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M. TECH. DEGREE EXAMINATION, MODEL QUESTION PAPER - II
First Semester
Branch: Mechanical Engineering
Specialisation: Production and Industrial Engineering / Advanced Manufacturing and
Production Management
MMEPI 102 / MMEMP 102 MANUFACTURING SYSTEMS MANAGEMENT
(Regular – 2013 Admissions)
Time: Three Hours
Maximum: 100 Marks
(Answer all questions)
1. (a). What is the difference between an order qualifier and an order winner? Tell how
you have used the two concept in a purchasing decision.
(8 marks)
(b). What is reengineering? Explain how you would reengineer a process you find
troubling.
(8 marks)
(c). What are the four basic types of production processes? How do they differ? Give
an example of each.
(9 marks)
OR
2. (a). List several factors that are often overlooked in a financial analysis of equipment
purchases.
(7 marks)
(b). Briefly explain the criteria for make or buy decisions.
(8 marks)
(c). A development company is attempting to determine the location for a new outlet
mall. The region where the outlet mall will be constructed includes four towns, which
together have a sizable population base. The grid map coordinates of the four towns
and the population of each are as follows:
Coordinates
Polpulation
Town
(10,000s)
x
y
1
30
60
6.5
2
50
40
4.2
3
10
70
5.9
4
40
30
3.5
i. Determine the best location for the outlet mall using the centre-of-gravity
method.
ii. Plot four towns and the location of the new mall on a grid map.
(10 marks)
Turn Over
2
3. Consider the following initial layout with unit cost matrix. Use the CRAFT pairwise
interchange technique to obtain the desirable layout.
(25 marks)
OR
4. Consider the following data on layout planning.
Areas of departments
Departments
Area (sq.m)
1
4,000
2
12,000
3
16,000
4
8,000
5
20,000
6
8,000
7
16,000
REL-CHART
Design a layout using CORELAP algorithm.
(25 marks)
Turn Over
5. (a). What do you meant by aggregate planning?
(7 marks)
3
(b). Given the following Product structure, BOM, MPS and inventory status, develop
MRP tables for all items using EOQ method.
(18 marks)
OR
6. (a). Discuss the benefits of ERP?
(b). The forecast for a group of items is given in the following table.
Quarter Demand
1
270
2
220
3
470
4
670
5
450
6
270
7
200
8
370
(5 marks)
Turn Over
4
i. Suppose that the firm estimates that it costs Rs.150 per unit to increase
the production rate, Rs. 200 per unit to decrease the production rate,
Rs. 50 per unit per quarter to carry the items on inventory and Rs.100
per unit if subcontracted. Compare the cost incurred if pure strategies
are followed.
ii. Given these costs, evaluate the following mixed strategy.
The company decides to maintain a constant production rate of 250
units per quarter and permits 20% overtime when the demand exceeds
the production rate. The incremental cost of overtime is Rs. 25 per
unit. It plans to meet excess demand by hiring and firing of workers.
(20 marks)
7. (a). How are the reorder point and lead time related in inventory analysis? (5 marks)
(b). Differentiate between a push and a pull production system.
(8 marks)
(c). Annual demand for an item is 5400 units. Ordering cost is Rs. 600 per order.
Inventory carrying cost is 30% of the purchase price per unit per year. The price
breaks are as shown below.
Quantity
Unit Price (Rs.)
1-2399
12
2400 – 2999
10
3000 +
8
Determine the optimal order size.
(12 marks)
OR
8. (a). What does a cellular layout contribute to JIT?
(5 marks)
(b). Explain ABC inventory classification system and indicate its advantages.
(8 marks)
(c). The Metropolitan Bank Company purchases paper from Atlantic Paper Company.
Metropolitan produces magazines and paperbacks that require 1,215,000 yards of
paper per year. The cost per order for the company is $1,200; the cost of holding 1
yard of paper in inventory is $0.08 per year. Determine the following;
i. Economic order quantity
ii. Minimum annual total cost
iii. Optimal number of orders per year
iv. Optimal time between orders
(12 marks)