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Institute of Management Technology

Centre for Distance Learning A16, Site 3, UPSIDC Industrial Area, Meerut Road, Ghaziabad - 201 003

Subject Code: IMT-99 Subject Name : PRODUCTION PLANNING & CONTROL Notes: a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts. b. Answers of Ist Set (Part-A & Part-B), IInd Set (Part-C, Part-D), IIIrd Set (Short Answer Questions) and Case Study must

be sent together. c. Mail the answer sheets alongwith the copy of assignments for evaluation & return. d. Only hand written assignments shall be accepted.

A. First Set of Assignments: Part-A : 2.5 Marks & Part-B : 2.5 Marks. Each question carries 0.5 marks. B. Second Set of Assignments: Part-C : 2.5 Marks & Part-D : 2.5 Marks. Each question carries 0.5 marks. C. Third Set of Assignments: 20 Short Answer Questions : 5 Marks. Each question carries 0.25 marks.

Confine your answers to 150 to 200 Words. D. Forth Set of Assignments: Two Case Studies : 5 Marks. Each case study carries 2.5 marks.

ASSIGNMENTS

PART– A

1. What is production planning ? What are its objectives and scope. 2. What are the various production systems ? Describe the characteristics, merits and demerits of each

system. 3. There are two methods of processing oil at a refinery. Method 1 has fixed costs of Rs. 9,00,000

whereas the fixed cost for Method 2 are 11,00,000. The variable costs depend on the chemicals used and heating requirements. These are Rs. 1.50 and Rs. 1.00 per barrel respectively. Which method is more economical ?

4. What is aggregation production plan ? Discuss the pure strategies and the mixed strategy in aggregate

planning. 5. Write short notes on :-

(a) Flexible Manufacturing System.

(b) Acceptance Sampling Techniques.

(c) Capacity Planning.

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PART– B

1. What is production planning and control. Discuss it’s objectives and scope. 2. What do you understand by product layout and process layout ? Compare the advantages and

disadvantages of these layouts. 3. (a) Explain the methodology and assumptions for sequencing ‘n’ jobs through three machines A, B

and C in prescribed order ABC for each job.

(b) There are seven jobs to be processed through three machines M1, M2 and M3 in that order. The processing time for each job in hours is given in the table. Sequence these jobs using Johnson’s method and find the overall processing time and idle times for the three machines :-

4. Differentiate the following :-

(a) Flow shop vs job shop characteristics.

(b) Make-to-stock vs Make-to-order.

(c) Aggregate planning & Master Production Schedule 5. Alpha Electronic Company produces 2000 TV sets in a year for which it needs an equal number of

tubes of certain type. Each tube costs Rs. 10/- and the cost to hold a tube in stock for a year is Rs. 2.40 / unit / annum. Besides, the cost of placing an order is Rs. 150/- per order. The number of working days in the company is 250 and the lead time is 15 working days. Determine :-

(a) Economic Order Quantity.

(b) Re-order level.

(c) Annual total variable cost.

(d) Inventory cycle time.

(e) Monetary value of optimal order quantity.

(f) Rupee value of average inventory.

Job M1 M2 M3 A 1 7 8 B 3 3 10 C 7 8 9 D 9 2 11 E 4 8 9 F 5 6 14 G 2 1 12

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PART – C

1. What are the characteristics of product design ? 2. Define method study. Discuss the steps involved in method study. 3. Determine optimum production rates for the next four quarters. The forecast demands are 2200, 2700, 2300 and 2500 units and a final inventory of 500 units is desired at the end of fourth quarter. The following information is available from the Company’s record :- (a) Current inventory level = 200 units

(b) Current work force = 700 workers

(c) Inventory holding cost = $ 75 / unit / quarter

(d) Back order cost = $ 125 / unit / quarter

(e) Hiring cost = $ 1500 / person

(f) Lay off costs = $ 1600 / person

(g) Regular time payroll cost = $ 10 / hour

(h) Overtime payroll cost = $ 15 / hour 4. (a) In a manufacturing company, what are the various types of inventories and inventory related

costs.

(b) Derive the Economic Order Quantity Formula and the assumptions made.

5. Write notes on any three :-

(a) Dependent vs independent demand

(b) Produce-to-stock vs produce-to-order.

(c) Lean manufacturing system.

(d) Selective approaches to inventory control.

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PART– D

1. What is JIT ? Discuss it’s benefits. 2. What is Total Quality Management ? Discuss AOQL. 3. Explain variable and attributes control charts. 4. What is Value Engineering ? Discuss the various steps involved in it. 5. A small project consists of eight activities and has following characteristics:-

Time Estimate (in weeks) Activity Preceding

Activity Most optimistic (to)

Most likely (te)

Most pessimistic (tp)

A -- 2 6 12 B -- 10 12 26 C A 8 9 10 D A 10 15 20 E A 7 7.5 11 F B,C 9 9 9 G D 3 3.5 7 H E,F,G 5 5 5

(i) Draw the network and determine the critical path.

(ii) Find the float for all the activities.

(iii) If a 30 week deadline is imposed, what is the probability that the project will be completed on time ?

(iv) If the project manager wants to be 99% sure that the project will be completed on the scheduled date, how many weeks before that date should he start the project work ?

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SHORT ANSWER QUESTIONS

1. Work measurement and activity sampling. 2. Automation in Production and flexible manufacturing systems. 3. Role of computers in design of layout. 4. ABC Analysis. 5. Assumptions made in Linear programming. 6. Discuss MRP. What are the inputs and outputs. 7. JIT and Kanban systems. 8. ISO 9000 series and 14000 series. 9. Seven basic quality tools. 10. Standardisation and variety reduction. 11. Applications of linear programming in production. 12. Intermittent flow process, their advantages and disadvantages. 13. Designed capacity, rated capacity and Effective capacity. 14. Fixed position layout and it’s characteristics. 15. Quality Circles and Control Charts. 16. Two basic questions to be answered in an inventory control system. Discuss. 17. Unbalanced transportation problem. 18. Calculate the reliability of an automated production system with three operations; turning, milling and

grinding. Individual parts are transferred from one operation to next operation by a robot, thus if one machine or robot fails, the entire production process must stop. The reliability of robot, turning centre, milling machine and grinder are : 0.99, 0.98, 0.99 and 0.96 respectively.

19. Using the following cost matrix, determine (a) optimal job assignment and (b) the cost of assignment.

Job Machinist 1 2 3 4 5 A 10 3 3 2 8 B 9 7 8 2 7 C 7 5 6 2 4 D 3 5 8 2 4 E 9 10 9 6 10

20. What are the differences between transportation and assignment problems?

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CASE STUDY-1 An electric company manufactures both ceiling and table fans. Resource requirements for both these items are indicated below :-

Product Type Labour Hour per Unit Raw Material per Unit (kg) Profit per Unit (Rs)

Table Fan 2 8 80

Ceiling Fan 4 6 100 The company can make available 80 hours of labour and 240 kgs of raw materials. How many table and ceiling fans should be produced in a day to maximise profit? Solve the problem using linear graph and ISO – profitlines.

CASE STUDY-2

Jaycee Industries manufactures Radios. The company wishes to make approximately 290 radios per day. The following table lists all basic tasks performed along the assembly line.

Task Operation Time (min) Immediate Preceding Tasks

A B C

0.20 0.30 0.40

-- A A

D E F G

0.60 0.80 0.80 0.60

B,C -- E

D,E

H I J K

1.20 1.20 1.00 1.90

F,G H I J

Total 9.00 The shop operates five days per week and two shifts per day. The company provides two coffee breaks of ten minutes each during an eight hour day.

(a) Group the activities into the most efficient arrangement.

(b) What is the cycle time of your arrangement?

(c) What is the balance delay and percentage?