and Salem got
these advantages and production standard as per
the plan and these industries continue to run
profitably. The expert committee had made
comment on Vijaynagar proposal that, the unit can
be viable if it uses latest foreign technology. In this
method oxygen is injected to force oxidation of ores
instead of natural air. Though PSU was not started
a private enterprise Jinal Group took interest and
applied for license to the Central Government. By
the year 1990 they obtained license and Vijaynagar
Steel plant with foreign technology and decided to
make only sheet products, which fetch higher prices.
They also kept bare minimum workforce and
executives to make it economical right from
inception. By this time broad gauge-lines were
formed and nearest seaport was Goa and hence
some problems were taken care. This unit became
operative in about 3 years and is also running
profitably.
RW- 050
6
Wk 3
Questions
What are essential factors for locating a Steel
plant and why?
Explain how political pressures and pulls
effect decision making and delays in starting
industries.
Explain how it was possible to make
Vijaynagar plant visible.
How technology, HR, natural facilities play
vital role to start new enterprise. Explain your
views?
————————