Pscm 430: Operations Management Question Paper
Pscm 430: Operations Management
Course:Accounting,Finance And Investiments
Institution: Kenya Methodist University question papers
Exam Year:2013
KENYA METHODIST UNIVERSITY
END OF 1''ST ''TRIMESTER 2013 (DAY) EXAMINATIONS
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : ACCOUNTING FINANCE AND INVESTIMENTS
UNIT CODE : PSCM 430
UNIT TITLE : OPERATIONS MANAGEMENT
TIME: 2 HOURS
Instructions:
Answer question ONE and any other TWO questions.
Question One
Explain the meaning of the following capacity related terms as used in operations management
Design capacity
Capacity strategy
Capacity utilization.
(6mks)
Describe the processes involved in the development of a new product.
(10mks)
The table below shows the actual demand of an unpopular soft drink
Month Demand
1 58
2 92
3 63
4 72
5 98
6 66
7 80
8 71
9 63
10 -
Using weighted moving average 0.2,0.3, and 0.5, determine forecast demand from the 4th month.
(5mks)
Determine also, the forecast demand using exponential smoothing with Y=0.2
(5mks)
Explain the various dimensions of competitiveness that organizations focus on.
(4mks)
Question Two
Discuss the options available to businesses in managing variations in demand and capacity when implementing aggregate planning.
(15mks)
Clearly distinguish between process and product layouts.
(5mks)
Question Three
Discuss some of the major current issues facing today’s operations management executives.
(10mks)
Explain the various roles of an operations strategy.
(10mks)
Question Four
Sweet care limited is in the process of introducing a new production line. The project has numerous activities that should be accomplished. The activities and their durations are listed in the table below.
Activity Predecessors Normal time in (days) Crash time (days Normal cost (Ksh. 000) Crash cost (Ksh. 000)
A - 4 3 450 650
B A 7 5 320 400
C A 6 6 180 180
D A 4 3 120 120
E BC 5 3 300 420
F DE 6 3 400 200
G E 2 1 150 240
H FG 4 3 350 500
I H 2 2 120 120
Assuming that the activities take their normal time, draw an activity network and determine the duration of the project.
(12mks)
Determine the normal cost of carrying out the project.
(2mks)
If the project duration was reduced by two days, determine the extra cost incurred by the organization.
(6mks)
Question five
Leman consulting firm has organized a seminar on manufacturing strategies among industries in the new look East Africa. You have been requested to talk on the layout of organizations premises to maximize productivity which key issues would you ensure you discus in your talk?
(10mks)
Inventory is vital for any business to achieve its core objectives not only they necessary for operations but also contribute to customer satisfaction. Clearly explain the functions of inventory in organizations.
(10mks)
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