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OPM611S - OPERATIONAS MANAGEMENT - 1ST OPP - JUNE 2024 |
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nAmlBIA unlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF GOVERNANCE AND MANAGEMENT SCIENCES
QUALIFICATION: BACHELOR OF BUSINESS MANAGEMENT
QUALIFICATION CODE: 07BBMN
LEVEL: 7
COURSE CODE: OPM611S
COURSE NAME: OPERATIONS MANAGEMENT
SESSION: JUNE 2024
DURATION: 2 HOURS
PAPER: PAPER 1/1
MARKS: 100
EXAMINER(S)
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
MSC KAUAMI
MR MICHAEL NEEMA
MODERATOR: MR ERNEST MBANGA
INSTRUCTIONS
1. Answer ALL the questions.
2. Show all formulae and calculations as marks will be
awarded for them.
3. Write clearly and neatly.
4. Number the answers clearly.
PERMISSIBLE MATERIALS
1. Calculator.
THIS QUESTION PAPER CONSISTS OF 7 PAGES (Including this front page)
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Section A:
[14 Marks]
Question 1: Multiple Choice - Choose the correct Answer.
(Kindly note that questions 1 & 4 are 2 marks each, the rest 1 mark each)
1. How many minutes will it take to produce the backlog of 18 calculators with
capacity to produce 24 calculators an hour.
A. 1 hour and 30 minutes
B. 45 minutes
C. 67 minutes
D. 90 minutes
E. None of the above
2. _______
allows organisations to minimize costs and involves bulk
buying, movement and bulk storage of raw materials and finished goods.
A. Product availability.
B. Risk management.
C. Economies of scale.
D. Uncertainty.
3. According to the Theory of Constraints (TOC}, bottlenecks can be caused by:
A. Equipment and how it is used
B. Policies
C. Employee capability
D. All of the above
E. A&C
4. Sara James Bakery has a plant for processing breakfast rolls. Last week the facility
produced 148,000 rolls. The effective capacity is 175,000 rolls. The production
line operates 7 days per week with three (3) 8-hour shifts per day. The line was
designed to process nut-filled, cinnamon-flavoured, sugar-coated Deluxe roll at
the rate of 1,200 per hour. Determine design capacity.
A. 148 000
B. 175 000
C. 323 000
D. 67 200
E. 201600
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5. The following are service demand management strategies except,
A. Customer segmentation for different times/days
B. Difference in pricing during peak and slack times
C. Make use of a reservation system
D. encourage customer participation in the rendering of service
6. Among services supply management strategies, there is need to use .....................
that can be called in any time
A. Contingent employees
B. Shared capacity
C. Management
D. Suppliers
7. In service sector aggregate plans
A. Bind strategic goals and workforce schedules
B. Bind capacity and workforce schedules
C. Focuses on product families or total capacity requirements rather than
individual products.
D. All of these
E. None of these
8. Aggregate planning requires the manipulation of the following controllable
variable to ensure that the plan meets demand, excluding:
A. Inventory
B. Employees
C. Idle time /over time
D. Pricing
E. Suppliers
9. One of the advantages of lean methodology is combining craft and mass
production and this means:
A. Combining quality and remedy of inefficiencies
B. Combining old ways and large-scale production
C. Combining art and technology
D. None of these
E. All of these
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10. The lean stabilisation strategy is utilised to stabilise
A. Production and support process
B. Demand and supply
C. the supply chain
D. internal relationships
11. The following are part of the lean techniques, except:
A. Standard times
B. Kanban
C. Involvement of employees
D. 2 Bin system
12. Lean systems have the following core elements, except
A. Demand driven
B. Supply driven
C. Eliminate waste
D. Excellence & continuous improvement
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Section B
[53 Marks]
Question 2: Operations management
{10)
(2 marks per correct answer x 5 = 10}
Briefly explain ANY 5 of the 8-Ms an operations manager needs to manage for the
best results and high productivity.
Question 3: Supply chain management
{16)
Read the following case study and answer the questions that follow:
Case study: Mavunfa Toys and Novelties
John Matlare is the CEO of Mavunla Toys and Novelties. This organisation's main
product is a Madiba doll, which stands 30 cm high and is a life-like replica of South
Africa's former president. Matlare is in the process of evaluating suppliers that will be
able to manufacture non-toxic paint, according to his strict specifications, with which
to paint the doll. The paint has to be non-toxic because the doll will be the toy of choice
for many children. Matlare cannot afford to put the lives of children at risk. This is a
critical strategic element of his supply chain. The organisation that he chooses should
be able to contribute to his product. (Source: from 'Operations Management' 2nd
Edition 2006, by Kruger, de Wit and Ramdass).
i. Define the terms supply chain, supply chain management, and supplier. (6)
ii. By making use of a diagram, present the supply chain for a manufacturing concern
such as Mavunla Toys and Novelties.
(4)
iii. Identify any two strategic partners of Mavunla Toys and Novelties and discuss
their role/contribution to Mavunla Toys and Novelties.
(6)
Question 4: Design of goods and services
{10)
Explain the concepts of a) Robust Design and b) Mass Customization. (5 marks each)
Question 5: Process Design
{9)
Outline the six characteristics that helps in fully understanding a process, including
the categories under which each characteristic is found. (1 mark per category and
characteristic= 9}
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Question 6: Quality management
{8 marks)
(1 mark per cost type and each explanation)
Name and explain the different types of costs of quality.
Section C
[33 Marks]
Question 7: Forecasting
{18)
Actual sales of Toyota Hilux Double Cab Bakkies for the first six month in 2023 were
as follows:
January: 50 February: 85 March: 92 April: 104 May: 97 June: 90
Use this information and determine in whole numbers:
i) The average actual monthly sales for that period
(2)
ii) Trend: Increase the actual sales for June by 5% per month for the next three
months.
(6)
iii) SMA: make a forecast for July using a four months simple moving average.
(3)
iv) WMA: make forecast for July, using a three months weighted moving average
where the weights are 0.5; 0.3 and 0.2 respectively
(4)
v) Make a forecast for July, using the exponential smoothing technique, if the
forecast for June was 80 and the smoothing constant is 0,5.
(3)
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Question 8: ABC Classification of Inventory
{15)
As a recent operations management graduate you've established Tura Motors, a
second-hand car parts dealer and need to ensure optimum management of inventory.
Your first priority is to classify the inventory using ABC analysis. The following is a
complete list of inventory holding of the company. (1 mark per correct answer)
Item
Annual demand
Cost {N$)
1
10 000
8
2
4400
12
3
1500
45
4
1225
250
5
1000
20
6
500
500
7
300
1500
8
600
20
9
1 750
10
10
2 500
5
11
800
35
12
1350
350
13
6 000
10
14
2 500
50
15
120
700
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