Production and Operations Management-2A


Assignment – A

Q1: Critically analyze and compare the teachings of Edward Deming, David Juran and Philip Crosby.


Q2: For the following demand data, calculate the forecasted values using a smoothing constant of 0.2.

Months Demand
January 40
February 45
March 52
April 57
May 56
June 42
July 41
August 36


Q3: A manufacturer of speakers for musical appliance uses a non destructive testing mechanism to assess the quality of speakers. A lot of 200 speakers is drawn periodically for testing. After testing the speakers will be classified either defective or good depending on outcome of test. The following table gives the number of defects for 12 such samples. Establish “p” and “c” control charts for the process. Is the process under control?

Sample No. Number of Defects
1 20
2 18
3 16
4 22
5 14
6 24
7 14
8 20
9 26
10 24
11 26
12 28


Q4: Write short note on any three of the following.

  1. a) 5-S
  2. b) TQM
  3. c) ISO
  4. d) BPR
  5. e) SQC


Q5: Mr. Pinto wants to set up a new manufacturing plant at a suitable location. He has certain constraints, like shortage of funds, the product cannot be manufactured at moist location, requires plentiful availability of resources, and hassle free transportation services. He has four products in mind that he wishes to manufacture. Suggest a suitable plant location and layout type to Mr. Pinto considering his requirements.



Q6: Derive the formula of Economic Order Quantity (EOQ). Intel Corporation has got a demand for products at 1, 00,000 units per year. The cost per unit is Rs.20/- and it costs Rs. 360/- to place an order and processes the delivery. The inventory carrying cost is estimated at 9% of average inventory investment. Determine-

  1. a) EOQ
  2. b) Optimum number of orders to be placed per annum


Q7: A manufacturing company wants to forecast its demand for the year 2013 using suitable forecasting technique. The data that the company has is for the year 2012. Suggest a suitable method of forecasting and forecast the demand values for the year 2013 and also find out trend equation for the given data.

Months Demand
January 20
February 25
March 22
April 32
May 34
June 42
July 40
August 36


Q8: A manufacturing company has monthly demand for one of its products as follows

Month Demand
Feb 52
March 49
April 55
May 58
June 60
July 42
August 51
September 61

Develop  a 3 – month moving average forecast and a three month weighted average forecast with weights of 0.50,0.30 and0.20 for the most recent demand values in that order


Case Study


Right Fill

A company is manufacturing utensils cleaning liquid. It has a process consisting of a filling machine for filling the 20 ml test bottles. To monitor the quality of the process, samples of size 5 are draw periodically from the process and the quantity filled is measured. The table below has data on 10 such observations.

Sample        1        2        3        4        5

1        9.21   8.87   8.71   9.08   9.34

2        9.06   8.97   9.13   8.46   8.85

3        9.35   8.96   9.20   9.03   8.44

4        9.21   8.71   9.05   9.35   8.87

5        9.01   9.71   9.21   9.05   9.53

6        8.74   8.35   8.50   9.06   8.89

7        9.21   9.05   9.00   8.78   9.23

8        9.15   9.20   9.23   9.15   9.06

9        8.98   8.81   8.90   9.13   9.05

10      9.03   9.10   9.26   9.44   8.48


Assignment – C


Question 1: All are types of plant layout, except–

  1. a) Process layout
  2. b) Product layout
  3. c) Group Technology Layout
  4. d) Jumbled layout

Question 2: Which of the following is not an extrapolative method of forecasting?

  1. a) Moving Average
  2. b) Exponential Smoothening
  3. c) Sales force Estimates
  4. d) Time Series

Question 3: All of the following are quality Gurus except–

  1. a) Philip Kotler
  2. b) Joseph M Juran
  3. c) Philip B. Crosby
  4. d) William E. Deming

Question 4: EOQ stands for

  1. a) Easy Order Quantity
  2. b) Economic Order Quantity
  3. c) Easy Order Quality
  4. d) Economic Order Quantity

Question 5: Who proposed the PDCA cycle?

  1. a) Shigeo Shingo
  2. b) Genichi Taguchi
  3. c) William E. Deming
  4. d) Philip B.Crosby

Question 6: Which one of the following is not a type of Control Chart in Statistical Quality Control?

  1. a) P-chart
  2. b) C-chart
  3. c) F – chart
  4. d) R-chart

Question 7: Which of the following functions is not a core function of an organization?

  1. a) The operations function
  2. b) The marketing (including sales) function
  3. c) The accounting and finance function
  4. d) The product/service development function

Question 8: BPR stands for–

  1. a) Business Process Re-engineering
  2. b) Business Program Re-engineering
  3. c) Business Program Response
  4. d) Business Process Re-alignment

Question 9: Walter Shewhart is listed among the important people of operations management because of his contributions to–

  1. a) Assembly Line Production
  2. b) Measuring the productivity in the service sector
  3. c) Just-in-time inventory method
  4. d) Statistical quality control

Question 10: Henry Ford is noted for his contribution to–

  1. a) Standardization of parts
  2. b) Statistical quality control
  3. c) Assembly line operations
  4. d) Scientific management

Question 11: Taylor and Deming would have both agreed that–

  1. a) Whirlpool’s global strategy is good one
  2. b) Eli Whitney was important contributor to statistical theory
  3. c) c) Management must do more to improve the work environment and its processes so that quality can be improved
  4. d) Productivity is more important than quality

Question 12: Who among the following is associated with contributions to quality control in operations management?

  1. a) Charles Babbage
  2. b) Henry Ford
  3. c) Frank Gilbreth
  4. d) W. Edwards Deming

Question 13: The field of operations management is shaped by advances in which of the following fields?

  1. a) Chemistry & Physics
  2. b) Industrial Engineering & Management Science
  3. c) Biology & Anatomy
  4. d) All of above

Question 14: The five elements in management process are–

  1. a) Plan, direct ,update ,lead and supervise
  2. b) Accounting/finance ,marketing, operations, and management
  3. c) Organize ,plan, control, staff, and manage
  4. d) Plan, lead, organize, manage, and control

Question 15: The responsibilities of operations manager include–

  1. a) Planning, organizing, staffing, procuring, and reviewing
  2. b) Forecasting, designing, planning, organizing, and controlling
  3. c) Forecasting, designing, operating, procuring, and reviewing
  4. d) Planning, organizing, staffing, leading, and controlling

Question 16: All of the following decisions fall within the scope of operations management except for–

  1. a) Financial Analysis
  2. b) Design of products and processes
  3. c) Location of Facilities
  4. d) Quality management

Question 17: Which of the following would not be an operations function in a fast food restaurant?

  1. a) Making Hamburgers & Fries
  2. b) Advertising and promotions
  3. c) Maintaining equipments
  4. d) Designing the layout of the facility

Question 18: Current trends in operations management include all of the following except–

  1. a) Just in time performance
  2. b) Rapid product development
  3. c) Mass Customizations
  4. d) Mass Production

Question 19: Gibson Valves produces cast bronze valves on an assembly line. If 1600 valves are produced in an eight hour shift, the productivity of line is–

  1. a) 2 valves/hr
  2. b) 40 valves/hr
  3. c) 80 valves/hr
  4. d) 200 valves/hr

Question 20: The largest contributor to productivity increase is ——— , estimated to be responsible for——- of the annual increase.

  1. a) Management; one-half
  2. b) Mr. Deming; one-half
  3. c) Labor; two third
  4. d) Capital;90%

Question 21: Which variable is taken along the abscissa or X axis in a p-chart?

  1. a) Time
  2. b) Sample number
  3. c) Proportion of defects
  4. d) Number of defects

Question 22: Which kind of labor force is required in case of Jobbing Production?

  1. a) Highly Skilled
  2. b) Not at all skilled
  3. c) Moderately skilled
  4. d) Skilled

Question 23: 5-S are all, except–

  1. a) Tidiness
  2. b) Cleanliness
  3. c) Discipline
  4. d) Timeliness

Question 24: PPC stands for–

  1. a) Production Planning and Controlling
  2. b) Production Procurement and Controlling
  3. c) Planning Procurement and Controlling
  4. d) Procurement Planning and Controlling

Question 25: Most operations produce a mixture of both products and services. Which of the following businesses is closest to producing “pure” services?

  1. a) A restaurant
  2. b) A steel company
  3. c) Counselor/Therapist
  4. d) IT Company

Question 26: Operations can be classified according to the degree of variation in demand and visibility of the operation as well as their volume and variety of production. Which of the following operations would be classified as high variation and high visibility?

  1. a) A Fast Food Restaurant
  2. b) A Family Doctor
  3. c) A Front Office of Bank
  4. d) A Carpenter

Question 27: Range is calculated in which of the following control chart?

  1. a) R Chart
  2. b) F Chart
  3. c) C Chart
  4. d) P Chart

Question 28: Which of the following is not a typical service attribute?

  1. a) Intangible product
  2. b) Easy to Store
  3. c) Customer Interaction is high
  4. d) Simultaneous production & consumption

Question 29: The Dulac Box plant produces 500 cypress packing boxes in 10 hour shift. Due to higher demand company decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes a day. What has happened to production?

  1. a) Increased by 50 boxes/shift
  2. b) Increased by 37.5 boxes/hr
  3. c) Increased by 20%
  4. d) Decreased by 8.3%

Question 30: Three commonly used productivity variables are–

  1. a) Quality, External Elements, Precise Units of measure
  2. b) Labor, Capital, Management
  3. c) Technology, Raw Materials, Labor
  4. d) Education, Diet, Social Overheads

Question 31: Productivity can be improved by–

  1. a) Increasing inputs while holding outputs steady
  2. b) Decreasing outputs while holding inputs steady
  3. c) Increasing inputs and outputs in same proportion
  4. d) Decreasing inputs while holding outputs steady

Question 32: Who prepares the daily production report?

  1. a) Floor supervisor
  2. b) Shop supervisor
  3. c) Cleaner
  4. d) Distributor

Question 33: Work study is also called———- study.

  1. a) Time
  2. b) Time & Motion
  3. c) Method
  4. d) Motion

Question 34: The ratio of output to input of a production system is commonly known as–

  1. a) Productivity
  2. b) Process
  3. c) Parts
  4. d) Planning

Question 35: ISO stands for–

  1. a) Indian Standards Organization
  2. b) International Organization for Standardizations
  3. c) International Organization for Standards
  4. d) Indian Statistical Organization

Question 36: Which one of the following would not normally be considered a general characteristic of service?

  1. a) Low contact services can often be made more efficient than high contact services.
  2. b) Production & Consumption are simultaneous
  3. c) Production and sales cannot easily be separated functionally
  4. d) Production & Consumption can always be spatially separated

Question 37: The——— is the probability that a good lot will be rejected by the sampling plan.

  1. a) Producer’s Risk
  2. b) Consumer’s Risk
  3. c) Manufacturer’s Risk
  4. d) Seller’s Risk

Question 38: The —– is the defect level for which lots are regarded as bad lots.

  1. a) LTPD
  2. b) ATPD
  3. c) LPTD
  4. d) LPDT

Question 39: Which of the following is the least likely decision to be made by Operations Manager?

  1. a) Designing & improving the jobs of the workforce
  2. b) Deciding which market areas to manufacture products for
  3. c) How to use quality techniques to reduce waste
  4. d) Selecting the location and layout of a facility

Question 40: Which of the following would not be normally considered as key feature of Operations Management?

  1. a) World Class Operations can give an organization a competitive advantage
  2. b) Operations is the area of a business where most people work
  3. c) Operation researches mathematical techniques for optimizing processes
  4. d) Operations is the part of an organization which creates wealth through the management of transformation process