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XE310 1 / 5
SCHOOL OF ENGINEERING
MODULAR HONOURS DEGREE COURSE
LEVEL 3
SEMESTER 2
2002/03
PRODUCTION & OPERATIONS MANAGEMENT
Examiners Dr M P Jones / Mr R Morris
Attempt 4 questions only.
Time allowed : 2 hours
Total number of questions = 6
All questions carry equal marks.
The figures in brackets indicate the relative weightings
of parts of a question.
Special requirements : Graph paper
XE310 2 / 5
1)
a) Delegation of decision making is a useful tool for a manager. Outline the benefits
and risks associated with it.
(6)
b) A small group has been formed within a domestic appliance company to develop
a new product. Explain why and how they should go about segmenting the
market and explain the role of features and benefits analysis when specifying the
new product.
(9)
c) The company of part (b) has chosen to develop a new product to grow its
business. This gives two avenues of business growth; name and explain these.
(5)
2)
a) Explain the distinction between Strategic, Operational, and Project Planning
within a company environment
(6)
b) Explain the concept of product life cycles from a financial viewpoint, and explain
how this impacts on a company’s strategic planning.
(8)
c) Explain how Strategic Business Units (SBUs) within the Boston Consulting
Group (BCG) matrix would differ in terms of their product lifecycle profile.
(6)
XE310 3 / 5
3)
a) Explain how economic and statistical forecasting techniques can be used together
to reduce forecasting error. Include in your answer at least one example of each
type of forecasting technique.
(4)
b) Table 1 shows the value of sales of a company’s main product during the past 24
months. Select and use an appropriate technique to forecast the value of sales in
period 25, taking into account the nature of the sales data. Show clearly how you
arrive at your forecast and justify the technique employed.
Period
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
(12)
16
17
18
19
20
21
22
23
24
Sales (k) 170 265 324 362 182 218 203 198 186 178 200 220 90 146 180 196 100 115 110 106 100 96 111 123
Table 1 showing value of sales for the past 24 months.
c) Summarise the possible knock on effects for the company of sales forecast being
inaccurate and suggest steps that might be taken to accommodate this.
(4)
XE310 4 / 5
4)
a) Outline the steps required to undertake Systematic Layout Planning (SLP)
(6)
b) A factory has a machine shop that measure 25 m x 35 m. Within it are 8 machine
groupings, varying form lathes to vacuum forming equipment, which have been
given alphabetic labels. Each group of machines requires roughly the same
amount of area except for machine groups A and F which require twice as much
as the others, and machine group D, which requires 3 times as much.
A Part Sequence Operation shows that parts move from area to area as shown in
the following travel chart:-
To
H
A
10
G
F
E
D
45
30
100
30
20
80
120
B
From
C
10
35
D
70
E
85
30
F
60
100
G
10
C
B
20
40
70
20
20
15
Plan the factory layout using Systematic Layout Planning.
(14)
XE310 5 / 5
5)
a) Outline the differences between MRP and MRPII.
(6)
b) MRP is a powerful and widespread tool used widely throughout industry. Discuss
therefore why it might once have been described as “the $100Bn mistake”.
(14)
6)
a) Outline techniques that might be used to increase employee motivation.
(6)
b) Discuss the issues, and different approaches that a manager in a large company
might face, in seeking to motivate
i)
shop floor staff and
ii)
staff in the research department.
(14)