Technology and Operations Management

Mid Exam – JOG-MBA-78D

Monday, October 11, 2021 – 7.30-10.00

Instructions:

• The exam is open book. Write your own works using your own words.
• Be honest. All submitted works will be screened through a plagiarism detection process.
• It is not permitted to cooperate and/or communicate with or take help from another person.
• Students who are having unexpected technical difficulties during the exam should contact the
academic immediately.
 Read the questions carefully. Take your time to ensure you understand exactly what to do. If you
understand the question, you will be able to give the correct answer.
• Do not rush, but please submit your work on time.

Questions:

1. [10 points] What is meant by “improved decision-making”? Explain the ways in which operations
management can contribute to this. Provide examples if deemed necessary.

2. [10 points] What are the differences between terms “production management” and “operations
management” in the context of services? Discuss.

3. [20 points] Describe how a Gantt chart, a PERT chart, and a CPM are similar -- and how they are
different. As we face the massive disruption of COVID-19, how does the pandemic affect the
project decision making and day-to-day operations in a project organization? How can we utilize
those tools to help us in strategizing massive vaccination program and speed up the recovery
from the pandemic?

4. [30 points] In late August, Manchester United re-signed Cristiano Ronaldo on a two-year contract
with the option to extend for a further year. Man Utd will pay €15m (£12.9m) plus a further €8m
(£6.9m) in add-ons for the Portugal captain. Indeed, this has been such an exciting moment for
the club, both on the field and outside the field.

Just like many technology industries, professional football are subject to increasing disruption.
The impact is seen in the way media gets consumed, increased democratization through social
media, increased globalization, as well as an ever-widening range of football that are clamouring
for our attention.

Whilst there are technology companies, such as Apple that have their fans, few come anywhere
close to achieving the emotional attachment that a football club like Manchester United can. It is
expected that this moment could be the turning point to finally give the fans what they want.
Fans are particularly very important because they provide the atmosphere on which broadcasting
and therefore sponsorship thrives.

Manchester United currently rely on TV revenue and sponsorship deals as their main source of
income, followed by the sale of merchandise. Yet, the owner expect more successive deals and
partnership could be done to bring greater wealth to the club. Moreover, there are also a
pressure to exploit today's digital opportunities to be incorporated into their existing business
model.
 The question is, what should the managers do? How should they develop new products and
services to cater their fans' needs and wants? More importantly, how could the club transform
itself in the digital age?

5. [30 points] Cars that enter the Indonesian market are generally divided into two types according
to their assembly: Completely Built Up (CBU), which is imported intact from the manufacturing
country; and Completely Knocked Down (CKD), which is a partially imported car then assembled
in Indonesia. CKD is carried out by producers to reduce taxes on imported vehicles so that the
selling price is more competitive.

The demand of Indonesians for luxury cars has made car manufacturers invest in assembling
facilities, particularly for luxury cars, in Indonesia. Mercedes-Benz, for example, established an
assembly plant in Wanaherang, Gunung Putri, Bogor. Compared to premium cars such as Audi,
Lexus, Volvo, and so on, Mercedes-Benz has consistently ranked first in the luxury car category in
Indonesia for many years.

In 2017, the Mercedes-Benz market share of eight brands reached 51.56 percent of the combined
eight premium brands in Indonesia. This figure experienced a surge of 3.09 percent compared to
2015. In the second position BMW trailed with a contribution of 30.05 percent. In 2017,
Mercedes-Benz recorded car sales of 2,800 units, an increase of 3 percent over the same period
the previous year.

Even though the brand image of Mercedes-Benz is so attached as a car that has good product
quality, in recent times they have often made blunders. For example, in 2017 some Mercedes-
Benz products experienced a decline in product quality. The parent company of Mercedes-Benz,
Daimler, has even carried out a product recall of millions of cars that have been marketed around
the world because of the risk of fires that can occur due to problematic fuses.

In addition, the damage that occurs in each Mercedes-Benz product is considered to be

particularly unique because each of their cars inherently have very different designs that can
cause different problems. One of the Mercedes-Benz variants has a design flaw in the latch on
the left rear passenger door. The latch is in charge of making sure this perfectly locked door does
not work properly, and keeps the door unlocked. Another variant has a defect in the main lamp
which needs to be checked and reset regularly. Another variant has a defect in the braking
system that requires recalibration.

Unarguably, after the announcement of the recall, Mercedes-Benz sales globally are predicted to
decline. Other manufacturers such as BMW and Lexus are also increasingly trying to take the
Mercedes-Benz market. In addition, manufacturers like Tesla, which are very innovative, are
more or less disrupting the Mercedes-Benz market. As an official Trademark Holder Agent (Agen
Pemegang Merk/APM) in Indonesia, how should you respond to this? What is the recovery
strategy that you will implement to defend the market in Indonesia? How do you convince the
market that there is no significant change in the quality of Mercedes-Benz products?

Good luck and wish you all the best!