Unit-I: INTRODUCTION – PRODUCTION PLANNING AND CONTROL

1. a) Discuss the objectives of Production Planning and Control.

b) What do you understand by Control Phase? Explain the activities under this phase.
c) What are the main types of production systems? Explain.
d) Discuss centralisation and decentralization in the context of PPC.

2. a) Explain the aim of production planning and control department.

b) Define (i) Production (ii) Production Planning and (iii) Production Planning and Control.
c) Explain the type of production “Production for Stock”.
d) Explain the advantages of Production Planning and Control.

3. a) Explain the characteristics of continuous production system.

b) Explain the characteristics of job order production system with respect to layout used, degree
of difficulty of PPC function, variety and volume.
c) Draw the organization chart of production planning department.
d) Explain the characteristics of continuous type production system.

4. a) What are differences between job shop, batch type and continuous production systems with
respect to volume, variety, layout used and type of machines used.
b) State the objective for which the PPC department is established in a factory system.
c) Draw the organization chart for production planning and control department.
d) List out the planning functions and explain any two in detail.

5. a) List out the planning functions and controlling functions separately.

b) Write a note on the organization of the PPC department.
c) Explain the product life cycle.
d) Explain the production control.
 Unit-II: FORECASTING
1. a) A firm uses simple exponential smoothing with α = 0.2 to forecast demand. The forecast for the first week of January
was 400 units, whereas the actual demand turned out to be 450 units.
(i) Forecast demand for the second week of January
(ii) Assume that the demand for the second week of January turned out to be 460 units. Forecast the demand up-to
February third week, assuming the sub-sequential demand as 465, 434, 420, 498 and 462 units.
b) Describe the Delphi method of sales forecasting.
c) Given below is a series of weekly demand data that the Beta company collected on one of its products and forecasts
for the corresponding weeks, made by a forecast method which the company is testing.
(i) Compute the mean absolute deviation based on all six weeks of data.
(ii) Compute the mean square error based on the six weeks data.
Week 1 2 3 4 5 6
Demand 142 181 144 174 192 176
Forecast 155 157 159 161 163 165
d) Discuss various forecasting errors.

2. a) Find the MAD (Mean Absolute Deviation) and MSE (Mean Square Error) for the following forecast.
Period 1 2 3 4 5 6 7 8 9
Actual Demand 105 96 102 97 121 118 119 123 121
Forecast Demand 100 100 100 100 101 102 103 104 105
b) What are the different methods of sales forecasting. Explain.
c) What are the types of demand pattern? Explain them with suitable sketches.
d) Explain the following: i) Forecast error ii) Forecasting-Prediction iii) Forecasting techniques for seasonal products.

3. a) List out various qualitative methods of forecasting. Explain any one.

b) A firm believes that its annual profit depends on its expenditure for research. The information for the preceding six
years is given below. Estimate the profit when the expenditure is 6 units.
Year 1 2 3 4 5 6
Expenditure for Research 2 3 5 4 11 5
Annual Profit 20 25 34 30 40 31
c) Alpha company has the following sales pattern. Compute the sales forecast for the year 10:
Year 1 2 3 4 5 6 7 8 9
Sales (in Lakhs) 6 8 11 23 29 34 40 45 56
d) With an example explain the simple moving average and weighted moving average method of forecasting.

4. a) The sales particulars of a company for 13 years of operation is furnished below.

Year 1 2 3 4 5 6 7 8 9 10 11 12 13
Number Sales 96 116 119 127 146 145 153 158 160 165 177 190 205
(i)Fit a simple regression for the above data.
(ii) Forecast the sales for the 14th year of operation.
b) Define forecasting. Discuss the applications of forecasting.
c) The details of sales turnover of a cement company for the period 1997-2003 are given in the following table.
Compute the sales for the year 2004.
Year 1997 1998 1999 2000 2001 2002 2003
Sales(in crores) 30 40 55 68 95 90 120
d) What are the factors affecting forecasting?

5. a) List and explain the types of forecasting in decision making.

b) Find the MAD (Mean Absolute Deviation) and MSE (Mean Square Error) for the following forecast.
Period 1 2 3 4 5 6 7 8 9 10 11 12
Actual
97 93 110 98 130 133 129 138 136 124 139 125
Demand
Forecast
100 100 100 100 102 104 106 108 110 112 114 116
Demand
c) A firm uses simple exponential smoothing with α = 0.3 to forecast demand. The forecast for the first week of January
was 500 units, whereas the actual demand turned out to be 450 units.
(i) Forecast the demand for the second week of January.
(ii) Assume that the actual demand during the second week of January turned out to be 550 units. Forecast the demand
upto February third week, assuming the subsequent demands as 475, 450, 470, 525 and 470 units.
d) What do you mean by time series? Briefly explain the elements of time series
Unit-III: INVENTORY MANAGEMENT
1. a) Explain and compare the fixed order quantity and fixed period model and state their applications.
b) Alpha industry estimates that it will sell 12,000 units of its products for the forthcoming year. The
ordering cost is Rs.100 per order and the carrying cost per unit per year is 20% of the purchasing price per
unit. The purchase price per unit is Rs.50/-. Find. (i)Economic Order Quantity (EOQ) (ii) Number of orders
per year and (iii) Time between successive orders.
c) What is ABC analysis? Explain.
d) The store of an oil engine repair shop has 10 items whose details are shown in the following table.
Classify the items into A-Class, B-Class and C-Class items.
Component Code Description Price/Unit Unit/Year
C01 Packing Thread 100 100
C02 Tower Bolt 200 300
C03 Hexagonal Nut 50 700
C04 Bush 300 400
C05 Coupling 500 1000
C06 Bearing (Big) 3000 30
C07 Bearing (small) 1000 100
C08 Fuel pump 7000 500
C09 Fixture 5000 105
C10 Drill bit 60 1000
2. a) What is fixed order quantity system? State its advantages and disadvantages.
b) What are the basic inputs for MRP? Explain.
c) Identify and explain components of carrying and order costs.
d) A company requires 10000 units of items per annum. The cost of ordering is Rs.100 per order. The
inventory carrying cost is 20%. The unit price of the item is Rs.10. Calculate.
(i) The economic order quantity (ii) Optimal total annual cost (iii) Time between orders.

3. a)What is a bill of material? Draw a typical bill of material chart. Explain how it is useful.
b) Explain and compare the fixed order quantity and fixed order period model and state their applications.
c) Define inventory? State and explain various costs associated with it.
d) The annual demand for an automobile component is 24000 units. The carrying cost is Rs. 0.40/unit/year,
the ordering cost is Rs.20 per order and the storage cost is Rs.10/unit/year. Find the optimal values of the
following. (i) Economic order quantity (ii) Maximum inventory (iii) Maximum storage quantity (iv) Cycle
time
4. a) Explain the various steps involved in MRP system.
b) What does the bill of materials structure mean? Explain by an example.
c) Distinguish between ABC analysis and VED analysis.
d) An engine manufacturing company stocks the items as shown in the following table in its stores. The unit
prices, annual consumption quantity in terms of units/year are also given in the same table. Classify the
items into A, B and C categories and mention nature of control one has to exercise on each category.
Component Code Description Price/Unit Unit/Year
C001 Connecting rod 500 600
C002 Crank case 4000 600
C003 Cylinder 2000 600
C004 Cylinder head 3000 600
C005 Crank shaft 4000 600
C006 Cam 500 1200
C007 Nozzle 500 600
C008 Valve set 1000 1200
C009 Fuel injection pump 1500 600
C010 Exhaust pipe 500 600
5. a) Explain the JIT Kanban working principle.
b) What are the inputs to materials requirement planning? Explain.
c) Derive the Wilson EOQ formula. What are the practical limitations of EOQ formula?
d) Explain the various costs associated with inventory.
Unit-IV: ROUTING AND SCHEDULING
1. a) Define routing. Explain the functions of routing in a manufacturing industry.
b) Differentiate between master schedule and subsidiary schedule in detail.
c) Explain the terms forward scheduling and backward scheduling.
d) Explain the route card and work sheet.

2. a) State and explain the various factors affecting the routing procedure.
b) Explain the Johnson’s rule of sequencing of n jobs on 2 machine problem.
c) Explain the different methods of scheduling.
d) Draw a schedule chart and load chart for the following data. Given order of machine is first on X
and then on Y.
Time in Hours on Machines
Jobs
X Y
A 2 4
B 5 2
C 1 3

3. a) What is a route sheet? What is the information it contains? Explain it by drawing a route sheet. b)
Distinguish between loading and scheduling.
c) Eight jobs are to be processed on three machines M1, M2 and M3 in the same order M1M2M3 and
the processing times (in hours) required for jobs on the machines are shown below. Find the job
sequence that minimizes the total processing time for all jobs.
Jobs
Machines
A B C D E F G H
M1 4 8 5 9 3 4 9 6
M2 6 4 7 1 4 2 5 2
M3 8 7 9 7 9 8 9 7
d) Explain the schedule boards and commercial devices.

4. a) What is the significance of loading? Explain with the help of machine load record.
b) A company has ordered for five jobs A, B, C, D and E that must be processed sequentially through
two work centres baking and decoration. The time in hours required for jobs is shown below.
Determine the schedule of sequence that minimizes the total elapsed time for five jobs and present it
in the form of a Gantt chart.
Time required for jobs (in hours)
Work centres
A B C D E
BAKING 5 4 8 7 6
DECORATION 3 9 2 4 6
c) Discuss the Gantt chart for scheduling policies.
d) List out various scheduling rules. Explain at-least three of them.

5. a) Three jobs go over three machines M1, M2 and M3 in that order. From the data given below, find
the sequence that minimizes the total elapsed time and find the minimum time.
Jobs
Machines
A B C
M1 1 2 3
M2 6 2 3
M3 5 6 2
b) Describe the different types of scheduling.
c) Explain the following standard scheduling techniques.(i) Master scheduling (ii) Perpetual scheduling
d) Explain with a neat sketch how Gantt chart is used to show schedules. Explain the symbols used in
drawing Gantt chart.
Unit-V: AGGREGATE PLANNING
1. a) What is the meaning of aggregate planning? What are the objectives of aggregate plans? What
are the inputs and the nature of outputs?
b) Describe the types of follow up in detail.
c) List out the various activities of a dispatcher. Explain all the activities in detail.
d) Explain the different costs associated with aggregate planning.

2. a) List out various forms raised by dispatcher? Explain any three with neat sketches.
b) What is follow-up? Explain its significance in production.
c) Explain the role of computers in production planning and control.
d) Explain the centralised and decentralised system of dispatching.

3. a) Describe the different aggregate planning strategies.

b) Give the specimen of inspection card.
c) What is meant by dispatching in manufacturing? Explain its functions in detail.
d) Explain the types of follow up.

4. a) What is aggregate planning? Explain the pure strategies of aggregate planning.

b) What is expediting? Why is it necessary in production control?
c) Distinguish between aggregate planning and master production schedule.
d) Beta corporation has developed a forecast for a group of items that has the following demand
patterns. Suppose that the firm estimates that it costs Rs.150 per unit to increase the production
rate, Rs.200 per unit to decrease the production rate, Rs.50 per unit per quarter to carry the
items on inventory and Rs.100 per unit if subcontracted. Compare the cost incurred if the
following pure strategies are followed. (i) Varying the workforce size (ii) Changing the inventory
level (iii) Subcontracting
Quarter 1 2 3 4 5 6 7 8
Demand 270 220 470 670 450 270 200 370
Cumulative
270 490 960 1630 2080 2350 2550 2920
Demand

5. a) What is aggregate planning? How does it differ from long range planning and short range
planning? Explain with an example.
b) How does the Follow-up differ from expediting? Explain in detail.
c) The forecast for a group of items manufactured in a firm is shown below.
Quarter 1 2 3 4 5 6 7 8
Demand 370 320 570 670 550 370 350 480
The firm estimates that it costs Rs.200 per unit to increase the production rate, Rs.250 per unit to
decrease the production rate, Rs.75 per unit per quarter to carry the items on inventory and
Rs.125 per unit if sub-contracted. Compare the cost incurred if the following pure strategies are
followed: (i) Varying the workforce size (ii) Changing the inventory level (iii) Subcontracting
d) Explain the reason for the existence of the follow-up function.