Operations Management

Operations Management — 2021

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.

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July 2021

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

Question 1(a) — 10 marks

Highlight five new trends in manufacturing layouts.

Answer

1. Cellular layouts group related operations for families of products.
2. Flexible layouts use adaptable equipment and movable workstations.
3. Automated handling and connected machines improve material flow and visibility.
4. Lean layouts shorten travel, reduce buffers and bring sequential activities closer together.
5. Greater attention to ergonomics, safety and environmental performance improves the workplace and resource use.

Question 1(b) — 10 marks

Explain five areas to be covered in the maintenance programme of a factory building.

Answer

1. Inspect and repair structural elements, including roofs, walls, floors and foundations.
2. Maintain electrical installations, lighting and protective systems.
3. Maintain plumbing, drainage and water-supply systems.
4. Service ventilation, heating, cooling and related building equipment.
5. Maintain access routes, fire protection, doors and general safety and housekeeping facilities.

Question 2(a) — 10 marks

Explain five key elements of Just In Time (JIT) purchasing as a component of lean manufacturing.

Answer

1. Frequent small deliveries match actual production requirements.
2. Reliable suppliers consistently meet short agreed delivery schedules.
3. High quality at source reduces the need for large protective stocks and repeated inspection.
4. Close long-term supplier cooperation supports shared forecasts and process improvement.
5. Simple ordering and communication systems reduce transaction effort and replenish according to use.

Question 2(b) — 10 marks

Outline five reasons for equipment maintenance in a manufacturing firm.

Answer

1. Reduces unplanned breakdowns and lost production time.
2. Maintains equipment accuracy and product quality.
3. Protects employees and users by keeping plant in safe working condition.
4. Extends useful asset life and protects the value of the investment.
5. Controls operating costs through efficient running and timely repair before major damage occurs.

Question 3(a) — 10 marks

Feedback report is essential in the transformation process in manufacturing operations. Highlight the contents of such a report.

Answer

1. Actual output and completion times compared with the production plan.
2. Quality results, defects, rejects and rework against required standards.
3. Resource use, operating costs and material yields against targets.
4. Downtime, bottlenecks, safety incidents and other significant deviations.
5. Analysis of causes, recommended corrective actions and responsible follow-up officers.

Question 3(b) — 10 marks

Explain the following techniques as used in product design:

(i) Robust design;

(ii) Modular design;

(iii) Computer-aided design (CAD);

(iv) Virtual reality technology;

(v) Value analysis.

Answer

1. (i) Robust design makes product performance less sensitive to normal variations in use, materials or operating conditions.
2. (ii) Modular design builds products from interchangeable modules that can form several variants.
3. (iii) Computer-aided design uses computer tools to create, modify, analyse and document designs.
4. (iv) Virtual reality technology allows users or designers to explore an interactive simulated product or environment before physical manufacture.
5. (v) Value analysis examines required functions and their costs to remove unnecessary cost while preserving required performance.

Question 4(a) — 10 marks

(i) Explain the meaning of, effective capacity, in relation to production facilities. (2 marks)

(ii) A manufacturing firm has a plant for processing product X₁. Last week, the plant produced 140,000 units of product X₁. The effective capacity is 200,000 units. The production line operates 6 days a week, with four, 8-hour shifts per day. The plant was designed to process the product at the rate of 1,400 units per hour.

Determine the:

(I) design capacity; (3 marks)

(II) utilization; (2 marks)

(III) efficiency. (3 marks)

Answer

(i) Effective capacity is the expected attainable output after normal allowances for maintenance, changeovers, breaks and other operating constraints.

(ii) Use the schedule exactly as supplied for the examination calculation:

The supplied schedule implies 32 shift-hours per day. That is inconsistent with a single sequential 24-hour production line. The values above follow the printed figures; the schedule would need clarification for an actual operational plan.

Question 4(b) — 10 marks

(i) Define the term, standardization, as used in manufacturing process. (2 marks)

(ii) Highlight four differences between standardized goods and non-standardized goods, with regard to process designs. (8 marks)

Answer

(i) Standardization is the establishment and use of agreed uniform specifications, components or methods to achieve consistent output and interchangeability.

(ii)

Question 5(a) — 10 marks

(i) Explain the meaning of mass customization production design. (2 marks)

(ii) Explain four steps that a manufacturing firm should take for mass customization to be effective. (8 marks)

Answer

1. (i) Mass customization combines the cost efficiency of high-volume production with choices tailored to individual customer requirements.
2. (ii) Identify the customer options that create real value rather than unlimited unnecessary variety.
3. Design modular products and standard common components that can form the required variants.
4. Provide flexible processes, quick changeovers and appropriately trained employees.
5. Integrate customer orders, supplier information and postponement of final configuration to respond quickly without excessive finished stock.

Question 5(b) — 10 marks

When analyzing and designing production systems, the designer should ask and work around some questions. Identify five such questions.

Answer

1. What products, services and performance requirements must the system deliver?
2. How much output and product variety will be required, and how variable is demand?
3. Which processes, technology and equipment can achieve those requirements economically?
4. Where should operations be located and how should work, people and materials flow?
5. What people, supplies, capacity and control arrangements will sustain quality, delivery and cost targets?

Question 6(a) — 12 marks

Using a diagram, explain the transformation process, in operations management.

Answer

1. Inputs such as materials, labour, equipment, finance and information enter the operating system.
2. Activities transform the form, location, possession, condition or usefulness of those inputs.
3. Outputs are the goods and services provided to users or customers.
4. Value is added when the output meets customer needs better than the untransformed inputs.
5. Feedback measures quality, cost, delivery and satisfaction so managers can correct the process.
6. The external environment influences demand, resources and constraints on the operating system.

Question 6(b) — 8 marks

Explain the term, Quality Function Deployment (QFD), under the following headings:

(i) Meaning of QFD; (1 mark)

(ii) Name of the person who coined the phrase, Quality Function Deployment; (1 mark)

(iii) Purpose of QFD; (1 mark)

(iv) A simple diagram depicting QFD. (5 marks)

Answer

1. (i) QFD is a structured approach that translates customer needs into appropriate technical and operating requirements throughout development.
2. (ii) Dr Yoji Akao is associated with the development of QFD, together with Shigeru Mizuno.
3. (iii) Its purpose is to ensure that measurable design and production decisions reflect the voice of the customer.
4. (iv) The House of Quality below shows customer needs linked to technical requirements through a relationship matrix, with correlations, priorities and targets.

Question 7(a) — 8 marks

Explain the concept of benchmarking under the following headings:

(i) Meaning of benchmarking; (2 marks)

(ii) Meaning of: (I) internal benchmarking; (II) external benchmarking. (2 marks)

(iii) Benefits of benchmarking to a manufacturing firm. (2 marks)

(iv) Disadvantages of benchmarking. (2 marks)

Answer

1. (i) Benchmarking systematically compares processes or performance with a suitable reference to identify improvements.
2. (ii)(I) Internal benchmarking compares units or activities within the same organisation; (II) external benchmarking compares with relevant organisations outside it.
3. (iii) It reveals performance gaps and useful practices, helping set evidence-based improvement priorities.
4. (iv) It can be costly and misleading when data or operating contexts are not genuinely comparable.

Question 7(b) — 12 marks

Describe the procedure for factor rating as a tool for analysing location of operation units.

Answer

1. Identify feasible candidate locations and the important location-selection factors.
2. Assign a weight to each factor according to its relative importance.
3. Define a consistent rating scale and gather evidence for each site.
4. Rate every candidate site on each factor using that scale.
5. Multiply each rating by its factor weight and sum the weighted scores for each site.
6. Compare totals, test sensitive assumptions and select the best-supported feasible site after checking critical constraints.