Operations Management

AEREN FOUNDATION’S

Maharashtra Govt. Reg. No.: F-11724

AN ISO 9001:2008 CERTIFIED INTERNATIONAL B-SCHOOL

NAME

:

(NAME TO APPEAR ON THE CERTIFICATE)

REF NO :

COURSE :

SUBJECT: Operation Management

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Total Marks: 80

Note : All Questions are Compulsory

Each Question Carries Equal Marks

1. Ilhan’s, a local bakery, is worried about increased costs – particularly energy. Last year’s

records can provide a fairly good estimate of the parameters for this year. Ilhan Balci,

the owner, does not believe things have changed much, but he did invest an additional 3

000 MU for modifications to the bakery’s ovens to make them more energy efficient. The

modifications were supposed to make the ovens at least 15 % more efficient. I. Balci has

asked you, as a brilliant graduate of EMU, to check the energy savings of the new ovens

and also look over other measures of the bakery’s productivity to see if the

modifications were beneficial. You have the following data to work with:

Production (dozen)

Labour (hours)

Capital Investment (MU)

Energy (kw-hrs)

Last Year

1500

350

15 000

3 000

Now

1500

325

18 000

2 750

2. Serra’s Ceramics spent 3 000 MU on a new kiln last year, in the belief that it would cut

energy usage 25 % over the old kiln. This kiln is an oven that turns “greenware” into

finished pottery. Serra is concerned that the new kiln requires extra labour hours for its

operation. Serra wants to check the energy saving of the new oven, and also to look over

other measures of their productivity to see if the change really was beneficial.

Serra has the following data to work with:

Last Year

This Year

Production (finished units)

4000

4000

Greenware (pounds)

Labour (hrs)

Capital (MU)

Energy (kWh)

5000

350

15000

3000

5000

375

18000

2600

Were the modifications BENEFICIAL?

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3. Suzan has a part-time “cottage-industry” producing seasonal plywood yard ornaments...