| 1. |
(a) |
What do the following abbreviations stand for?
(i) AQL; (ii) GRN; (iii) IPPS; (iv) CAE; (v) LTPD; (vi) DSCR; (vii) LOB; (viii) BOT; (ix) PIS; (x) DRC. |
1x10=10 |
|
(b) |
Match the words (a) to (j) under column "A" with the corresponding words under Column "B"s (i) to (x); |
½x10=5 |
| |
| Column A | | Column B |
| (a) | Consumer Risk | (i) | Maintenance Management |
| (b) | Factor comparison method | (ii) | Sugar Industry |
| (c) | Rotable spare | (iii) | Line balancing technique |
| (d) | Halsey System | (iv) | Priority rule |
| (e) | Baggase | (v) | Job evaluation technique |
| (f) | Smoothness index | (vi) | Value analysis |
| (g) | Shortest operation time | (vii) | O.C. Curve |
| (h) | Esteem value | (viii) | Learning Curve |
| (i) | Labour productivity | (ix) | Inventory control |
| (j) | Pareto analysis | (x) | Incentive plan |
|
|
|
(c) |
State whether the following statements are TRUE/FALSE. |
½x10=5 |
| |
| (i) | ERP indicates the degree of protection received from national competition. |
| (ii) | The preparation of DPR is the final and most important stage of pre-investment phase of project. |
| (iii) | The RAT schedule will contain only the key milestones. |
| (iv) | Royalty is the consideration paid to the collaborator for transfer of technical know-how on an annual basis over duration of agreement. |
| (v) | The cost overruns can occur at a particular stage in the execution of the projects. |
| (vi) | A value engineering review uses cost as the basis of review and ensures that value is included in the design. |
| (vii) | A detailed schedule of items with quantities and unit rates are specified in item rate contract. |
| (viii) | Benefit cost ratio is the ratio of present value of benefits to the past value of investment. |
| (ix) | The owner as well as the contractor are equally concerned with risk factors in a contract. |
| (x) | The project management process cannot be isolated from the environment. |
|
|
| 2. |
(a) |
What do the factors would you take into account in capacity determination of a biochemical industry? |
6 |
|
(b) |
A workshop has 20 identical machines whose failure pattern is as below: |
8 |
| |
| Elapsed time (months) | No. of machines failed |
1
2
3
4
5
6 |
4
3
3
3
3
4 |
|
|
|
|
It cost Rs. 150 attend to a broken-down machine. A maintenance contractor offers preventive maintenance of the machines and in return guarantees no failure of the machine for one year. He charges Rs. 450 per machine per year. Would you go for preventive maintenance contract? |
|
|
(c) |
What do you mean by "Plant Shut Down"? Under what situations will you advise to resort to Plant Shut Down? |
6 |
| 3. |
(a) |
Write down the preconditions of usability data for Collective Bargaining. |
12 |
|
(b) |
What are different causes of variation in quality? |
8 |
| 4. |
'Toyotoy' is a worldwide popular Brand among the toy industries. At present the producer of the 'Toyotoy' is producing 60000 units annually. The total capital employed in this business till date is Rs. 25 crores. The current year's surplus is Rs. 1.25 crores. Due to some imbalance the production shop's capacities are not fully utilized, indication of which is narrated below: |
|
| |
| Production shop | Capacity utilized |
Moulding shop
Assembly shop
Treatment shop |
75%
80%
75% |
|
|
|
The company at present operates in single working shift of 8 hours per day on an overage for 300 working days in a year. Due to some other litigation the company has to operate on single shift basis only.
An OMC consultant derived two alternatives after detailed study. |
|
|
Alternative (a) To hire out the surplus unutilized capacity in the production shops for which contract demand exists. The revenue-cost table of those alternatives are drawn. |
|
| |
| Shop | Hire Charges per hour (Rs.) | Incremental cost per hour (Rs.) |
Moulding shop
Assembly shop
Treatment shop |
10000
8500
6000 |
2000
2500
1500 |
|
|
|
Alternative (b) To increase the installed capacity to 75000 units by spending Rs. 3 crores on additional machines as required. The incremental revenue from the additional sales will be Rs. 500 per toy. In addition, tax benefit on an average will be 1% of the additional investment.
You are required to advise:
| (i) | On the average rate of return when the surplus capacity is hired out. |
| (ii) | On the average rate of return when the capacity is increased as decided. |
| (iii) | Alternative to which the company should opt for. |
|
8+8+4=20 |
