CWA ICWA Question Papers Inter Group II Operations Management and Information System June 2010

CWA ICWA Question Papers  Inter Group II

Operations Management and Information System June 2010



This Paper has 55 answerable questions with 0 answered.
Syllabus 2008
Time Allowed : 3 Hours Full Marks : 100
The figures in the margin on the right side indicate full marks.
Section I : Operation Management
Answer Question No. 1 which is compulsory and any two questions from the rest, under Section I.
1. (a) For each part below, choose the most appropriate answer out of the four options given against each part: 1×5
(i) Most suitable layout for continuous production is:
(a) Process layout, (b) Group technology, (c) Line layout, (d) Matrix layout.
(ii) To decide workload for men and machines:
(a) Medium range forecasting is used.
(b) Short term forecasting is used.
(c) Long range forecasting is used
(d) Combination of long range and medium range forecasting is used.
(iii) In solving a problem on Line of Balance, the number of workstations required is given by:
(a) Cycle Time/Total Time, (b) Cycle Time/Element Time,
(c) Total Time/Element Time, (d) Total Time/Cycle Time
(iv) JIT stands for:
(a) Just in time purchase, (b) Just in time production,
(c) Just in time use of materials, (d) Just in time order of materials.
(v) The act of assessing the future and making provisions for it is known as:
(a) Planning, (b) Forecasting, (c) Assessment, (d) Scheduling
(b) Match the products in Column I with the production centers in Column II:
Column I Column II
(A) Steam (i) Blast Furnace
(B) Electricity (ii) Boiler
(C) Steel (iii) Generator
(D) Petrol (iv) Open Hearth Furnace
(E) Iron (v) Refinery
(F) Cloth (vi) Assembly Line
(G) Car (vii) Smithy
(H) Castings (viii) Spinning Mill
(I) Cotton Yarn (ix) Foundry
(J) Forgings (x) Power Loom
0.5×10 (0)
(c) Examine each statement and indicate whether it is ‘True’ or ‘False’. 1×4
(i) A transformer is a device that uses electrical energy to produce mechanical energy; (0)
(ii) A transistor is a semiconductor device commonly used as an amplifier or an electrically controlled switch; (0)
(iii) The ultimate objective of production planning and control is to contribute to the profits of the enterprise; (0)
(iv) Level capacity plan is based on “produce–to–stock and sell” approaches wherein the production systems are operated at uniform production levels and finished goods inventories rise and fall depending upon whether production level exceeds demand or vice versa from time period to time period. (0)
2. (a) It is observed that there exists a relationship between Expenditure on Advertising and the Annual Sales. The details for last six years are as follows:
Year Expenditure on
(Rs. Crore) Annual Sales
(Rs. Crore)
2009 1
4 18
Estimate the Annual Sales when Expenditure on Advertising is Rs. 5 Crore.

6 (0)
(b) What is Degeneracy in a simplex LPP? How is it resolved? 2+2 (0)
(c) Briefly write about Maintenance Request. 2 (0)
(d) A sample of 10 pieces is drawn from the production of last two hours of an automatic screw machine and each unit is inspected for several characteristics and is classified as “OK” or “Not OK”. The number of units marked “Not OK” for the last 20 samples are given in the following table in succession:
SI No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Not ok
units 0 2 1 1 0 3 0 1 1 2 1 0 2 3 0 0 2 0 0 1
Find P and the control limits. Comment on the automatic machine condition.

5+1 (0)
3. (a) A manager has to decide about the number of machines to be purchased. He has three options i.e., purchasing one, or two, or three machines. The data are given below:
Number of
Machines Annual fixed cost
(Rs.) Corresponding range
of output (units)
3 10,000
20,000 0 to 400
401 to 700
701 to 1000
Variable cost is Rs. 20 and revenue is Rs. 40 per unit.

(i) Determine the break–even point for each range;
(ii) If projected demand is between 600 and 750 units, how many machines should the manager purchase?
3+2 (0)
(b) Expand the following: 1×3
(i) CRAFT; (0)
(ii) SRAC; (0)
(iii) USP. (0)
(c) Put an appropriate word or phrase in blank position: 1×6
(i) _________ casting metal working process is used main for steel and iron and it can also be used for brass, aluminium, bronze, copper, etc, and relatively large amount of metal is to be removed. (0)
(ii) In _________ method of analytical evaluation of a job, different points are assigned to the different characteristics of doing jobs. (0)
(iii) Technological _________ arises due to continuous improvements in the methods and techniques of production and sometimes the rate of improvement is so fast that it becomes economical to replace the machinery before its expected life. (0)
(iv) In solving a linear programming problem, _________ method is generally used where there are two or three variables. (0)
(v) The _________ consists of a powerful desktop computer and graphics software that enables a designer to manipulate geometric shapes. (0)
(vi) The product layout involves the arrangement of machines in one line depending upon the _________ of operations. (0)
(d) Replacement policy is being considered for a new machine installed. Find the year when the replacement is to be made based on the following information:
Year 1 2 3 4 5
Replacement cost at
beginning of the year 1,700 2,000 2,500 2,850 3,000
Salvage value at the end
of the year 1,175 1,200 900 400 0
Operating costs 500 700 750 1,100 1,200
4 (0)
4. (a) A manufacturer’s study of various locations has found that the following costs vary from one location to another. The firm will finance the new plant from deposits bearing 5% interest. Determine the most suitable location for a sales volume of 20,000 units/year.
Location A B C
Revenue (Rs. per unit)
Labour (Rs. per unit)
Plant (Rs. crore)
Material & Equipment∗ (Rs. per unit)
Electricity (Rs. p.a. ‘000)
Water (Rs. p.a. ‘000)
Transportation (Rs. per unit)
Taxes (Rs. p.a. ‘000) 16.00
22.00 25.00
15.00 12.00
∗This cost includes a period depreciation, but no interest.

6 (0)
(b) Distinguish between Multipurpose and Single purpose Machine tools. 4 (0)
(c) A SSI unit is engaged in manufacturing fuel nozzles for engines. The operations are performed on a CNC vertical drilling cum tapping centre. The operation cycle time is as follows:
Drilling time : 50 secs.
Tapping time : 95 secs.
Tool change time of ATC : 25 secs.
For feeding the nozzle the unit designed a fixture holding 10 nozzles at a time and set up time for the 10 nozzles in the fixture is 90 secs. The unit recently received an additional order to the extent of 1 lakh nozzles per year. Assuming the manpower is no constraint, how many additional drilling cum tapping center the unit should install under capacity augmentation plan? Average rejection is 2.5% of the produced nozzles. Assume 300 working days per year of 8 hours per day shift, 20% time the drilling tapping centers are not available due to preventive maintenance and utilization is 70% of the available time due to power and services line shutdown.

6 (0)
(d) Briefly explain “Flow control” as a basic type of Production control. 2 (0)
Section II : Information Systems
Answer Question No. 5, which is compulsory and any 2 questions from the rest, under Section II.
5. (a) Put an appropriate word or phrase in blank position: 1×6
(i) Generally, an MIS uses Computer System and ________ technology to collect information from different operational points and disseminate them to different users for decision making; (0)
(ii) ________ is a provision of secondary storage which acts as primary memory; (0)
(iii) ________ a program means eliminating errors in the program; (0)
(iv) In a database, duplicate data are eliminated and thus ________ is controlled; (0)
(v) ________ consists of high frequency radio transmission and is generally used for high volume data transmission and point–to–point communication; (0)
(vi) ________ is a redundant digit derived from some mathematical relation, out of other digits of the code, which is incorporated in the code itself to ensure correctness of code. (0)
(b) Match the items in Column I with those in Column II.
Column I Column II
(A) Search Engine (i) A language system that delivers programs to user
which can be run on the user’s machine.
(B) JAVA (ii) Spreadsheet package
(C) Microsoft Excel (iii) A programming language
(D) C++ (iv) A web site enabling users to access various levels
of information
1×4 (0)
(c) Each statement below is either ‘True’ or ‘False’. Indicate the same in your answers: 1×4
(i) OCR is reading device used to interpret printed, hand–written data directly from source documents; (0)
(ii) In a ring topology, the transmitted signal is regenerated at each node thereby minimizes the transmission error and enhances the safe distance coverage area; (0)
(iii) While taking the decision for an ERP package and its implementation in an enterprise, it is easy to budget for the same as one just needs to get the price of the package from established vendors like Oracle. SAP etc. and arrive at a budget; (0)
(iv) Interpreter translates the whole program, while Complier translates line by line. (0)
6. (a) What are the measures to ensure Access Security with Checks in a computer system? 5 (0)
(b) What are the guidelines to conduct audit of computerised accounting system? 8 (0)
(c) “Digital signatures do for electronic documents what hand written documents do for printed documents”. What is a digital signature? How is it created and verified? 2+3 (0)
7. (a) What is knowledge management and what are its benefits? 1+3 (0)
(b) What is BPR? Explain different steps in BPR. 1+6 (0)
(c) List eight basic features of an MIS. 0.5×8 (0)
(d) List six common criteria for selecting an ERP package. 0.5×6 (0)
8. Write short notes on any six of the following: 3×6
(a) Normalization; (0)
(b) Extranet; (0)
(c) Biometric Security; (0)
(d) Data Warehousing; (0)
(e) EDI; (0)
(f) Packet Switching; (0)
(g) Data Mart; (0)
(h) Test Deck. (0)

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