SectionAAnswer3Qsoutof4 SectionBAnswer1Qoutof2 Section A Answer 3 out of the 4 questions:

Question 1 The resource-based view of the firm is one of the most influential current theories in operations strategy (Slack, 2007). Similarly Chan Kim and Mauborgne (2005) argue that dominant firms have challenged their respective industry paradigm to create more value and to raise product imitation barriers in a knowledge based economy. (a) Using appropriate value and indifference curve diagrams critically discuss the ways in which dominant firms have restructured their operations strategy to deliver more value and to raise product imitation barriers. Support your analysis by relevant business examples. (15 marks) (b) Identify the impact of an internal knowledge market on the process of total quality management. (10 marks) (Total: 25 marks) Question 2 With reference to lean supply chain management explain its contribution to an organisations bottom line success. Your answer should include relevant business examples and appropriate references from literature related to the field. (25 Marks) Question 3 Critically evaluate two major change models which could be adopted by an organization which is committed to continuous improvement and suggest how their possible future success might be maintained. Your answer should include relevant business examples and appropriate references from literature related to the field. (25 marks) Question 4 Critically evaluate the distinction between operations management and operations strategy. Your answer should include relevant business examples and appropriate references from literature related to the field. (25 marks)

Section B Answer 1 out of the 2 questions:

Question 5 The following represents a software project that should be scheduled using CPM: Time / Days Activity Immediate predecessor a m A 8 10 B A 18 22 C A 14 21 D A 17 30 E B 31 42 F C, D 33 40 G D, E 33 40 H F, G 22 40 where a = optimistic, m = most likely and b = pessimistic The normal and crash data for this software project are as follows: Activity A B C D E F G H Normal Days 10 22 21 30 42 40 40 40 Crash Days 8 20 20 28 40 38 38 38 Normal (000) 22 30 21 45 20 30 35 30 Crash (000) 24 32 25 56 22 34 38 38 b 12 34 27 42 57 53 62 53

(a) Draw a network diagram and use the forward and backward pass to determine ES, EF, LS and LF for each activity. State the project duration and identify its critical path(s). Explain the project management significance of your results. (15 marks) (b) Find the variance for one of the activities. Explain its relevance to the project. (c) Determine the minimum cost of reducing the projects duration by: (i) (ii) 1 day 2 days

(4 marks)

(6 marks) (Total: 25 marks) 2

Question 6 (a) Galleries Lafayette, a department store, has 4 retail outlets based in Paris, Marseilles, Dijon and Reims. They are currently being supplied by an old and inadequate warehouse in Reims. Data on demand rates of each outlet are shown below. Store Location Paris Marseilles Dijon Reims The locations of the 4 stores are: Paris Marseilles Dijon Reims X 64 95 120 150 Y 47 99 140 150 Containers shipped per month 18 27 38 5

Use the centre of gravity method to find the location of a distribution centre (warehouse) that will minimise distribution costs and explain the practical limitations of this method. (15 marks) (b) Two competitors, Alpha and Beta, have an equal production capacity. Alpha's marketing intelligence suggests that there is an 80% chance that Beta will increase its production capacity in the next twelve months in response to a forecast increase in demand. You are given the following data: Current Capacity (units) Unit selling price () Unit cost price () Alpha 70,000 15 5 Beta 70,000 15 5

Industry experts believe that total demand is likely to increase to 170,000 units. If Beta increases its capacity to 100,000 units and Alpha does not, Beta's selling price and unit cost will remain constant. Similarly if Alpha increases its capacity to 100,000 units and Beta does not, Alpha's selling price and unit cost will remain constant. However, if both Alpha and Beta increase their capacity by 15,000 units each, their unit cost will increase to 7 as a result of increased marketing expenditure. Their unit selling price will remain unchanged. Describe an appropriate decision making model that can be used in this situation and hence advise Alpha as to whether it should increase its production capacity. (10 marks) (Total: 25 marks) 3

Marking Guide
General Comments: The theory questions are highly discursive inviting a range of responses. Descriptive accounts that reiterate textbook materials will gain little credit. Students need to demonstrate how relevant theories have developed their understanding of real world problems. The questions are designed to test knowledge acquired in the module. They are designed to elicit an opinion on the particular topic, and in order to provide a satisfactory answer students will have to : a) construct an argument as an answer to the question b) demonstrate appropriate knowledge of the topic c) use knowledge as evidence to support their argument d) produce a concise conclusion which makes their views clear. There are seldom right answers to discursive questions but there are correct and incorrect ways of interpreting and approaching them. In answering questions, students are expected to show a clear grasp of theory and practice, to demonstrate reading beyond the core text and the study guides. In addition students are required to demonstrate their skills in applying models to solve quantitative problems.

Question 1
Generally candidates could refer to: Business examples: Swatch, Dell, Novotel-Accor, Bert Cleys, Body Shop, Amazon.com Commentators: Kim and Maubourgne, Grant, Hamel and Prahalad, Pascale, Stacey, Prusack, Davenport, Nonaka Takeuchi Pass To pass candidates need to demonstrate an understanding of the relationship between the concept of industry paradigm and operations strategy. Value curve and indifference curve diagrams should be used to show how innovative firms have restructured their production, capacity, process, location etc to deliver more value. Discussion of factors encouraging knowledge exchange to promote quality in the context of suitable model (eg SECI) Merit More sophisticated diagrams using relevant mathematical symbols to discuss consumer surplus and both barriers to entry as well as imitation. Suitable diagram showing shift from Q1, Q2, D1,D2, P1, P2, LRAC 1, LRAC2 , Profit= EFGH, Profit=ABCD, Consumer Surplus=XAB, EFY explaining the redesign of operations management to create consumer surplus Discussion of relationship between Kim and RBV Distinction A critical evaluation of Blue Ocean and RBV discussing the differences between both types of barrier demonstrating appreciation of industrial and behavioural economics. Other models and concepts relevant to discussion: CAS, Delta, Chaos and Complexity. Analysis of systems lock-in and positive returns economics in a technologically driven environment could also enhance the quality of discussion.

Question 2
With reference to lean Supply Chain Management explain its contribution to an organisations bottom line success. Your answer should include both business case examples and relevant references from the field to illustrate the models chosen. (25 Marks) Fail Does not appreciate the contribution of successful lean SCM Unable to provide model or referenced support for points made Comments general and not related to the modular specific learning Pass Able to offer a definition of SCM in relation to the bottom line Can cite lean models including: BPR, JIT and Six Sigma Able to identify areas of impact including Buyers, Merchandisers, Shipping, Finance, Distribution & Customer Interface. Aware of the role of different stakeholders Aware of the need to be competitive but detail may not be very clear at this level Key references offered but may not integrate them well into the argument Merit All of the above Competitive and efficiency advantages drawn out and referenced Aware of the role of the supplier and advantages of developing supplier relationship Can analyse and outline CRM advantages. Business Specific approach analysis Differentiate between some detail & clear detail Solutions justified & business relevant References used to illustrate and not just to explain Distinction Developments should be in partnership with the suppliers and distributers Future areas & a strategic approach emphasised Better students will include these; volume change, product & service mix, promotions, information & errors. Will be able to comment on the current economic downturn and its impact on bottom line & the need to create efficiency at every stage of supply chain

Question 3
Critically evaluate two major change models for an emerging organisation, and suggest how their success might be maintained (25 marks) Fail Unable to identify two major change models eg BPR, JIT or Six Sigma Cannot apply these to a new organisations issues Unable to identify incremental change which supports their ongoing success: TQM CRM and benchmarking (internal & external: deep) 6

Pass Able to identify models and to outline their application in a limited way References used may relate to the models only and do not extend to research Capable of suggesting how success could be maintained but identifies rather than expands on it Little innovative analysis but key concepts understood and referenced Some evidence of wider reading Merit All the above with specifics on how to maintain and augment successes gained Model application is well scoped and understood Aware of the research debate in the literature Can give business case illustrations for points made Distinction All the above with a more strategic approach Engages with the literature challenges models suitability and fit able to relate to the current climate evidence of wider reading and understanding of concepts beyond the text book

Question 4 Critically evaluate the distinction between operations management and operations strategy , supporting your analysis by relevant business examples Fail Unaware of the role of stakeholders in major change and cannot identify needs or engagement Fails to recognize Hammer & BPR link No references Pass Aware of the key role of stakeholders Can identify valuable contributions Able to cite references but may not engage fully with the research debate Capable of identifying the value of major change May be aware of some high profile organizational changes and disruption No need to focus on BPR as any major change models impact will suffice Merit All the above but able to engage with the literature to make valid points Capable of citing business examples of where stakeholders were instrumental in supporting or confounding the implementation of change models Familiar with the BPR and engineering approach of many change models Able to create a persuasive, well referenced argument Distinction All the above but an awareness of inclusion and the changes in legislation encouraging participation Able to apply concept to current economic climate Can transfer models from theory to practice and comment on their impact and implications

Question 5
Pass Network showing critical path Application of appropriate formula to calculate probability of completion CPM based on assumptions. Exploration of these assumptions and practical problems Merit Provide accurate answers identifying above plus least cost and discussion of project management issues Distinction Accuracy of answers Concise explanation of results Concise discussion of organisational and technical issues drawing on models (CMM and CMMI, SQFD) 8

5(a) Act ES EF LS LF A 0 10 0 10 B 10 32 10 32 C 10 31 53 74 D 10 30 44 74 E 32 74 32 74 F 31 71 74 114 G 74 114 74 114 H 114 154 114 154 (b) Beta probability distribution= a+m+b/6= 8+ 60+12/6= 13.3 days. Data could be used to estimate probability of task completion (c) ACT CCPD() ON CP A 1000 YES B 1000 YES C 4000 NO D 5500 NO E 1000 YES F 2OOO NO G 1500 YES H 3000 YES 1 day = 1000 2 days= 2000

Question 6
Pass: To obtain pass candidates should demonstrate: (a) an understanding of the application of C of Gravity formula (b) application game matrix (c) basic understanding of relationship between market strategy (eg. segmentation) and flexibility of operations strategy. Merit: Attempt all three sections giving a proper explanation as to why Alpha should or should not increase its capacity grounding their discussion in the concept of dominant strategy. Distinction: A discussion of the limitations of game theory ,demonstrating linkages among: 9

operations performance objectives, customer needs, market positioning and competitors actions. Quantity dynamics and irreversibility of operations strategy (eg Ghemawat) could also be discussed. The following commentators and business examples could be used: - Morgensten, Nash equilibrium, Cournot, Ghemawat, - National Panasonic, Matsushita etc - Application of Centre of gravity formula (a) Application of Centre of gravity formula

X= (64X18) + (95X27) + (120X38) + (150X5)/88= 102.6 Y= (47X18) + (99X27) + (140X38) + (5X150)/88=109.5 (b) APPLICATION OF GAME THEORY ALPHA(m) BETA(m) Both do not .7 .7 Alpha does and Beta does not Beta does and Alpha does not Both do Dominant strategy increase 1 .7 .68 .7 1 .68

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