Inventory - Operations and Production Management - Exam, Exams of Business Management and Analysis

Download Inventory - Operations and Production Management - Exam and more Exams Business Management and Analysis in PDF only on Docsity! Cork Institute of Technology Bachelor of Science in Advanced Manufacturing Technology - Award Bachelor of Science in Process Plant Technology – Award (EPPT_8_Y4)(EAMTE_8_Y4) Summer 2008 Operations & Production Management Time: 3 Hours Instructions: Answer Question 1 and four other questions. All Questions carry equal marks. Examiner: Mr. Michael P. O’ Mahony Mr. Neil Kingston Mr. Joe Phelan Q1. (a) List THREE functions of Inventory (3 Marks) (b) Name TWO headings under which Relaxation Allowances are applied in Work Measurement. (2 Marks) (c) Explain what a Kanban is, what it is used for and how does it works. (4 Marks) (d ) List THREE reasons why a job may be selected for a Method Study (3 Marks) (e) Explain how Labour Specialization reduces Labour costs (5 Marks) (f) List THREE determinants of Effective capacity (3 marks) Total Marks 20. Q2. (a) Daily demand for a company’s product is150 units. Over time it has been observed that the three sigma deviation for the demand is 18 units. The manufacturing lead time for the product is 8 normal working weeks (5 day week). The review of stock is conducted every 20 normal working days. Demand is filled from stock and it is important that 95% of the time stock is available. There are currently 25 units in stock and a review is required. How many units should be on the Manufacturing order on this occasion? (10 Marks) (b) The Acme Joinery Company assembles kitchen tables using bought in parts of 4 legs and a top per unit. These have a lead time of two and three weeks respectively and assembly takes one week. The company receives orders for 20 tables to be delivered in week 5 of a planning period and 40 tables in week 7. It has a current stock of 2 complete tables, 40 legs and 22 tops. When and how many component parts should be ordered to meet known demand? (10 marks) Q3. (a) What are the objectives of a payment System? (9 Marks) (b) Explain what the meaning of Measured Day work and how does it differs from individual payment by results ie piece rates (7 Marks) (c) What are the main reasons for the trend towards Group Payment by Results Schemes? (4 Marks) Q4. A time Study sheet is shown in Sheet Q4 (insert your name and hand up with script) The element descriptions are as follows: Element 1: Remove tyres (4 at a time) from pallet and place on the work table Element 2: Pick up each tyre, apply label and place aside Element 3: Replace tyres (4 at a time) onto a second pallet Element 4: Obtain hand-truck, move full pallet (80 tyres) to stores and return with empty pallet Element 5: Put fresh roll of labels into tape dispenser (enough for 60 tyres) Allowances are as follows: Element 1 – 40% Element 2 – 15% Element 3 - 40% Element 4 - 15% Element 5 - 10% Determine: (i) The standard Time per batch of FOUR tyres (15 Marks) (ii) The timing error and comment on its acceptability (5 Marks) Q5. (a) In the context of Aggregate planning, discuss both the Demand and Capacity options employed by companies in an effort to balance Demand and capacity (8 Marks) (b) Explain why the Product Life cycle needs to taken into account when forecasting. (4 Marks) (c) Table Q5 list the demand for a company’s products in the last two years on a per month basis. Projected demand for the coming year is 15,000 units. Calculate the seasonal index, and determine the expected monthly demand for the coming year. Data sheet ∑= ∑= − = += − = − = −++= = ++= = + =+ + + L i dL LT i dLT L L opt LT LT i i QpzE zLdR dpH DSpQ pTdzE IzLTdq H DSEOQ HQS Q DDCTC 1 2 1 2 )1()( )( 2 )1()( )( 2 2 σσ σσ σ σ σ σ z = Number of standard deviations of safety stock E(z) = Expected number of units short Source: Revised from Robert G. Brown. Decision Rules for Inventory Management (New York: Holt, Rinehart & Winston, 1967), pp. 95-103. E(z) z E(z) z E(z) z E(z) z 4.500 -4.50 2.205 -2.20 0.399 0.00 0.004 2.30 4.400 -4.40 2.106 -2.10 0.351 0.10 0.003 2.40 4.300 -4.30 2.008 -2.00 0.307 0.20 0.002 2.50 4.200 -4.20 1.911 -1.90 0.267 0.30 0.001 2.60 4.100 -4.10 1.814 -1.80 0.230 0.40 0.001 2.70 4.000 -4.00 1.718 -1.70 0.198 0.50 0.001 2.80 3.900 -3.90 1.623 -1.60 0.169 0.60 0.001 2.90 3.800 -3.80 1.529 -1.50 0.143 0.70 0.000 3.00 3.700 -3.70 1.437 -1.40 0.120 0.80 0.000 3.10 3.600 -3.60 1.346 -1.30 0.100 0.90 0.000 3.20 3.500 -3.50 1.256 -1.20 0.083 1.00 0.000 3.30 3.400 -3.40 1.169 -1.10 0.069 1.10 0.000 3.40 3.300 -3.30 1.083 -1.00 0.056 1.20 0.000 3.50 3.200 -3.20 1.000 -0.90 0.046 1.30 0.000 3.60 3.100 -3.10 0.920 -0.80 0.037 1.40 0.000 3.70 3.000 -3.00 0.843 -0.70 0.029 1.50 0.000 3.80 2.901 -2.90 0.769 -0.60 0.023 1.60 0.000 3.90 2.801 -2.80 0.698 -0.50 0.018 1.70 0.000 4.00 2.701 -2.70 0.630 -0.40 0.014 1.80 0.000 4.10 2.601 -2.60 0.567 -0.30 0.011 1.90 0.000 4.20 2.502 -2.50 0.507 -0.20 0.008 2.00 0.000 4.30 2.403 -2.40 0.451 -0.10 0.006 2.10 0.000 4.40 2.303 -2.30 0.399 0.00 0.005 2.20 0.000 4.50 Name:________________________________ Time started: 14:30Hrs OT - Observed Times Time Finished: 14:41Hrs BM - Basic Minutes Time Shown in decimal Minutes Element Ref Rating OT BM Element Ref Ratin g OT BM Check Time - 66 - 1 75 32 1 120 20 2 80 21 2 120 15 2 75 20 2 115 16 2 80 19 2 110 16 2 100 16 2 105 15 3 75 16 3 100 12 1 80 30 1 100 25 2 95 18 2 95 17 2 90 20 2 90 19 2 80 22 2 100 18 2 85 21 2 100 18 3 100 10 3 95 13 1 75 36 1 95 26 2 75 20 2 100 17 2 70 22 2 100 17 2 80 18 2 105 16 2 80 17 2 100 16 3 90 12 3 100 11 4 75 240 5 80 34 Check Time - 70 - Element Basic Time – Minutes RA % Work Content Std Minutes Frequency Work Content per Cycle 1 2 3 4 5 SHEET Q4