Download EIN 5322 Engineering Management

EIN 5322 Engineering Management
Spring 2001
Exam I
June 29, 2017
First Part (Closed book, closed notes)
I. True/False Questions
____
1.
One of the functions of a top manager is: “Defining mission and objectives of the enterprises.”
____
2.
Interpersonal skills are only important to middle manager.
____
3.
Planning provides a method of identifying objectives and designing a sequence of program and
activities to achieve these objectives.
____
4.
The First step in the planning process is defining the problem.
____
5.
A model is a simplification of reality.
____
6.
Management science uses a step process that begins in the real world, moves into the model to solve
the problem, then returns to the real world for implementation.
____
7.
For an organization role to exist and be meaningful to people it must incorporate non-verifiable
objectives.
____
8.
The natures of job supervision and staff assistance are conditions that affect the Span of Control.
____
9.
In "Force Ranking", several persons can be placed on each step of the ladders.
____
10. 4-5 members are considered to be an ideal committee size.
____
11. Motivation in an organizational sense can be defined as the willingness to exert high level of efforts
to reach organizational goals, conditioned by the effort's ability to satisfy some individual need.
____
12. Theory X - Management assumes people are not by nature passive.
____
13. Theory Y - relies up on external control of human behaviors.
____
14. The lowest order of needs in Maslow's hierarchy is safety and security needs.
____
15. The Porter - Lawler extension is an extension of the expectancy theory model involving employee
promotion.
II. Essay Questions
1. Mangers need three types of skills: Technical, Conceptual, and Interpersonal. However, the
levels of skill required at different levels of management are different. Please fill in the
blanks in the following figure. (2 points)
Top
Managerial Level
Middle
skills
skills
skills
2. Please briefly describe the concept of “MBO”. (3 points)
3. Name the two types of status. (2 points)
4. Define "Span of Control". (2 points)
Lowest
Second Part (Open book, open notes)
1. Irwin Textile Mills produces two types of cotton cloth - denim and corduroy. Corduroy is a heavier
grade of cotton cloth that requires 8 pounds of raw cotton per yard, whereas denim requires 6 pounds
of raw cotton per yard. A yard of corduroy requires 3.2 hours of processing time; a yard of denim
requires 3.0 hours. Although the demand for denim is practically unlimited, the maximum demand
for corduroy is 600 yards per month. The manufacturer has 6,500 pounds of cotton and 3,000 hours
of processing time available each month. The manufacturer makes a profit of $2.25 per yard of
denim and $3.10 per yard of corduroy. The manufacturer wants to know how many yards of each
type cloth to produce to maximize profit.
a) Formulate the linear programming model for this problem.
b) Solve this model using the graphical approach.
2. The following payoff matrix indicates the profits associated with three decision options and four
states of nature.
State of Nature
Option
S1
S2
S3
S4
20
25
30
35
T1
40
30
40
20
T2
10
60
30
25
T3
Select the decision option according to
1) the maximin rule;
2) the maximax rule;
3) the Laplace rule (Equally likely)
4) the Hurwicz rule with  = 0.2; and
5) the minimax regret rule.
3. Using exponential smoothing with a weight  of 0.7 on actual values:
a) If sales are $760,000, $820,000, $950,000 for 1993, 1994 and 1995, what would you forecast for
1996?
b) Given this forecast and actual 1996 sales of $1,030,000, what would you then forecast for 1997?
c) What sales would you forecast for 1997 using the simple regression (least squares) method?