CONFIDENTIAL UNIVERSITI KUALA LUMPUR Institute of Product Design and Manufacturing FINAL EXAMINATION SEPTEMBER 2013 SESSION SUBJECT CODE : PPB26304/PBB23203/ PSB23203 SUBJECT TITLE : PRODUCTION AND OPERATIONS MANAGEMENT/ PRODUCTION PLANNING AND CONTROL LEVEL : DEGREE TIME / DURATION : 9.00 am ~ 12.00 pm (3 HOURS ) DATE : TJANUARY 2014 INSTRUCTIONS TO CANDIDATES 1. Please read CAREFULLY the instructions given in the question paper. 2. This question paper has information printed on both sides of the paper. 3, This question paper consists of THREE (3) sections: Section A, B and C. 4, Answer ALL questions in Section A and C, For Section B answer TWO (2) questions. 5, Please write your answers on the answer booklet provided. ‘THERE ARE 11 PAGES OF QUESTIONS, EXCLUDING THIS PAGE.‘SEPTEMBER 2013 ‘CONFIDENTIAL SECTION A (Total: 20 marks) MULTIPLE CHOICE QUESTIONS INSTRUCTION: Answer ALL questions. Please use the OMR sheet provided. 1. The systematic analysis of work methods known as st attributed to A. Frederick W. Taylor B. EliWhitney C. Henry Ford D. Adam Smith 2. Potential risks associated with globalization include ‘A. supply chain logistics B. cultural differences C. _ loss of capabilities D. cost competitiveness 3. If a firm produced 5000 units of product last month FM15000 of energy and M3500 of labor then its multifactor productivity measure for energy and labor inputs would be A. 10.00 units per RM spent B. 0.333 units per RM spent C. 0.143 units per RM spent D. 0.100 units per RM spent 4, Which of the following is a principle of total quality management (TOM)? ‘A. quality is an only an operational issue requiring an operating plan B. quality is a strategic issue requiring a strategic plan C. quality is defined by the company D. quality problems are solved using trial and error 'PPR26304/PBB23203 PRODUCTION AND OPERATIONS MANAGEMENT PSB23263 PRODUCTION PLANNING AND CONTROL, 1SEPTEMBER 2013 (CONFIDENTIAL, 5. Products and services that are made to customer specification in response to ‘customer orders are known as ‘A. mass produced items B. _make-to-stock items C. batch production items D. _make-to-order items 6. What can organization do to decrease the breakeven point? ‘A. _ Increase the selling price of the end item B. Decrease the Variable Costs ~ Buy cheaper materials, decrease employee wages C. Decrease the Fixed Costs D. AandC are correct 7. The following are the reasons for ERP failure EXCEPT ‘A. lack of top management commitment B. _ lack of proper training C. lack of advertisement D. _ lack of customer order 8, The following are the elements of a process flow chart EXCEPT A. operation/task B. _ storage/queue C. outsourcing D. decision point 9. Benchmarking is a comparison of company’s performance in certain areas with world- class companies or competitors. The key measurement criteria is A. Good and services B. Equipment CC. Factory size D. Number of workers 'PPB26304/PBB23208 PRODUCTION AND OPERATIONS MANAGEMENT. 'PSH23203 PRODUCTION PLANNING AND CONTROL 2‘SEPTEMBER 2013 40. Which of the following is NOT a major trade agreement? wio AFTA MATTA NAFTA, SO p> CONFIDENTIAL 11. Value Chain is referred to relationship and the transformation process to add value to the product among A. Supplier- Customer - Competitor B. Supplier - Company — Government C. Customer — Company ~ Government D. Customer — Company ~ Supplier 12. JIT system is becoming more popular in service sector. The best example of JIT in service industry can be observed in ‘A. Supermarket chain B. Grocery shop . School D. Banking 13, Which of the following is NOT a mark of a good layout in manufacturing: straight line flow pattem (or adaptation) predictable production time bottleneck operations, work stations close together pop> .PPR26364/PBB23203 PRODUCTION AND OPERATIONS MANAGEMENT 'PSB23203 PRODUCTION PLANNING AND CONTROL‘SEPTEMBER 2013 (CONFIDENTIAL 14. 15. 16. 17. 18. ‘A layout which groups dissimilar machines into a work center to process a variety of parts is referred to as: ‘A. Process layout B. Product layout C. Group technology/cellular layout D. _Fixed-position layout Which of the following change is NOT a major production strategy variable associated with production planning and smoothing? A. production rate B. inventory level C. work force size D. _ price of the product Which of the following is a mixed strategy for absorbing demand fluctuations? ‘A. altering the production rate by changing the size of the labor force B. _using subcontracting to meet peak fluctuations in demand C. using overtime, inventory, and subcontracting D. keeping the work force and production rate constant, and allowing fluctuations in the inventory level Inventory is used to A maintain independence of operations B. meet variation in product demand C. allow flexibility in production scheduting D. _allofthe above ‘The reason for low level coding in MRP is to ‘A. show the relative importance of component items B. make it easier for the computer to search C. show the offset lead times in perspective D. facilitate updating transactions easily 'FPB26304/PBB23203 PRODUCTION AND OPERATIONS MANAGEMENT 'PSB23203 FRODUCTION PLANNING AND CONTROL 4SEPTEMBER 2013, CONFIDENTIAL 19, One of the key requirements for installing an MRP system is A B, c. D. Eoa. low-cost items. accurate forecasts identifiable dependent demand in-process inventory 20. The three major inputs to an MRP system are the: MPS, inventory status record, and the BOM bill of materials, inventory status record, and production structure record ‘shop order, work orders, and reschedule notices on hand, on order, and lead time _PP'B26304/PHH23203 PRODUCTION AND OPERATIONS MANAGEMENT PSH232033 FRODUCTION PLANNING AND CONTROL, 5SEPTEMBER 2013, ‘CONFIDENTIAL, ‘SECTION B (Total: §0 marks) INSTRUCTION: Answer any TWO (2) questions. Please use the answer booklet provided. Question 1 a) Podolski Ceramics makes ceramic vases for a chain of department stores. The output and cost figures over the past four weeks are shown here. Labor cost $10 an hour, and maierials are $4 a pound. Calculate the labor and material productivity. Table 1 ‘Week 7] 2)3)]4 isaes Units of output 2000 | 4000 | 3000 |'5000 ~— No.ofworkers 4,4 Hours per week 40 | 48 | 50 | 52 Material(s) 286 | 570 | 580 | 600 (16 marks) b) An assembly station is asked to process 106 circuits board per hour. It takes 15 minutes to receive the necessary components from the previous workstation. Completed circuit boards are placed in a rack that will hold 6 boards. The rack must be full before it is sent on to the next workstation, If the factory uses a safety factor of 13%, how many kanbans are needed for the circuit board assembly process? How many kanbans would be needed in each case if: i. Demand is increased to 315 circuits boards? li, The rack size is halved? Ti The safety factor is increased to 20%? (9 marks) ‘PPB26304/PH23203 PRODUCTION AND OPERATIONS MANAGEMENT PSB23203 PRODUCTION PLANNING AND CONTROL 6‘SEPTEMBER 2013 CONFIDENTIAL Question 2 a) Eliminating waste is one of the most important parts of lean production. Identify 5 sources of waste and discuss how they may be eliminated. Give one example for each waste. (10. marks) b) Explain under what conditions the single-channel; single phase queuing model with Poisson arrivals and undefined service times provide the same operating characteristics as the basic model with exponentially distributed service times? (6 marks) c) The ticket booth on the Lukas campus is operated by one person, who is selling tickets for the annual Lukas versus Neuer football game on Saturday. The ticket seller can serve an average of 18 customers per hour (Poisson distributed): on average, 12 customers arrive to purchase tickets each hour (Poisson distributed). Determine the operating characteristics for this system. (10 marks) 'PPB26304/PBB23203 PRODUCTION AND OPERATIONS MANAGEMENT 19823203 PRODUCTION PLANNING AND CONTROL. 1SEPTEMBER 2013 (CONFIDENTIAL Question 3 a) b) Green Techno manufactures solar panel for commercial application in Malaysia. Its subsidiary company, Gentech is a sole distributor and provides free installation for consumer who purchases the product. Recently, the company received an order from a housing developer, requesting to install the solar panels on the roof top of 30 bungalow houses. The developer has a vety limited time to install these panels as all houses are ready for sale in the next 3 days. Gentech is concerned of their workers’ ability to finish installation on time. The normal working hour at Gentech is 10 hours per day. Based from past experience, it takes about 2 hours to install on the first house. Gentech estimates the learning curve to be about 80% and it will be fully realized after install 10 panels. Construct and analyse the capability of the workers based on the learning curve information. Will Gentech be able to complete the tasks on time? Please discuss your Justification. (10 marks) Rumaisha is the overworked IT resource person for her department. In the next round of computer purchases, she is determined fo recommend a vendor who does a better job of documenting possible errors in the system and whose customer service line is more responsive to the needs of her colleagues. Rumaisha compiled the following data over an eight week observation period. Assuming 40 hours per week, which computer vendor ‘should Rumaisha pursue? (15 marks) Table 2 Computer Vendor _No. of Problems Mean Time to Reach Mean Time to Fix Customers Service Problem (Hour) (Hour) 'PPB26304/PBB23203 PRODUCTION AND OPERATIONS MANAGEMENT PSB23203 PRODUCTION PLANNING AND CONTROL 8SEPTEMBER 2013, CONFIDENTIAL, SECTION C - (Total: 30 marks) INSTRUCTION: Answer All questions in SECTION C Please use the answer booklet provided. CASE STUDY a) Podolski has decided to purchase a cellular phone for his car, but he is confused about which rate plan fo choose. The “oocasional-user” plan is $0.50/minute, regardless of how many minutes of air time are used. The “frequent-user" plan charges a flat rate of $55/month for 70 minutes of air time plus $0.33/minute for any time over 70 minutes. The “executive” plan charges a flat fee of $75 per month for 100 minutes of air time plus $0.25iminute over 100 minutes. In the interest of simplicity, Podolski has decided to go with the ‘occasional-user” plan to start with and then upgrade as he sees fit at a later date. i. Calculate how much air time per month would Podolski need to use before he upgrades from the occasional-user plan to the frequent-user plan? (6 marks) Determine the usage rate should he switch from the frequent plan to the executive plan? (5 marks) b) Given 150 units of beginning inventory, a lead time of one period, an ordering cost of $400 per order and a holding cost of $2 per unit per period, determine which lot sizing technique would result in the lowest total cost for the following demand data. Table 3 [Period T]2]3/4]7 5) 6] 7] 8 [Gross Requirements 100 | 90 | 85 |'70 | 450 | 200 | 300 | 250 (15 marks) 'PPB26304/PBB23203 PRODUCTION AND OPERATIONS MANAGEMENT PSB23203 PRODUCTION PLANNING AND CONTROL. 9‘SEPTEMBER 2013, ‘CONFIDENTIAL ¢) His company is attempting to determine the location for a new center that will service 3 branches. The grid-map coordinates of the 3 branches and truck shipments data is as follows: Table 4 Location | X coordinate | Y coordinate | Truck shipments A 120 300 25 B 210 190 2 c 24 380 cc Determine the least cost location using the center of gravity method. END OF QUESTIONS 'PFB26304/PBB23203 PRODUCTION AND OPERATIONS MANAGEMENT PSB23203 PRODUCTION PLANNING AND CONTROL 0 ( marks)SEPTEMBER 2013 ‘CONFIDENTIAL, APPENDIX A FORMULA ‘SA = MTBF / (MTBF + MTTR) Maximum inventory level -o1-4) > 'PP'R26304PBB23203 PRODUCTION AND OFERATIONS MANAGEMENT. .PSB25203 PRODUCTION PLANNING AND CONTROL u