CENTRE FOR CONTINUING EDUCATION

EXECUTIVE MBA
(OIL & GAS MANAGEMENT)

BATCH: 2009-2011 JULY

SEMESTER: 1 SEMESTER
ST

NAME: _______________________

ROLL NO: _______________________

ASSIGNMENT

FOR

OPERATIONS & MATERIAL MANAGEMENT

MBCQ 722

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

 OPERATIONS & MATERIAL MANAGEMENT (MBCQ 722)

MAX MARKS 100

SECTION-A
All questions are compulsory and carry 2 marks each (Word limit: max. 100 words).

i) Principles of layout
ii) Inventory is a necessary evil. Comment.
iii) Subcontracting plays an important role in larger organizations. Comment.
iv) Methods of Plant Location
v) Acceptance sampling in quality control
vi) Organizations should go for Six Sigma Certification. Express your opinion.
vii) Quality is not free of cost. Comment.
viii) Critical activities are crucial in project management.
ix) ISO 9000 Certification
x) Capacity Planning

SECTION-B
All questions are compulsory and carry 10 marks each.

1. What are the benefits of SQC? Discuss the role or quality control in refineries.
2. Describe the steps involved in a Purchase process of any product/ equipment of any
organization.
3. Define the scope and importance of MRP in material management.
5. A group of professionals intends to select the best out of three sites for setting up a
petrochemical plant. The data for these sites is given below:

Site
Sl No. Particulars
X Y Z
b. Investment in Land 200 300 150
c. Investment in other capital assets 100 100 200
d. Expenses on Raw material 100 110 130
e. Wages / Salaries 40 50 30
f. Expenses on Utilities 60 60 30
g. Expenses on Distribution 60 50 70
h. Total Sales 410 590 470
(* Data is expressed in Million dollars)
Suggest the suitable site.

6. Write short notes on the following:

a) Vendor Rating
b) Tender

SECTION-C
All questions are compulsory.
7. Attempt the following caselet
(30 marks)
A petrochemical manufacturing company procures a specific chemical compound which
costs Rs. 100 per kg. The cost incurred in placing the order has been worked out as Rs.
15 per order. The cost incurred in storage is 5% of purchase price per unit and 4% are
insurance charges and 2% are expenses on misc. heads related to holding the
compound. Annual usage is 5000 kg. Buffer stock maintained is 200 kg and average
lead time is 5 days.
Calculate the following:
a) EOQ
b) Total inventory cost
c) ROL
d) Maximum Inventory

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