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Summer 2013
Master of Business Administration- MBA Semester 3
Q.1 It is the
job of operations managers to convince the stakeholders that the investment in
plant and equipment is going to enhance the value of the investments already
held by them in the organisation. Explain some of the concepts that can be
considered in analyzing the investment.
(ROI;EBIT; ROA;
cash flow; EVA- 5 X2 marks =10 marks) 10 marks
Answer : Concepts in analyzing the investment :
1. ROI :
Return on
investment (ROI) is the concept of an investment of some resource yielding a
benefit to the investor. A high ROI means the investment gains compare
favorably to investment cost. As a performance measure, it is used to evaluate
the efficiency of an investment or to compare the efficiency of a number of
different investments. In purely economic terms, it is one way of considering
profits in relation to capital invested. In business, the purpose of the
"return on investment" metric is to measure, per period, rates of
return on money invested in an economic entity in order to decide whether or
not to undertake an investment.
Q.2 Explain the
regional factors that affect location decision.
(Location of raw materials; Location of markets;
Labour factors; Climate and taxes - 4 X 2.5 marks= 10 marks) 10
marks
Answer :
Regional factors that affect location decision :
Every firm must
use location planning techniques. There are many options for location planning.
Corporations choose from expanding an existing location, shutting down one
location and moving to another, adding new locations while retaining existing
facilities, or doing nothing. There are a variety of methods used to decide the
best location or alternatives for the corporation. Methods such as identifying
the country, general region, small number of community alternatives, and site
alternatives.
Q.3 Explain the
nine fundamental propositions about organisational effectiveness.
(Explanation of 9 fundamental propositions – 9 marks;
conclusion – 1 mark) 10 marks
Answer :
Fundamental propositions about organisational effectiveness :
1. Organizational effectiveness is always a matter of
comparison.
When determining
the effectiveness of an organization, to what are you comparing the
organization to conclude whether it is effective or not? For example, are you comparing
to a certain set of best practices or to another highly respected organization?
Q.4 Describe
the seven forms of waste. Explain how 5S’s are used to eliminate them.
(Seven forms of waste – 7.5 marks; 5 S – 2.5 marks) 10
marks
Answer : Seven forms of waste :
1) Transportation :
The term
"transportation" is used here to mean handling and moving materials
or people during the production process. Moving materials around does not add
value for the customer and it increases the risk of damage, incorrectly routed
items, lost items, and delays affecting other parts of the production process.
Q.5 Discuss the
Independent demand item techniques.
(Reorder point (or Perpetual) Model – 5 marks;
Periodic review models – 5 marks) 10 marks
Answer : Independent
demand item techniques :
The two classic
systems for managing independent demand inventory are periodic review and
perpetual review systems.
1. Reorder point model :
A perpetual
inventory tracking system is a method of immediately accounting for inventory
sales in the inventory account, if there is no theft or spoilage. It is an
inventory management system where store balances of inventory are recorded
after every transaction. It eliminates the need for the store to close down
constantly for inventory stock-taking as perpetual inventory systems allow for
continuous stock-taking. Perpetual inventory systems keep a running account of
the company's inventory.
Q.6 Explain the
types of failures that occur in operations.
(Design
failures; Facilities failures; Staff failures; Supplier failures - 4 X 2.5
marks = 10 marks)
Answer : Types
of failures that occur in operations :
1. Design failures:
The overall
design of the operation can prove to be the cause of failure. In its design
stage , an operation might look fine on paper, only when it has to cope with
real circumstances . Some design failure occur because a characteristics of
demand was overlooked or miscalculated .A production line might have been
installed in a factory which in practice cannot cope with the demands placed on
it. Other design related failure occur because the circumstances under which
operation has to work are not as expected.
Dear students get fully solved assignments
Send your semester & Specialization name to our
mail id
->
help.mbaassignments@gmail.com
or
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