Operation Management

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Operation Management

Answer the following question.

Question.1.2. Ahmet grows domatoes in his 100 by 100 meters garden. He then sells the crop at the local farmer’s market. Twosummers ago, he was able to produce and sell 1200 kgs of tomatoes. Last summer, he tried a new fertilizer thatpromised a 20% increase in yield. He harvested 1350 kgs. Did the fertilizer live up to its promise?(10marks)

Answer:

2.           Productivity = (1200 kgs)/ (100m x 100m) = (1200 kgs)/(10 000m2) = 0.12 kg/m2

              Productivity = (1350 kgs) /(10 000m2) = 0.135 kg/m2

             

Question.2.KleenKarpet cleaned 65 rugs in April, consuming the following resources: Labour: 520 hours at 13 MU/hour Solvent:110 litres at 5 MU/litre Machine Rental: 20 days at 50 MU/day a. What is the labour productivity? b. What is themultifactor productivity?(10marks)

Answer:

1.15 KleenKarpet cleaned 65 rugs in October, consuming the following

resources:

Labor: 520 hours at $13 per hour

Solvent: 100 gallons at $5 per gallon

Machine rental: 20 days at $

Question.3. A firm uses exponential smoothing with a very high value of alpha. What does this indicate with respect to theemphasis if placed on past data.(10marks)

Answer: A time series is a sequence of observations which are ordered in time. Inherent in the collection of data taken over time is some form of random variation. There exist methods for reducing of canceling the effect due to random variation. Widely used techniques are "smoothing". These techniques, when properly applied, reveals more clearly the underlying trends.

Question.4. What is production/operations? (10marks)

Answer: Production and Operations Management ("POM") is about the transformation of production and operational inputs into "outputs" that, when distributed, meet the needs of customers.

Question.5. What factors distinguish between production and service operations? (10marks)

Answer: There are five main differences between service and manufacturing organizations: the tangibility of their output; production on demand or for inventory; customer-specific production; labor-intensive or automated operations; and the need for a physical production location. However, in practice, service and manufacturing organizations share many characteristics. Many manufacturers offer their own service operations and both require skilled people to create a profitable business.

Goods: The key difference between service firms and manufacturers is the tangibility of their output. The output of a service firm, such as consultancy, training or maintenance, for example, is intangible. Manufacturers produce physical goods that

Question.6. What are the major components of a production system? Give two examples. (10marks)

Answer: Production can be explained as an act of either manufacturing or mining or growing of goods (commodities) generally in bulk for trade.

Production is a method employed for making or providing essential goods and services for consumers. It is a process that puts intangible inputs like ideas, creativity, research, knowledge, wisdom, etc. in use or action. It is a way that transforms (convert)

Question.7. Contrast the world class view with the traditional view in quality control. (10marks)

Answer:There are many ways to measure organizational performance other than financial output or profit. Modern measurement focuses on the essential activities, resources and other factors - many less intangible than traditional indictors - that impact on final outputs. These include modern methods such as Balanced Scorecard.

'Quality Tools' refers to tools and techniques used in

Question.8. Advertisement expenses are usually wasteful, with no guarantee of enhanced sales or higher loyalty from among thetarget audience”.Do you agree with this statement ?Present your view – point.(10marks)

Answer:Advertising is a form of communication intended to persuade an audience to purchase products, ideals or services. While advertising can be seen as necessary for economic growth, it is not without social costs. Unsolicited commercial email and other forms of spam have become so prevalent that they are a major nuisance to users of these services, as well as being a financial burden on internet service providers. Advertising increasingly invades

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