VALLIAMMAI ENGINEERING COLLEGE

SRM Nagar, Kattankulathur 603 203

DEPARTMENT OF MANAGEMENT STUDIES

QUESTION BANK

II SEMESTER

BA7201 OPERATIONS MANAGEMENT

Regulation 2013

Academic Year 2016 17

Prepared by

Mr. K.Suresh Asst. Professor

Mr.V. T. Baalaji Amuthan Asst. Professor

 VALLIAMMAI ENGINEERING COLLEGE
SRM Nagar, Kattankulathur 603 203.

DEPARTMENT OFMANAGEMENT STUDIES

QUESTION BANK
SUBJECT : BA7201 OPERATIONS MANAGEMENT
SEM / YEAR: IInd Semester / Ist Year

UNIT I - INTRODUCTION TO OPERATIONS MANAGEMENT

SYLLABUS: Operations Management Nature, importance, Historical Development,
Transformation Process, Differences between Services and Goods, A system perspective, functions,
challenges, current priorities, Recent Trends; Operations Strategy Strategic Fit, Framework; Supply
Chain Management
PART- A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 Define Operations strategy. Level 1 Remembering
Can you explain what is meant by control
2 Level 2 Understanding
decision?
List the major components of a production
3 Level 3 Applying
system.
4 State the elements of operation management? Level 4 Analysing
5 Discuss the concept of competitive priorities. Level 5 Evaluating
Interpret the bottleneck in operations
6 Level 6 Creating
management.
7 What is production system? Level 1 Remembering
What facts show the historical development in
8 Level 2 Understanding
operation management?
9 Identify the importance of production system. Level 3 Applying
10 What is the nature of operation management? Level 4 Analysing
11 Define the concept of a value chain. Level 5 Evaluating
Interpret the transformation process in
12 Level 6 Creating
operation management.
13 Define the term production sharing. Level 1 Remembering
14 Compare service and goods. Level 2 Understanding
How would you show your understanding of
15 Level 3 Applying
the term system perspective?
16 What is meant by Supply chain management? Level 4 Analysing
17 What are current priorities? Level 1 Remembering
18 Can you explain production function? Level 2 Understanding
19 What is Operations Management? Level 1 Remembering
20 What is lean production? Level 1 Remembering
 PART- B
S.NO QUESTIONS BT LEVEL COMPETENCE
How would you explain the historical development of
1 Level 1 Remembering
operations management?

2 Discuss in detail about supply chain management. Level 2 Understanding

How would you show your understanding on the charact

3 Level 3 Applying
eristics of modern production and operation function?
Can you list the four different basic types of
4 Level 4 Analysing
manufacturing process?
What evidence can you find for the role of operations in
5 Level 5 Evaluating
strategic management?
Evaluate the issues in operations strategy. Also explain
6 Level 6 Creating
the process of operations in strategy formulation.
How would you describe the characteristics of modern
7 Level 1 Remembering
operation system?

With illustration from India and international context

8 enumerate the recent trends in production and operations Level 2 Understanding
management.

a) Explain the various elements for adopting operation

strategy in a manufacturing firm. (8Marks)
9 Level 3 Applying
b) Give a distinction between services & goods?
(5Marks)

Define production system. Explain how the concept of

10 production system helps in understanding of production Level 4 Analysing
and operations management.

a) What is meant by Operations Management?

(5Marks)
11 Level 1 Remembering
b) Explain in detail how the internet has changed the
fundamental way of doing business (8Marks)

a) Describe the characteristics of Products and

Services(5Marks)
12 Level 2 Understanding
b) Briefly describe the differences between products
and services with suitable examples.(8Marks)

In todays global environment scenario the nature of

13 operations management in any country is similar to Level 4 Analysing
International Operations Management Comment

Enunciate the role of operations in Strategic

14 Level 1 Remembering
Management.
 PART - C
S.No Questions
The XYZ Co. operates an assembly line for electric refrigerators with eight stations. The
line has been set up for a daily output of 240 for one 8 hour shift.
(i) What is the allowed maximum cycle time per work station for this assembly line?
1 (ii) What is the efficiency of the third work station responsible for a set of tasks
requiring 1.5 minutes?
(iii) What will be the effect on the allowed maximum cycle time per work station if the
output rate is increased to 360 units /day?
Assume you are running a Detergent manufacturing company. Design a supply chain
2
network for effective distribution of Detergents in the markets
How would you show the transformation process of an MBA institution, which is purely
3
a service organization?
Can you develop an appropriate manufacturing strategy in any organization which
4
involves a sequential and structured set of activities?
 UNIT - II FORECASTING, CAPACITY ANF FACILITY DESIGN
SYLLABUS: Demand Forecasting Need, Types, Objectives and Steps. Overview of Qualitative
and Quantitative methods, Capacity Planning Long Rage, Types, Developing Capacity
Alternatives, Overview of Sales and Operations Planning. Overview of MRP, MRP II and ERP.
Facility Location Theories, Steps in Selection, Location Models, Facility Layout Principles,
Types, Planning Tools and Techniques
PART - A
S.NO QUESTIONS BT LEVEL COMPETENCE
1 Define capacity requirement planning. Level 1 Remembering
Compare mean absolute deviation (MAD) and mean
2 Level 2 Understanding
squared error (MSE).
3 How would you use tracking signal in forecasting? Level 3 Applying

4 What is the theme of Bill of materials? Level 4 Analysing

Can you elaborate on the reason why forecast is needed
5 Level 5 Evaluating
?
6 How could you justify capacity utilization? Level 6 Creating

7 Define aggregate planning. Level 1 Remembering

Differentiate material requirement planning with enterpr
8 Level 2 Understanding
ise resource planning.
9 Identify the different facility location models. Level 3 Applying

10 What is a basestock system? Level 4 Analysing

11 Define the unit load concept. Level 5 Evaluating

12 What can you say about demand forecasting? Level 6 Creating

13 How would you use planning tools and techniques? Level 1 Remembering

14 What is the theme of cellular layout? Level 2 Understanding

15 Can you explain FMS? Level 3 Applying

16 What is your opinion of operations planning? Level 4 Analysing

17 Define MRP II. Level 1 Remembering

18 Compare MRP I and MRP II. Level 2 Understanding

19 What are the inputs of MRP system? Level 1 Remembering

20 What is facility location? Level 1 Remembering

S.NO QUESTIONS BT LEVEL COMPETENCE
1 How would you show the evolution of MRP and ERP? Level 1 Remembering

2 What can you say about MRP II? Level 2 Understanding

a) How would you explain the types of capacity?
(6Marks)
b) Alpha company has the following sales pattern.
(7Marks)
3 Year 1 2 3 4 5 6 7 8 9 Level 3 Applying

Sales in Lakhs 6 8 11 23 29 34 40 45 56
Compute the sales forecast for the 10th Year
a) How would you use the different alternatives for
4 capacity development? (5Marks) Level 4 Analysing
b) How would you classify the facility layout?(8Marks)
a) A steel plant has a design capacity of 50,000 tons of
steel per day, effective capacity of 40,000 tons of steel
per day an actual output of 36,000 tons of steel per day.
5 Compute the efficiency of the plant and its utilization. Level 5 Evaluating
(8Marks)
b) How would you explain the problems in
implementing ERP?(5Marks)
How would you describe the capacity requirement
6 Level 6 Creating
planning? Explain with suitable example.
Give a detailed account on Material Requirement
7 Level 1 Remembering
Planning
A company has to decide on the location of a new plant.
It has narrowed down the choice to 3 locations A,B and
C data in respect of which is furnished below:
Locations
Data A B C
(Rupees) (Rupees) (Rupees)
Wages and Salaries 20000 20000 20000
Power and Water
20000 30000 25000
Expenses
Raw Materials and
80000 75000 60000
Other Supplies
8 Total Initial Level 2 Understanding
200000 300000 250000
investment
Distribution
50000 40000 60000
Expenses
Miscellaneous
40000 25000 30000
Expenses
Expected Sales Per
225000 250000 225000
Year

Use a suitable criterion and advise the company on the

best choice.
 A) Past data about the load on the stamping center are
as follows:

9 Level 3 Applying
i. Find the exponential smoothing forecast for the
month of December 2009. Take (a=0.33)
(4Marks)
ii. Compare your answer with five months moving
average forecast.(4Marks)
B) How would you classify the various types of
demand forecasting and explain in detail any two
qualitative and quantitative methods of demand
forecasting? (5Marks)
A) What factors should be considered when selecting the
appropriate capacity? How does the choice of capacity relate
to other decision in operation management and to other
10 Level 4 Analysing
functional areas? (6Marks)
B) Can you assess the principles and techniques of facility
layout? (7Marks)
State the factors which should be kept in mind while
11 Level 1 Remembering
deciding upon a suitable type of plant layout.

Explain various functions of Production Planning and

12 Level 2 Understanding
Control

13 Explain Capacity Requirements Planning with suitable Level 4 Analysing

example.
14 Explain MRP I and MRP II Level 1 Remembering
 PART - C
S.No Questions
A TV assemble unit has 5 work stations whose individual capacities per shift are given below.
1 The capacity of the assembly line is 350 TVs per day of single shift. Calculate the system
capacity and system efficiency?

2 During which type of situations do you decide to improve or modify the existing layout?

A department works on 8 hours shift, 250 days a year and has the usage data of a machine
as given below:

Determine the number of machines required.

Arun Exports limited is a major garment export house based at New Delhi. The sales
figures (in 1000units) of a particular garment during the past 20 weeks are given in table
below:

4 (i) Calculate the three week moving average22 forecast for the given 20 weeks and also
forecast the demand for 21st week. (5Marks)
(ii) Calculate the weighted moving average forecast for the given 20 weeks with the
weights being W1 =1, W2 =2 and W3 =3. And also forecast the demand for 21st
week.(5Marks)
(iii) Find the simple exponential smoothing forecast for all the 20 weeks and also
forecast the demand for 21st week. Assume = 0.2 and F1 =21.(5Marks)
 UNIT III DESIGN OR PRODUCT, PROCESS AND WORK SYSTEMS
SYLLABUS: Product Design Influencing Factors, Approaches, Legal, Ethical and Environmental
Issues. Process Planning, Selection, Strategy, Major Decisions. Work Study Objectives,
Procedure. Method Study and Motion Study. Work Measurement and Productivity Measuring
Productivity and Methods to improve Productivity
PART - A

S.NO QUESTIONS BT LEVEL COMPETENCE

1 Define productivity. Level 1 Remembering

2 Differentiate micro motion study with motion study. Level 2 Understanding

3 Identify the main purpose of motion study. Level 3 Applying

4 What is the theme of line balancing? Level 4 Analysing

5 Discuss the concept of aesthetics. Level 5 Evaluating

Interpret concept of mass customization with real life e
6 Level 6 Creating
xamples
7 Define work study. Level 1 Remembering

8 What is meant by work measurement? Level 2 Understanding

List some of the influencing factors for designing a new
9 Level 3 Applying
product
10 What conclusion can you draw from flow process chart? Level 4 Analysing

11 Discuss the concept of partial productivity. Level 5 Evaluating

12 Interpret the criterion for Make or Buy decision. Level 6 Creating

13 Define method study. Level 1 Remembering

14 Compare method study and work measurement. Level 2 Understanding

How would you show your understanding of the term
15 Level 3 Applying
product design?
How would you categorize the methods to improve prod
16 Level 4 Analysing
uctivity for training?
17 What do you mean by simultaneous engineering? Level 1 Remembering

18 Compare agglomerative and deglomerative factors. Level 2 Understanding

19 What is SIMO chart? Level 1 Remembering

20 What are therbligs? Level 1 Remembering

S.NO PART - B QUESTIONS BT LEVEL COMPETENCE
How would you explain process planning? Distinguish
1 Level 1 Remembering
between Standardization and Simplification.

Demonstrate the process selection with a suitable

2 Level 2 Understanding
example.

What facts would you select to show the legal, ethical and
3 Level 3 Applying
environmental issues in product design?

Examine the various approaches and influencing factors

4 Level 4 Analysing
in deciding the product design.

What conclusions can you draw from the work

5 measurement in industrial settings? Also explain the Level 5 Evaluating
process of work measurement.
a) How would you evaluate the steps in developing a
new product?
6 Level 6 Creating
b) What are the key differences between a prototype and
a production design?

Define productivity and discuss the methods to improve

7 Level 1 Remembering
productivity.

Can you explain the relationship between Method Study

8 Level 2 Understanding
and Time study?
a) How would you show your understanding of Inter
relationship of process design & product design?
9 Level 3 Applying
b) Can you make a distinction between the methods of
time study to the method of work sampling?
How would you explain the different techniques of work
10 Level 4 Analysing
study?
a) Explain Product Design and the characteristics of a
11 good product design Level 1 Remembering
b) Discuss the various issues in product design
a) What is meant by Productivity and how is it
measured?
12 Level 2 Understanding
b) Discuss the importance and factors influencing
productivity
a) Discuss the steps involved in Process Planning
b) Describe the generic Product development process
13 Level 4 Analysing
and how does the process change from technology
push products
a) Explain the procedure for Work Study
14 b) State the advantages and disadvantages for work Level 1 Remembering
study
 PART - C
S.No Questions
A component is to be processed on two machines lathe and milling machine. The sequence of
operation is first turning and then milling. Machine Times: Turning: 12 minutes
Milling: 20 minutes
1
a) Estimate the number of machines required to machine 2500 components per week if
available machine hours per week are 48.
b) What are the steps that you propose to reduce number of machines?
2 Prepare a flow process chart for a hospital admission procedure for surgery.
An industrial engineer, deputed to conduct a time study for a job, has, after observation,
divided the job into 5 elements. He had noted the timings for four cycles of the job as below:

3 a) Are there any outliers in the data i.e. probable errors in reading or recording data which
should not be included in the analysis?
b) Compute the basic time for the job and the standard time if a relaxation allowance of
12%, a contingency allowance of 3% and an incentive of 20% are applicable for the job.
A work study practitioner who conducted a work sampling study assesses the activity level of
a worker to be 70%. During the space of 8 hours working, this worker turns out 320
4
components. If the company policy is to inflate the normal time arrived at by work sampling
study by 20% what should be the allowed per unit?
 UNIT - IV MATERIALS MANAGEMENT
SYLLABUS: Materials Management Objectives, Planning, Budgeting and Control. Purchasing
Objectives, Functions, Policies, Vendor Rating and Value Analysis. Store Management Nature,
Layout, Classification and Coding. Inventory Objectives, Costs and Control Techniques. Overview
of JIT
PART - A

S.NO QUESTIONS BT LEVEL COMPETENCE

1 Define Just In Time and list the objectives of JIT. Level 1 Remembering

2 Explain the purpose of studying materials management. Level 2 Understanding

3 How would you use VED analysis? Level 3 Applying

4 Can you list the three vendor rating techniques? Level 4 Analysing

5 What are the reasons for stocking items in Inventory? Level 5 Evaluating

6 Explain material planning. Level 6 Creating

7 How would you explain KANBAN in JIT? Level 1 Remembering

8 What can you say about vendor/performance rating? Level 2 Understanding

9 How would you apply the steps in lean manufacturing? Level 3 Applying

10 Why do you think JIT is needed in manufacturing? Level 4 Analysing

11 List the components of Inventory Carrying Cost? Level 5 Evaluating

12 What is meant by Store Layout? Level 6 Creating

13 How would you explain centralized buying? Level 1 Remembering

14 Explain materials management manual. Level 2 Understanding

15 How would you use FSN analysis? Level 3 Applying

What is the relationship between the push and pull
16 Level 4 Analysing
methods of material flow?
17 Define the term Reorder point. Level 1 Remembering

18 What is meant by ABC analysis? Level 2 Understanding

19 Define value analysis. Level 1 Remembering

20 What is meant by Vendor Rating? Level 1 Remembering

S.NO PART - B QUESTIONS BT LEVEL COMPETENCE

1 How would you explain inventory control techniques? Level 1 Remembering

Can you explain the principles and factors affecting

2 layout of stores? What are the various records used in Level 2 Understanding
stores?

How would you use objectives of integrated materials

3 Level 3 Applying
management?

What conclusions can you draw from selective inventory

4 Level 4 Analysing
control?

What are the objectives, functions and policies of

5 Level 5 Evaluating
purchasing?

How could you determine waste in production and what

6 are the characteristics, basic elements, benefits & Level 6 Creating
limitations of JIT?

a) How would you describe the steps involved in value

7 analysis? Level 1 Remembering
b) What are the criteria used for selection of vendors?
a) How would you explain materials management
8 information systems (MMIS)? Level 2 Understanding
b) Also explain the functions of MMIS.
a) What facts would you select to show the different
motives for holding the inventories and also explain
9 the cost associated with inventories? Level 3 Applying
b) Can you list and explain the various selective
inventory control techniques?

10 Can you explain the vendor rating techniques? Level 4 Analysing

a) Explain in detail the procedure to carry out Value

11 Analysis Level 1 Remembering
b) State the Pros and Cons of Value Analysis

a) Give a detailed outline on Purchasing procedure

12 b) Give a brief note on Centralized and Decentralized Level 2 Understanding
Purchasing
a) What is selective inventory control?
13 b) State the procedure applicability and process of Level 4 Analysing
Selective Inventory Control.
Briefly enunciate the objectives, nature and importance
14 Level 1 Remembering
of Inventory Management with real world example
 PART - C
S.No Questions
As a purchase manager of an X company, what factors do you consider to evaluate the
1
vendors?
2 When a company has to apply value analysis and how to apply it?

3 Assume you are a storekeeper of a textile unit. What are your roles and responsibilities?

a) Ashish keeps his inventory in special containers. Each container occupies 10 square feet
of store space. Only 5,000 square feet of the storage space is available. The annual demand
for the inventory item is 9,000 containers, priced at rupees 8 per container. The ordering
cost is estimated at rupees 40 per order and the annual carrying costs amount to 25% of
the inventory value. Would you recommend to Ashish to increase his storage space? If
4
so, how much should be the increase? (8 Marks)

b) A Company uses annually 12,000 units of raw material costing rupees 1.25 per unit.
Placing each order costs rupee 15 and the carrying cost 15% per year per unit of the
average inventory, find the economic order quantity. (7 Marks)
 UNIT - V SCHEDULING AND PROJECT MANAGEMENT
SYLLABUS: Project Management Scheduling Techniques, PERT and CPM; Scheduling Work
Centres- Nature, Importance; Priority Rules and Techniques, Shop floor Control; Flow Scheduling
Johnsons Algorithm Gantt Charts; Personnel Scheduling in Services
PART - A

S.NO QUESTIONS BT LEVEL COMPETENCE

1 Define project and project management. Level 1 Remembering

How would you compare forward scheduling and backw
2 Level 2 Understanding
ard scheduling?
3 What is the purpose of PERT? Level 3 Applying

4 State the objectives of project management? Level 4 Analysing

5 How will you estimate expected time in PERT network? Level 5 Evaluating
Can you assess the tasks that project team must per
6 Level 6 Creating
form before the project begins?
7 Define PERT. Level 1 Remembering

8 List the differences between CPM and PERT Level 2 Understanding

9 How would you use Gannt chart? Level 3 Applying

What inference can you make from the assumptions of
10 Level 4 Analysing
flow shop scheduling?
11 State the nature and importance of scheduling? Level 5 Evaluating
How would you determine the scheduling function of a
12 Level 6 Creating
production system?
13 Define Shop floor control. Level 1 Remembering
What can you say about free float, independent float and
14 Level 2 Understanding
total float?
15 What approach would you use to show routing? Level 3 Applying

16 Can you list the ways of scheduling work centers? Level 4 Analysing

17 Define Johnsons rule. Level 1 Remembering

18 What is the main idea of Slack? Level 2 Understanding

19 What is load leveling? Level 1 Remembering

20 What is critical path method (CPM)? Level 1 Remembering

S.N
Part - B Questions BT Level Competence
o
How do you explain PERT and CPM? State the
1 Level 1 Remembering
differences between PERT and CPM?
Can you explain the heuristic sequencing rules for
2 Level 2 Understanding
scheduling production with examples?
What ways would you use to explain personnel scheduling in
3 Level 3 Applying
services?
In a factory, there are six jobs to perform, each of which should
go through two machines A and B, in the order AB. The
processing timing (in hours) for the jobs is given here. You are
required to determine the sequence for performing the jobs that
would minimize the total elapsed time, T. What is the value of
T?

4 Level 4 Analysing

5 Can you construct the project management process? Level 5 Evaluating

How would you determine the different scheduling

6 Level 6 Creating
techniques in project management?

What do you mean by priority rules for job sequencing?

7 Level 1 Remembering
What are the objectives of sequencing?

8 Explain the steps in PERT planning process. Level 2 Understanding

A) Five jobs are to be completed on first, second and third
machine in that order. Find the sequence of the jobs that
minimizes the total elapsed time to complete the jobs.

9 Level 3 Applying

B) How would you classify the different types of Gantt

Chart
 How can you explain the following terms
(i) Active schedule
10 (ii) Semiactive schedule Level 4 Analysing
(iii) Nondelay schedule and
(iv) Gantt chart.

11 Discuss the Project Management Process Level 1 Remembering

i) Explain Crashing in Project Network.

12 ii) Differentiate between Resource Leveling and Resource Level 2 Understanding
Allocation

i) Compare PERT and CPM

13 ii) Explain material flow system and patterns in facility Level 4 Analysing
layout and give their characteristics

Describe how to calculate

14 i) Earliest Finish and Latest Finish Time Level 1 Remembering
ii) Earliest Start and Latest Start Time
 PART - C
S.No Questions

Horizontal bar charts and other charting techniques offers operation managers macro
1
control of projects, whereas CPM and PERT offers microcontrol. Explain.

Repair work on a flood control dam will require completion of the activities indicated by
the network. Optimistic, most likely and pessimistic estimates (a, m, b) for activity duration
(in weeks) due to weather uncertainty are shown along the activity arrows.
(i) Prepare a table showing for each activity early and late start and finish times and total
2
float.
(ii) Determine the critical path for the project.
(iii) Calculate the probability that the flood control dam will be ready not later than 2 week
from its expected completion time
Consider the tasks, durations, and predecessor relationships in the following network. Draw
the network and answer the questions that follow.

(i) What is the variance for activity B?

(ii) Based on the calculation of estimated times, what is the critical path?
(iii) What is the estimated time of the critical path?
(iv) What is the probability of completion of the project before week 42?
A small project consists of seven activities for which the relevant data are given below:

i) Draw the network and find the project completion time.

ii) Calculate total float for each activity.