BA5206 OPERATIONS MANAGEMENT

Two marks questions and answers

Unit - I

1. List of major components of production system. May/June 2012,

The three components of a production system are depicted in this diagram.

2. Define Operation Strategy May/June 2012

Operational strategies refers to the methods companies use to reach their objectives. By developing operational
strategies, a company can examine and implement effective and efficient systems for using resources, personnel and the
work process.

3. What is production system? May/June 2010

Production system consists of three main components viz., Inputs, Conversion Process and Output.

i. Inputs include raw-materials, machines, man-hours, components or parts, drawing, instructions and other paper
works.
ii. Conversion process includes operations (actual production process). Operations may be either manual or
mechanical or chemical. Operations convert inputs into output. Conversion process also includes supporting
activities, which help the process of conversion. The supporting activities include; production planning and
control, purchase of raw-materials, receipt, storage and issue of materials, inspection of parts and work-in-
progress, testing of products, quality control, warehousing of finished products, etc.

iii. Output includes finished products, finished goods (parts), and services.

4. What is competitive priority?

The key to develop effective production / operation strategy lies in understanding how to create or add value
to the customers . Five basic Competitive Priorities are Cost , Quality, Delivery, Flexibility and service.

5. What is Lean Production? May/June 2013

Lean manufacturing or lean production, often simply "lean", is a systemic method for the elimination
of waste within a manufacturing process.
6. What is bottleneck in operation?
A bottleneck is a stage in a process that causes the entire process to slow down or stop. In a communications
context, a bottleneck is a point in the enterprise where the flow of data is impaired or stopped entirely

7. State the importance of production system.

It is the foundation for earning profits by producing goods or services and selling them into the market.
 It ensures that produced goods or services are of desired quality, in required quantity and according to time-
schedules.

It facilitates optimum inventory level.

It ensures proper co-ordination and necessary control, which are required for adequate, time and cost-conscious
production.

It ensures coping with the changes in demands in the market and maintains stability in the production department.

8. What do you mean production sharing May/June 2010

An agreement to share the production or extraction costs between two governments, a government and a
corporation, or a corporation and an individual. This can be accomplished when two countries agree to allow
certain raw materials to be shipped tariff free from the first country to the second country where the materials are
manufactured into a finished product.

9. What is Nature of operation management?

Know the production & operation function as process of value addition.
Recognize the distinction between product & services.
Understand all organizations as conversion system whether in manufacturing or service sectors.
Identify problems of decision making in operations management.
Distinguish functions & requirements of different departments.
Facilities required for production & operation.
10. What is transformation process ?

11. Difference between service and goods. Nov/Dec 2014, April/May 2017
GOODS SERVICE
Tangible Intangible and perishable
Complex and interrelated processing Simple processing
Demand on system variable on weekly, monthly Demand on system variable on hourly, daily and
and seasonal basis. weekly basis.
Products can be stored for later consumption Capacity must be designed for maximum demand.
Facilities can be located to minimize operations Service facilities must be located near the customer.
and transportation cost.
12. What is system perspective?
A system perspective facilitates a comprehensive understanding of the various aspects of operations management. It
essentially involves identifying the input, the output, the processing and feedback mechanism in a system.
13. What are current priorities?
i. Relate the operation systems to customer /market requirements.
 ii. Acquire capabilities to tolerate product/service proliferation.
iii. Develop system and procedures that promote learning.

14. What is supply chain management? Nov/Dec 2015, Nov/Dec 2016, Nov/Dec 2017
Supply chain management deals with the total flow of material from supplier through end user.

15. What are the elements of Operation Management May/June 2016

Customer, Capacity and Process plays the role of three important elements of Operations Management.
16. What do you mean by Control Decision? May/June 2010
It is an important function because it helps to check the errors and to take the corrective action so that
deviation from standards are minimized and stated goals of the organization are achieved in a desired manner .
17. What is Historical Development in OM? April/May 2017
In manufacturing at least, it has changed dramatically over time, and there are three major phases - craft
manufacturing, mass production and the modern period.

18. What is Operation Trends?

Behavioral Operations Management that accounts for deviations from rational decision makers although
not a new field is definitely trending among OM researchers.
19. What is framework?
An operational framework is a guide to a company's policies, goals, standards, procedures and
training. The framework sets out the way the company does business and promotes a corporate culture and identity.
20. What is Operation Management? May/June 2014, Nov/Dec 2014
Operations management is an area ofmanagement concerned with overseeing, designing, and
controlling the process of production and redesigning business operationsin the production of goods or services.
21. What is Intermittent Production?
In this system, the goods are manufactured specially to fulfill orders made by customers rather than for
stock. Here the flow of material is intermittent.
22. Explain Quality control in operations management.
Steps should be taken to produce the goods according to the specifications and to minimize the amount
of defective work. The success of any brand is on the uniformity and level of quality it holds for each of its product.
23. What do you mean by Push and Pull Concept?
A pull process is activated in response to a confirmed order from a customer. This includes make to
order or a just in time manufacturing process. A push process conforms to a conventional supply chain management
system going through typical stages in sequence.
24. What do you mean by Principle of Agility? May/June 2011
Enriching the customer, leverage human resources, cooperate to compete, create virtual organizations.

25. What is a Procurement Cycle?

This is the interface between the first tier supplier and the second tier supplier to that product. It
includes all the process necessary to ensure materials or components are available for the production cycle and the
first tier supplier.

Part B (13 Marks )

1. With illustration from India and international context enumerate the recent trends in production and operation

management. [Page No. 32] [AU-JUNE 2012],

2. Define Production Systems. Explain the concept of production systems helps in understanding of Production and

Operations Management. [Page 19] [AU JUNE 2010, JUNE 2014, DEC 2014, Nov/Dec 2016]

3. Describe the Challenges on Operations Management. [Page 28] [AU JUNE 2011] May/June 2016, April/May

2017

4. List and explain the functions of Operations Management. [Page 29]

5. List and explain four different basic types of manufacturing process. [Page 20] [AU-JUNE 2013]

6.What are the advantages of e-supply chain management? Also, explain the various stages involved in typical

supply chain management [Page 16] [AU- Nov/Dec 2015, Nov/Dec 2017

7. . Elucidate the Framework of Operations Strategy. [Page 38] [AU JUNE 2010, AU-JUNE 2013, May/June 2016,

Nov/Dec 2017, April/May 2017

8. How do you develop a Manufacturing Strategy in a 3 step Model? [Page 40].

9. Sketch an Outline of Systems Perspective of Operations Management. [Page 28] [AU-JUNE 2011,

November/December 2016]

10. Give out the important differences between Services and Goods. [Page 27] [AU-DEC 2014]

TWO MARKS QUESTIONS

 UNIT II

1. What is tracking signal in forecasting? (pg 54) (Nov 2014) (May 2011)
A tracking signal is a measurement of how well the forecast is predicting actual values.
Tracking signal = Running sum of the forecast errors
Mean absolute deviation

2. Define capacity requirement planning. (pg 81) (Dec 2014) (May 2010) (May 2011) (May 2012)
It is a technique for determining hat labors /personnel and equipment capacities are needed to meet the production
objectives symbolized in the master production schedule and the material requirement planning.

3. Why are forecast needed? (pg 50)

Demand forecasting is essential for a firm because it must plan its output to meet the
forecasted demand according to the quantities demanded and the time at which these are
demanded.

4. What is bill of materials ? (pg 91)

A list indicating the quantities of all raw materials, parts, components, subassemblies and major assemblies that goes
into an end product. It gives details of the buildup of a product. It may also be called as intended part list.

5. What is capacity utilization? (pg 73) (May 2013)

Capacity utilization is the extent to which an enterprise or a nation actually uses its installed productive capacity.
It is the relationship between actual output that 'is' actually produced with the installed equipment, and the
potential output which 'could' be produced with it, if capacity was fully used.
6. Define aggregate planning. (pg 78)
Aggregate planning involves planning the best quantity to produce during time periods
in the intermediate range horizon and planning the lowest cost method of providing the
adjustable capacity to accommodate the production requirements.

7. Differentiate material requirement planning with enterprise resource planning. (pg 101)

ERP is software thats used to plan the resources of an organization. Those resources include everything from
finances to workforce and materials to processes and information.

MRP is a more specialized type of software. Its used specifically to plan the resources that are used during the
manufacturing process and can include quoting, work orders, bills of materials, and purchasing or shop floor
management.

8. What do you understand by Delphi technique ?(pg 54) (May 2010)

This method is also known as Expert opinion method of investigation. In this method, instead of depending upon the
opinion of buyers and salesman , firms can obtain views of the specialists or experts in their respective fields.
Opinions of different experts are sought and their identity is kept secret. These opinions are then exchanged among
the various experts and their reactions are sought and analyzed.

9. What is demand forecasting ? (pg 50) (Dec 2014)

Forecasting is the first step in the planning. It is defined as estimating the future demand and services and the
resources necessary to produce these outputs.

10. What is the objective for facility design? (pg 102)

To provide optimum space to organize equipment and facilitate movement of goods and to create safe and
comfortable work environment.
 To promote order in production towards a single objective
To reduce movement of workers, raw material and equipment
To promote safety of plant as well as its workers
To facilitate extension or change in the layout to accommodate new product line or technology
upgradation
To increase production capacity of the organization

11. Brief about developing capacity alternatives. (pg 79)

After existing and future capacity requirements are accessed by three ways :
1. Short term responses Short periods of upto one year. Facilities are seldom open or closed on a regular monthly
or yearly basis.
2. Long term capacity expansion The firm give a subcontract to some other company/the firm may develop new
sites, construct buildings or buying new equipments.
3. Long term capacity reduction It may happen by way of selling off the existing resources and by laying off the
employees.

12. What is operation planning ? (pg 73)

Operational planning is the process of planning strategic goals and objectives to tactical goals and
objectives. It describes milestones, conditions for success and explains how, or what portion of, a strategic plan will be put
into operation during a given operational period, in the case of commercial application, a fiscal year or another given
budgetary term.

13. What is facility layout? (pg 125)

Facility layout also known as plan layout refers to the configuration of departments, work centres and equipment and
machinery with focus on the flow of materials or work through the production system.

14. What are the planning tools and techniques? (pg 135)
These are the available tools and techniques for planning the layout.
1. Templates
2. Block diagramming
3. Operation sequence analysis
4. Line balancing
5. Use of computers

15. Define Cellular Manufacturing (pg 133) (May 2012)

Cellular manufacturing, a model for workplace design, is an integral part of just-in-time manufacturing and
lean manufacturing, with additional applications in administrative processes.

16. What is Fixed Position Layout? (pg 133)Nov/Dec 2016

Fixed-position layouts are typical of projects in which the product produced is too fragile, bulky, or heavy to move.
Ships, houses, and aircraft are examples. In this layout, the product remains stationary for the entire manufacturing
cycle.

17. What do you mean by MRP II? (pg 97)

Manufacturing resource planning (MRP II) is an integrated method of operational and financial planning for
manufacturing companies. MRP IIserves as an extension of MRP (closed loop manufacturing resource planning, also
abbreviated as CLMRP).

18. Distinguish between Design Capacity and system Capacity (pg 76) (June 2014)
In the context of capacity planning, design capacity is the maximum amount of work that an organization is capable
of completing in a given period.
 System capacity is formally defined as the maximum of the product of the number of users per cell times the user
spectral efficiency for a given maximum outage probability.

19. What is MPS? (pg 91)

A master production schedule (MPS) is a plan for individual commodities to be produced in each time period such
as production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how
much of each product will be demanded.

20. What is a Process Layout? (pg 130)

Process layout is a design for the floor plan of a plant which aims to improve efficiency by arranging equipment
according to its function. The production line should ideally be designed to eliminate waste in material flows,
inventory handling and management.

21. What is capacity planning? (pg 73)

Capacity planning is the process of determining the productioncapacity needed by an organization to meet changing
demands for its products. In the context of capacity planning, design capacity is the maximum amount of work that
an organization is capable of completing in a given period.

22. What is a product Layout? (pg 128)

In manufacturing engineering, a product layout refers to a production system where the work stations and equipment
are located along the line of production, as with assembly lines.

23. What is a combination layout? (pg 132)

A combination layout forms a specific usage of the comparison and combination of a product and process layout in
adequate terms.

24. What do you mean by CRAFT.

CRAFT is computerized relative allocation of facilities technique. It helps to minimize the material handling costs for
the entire plant.

25. Explain Line Balancing. (pg 135)

A production strategy that involves setting an intended rate of production for required materials to be fabricated within a
particular time frame. In addition, effective line balancing requires assuring that every line segment's production quota can
be met within the time frame using the available production capacity.

Part B (16 Marks)

1. With a detailed sketch explain the Evolution of ERP from MRP. Pg. 98-99 (May 2012)

2. Give the framework of MRP II and explain it. Pg. No. 97-98 Nov/Dec 2016

3. List the various types of demand forecasting and explain in detail any two qualitative and quantitative
methods of demand forecasting. (pg 52 and pg 54 and pg 57) (May 2012, May/June 2014.

4. Enumerate the various factors determining facility location. (pg 106-107), Nov/Dec 2016, April/May
2012,
5. Enumerate in detail the various objectives of demand forecasting. Also explain in detail any four types of
quantitative forecasting techniques with suitability. (pg 53 and pg pg 57) (May 2013) (June 2014) (Dec 2014),
April/May 2012

6. What factors should be considered when selecting the appropriate capacity? How does the choice of capacity
relate to other decision in operation management and to other functional areas.? (pg 79) (May 2013)
7. Explain the need, objectives, types and steps in demand forecasting. (pg 51-54) April/May 2013

8. Brief on the Types of capacity planning. Pg. No. 81-82. April/May 2015.
9. Explain in detail the major quantitative methods for solving location problems. (pg 108-115) (May 2012)
(May 2013)
10. Discuss the types of facility layout. Pg. No. 127-131. April/May 2015
 TWO MARKS QUESTIONS

UNIT III

1. Define Product design. (pg 141)

Product design is concerned with the form and function of a product. Form design involves the
determination of what a product would look like, i.e., the shape and appearance of the product, hat it will be made of
and how it will be made . Functional design deals with what function the product will perform and how it performs.

2. What do you mean by aesthetics? (pg 148)

This includes the style, color, look, feel , etc., which appeals to the human sense and adds value to the
product.

3. Explain the concept of process strategy. (pg 157)

Process strategy is a management process for taking the business plan and breaking it down into
specific detailed tasks that people evaluates, agree upon and are held accountable for all departments, viz.,
materials department , engineering department that must maintain bill of materials, sales/marketing department
that must keep sales plan up to date, purchasing and manufacturing departments that must meet due dates for
bought out items and in-house manufactured items respectively.

4. List the issues in product design. (pg 145)

Bill of materials file
Master production schedule
Inventory record file

5. What do you mean by agglomerative and deglomerative factors? (pg 105)

An agglomerative factor is an advantage or a cheapening of production or marketing which results from
the fact that production is carried on at one place.

A deglomerative factor is a cheapening of production which results from the decentralization of

production i.e production is more than one place.

6. What is Process Planning? (pg 151)

Process planning is arranging a production line so that , there is an even flow of production from one
work station to the next (i.e) so that there are no delays at any work station that will leave the next orkstation with
idle time.

7. Explain the concept of mass customization with real life examples (pg 158)
 The strategy option describes a system that can customize the products on a mass scale. Instead of
building products for markets, mass customizers build products for individual customers. These must be able to
deliver acceptable products to these customers at price not much higher then they would pay of standard products.

8. Write any four objectives of work study. (pg 163)

To analyze the present method of doing a job, systematically in order to develop a new and better method.
To measure the work content of a job by measuring the time required to do the job for a qualified worker
and hence to establish standard time.
To increase the productivity by ensuring the best possible use of human, machine and material resources
and to achieve best quality product/service at minimum possible cost.
To improve operational efficiency.

9. What is the main purpose of motion study?(pg 173)

To study the inter-relationship among the members of a work group

To study the relationship between an operator and the machines which he operates

To obtain the time for an operation

To establish a permanent record of the method of doing a job.

10. Define productivity. How productivity is measured? (pg 181) (May 2012) (May 2013)(April /May 2015)
Productivity means a balance between all factors of production that wwill give the maximum output with the
smallest effort.

Productivity = Output

Input.

11. What is the criteria for Make or Buy decision? (pg 158)
Make or buy decisions are policy decisions based on the companys investment policy.

Wheather to invest in a huge infrastructure having equipment and machinery to manufacture a wide range
of parts or to outsource parts extensively by sub-contracting or buying from established suppliers.

12. What is the Flow Process Chart? (pg 171) (June 2014)
Flow process charts: are graphic representations of the sequence of the all operations, transportation, inspections,
delays and storages occurring during a process or a procedure and include information considered desirable for
analysis such as time required and distance moved.

13. What is Work study? (pg 162) (Nov 2014) (Dec 2014)
Work study is defined as that body of knowledge concerned with the analysis of the work methods and
the equipment used in performing a job, the design of an optimum work method and the standardization of
proposed work methods.

14. Define Method study. (pg 166) (Dec 2014)(May 2012) (Nov/Dec 2016)
Method study may be understood as the systematic recording and critical examination of existing and
proposed ways of doing work, as a means of developing and applying easier and more efficiency method and
reducing costs.

15. State the methods to improve productivity for training. (pg 185)
 Employee-based techniques(based on management, psychology and behavioural science)

Material based techniques(based on material management ,and management science or operations research)

Task-based techniques (based on industrial engineering and ergonomics)

Product -based techniques (based on product engineering and marketing)

Technology -based techniques (based on computer engineering)

16. List some of the influencing factors for designing a new product. (pg 145)
Function (or) Performance , Appearance (or) Aesthetics , Reliability, Standardization, simplification,
Specification.

17. What are the factors that influence product design? (pg 144)
Customer requirements , Convenience of the operator and the user , Tradeoff between functions and forms , Types
of materials used, work methods and equipments, Cost/price ration, Product quality, Process capability, Effect on
existemce products, Packaging.

18. Derive short notes on simo chart. (pg 170)

The stimulation motion cycle chart is a type of to handled process chart in which micromotions of both hands are
recorded.

19. What are Therbligs? (Wikipedia) (May 2013)

Therbligs are fundamental body motions categorized with mnemonic symbols and standard colors for charting ,
developed as a system by the gilberths.
Search (Sr): That part of the cycle during which the eyes or the hands are hunting or groping for the object.
Search begins when the eyes or hands begin to hunt for the object and ends when the objects have been found.
Select (St): The choice of one object from among several. Select refers to the hunting and locating of one object
from several.
Grasp (G): Taking hold of an object, closing the fingers around it, preparatory to picking it up, holding it or
manipulating it
Transport empty (TE): Moving the empty hand in reaching for an object.
Transport loaded (TL): Moving an object from one place to another.
Find (F): Mental reaction at the end of serach.

20. What do you mean by Simultaneous Engineering? (pg 158) (May 2010)
Simultaneous engineering, is a method of designing and developing products, in which the different stages run
simultaneously, rather than consecutively. It decreases product development time and also the time to market,
leading to improved productivity and reduced costs.

21. What is SIMO chart? (Pg 170) (May 2010)

SIMO stands for simultaneous-Motion Cycle chart. It is one of micro motion study devised by Gilbreth and it
presents graphically the separable steps of each pertinent limb of the operator under study. It is an extremely
detailed left and right hand operation chart.

22. What are the influencing factors for developing a new product? (pg 144) (May 2011)
Cost, ergonomics, Materials and customer requirements are being some of the prime factors which play as a
responsible things that influence the process of new product development.
23. Write short notes on Maximum utilization of Scarce resources. (Pg 184)
 The productivity processes and techniques are designed to facilitate more efficient work involving less fatigue to
workers by improvements in the layout of the plant and work, better working environment and simplification of
works.

24. What is a String Diagram? (pg 171))

The placement of equipment and furniture in work areas is often done randomly and sequentially, rather than with
any sense of what positioning will make the work easier. The result is that subsequent work requires much more
moving about than is necessary.

25. What is Specialization and Standardization? (pg 185)

Specialization reduces idle time through variety reduction. Standardization reduces idle time due to short runs and
sue to increased batch size.

(16 Marks Questions)

1. Explain in detail about Process Planning. Distinguish between Standardization and Simplification. (pg 151-156) (June
2014)(April/May 2015),

2. What is Work measurement? Explain the different methods followed to improve the productivity. Also bring out the
applicability of work measurement in industrial settings. (pg 174-176) May 2012, (May 2011) (Dec 2014)

3. Briefly describe the procedure to conduct the method study. (pg 166-169) (Dec 2014)
Explain the process selection with a suitable example. (pg 152-155) (May 2011)
4. Explain the relationship between Method Study and Time Study. (pg 166-171) (June 2014) (Nov/Dec 2016)
(April/May 2015)
5. Define productivity and discuss the methods to improve productivity. (pg 187-183) (May 2011)
6. Write an essay about the factors to be considered in deciding the product design. (pg 144-146) (May 2012) (May
2013)
7. Elucidate the legal, ethical and environmental issues in product design with real world example. (pg 144-145)
8. List some of the influencing factors for designing a new product. (pg 171-172) (May 2011)
9. Name and describe the steps in developing a new product. What are the key differences between a prototype and a
production design? . Explain in detail the various approaches and influencing factors in deciding on the product design
(pg 147-151) (May 2013) ( April/May 2015)
10. Describe the relationship between process design and product design. (pg 155-156,) May 2010, Nov/Dec 2016.
 Unit IV

1. Define Just In Time. What is the objective of JIT? (Dec 2014) (June 2014)(Nov/Dec 2016)

Philosophy that focuses attention on eliminating waste by purchasing or manufacturing just enough to the right items
just in a time.
Objectives:

Produce only the products that customer wants

Produce products only as quickly as customers want to use them.

Produce products with perfect quality

Produce with no waste of labor, materials or equipments and with zero inventory.

2. What are the reasons for stocking items in Inventory? (June 2014)

Smoothing out irregularities in supply

Buying or producing in lots or batches

To meet seasonal or cyclical demand

To take advantage of price discounts while buying items

To maintain continuity to operations in production process.

3. What is Materials Management Information Systems (MMIS)? (Dec 2014)

MMIS provides information online, which is useful for decision making. In same in the case with MMIS that
provides the online information about stock level of raw materials, work-in-progress, finished goods and stores on spares.

4. Define value analysis. (April/May 2015)

Value analysis is the investigation of the performance of a material or a component in term of its function and
its unit price to develop the most effective specialization at the lowest ultimate cost.

5. Explain KANBAN in JIT.

Kanban is loosely referred to as a card system. It is the production control system that pulls JIT production
allowing production with smaller inventories. Kan, means visual and ban, means card therefore Kanban means literally
Visual Record.It becomes an effective tool to support the whole production syatem.

6. What does VED stand for? (pg 189)

Vital Essential Desirable the items are classified on the basis of their critically to the production process or
other services.
7. What are all the components of Inventory Carrying Cost?

Capital costs, Storage space costs, Inventory services costs, Inventory risk costs

8. Define Rating. Explain the different type of allowances. (May 2013)

Is determine by comparing the actual place or speed of working with standard pace or speed of working.

Types of Allowances:

1. Relaxation allowance

2. Contingency allowance

3. Process allowance

4. Special allowance 1. Interference allowance 2. Periodic activity allowance.

9. List any three vendor rating techniques.

The categorized plan , The weighted point plan , The cost ratio plan

10. What is the difference between the push and pull methods of material flow?

11. "Push type" means Make to Stock in which the production is not based on actual demand. "Pull type" means
Make To Order in which the production is based on actual demand. "Push type" and "Pull type" are opposite in terms
of a demand and supply relationship. "Push type" is represented by "Make to Stock" (MTS) in which the production is
not based on actual demand and "Pull type" is represented by "Make To Order" (MTO) in which the production is
based on actual demand

12. What is material planning? What is materials management? (May 2011)

Material planning is the scientific way of determining the requirements of raw materials, components, spares and other
items that go into meeting the production needs within economic investment policies.

Material management is the management of the flow of materials into an organization to the point, where, those materials
are converted into the firms end products.

13. What are the steps involved in value analysis?

Value analysis step Specific technique

1 orientation/preparation
basic techniques
2 Information
3 Analysis functional analysis, basic techniques
4 innovation/creativity
5 Evaluation basic techniques
6 implementation and monitoring

14. Write about cycle graph and chronocyclegraph.

This method was developed by Frank B. Gilberth to study the motion of the motion path of an operator.
These are very accurate methods and use a high speed camera for photographing the path of motions , little light bulbs
attached to the hands or fingers of the operator trace continous lines of movementson the photographic plate exposed
to the view , when the operator is doing the job.
 A similar photographic procedure is used to make a chrono cycle graph in which the light source is suitably
interrupted so that the path appears as a series of pear-shaped spots.

15. What is vendor/performance rating? (May 2011)

A firm should review the performance of its vendors to find out how good its supplies are . The measurement system
will be called as vendor rating / performance rating

16. What is FSN analysis? (May 2013)

Fast-moving, Slow moving, Non-moving classification helps in arrangement of stocks in the stores and in
determining the distribution and handling partners.

17. Define the term Re-order point. (May 2010)

Order is placed for the same constant or fixed amount whenever the inventory on hand reaches a certain
predetermined level is known as re-order point

18. What is EOQ? Economic order quantity is a model applicable when the demand for an item has a constant
or nearly constant rate and when the entire quantity ordered arrives in inventory at one point of time.

18. What do you mean by ABC analysis?

Always better control analysis is a basic inventory control technique which is often the starting point . It can be
applied to almost all aspects of material management such as purchasing, receiving, inspection, storekeeping and issue of
materials from stores, inventory control, verification bills, value analysis, etc.,

19. What do you understand by Materials Management Manual? (May 2010)

Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials,
from their initial purchase to destination.

20. Why do we need JIT in manufacturing? (May 2011)

JIT encourages utilizing the contribution of workers, supervisors and managers to achieve the best results. It controls
the system variability and helps in quality products and services.

21. What is SOS Analysis?

SOS analysis is based on the nature of supplies, where in, S represents the seasonal items and OS represents the Off-
Seasonal items.

22. List out three important inventory control techniques.

EOQ Model
Levels of Stock
Reorder level
Selective Inventory control

23. What is a Matrix Method?

A large number of parameters can be considered, quantified, weightages assigned and analyzed with the help of
computer. But most of the methods restrict the parameters to quality, price and service.

24. What is competitive pricing in Vendor rating?

The prices paid should be comparable to those of vendors providing similar product and services. Quote requests
should compare favorably to other vendors.

25. Discuss about high inventory turnover. When inventories are low in relation to sales, less capital is tied up in
inventories. This in turn, increases the efficiency with which, the companys capital is utilized, so that return on
investments is higher.
 Part B (16 marks)
1. Give a detailed note on inventory control techniques. (pg 220, 224, 225, 228, 233, 234) (Nov/Dec 2016)

2. Explain the vendor rating techniques, with example. (pg 202-204 (May 2010) (May 2011) (June 2014) (Dec 2014)

(April/May 2015) (Nov/Dec 2016)

3. Explain the principles, factors affecting layout of stores. What are the various records used in stores. (pg 212-215)

(May 2010)

4. Explain the objectives, functions and policies of the purchasing. (pg 196) (May 2012)(June 2014) (Dec 2014)

(April/May 2015)

5. Explain the objectives, advantages and principles of value analysis. (pg )( pg. 205-207)) (May 2010) (May 2012)(May

2013) (June 2014)

6. What are the objectives of integrated materials management? (pg 188-189) (May 2011)

7. Explain the activities and the functions of materials management. Discuss materials management information systems.

(MMIS). (pg 190-191 (May 2010)

8. What are the different types of Model of Inventory System? Explain them in detail. (pg 220-224) (June 2014)

9. What is Store Management? Discuss the cost control techniques used in store management. (pg 209-210) (June 2014)

10. What is selective inventory control? Explain in detail the purpose, applicability and process of selective inventory

control. (pg 228-232) (May 2011) (May 2012)

 UNIT- V

1. How will you estimate expected time in PERT network? (May 2011)
Estimation time t = a+4m+b

Variance of estimation = (b-a)

2. What is Load leveling? (May 2012) (Nov 2014)

Load leveling is a measure of satisfying demand through inventory (or) by the current production schedule in time to
satisfy the customers requested delivery dates and quantities. In a make-to-stock environment, level of service is
sometimes calculated as the percentage of orders.

3. Define Project and Project Management? (Dec 2014)

Project: Project is a group of unique, interrelated activities that are planned and executed in a certain sequence to
create a unique product/service, within a specific time frame, budget and the clientss specifications.

Project Management: Project Management is the application of knowledge, skills, tools and techniques to project
activities in order to meet or exceed stakeholder needs and expectations

4. State two objectives of project Management?

1. The Project must be completed on time.

2. The Project must be accomplished within budgeted cost.

5. Define PERT? (Dec 2014)

PERT-Program(or) Project Evaluation Review Technique

It was developed primarily to simplify the planning and scheduling of large and complex projects. It consists of a
network diagram which is a two-dimensional schematic of the relationships between tasks in a project. PERT is the out-
standing approach for the timely completion of projects.

5. What is Critical path Method (CPM)?

CPM refers to a quantitative approach, is applied to network planning, is helpful in calculating the minimum
time and the sequence of tasks needed to complete a project.CPM is applied where the activity times are more
(or) less certain.

7. What do you mean by sequencing?

Sequencing is the arrangements of the tasks required to be carried out sequentially. Sequencing problem is to find
sequence of jobs in such way that when execute it should give maximum profit. It arise when we are concerned with
situations where is choices to the order in which a number of tracks can be performed.

8. Define Shop floor control?

Shop floor control is to maintain the status of the work-in-process. Shopfloor data
are utilized for measuring the labour performance machine utilization and quality,all of which are important but do not
measure the control system.

9. What are Gantt chart and its types?

Gantt chart is the purpose to provide an immediate comparison between schedule and reality. The Gantt chart
is actually modified barchart in which horizontal bars are drawn for each activity in propottion to the time required for
completing.
Types of Gantt Chart:
1. Workload chart.
2. Scheduling chart.
3. Machine load chart.

11. Write a short note on nature of scheduling?

a) They relate to the near future (1 day 1month ahead)
b) There is an enormous number of potential solutions.
c) They exists within a hierarchy of related problems over different time scales.
12. Distinguish between PERT and CPM? (June 2014)

PRET
PERT is concerned with events.
PERT can be analyzed statistically.
PERT is suitable for non-repetitive projects.
PERT is not concerned with relationship.
CPM
CPM is concerned with activities.
CPM cannot be analyzed statistically.
CPM is designed for repetitive projects.
CPM establishes a relationship.

13. What is free float, Independent float, and Total float?

Free float: The Free float is the part of the total float which can be used without affecting the float of the
succeeding activities.
Independent float: The independent float of an activity is the amount of float time which can be used without
affecting either the head or the tail events.
Total float: The total float of an activity represents the amount of time by which it can be delayed without delaying the
project completion date.

14. What is slack?

The amount of time that an activity or group of activities can slip without causing a delay in the
completion of the project . It is also known as float.

15. What is work center scheduling?

16. Work center scheduling is designed to meet a range of objectives with the balance of these objectives being
determined by the strategy of the organization.

16. What is Flow shop scheduling? (June 2014) May june 2016
Flow shop scheduling is a special type of job in which the m machines are numbered 1,2,3, m, and a job may
require a maximum no of operations one operation on each machine.

17. List the ways of scheduling Work Centers?

The ways of scheduling Work Centers
1. Infinite loading.
2. Finite loading.
3. Forward scheduling
4. Backward scheduling.
19. What are the tasks that project team must perform before the projects begin? (May 2012)
To go for total accountability
Dedication on the project
Requirement for coordination
Integrated planning and control

20. What is load leveling?

Load leveling usually involves storing power during periods of light loading on the system and delivering it during
periods of high demand.

26. Write any two principles of work center scheduling?

There is a direct equivalence between workflow and cashflow.
The effectiveness of any job shop should be measured by speed of flow through the shop.

21. What is sequencing?

Sequencing is the arrangement of the tasks required to be carried out sequentially. In other words sequencing problem
is to find sequence of jobs in such a way that when execute is should give maximum profit.

22. How can you minimize lead time?

Minimize the time that the product is in production to minimize inventory levels and respond to customer demand
quickly.

23. List out any two features of PERT? May june 2016
3 time estimates namely optimistic, normal and pessimistic times are estimated for each activity to take into account
the presence of uncertainties, the three time estimates are used to calculate the expected time for each activity.

24. What are the steps in the process of project management?

Initiation process
Planning process
Implementation process
Controlling process
Closing process

25. What is corporate downsizing?

Corporate downsizing is the process of reorganizing a company structure in a manner that brings about layoffs of a
portion of the companys work force. The actual downsizing may be an attempt to keep the company profitable when
demand for the businesss products or services declines, the elimination of a division or subsidiary that is considered
outmoded and not in line with new company goals, or the result of a merger with another company.
 Part B (16 marks)

1. Explain the following terms : (pg 244) (June 2014)

(i) Active schedule

(ii) Semi active schedule

(iii) Non-delay schedule

(iv) Gantt chart. (pg 273)

2. Explain the Crashing in project Network. Differentiate between Resource Levelling and Resource Allocation. (pg 245)
(June 2014), May June 2016

3. Briefly explain the scheduling techniques with suitable examples from logistics. (or) Describe different scheduling
techniques in project management. (pg 245) (Dec 2014),
4. List with examples the heuristic sequencing rules for scheduling production. (pg 264) (April 2012)

5. Compare PERT and CPM. (pg 255)

6. State Johnsons Rule and describe its application with an illustration. Pg. 264 May June 2016

7. (i)Describe personnel scheduling in services? (pg 277)

(ii) What is the importance of scheduling? Describe the factors affecting scheduling? (pg 243)
8. What are the objectives of sequencing? (pg 258)

9. (i) Define project and project management. Describe project management process in detail. (pg 238) (Dec 2014)
(ii) Problems in PERT, CPM, 2 machines and 3 machines on sequencing.
10. Describe the priority rules for job sequencing? What are the objectives of sequencing? (pg 259)