CONFIDENTIAL BA/DEC 2019/MGT345/375

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE OPERATIONS MANAGEMENT

COURSE CODE MGT345/375

EXAMINATION DECEMBER 2019

TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) parts PART A (5 Questions)

PART B (5 Questions)

2. Answer ALL questions in the Answer Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paper

ii) an Answer Booklet - provided by the Faculty

5. Answer ALL questions in English.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 7 printed pages

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 CONFIDENTIAL BA/DEC 2019/MGT345/375

PART A

QUESTION 1

Adidos Manufacturing Sdn Bhd produces high quality shoes. Manufacturing these shoes
require 10 separate tasks. There are 420 minutes available for manufacturing the shoes in
the plant each day and the weekly demand is 300 shoes. The information for the tasks is as
follows:

TASK TIME
TASK (MINUTES) PREDECESSOR
A 1 -

B 3 A
C 2 B
D 4 B
E 1 C,D
F 3 A
G 2 F
H 5 G
I 1 E,H
J 3 I

a) Draw the precedence diagram of the operation.

(4 marks)

b) Assuming a 5 days work a week, calculate the cycle time of the line.
(1.5 marks)

c) Determine the theoretical minimum number of workstations.

(1.5 marks)

d) Construct the line layout of the operation.

(2 marks)

e) Compute the resulting efficiency and balance of delay percentages.

(2 marks)

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 CONFIDENTIAL BA/DEC 2019/MGT345/375

QUESTION 2

Suri Sutra Inc. decides to relocate its existing obsolete plant. The company has conducted a
study on several locations and finally come out with three alternatives. The cost structures
are as follows:

Alor Setar Butterworth Ipoh

Utilities (RM) 200,000 180,000 220,000
Building (RM) 450,000 600,000 650,000
Equipment (RM) 700,000 600,000 500,000

The variable cost breakdown for each location is as follows:

Alor Setar Butterworth Ipoh

Labor (RM) 28 29 30
Raw Materials (RM) 25 24 26
Overhead Expenses 20 17 28
(RM)
Freight (RM) 17 15 16

The production can be sold for RM150 per unit and the estimated annual production for each
location is 30,000 units.

a) Calculate the BEP for each location.

(3 marks)

b) Based on BEP, which location should be chosen?

(1 mark)

c) How much does each location has to produce to gain a profit of RM25.000?

(4.5 marks)

d) Determine the profit for each location based on the estimated annual production
volume.
(4.5 marks)

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 CONFIDENTIAL BA/DEC 2019/MGT345/375

QUESTION 3

A dam construction project requires nine (9) activities as per the following table.

TASK PREDECESSOR(S) TIME

(WEEKS)
A -
2
B -
5
C A 4
D B 8
E B 7
F C,D 3
G E 8
H F 5
I F,G 7

a) Draw the appropriate PERT diagram.

(3 marks)

b) Calculate the earliest start time and latest start time for each event.
(4 marks)

c) Calculate the project completion time.

(1 mark)

d) Identify the critical path and critical activities of the project.

(2 marks)

e) Calculate the total float and the free float for activity D.
(2 marks)

f) Compute the project completion time if activity F is delayed by 5 weeks.

(1 mark)

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 CONFIDENTIAL BA/DEC 2019/MGT345/375

QUESTION 4

Ixora Confectionary is in the process of developing an aggregate capacity plan from January
until June 2020. The company has signed a contract promising to deliver the products to
customers according to the schedule below:

MONTH FORECAST DEMAND

January 6000
February 5100

March 5700

April 6300
May 5700

June 6300

Apart from the contract, the normal monthly demand from other buyers is 1200 units.

Additional information:

Current workforce 25 workers

Standard output 40 minutes per unit
Regular working hours 8 hours
Normal wage rate RM5 per hour
Subcontract cost RM5 per unit
Hiring cost RM150 per worker
Layoff cost RM200 per worker
Overtime limit 900 units per month
Inventory holding cost RM0.30 per unit per month
Overtime rate RM6 per hour
Working days per month 25

a) Prepare an aggregate production plan for Ixora Confectionary for the months of January
through June 2020 by using varying workforce level and meet exact demand strategy.

(8 marks)

b) Calculate the total cost for the strategy.

(5 marks)

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QUESTION 5

Sri Kedah Clothing uses a specialized sewing machine in producing its products. Based on
the detailed breakdown and repair record prepared by the maintenance department over the
last 36 months, the sewing machine has broken down at the rate indicated in the following
table:

FREQUENCY OF BREAKDOWNS
NUMBER OF BREAKDOWNS
(MONTHS)
0 8
1 12
2 10
3 5
5 1

Each breakdown costs the company RM400 in time and service expenses. Recently, an
external maintenance company offered Sri Kedah Clothing a scheduled preventive
maintenance contract to overcome the problem. This new scheme guarantees no
breakdown, but would cost Sri Kedah Clothing RM600 per month.

Should Sri Kedah Clothing accept the scheduled preventive maintenance contract? Justify
your answer.
(10 marks)

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 CONFIDENTIAL BA/DEC 2019/MGT345/375

PARTB

QUESTION 1

Explain four (4) objectives of operations management.

(8 marks)

QUESTION 2

a) Describe any two (2) types of research and development.

(4 marks)

b) State any four (4) characteristics of the process focus strategy.

(4 marks)

QUESTION 3

Discuss any four (4) importances of work measurement.

(8 marks)

QUESTION 4

Describe the four (4) main functions of inventories.

(8 marks)

QUESTION 5

Explain any four (4) objectives of quality management.

(8 marks)

END OF QUESTION PAPER

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