MGMT2026 MIDTERM REVIEW

Lecture 1: Introduction to POM

1.
How does the operations function differ from the marketing and
finance functions of an organisation?

Operation function differs from the marketing and finance function

because it produces goods and services from the input of both
functions where the marketing fuction is concnerned with the
customer wants and needs and promoting goods and services and
the finance fuction deals with the allocation and mangement of
financial resources.

2.
What are the core distinguishing characteristics of products and
services?
Products are Tanglible goods, consistent definition, Production
usually isn't related to consumption, low customer interaction, can
be inventoried. Services are Intangible goods, inconsistent
definition, unique, high customer interaction

Lecture 2: Competitiveness, Strategy and Productivity

3.
What are the key differences among a mission statement, goals strategy,
tactics and operations?

Mission statement is the purpose of the company, goals strategy is how

you plan to achive those goals, more specifics of how to accomplish the
goals and implementing strategy.
4.
What are the main types of business strategies that can be found in
organisations?
Price,Quality,Flexibility,Location,Time,Service.
Low Cost: Price competition , Responsiveness ability to adapt to
demands, Differentiation from
competitors via quality variety service location speed etc

5.
For the below scenario a) identify the single factor (labour)
productivity ratios (per employee for
the two weeks. b) identify the multifactor productivity ratios for the
two weeks. c) What are the
differences between the two productivity measures for each week?
A - 900 pencils/80hrs= 11.25 chairs/per hr
B- 1100$/

Note: Employees are paid $5 per hour

Lecture 3: Product and service design

6.
What is the main difference between standardisation and mass
customisation?
Main DIFFERENCE is the customization of the product, where
standarisation has no customization for the
customer and mass customization has plenty customization based on
their preferences/

7.
What are the different types of mass customisation?
Delayed Differetiation where you produce but not to completion until
the customer specs are known
Modular design is where you make parts and divide them into smaller
parts so that they are easily
replaced

8.
What are key characteristics of a well-designed service system?
User friendly robust sustainable cost effective value to customers single
unifying theme high nquality
reliability linkages between back operations

9.

Lecture 4: Strategic Capacity Planning

10.
What are three questions that strategic capacity planners seek to
answer in organisations?
What kind of capacity is needed?
How much capacity is needed to match demand?
When is it needed?
11.
Compute the utilisation and efficiency rates for the following
scenario:
Mrs. Owen owns 1000 taxi cabs in her taxi company in Barbados.
However, 200 cabs have been
scheduled to go into servicing/maintenance this week and due to a
major storm (last night) 10
cabs were badly damaged.
D.C=1000
E.C=800
A.O=790
EFFICENCY= 790/800
UTLIZATION 790/1000
12.
A manufacturer makes chairs for a local market.
The total facility rental costs are $3000 per month and the variable
costs are $10 per chair. Each
chair is sold at a price of $30 to retailers.
a.
What is the breakeven point?
Profit(P)= TR-TC=RXQ-(FC + v x Q)= Q(R-v) - FC
Qbep= FC/R-vc
=3000/30-10

b.
What will be the profit if 2000 chairs are sold in a month?
c.
1000(30-10)
d.

e.
What is the total cost to the manufacturer if 1500 chairs are
manufactured in a month?
f.
How many chairs were made if the total cost for the manufacturer
were $4000 per
month?

Lecture 5: Process selection and facility layout.

13.
What are the five (5) core process types in POM?
14.
JOB SHOPS print shop customizaed high variety general
equipment, low volume output
15.
Batch Processing produces periodic batches of the same product
moderate volume and variety
Paint production
Repetitive limited variety high vol
Continuous processing high volumke no variety electricity water
Projects non routine jobs

16.
Identify four (4) popular types of facility layouts in POM?
Product Cafeterias Process hospitals Fixed Position building
projects Combination product and process

17.
An assembly line which operates for 7 hours per day, engages in 10
tasks and has a cycle time of
5 minutes. a) What is the output rate for a given day? b) if there is a
need to produce 100 units
per day, what would be the required cycle time for each workstation
assigned?

END OF REVIEW EXERCISE...... GOOD LUCK!!