OBJECTIVES

1. Where does the term ‘operations’ originate from?

A. Engineering
B. Transformation
C. Military ✓
D. Agriculture

2. Which phase below does not concern the function of operations management?
A. The procurement of outputs for consumption ✓
B. The production of goods and services
C. The management of resources and inputs
D. The distribution of finished goods and services

3. In developing an operations strategy, the organization needs to take into consideration

the following factors except?
A. The level of technology that is or will be available
B. The required skill levels of the workforce
C. Degree of vertical integration in terms of the extent to be using outside suppliers
✓
D. The amount of money available in the organization’s budget

4. A group of related tasks with specific inputs and desired outputs defining the ways that
the products should be produced or service delivered is referred to as what?
A. Operations management strategy
B. Operations management system
C. Operations management process ✓
D. Operations management function

5. Zero defects in manufacturing is which of the following?

A. An unobtainable and misleading ideal
B. The goal of total quality management ✓
C. Readily achievable in all areas
D. A relevant goal only in production assembly

6. That part of the workplace where there is no customer interaction but technical
workforce is called what?
A. Technical office
B. Back office ✓
C. Primary office
 D. Secondary office

7. Which of the factors below best describes the direct focus of operations management
function?
A. The consumption of goods and services
B. The manufacture of goods of all types
C. The production and delivery of goods and services ✓
D. The provision and delivery of all types or services

8. An operation can take which of the following transformation processes?

A. Psychotherapy
B. Psychological ✓
C. Psychoanalysis
D. Psycho-transformation

9. Change in form utility is to manufacturing and change in state is to which utility?

A. Possession
B. Ownership
C. Location
D. Service ✓

10. The rate of accuracy between the time and order is placed and when it is produced and
delivered is known as?
A. Speed ✓
B. Dependability
C. Quality
D. Flexibility

11. Flexibility in operations is of different types as below except?

A. Delivery
B. Product
C. Service
D. Distribution ✓

12. All the factors below are primary functions within a business operations except?
A. Operation
B. Finance
C. Marketing
D. Ergonomics ✓
13. A group of elements working in an integrated fashion towards set of objectives is known
as what?
A. A system ✓
B. An activity
C. An operation
D. A service

14. Which term below is not an activity of operations management?

A. Procurement
B. Purchasing ✓
C. Production
D. Capacity

15. Which phase below best describes the term quality?

A. Goods and services that are in good condition
B. Goods and services that fit their purpose of purchase ✓
C. Goods and services available in all varieties and assorted types
D. Goods and services delivered at appropriate and promised times

16. Cost of production in organizations could best be saved from all areas below except?
A. Services ✓
B. Personnel
C. Materials
D. Machinery

17. Which factors below is an advantage of high quality operations?

A. No wastage of time
B. No wastage of efforts
C. Provides flawed products
D. Avoids having to redo things ✓

18. Which factor below is an advantage of fast speed in operations?

A. Provide flawed products
B. Reduce level of in-process inventory ✓
C. Increase depth of inventory
D. Increase administrative overheads
19. The task of ‘operationalizing’ business strategy is performed by?
A. Strategic management function
B. Operations management function ✓
C. Business management function
D. Tactical management function

20. Which factor below is an advantage of a dependable operation?

A. Eliminates wasteful disruptions ✓
B. Allows micro operations to flow inefficiently
C. Springs unwelcome surprises to customers
D. Failure to deliver as planned

21. Which of the factors below is not an advantage of flexible operations?

A. Adapt to changing circumstances
B. Avoid disrupting other operations
C. Quickly change over between tasks
D. Wastes time and capacity ✓

22. A company’s relative position in a market place in terms of how it competes with other
firms in the industry is referred to as what?
A. Competitiveness ✓
B. Market advantage
C. Location advantage
D. Growth advantage

23. Organization’s ability to change in line with change in the requirements of customers is
regarded as what?
A. Quality
B. Speed
C. Flexibility ✓
D. Dependability

24. What is the core function of organization’s primary activities notwithstanding the type
and nature?
A. Total quality management
B. Service management
C. Operations management ✓
 D. Marketing management

25. Minimizing of the time interval that customers need to wait in order to receive their
ordered products is known as what?
a. Quality
b. Speed ✓
c. Flexibility
d. Dependability

26. In Operations Management, primary outputs entail finished goods and services.
a. True ✓
b. False
c. All of the above
d. None of the above

27. The outputs of tangible nature as produced by organizations are called what?
a. Manufacture
b. Supply
c. Goods ✓
d. Services

28. A group of elements working in an integrated fashion towards a set of objectives is

called what?
a. JIT Philosophy
b. Operations concept
c. Capacity function
d. Systems concept ✓

29. The term ‘Operations’ can take many different forms as listed below except one which
is:
a. Exchange
b. Physiological
c. Psychological
d. Sociological ✓

30. Regardless of what the organization is doing, which of these activities is its core
function?
a. Marketing
b. Operations ✓
 c. Finance
d. Strategic function

31. That part of the organization which is concerned with the transformation of range of
inputs into required outputs having the requisite quality level is called:
a. Systems function
b. Finance function
c. Strategic function
d. Operations function ✓

32. Manufacturing of one or few quantity of products designed and produced as per the
specification of customer within prefixed time and cost is known as
a. Batch concept
b. Mass operations
c. Lean operations
d. Job shop ✓

33. The production that goes for 24 hours per day, 7 days in a week, 4 weeks in a month, 12
months in a year, etc. is called
a. Continuous process
b. Lean process
c. Mass process✓~
d. Batch process

34. The production process which yields large quantities if outputs for stock over a long
period is called what?
a. Continuous process
b. Lean process
c. Mass process ✓
d. Batch process

35. Which of the following is not a practical example of pure service operation?
a. Financial advice
b. Counseling service
c. Teaching service
d. Library service ✓

36. Which of the following is not an example of an operating system?

a. Retail shop system
 b. Patient surgery process ✓
c. The bike system
d. College system

37. The configuration of resources combined for the provision of goods and services is
called what?
a. Forecast system
b. Just-in-time system
c. Operating system ✓
d. Information system

38. The transformation system converts inputs in order to provide output as required by
customers.
a. True ✓
b. False
c. All of the above
d. None of the above

39. The systems provides a framework for both grasping how a decision situation arises and
how to make such decisions in the most realistic, effective and efficient way.
a. True ✓
b. False
c. All of the above
d. None of the above

40. All the factors below are examples of inventory keeping costs except one which is?
a. Movement costs
b. Holding costs
c. Ordering costs ✓
d. Keeping costs

41. Which of these is a major approach to stock or inventory control on an organization?

a. Maximum level
b. Capacity level
c. Re-order level
d. Periodic review ✓

42. Anybody in an organization who touches resources around him/her is an operations

manager.
 a. True
b. False ✓
c. All of the above
d. None of the above

43. The facility that organizes and manages an institution’s business process by sharing
information across function areas is called what?
a. Software database
b. Business process re-engineering
c. Enterprise resource planning ✓
d. Inventory management

44. The continuous business process of holding any resource of an organization over a
period of time for a reason of efficiency in operations and delivery process is referred to
as what?
a. Software database
b. Business process re-engineering
c. Enterprise resource planning
d. Inventory management ✓

45. Part of the workplace where customers interact indirectly with workers is called what;
a. Internal office
b. External office
c. Front office
d. Back office ✓

46. A management approach of an organization centered on quality inspection by the

participation of a separate group to improve on the quality of the outputs is called
what?
a. Total Quality Management ✓
b. Quality Circle Approach
c. Modern Quality Method
d. Quality Control Method

47. One-of-a kind production directed a particular customer with decisive beginning and
end is known as what process?
a. Project ✓
b. Mass
c. Continuous
 d. Job shop

48. Which part of the organization’s functions performs the task of ‘operationalizing’ their
strategy?
a. Strategic
b. Quality
c. Operations ✓
d. Tactical

49. The following factors are examples of production planning strategies except one which
is?
a. Subcontracting strategy
b. Level strategy
c. Chase strategy
d. Operations strategy ✓

50. The following factors are examples of internal customers of organizations except one
which is?
a. Employees
b. Employers ✓
c. Staff
d. Workforce

ESSAY

1(a). “Due to its complex and vast nature, the term ‘operations management’ is often confusing
to most scholars in their efforts to understand and write about the course” study manual on
Operations Management by Udeh, E. (2018). In your present capacity as a student of operations
management, how do you elaborate on the subject to the understanding of your audience who
has no prior knowledge of operations management using five most relevant approaches? (16
marks)

Answer

In answering this question, I will start by giving the definition of operations, management and
Operations Management (OM).
Operations – This simply means the transformation process by which inputs are transformed
into output through value addition. And management can be define as a process of appropriate
use of people and other resources in order to achieve the most efficient and effective result.

Management can also be defined as the process of appropriate use of resources in order to
achieve a result. And when the two (2) terms are combined that is operations management.

Operations Management (OM) – This can be defined as the design, execution and
improvement of the systems that create and deliver the organization’s primary outputs. In my
capacity as operations management student below are the five various definitions of operations
management with thorough analysis at each definition. These are:

i. Operations Management as a transformational process

ii. Operations Management as a surgery in the hospital theater
iii. Operations Management as a department or unit or function within an organization
iv. Operations Management as an overall business activity
v. Operation Management as a primary business activity

i. Operations Management as a transformational process – The word operations

itself could denote a process that transforms inputs into outputs. This means the
process involved in the conversion of resources ‘as input’ into semi-finished or
finished goods and services ‘as output’.

ii. Operations Management as a surgery in the Hospital Theater – In the medical field
and Hospital Theater, the surgical work done on patients could be referred to as
operations. This is the medical terminology for operations. It looks as the entire
process or activity of cutting the part of a body to repair or remove the problem or
an anomaly in the body system.

iii. Operations Management as a department or unit or function within the

Organization – By this definition of operations management it means operations is
 the name often given to one of the main component parts or functional areas of an
organization. It is usually identifiable on the organogram or organizational chart. The
department or function that is responsible to produce most of the revenue
generating outputs of an organization.

iv. Operations Management as an overall business activity – By this definition, the

word operations is used as a near synonym for business. This means the whole lot of
an organization’s overall activities in one geographical area could be referred to as
its operations. Example NRA operations, NASSIT operations, Celtel operations, the
operations of IPAM etc.

v. Operations management as a primary business activity – In this short definition of

operations management, the term operations is used to refer to a company’s
primary ongoing business activities or it also refer to what actually a business is
engaging in either production of tangible goods or rendering or services.

1(b). Explain with practical examples any six (6) basic forms that the concept of operations can
take. (9 marks)

Answer

Operations can take many different forms but below are six (6) of them

i. Physical Transformation Process – The conversion of input resources for the

production of desired outputs. In this case, there is value addition to the
imputed materials in that, the input can be different from the output after going
through the manufacturing/production process. For instance, in the
manufacturing sector, palm oil and soda can be converted to give an output of
soap.
 ii. Locational Transformation Process – The movement of resources from one
place to another. For instance, in the transportation industry can be moved
from one desired location to another using any suitable transportation means.

iii. Exchange Transformation Process – This form of operation involves

transactional activities; as in marketing transactions.

iv. Physiological Transformation Process – Involves processes that occur in

healthcare services.

v. Psychological Transformational Process – Involves processes that occur in

entertainment activities.

vi. Informational Process – The activities involved in the transfer of

information/data in communication industries.

2(a). Compare and contrast between the concepts of mass and lean operations showing their
similarities and differences within the context of an organization of your own choice. (9 marks)

Manufacturing of discrete parts or assemblies using a continuous process are called mass
production. This production system is justified by very large volume of production. The
machines are arranged in a line or product layout. Product and process standardization exists,
and all outputs follow the same path. ‘Mass production’ is where products are made ahead of
demand and stored to await customer order.

On the other hand, Lean Operation means adopting the flexible production system. It is the
production-oriented type of operation. In the other hand, the lean concept is all about flexibility
and accuracy in the production process. Here organizations adapt to the system of producing
only those items that have been ordered by customers. It is the customer-oriented production
system. As consumer tastes, fashion and choice change, the producers or suppliers change in
what they offer. In this case, everything is lean, which include lean production planning, lean
manufacturing, lean distribution, lean retailing and lean supply chains.

2(b). Highlight only two each of the strengths and weaknesses of the mass and lean productions
system in that organization (8 marks)

Detail STRENGHTS WEAKNESSES

Mass 1. Material handling can be completely Line layout needs major

Production automatic change with the changes in

the production design
2. Flow of materials, components and parts is Breakdown of one machine
continuous and without any back tracking will stop an entire
production line
Lean 1. It only caters for necessary units of the Nothing will be produced

Production item to be provided in necessary quantities until and only at the time
and precisely at necessary times when it is needed
2. Adopts the application of minimal When forecasts fail, the
inventories of raw materials, work-in-progress whole concept of lean fail.
an finished goods

2(c). In your own words, examine the philosophy of ‘Just In Time (JIT)’ alongside its benefits or
otherwise to your chosen organization. (8 marks)

Answer

The concept of JIT could be defined as an embodiment of the philosophy of excellence to

establish demand-pulled inventory practices that produce to design specifications at rapid but
smoothed delivery rates with zero idle time inventories, zero unnecessary lead times and
increased employee involvement in the entire process. So, the means of providing what is
needed at exactly when it is needed and as or how it is needed is the philosophy of ‘Just in
Time’, otherwise known as ‘JIT’.
Benefits of JIT Philosophy

JIT operations are aimed at achieving several benefits among which are:

i. Reduced inventory or stocks with high cost savings

ii. Improved quality of materials and products
iii. Lower costs of materials and overall production
iv. Shorter lead times
v. Reduced space requirements
vi. Increased productivity

Problems of JIT philosophy

The problems of JIT philosophy can be summarized as follows:

i. Initial high cost of investment and implementation

ii. High rate of time needed to achieve the results of improvement
iii. Reliance on dependable supply and perfect quality of materials from suppliers
iv. Difficulty of successfully reducing set up times
v. Lack of initial commitment within the organization
vi. Lack of motivation, co-operation and trust between the employees.

3(a). Carefully conduct a comprehensive analysis between the traditional and modern
approaches to quality management using an organization of your choice as a case study.
(14marks)

Answer
3(b). How do you justify of dispute the statement that ‘preventive costs are preferable to
curative costs’ in your efforts to manage the costs involved in achieving high quality results in
that organization? (11marks)

Answer

Several costs are incurable in all efforts to achieve the required quality results in the operation
of an organization. Preventive Costs or Cost of Prevention entails all costs incurred by an
organization in its efforts to prevent effective goods and services from being produced. It also
includes the activities that could be implemented to avoid defective goods and poor services
from occurring in the first place. Such activities are:

 Investment in equipment, machinery, component parts and other facilities that are
geared towards improving the performance of the operations and avoidance of
problems within the process.
 Investment in the process technology and control of the product or service.
 Investment in education, training and development, skill and capacity of workers to
perform better and avoid the mistakes that may lead to poor quality outcome or
performance.
 Quality planning and general management costs as in problem-solving teams,
development of new procedures, new equipment design and reliability studies,
information systems costs and other miscellaneous costs on quality.

Investment here is generally advisable in organizations because the returns or benefits are
very high. Such benefits include the increased customer satisfaction and continued loyalty
from the quality performance and assurance.

On the other hand, cost of failure or curative cost concerns all non-conforming and or non-
performing products. All costs incurred on them and the costs associated with evaluation and
disposition of customer complaints are in this group. They could be possible by way of
compensations, discounts, inducements, etc. they are further classified into two subgroups
which are:
 i. Internal Failure Costs – These are costs that are incurred when defects or
rejections are produced within the system. They are internal to the
organization because they are normally discovered and if possible amended
or corrected before products are delivered to the customers. For example,
scraps, rework, repair and all costs of corrective action, yield losses due to
process variability, disposition of the defective items etc.

ii. External Failure Costs – This group includes all the costs that are incurred
after the products have been delivered to the customer. So, it means delivery
has been completed before the defects are discovered. Most organizations
try to avoid this type of product failure. For example, cost of and carriage for
returned goods, warranty charges and claim costs or product recall costs,
legal expenses and product liability costs from lawsuits and settlements, etc.

In overall cost of quality, prevention provides significant reduction of all other costs
and leads the organization to better results. Thus, it is preferred to failure because
of its reasonable return. Hence, a very popular saying that ‘Prevention is better than
cure’ meaning that, preventive costs are preferable to curative costs in ensuring
quality in the organization.

4(a). Conduct a thorough examination of the software database program that could be used by
your institution to organize and manage your business process by sharing information across
functional areas and in some cases with your customers and suppliers. (12 marks)

Answer
A preferable software I will prefer my institution to use in order to organize and manage our
business processes and share information across functional areas and with our customers and
suppliers will be Enterprise Resource Planning (ERP) software.

Enterprise Resource Planning (ERP) refers to the software that organizes and manages a
company’s business process by sharing information across functional areas. It provides a firm
with a common software infrastructure and database. It is a fully integrated software system
that links all the major functional areas within an organization.

Previously, staff of program developers wrote their business applications from scratch or they
developed interfaces to allow prepackaged applications from several vendors to pass data back
and forth as necessary to complete business transactions throughout the institution. However,
this old process was costly, time consuming and prone to error. Cross functional
communication was difficult, and managers could not get comprehensive view of how the
business was doing at any point in time.

With the ERP, a company could integrate the different functional areas like Accounting, Sales,
Distribution, Manufacturing, Purchasing, Human Resource Management and other transactions,
into one software application. It enables transactions to be synchronized within the entire
system. Data input once from any source into the ERP system need not be reconciled with
other areas. It helps companies manage resources efficiently. It simplifies customer interaction
and speeds up production with it configure to order capabilities.

Obstacles to ERP include but not limited to the following:

i. Lack of communication
ii. Lack of proper training
iii. Conflict of interest
iv. Security of information
v. Lack of proper maintenance
vi. Lack of top management commitment and support
vii. Lack of adequate resources/high cost of resources
viii. Absence of total involvement
4(b). State the key objective and explain only five (5) benefits of an enterprise resource
planning to the organization that you have chosen. (13 marks)

Answer

The major objective of Enterprise Resource Planning (ERP) is to provide a company with single
and uniform software platform and database that will facilitate transactions among the
different functional areas within a firm and in some cases, between firms and their
customers/vendors.

Benefits of ERP

ERP fully justifies its investment of time, labor and money by offering the company with the
following benefits:

i. Reduction of Errors – Reduction in the number of errors is possible using a common

database.

ii. Response Times – Customer response time is facilitated as fast as possible. It

enables very fast speed in organization’s operations.

iii. Order Fulfillment Times – Effective dependability of order delivery is possible.

iv. Better Overall Communication – it enables free flow of unhindered information

within and across the entire organization.

v. Faster Decision Making – It enables the organization with faster decision making in
all their activities.
5(a). As an Operations Manager of IPAM – USL, discuss the two methods that you can adopt to
effectively and efficiently manage and properly control your inventory in the organization
bringing out two strengths and two weaknesses in each case. (15 marks)

Answer

The term ‘Inventory (Stock) Control and Management’ refers to the operation or activity of
determining the range and quantities of materials which should be held by an organization, and
the regulation of receipts and issues of such materials to the best advantage of the
organization. It is important to properly manage inventories in any organization for good
results.

Below are two methods to effectively and efficiently manage and properly control an
organization’s inventory:

1. Action Level Method– This is the basic method of controlling stock by quantity for best
advantages in stock management for the organization. In this approach, a stock level is
fixed for commodity. This fixed level is recorded in the stock control system. Such level
as recorded is subsequently used as an indicator that action is necessary. Many levels
exist, but fundamental control levels are;
a. Maximum Level
b. Ordering Level
c. Hastening Level
d. Minimum Level
e. Zero Level

The presence of all these in a system may not be necessary. Any or all of them may be
applicable in any situation; it all depends on the materials concerned, the facilities used to
maintain the stock and the organizational system involved. However, fixing too many levels
makes the stock work unduly complicating, whereas fixing sufficient levels may lead to
avoidable mistakes and unexpected shortages of stock.
 2. Periodic Review Approach – This approach means examining either the physical stock
or the stock records for a particular class of commodity at regular intervals. Then taking
simultaneous action for all times requiring replacement. It may be done at intervals of
monthly, bi-monthly, half yearly or yearly. Here if there are significant or unexpected
variations in consumption, when deliveries are delayed, there may be a danger of stock-
out. Or if consumption unexpectedly declines suddenly, such stock can be excessive. For
instance, if an order is placed for all stationery items or computer accessories, covering
say for period of five months use or requirements instead of placing orders from them
separately. To take such advantage, periodic review or cyclical provisioning may be
necessary.

5(b). Identify and explain four (4) types of inventory that can be found in the operations of an
organization of your choice. (10 marks)

Answer

At IPAM-USL, the type of inventory to be held is normally determined by the various reasons
why they are being kept, the nature and type function that needs them, and the circumstances
or conditions of the operation.

1. Buffer Inventory (Safety Inventory) – In most operations, demand can never be

forecasted with certainty and accuracy, hence the need for stock to be on the safe side.
The system always maintains a minimum level of inventory to take care of possible
unknown developments and eventualities. The major purpose here is to compensate for
uncertainties inherent in supply and demand activities. It permits certainty in operations
without stoppage no matter the difficulties.

2. Cycle Inventory (Lot Size/Batch) – This becomes necessary out of the different stages of
operation cannot supply equal or simultaneous quantities of items required in some
cases. Example, bread baking or different types, sizes and brands cannot be done in
batches at the same time. Hence each type, size or brand should be done in batches or
 lots in order to meet the desired demand level. In such cases, stock is needed for each
type or brand to be made to compensate for the irregular supply of each one at the time
of their need.

3. Anticipatory Inventory - This type of inventory is used for the compensation of

differences in the timing of supply and demand. It entails making and storing products
ahead of demand for future sales or deliveries to meet seasonal, peak and emergency
sales/needs. It could normally be kept for significant and readily predictable future
demand.

4. Pipeline Inventory – The fact that materials or goods cannot be transported

instantaneously between the point of supply and point of demand gave rise to this type
of stock keeping. For any order to be supplied there will normally be some processes
involved in going through like ordering, sorting, packaging, loading and transportation or
freight. Then it eventually gets to delivery and unloading at the point of demand.
Beginning from the stage of sorting –when items are ordered or allocated or reserved
for the buyer, those items are no longer available for any other user. Right from this
stage to the point of delivery and or hand over to the new owner, the stock is called
Pipeline inventory.

Q1.a. “The term operations management is often confusing to most scholars while getting
introduced to the course due to its complex and vast nature” study manual on operations by
Udeh, E. 2014. In your capacity as operations management student, Define Operations
Management and explain your definition using five (5) different approaches (18marks)

Q1.b. Explain the two types of operations management function obtainable in Sierra Leone with
practical examples.

ANSWER TO Q1a
In order to answer such a question, I would like to start by giving the definition of Operations
Management (OM).

By Operations – This simply means the transformation process by which inputs are transformed
into output through value addition. And management can be define as a process of appropriate
use of people and other resources in order to achieve the most efficient and effective result.
Management can also be defined as the process of appropriate use of resources in order to
achieve a result. And when the two (2) terms are combined that is operations management.

Operations Management (OM) – This can be defined as the design, execution and
improvement of the systems that create and deliver the organization’s primary outputs. In my
capacity as operations management student below are the five various definitions of operations
management with thorough analysis at each definition. These are:

i. Operations Management as a transformational process

ii. Operations Management as a surgery in the hospital theater
iii. Operations Management as a department or unit or function within an organization
iv. Operations Management as an overall business activity
v. Operation Management as a primary business activity

i. By Operations Management as a transformational process – The word operations

itself could denote a process that transforms inputs into outputs. This means the
process involved in the conversion of resources ‘as input’ into semi-finished or
finished goods and services ‘as output’.

ii. By Operations Management as a surgery in the Hospital Theater – In the medical

field and Hospital Theater, the surgical work done on patients could be referred to
as operations. This is the medical terminology for operations. It looks as the entire
process or activity of cutting the part of a body to repair or remove the problem or
an anomaly in the body system.
 iii. By Operations Management as a department or unit or function within the
Organization – By this definition of operations management it means operations is
the name often given to one of the main component parts or functional areas of an
organization. It is usually identifiable on the organogram or organizational chart. The
department or function that is responsible to produce most of the revenue
generating outputs of an organization.

iv. Operations Management as an overall business activity – By this definition, the

word operations is used as a near synonym for business. This means the whole lot of
an organization’s overall activities in one geographical area could be referred to as
operations. Example NRA operations, NASSIT operations, Celtel operations, the
operations of IPAM etc.

v. Operations management as a primary business activity – In this short definition of

operations management, the term operations is used to refer to a company’s
primary ongoing business activities or it also refer to what actually a business is
engaging in either production of tangible goods or rendering or services.

ANSWER Q1b

By examining or critically looking at the two main types of operations management in Sierra
Leone with practical examples, basically there two (2) and these are:

1. Manufacturing Industries or Companies – Manufacturing operations deal with the

operation and selling of tangible goods or product. Examples of manufacturing
industries are: agriculture, forestry and fishery, mining, construction etc. in such
operations or businesses they input (raw materials) and produce tangible product and
visible objects.

2. Another operations management obtainable in Sierra Leone is Service Companies –

These are companies who basically do not involve in producing tangible objects or
 product as output. They are companies or industries that deal with non-manufacturing
operations or service type operations.

And I would like to distinguish between those operations that involve pure service
rendering.

By Pure Service Operation – These are service operations wherein their output or end
result is completely intangible in nature. Examples: telecommunication companies in Sierra
Leone such as Africell, Orange, Qcell.

Non-Pure Service Operations – These are service operations that produce tangible outputs
as a product. Examples: distributors, mail service, library services, etc.

Q2.a. As the Managing Director of Sierra Leone Brewery Limited (SLBL), identify and explain
your operation with only three resources involved. (8marks)

Q2.b. Examine the four functions that the operations of SLBL will possibly perform for you
in particular and the society at large.

ANSWER TO Q2a

As a managing director of (SLBL) Sierra Leone limited the following are the three (3) main
resources such as:

1. Material resources
2. Machine resources
3. Labor resources

1. Material Resources – These are physical items used by the system, example: raw
materials, fuel energy and other indirect materials.
 2. Machine Recourses – These are the physical items used by the system example: plant,
equipment, computer, tools, vehicles, buildings etc.

3. Labor Resources – These are the people who provide or contribute to the operations of
the system without whom neither machines nor materials could effectively carryout the
operations.

ANSWER Q2b

In order to answer such a question, I would like to start by defining an operating system (OS).

By Operating System (OS) – Operating systems are mechanisms and facilities used to transform
goods and services or inputs into outputs. In other words an operating system is the
combination of resources that create and deliver the organization’s primary output. So this
means that any organization that involves in the production of good and services can be called
an operating system.

Below are the four main functions performed by an operating system namely;

1. Manufacture
2. Transport
3. Supply
4. Services

1. Manufacturing – This function of the operating system refers to the physical change in
form of shape or content of an item or material. Examples: changing cassava into foo-
foo, changing timber into furniture etc.

2. Operating System Performs Transportation – This function of the operating system

refers to the change in location or place utility. Examples: commercial vehicles, motor
bikes, ambulance.
 3. Operating System Performs Supply – This function of the operating system is simply the
change in ownership or possession of an item. In this function the output might be the
same as the inputs but most important here is the ownership or possession is being
changed.

4. Operating System Performs Service Delivery – This definition also serves as function by
which the operating system performs when someone is accommodated, treated, like in
the hospital, hotels, restaurants, etc. it is the change in state utility.

Q2.c. State only five (5) basic forms of transformation that an organization’s operation function
can take

ANSWER TO Q2c

An operation’s function can take various forms, but below are the five forms or ways by which
an operations function can take; they are:

1. Operations function can take the form of physical transformation process, like in the
manufacturing sector.
2. Operations function can take the form of locational, like in the transportation service
sector.
3. Operations function can also take the form of an exchange, as in marketing transactions.
4. Operations function can take the form of a psychological nature that is the
entertainment centers.
5. Operations function can take the form of a physiological nature that is in the health care
services.

Q3.a. Discuss any five (5) contributions that operations management is making to your society
(10 marks)
ANSWER TO Q3a

Before going to talk about the five contributions that operations management is making to the
society at large, I would start with the meaning of Operations Management (OM).

Operations Management simply means the design, execution and improvement of the systems
that create and deliver the organization’s primary outputs. The term in the definition simply
means the combination of resources that deliver the organization’s primary output.

Below are the five contributions that operations management is making to the society there
are:

i. Basic necessities of life

ii. Better quality goods and services
iii. High standard and low cost of living
iv. Improving working conditions
v. Economic growth and improvement

i. Basic Necessities of Life – The essential requirements of life which include the food
we eat, clothes we wear, materials we use during lectures and the services we
consume like transportation, movies we watch houses we live in for shelter are
necessary for all aspects of our day to day activities.

ii. Better Quality of Goods and Services – The increase in competition in addition to
the continuous changes in customers’ needs have caused operations to provide high
quality products and services. The essence is of great benefit to consumers.

iii. High Standard and Low Cost of Living – Standard of living simply means the quantity
and quality of items that an individual can be able to consume at a given time.
Whilst the cost of living is what you incur in order to achieve or consume quality
 goods and services. The ability to increase productivity by any country will obviously
play an important role in raising their standard of living.

iv. Improving Working Conditions – operations manager now play greater attention to
the people that actually do the work. Getting them empowered means increased
productivity.

v. Enhance Economic Growth and Improvement – The economy of any country is to a

large extent shaped continuously by the degree of operations management. In an
economy with high degree of operations, there is very high productivity, the GDP
will be very high, standard of living will also be very high and cost of living is very
low.

Q3.b with a well-illustrated diagram, show how the operations function do play the technical,
core or pivotal role using only four primary functional areas of an organization of your choice.

ANSWER TO Q3b

By Operation function as a technical core simply emphasizes the pivotal position and role play
by the operation function or unit or department of an organization. This simply means that
operation function or department or unit is the center of every activity carried out by an
organization. Below is a well-illustrated diagram wherein the operation department serves as a
technical core within a given organization.

A WELL-ILLUSTRATED DIAGRAM REPRESENTING THE OPERATIONS UNIT OR

DEPARTMENT AS A TECHNICAL CORE IN AN ORGANIZATION
 Human
Resource
(HR)
Department

Accounting OPERATIONS Marketing

and Finance FUNCTION/ and Sales
Department Department
DEPARTMENT

Production
and
Procurement
Department

In summary, the operation function or unit or department involves in all of the other
departments and those departments are interdependent to one another, in order to achieve
organizations stated goals and objectives.

Q4. It is noticed that the operations of Sierra Leone Botany Company limited suffered serious
setback as a result of the Ebola outbreak in the country three years ago. Now that the problem
is over and the economy is recovering, the managing director of the company consults your
service as a student of operations management. You are required to let him understand what
operations strategy is and how he could design an effective operations strategy which will help
him overcome the setbacks and achieve successful results. (15 marks)
Answer

The term strategy to be specific can be defined as a game plan that management uses to stake
out a particular competition, attack and please customers completely, successfully achieve
organizational goal and objectives and on a particular approach to doing business.

And, operations strategy can be defined as a common vision and series of activities that unite
an organization provide consistency in decision and keeps the organization moving in the right
direction towards the achievement of set goals. In order to design and formulate an effective
operations strategy by the managing director various process are involved. Below are main
processes that the managing director must take into consideration. These are

i. Defining a primary task

ii. Assessing core competencies
iii. Determining other winners and other qualifiers
iv. Positioning the firm

In order to analyze each of the following processes above, start by looking at:

1. Defining a primary task – The primary task is simply the purpose of establishing a firm.
That is what the firm or business is doing. It also determines the competitive arena.
Therefore the primary task set by the organization’s managing director should not be
defined to narrowly; for example: Airtel is in the telecommunication not mobile
telephone services only. IPAM is in educational services, not degree awarding institution
only.

2. Assessing Core Competencies – Core competencies are what a firm does better than
any other rival in the industry. It is also referred to as its distinctive competence. A
business’s core competencies can be: Exceptional services of excellence, higher quality
of innate standard etc.
 3. Determining order winner and order qualifiers – A firm or business is in trouble if the
things it does best are not important and acceptable by the customers. And by order
winners simply means the characteristics of a products or services that eventually win
the firm’s products or services. Examples: taking the Tecno phones, the order winners
could be:
 Strong and reserving charging
 Dual SIM space
 Good camera

Also, when we talk about order qualifiers are the characteristics of a product or services that
make it to be considered for purpose by a customer in a given market. For example, taking
iPhone or considering iPhone, order qualities could be:

a) Security of the phone that makes people to buy the iPhone despite the high cost
b) Durability of the phone which mean it can last for long period of time

4. Positioning the firm strategically or Strategically Positioning the firm – No firm can be
all things to all people. A firm cannot provide all things that everybody needs. So
strategic positioning of the firm involves making choices that is choosing one or two
important things on which to concentrate efforts and doing them extremely well. A
firms strategic positioning defines how it will compete in the market place and what
unique value it will deliver to the customer.

Q4.b. In your own words, what does the operation function have to do in order to justify its
continued existence within the business?

ANSWER Q4b.

Operation function coordinates other functions to produce and deliver the goods and services
as demanded by customers for effective satisfaction. Below are the roles and responsibilities of
the operation function in an organization in order to continue existence within the business
organization. There are three main roles an operations function performs; these are:

1. Operations functions performs as the implementer of business strategy

2. It also serves as a supporter of business strategy
3. Operations function also serve as the driver of business strategy

By digressing on operations function that it has to do within a given organization, start by

looking at:

i. Operation function as the implementer of business strategy – Most businesses or

companies will have some kind of strategy but it is the operations function that puts
them into practice. After all, you cannot touch a strategy but it is exist in the
businesses. All you can see is how the operation behaves in the practice.

ii. Operations function as the supporter of business strategy – One key role of
operations function is to support a business strategy. That is it must develop its
resources to provide the capabilities which are needed to allow the organization
achieve its strategic goals.

iii. Operations function as the driver of business strategy – By performing this role,
operations function is giving the business a long term competitive edge. Different
parts of the business have different effects on a company’s ability to succeed and
prosper. It means putting perfect control coordination and evaluation measures to
strategy even while the entire activities are progress to ensure success.

Q4.c. Flexibility and Dependability

Flexibility Objective – Flexibility means being able to change in line with any change in the
requirements of the customer. Organizations need to change their process and output in
accordance with a change in circumstances and expectations of consumers. An indisputable
fact remains that customer expectations/requirements may change with time, hence the need
to change the operations to meet the requirements. This change here refers to the process of
changing what the operation does, how it is doing it or when it is doing it.

Many customers could require as many different products/services as possible. Most

operations need to be able to change to satisfy the various customers’ requirements. Flexibility
speeds up response. It saves time and maintains dependability. The different types of flexibility
include:

i. Product or Service Flexibility: different brands or option of goods and or services.

The operations ability to introduce new products and/or services.

ii. Mix Flexibility: a wide range or mix of products and services. It means the
operations being able to provide a wide range or mix of products and services. Most
operations now produce more than one product. They don’t channel their activities
exclusively to a single product or service.

iii. Volume Flexibility – different quantities or volumes of product and services. The
ability of the operation to change its level of output or activity to cope with the
fluctuation in demand.

iv. Delivery Flexibility – different delivery times. The ability of operations to change the
timing of the delivery of the service.

Dependability Objective – Dependability in this sense means reliability or trustworthiness. It

also refers to the capability of doing things on time for customers to receive their goods and
services as they were promised. Here it could be described as doing things promptly, as
scheduled or agreed. The appointments which organizations have with customers in terms of
goods or service delivery must always be kept. Dependability saves time, money and provides
stability to the organization’s operations. A dependable city bus for example, will always keep
to its published or regular timetable. It will normally pick up passengers at every point on the
journey precisely on schedule. Furthermore, there should be seats available and to the comfort
of passengers who are there to catch the bus. At periodic intervals or each season, the
company will publish its revised timetable on any promised day/time.

Dependability is not a factor that will affect customers’ desire to purchase products or services
immediately. Over time, however, it can override all other criteria. No matter how cheap a bus
service is or how fast it is assumed as being, if the service is always late or unpredictably early,
or it is always full and cramped, then potential customers will be better off using another
transport option. Some operations compete directly on their ability to produce and deliver on
time and yet achieve successful results.

Q4.d. Faster delivery (minimal speed)

The Speed Objective – Speed in operations describes the time interval that customers need to
wait to receive their ordered products or service. It looks at the rate of precision from when an
order is placed to when it is delivered. Efforts here are concentrated on doing things fast.

Speed in the hospital could be described thus;

 The time between requiring treatment and receiving same is kept to a minimum.
 When any possible distress is completely avoided once admitted.
 When patients with less urgent needs are not made to suffer a long waiting list.
 The time for the presentation of test results, x-rays, scans, etc. are very short.

If the time interval in carrying out the above activities in the hospital is kept to a minimum, the
speed is fast. In fact, it is an instant service. But when the factors are lacking, say the required
equipment and expertise for treatment are not available; the likelihood is that the patient will
go elsewhere for treatment.

The main benefit of speed (fast) delivery of goods and services to customers lies in the way it
enhances the operations offering to them. Consequently, for most goods and services, the
faster a customer can have them once demanded, the more satisfied he/she is and the more
likely he/she is to buy again. So, speed objective is particularly important to all organizations.
The speed reduces risks, inventories and costs.