Table of Contents
Operations Management Old Question Paper Year 2019 | Tribhuvan University | Program BBA
Group “A”
Brief answer questions: [10*1=10]
1) What do you understand by supply chain management?
2) Write the difference between product and service design.
3) Give the concept of value analysis.
4) Mention the importance of ABC classification.
5) Point out four factors affecting location decision of service organization.
6) What is the objective of transportation problem?
7) What is the difference between independent and dependent demand?
8) List down the tools for quality control.
9) Define quality function deployment.
10) Identify the inputs, transformation process, and outputs in the operations system of a Bank.
Group “B”
Short answer questions: [16x 5= 30]
11) What is the importance of layout design in organizations? Describe the basic layouts with example.
12) What is quality? Mention the benefits of total quality management. Explain costs of quality with suitable example.
13) Give the concept of aggregate planning. Discuss on the aggregate planning options.
14) Solve the following linear programming problem using Simplex method:
Maximize Z 6x+ 8y
Subject to
5x +10 y <= 60
4x + 4y <= 40
x, y >= 0
15) From the following table, find the job assignments, which will minimize cost.
| Persons | Jobs | |||
| J1 | J2 | J3 | J4 | |
| A | 20 | 25 | 22 | 28 |
| B | 15 | 18 | 23 | 17 |
| C | 19 | 17 | 21 | 24 |
| D | 25 | 23 | 24 | 24 |
16) ABC Company manufactures light bulbs. The quality control manager has collected the following data from a day’s production to check whether the bulbs work or not.
| Sample no. | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| No. of Defectives | 5 | 3 | 6 | 7 | 4 | 6 | 8 | 4 | 5 | 8 |
Draw a p-chart for the given data and comment about the process.
Group “C”
Comprehensive answer questions:
Read the following case analytically and answer the following question.
Spain-based Mango MNG Holding SL (Mango), the flagship of a group of companies involved in design, manufacture, and distribution of garment and fashion accessories, had more than 2400 stores across 107 countries as of 2012. It also updated its collections all through the year. Mango was quick to react to new trends in fashion, and continuously replenished its stores with garments/accessories that were in vogue. The case discusses Mango’s business model under which it retained some of the core activities of its value chain in-house while outsourcing the rest of the activities. Important activities like design and distribution were managed completely by the company, while manufacturing, which was a labor-intensive task, was outsourced. The company retailed through its own outlets as well as through franchisees. This business model helped the company expand rapidly and also minimize the risks.
The company’s ability to react quickly to changes in fashion and bring out new collections within a short time was attributed to its business model that involved managing core activities like design and distribution in- house while outsourcing non-core, labor intensive activity like manufacturing. When it came to retailing, Mango had own stores, as well as franchisees. This enabled the company to expand to several international markets rapidly. During the first few years (till 1996), Mango concentrated on gaining more knowledge about the business in which it involved and consolidating its product and store concept. It also brought in new technologies to its distribution system. These systems helped the company produce garments and accessories according to market demand. During this time, it consolidated its position in the local market and a few neighboring markets. Mango also defined its brand image, interior design, price, quality, and other aspects, which reflected its brand.
Design was one of the core activities of Mango and it was done in-house at a centralized location in Barcelona. Design was a key element in Mango’s activities and was reflected in all aspects of its business, right from the design of the clothes and accessories to the design and interiors of stores, displays, catalogues, and even the carry bags given to customers. Mango used several proprietary systems to determine the number of garments to be produced in each design. All the styles were given a set of traits and assigned a label similarly, all the stores, depending on the geographical location, climatic conditions, social conditions, culture, etc. were assigned different traits. Mango used a proprietary stock replenishment system to match the traits of clothing/accessories with the traits of stores, and determine the types of garments to be sent to different stores.
Manufacturing was completely outsourced at Mango. When it came to sourcing, some of it was done by Mango and the rest was outsourced. As the company grew, by 1988, it had 13 outlets across Spain. It was then that the company realized the need for an improved production and inventory system. In 1994, the company implemented a business management system on which the later versions of the company’s production and inventory management were based. Distribution was a completely in- house activity at Mango. The company had been developing its logistics system right from 1984. Several technologies were added from time to time to update the system. After 2000, Mango concentrated on developing a logistics system to aid its aggressive expansion into international markets. Mango came out’ with a concept of logistics based on speed information, and technology.
The stores of Mango were either owned or franchised. All the Mango stores were located in prime shopping area or city centers. The stores were large enough to meet the interior design, image, and product display criteria set by Mango. They also had huge display windows. Each store was conceptualized by a team of 100 people that included interior designers, architects, engineers, project managers, mangers, and employees.
Analysis attributed Mango’s rapid global expansion to its franchise system. Mango started using franchises right from the time it expanded to Portugal in 1992, with the opening of store in Coibra. The store was a franchises store and was opened for local business person requested for it. This was followed by two stores in France-both franchise stores- at Toulouse and Lyon. Wholly owned shops demanded huge investments and according to Mango, involved high risk too. So, it decided to expand through a strong brand personality, supported by celebrities such as Scarlett Johansson and Kate Moss. Mango has focused on greater internationalization over the past two years, with a special concentration on countries like Russia and China. As a growing number of international fashion brands have entered, Mango has experiencing challenges in the global market.
Questions:
- What are the competitive priorities and operational strategies of the company in global market?
- Comment on the product design, production, and management processes at Mango.
- Discuss on Mango’s in-house and outsourced processes and its advantages and disadvantages.
- Analyze the challenges and opportunities of Mango with the perspective of operation management.
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