MBA PROGRAM

MASTER OF BUSINESS ADMINISTRATION

OPERATIONS MANAGEMENT (MBA 652) –TAKE HOME EXAMINATION

NAME: __________________________________________ID NO: __________________SECTION: ___________

Instructor’s Name  Instructor’s Name 

Baharan Asrat (Ph.D) Baymot Tadesse (Ph.D)
asratebahr@gmail.com tbaymot@yahoo.com
Berhanu Endeshaw (Ph.D) Hailemicheal Mullie (Ph.D)
berhanu22012@gmail.com makyhaility@yahoo.com

Instructions: Please carefully read the instructions below

1 The exam must be taken completely alone. Checking your exam answers or discussing any of
the materials or concepts with any other person is forbidden. If the students’ exam answers
are found the same, it shall be voided automatically
2 You can work on the exam for 48 hrs. Please submit the exam answer file typed in a word
document or scanned image to your course instructor via email only BEFORE 1:59 PM ON
TUESDAY, MAY 05, 2020. Unequivocally no postponements - Late submissions are totally
unacceptable. The only option for submission is by email. Email problems will not be
accepted for any case. It is your responsibility to make sure that your email works properly
and that your instructors receive the submission on time.
3 While sending the email, write your section and program (extension/weekend) in the
subject line
4 Once exam answer file is submitted for grading, no requests for amendments or
supplements will be permitted.
5 Once you submit your exam answer file, you will receive a confirmation email from your
course instructor. If you have not received confirmation email within two hours of sending
your email, please contact your instructor.

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 Date: May 03, 2020

Maximum Mark: 50%

PART I: SHORT ANSWER QUESTIONS.

Read each questions carefully and present your work clearly and neatly. Each
respective questions has more than one sub-questions, admit accordingly in order to
maximize your marks. YOU ARE REQUIRED TO ANSWER ANY FOUR
QUESTIONS (4 Questions* 5 marks each=20 Marks).

1. Write short notes on the following terms by providing examples.

A. Robust design
B. Concurrent engineering
C. Modular design
D. Reverse engineering
E. Work system design

2. List and discuss at least seven operations management decision areas? Describe
also the recent challenges in operations management.

3. Write notes on the concepts of standardized and customized product by providing

examples. Then explain their benefits and drawback of each respective term.
4. Discuss the concept of facility layout. Then distinguish process layouts and
product layouts by providing examples for each. When the flows of materials are
variable which type of layout (product or process) is recommendable? Reason
out why?
5. What is TQM? Discuss components of TQM?
6. All organizations have in common the following basic elements within their
operations system: input, transformation and output. Describe the inputs,
transformation and outputs for CPU University College. And then explain how
does the concept of operation management works to improve the teaching
learning process in the University College.
7. Define what process selection is. Differentiate intermittent and repetitive
operations clearly. Then explain the types of intermittent and repetitive operations
and also their benefits by providing examples. How do you relate them with mass
customized and standardized products?
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8. Explain the term ergonomics and discuss its objectives and benefits in detail by
providing examples.
9. Write notes on Inventory. Explain why we want to hold inventory at point in time
and avoid holding inventory at other point in time.
PART II: WORKOUT

INSTRUCTION: Solve the following problem in a step wise manner. YOU ARE
REQUIRED TO ANSWER ANY TWO QUESTIONS (2 Questions* 5 marks
each=10 Marks).

1. ABC Company has a demand of 250 units of a new product. Three potential
locations, namely, Mekelle, Bahir Dar and Addis Ababa have the following cost
structures as shown in the table below.
Mekelle Bahir Dar Addis Ababa

Fixed Cost $ 500 $ 1000 $ 1500

Variable Cost $5 $2 $1

Based on the information above, identify the range of output for which each
alternative is superior.

2. A postal office has a package processing center at its head office. The main subsystems
in the package processing center are unloading, sorting, and delivery. The center has 30
employees who unload packages from big trucks that are used to transport packages
from Airport to the company’s head office. Another 20 employees then sort the packages
to make the packages ready for deliveries to different local postal offices in Addis Ababa,
and 40 more employees then load the Vans that are used for local deliveries. Un-loaders
work at the rate of 12 packages per minute, sorters work at a rate of 15 packages per
minute, and loaders take approximately 10 seconds to load each package.
Required:
a) Assuming that the subsystems are operating in series, what is the system capacity of
the package processing center?
b) Compute the systems efficiency of the package processing center, assuming that the
actual number of packages processed per minute during a particular observation was
200.
3. ETH is a manufacturing enterprise produces 200 units that sell for ETB (Ethiopian
Birr) 372/unit. Direct material usage is 1 kg per unit and the material costs ETB
195/kg. 40 hours are required to produce the units; payment is ETB 300/hour.
Indirect manufacturing overhead costs amount to ETB 11,000.

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 a) Compute the material productivity
b) Compute the multifactor productivity?
4. An office furniture manufacturer agreed to deliver 500 arm chairs to CPU
University College at the end of Week 5. Each arm chair requires a seat, a writing
pad, and 4 legs. These components can be bought or processed in house. The
manufacturer has also compiled the inventory record file as seen in the following
table.
Arm Chair Writing Pad Seat Legs

On hand 50 80 60 200
(Beg. Inv.)

scheduled 10 @ 3 0@3 0 0
receipt

0 1 1 1
LLC
L4L 100 L4L Min200
Lot size

Lead time 1 1 1 3
(week)

Based on the given information above, answer the following:

a) Develop MPS
b) Draw Product Structure Tree
c) Process MRP for the finished arm chair and legs

PART III: CASE ANALYSIS (10 Marks)

Tecno forms new corporate structure, merges factories

27 May 2017
By Dawit Endeshaw
The Reporter, Ethiopia

The assembler of the iconic Tecno Mobile and phone accessories in Ethiopia,
Weiguo Yu and Junjie Lui, has formed a new corporate structure by merging its two
factories that are located in Addis Ababa. From now on, the two companies will be
renamed as Transsion Manufacturing PLC. Following the new formation, Transsion
PLC will be under the umbrella Transsion Holdings-China. Tecno Mobile was
established in 2008 in Hong Kong. Tecno which was founded as Tecno Telecom

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Limited later changed its name to Transsion Holdings with Tecno Mobile serving as
one of its subsidiaries.

The Ethiopian version Transsion, in addition to Tecno and itel brand mobiles, will
also include Syinix home appliances. The company has officially announced the
commencement of the new corporate structure, on May 24, 2017 at Hilton Addis.
Ethiopia is the only country in Africa where Transsion Holding has a presence. At the
launching event it was said that the company will no longer handle its product under
two separate companies. Following the merger, Transsion will take all the liabilities
and asset that were under the two plants.

The plants in Alem Gena and Gofa employ over 1,600 people. It has also a
production capacity of producing one million mobile phones and tablet computers in
a month. Over the past four months of this year, it has already exported products
worth some 16.6 million dollars. Last year, the company has managed to export 19.6
million dollars of mobile devices. For the current fiscal year, the company has
targeted to increase its export to 40 million dollars.

Forming its business in Ethiopia ten years ago, Tecno first launch its assembly line
around Meskel Flower. “What we had in mind when we first began our business in
Ethiopia was trade business – importing products and sell the imports to the local
market,” Girma, one of the founders and a partner of Tecno Mobile, said.

However, following a recommendation from the government we changed our

business to manufacturing, he said. The two factories are now under an audit
process by experts from the Ethiopian Revenues and Customs Authority. “I am sure
the process will be finalized in a month,” sources told The Reporter. Following this,
the company will discontinue one of its plants and will move to its plant inside the
ICT village. It is to be recalled that the company is investing close to 20 million
dollars at the park.
In this respect, the company has secured a lease right of 30 years over 20,000sqm
of land for 221 birr per square meter. The plant at the ICT village is now under
construction by a Chinese company called Vanlli. The first phase of the construction
is expected to be finalized next year.

One of the plants – either in Alem Gena or Gofa – will be a dedicated assembler of
refrigerators and other electronics items. The new plant in the ICT village will
accommodate around 2,000 workers. Along with this, the company has planned to
boost its export value to 300 million dollars by the end of the second Growth and
Transformation Plan (GTP-II).

Having the above information, you are requested to provide well elaborated
answer to the following questions. You shall support your answer with

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necessary justifications in accordance with the scientific concepts and
principles.

a) Evaluate this company location decisions by considering important factors

such as investment cost; availability and skills of labor; market, material, local
government regulations; availability and cost of land, availability and quality
of transport infrastructure, utilities supplies ….
b) What is the most appropriate new product design and development
philosophy for this company? Why?
c) What are the most appropriate approach/technique to new product design
and development for this company? Why?
d) Recommend productive process type for this company? Why?