This document contains 24 questions related to operations management concepts like layout planning, facility location, process optimization, inventory management, scheduling, and statistical process control. The key information includes minimizing non-adjacent flows in a layout, determining the optimal location for a new facility based on various cost factors, calculating economic order quantity and inventory costs, setting control limits for quality control charts, and estimating project durations and costs using PERT/CPM networks.

1. Operations Management Assignment No. 1
1. Newage Furniture has purchased a plant with six production areas as shown in Fig.
below. The firm proposed to locate six departments (A,B, C, D, E,F) which have the
number of moves per day between departments as shown in the Table below. Develop a
layout plan of the six departments that minimizes the non – adjacent flows.
1 2 3
4 5 6
Number of moves to
A B C D E F
A X 7 X X X 5
Number
B X X X 4 10 X
of
C X 7 X 2 X X
moves
D X X 8 X X X
from
E 4 X X X X 3
F X 6 X X 10 X
2. A manufacturing unit has six departments to be arranged in a 3X2 matrix formation. The daily
expected load transactions in tons is as given below. Suggest a layout for the manufacturing
unit.
A B C D E F
A 20 25
B 10 15
C 30 40
D 50 10
E 15
F
3. XYZ company has a demand of 1,30,000 units of a new product. Three potential
locations A,B & C having the following cost structures shown below are available. Select
the location which is most suited for the said demand. Also, identify the volume ranges
for which each location is suitable.
Location A Location B Location C
Fixed Cost Rs. 1,50,000.00 Rs. 3,50,000.00 Rs. 9,50,000.00
Variable Cost Rs. 10.00 Rs. 8.00 Rs. 6.00
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2. Operations Management Assignment No. 1
4. In a system there are 2 machines and 1 operator. The details are as below. Draw an
activity chart and find capacity utilization in terms of time.
Activity Time
Loading & Starting of A 0.8
Running of A and automatic stop 1.6
A running and unloading product from B 0.4
Inspection of Product from B 1
Loading and start of B 0.8
Running of B and automatic stop 1.6
B running and unloading product from A 0.4
Inspection of product from A 1.0 / Repeat
5. The following are the activities of time utilization both for man and machine. Find the
current level of utilization of man and machine. Can the process be improved?
Sr. No. Activities Duration (in
min.)
1 Fixing the load 6
2 Clamping the load 3
3 Starting machine 0.1
4 Adjustment of Lubricant Flow 0.1
5 Running time of machine 12.4
6 Machine Stopping 0.1
7 Clearing of machine parts 0.3
8 Unloading part 0.3
9 Inspection & Packing of the 0.6
Part
6. A time study of Ghaziabad Grain elevator loading activity revealed a cycle time of 8.57
minutes for a worker rated at 107 %. The allowances are based upon total (480 minutes
per day) time and are as follows: personal time = 25 minutes per day, fatigue = 84
minutes per day, delay = 35 minutes per day. Determine the standard time for an 8 hour
per day operations.
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3. Operations Management Assignment No. 1
7. A new medical health care facility is to be located in Delhi. The location factors, factor
rating and scores for the potential sites are as below. Advise the best location.
Sr. Location Factor Factor Ratings
No. Rating Location A Location B
1. Facility utilization 8 3 5
2. Total Patients per month 5 4 3
3. Average time per emergency trip 6 4 5
4. Land and construction costs 3 1 2
5. Employee preference 5 5 3
8. A particular job operation in a plant undergoes the following processes A, B, C, D, E & F
along with time each activity takes in weeks.
– How much time is required for the inventory to be ready for sale?
– Can some activity start at a later time, as this would help optimize the manpower
resources?
9. A network has four activities with expected times as shown in table. The minimum
feasible times and cost per day to gain reductions in the activity times as also given. If
fixed project cost is Rs. 90 per day, what is the lowest cost time schedule?
Activity Standard Minimum Direct Cost of Time Reduction (in Rs.)
Time Time
1–2 5 2 40 each day
1–3 4 2 35(first day), 80( second day)
2–4 4 4 None possible
3–4 6 3 45 (first day), 110 (other days)
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4. Operations Management Assignment No. 1
10. A leading company has decided to bring about certain changes in its product design for
which the time estimates are as follows. Estimate the time it would take to get the new
design implemented. The activity precedence detail is:
Activity Activity Time
No. (in Weeks)
1 Redesign Product 6
2 Redesign Packaging 2
3 Order & receive component for redesigned product 3
4 Order & receive component for redesigned packaging 2
5 Assemble Product 4
6 Make up packaging 1
7 Package redesign product 1
8 Test Market redesigned product 6
9 Revise redesigned product 3
10 Revise redesigned packaging 1
11 Present result to Board 1
Activity number must finish before Activity number can start
1 3
2 4
3 5
4 6
5,6 7
7 8
8 9
8 10
9,10 11
11. A firm with an annual demand of 900 units per year estimates its ordering costs at Rs. 15
per order and its carrying cost at Rs. 3 per unit per year. Calculate the Economic Order
Quantity and total cost of inventory for the firm.
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5. Operations Management Assignment No. 1
12. A distributor pays Rs. 80 each for an electric switch for which it has an annual demand of
4000 units. Its ordering cost is estimated at only Rs. 20 per order and it estimates carrying
charges at 20%. What is the EOQ for this item?
13. The following table gives data on normal time and cost and crash time and crash cost for
a project. Draw the network for the project and find the minimum total time of project
after crash and the corresponding cost taking into consideration the time minimum crash
cost.
Activity Normal Crash
Time (Days) Cost Time (Days) Cost
1–2 6 60 4 100
1–3 4 60 2 200
2–4 5 50 3 150
2–5 3 45 1 65
3–4 6 90 4 200
4–6 8 80 4 300
5–6 4 40 2 100
6–7 3 45 2 80
14. An assembly operation has three work element taken care by on operator. An industrial
engineer conducted work sampling to determine the standard time for the job. The
duration of study is one shift with 420 minutes of effective time. The observations are
given in the table below. A total unit produced during the study period is 160 units.
Assuming 10% allowance, find standard time.
Sr. Work Element Frequency of Performance
No. Number Performance Rating
1. 1 70 80%
2. 2 80 90%
3. 3 60 100%
15. An oil engine manufacturer purchases lubricants at the rate of Rs. 42 per piece from a
vendor. The requirements of these lubricants are 1800 per year. What should bethe
ordering quantity per order if the cost per placement of an order is Rs. 16 and the
inventory carrying cost per rupee per year is 20 paise.
16. Given the data shown in table below for a PERT network.
a. Draw an AOA network diagram
b. What are the parameters of the ending time distribution (Estimated time of Critital
Path and Standard Deviation of Critical Path)?
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6. Operations Management Assignment No. 1
c. Determine the earliest start, latest start and slack time of all events in the system.
Preceding Event Optimistic Most Likely Pessimistic
Event Time Time Time
1 2 5 6 13
1 3 5 7 12
2 4 1.5 2 2.5
2 5 1 3 5
3 5 1 3 5
3 5 4 5 6
4 7 2 3 10
5 7 4 5 6
6 7 3 5 7
17. A stop watch time study was made of an assembly task that involved four elements.
Calculate the normal time, standard time. Allowances are 15 percent of normal time.
Element 1 2 3 4 5 Rating
1 0.04 0.04 0.03 0.03 0.04 100
2 0.12 0.10 0.09 0.10 0.10 90
3 0.16 0.24 0.15 0.16 0.16 115
4 0.13 0.13 0.12 0.14 0.14 120
18. A machine manufacturing mica discs with specified thickness between 0.008 mm and
0.015 mm. Samples of size 4 are drawn every hour and their thickness are recorded as
below. Construct the control charts for mean and range and comment if the process is
under control. The value of A2 is 0.73, D3 is 0 and D4 is 1.8.
Sr. No. Sample Thickness of mica discs (in units of 0.001 mm)
1 14 8 12 12
2 11 10 13 8
3 11 12 16 14
4 17 12 17 16
5 15 12 12 10
6 13 8 15 15
7 14 12 13 10
8 11 10 8 16
9 14 10 12 9
10 12 10 12 14
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7. Operations Management Assignment No. 1
19. Following data gives defectives in a sample size of 25 numbers carried out in Jan. 2012.
In Feb. 2012, 25 pieces were against imported on each of the two occasions and 5 pieces
and 8 pieces were found to be defective in each case respectively. Find out whether the
process is under statistical control.
Sub Group No. of Sub Group No. of Sub Group No. of
No. Defectives No. Defectives No. Defectives
1 3 6 4 11 4
2 4 7 6 12 4
3 5 8 3 13 6
4 3 9 4 14 5
5 4 10 3 15 3
20. A sportswear firm has set up automated production line of sweaters. 20 samples of size
50 each were drawn randomly during the first week of production in order to establish the
control limits for the process.
Sample 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No.
No. of 2 3 4 1 0 2 4 1 1 3 0 1 2 1 1
Defectives
21. The Delhi Metro Railway uses the number of written passenger complaints per day as a
measure of its service quality. For 10 days the number of complaints received is as given
in the table below. Compute the control limits.
Day No. 1 2 3 4 5 6 7 8 9 10
No. of 4 8 2 0 3 9 10 0 6 4
Complaints
22. Construct a C chart for the following data and check for the process control.
Sample Number 1 2 3 4 5 6 7 8 9 10
Number of non- 23 15 17 15 41 0 25 31 29 0
confirmative
23. The following are the figures for the number of defectives in 22 lots, each containing
2000 rubber bells. Draw the control chart for fraction defectives and comment on the
state of control in the process.
425, 430, 216, 341, 225, 322, 280, 306, 337, 305, 356, 402, 206, 264, 126, 409, 193, 326,
280, 389, 457, 420
24. Repeated samples of size 100 were taken 50 times and the number of defective units
processed was found to be 500 in all. Construct control chart for proportion defectives.
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