JANUARY 2012
QUESTION 1
‘Operation management is the set of activities that create value in the form of goods and service by transforming inputs into outputs’.
Based on the statement, explain briefly the 10 Operation Management critical decisions i. Design of goods and services ii. Managing quality iii. Process and capacity design iv. Location strategy v. Layout strategy vi. Human resource and job design vii. Supply chain management viii. Inventory, material requirement planning, and JIT(just-in-time) ix. Intermediate and short term scheduling x. Maintenance

QUESTION 2 a) List the 5 goals for ethical and environment friendly product design i. Developing safe and environmentally sound practices …show more content…

b) A larger architect firm uses an average of 50 boxes of copier paper a day. The firm operate 260 days a year. Storage and handling cost of the paper are RM40 a year per box. It cost RM70 to order and receive the shipment of paper. i. Calculate the economic order quantity (EOQ)
EOQ =2DS/ H =2507040 =700040 =175 =13.23 ii. Calculate the total annual cost

iii. Calculate the optimal number of order per year

iv. Calculate the optimal number of days between any two orders
Optimal no of day between any two order = no of working days per year / N =260 / 3.78 =68.78 days between order v. The office manager is currently using an order size of 250 boxes. The partner of the firm expect the office to be managed ‘in a cost-efficient manner’. Would you recommended the office manger to use the optimal order quantity instead of 250 boxes? Justify your answer in term of annual cost saving.
EOQ =2DSH =2507040 =3500040 =875 =29.58
Optimal order quantity =

QUESTION 5 a) Define Total Quality Management(TQM)
TQM is a management philosophy that seek to integrate all organization function (marketing, finance, design, engineering, and production, customer service, etc. ) to focus on meeting customer need and organizational objective. Management of an entire organization so that it excels in all aspect of product and service that are important to the customer.

b)