Production & Operations Management

Assignment A
1.    Discuss the Material Requirement planning.
Ans.
    
2.    Differentiate between ABC and VED analysis.
Ans.

3.    Explain EOQ.
Ans.

4.    Discuss the PDCA cycle.    
Ans.

5.    Explain mass production system.    
Ans.

6.    Discuss different types of plant layout.    
Ans.

7.    Discuss JIT.    
Ans.

8.    Explain production planning and control.    
Ans.

Assignment B
Case Detail:
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.
We want to determine the optimal number of units to order so that we minimize the total cost associated with the purchase, delivery and storage of the product.
The required parameters to the solution are the total demand for the year, the purchase cost for each item, the fixed cost to place the order and the storage cost for each item per year. Note that the number of times an order is placed will also affect the total cost, though this number can be determined from the other parameters.

1.    Discuss the parameters required to calculate EOQ. 
Ans.

2.    When can EOQ be implemented? 
Ans.

3.    Explain various costs associated with inventory.
Ans.

Assignment C

Question No.  1    
…………...applies only when demand for a product is constant over the year and each new order is delivered in full when inventory reaches zero.    

Options    
EOQ    
ABC    
VED    
FSN

Question No.  2    
This is the variable cost of goods: purchase unit price × annual demand quantity.    

Options    
Purchase cost    
Ordering cost    
Holding cost    
all of the above

Question No.  3    
……………...is the planning of production and manufacturing modules in a company or industry    

Options    
production planning    
production control    
Both (a) & (b)    
None of the above

Question No.  4    
Production planning can be combined with production control into production planning and control, or it can be combined and or integrated into ………..    

Options    
ABC    
EOQ    
ERP    
VED

Question No.  5    
Production planning comprises of which of the following activities?    

Options    
Determination of the required product mix and factory load to satisfy customers needs
Matching the required level of production to the existing resources    
Scheduling and choosing the actual work to be started in the manufacturing facility
all of the above

Question No.  6    
………... is the activity of monitoring and controlling any particular production or operation.    
Options    
production planning    
production control    
Both (a) & (b)    
None of the above

Question No.  7    
This is the cost of placing orders: each order has a fixed cost K, and we need to order D/Q times per year.    

Options    
Purchase cost    
Ordering cost    
Holding cost    
all of the above

Question No.  8    
It is also known as Facilities Planning and Layout.    

Options    
Plant    
production control    
plant mayout    
plant layout

Question No.  9    
If all the processing equipment and machines are arranged according to the sequence of operations of the product, the layout is called...    

Options    
 Product or Line Layout    
Process or Functional Layout.    
Fixed Position Layout.    
all of the above

Question No.  10    
In this type of layout, only one product of one type of products is produced in an operating area.    

Options    
Product or Line Layout    
Process or Functional Layout.    
Fixed Position Layout.    
all of the above

Question No.  11    
This layout is particularly useful where low volume of production is needed.    

Options    
Product or Line Layout    
Process or Functional Layout.    
Fixed Position Layout.    
all of the above

Question No.  12    
It is an engineering study used to analyze different physical configurations for a manufacturing plant    

Options    
Plant    
production control    
plant mayout    
plant layout

Question No.  13    
It is a "set of actions and decision taken during production to regulate output and obtain reasonable assurance that the specification will be met."    

Options    
production planning    
production control    
Both (a) & (b)    
None of the above

Question No.  14    
In this type of layout, the machines and not arranged according to the sequence of operations but are arranged according to the nature or type of the operations.    

Options    
Product or Line Layout    
Process or Functional Layout.    
Fixed Position Layout.    
all of the above    

Question No.  15    
……...is an Internet-enabled, often Web-based application that acts as a mechanism for business to manage and procure staffing services – temporary, and, in some cases, permanent placement services – as well as outside contract or contingent labor.    

Options    
ABC    
EOQ    
JIT    
VMS

Question No.  16    
The average quantity in stock (between fully replenished and empty) is Q/2, so this cost is h × Q/2    

Options    
Purchase cost    
Ordering cost    
Holding cost    
all of the above

Question No.  17    
An effective MPS    

Options    
Give production, planning, purchasing, and management the information to plan and control manufacturing    
Tie overall business planning and forecasting to detail operations    
Enable marketing to make legitimate delivery commitments to warehouses and customers    
all of the above

Question No.  18    
MPS issues:    

Options    
Width of the time bucket    
Planning horizon    
Rolling plan    
all of the above

Question No.  19    
In this type of layout the major component remain in a fixed location, other materials, parts, tools, machinery, man power and other supporting equipment’s are brought to this location.    
Options    
Product or Line Layout    
Process or Functional Layout.    
Fixed Position Layout.    
all of the above

Question No.  20    
………...is a methodology aimed primarily at reducing flow times within production as well as response times from suppliers and to customers.    
    
Options    
ABC    
EOQ    
JIT    
VED

Question No.  21    
…………….is a plan for individual commodities to be produced in each time period such as production, staffing, inventory, etc    

Options    
MPS    
ABC    
EOQ    
JIT

Question No.  22    
A…………. is a person or organization that vends or sells contingent labor.    

Options    
vendor    
customer    
company    
all of the above

Question No.  23    
This layout is commonly suitable for non repetitive jobs.    

Options    
Product or Line Layout    
Process or Functional Layout.    
Fixed Position Layout.    
all of the above

Question No.  24    
It is the most effective physical arrangement, either existing or in plans of industrial facilities i.e. arrangement of machines, processing equipment and service departments to achieve greatest co-ordination and efficiency of 4 M’s (Men, Materials, Machines and Methods) in a plant.    

Options    
Plant    
production control    
plant mayout    
plant layout

Question No.  25    
It utilizes the resource allocation of activities of employees, materials and production capacity, in order to serve different customers.    

Options    
production planning    
production control    
Both (a) & (b)    
None of the above    

Question No.  26    
This type of layout is used in the manufacture of boilers, hydraulic and steam turbines and ships etc.    

Options    
Product or Line Layout    
Process or Functional Layout.    
Fixed Position Layout.    
all of the above

Question No.  27    
…………...is the process of determining the production capacity needed by an organization to meet changing demands for its products    

Options    
production control    
plant mayout    
plant layout    
capacity planning

Question No.  28    
Effective capacity is the maximum amount of work that an organization is capable of completing in a given period due to constraints such as    

Options    
quality problems    
delays    
material handling    
all of the above

Question No.  29    
 IT capacity planning involves    

Options    
estimating the storage    
computer hardware, software    
connection infrastructure resources    
all of the above

Question No.  30    
Demand for an organization's capacity varies based on    

Options    
changes in production output    
increasing or decreasing the production quantity of an existing product    
Both (a) & (b)    
None of the above

Question No.  31    
Better utilization of existing capacity can be accomplished through improvements in overall …….. effectiveness    

Options    
equipment    
class    
product    
all of the above

Question No.  32    
………….. can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities.    

Options    
control    
management    
Capacity    
all of the above    

Question No.  33    
…….. strategy is adding capacity in anticipation of an increase in demand.    

Options    
lag    
pull    
push    
lead

Question No.  34    
A large capacity does not necessarily imply…... inventory levels, but it can imply higher cycle stock costs.    

Options    
low    
zero    
high    
two

Question No.  35    
…………. strategy refers to adding capacity only after the organization is running at full capacity or beyond due to increase in demand    

Options    
lag    
pull    
push    
lead

Question No.  36    
Typical features of a VMS application include    

Options    
order distribution,    
consolidated billing    
significant enhancements in reporting capability    
all of the above

Question No.  37    
This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods.    

Options    
MPS    
ABC    
EOQ    
JIT

Question No.  38    
…………... strategy is an aggressive strategy with the goal of luring customers away from the company's competitors by improving the service level and reducing lead time.    

Options    
lag    
pull    
push    
lead    

Question No.  39    
……..strategy is adding capacity in small amounts in response to changing demand in the market    

Options    
match    
lag    
pull    
push

Question No.  40    
………. strategy is adding or reducing capacity in small or large amounts due to consumer's demand, or, due to major changes to product or system architecture.    

Options    
attachment    
match    
lag    
pull