CHRIST (Deemed to be University) Delhi NCR

School of Business and Management

MID SEMESTER EXAMINATION – December 2020

Programme Name: MBA Max. Marks:

50
Course Name: Operations Management Time: 2 Hrs.
Course Code: MBA236N
Course Outcomes (COs): At the end of the course, the students will be able to

CO CLO Assessme DESCRIPTION REVISED

(NB (AACSB) nt BLOOM’S
A) TAXONOM
Y
CO CLO1 CIA I Understand the operations strategy design L2
1 (U1) process in a competitive environment.
CO CLO2 CIA I Analyze layout designs, location criteria and L4
2 (U2) CIA II line balancing decisions in manufacturing
setup.
CO CLO3 CIA II Examine inventory patterns and models for L4
3 (U3&4) optimizing value in a supply chain.
CO CLO4 CIA IIIA Discover the causes of quality defects L4
4 (U5) through statistical and non-statistical
methods.

CO CLO5 CIA IIIB Study emerging areas in lean, sustainability L2

5 (U6&7) and project management

SECTION A (Answer ALL questions)

Q. Questions Mark CO RBT
No s

1 “Suppose you are visiting a near by SIB bank and obersving the various inputs 10 CO2 L4
and outputs in the transformation process.Make a schematic daigram to
represent the transformation process including the random disturbances and the
feedback mechanishms.

Given this scenario, Analyize the quality monitors of inputs to the process.
Conclude its competitiveness based on process design followed by SIB

2 A company manufactures gel – pens that it is able to sell at Rs. 20 per piece. 10 CO2 L4
The variable cost of the pen is Rs. 15 per unit. If the company has made a total
investment of fixed costs to the tune of Rs. 40,000. Classify the break-even
sales for the pen. Also graphically represent the cost structure and the break-
even point.
3 • A leather manufacturing facility is considering three location options 10 CO3 L4
for a new plant.

• Company considers 8 important factors with ratings as in the table

• All the three locations have been rated on these factors after a detailed
survey. The scores are also mentioned in the table below.

Based on the available information, Compare which location is good for the
compamy

Factor
Location Rating
Rating
Factor
(Out of 5) (Out of 10)
  Kanpur Noida Gorakhpur
Proximity to Markets 3 4 6 3
Proximity to Raw Material 5 10 5 4
Transportation Facilities 4 9 10 5
Basic Amenities 2 6 7 6
Local Acceptance to Leather Factory 4 8 3 7
Availability of Cheap Land 3 7 2 8
Low Construction Costs 1 5 1 6
Availability of cheap and efficient
3 3 8 4
labour

SECTION B (Case Study)

Q. No Questions Mark CO RBT
s

Daimler, the British car maker faced the problem of survival

in the late 1970s. No introduction of a new model for a long
time was a particularly acute problem for Daimler. The
existing range was tired and incompetent, and, because of
financial weakness, investment had been severely curtailed
for a number of years. Similarly, design resources had been
cut and the specialist skills inherited from separate companies
had been protected. Daimler had excess production capacity,
but products with the poor reputation for quality and
reliability. The only solution seemed to be collaboration with
foreign company which could provide its design expertise to
Daimler.

Isuzu soon emerged as the likeliest choice. Isuzu had design

strengths in the areas in which Daimler had lost expertise and
curtailed investment-engines and gearboxes. Daimler, for its
part, possessed European design studios, something which
particularly attracted the Japanese as a means of improving
products by making them more attractive to customer both at
home and abroad. In 1983, Daimler licensed an existing Isuzu
model for the assembly in the UK--the Triumph Acclaim. The
project involved the purchase of a replica Isuzu production
facility and an agreement for the supply of major parts.
Acclaim became a success in terms of sales in the UK, but
most of the revenue generated went to Isuzu as a part of the
agreement. The image of Daimler saw an upturn, though this
venture did not have much impact on its capabilities.

Acclaim was followed by Daimler 200 in 1985. This product

was more than a licensing deal, as Daimler was involved in
the design of what was also to be a new Isuzu product.
However, Daimler’s design input was limited to making the
300 distinct from the Ballade, Isuzu’s equivalent, with the key
units-body and mechanics-designed by Isuzu. Daimler’s job
was only to adapt the design to take the existing O-series 1.6-
litre engine and its matching gearbox. However, the biggest
sellers, the 1.3 liter models, were powered by Isuzu units and
thus, according to the contract agreement, Isuzu was again the
main beneficiary. The agreement also contained the clause
that Daimler 300 will be manufactured at Daimler’s
Longbridge plant, but after receiving a few units from this
plant, Isuzu complained about the quality levels and
terminated the agreement. In order to become self-reliant,
Daimler’s design engineers were initially concentrating upon
developing the Montego and Maestro models as a
replacement to the existing models. Due to the diversion of
Daimler’s resources to the Daimler 300 project, these
development projects became starved of resources.

After Daimler 300, the series of models launched by the

Daimler-Isuzu team were Daimler 800, R8, and
Daimler600/Isuzu Gemini in 1987, 1990, and 1994,
respectively. In all these projects, Isuzu had the upper hand in
negotiations over design specifications and, more importantly,
in contracts to supply engines and other parts. Daimler
continued to expend a great deal of its design resources in
continues updating of its existing models, and this further
weakened the firm’s ability to replace its product range.
Daimler and Isuzu maintained distance from each other, and
developed separate product plans-Daimler incorporating Isuzu
 models in to its own plans when these were offered and Isuzu
sharing some of the cost with Daimler in return for lucrative
manufacturing rights. There is little doubt that the injection of
Isuzu-derived models and facilities supported Daimler, and
allowed it to survive. However, Isuzu received a stunning
blow when Daimler sold to Benz in 1996.

1 Classify the advantages derived by Isuzu from its relationship 6 CO2 L4

with Daimler?

2 Classify the list of Commercial risks for Isuzu in sharing its 6 CO2 L4
design skills with Daimler?

3 Analyze the things, which went wrong for Daimler in 8 CO2 L4

regaining its design capabilities for replacing its existing fleet
of models? Build a plan which Daimler should have followed
in this regard.

Revised Bloom’s Taxonomy (RBT) Levels

L1 – Remembering L2 – Understanding L3 – Applying

L4 – Analyzing L5 – Evaluating L6 – Creating

Prepared By Reviewed by Approved By

Dr Akhilesh Tiwari