TECHNICAL UNIVERSITY OF KENYA (TUK)

First Year First Semester

Master of Technology in Mechanical Engineering Technology
CAT I - EMMU 7141: Manufacturing Engineering and Production Management-Marking Scheme
INSTRUCTIONS TO CANDIDATES
Answer any TWO Questions; All Questions have equal marks
Q1. (a) Briefly describe any five managerial functions in an Industrial Organization.
(7marks)
(b) Define Industrial Engineering and State its basic objectives.
(3marks)
(c) What do you understand by Economic Order Quantity (EOQ)? A repair workshop purchases 4500
similar spares per year for servicing of salon cars. They pay KES 400/= per spare, KES 1,200/= fixed
charge every time they order, and an inventory cost per spare held averaging KES 200/= per year. If the
workshop is operated for 300 days in a year determine:
i) the EOQ
ii) Number of orders per year
iii) Length of Order cycle
iv) The total cost
Show that the EOQ is always in the best order for the workshop
(5 marks)
d) Explain the relationship between worker Motivation and Productivity. What can be done by
management to increase personnel productivity?
(5 marks)

(a) Managerial functions in an organization:

i) Planning determines the mission and goals of the business, including the ways in which the goals
are to be attained, and the resources needed for this task. It includes determining the future
position of the business, and guidelines or plans on how that position is to be reached
ii) Organising-developing a framework or organisational structure to indicate how personnel,
equipment and materials are to be employed to attain the predetermined goals
iii) Staffing - staffing involves manning the organization structure through proper and effective
selection, appraisal and development of the personnels to fill the roles assigned to the
employers/workforce.
iv) Directing or Leading entails giving orders to the human resources of the business and motivating
them to direct their actions in conformity with the goals and plans
v) Control means that managers should constantly check whether the business is properly on course
toward the accomplishment of its goals. Controlling involves Establishing standards of
performance, Measuring current performance and comparing it against the established standard,
and Taking corrective action that does not meet the standard.
vi) Co-ordination is the unification, integration, synchronization of the efforts of group members so
as to provide unity of action in the pursuit of common goals. Coordination helps to Maintain Good
Human Relations, Unify Efforts, Promote Mutual Understanding, and Get Concurrence
Any five functions
(7 marks)

(b) Definition of Industrial Engineering: It is a branch of engineering dealing with the optimization of
complex processes or systems. It is concerned with the development, improvement, implementation and
evaluation of integrated systems of people, money, knowledge, information, equipment, energy, materials,
analysis and synthesis, as well as the mathematical, physical and social sciences.

The basic objectives of Industrial Engineering departments are:

i) To establish methods for improving the operations and controlling the production costs, and
ii) To develop programmes for reducing these costs.
(3marks)
(c) Economic Order Quantity (EOQ)
The economic order quantity (EOQ) is the order quantity that minimizes total holding and ordering costs
for the year. Even if all the assumptions dont hold exactly, the EOQ gives us a good indication of whether
or not current order quantities are reasonable.
Economic Order Quantity (EOQ) applies only when demand for a product is constant over the year and
each new order is delivered in full when inventory reaches zero. There is a fixed cost for each order
placed, regardless of the number of units ordered. There is also a cost for each unit held in storage,
commonly known as holding cost, sometimes expressed as a percentage of the purchase cost of the item.
Calculation: See Q5 (b) of the Model Answers (the question is similar; only figures are changed)

(5marks)
(d) Relationship between Motivation and Productivity
The success of every organization is dependent upon the employees work performance, loyalty,
commitment, etc. The best way to ensure employees' commitment and loyalty is motivation. If employees
are fully satisfied with their job and highly motivated then work performance, efficiency and productivity
level increase. Motivation requires discovering and understanding employee drives and needs, since it
originates within an individual:
i) Employee motivation is directly linked to employee commitment, personnel productivity and
business profits.
ii) Motivation levels within the workplace have a direct impact on employee productivity.
iii) Most employees need motivation to feel good about their jobs and perform optimally.
iv) Unmotivated employees are likely to spread little or no effort in their job.
v) The employees were highly motivated due to intrinsic motivational factors like: Recognition, selfsatisfaction, etc.
(3 marks)
Suggestions for increasing personnel productivity through motivation are depicted below:
i)
Consistently provide career advancement and development opportunities of employees.
ii)
Paying performance related bonuses and financial incentives or rewards.
iii)
Run employees personalize recognition programs, such as: Gift vouchers, tickets to a concert.
iv)
Given more responsibility and make all employees feel their jobs are important.
(2 marks)

Q2. (a) Describe the four stages that are necessary for the success of TQM implementation process.
(6 marks)
(b) List any five basic quality control tools and describe any three of them.

(6 marks)

(c) What is the difference between value analysis and value engineering?
(d) Differentiate between Financial and Cost accounting

[4 marks]
(4 marks)

(a) Stages of Implementation of TQM

The process of implementing TQM in an organization can be organized in the following four stages:
(i) Identification and Preparation
This stage is concerned with identifying and collecting information about the organization in the prime
areas where improvement will have most impact on the organizations performance and preparing the
detailed basic work for the improvement of the organizations activities. It is also important to find out
the cost of quality, which incorporates the total cost of waste, error correction, failure appraisal and
prevention in the organization. It is also required to understand the views and opinions of the customers,
suppliers the managers and the employees. The differences between their views and opinions will
provide an idea of the scale of the problem and task ahead. The measurements of the cost of quality made
at the beginning of the TQM process can be compared with measurement at a later stage to establish the
achieved improvements. The initial measurements of the costs will also indicate the potential areas for
improvement and direct efforts towards the areas where they are most needed. All data and information
must therefore be identified, prepared and summarized in a manner to ensure that the managers get the
correct information to make their decision.
(ii) Management Understanding
This step is concerned with making sure that the management understands the objective and methodology
of TQM and is ready to adopt them all the time. For many companies, TQM means a major change in the
management practice and it is difficult to implement over a short period of time. However, to make a
significant change in management practice, it is necessary to educate the managers in their understanding
and approach to TQM. Once they have mastered the principle and practice of TQM the managers can then
demonstrate their total commitment and take the lead in the quality improvement process.
(iii) Scheme for Improvement
This stage is concerned with identifying quality issues and affects a resolution of them by management
led improvement activities. To develop quality improvement scheme, it is necessary to identify the quality
problems in each division, in each department and throughout the whole organization. A scheme of
training for improvement can be established after the realization of the following aspects of the
organization. They are:
Purpose of the department,
Customers and suppliers relationship,
Meeting customer needs,
Problem causes and best solutions,
Prevention of recurring problems,
Customer satisfaction,
Priorities for improving efficiency
At this stage it is essential to know that any scheme for improvement requires substantial investment in
training, management time and communication.
(iv) Critical Analysis
This stage starts with new targets and. take the complete improvement process to everybody indicating
supplier and customer links in the quality chain. It also obtains information about progress and
consolidates success. To focus quality aspects, everybody in the organization must assess the TQM
process. It is essential to incorporate the perception of both internal and external customers. It is also
important to ensure that everybody in the organization gets some feedback of the success on a regular
basis and at the same time the individual and team contributions are given the recognition. Setting up of
new targets as required by customers at this stage will automatically upgrade the quality standard of the
organization and maintain the competitive position in the market place.
[6 marks]
(b) Quality control tools:

There are seven basic quality tools used in organizations: Flow charts, Histogram, Cause and Effect
Diagram, Check Sheet, Scatter Diagram, Control Charts, and Pareto Charts. Most organizations use
quality tools for various purposes related to controlling and assuring quality.
(i) Flow Charts
This is used for analyzing a sequence of events. The tool maps out a sequence of events that take place
sequentially or in parallel. The flow chart can be used to understand a complex process in order to find
the relationships and dependencies between events, e.g.,

(ii) Histogram
Histogram is used for illustrating the frequency and the extent in the context of two variables.
Histogram is a chart with columns. This represents the distribution by mean. If the histogram is normal,
the graph takes the shape of a bell curve. If it is not normal, it may take different shapes based on the
condition of the distribution. Histogram can be used to measure something against another thing.
Always, it should be two variables, say X and Y, e.g.,

(iii) Cause and Effect Diagram

Cause and effect diagrams (Ishikawa Diagram) are used for understanding organizational or business
problem causes. Organizations face problems every day and it is required to understand the causes of

these problems in order to solve them effectively. Cause and effect diagrams exercise is usually
teamwork. A brainstorming session is required in order to come up with an effective cause and effect
diagram. All the main components of a problem area are listed and possible causes from each area is
listed. Then, most likely causes of the problems are identified to carry out further analysis.

(iv) Check Sheet

A check sheet can be introduced as the most basic tool for quality. A check sheet is basically used for
gathering and organizing data. When this is done with the help of software packages such as Microsoft
Excel, you can derive further analysis graphs and automate through macros available. Therefore, it is
always a good idea to use a software check sheet for information gathering and organizing needs.

(v) Scatter Diagram

When it comes to the values of two variables, scatter diagrams are the best way to present. Scatter
diagrams present the relationship between two variables and illustrate the results on a Cartesian plane.
Then, further analysis, such as trend analysis can be performed on the values. In these diagrams, one
variable denotes one axis and another variable denotes the other axis.

(vi) Control Charts

Control chart is the best tool for monitoring the performance of a process. These types of charts can be
used for monitoring any processes related to function of the organization. These charts allow you to
identify the following conditions related to the process that has been monitored:

Stability of the process

Predictability of the process

Identification of common cause of variation

Special conditions where the monitoring party needs to react

(vii) Pareto Charts

Pareto charts are used for identifying a set of priorities. You can chart any number of issues/variables
related to a specific concern and record the number of occurrences. This way you can figure out the
parameters that have the highest impact on the specific concern. This helps you to work on the propriety
issues in order to get the condition under control.

(Any three 2 x 3 = 6marks)

(c) What is the difference between value analysis and value engineering?
Value Analysis can be defined as a process of systematic review that is applied to existing product
designs in order to compare the function of the product required by a customer to meet their requirements
at the lowest cost consistent with the specified performance and reliability needed. Value engineering is
the term applied to value analysis done at the design and prototype stage of a product; the potentials of
saving are a more in case value analysis is done at design stage. Other advantages are that any changes at
this stage are less costly than to effect the same at a latter stage, when the production is in full swing.
[4marks]
(d) Difference between Financial and Cost accounting
Accounting is the process of identifying, measuring and communicating economic information to permit
informed judgements and decisions by users of the information. Keeping track of records and creating a
summary of financial transactions is called bookkeeping; when this information is produced and displayed
in reports for the use of the public outside the company, this process is called Financial Accounting. The
main purpose of financial accounting is to prepare profit and loss account and balance sheet for reporting
to owners or shareholders and other outside agencies. The main objectives of financial accounting are to
disclose the end results of the business, and the financial condition of the business on a particular date.
On the other hand Cost Accounting is the process of identifying, analyzing, recording and presenting
financial information that is used internally by the management for planning, decision making and
control. The main purpose of cost accounting is to provide detailed cost information to management i.e.
internal users. The main objective of managerial accounting is to help management by providing
information that is used to plan, set goals and evaluate these goals.
(4 marks)
Q3. (a) Define work design, and state what is involved in it. Describe the components of work study, and
state its importance.
(5 marks)
(b) Explain what is forecasting and its importance in industry.

(4 marks)

(c) Describe the two methods of wage payments.

(4 marks)

(d) Examine the Concept of Job Analysis and Job Description. Explain briefly how job analysis and job
description are important for Human Resource Planning, Selection, Performance Appraisal and Training.
(7 marks)

(a) Work Study forms the basis for work system design. The purpose of work design is to identify the
most effective means of achieving necessary functions. Work design involves job design, work
measurement and the establishment of time standards and worker compensation.
[1 marks]
Work Study is encompassed by two techniques - method study and work measurement (time study):
i) Method study is the systematic recording and critical examination of existing and proposed ways
of doing work, as a means of developing and applying easier and methods and reducing costs.
ii) Work measurement (or Time study) is the application of techniques designed to establish the
time for a qualified worker to carry out a specified job at a defined level of performance.
Work study aims at improving the existing and proposed ways of doing work and establishing standard
times for work performance.
[2 marks]
Importance of Work-Study
i) Work study is a means of enhancing the production efficiency (productivity) of the firm by
elimination of waste and unnecessary operations.
ii) It is a technique to identify non-value adding operations by investigation of all the factors
affecting the job.
iii) It is the only accurate and systematic procedure oriented technique to establish time standards.
iv) It is going to contribute to the profit as the savings will start immediately and continue throughout
the life of the product.
v) It is applied universally.
[2 marks]
(b) Forecasting is the process of estimating a variable, such as the sale of the firm at some future date.
Forecasting is important to business firm/industry, government, and non-profit organization as a method
of reducing the risk and uncertainty inherent in most managerial decisions. A firm must decide how much
of each product to produce, what price to charge, and how much to spend on advertising, and planning for
the growth of the firm.

Modern organizations require short-term, medium-term and long-term forecasts, depending on the
specific application. Short-term forecasts are needed for the scheduling of personnel, production and
transportation. Medium-term forecasts are needed to determine future resource requirements, in
order to purchase raw materials, hire personnel, or buy machinery and equipment. Long-term
forecasts are used in strategic planning; such decisions must take account of market opportunities,
environmental factors and internal resources.
(4 marks)

(c) Methods of wage payments

There are two basic methods of wage payments or compensation:
i) Wage payment on time basis: Under this method, wages are paid to the employee based the time for
which he/she works. In this system the workers are paid for the time they work irrespective of output.
This system is applicable where output is not quantifiable and it is not the criteria of payment, where work
is of not repetitive type.
[2 marks]

ii) Wage payment on the basis of output (piece rate system): In this system, wages are paid employees
in relation to the output produced. This method is very convenient where each individual worker is
capable of performing his work without any dependence on the other workers and the output produced
will be quantifiable. This method can be applied where output is standardized, and the work is of
repetitive nature.
[2 marks]
(d) Job analysis is the systematic study of jobs to determine what activities and responsibilities they
include, their relative importance in comparison with other jobs, the personal qualifications necessary for
performance of the jobs and the conditions under which the work is performed. An important concept in
job analysis is that an evaluation is conducted of the job, not the person doing the job (even though some
job analysis data may be collected from incumbents).

Job description is a very useful document that describes a list of a jobs duties, functions, roles, and
tasks, reporting relationships, working conditions and supervisory responsibilities etc., it is one product of
job analysis.
The success of every organization is dependent upon the performance of its employees. Ideally, all of the
jobs in an organization should interrelate to optimize the achievement of the organizations mission, goals
and objectives. As a result, job analysis (and by extension job description) is considered by many HR
practice leaders to be a pivotal aspect of effective human resources administration and planning. It has the
potential to impact every major core competency area of HR, for better or for worse, depending on the
adequacy of the underlying job analysis practices in place within the organization. Job analysis data can
and are used to identify the knowledge, skills and expertise required to effectively perform job
assignments, establish criteria for selection and promotions, design objectives for training and
development programs, develop the standards for the measurement of performance, and/or assist with the
determination of pay classification levels.
[7 marks]

Q4. (a) Discuss the nature and importance of a work breakdown structure in project management.
(5 marks)
(b) The activities involved in a small project are given below along with relevant information and
conditions. Construct the network and determine:
i. The length of each path,
ii. The critical path,
iii. The expected length of the project,
iv. Amount of slack time for each path, and
v. The float for each activity.
Condition: Activity 4-6 cannot be started before both activities 1-3 and 1-4 are completed; Activity 6-7
cannot be started before both activities 2-5 and 4-6 are completed.
Activity
1-2
1-3
1- 4
2-5
4-6
5-7
6-7
7-8
Duration in Days
14
5
3
3
7
2
3
2
(10 marks)

(c) How are ergonomic considerations useful in product design?

[5 marks]

(a) Work Breakdown Schedule: Because large projects usually involve a very large number of activities,
planners need some way to determine exactly what will need to be done so that they can realistically
estimate how long it will take to complete the various elements of the project and how much it will cost.
This is often accomplished by developing a work breakdown structure (WBS), which is a hierarchical
listing of what must be done during the project. This methodology establishes a logical framework for
identifying the required activities for the project:
i) The first step in developing the work breakdown structure is to identify the major elements of the
project.
ii) The next step is to identify the major supporting activities for each of the major elements.
iii) Then, each major supporting activity is broken down into a list of the activities that will be needed
to accomplish it.
iv) The work breakdown structure becomes the focal point for planning the project.
[5 marks]
Calculation: See Q33 of the Model Answers (the question is similar; only figures are changed the duration
in days is halved)
[10 marks]
(c) Ergonomic considerations useful in product design
Ergonomics is a science focused on the study of human fit, and decreased fatigue and discomfort through
product design. Ergonomics applied to office furniture design requires that we take into consideration how
the products we design fit the people that are using them. At work, at school, or at home, when products
fit the user, the result can be more comfort, higher productivity, and less stress. Ergonomics can be an
integral part of design, manufacturing, and use. Knowing how the study of anthropometry, posture,
repetitive motion, and workspace design affects the user is critical to a better understanding of ergonomics
as they relate to end-user needs.
Anthropometry is the science that measures the range of body sizes in a population. When designing
products it is important to remember that people come in many sizes and shapes. Anthropometric data
varies considerably between regional populations. For example, Scandinavian populations tend to be
taller, while Asian and Italian populations tend to be shorter. There are common postures found in the
office environment that can be considered when designing workplace products or space; these postures
are Standing, Sitting, Reaching and Moving.
[5 marks]