BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE , PILANI

II SEMESTER 2007-2008
MBA C 419 Production & Operations Management
Comprehensive Exam on 10.05.2008
Time: 3 hr
Max.Marks: 40
____________________________________________________________
PART A CLOSED BOOK
( Max time allowed : 1 hr)
INSTRUCTION : Write the correct answer option against the question no.
on the answer sheet provided for PART A.
Q1: A strong commitment from ________________________ is critical for the success of an ERP

system.
a.
b.
c.
d.

people
vendors
management
users

e.

system administrators

Q2: ERP systems help to increase the efficiency of the organization and worker productivity by
providing a _____________________ for all corporate data, information, and knowledge.
a.
b.
c.
d.
e.

network
platform
architecture
central repository
decentralized archive

Q3: _____________________ an ERP system during the implementation increases the cost of the
system and increases the implementation risks.
a.
b.
c.
d.

Integrating
Diagramming
Delaying
Outsourcing
e. Modifying
Q4: An organization must first do a ___________________________ to help narrow down the
ERP vendors to a select few.
a.
b.
c.
d.
e.

system analysis
needs assessment
vendor review
performance review
cost analysis

P.T.O.

Q5: In general, the biggest benefits of implementing an integrated system include a reduction in
inventory and _________________ costs.
a.
b.
c.
d.
e.

personnel
direct
material
silo
indirect

Q6: Which of the following statements regarding CPM networks is true?

a. There can be multiple critical paths on the same project, all with different durations.
b. The early finish of an activity is the latest early start of all preceding activities.
c. The late start of an activity is its late finish plus its duration.
d. If a specific project has multiple critical paths, all of them will have the same duration.
e. All of the above are true.
Q7: The phases of project management are
a. planning, scheduling, and controlling
b. planning, programming, and budgeting
c. planning, organizing, staffing, leading, and controlling
d. different for manufacturing projects than for service projects
e. GANTT, CPM, and PERT
Q8: Which of the following statements regarding project management is false?
a. Gantt charts give a timeline for each of a project's activities, but do not adequately
show the interrelationships of activities.
b. A project organization works best for a project that is temporary but critical to the
organization.
c. Project organization works well when the work contains simple, independent tasks.
d. Gantt charts and PERT/CPM are never used together.
e. None of the above is true.
Q9: Which of the following statements regarding Gantt charts is true?
a. Gantt charts give a timeline and precedence relationships for each activity of a project.
b. Gantt charts use the four standard spines of Methods, Materials, Manpower, and
Machinery.
c. Gantt charts are visual devices that show the duration of activities in a project.
d. Gantt charts are expensive.
e. All of the above are true.
Q10: The number of units projected to be available at the end of each time period refers to
a. net requirements
b. scheduled receipts
c. the projected usage of the item
d. the amount projected to be on hand
e. the amount necessary to cover a shortage

Q11: In MRP, system nervousness is caused by

a. management's attempt to continually respond to minor changes in production
requirements
b. the use of the lot-for-lot approach
c. management's marking part of the master production schedule as "not to be
rescheduled"
d. the use of phantom bills of material
e. management's attempt to evaluate alternative plans before making a decision
Q12: Which scheduling technique should be employed when due dates are important for a job
order?
a. forward scheduling
b. loading
c. dispatching
d. backward scheduling
e. master scheduling
Q13: The four criteria for short-term scheduling
a. are of equal importance
b. include maximize completion time and minimize utilization
c. are applied simultaneously
d. may have different levels of importance, depending on circumstances
e. All of the above are true.
Q14: Scheduling is rather straightforward in product-focused facilities because
a. kanban automates the scheduling of the assembly line
b. demand is reasonably stable, and capacities, set-up times, and run times are generally
known
c. assembly line balancing assures the highest possible production efficiency
d. finite capacity scheduling has made MRP much more realistic
e. All of the above are true.
Q15: Which one of the following scenarios represents the use of a kanban to reduce inventories?
a. A supervisor tells the operators to stay busy and start producing parts for next month.
b. A "supplier" work center signals the downstream workstation that a batch has been
completed.
c. A supervisor signals to several work centers that the production rate should be changed.
d. A "customer" work center signals to the "supplier" workstation that more parts are
needed.
e. An operator asks the next station's operator to help him fix his machine.
Q16: If a casual-dining restaurant is attempting to practice JIT and lean operations, which of the
following would not be present?
a. close relationship with the restaurant's suppliers of food, utensils, and equipment
b. food preparation in large batches
c. a kitchen set up to minimize wasteful movements
d. lean inventories of food
e. All of the above should be present.
P.T.O.

Q17: Which of the following is true regarding total productive maintenance (TPM) ?
a. TPM is concerned with machine operation, not machine design.
b. Field service and depot service perform virtually all maintenance and repair activities.
c. Operators run their machines, but maintenance departments maintain them.
d. TPM reduces variability through employee empowerment and excellent maintenance
records.
e. TPM views maintenance and repair as tactical issues, not strategic ones.
Q18: Which of the following is consistent with a pure chase strategy?
a. vary production levels to meet demand requirements
b. vary work force to meet demand requirements
c. vary production levels and work force to meet demand requirements
d. little or no use of inventory to meet demand requirements
e. All of the above are consistent with a pure chase strategy.
Q19: Which of the following statements regarding control of service inventories is true?
a. Service inventory is a fictional concept, because services are intangible.
b. Service inventory needs no safety stock, because there's no such thing as a service
stockout.
c. Effective control of all goods leaving the facility is one applicable technique.
d. Service inventory has carrying costs but not setup costs.
e. All of the above are true.
Q20: A certain type of computer costs $1,000, and the annual holding cost is 25%. Annual
demand is 10,000 units, and the order cost is $150 per order. What is the approximate economic
order quantity?
a. 16
b. 70
c. 110
d. 183
e. 600
( 20 x 1 = 20 marks)

PART B OPEN BOOK

INSTRUCTION : Start PART B in a separate answer book after submitting
Part A answer sheet.
Q21: A project consists of 10 activities, lettered A through J, as shown in the accompanying
table. For each activity, the deterministic time estimate in weeks is also shown in the table.
Activity
A
B
C
D
E

Precede
nce
A
B
A
-

Time

Activity

2
4
3
5
6

F
G
H
I
J

Preced
ence
D,E
D,E
G
C,F
I,H

Time
3
4
4
3
1

a. Draw an AOA network for the project .

b. What is the earliest this project can be completed ?
c. Which noncritical activity, if delayed, has a potential of delaying the whole project ?

Q22 : A number of jobs are waiting to be processed through two work centers. Each job must be
processed through Center A and Center B, in that order. For each job, the processing time
in each work center is given below, in minutes.

Job
A
B
C
D
E
F
G

Time in
Center A
10
8
15
20
18
17
11

Time in
Center B
12
15
9
11
10
13
14

a. Determine an optimum sequence in which the jobs should be processed.

b. Construct a chart showing the sequence of the jobs in each work center, the times the
jobs spend waiting, and the times that the work centers are idle.
c. What is the throughput (makespan) time?
d. How much time do the jobs spend waiting to be processed?
e. How much idle time do the work centers have?

Q23: A firm that produces electric golf carts has just received an order for 200 carts, which
must be ready for delivery at the start of week 8. Information concerning the product structure ,
lead times , and quantities on hand is shown in the following table.
(a) Construct a product tree.
(b) Construct an assembly time chart.

P.T.O.

Part list for Electric Golf Cart

Electric Golf Cart
Top
Base
Top
Supports (4)
Cover
Base
Motor
Body
Seats (2)
Body
Frame
Control
Wheel assemblies (4)

Lead Time
1
1
1

Quantity on hand
0
40
20

1
1

200
0

2
3
2

300
50
120

1
1
1

35
0
240

Q24: The selling price of a certain product is $199.95. The variable costs per unit are:
Labor

$60.25

Raw material

25.70

Purchased component

21.50

Variable overhead

17.50

The fixed costs total $300,000 per year. Calculate and answer the following :
a. Estimate the profit when 9,000 units of the product are sold in a year.
b. How many units must be sold for the company to make $900,000?

Q25: Technically examine the layout of AKSHAY and give your suggestions for
improvement , if any.
( 5 x 4 = 20 marks )

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