MANAGEMENT PROGRAMME
Term-End Examination
June, 2OO8
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
Time : 3 hours Maximum Marks : 700 (weightage 70%)
Note : section A has five questions that carry 20 marks each. Attempt any three questions from this Section. Section B is compulsory and carries 40 marks.
SECTION A
1. (a) Explain the Management Systems concept with the help of an example. what are the major distinctions between a production organisation and a service organisation ?
(b) Product A consists of three B type sub-assemblies and one c type sub-assembly. The sub-assembly B consists of one D sub-assembly, one E sub-assembly, and one F sub-assembly. The sub-assembly E consists of a D and a K. The sub-assembly C consists of a G and an F.
(i) Prepare a product tree.
(ii) Prepare the Bill of Materials.
(iii) Determine the number of each
sub-assembly/components required to prepare fifty units of item A. 10+10
2. (a) Discuss briefly with suitable examples, each of the following :
(i) a long-range capacity decision
(ii) an intermediate-range capacity decision
(iii) a short-range capacity decision
A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives A and B have been identified, and the associated costs and revenues have been estimated.
Annual fixed costs would be Rs. 40,000 for A, and Rs. 30,000 for B; variable costs per unit would be Rs. 10 for A and Rs. 12 for B; and revenue per unit would be Rs. 15 for A and Rs. 16 for B.
(i) Determine the break- even point, in units, for each alternative.
(ii). At what volume of output would the two alternatives yield the same profit ?
(iii). If expected annual demand is 12,000 units, which alternative would yield a higher profit ? 10+10
3. (a) Why are new facilities built on sites that are far away from the companies' present sites ? Justify your answer with suitable examples.
(b) The time following observations have been taken in a study experiment:
| Observation | Time (in minutes) |
| 1 | 0.11 |
| 2 | 0.10 |
| 3 | 011 |
| 4 | 0.10 |
| 5 | 0.14 |
| 6 | 0.10 |
| 7 | 0.10 |
| 8 | 0.09 |
| 9 | 0.12 |
| 10 | 0.09 |
| 11 | 0.12 |
| 12 | 0.11 |
(i) the observed time,
(ii) the normal time, and
(iii) the standard time,
using a performance rating of 0.95 and a percent allowance of 8 percent. 10+10
4- (a) Define value analysis. Differentiate between the traditional reduction technique and value analysis.
(b) A group of six jobs are to be processed through a two-step operation. The first operation involves leaning and the second involves painting . Determine a sequence that will minimize the total completion time for this group of jobs. Also, calculate the idle
times for both machines. 10 + 10
| Job | Processing Time (Hours) | |
| Work Center- 1 | Work Center 2 | |
| A | 20 | 27 |
| B | 16 | 30 |
| C | 43 | 51 |
| D | 60 | 12 |
| E | 35 | 28 |
| F | 42 | 24 |
(b) A local distributor for a national tyre company expects to sell approximately 9600 steel-belted radial tyres of a certain size and tread design next year. Annual carrying costs are Rs. 16 per tyre, and
ordering costs are Rs. 75. The distributor operates 288 days a Year.
(i) What is the EOQ ?
(ii) How many time per year does the store reorder ?
(iii) What is the length of an order cycle ? 10+10