UNIVERSITY OF PETROLEUM & ENERGY STUDIES

Course Work Examination July-2013

Name of the Program EMBA-OG

Duration

: 3 hours

Course Title: Operations & Material Management

Max. Marks

: 100

This question paper has3pages.

Section A
Attempt all the questions.
1. a) What factors would you consider while selecting the location of LPG Bottling
plant?
b) Suppose your refinery is located in Gujarat, what factors do you consider for the
import of crude?
c) Discuss the significance of Process Capability in quality control.
d) How ergonomics plays important role in designing a plant layout?
e) Enumerate applications of SCADA in Oil & Gas Industry?
f) How price discount model can be used for inventory control?
g) How Acceptance Sampling is applicable in the O&G Industry? s
h) Describe the pre-requisites for competitive bidding?
i) Discuss the applications of TQM in O&G industry?
j) Briefly discuss six sigma and how it is applicable in your industry?
Section B
Attempt any four out of the following. Each question carries 5 marks.
2. Discuss the Purchase procedure for your organization and also briefly discuss the
purchase policy you practice?
3. What factors do you consider for choosing a port for import of crude for a refinery
located in the state of Gujarat?

4. Differentiate variable charts from attribute charts in SQC? Illustrate with practical
examples.
5. How scope of material management is critical in case of your industry?
6. Productivity in a petrochemical manufacturing organization has been declining for
last few months, how would you improve the productivity and suggest the
appropriate factors for the same?
4 x 5 = 20
Section C
Attempt any THREE out of the following. Each question carries 10 marks.
7. Compare various methods of location decision for a retail outlet. How would you
decide the best location? How the choice of method would vary when qualitative
factors are also to be considered?
8. Management of Beeta Chemicals stated that it could tolerate only one stock out per
year for a specific item M. Item M has the annual demand of 64,000 units, it is
ordered in quantities of 3200 units and standard deviation of demand during lead
time is 80 units. The lead time is 6 days. (Assume safety factor = 1.65 for 95%
service level)
Calculate the following:
a) Number of Orders per year
b) Safety Stock
9. Material handling is crucial for the success of material management, elaborate a
specific situation when mishandling of material handling equipment led to accident
in your company/industry? Discuss the factors responsible for the selection of these
equipment.
10. Define various functions performed by a purchase manager, discuss the role of
pricing decision in negotiation for logistic decisions. Illustrate with practical
examples.
3 x 10 =30
Section D
11. a) What are various aggregate planning strategies available and specify which
strategies are practiced in your industry?
b) A regional manufacturer dealing in super special chemical products has the
monthly demand as follows:

Month
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.

Demand (units)
212
180
235
217
176
187
221
212
220
203
138
175

No. of Production Days

22
27
26
23
28
20
25
22
28
27
19
24

Show the daily requirement and cumulative demand graphically and determine the
production rate to meet the average.
7+8
12. a) Productivity in a petrochemical manufacturing organization has been declining
for last few months, how would you improve the productivity and suggest the
appropriate factors for the same?
b) In a manufacturing company, the standard time allowed for the production of a
unit is 6 hrs. If in a particular month 136 units are produced by hiring 6 employees
and the allowable delays are observed to be 32 man-hours, determine the
productivity?
7+8