Fundamentals of Operations Mangement Questions with Answer – 2023 Fall (BBA/BI/TT/BCIS)

Fundamentals of Operations Mangement Questions with Answer – 2023 Fall (BBA/BI/TT/BCIS)

Section A: Very short answer questions

1. Define agile strategy in operation.
Answer: Agile strategy is about being flexible and quick to respond to changes in customer demands. It focuses on teamwork, adaptability, and improving processes continuously.

2. Thapa Mental Workshop produces cast bronze values on a 4 person assembly line. On a recent day 40 values were produced during 8-hour shift. Calculate labor productivity of the line.
Answer: Labor productivity for Thapa Metal Workshop
Productivity = Total output ÷ (Workers × Hours).
= 40 ÷ (4 × 8) = 1.25 valves per worker-hour.

3. What is lean system in operation?
Answer: A lean system reduces waste and improves efficiency. It focuses on using resources smartly to deliver more value to customers.

4. Define the inventory decoupling concept in operation.
Answer: It means keeping extra stock between production stages to avoid delays. This helps each stage work smoothly even if one part is slow.

5. Differentiate between forward and backward scheduling.
Answer: Backward scheduling plans from the deadline backward to start tasks on time. Forward scheduling starts from the beginning and works forward to find when tasks will finish.

6. What is bullship effect in supply chain management?
Answer: It happens when small changes in demand cause bigger changes in orders up the supply chain. Better communication and planning can reduce this.

7. What is OC (Operation Characteristics) curve?
Answer: The OC curve shows how likely it is to accept a batch based on its quality. It helps in deciding if products meet standards.

8. Define the concept of design capacity.
Answer: It’s the maximum work a system can do under perfect conditions. Real output is usually less because of delays or problems.

9. List out the major criteria for vendor Evaluation.
Answer : The major criteria for vendor Evaluation are Look for good quality, reasonable price, timely delivery, and good customer service when choosing a vendor.

10. Distinguish between computer Aid design and computer aid manufacturing.
Answer: CAD helps in designing products on a computer. CAM helps in making products using machines controlled by computers.

Section B: Descriptive Answer Questions

11. Define the operation management. Explain the major trends in operation management in Nepal.

12. What do you mean by process strategies? Briefly explain product process matrix.

13. The following data give the weight of the metal rods. Six observations were done on a random basis from the five samples.

a. Construct control charts of mean and range for these given data.
b. Comment on your result with suitable suggestions.

14. What do you mean by safety stocks? ABC Company has an annual demand of 600 units, where the ordering cost per order is $20. The carrying cost is supposed to be 30% of unit price. However, the supplier is giving an offer in unit price if the quantity ordered is on a different scale. The detail of offer is:

Determine the optimal order quantity.

15. An organization has 5 jobs on order, as shown in the following table

Assume that all jobs arrive on day 375. In what sequence would the jobs be ranked according to the following decision rule?
a. EDD
b. LPT
c. Critical ratio
d. Which is best and why?

16. What do you understand by supply chain chain Management? Explain different types of supply chain strategies.

17. Eliminating waste is a vital part of JIT. Identity some sources of waste in operation and suggest the methods to overcome it.

Section C: Case Analysis

18. Read the case situation given below and answer the questions that follow:

In the heart of the serene city of Pokhara, Nepal, Karmacharya Food Grains plays a pivotal role in the local supply chain, acting as a bridge between farmers and consumers. Specializing in the distribution of essential food commodities, the company faces an array of challenges in its current supply chain strategy. The demand for food grains in the region has witnessed a steady rise, necessitating a strategic overhaul to ensure seamless operations and meet the increasing customer expectations.

Karmacharya Food Grains primarily sources its food grains from local farmers in the Pokhara region, forming a supply chain network that involves farmers, transportation providers, and retailers. However, the current operational landscape is rife with challenges that impede the company’s ability to meet escalating demands consistently.

One of the critical issues plaguing the company’s supply chain is transportation bottlenecks. The movement of food grains from farms to the distribution center encounters delays, leading to increased costs and a ripple effect on the overall operation. The inefficiencies in transportation not only impact the bottom line but also jeopardize the company’s ability to provide timely and reliable services to its customers. Another challenging aspect of the supply chain is the mismanagement of inventory. Striking the right balance between overstocking and stock-outs has proven elusive.

The consequences are significant: overstocking ties up capital and risks product spoilage, while stock-outs result in dissatisfied customers and lost opportunities. The company is grappling with the need to devise a more effective inventory management system that aligns with the dynamic demands of the market. Building and maintaining robust relationships with local farmers are pivotal for the company’s success. However, the current dynamics reveal potential issues in this area. Ensuring a consistent and high-quality supply from farmers is imperative, and any disruptions in these relationships can cascade down the supply chain, affecting the company’s ability to meet customer expectations.

In an era dominated by technological advancements, Karmacharya Food Grains has room for improvement in technology integration within its supply chain. The limited utilization of modern tools inhibits real-time tracking, forecasting accuracy, and overall visibility into the supply chain. The lack of technology adoption may hinder the company’s ability to respond swiftly to market changes and optimize its operations efficiently.

Recognizing these challenges, Karmacharya Food Grains proposes a comprehensive supply chain strategy to enhance its resilience and efficiency in meeting customer demands, Karmacharya Food Grains proposes the implementation of an Enterprise Resource Planning (ERP) system. An ERP system integrates various business processes, providing real-time data and facilitating efficient communication across different departments. This would enable Karmacharya Food Grains to optimize inventory levels, reduce carrying costs, and enhance overall supply chain visibility.

Addressing transportation bottlenecks involves the creation of collaborative transportation networks with local providers. By fostering partnerships with reliable transportation companies, the company aims to optimize routes, reduce transit times, and lower transportation costs. Collaborative efforts in transportation can lead to a more efficient and responsive supply chain, mitigating delays and enhancing customer satisfaction. Recognizing the significance of strong relationships with local farmers, Karmacharya Food Grains plans to implement initiatives to strengthen ties with its suppliers.

Collaborative programs, training sessions, and providing resources to farmers can contribute to improved productivity, ensuring a consistent and high-quality supply. By aligning interests and fostering a sense of partnership, the company aims to create a more resilient and reliable supplier network. Embracing data-driven decision-making is essential for optimizing inventory levels and meeting customer demands. The company proposes the adoption of advanced analytics to forecast demand accurately, identify trends, and make informed decisions. By leveraging data analytics, Karmacharya Food Grains can enhance its ability to respond swiftly to market changes, optimize inventory levels, and improve overall supply chain performance.

Questions:

a. How can the implementation of an ERP system contribute to Karmacharya Food Grains’ supply chain efficiency?
b. Discuss the importance of collaborative transportation networks in addressing transportation bottlenecks for Karmacharya Food Grains.
c. Evaluate the potential impact of strengthening relationships with local farmers on Karmacharya Food Grains’ supply chain resilience and product quality.
d. Explain the role of data-driven decision-making in optimizing inventory levels and meeting customer demands.