INDIAN SCHOOL OF PETROLEUM & ENERGY

ACCELERATED MBA (OIL & GAS Management)

FOR

OIL INDIA LTD.

(Assignment#1 - Semester One)

Subject:

OPERATIONS AND MATERIAL MANAGMENT

Code:

_____ _

Date:

____________________30/07/2015_________________

Enrollment No.:

MBCQ722______ ___________

_________________________________

Last Date of Receipt of Assignment: 07th September, 2015

ASSIGNMENT QUESTIONS
Total: 100 Marks (All Questions are Compulsary)
SECTION A

(5 x 10 = 50 Marks)

Q.1) The Australian Tanning Co. which has distribution plants in Sydney and Melbourne , is considering
adding a third plant in either Adelaide, Bourke or Cooktown. The company has collected the
economic and noneconomic data shown in Table 1.
Table 1
Factor
Transportation cost /day
Labor cost / day
Selected criteria scores
(based on a scale of 0-100 points):
Finishing material supply
Maintenance facilities
Community attitude

Adelaide
$

780
$ 1, 200

35
60
20

Bourke

Cooktown

640
$ 1, 020

$ 560
$1, 180

85
25
85

70
30
70

Company management has pre established weights for various factors, ranging from 0 to 1.0. They include a
standard of 0.2 for each $ 10 per day of economic advantage. Other weights that are applicable are 0.3 on
finishing material supply, 0.1 on maintenance facilities, and 0.4 on community attitudes. Maintenance also
has a minimum acceptable score of 30. Develop a qualitative factor comparison for the three locations.
Q.2) Tractorboy Products Company is evaluating three different cities for a new plant designed to produce
lawn movers that will wholesale for $ 145 each. The economic portion of a plant-location study is
shown in Table 2.
Table 2
Cost Data

Panama

Fixed cost /yr

Variable costs /unit

$ 300, 000
30

Bogota
$ 200, 000
45

Caracas
$ 75, 000
70

Demand is uncertain, but probabilities of 0.1, 0.3 and 0.6 have been estimated for market volumes of 4,500,
5,500, and 6, 500, respectively.

Q.3) Silver Valley Smelting is considering the expansion of a production process by adding more 1-toncapacity curing furnaces. Each batch (1ton) of ore must undergo 30 minutes of furnace time, including
load and unload operations. However, the furnace is used only 80 percent of the time due to power
restrictions in other parts of the system. The required output for the new layout is to be 16 tons per
shift (8 hours). Plant (system) efficiency is estimated at 50 percent of system capacity.
(a) Determine the number of furnaces required.
(b) Estimate the percentage of time the furnaces will be idle.

Q.4) A media center must determine how many digital processors are required to maintain an output of 200
good prints per hour. The set up and exposure can theoretically be done in 2 minutes per print, but
operators are on the average only 90 percent efficient, and in addition, 5 percent of the prints must be
scrapped and redone. Also, the processors can be utilized only 70 percent of the time.

(a) What is the required system capacity in prints per hour?

(b) What average output per hour can be expected from each processor, taking its use factor and
efficiency into account?
(c) How many processors are required?

Q.5) A line balancing analysis resulted in a precedence grouping a shown in Table 4. Find the balance
efficiency. Use the LOT Rule.

Work Center
A
B
C
D
E

Table 4
Activity Numbers

Actual Time (min)

1, 2
3, 5, 6
4, 7
8, 10, 11
9

1.2
1.4
0.9
1.3
1.5

SECTION B

(3 x 10 = 30 Marks)

Q.6) A furniture manufacturing activity requires the times shown in Fig. 1 to perform five tasks in an
assembly line. Operations are to be scheduled for producing six units per hour, and each employee
can contribute 48 minute per hour of productive work. (a) What is the cycle time in minute per unit?
(b) What is the theoretical minimum number of personnel? (c) Combine the tasks into the most
efficient grouping of workstations-using the LOT Rule.
B
A

0.8

4.4

D
C

7.0

14.
6

3.5
Fig. 1

Q.7) A toy manufacturer produces doll houses on a product line geared to an output of one per minute. The
assembly precedence relationships and activity times (in minutes) are shown in Fig. 2.
0.7
0.6
0.2

2
0.3

0.6
7

1
5

0.1

0.5

0.4
3

(a)
(b)

Group the activities using the LOT Rule.

What is the balance efficiency?

0.4
9

Q.8) Hindustan Robotics India Limited, uses a robotic-controlled flexible production system to assemble
robots it sells. Five robots are available and
must complete the tasks specificed in Table 5.

Task
A
B
C
D
E
F
G
H
I
J
K
L

Table 5
Time
(sec)
10
24
17
49
12
14
27
9
20
23
36
18

Prededing
Task (s)
None
None
A
A
C
C
B
E
F, G
D, H, I
I
J, K

(a) Draw a precedence diagram.

(b) What is the theoretical minimum (target) cycle time if all five robots are fully utilized in a fivestation assembly line?
(c) Group the tasks into the most efficient five-station assembly line.
(d) What is the cycle time?
(e) What is the balance efficiency?
SECTION C

(2 x 10 = 20 Marks)

Q.9) Identify the major contribution of key individuals associated with the scientific management era.

Q.10) Summarize your learning of Operations and Materials management for Block I & Block II.