[Jan-20]

MBA, MBA(HR), MBA(IB), MBA(IBF), MBA(GL&SCM) &

IMBA Degree Examination
II TRIMESTER / VIII TRIMESTER
OPERATIONS MANAGEMENT [MMH-717]
(MBA : Effective from the admitted batch 2019-20)
(IMBA : Effective from the admitted batch 2016-17)
Time: 3 Hours Max.Marks: 60
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Instructions: All parts of the unit must be answered in one place only.
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SECTION-A
Answer All the Questions: (10×2=20M)
1) Define operation strategy.
2) Give the events in the historical evolution of operations management.
3) How to manage demand in MTO scenario?
4) List out the different types of layouts.
5) What are various advantages and disadvantages in maintaining
inventory?
6) What is inventory management?
7) Why mathematical approach in Aggregate Planning is an optimal plan
for minimizing costs.
8) How is Revenue Management executed in “Perishable Industry”
9) Explain the “5S” principle.
10) What are the various factors considered to implement Lean Management
Process in the service industry?

SECTION-B
Answer the following: (5x6=30M)
UNIT-I
1) Discuss the nature and scope of operations management.
OR
2) Compare the similarities and differences in goods and service through
examples.
 UNIT-II
3) What do you mean by service delivery system? Discuss the factors
influence to design a good service delivery system.
OR
4) Analyze the process of product design and list the steps in product
development system.
UNIT-III
5) An automobile transmission-assembly factory normally operates two
shifts per day, five days per week. During each shift, 400
transmissions can be completed under ideal conditions. What is the
capacity of this factory?
OR
6) The demand for product X is 20 units per week. Its cost is Rs. 3,000.
Cost of placing an order is Rs. 2,500. Annual holding cost is 20
percent of the cost of X. X is being purchased in a lot size of 420.
Would a lot size of 480 be better? What would be the EOQ of X?
UNIT-IV
7) With the help of a diagram/chart explain the links between ERP, MRP,
SCM, CRM and Finance/Accounting.
OR
8) Consider a product, code named A, manufactured by a company. Product
A is made of 3 sub-assemblies B, C, and D. 1 unit of B, 4 units of C, and
2 units of D are required for assembling 1 unit of Product A. sub-
assembly B is made of 2 units of E and 4 units of F. Sub-assembly C is
made of 2 units of E and 4 units of D, whereas sub-assembly D is made
of one unit of G and three units of H.
a) Develop a product structure for Product A.
b) How many units of D are required to manufacture 10 units of A?
UNIT-V
9) Explain Ishikawa “Fish Bone Diagram” with a relevant example.
OR
10) Discuss Deming’s 14 principles with suitable examples.
 SECTION-C
Case Study (Compulsory): 10M
The $41 billion dollar firm Uber Technology, Inc., is unsettling the
traditional taxi business. In over 40 countries and 240 markets around the
world, Uber and similar companies are challenging the existing taxi business
model. Uber and its growing list of competitors, Lyft, Sidecar, and Flywheel
in America, and fledging rivals in Europe, Asia, and India, think their smart
phone apps can provide a new and improved way to call a taxi. This
disruptive business model uses an app to arrange rides between riders and
cars, theoretically a nearby car, which is tracked by the app. The Uber system
also provides a history of rides, routes, and fees as well as automatic billing.
In addition, driver and rider are also allowed to evaluate each other. The
services are increasingly popular, worrying established taxi services in cities
from New York to Berlin, and from Rio de Janeiro to Bangkok. In many
markets, Uber has proven to be the best, fastest, and most reliable way to
find a ride. Consumers worldwide are endorsing the system as a replacement
for the usual taxi ride. As the most established competitor in the field, Uber
is putting more cars on the road, meaning faster pickup times, which should
attract even more riders, which in turn attracts even more drivers, and so on.
This growth cycle may speed the demise of the existing taxi businesses as
well as provide substantial competition for firms with a technology-oriented
model similar to Uber’s.

The Uber business model initially attempts to bypass number of regulations

and at the same time offer better service and lower fees than traditional taxis.
However, the traditional taxi industry is fighting back, and regulations are
mounting. The regulations vary by country and city, but increasingly special
licensing, testing, and inspections are being imposed. Part of the fee charged
to riders does not go to the driver, but to Uber, as there are real overhead
costs. Uber’s costs, depending on the locale, may include insurance,
background checks for drivers, vetting of vehicles, software development
and maintenance, and centralized billing. How these overhead costs compare
to traditional taxi costs is yet to be determined. Therefore, improved
efficiency may not be immediately obvious, and contract provisions are
significant.

In addition to growing regulations, a complicating factor in the model is

finding volunteer drivers at unusual times. A sober driver and a clean car at
1:00 a.m. New Year’s Eve does cost more. Consequently, Uber has
introduced “surge” pricing. Surge pricing means a higher price, sometimes
much higher, than normal. Surge pricing has proven necessary to ensure that
cars and drivers are available at unusual times. These higher surge prices can
be a shock to riders, making the “surge price” a contentious issue.

Questions:
1. The market has decided that Uber and its immediate competitors are
adding efficiency to our society. How is Uber providing that added
efficiency?
2. Do you think the Uber model will work in the trucking industry.
3. In what other areas/industries might the Uber model be used.

[51,53,61,62,63/II T/220]
[41/VIII T/320]