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Production Operations Management Question Paper

Production Operations Management

Course:Bachelor Of Commerce

Institution: Strathmore University question papers

Exam Year:2009

STRATHMORE UNIVERSITY
FACULTY OF COMMERCE
Bachelor of Commerce
END OF SEMESTER EXAMINATION
BCS 3102: PRODUCTION OPERATIONS MANAGEMENT (EC)
DATE: 7th December 2009 TIME: 2 Hours
Instructions: Answer Question ONE and any other TWO questions

QUESTION ONE
(a) X is an item made up two A, and one B. A is made up of three C. B is made up of two
C and five D. 95 units of X are required in week 10, 30 units of C are required in
week 9 and 20 units of B are required in week 7.
Additional information;
Item Stock on hand Lead times(wks)
X 50 2
A 75 3
B 25 1
C 10 2
D 20 2
Required;
Draw the MRP Schedule (8 marks)
(b) Explain three ways in which Computer Aided Design can help in supporting an
organisation’s operations strategy or competitive dimensions (6 marks)
(c) Suppose you want to purchase a new computer that will cost $5,000. It will be used to
process written orders from customers who will pay $25 each for the service. The
cost of labour, electricity and the form used to place the order is $5 per customer.
How many customers will you need to serve to permit the total revenue to breakeven
with the costs? (4 marks)
(d) Distinguish between the following terms as used in POM
i) Product and Process technology layouts (4 marks)
ii) MRP and MRP II (4 marks)
iii) P model and Q model. (4 marks)
(TOTAL 30 MARKS)
2
QUESTION TWO
(a) Product A is an end item and is made from two units of Y and four units of Z. Y is
made of two units of V and two units of W. Z is made of two units of T and two units
of W.
Product A has a lead time of one week. W,Y,Z have lead times of two weeks and V,
and T have lead times of three weeks.
Required:
i) If 100 units of A are required in week 10, develop the MRP planning schedule,
specifying when items are to be ordered and received. There are currently no
units of inventory on hand. (8 marks)
ii) Show the bill of materials(products structure tree) (4 marks)
b) You have been hired as Operations Consultant of Kenyatta National Hospital. Advise
the management on the major decision variables to consider before buying expensive
Magnetic Resonance Imaging (MRI) equipments for use in medical examinations.
(8 marks)
(TOTAL 20 MARKS)

QUESTION THREE
a) Using relevant examples, explain the five phases of new product development.
(10 marks)
b) The keys to the production system are the workers in the system. Explain the
importance of human resource in a production system. (4 marks)
c) Explain how the following production planning strategies may be employed in
an organization and situations that they would be suitable.
i)Chase (3 marks)
ii)Level (3 marks)
(TOTAL 20 MARKS)

QUESTION FOUR
(a) With reference to Kenyan company that you are familiar with, explain the different
costs of quality. (8 marks)
(b) Explain the meaning of six sigma quality and how it applies in practice.(6 marks)
(c) Explain the shingo system of quality with special mention of poka yokes and how
they apply in ensuring quality products. (6 marks)
(TOTAL 20 MARKS)

QUESTION FIVE
a) TENGENEZA TRADING COMPANY produces digital audiotapes to be used in the
consumer audio division. They lack sufficient personnel in their inventory
management section to closely control each item stocked. Here is a sample from their
inventory records:
Item Average monthly
demand
Price per
unit (Sh.)
Item Average monthly
demand
Price per unit
1 700 60.00 5 100 100.00
2 200 40.00 7 3,000 20.00
3 2,000 120.00 8 2,500 10.00
4 1,100 200.00 9 500 100.00
5 4,000 210.00 10 1,000 20.00
Required:
i) Develop an ABC classification for these 10 items. (6 marks)
ii) Comment on the implication of your classification (4marks)
(b) Distinguish between job, batch, assembly line and continuous product flow structures.
(10 marks)
(TOTAL 20 MARKS)

Production Operations Management Question Paper

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