10 November 2021

Indian Institute of
Management Lucknow 42
PGP I
(Operations Management) - Sections E &F
Quiz 1 (CLOSED B0OK/ CLOSED
NOTES)
(
Time: 15 M +p
NAM Mavimm -ks: 05
OLLN SECTION:
ATTEMT 1sOTH THE
QUESTIONS ON THIS sHEET
LAPTOPS NOT ALLOWED; ITSELE
EXCHANGE OF CAICULATORS IS
PROHIBITED
Q1. Mark True (T) or False (F) against each
marks for
of the statements
Cmentsbelow:
below:
0.2 right answers; 0.1 negative marks for
wrong answers; zero marks for not atempted)
A Industry refers to the age of
2.0
clectricity. T
H2. Most services have non-uniform capacity utilization.
F
Capacity reservation is an ineffective method in
managing demand in
3D Printing leads to reduction of work-in-process/ finíshed goods. services.F
Choice of better processes and technologies leads to diseconomies of scale. F
Operations Management consists of a set of
activities that create value in the form of
goods and services by transforming inputs into
outputs.T
AAn FMS operates under a central computer
control.T
8.OM strategy needs to be integrated with company's strategy and other functional
areas. o
Functionality in
product design refers to how it "looks and feels". F
O.
Rapid Prototyping is a contemporary design approach. F
. Mass customization combines the flexibility of a process focus with the efficiency of a

product focus.
2 Service blueprint defines two levels of interaction with different management issues. F

3 . Project organizations and customized manufacturing systems have jumbled flow. T

A Jventory of ypares & maintenance is generally high in continuous proces industries. T
U5. Operations managers have litle interaction with other functional areas. F
16. Efective processes ofien cut across departmental lines.7NA
. A make-t0-order strategy involves holding items in stock for immediate delivery. F
8. An emergency department physician's service can be classified as highly complex with

high divergence.
P.T.O.
 It 1s considcrn"
. Prateek Software provides certain services for the ever-changing market. Tro
agiity.
more
moving from
is,
a design facility to operations capable of much
small custom
Prateek must consider upgrading his system equipment. Option I is to purchase two nie
ar
Stand-alone systems at INR 500 lakhs cach. Option 2 is to purchase an integrated system
INR 2500 lakhs. Prateek's sales manager has estimated that the sales over the life ol Optuon

in case of high
system will be INR 6000 lakhs and they will be INR 9000 lakh for Option 2
demand. In case of low demand, future sales would be INR 4000 lakhs for both the options,
He has also estimated the likelihood of high demand as 60%. Draw and solve a decision tree

to help Prateek make a decision. Show all the calculations. (1.4 Marks)

HighLemasa SalesGo00Lakh
o45o00 Cost F lo00 lakh

Profht lakh

Option
Oakh/e Rbnd
0 T/40 Of 3000 Nes 4000 Lakh
Decis on for Ccst lo00 lakh
Uegradng Profit 300p Lakh

3 0 Opti+0on0
2 High
ema S a l s Jo0o lakh
o 6500c
Cost T2500 lakh
450 Lah Profit65 Lakh
Saes 4003 Lak h
Cost 2500 Lak h
Profit So lakh
Expocted frofit Value igh for Option 2
fra
trekotthare should choo Se to Putchase
m in tegrated SyStem
 17th November 2021
Indian Institute of
Management Lucknow
PGPI (Operations
Management)- Sections E &/¥
Quiz (CILOSED BOOK/ CLOSED NOTES)
2

Mimum M--ks: 05
NA
LL NG ECTIC

ATTEMPT BO. N S ON TIHIS SHEET N>EAP,

LAPTOPS NOT ALLOWED; EXCHANGE OF
CALCULATORs IS PROHIBITED.

Q1. Mark True (T) or False (F) against cach of the statements below:
(O.15 marks for right answers; 0.10 negative marks for wrong answers, zero marks for not atternpten)

XQuality is a tactical rather than a

strategic isue. F
2. Utilization of the total "cube" is the dominant consideration in office layout. T
a3. Time study is a used for estimating the proportion of time a worker sperds on various activities.

h e balancing of work cells uses the same procedures as the balencing of an assembly line. F
Warehouse layout addresses trade-offs between space und material handling T
SAn advantage of work sampling is that it completely breaks down work elements. F
YWork sampling estimates the percent of time that a worker spends on various tasks.
8.
External failure costs are associated with scrap, rework, and downtime, T
9 The biggest advantage of a product layout is its flexibility to handle a varied product mix,
0. A product requires 24 separate 1asks, and the sum of those task times is 14 minutes; if the cycle
time is 2.4 minutes, then at least 6 workstations will be needed.
i c t s o/1. Gap 4 in SERVQUAL model refers to "Not Matching Performance to Promises'. F
. A lot that is accepted by acceptance sampling is free of defects. F
/13. The probability of rejecting a good lot is known as consumer's risk. T
JA.p-charts are used when we are sampling attributes. T
K An X.bar chart is appropriate to plot the number of typographic erors per page of text. T
process-oriented layout sfrategy is to minimize the material handling costs. T
1 6 . The typical goal in a

7. Line employees do not need

the knowledge
of quality tools. F
18. The time spent observing
the employee is relatively short in work sempling F
J9.The work cellimproves layouts by reducing by reducing
floor space and directlabour cost. T
inferior to inspection before costly operatíons.
26. Source inspection is

PTO
 4 A 1ask involves positioning two metal parts with a rubber gasket sandwiched detwec
wim a
each boit
nut onto each bolt, and tightening
g t o Dolis into predrilled holes, threading a
*

tnis lask
the manager observed one of his workers pertorm
pneumatic wrench. In a preliminary study,
at ground
TIve tumes. The observations were made in an air-conditioned. well-lighted training facility,
level, with all tools and equipment clean and readily available,

Observation:
Task time (seconds): 0 4 50 145 56

a. What is the average observed time for this task? 1or

10% slower pace than is typical
D. What is the normal time for this task if the employee worked at a

adequately trained workers?

standard time for this task if allowances are 8% constant and 6%
variabie? (2 Marks)
C. What is

Average 0bserved Time 50+54+60t 6

55 Sec
We assume oservatio4 as deviatecl because
oF
inconsistency or
laqs made, by Worker
*

b Normal Tme
Aeraqe Observel me
Perforance. tuting foctor
Performance Rting tac toy 100 - 10 = S0% - 0 9

Normal lime 55 0:9 =

43:5 sec
C Standard lime Normal lime
-Allownce Focto
( V Allawanoe tactor 8/ t6/. 197. 0 14- =

Standard Time 3 4-95 57-56 Se

-0'14-
Name Sec:
11h Decer Zva

Sections E & F
PGP I (Operations Management)
-

Quiz 3 (20 minutes)

QOiven the forecast demand and actual demand for a particular item for six years, compu
Marks)
tracking signal and MAD

Forecast Actual
Forecast Actual ar
Year Forecast Actual Year
Demand Demand
Demand Demand Demand Demand

88 60
78 71 3 101

85 15
80 84 84

Abso hute Eror

Actul Denand Forecast Demand Ai 1A-R
Yenr A
71
+5

lol
+18 18
84 84
-2 28
88
2 12
13 85
2Error 2 70
-24-

Here n-6.
MAD(MeanAaohete. Deviatiar)-2IA,-FI

MAD I 67
Trackinq Sighal 2 Eror
MAD P.T.O.

2:06
Tracking Gna
 Costs
Q2.(3 Marks) Period

Month Oct Nov Dec Regular timeS40 per unit

Demand 355 270 375 Overtime S60per unit
S80 per unit
Beginning 04 Subcontract
Inventory month
4per unit per
nventory
Capacity c a r r y i n g cost

Regular 350 250 200 Back order cost S8 per unit per montn
|Overtime 30 1525 Solve this problem in transportation
tormat

Subcontract 120 |120 100 given below for the minimum cOSt plan

Demana

Total Unused
Ost Noy Dc Capacity Capacity

Beginning L8 4
Inventory
Oct
Regular 44-3
ime 350 350
Overtime
30
29
Sub-contract
B4 3 120
1200
Regular
Nov
121
2510
Time 29
Overtimee 64 5
5
Sub-contract 80 84 12o
120
4 20O0 O
Dec Regular
Time 111 89
Overtime 68 60 25 L
25
Sub-contract
96 88 8o l00
00

355270 3751214214
Demand

T
 23rd December 2021

PGPI(Operations
Indian
Management) -Sections E &F
Institute of
Management Lucknow
Quiz 4 (CLOSED BOOK/ CLOSED
Tima: 15 Minntns NOTES)
NAM Mavimum NMarks: 055
OLL SECTI
ATTEMPT BOTH THE
QUESTIONS ON THIS SHEET ITSELF.
LAPTOPS NOT ALLOWED;
EXCHANGE OF CALCULATORS IS PROHIBITED.
he network below
represents a project being
analyzed by Critical Path Methods. Activity
durations in days are A=5, B=2, C=12, D=3, E=5, F=1,
G-7, H=2, l=10, and Jo.

ABCHT 20
ABGIJ 3 Start «

ACH: 25
DFT 26

10

a. Identify the critical (2.5 Marks)

path(s) of this network?
Critical Path (lonoest Time takina ath)= A-B-G-I-J
b. What is the length of the critical path? qcbvity
Lenqth ot critical prth =
2Sum of ti mes on +2t/t
Critical path
lot6 =
30 davs
c. What task must be the
on
critical path, regard less of activity durations?
There are many paiths but, all paths end at Activity J
d.
Activity JmuGt
What is slack time at the activitybeH?on he Citia path.
For Actiwity H, ES: 12
EF-14, LF- 24-
Slack time LF-EF- 24-A 10 days
e. If the activity C was delayed by two days, would
what happento the project duration?
Activity C: Es: 5 EF 17 LF 22
Slack time -EF= 22-17: 5 day
2 day Slak time P.T.O.

Project would be ompleted within time

 incs. The
Q2. Vzag Marine Services, Inc. wishes to a set of
assign to a set of
jobs
g tabie provides data on the cost of production of each job when pertormeu on a
specific machine. (2.5 Marks)

Mach
hine
Job A C D
27 29 28 30
30 29 27
31 25|
29 31 25 28
a. Determine the set of assignments that maximizes production vaue.
b. What is the total
production value of these assignments?

Tob

There are 4 line (equivalent to number of machin)

It s our Dptima Solution

Jab Minimum-Ovaue
Machine (Take E k
A A

ast of Produccion 27t26+65+25

o t a rodon0 ae E3I
125 103
**