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EM/APR 2010/MEM575/KJP585/450

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

INDUSTRIAL MANAGEMENT MEM575/KJP585/450 APRIL 2010 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. 2. 3. This question paper consists of five (5) questions. Answer four (4) questions in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) ii) iii) the Question Paper an Answer Booklet - provided by the Faculty a Graph Paper - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

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QUESTION 1 a) In the production/operation management, both internal and external environments influence the whole system. As a production manager, describe briefly the strategies to control the internal environment for example departments, personnel and working conditions. (5 marks) Flexible Manufacturing Systems (FMS) evolve mainly due to the globalization of the manufacturing sectors. Discribe briefly the advantages of implementing FMS. (5 marks) The choice of plant location is a crucial decision for any new or established businesses. The decision will involve the selection of suitable site. Explain some of the factors that can affect the decision on the selection of plant location. (5 marks) KMBB Sdn Bhd is a company that assembled bicycle for local market. The assembly process involves 11 task shown in the table below. Task A B C D E F G H I J K
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b)

c)

d)

Precedence A
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Time (min) 8 5 6 10 2 4 5 7 2 9 3

B,C D
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F,E,G H H l,J

The company needs to produce 125 bicycles in 40 hour work week. Based on the information given: i) Determine the number of workers required. (Assume 1 worker for 1 workstation) What is the efficiency of the line? If the demand is reduced to 100 units in 40 hour work week, how many workers will be required? (10 marks)

ii) iii)

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QUESTION 2 a) The docking rate of ships at the Northport varies monthly and the operations manager is attempting to test the use of exponential smoothing to determine the effectiveness of the technique in forecasting. He begins the analysis in the month of January and continues for an additional 5 months. The initial forecast for January is 320. Actual data for the past 6 month are as follows: Month January February March April May June No. of Arrival 340 350 460 440 380 340

The operation manager has decided on 2 values for a i.e. = 0.1 and a = 0.4. Which of these alpha values will be more accurate? Explain also what other technique may provide more accurate results. (10 marks) b) The number of ships that can be docked at the port is to be simulated for 10-day period using the Monte Carlo simulation technique. The port manager has collected the following data on ship arrival rates: Number of Arrivals 0 1 2 3 4 5 Probability 0.04 0.10 0.21 0.30 0.25 0.10

Probabilities have been determined for the daily unloading rate of the ship in the table given below. After unloading completed, the ship will sail out from the port. If the unloading incomplete, delay will occur. As a port engineer, you are required to make recommendation on the current situation. Use the random numbers from column 3 of Table Q2(b): Random Number Table, starting from top moving downwards. Number of Ships Unloaded per Day 1 2 3 4 5 Probability 0.10 0.30 0.45 0.10 0.05

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By using the rule of First In First Out, calculate; i) ii) iii) Average Number of Delays, Average Number of Arrivals, Average Unloaded Each Day. (10 marks) Table Q2( b): Random Number Ta b e l

5 90 45 80 77 9 37 18 37 49 59 7 98 93 25 5 33 1 19 24
c)

72 17 66 54 9 19 66 65 21 95 84 45 62 67 95 45 64 88 4 28

85 80 20 48 67 91 30 99 2 98 14 23 21 69 1 64 45 65 36 88

65 58 34 28 55 75 31 30 18 14 44 73 19 78 23 27 66 27 45 54

35 46 78 64 59 81 33 96 10 85 55 61 57 79 52 98 87 19 37 3

Supply Chain Management requires very careful coordination of activities between various business organizations on the chain which begins with the suppliers of raw materials and extends all the way to the final customer. Discuss the benefits for managing an effective supply chain management. (5 marks)

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QUESTION 3 a) JIT systems require very little inventory in which goods move through the system and tasks are completed just in time to maintain the schedule. Discuss the benefits of JIT systems. (5 marks) KETA Car Assembler (KCA) buys brake pads from BPad manufacturer. The price schedule quoted by Bpad is: No. of Units Bought at a Time Less than 1000 1000 to 2999 3000 and more Price per Unit (RM) 10.00 9.85 9.70

b)

The order cost is RM 300 per order and carrying cost is 20 percent of the unit cost. The annual requirement for the item is 10,000 units. What is the optimal quantity that KCA should order from Bpad? (10 marks) c) Sweetjuice Inc. produces bottled soursop juice. The company has just received a confirmed order from a retail supermarket for the first six month in year 2011. A planner has developed an aggregate forecast for demand (in boxes) for the first six months in year 2011. Month Forecast January 4,000 February 4,800 March 5,600 April 7,200 May 6,400 June 5,000

As a manufacturing manager of the company you need to plan for the production to run to fulfill the customer's order. Knowing that early next year you have to run with only one production line due to manpower shortage, therefore your planning must take into consideration using a combination of overtime (500 boxes per period maximum), inventory, and subcontracting (500 boxes per period maximum) to handle variations in demand. No backlog is allowed. Use the following information to develop the aggregate plan based on the above guidelines and compute the total production cost. Regular production cost Regular production capacity Overtime production cost Subcontracting cost Holding cost Beginning inventory RM 10 per box 5000 boxes RM 16 per box RM 20 per box RM 1 per box per month zero. (10 marks)

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QUESTION 4 a) In a typical project, there are three sets of objectives and frequently these objectives contradict each other. Explain these objectives and indicate how to compromise such contradictions through a suitable example. (5 marks) MACE Maintenance is a repair outfit which takes up maintenance jobs in industry. For one of their jobs, MACE identifies the work components and related estimates as given below: Immediate Predecessor (s)
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b)

Work Component A - Removing defective module B - Removing power unit C - Repairing power unit D - Module testing E - Module repairing F - Module checking G - Fitting power unit and module H - Instrument checking I - Instrument calibration J - Checking the system K - Carrying out a safetycheck i)

Duration (mins) 15 30 90 15 30 15 30 45 60 30 15

No. of Technicians Needed for the Activity 0 1 2 1 2 2 1 1 3 3 1

No. of Support Staff Needed for the Activity 2 3 3 1 3 2 2 3 0 1 1

B A D C, E F
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H G, I G, I

Draw the network diagram for the above maintenance job and calculate the completion time. Find the critical path. (10 marks)

ii)

c)

E-commerce had a significant effect on the supply chain management. Discuss: i) ii) the advantages of using E-commerce in supply chain management, the disadvantages of using E-commerce in supply chain management. (10 marks)

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QUESTION 5 a) Quality is the ability of a product or service to consistently meet or exceed customer expectations. What are the differences between traditional and modern concept of quality control? (4 marks) Metal parts from a stamping machine constitute an important component in a machine assembly. The stamping process is sought to be controlled with the help of a statistical control chart. The sampling procedure consists of taking 100 consecutive components stamped out of the machine and check whether they are good or defective. The results of inspection from 20 samples are given in the table below: Sample No. 1 2 3 4 5 6 7 8 9 10 i) ii) No. of Defective 0 1 5 0 1 1 0 0 4 1 Sample No. 11 12 13 14 15 16 17 18 19 20 No. of Defective 4 0 0 1 5 0 6 0 1 0

b)

Construct a control chart for percent defective with 99.73% confidence level, Comment on the process. 10 marks)

c)

The frequency of breakdown of a stamping machine is given in the following table. Repairs cost an average of RM 240. A service firm is willing to provide preventive maintenance under either two options. Option 1 is RM 500 and covers all necessary repairs, and option 2 is RM 350 and covers any repairs after the first one. Which option would have the lowest expected cost to pay for all repairs, service option 1, or service option 2? Number of breakdowns 0 1 2 3 4 Probability of occurrence 0.10 0.30 0.30 0.20 0.10 (5 marks)

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d)

There are two main forms of maintenance - preventive and breakdown. Explain how an organization should decide on the appropriate level of maintenance. In your answer, address the various costs involved in both forms of maintenance and show how you determine an optimum level of preventive maintenance. (6 marks)

END OF QUESTION PAPER

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