Paper 13

Operations and Project Management & Control

December 2002

I—13(OPM)
Revised Syllabus
Time Allowed : 3 Hours Full Marks : 100

Answer Question No. 1 which is compulsory and any two

from Section I & any two questions from Section II
Marks
1. (a) What do the following abbreviations stand for? 1x5
(i) AMT (ii) FMS (iii) VFM (iv) GT (v) CNC
(b) Match the words (a) to (j) under Column A with the corresponding words ½x10=5
under Column B's (i) to (x)
A B
(a) Jigs (i) Inventory Control
(b) Annealing (ii) Material Handling
(c) FSN Analysis (iii) Job Evaluation
(d) Fixtures (iv) Quality Control
(e) Factor comparison Method (v) Investment decision
(f) Fork lift Trucks (vi) Tool Holding
(g) Bill of Materials (vii) Method Study
(h) Industrial Engineering (viii) Production plan
(i) Pay Back period (ix) Work piece holding
(j) Consumer's Risk (x) Heat treatment
(c) Match the Statement in Column A with the Statement under Column B: 1x5=5
(A) (B)
(i) Balancing Project (a) Enable to continue in business and
complete effectively.
(ii) Moderisation Project (b) Are undertaken to maintain
production at acceptable efficiency
level.
(iii) Expansion Project (c) Seeks profitable investment
opportunities in altogether new area.
Diversification
(iv) (d) Minimise under utilisation of capacity
Project
Enables enlargement of the plant
(v) Replacement Project (e)
capacity.
 (d) Define the following in not more than two sentences: 1x5=5
(i) Benefit-Cost ratio; (ii) Conceptual Phase of Product-life cycle:
(iii) Leasing financing; (iv) Item Rate Contract;
(v) Event Slack.
SECTION I

2. (a) The Production Manager of a company is very much reluctant to initiate 6

any action to improve productivity during the recession in his industry.
Enumerate your views in the above context.
(b) Dumpers are used to transport the Steel Ingot from the Melting shop to 6
Ingot yard, which is situated at a distance of 0.6 km from the Melting
shop. The capacity of the dumper is 8 tonnes. Due to speed restrictions,
within the factory the dumper cannot run beyond 12 km/hour. In order to
avoid congestion in the Melting shop, a minimum transportation of 3200
Tonnes is necessary per shift (of 8 hours duration).
Find the number of dumpers that would be required. Ignore the loading
and unloading time.
(c) Name the important principles of Material Handling. 6
3. (a) List the important points that are to be checked thoroughly for assessing 10
the soundness of a plant layout.
(b) Explain briefly the various types of maintenance undertaken in 10
manufacturing operations.
Is "Wage Incentive Scheme" the only way for increasing labour
4. (a) 8
productivity? Comment precisely.
(b) Six jobs are to be carried out at three machines in the order:
Lathe → Milling → Boring
The data related to the time taken by each job on the 3 machines is given
below. Each machine can process one job at a time.
Time-Seconds
Job Milling Lathe Boring
1 300 500 400
2 400 800 800
3 200 900 700
4 100 700 600
5 400 600 200
6 300 750 450
You are required to— 6+6
(i) Determine the optimal sequence of the job.
(ii) Ascertain the minimum elapsed time.

Please turn over

(2)
F-13(OPM)
Revised syllabus
Marks
SECTION II
Answer any two out of the following questions under Section II.

5. (a) INTEL Project is having the following activities and their time estimates: 5+3+2
Activity Predecessor Time (days)
Optimistic Likely Pressimistic
(a) (m) (b)
A — 2 4 6
B A 8 12 16
C A 14 16 30
D B 4 10 16
E C,B 6 12 18
F E 6 8 22
G D 18 18 30
H F,G 8 14 32
(i) Draw a PERT Network for the project.
(ii) Identify the critical path and calculate the earliest expected time to
complete the project.
(b) What is 'pay back period'? Under what situations investment decisions are 2+2=4
mainly guided by pay-back period method?
(c) What are the main differences between PERT & CPM? 6
6. (a) S Limited has Rs. 10,00,000 allocated for capital budgeting purposes. The 10
following proposals and associated Profitability Index have been
determined.
Project Amount (Rs.) Profitability Index
1 300,000 1.22
2 150,000 0.95
3 350,000 1.20
4 450,000 1.18
5 200,000 1.20
6 400,000 1.05
Which of the above investment should be undertaken?
Assume that the Projects are indivisible and there is no alternative use of
the money allotted for capital budgeting.
(b) How gestation period of an on-going project affects Project financing 2
decisions?
(c) How to combat the dilemma of project failures especially due to the 8
shortage of funds from the Government coffers.
7. (a) An Investor wants to invest in a profitable project considering the 10
opportunities available and business environment. As a Cost Accountant,
suggest some sources for Project identification.
(b) What is Feasibility Study? 6
(c) What are the main objectives of pre-feasibility Study? 4
__________