Production Planning &Amp; Control Question Paper

Production Planning &Amp; Control 

Course:Bachelor Of Science In Engineering

Institution: Kenyatta University question papers

Exam Year:2009



KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2009/2010
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
SCIENCE (ENERGY ENGINEERING)

SET 504: PRODUCTION PLANNING & CONTROL


DATE: Thursday
24th December 2009

TIME: 2.00pm – 4.00pm

INSTRUCTIONS
Answer Any Three Questions
QUESTION ONE
a)
Outline the procedure of compiling least squares regression line. [4marks]
b)
i)
List sic steps required in developing a master schedule.
[6marks]
ii)
Nairobi
Manufacturing
Corporation
produces six standard products to


customer order, as show in Table Q1.


a)
Draw up a master schedule for the next six weeks. [6marks]


b)
What production problems do you foresee.
[21/2marks]
c)
What
changes
could
be
made.
[21/2marks]


Table Q1
Product Standard
mfg.
Demand (units/period)
hr/unit

1
2
3
4
5
6
A 90
12
6
8 11
7
9
B 45
7
3
4 5
3
2
C 60
4
5
3 6
4
4
D 120
9
11
10
7
8
7
E 70
2
6
4 2
3
4
F 150
15
12
13
9
12
14




Page 1 of 4
QUESTION TWO
a)
With suitable examples discuss the following production control techniques

i)
Load control.





[3marks]
ii)
Batch
control
[3marks]
b)
i)
What is the function of rough-cut capacity planning (RCP)?











[4marks]

ii)
An organization used overtime, inventory, and subcontracting to absorb


fluctuations in demand. A production plan for 12 months is devised and


updated each month. The expected demand for the next 12 periods is as
follows:
Table
Q2:


Time
Period
1 2 3 4 5 6 7 8 9 10 11 12


Unit Demand (102) 10 15 30 27 30 16 12 10 18 26 30 15



The following costs and constraints are relevant:


Maximum regular production/period
19,000 Units
Maximum overtime production/period
4,000 Units
Regular production cost
Ksh 2100/Units
Overtime production cost
Ksh 2450/Unit
Subcontracting cost
Ksh 2590 /unit
Inventory holding cost/period
70/Unit



What is the optimism production plan for the next 12 months? NB: Assume

beginning inventory is zero, desired ending inventory is zero, and not stock outs
can
be
tolerated.
[10marks]
Page 2 of 4
QUESTION THREE
a)
What is the meaning of following terms

i)
Design capacity





[2marks]
ii)
Effective
capacity
[2marks]
iii)
Bottle
neck
operation
[2marks]
b)
i)
George Engineering Ltd design and manufactures wooden desks. The


firm works have five days a week, eight hours a day and take four weeks


of vacation every year. On average, each desk takes the firm 20 hours


from start to finish. The firm also spends about three hours a week on


preventive maintenance and two hours picking supplies. A
Determine:
i)
The
firm’s
efficiency.
[5marks]
ii)
Opportunity
utilization. [5marks]

ii)
What is the importance of production planning and control.











[4marks]
QUESTION FOUR
a)
i)
Give at least four factor which are considered when performing,
forecasting.
[4marks]

ii)
What are the advantage and disadvantage of using weighted moving.










[2marks]
b)
Annual sales for the last seven year for an organization are given in the following

table. Determine:

i)
The linear least square regression line.


[3marks]

ii)
The standard deviation of the regression.


[3marks]
iii)
The
correlation
coefficient.
[3marks]

iv)
The forecast demand for the next year.


[2marks]

v)
The two standard deviation control limits for next year.
[2marks]






Page 3 of 4
Table
Q4.

Year
Annual Sales (Ksh)
2
1,760,000
2
2,120,000
3
2,350,000
4
2,800,000
5
3,200,000
6
3,750,000
7
3,800,000

QUESTION FIVE
a)
i)
Differentiate between Linear and non linear break even analysis.









[6marks]

ii)
A show manufacturer with total fixed cost of Ksh. 2,000,000 sells a


product for Ksh. 15o per unit. The production has variable cost of Kshs
100
per
unit.


a)
What is the breakeven point in units and Kenya Shillings.


b)
How many units must be sold for a profit of Ksh 800,000?










[5marks]
b)
i)
Outline three sources of capital expenditures.

[3marks]


ii)
An organization has a total revenue function equal to 30 and a total cost


function equal to 2q2 30q+250. [2marks]


i)
What are the breakeven quantities.

[2marks]
ii)
The
profit
maximizing
production level.

[2marks]


iii)
The fixed costs.




[2marks]

Page 4 of 4






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