BSB10192-5 Year 2011-2012 Student Number ……………………………. Operations Management Closed Book Examination Date w/c 9th January 2012 Time Allowed 2.00 hours Exam No BSB10192-5 Venue Stoke / Stafford / SURF network Weighted 100% Examiner Roy Edwards Internally verified by: Stephen Kelly Session 2011-12 Marks Multi Choice Section Yes/No Section Short Answer Section TOTAL MARKS Page 1 of 19 First Marker Second Marker BSB10192-5 Year 2011-2012 Instructions to candidates: Section A 27 Multiple choice questions @ 2% each 6 Yes/No questions @ 1% each = 54% = 6% Section B 5 Short answer questions @ 8% each = 40% You should answer all questions Section B – Short answer questions (40%) Section B of the examination paper will contain only 5 questions. These questions will be selected, by us, from the pre-published list of 8 possible questions given below. You will be required to write answers to all 5 of these questions. You will NOT KNOW WHICH 5 questions have been selected for the paper until you sit the exam. It is expected that your response to each question would be no more than 150 words, This exam paper has the requisite spaced lines for each of the written answers. Only in exceptional circumstances will additional answer books be accepted and these should be clearly marked in the usual way with your student name and number. You will NOT be allowed to take material, notes, articles or books into the examination with you. Please note that higher marks will be given where the exam paper as a whole reflects: Independent thought and ability to apply operations concepts to practical effect. A structured approach that utilises appropriate terminology and relevant models and frameworks where necessary. A good balance between the practical and theoretical aspects. Accuracy and clarity of style in presenting answers. This is a closed book examination and Staffordshire University regulations for examinations apply. Page 2 of 19 BSB10192-5 Year 2011-2012 Module: Operations Management Re: Multiple Choice Sections – Section A Instructions to students 1) Enter student name and number at the top of the answer sheet 2) This test paper contains 27 multiple choice questions, each carrying equal marks @ 2% each plus 6 yes/no type questions @ 1% each 3) Candidates must answer all the questions on this paper. 4) Select the ONE letter corresponding to the MOST APPROPRIATE answer for each question, and place an ‘X‘ in the appropriate box on the answer grid. 5) Stop immediately when time is up. 6) You may not leave the room before the allocated time is up. 7) The answer sheet and the question booklet must be handed in at the end of the test. [Example] 1. The common name for the system which allows employees to choose their starting time, finishing time, and to vary their lunch-break, within agreed parameters is A) Varytime B) Flexitime C) Overtime D) Personal time In this example, the correct answer is ‘B) Flexitime’ and should be indicated as: A Question 1 B C D Mark x If you wish to change your answer, the original answer must be clearly crossed out so that the desired answer is absolutely clear. If there is any doubt as to your desired answer, that response will receive no marks. Note: In questions where the word “NOT” is emphasised, the correct answer is the statement that is not true in the given context. This is often most easily found by first identifying the true statements. Page 3 of 19 BSB10192-5 Year 2011-2012 Level 5 Operations Management - Multiple question answer Sheet Please write student name: ___________________________ Student Number: ___________________________ Date of Exam: w/c 9th Jan 2012 A B C D Assessor: Roy Edwards Mark A Question 1 Question 18 Question 2 Question 19 Question 3 Question 20 Question 4 Question 21 Question 5 Question 22 Question 6 Question 23 Question 7 Question 24 Question 8 Question 25 Question 9 Question 26 Question 10 Question 27 Question 11 Question 12 B Score @ 2% each Yes / No Questions Question 13 A Question 14 Question 28 Question 15 Question 29 Question 16 Question 30 Question 17 Question 31 B Question 32 Question 33 Score @ 1% each TOTAL SCORE Page 4 of 19 C D Mark BSB10192-5 Year 2011-2012 RESIT Operations Management MULTIPLE CHOICE TEST SECTION 1 A) B) C) D) 2 Which of the following statements concerning manufacturing and service organizations is generally true? A service facility is more likely to serve national or even international markets Manufacturing organizations generally find it more difficult to match capacity with demand In many service organizations customers themselves are inputs to the transformation processes. Most service organizations can buffer themselves against uncertain demand by creating inventories and smoothing output levels. A) B) C) D) Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of ‘visibility’ (ie, customer contact) that they give to customers of the delivery process. Please match the following element with the most appropriate of the above dimensions. Low unit costs are most closely matched to:Variety Variation Volume Visibility 3 A) B) C) D) Which of the following is an implication of low variety? Low unit cost Flexibility needed High complexity Matching customers specific needs 4 In a service organisation faced with variable demand the Operations Manager can help smooth demand by: using part-time help during peak hours scheduling work shifts to vary workforce needs according to demand increase the customer self-service content of the service using reservations and appointments A) B) C) D) 5 A) B) C) D) 6 A) B) C) D) When developing the operations strategy one of the most important considerations is that it: Requires minimal capital investment Utilises as much automation as possible Utilises an equal balance of labour and automation Supports the overall competitive strategy of the company A order qualifying characteristic could be described as : A factor which significantly contributes to winning business A factor which may be of significance in other parts of the organisation A factor which is at a higher level than the standard for the industry A factor which has to achieve a particular level to be considered by the customer Page 5 of 19 BSB10192-5 Year 2011-2012 7 A) B) C) D) Expansion by acquisition of suppliers and customers, illustrates which of the following strategies Vertical integration strategy Facilities strategy Planning and control systems strategy Supplier development strategy 8 A) B) C) D) Process design or redesign is most important when current performance is adequate you have a significant competitive advantage competitive priorities have changed the cost of inputs remain stable 9 A) Service shops are characterised as which of the following? Some customer contact, a degree of customisation and some staff discretion Project orientated with little customisation Many customer transactions, involving limited contact time High-contact organisations where customers spend a considerable time in the service process B) C) D) 10 A) B) C) D) A big advantage of a process layout is Its flexibility Its low cost The ability to employ low-skilled labour Its high equipment utilization 11 As production systems move from projects to batch production to mass production to continuous production Processes become more flexible Customer involvement with the process increases Products become more standardised Demand volumes decrease A) B) C) D) 12 A) B) C) D) Which one of the following reactive alternatives would typically be best to implement a chase strategy for a manufacturing firm? Use creative pricing to modify demand Build anticipation inventory to absorb the variability in demand Increase overtime to satisfy peaks in demand Use promotional campaigns to boost demand 13 Buffer inventory is required as : A) C) D) One or more stages in the operation cannot supply all the items it produces simultaneously Material cannot be transported instantaneously between the point of supply and the point of demand Compensation for the uncertainties inherent in supply and demand Compensation for differences in the timing of supply and demand 14 At a strategic level, the essential role of inventory is to support : B) Page 6 of 19 BSB10192-5 Year 2011-2012 A) B) C) D) Quality, dependability, flexibility, cost and speed Flexibility, dependability and quality Cost and speed Range, speed, flexibility and dependability 15 Where demand is uncertain, a key purchasing objective will be : A) B) C) D) Fast delivery High quality Low price Dependable delivery 16 In lean systems, if a defective product if found, which of the following is generally NOT done? The production line is stopped The defective unit is passed on to the next workstation The defective unit is returned to the worker responsible for creating the defect The production line is made aware of the problem without stopping the line A) B) C) D) 17 A) B) C) D) 18 A) B) C) D) 19 A) B) C) D) 20 A) B) C) D) 21 A) Which of the following illustrates an activity that does not add value? Training employees Ordering parts from a supplier Accumulating parts in front of the next work centre Delivering the product to the customer Job design does not involve which one of the following considerations : How much autonomy should be given to individual employees? What tasks should be allocated? Who should be involved / consulted? Ignoring where the job is located Within a typical behavioural model of job design, which of the following would be considered as representing core job characteristics? Task combination / task identity / autonomy Vertical loading / skill variety / output Task identity / task significance / autonomy Cultural advancement / absenteeism / nationality When a worker has a say in the work methods that he/she wishes to utilise in his/her job is characterised by : Skill variety Job identity Job significance Autonomy Which of the following is NOT considered effective in achieving and maintaining service quality? Encouraging service providers to be highly visible in dealing with Page 7 of 19 BSB10192-5 Year 2011-2012 C) D) customers Establishing peer groups among service providers to foster teamwork and a sense of pride Installing system of incentives that emphasises quality Increasing supervision of service providers 22 A) B) C) D) A quality variable takes discrete values may be measured on a continuous scale is continually changing is highly undesirable 23 A) B) C) D) Which of the following is an indirect benefit of improved quality? Improved image Reduced cost of inspection Reduced scrap Reduced inventory 24 A) D) A ‘moment of truth’ is NOT an opportunity to influence a customer’s perception of the service quality critical in achieving a reputation for superior quality when the customer is forming an opinion about the efficiency of the service an interaction between the customer and a service provider 25 A) B) C) D) Proactive quality management includes the concept of quality improvement costs more needing to find out who is responsible for the quality problem getting the service to the customer as soon as possible highlighting problems to help solve them 26 A) B) C) D) Zero defects in manufacturing is an unobtainable and misleading ideal is the goal of TQM is readily achievable in all areas is a relevant goal only in electronic assembly 27 Which of the following represent reasons for globalising operations? To gain improvements in the supply chain To improve operations To expand a product’s life cycle All of the above B) B) C) A) B) C) D) 28 A common difference between jobbing and mass operations is degree of product standardisation A) True Page 8 of 19 BSB10192-5 Year 2011-2012 B) False 29 Companies that compete based on flexibility often cannot compete based on cost True False A) B) 30 The design of products and services is separate and distinct from the design of processes and they should be treated quite independently A) B) True False 31 Social responsibility is an issue for executives, not operation managers True False A) B) 32 A) B) In an ABC inventory system, Class A items require loose inventory control because of their high value True False 33 Jobs that are designed purely on the division of labour, scientific management or ergonomic principles can alienate the people performing them. A) B) True False Page 9 of 19 BSB10192-5 Year 2011-2012 Section B – Short answer questions (40%) Section B of the examination paper will contain only 5 questions. These questions will be selected, by us, from the pre-published list of 8 possible questions given below. You will be required to write answers to all 5 of these questions. You will NOT KNOW WHICH 5 questions have been selected for the paper until you sit the exam. It is expected that your response to each question would be no more than 150 words, This exam paper has the requisite spaced lines for each of the written answers. Only in exceptional circumstances will additional answer books be accepted and these should be clearly marked in the usual way with your student name and number. Page 10 of 19 BSB10192-5 Year 2011-2012 Question 1 Briefly describe how a progressive approach to workforce management and job design opportunities can be applied in practice? Page 11 of 19 BSB10192-5 Year 2011-2012 Question 2 “A major responsibility for all managers in the future will be the support of company based systems designed to ensure the quality of product or services”. Discuss why quality has become such a live issue today? Page 12 of 19 BSB10192-5 Year 2011-2012 Question 3 Using a restaurant as an example, what are some of the consequences of under-utilisation and being over-stretched with respect to the management of capacity? Page 13 of 19 BSB10192-5 Year 2011-2012 Question 4 Briefly outline how operations can contribute in various ways to implementing and supporting the strategy of an organisation to ultimately driving the competitive success of the business? Page 14 of 19 BSB10192-5 Year 2011-2012 Question 5 Briefly explain the importance of corporate social responsibility, with some examples of voluntary actions a business can take to address interests of the business and the wider society. Page 15 of 19 BSB10192-5 Year 2011-2012 Question 6 Operations transform input resources into output products and services, they may be differentiated by the extent of volume, variety, variation and visibility. Briefly describe how the four V’s are used to distinguish between different types of process design in either a product or service business? Page 16 of 19 BSB10192-5 Year 2011-2012 Question 7 Describe the various ways in which operations management can contribute to the success of an organisation, using IKEA as an example Page 17 of 19 BSB10192-5 Year 2011-2012 Page 18 of 19 BSB10192-5 Year 2011-2012 Question 8 Briefly outline the core principles of Supply Chain Management and why the concept has become so important for competitiveness? Page 19 of 19