Dean's Office Official Model Question Paper

Answer: Operations Management: The systematic direction and control of the processes that transform inputs (raw materials, labor, capital, information) into finished goods and services.

$$\text{Inputs (5 Ms: Men, Machine, Material, Money, Methods)} \implies \text{Transformation Process (Value Addition)} \implies \text{Outputs (Goods \& Services)}$$

Answer:

Answer: Total Quality Management (TQM): An organization-wide management philosophy committed to the continuous improvement of products, processes, and culture to satisfy or exceed customer expectations. Two Pioneers:

1. W. Edwards Deming (Deming’s 14 Points, PDCA Cycle)
2. Joseph M. Juran (Juran’s Quality Trilogy: Planning, Control, Improvement)

Answer:

• Design Capacity: The theoretical maximum output rate that a facility can achieve under ideal, continuous operating conditions with zero breakdowns or interruptions.
• Effective Capacity: The maximum realistic output that a facility can sustain under normal operating conditions, accounting for work breaks, preventive maintenance, setup times, and scheduling delays:
  $$\text{Efficiency} = \frac{\text{Actual Output}}{\text{Effective Capacity}} \times 100\%$$

Answer: Just-In-Time (JIT): An operations philosophy originated by Toyota aiming to produce and deliver finished goods exactly when needed, in the exact quantities demanded, with zero waste. Ultimate Goal: Total elimination of non-value-adding waste (Muda), achieving zero inventory, zero defects, and zero machine downtime.

Solution: Facility Location Evaluation via Factor Rating Method

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Part (a): Weighted Location Score Computations

$$\text{Weighted Score} = \sum (\text{Factor Weight} \times \text{Rating})$$

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Part (b): Recommendation

• Hetauda Composite Score: 76.75
• Birgunj Composite Score: 73.00
• Bhairahawa Composite Score: 72.75

Recommendation: Management should select Hetauda. It achieves the highest composite weighted score (76.75), driven primarily by its immediate proximity to Makwanpur limestone deposits and lower freight distance to the dominant consumer construction markets of the Kathmandu Valley.

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Part (c): Qualitative Overriding Factors in Nepal

1. Political & Labor Union Climate: Frequent regional strikes (bandhs) or aggressive local trade union interference in specific industrial corridors can paralyze operations regardless of physical advantages.
2. Community & Environmental Clearances: Stringent opposition from local community settlements regarding cement dust pollution and EIA delays.
3. Disaster Vulnerability: Highway landslides along the Tribhuvan Highway and Narayangadh-Mugling corridor during monsoon seasons that sever transit access.

1. Comparative Matrix: Product Layout vs. Process Layout

Product (Line) Layout (Continuous Flow)
[Raw Materials] -> [Operation 1] -> [Operation 2] -> [Operation 3] -> [Finished Good]

Process (Functional) Layout (Intermittent Flow)
[Lathe Dept]    [Milling Dept]
     ^                |
     +--> [Welding Dept] <---+ [Assembly Dept]

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2. Cellular Manufacturing (Group Technology)

Cellular Manufacturing is an innovative hybrid layout that groups dissimilar machines into dedicated autonomous work cells designed to produce families of parts with similar geometric shapes or processing sequences.

Key Advantages:

1. Compressed Setup Times: Dedicated tooling within the cell eliminates lengthy machine re-setups.
2. Drastic Reduction in Work-In-Process (WIP): Parts move directly from machine to machine within the cell without waiting in transit buffers.
3. Enhanced Worker Motivation & Teamwork: Cross-trained small work teams take collective ownership of complete component production, enhancing quality control.

Solution: Project Network Analysis (CPM)

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Part (a) & (b): Forward Pass and Backward Pass Computations

• Forward Pass: $EF = ES + \text{Duration}$; $ES = \max(\text{EF of all predecessors})$.
• Backward Pass: $LS = LF - \text{Duration}$; $LF = \min(\text{LS of all successors})$.

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Part (c): Critical Path and Total Project Duration

• Possible Paths:
  1. $A \to C \to E \to G = 5 + 6 + 8 + 6 = \mathbf{25 \text{ Days}}$
  2. $B \to E \to G = 7 + 8 + 6 = \mathbf{21 \text{ Days}}$
  3. $A \to D \to F \to G = 5 + 4 + 5 + 6 = \mathbf{20 \text{ Days}}$$\mathbf{\text{Critical Path}} = \mathbf{A \to C \to E \to G}$$
     $$\mathbf{\text{Total Project Completion Duration}} = \mathbf{25 \text{ Days}}$$

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Part (d): Total Float (Slack) for Activities D and F

$$\text{Total Float} = LS - ES = LF - EF$$

• Activity D: $\text{Float}_D = 10 - 5 = \mathbf{5 \text{ Days}}$
• Activity F: $\text{Float}_F = 14 - 9 = \mathbf{5 \text{ Days}}$

Interpretation: Activities D and F have 5 days of allowable delay before they impact the overall 25-day project deadline.

1. Concept of Statistical Process Control (SPC)

Statistical Process Control (SPC) is the application of statistical techniques to measure, monitor, and control a production process to ensure it operates at its full potential, producing conforming output with minimal defect rates.

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2. Sources of Process Variation

                      Sources of Process Variation
                                   |
     +-----------------------------+-----------------------------+
     |                                                           |
Chance (Common) Causes                                   Assignable (Special) Causes
- Inherent, random background noise                      - Specific, identifiable disruptive events
- Natural machine vibration, temperature shifts          - Operator error, tool breakage, bad raw material
- Cannot be eliminated without major system redesign     - Can and must be identified and eliminated
- Process remains in statistical control                 - Process is out of statistical control

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3. Role of $\bar{X}$-Chart and $R$-Chart in Quality Maintenance

Control charts are graphical tracking tools displaying a Central Line (CL), Upper Control Limit (UCL), and Lower Control Limit (LCL):

1. Mean Chart ($\bar{X}$-Chart):
   • Monitors the central tendency of the process over time.
   • Detects process shifts, tool wear, or gradual calibration drift.
2. Range Chart ($R$-Chart):
   • Monitors the dispersion / variability of the process.
   • Detects increased erratic scattering or machine bearing looseness.

Operational Value: By plotting sample statistics in real-time, operators receive early warnings of assignable causes before defective goods are manufactured, shifting quality management from reactive post-inspection sorting to proactive defect prevention.

Case Solution: Jagadamba Steel Products Ltd. (JSPL)

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Part (a): Identification of Bottleneck & System Capacity (5 Marks)

The bottleneck is the operation with the lowest throughput capacity, which constrains the maximum output rate of the entire sequential system:

• Reheating Furnace: 60 tons/hr
• Continuous Rolling Mill: 50 tons/hr
• Quenching & Cooling Bed: 45 tons/hr (LOWEST)
• Shearing & Bundling: 55 tons/hr

$$\mathbf{\text{Bottleneck Workstation}} = \mathbf{\text{Thermax Quenching \& Cooling Bed}}$$

$$\mathbf{\text{System Design Capacity}} = \mathbf{45 \text{ tons per hour}}$$

$$\text{System Capacity per Day (16 hrs)} = 45 \times 16 = \mathbf{720 \text{ tons per day}}$$

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Part (b): Capacity Utilization and Plant Efficiency (5 Marks)

• Quarter working days = 75 days
• Design Capacity for Quarter: $75 \text{ days} \times 720 \text{ tons/day} = \mathbf{54,000 \text{ tons}}$
• Actual Output for Quarter = $\mathbf{43,200 \text{ tons}}$
• Operating hours planned = $75 \times 16 = 1,200 \text{ hours}$
• Lost hours (2 hrs/day) = $75 \times 2 = 150 \text{ hours}$
• Effective operating hours = $1,200 - 150 = 1,050 \text{ hours}$
• Effective Capacity for Quarter: $1,050 \text{ hours} \times 45 \text{ tons/hr} = \mathbf{47,250 \text{ tons}}$

1. Capacity Utilization:

$$\mathbf{\text{Utilization}} = \frac{\text{Actual Output}}{\text{Design Capacity}} \times 100\% = \frac{43,200}{54,000} \times 100\% = \mathbf{80.00\%}$$

2. Operating Efficiency:

$$\mathbf{\text{Efficiency}} = \frac{\text{Actual Output}}{\text{Effective Capacity}} \times 100\% = \frac{43,200}{47,250} \times 100\% = \mathbf{91.43\%}$$

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Part (c): Economic Order Quantity (EOQ) (5 Marks)

• Annual Demand ($D$): 160,000 tons
• Ordering Cost per order ($S$): Rs. 8,000
• Annual Carrying Cost per ton ($H$): Rs. 400

$$\mathbf{\text{EOQ}} = \sqrt{\frac{2 D S}{H}} = \sqrt{\frac{2 \times 160,000 \times 8,000}{400}} = \sqrt{\frac{2,560,000,000}{400}} = \sqrt{6,400,000} = \mathbf{2,529.82 \implies 2,530 \text{ tons}}$$

Total Annual Inventory Costs at EOQ:

$$\text{Annual Ordering Cost} = \frac{D}{\text{EOQ}} \times S = \frac{160,000}{2,529.82} \times 8,000 = \text{Rs. } 505,964$$

$$\text{Annual Carrying Cost} = \frac{\text{EOQ}}{2} \times H = \frac{2,529.82}{2} \times 400 = \text{Rs. } 505,964$$

$$\mathbf{\text{Total Inventory Cost (TIC)}} = \text{Rs. } 505,964 + 505,964 = \mathbf{\text{Rs. } 1,011,928}$$

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Part (d): Lean & TPM Turnaround Strategy (5 Marks)

1. Total Productive Maintenance (TPM) - 5S & Autonomous Maintenance: Empower machine operators to perform daily cleaning, lubrication, and visual tightening (Jishu Hozen), preventing unexpected mechanical failures.
2. Dedicated Backup Generator / Industrial Dedicated Feeder: Install automated high-voltage industrial UPS/generator changeovers to prevent rolling mill thermal freezing during NEA national grid tripping.
3. Debottlenecking the Cooling Bed: Invest in auxiliary forced-air cooling blowers and widen the transfer run-out tables, elevating the quenching bed throughput from 45 tons/hr to 55 tons/hr, aligning it with the continuous rolling mill and unlocking an immediate 22% expansion in plant capacity.