Question 1

A cupcake manufacturing organisation use a 'management by exception' technique when it comes to planning and control. What does this mean?

Options :

A : audits and other control activities are completed by an outsourced company to ensure there is no bias in the investigations

B : reporting only takes place when non-compliance occurs

C : plans and control activities are created based on historical performance

D : exceptional performance is rewarded, for example through staff bonus schemes

Answer: B

Question 2

Risks are always present within organisational strategies and it is important that they are assessed. Which of the following are strategies for dealing with risk?

Options :

A : avoid, eliminate, reduce, transfer

B : terminate, escape, eliminate, destroy

C : escape, eliminate, evade, end

D : track, control, mitigate, reduce

Answer: A

Question 3

Below are brief descriptions of 5 organisations operating in the manufacturing sector. Each organisation creates a different product and is engaging in a different operational strategy. For each organisation, select the product type described as per the Boston Consultancy Group Matrix and the organisational strategy.

Organisation 1: This is a new product which has just launched into the market. It currently has a small market share but the business is confident that it has a high potential for market growth. There is a long-term commitment to improving quality with an emphasis on manufacturing infrastructure.

Organisation 2: This product has been on the marketplace for many years and the organisation believes that there is no further room for growth in market share. As it is currently the market leader, the organisation benefits from economies of scale. The manufacturing process has, over the course of the years, eliminated all waste from the processing of the item which has contributed to a high profit margin.

Organisation 3: This product has a high relative market share and high potential for growth. The organisation is required to invest heavily in this product to ensure its continued success. They have therefore created a specialist team to create innovative ideas to improve quality and reduce waste in the manufacturing process.

Organisation 4: The organisation is carefully considering whether to continue to make this product as it has a low return on investment, low market share and low potential for growth. The company is considering starting from scratch in order to streamline production and decision making.

Organisation 5: This product is difficult to manage. It has the potential to become a market leader and sales are increasing, but there is heavy competition. The organisation will use a process technology strategy which will include all staff and all departments and have an impact on the development of systems and procedures.

Complete the table below. Some answers may be used more than once: Star, Problem Child, Dog, Cash Cow, Total Quality Management, Six Sigma, Business Process Reengineering, Lean.

Which of the following will you put into box 5?

2022-12-23-12-39-44-e322ee980510ddf3b5264c697596624d

Options :

A : Star

B : Problem Child

C : Dog

D : Cash Cow

Answer: B

Question 4

LTL Ltd is a manufacturing organisation that produces made to order equipment for the construction industry such as bespoke windows and doors. The Head of Operations has received four large orders of windows and doors and is considering the sequencing of when the orders should be made. Which of the following should the company do?

Options :

A : Use a First Come First Serve system to prioritise the orders that were made first. This will ensure customer satisfaction

B : Sequence the orders in the way that will be the cheapest to produce so as to create the highest profit margin

C : Create the orders in the most logical, economic and fastest pattern. This may mean that the first order received is the last to be produced

D : Start manufacturing the order that has the longest time to complete first so all orders are ready at the same time.

Answer: C

Question 5

XYZ Ltd is a manufacturing organisation which buys raw materials from ABC Ltd including, but not limited to rubies and gold. These materials are used in the manufacturing of jewellery and watches. XYZ Ltd accepts all orders of the materials provided as they are rare. The supply relationship is therefore one-sided. Which type of network best describes this relationship?

Options :

A : proprietary

B : centralised

C : asymmetric

D : symmetric

Answer: C