POKHARA UNIVERSITY

                                          Apollo International College

                                    Examination of Home Assignment                   Full Marks:100                                                                          

                                                  BBA 5th Semester - 2016                            Pass Marks: 45

                          MGT 311: Fundamental of Operations Management          Time: 3 Hours    

 Candidates are required to give their answers in their own words as far as possible. Figure in the margin indicates full marks.

Group “A”

Brief answer questions:                                                                  [10×2=20]

 1.  What do you mean by operations management?

2. Write  about operations strategy?

3.  Write about Mass Customization.

4. What are the ethical challenges by operations managers?

5. What are the difference between products and services design?

6.  Name the 10 decision areas of operations management?

7. Explain how the house of quality translates customer desires into product or service attributes.

8. What are the determinants of quality?

9. What do you mean by Quality Control?

10.Describe about International Quality Standard (ISO).

Group “B”

Short answer questions:                                                                             [6×10=60]                      11.  What do you mean by productivity? How it can be increased? Give various types of productivity.                                                                                                                                           12.  How does an operations management’s strategy change during a product life cycle?          13.  What is Total Quality Management (TQM)?  Explain various tools of TQM.                   14.  ABC company has a staff of 3, each working 10 hours per day (for a payroll cost of Rs. 960/day) and overhead expenses of Rs. 600 /day. The company processes and closes on 10 titles each day. The company recently purchased a computerized title search system that will allow the processing of 16 titles per day. Although the staff, their works hours, and pay will be same, the overheads expenses are now Rs. 1200 per day. Calculate Labor productivity and multifactor productivity of the old system and the new system. And also find out the productivity percentage change (increase or decrease) from old to new system.                                                                                                                                                15.  Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound interest in efficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3 % increase n productivity. He has the following data representing a month from last year and an equivalent month this year:

	Last Year	Now
Units produced	1,000	1,000
Labor (hours)	300	275
Resin (Pounds)	50	45
Capital invested ($)	10,000	11,000
Energy (BTU)	3,000	2850

Show the productivity percentage change for each category and then determine the improvement for labor hours, the typical standard for comparison.                                                                                   16. Construct a neat suitable control charts (mean and range) for the following data in which samples of 4 being taken every hour. Comment on your result whether the production seems to be under control, assuming that these are the 1st data:

S.No.	1	2	3	4	5	6
1	42	39	41	69	61	67
2	65	44	54	89	78	73
3	75	80	68	91	94	81
4	78	81	77	98	99	95

From the table, for n=4, A2 = 0729, D3 = 0, D4 = 2.282

. Group “C”

Comprehensive answer questions:                                                                         [5×4=20]

In 1978 George Thrall founded Hydrolock Inc., a manufacturing company producing small rubber gaskets used in hydraulic systems. His gaskets were simple in design and relatively easy to produce in large quantities. In 1990s, gross sales from servicing customers throughout North America with large quantity shipments reached $ 8 million. A very autocratic management style exists throughout the company.

Demand for hydrolock products has increased so rapidly that the manufacturing facility is constantly under pressure to increase output around the clock. Customers and sales personnel in the field often call the home facility to determine estimated lead times for prospective order and estimated delivery times for existing order. In response, production supervisors continually emphasize to employees the need for increasing output to meet demand.

In late 1990, George Thrall encountered a new problem: an increase in customer complains about the quality of shipments being received. Plant supervision insisted the problem was two fold and that nothing could be done about either (1) workers were asked to produce at maximum efficiency, so quality suffered and  (2) workers had absolutely no motivation for higher quality performance. George decided to add a quality control analyst to the Hydrolock hall in hopes of finding and correlation and sources of consumer’s dissatisfaction.

In his first two weeks, the quality analyst uncovered some data that production supervisors had recorded two years previously.

Sample for 1998	1	2	3	4	5	6	7	8	9	10	11	12
No. of defectives	6	1	0	2	1	4	3	2	6	0	3	2

 

·         Sample size of 40 units

The analyst began gathering data on current production of the same gasket. Samples of 40 units were taken once each day for five consecutive work days with these results:

Sample for 1990	1	2	3	4	5
No. of defectives	4	8	6	2	8

 

Discussion Questions:

1.  Develop a p-chart for data for Gasket (1988) and interpret the results.

2.  How do these results seem different for data of 1990 ?

3. Using a fishbone diagram, explain the causes of quality and their effects on existing quality problems of the company.

4. Did the company apply total Quality Management (TQM) principles? Explain any two TQM’s philosophical elements that seem more relevant to solve existing quality problems of the company.