Operations Management Old Question Paper Year 2016 – Tribhuvan University | BBA

Operations Management Old Question Paper Year 2016 | Tribhuvan University | Program BBA

Group “A”

Brief answer questions:       [10*1=10]

1) Write the four differences between intermittent and continuous production system.

2) Define productivity with one example.

3) List the components of operations strategy.

4) What is concurrent engineering?

5) List out the major queue disciplines.

6) Differentiate between product layout and process layout.

7) Mention the application of assignment problem.

8) What do you understand by ISO 9000?

9) List down seven tools of quality.

10) Give the concept of six-sigma.


Group “B”

Short answer question

11) Define operation management and discuss its relationship with various organizational functions.

12) What is product design? Describe the product development process.

13) A manufacturing company makes two product X and Y out of raw materials A and B. the raw materials requirements are given below.

Raw materials Number of units of raw materials required to produce one unit of product
A 3 2
B 5 4

The unit profit contribution of the product X and Y is RS 6 and Rs 8 respectively. The numbers of unit of raw materials available are five and 9 respectively. Determine the optimum product mix that maximizes the total profit using simplex method.

14) New Horizon Company has three plants in K1, K2, and K3 and four warehouses in B1, B2, B3 and B4. The qualities available at the plants are respectively 6, 7 and 9 whereas the demands at warehouses are 6, 4, 6, and 2 respectively. The costs of transportation are observed as follows.

Plants Warehouses
B1 B2 B3 B4
K1 9 12 9 6
K2 7 3 7 7
K3 6 5 9 11

15) What is aggressive planning? Describe various aggressive planning options.

16) A firm with uniform demand for its product is managing its inventory system with EOQ 320 units. Number of order per year is 12 and order preparation cost is $50 per order. Find (i) what value of the holding cost adjusts the system? (ii) re-order level (lead time is 10 days)


Group “C”

Comprehensive answer question

17) Read the following case analytically and answer the following questions.

In the quest-for the perfect pair of jeans, shoppers today have more choices they are turning to high-end options form the premium DENIM category. The number consumers willing to drop $50, $100 or even more on a pair of jeans has skyrocketed over the past decade, making for “a remarkable success story”, according to Marshal Cohen, chief industry analyst with leading retail market research company. “Just a decade ago, purchases of jeans that cost $50 or more accounted for only 7 percent of the overall Denim business and now it is closer to 17 percent,” 

The idea of luxury Denim has also changed consumer mindset about the use and cost of jeans, which have evolved from their utilitarian history into today’s must-have wardrobe staple. “When consumers today see jeans for $150 dollars, they feel if the jeans fit well and are from a visible brand, it is worth the investment. The consumer’s appetite and willingness to spend more money on Denim has been stretched, and that’s starting to pay off for the upper-end brands,” Cohen explains. “The popularity of the luxury Denim category is based on consumers’ desire to show off their status. The jeans make them feel like part of the in’ crowd, adds Nicolas Peyrache, director of Denim design for Lucky Brand Jeans. “In the last year or so, luxury spending has picked up again and the premiums Denim brands are benefiting form that” Kurz says. “Even throughout crisis, the premium brands suffered the least.”

As consumers become more aware of the impact of offshore manufacturing on U.S. jobs as well as the labor and environmental abuses common in many low-cost manufacturing locations, made-in-America products are increasingly in demand. “Customers want to buy garments at come form places where they know the supply chain is legal and ethical, and the companies are not damaging the environment or paying air wages,” says Jeff Shafer, founder and president of L.A. based Agave Denim, a premium brand known for its organic, high-end textiles.

Patriotism and environmentalism aside, an L.A. location is smart business companies making premium jeans. Because L.A is home to a myriad of company devoted to Denim, each step in the process of putting together pair of Jeans can be completed practically in the same zip code. Brands can keep tight eye on quality control while maintaining flexibility and collaboration. 

The premium Denim business thrives in LA because all the greatest development facilities are here like wash houses and contractors. They are essential to creating new washes, finishes and innovative details to keep Denim fresh and relevant,” explains Peyrache of Lucky, which produces its luxury vintage line, Lucky Legend, in L.A. 

To get the high quality and consistent fits we demand requires having the laundries local to production,” adds Agave’s Shafer, who works hand-in- hand with LA. contract manufacturers on sourcing fabric, bindings, trim, buttons and labels; and with pattern makers on perfecting fit. “Being in LA gives us the ability to be on top of our production and make sure that every cut fits and all the jeans are of the highest quality.” 

Wash has become a key ingredient in the Denim recipe, and each high-end brand has its own preferences, guarding their wash formulas like top-secret documents. “The wash is what gets customers to pick a pair of jeans up off the rack,” explains Wesley Chung, president of US Garment, which does premium washing for a number of brands including 7 for All Mankind, Hudson Jeans, Polo Black Label, and Levi’s. The company- which maintains a 72,000 square-foot facility, one of the largest in the United States-credits its LA. Area location for its ability to work closely with premium brands to develop custom washes. “The convenience and speed to-market in L.A. are second to none,” Chung says. “Fashions change quickly and being here allows us to adapt well because we can collaborate so easily.” 

The speed and collaboration are also a necessity, considering how many production steps go into each pair of jeans. The Lucky Legend line’s labor-intensive process, for example, starts with Peyrache “pulling information and inspiration from various resources to leverage trends that make the most sense for our brand.” Then, after its design and merchandising teams have settled in the right fabrics and styles for the collection the production and manufacturing process beings. “Our first sets of fit samples arrive and we ensure the perfect fit. Once the fit is approved it goes to marking, grading and cutting. When the sewing is done the final style will go to laundry for the wash process which will include dry and wet processes like stone wash, resin, hand sanding and whiskering. Peyrache explains, the jeans are then sent back to factory for finishing and finally shipped to Lucky’s DC for distribution. “More than 100 sets of hands touch a single before the customer even knows about it,” Peyrache notes.

The company wants to establish a p-chart to monitor the production process and maintain high quality. Denim believes that approximately 99.74 percent of the variability in the production process (corresponding to z=3.00) is random and thus should be within control limits, whereas 0.26% of process variability is not random and suggested that the process is out of the control. The company has taken 20 samples (1 per day for 20 days), each contain 100 pairs of jean as and inspected them for defects, the results of which are as follows.

Sample No. Number of Defectives
1 6
2 0
3 4
4 10
5 6
6 4
7 12
8 10
9 8
10 10
11 12
12 10
13 14
14 8
15 6
16 16
17 12
18 14
19 20
20 18


  1. Explain the various location selection factors given in the case and what other factors do you think necessary for selection for a location for a jeans manufacturing company? 
  2. What are the competitive priorities mentioned in the case? Explain.
  3. Describe the TOM’s philosophical elements that lead to Denim’s Success in achieving quality. 
  4. Find the control limits for p chart and determine whether the process is in control from figure. 


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