answers of mid term exam. question two: question two: explain the reason(s) for the following: (a)-...

ANSWERS OF MID TERM EXAMANSWERS OF MID TERM EXAM

QUESTION TWO:QUESTION TWO:Explain the reason(s) for the following:

(A)- Low utilization of equipments of fixed position layout(A)- Low utilization of equipments of fixed position layout

THE ANSWER:

• Equipment utilization may be low because the equipment may be left at a location where it will be needed again in a few days rather than moved to another location where it would be productive


(B)-(B)-Variable costs in project process technology are comparatively Variable costs in project process technology are comparatively very high. On the other hand, fixed costs are negligible or even very high. On the other hand, fixed costs are negligible or even nonexistent.nonexistent.

THE ANSWER:

1- Highly skilled personnel are usually required for this 1- Highly skilled personnel are usually required for this type of process, as they often must work type of process, as they often must work independently, with minimal guidance and independently, with minimal guidance and supervision. In addition, workers here need to be well supervision. In addition, workers here need to be well trained in a variety of tasks. (trained in a variety of tasks. (Labor skills and costs Labor skills and costs are generally high)are generally high)

2- Using the same recourses many times2- Using the same recourses many times


(C)- It is always important to distinguish between (C)- It is always important to distinguish between operational efficiency and strategyoperational efficiency and strategy

THE ANSWER: It is important to understand the differences between It is important to understand the differences between operational operational

efficiency and strategy.efficiency and strategy. Operational efficiency is performing operations Operational efficiency is performing operations tasks well, even better than competitorstasks well, even better than competitors. .

• Strategy, on the other hand, is a plan for competing in the marketplace. Strategy, on the other hand, is a plan for competing in the marketplace. An analogy might be that of running a race efficiently, but it may be the An analogy might be that of running a race efficiently, but it may be the wrong race. wrong race.

• Strategy is defining Strategy is defining in what race you will winin what race you will win. Operational . Operational efficiency and strategy must be aligned. otherwise you may efficiency and strategy must be aligned. otherwise you may be very efficiently performing the be very efficiently performing the wrong taskwrong task. . The role of The role of operations strategy is to make sure that all the tasks operations strategy is to make sure that all the tasks performed by the operations function are the performed by the operations function are the right tasksright tasks. .


(D)- Operations management often try to avoid having (D)- Operations management often try to avoid having work-in-process, but sometimes this type of work-in-process, but sometimes this type of inventory will be needed to keep the work centers inventory will be needed to keep the work centers operatingoperating

THE ANSWER:In the job shop system ,one of the disadvantages of this In the job shop system ,one of the disadvantages of this

process is to accept the idea of dealing with WIPprocess is to accept the idea of dealing with WIP

WIP inventories WIP inventories are neededare needed to keep the work to keep the work

centers operating centers operating during equipment during equipment setupssetups, as well as to provide the scheduling , as well as to provide the scheduling flexibility needed to coordinate the variety of products flexibility needed to coordinate the variety of products and job processing times. and job processing times.


(E)- There is a very clear relationship between satisfied (E)- There is a very clear relationship between satisfied workers and satisfied customers, especially in service workers and satisfied customers, especially in service operationsoperations

THE ANSWER:

• ?????

QUESTION THREE:QUESTION THREE:

• Facility layout is one of the main responsibilities of the operations manager. It affects the way of doing business, the efficiency and profitability of the company. There are different types of layout, each has some strengths and weaknesses, and in choosing the suitable type of layout there are many issues to take into account”. Discuss

QUESTION FOUR:QUESTION FOUR:

(A)(A) - Explain the importance of operations management- Explain the importance of operations management

-Operations strategy provides a plan for the operations -Operations strategy provides a plan for the operations function so that it can make the function so that it can make the best use of its resourcesbest use of its resources. .

- Operations strategy - Operations strategy specifies the policies and plansspecifies the policies and plans for using for using the organization’s resources to the organization’s resources to support its long-term support its long-term competitivecompetitive..

- The operations strategy relates the business strategy to The operations strategy relates the business strategy to the operations functionthe operations function

- The role of operations strategy is to make sure that all the - The role of operations strategy is to make sure that all the tasks performed by the operations function are the right tasks performed by the operations function are the right tasks. tasks.


(B)- “Advance in technology in recent years has a (B)- “Advance in technology in recent years has a significant effect on the OM function”. Discusssignificant effect on the OM function”. Discuss

IT Automation Internet- CompetitionProduct life cycleNew jobsRobotsE-???

QUESTION FOUR:

(C)-“In an attempt to survive, many U.S. companies (C)-“In an attempt to survive, many U.S. companies copied Japanese approaches. Merely copying these copied Japanese approaches. Merely copying these approaches often proved unsuccessful”. Why?approaches often proved unsuccessful”. Why?

Why?Why?


(D)- What are the factors that affect the process selection?(D)- What are the factors that affect the process selection?

1. The expected volume and1. The expected volume and demand pattern for the products. pattern for the products. 2. 2. The number of different products to be made by the system and the to be made by the system and the

types of processing each requires.types of processing each requires. 3. 3. The customerThe customer order type, , which defines whether the product iswhich defines whether the product is

made to stock ( (the product's characteristics are set by the the product's characteristics are set by the producer, and the product is normal made in advance of orders), producer, and the product is normal made in advance of orders), oror made to ordermade to order ( (the product is made on receiving customer's the product is made on receiving customer's order, and its characteristics may be specified by the customer). order, and its characteristics may be specified by the customer).

4. 4. TheThe physical characteristics of the products and the specific and the specific technologies require to produce them.technologies require to produce them.


(E)- “Globalization affects OM activities in different ways. (E)- “Globalization affects OM activities in different ways. DiscussDiscuss

-Availability of the production resources (inputs)- -Availability of the production resources (inputs)- cheap resources+ global knowledge + diversity cheap resources+ global knowledge + diversity of cultures+ fierce competition…………………of cultures+ fierce competition…………………

QUESTION FIVE:QUESTION FIVE:

Define the following concepts and terms:Define the following concepts and terms:

(A)- Empowerment • The concept of encouraging and authorizing workers to take

the initiative to improve operations, reduce costs, and improve product quality and customer service.)

• Managers recognize the benefits of providing workers with better working conditions. This includes not only the work environment but also the design of the jobs themselves. Workers are now encouraged to participate in improving operations through suggestions. After all, who would know better how to do a particular operation than that person who does it every day. Managers also have learned that there is a very clear relationship between satisfied workers and satisfied customers, especially in service operations.



(B)- Technology1- A human innovation in action that involves 1- A human innovation in action that involves

the generation of knowledge and processes the generation of knowledge and processes to develop systems that solve problems and to develop systems that solve problems and extend human capabilities.extend human capabilities.

2- The machinery, tools and materials required 2- The machinery, tools and materials required to produce …..to produce …..

3-The knowledge, tools and processes3-The knowledge, tools and processes4- The application of scientific advances to 4- The application of scientific advances to

benefit humanitybenefit humanity



(C)- Work- in -process (in progress) inventory(C)- Work- in -process (in progress) inventory• Work in process (acronym: WIP) or in-process inventory includes the

set at large of unfinished items for products in a production process. These items are not yet completed but either just being fabricated or waiting in a queue for further processing or in a buffer storage. The term is used in production and supply chain management.

• Optimal production management aims to minimize work in process. Work in process requires storage space, represents bound capital not disponible for investment and carries an inherent risk of earlier expiration of shelf life of the products. A queue leading to a production step shows that the step is well buffered for shortage in supplies from preceding steps, but may also indicate insufficient capacity to process the output from these preceding steps.

• Just-in-time (acronym: JIT) production is a concept to reduce work in process with respect to a continuous configuration of product. Just In Sequence (acronym: JIS) is a similar concept with respect to a scheduled variety in sequence of configurations for products.

http://en.wikipedia.org/wiki/Supply_chain_management

http://en.wikipedia.org/wiki/Just_In_Sequence



(D)- Quality- the degree of excellence at an acceptable price and the control - the degree of excellence at an acceptable price and the control

of variability at an acceptable cost.of variability at an acceptable cost.- how well a product fits patterns of consumer preferences.- how well a product fits patterns of consumer preferences.- the totality of features and characteristics of a product that the totality of features and characteristics of a product that

bear on its ability to satisfy stated or implied needs.bear on its ability to satisfy stated or implied needs.- to produce error-free productsto produce error-free products- Fitness for useFitness for use- Fitness to standardsFitness to standards- The totality of features and other characteristics of a The totality of features and other characteristics of a

product or service that bear on its ability to satisfy product or service that bear on its ability to satisfy stated or implied needs.stated or implied needs.



(E)- Operations strategy is:1-1- The means by which operations implements the firm’s The means by which operations implements the firm’s

corporate strategy and helps to build a customer-driven corporate strategy and helps to build a customer-driven firm. It links long-term and short-term operations firm. It links long-term and short-term operations decisions to corporate strategy.decisions to corporate strategy.

2- 2- The plan that specifies the design and use of resources The plan that specifies the design and use of resources to support the business strategy.. The operations to support the business strategy.. The operations strategy must be aligned with the company’s business strategy must be aligned with the company’s business strategy and enable the company to achieve its long-strategy and enable the company to achieve its long-term plan. term plan.

3- 3- A long-range plan for the production of a company’s A long-range plan for the production of a company’s products/services, and provides a road map for the products/services, and provides a road map for the production function in helping to achieve the business production function in helping to achieve the business strategy.strategy.



(F)- Mass production1-Mass production is "a production system characterized by 1-Mass production is "a production system characterized by

mechanization, high wages, low prices, and large-volume mechanization, high wages, low prices, and large-volume output." Usually refers to factory processes on metalwork, not output." Usually refers to factory processes on metalwork, not to textiles or agriculture. to textiles or agriculture.

The term came into use in the 1920s and referred to production The term came into use in the 1920s and referred to production approaches analogous to those of the Ford Motor Company in approaches analogous to those of the Ford Motor Company in the USthe US

2- Creating a high volume of products using an assembly line 2- Creating a high volume of products using an assembly line process in which each operator is responsible for a specific process in which each operator is responsible for a specific step in the process. Mass production reduces the step in the process. Mass production reduces the manufacturing costs of apparel by making many items of the manufacturing costs of apparel by making many items of the same size, style, and fabric. Most same size, style, and fabric. Most ready-to-wear clothing is mass produced.



(G)- Production

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(H)- Business -level strategy- Once top management agrees on corporate -level strategy, they can

turn their attention to the business –level - business –level strategy is the strategy that guides the operations of

a single business, outlining how it will compete.- It Defines the long-range plan to compete in the

marketplace+ Helps to differentiate the firm from competitors)- It answers the question of “how do we compete” Involve:• (A)- How the firm can maintain a competitive advantage?• (B)- How each key functional department (production, human

resources, marketing, and finance) can contribute to the overall effectiveness?

• (C)- How resources should be allocated among these functions?



(E)- Globalizationthe world is becoming smaller, and countries are

becoming more dependent on each other.• The world is rapidly transforming itself into a

single global economy, which referred to as a global village or global landscape.

• Markets once dominated by local or national companies are now vulnerable to competition from literally all corners of the world.



(F)- Batch production1- Batch production processes are used for producing small lots of similar products1- Batch production processes are used for producing small lots of similar products2- Products here are more standardized than job shop technology, but it is not as 2- Products here are more standardized than job shop technology, but it is not as

standardized as assembly line technology. standardized as assembly line technology. 3- Within the wide range of products in the batch facility, several are demanded repeatedly 3- Within the wide range of products in the batch facility, several are demanded repeatedly

and in large volumes. and in large volumes. 4-These few dominant products differentiate batch facilities from job shops.4-These few dominant products differentiate batch facilities from job shops.5- produce a wide variety of products in a wide variety of volumes. 5- produce a wide variety of products in a wide variety of volumes. 6- The products are made in batches with short production runs, and the same sequence of 6- The products are made in batches with short production runs, and the same sequence of

operations is generally followed. operations is generally followed. 7- Such processes usually differ from mass (assembly )production in the materials used, 7- Such processes usually differ from mass (assembly )production in the materials used,

machine setups, and layout. More labor skills are necessary to set up machines and machine setups, and layout. More labor skills are necessary to set up machines and perform a wider variety of tasks during production. These differences increase unit costs. perform a wider variety of tasks during production. These differences increase unit costs.

8- Each batch contains identical items but every batch is different from the others. 8- Each batch contains identical items but every batch is different from the others. 9- A fixed quantity or batch rather than continuous supply is required. A particular operation on 9- A fixed quantity or batch rather than continuous supply is required. A particular operation on

a batch is performed by one group and then it is passed on to other groups for subsequent a batch is performed by one group and then it is passed on to other groups for subsequent operations.operations.

10- Batch production is popular in bakeries and in the manufacture of shoes, pharmaceutical 10- Batch production is popular in bakeries and in the manufacture of shoes, pharmaceutical ingredients, inks, paints and adhesivesingredients, inks, paints and adhesives.

answers of mid term exam. question two: question two: explain the reason(s) for the following: (a)-...

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