MULTIPLE CHOICE QUESTIONS

UNIT-I
Topic-1
1.
Identify the organisation which was the first to adopt the concepts of assembly
line in its production system?
(a) General Electric (b) Ford Motors (c ) General Motors (d) Westinghouse
2.
Providing healthcare services to patients is an example for (a) job shop
production (b) batch manufacturing (c ) standardized service (d) Customised service
3.
Production policy where the products are produced well in advance and stored
in the warehouse from where they are distributed in accordance with customer orders
is known as (a) produce to stock policy (b) produce to order policy (c ) assemble to
order policy (d) custom to order policy.
Topic-2
1.
The value of exponential smoothing constant alpha () (a) is always 0.2 (b) is
always less than unity (c ) always lies between 0 and 1 (d) can take any positive value
2.
Which of the following charts provides an overall macro view of the movement
of components and sub-assemblies in the production process?
(a) Assembly chart (b) Process chart (c ) Gantt Chart (d) Flow chart
3.
Production of beer, which includes brewing, bottling, packaging and shipping,
is an example of a . . . . . . . . . process.
(a) Job shop (b) Batch (c ) Assemnly line (d) Continuous flow
4.
Which of the following systems is the most appropriate for a production
organisation which has very little scope for product variety and which produces in
huge volumes?
(a) process focussed system (b) product focussed batch system (c ) product focussed
production system (d) cellular manufacturing system
Topic-3
1.
Ingersoll manufactures a limited variety of horizontal compressors and a
customer selects from the available models. The production policy is an example of (a)
Varying workforce production (b) Standardized production (c ) Employee focussed
production (d) Customised production
Topic-4
1.
For which of the following industries is market proximity must?
(a) OEM Industry (b) Textile industry (c ) Hotels & hospitals (d) Call centre
2.
Which of the following is not an objective of facility location and layout
decisions?
(a) To set up a plant of the right size, right design, and at a place where all kinds of
production facilities are available (b) To serve the customer better (c ) To optimize the
cost of production (d) To use the best available technology.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

Topic-5
1.
What is the overall objective of 'facility layout decision' in a manufacturing
unit?
(a) To provide a smooth workflow of materials through the factory and to ensure better
operational efficiency (b) To give a pleasant look for the workers (c ) To arrange the
units of the plant according to vaastu (d) No wastage of space in layout.
2.
Which of the following products is likely to be assembled on an assembly line?
(a) Custom furniture (b) Beer (c ) Sugar (d) Television sets
UNIT-II
Topic-1
1.
Which of the following is used for identifying the total resources required for
meeting customers requirements?
(a) Capacity planning (b) Material requirement planning (c ) Master production
schedule (d) Inventory management
2.
The numeric difference of forecast demand and actual demand is called (a)
standard deviation (b) forecast error (c ) forecast variance (d) forecast noise
Topic-2
1.
A - G are processed on work station 1 and then works station 2. The time
required at each work station for each job is given in the table below. Use Johnson's rule
to sequence these jobs. According to Johnson's rule the sequence should be :Jobs
:ABCDEFG
Workstation-1: 9 8 7 6 1 2 4
Workstation-2: 6 5 7 3 2 6 7
(a) A-B-C-D-E-F-G (b) E-F-G-C-A-B-D (c ) E-F-G-D-C-B-A (d) E-D-B-A-F-C-G
Topic-3
1.
Listed below are certain reports, which are outputs of an MRP system. Identify
the odd one.
(a) Purchase commitment report (b) Capacity planning (c ) Safety stock levels (d)
Inventory level status
2.
Minimum amount of time that should be consumed before beginning an
activity is called (a) Expected start time (b) Earliest start time (c ) Latest start time (d)
Expected finish time
Topic-5
1.
MRP is a system in which the given MPS is incorporated to give required
amount of raw materials. Which of the following is an objective of an MRP system? (a)
To improve customer service (b) To reduce employee costs (c ) To improve maintenance
schedules (d) To improve the performance of the finance department
2.
Which of the following are true about a Bill of Materials (BoM)?
(i) Listing of all the sub-assemblies, intermediates that go into a parent assembly (ii) A
structure that defines how all of the dependent demand inventory items are combined

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

(iii) The hierarchial levels of phases of production that a product goes through on its
way to being completed (a) i and ii (b) ii and iii (c ) i and iii (d) i, ii and iii
UNIT-III
Topic-1
1.
Skills, knowledge and abilities that are required to satisfy the requirements of a
job are listed in (a) Job specification (b) Job function (c ) Performance appraisal form (d)
Job directory.
2.
On the basis of Hawthorne studies, Elton Mayo and his team concluded
that . . . . . . had an impact on employee productivity.
(a) physical work conditions (b) attention, importance and recognition (c ) job content
(d) fear of losing job
3.
Encouraging through praise, recognition and other intangibles is an example of
(a) Controlling (b) Motivating (c ) Training (d) Organising
4.
Which of the following is a prerequisite for empowerment of personnel?
(a) Job rotation (b) Job enrichment (c ) Job enlargement (d) All the above.
Topic-2
1.
In an assembly chart, the process of inspection is generally represented by a
(a) square (b) circle (c ) triangle (d) pentagon
2.
A small scale manufacturing unit had two machines and was staffed for one 8
hour shift for five days a week. During the last month, the unit had a downtime of 8
hours weekly, reducing the total hours available for production. What is the utilization
index value?
(a) 90% (b) 85% (c ) 80% (d) 75%
Topic-3
1.
Name the work measurement technique that analyzes work by taking a number
of observations, usually, at random, to see the relative frequency with which various
elemental activities take place.
(a) Standard data (b) Pre-determined motion times (c ) Time study (d) Work sampling

UNIT-IV
Topic-1
1.
Which of the following is not a function of materials management?
(a) Employee Control (b) Production control (c ) Materials handling (d) Inventory
control
Topic-2
1.
Which of the following is an aim of economic order quantity purchasing?
(a) Minimising the total cost (b) Minimising transport cost (c ) Minimising the storage
cost (d) Minimizing the ordering costs
Topic-3
1.
Which of the following are considered in calculating inventory costs?

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

(i) Holding costs (ii) Acquisition costs (iii) Ordering costs (iv) Stock out costs (a) i, ii and
iii (b) ii, iii and iv (c ) I, iii and iv (d) I, ii, iii and iv
Topic-4
1.
Which of the following is not an inventory classification method?
(a) ABC (b) FIFO (c ) FSND (d) VED
2.
The EOQ inventory model attempts to minimise (a) The number of items
ordered (b) The number of orders placed (c ) Total inventory costs (d) The safety stock
3.
In incremental approach of quantity discount, the marginal cost of unit
decreases whereas in all unit discount approach . . . . . . . . . . . decreases.
(a) total cost (b) ordering cost (c ) average unit cost (d) inspection costs
4.
Organisations maintain buffer stocks to face a situation where (a) Demand is
greater than expected (b) Supply is more than expected (c ) Demand is less than
expected (d) Supply matches demand
Topic-5
1.
ABC analysis is based upon the principle that (a) an item is critical if its usage is
high (b) There are usually a few critical items and several items, which are less critical
(c ) The safety stock (in terms of volume) should be higher for A items than for C items
(d) An items is critical if its unit price is high
2.
Which of the following is not a characteristic of the ABC inventory classification
system?
(a) It classifies inventory items by their total rupee value (b) The greater the rupee value
(weighted total rupee volume), the greater the control effort that should be allocated to
the item. (c ) Greater allocation of resources for voluminous inventory (d) Greater
allocation of resources to more valuable and less voluminous inventory.
Item demand (Units) Item Cost (Rs.) Annual Usage
1
400
50
2
510
40
3
10
600
4
11
500
5
0.50
1,000
6
0.25
1,500
Topic-6
1.
Which one of the following is not a supply-chain strategy?
(a) Negotiation with several suppliers (b) Short term relationships with a few suppliers
(c ) Vertical integration (d) Virtual companies
Topic-7
1.
The task of a purchasing department in an organisation include
(a) processing requisition for materials and supplies (b) Locating suppliers or vendors
(c ) Negotiating purchasing contracts (d) All the above.
2.
Which of the following is not a responsibility of the purchase department?
(a) Vendor development (b) Selection of Suppliers (c ) Contract negotiation and
communication interface (d) Bidding.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

Topic-8
1.
Which of the following is true for a JIT production system?
(a) Producing what is needed when needed and no more (b) No room for surplus or
safety stock (c ) Doing it right the first time (d) All the above

UNIT-V
Topic-1
1.
Which of the following is not an objective of remedial maintenance?
(a) To minimise production losses by getting the equipment back into operation at the
earliest (b) To replace a machine when it first malfunctions (c ) To perform appropriate
repairs at appropriate levels (d) To minimise investment in spare parts
2
Which of the following is a prevention cost? (a) Customer complaints (b) Scrap
(c ) Quality training (d) Reliability testing
Topic-2
1.
Which of the following is not associated with house keeping?
(a) A major cause of machine failure is collection of dift on machines (b) Cleaning
machines should be part of preventive maintenance (c ) Cleanliness creates a more
attractive and pleasant work atmosphere (d) None of the above
Topic-4
1.
Which of the following is a quality function?
(a) Performance (b) Features (c ) Reliability and durability (d) All the above.
Topic-7
1. ABC Company manufactures cheese and each packet of cheese should weigh 32 gms.
The Quality supervisor wants to develop process control charts. He takes five samples
of six boxes and weighs them. The upper and lower control limits for the x-bar chart are
34.34 and 33.86 respectively. The upper and lower control limits for the range are 1.00
and 0.00 respectively. Based on the following data, select the statement that best
describes the situation :Sample
Mean
Range
1
33.9
1
2
34.1
0.8
3
34.0
1.2
4
34.2
0.3
5
34.0
0.3
(a) Sample-1 is outside the control limits. Further investigation is warranted (b)
Sample-3 is outside the control limits. Further investigation is warranted (c ) Samples 1
& 3 are outside the control limits. Further investigation is warranted (d) All samples are
fine. Process is in control.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

2. Companies use SPC tools for quality control. Which of the following is not an SPC
tool?
(a) Control chart (b) Pareto chart (c ) Acceptance plan (d) R - chart

(2 MARK QUESTIONS)
Unit-I (2 MARK QNS)
Topic-1
1.
What is meant by production?
2.
What is the difference between production and manufacturing?
3.
What is the nature of production?
4.
What is productivity?
Topic-2
1.
What are the elements of a production system?
2.
How production systems are classified?
3.
Explain job production?
4.
Explain batch production?
5.
Explain flow production?
6.
Explain CAD & CAM production?
7.
Explain Assembly line production?
8.
Explain Mass production?
9.
Explain Mass customization production?
10.
Explain Cell production?
Topic-3
1.
What skills are required for production manager?
Topic-4
1.
What are needs for locating plant?
2.
What are the problems of plant location?
3.
What are the advantages of urban location?
Topic-5
1.
What is plant layout?
2.
Explain plant layout planning?
3.
What are the types of plant layout?
4.
What is process layout?
5.
What is product layout?
6.
What is fixed position layout?
7.
What is cellular layout?
8.
What is group technology layout?
9.
What is flexible manager layout?

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

10.
11.
12.
13.
14.
15.

What is computer integration manager layout?

What is hybrid layout?
What is service facility layout?
What is CRAFT?
What is ALDEP?
What is CORELAP?

Unit-II (2 MARK QNS)

Topic-1
1.
What is process planning?
2.
What are the factors influencing process selection?
3.
What is capacity planning?
4.
How capacity is measured in following industries?
1. Automobile 4. Nuclear Power
2. Steel
5. Airline
3. Beer
6. Hospital
5.
How capacity utilization is measured?
6.
What are problems arising from low capacity utilization?
7.
What are the benefits of low capacity utilization?
8.
What is forecast?
9.
What is the use of forecast?
10.
Why forecast is done?
11.
What are the various types of forecast?
12.
What is the difference between forecasting and prediction?
13.
What are the needs for demand forecasting?
14.
What are the difference between long term and short term forecast?
15.
What are the classifications of forecasting methods?
16.
What is judgemental technique?
17.
What is opinion survey method?
18.
What is executive opinion method?
19.
What is customer and distributor survey?
20.
What is market trial?
21.
What is market research?
22.
What is meant by Time Series Analysis?
23.
What is meant by trend analysis?
24.
What is cyclical fluctuation?
25.
What is seasonal variation?
26.
What is meant by irregular variation?
27.
Explain least square method of forecasting?
28.
Explain moving average method?
29.
Explain weighted moving average method for forecasting?
30.
Explain exponential smoothing method?
31.
What is forecast error?

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

32.

What is meant by mean absolute deviation?

Topic-2
1.
What is plant capacity?
2.
What is dispatching?
Topic-3
1.
What is routing?
Topic-4
1.
What is scheduling?
2.
The processing time and due dates for 4 jobs are as follows:
Job as arrived
Processing Time (in days)
Due date

:
:
:

A
3
4

B
5
7

C
4
6

D
2
5

Generate job sequence by earliest due date rule?

3.

The processing time and due dates for 4 jobs are as follows:

Job as arrived
Processing Time (in days)
Due dates

:
:
:

A
5
7

B
4
6

C
2
5

D
3
4

Generate job sequence by longest processing time rule?

4.

The processing time and due dates for 4 jobs are as follows:

Job as arrived
Processing Time (in days)
Due dates

:
:
:

A
4
6

B
2
5

C
3
4

D
5
7

Generate job sequence by shortest processing time rule?

5.

The processing time and due dates for 4 jobs are as follows:

Job as arrived
Processing Time (in days)
Due dates

:
:
:

A
2
5

B
3
4

C
5
7

D
4
6

Generate job sequence by first in first serve rule?

6.

The processing time and due dates for 4 jobs are as follows:

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

Job as arrived
Processing Time (in days)
Due dates

:
:
:

A
3
4

B
5
7

C
4
6

D
2
5

Generate job sequence by slack time remaining rule?

Unit-III (2 MARK QNS)

Topic-1
1.
What is man machine chart?
Topic-2
1.
What is Work study?
2.
What is method study?
1.
What is motion study?
2.
What is work study?
3.
What is time study?
4.
If the standard time is 8 minutes and the allowances are 20%, what is normal
time?
Topic-3
1.
What is work measurement?
2.
What is time study?
Topic-4
1. What is simplification?
Topic-5
1.
What are allowances?
2.
What is ergonomics?
Unit-IV(2 MARK QNS)
Topic-1
1.
What is meant by inventory?
Topic-2
1.
What are the types of inventory?
2.
What are the costs of inventory?
Topic-7
1.
What is JIT?
2.
What are the objectives of JIT?
3.
What are the elements of JIT?
4.
What are the effects of JIT?
Topic-8

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

5.
6.

What is Kanban?
What is material handling?

Unit-V (2 MARK QNS)

Topic-1
1.
What is the objective of maintenance?
2.
Why should equipment fail?
Topic-4
1.
What is quality?
2.
Why is quality important?
3.
How quality is measured?
Topic-5
1.
What is inspection?
2.
What is quality control?
3.
What are the objectives of inspection?
Topic-6
1.
What are the quality control techniques?
2.
What is process capability?
3.
What are tolerances?
4.
What is sampling?
Topic-7
1.
What are control charts?
2.
What is acceptable quality control?
3.
How is sampling plan chosen?
Topic-8
1.
What is Poka yoke?
2.
What is Kaizen?
3.
What is Business Process Re-engineering (BPR)?
4.
What is lean manufacturing?
5.
What is KANBAN?
6.
What is andon?
7.
What is meant by automation?
8.
What is meant by Yo-i-don?
9.
What are the various Japanese manufacturing systems?

Unit-I (6 MARK QNS)

Topic-1

Dr. M KOTEESWARAN

(6 MARK QUESTIONS)

MBA II SEM

POM Question Bank

10

1.

What are the objectives of Production Management?

Topic-2
1
What are the functions of a Production Manager?
2.
Differentiate job and flow production?
3.
What are the benefits of cell production?
Topic-3
1.
What are the responsibilities of Production Manager?
2.
What are the considerations of a plant?
3.
What factors are examined in deciding a process?
4.
What kinds of decisions are made in Production Management? Explain each?
5.
What are the different decision areas in Operations Management?
6.
What are the trends in Production Management?
7.
Explain with a diagram a Production System model.
Topic-4
1.
What are factors affecting plant location?
2.
What are the advantage and disadvantage for locating plant in urban?
Topic-5
1.
What are the objectives of plant layout?
2.
What are the principles of plant layout?
3.
What factors influence decision of Plant layout?
Unit-I (6 MARK QNS. )
1.
Find productivity in the following cases:
a.
12 workers produce in a shift of 8 hours 14,400 meters of cloth.
b.
A batch of 5 slotting machines produce 21,000 pieces in a shift of 8 hours
with 3 men.
c.
20,000 note books are produced in a week of 5 working days.10 persons
used 5 machines in one 8 hour shift to produce this.
2.
Each worker has paid Rs.200/- per day. Total material cost is Rs.10 lacs.
The machine cost Rs.2 lacs. Overhead cost is Rs.3 lacs. Determine (a) Labour
(b) Material (c) Machine (d) Overall productivity and (e) Capital productivity, if
note books are sold at Rs.80/- per piece.
3.
A toy plant has a design capacity for producing 6000 toys a day, effective capacity
of 5,000 toys, actual output of 4,000 toys a day. Find the efficiency of the plant
and utilization.
4.
A company is purchasing an item at Rs.4.20 each. If it were to produce, an annual
fixed cost will be Rs.4,800/-, the variable cost per unit is Rs.2.80 and fixed
overhead is Rs.1,080/-. The demand for the item is given below. Decide whether
the company should produce the item and what should be the breakeven
volume.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

11

Demand
2000
3000
4000
5000
6000
5.

Probability
0.05
0.10
0.30
0.40
0.15

A furniture manufacturer has workshops at three locations A, B and C. The

information provided in the table was gathered from these locations.
Location
A
B
C

Fixed Costs (Rs.)

50,000
90,000
140000

Variable Costs (Rs.)

135
120
110

The furniture manufacturer is planning to produce 3000 units/year of a piece of

furniture that will be sold at around Rs.300 per unit. On the basis of the
information provided, identify the location that would be the most economical
for the furniture manufacturer.
6.

Genesis Computers, a maker of personal computers, purchases CPU cabinets for

Rs.1000 per unit. Since competition is increased, the company is looking at ways
to reduce costs. To reduce costs, the company decides to make the cabinets itself.
The variable costs involved in making cabinets include materials cost of
Rs.300/unit, labour cost of Rs.200 per unit, and variable overhead cost of Rs.200
per unit. The fixed costs involved are Rs.5,00,000/-. The Company is expecting a
demand of 5000 units for the coming year. On the basis of the information
provided, determine whether the company should adopt the make policy or buy
policy.

7.

Alternative Solution Ltd., has developed an environmentally friendly product for

which it expects significant demand in the near future. But the existing facility
cannot meet the forecasted demand. So the company conducts a survey of three
different locations. The company identifies some critical factors for evaluating
the suitability of the locations. The table given below lists the factors considered,
the corresponding weightages assigned to them, and the grade for each location.
Identify the best location for establishing a new facility.

Sl.No.

Factor

Transportation cost

Dr. M KOTEESWARAN

MBA II SEM

Factor
Location rating
R A
B
C
a
t
i
n
g
4
8
5
6

POM Question Bank

12

2
3
4
5
6
7

Labor availability
Supplier availability
Climatic conditions
Government incentives for the production of
environmentally friendly products
Labor cost
Cost of real estate

5
6
3
7

5
5
7
4

7
4
6
6

8
6
5
7

4
6

6
6

5
7

5
6

Unit-II (6 MARK QNS)

Topic-1
1.
What are the important decisions in process planning?
2.
What considerations are required in process selection?
3.
What factors influence capacity planning?
4.
What are steps involved in capacity planning?
5.
Why should capacity utilization be less than 100%?
Topic-2
1.
What is make or buy?
2.
What factors influence in make or buy decisions?
Unit-II (6 MARK QNS)
1.
There are two alternatives to meet the demand of a particular product. At what
annual volume the company decide to cross over from Process-A to Process-B.
Description

Process-A

Process-B
(in Rs.)

Fixed cost / year

Variable cost / unit
2.

3 lac
70

A, B and C have the cost structures as given below. The product has to sell at
Rs.3250/unit. The expected volume is 2750/year. Decide suitable site.

Description
Fixed cost/year
Variable cost/unit
3.

1 lac
75

SITE-A
65 lacs
1200

SITE-B
(in Rupees)
75 lacs
560

SITE-C
55 lacs
4250

A, B, C and D have the cost structures as given below. At what volume B will be
preferred to.
Description
Fixed cost/year
Variable cost/unit

Dr. M KOTEESWARAN

SITE-A
80,000
32

MBA II SEM

SITE-B
SITE-C
(in Rupees)
70,000
60,000
35
40

POM Question Bank

SITE-D
92,000
38

13

4.

The processing time and due dates for 4 jobs are given below. Find the average
delay time.
Jobs
A
B
C
D

5.

Processing Time
3
5
4
2

Due Date
4
7
6
5

V S Rao (Rao) is the supervisor of Choudhary Iron Works, which manufactures

customised windows for households. Five customers submitted orders at the
beginning of the week. Specific scheduling data is given below :

Jobs(In order of arrival)

A
B
C
D
E

Processing Time
3
4
2
6
1

(Days)

Due Date(Days hence)

5
6
7
9
2

5.A.

Rao decides to use Earliest Due Date to sequence the jobs. Which of the
following
orders
will
be
followed
to
process
the
jobs?
(a) A-B-C-D-E (b) E-C-A-B-D (c) E-A-B-C-D (d) D-C-B-A-E

5.B.

The average completion time for the

(a) 3.2 days (b) 7.8 days (c) 5.8 days (d) 7.2 days

5.C.
6.

The critical ratio for Job A is : (a) 1.67 (b) 0.50 (c ) 0.60 (d) 0.67
In a steel factory, six jobs (A, B, C, D, E and F) require processing at two different
work stations (kiln and rollers). Determine the sequence that minimizes the total
elapsed time for the six jobs. The following table lists the processing time
required by each job at both the workstations.

sequence,

E-A-B-C-D

is

Processing Time for Six Job on two Workstations in Hrs.

Workstation 1 (Klin)
Workstation 2 (Rollers)

7.

A
3
3

B
6
4

C
5
7

D
8
5

E
2
6

F
1
8

In a factory, eight jobs are performed on two machines (A and B). The time
required for each job on each machine is given below. On the basis of this
information, identify the optimal sequence and calculate the in and out time for
each job on each machine and the total elapsed time.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

14

Job
1
2
3
4
5
6
7
8

8.

Machine-A
4
3
6
2
7
10
8
3

Machine-B
8
2
4
5
3
1
5
7

On the basis of the following bill of materials file, identify the number of CDs,
Ds, Gs and Hs needed to make 10 As.
Bill of Material Files for Product-A

4
2

9.

G
G

C
B

Consider the following problem in single machine scheduling with independent

jobs.

Job j
tj
dj

1
5
10

Dr. M KOTEESWARAN

2
12
16

3
8
11

MBA II SEM

4
10
16

5
3
6

6
15
25

POM Question Bank

7
8
12

8
6
14

15

wj

Obtain the optimal schedule for each of the following performance measures :(a)
(b)
(c)
10.

To minimize mean flow time.

To minimize the maximum lateness.
To minimize weighted mean flow time.
Consider the following single machine scheduling problem.

Job-j
1
Processing
time (tj) 20
(hrs.)

10

Find the optimal sequence which will minimize the mean flow time and also obtain
the minimum mean flow time.
11.

Consider the following single machine scheduling problem with weights.

Job-j
1
Processing time
15
(tj) (hrs.)
Weight (wj)
1

14

Determine the sequence which will minimize the weighted mean flow time of the
above problem. Also find the weighted mean flow time.
12.

Consider the following single machine scheduling problem.

Job j
Processing time (tj)
Due date d j

1
8
14

2
9
12

3
7
10

4
8
14

5
10
20

6
14
28

Determine the sequence which will minimize the maximum lateness (Lmax). Also
determine the Lmax with respect to the optimal sequence.
13.

Consider the following single machine scheduling problem.

Job j
1
2
3
4
tj
10
7
10
8
dj
15
20
25
22
Find the optimal sequence of jobs to minimize mean tardiness using
bound technique.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

5
15
30
branch and

16

14.

Consider the following single machine scheduling problem.

Job-j
1
Processing time
5
(tj)
Due date (dj)
12

10

14

12

20

Determine the optimal sequence which will minimize the mean tardiness using
branch and bound algorithm.
15.

Consider the following problem in single machine scheduling with independent

jobs.

16.
Job-j
tj
dj

1
5
10

2
12
16

3
8
11

4
10
16

5
3
6

Find the optimal sequence which minimizes the mean tardiness.

17.

Consider the following n jobs parallel identical machines problem.

Job j
1
Processing Time
4
tj

Find the schedule which will minimize the mean flow time, if the number of parallel
identical machines is 2.
Unit-IV (6 MARK QNS)
Topic-1
1.
Explain in detail about inventory and its costs?
Topic-3
1.
Explain EOQ, its importance and usefulness?
Topic-4
1.
Explain classification and codification of stock?
Topic-5
1.
Explain with a diagram Supply Chain Management?
Topic-6
1.
Explain the role of Purchase Manager?

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

17

Topic-7
1.
What is JIT? Explain?
2.
What is acceptable quality control?
Topic-9
1.
What are the principles of material handling?
3.
How material handling equipment are classified?
4.
How material handling & equipment improve productivity?
Unit-IV (6 MARK QNS)
1.
ABC Inc. requires 1000 units of produce 'A' per annum. The firm purchases each
unit of A for Rs.100 and spends Rs.500 on each order. The inventory carrying
cost of item A is 25% of the unit price. Determine the EOQ and total annual cost
associated with the item 'A'.
2.
A manufacturer requires 1000 units of Item A per annum. The ordering cost is
Rs.100/- per order and the carrying cost is 40% of the unit cost. If the
manufacturer orders less than 100 units at a time, the per unit cost is Rs.80. The
supplier offers a discount if the order size is more than 100 units. If the
manufacturer avails of the discount, the cost per unit is Rs.70. Should the
manufacturer avail of the discount? Justify your answer.
3.

Sweet Ltd., a bakery, uses 200 tins of baking powder per year for making cakes.
The purchase price is Rs.20 per tin. The cost associated with placing an order is
Rs.100 and withholding stock (on an annual basis) is 25% of the purchase cost
per unit. Assuming that the basic conditions of the EOQ model apply, find out:
a. the economic order quantity, and
b. the total annual cost of ordering, carrying and purchasing baking powder.

4.

A car dealer stocks spark plugs for a particular model. The annual demand for
the spark plug is 10,000 units. The dealers shop is open around 260 days a year.
The leadtime is 10 days. Determine the reorder level.

5.

Sangeet Ltd., is a dealer in car accessories. It stocks stereos of many models. The
annual demand for stereos of a particular model is 1,500 units. The company
runs for 300 days in a year. The lead time is 8 days. Determine the reorder point
for that model.

6.

Beta industry estimates that it will sell 24,000 units of its product for the
forthcoming year. The ordering cost is Rs.150 per order and the carrying cost per
unit per year is 20% of the purchase price per unit, which is Rs.50.
Find (a) Economic order size.
(b) Number of orders per year.
(c) Time between successive orders.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

18

7.

Ram Industry needs 5400 units/year of a bought out component which will be
used in its main product. The ordering cost is Rs.250 per order and the carrying
cost per unit per year is Rs.30.
Find (a) Economic order quantity.
(b) Number of orders per year.
(c) Time between successive orders.

8.

Alpha Industry needs 15,000 units/year of a bought out component which will
be used in its main product. The ordering cost is Rs.125 per order and the carrying
cost per unit per year is 20% of the purchase price per unit which is Rs.75.
Find (a) Economic order quantity.
(b) Number of orders per year.
(c) Time between successive orders.

9.

The demand for an item is 6000 per year. Its production rate is 1000 per month.
The carrying cost is Rs.50/unit/year and the set up cost is Rs.2000 per set up. The
shortage cost is Rs.1000 per unit per year. Find various parameters of the inventory
system.

10.

The demand for an item is 24,000 per year. Its production rate is 4000 per month.
The carrying cost is Re.0.25/unit/month and the set up cost is Rs.800 per set up.
The shortage cost is Rs.15 per unit per year. Find various parameters of the
inventory system.

Unit III (6 MARK QNS)

Topic-1
1.
What are the objectives of routing?
2.
What human factors are considered in job design?
3.
What are the advantages and disadvantages of specialization?
4.
Write a note on ergonomics?
5.
What is anthropometrics?
Topic-2
1.
Why routing is important in Operations Management?
2.
Explain loading & unloading?
3.
What are the steps in loading?
4.
Explain the process of Work Study?
5.
What are the benefits of Work Study?
Topic-3
1.
What are the priority rules in dispatching?
Topic-5

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

19

1.

How are elements classified according to the nature of the job?

UNIT III (6 MARK QNS)

1.
The frequency distribution of times observing time study engineering is given
below:
Minutes
Frequency
20
15
21
10
22
10
23
5
The performance rating is 110%. The allowance account for 15%. Decide the
standard time.
2.

A job has 4 work elements on a typical day in 2 shifts of 420 minutes each. 225
units are produced. The allowance is 12%. The frequency of observation and the
performance rating for each work element is given below. Find the standard time
in the job.
Work element
Frequency of observation Performance rating in %
1
50
90
2
90
150
3
75
100
4
85
115

3.

A time study of an assembly line worker in a car plant produced the following
results: Cycle time is 4 minutes; worker performance rating is 85%. The average
allowance for the activity is 5% of the time available for the worker to actually
perform the task. Calculate the standard time.

4.

Identify the number of units of E, G and D that must be purchased for making
100 units of A. Use the information provided by the bills of material (shown in
the figure given below). The number beside each unit indicates the quantity
required to make one higher level item.
Bill of Materials File

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

20

G
5.

After a six hour work measurement study of workers, the following observations
were made. The time taken by a worker for making one unit of a product was 10
minutes. The workers were given a performance rating of 110% and a total
allowance of 20% of the standard time. Calculate the total number of units a
normal worker can make in 2 hours.

Unit V (6 MARK QNS)

Topic-1
1.
Explain the need for replacement?
Topic-2
1.
Explain bath tub curve phenomena?
2.
What is meant by maintenance cost balance?
3.
What are the advantages of good maintenance?
4.
What are the different types of maintenance?
Topic-4
1.
What is meant by quality? Explain methods of quality control?
2.
Explain the types of data in quality control and also the charts used?
3.
Explain the significance of six sigma?
4.
Explain the concept of operating characteristic curve and the producers and
consumers risk?
5.
Explain the fundamental factors affecting quality?
Topic-8
1.
Explain with examples Poka Yoke?
2.
Explain the principles of Kaizen?
3.
Explain in detail the steps in Business Process Re-engineering?
4.
Explain the objectives of lean manufacturing? Discuss the steps involved in lean
manufacturing?
Topic-9
1.
What is Kanban? Explain?
Topic-10
1.
What is Total Quality Management (TQM)?

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

21

(10 MARK QUESTIONS)

UNIT-I (10 MARK QNS)

1.
Ramjal & Co., works for 6 days a week, 2 shifts of 8 hours everyday employing 10
persons per shift. It produces 150 motors per week. Standard hours per unit of
production is 4. 12 mandays were lost by absenteeism of workers. 108 hours
were lost because of power cut. Calculate (a) Absenteeism percentage (b) Labour
utilization percentage (c) Production efficiency of labour (d) Overall productivity
of labour in terms of units produced per week per employee.
2.

A manufacturer of plastic bottles uses different sizes of bottle caps for its 1,000 ml
and 200 ml bottles. The Company Manager must decide whether to make or buy
these bottle caps. Capacity is available for manufacturing bottle caps; this
capacity cannot be used for any other purpose.
The direct labor cost is Rs.15/- per labour hour, and the variable portion of
overhead is Rs.10/- per labor hour. The fixed overhead of the available capacity
has been estimated to be Rs.3,000/- per year.
Particulars
Quantity required (units/year)
Material cost (Rs./unit)
Direct Labour Hours
Purchase price/unit

3.

1000 ml bottle caps (X)

20,000
0.075
300
0.50

20 ml bottle caps (Y)

15,000
0.035
250
0.20

The Ganga Chemical Company has been issued with a notice to shift from its
present location in Agra city on environmental considerations. The company
engages 300 semi-skilled and skilled workers, 200 engineers and managerial
personnel. The process requires large amount of water, power and land. A large
amount of materials has to be transported in and finished products transported
out of the company. The process involves high fire and explosion hazards. The
company has located 3 sites out of Agra X, Y and Z. The cost of operation at
each site is given below :Description
Annual fixed cost
Variable cost/Kg.

X
(All in Rupees)
30 lacs
0.10

27 lacs
0.14

22 lacs
0.22

The company produced 100,000 tons of chemical powder this year. The sale is
expected to increase by 10% per year.
Questions :a.
What are the major factors that should be considered in choosing one of the 3 sites?
b.
How will you rate or weigh the factors by importance? Why?

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

22

c.

Based on the above information, which location will you recommend for shifting
the plant from Agra?

4.
5.
6.
7.
8.

Write an essay on system concept of production with suitable diagrams.

Explain Production and Productivity. How productivity can be improved?
Distinguish between different types of production.
Explain the functions of production management.
Write short notes on (a) Make or Buy decision (b) Break even analysis (c ) Plant
location

UNIT-II (10 MARK QNS)

1.
What are the factors affecting the choice of suitable site for location of the plant?
Explain different methods of evaluating plant location?
2.

Explain the factors influencing the location for the following products with proper
justification?
(a) Textile (b) Steel (c ) Cement

3.

Explain the factors influencing the location for the following products with proper
justification?
(a) Paint (b) Aluminium (c ) Sugar

4.

A, B and C are locations being considered for plant. The product is sold at
Rs.145/-. The cost data and demand projections are given below. Find which city
should be selected for the estimated volume. What is the breakeven volume for the
selected city?
CITY-A
CITY-B
CITY-C
Description
(in Rupees)
Fixed cost/year
3 lacs
2 lacs
75,000
Variable cost/unit
30
45
70
Estimated
4500
5500
6500
demand
Probability
0.1
0.3
0.6

5.

A new facility has to supply raw materials to the existing 5 facilities, whose
coordinates and quantity in tones to be transported are given below. Find the
optimal location?
Existing
Existing
Existing
Existing
Existing
Description
Facility-1
Facility-2
Facility-3
Facility-4
Facility-5
Quantity
required for
1000
980
1500
2000
1750
transportation
Co-ordinators
(30,20)
(40,50)
(30,30)
(15,30)
(20,40)

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

23

6.

S K Sharma, the owner of SK Electronics, made the following monthly forecasts

for the demand for electronic appliances. He used the exponential method to
determine the level of inventory that he should maintain. The actual demand for
the last eight months and the forecasted demand are shown in the table below.
Sharma now wants to check the accuracy of the forecasts made. Use the tracking
signal method to comment on the forecast accuracy.
Month
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG

7.

Actual Demand
200
220
185
210
195
240
225
220

Forecast Demand
190
200
200
220
210
225
210
210

Universal Enterprise Ltd., a producer for generators, needs to identify the

demand of generators for the month of August. The demand data for January to
July is given in the following table :Month
JAN
FEB
MAR
APR
MAY
JUN
JUL

Demand (Units)
265
280
245
260
275
300
285

Use three months moving average to forecast the demand for the month of August.
8.

The table given below shows the due dates and the process time for six jobs.
Develop the sequence in which these jobs should be performed. Generate a job
sequence using the following rules :a.
b.
c.
d.
e.

Earliest due date (EDD)

Longest processing time (LPT)
Shortest processing time (SPT)
First in first serve (FIFS)
Slack time remaining (STR)

Job (In order of arrival)

J1
J2
J3

Dr. M KOTEESWARAN

Processing Times (days)

4
3
5

MBA II SEM

Due date (Days hence)

5
4
8

POM Question Bank

24

J4
J5
J6

9.

1
2
6

6
3
9

A factory received 6 job orders, which required processing on three machines

M1, M2 and M3. The factory operates for 40 hours a week. The time required by
each job on the three machines is given below. On the basis of the given
information provided, determine whether the company needs to work overtime
to finish all the tasks in a weeks time.
Jobs
M1
M2
M3

10.

J1
4
3
6

J2
5
4
7

J3
6
2
5

J4
2
1
6

J5
4
4
8

J6
7
5
9

Bake & Take Bakery specializes in making deliveries of varieties of chocolate

cakes. Given the available resources, it is not possible to make two cakes
simultaneously. The bakery treats the customers as and when they sign in. but
due to the Christmas season and New Year, the orders have increased. On a
particular day, the following are the movements of the customers:
Customer

Arrival

Making Time (hours)

Due Time (Hours from now)

A
B
C
D
E

9 AM
11 AM
1 PM
3 PM
5 PM

4
3
5
1
2

6
4
8
2
3

Find out the order in which these customers are to be served by considering the
following :a.Earliest Due Time
b.Longest Process Time
c. First In First Serve
11.

A shop has eight orders to be processed sequentially through three work centres,
X, Y and Z. Using the Johnsons rule, develop job sequence that will minimize
the completion time over all the shop orders. Assume that each job must be
finished in the same sequence in which it was started. The following table shows
the times in hours required at various work centres.
Job No.
X
Y
Z

M
9
5
8

Dr. M KOTEESWARAN

N
8
3
9

O
10
3
8

MBA II SEM

P
4
8
8

Q
10
6
10

R
5
5
9

S
2
7
8

POM Question Bank

T
2
6
8

25

12.

Blakemans Supply stocks three-horsepower motors.

typical weeks is :-

Weekly demand for 12

Week

Demand for 3-hp Week

Demand for 3-hp
Motor
Motor
42
20
48
9
43
17
49
4
44
12
50
6
45
14
51
5
46
8
52
4
47
10
53
3
(a) Calculate a weighted moving average forecast for weeks 54 and 55 using a
three-period model with the most recent periods demand weighted three times
as heavily as each of the previous two periods demands. After forecasting
period 54, actual demand was 6 motors for the period.
(b) Examining the data visually, what would you suggest as a possible alternative to
the weighted moving average model? Why?
13.

A firm producing Hand trolley has the following master production schedule
(MPS).

Week
Demand

1
200

2
-

3
-

4
240

5
-

6
240

7
-

8
220

Each hand trolley has a bin, two wheel assemblies, two handle bars and a
mounting base. Each wheel assembly has a wheel and two bearings. Order
quantities, lead times and inventories on hand at the beginning of period 1 are
shown below :-

Part
Hand Trolley
Bin
Wheel Assemblies
Handle bars
Mounting base
Wheel
Bearing

Order Quantity
350
400
800
850
250
600
1500

Lead Time (week)

1
2
2
2
1
2
2

Inventory on Hand
220
250
120
105
250
300
200

A shipment of 800 wheel assemblies is already scheduled to be received at the

beginning of week. Also, another shipment of 250 mounting base is scheduled to
be received at the beginning of week 3. Complete the material requirements plan
for the Bin, Wheel assemblies, Handle bars, Mounting base, Wheel and Bearing

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

26

and show what quantities of orders must be released and when they must be
released in order to satisfy the MPS.
14.

Consider the manufacture of a toy.

The master production schedule to
manufacture the toy is given in the following table.

Master Production Schedule

Week
1
Demand 200

2
-

3
100

4
175

5
300

6
200

7
-

8
250

The Bill of Materials Structure is given in the following figure.

A

C
B

D
Bill of Materials Structure

The details of Bill of Materials alongwith economic order quantity and stock on
hand for the final product and sub-assemblies are shown in the following table.

Details of Bill of Materials

Part Required

Order quantity

No. of Units

Lead

A
B
C
D
E

350
450
400
375
400

1
1
1
1
1

2
1
1
1
2

Time Stock on Hand

(week)
200
400
375
250
425

Complete the material requirements plan for the main product A as well as for the
sub-assemblies B, C, D and E.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

27

15.

Given the following Product structure, BOM, MPS and inventory status, develop
MRP tables for all items using EOQ method.
A

C
B

Product Structure
Bill of Materials
Item
Number of Units
Required
A
1
B
1
C
1
D
1
E
1

Initial Stock on Lead

Hand
Time
125
1
20
2
30
1
50
1
100
1

Master Production Schedule

Month
1
Projected
Requirement
16.

Cc

Co
(Rs.)

(Rs.)

5
6
4
3
8

1000
1500
1800
1300
2000

100

80

150

200

A company manufactures Iron Box. The MPS of the final assembly is as shown
below.

Month
Projected
Requirement

3500

3000

4500

1000

4000

5500

The initial stock on hand is 1150 units. The carrying cost is Rs.2.5 per unit/month
and the lead time is one month. The ordering cost per order is Rs.6000. Develop
an EOQ solution.
17.

Consider the manufacture of a toy.

The master production schedule to
manufacture the toy is given in the following table.

Master Production Schedule

Week
1
2
Demand 200
-

3
100

4
175

5
300

6
200

7
-

8
250

The Bill of Materials Structure is given in the following figure.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

28

C
B

Bill of Materials Structure

The details of Bill of Materials alongwith economic order quantity and stock on
hand for the final product and sub-assemblies are shown in the following table.
Details of Bill of Materials
Part Required
Order quantity
A
B
C
D
E

18.

No. of Units

Lead

Time Stock on Hand

(week)
350
1
2
200
450
1
1
400
400
1
1
375
375
1
1
250
400
1
2
425
Complete the material requirements plan for the main product A as well as for the
sub-assemblies B, C, D and E.
Given the following Product structure, BOM, MPS and inventory status, develop
MRP tables for all items using EOQ method.
A
C
B

Product Structure

Bill of Materials
Item
Number of Units
Required
A
1
B
1
C
1
D
1
E
1

Dr. M KOTEESWARAN

Initial Stock on Lead

Hand
Time
125
1
20
2
30
1
50
1
100
1

MBA II SEM

Cc

Co
(Rs.)

5
6
4
3
8

POM Question Bank

(Rs.)
1000
1500
1800
1300
2000

29

Master Production Schedule

Month
1
2
3
4
5
6
Projected
100
80
150
200
Requirement
19.
A company manufactures Iron Box. The MPS of the final assembly is as shown
below.
Month
1
2
3
4
5
6
7
8
Projected
3500
3000
4500
1000
4000
5500
Requirement
The initial stock on hand is 1150 units. The carrying cost is Rs.2.5 per unit/month
and the lead time is one month. The ordering cost per order is Rs.6000. Develop
an EOQ solution.
20.

A consulting company is under contract to carry out six projects, all with
deadlines assured in days from now. The consultants are a small group and they
work together on each project, so that the project will be started and completed
sequentially. Under the terms of contract, the consultants will receive Rs.28,000
for each project completed on time. But they will incur Rs.45,000 as penalties for
each project completed late. Each project has an associated duration, which is the
anticipated number of days required to carry out the project as shown below.
How should the projects be sequenced in order to maximize net revenues?

Project ID
Duration (tj)
Deadlines (dj )

1
3
7

2
5
11

3
7
28

4
9
20

5
10
11

6
9
16

21.
Consider the following 2 machines and 6 jobs for flow shop problem.
Job
Machine - 1
Machine 2
1
5
7
2
10
8
3
8
13
4
9
7
5
6
11
6
12
10
Obtain the optimal schedule and the corresponding makespan for the above problem.
22.

Job
1
2
3

Consider the following 2 machines and 5 jobs flow shop scheduling problem.
Using Johnsons algorithm, obtain the optimal sequence which will minimize the
makespan.
Machine - 1
Number 2
7
8
1
4
15
12

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

30

4
5
23.

Job
1
2
3
4
5
24.
Job
1
2
3
4
5

8
11

5
6

Consider the following 3 machines and 5 jobs flow shop problem. Check whether
Johnsons rule can be extended to this problem. If so, what is the optimal schedule
and the corresponding makespan?
Machine-1
Machine-2
Machine-3
11
10
12
13
8
20
15
6
15
12
7
19
20
9
7
Consider the following 3 machines and 5 jobs flow shop problem.
Processing Time
M/c-1
M/c-2
M/c-3
7
4
3
9
5
8
5
1
7
6
2
5
10
3
4

Check whether Johnsons rule can be extended to this problem. If so, find the optimal
schedule and the corresponding maespan.
25.
Job
1
2
3
4

Consider the following flow shop problem.

Machine-1
10
8
12
15

Machine-2
15
10
7
20

Machine-3
23
7
10
6

Find the optimal schedule for the above flow shop problem using branch and
bound technique. Also determine the corresponding makespan.

26.
Job
1
2
3

Consider the following flow shop scheduling problem :

Processing Time
M/c-1
4
12
8

Dr. M KOTEESWARAN

M/c-2
5
2
10

MBA II SEM

M/c-3
11
6
14

POM Question Bank

31

11

11

Check whether Johnsons rule can be applied. If not, solve the problem using
Palmers heuristic.
27.

The Marketing Manager of Home Cooler Company found significant variation

between sales forecast and actual sales figures during the last 3 years. As a
result, Inventory Management became a problem. The Production Manager
expressed that his department was put to unnecessary additional cost, because of
inaccurate forecast. The wrong forecast was also affecting the profitability. A
Consultant was hired to suggest appropriate methods. He developed forecast on
the basis of historic demand data and the frequency of forecast. He suggested
that if forecast were overestimated or underestimated, correction factors were to
be used and new figures arrived and he gave his recommendations to the
company.

28.

What is capacity and what are the factors influencing capacity planning?

29.

What is meant by planning location and what factors affect the choice of plant
location?

30.

List out and explain the factors that should be taken into account in deciding the
location of a factory?

31.

Distinguish between product and process lay out with examples?

32.

Discuss the techniques of production planning and control?

33.

Write short notes on (a) Johnsons technique (b) Man machine chart
(c ) Scheduling

34.

Write short notes on (a) Forecasting models (b) Mean Absolute Deviation
(c ) Moving Average

UNIT-III (10 MARK QNS)

1.
Draw a multi-activity man-machine chart for the following situations:A drilling machine takes 3 minutes for a job. A job can be sent for drilling only
after grinding is over. It takes one minute for the worker to load a job on the
grinding machine and one minute to unload and two minutes for loading and
one minute for un-loading for drilling. Draw a chart for one complete cycle and
show the engagement and idle situations.
2.
Explain 5 principles of motion economy.
3.
Discuss the steps in work study in details.
4.
Explain method study and use of various charts in method study?
5.
Explain the procedure for time study.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

32

6.
7.
8.
9.
10.

Explain how standard time is arrived.

Explain in detail with example of a man machine chart.
Write short notes on (a) Ergonomics (b) Flow process (c ) Recording techniques in
method study.
Write short notes on (a) Aggregate planning (b) Master production schedule
(c ) Bill of materials
A time study engineer has studied the time taken to machine crank shafts. He
has taken 40 observations and these are summarized in the form of frequency
distribution as shown below :
Time (Minutes)
20
21
22
23

Frequency
15
10
10
5

The performance rating of the operator machining the crank shaft is 110%. Find
the standard time for machining the crank shaft by assuming allowance of 15%.
11.

A job consists of four work elements and all are performed by the same operator.
An analyst conducted work sampling to determine the standard time for the job.
The duration of the study is one day with two shifts. Each shift has 420 minutes
of effective time. The details of observations are summarized in the following
table. The total number of acceptable units produced during the study period is
225 units. Determine the standard time by assuming allowance of 12%.
Work element number
1
2
3
4

12.

Frequency of Performance
50
90
75
85

Performance rating
90%
150%
100%
115%

A job consists of three work elements and all are performed by the same operator.
An analyst conducted work sampling to determine the standard time for the job.
The duration of the study is one shift with 400 minutes of effective time. The
details of observations are summarized in the following table. The total number
of acceptable units produced during the study period is 150 units. Determine the
standard time by assuming allowance of 10%.
Work element number
1
2
3

Dr. M KOTEESWARAN

Frequency of Performance
70
80
50

MBA II SEM

Performance rating
80%
120%
110%

POM Question Bank

33

13.

In a welding shop, a direct time study was done on a welding operation. One
inexperienced industrial engineer and one experienced industrial engineer
conducted the study simultaneously. They agreed precisely on cycle time (shown
below) but their opinion on rating the worker differed. The experienced engineer
rated the worker 100% and the other engineer rated the worker 120%. They used
a 10% allowance.
Cycle Time (in Minutes)
20
24
29
32

Number of Times Observed

2
1
1
1

From the above statement,

a) Determine the standard time using the experienced industrial engineers worker
rating.
b) Find the standard time using the worker rating of inexperienced industrial
engineer.
c) Comment on the reliability of time study engineers.
UNIT-IV (10 MARK QNS)
1.
A company expects annual demand for an item to be around 20,000 units and the
ordering cost is Rs.500 per order. The carrying cost is 10% per unit cost of the item.
The price of each individual item is Rs.30.
The price break levels followed by the supplier are 1-1999 units no discount, 20002999 units 5% discount on unit price. 3000-above units 10% discount on unit price.
Find the optimum order quantity.
2.

Shree Shanti Store in Pune stocks gas stoves in its warehouse. It carries various
brands of gas stoves. The Glenn brand of gas stoves is the fastest moving in the
category. The annual demand for Glenn gas stoves is 5,000 units. It incurs annual
carrying cost of Rs.50/- per unit and the ordering cost is Rs.200/-. The store
remains closed on Sundays, Holi, Diwali and Christmas. It can be assumed that
Holi, Diwali and Christmas do not fall on Sundays. Determine the optimal order
size, number of orders in a year, order cycle time and total inventory cost in a nonleap year.

3.

A company uses a variety of raw materials in the manufacturing of a twowheeler. The following is the list of those materials based on their bin card
numbers and the cost of those materials. Classify them on the basis of ABC
analysis.
Item Number
1000

Dr. M KOTEESWARAN

Annual Value in Rs.

12,000

MBA II SEM

POM Question Bank

34

1001
1002
1003
1004
1005
1006
1007
1008
1009
4.

A manufacturing firm which fabricates heavy engineering equipment uses a

large variety of raw materials, which includes a large number of screws, bolts,
valves, engines, motors, shafts, etc. The different inventory items that are used are
given in the table below with their corresponding monetary values. Classify them
on the basis of ABC analysis.
Inventory Item
201
202
203
204
205
206
207
208
209
210
211
212

5.

2,000
3,500
2,000
30,000
5,000
2,000
25,000
3,000
5,500

Annual use in Rs.

4000
3500
45000
2000
25000
14000
15000
13500
5000
5000
2000
3000

An automobile factory manufactures a particular type of gear within the factory.

This gear is used in the final assembly. The particulars of this gear are presented
below.

Demand rate, r = 14,000 units/year

Production rate, k = 35,000 units/year
Set up cost, Co = Rs.500 per set up
Carrying cost, Cc = Rs.15/unit/year
Find the EBQ and cycle time.
6.

A product is to be manufactured within the company, the details of which are as

follows :-

r = 36,000 units/year
k = 72,000 units/year
Set up cost, Co = Rs.250 per set up
Carrying cost, Cc = Rs.25/unit/year
Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

35

Find the EBQ and cycle time.

7.

The annual demand for a component is 7200 units. The carrying cost is
Rs.500/unit/year, the ordering cost is Rs.1500 per order and the shortage cost is
Rs.2000/unit/year. Find the optional values of the following :i.
ii.
iii.
iv.
v.
vi.

8.

The annual demand for an automobile component is 36,000 units. The carrying
cost is Rs.0.50/unit/year, the ordering cost is Rs.25.00 per order and the shortage
cost is Rs.15.00/unit/year. Find the optional values of the following :i.
ii.
iii.
iv.
v.
vi.

9.

(a)
(b)
10.

Ordering quantity
Maximum inventory
Maximum shortage quantity
Cycle time (t)
Inventory period (t 1)
Shortage period (t 2)

Economic Ordering quantity

Maximum inventory
Maximum shortage quantity
Cycle time
Inventory period (t 1)
Shortage period (t 2)
Annual demand for an item is 5400 units. Ordering cost is Rs.600 per order.
Inventory carrying cost is 30% of the purchase price per unit per year. The price
breaks are as shown below:
Quantity
Price (Rs.)
0 Q1 < 2400
12
2400 Q2 < 3000
10
3000 Q3
8
Find the optimal order size.
If the order cost is changed to Rs. 300 per order, find the optimal order size.
Annual demand for an item is 6000 units. Ordering cost is Rs. 600 per order.
Inventory carrying cost is 18% of the purchase price per unit per year. The price
breaks are as shown below.
Quantity
Price (Rs.)
0Q1< 2000
20
2000 Q2< 4000
15
4000 Q3
5

Find the optimal order size.

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

36

11.

Briefly explain ABC analysis with a suitable example.

12.

The stores of a repair shop has 10 items whose details are shown in the following
table. Apply ABC analysis to the stores and identify A Class, B Class and C class
items.
Component 01
02
03
04
05
06
07
08
09
10
Code
Price/unit110
3000 225
310
7000 500
1000 7000 800
(Rs.)
Units/year125
310
720
425
525
900
510
600
13.
Discuss various costs involved in inventory problems with suitable examples.
14.
What is inventory control? What are the essentials of a good inventory system?
15.
Explain the various aspects of inventory management.
16.
Discuss the various classifications of inventory system and explain ABC
classification with an example.
17.
Explain the procedure for performing an ABC analysis.
18.
Explain the objectives of materials management.
19.
Write short notes on (a) MRP (b) EOQ (c ) EBQ
20.
Write short notes on (a) Re-order level (b) Lead time (c ) Safety stock

UNIT-V (10 MARK QNS)

PART-A (Quality)
1.
Explain Deming 14 point plan?
2.
What is meant by quality control with suitable examples. Illustrate preparation
of control charts for variables.
3.
Explain various Japanese techniques of quality management.
4.
Write short notes on (a) JIT (b) Kanban (c ) Poka Yoke
5.
Write short notes on (a) Total Quality Management (TQM) (b) ISO 9000
(c ) Kaizan
6.
Write short notes on (a) BPR (b) Supply Chain Management (c ) Autonomation
7.
Write short notes on (a) 6 sigma (b) Variables (c ) Attributes
8.
The following data were obtained over a 5-day period to indicate X and R control
chart for a quality characteristic of a certain manufacturing product that had
required a substantial amount of rework. All the figures apply to the product
made on a single machine by a single operator. The sample size was 5. Two
samples were taken per day. Comment on the process using X and R charts.
Sample Number
1
2
3

Dr. M KOTEESWARAN

1
11
6
11

MBA II SEM

2
12
10
12

Observations
3
13
10
9

4
10
11
12

POM Question Bank

5
9
9
10

37

4
5
6
7
8
9
10
9.

14
12
11
10
10
12
11

10
11
10
12
11
13
13

11
7
11
12
12
10
12

Observations
2
12
10
12
9
11
8
12
12
13
13

1
10
7
11
10
8
11
10
10
12
10

1
2
3
4
5
6
7
8
9
10

3
13
8
9
8
11
8
13
12
11
7

Beta electronic company manufactures resistors on mass production basis. At

some intermediate point of production line, 10 sample of size 100 each have been
taken. Resistors within each sample were classified into good or bad. The
related data are given in the following table. Construct a P-chart with 3 sigma
limit and comment on the process.
Sample Number
No.
of
defective
resistors

11.

13
10
12
13
10
12
9

The following data were obtained over a 5-day period to indicate X and R control
chart for a quality characteristic of a certain manufacturing product that had
required a substantial amount of network. All the figures apply to the product
made on a single machine by a single operator. The sample size was 3. Two
samples were taken per day. Comment on the process using X and R charts.
Sample Number

10.

8
11
10
13
11
11
9

10

12

15

20

14

20

15

10

Alpha electronic company manufactures cathode ray tubes on mass production

basis. At some intermediate point of production line, 10 samples of size 25 each
have been taken. Tubes within each sample were classified into good or bad. The
related data are given in the following table. Construct a suitable control chart
with 3 sigma limit and comment on the process.
Sample Number

Dr. M KOTEESWARAN

MBA II SEM

POM Question Bank

10

38

No. of defective tubes

10

PART-B (Maintenance)
1.
What is maintenance? Explain the advantages and disadvantages of break down,
maintenance and preventive maintenance.
2.
Write short notes on (a) Reliability (b) Bath tub curve (c ) Group replacement
3.
An electronic company contains 1000 resistors. When any resistor fails, it is
replaced. The cost of replacing a resistor individually is Rs.10.00/-. If all the
resistors are replaced at the same time, the cost per resistor is Rs.3.00/-, The
percent surviving, S(i) at the end of month i is given below.
i
S(i)

0
100

1
90

2
80

3
60

4
45

5
20

6
0

What is the optimum replacement plan?

4.

The failure rates of 1000 street bulbs in a colony are summarized in the following
table:

End of month
Probability of failure
to date

0.05

0.20

0.40

0.65

0.85

1.00

The cost of replacing an individual bulb is Rs.60/-. If all the bulbs are replaced
simultaneously it would cost Rs.25/- per bulb. Any one of the following two options can
be followed to replace the bulbs.
i)

Replace the bulbs individually when they fail (individual replacement

policy).
Replace all the bulbs simultaneously at fixed intervals and replace the
individual bulbs when they fail in service during the fixed interval (Group
replacement policy).

ii)

Find out the optimal replacement policy, i.e. individual replacement policy or group
replacement policy? If group replacement policy is optimal, then find at what equal
intervals should all the bulbs be replaced?
5.

An electronic equipment contains 500 resistors. When any resistor fails, it is

replaced. The cost of replacing a resistor individually is Rs.20.00/-. If all the
resistors are replaced at the same time, the cost per resistor is Rs.5.00. The
percent surviving, S(i) at the end of month i is given in the following table.

Month i
S(i)

0
100

Dr. M KOTEESWARAN

Percent Survival Rate

1
2
90
75
MBA II SEM

3
55

4
30

POM Question Bank

5
0

39

What is the optimum replacement plan?

13.

i
S(i)

An electronic equipment contains 1000 resistors. When any resistor fails, it is

replaced. The cost of replacing a resistor individually is Rs.10.00/-. If all the
resistors are replaced at the same time, the cost per resistor is Rs.4.00. The
percent surviving, S(i) at the end of month i is given below. What is the optimum
replacement plan?
0
100

Dr. M KOTEESWARAN

1
96

2
89

MBA II SEM

3
68

4
37

5
13

POM Question Bank

6
0

40