april 2011

CONFIDENTIAL EM/APR 2011/MEM575/KJP585/450

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE

COURSE CODE

EXAMINATION

TIME

INDUSTRIAL MANAGEMENT

MEM575/KJP585/450

APRIL 2011

3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of five (5) questions.

2. Answer four (4) questions in the Answer Booklet. Start each answer on a new page.

3. Do not bring any material into the examination room unless permission is given by the invigilator.

4. Please check to make sure that this examination pack consists of:

i) the Question Paper ii) an Answer Booklet - provided by the Faculty iii) a Graph Paper - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 6 printed pages © Hak Cipta Universiti Teknologi MARA CONFIDENTIAL

CONFIDENTIAL 2 EM/APR 2011/MEM575/KJP585/450

QUESTION 1

a) Operations Manager operates in an exciting and dynamic environment due to variety of challenging factors resultant from globalization, transfer of ideas, productivity and money at electronic speed. Recall five (5) of these challenges.

(5 marks)

b) Illustrate which considerations needed to be evaluated by Operation Manager in order to select the best equipment for a particular type of processes.

(6 marks)

c) Selecting a facility location is becoming much more complex with globalization of workplace. One of the approaches is by defining Key Success Factor in finalizing the option. Explain four (4) Key Success Factors which are normally used for location selection and how they may impact the facility location selection.

(8 marks)

d) Layout is one of the important elements that determines the efficiency of an operation. Describe common types of layout and examples of their typical objectives.

(6 marks)

QUESTION 2

a) Good forecasts are very critical in all aspects of business. Outline in detail how exactly the impact of product demand to the three activites:

i) Human Resources

ii) Capacity

iii) Supply Chain Management

(9 marks)

b) Many firms have moved to bring total quality management concepts to the practice of preventive manitenance with an approach known as Total Productive Mantenance (TPM). Explain what can be considered as TPM activites or approach.

(6 marks)

c) Mass Spring Company is responsible to supply absorber coils for PROTON. One of their coiling machine experience several problems. Over the past few months, the frequency of the machine breakdown has been recorded as shown in Table Q2(c).

Number of breakdowns per day

Frequency

0

2

1

2

2

1

3

5

4

3

5

2

Table Q2(c)

© Hak Cipta Universiti Teknologi MARA CONFIDENTIAL


Based on the those data, calculate:

i) the expected number of breakdowns per day.

ii) the mean (average) number of breakdowns calculated using Monte Carlo Simulation Technique for a 5-day breakdown period. Using random number provided in the Random Number Table below, perform two simulation cycles from column 1 and column 2 (from top going downward).

Random Number Table

52

37

82

69

98

96

33

50

88

90

50

27

45

81

66

74

30

59

67

60

60

80

53

69

37

06

63

57

02

94

52

69

33

32

30

48

88

14

02

83

05

34

55

09

77

08

45

84

84

77

(10 marks)



QUESTION 3

a) What does i) Kanban and ii) Just-in-time system refer to? Explain briefly the role of Kanban in Just-in-time system.

(7 marks)

b) E-commerce is revolutionizing the way companies do business. Show the extent of this by giving and critically explaining two applications of e-commerce in production/operations management.

(10 marks)

c) A company manufactures certain household product. The demand for this product is 8,000 units per year. Each unit of the product requires 2 units of a component supplied by Vendor A. The cost of placing the order for the component is RM242 per order and the holding cost per unit per year is 30% of the unit price of the component. The company operates 6 days in a week. An order needs on average 5 days before delivery. Ordinarily Vendor A sells the component at RM14 per unit but for purchases of 10,000 units or more, it offers a 5% discount.

You are the new production manager for the company. You discovered that the company did not order the component at EOQ but at 10,000 units each time it makes an order. Your objective is to save costs for the company. By showing relevant calculations, determine whether the current order quantity (i.e. 10,000 units per order) is appropriate. What if Vendor A now increased the discount for the component to 10%?

(8 marks)

QUESTION 4

a) Identify the requirements that Operation Managers expected to know in order to effectively use the dependant inventory model.

(5 marks)

b) Pepsi Baverages has launched new isotonic drinks in the market. Muhammad Ali, the production planner has compiled the following cost data and demand forecast for the new drink.

Quarter Forecast (dozen)

1 1,800

2 1,200

3 1,600

4 ' 800



Cost/Other data Production Output = 40 dozen per operator Beginning inventory = 0 Stockout Cost = $150 per dozen Inventory Holding Cost = $40 per dozen at aend of quarter Hiring Employee = $40 per dozen Terminating Employee = $80 per dozen Suncontracting cost = $60 per dozen Unit Cost on regular time = $ 30 per dozen Overtime cost = $15 per extra dozen Capacity on regular time = 1,800 dozen per quarter

Muhammad Ali job is to develop agregate plan. He wants to evaluate 2 plans :

• Plan A : Chase Stratergy that hires and fires personnel as necessary to meet the demand.

• Plan B : A level stratergy that produces 1,200 dozen per quarter and meets the demand with inventory and subcontracting.

Demonstare how the aggregate plan that Muhammad Ali will develope. (10 marks)

c) Danieal is developing a Lean Leadership training for operator level at his company. He has listed a number of activities that must be completed before a training program can be conducted as shown in table below.

Activity Immediate

Predecessor(s) Time (days)

A

B

C

D

E

F

G

-

-

-

B

A,D

C

E,F

2

5

1

10

3

6

8

i) Develop network diagram for this problem.

ii) What is the critical path?

iii) What is the total project completion time?

iv) Explain how the project duration can be shortened. (10 marks)



QUESTION 5

a) Describe how quality can influence the increase of profitability to a company or organization. (5 marks)

b) Outline the seven concepts that are necessary for an effective TQM program and how are they related to Deming's 14 points?

(10 marks)

c) Dynamic Valve company is producing engine valves for high performance car assembler through forging process and the diameter is a critical factor that must be in control. From sample of 10 valves they produced every day, the mean and average of this diameter are as follows:

Day

1

2

3

4

5

Mean (mm)

156.9

153.2

153.6

155.5

156.6

Range (mm)

4.2

4.6

4.1

5

4.5

i) What is the value of the x double bar?

ii) What is the value of the R-bar?

iii) What are the UCL x-bar and LCL x-bar using 3 sigma?

iv) What are UCL R and LCL R using 3 sigma?

v) If the true diameter mean should be 155 mm and you want this to be your center line, what are the new UCL x-bar and LCL x-bar?

(10 marks)

END OF QUESTION PAPER


april 2011

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