UNIVERSITY OF MALAYA
EXAMINATION FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION
ACADEMIC SESSION 2013/2014: SEMESTER 2
CMGB6104: OPERATIONS MANAGEMENT
JUNE 2014
INSTRUCTIONS TO CANDIDATES:
Section A: Candidates must answer ail questions in this section.
Section B : Candidates are required to answer any 2 questions from this section
Diagramvilustration must be drawn clearly
(This question papas consists of 4 quostions an 5 printed pages)CMGB6104
SECTION A
1. (a} One of Just in Time (JIT) system's requirements is to build long term
relationships with few suppliers. What are the benefits and risks invotved in
this approach? Use relevant examples to Support your answer.
(20 marks)
(b) Achieving mass customization is a challenge for many companies. Discuss
(20 marks)
26CMGB6104
‘SECTION B
2. An assembly line operates 8 hours a day with a desired output of 240 units per day.
‘The tasks of the assembly line are listed in the table below:-
Activity | Task Time Immediate Predecessors
a) Draw a precedence diagram of this operation
(6 marks)
b) Calculate the cycle time for this operation
(6 marks)
‘¢) What is the theoretical minimum number of workstations?
(6 marks)
) Assign tasks to workstations using the most following tasks rule
(8 marks)
) Evaluate your solution, in terms of efficiency
(4 marks)
353. The
cCMGBE104
activities of a consultancy project that must be performed, their
immediate predecessors, and estimated activity times are shown below:-
Immediate ;
Activity | predecessors Time (days) |
~ - I
Draw the project network. (8 marks)
Identify the critical path(s) by calculating early and late start days, early
and late finish days and activity slack.
(16 marks)
What is the project completion time? Given this analysis, as a project
manager, where would you focus your attention or resources?
(6 marks)
4. A3 Manufacturing uses a chemical CS in its production facility. The price of CS
depends on the quantity ordered. The annual demand is 50 000 Ka. It costs $30
to place an order and the annual cost of holding is 20 percent of price of C5. The
price schedule for C5 is as follows:-
[Order Quantity | Pricet |
'0-2489 Kg $0.82
2500-5000 Kg $0.81
5001 Kg or more 30.80
ASCMGB6104
(a) Evaluate the various discount options and advise the management on the
optimal quantity of CS that A3 Manufacturing should order at a time.
(24 marks)
(b) Calculate the total annual material cost with the optimal order quantity.
(6 marks)
FORI
10,
1
12.
13.
14.
15.
LA:
Economic Order Quantity = /2PS/,
Annual Setup Cost = 25
ld
Annual Holding Cost = 2 71
Average inventory level = Maximum inventory level
2
Reorder point =dx L
Expected number of orders = N
Length of production oycle = £
EFSES+t
LS=LF-f¢
S=LS-ES or S=LF-EF
Cycle time = Preduction time available per day
Units required per day
Minimum no. of workstations = 5 '@sHimes
“ cycleime
Efficiency = E task times
(actual number of workstations) X (largest assigned oycle time)
END
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