1
Seat No.: Enrolment
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA SEMESTER 8 • EXAMINATION SUMMER 2019
Subject Code: 4180503 Date: 04/05/2019
Subject Name: Operations Management
Time: 10:30 AM TO 01:30 PM Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1(a)
"Operations management is transformation process" justify the statement with examples if you are agree with it.

Q.1(b)
Differentiate between production and operation. Explain in detail the objectives and functions of production planning and control.

Q.2(a)
"The completion of all tasks is required to complete the project" justify the statement with the concept of work breakdown structure.

Q.2(b)
Find the economic order quantity and the reorder point, given
Annual demand 1,000 units
Average daily demand 1,000/ 365
Ordering Cost Rs. 5 per order
Holding Cost Rs. 1.25 per unit per year
Lead time 5 days
Cost per unit Rs. 12.50
What quantity should be ordered?

OR
Q.2
Items purchased from a vendor cost Rs 20 each, and the forecast for next year's demand is 1,000 units. If it costs Rs 5 every time an order is placed for more units and the storage cost is Rs 4 per unit per year, what quantity should be ordered each time?
a. What is the total ordering cost for a year?
b. What is the total storage cost for a year?

Q.3
Q.3
Explain PERT and CPM and also distinguish between PERT and CPM.
Write short note on:
Business Process Reengineering
Process Layout
Product Process Matrix
OR

2
Q.3
Draw a network diagram and determine the critical path.
Activity
Description of activity
Duration of activity (month)
Immediate Predecessor Activity
A
Design Plant
12

B
Select Site
8
A
C
Select Vendor
4
A
D
Select Personnel
3
A
E
Prepare site
12
B
F
Manufacture Generator
18
C
G
Prepare Operations Manual
5
C
H
Install Generator
4
F
I
Train Operators
9
G
J
Obtain License
6
I
Q.3
What is forecasting technique? Write difference between dependent and independent demand.

Q.4
How to determine the idle time percentage from assembly line balance?

Q.4
Construct Mean Range chart for the following data

Sample Number
Sample mean
Sample range
1
21.5
2.1
2
22.2
1.1
3
22.7
0.4
4
22.5
1.3
5
23.5
1.6
6
21.6
2.5
7
22.1
3.5
8
22.9
3.8
9
22.1
3.7
10
22.9
2.1
Assume values of constants A2 0.58, D3 D4 2.11
OR
Q.4
What is Statistical Process Control in Quality Management? Explain the difference between attribute control charts and variable control charts. Give examples how SPC is applied in case of services.

Q.4
Discuss material handling principles.

Q.5
Explain six sigma process of Japanese manufacturing.

Q.5
What is Operations Consulting? Explain stages in Operations Consulting Process?

OR
Q.5
Explain difference between inspection and quality control.

Q.5
Which main reasons affect performance level of company?