Question 1

Below are descriptions of 5 organisations in the manufacturing industry. Each organisation creates a different product in a different way. For each organisation, select the prioritisation method for processing orders from customers and the pattern of workflow used.

Organisation 1: This company makes their product only after receiving orders from customers. All items produced are identical which means that items can be produced very quickly and effectively. Orders are prioritised based on the necessary lead-time specified by the customer.

Organisation 2: This organisation produces products which can be customised – customers simply specify the dimensions and materials required when placing their order online. In order to produce these, the organisation groups the product by characteristics when deciding which orders to complete first.

Organisation 3: This organisation looks at the length of time the order will take to make, and prioritises those that will take the most amount of time. Each product created is unique so processing time varies greatly.

Organisation 4: This organisation creates the same item in small amounts each year. Orders are processed on the day they are received and shipped out the next day.

Organisation 5: This organisation has low order numbers but is continuing to create products in a hope that sales will increase soon. Different members of the team produce different items.

Complete the table below by listing prioritisation method and pattern of workflow. Some answers may not be used: earliest due date, shortest processing time, longest processing time, similar process, HR skill requirement, first in-first out, make to order, make to stock, engineer to order, configure to order, continuous production, batch production.

Which of the following will you put into box 6?

2023-01-06-21-15-34-7274f23792f77ae518b27f8b4a9759e1

Options :

A : make to order

B : make to stock

C : engineer to order

D : configure to order

E : continuous production

F : batch production

Answer: A

Question 2

Below are brief descriptions of 5 organisations operating in the manufacturing sector. Each organisation creates a different product and is engaging in a different operational strategy. For each organisation, select the product type described as per the Boston Consultancy Group Matrix and the organisational strategy.

Organisation 1: This is a new product which has just launched into the market. It currently has a small market share but the business is confident that it has a high potential for market growth. There is a long-term commitment to improving quality with an emphasis on manufacturing infrastructure.

Organisation 2: This product has been on the marketplace for many years and the organisation believes that there is no further room for growth in market share. As it is currently the market leader, the organisation benefits from economies of scale. The manufacturing process has, over the course of the years, eliminated all waste from the processing of the item which has contributed to a high profit margin.

Organisation 3: This product has a high relative market share and high potential for growth. The organisation is required to invest heavily in this product to ensure its continued success. They have therefore created a specialist team to create innovative ideas to improve quality and reduce waste in the manufacturing process.

Organisation 4: The organisation is carefully considering whether to continue to make this product as it has a low return on investment, low market share and low potential for growth. The company is considering starting from scratch in order to streamline production and decision making.

Organisation 5: This product is difficult to manage. It has the potential to become a market leader and sales are increasing, but there is heavy competition. The organisation will use a process technology strategy which will include all staff and all departments and have an impact on the development of systems and procedures.

Complete the table below. Some answers may be used more than once: Star, Problem Child, Dog, Cash Cow, Total Quality Management, Six Sigma, Business Process Reengineering, Lean.

Which of the following will you put into box 5?

2022-12-23-12-39-44-e322ee980510ddf3b5264c697596624d

Options :

A : Star

B : Problem Child

C : Dog

D : Cash Cow

Answer: B

Question 3

XYZ Ltd is a manufacturing organisation which buys raw materials from ABC Ltd including, but not limited to rubies and gold. These materials are used in the manufacturing of jewellery and watches. XYZ Ltd accepts all orders of the materials provided as they are rare. The supply relationship is therefore one-sided. Which type of network best describes this relationship?

Options :

A : proprietary

B : centralised

C : asymmetric

D : symmetric

Answer: C

Question 4

Blue Bear Ltd is a multifunctional manufacturing organisation with a global supply chain and customers in over 30 different countries. There are many different functions within the organisation who all have their own supply networks and relationships. For each function, select which part of the Value Chain this represents and the type of Supply Network the function uses.

Function 1: This function is a support activity responsible for ensuring the other functions have the right number of resources to complete work. The function has a complex structure with both horizontal and vertical reporting lines. Each person working within the function has separate, clear objectives to achieve.

Function 2: This support activity ensures that the Five Rights are achieved by the organisation. The function makes key strategic decisions which are followed by other departments. Power is centralised here with staff on-hand to support other parts of the business as and when required.

Function 3: Staff within this function describe themselves as ‘the people that get stuff done’. The function is a Primary Activity in the Value Chain responsible for turning raw materials into finished products. The function has a supply network both upstream and downstream which is highly valued and decisions are made jointly with supply partners.

Function 4: This department, although a Primary Activity of the Value Chain, is not well organised and the relationships in the supply network are informal and rely on trust rather than contracts. Information is shared based on ‘good will’ and there are no clear boundaries. The function is responsible for warehousing and transportation.

Function 5: This area of the business has a one-sided supply network. It is considered a Primary Activity of the Value Chain and deals directly with customers.

Complete the table below by listing the Value Chain Activity and the Supply Network Type. Some answers may not be used: HR, Operations, Outbound Logistics, Technology Development, Procurement, Marketing and Sales, Symmetrical, Asymmetrical, Proprietary, Social, Centralised, Bureaucratic.

2022-12-05-20-49-51-4224576d406c221760eb4005716d4a3b

Which of the following will you put into box 1?

Options :

A : HR

B : Operations

C : Outbound Logistics

D : Technology Development

E : Procurement

F : Marketing and Sales

Answer: A

Question 5

Below are brief descriptions of 5 organisations which are working to create an Operations Strategy. Each organisation is focusing on one aspect of strategic thinking and has a different attitude to designing the organisation’s structure. Based on the descriptions below, select the attribute of strategic thinking and the Organisational Type according to Laloux’s Organisational Model which correspond to each organisation.

Organisation 1: This organisation uses the metaphor of a machine to describe its organisational model. The priority is to achieve competitive advantage within the marketplace, drive growth and generate profit. The main attribute is therefore to understand how value can be created within the system by understanding the current reality and what changes need to be made to ensure the organisation remains competitive.

Organisation 2: The management at this organisation constantly re-evaluates the direction of travel in order to determine if that direction is still valid. The organisation is extremely responsive to changes in the external environment and has a participatory management system with employees encouraged to voice ideas and opinions. The main concern of the organisation is to drive employee empowerment.

Organisation 3: The organisation knows what it wants to achieve and all energy is directed to achieving these aims. The goals are clearly defined by senior leadership who have strong managerial command and control systems in place. There is little creativity at this organisation.

Organisation 4: This organisation uses the metaphor of a family to describe itself. It invests heavily in developing organisational culture and its people. The organisation listens to its employees and is extremely prudent about avoiding past mistakes. The priority is to be as responsive as possible to the current environment and renewing the organisation’s strategy for the future.

Organisation 5: Here there is a creative and critical approach to strategy design. Rather than using data to drive decisions, management asks ‘what if?’. There is heavy investment in agile practices, and employees do not have direct line managers, rather they ‘self-manage’. The organisation uses the metaphor of a living organism to describe itself.

Complete the table below by listing the Strategic Thinking Attribute and Organisational Type. Some answers may not be used: systems perspective x2, hypothesis driven, intent focused, thinking in time, intelligent opportunism, orange x2, teal x2, green x2.

Which of the following will you put into box 2?

2022-12-11-14-28-02-9da9de1331f81c746dcae10be7866a1b

Options :

A : systems perspective

B : hypothesis driven

C : intent focused

D : thinking in time

E : intelligent opportunism

Answer: A

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