MAASAI MARA UNIVERSITY
REGULAR UNIVERSITY EXAMINATIONS
2013/2014 ACADEMIC YEAR
FOURTH YEAR SECOND SEMESTER
SCHOOL OF BUSINESS AND ECONOMICS
BACHELOR OF BUSINESS MANAGEMENT
COURSE CODE: BBM 447
COURSE TITLE: PRODUCTION AND OPERATIONS MANAGEMENT
DATE: 17TH APRIL 2014 TIME: 2.00 – 5.00 PM
INSTRUCTIONS TO CANDIDATES
Answer question ONE and any other THREE questions
This paper consists of 3 printed pages. Please turn over.
Question One
Cadbury Schweppes Production Method
Cadbury Schweppes is a multinational soft drinks (beverages) and confectionery business that is based in the UK. The business is a public limited company. It is involved in the manufacture, marketing and distribution of its many branded products. Cadbury Schweppes now employs over 40000 people and its products are available in almost 200 countries. The company’s products can be divided into:
• Beverages (carbonated soft drinks and non-carbonated soft drinks (waters and fruit juices)
• Confectionery (chocolate products, sugar products, chewing gum)
Much of Cadbury Schweppes’ manufacturing still takes place in the UK, Australia and North Africa. However, in the 1990s the company moved some of its production to Russia, Poland, Argentina and China, countries with emerging economies. To satisfy most of its shareholders, Cadbury Schweppes’ has set out a strategy to help achieve its objective. This strategy consists of:
• Creating strong regional positions through organic growth, acquisitions and disposals
• Developing strong brands through marketing Expanding its marketing share through innovation in products and packaging
• Regularly updating its product portfolio
Production
Despite manufacturing its goods in large quantities, Cadbury Schweppes uses batch rather than flow production methods. The company must ensure the products are of high quality. Not only are there strict
laws about how foodstuff is made, but also Cadbury Schweppes would not want to damage its reputation by allowing inferior products to be sold. Cadbury Schweppes undertakes extensive research and development (R&D) to develop new products and to find ways of manufacturing existing brands more
efficiently. Cadbury Schweppes uses the services of a specialist R&D business based at Reading for its UK confectionery business
In the case study it is stated that Cadbury Schweppes uses batch production methods to make its products and that it is important the products are of high quality. Based on the information provided
(a) Describe the differences between batch and flow production. (10 Marks)
(b) Critically evaluate the reasons why Cadbury Schweppes uses batch production when making chocolate bars. (10 Marks)
(c) Discuss which of the following two quality control methods would be better for Cadbury Schweppes:
i) Checking samples of the products after they have been made (5Marks)
ii) Making workers responsible for the quality of their own work
(5 Marks)
Question Two
a) Explain how JIT can be used to manage inventories in an organization to make it competitive. (5 marks)
b) Discuss the importance of business integration. (10 marks)
Question Three
a) Explain the various considerations in selecting a production process. (5 marks)
b) Discuss the five principles of lean management. Use relevant examples. (10 marks)
Question four
a) Explain four information technologies that are used to transform operations in an organization with desire to creating value for customers. (7 marks)
b) When using the MRP system in managing inventories a master production schedule is important. Describe the role of a master production schedule. (8 marks)
Question five
a) Explain the concept of capacity planning. (5 marks)
b) The design capacity for engine repair in our company is 80 trucks per day. The effective capacity is 40 engines per day and the actual output is 36 engines per day. Calculate the utilization and efficiency of the operation. If the efficiency for next month is expected to be 82%, what is the expected output? (5 marks)
c) Explain how a hospital service delivery system can be designed to be mistake proof. ( 5 marks)
