TRIBHUVAN UNIVERSITY

FACULTY OF MANAGEMENT
MAHENDRA MULTIPLE CAMPUS, DHARAN
Internal Assessment 2023
BBA/Fifth Semester/MGT 205: Operations Management Full Marks: 60
Time: 3 Hrs. Pass Marks: 30
Candidates are required to answer all the questions in their own words as far as practicable.

Group "A"
Brief Answer Questions: [10 × 1 = 10]
1. Define transformation process of operations management.
2. Explain the concept of operations strategy.
3. List the product development process.
4. Provide the concept of layout.
5. Explain the concept of concurrent engineering.
6. List the issues of new product design.
7. What is six sigma?
8. Give the concept of aggregate planning.
9. List the tools of TQM.
10. Convert the given primal problem into the duality.
Min (Z) = 2X1-5X2
Subject to:
X1 + X2 ≥ 10
2X1 + 3X2 ≤ 12
And X1, X2 ≥ 0
Group "B"
Short Answer Questions: [6×5=30]
11. Explain productivity. Also explain factors affecting productivity.
12. ABC Company proposes to buy an item for which the annual demand is 2,000 units. The ordering cost is
estimated at Rs 25 per order and the inventory carrying costs are charged at 30% p.a. The price schedule quoted
by the supplier is as below:
Order Quantity Price per Unit (Rs.)
1 to 199 5
200 tc 499 4
500 & above 3
What is the optimal order quantity?

13. Solve the following LPP by using simplex method.

14. Explain the concept of Just-in-time (JIT). How it can be implemented? Explain.
15. Determine the optimum solution for the following problem to minimize the transportation cost:
Plant Warehouse Supply
W1 W2 W3
P1 3 8 5 10
P2 5 5 3 8
P3 7 8 9 8
Requirement 7 9 10
s
16. Ten sample of 200 parts each were taken from an ongoing process to control. The samples and the number of
defectives in each are shown below:
Sample No. of Defectives Sample No. of Defectives
1 3 6 2
2 1 7 5
3 6 8 3
4 10 9 1
5 8 10 0
a. Develop a p-chart for 95% confidence.
b. Based on the plotted data points, what comments can you make?

Group "C"
Comprehensive Answer Questions:
17. Read the following case analytically and answer the following questions. [4 x 5 = 201

A dedicated business group has planned to establish a new 'Cement Factory' in Nepal. They have made a
feasibility study that showed very good opportunity to invest money in this sector. They have made series of
decisions regarding the location, layout, and capacity.
First and very difficult issue was location decision. There were three main options for the group: Tanahun,
Rupandehi, and Dhading. Relatively, Tanahun had good access to raw materials, cheap labour, and cheap land for
factory. Rupandehi was good for local customer demand, and being situated in central part of the country.
Dhading was good fo transportation access to all over the country and good access to the raw materials. The were
many other factors like local tax, competitors' threat, productive land for cement factory and friendly
environment. After analysis, the business group has decided to select the best available location for their purpose.
Proper layout of the factory was another major issue for the business group. They hired consultant to make a
study about the effective layout of the factory. Consultant b emphasized on easy access to customers and
suppliers, good supervision from management maintenance department at the control area. Proper plant layout
required smooth and effective production system, canteen near to the factory workers etc. Mate receiving system,
storage, and raw-material feeding system were placed gear the entry g of the factory. Management office, canteen,
maintenance department, market department, finished goods and store section were pia near the exit of the
factory.
The capacity decisions was another issue for the business group. The market survey identified the huge demand of
cement. The group decided to run the factory at a large scale along with abundant access to the raw materials.
They have hired a mechanical engineer to make an analytical study of Japanese plants. Based on the available
information they have decided to purchase a semi-automated machine made in Japan that had a continuous
manufacturing system. The business group was quite aware on the interlinked decision regarding the location,
capacity, and layout. Lastly, they have planned to establish the factory at suitable layout of the plant. Based on the
above information, supply your opinion regarding to the following issues.
Questions:
a. Which city is the best location decision for the business group in establishing new cement factory?
b. State which process is appropriate for the production system, with justification?
c. How are the decisions regarding location, layout and capacity related based on the provided situation in the
case? Explain.
d. Discuss about the appropriate layout for the cement production.

“The End”