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    Prod 20

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    Prod 20

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    of 5

    UNIVERSITY OF GHANA

    (All rights reserved)


    END OF 2ND SEMESTER EXAMINATIONS: 2020/2021
    DEPARTMENT OF OPERATIONS AND MANAGEMEN-T INFORMATION SYSTEMS
    OMIS 302: INTRODUCTION TO PRODUCTION MANAGEMENT (3 credits)
    TIME ALLOWED: 2 % HOURS

    INSTRUCTIONS: Attempt any FOUR (4) questions.

    Question 1
    a. Serwaa Guitar Factory located at Ashaiman New York produces low-cost, highly durable
    guitars for beginners. Typically, out of the 120 guitars that begin production each month, only
    80 percent are considered good enough to sell. The other 20 percent are scrapped due to qualirj"
    problems that are identified after they have completed the production process. Each guitar sells-
    for GH¢350. Because some of the production process is automated, each guitar only requires
    10 labour bourse Each empleyee works an average -160 hours per month. Labour is paid at
    GH¢ 10/hour, materials cost is GH¢45 per guitar, and overhead is GH¢4,000.
    i. Calculate the labour productivity ratio (units per hour) for this production process. (3
    marks)
    ii. Calculate the total factor productivity ratio for this production process (Output should be
    measured in Cedis). (5 marks)
    iii. How many workers are needed to meet Serwaa Guitar's monthly production? (2 marks)
    b. After some study, the operations manageress, Serwaa recommends three options to improve the
    company's total factor productivity:
    Option 1: Increase the sales price by 10 percent. (3 marks)
    Option 2: improve quality so that only 10 percent are defective. (3 marks)
    Option 3: reduce labour, material, and overhead costs by 10 percent. (8 marks)
    (Hint: For each option, recalculate the total factor productivity)
    Which option has the greatest impact on the total factor productivity measure of this production
    process? (1 mark)

    Page 1 of5 Examiner: Dr. Joshua Ofori-Amanfo


    Question 2
    Eunice Broni is the audio engmeer for a Presbyterian Local Assembly at Dodowa. She is
    considering improvement measilires to-enhance the quality of-sound-during church service. She has
    made enquires form- Sweet MJ~ic located at the Aclilinota Mall and was presented with three
    1.1
    offers: Basic, Standard and Pro~~ssional sound systems. All the three ~ound systems consist offive
    separate components arrange1! in series with identical -reliabilities. The Basic system has
    component reliabilities of 0.90 and costs GH¢IO,OOO. The Standard system has component
    II
    reliabilities of 0_95 and costs GIiI¢20,000, and the Professional system has component reliabilities
    of 0.99 and costs GH¢35,000. :The cost of a failure-during a performance at church service is
    GH¢50,000.
    a. Calculate the reliability of e~ch system. (6 ~arks)
    b. Calculate the cost offailure+or each system. (9.marks)
    c. Based on the cost of failure calculated in (b) above which system· would you recommend? (1
    mark)
    d. Eunice has learned that each system described above can also be purchased in a Plus
    configuration, where each cJbponent has an identical backup, for double the original cost. With
    the Plus configuration, E+mce is considering a choice between the Standard and the
    Professional systems. Whicq. of these two systems would you recommend to Eunice based on
    Ii .
    the- cost of failure? (9 mar~) () ,
    i

    Question 3
    I

    Melcom Ghana Limited intend~ to build a new warehouse facility to serve its- stores in six regions
    in Ghana. The cities are Aflab, Obuasi, Mankessim, Takoradi and Tamale·. -The coordinates of
    these cities (in miles), using JAccra as the origin (0,0) of a set of coordinates, and the annual
    truckloads that supp-Iy each ci~ are shown in Table 1.
    Table 1: coordinateslilftbe Cities and Annual Truckloads
    Destination X y Quantity
    /;

    Aflao /1 350 185 1100


    Obuasi 250 350 550
    /i
    .. -
    Mankessim /:
    450 300 1000
    Takoradi 400 400 650
    Ii
    Tamale ..
    500 450 700
    Ii
    a. Determine the best Sit] using the centre-of-gravity technique (7 marks)
    b. Assume threeproposf sites are ?eing considered: .
    Sl.te1: X1 = 180'Y1 = 360
    Page 2 of5 Examiner: Dr. Joshua Ofori-Amanfo
    Site 2: X2 = 450, Y2 = 420
    Site 3: X3 = 350, Y3 = 250
    Which site should be selected based on the load-distance technique? (18 marks)

    Question 4
    GloryMens, an IT company belonging to Ms. Gloria Mensah has a project to design an integrated
    information database for Fidelity bank. Data for the project are given in Table 2. The company
    will incur GH¢ 1500 per day penalty for each day the project lasts beyond day 25-.

    Table 2: Project Activities and Times

    Activity Immediate Predecessor (s) Activity Time (days)


    A - 8
    B - 9
    C B 7
    D A 3
    E A,B 6
    F D,E 10
    G C,E 8
    II F,G 3

    a. Draw the network diagram for this project. (13 marks)


    b. Determine all paths through the network from node A to node H and the duration of each
    activity (6 marks)
    c. Determine the critical path and project completion time. (1 mark)
    d. Calculate the slack for each activity. (4 marks)
    e. Compute the penalty-charges the -company executing the project is likely to incur. (1 mark)

    Question 5
    a. -Peter Gyan is the SRC president for University of Ghana. During the long vacation, the SRC
    promotes the Legon brand with the wearing of specialised produced T-shirts. The T-shirts
    feature a special screen-printed logo thaLcan be expensive to make. Peter has contacted three
    suppliers, with diff€rent pricing packages, as shown in the 'fable 3.
    Table 3: Suppliers and their Cost Schedules

    lier
    A ointed Time
    Decathlon
    T-Shirt Kin

    Page 3 of5 Examiner: Dr. Joshua Ofori-Amanfo


    1. Peter is considering ~elling the T-shirts for GH¢8 each. What is the breakeven-point for
    package 1 (APPOinte~ Time) and package 2 (Decathlon) with a G-H¢8 price? (2 marks)
    ii. Which supplier woul~ you recommend if Peter expects to sell a minimum--of200 T-shirts?
    What is your reason for this choice? (5 mark)
    iii. Assuming the T -s~s would be sold at the same price regardless of the. logo package,
    create·a decision ruleifor Peter to use based on anticipated sales volume. (3 mark)

    b. Mama Grace Gifts Shop alsembles


    I.
    special gift packages during. the holiday season. The shop
    operates eight hours per ?y with a desired output of 380 gift packages per day. Hubert the
    operations manager would:like to organise the work as efficiently as possible. A list of tasks,
    task times; and precedencd :requirements are shown in the Table 4.
    I: .
    Table 4: ~ask, Task rimes and Prece~ence Ta~ks

    Task task Time (Seconds) Preceding Task


    A I] 60 -
    B I: 80 A
    C I 20 A
    i
    D 50 A
    E 90 B,C
    F 30 C,D
    G· I, 30 E,F
    H I: 60 G

    1.
    Ii . .
    Draw the precedencej. diagram. (5 marks)
    11. Compute the desired! cycle time. -(2 marks)
    111. What is the theoreti~al minimum' number of workstations required for this operation? (2
    marks) I: .
    IV. Assign tasks to workstations stating which tasks would be done in each workstation. (4
    marks) I: ' . . .
    v. What is the efficien¢y
    I
    of your balanced line? (2
    .
    marks)

    Page 4 of5 Examiner: Dr. Joshua Ofori-Amanfo


    Formulae she-et
    Q=~-
    p-vc

    c = production time available"


    d desired units of output '
    jl2 jl
    L q =J.LCJ.L-jl)
    - - ", W=_l_=L L= -
    J.L-jl jl p.-}..

    Output
    .Productivity == I
    nput

    Page 5 of5 Examiner: Dr . .Joshua Ofori-Amanfo

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