SCHOOL OF SCIENCE AND SPORT PAISLEY CAMPUS SESSION 2014-15 TRIMESTER 2 MODULE CODE: QUAL11001 OPERATIONS AND PROJECT MANAGEMENT Date: 19 May 2015 Time: 14.00 16.00 Answer THREE Questions from Five at least ONE from each Section (A SEPARATE Answer Book should be used for EACH Question) Questions overleaf Page 1 of 9
SECTION A Q1 Explain the contribution to an organisation that the function of operations can make by discussing the following points: (a) (b) (c) the role the operations function can play in achieving strategic success; (8 marks) the broad strategic objectives which any operations might pursue for sustainable business; (5 marks) the main groups of performance objectives operations can focus on and the internal and external benefits, which derive from excelling in each of them. (7 marks) Use examples from cases in the discussions of all three points above. Question 2 continued overleaf. Page 2 of 9
Q2 a) Should performance measurement focus on factors that reflect the operations strategic objectives? Discuss. (10 marks) b) ACME SOLUTIONS is a company offering call centre sales support services. The company is particularly keen to improve the level of service, which it gives to its customers. However, it needs to decide which aspect of its performance to give priority to for allocation of resources. It has devised a list of the most important aspects of its service and assigned scores in relation to importance to customers and performance against competitors. The assigned scores on performance were based on benchmarked information, and most of the importance ratings were estimated from customer surveys. A scale 1-9 was used, where 1=very important and 1=very good performance. These scores are shown in table Q2-1 Table Q2-1 Service quality measurements Importance Performance Staff response to enquiries 1 2 Accuracy of information/product support 2 8 Ability to update details 6 2 Time for call centre to respond 5 6 Prompt advice and response to disputes 4 5 Fast and correct quotation decisions 6 5 Fast response to delivery enquiries 3 4 Product customisation advise 3 7 Plot an importance-performance matrix to analyse the data and discuss how the company could use the results of the analysis to decide which components of the service may be in need of improvement. What factors are likely to influence decisions on improvements? (10 marks) Page 3 of 9 Section B/Q3 continued overleaf
SECTION B Q3 a) Quantitative methods such as time series analysis are generally used for forecasting demand for existing products and services. However, when new products or services are to be introduced, qualitative methods are generally used to forecast demand. Describe some of the main types of Qualitative forecasting methods. b) Paisley Garden Design is a local company that offers a range of gardening related services such as grass cutting, hedge trimming and tree pruning. The company uses time series analysis to try to forecast future sales. Monthly sales for the last four years (in 00 s) are shown in the table below: Year Jan Feb Mar Apr May Jun 2011 325 321 454 447 486 475 521 545 541 452 476 371 2012 268 276 412 463 519 472 486 506 473 398 433 340 2013 263 245 394 414 500 447 444 479 471 373 403 315 2014 320 209 393 399 450 409 419 435 434 354 389 302 Jul Aug Sep Oct Nov Dec A line plot of these data is given in the following graph: Page 4 of 9 Question 3 continued overleaf
(i) A time series is usually said to consist of four components. What are those components? Indicate whether each of them is present in the above graph or not. (3 marks) (ii) Using an appropriate method, produce a set of smoothed data for the first six months of year 2011. You should explain your choice of method and parameter. (5 marks) The company has recently been using double exponential smoothing as a forecasting technique. They chose the value of 0.2 for both smoothing parameters. The following set of data was collected for the first ten months of 2014. Month Sales Smoothed Trend Forecast Error Jan 320 312.0 10.4 310-10 Feb 209 299.7 5.9 322.4 113.4 Mar 393 323.1 9.4 305.6-87.4 April 399 345.7 12.0 332.42-66.6 May 450 376.2 15.7 357.8-92.2 Jun 409 395.3 16.4 391.9-17.1 July 419 413.2 16.7 411.7-7.3 Aug 435 430.9 16.9 429.9-5.1 Sep 434 445.0 16.3 447.8 13.8 Oct 354 439.9 12.0 461.4 107.4 Nov 389 Dec 302 (iii) Calculate the values for the last two months of 2014. You should include both the answers and your working in the answer book. (iv) The company is not convinced that double exponential smoothing is the most suitable forecasting technique. Using an appropriate method (or methods) of analysis you should decide whether the company has chosen a suitable forecasting technique or not. Question 4 continued overleaf Page 5 of 9
Q4 a) Describe the purpose of the closed loop aspect of a planning and control system, such as MRP II. (2 marks) b) The Panadonic Company produces a range of Smart Televisions, of which the Galaxy ZX is its most popular model. The following information about forecasts and customer orders is currently available: Item: Galaxy ZX MPS Quantity: 100 Current Inventory: 50 Week 1 2 3 4 5 6 7 8 9 10 Forecast 25 30 40 50 30 25 20 40 20 30 Customer orders (booked) 29 25 18 9 0 0 0 0 0 0 Develop a prospective Master Production Schedule for the ten-week period including available-to-promise quantities. (Use the attached sheet.) c) Companies are often keen to accept new orders even when the available-to-promise quantities indicate that there will be no stock available. Describe how planning fences can also be used to determine whether new orders should be accepted or not. (3 marks) d) The output from the Master Production Schedule is one of the inputs into the material requirements planning system (mrp). What are the other inputs to, and what are the main outputs from the mrp?(3 marks) e) Just-in-time (JIT) principles and practices have played a major part in the global drive towards lean manufacturing and logistics. These days, products are produced and distributed with very short lead times, and with low inventory levels. The success of JIT has lead to increasing interest in those same principles and practices from a range of service industries. Even sectors such as the health service have been experimenting with ideas of Lean and JIT. For example, a number of large, general hospitals claim to have successfully introduced certain lean practices. By reconsidering the original principles of JIT, discuss whether you believe JIT practices are relevant to health service operations? Your answer should refer to examples which highlight both the advantages and disadvantages of JIT. (8 marks) Question 5 continued overleaf Page 6 of 9
Q5 a) Project management applies to a wide range of different projects: from weddings to major building construction, from decorating the spare bedroom to hosting the Olympic Games. However, despite this diversity, there are a few elements which all projects have in common. What are they? b) A Scottish university has decided to organise and host a sports and cultural event. The main aim of the event is to promote interaction between students and the local community. The event will include a number of cultural activities as well as different sports, such as athletics and 5-aside football. A project manager has been appointed, and he has outlined the main activities that would have to be undertaken. These activities, their precedence relationships, and their expected durations are shown in the table below. Activity Description Immediate Predecessor Time (weeks) A Plan main event themes - 3 B Select specific cultural and A 2 sports events C Research possible - 3 locations D Choose locations C 1 E Confirm location and dates B,D 1 with participants F Plan social and catering E 2 arrangements G Distribute marketing B,D 4 material and promote event H Process participant G 4 applications I Make final arrangements F,H 3 (i) (ii) Two important elements of any project are the levels of complexity and uncertainty. Where do you think complexity and uncertainty might occur in this project? (2 marks) Draw a representation of this project. You may use either Activity-on- Arrow (AoA) or Activity-on-Node (AoN) diagrams. (2 marks) Question 5 continued overleaf Page 7 of 9
(iii) For each activity, calculate the earliest and latest, start and finish times. From these time, you should also identify the critical path of the project and its duration time. (5 marks) (iv) The activities on the critical path need to start as soon as possible. Initially, there is some flexibility as to when non-critical activities may start. That flexibility may be very useful when the project resources, such as manpower are considered. Explain why. (v) Many authors have proposed lists of key factors, steps or rules that contribute towards successful project management. Describe the three factors that you would consider to be most important in this case. (3 marks) END OF EXAMINATION PAPER Continued overleaf MPS Table for Q4(b) Page 8 of 9
Please detach and submit this page with your exam script Banner Number: Q4(b) - MPS Table Item: Current Inventory: MPS Quantity: 1 2 3 4 5 6 7 8 9 10 Forecast Customer orders (booked) Projected onhand inventory MPS quantity Available-topromise (ATP) inventory Item: Current Inventory: MPS Quantity: 1 2 3 4 5 6 7 8 9 10 Forecast Customer orders (booked) Projected onhand inventory MPS quantity Available-topromise (ATP) inventory END OF PAPER Page 9 of 9