USN No:
Trimester -III EMBA Examinations – October 2020
Course Title: Operations Management
Duration: 03 Hours
Time: 10:00 AM to 01:00 PM
Note:
Course Code: 18EPG301
Date: 10-10-2020
Max Marks: 100
1. All sections are compulsory
2. Draw neat diagrams wherever necessary
SECTION – A
(Short Answer – Answer any Three Questions)
03x05=15 Marks
What do you understand by ‘Operation Management’? What are the roles
and responsibilities of Operations Managers?
(05 Marks)
2.
What’s ‘Capacity’ In Operations Management? How is it measured?
(05 Marks)
3.
Explain the concept of ‘Order Qualifier’ and ‘Order Winner’ in Operations
Strategy.
(05 Marks)
Describe the typical steps followed for developing a new product.
(05 Marks)
1.
4.
SECTION – B
(Short Essay – Answer any FOUR Questions)
5.
6.
7.
04x10=40 Marks
Name and explain at least four competitive priorities used to influence the
customers in order to improve the market share.
(10 Marks)
A product, comprising of two parts A & B are to be manufactured. Shown
below is the set up time, processing time for these components. Determine
the total processing time of the product for a batch size of 600 units.
Part
Set up time
(min)
Processing Time
(sec)
A
55
54
B
30
64
An XYZ refrigerator supplier has experienced the following demand for
refrigerator during past 5 months. Forecast for July, using: a) Simple
Average Method and b) 3-period Average Method
Month
Sales
Feb
20
Mar
30
Apr
40
May
60
Jun
45
(10 Marks)
(10 Marks)
Page 1 of 3
8.
9.
Name and describe 7 QC tools popular for solving quality related issues in
the industry.
(10 Marks)
Define Six Sigma and explain the key concepts used to implement a Six
Sigma quality initiative.
(10 Marks)
SECTION – C
Case Analysis
03x15=45 Marks
Cadbury, a company best known for its confectionery products including the Dairy Milk chocolate
is a global organization which manufactures, markets and distributes branded products in over
200 countries. It employs over 40,000 people worldwide and is the fourth largest supplier of
chocolate and sugar confectionery in the world.
The main raw material for producing Cadbury products is Cocoa and 70% of it is imported from
Ghana and 30% from other part which also include UK. Raw materials are transformed to
Cadbury products from the Bourneville. Once the product is ready, is stored in warehouse and
from there it is supplied to wholesale dealers and other suppliers and in turn to the customers.
Some portion of the product is supplied to the customers via Cadbury self-owned shops.
Cadbury mainly produces chocolate bars in batch production , because of wide variety, including
sizes and flavor.
Cadbury outlines the first rule of success as, "the best quality -nothing is too good for the public".
In the older days of chocolate production, the only way that the standard of the chocolate would
be measured is by taste testing. Every 20 minutes a chocolate bar is taken from each batch that is
being produced and will be checked for their appearance and taste.
Cadbury monitors the production process by using total quality management to ensure that the
chocolate/products that are produced are of a high quality and meet the needs of the customers.
This is vital for Cadbury because they produce chocolate products which has a lot of substitutes
in the market. Customers could lose interest in Cadbury products if their expectations are not
met.
The capacity planning strategy adopted by Cadbury makes sure that the organization has enough
capacity to exceed the current demand and mean while it also uses match strategy to slowly
increase the capacity in order to meet the ever increasing Cadbury demand. Cadbury capacity
planning is mix of lead and match strategy.
In order to control inventory in an efficient and effective manner, Cadbury introduced Service
Level Optimizer 99+ that easily integrated into the SAP APO system that Cadbury was already
using. After implementing this inventory buffer variability and demand control had less human
intervention, safety stocks determination was highly automated and the inventory management
of Cadbury was stable. This step towards an effective inventory management helped them satisfy
the customer needs at reduced costs.
10.
Why does Cadbury use batch production? Describe the differences
between batch and flow production.
(15 Marks)
Page 2 of 3
11.
12.
Cadbury uses the principles of Total Quality Management to ensure that
its products that are produced are of a high quality. How does TQM differ
from Traditional Quality?
(15 Marks)
What strategies does Cadbury adopt for capacity planning? Distinguish
between Lead and Match Strategies?
(15 Marks)
Page 3 of 3