CWA ICWA Final Stage III : Operations and Project Management and Control - June 2003

CWA ICWA - Final Stage III • Operations and Project Management and Control • June 2003

This Paper has 42 answerable questions with 0 answered.

I—13(OPM) Revised Syllabus
Time Allowed : 3 Hours	Full Marks : 100

Answer Question No. 1 which is compulsory and any two
from Section I & any two questions from Section II
SECTION I
Marks

Answer Question No. 1 which is compulsory and any two

from Section I & any two questions from Section II

SECTION I

Marks

(a)

What do the following abbreviations stand for?

1x5

(i)

CIM

(0)

(ii)

MTBF

(0)

(iii)

SWOT

(0)

(iv)

PLC

(0)

(v)

TOT.

(0)

(b)

Match the words (a) to (j) under Column A with the corresponding words under Column B's (i) to (x)

	Column A		Column B
(a)	Rotics	(i)	Maintenance Management
(b)	Rolling of Billet into Bar	(ii)	Flame Cutting
(c)	FCFS	(iii)	Statistical Quality Control
(d)	Power Metallurgy	(iv)	Locational Planning
(e)	Chain Pulley Block	(v)	Labour Cost
(f)	Down Time Analysis	(vi)	Flexible Manufacturing System
(g)	Proximity Factor	(vii)	Transportation of heavy Material
(h)	Control Chart	(viii)	Prioritisation
(i)	Oxy–acctylene Gas Torch	(ix)	Forming Process
(j)	Learning Curve	(x)	Cemented Carbide

½x10=5

(0)

(c)

State whether the following statements are True/False. You are not required to offer any justification/arguments for your answer:

½x10=5

(i)

A project is a non–scheduled set of activities aimed towards the creation of a particular asset as per planned specification.

(0)

(ii)

An entrepreneur desirous of investing on a project has to look for suitable opportunities.

(0)

(iii)

Diversification project represents project to increase the volume of production/service.

(0)

(iv)

Market appraisal of a project investment relates to find out the aggregate demand of the proposed product/service in future as well as the market share of the proposal under consideration.

(0)

(v)

The secondary data, collected through market survey, is specific for the project being appraised.

(0)

(vi)

The project work-break down structure breaks the project into a logical smaller task.

(0)

(vii)

Independent Float = Free Float – Head Event Slack.

(0)

(viii)

LOB is a device for planning and monitoring the progress of an order project or programme to be completed by a target data.

(0)

(ix)

Resource leveling is a network technique which is used for reducing the requirement of a particular resource due to its paucity.

(0)

(x)

The network based cost control system, known as PERT–COST system, consists of the planning and control cycle.

(0)

(d)

Define the following in not more than two sentences:

1x5=5

(i)

Bill of Material;

(0)

(ii)

Pre–investment Phase of Project Development Cycle;

(0)

(iii)

Limited Tender;

(0)

(iv)

Standard Time;

(0)

(v)

Operation Process Chart.

(0)

(a)

List some of the fundamental principles of Material Handling, briefly stating their salient features.

(0)

(b)

A factory produces three products A, B and C. The SMH/unit of A, B and C are 2, 3, and 4 respectively.

During a particular year the factory produced the following units of A, B and C

A — 10,000

B — 20,000

C — 30,000

During the year there were 120 Direct Labours and 300 working days. The hours worked per day was 8 hours.

Average absenteeism was 10%.

What was the Direct Labour Productivity of the factory during the year?

(0)

(a)

On scrutinising the overall productivity factors, you have found out a dismal performance in the Material Productivity area. You are to find methods/techniques for improving Material Productivity. State briefly your line of action.

(0)

(b)

M/s. EPC Ltd., has a manufacturing capacity of 1,00,000 units of Product 'A' per month. The selling price varies with volume as given below:

Volume in units per month		Selling price per unit (Rs.)
(i)	Up to 50,000	1.80
(ii)	50,001 to 80,000	1.70
(iii)	80,001 to 90,000	1.60
(iv)	Above 90,000	1.50

Fixed costs work out to Rs. 80,000 per month. But, for achieving a production beyond 60,000 units per month, three additional workers and beyond 80,000 units per month, five additional workers would be required.
Variable cost is Re. 0.30 per unit.
Average salary of a worker is Rs. 2,000 per month.

Find out the production volume at which profit will be the highest. Also calculate the maximum profit.

5+5=10

(0)

Write short notes on any four of the following:–

5x4=20

(a)

Methods used in Job Evaluation;

(0)

(b)

Retraining;

(0)

(c)

Line of Balance;

(0)

(d)

Plant Layout;

(0)

(e)

Performance appraisal.

(0)

(f)

Role of Cost and Management Accountant in Operations Management and Control.

(0)

SECTION II

SECTION II

Competent Automobile is an authorized service center of Maruti Cars. A new manager employed wants to analyse the efficiency of work and service personnel. To facilitate his analysis, he has classified the service procedure into the following seven activities:

Activity	Duration (Hrs.)	Precedence Activity
A B C D E F G	8 4 6 9 11 3 1	– – A B A C D,E,F.

Help him by –

(a) Drawing the network diagram [6]
(b) Finding the critical path. [4]
(c) Calculating the expected time for service of a car. [3]
(d) Amount of slack time for the technician in each activity. [3]
(e) Computing the Earliest Starting and Finishing Time [1+1=2]
(f) Computing the Latest Finishing and Starting Time [1+1=2]

(0)

(a)

Briefly bring out the basic differences between commercial calculation and social cost benefit computation in Project Analysis. The answer may be put up in a tabular format only.

(0)

(b)

A Project requires an initial cash outlay of Rs. 50,000 and offers an annual expected cash inflow of Rs. 40,000 for three years and has no salvage value. The risk coefficients for three years are estimated to be 0.80, 0.70, and 0.65 respectively. The risk free rate of interest is estimated to be 15%.
Given the PV factor @ 15% as 0.870 for 1st year, 0.756 for 2nd year, 0.658 for 3rd year.
Calculate the NPV of the Project.

(0)

(a)

The following data pertains to a project–

Activity	Normal time (days)	Crash time (days)	Cost slope (Rs.)
1 − 2 1 − 3 2 − 3 2 − 4 3 − 4	3 7 5 8 4	2 4 3 6 2	700 200 100 200 400

It is desired to compress the project to the least possible duration day by day.
You are required to compress the project day by day and estimate the total extra cost at each stage of the crashing.

(0)

(b)

An investor is willing to start a project in India. As a Cost Accountant, you are required to guide him for selection of projects.

(0)

Write short notes on any four of the following:

5x4=20

(a)

Consortium Lending;

(0)

(b)

Resource Leveling;

(0)

(c)

Capital Rationing;

(0)

(d)

Role of Communication in Project Management;

(0)

(e)

Important appraisal parameters in financial appraisal;

(0)

(f)

Detailed Project Report.

(0)

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