Birla Institute of Technology & Science, Pilani

Distance Learning Programmes Division

First Semester 2008-2009
Mid-Semester Test
(EC-1 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.
4.

Q.1

: ET ZC412
: PRODUCTION PLANNING & CONTROL
: Closed Book
: 40%
No. of Pages
=2
: 2 Hours
No. of Questions = 6
: 03/08/2008 (FN)

Please follow all the Instructions to Candidates given on the cover page of the answer book.
All parts of a question should be answered consecutively. Each answer should start from a fresh page.
Mobile phones and computers of any kind should not be used inside the examination hall.
Use of any unfair means will result in severe disciplinary action.

Microcomp is a U.S. based manufacturer of personal computers. It is planning to

build a new manufacturing and distribution facility in either South Korea, China,
Taiwan, the Philippines or Mexico. The cost of the facility will differ between
countries and will even vary within countries depending on economic and political
climate, including monetary exchange rates. The company has estimated the
facility cost (in $ millions) in each country under three different future economic /
political climate as follows:
Country
South Korea
China
Taiwan
Philippines
Mexico

Economic / Political climate

Decline
Same
Improve
21.7
19.1
15.2
19.0
18.5
17.6
19.2
17.1
14.9
22.5
16.8
13.8
25.0
21.2
12.5

Determine the best decision using the following decision criteria:

a. Minimin
b. Minimax
c. Hurwicz ( = 0.40)
d. Equal likelihood
Q.2

[6]

List down various techniques for improving the quality of design. Explain any one
of the techniques in detail.
[6]

ET ZC412

(EC-1 Regular)

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ET ZC412 (EC-1 REGULAR)

Q.3

FIRST SEMESTER 2008-2009

PAGE 2

The Burger Doodle restaurant chain uses a distribution centre to prepare the food
ingredients it provides its individual restaurants. The company is attempting to
determine the location for a new distribution centre that will service five
restaurants. The grid-map coordinates of the five restaurants and the annual
number of 40-foot trailer trucks transported to each restaurant is as follows:

X coordinate
Y coordinate
Annual truck
shipments

1
100
300

2
210
180

Restaurant
3
250
400

30

25

15

4
300
150

5
400
200

20

18

a. Determine the least-cost location using the centre-of-gravity method.

b. Plot the five plants and the proposed new distribution centre on a grid map.
c. The Burger Doodle restaurant chain is considering three potential sites, with
the following coordinates for its new distribution centre:

X - coordinate
Y coordinate

A
350
300

B
150
250

C
250
300

Determine the best location using the load-distance formula, and plot this
location on a grid map with the five plants.
d. How does this location compare with the location determined in Part (a)? [10]
Q.4

Three production processes automated (A), cellular manufacturing (C), and job
shop (J) have the following cost structure:
Process Fixed cost
per year
(in $)
A
110,000
C
80,000
J
75,000

Variable cost
per unit
(in $)
2
4
5

a. What is the most economical process for a volume of 10,000 units per year?
b. At what volume would each of the processes be preferred?
c. What is the annual break-even quantity for the automated process (i.e. A) if
the selling price of product is $14 per unit?
[6]
Q.5

Draw the process flow chart for the assembly of a ballpoint pen. Assume that each
component is fabricated and available in stores. The operation starts from getting
the components from store and ends with making a pack of 10 pens.
[6]

Q.6

Define Cost of Quality and discuss the concept in detail.

[6]

*******
ET ZC412

(EC-1 Regular)

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