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OPERATION
MANAGEMENT
Q1.
What are the advantages and limitations of planning?
(10 marks)
Q2.The CoolTech Co. produces various types of fans. In May, the company produced 1728 window fans at a standardprice of 40 MU. The Co. has 12 direct labour employees whose compensation (including wages and fringe benefits)amounts to 21 MU/hour. During May, window fans were produced on 9 working days 9of 8 hours each) and otherproducts were produced on other days. a. Determine the productivity of the window fans. b. In June, the CoolTechCo. produced 1 730 fans in 10 working days. What is the percentage in labour productivity of windows from May?
(10 marks)
Q3.
Mr. Ilhan DALCI makes billiard balls in his Beyarmudu plant. With a recent increase in taxes, his costs have gone upand he has a newfound interest in efficiency. Mr.Dalci is interested in determining the productivity of his organisation.He would like to know if his organisation is maintaining the manufacturing average of 3% increase in productivity. Hehas the following data representing a month from last year and an equivalent month this year.__________________Last year Now Units produced 1 000 1 000 Labour (hours) 300 275 Resin (kg.s) 50 45 Capitalinvested (MU) 10 000 11 000 Energy (BTU) 3 000 2 850 Show the productivity change for each category and then
determine the IMPROVEMENT for labor
hrs, the typical standard for comparison. (10
marks)
Q4.Ilhan’s, a local bakery, is worried about increased costs – particularly energy. Last year’s records can provide a fairly
good estimate of the parameters for this year. Ilhan Balci, the owner, does not believe things have change much, buthe did invest an additional 3 000 MU for modifications to the bakery’s ovens to make them more energy efficient. Themodifications were supposed to make the ovens at least 15 % more efficient. I. Balci has asked you, as a brilliantgraduate of EMU, to check the energy savings of the new ovens and also look over other measures of the bakery’sproductivity to see if the modifications were beneficial. You have the following data to work with: Last Year NowProduction (dozen) 1 500 1 500 Labour (hours) 350 325 Capital Investment (MU) 15 000 18 000 Energy (kwhrs) 3
000 2 750 (10 marks)
Q5.
Haldun LOP, the production manager of LOP Chemicals, in Gazimagusa, TRNC, is preparing his quarterly reportwhich is to include a productivity analysis for his department. One of the inputs is production data prepared byMeltem SERIN, his operation analyst. The report, which she gave him this morning, showed the following: 2005 2006
Production (units) 4 500 6 000 Raw Material Used (barrels of Petroleum byproducts) 700 900 Labour Hours ` 22 00028 000 Capital Cost applied to the Department (MU) 375 000 620 000 Haldun LOP wondered if his productivity hadincreased at all. He called Meltem into his office and conveyed the above information to her and asked her to proceedwith preparing this part of the report. (Include your interpretations for each productivity figure)
(10 marks)
Q6. Ahmet Uslu makes wooden boxes in which to ship motorcycles. Ahmet and his three employees invest 40 hoursper day making the 120 boxes. a. What is their productivity? b. Ahmet and his employees have discussed redesigningthe process to improve efficiency. If they can increase the rate to 125 per day, what would be their new productivity? c.
What would be their increase in productivity? (10
marks)
Q7.The manager of a local firm says “the forecasting techniques are more trouble than they are worth. I don`t forecast at
all, and I`m doing 25% more business than last year”. Comment.
(10 marks)
Q8.
What is the logic of Taguchi methods? (10 marks)
Assignment Solutions, Case study Answer sheets
Project Report and Thesis - Contact
ARAVIND – 09901366442 – 09902787224
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