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UNIVERSITI INDUSTRI SELANGOR

AUGUST 2009 EXAMINATION
SESSION 1/2009/2010

SUBJECT : INTRODUCTION TO OPERATIONS

MANAGEMENT
SUBJECT CODE : IBS 1113
DURATION : 3 HOURS
FACULTY : INDUSTRIAL INFORMATION TECHNOLOGY
GROUP : BACHELOR DEGREE IN SUPPLY CHAIN
MANAGEMENT (HONS)
LECTURER : MDM NAHDATUL AKMA BINTI AHMAD

INSTRUCTIONS TO CANDIDATES

This answer scheme consists of TWO (2) parts. Part A (20 questions) and Part B (10
questions)

Answer all questions in Part A and choose any eight questions in Part B.

Do Not Open The Question Paper Until Instructed

This Question Paper Consists of Seven (7) Printed Pages

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PART A (20 Marks)

For each of the following statements, answer T for TRUE or F for FALSE.

1. Operations management is the systematic design, direction and control of

processes that transform inputs into services and products for internal, as well
as external, customers.

2. Internal Customers are those who purchase the goods and services.

3. Value chains are an interrelated series of processes that produce a service or

product to the satisfaction of customers.

4. Productivity is the value of outputs (services and products) produced, divided

by the value of input resources (wages, costs of equipment, etc.)

5. Corporate strategy is the means by which operations implements the firm's

corporate strategy and helps to build a customer-driven firm.

6. Operations strategy views the organization as a system of interconnected parts,

each working with the others to achieve desired goals.

7. A global strategy may include buying foreign services or parts and entering or
expanding foreign markets.

8. Delivery speed means quickly filling the customer's order.

9. Low cost means delivering a service or product at the lowest possible cost to
the satisfaction of the customer.

10. Delay-time delivery means meeting the delivery time promises.

11. Process strategy is the pattern of decisions made in managing processes so that
they will achieve their competitive priorities.

12. Customer involvement refers to the ways in which customers become part of
the process and the extent of their participation.

13. Resource flexibility is the ease with which employees and equipment can
handle a wide variety of products, output levels, duties, and functions.

14. A project is an interrelated set of activities with a definite starting and ending
point, which results in a unique outcome for a specific allocation of resources.

15. Process is a systemized, phased approach to defining, organizing, planning,

monitoring, and controlling projects.

16. A collection of projects is called a program, which is an interdependent set of

projects with a common strategic purpose.

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17. An activity is the smallest unit of work effort consuming both the time and
resources that the project manager can schedule and control.

18. A Network Diagram visually displays the interrelated activities using nodes
(circles) and arcs (arrows) that depict the relationships between activities.

19. Prevention costs result from defects that are discovered during the production
of its processes.

20. Five 8 (58) is a methodology for organizing, cleaning, developing and

sustaining a productive work environment.

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PART B (80 Marks)

Answer any EIGHT (8) questions.

Question 1

a) What is Operations Management?

(2 marks)
b) Define Operations Management.
(2 marks)

c) Calculate the year to year labor productivity based on the following Table 1.
Table 1: Yearly ABC Manufacturing Productivity
This Year I Last Year I Year Before Last

2,762,103 2,475,738 2,175,447

112,000 113,000 115,000
49,363 40,831

39,000 33,000

(6 marks)

Question 2

How does a {ean system affect a firm's internal linkages between its core and
supporting processes and its external linkages with its customers and suppliers?

a) Marketing.
(2 marks)
b) Human resources.
(2 marks)
c) Engineering.
(2 marks)
d) Operations.
(2 marks)
e) Accounting.
(2 marks)

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Question3

Identifythe types of layout perfonnance criteria that might be most important in the
followingsettings:

a) Airport
(2 marks)
b) Bank
(2 marks)
c) Classroom
(2 marks)
d) Law firm
(2 marks)
e) Parking lot
(2 marks)

Question 4

You are required to choose a service provider or manufacturer and a functional area,
such as accounting, finance, or marketing.

a) Define a process important to that functional area and then identify a key
performance measure for that process.
(5 marks)

b) How can Statistical Process Control (SPC) be used to manage that process?
(5 marks)

Question 5

a) What is the purpose ofERP system?

(2 marks)

b) Describe the benefits of resource planning for the following service providers.
1. Restaurants
11. Airlines

111. Hospitals
iv. Hotels

(8 marks)

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Question 6

a) List any SIX (6) dominant factors that should be considered when making
decisions on selecting locations for manufacturing.
(6 marks)
b) List four dominant factors that should be considered when making
decisions on selecting locations for services.
(4 marks)

Question 7

Management has decided to establish three Distribution Centers in its supply chain,
located in different regions of the country, to save on transportation costs. For one of
the products, the average weekly demand at each DC will be 50 units. The product is
valued at $650 per unit. Average shipment sizes into each DC will be 350 units per
trip. The average lead time will be two weeks. Each DC will carry one week's supply
as safety stock, since the demand during the lead time sometimes exceeds its average
of 100 units (50 unitslwk x 2 wk). Anticipation inventory should be negligible.

a) How many dollars, on the average of cycle inventory will be held at each
DC?
(3 marks)

b) What is the cost of safety stock in dollars will be held at each DC?
(3 marks)

c) How much inventory, on the average, will be held at each DC?

(2 marks)

d) Which type of inventory is your first choice for reduction?

(2 marks)

Question 8

Data analysis tools are being used to evaluate performance in process analysis. One of
the analysis tools is graph. List five data analysis tools available and describe its
purpose.
(10 marks)

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Question 9

a) Define Project Management.

(2 marks)
b) List examples of project for:
1. Business
11. Manufacturing Company
(4 marks)
c) State TWO (2) main goal for project.
(4 marks)

Question 10

d) List and explain THREE (3) basic patterns of most demanded time series.
(6 marks)

e) Give two criteria that must be considered when choosing the type of
forecasting technique.
(4 marks)

END OF QUESTION PAPER

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