Ignou Question Bank (429)
Ignou Question Bank from previous year papers
Children categories
Ms-495, Question Bank (2)
Ms-495, Question Bank, Ethics And Corporate Governance In Banks
IB0-04 Question Bank (3)
IB0-04 Quesiton Bank, Export - Import Procedures And Documentation
MC0-03 Question Bank (2)
MC0-03 Question Bank, Research Methodology And Statistical Analysis
Ms-6 Dec 2011
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-6 Dec, 2011
MS-6 : Marketing for managers
1. (a) The essence of Marketing is a "Transaction". Discuss the above statement and give reasons in support of your answers with suitable illustrations.
,(b) Explain the term 'Marketing Strategies'. Outline the possible marketing strategies
that may be used at the growth and decline stages of any Product/Brand of your choice.
2.(a)What type of promotion - mix can be used in the Promotion of the following product services :
(i) School Bags
(ii) Industrial Fans
(iii) Fast food Restaurant
(b) What arc the major functions of Packaging ? What is the type of Packaging you would recommend in the following cases and why ?
(i) Sea food for exports
(ii) Unisex perfume
3. (a) Why do many firms use a family brand ? What are the risks associated with this strategy in case the new product is sub-standard ?
(b) What pricing strategy will you follow for the following Product/Services ? Justify your answer :
(i) a new fruit juice bland
(ii) DTH television broadcast services
4. Write short notes on any three of the following.
(a) Reasons for the growth of service sector
(b) Matrix Organisation
(c) Life style marketing
(d) Approaches for sales forecasting
(e) Bases for market segmentation.
5. (a) You are the Marketing Manager of a medium - sized manufacturing company. The CEO of the company has just made the following statement : "The distribution activity is not a concern of the marketing department. The function of marketing depaitment is to sell the product let the rest of the company handle production and distribution". How would you reply to this statement ? Discuss.
(b) Titan Eye plus, an arm of Titan Industries has announced the launch of sunglasses Fiesta, for a limited period offer show casing best sunglasses brand. Develop a suitable launch strategy for the product.
Ms-5 june 2007
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 june-2007
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
1. (a) Define Information Technology. Describe various types of information systems. Give example of each type of information system in order to differentiate
between them.
(b) What is an Operating System ? Describe various activities performed by a typical operating system
2. (a) Explain the systems concept in management information and control. Describe the management functions at various levels in the context of relationships between management and information needs.
(b) Discuss the ethical issues involved in the information society. Why is there a need to protect hardware and software from unauthorized access ? Discuss some of these mechanisms
3. (a) Why is it logical to organize IT applications by functional areas ? Discuss the role of computers in one such area.
(b) Briefly discuss the business software solutions provided by any one of the following :
(i) SAP
(ii) Oracle
4. a) Enumerate the advantages and disadvantages of outsourcing Information System. When should outsourcing be used by the organizations ?
b) "With so many readymade and customized softwares available, the need for a manager is to learn to use them elfectively, rather than learn to program them. " Do you agree ?
5. (a) What are data models ? How would you classify the data models ? Differentiate between various data models, with suitable examples.
b) Explain Artificial Intelligence. Discuss few applications of artificial intelligence
6. Write short notes on any two of the following :
a) Online Analytical Process (OLAP)
b) Groupware
c) Smart Cards
7. Read the case given below and answer the questions given at the end.
Microstrategies DSS Products Help Dairyworld Foods Increase profitability
Dairyworld Foods, Canada's second-largest dairy cooperative and western canada's largest food manufacturer. uses MicroStrategy's DSS Agent tm a decision support tool for conducting business analyses, to better understand performance, improve customer service, and anticipate customer needs and profitability.
MicroStrategy is a leading relational on-line analytical processing (ROLAP) vendor.
The MicroStrategy-based application received industry acclaim for providing Dairyworld with a significant return on investment. In August 1997 it was awarded the 1997 Excellence in Business Information Award for having a significant and measurable impact on Dairyworld's business
"Using MicroStrategy's DSS Agent has had a dramatic impact on our business by helping us to improve our customer service, increase internal accountability, and
make more intelligent marketing and sales decisions," said David Lynn, manager of sales administration and development at Dairyworld.
Before Micro Strategy’s decision support system was implemented, four separate and incompatible sales reporting systems made it impossible for the company to analyze the performance of its 2,500 products and 50,000 customers worldwide a function critical to Dairyworld's survival. Using the system, Dairyworld is now able to analyze massive quantities of data to identify most or least profitable products, promotion performance in different cities, customers who brought in the most revenue, and poorly performing.brands, sizes and product lines.
After less than a year" Dairyworld has realized a positive return on its software, hardware and professional services investments. Since the software's implementation,
product managers have used the system to identify and eliminate poorly performing product lines, sales managers have evaluated specific customers profitability by product or brand, and the distribution group has determined which trucking routes are the most efficient and profitable. DSS Agent tm also errors made years before the was able to discover pricing system was implemented.
Dairyworld was able to develop its decision support system and realize value from its warehouse almost immediately. In just 10 weeks, Dairyworld created a decision support project using MicroStrategy's software and rolled out the pilot DSS project. Within the next six months, Dairyworld built a more detailed data warehouse and enhanced its decision support project. The new, improved decision support project was then rolled out to over 100 users, all of whom were educated on the system
Questions :
(a) What has Micro Strategy done to transaction-level) databases of Dairyworld ?
(b) Give reasons for the improved customer service and increased profitability of Dairyworld.
Ms-5 june 2008
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 june-2008
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
1,(a) Explain the Management Systems concept with the help of an exarnple. what are the major distinctions between a production organisation and a service organisation ?
(b) Product A consists of three B type sub-assemblies and one C type sub-assembly. The sub-assembly B consists of one D sub-assembly, one E sub-assembly, and one F sub-assembly. The sub-assembly E consists of a D and a K. The sub-assembly C consists of a G and an F.
(i) Prepare a product tree.
(ii) Prepare the Bill of Materials.
iii)Determine the number of each sub-assembly/components required to prepaffe fifty units of item A.
2. a) Discuss briefly with suitable examples, each of the following :
(i) a long-range capacity decision
(ii) an intermediate-range capacity decision
(iii) a short-range capacity decision
b) A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives A and B have been identified, and the
associated costs and revenues have been estimated. Annual fixed costs would be Rs. 40,000 for A, and Rs. 30,000 for B; variable costs per unit would be Rs. 10 for A and Rs. L2 for B; and revenu e per unit would be Rs. 15 for A and Rs. 16 for B.
- (i)Determine the break- even point, in units, for each alternative.
- (ii)At what volume of output would the two alternatives yield the same profit ?
- (iii)If expected annual demand is 12,000 units, which alternative would yield a higher profit ?
3. (a) Why are new facilities built on sites that are far away from the companies'
present sites ? Justify your answer with suitable examples'
(b) The time following observations have been taken in a study experiment :
Observation |
Time (in minutes) |
1 |
0.11 |
2 |
0.10 |
3 |
0.11 |
4 |
0.10 |
5 |
0.14 |
6 |
0.10 |
7 |
0.10 |
8 |
0.09 |
9 |
0.12 |
10 |
0.09 |
11 |
0.12 |
12 |
0.11 |
Determine
(i) the observed time,
(ii) the norrnal time, and
(iii) the standard time,
using a performance rating of 0.95 and a percent allowance of 8 percent
4- (a) Define value analysis. Differentiate between the traditional reduction technique and value analysis.
(b) A group of six jobs are to be processed through a two-step operation. The first operation involves leaning and the second involves painting . Determine a sequence that will minimize the total completion time for this group of jobs. Also, calculate the idle times for both machines.
Job |
Processing Time (Hours) Work Centre-l |
Processing Time (Hours) Work Centre-2 |
A |
20 |
27 |
B |
16 |
30 |
C |
43 |
51 |
D |
60 |
12 |
E |
35 |
28 |
F |
42 |
24 |
5. (a) why is R&D a key factor in productivity improvement ? Name some ways in which R&D contributes to productivity improvements.
(b) A local distributor for a national tyre company expects to sale approximately 9600 steel belted radial tyres of a certain size and tread design next year . annual carrying costs are rs 16 per tyre and ordering costs are rs75 . the distributor operates 288 days a year
(i) What is the EOQ ?
(ii) Howmanytimesperyeardoesthestore reorder ?
(iii) What is the length of an order cycle ?
6 The R&D Department is planning to bid on a large project for the development
of a new communication system for commercial planes. The accompanying table shows the activities, times, and sequences required.
Activity |
Immediate Predecessor |
Time (Weeks) |
A |
- |
3 |
B |
A |
2 |
C |
A |
4 |
D |
A |
4 |
E |
B |
6 |
F |
C,D |
6 |
G |
F |
2 |
H |
C,D |
3 |
I |
E,G,H |
3 |
(a) Draw the Network Diagram.
(b) What is the critical path ?
(c) Suppose you want to shorten the completion time as much as possible,
and have the option of shortening any or all of B, c, D and G, each two weeks. Which would you shorten ?
- (b)What is the new critical path and earliest completion time ?
7 . Write short notes on any four of the following :
(a) Cost of Quality
(b) CIM
(c) Standardization and Codification
(d) Buffer Stock
(e) Zero defects
(f) Taxonomy of waste
Ms-5 june 2009
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 june-2009
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
1. (a) Define a 'system'. Use this concept in explaining a production system. Briefly
indicate the relationship of production systems to operations management.
(b) Discuss how life cycle approach to product and systems can help decision making. Use examples.
2. (a) Why is there a need for maintenance ? Discuss different types of maintenance as used in manufacturing type of organisations.
(b) Draw a flow process chart of changing tyre of your motor cycle or car. Assume all necessary data.
3. (a) Def ine " Value Engineering" . Discuss different phases of value engineering
approach. Use examples.
(b) Diffeierrtiate continuous flow processes from intermittent flow processes. Give exarnpies.
4(a) Why are service organisations usually provided with higher capacities than the
requirement ? Explain with some examples.
(b) Why are control charts used ? Differentiate between control charts for variables and control charts for attributes. Give examples.
5(a) In a situation of 2 jobs and 'm' machines. How doer do we determine the optimal sequence of these jobs to minimise the total processing time using graphical method ? Elaborate the method using following problem.
M1 sequence & time
|
|
||||||||||||
M2 sequence & time
|
|
- (b)Discuss the objectives of maintenance how is failure analysis done Explain
6.What is the significance of assembly lines ? Discuss different types of assembly lines and respective advantages and disadvantages.
7.a) Discuss different functions of stores and detail how stores should be organised.
b) Discuss ABC system of inventory control.
8. write a short notes any two of the following.
(a) Waste management
(b) Materials Requirement Planning
(c) Control Charts for attributes
(d) Standardisation and codification
Ms-5 june 2010
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 june-2010
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
1. a) Why does the "proper" operations strategy keep changing for companies that are world-class competitors ?
(b) Some suggest that customer expectation is the key to service success. Give an example from your own experience to support or refute this assertion.
2.(a) "You don't inspect quality into a product; you have to build it in". Discuss the implications of this statement.
(b) Find the economic order quantity and the reorder point, given the following data :
Annual demand (D) = 1000 units. Ordering cost (S) = Rs. 50 per order. Holding cost (H) = Rs. 12.50 per unit per year Cost per unit (C) = Rs. 125.00. Lead time (L) = 5 days. Assume 250 working days in a year.
3. (a) Why are work measurement and time study activities still necessary today ?
(b) A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives, A (new location), B (subcontract), and C (expand existing facilities). Alternative A would involve substantial fixed costs but relatively low variable costs : fixed costs would be Rs. 25,000,00 per year, and variable costs would be Rs. 5000
per boat.
Subcontracting would involve a cost per boat of Rs. 25,000 and expansion would require an annual fixed cost of Rs. 5,00,000 and a variable cost of Rs. 10,000 per boat. For what range of output would each alternative yield the lowest total cost ? Which alternate would yield the lowest total cost for an expected annual volume of 150 boats ?
(a) How does the role of a project manager differ from that of a traditional functional
manager ?
(b) An industrial engineer conducts a time study on an operator and determine that a specific task takes about two minutes to complete. The engineer estimates that the particular operator that she is observing is working about 20 percent faster than normal. The company has an allowance factor of 15 percent of job time for personal needs, delays, and fatigue. Calculate the standard time for this task.
5(a) Explain value engineering giving its area of application in some industry which you are aware of.
(b) There are seven jobs that must be processed in two operations. A and B. All seven jobs must go through A and B in that sequence A first, then B.
( i ) Determine the optimal order in which the jobs should be sequenced through the process using these times.
Job |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Machine A |
9 |
8 |
7 |
6 |
1 |
2 |
4 |
Machine B |
6 |
5 |
7 |
3 |
2 |
6 |
7 |
ii) Draw a graph similar to the solved problems showing the sequence of jobs.
iii) What is the total completion time for all seven jobs
6. The following activities are part of a project to be scheduled using CPM :
Activity |
Immediate Predecessor |
Time (Weeks) |
A |
- |
6 |
B |
A |
3 |
C |
A |
7 |
D |
C |
2 |
E |
B,D |
4 |
F |
D |
3 |
G |
E,F |
7 |
a) Draw the network
b) What is the critical path ?
c) How many weeks will it take to complete the project ?
d) How much slack does activity B have ?
7. Write short notes on any four of the following :
a) Preventive Maintenance
b) Automated storage/retrieval
c) CAD/CAM
d) ABC Analysis
e) Tero Technology
f) LIFO system
Ms-5 june 2011
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 june-2011
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
1. (a) How is value added to any entity using operations function ? Explain the conceptual model of a 'Operations System'.
(b) Discuss life cycle approach in Operations Management. Use examples to elaborate.
2. (a) What is Product Design ? How does it influence the Process Design ? Explain with examples.
(b) What type of layout would you suggest in designing a big hospital ? Discuss.
3. (a) How is computerized layout planning is done ? Discuss its benefits and different
softwares used for this purpose.
(b) Define capacity. Explain the process used for capacity planning. Take example of any organization of your choice.
4. (a) Why is material handling important ? Discuss its classification.
(b) What are common classification systems of materials ? Explain importance of
codification and standardization of materials.
5. (a) What are different forms used by purchase department ? Discuss different criteria
employed for evaluating purchasing system.
(b) Discuss importance of Value Engineering. Also list its various phases.
6. (a) What is acceptance sampling ? Explain different types of sampling plans. Explain
Operating Characteristic Curve.
(b) Why are control charts used ? Discuss mean and R type of control chart. Give its importance.
7. (a) Where do we use work sampling ? Explain its step as used for standard time determination.
(b) Discuss ABC system of Inventory Control. Give its variants as used in Industry.
8. Write short notes on any two of the following
(a) Methods Study
(b) Programme Evaluation and Review Technique.
(c) Assembly line
(d) Planning and Control for job shop production
Ms-5 Dec 2007
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 Dec, 2007
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
l. (a) Explain how the system concept can be used in explaining the terms waste and waste management.
(b) A company is considering adding a new feature that will increase unit sales by !2 percent and product cost by 10 percent. Profit is expected to increase by 16 percent of the increased sales. Initially the product cost incurred by the company was 63 percent of the sales price. Should the new feature be added ? Justify your answer.
2. (a) Four different organisations are considering youl home town as a potential location for one of the following :
(i) A medical research centre
(ii) A softdrink producer
(iii) A steel plant
(iv) A software producer
Select any one of the above four and systematically evaluate the relevant locational factors.
(b) A worker in an engineering corporation is expected to work for 420 minutes in a shift of 8 hours . the remaining time, i.e. 60 minutes is meant for rest and personal needs etc.
Determine :
(i) Standard time per piece of a job whose normal time is 4 minutes.
(ii) If the operator produces 120 pieces in the shift, what is his efficiency ?
3. a)Explain different types of maintenance, giving suitable examples. Suggest an organisation structure for the maintenance department of a medium-sized company
(b) A small manufacturing firm has three proposals for a product. Either it can be purchased from an outside vendor at Rs. 4 per unit or it can be manufactured in-plant. There are alternatives for in-plant-manufacturing. One option it that a fully
automatic unit is procured involving fixed cost of Rs. 30,000 and variable cost of Rs. 275 per unit. Alternatively, a semi-automatic unit would cost Rs. 20,000 as fixed cost and Rs. 3 per unit as variable cost.
Draw a break-even chart for these alternatives. Suggest range of production-volume suited for these alternatives.
4. a) Explain various factors that govern the design of any layout of a plant. Give suitable examples.
b) There are seven jobs as under, each of which has to go through machines A and B in that order. The processing time is in hours.
Job |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
Machine A |
3 |
12 |
15 |
6 |
10 |
11 |
9 |
Machine B |
8 |
10 |
10 |
8 |
12 |
1 |
3 |
Determine the sequence of jobs that will minimize the total time for completion of all the jobs.
5. (a) What do you understand by Quality ? What is the difference between inspection and quality ? Describe the concept of Total Quality Management. How is it different from inspection and quality control ?
b) A repair and maintenance company is engaged in providing service to a particular brand o[ popular vehicle. It uses 8000 units of a moving part per year as replacement of the old parts; each part cost Rs. 250. The set-up costs are estimated at Rs. 100 and the inventory carrying cost is the average of 20% of the inventory cost. Supply of the parts is at the rate of 80 per day.
Calculate the following :
(i) Optimal order quantity
(ii) Optimal number of set-ups
(iii) Total variable cost based on optimal policy
Assume 310 working days in a year
6. The R&D department is planning to bid on a large proiect for the development of a new communication system for commercial planes. The following table shows the activities, times, and sequences required
Activity |
Immediate Predecessor |
Time (Weeks) |
A |
- |
2 |
B |
- |
3 |
C |
- |
3 |
D |
A |
5 |
E |
B |
5 |
F |
B |
9 |
G |
C |
3 |
H |
D |
3 |
I |
E |
5 |
J |
F,G |
6 |
K |
H,I |
4 |
(a) Draw the network diagram.
(b) What is the critical path ?
(c) How many weeks will it take to complete the project ?
(d) Which activities have slack and how much ?
7 . Write short notes on any four of the following :
(a) Operating characteristic curve
(b) ABC Analysis
(c) Job Enrichment
(d) CAD/CAM
(e) Tero Technology
(f) Aggregate planning
Ms-5 Dec 2008
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 Dec, 2008
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
l. (a) Give two examples (with supporting details) for each of a service and manufacturing firm, of the impact of technology in service and product design.
(b) Data for a breal+even analysis revealed that total cost at volumes of 600 and 800 units were Rs. 8,00,000 and Rs. 9,60,000 respectively. Revenue is Rs. 1,440 per unit. Based upon this information, what are
(i) the variable cost per unit, and
(ii) the fixed cost ?
2. (a) How do the capacity considerations in a hospital, automobile service centre and a company making lawn mowers, differ ?
(b) Rocket Propulsion Company is considering the expansion of a solid-propelled manufacturing process by adding more l-ton-capacity curing furnaces. Each batch (1 ton) of propellant must undergo 30 minutes of fumace time, including load and unload operations. However, the furnace is used only 80 percent of the time due
to power restrictions in other parts of the system. The required output for the new layout is to be 16 tons per shift (8 hours). Plant (system) effici,ency is estimated at 50 percent of system capacity.
(i) Determine the number of furnaces required.
(ii) Estimate.the percentage of time the furnace will be idle.
3. (a) How does inventory contribute to the value-adding activities of a firm ? When should inventory be considered a symptom of waste ? Explain with suitable examples.
(b) A plastics moulding firm produces and uses 24,400 Teflon bearing inserts annually. The cost of setting up for production is Rs. 700 and the weekly production rate is 1000 units. If the production cost is Rs. 55 per unit and the anhual carrying cost is Rs. 15 per unit, how many units should the firm produce during each production run ? Assume a 52-week year.
4. (a) Should a firm always attempt to “meet demand" ? Why or why not ? Justify answer with suitable examples.
(b) Define Productivity. How do operations managers contribute in improving productivity ? Explain with examples.
5. (a) Discuss with suitable examples, the process of launching a new product in the market. Explain with the help of suitable examples.
(b) Use Johnson's rule to determine the sequence that results in the minimum flow time for the seven jobs listed below. Alljobs must follow the same sequence of machine first, and then polish.
Time required to do Job (minute) A B C D E F G |
Machine 10 6 5 4 6 9 7 Polish 2 3 12 5 9 11 6 |
a) What is the optimal sequence of jobs ?
b) What is the minimum time flow to finish these seven jobs
SECTION B
The following table shows the jobs of a project with their duration in days.
Jobs |
Duration (Days) |
1-2 |
10 |
1-3 |
8 |
1-4 |
9 |
2-5 |
8 |
3-7 |
16 |
4-6 |
7 |
5-7 |
7 |
5-8 |
7 |
6-7 |
8 |
6-9 |
5 |
7-10 |
12 |
8-10 |
10 |
9-10 |
15 |
10-11 |
8 |
11-12 |
5 |
i) Draw the network diagram.
ii) Compute the earliest event time and latest event times
iii) Determine the critical path and total project duration
7 . Write short notes on any of the following :
(a) VED Analysis
(b) Consumer's risk
(c) Learning Curve
(d) Standardization and Codification
(e) Delphi Technique
(f) Bill of Material
Ms-5 Dec 2009
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 Dec, 2009
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
1(a) Explain with the help of a suitable diagram the framework of organising and control in a production system.
(b) On the basis of material flow classify production systems and give examples for each type.
2(a) List down different phases of value engineering approach as used for a product design.
(b) What layout design procedure would you adopt to develop a layout for any small toy unit manufacturing plastic toys at the rate of 5000/day ? Discuss.
3.(a) Why is facility location important ? Discuss different factors important for locating any bread manufacturing unit. Make relevant assumptions.
(b) Describe the commonly used control charts for variables and attributes in SQC.
4(a) Discuss in brief various environmental factors taken into consideration for job design.
(b) Discuss objectives of maintenance management. List different types of maintenance system prevalent in manufacturing companies.
5. (a) Consider a situation of; production of a simple product with continuous demand.
The setup cost per batch of size Q is given. Unit variable cost of productions is also known. Derive the equation for optimum batch size. Assume and list major parameters.
(b) Why is mass production preferred over in some types of products with large volume ?
Explain the key elements of mass production with some examples.
6. (a) Explain the major scheduling rules for job shops as being practiced in industry.
(b) Draw CPM network for the following :
Activates Duration (days)
1 - 2 5
1 - 3 3
1 - 4 3
2 - 3 7
4 - 5 6
3 - 4 8
Determine Critical Path.
7. (a) Discuss ABC system of inventory management with examples.
(b) Explain the importance of store location and layout.
8. Write short note on any two of the following :
a) Productivity and waste
b) Value engineering
(c) Materials Requirement Planning
(d) Control charts for variables.
Ms-5 Dec 2010
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMs-5 Dec 2010 solved paper from ignou university you can buy this ms-5 book from this site
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Ms-5 Dec 2011
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-5 Dec, 2011
MS-5 : MANAGEMENT OF MACHINES AND MATERIALS
1. (a) Discuss conceptual model of an operations system. Explain some of the performance objectives in operations management.
(b) Explain the frame work of organising and control in a production system.
2. (a) What are different types of process forms in manufacturing system which are used to effect transformation of inputs into outputs ? Explain with examples.
(b) Choose a major facility of any organization ( manufacturing) and develop a detailed
layout for the same.
3. (a) What are the different types of material handling equipment used in large industries ? What type of material handling system would you recommend for a cement plant.
(b) Discuss advantages and disadvantages of "codification and 'Standardization' of
material." Use examples.
4. (a) Discuss purchase procedure with the help of a schematic diagram.
(b) Explain common approaches for price determination.
5. (a) Discuss systems of vendors evaluation and rating. Also give its importance.
(b) List different steps of value engineering approach, used as a product design tool.
6. (a) Explain operating characteristic curve. With the help of the 0.0 curve explain simple sampling plan.
(b) Discuss objectives of maintenance management. List different types of maintenance systems prevalent in manufacturing organisations.
7. . (a) List some of the major line Balancing methods. Explain any one of the method.
(b) What do you understand by scheduling ? Discuss various dispatching rules as used
in Industry
8. Write short note on any two of the following :
(a) Materials Requirement Planning
(b) Economic order Quantity
(c) Critical Path Method
(d) Job Design
MS-4 june-2007
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-4 - june-2007
MS-4 : ACCOUNTING AND FINANCE FOR MANAGERS
1. (a) Explain the Continuity concept and the Periodicity concept and discuss their significance.
(b) Explain the nature of accounting function and describe the role played by the Accountant in a business organisation.
2. The following items appear on the Trial Balance prepared from the books of Mr. Kamal Saxena as on 31st March 2006 after making necessary adjustments for depreciation on fixed assets, outstanding and accrued items and placing the difference under Suspense Account.
Machinery: 1,70,000
Furniture: 49,500
Sundry Debtors: 38,000
Drawings: 28,000
Travelling Expenses: 6,500
Insurance: 1,500
Audit Fees: 1,000
Salaries: 49,000
Rent: 5,000
Cash in hand: 7,800
Cash at Bank: 18,500
Stock in trade (1-4-2005): 80,000
Prepaid Insurance: 250
Miscellaneous expenses: 21,200
Suspense A/c (Dr.): 39,400
Sundry Creditors: 82,000
Capital Account: 2,45,750
Outstanding Expenses :
Salaries: 1,500
Printing: 600
Audit Fees: 1,000
Bank Interest (Cr.): 1,200
Discounts (Cr.): 1,800
Sales less Refurns): 6,80,00
Discount allowed: 1,200
Printing and Stationery: 1,500
Purchases (less Returns): 4,60,00
Depreciation :
Machinery: 30,000
Furniture: 5,500
On a subsequent scrutiny the following mistakes were noticed
(i) A new machinery was purchased for Rs. 50,000 but the amount was wrongly posted to Furniture Account as Rs. 5,000.
(ii) Cash received from Debtors Rs. 5,600 was omitted to be posted in the ledger.
(iii) Goods worth Rs. s,000 withdrawn by the proprietor for personal use, but no entry was passed.
You are further told that :
(a) Closing Stock amounted to Rs. 47,500.
(b) Depreciation on Machinery and Furniture has been provided @ 15% and 10% respectively On declining balance system. Full year's depreciation is provided on addition.
You are required to prepare a Trading and Profit and Loss Account for the year ended on 31st March 2006 and a Balance Sheet as on that date.
3. (a) Explain the concept of cost of capital as a device for establishing a cut-off point for capital investment proposals.
(b) Discuss the limiting factors in the reliability of capital budgeting techniques including the discounted cash flow techniques.
4. (a) What is optimum cash balance ? How can it be determined ? Explain.
(b) Distinguish between Cash Flow Statement and Funds Flow Statement." What purposes do they serve? How do you calculate Funds from Business Operations while preparing a Funds Flow Statement? Explain.
5. (a) Explain the three important control ratios that are used to compare the actual performance with the budgeted performance.
(b) Distinguish between Fixed Budget and Flexible Budget. When is a Flexible Budget considered desirable ? Explain.
6. A company produces a single product which is sold by it presently in the domestic market at Rs. 75 per unit. The present production and sales is 40,000 units per month representing 50% of the available capacity. The cost data of the product are as under:
Variable cost per unit Rs. 50.
Fixed cost per month Rs. 10 lakh.
To improve profitability, the management has 3 proposals on hand as under :
(a) To accept an export supply order For 30,000 units per Month at a reduced price of Rs. 60 per unit, incurring additional variable costs of Rs. 5 per unit towards export packing, duties etc.
(b) To increase the domestic market sales by selling to a domestic chain store 30,000 units at Rs. 55 per unit, retaining the existing sales at the existing price.
(c) To reduce the selling price for the increased domestic sales as advised by the sales department as under :
Reduce Selling price |
Increase in Sales |
5 |
10,000 |
8 |
30,000 |
11 |
35,000 |
Prepare a table to present the results of the above proposals and give your comments and advice on the proposals.
7. Comment on the following statements :
(a) Operating cycle plays a decisive role in influencing the working capital needs.
(b) "Debt is a double-edged knife."
(c) Break -even analysis is not without limitations.
(d) Higher profit margin need not necessarily lead to higher rate of return on investment.
(e) A company's profitability is better judged by PBIT rather than by PAT.
8. Write short notes on the following :
(a) Absorption Costing
(b) Zero based Budgeting
(c) Direct Labour Variances
(d) Sunk Costs and Imputed Costs
MS-4 june-2008
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MS-4 : ACCOUNTING AND FINANCE FOR MANAGERS
l. (a) What do you understand by the concept of conservatism ? Why is it also called the concept of prudence ? Why is it not applied as strongly today as it used to be in the Past ?
(b) What is a Balance Sheet ? How does a Funds Flow Statement differ from a Balance Sheet ? Enumerate the items which are usually shown in a Balance Sheet and a Funds Flow Statement'
2. (a) Why does depreciation need to be provided on fixed assets and what are the usual methods of providing depreciation
(b) Discuss the role of the Board of Directors in dividend decision
3. What do you understand by Discounted Cash Flow Techniques of Capital Budgeting ? Briefly explain the Net Present Value Method and Internal Rate of Return Method. which of the two would you rank better and why ?
4. Distinguish between :
(a) Financial Leverage and operating Leverage
(b) Cash Budget and Cash Flow Statement
c) FIFO AND LIFO
(d) Preference shares and Rights shares
A company manufactures a single product in its factory utilising 60% of its capacity. The details are given below :
Rs
Sales (6,000 units) 540000
Direct materials 96000
Direct labour 120000
Direct expenses 18000
Fixed overheads :
Factory 200000
Administration 21000
Selling and Distribution 25000
12.5 % of factory overheads and 20% of selling and distribution overheads are variable with production and sales. Administrative overheads are wholly fixed. Since the existing product could not achieve budgeted level for two consecutive years, the Company decides to introduce a new product with marginal investment but largely using the existing plant and machinery.
The cost estimates of the new product are as follows :
Cost elements Rs. per unit
Direct materials 16
Direct labour 15
Direct expenses 1.5
Variable factory overheads 2.0
Variable selling and distribution overheads 1.50
It is expected that 2,000 units of the new product can be sold at a price of Rs. 60 per unit. The fixed factory overheads are expected to increase by t}o/o, while fixed
selling and distribution expenses will go up by Rs. 12,500 annually. Administrative overheads remain unchanged.
However, there will be an increase of working capital to the extent of Rs. 75,000, which would take the total cost of the project to Rs. 8.75 lakh
The company considers that 20% pre-tax and interest return on investment is the minimum acceptable to justify any new investment.
You are required to
(a) Decide whether the new product be introduced.
(b) Make any further observations /recommendations
about profitability of the company on the basis of
the above data after making assumption that the present investment is Rs. 8 lakh.
6- Explain fully the following statements :
(a) "Lower the Break-even point, better it is
(b) "Greater the variability of cash flows, higher should be the minimum cash balance
(c) "Weighted average cost of capital would always be higher, if the market value weights are used. "
(d) "Capitalisation of reserves is different from capital resgrves. "
7 Why do you understand by the term 'pay-out ratio' ? What factors are taken into consideration while determining pay-out ratio ? should a company follow a fixed pay-out ratio policy ? Discuss fully.
MS-4 june-2009
Written by sales@mbaonlinepapers.com sales@mbaonlinepapers.comMS-4 - june-2009
MS-4 : ACCOUNTING AND FINANCE FOR MANAGERS
1. 'Management Accounting is an extension of financial Accounting'. Explain how is Management Accounting..an effective tool of financial control ? Discuss.
2. Explain the cost concept and the concept of conservation. Why are assets shown at cost even when this market prices far exceeds the cost ? Give reason.
3.Why are Reserves created at the time of preparing the final accounts ? Distinguish
between General Reserve and Specific Reserve and give their examples.
4.Distinguish between capital expenditure and revenue expenditure. what will be the
effect on net profit, if the accountant treats a capital expenditure as revenue expenditure. Discuss.
5. Distinguish between :
(a) Gross Working Capital and Net Working Capital.
b) Current Ratio and Quick Ratio.
c) Direct Labour Rate Variance and Direct. Labour Efficiency Variance.
d) Committed Fixed Costs and Disentionarv Fixed Costs.
6. In what way is financial leverage related to operating leverage ? Discuss with an example.
7. How would you appraise the technical feasibility and financial viabilrty of a project ? Explain.
8.What do you understand by Zero Base Budgeting ? Discuss the steps that are involved in the preparation of Zero Base Budget and describe its advantages over a traditional budget.
9. Explain fully the following statements :
a) very high current ratio is not desirable.
(b) "Cash Budget is a statement of all incomes and expenses during a given period."
(c) "Weighted average cost of capital would always be higher, if the market value weights are used."
(d) Companies with very high profits generally have a low pay out ratio.
10. Following details have been extracted from the annual budget of a manufacturing company for the year 2007 and 2008 :
Particulars Per Unit Rs. Per Annual rs
Selling Price 300
Direct Materials 64
Direct Labor 48
Production overheads:
Variable 32 4000000
Fixed 3000000
Administrative overheads-fixed
Selling and Distribution overheads:
Variable 36
Fixed 20,00,000
Currently the company is operating on a margin of safety of 25%. To improve its
profitability further, the company is considering the following options.
(a) Reduce selling price by 5%. Sales volume is expected to increase by 2A% also fixed production overheads will increase by Rs. 2lakh and fixed selling and distribution over heads by Rs 3 lakh.
b) Increase selling price by 5%. This will cause a drop in sales volume by 10%. To arrest further fall in sales, an increase of Rs 2 lakh will be required under fixed selling and distribution overheads.
c) Production can be increased by 15% by introducing an incentive scheme for labour.
This will be increase direct labour cost by 25%. An additional expenditure of Rs 3lakh would be required under fixed selling and distribution overhead to market the
increased production.
Required :
(a) Current level of production/sales and profit earned.
b) Assuming that (i), (ii) and (iii) above are mutually exclusive and other views remain unchanged, evaluate each of these options.
(c) If the company is able to reduce raw material cost by Rs 5 per unit by making
bulk purchases and reduce the fixed overhead costs by 2 lakh by suitable economy measures, at what selling price per unit should it sell its current production to earn a 10% increase in current profit ?
- The Balance Sheets of ABC Manufacturing Company Ltd. as on December 31, 2007 and 2008 are as follows :
The following additional information is also available.
(a)A new machinery was purchased for Rs. 30,000 and old machinery costing Rs. 15,000 was sold for Rs. 5,000. Accumulated depreciation was Rs. 8,000.
(b) Rs 20,000 5% debentures were reduced by purchase from open market @ Rs 96.
c) Rs 36,000 investments were sold at book value.
d) 12% dividend was paid in cash
e) Rs.15,000 was debited to Contingency Reserve to settlement of previous tax liability.
You are required to prepare :
(a) a statement of changes in Working Capital, and
(b) a statement showing the sources and application of funds.