Quiz March-2012

Course Code: MBA 646 Date of Quiz: 17/03/2012 Location of Quiz: B212 Number of Students: 25 Course Name: OPER MGT Time of Quiz: 11:30 1:00 Instructor: Dr. Boaz Nandwa Number of Pages: 6

NAME OF STUDENT:_____________________________D #:_________________________ INSTRUCTIONS READ CAREFULLY Attempt All Questions. Write your answer on this booklet. Examination is closed book. Standard calculators are allowed. Programmable calculators with graphing capabilities are not allowed. No mobile phones, books, or other communication devices are permitted in the examination room. Use of unauthorized material and attempts to cheat or plagiarize will automatically result in a grade of zero for this examination and appropriate disciplinary measures. BREAKDOWN OF GRADE Section A Section B Total/35

Quiz, March 2012

Section A: MCQ (10 POINTS) 1. Operations management is applicable a. mostly to the service sector b. to services exclusively c. mostly to the manufacturing sector d. to all firms, whether manufacturing and service e. to the manufacturing sector exclusively D All of the following decisions fall within the scope of operations management except for a. financial analysis b. design of goods and processes c. location of facilities d. managing quality e. All of the above fall within the scope of operations management. A Reasons to study Operations Management include a. studying why people organize themselves for free enterprise b. knowing how goods and services are consumed c. understanding what human resource managers do d. learning about a costly part of the enterprise e. all of the above D The Ten Critical Decisions of Operations Management does NOT include a. Layout strategy b. financial analysis c. Process and capacity design d. Managing quality e. all of the above B Which of the following is not an element of the management process? a. controlling b. leading c. planning d. pricing e. staffing D Typical differences between goods and services do not include a. cost per unit b. ability to inventory items c. timing of production and consumption d. customer interaction e. knowledge content A

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Which of the following services is least likely to be unique, i.e., customized to a particular individual's needs? a. dental care b. hairdressing c. legal services d. education e. computer consulting D Which of the following is not a current trend in operations management? a. just-in-time performance b. global focus c. supply chain partnering d. mass customization e. All of the above are current trends. E Productivity can be improved by a. increasing inputs while holding outputs steady b. decreasing outputs while holding inputs steady c. increasing inputs and outputs in the same proportion d. decreasing inputs while holding outputs steady e. none of the above D Productivity tends to be more difficult to improve in the service sector because the work is a. often difficult to automate b. typically labor-intensive c. frequently processed individually d. often an intellectual task performed by professionals e. all of the above E

SECTION B: PROBLEM SOLVING 1. Rafik Manufacturing Company has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's. The following data are available: Output (sales) Labor Hours Energy Capital Last Year $10,500 12,000 $7,600 $83,000 This Year $12,100 13,200 $8,250 $88,000

Based on the above information (a) Compute this years partial productivity and determine which input has highest contribution to its productivity (5 points)

(b) Determine the change in total factor productivity of Rafiki between last year and this year (5 points)

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Al Khaleej, Inc. is trying to decide whether to make-or- purchase 100,000 products that it plans to sell in the UAE in the near future. Purchasing the products would cost them $1.50 each. If they design and produce the products themselves, it will result in a per unit cost of $0.75. In addition, it will cost them $50,000 to design the product. Further, they realize that making this type of product, there is a 70% chance of success with no additional cost. However, there is also a 30% chance of failure and that the product will need to be redesigned at an additional cost of $50,000. Using decision trees analysis, determine what option Al Khaleej should choose (10 points).

Success .70

100,000($0.75) + $50,000 = $125,000

Make
EMV = .70($125,000) + .30($175,000) = $140,000

Failure, redesign .30

100,000($0.75) + $100,000 = $175,000

EMV = $150,000

Buy
100,000($1.50) = $150,000

Al Hashemi Contractor have won a contract from the Abu Dhabi Municipality to build new street roads in the Masafa area in order to ease congestion there. They have presented you with the following activities for the whole project

Activity A B C D E F G H I J K

Preceding -A A A B B C, F D H G, I E, J

Time (weeks) 9 2 12 5 6 8 3 2 8 6 2

(a). Draw the network diagram (5 points) (b) Which activities form the critical path? (3 points) (c) What is the duration of the critical path? (2 points) (a) Network diagram
B E K C F A D H I G J

(b) paths A-D-H-I-J-K and A-C-G-J-K are critical; (c) A has no slack; F has 2 units (d) 32