Operations Management

Operations Management — Undated

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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Question 1(a) — 10 marks

Explain five characteristics of a service.

Answer

1. Intangibility: a service is mainly an activity or benefit rather than a physical object.
2. Inseparability: production and consumption commonly occur together with customer participation.
3. Variability: performance can differ with the provider, customer and circumstances.
4. Perishability: unused service capacity generally cannot be stored for sale later.
5. Lack of ownership transfer: customers commonly obtain access or a benefit rather than ownership of a tangible item.

Question 1(b) — 10 marks

Highlight five sources of new product ideas.

Answer

1. Customers provide suggestions, complaints and evidence of unmet needs.
2. Employees contribute practical operating knowledge and improvement ideas.
3. Research and development generates new technical possibilities.
4. Suppliers and business partners identify new materials, components and processes.
5. Competitor analysis and wider market or technology trends reveal opportunities for suitable new offerings.

Question 2(a) — 10 marks

Highlight the role of purchasing and supply process in product development and design.

Answer

1. Provides early information on available materials, components and supplier capability.
2. Involves suitable suppliers in improving design feasibility and manufacturability.
3. Supplies price and life-cycle cost information for value analysis.
4. Helps standardise specifications and identify acceptable substitutes.
5. Plans reliable sourcing, delivery and quality arrangements for prototype and commercial production.

Question 2(b) — 10 marks

Explain five factors that should be considered when determining the level of material requirements in production operations.

Answer

1. The production plan and expected output determine gross component demand.
2. Bills of materials and usage rates establish quantities needed per finished unit.
3. Existing usable stock and scheduled receipts reduce additional net requirements.
4. Supplier lead times and production timing determine when orders must be placed.
5. Expected scrap, yield losses and justified safety allowances affect the quantities required.

Question 3(a) — 10 marks

Explain five factors that may influence the choice of the production system to be adopted by an organization.

Answer

1. Required output volume determines the appropriate scale and repetition.
2. Product variety and customisation determine the flexibility needed.
3. Technical characteristics and processing sequence determine feasible methods.
4. Available finance, equipment and workforce skills limit the options.
5. Demand stability, delivery expectations and competitive priorities determine the balance between cost and responsiveness.

Question 3(b) — 10 marks

Outline five differences between Production Planning and Production Control.

Answer

1. Planning defines intended output, while control checks actual output against the plan.
2. Planning sets routes and schedules, while control dispatches and monitors work.
3. Planning estimates resource needs, while control responds to actual shortages and utilisation.
4. Planning establishes standards, while control identifies deviations from them.
5. Planning is mainly anticipatory, while control operates during and after execution and provides feedback for replanning.

Question 4(a) — 10 marks

With the aid of a diagram, describe 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 4(b) — 10 marks

Highlight five differences between the batch production system and the mass production system.

Answer

1. Batch production makes groups of items with changeovers, while mass production uses a repetitive high-volume flow.
2. Batch production supports greater product variety, while mass production favours standardised compatible products.
3. Batch layouts are commonly process-oriented or cellular, while mass production commonly uses product-oriented lines.
4. Batch equipment is usually more general-purpose, while mass production often uses specialised equipment.
5. Batch scheduling and unit costs are generally more variable, while stable mass production can achieve lower unit costs through scale.

Question 5(a) — 12 marks

Explain each of the following types of plant maintenance:

(i) Planned maintenance;

(ii) Corrective maintenance;

(iii) Preventive maintenance;

(iv) Breakdown maintenance;

(v) Running maintenance;

(vi) Shutdown maintenance.

Answer

1. (i) Planned maintenance is organised in advance with scheduled tasks, resources and timing.
2. (ii) Corrective maintenance removes a detected fault and restores required functioning.
3. (iii) Preventive maintenance performs scheduled servicing before expected failure.
4. (iv) Breakdown maintenance repairs equipment after it has failed.
5. (v) Running maintenance carries out suitable checks, lubrication or minor attention while equipment remains in operation.
6. (vi) Shutdown maintenance performs work during an arranged stoppage because the task cannot be completed safely or effectively while the plant runs.

Question 5(b) — 8 marks

There are certain decisions that a maintenance officer of a production firm should make with regard to repairs on a production facility. Explain four such decisions.

Answer

1. Decide whether repair is technically and economically preferable to replacement.
2. Decide the repair’s timing and urgency according to safety, criticality and production needs.
3. Decide whether competent internal staff or an external specialist should perform the work.
4. Decide the approved repair scope, method, parts and budget needed to restore acceptable performance.

Question 6(a) — 12 marks

The following information relates to four destinations, 1 to 4, where shipment of goods produced by a firm are to be made.

Destination	Coordinates (x, y)	Weekly demand (units)
1	(1, 3)	700
2	(3.5, 2)	800
3	(5, 6)	500
4	(3, 4)	600

(i) Using the information provided, draw a map on a cartesian plane and indicate the locations of the destinations.

(ii) Determine the centre of gravity and indicate its location on the map drawn in (i) above.

Answer

x̄ = Σ(xw) ÷ Σw = 7,800 ÷ 2,600 = 3.0000

ȳ = Σ(yw) ÷ Σw = 9,100 ÷ 2,600 = 3.5000

The demand-weighted location is (3.00, 3.50). This is a coordinate-model recommendation; access, feasible land and actual transport costs should also be checked.

Question 6(b) — 8 marks

Explain four reasons that may make it necessary for a firm to redesign its operating layout.

Answer

1. Changed products or processing methods may no longer fit the existing arrangement.
2. Increased volume may create congestion and insufficient capacity.
3. Excess handling, travel and waiting may make the current flow costly.
4. Safety problems or new equipment requirements may demand different space and access arrangements.

Question 7(a) — 10 marks

Explain five measures that may be taken to achieve lean manufacturing in an organisation.

Answer

1. Map the process and remove activities that do not add customer value.
2. Improve quality at source and investigate recurring defects.
3. Reduce setup time and organise smooth demand-based flow.
4. Coordinate suppliers and replenishment to reduce unnecessary inventory.
5. Involve trained employees in regular workplace improvement and standardisation.

Question 7(b) — 10 marks

(i) Explain the term ‘flexible manufacturing’. (2 marks)

(ii) The need for flexibility in manufacturing systems is necessitated by certain variabilities. Explain four such variabilities. (8 marks)

Answer

1. (i) Flexible manufacturing is the ability to change products, quantities or processing routes with limited time and cost penalties, supported by adaptable people, equipment and control systems.
2. (ii) Product-mix variability requires switching between different products or variants.
3. Demand-volume variability requires output to rise or fall economically.
4. Processing-time and resource variability require alternative routing when machines or staff are unavailable.
5. Material and delivery variability require schedules to adapt to changing component availability.