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Reg. No. : .................................

Name : .....................................

II Semester M.B.A. (Part Time) Degree Examination, July 2009

(2006 Scheme)
OPERATIONS MANAGEMENT
Time : 3 Hours Max. Marks : 60

PART – A

Write short notes on any five questions. Each question carries 3 marks.

1. Product selection process.

2. Locational Break Even Analysis.

3. Method study

4. Job enlargement and Job enrichment

5. Smoothness Index

6. LOB for Production Control Monitoring

7. Value Engineering

8. AOQL (5×3=15 Marks)

PART – B

Write descriptively on any three questions. Each question carries 10 marks.

9. “Product development and design is basically a research and development activity.”

Elaborate the statement with suitable examples.

10. Discuss the factors that influence the location of a plant with particular reference
to a cement manufacturing plant.

P.T.O.
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11. ABC enterprises has been operating on an adhoc policy of ordering for a
fortnight’s demand of an item as and when the need arises. A particular item has
an annual demand of 30,000 units, cost of Rs. 500 per unit, the ordering cost
being Rs. 1000 per order.

If the inventory carrying cost rate is 25%, what is the EOQ and the corresponding
annual total cost ?

12. What do you understand by the term ‘a socio-technical system’ ? Can you give
some socio-technical guidelines for job design ?

13. What is the fundamental difference between the use of acceptance sampling plans
and process control charts ? (3×10=30 Marks)

PART – C

14. Answer the following :

A manufacturer of farm equipment is considering three locations (P, Q and R)

for a new plant. Cost studies show that fixed costs per year at the sites are
Rs. 4,80,000, Rs. 5,40,000 and Rs. 5,04,000, respectively whereas variable costs
are Rs. 100 per unit, Rs. 90 per unit and Rs. 95 per unit, respectively. If the plant
is designed to have an effective system capacity of 2,500 units per year and is
expected to operate at 80 per cent efficiency, what is the most economic location ?
If the operational efficiency that can be obtained is only 60%, what effect would
this have on the site you had determined earlier on ? 15

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