This Paper has 40 answerable questions with 25 answered.
F—P15(EPM)
Syllabus 2008 |
| Time Allowed : 3 Hours | Full Marks : 100 |
| The figures in the margin on the right side indicate full marks. |
Attempt Question No. 1 (carrying 25 marks) which is compulsory and any five
(each carrying 15 marks) from the rest. |
| Marks |
| 1. | (a) | Fill in the blanks: | 1x8 | |
| | | (i) | Management _________ consists of shared values, beliefs and norms of organization. | | (2) |
| | | (ii) | _________ philosophy suggests that a firm should eliminate any reliance upon the EOQ. | | (1) |
| | | (iii) | The internet sometimes refers only to the most visible service—the internet _________ . | | (1) |
| | | (iv) | _________ is a listing of the type and number of parts needed to produce one unit of finished product. | | (1) |
| | | (v) | The concept of _________ emphasises linkage among all of the value–adding activities. | | (1) |
| | | (vi) | _________ provides risk assessment services and insurance advice and solution to the clients. | | (1) |
| | | (vii) | _________ are associated with the potential for not receiving payments owed by debtors. | | (1) |
| | | (viii) | _________ is a Japanese strategy for continuous improvement. | | (3) |
| | (b) | Define the following terms in not more than two or three lines: | 1½x6 | |
| | | (i) | V in VAT Analysis; | | (1) |
| | | (ii) | McKinsey’s 7s Framework; | | (1) |
| | | (iii) | Bench Marking; | | (1) |
| | | (iv) | Contribution approach; | | (1) |
| | | (v) | Talent Drain; | | (1) |
| | | (vi) | The Shewhart Cycle. | | (1) |
| | (c) | Expand the following abbreviations: | 1x8 | |
| | | (i) | CRP; | | (2) |
| | | (ii) | DBR; | | (2) |
| | | (iii) | DRP; | | (2) |
| | | (iv) | PLCM; | | (2) |
| | | (v) | SQC; | | (2) |
| | | (vi) | EFQM; | | (2) |
| | | (vii) | DMAIC; | | (2) |
| | | (viii) | JUSE. | | (2) |
| 2. | (a) | The impact of control system on human behavious can be explained by budgetary control—Explain. | 5+5+5 | (0) |
| | (b) | What is Matrix Organisation structure? What are its advantages and disadvantages? | | (0) |
| | (c) | What are the options for demand stimulation? How would you adjust capacity to match current demand? | | (0) |
| 3. | (a) | What is Bench trending and how does if differ from Bench Marking? | 5+5+5 | (0) |
| | (b) | Write a note on ERP. | | (0) |
| | (c) | What is aggregate planning and briefly explain its techniques. | | (0) |
| 4. | (a) | A firm has received an order to make and supply eight units of standard product which involves intricate labour operations. The first unit was made in 10 hours. It is understood that this type of operations is subject to 80% learning rate. The workers are getting a wages rate of Rs. 12 per hour. | (i) | What is the total time and labour cost required to execute the above order? | | (ii) | If a repeat order of 24 units is also received from the same customer, what is the labour cost necessary for the second order? |
| 10 | (1) |
| | (b) | Discuss the principal four steps in Target Costing. | 5 | (1) |
|
| 5. | (a) | What is life cycle costing? What are the costs associated with different stages of life cycle of a product? | 5 | (0) |
| | (b) | X Limited supports the concept of life cycle costing for new investment decisions covering its engineering activities. The company is to replace a number of its machines and the Production Manager is to decide between the ‘X’ machine, a more expensive machine with a life of 12 years, and the ‘W’ machine with an estimated life of 6 years. If the ‘W’ machine is chosen it is likely that it would be replaced at the end of 6 years by another ‘W’ machine. The pattern of maintenance and running costs differs between two types of machine and relevant data are shown below: | (Rs.) | | | | X | | W | Purchase price
Trade–in–value
Annual repair costs
Overhaul costs (p.a.)
Estimated financing costs averaged
over machine life (p.a.) |
(at year 8) | 19,000
3,000
2,000
4,000
10% |
(at year 4) | 13,000
3,000
2,600
2,000
10% |
You are required to recommend, with supporting figures, which machine to purchase, stating any assumptions made. PVIFA (10, 6) = 4.36, PVIFA (10, 12) = 6.81. | 10 | (0) |
| 6. | (a) | "Purpose of sensitivity analysis is to identify the critical variable in the project analysis". —Discuss. | 5 | (0) |
| | (b) | The Sales Manager of the Electronic Toy Company is considering two toys: a doll and game. The toys have discrete probability distributions of cash inflows in each of the next three years. | Event | Doll | Probability | Game |
Prosperity
Normal
Recession | Rs.
20,000
15,000
9,000 |
0.2
0.5
0.3 | Rs.
42,000
20,000
(5,000) |
| (i) | For each toy item, compute
(1) The expected value of the cash inflow in each of the next three years.
The standard deviation. | | (ii) | Which toy would you select and why? |
| 10 | (0) |
| 7. | (a) | Write a note on the Total Quality Management. | 5 | (0) |
| | (b) | Construct both X and R chart from the following data assuming each sub–group contains four samples: Sub–group
number | X | R | Sub–group
number | X | R | 1
2
3
4
5
6
7
8
9
10 | 6.36
6.38
6.35
6.39
6.32
6.34
6.40
6.33
6.37
6.33 | 0.10
0.18
0.17
0.20
0.15
0.16
0.13
0.18
0.16
0.13 | 11
12
13
14
15
16
17
18
19
20 | 6.32
6.30
6.34
6.39
6.37
6.36
6.35
6.35
6.34
6.34 | 0.18
0.10
0.11
0.14
0.17
0.15
0.18
0.13
0.18
0.16 |
The constant values are given below: Sub–group
size | A2 | D3 | D4 | 2
3
4
10 | 1.88
1.02
0.73
0.31 | 0
0
0
0.22 | 3.27
2.57
2.28
1.78 |
(Only control limits are to be calculated.) | 10 | (0) |
| 8. | Write short notes on (any three): | 5x3 | |
| | (a) | Theory of Constraint; | | (0) |
| | (b) | Value Chain Analysis; | | (1) |
| | (c) | Balanced Score Card; | | (0) |
| | (d) | "Zero Defects" and "Right First Time" — Philip Crosby. | | (0) |
