E1 Enterprise Operations : Guideline

E1 Enterprise Operations
CMA December 2019

SECTION A — 20 MARKS
This section consists of 1 question and 8 sub-questions. You are advised to spend no longer
than 36 minutes on this section. Section will carry 20 marks and one sub-question will
carry 2.5 marks each.

QUESTION 1
(a) Define Country Risk and Political Risk. How these risks are managed by a
Multinational Company (MNC)?
(b) What are advantages of offshoring?
(c) How would you differentiate Market Segmentation and Market positioning?
(d) Describe PESTEL in analyzing macro environment of marketing.
(e) What are the tools of monetary policy and how do they impact the market?
(f) Distinguish between Optimized Production Technique (OPT) and Enterprise Resource
Planning (ERP).
(g) Explain the process under Kaizen costing.
(h) Which promotional mix is more suitable for the country like Bangladesh? Why?

[Marks: (2'/2 Marks x 8) = 20]

SECTION B — 30 MARKS

This section consists of 1 question and 5 sub-questions. You are advised to spend no longer
than 9 minutes on each sub-question in this section. Section will carry 30 marks and one
sub-question will carry 6 marks each.

QUESTION 2
(a) "Developing and maintaining a brand is expensive. However, a brand can enhance
profitability." Explain. [Marks: 6]
(b) What is knowledge management? Describe the impact of human capital to knowledge
capital? [Marks: 6]
(c) Explain six different ways in which operations management thinking and techniques
may benefit UBER in Bangladesh. [Marks: 6]
(d) Describe six types of loss that a company may face when investing in another country
unless the risks are managed. [Marks: 6]
(e) The implementation of a new information system may sometimes meet with staff
resistance. Explain TWO management strategies for overcoming resistance that have the
advantage of speed but could raise ethical and possibly legal concerns. [Marks: 6]

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 E1 Enterprise Operations : Guideline

SECTION C — 50 MARKS

This section consists of 2 questions. You are advised to spend no longer than 45 minutes on
each question in this section. Section will carry 25 marks and allocation of marks for each
sub-question is indicated next to the sub-question.

QUESTION 3

Electro Mart is an electronic Company having plant in Dhaka. It imports different parts
from overseas countries and manufactures finished products for distribution in domestic
markets. It engaged dealers in different important cities to distribute three different
product lines. At present it uses Tally Software for its general accounting. It has also
different modules for HR and inventory management. The Company, now, is at the stage of
establishing its brand in the market and facing severe competition with some other
established brands. The Company is also contemplating to expand its business in export
market. The Board of Directors advised the CEO to take initiatives to improve efficiency of
the Company through providing accurate and timely information for overall controlling
and decision making. The newly appointed CEO finds that there are huge scopes of
performance improvement through effective monitoring and controlling on supply chain,
quality improvement, working capital, information dissemination and decision making
process. The CEO suggested the board to approve implementation of an ERP. Accordingly,
the board decided to implement an ERP and entered into an agreement with Infosys (BD)
Ltd, a renowned software vendor. As the CFO of the Company, you have been instructed
to assist the CEO.

Requirements: (You are free to take necessary assumptions or not regarding cost, volume,
lead time, period or any other factors pertaining to operation, marketing, manufacturing
etc.)

(a) Draw a detail plan to facilitate the successful implementation of the project with a
special emphasize on system Changeover;
(b) Point out briefly how the proposed ERP can help in strategic, tactical and operational
level decision making?
(c) How data of different functional departments of Electro Mart can be converted into
information?
(d) Prepare a draft Service Level Agreement (SLA) to be executed between Electro Mart
and Infosys (BD) Ltd for future maintenance of the ERP.
[Marks: (7+6+5+7) = 25]

QUESTION 4
A professional management body is funding a major research project into the relationship
between certain HR systems and workplace motivation. As part of this project the PQ
University has been engaged to investigate the use of staff performance appraisal systems
in large organisations. The University's work involves a number of stages:

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 E1 Enterprise Operations : Guideline

'Stage 1: questionnaires issued to all large organizations to understand the range of

performance appraisal systems operating.

'Stage 2: initial results from stage 1 discussed with a group of senior managers (such as HR
directors and chief executives).

'Stage 3: focus group meetings with employees at all levels within the organizations
surveyed to understand employee motivations, attitudes and experiences.

'Stage 4: final report to the professional body and subsequent dissemination of findings.

Stage 3 has now been completed and a number of interesting issues have emerged:
•The use of formal performance appraisal systems varies significantly between sectors from
80% of financial service organizations to only 50% in the retail sector.

'Organizations not using an appraisal system do not feel that the potential benefits of a
formal system justify the time and cost involved in operating it.

•Of the systems in operation, 90% involved an annual meeting between employees and
their appraiser, normally their line manager.

•15% of organizations used the outcomes from the system to help determine pay.

'There was little relationship between levels of motivation and the existence of a staff
performance appraisal system. (Motivation was more closely related to issues such as
organizational reputation and the operation of environmental action and sustainability
programs.)

'Employees were generally critical of their own organization's system of formal staff
performance appraisal.

Requirements:
(a) Describe the potential benefits of a formal staff performance appraisal system for a
large organization.

(b) Explain the possible reasons for employees being critical of their own organization's
system of formal staff performance appraisal.

(c) According to the research findings, environmental action by organizations and

sustainability programs are highly regarded by employees. Explain why this might be the
case. [Marks: (10+10+5) = 25]

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 E1 Enterprise Operations : Guideline

Instructions for E1 Preparation

 Step-1: Start to cover these questions along with your CIMA Study Text & Internet for
make the concepts clear to you.
 Step-2 : After completing all of these questions you should start to cover all the Case
Studies (Part-C) questions from:
 CIMA November 2014, September 2014,May 2014,March 14,November 2013
 CIMA Exam kits
 ICMAB Past Questions
 Step-3 : At the time of covering the syllabus arena, you should prepare a revision
summary sketching chapter wise all the points of questions or topics of every chapter.
 Step-4 : Now, Your chapter wise summary of points are being ready(It will not being
more than 30-40 Pages covering all of these materials).
Revise the course using your summary & return back to details information if feel
necessary to recall the concepts.

Section-C : Operations Management

Chapter 06 : Introduction to operations management

Introduction to operations management

 F.W Taylor
 Operations
 Input
 Process
 Output
 Operations management
 Operations strategy
Operations and organisational competitiveness
 Mintzberg's effective organisation
 Porter's value chain
 Supply Chain
The four V's of operations
 Volume
 Variety
 Variation in demand
 Visibility
Distinctive features of service organisations
 Intangibility
 Cannot be stored
 Customer participation in the delivery process
 Face-to-face contact
 More labour intensive
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 E1 Enterprise Operations : Guideline

Systems used in operations management

 Material requirements planning (MRP)
 Manufacturing resource planning II (MRP II)
 Enterprise resource planning (ERP)
 Optimised Production Technology (Opt)
 Just-in-time (JIT)
 JIT Purchasing
 JIT Production
 Requirements of successful operation of a JIT System
• High quality & reliability
• Elimination of non-value added activities
• Speed of throughput
• Flexibility
• Lower costs
 Impact of JIT
 Supplier relationship & JIT
• No rejects/returns
• On-time deliveries
• Low inventory
• Close proximity

Managing operational capacity

 Capacity planning
 Systems used to manage operational capacity
 CAD = Computer Aided Design
 CAM =Computer Aided Manufacturing
 CIM= Computer Integrated Manufacturing
 FMS=Flexible Manufacturing System
• The ability to change quickly from one job to another
• Fast response times
• Small batch production
 Queuing theory

Importance of sustainability in operations management (Q.12)

 How Sustainability impacts Operations Management
 Process Design
 Product Design
 Supply Chain Management
 Quality Management

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 E1 Enterprise Operations : Guideline

Process design
 Methods of Process design
 TQM
 Kaizen
 BPR
 Benchmarking
 Use of Process Maps
 Improvement in Supply Chain Management
 Stages of Product/Service Development
 Consider Customer needs
 Concept Screening
 Design Process
 Time to Market
 Product Testing

Section-C : Operations Management

Chapter-6 :Introduction to Operation Management

Operation Management
 Explain different ways in which operations management thinking and techniques may benefit
a hospital. (June 2019) (CIMA May 2014)
 Explain six different ways in which operations management thinking and techniques may
benefit UBER in Bangladesh. (Dec 2019)
 The ideas and principles established by the well-known theorist F.W. Taylor have
implications for both operations and management even today.
Describe briefly FIVE of these ideas and principles. (CIMA Nov 2013)
 Product manufacturing operations can be explained as a three stage transformation model of
inputs, processes and outputs.
Distinguish how a service differs from a product using this model as a framework.
(May 2012-Exam Kit)

Value Chain & Supply Chain

 State the primary activities in the value chain of a manufacturing company with one example
for each activity. (Dec 2018) (CIMA Nov 2014)

JIT
 What are the challenges to implement JIT in a country like Bangladesh? (June 2016)
 Describe the potential disadvantages of introducing Just-In-Time (JIT) operations within a
manufacturing organisation. (Sep 2013-Exam Kit)
 Explain how a just-in-time (JIT) approach might contribute to the competitiveness of a
firm. (May 2013-Exam Kit)
 Describe the operational requirements for a system of JIT production. (Q.No.206-Exam Kit)
 Explain how the JIT philosophy might be applied to the provision of services to customers.
(Q.No.209-Exam Kit)

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 E1 Enterprise Operations : Guideline

MRP, ERP, OPT

 How does Enterprise Resource Planning (ERP) based solution combine all of a
globally diverse organization's production, sales, marketing, customer support information
and reporting for decision making? (Dec 2017)
 Distinguish between Optimized Production Technique (OPT) and Enterprise Resource
Planning (ERP). (Dec 2019)
 Explain how Material Requirements Planning (MRP) might improve operations. (Sep 2012-
Exam Kit)

Sustainability in Operation Managegent

 Elucidate/explian how operations management might contribute towards achieving an
organization‘s sustainability targets. (Dec 2017) (Mar 2012-Exam Kit)
 Explain the benefits of sustainable practices to an individual firm. (May 2013-Exam Kit)
Managing Operational Capacity
 Explain queuing theory and give examples of the ways in which it might benefit a hospital
providing services to the public. (Sep 2012-Exam Kit)
 Explain the relationship between organisational competences and decisions relating to
the contracting out of activities. (May 2011-Exam Kit)
Process Design
 Explain the nature of concept screening in the product design process. (Q.No.209-Exam Kit)

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 E1 Enterprise Operations : Guideline

Chapter-7
The Supply Chain & Supply Network

The supply chain and supply networks

 Supply chain
 Virtual supply chain
Strategic supply chain management
3 themes:
 Responsiveness
 Reliability
 Relationships
Purchasing Vs Supply

The strategic positioning tool — Reck and Long

 Passive stage
 Independent stage
 Supportive stage
 Integrative stage
The strategic supply wheel —Cousins
 Organisation structure
 Relationships with suppliers
 Cost/benefit
 Competences
 Performance measures

Relationship-based supply chain

• Competitive (opportunistic)
• Collaborative

Sourcing strategies
• Single Sourcing
• Multiple Sourcing
• Delegated Sourcing
• Parallel Sourcing

The supply chain and ethics

Process Maps

Methods for managing inventory

• Continuous inventory system
 EOQ Model
• Periodic inventory (or bin) system
• ABC system

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 E1 Enterprise Operations : Guideline

Chapter-7
The Supply Chain & Supply Network

Methods Inventory Management

 State how Economic Order Quantity (EOQ) can help managers to plan for inventory to store
and order. (Dec 2018)
 “Economic Order Quantity (EOQ) is an effective tool for managers to determine optimal
amount of inventory to hold on hand as well as to calculate when to order more
merchandise”. Discuss. (Dec 2017)
 Describe FIVE different systems for managing inventory (stock). (May 2014)
 Describe the main types of inventory management systems. (Nov 2011-Exam Kit)
 (i) Explain the difference between continuous inventory management, periodic inventory
systems and ABC inventory management.
(ii)Explain, giving your reason, which type of inventory management system is appropriate
for an MRP I system of production scheduling. (Q.No.209-Exam Kit)

The strategic positioning tool — Reck and Long

 Explain why ‘Supply’ has been described as being more significant than ‘Purchasing’ for an
organization. Describe Reck and Long’s purchasing development model. (June 2018, June
2016)
 Describe Reck and Long's purchasing development model. (May 2011-Exam Kit)
 Explain the approach of Reck and Long to supply strategy, and describe their four stages in
the development of purchasing to becoming a competitive weapon in a company's strategic
planning and battle for markets. (Q.No.206-Exam Kit)

The strategic supply wheel —Cousins

 Explain the FIVE 'spokes' in Cousins' strategic supply wheel. (Sep 2014)
 Explain how Cousins' strategic supply wheel can help an organisation which is considering
moving away from price-based procurement and policies. (Nov 2011-Exam Kit)
 For an organisation following a strategic approach to supply, describe the organisational
factors ('spokes in a wheel') that need to be integrated, co-ordinated and developed.
(Q.No.212-Exam Kit)

Process Mapping
 Describe FIVE benefits of process mapping. (Nov 2012-Exam Kit)

Purchasing Vs Supply
 Explain the disadvantages of a firm developing relationships with suppliers based on price
alone. (June 2017) (May 2013-Exam Kit)
 Large companies often exert o high bargaining power over their suppliers.' What type of
suppliers will the following have?
A large, mid-price chain of clothes shops
A large top division football club.
Discuss the quotation above in the context of these two businesses. (Dec 2016)

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 E1 Enterprise Operations : Guideline

 Explain SIX reasons why a firm might attempt to actively manage its relationships with its
suppliers. (June 2019) (CIMA May 2014)
 Explain why 'Supply' has been described as being more significant than 'Purchasing' for
an organisation. (Sep 2011-Exam Kit)

Chapter-8
Quality Management

Wlmt quality?

4Cs of Quality :
• Commitment
• Competence
• Communication
• Continuous Improvement

Key Writers on quality

• Deming
• Juran
• Crosby

Methods of quality measurement

• Prevention costs
• Appraisal costs
• Internal failure costs
• External failure costs

Approaches to Quality Management

• Total Quality Management (TQM)
• Quality Control (QC)
• Quality Assurance (QA) Systems
 EQFM
 ISO

Total Quality Management (TQM)

• Definition
• Fundamental features
 Prevention of errors before they occur
 Continual improvement
 Real Participation by all
 Commitment of senior management
• TQM techniques
 Six Sigma
• Key requirements of successful six sigma implementation
• Criticism & Limitations of six sigma

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 E1 Enterprise Operations : Guideline

 5-S Practice
 Quality Circles
 Kaizen
 Statistical Process Control
• Implementation of a TQM Approach
 Senior management consultancy
 Establishing a quality steering
 Presentation & training
 Establish quality circles
 Documentation
 Monitor Progress

Quality control
Quality Assurance (QA) Systems
• ISO
• EQFM
Measuring service quality — servqual
5 Dimensions:
• Tangibles
• Reliability
• Responsiveness
• Assurance
• Empathy
Business process re-engineering
Lean management
• Wastes to be eliminated
1.Inventory 2. Waiting 3. Defective units 4. Effort
5.transportation, 6. Over-processing, 7. Over-production
• Characteristics
 Improved production scheduling
 Small batch of production or continuous production
 Economies of scope
 Continuous Improvement
 Zero inventory
 Zero waiting time
• The six core methods
 JIT
 Kaizen
 5-S Practice
 Total Productive Maintenance (TPM)
 Cellular Manufacturing
 Six Sigma
• Criticisms and limitations
• Application to services

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 E1 Enterprise Operations : Guideline

Chapter-8
Quality Management

TQM
 “TQM requires a transformation in thinking about how organizations view customers,
suppliers and shareholders.” Explain. How the Bangladeshi RMG sector can reduce overhead
costs by focusing TQM. (June 2018, June 2016)
 Describe FIVE possible reasons for the failure of a Total Quality Management (TOM)
programme within an organisation. (June 2019) (CIMA Nov 2014)
 Describe the key aspects of a programme to implement Total Quality Management (TQM) in
manufacturing organization. (Dec 2015) (Nov 2010-Exam Kit)
 Distinguish quality circles from quality control inspection. (June 2019) (CIMA Nov 2013)
 Distinguish between ISO9000 accreditation and Total Quality Management (TQM).
(Mar 2014)
 Explain the reasons why quality may be important to a manufacturing organisation.
(Q.No.206-Exam Kit)
 Explain why 'prevention costs' will account for the majority of quality-related costs in a
modern manufacturing environment. (Q.No.212-Exam Kit)
 Explain the meaning of a 'quality chain' within an organisation and suggest how service level
agreements can be used to strengthen the quality chain. (Q.No.212-Exam Kit)
 The ISO 9000 series of quality management standards is based on certain quality principles.
Explain the purpose of the ISO 9000 quality standards and describe the quality principles on
which they are based. (Q.No.205-Exam Kit)
 Explain the framework for an exercise to establish quality management systems in
conformity with ISO 9001 guidelines. (Q.No.205-Exam Kit)

Kaizen Costing
 Explain the process under Kaizen costing. (Dec 2019)
 Describe the features of continuous improvement or Kaizen. (Kit Q.No. 206)

Six Sigma
 Describe FIVE main features of the Six Sigma approach. (Mar 2014)

Lean Mangement

 State the limitations of lean production. (June 2019)

 Describe FIVE forms of waste within manufacturing organisations that lean process
improvement aims to eliminate. (June 2017) (Nov 2010-Exam Kit)
 Describe the types of waste a lean management approach would try to eliminate. (Mar
2014)
 “Lean” thinking was first developed with manufacturing organisations in mind. Describe
FIVE examples of ways in which these waste elimination principles might be applied to
improve efficiency in service organisations (such as hospitals and offices). (Nov 2010-
Exam Kit)

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 E1 Enterprise Operations : Guideline

Total Productive Maintenance (TPM).

 Describe FIVE different improvements a manufacturing organisation might experience as
a result of introducing Total Productive Maintenance (TPM). (Nov 2013)
 Identify the ways in which Total Productive Maintenance (TPM) could be applied as part
of a manufacturing organisation's quality programme. (Mar 2013)
5-S Practice
 Describe the 5-S practice for improving both the physical and thinking environment of an
organisation. (Mar 2012)

Business Process Re-engineering (BPR)

 Describe the nature of Business Process Re-engineering (BPR) and explain the principles on
which it is based. (Kit Q.No. 206)

Section-A : The Global Business Environment

Chapter-03
Governance & Regulation in the Global Business Environment

 Head-1 # Stakeholders, Corporate Social Responsibility & Corporate Governance

 Explain the relationship between stakeholders and corporate governance. (June 2019) (CIMA
Mar 2014)
 Describe the benefits an organization might derive from adhering to good Corporate Social
Responsibility (CSR) principles in its business activities. (June 2019, June 2017)
 State/Explain the relationship between 'Business Ethics' and 'Corporate Social
Responsibility'. (Dec 2018, Dec 2017, June 2016) (Mar 2012-Exam Kit)
 Explain, with examples, the meaning and nature (dimensions) of corporate social
responsibility (CSR). (Dec 2015) (Nov 2011-Exam Kit)
 Explain the concept of corporate social responsibility (CSR) and suggest how CSR might be
relevant for the marketing of an organisation's products or services. Q.No.208-Exam Kit)

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