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Production And Operation Management(Buss 323) Question Paper

Production And Operation Management(Buss 323) 

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2010



TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE (compulsory) and any Other TWO Questions.

Question 1
Konza Two Ltd were incorporated in 1996 and have done business in Kenya ever since. They started operations in Machakos in a small foundry at the back of the main bus stop. Their specialization then was the manufacture of energy saving stoves and various cooking pots and flower vases.
Over time, the company moved to Nairobi’s Industrial area where they now operate a production unit with a staff establishment of 150. The company’s turnover in 2008 was Ksh. 85 million. The production department has been tasked with the role of both designing the products and the actual production.
They however worked closely with both the marketing department and the finance department to ensure that all the departments contribute to the profitability and market share objectives of the company. Towards this end, they have continuously grown and they now control 20% of the home appliance (cooking and serving) market in the country. Standardization has been a key production theme at Konza Two. In addition the management ensures that quality assurance is given due consideration and they have an inspection unit to ensure that nothing is left to chance.
Required:
a) Discuss the main considerations that the production engineers have to take into account as they design the different product at Konza Two(10marks)
b) Explain the advantages and disadvantages that this firm is likely to face as a result of embracing standardization. (10 marks)
c) Discuss the issues that the production manager has to deal with while making decision on inspections. (10 marks)

QUESTION 2
Project management while borrowing a lot from traditional management, has however got its unique requirements, chief among these is the way the project is structured. Some firms prefer pure project structures others favour functional project structures while others favour a matrix structure.
Required:
Explain the following project structures citing their advantages and disadvantages;
a) Functional project (10 marks)
b) Matrix project. (10 marks)

QUESTION 3
Marion Joy Health products have identified an opportunity to locate one of their production units in Juba (southern Sudan) to take advantage of the obvious market potential posed by the upcoming economic growth and the coming referendum. Olive Dickens the CEO at Marion Joy has instructed that all system should be set in motion for the commissioning of the Juba plant by December 2010.
Grace Sidi the operation manager at Marion Joy while in agreement with the CEO, (does she have a choice?) has however cautioned that several factors should be considered before embarking on the new project. Among the factors that she has advised the board to consider is staffing, infrastructure and proximity of resources.
Required:
Discuss the elements that management will have to analyze while considering TWO of the following factors:
a) Staffing (10marks)
b) Infrastructure (10marks)
c) Proximity of resources. (10marks)

QUESTION 4
Facility layout can give a firm a competitive advantage. A poorly organized facility can delay the flow of materials or information and therefore negatively affect the timely delivery of goods and services to the clients.
Required:
With the aid of well labeled diagrams explain the following layout design for a manufacturing firm:
a) Functional layout (10 marks)
b) The assembly line (10 marks)

QUESTION 5
The service industry has witnessed tremendous growth. Many economies in both the developed and the developing world are becoming more service oriented. This has resulted to production and operation managers paying a lot more attention to the design of the services and the systems that produce and support them.
Required:
a) Discuss five characteristics of a well designed service system. (10 marks)
b) What are the guidelines that should inform the production manager while designing a service? (10 marks)






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