L-3ff-2/EEE Date: 02/04/2022

BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA

L-3/T.2 B. Sc. Engineering Examinations 2019-2020

Sub: IPE 493 (Industrial Management)

Full Marks: 210 Time: 3 Hours

USE SEPARATE SCRIPTS FOR EACH SECTION
The figures in the margin indicate full marks
Assume reasonable value for missing data, IF ANY .
._._-_._----------------_ .•_----------_._---------------,.,-----------------_. __ ._--------------------
SECTION-A
There are FOUR questions in this section. Answer any THREE questions.

I. (a) The Following tasks must be performed on an assembly line in the sequence and
times specified in Table I. (10+5+20=35)

Table 1 for Question 1.

Task Task Time (Seconds) Tasks That Must Precede other Tasks
A 50 ---
B 40 ---
C 20 A
D 45 C
E 20 C
F 25 D
G 10 E
H 35 B, F,G

(a) Draw the precedence diagram.

(b) What is the theoretical minimum number of stations required to meet a forecast
demand of 400 units per eight-hour day?
(c) Use the longest-task-time rule (primary rule) and maximum number of following
tasks rule (Secondary rule) and balance the line in the minimum number of stations.

2. (a) A company makes bicycles. It produces 450 bicycles a month. It buys the tires for
bicycles from a supplier at a cost of $20 per tire. The company's inventory carrying
cost is estimated to be 15% of cost and the ordering is $50 per order. Compute the

economic order quantity (EOQ). Also calculate the cycle length in days. (20)
(b) Expected cash flows from an investment are as follows. Given the bank interest rate
(cost of capital) of 13%, should you invest in this project by taking loans from the
bank? Make your decision based on evaluating the internal rate of return (IRR). Show

all the required calculations. (15)

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IPE 493
eouid ... Q. No. 2(b)

Table 2 for Question 2(b).

Year Cash Flow ($)
0 -250,000
I 50,000
2 100,000
3 200,000

3. (a) The production scheduler for XYZ Machine Shop has six jobs ready to be
processed that can each be assigned to any of six different workstations. Due to the
characteristics of each job and the different equipment and skills at the workstations,
the time to complete a job depends on the station it is assigned to. Table 3 shows the

data on the jobs and the time it would take to do each job at each workstation. (25)
Table 3 for Question 3(a).
Job Completion Time at Workstation (hours)
Job I 2 3 4 5 6
A 3.2 3.5 2.9 3 4 3.6
B 2.7 2.9 2.3 3 3.1 3.7
C 3.8 4 4.3 4.5 4.1 3.6
0 2.8 2.1 2.9 2.5 3 2.2
E 6.1 6.5 6.7 7 6 6.2
F 1.5 1.3 1.9 2.9 4 3.6
Required:
Using the Hungarian method, assIgn each job to a machine to mU11lTIlzetotal
processing time.
(b) Suppose you are a safety manager of a plastic manufacturing company. You are
asked to find the possible root causes of electrical fire at the factory. How can you

apply the idea of the Fishbone diagram to examine the root causes? (10)

4. (a) A company that operates 10 hours a day manufacturers three products on three

processes. Table 4 summarizes the data. (27)

Table 4 for Question 4(a).
Minutes per unit
Product Process I Process 2 Process 3 Unit price
I 10 6 8 $4.50
2 5 8 10 $5.00
3 6 9 12 $4.00
Required:
Using the Simplex method, determine the optimal product mix to maximize the profit.
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IPE 493
Contd ... Q. No.4

(b) What is a product structure tree? Provide examples. (8)

SECTION -8
There are FOUR questions in this section. Answer any THREE questions.

5. (a) According to Henry Fayol, what are the different skills that managers need to
possess? Explain their variations at different Managerial levels with necessary
example. (6)
(b) List the 14 management principles identified by Henry Fayol with necessary
examples. (14)
(c) Discuss the contributions of Frank and Lillian Gilbreth. (7)
(d) Elaborate Hawthorne experiment. What are the insights obtained from it? (8)

6. (a) Discuss the origin of the 'Management Science School'. Explain how wars like

World War II and Vietnam war influenced this school. (13)

(b) Explain Maslow's need theory with necessary example. (7)
(c) Elaborate Matrix type organizational structure. What are its advantages and
disadvantages? (8)
(d) Briefly explain 'Task technology approach' of organizational design. (7)

7. (a) Discuss five bases of power with necessary examples. (10)

(b) Explain the advantages of delegation. What are the Steps of Delegation? (10)
(c) A company has the following actual demands in units over the 12 months period in
2021. Forecast their demand on January 2022. Use exponential smoothing technique to
forecast. Assume the smoothing constant value to be 0.15. Also calculate the
corresponding MAD, MAPE and TS. (IS)
Months I 2 3 4 5 6 7 8 9 10 II 12
in 2021
Actual 40 39 42 43 36 45 38 40 35 38 42 44
Demand

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IPE 493

8. (a) Discuss 'Reinforcement theory' with necessary examples. (8)

(b) Discuss different types of formal team. What are the stages of team development? (8+7=15)
(c) For a certain industry worker, working in a factory, the following data is given.
Guaranteed base rate = Tk 35 per hour. Total piece to be produced = 500 pieces.
Standard Task = 200 pieces/hour, Low task would be 75% of the standard task. The
worker took 3 hours to complete the job. Percentage of the workers' share in the gain

of above task is 35%. Now, calculate the rate of incentive per hour for that worker- (12)
i. If the company follows Halsey's plan
ii. If the company follows Rowan's plan
L-3ff -2/EEE Date: 2010112021

BANGLADESH UNIVERSITY OF ENGINEERING AND TECHNOLOGY, DHAKA

Ir3rr-2 B. Sc. Engineering Examinations (January 2020 Tcrnl)
Sub: IPE 493 (Industrial Managcmcnt)
Full Marks: 180 Section Marks: 90 Timc: 2 Hours (Sections A + B)
USE SEPARATE SCRIPTS FOR EACH SECTION
Thc figures in thc margin indicate full marks.

SECTION-A
Thcrc are THREE questions in this section. Answcr any TWO.
I. (a) Lockheed Martin, the world's largest weapon and military vehicle manufacturer has just (25)
completed a feasibility study of what to do with the 16,000 tons of wastc it produces evcry
year. Thc company's CEO asked thc board of dircctors, "Why pay anothcr company to dig out
our wastc out of our own landfills and thcn pay another company to put our waste into another
landfill? Why not simply burn the wastc ourselves?" Thus, thc company has decided to build a
10 million dollar incinerator to bum its waste as fucl, and thus saving $2.8 million per year in
gasoline purchascs. Engineers have estimated that after using the incinerator for four years, it
can bc sold to a local power company for $5 million.
(i) Draw thc cash-flow diagram.
(ii) Chcck for multiple IHR. What is the IRR oftllis proposed project?
(iii) If the company's MARR is 15% per year, what is your recommcndation about the
acceptancc of tl,is project?
According to the estimation of thc cngii,ccrs, the salvage value of tl,e plant is $5 million aftcr
four ycars. What is the lowest acccptabic salvagc value to ensure the acceptability of the
projcct?
(b) Bricfly describe the factors that influencc the "valuc of money" with suitable real life (10)
examples.
(c) Briefly describe the relative importance of basic managerial skills for different Icvels of (J 0)
managers.

2. (a) Kiestler GmBH is a local bicycle manufacturer based on Dusseldorf, Germany. They want (25)
to develop a precedencc diagram for the bicycle assembly tasks. The time requirement of these
tasks and thcir scquence of completion arc givcn in the table below. There are 480 productivc
minutes of work available per day in Dusseldorf, Germany. Furthcrmore, the company is
required to produce 40 bicycles pcr working day to satisfy the customcr dcmand.

Tll~k Assembly Time (minutes) Leading I Preceding Task

A 10 ---
B II. A
C 5 B
D 4 B
E 12 A
F 3 C,D
G 7 F
H II E
I 3 G,H

Page Ion
 L-3rr -2/EEE Date: 20101/2021

Required:

(i) Precedence diagram

(ii) Cycle time

(iii) Grouping of the tasks into workstations

(iv) Line efficiency

(b) State and explain the different roles played by the managers according to Henry (I 0)
Mintzberg.

(c) Differentiate betwccn the differential and multiple piece rate incentive plans. Provide (I 0)
suitable examples and write down their relativc advantages and disadvantages.

3. (a) What is the span of management control? How is it important in the context of the (15)

hierarchy of an organization? Describe the factors that influence the span of control.
(b) Differentiate between: (15)

(i) Product and process layout

. (ii) Nominal and effective interest rate

(c) What is the present equivalent of $18,000 to be received in 15 years when the interest rate (8)

is 7% per year compounded .semiannually? What will be the present equivaient if the

compounding is done c01itinuously?

(d) Explain the factors that should be taken into consideration when deciding the right location (7)

for a manufacturing facility. Wllich assnmptions do you make when solving continuous
location problems?

SECTION-B
There arc THREE questions in this section. Answer any TWO.
4. (a) What is the 'Pareto Rule'? How docs this rule help to find out 'Vital Few' and 'Trivial (I 0)
Many' causes? Explain with example.

(b) Aecording to Juran, 100% good quality level may not be of interest to the company in (15)

terms of cost. If this is true, then the 7.cro-defect. concept is not economically beneficial. Do
you agree? JustilY with schematic diagrams.

(c) For the following order table, decide the sequence of jobs to be processed based on (20)
Johnson's Rule. Also, show the jobs' duration in a time frame.

Processing Time (days)

Job Station I Station 2 Station 3
A 7 2 3
B 6 4 2
C 8 5 4
0 9 2 5
E 10 3 7

5. (a) List at least 5 (five) groups/individuals who can conduct performance appraisals. (5)
(b) A rccent study showed that CEOs of suecessful companies have hard-nosed personal traits, (15)
such as persistence, efficiency, attention to detail, and a tendency to set high standards, rathcr

than softer strength, such as teamwork, enthusiasm, and flexibility. How do you explain this in

light of the leadership theories?

Page 2 of3
L-3rr-2/KEE Date: 20/0112021

(c) Hewlett-Packard (HP) builds three computer printcr models: Inkjet, Laser, and Color (25)
Laser. Information for these three products is given in the following table. How do you answer
the following questions?A$.svm.<L ?>-":) y"..l---.e... ~.... -(-.fLo- 17~ ~~-
Inkjet La.~cr Color Laser Total
Selling price
250 400 1600
per unit ($)
Variable cost
100 150 800
per unit ($)
Sales mix (%) 60 30 10 100

(i) How many printers in total lIiust be sold to break even?

(ii) How many units of each printer model must be sold to break even?
(iii) How many printers in total must be sold to cam an annual profit of $1,OOO,OOO?
(iv) How many ullits or cach printcr must bc sold to cam an annual profit of $1,000,0007

6. (a) A company projects its total sales and profits through plans for cxisting businesses. The (10)
projccted sales are less than what management desires. What are the growth opportunities you
will suggest this cOlllpany to explore in order to minimize the gap between projected sales and
desired sales? Explain with suitable cxample.
(b) How dirrerent phases or the Teehnology Life Cycle (TCL) atTect strategic analysis and (15)
investment planning? Explain with suitablc example.
(c) A normally.distributed quality charactcristie is controlled by x and R charts having the (20)
rollowing parametcrs (n = 4, both charts are in control):
R Chart x Chart
UCL= 18.795 UCL =626
Center Line = 8.236 Center Line - 620
LCL-O LCL - 614

(i) WI,at is the estimated standard deviation or thc quality characteristic x?

(ii) Ir specifications arc 61O:C15,eommcnt on process capability by observing thc graphical
distribution and mathematical mcasures.

Page 3 of3
•

Table B. Factors used in 30' Quality Control Charts.

X charts S charts R charts

Sample Factors for control Factors Factors
size n limits for central Factors for control limits for ccntral Factors for controllimils
linc linc
A A2 A) c. 8.1 8.1 Bs 136 th d.l. 01 O2 0.1 D.
2 2.121 1.880 2.659 0.7979 0 3.267 0 2.606 1.128 0.853 () 3.686 0 3.267
3 1.732 1.023 1.954 0.3362 () 2.568 0 2.276 1.693 0.888 0 4.358 0 2.574
4 1.500 0.729 1.628 0.9213 0 2.266 0 2.088 2.059 0.880 0 4.698 0 2.282
5 1.342 0.577 1.427 0.9400 0 2.089 0 .1.964 2.326 0.864 0 4.918 0 2.114
6 1.225 0.483 1.287 0.9515 0.030 1.970 0.029 1.874 2.534 0.848 0 5.078 0 2.004
7 1.134 0.419 1.182 0.9594 0.118 1.882 0.113 1.806 2.704 0.833 0.204 5.204 0.076 1.924
8 1.061 0.373 1.099 0.9650 0.185 1.815 0.179 1.751 2.847 0.820 0.388 5.306 0.136 1.864
9 1.000 0.337 1.032 0.9693 0.239 1.761 0.232 1.707 2.970 0.808 0.547 5.393 0.184 1.816
10 0.949 0.308 0.975 0.9727 0.284 1.716 0.276 1.669 3.078 0.797 0.687 5.469 0.223 1.777
11 0.905 0.285 0.927 0.9754 0.321 1.679 0.313 1.637 3.173 0.787 0.811 5.535 0.256 1.744
12 0.866 0.266 0.886 0.9776 0.354 1.646 0.346 1.610 3.258 0.778 0.922 5.594 0.283 1.717
13 0.832 0.249 0.850 0.9794 0.382 1.618 0.374 1.585 3.336 0.770 1.025 5.647 0.307 1.693
14 0.802 0.235 0.817 0.9810 0.406 1.594 0.399 1.563 3.407 0.763 1.118 5.696 0.328 1.672
en
()
15 0.775 0.223 0.789 0.9823 0.428 1.572 0.421 1.544 3.472 0.756 1.203 5.741 0.347 1.653
OJ 16 0.750 0.212 0.763 0.9835 0.448 1.552 0.440 1.526 3.532 0.750 1.282 5.782 0.363 1.637
::J 17 0.728 0.203 0.739 0.9845 0.466 1.534 0.458 1.5ll 3.588 0.744 1.356 5.820 0.378 1.622
::J
C1l 18 0.707 0.194 0.718 0.9854 0.482 1.518 0.475 1.496 3.640 0.739 1.424 5.856 0.391 1.608
c..
19 0.688 0.187 0.698 0.9862 0.497 1.503 0.490 1.483 3.689 0.734 1.487 5.891 0.403 1.597
:;E
;::+- 20 0.671 0.180 0.680 0.9869 0.510 1.490 0.504 1.470 3.735 0.729 1.549 5.921 0.415 1.585
~ 0.9876 0.523 1.477 0.516 1.459 3.778 0.724
21 0.655 0.173 0.663 1.605 5.951 0.425 1.575
()
OJ 22 0.640 0.167 0.647 0.9882 0.534 1.466 0.528 1.448 3.819 0.720 1.659 5.979 0.434 1.566
3 23 0.626 0.162 0.633 0.9887 0.545 1.455 0.539 1.438 3.858 0.716 1.710 6.006 0.443 1.557
en
() 24 0.612 0.157 0.619 0.9892 0.555 1.445 0.549 1.429 3.895 0.712 1.759 6.031 0.451 1.548 i
OJ 25 0.600 0.153 0.606 0.9896 0.565 1.435 0.559 1.420 3.931 0.708 1.806 6.056 0.459 1.541 I
::J
::J
...•
C1l
330

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