Industrial studies related questions - Science
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CW2 Online Assignment
Programme: BEng CAME/POM/COE/EPE/EIE/TE
Module Title: Industrial Studies
Module Code: MHH624713
Student No.
140444
Question 1:
A local company located in Nizwa assembles engines for customized trekking sport utility vehicle SUV. During the
year end 2019 financial review, the company is concerned with its bloated inventory cost for the past five years. The
profitability of the company has been declining year on year due to the effect of the increasing inventory costs. The
newly hired manager who is a mechanical engineer is tasked to look into this matter and will provide a
comprehensive proposal report to the company CEO to reduce the bloating inventory cost. The current consumption
or usage of parts of the assembly department is shown in Table Q1. This data shows the typical annual usage or
consumption of component parts for its engines. He found out that there is big mismanagement or neglect of the
company inventories. Currently, the company is ordering parts from its suppliers locally and abroad once every three
months.
(i) Develop an ABC analysis for the companys inventories. Show completely the results in tabular form using excel.
[6]
(ii) Create a PARETO analysis for the ABC analysis using excel
[4]
(iii) Considering your class A inventories, determine the economic order quantity EOQ using the following
assumptions; zero safety stock for each class A inventories, stocking cost is 10\% of the unit price, ordering cost for
any class A inventories is 120 OMR per order. Determine the cost savings if EOQ is followed instead of the current
ordering system of the company which is once every three months for class A inventories
[6]
Table Q1: Annual Usage of Component Parts
Part Number
111D
128H
196G
205Y
216U
217J
228G
235D
249E
258L
261K
272J
324H
333C
334U
352S
391J
421A
432S
436S
452F
462R
463H
478L
521I
532Q
610B
Annual quantity (unit)
31,821
49,199
7,172
2,854
2,950
3,150
824
62,381
13,268
2,131
19,503
4,195
21,997
2,136
7,507
12,126
2,120
4,087
4,526
72,560
3,253
3,937
2,532
26,766
2,764
1,061
28,741
Unit cost (OMR/unit)
1.00
0.50
22.40
270.00
12.80
122.40
98.40
1.80
6.30
62.40
1.20
9.00
1.50
15.40
24.00
19.20
51.60
9.60
7.60
0.25
13.50
16.80
132.00
1.20
13.80
144.00
5.10
[Total 16 marks]
Question 2:
(a) A Muscat Tools company manufactures toolkits and supplies to the local and overseas market within the GCC
region. In the assembly line, the kits are packed in the tool boxes. The company produces the specified demand
rate of toolkit in 8 hours per day with tasks, description of tasks, and time for each task shown in Table Q2a.
(i) Draw the precedence diagram and determine the cycle time, and number of workstations; [5]
iii) Balance the line using the longest task time rule, and determine the line efficiency.
[5]
Table Q2(a)
Demand rate
(units/day)
1225
Task
Description
Time (sec)
Predecessors
A
Open tool box and place on
assembly line
15
-
B
Place spanner in tool box
9
A
C
Place spark plug spanner in
tool box
7
A
D
Place screw driver in tool
box
7
A
E
Close internal lid
7
B, C, D
F
Place jack in tool box
18
E
G
Place jack handle in tool
box
6
E
H
Place polishing cloth in tool
box
7
E
I
Close tool box
10
F, G, H
J
Shrink wrap tool box
21
I
(b) A company is unable to satisfy customer demand for one of their products. The ratios for mixing the outputs
from processes C, D and E are 2, 1 and 1 respectively. The ratio for the departments F and G is 3 and 1, and the
ratio for departments H and I is 4 and 1. Using Table Q2(b), Determine;
(i) The system capacity and bottleneck;
[4]
(ii) How much system capacity can be gained by adding capacity to the bottleneck
[2]
Table Q2(b)
Department
Capacity (liters/hour)
Predecessors
A
B
C
D
E
450
450
350
250
250
A
B
-
F
G
H
I
J
K
750
300
950
350
1100
1400
C, D and E
F, and G
H and I
J
[Total 16 marks]
Question 3:
(a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of
operation, the company is experiencing production backlog. A number of its customers are complaining for long
delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In
order to address this issue, the operation manager decides to implement the following possible alternatives;
production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always
prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning
purposes, although this is modified when the demand requirements change. The estimated demand for a
particular unit for the period January through September is given in Table Q3(a). The current workforce is based
on the production level in the previous December. Operating data are given in Table Q3(b).
Requirement:
(i) Develop an aggregate plan AP based on level capacity strategy specified for the planning
period.Subcontract to meet a 100\% service level every month and no overtime, no hiring, and no termination.
Show graphically the demand forecast, actual production output, and ending inventory in single graph. Determine
the total production cost for the specified period.
[7]
(ii) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September.
Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory
intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and
the MPS per month.
[3]
Jan
1,935
TableQ3(a): Veatch Company Estimated demand for a product
Feb
Mar
April
May
June
July
2,000
2,250
2,125
2,450
2,700
2,250
August
1,900
Sep
1,650
Table Q3(b): Veatch Company Operating data
Items
Amount
Initial inventory (units)
400
Stockout costs (OMR/unit)
125
Carrying cost,
(OMR/unit/month)
Hiring cost per unit
(OMR/unit)
Termination cost per unit
(OMR/unit)
30
70
85
Subcontract cost (OMR/unit)
85
Production units the
previous December
In-house production cost,
(OMR/unit)
1,500
75
Labor hours/ unit
3.2
Workweek (hours)
40
Weeks/month
4
Table Q3(c): Veatch Company Operating data
Jan
Feb
Mar
April
May
June
July
August
Sep
400
450
450
550
600
650
700
750
800
(b) Salalah Electro-Mechanical Company manufactures a product PQR345. The product PQR345 consists of two
PQ890 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890 assembly consists of one
P456, two Q921 and one Q239. The QR432 assembly consists of three P456, one R478 and two S590.
(i) Prepare a Bill of Material (BOM) product tree for the product PQR345.
[2]
(ii) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP) calculations to
determine when the Purchase Orders should be placed for item S590.
Note: The product PQR345 are being sold complete as well as the spare parts (e.g. items QR432, PQ890, R478
etc) are being sold separately also.
[4]
Week
PQR345
QR432
10
70
100
11
50
-
Table Q3(b)-1
12
120
-
13
60
250
14
90
-
15
100
150
16
40
100
Table Q3(b)-2
Item
Lead Time
(Weeks)
On Hand
PQR345
QR432
S590
1
2
2
200
200
700
Batch Size Safety Stock
200
300
600
0
150
350
[Total 16 marks]
Question 4:
(a) The Marino Company in Ventura County, southern California sells swimming pool equipment. The sales for
swimming pool motors in southern California over the last 12 months is given in Table Q4(a). Forecast the
demand from March to December of the current year using the following forecasting models. Use excel for the
tabulation.
(i) Three-month simple moving average;
[2]
(ii)Three-month weighted moving average. Use 0.7, 0.2, and 0.1 for the weights, with
0.7 for the most recent period, and 0.1 for the oldest period.
[3]
(iii) Simple linear regression;
[3]
(iv) Determine the MAD, and SE for all the models, and choose which model is most appropriate.
[2]
Table Q4(a) Marino Company Sales of Swimming
pool motors
Month
Quantity (units)
11,560
January
14,477
February
16,912
March
10,143
April
15,476
May
17,128
June
11,895
July
14,945
August
17,659
September
12,170
October
14,314
November
16,824
December
(b) Oman Steel Company is currently having five jobs to be completed in details of which is given in Table Q4(b)
. Using the following priority rules determine the order in which the jobs given in Table Q4(b) should be
processed using the following rules;
(i) Critical ratio
[2]
(ii) Least amount of Slack per operation
[2]
(ii) Johnson’s rule
[2]
Table Q4(b)
Jobs (in the
order they
arrived)
Days until
due date
R
S
T
U
V
4
9
5
7
6
Remaining processing time
(days)
Cutting
1
3
3
5
3
Drilling
2
2
4
3
1
[Total 16 marks]
Question 5:
(a) For a compressor the probability of failure occurring during a given week is given in
Table Q5(a).
(i) Calculate the Annual Breakdown Maintenance Costs (where no Preventive Maintenance is carried out). The
costs are 300 OMR to repair the compressor, every time it fails.
[3]
(ii) Preventive maintenance costs 60 OMR for each service. Calculate if Preventive Maintenance is cheaper than
Breakdown Maintenance, and if so how often Preventive Maintenance should be carried out. There are 48
Table Q5(a)
Week of Operation
Probability of failure
during the given week
1
2
3
4
5
0.00
0.12
0.13
0.30
0.45
(b) In a conventional production, operations of turning, splines cutting and grinding are followed in sequence to
produce splined shaft for gear boxes and lathe, milling and grinding machines are used for the operations. The
reliability of the lathe, milling machine and grinder are 0.89, 0.87 and 0.93 respectively. It has been suggested that
to improve reliability two identical machines could be used at each stage. If one fails the other can be used while
the first one is being repaired. Another suggestion has been put forward to buy a CNC machining center with a
reliability of 0.90 which will do the functions of the lathe and the milling machine.
Calculate the system reliability for each of the 3 layouts and decide which is the most reliable. [4]
Figure Q5(b): Splined shaft
(c) Sur Power & Utility company is considering to replace the existing high power ammonia compressor with a
new one. Maintenance records show the relative frequency of the compressor for 300 week period is given in
Table Q5(c)-1.
(i) Use Monte Carlo Simulation, the probability distributions and the random numbers given
in Table Q5(c)-2, to simulate the breakdowns which occur in the next 25 week lifespan.
Calculate the average number of breakdowns. Decide which blower will have the better
reliability if the new blower is expected to have an average one(1) breakdown per week.
[7]
Table Q5(c)-1
Number of
Breakdowns
Number of Weeks
0
1
2
3
4
96
75
63
42
24
18
48
44
22
42
67
3
63
20
36
Table Q5(c)-2
81
4
59
39
4
67
66
33
2
95
25
91
46
43
2
[Total 16 marks]
Question 6:
(a) Applying the various motivation theories in human resource management, make a necessary recommendations
to motivate the personnel in the following scenarios. Write at least 100 words for each scenario.
(i) An experienced and senior technician of an Oil and Gas company who has been in the
workforce for almost 25 years is already performing very poorly in the maintenance department. [4]
(ii) A newly hired Mechanical engineer as companys Deputy Manager Production of Lube Oil department.
[4]
(b) Discuss briefly the importance of Training and Development in reducing staff turnover in the organization.
Provide at least two examples to support your answer.
[4]
(c) Develop a simple FMECA for a high capacity centrifugal pump used in waste water treatment plant. Provide at
least three failure modes, cause of failures, failure effects, detection techniques, and the corresponding occurence,
detection, and severity, and RPN, and preventive actions.
[8]
[Total 20 marks]
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