Engineering management & Entrepreneurship

Solution Manual Mid Term Exam 2018

Q # 01 (a)
Operation Management:
Operations management (OM) is defined as the design, operation, and improvement of the
systems that create and deliver the firm’s primary products and services.
Supply Chain Management:
Supply-chain management is a total system approach to managing the entire flow of
information1, materials, and services from raw-material suppliers through factories and warehouses
to the end customer.
Material Resource Planning
A computer-driven production methodology that manufactures products based on an initial
demand forecast. It tends to result in more inventory of all types than a just-in-time (JIT)
production system.
Master Production Schedule (MPS)
Time-phased plan specifying how many and when the firm plans to build each end item.
…………………………………………………………………………………………………………………
Q # 01 (b)
Core Services
Core services are basic things that customers want from products they purchase
 Speed
 Quality
 Flexibility
 Price
……………………………………………………………………………………………………………...
Q # 01 (c)
Value-added Services
Value-added services differentiate the organization from competitors and build relationships
that bind customers to the firm in a positive way.
Value-Added Service Categories
 Information
 Problem Solving
 Sales support
 Field support
…………………………………………………………………………………………………………….
Q# 2 (a)
Types of Supply Chains
 Efficient
aiming at cost efficiencies involving optimization
 Risk-Hedging
pooling &sharing resources increasing safety stocks
 Responsive
being responsive & flexible mass customization
 Agile
being responsive & flexible and pooling inventories
…………………………………………………………………………………………………………………..
Q # 02 (b)
Reasons to outsource
 Organizationally-driven
 Improvement-driven
 Financially-driven
 Revenue-driven
 Cost-driven
 Employee-driven
………………………………………………………………………………………………………………….
Q # 02 (c)
Mass Customization Principles
Principle 1
Modular design, i.e. independent modules that can be assembled into different forms easily
and inexpensively.
Principle 2
Manufacturing & Service presses should be independent modules easy to move rearrange
Principle 3
Process postponement, designing basic product that can easily be customized.
………………………………………………………………………………………………………………
Q # 04 (a)
Pure Project
A pure project is where a self-contained team works full-time on the project
Pure Project: Advantages
 The project manager has full authority over the project
 Team members report to one boss
 Shortened communication lines
 Team pride, motivation, and commitment are high
Pure Project: Disadvantages
 Duplication of resources
 Organizational goals and policies are ignored
 Lack of technology transfer

Functional Project
A functional project is housed within a functional division

Functional Project: Advantages

 A team member can work on several projects
 Technical expertise is maintained within the functional area
 The functional area is a “home” after the project is completed
Functional Project: Disadvantages
 Aspects of the project that are not directly related to the functional area get short-changed
 Motivation of team members is often weak
 Needs of the client are secondary and are responded to slowly
………………………………………………………………………………………………………………..
Q # 04 (b)

Normal Time (𝑁𝑇1 ) = 180 x 1.10 = 198 sec

Normal Time (𝑁𝑇2 ) = 170 x 1.20 = 204 sec
Normal Time (𝑁𝑇3 ) = 220 x 0.90 = 198sec
Normal Time (𝑁𝑇4 ) = 200 x 1.00 = 200 sec

198+204+198+200
Average Normal Time =
4
800
=
4
= 200 sec
Allowance = 5 %
= 0.05

𝐴𝑣𝑔 𝑁𝑇
Standard Time =
1−𝐴𝑙𝑙𝑜𝑤𝑎𝑛𝑐𝑒
200
=
1−0.05
200
=
0.95

= 210.52 sec