Production Planning And Control

Manufacturing time refers to the total time required to complete a manufacturing process, including both the set up time and the run time. Set up time is the time taken to prepare the equipment, tools, and materials before the actual production starts, while run time is the time taken for the actual production process. Therefore, manufacturing time is the sum of these two components.

Installed capacity refers to the maximum amount of power that a power plant or facility can generate under normal operating conditions. On the other hand, licensed capacity refers to the maximum amount of power that a power plant or facility is legally authorized to generate by the relevant regulatory authority. Therefore, it is possible for the installed capacity to be equal to or less than the licensed capacity, as the facility may not always operate at its maximum potential due to various factors such as maintenance, technical limitations, or market demand.

The stock of finished goods is based on sales forecast because it helps in estimating the future demand for products. Sales forecast takes into account various factors such as historical sales data, market trends, customer behavior, and competitor analysis to predict the expected sales volume. By using sales forecast, companies can determine the appropriate level of inventory to meet the anticipated demand and avoid stockouts or excess inventory. Therefore, sales forecast is crucial in planning and managing the stock of finished goods efficiently.

Job & batch production provides greater flexibility in production by allowing companies to adjust their production facilities shortly after a change in demand for products without incurring heavy expenses. This is because job & batch production involves producing goods in small quantities or batches, which allows for easier customization and adaptation to changing market demands. In contrast, continuous production involves producing goods in large quantities without the ability to easily adjust production levels, making it less flexible in responding to changes in demand.

The production control department is responsible for ensuring the smooth flow of work through different work centers or departments of a company. They coordinate and schedule production activities, monitor inventory levels, and allocate resources effectively to meet production targets. By overseeing the entire production process, the production control department plays a crucial role in maintaining workflow efficiency and meeting customer demands.

The ordering of raw material is based on sales forecast because it helps in predicting the demand for the final product. By analyzing the sales forecast, a company can estimate the quantity of raw materials required to meet the projected demand. This allows them to plan their production and inventory levels effectively, ensuring that they have enough raw materials on hand to fulfill customer orders without excess inventory or stockouts. Therefore, sales forecast plays a crucial role in determining the ordering of raw materials.

The cost involved in subcontracting some operations of an item outside the home plant is referred to as outside operations cost. This includes the expenses incurred in outsourcing certain tasks or processes to external parties or facilities. By subcontracting outside the home plant, a company can benefit from cost savings, specialized expertise, or additional capacity. This cost category helps track and analyze the expenses associated with these external operations.

The correct answer is "Reduces" because as the quantity increases, the procurement cost per unit tends to decrease due to economies of scale. When more units are produced or purchased, the fixed costs are spread over a larger quantity, resulting in a lower cost per unit. This is a common phenomenon in many industries where bulk purchasing or production leads to cost savings. Therefore, it can be concluded that the procurement cost reduces as the quantity increases.

The make-or-buy decision is actually related to the profit of the factory. This decision involves analyzing whether it is more cost-effective for a company to produce a product or service in-house (make) or to outsource it from external suppliers (buy). By carefully considering factors such as production costs, expertise, quality control, and market conditions, a company can determine the most profitable option. Therefore, the statement that the make-or-buy decision is not related to the profit of the factory is false.

The given answer sequence, IV-I-II-V-III, minimizes the requirements of machine hours. This can be determined by calculating the total hours required for each sequence and comparing them. In this sequence, the total hours required for the facing & centering machine are 31 (15 + 16), for the copying lathe are 68 (40 + 16 + 12), and the total machine hours required are 99. Comparing this with the other given sequence, II-III-IV-I-V, the total machine hours required are 115. Therefore, the sequence IV-I-II-V-III minimizes the requirements of machine hours.

Time study is the most widely used work measurement technique because it involves observing and measuring the time taken by a worker to complete a specific task or activity. This technique helps in determining the standard time required for completing the task, identifying inefficiencies, and setting realistic production targets. Time study is widely used across industries to improve productivity, optimize resource allocation, and establish fair and accurate work standards. It provides a quantitative and objective method for measuring and analyzing work performance, making it a popular choice among organizations for evaluating and improving work processes.

The cycle time can be calculated by dividing the total work content by the number of work stations. In this case, the total work content is 32 and the number of work stations is 8. Therefore, the cycle time would be 32/8 = 4.

The data in respect of spindle nose pertains to tooling. This means that the information or specifications related to the spindle nose, such as its size, type, or compatibility, are relevant and important for the selection and use of appropriate tools. It may include details about the tool holders, collets, or chucks that can be used with the specific spindle nose. This information helps in ensuring proper tooling setup and compatibility, thereby enhancing the efficiency and accuracy of machining operations.

The idle time on different machines can be calculated by subtracting the total processing time for each machine from the total available time. In this case, the total available time is the sum of the processing times for all the jobs.

For machine A, the total processing time is 25 + 26 + 24 + 22 + 24 + 28 = 149 hours. The total available time is 149 + 31 (idle time on machine B) + 58 (idle time on machine C) = 238 hours. Therefore, the idle time on machine A is 238 - 149 = 89 hours.

Similarly, for machine B, the total processing time is 16 + 20 + 17 + 20 + 21 + 18 = 112 hours. The total available time is 112 + 74 (idle time on machine A) + 58 (idle time on machine C) = 244 hours. Therefore, the idle time on machine B is 244 - 112 = 132 hours.

For machine C, the total processing time is 20 + 19 + 18 + 21 + 17 + 13 = 108 hours. The total available time is 108 + 74 (idle time on machine A) + 31 (idle time on machine B) = 213 hours. Therefore, the idle time on machine C is 213 - 108 = 105 hours.

Therefore, the idle time on different machines is 74 hours for machine A, 31 hours for machine B, and 58 hours for machine C.

The production output in the night shift is lower than the production output in the day shift. This could be due to various reasons such as fewer workers available during the night shift, lower energy levels and productivity during nighttime, or reduced efficiency due to fatigue. Additionally, there may be certain limitations or constraints during the night shift that affect production output, such as reduced availability of resources or equipment.

After filling in the required information, the detachable ticket is placed in a tray/box. This suggests that there is a designated location for collecting these tickets, which could be for further processing or storage. It ensures that the tickets are organized and easily accessible when needed. Placing the tickets in a tray/box also helps in preventing them from getting lost or misplaced.

The Physical Count method is suitable for workshops employing few machines because it involves physically counting the inventory items in the shop. This method is practical when there are only a few machines to monitor and it is feasible to physically count the items. It may be more time-consuming and challenging to implement in workshops with a large number of machines or complex production processes. Therefore, for workshops employing few machines, the Physical Count method is a suitable approach to collect information about the inventory.

MNG analysis helps to identify non-existing items for which the store keeps bin cards, wastes computer memory, or wastes computer stationary while preparing the stores ledger. This analysis allows the store to identify and eliminate any unnecessary or redundant items, saving resources and improving efficiency.

If efficiency is higher, it means that the manufacturing process is more effective and productive. This implies that the resources are being utilized more efficiently, resulting in a decrease in the time required to complete the job. Therefore, the correct answer is "Less".

In ABC analysis, the classification is based on cumulative cost. This means that items are categorized according to their total cost over a specific period of time. Cumulative cost takes into account both the carrying cost and any other costs associated with the item, such as ordering or storage costs. By classifying items based on cumulative cost, businesses can prioritize their inventory management and focus on the items that contribute the most to their overall costs.

Tasks are grouped so that their total time is preferably equal to or little lesser than the time available each work station. This ensures that the work stations are not overwhelmed with tasks and can be completed within the allocated time. By grouping tasks in this manner, the efficiency and productivity of the assembly line can be maximized, as each work station can focus on completing their assigned tasks without any delays or bottlenecks.

The administrative lead time refers to the time involved in processing an order, including the period until the next review. This lead time is internal to the organization and does not involve any external factors. Therefore, the correct answer is "Internal."

In VED analysis, items are classified into three categories: Vital, Essential, and Desirable. Vital items are those that are critical for the functioning of an organization and their unavailability can lead to severe consequences. However, the statement suggests that A type items are always vital under VED analysis, which is not true. The classification of items into VED categories is based on their criticality and not their type. Therefore, the statement is false.

When buying for a large quantity (C), it is more efficient and cost-effective to purchase in large quantities as well. This allows for bulk discounts, reduces the number of transactions, and minimizes logistical complications. Therefore, the correct answer is "Large" quantities.

The LOB technique, which stands for Line of Balance, is a scheduling method used in project management. It involves dividing a project into separate activities and organizing them in a linear sequence. The use of computers enhances the accuracy and speed of this technique by automating calculations, enabling quick adjustments to the schedule, and providing real-time updates. Computers can handle complex calculations and store large amounts of data, making them an ideal tool for optimizing the LOB technique.

By increasing profit and decreasing inventory, the company can improve its return on investment (ROI). Increasing profit means that the company is generating more revenue and reducing expenses, resulting in higher profitability. Decreasing inventory means that the company is effectively managing its inventory levels, avoiding excess stock and associated holding costs. This allows the company to optimize its resources and improve its ROI by generating more profit with fewer inventory expenses.

Work measurement is useful for choosing between two alternate methods of production. Work measurement involves analyzing and quantifying the time and effort required to complete a task or process. By accurately measuring the work involved in each method, one can compare the efficiency and productivity of the alternatives. This allows decision-makers to make informed choices based on objective data, ensuring the selection of the most effective and efficient method of production.

Production Planning and Control can make the supervisor ineffective because it involves the establishment of production targets, scheduling of work, and allocation of resources. When these processes are not properly managed or coordinated, it can lead to inefficiencies, delays, and a lack of productivity. This can ultimately make the supervisor's job more challenging and hinder their ability to effectively oversee and manage the production process.

To calculate the total procurement cost, we need to multiply the procurement cost per order by the frequency of ordering per year and the number of suppliers. In this case, the procurement cost per order is Rs 30, the frequency of ordering per year is 4, and the number of suppliers is 3. Therefore, the total procurement cost would be 30 x 4 x 3 = Rs 360.

In alternate routing, the delayed job may be routed to a costlier machine where the rate of production is faster. This means that by using a more expensive machine, the job can be completed at a faster pace, which can help in reducing the overall delay. The costlier machine is likely to have more advanced technology or higher capacity, allowing it to handle the job more efficiently and effectively.

Random fluctuation is considered for deciding analytical estimate. This means that when making an analytical estimate, random fluctuations are taken into account. These fluctuations can introduce uncertainty and variability into the estimate. By considering random fluctuations, the analytical estimate can provide a more realistic and accurate representation of the expected outcome.

The statement in the question is incorrect. In an assignment matrix, it is not necessary to determine the Jacobian of the determinant. The Jacobian matrix is used to calculate the determinant of a transformation, but it is not a requirement in an assignment matrix. Therefore, the correct answer is False.

The cost of power over the year for 40000 pieces with 2000 numbers rejection can be calculated by multiplying the Kwh consumption per 100 pieces (8.01) by the number of 100 pieces in 40000 pieces (400) and then multiplying it by the cost/kwh (Rs 0.80). This gives us a total cost of Rs 256.32. Adding the cost of power for the rejected pieces (2000 pieces x Rs 0.80) gives us a total cost of Rs 2692. Therefore, the correct answer is 2692.

A progress card typically contains less than 25 squares.

In a precedence diagram, the length of the arrow does not have a high degree of significance. The length of the arrow in a precedence diagram represents the duration or time required for a particular activity or task. The significance lies in the relationship between the different activities and the dependencies between them, rather than the length of the arrow itself. Therefore, the statement is false.

The correct answer is Cycle time constraint, Step or task constraint, Precedence constraints. In linear programming method of line balancing, these three types of constraints are considered. Cycle time constraint refers to the maximum time allowed for completing a cycle of tasks. Step or task constraint refers to the time required for completing each individual task. Precedence constraints refer to the sequence in which tasks need to be performed. These constraints are important factors in optimizing the efficiency and productivity of a production line.

Time study is a useful method of measurement for short cycle time operations because it allows for a detailed analysis of the time taken to complete each step in the process. This helps identify any inefficiencies or bottlenecks that may be causing delays and allows for improvements to be made in order to increase productivity and reduce cycle time. In short cycle time operations, even small improvements in time can have a significant impact on overall efficiency and output. Therefore, time study is an effective tool for optimizing and streamlining these types of operations.

The correct answer is "Line balancing." In the context of designing a line layout, the major problem is subdividing the work in a way that ensures a smooth flow. This process of dividing the work evenly among the workstations or operators is known as line balancing. It involves assigning tasks or steps to each workstation in a way that minimizes idle time and maximizes productivity.

Competitive rates are the two main requirements to secure maximum business from a customer. This means that in order to attract and retain customers, a business must offer rates that are competitive compared to other similar businesses in the market. Good quality alone may not be enough to secure maximum business, as customers often consider pricing as a key factor in their purchasing decisions. Therefore, offering competitive rates is crucial for a business to attract and retain customers, ultimately leading to maximum business success.

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An increase in inventory carrying cost actually decreases the Economic Order Quantity (EOQ). EOQ is a formula used to calculate the optimal quantity of inventory that should be ordered to minimize the total cost of ordering and carrying inventory. When the carrying cost increases, it becomes more expensive to hold inventory for longer periods, leading to a decrease in the EOQ. This is because ordering smaller quantities more frequently helps reduce the carrying cost. Therefore, the statement that an increase in inventory carrying cost increases EOQ is false.

This statement suggests that progressing is not a substitute for poor planning. In other words, even if one is making progress, it does not compensate for inadequate or insufficient planning. This implies that proper planning is essential for success, and simply making progress without a solid plan is not enough. Therefore, the correct answer is False.

In PERT (Program Evaluation and Review Technique), the use of dummy activities is actually essential. Dummy activities are used to depict dependencies between tasks that do not require any actual work to be performed. These activities help in accurately representing the sequence and dependencies of tasks in a project, which is crucial for effective project planning and scheduling. Therefore, the given statement is incorrect, and the correct answer is False.

Long-term forecasts typically cover a period of 5 to 10 years. This is because long-term forecasts aim to provide insights into future trends, market conditions, and potential risks and opportunities that may arise over a significant period of time. By looking ahead for 5 to 10 years, businesses and individuals can make more informed decisions and develop strategies that align with their long-term goals and objectives. This time frame allows for a more comprehensive analysis of various factors that may impact the future, such as economic conditions, technological advancements, and demographic changes.

The explanation for the given correct answer is that the curve fitting method of statistical forecasting does not necessarily use a curve line approach. It involves fitting a mathematical function to a set of data points, which may or may not result in a curve line. Therefore, the statement that the curve fitting method uses a curve line approach is false.

The effective capacity per period is calculated by multiplying the net capacity with labor efficiency. This calculation takes into account the actual capacity of the system, as well as the efficiency of the labor force in utilizing that capacity. By multiplying these two factors together, we can determine the effective capacity, which represents the maximum amount of output that can be achieved in a given period, taking into account both the available capacity and the efficiency of the labor force.

The correct answer is 1952. The LOB (Line of Balance) technique was devised by the US army in this year. This technique is used in project management to plan and control repetitive activities, especially in construction projects. It helps in visualizing the sequence and duration of activities, ensuring efficient resource allocation and timely completion of the project.

The development of additional vendors/suppliers depends on sales forecast because it provides an estimation of the future demand for a product or service. By analyzing the sales forecast, a company can determine if they need to increase their capacity or expand their supply chain to meet the anticipated demand. This information is crucial for identifying the need for additional vendors or suppliers to ensure a smooth and efficient supply of goods or services to customers.

Non-moving items should be excluded from ABC Analysis because they are items that have not been sold or used for a long period of time. Including them in the analysis would not provide accurate information about their importance or value. ABC Analysis is a technique used to categorize items based on their significance, and non-moving items do not contribute to the overall inventory management and decision-making process. Therefore, excluding them allows for a more focused and effective analysis of the items that are actually moving and impacting the business.

In order to operate a fixed order quantity system, three parameters need to be fixed: minimum stock, standard reorder quantity, and re-order point. The minimum stock refers to the minimum quantity of inventory that should be maintained at all times. The standard reorder quantity is the predetermined quantity that should be ordered each time an order is placed. The re-order point is the inventory level at which a new order should be placed to replenish the stock. These parameters ensure that the inventory is managed efficiently and that orders are placed in a timely manner to avoid stockouts.

In PERT (Program Evaluation and Review Technique), the use of dummy activities is essential. Dummy activities are used to represent dependencies between tasks or events that do not require any time or resources. They help in accurately depicting the logical sequence of activities and ensure that the network diagram is properly constructed. Without the use of dummy activities, the network diagram may not accurately represent the project's critical path and could lead to incorrect scheduling and resource allocation. Therefore, the statement "In PERT, use of dummy activities is not much essential" is false.

Transit time for manufactured items should be considered even if it is insignificant. This is because transit time can have an impact on the overall efficiency and effectiveness of the manufacturing process. Even if the transit time is minimal, it can still contribute to delays, bottlenecks, and potential disruptions in the supply chain. Therefore, it is important to take into account transit time and find ways to minimize it in order to optimize the manufacturing process.

If the desired production rate per day is to be doubled while keeping the available time per day constant, the cycle time will need to be reduced by 0.5. This means that each cycle of production will need to be completed in half the time it currently takes.

The statement is false because in VED analysis, C type items can be vital depending on their criticality and availability. VED analysis categorizes items into three categories: Vital, Essential, and Desirable. While Vital items are considered the most critical and necessary for the organization's functioning, Essential and Desirable items are also important but to a lesser extent. Therefore, it is possible for C type items to be vital under VED analysis if they are deemed critical for the organization's operations.

The weaknesses of the PPC department can be studied based on the failures in delivery commitment, cancellation of orders, and complaints from customers. These factors indicate that the department is not effectively managing the production and delivery of orders. Failures in delivery commitment suggest that the department is not meeting the promised deadlines, which can result in customer dissatisfaction. Cancellation of orders indicates a lack of proper planning and coordination within the department. Complaints from customers highlight issues with the quality or timely delivery of products, which can harm the reputation of the company.

The statement is false because in order to complete a project on time, each critical activity must be completed in time. Critical activities are those that have a direct impact on the project's timeline and are essential for its successful completion. If any critical activity is delayed or not completed in time, it can cause delays in the overall project timeline and potentially lead to project failure. Therefore, it is necessary for each critical activity to be completed in a timely manner to ensure the project is completed on time.

The statement "A type items are always vital under VED analysis" is false. VED analysis categorizes inventory items based on their criticality and importance. VED stands for Vital, Essential, and Desirable. While it is true that Vital items are always considered important and critical, it does not imply that all A type items are always vital. The categorization of items as vital, essential, or desirable depends on their specific characteristics and importance in the context of the organization's operations. Therefore, the given statement is incorrect.

Batch production requires high capital investment as compared to job production because in batch production, large quantities of products are produced at once using standardized processes and equipment. This requires setting up a production line, purchasing specialized machinery, and training workers to operate the equipment efficiently. These initial investments in infrastructure and equipment result in higher capital requirements. On the other hand, job production involves producing customized products in small quantities, which can be done with less specialized equipment and lower initial investments.

If more variety is to be manufactured, the manufacturing facilities would have to be commonised. This means that the facilities would need to be standardized and made more uniform in order to accommodate the production of different varieties. By commonising the manufacturing facilities, companies can streamline their processes and reduce costs by using the same equipment and resources for multiple products. This allows for greater flexibility and efficiency in production, ultimately enabling the company to meet the demands of a wider range of products.

The methods for recording actual progress of work for shop orders are progress card, display board, and network updating. A progress card is a document that tracks the progress of each shop order, providing details such as start and end dates, completion percentage, and any delays or issues encountered. A display board is a visual tool that shows the status of each shop order, allowing workers and managers to easily see the progress and identify any bottlenecks or delays. Network updating involves updating the project network or schedule to reflect the actual progress of each shop order, ensuring that the project plan remains accurate and up-to-date.

The correct answer is Denes Konig and Jeno Egervary. The assignment algorithm, also known as the Hungarian algorithm, was developed by these two Hungarian mathematicians. This algorithm is used to solve the assignment problem, which involves finding the optimal assignment of a set of tasks to a set of agents, minimizing the total cost or maximizing the total benefit. Denes Konig and Jeno Egervary's work on this algorithm has had a significant impact on various fields such as operations research, computer science, and economics.

The statement is incorrect. Random fluctuation is not the addition of cyclical fluctuation and seasonal fluctuation. Random fluctuation refers to unpredictable and irregular variations in data that cannot be attributed to any specific pattern or trend. Cyclical fluctuation refers to repetitive patterns or cycles that occur over a longer time period, while seasonal fluctuation refers to regular patterns that occur within a shorter time period, such as seasons or months. Therefore, random fluctuation is distinct from cyclical and seasonal fluctuations.

In a fixed order quantity system, safety stock is maintained to account for potential increases in demand during the lead time, as well as to fulfill demand if the lead time is extended. The re-order level is calculated by adding the safety stock to the average consumption during the lead time. The average inventory is determined by adding the safety stock to half of the reorder quantity. These characteristics ensure that there is enough inventory to meet demand and handle any unexpected fluctuations in demand or lead time.

The correct answer is "Shortest." In the process plan, the goal is to determine the most efficient and cost-effective path for each part to follow from the raw material stage to the finished product stage. By choosing the shortest path, unnecessary steps and delays can be minimized, resulting in a more streamlined and efficient production process.

Cyclical fluctuations refer to regular patterns of changes that occur over a specific period of time, such as economic cycles or seasonal variations. However, the given statement is incorrect as fluctuations due to changes in season are not called cyclical fluctuations. Seasonal fluctuations are a specific type of cyclical fluctuation that occur due to seasonal changes, but not all cyclical fluctuations are related to seasons.

HML Analysis is a method used to classify items based on their value or importance. It stands for High, Medium, and Low analysis. This analysis helps in prioritizing items and making decisions regarding inventory management, pricing, and resource allocation. It categorizes items into three groups based on their impact on the organization's goals and objectives. High-value items are given more attention and resources, while low-value items are managed with less priority. This analysis enables businesses to focus on the most critical items and optimize their operations accordingly.

The statement is false because in order to complete a project on time, it is necessary for each critical activity to be completed in time. Critical activities are those that have a direct impact on the project's timeline and are essential for its successful completion. If any critical activity is delayed or not completed in time, it can cause delays in the overall project schedule and potentially lead to project failure. Therefore, it is important to ensure that all critical activities are completed within their designated timeframes to meet project deadlines.

A poor material handling system in an organization can lead to various negative consequences. Firstly, it can result in damage to the material or product being handled, which can lead to financial losses and affect the quality of the final product. Secondly, it can cause delays in the supply of material, disrupting the production process and potentially leading to customer dissatisfaction. Lastly, accidents can occur while handling materials, posing a risk to the safety of employees and potentially causing injuries or even fatalities.

The earliest start time of an activity is determined by the earliest event time of the tail event. This is because the tail event represents the end of the activity, and the earliest start time of the activity cannot be earlier than the time at which the tail event occurs. Therefore, the earliest start time is directly linked to the earliest event time of the tail event.

The correct answer is Standard reorder quantity, Re-order point, and Minimum stock. These parameters are essential for operating a fixed order quantity system. The standard reorder quantity determines the quantity of items to be ordered when the inventory reaches a certain level. The re-order point indicates the inventory level at which a new order should be placed. The minimum stock represents the minimum quantity of items that should be maintained in inventory to avoid stockouts. These parameters help ensure efficient inventory management and prevent disruptions in the supply chain.

An increase in inventory carrying cost actually decreases the Economic Order Quantity (EOQ). EOQ is the optimal order quantity that minimizes the total cost of ordering and carrying inventory. When the carrying cost increases, it becomes more expensive to hold inventory for longer periods, leading to a smaller EOQ. This is because higher carrying costs incentivize companies to order smaller quantities more frequently to reduce the amount of inventory held at any given time. Therefore, the statement that an increase in inventory carrying cost increases EOQ is false.

The lead time is the time it takes for an order to be delivered once it has been placed. In this case, the annual usage of the material is 1200 units and the reorder point is at 120 units. This means that when the inventory reaches 120 units, a new order is placed. Since the annual usage is 1200 units, it would take 10 months to deplete the inventory completely. Therefore, the lead time must be longer than 10 months to ensure that there is no stockout. The only option that satisfies this condition is 4 months.

Moving average, exponential smoothing, and curve fitting are all types of analytical estimates. These methods are used to analyze and predict trends or patterns in data.

Moving average calculates the average of a set of data points over a specific period of time, providing a smoothed representation of the data.

Exponential smoothing assigns weights to recent data points, giving more importance to recent observations and less to older ones. This method is useful for forecasting short-term trends.

Curve fitting involves finding a mathematical function that best fits a set of data points. This allows for the creation of a curve that represents the overall trend of the data.

These three methods are commonly used in data analysis and forecasting to make informed decisions based on historical patterns and trends.

The Economic Order Quantity (EOQ) is a formula used to determine the optimal order quantity that minimizes the total cost of ordering and carrying inventory. In this case, the annual consumption is given as 20,000 units, the ordering and receiving cost is Rs 20 per order, the annual carrying cost is 10% of the unit cost of material, and the cost of material is Rs 50. To calculate the EOQ, we need to use the formula EOQ = sqrt((2 * Annual consumption * Ordering and receiving cost) / Annual carrying cost). Plugging in the given values, we get EOQ = sqrt((2 * 20000 * 20) / (0.1 * 50)) = sqrt(80000) = 20000. Therefore, the correct answer is 20000.

The statement is false because in CPM (Critical Path Method), the use of dummy activities is not essential. Dummy activities are used in PERT (Program Evaluation and Review Technique) to represent logical relationships between tasks, but they are not required in CPM. CPM focuses on determining the critical path and the minimum project duration, while PERT incorporates probabilistic time estimates and is used for projects with uncertain activity durations.

The earliest event time refers to the earliest possible occurrence time of an activity emanating from the event. It represents the earliest point in time when the activity can start or take place. This is the time at which all preceding activities have been completed and the event is ready to occur. It is important to consider the earliest event time in project planning and scheduling to ensure that activities are properly sequenced and dependencies are taken into account.

The effectiveness of sequencing model technique increases if the company has a backlog. This is because the sequencing model technique helps in prioritizing and scheduling tasks in an efficient manner. When there is a backlog, it means there are pending tasks that need to be completed. By using the sequencing model technique, the company can effectively prioritize and schedule these tasks, ensuring that they are completed in a timely manner. This ultimately increases the effectiveness of the technique in managing the backlog.

The statement is false because curve fitting method of statistical forecasting does not use a curve line approach. Instead, it uses mathematical equations to fit a curve to the historical data points and make predictions based on the fitted curve. This method is used to find the best fit curve that represents the relationship between variables, rather than drawing a curve line through the data points.

Flexibility and product variety are inter-related with each other. Flexibility refers to the ability of a company to adapt and respond to changes in the market, customer demands, and production processes. Product variety, on the other hand, refers to the range of different products or variations offered by a company. A company with high flexibility can easily introduce new products and adapt its production processes to accommodate a wide variety of products. Therefore, flexibility and product variety are closely connected, and they influence each other in a company's ability to meet customer needs and stay competitive in the market.

The correct answer includes MOSS, PCS, and GERT as commonly used network techniques other than PERT and CPM. MOSS stands for Multi Operation Scheduling System and is used for scheduling and optimizing operations in a project. PCS, which stands for Project Control System, is used for monitoring and controlling project activities. GERT, or Graphical Evaluation Review Techniques, is a network analysis technique that allows for probabilistic treatment of project uncertainties. These techniques are alternatives to PERT and CPM and provide different approaches to project planning, scheduling, and control.

The negative value of critical ratio is meaningless because the critical ratio is a measure used in project management to prioritize tasks based on their importance and urgency. It is calculated by dividing the time remaining until the deadline by the time required to complete the task. A negative value would imply that the task is already overdue, which contradicts the concept of critical ratio. Therefore, a negative critical ratio is not a valid or meaningful measure in project management.

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The software for CPA requires algorithms, program code, and a database. Algorithms are necessary to perform calculations and processes required for accounting tasks. Program code is needed to implement the algorithms and create the software. A database is essential for storing and managing the financial data and information. Additionally, an operating system is required to run the software, but it is not explicitly mentioned in the answer.

The fixed order quantity system has the following salient features: the reorder quantity is always the same, usually the economic order quantity; the time interval between deliveries varies; replenishment action is initiated when the stock on hand is just sufficient to meet demand during the lead time. These features ensure that the inventory is managed efficiently by maintaining a constant order quantity, adjusting the time interval based on demand fluctuations, and replenishing stock just in time to meet customer demand. Taking into consideration the percent cumulative cost of the item helps in optimizing inventory costs.

The correct answer includes STC, MMTC, and Public Sector Undertaking. These are all examples of government suppliers that fall under the 'G' group of GOLF analysis. STC and MMTC are both government-owned trading companies, while Public Sector Undertaking refers to any government-owned corporation or company. These entities play a crucial role in the procurement of items for the government, making them relevant to the GOLF analysis.

When there is tool breakage, it means that the tool being used for the job has malfunctioned or is no longer usable. This will require additional time to fix or replace the tool, resulting in a longer queue time. Job split up refers to dividing a single job into multiple smaller tasks. This can increase the overall time required to complete the job, leading to a longer queue time. Change in priorities means that the order in which jobs need to be completed has been altered. This can disrupt the existing queue and result in a longer wait time for certain jobs.

The correct answer is Time study, Work sampling, Production study. These three techniques are commonly used in mass production assembly shops to measure and analyze work processes. Time study involves observing and timing the tasks performed by workers to determine the standard time required for each task. Work sampling involves taking random samples of work activities to determine the proportion of time spent on different tasks. Production study involves analyzing the production process to identify bottlenecks, inefficiencies, and areas for improvement. These techniques help in optimizing productivity, identifying areas for improvement, and setting realistic production goals.

The correct answer is "Customer". The explanation for this is that LOB (Line of Business) focuses more on meeting the needs and preferences of the customers. It prioritizes customer satisfaction and aims to deliver products or services that cater to their specific requirements. On the other hand, MRP (Material Requirements Planning) primarily focuses on managing and optimizing the flow of materials and resources within a manufacturing process. While both approaches are important in business operations, LOB places a greater emphasis on customer-centricity.

The main characteristics of mass and flow production include a continuous flow of material, the utilization of low skilled labor, and easy supervision. In mass and flow production, materials are constantly moving through the production process, ensuring a smooth and uninterrupted workflow. Low skilled labor is often employed in these types of production systems as the tasks involved are more repetitive and require less specialized knowledge. Additionally, the supervision of these production systems is relatively easy due to the standardized processes and clear workflow, making it easier to monitor and manage the production line.

The statement is false because the Heuristics approach does not have a base of binary number theory. Heuristics is a problem-solving approach that involves using rules of thumb or educated guesses to find solutions. It is not based on binary number theory, which is a branch of mathematics that deals with binary numbers and their operations.

The correct answer is "Fixed order system, Min-max system, Re-order point system." In a replenishment system, the fixed order quantity system is referred to by different names. The first name, "Fixed order system," indicates that a specific quantity is ordered each time inventory reaches a certain level. The second name, "Min-max system," implies that there are minimum and maximum inventory levels, and orders are placed when inventory falls below the minimum level or reaches the maximum level. The third name, "Re-order point system," suggests that orders are triggered when inventory reaches a predetermined re-order point.

The correct answer is Hungarian Method. The assignment method refers to a mathematical technique used to solve optimization problems involving the allocation of resources to tasks. The Hungarian Method is a specific algorithm used to solve the assignment problem, which aims to find the optimal assignment of resources to tasks. It involves finding the minimum cost or maximum profit assignment by iteratively reducing the problem into a series of smaller subproblems. This method is widely used in various fields, including operations research and computer science.

When communicating with a customer about delays in delivery, it is important to provide them with information on the identification of the job, such as the order number or tracking information, so that they can easily reference it. Additionally, it is important to explain the reasons for the delays, whether it be due to production issues, logistical problems, or any other factors. Lastly, providing the customer with a revised date of delivery is crucial to manage their expectations and keep them informed about when they can expect to receive their order.

In the check list approach, a "fair" rating indicates that the existing PPC system requires some major improvements in the indicated areas. This means that the system is not performing well and needs significant enhancements to meet the desired standards. A fair rating suggests that there are noticeable deficiencies in the PPC system and it is necessary to make substantial changes to improve its effectiveness and efficiency.

The correct answer is that the total lead time is the sum of queue and transit time, delay time, manufacturing time, and order preparation time. This means that when calculating the total lead time for a process or project, all these factors need to be taken into account. Queue and transit time refer to the time it takes for a product to move through various stages or departments. Manufacturing time is the time needed to actually produce the product. Order preparation time is the time it takes to process and prepare an order. By considering all these factors, a more accurate estimate of the total lead time can be obtained.

The correct answer is XYZ. XYZ analysis is a classification method used to categorize items based on their capital lock up. This analysis helps in determining the importance of items in inventory management by considering their value, demand, and usage. It helps in identifying which items require closer monitoring and control based on their impact on capital investment.

The minimum requirements for application software for line balancing include a 1 Ghz processor, 1 Gb hard Disk free memory, and Windows or an equivalent operating system. These specifications are necessary to ensure that the software runs smoothly and efficiently on the user's computer. The processor speed of 1 Ghz ensures that the software can handle the calculations and processes required for line balancing. The 1 Gb hard disk free memory provides enough storage space for the software and its data. Lastly, Windows or an equivalent operating system is necessary for compatibility and proper functioning of the software.

Move orders are typically used in organizations that involve the movement of materials from stores to the first work center. This includes big steel plants, power plants, heavy machinery manufacturers, and high volume white goods manufacturers. In these types of organizations, there is a need to efficiently manage and track the movement of materials to ensure smooth production processes. Move orders help in coordinating and prioritizing the movement of materials, ensuring that they reach the appropriate work centers in a timely manner.

The given answer suggests that tool breakage, job split up, and change in priorities are emergent events that can cause the queue time to increase. When a tool breaks, it may take time to repair or replace it, leading to delays in the job. Similarly, if a job is split up into multiple tasks, it can increase the overall processing time and queue time. Additionally, a change in priorities can disrupt the planned order of jobs, causing delays and longer queue times. These events require additional time and resources, leading to a need for compensation in the queue time.

Labour efficiency factor is not applied after the capacity requirement of equipment is calculated. Instead, the labour efficiency factor is used to calculate the capacity requirement of equipment. It takes into account the efficiency of the labor force and helps determine the amount of equipment needed to meet the required production levels. Therefore, the correct answer is False.

The computerisation of line balancing requires system software, application software, and a user-friendly interface. System software is necessary to manage and control the computer system's operations, while application software is needed to perform specific tasks related to line balancing. A user-friendly interface is important to ensure that users can easily interact with the computer system and perform line balancing operations efficiently.

The correct answer is fitting shop order into uncommitted time available for a machine. Scheduling involves organizing and allocating tasks or orders in a way that optimizes the use of available resources, such as machines. This includes determining the time required for each operation and then fitting the shop orders into the uncommitted time slots available for a specific machine. By effectively scheduling and allocating resources, businesses can improve productivity and ensure that orders are completed in a timely manner.

The given answer correctly identifies the difficulties faced by SDE analysis, which include more delivery period, geographical location of the supplier, and reliability of suppliers. These factors can impact the efficiency and effectiveness of the analysis process. Longer delivery periods can delay the analysis and affect project timelines. The geographical location of the supplier can introduce logistical challenges and increase costs. The reliability of suppliers is crucial for obtaining accurate and timely data, as any inconsistencies or delays can affect the analysis results.

The status of the PPC (Production Planning and Control) department in a company for achieving informal status is affected by the manufacturing process, the repetitiveness of the work, and the number of workmen. If the manufacturing process is efficient and well-organized, it can contribute to the informal status of the PPC department. Similarly, if the work is highly repetitive, it allows for better planning and control, leading to a higher status. On the other hand, if the number of workmen is not very large, it can facilitate better coordination and communication within the department, contributing to its informal status.

The given answer lists the correct order of subsidiary orders, starting with Material Order, followed by Shop order and Inspection order. This suggests that Material Order is the first subsidiary order, followed by Shop order and then Inspection order. The order of the subsidiary orders is important in a business process as it determines the flow and sequence of activities.

Work measurement is the process of determining the amount of time required to complete a specific task or job. It involves analyzing and evaluating various factors such as the complexity of the task, the skill level required, and the available resources. PPC (Production Planning and Control) is responsible for planning and scheduling production activities, including work measurement. Industrial engineering is also involved in work measurement as it focuses on improving efficiency and productivity in the workplace. The production department is responsible for executing the production plan and ensuring that work is completed within the allocated time. Therefore, all three options - PPC, industrial engineering, and production department - are responsible for work measurement.

Overtime can be avoided by not accepting too many rush orders, as this puts additional pressure on the workforce and may require them to work extra hours to meet the deadlines. Unrealistic delivery dates can also lead to overtime as employees may need to work longer hours to complete the tasks within the given timeframe. Insufficient manpower or machines can result in overtime as the available resources may not be enough to complete the work on time. Excessive machine breakdowns can cause delays in production, leading to the need for overtime to catch up on the lost time.

The correct answer includes Vernier caliper, Micrometer screw gauge, and Strain gauge. These three measuring instruments are commonly used in various industries for precise measurements. The Vernier caliper is used to measure the dimensions of an object with high accuracy, while the Micrometer screw gauge is used for measuring small distances with even greater precision. The Strain gauge, on the other hand, is used to measure strain or deformation in an object, making it useful in engineering and material testing applications.

Job production requires the lowest capital investment compared to other production methods. This is because job production involves producing customized products or services in small quantities, often one at a time, to meet specific customer requirements. As a result, the production process is more flexible and adaptable, requiring less investment in specialized machinery, equipment, and infrastructure. In contrast, mass production or batch production methods typically require higher levels of capital investment to set up assembly lines, purchase large quantities of raw materials, and invest in automation technologies. Therefore, job production is the most cost-effective option in terms of capital investment.

PERT (Program Evaluation and Review Technique) is a project management method that uses specific terminology. A network diagram is a visual representation of project activities and their dependencies. It helps in understanding the flow of work and identifying critical paths. Events refer to specific points in time within the project, such as the start or completion of an activity. Slack is the amount of time an activity can be delayed without affecting the project's overall timeline. These terms are essential in PERT to effectively plan and manage projects.

The job card is not returned to the production planning and control department for reference and record upon completion of work. This statement is false.

The sequence 2-4-3-5-1 is the optimal sequence for processing the 5 jobs on machines M1 and M2. This sequence minimizes the total elapsed time, which is 28 hours. The idle time for M1 is 1 hour and for M2 is 2 hours.

The correct answer is Time study, Work sampling, and Production study. These techniques are commonly used in mass production assembly shops to measure and analyze work processes. Time study involves observing and timing each step of a task to determine the standard time required. Work sampling involves randomly observing and recording the activities of workers to estimate the proportion of time spent on different tasks. Production study involves analyzing the overall production process to identify areas for improvement and increase efficiency. These techniques help in optimizing productivity, identifying bottlenecks, and making informed decisions for process improvement.

When the actual demand far exceeds the forecast, it indicates that there is a higher demand for the product or service. This leads to better utilization of equipment as more equipment will be needed to meet the increased demand. Additionally, the project margin will increase as the company will be able to sell more products or services at a higher price. Lastly, there will be a higher material purchase as more materials will be required to fulfill the increased demand.

The correct answer includes three steps involved in process planning: enlisting features that influence the selection of the manufacturing process, preparing the sequence of basic operations, and writing down the route sheet. These steps are crucial in determining the most suitable manufacturing process, organizing the order of operations, and documenting the necessary steps to complete the production process efficiently.

The important considerations in scheduling are the degree of centralization, relative job priority, and load chart. The degree of centralization refers to how much decision-making power is centralized in the scheduling process. This can vary depending on the organizational structure and the level of autonomy given to different departments or individuals. Relative job priority involves determining the order in which jobs or tasks should be scheduled based on their importance or urgency. A load chart is a visual representation of the workload and capacity of resources, which helps in balancing and optimizing the scheduling process.

By minimizing the optimistic time, pessimistic time, and most likely time, the expected time can be minimized. The optimistic time represents the best-case scenario, while the pessimistic time represents the worst-case scenario. The most likely time is the most probable estimate. By minimizing these parameters, the range of possible outcomes is reduced, resulting in a more accurate and efficient expected time calculation.

HML Analysis helps in accessing storage and security requirements by analyzing the inventory levels and determining the appropriate storage conditions and security measures needed. It also helps in keeping control over departmental head level by providing insights into the inventory management practices of different departments and identifying areas where improvements can be made. Additionally, HML Analysis helps in determining the frequency of stock verification by analyzing the inventory turnover rate and identifying the optimal time for conducting stock checks.

Standard time accounts for contingency allowance, operator's rating/efficiency, and tool change time. Contingency allowance refers to the extra time allocated to account for unforeseen events or delays that may occur during the task. Operator's rating/efficiency takes into consideration the skill level and productivity of the operator performing the task. Tool change time accounts for the time required to change or adjust tools or equipment used in the task. These factors are considered in standard time calculations to ensure a realistic estimate of the time required to complete the task.

The detachable card contains information about the quantity of the product that has been produced, the specific operation that was performed, and the date on which the production was completed. This information is crucial for tracking and managing the production process, as it allows for accurate record-keeping and monitoring of progress.

The queue time is necessary to account for various delays and waiting periods that a job may experience during its processing. This includes waiting near the machines for its turn when there are other jobs ahead of it, as well as waiting after its completion until it is picked up and moved to the next machine or work center. Additionally, the queue time also factors in any extra time that may be required due to emergent situations, such as equipment breakdowns or unexpected delays.

The material control function includes various techniques such as make-or-buy decision, Pareto's analysis, and replenishment system. The make-or-buy decision involves determining whether to produce a product in-house or purchase it from an external supplier. Pareto's analysis is a method used to prioritize items based on their importance or impact. The replenishment system ensures that materials are restocked in a timely manner to avoid shortages. These techniques help in effectively managing and controlling the flow of materials within an organization.

The given activities of smoothing include reallocation of resources, improving utilization of resources, and conducting heuristic approach. Reallocation of resources refers to the process of redistributing resources to different areas or tasks in order to optimize efficiency. Improving utilization of resources involves finding ways to maximize the use of available resources to achieve better results. Conducting heuristic approach means using a problem-solving technique that involves trial and error or rule of thumb to find solutions. These activities are all part of the smoothing process.