OPM549 PAST YEAR QUESTIONS JUNE 2015

QUESTION 1

a) Briefly explain any four (4) impacts of globalization on operations management

- Increased competition. Businesses now face competition from companies around the world.
This has forced businesses to become more efficient and to improve their quality standards.

- New technologies. Globalization has led to the development of new technologies that have
impacted operations management. Businesses need to adopt these new technologies to
remain competitive.

- Changing customer expectations. Customers now expect businesses to offer a wider range of
products and services that are of high quality and that are delivered quickly. Businesses need
to adapt their operations to meet these new expectations.

- New regulations. Businesses that operate in multiple countries need to comply with the
regulations of each country. This can be a complex and time-consuming process.

b) Explain the three (3) variables in measuring productivity.

- Output. This is the amount of goods or services produced by a firm or an economy.
- Input. This is the number of resources used to produce the output, such as labor, capital, and
materials.
- Productivity. This is the ratio of output to input. It is a measure of how efficiently resources
are used to produce output.
QUESTION 2

a) Elaborate three (3) project management activities.

- Initiating is the first stage of project management. It involves defining the project, identifying
the stakeholders, and developing a project charter. The project charter is a document that
describes the project's scope, objectives, and deliverables.
- Planning is the second stage of project management. It involves developing a detailed plan
for how the project will be executed. The project plan should include the project schedule,
budget, and resources.
- Execution is the third stage of project management. It involves carrying out the project plan
and managing the project's resources. The project manager is responsible for ensuring that
the project is on track and that the deliverables are made.
b) A (4 days)
/ \
/ \
B (3 days) C (9 days)
/\ / \
D (9 days) E (3 days) F (9 days)
/\ / \
G (10 days) H (5 days)

Activity Predecessor Time Slack Time

A - 4 -
B A 3 31 - 4 - 3= 24
C - 9 31 - 9 = 22
D B 9 31 - 9 - 3 = 19
E - 3 31 - 3 - 9 = 19
F A,D 6 31- 6 - 4 - 9 = 12
G E,F 10 31 - 10 - 3 - 9 = 9
H G,F 5 3 1- 5 - 4 - 9 = 3
QUESTION 3

The objective of product decision is to develop and implement a product strategy that meets the
demands of the marketplace with a competitive advantage.

a) Explain any five (5) factors to generate new product

- Customer demand. One of the most important factors in generating new products is
customer demand. Businesses need to understand what customers want and need in order
to develop products that will be successful. This can be done through market research,
customer surveys, and focus groups.
- Technology. New technologies can provide businesses with opportunities to develop new
products. For example, the development of new materials has led to the development of
new products in the automotive, aerospace, and medical industries.
- Competition. Businesses need to be aware of the competition in order to develop new
products that will be successful. This means understanding what competitors are offering
and how they are differentiating their products.
- Internal capabilities. Businesses need to have the internal capabilities to develop new
products. This includes having the right people, skills, and resources.
- Organizational culture. The organizational culture can also play a role in generating new
products. A culture that is open to change and innovation is more likely to be successful in
developing new products.

b) The objective of layout strategy is to develop an effective and efficient layout that will meet the
firm's competitive requirements. Briefly discuss any four (4) layout design considerations.
- Product flow: The layout should be designed in a way that minimizes the distance that products
have to travel. This can be done by grouping together activities that are performed on the same
product or by using a U-shaped layout.
- Material handling: The layout should be designed to minimize the need for material handling.
This can be done by using gravity-fed conveyors or by using automated guided vehicles.
- Space utilization: The layout should be designed to utilize the available space efficiently. This
can be done by using compact equipment or by using space-saving techniques such as double-
decking.
- Employee comfort: The layout should be designed to provide a comfortable working
environment for employees. This can be done by providing adequate lighting, ventilation, and
space.
QUESTION 4

a) Explain any five (5) quality dimensions for goods.

- Performance. This refers to the primary operating characteristics of a good, such as its
speed, -durability, and accuracy. For example, a car's performance would be measured by its
acceleration, fuel efficiency, and handling.
- Features. This refers to the secondary characteristics of a good, such as its appearance,
comfort, and convenience. For example, a car's features would be measured by its interior
design, sound system, and safety features.
- Reliability. This refers to the probability that a good will perform its intended function
without failure for a specified period of time. For example, a car's reliability would be
measured by its average number of breakdowns per year.
- Durability. This refers to the ability of a good to withstand wear and tear over time. For
example, a car's durability would be measured by its average lifespan.
- Serviceability. This refers to the ease with which a good can be repaired or maintained. For
example, a car's serviceability would be measured by the availability of spare parts and the
ease of access to the engine.

b) Elaborate on the four (4) cost of quality.

- Prevention costs are the costs incurred to prevent defects from occurring in the first place.
These costs include activities such as training, quality planning, and process improvement.
- Appraisal costs are the costs incurred to identify and measure defects. These costs include
activities such as inspection, testing, and rework.
- Internal failure costs are the costs incurred when defects are detected before the product is
shipped to the customer. These costs include activities such as scrap, rework, and downtime.
- External failure costs are the costs incurred when defects are detected after the product is
shipped to the customer. These costs include activities such as warranty claims, product
recalls, and lost sales.
QUESTION 5

a) Differentiate between preventive maintenance and breakdown maintenance.

- Preventive maintenance (PM) is a proactive approach to maintenance that involves regularly

inspecting and servicing equipment to prevent failures. This can involve tasks such as
lubrication, cleaning, and replacing worn parts. PM can help to extend the lifespan of
equipment and reduce the likelihood of breakdowns.

- Breakdown maintenance (BM) is a reactive approach to maintenance that involves only

fixing equipment when it breaks down. This can be more costly than PM, as it may involve
emergency repairs and downtime. However, BM may be necessary for equipment that is not
critical or that is difficult to access.

b) Explain two (2) reliability tactics in organization.

- Reliability-centered maintenance (RCM) is a systematic approach to maintenance that

focuses on preventing failures. RCM involves identifying the critical failure modes of
equipment and then developing maintenance strategies to prevent those failures from
occurring.

- Condition-based maintenance (CBM) is a proactive approach to maintenance that uses data

to determine when maintenance is needed. CBM involves monitoring the condition of
equipment and then taking action when the equipment reaches a certain threshold.
QUESTION 6

a) Compute the normal time for the task

Units/producing = NT
42Units divide by 130% = 32.3

b) Calculate the standard time for the task.

NT + F + PTA = ST
32.3 + 15% = 37.25

c) If the production runs in an eight-hour daily with seven working days, compute the weekly unit
produced by the firm.
******************