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OPM611S - OPERATIONS MANAGEMENT - 1ST OPP - JUNE 2025 |
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nAmlBIA UnlVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND 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 2025
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 6 PAGES (Including this front page)
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Section A:
[12 Marks]
Question 1: Multiple Choice - Choose the correct Answer. (1 mark each)
1. One focus area of the lean penetration strategy is training for all levels of
employees in the organisation.
A. True
B. False
2. The factors influencing effective capacity include all except:
A. Regulatory issues
B. Facility issues
C. Employee issues
D. Operational issues
E. Process issues
3. Aggregate planning is capacity planning in the long term
A. True
B. False
4. The lean stabilisation strategy is utilised to stabilise
A. Production and support process
B. Demand and supply
C. the supply chain
D. internal relationships
5. The following are characteristics of capacity planning, except:
A. Intimately related to demand
B. Critical resource
C. Never constant
D. Infinite
E. None of the above
6. Aggregate planning is about matching static demand with supply
A. True
B. False
7. Acquiring new capacity requires extensive planning, resources, time and may take
several years
A. True
B. False
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8. 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
9. Idleness costs are incurred only as a result of unproductive employees.
A. True
B. False
10. Capacity decisions have no implications on the different functional areas in the
organisation
A. True
B. False
11. 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
12. Study the following statements and identify the correct option[s]
Statement 1 Today, organisations are not guaranteed a client base due to
globalisation and this requires them to deliver at a higher level
than before
Statement 2 It's important to remember that there is no single factor that
guarantees customer satisfaction.
A. Both statements are correct
B. Statement 1 is correct, statement 2 is incorrect
C. Statement 1 is incorrect, statement 2 is correct
D. Both statements are incorrect
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Section B
[56 Marks]
Question 2: Operations management
(10 marks)
Summarize or illustrate in a diagram the operations management transformation
system.
Question 3: Supply chain management
(12 marks)
a. Graphically illustrate, and briefly discuss the supply chain of a leather shoe
manufacturing business.
(6)
b. Strategic partners are important in ensuring the success of any supply chain.
Identify and briefly discuss what role any two strategic partners could play in the
leather shoe manufacturing business.
(6)
Question 4: Design of Goods and Services
(10 marks)
1Case Study: Hi-Tee men's Apex 3-in-1 jacket by Hi-Tee in South Africa
Hi-Tee in South Africa designs, manufactures, and sells the Hi-Tee Men's Apex 3-in-1
jacket which they describe as follows: 'The Hi-Tee Men's Apex 3-in-1 is your go-to for
year-round weather conditions. Wear it 3 ways - as a single fleece, an outer rain shell
or as a warmer winter jacket with both fleece inner and waterproof outer. Features
that promise ultimate performance are its 3000mm waterproof membrane, taped
seams and SBSzips. Its fixed and removable hood can easily be folded in and out of its
pouch and its 240g inner fleece offers great warmth.'
1. Drawing from the above case and the concept of robust design:
a. Briefly explain robust design
(2)
b. What does the specification 'waterproof' really mean to a customer? What does
'fit for purpose' mean in this context?
(4 marks - 2 each)
2. At what stage(s) of product design and development do you suggest Hi-Tee
should include the usage conditions? Briefly motivate.
(4)
1 Source: Kruger, D., Ramphal, R., & Moritz, M. {2023). Operations Management {4th ed.). Oxford University
PressSouthern Africa.
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Question 5: Process Design
(12 marks)
Describe the strategies for manufacturing processes and provide a relevant example
of each strategy.
(1 mark per strategy; 2 marks: explanation; 1 mark example)
Question 6: Lean Systems management
(12 marks)
List and briefly explain any 6 costs incurred as a result of waste.
(2 marks per answer)
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Section C
[32 Marks]
Question 7: Forecasting:
(15 marks)
Actual sales of fridges for the first six months in 2024 were as follows:
January 60
April 58
February 60
May
54
March 62
June 52
Use this information and determine in whole numbers:
i. The average actual monthly sales for that period
(2)
ii. Trends: Reduce this average by 5% per month for the next three months
(3)
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 54 and the smoothing constant is 0,5.
(3)
Question 8: Economic Order Quantity
(17 marks)
Rukaa's Entertainment Centre sells 18 000 cases of Jumbo Fizzy drinks per year. The
holding costs are estimated to be N$ 60 per case and the costs of placing an order
amount to N$ 50 per order. The business is open for 350 days per year.
Determine:
i. the optimal economic order quantity (EOQ)
(3)
ii. the number of orders per year
(2)
iii. the length of the ordering cycle
(3)
iv. the total annual inventory costs
(3)
v. if the holding costs increase to N$70 per case, what will the total annual
inventory costs amount to?
(6)
-END-
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