Operations Management — 2022

KNEC Diploma in Supply Chain Management, Module III. Original examination questions with explained answers for revision. Answers are independently prepared for study and are not an official KNEC marking scheme.

November 2022

Paper codes: 2903/302; 2922/302; 3304
Time: Not shown in supplied scan
Instructions: Cover instructions not included in supplied scan.

Question 1(a) — 8 marks

Outline four characteristics of project processes.

Answer

  1. They produce a unique or highly customised output.
  2. They have a defined beginning and completion point.
  3. Resources and activities are coordinated around a specific objective.
  4. Work often remains at a fixed site while people, equipment and materials are brought to it.

Question 1(b) — 12 marks

Explain six factors that may lead to failure of new product development.

Answer

  1. Weak market research may leave the product without sufficient customer demand.
  2. Poor design or quality may make the product unreliable or unsuitable.
  3. Development and production costs may make the selling price uncompetitive.
  4. Delays may allow competitors or changing technology to overtake the opportunity.
  5. Inadequate coordination between design, purchasing, production and marketing can cause execution failures.
  6. Weak launch, distribution or after-sales support can prevent customers adopting the product.

Question 2(a) — 8 marks

Highlight four differences between production planning and production control.

Answer

  1. Planning decides intended output and methods before work, while control checks and directs actual execution.
  2. Planning sets schedules and resource requirements, while control tracks actual progress and resource use.
  3. Planning establishes standards and targets, while control compares results with those standards.
  4. Planning prepares the intended course of action, while control corrects deviations and supplies feedback for replanning.

Question 2(b) — 12 marks

Explain six potential areas of manufacturing waste that lean manufacturing should address.

Answer

  1. Overproduction creates items before they are needed and ties up resources.
  2. Waiting leaves people or equipment idle between productive activities.
  3. Unnecessary transportation moves materials without adding customer value.
  4. Excess processing performs work beyond what the customer or specification requires.
  5. Excess inventory consumes space and finance and can become obsolete.
  6. Defects require scrap, correction, reinspection or replacement.

Question 3(a) — 12 marks

Outline six instances when product layout system may be suitable for a manufacturing firm.

Answer

  1. The product design is stable and sufficiently standardised.
  2. Demand is high enough to support a dedicated production line.
  3. The processing sequence is repetitive and predictable.
  4. Product variety is low or compatible with a common line.
  5. Individual operations can be balanced to maintain a smooth flow.
  6. Reliable equipment and materials can support continuous sequential production.

Question 3(b) — 8 marks

Flexible Manufacturing Systems (FMS) enables reduction in work-in-progress by automatically scheduling the production operations to suit component availability and demand. Highlight the bases of constraints to this system.

Answer

  1. Machine capability and available processing time constrain which jobs can be completed.
  2. Tooling and fixture availability constrain the parts and operations that can be scheduled.
  3. Material-handling routes, pallets and buffer capacity constrain movement and work in progress.
  4. Part availability, demand priorities and control-system information constrain the feasible production sequence.

Question 4(a) — 12 marks

Explain six benefits that may accrue to an organization by implementing a properly planned flow production method.

Answer

  1. High repetitive output reduces average unit production cost.
  2. Sequential movement reduces unnecessary handling and travel.
  3. Balanced operations reduce waiting and support shorter throughput times.
  4. Standard methods improve consistency and ease of quality monitoring.
  5. Specialised equipment and labour increase processing efficiency.
  6. Predictable output supports reliable delivery and replenishment planning.

Question 4(b) — 8 marks

Spare parts for plant maintenance are stored in order to reduce the loss of production time due to machine breakdowns. Outline four factors to consider when deciding on what spare parts and how much to keep.

Answer

  1. Criticality and the cost of downtime determine the consequence of not having the part.
  2. Failure rate and historical usage indicate expected replacement demand.
  3. Supplier lead time and availability determine how quickly stock can be replenished.
  4. Purchase, storage and obsolescence costs determine the economics of holding the part.

Question 5(a) — 10 marks

The internet and information technology has brought changes in the delivery of services. Outline five such changes.

Answer

  1. Customers can access many services remotely through websites or mobile applications.
  2. Self-service systems allow booking, payment and routine requests without direct staff contact.
  3. Digital communication supports faster enquiries, updates and complaint handling.
  4. Integrated records allow more personalised and coordinated service.
  5. Online platforms extend service availability across locations and beyond traditional office hours.

Question 5(b) — 10 marks

Market research feasibility studies enables a business to acquire insights into her market and assess if there is a strong demand for a new product venture. Explain five elements of such feasibility studies.

Answer

  1. Customer analysis identifies target users, their needs and buying behaviour.
  2. Demand analysis estimates market size, growth and likely sales volume.
  3. Competition analysis examines existing alternatives and competitors’ strengths.
  4. Pricing and affordability analysis tests customers’ willingness to pay against expected costs.
  5. Distribution and promotion analysis assesses how the product can reach and attract the target customers.

Question 6(a) — 10 marks

Outline five reasons why a firm would carry out shop floor inspection in its production process.

Answer

  1. Detect defects before further processing adds more cost.
  2. Check compliance with technical specifications and working procedures.
  3. Identify equipment or process conditions causing quality variation.
  4. Confirm that safety and housekeeping requirements are being followed.
  5. Provide feedback for corrective action and continuous improvement.

Question 6(b) — 10 marks

Explain five ways in which challenges in maintenance operations may be solved.

Answer

  1. Introduce preventive and condition-based schedules suited to equipment criticality.
  2. Train maintenance staff and provide current manuals and diagnostic tools.
  3. Maintain justified stocks of critical spare parts and reliable supplier arrangements.
  4. Coordinate maintenance windows with production to reduce avoidable interruptions.
  5. Keep accurate failure and cost records and use root-cause analysis to prevent repeated breakdowns.

Question 7(a) — 8 marks

Outline four positive effects of adopting an appropriate plant layout on the manufacturing costs of a firm.

Answer

  1. Shorter material routes reduce transport and handling costs.
  2. Better flow reduces waiting, work in progress and related carrying costs.
  3. Improved use of floor space reduces unnecessary building and storage costs.
  4. Safer, clearer work areas reduce damage, accidents and avoidable operating losses.

Question 7(b) — 12 marks

Computer aided manufacturing is now a central element in many production systems. Explain six advantages of this manufacturing system.

Answer

  1. Automated instructions improve repeatability and dimensional accuracy.
  2. Faster controlled processing can increase output per machine hour.
  3. Reduced manual intervention can lower direct labour requirements for repetitive tasks.
  4. Programme changes can support more flexible production of compatible designs.
  5. Integration with design and planning reduces transcription errors and preparation time.
  6. Process monitoring can improve material use and reduce scrap and rework.
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