INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
PAPER 18 C
OPERATIONS STRATEGY
DATE: 17.06.2018 Max. Marks: 100
TIME: 2.00 p.m to 5.00 p.m. Duration: 03 Hrs.
Instructions:
1. The question paper is in two parts.
2. Part A is compulsory. Each question carries one mark Total 32marks
3. In part B answer 3 questions out of 6. Each question carries 15 marks. Total 48 marks
4. Part C is a case study which is compulsory Total20 marks

PART A 32 marks
Compulsory -Each question carries 1 mark
Q.1 Fill in the blanks:
The easiest way to bring the delayed job within the promised delivery time by using extra shift or weekly
holiday is
The breakdowns usually cost more, partly due to damage done to the adjustment components
and partly due to emergency actions.
The must ensure that the product satisfy the functional requirements of its usage.
The are the definitions of the measurable as well as non-measurable characteristics of the
product.
A strategy used to learn more about customers need behaviours in order to develop stronger
relationship with them
is a deep understanding of ones emotions, strengths, weaknesses, needs, drives their
effects on self and others.
The are distinct little business set up as units in a larger company.
Companies employ trained to develop "competency models" to identify potential leaders.
Q. 2 State True or False:
Exceptional or unique organizational resources are known as core capabilities.
Within an industry, an environment can present opportunities to one organization and pose threats to
another.
"Strategic model" is a term that is often used in conjunction with strategic management and strategies.
Evaluating an organization's intangible assets is part of doing an internal analysis in the strategic
management process.
SWOT analysis includes an analysis of an organization's environmental opportunities and threats.
Corporate-level strategies are developed for organizations that run more than one type of business.
Diversification is an example of a corporate retrenchment strategy.
Turnaround is one type of renewal strategy.
June 2018
Q. 3 Select the right answer: Inadequate production capacity ultimately leads to Poor quality Poor Customer Service Poor inventory control All of the above Like roots of a tree, organization is hidden from direct view. goodwill core competence Higher management Capital investment Business is rated on which dimensions Market attractiveness Business strength both and none of the above Limitations of Traditional cost accounting are Assumes factory as an isolated entity It measures only the cost of producing both and none of the above The following is not a major contributor in the development of Control Charts and Sampling plan F H Dodge H G Roming Walter Schewhart J M Juran Which of the following Principles of Management is not advocated by F W Taylor? Selection of best worker for each particular task Division of work between worker and management Training and development of the workmen Involvement of workers in strategy planning Which of the following is not the characteristic of Project Production? Continuous flow of material Highly mechanised material handling Virtually zero manufacturing cycle time All of the above -Which of the following are activities of corrective maintenance? Overhauling Emergency repairs Modifications and improvements All of the above
Q. 4 Expand the words
CRM
ERP
SERVQUAL
EOQ
JIT
TPM
QA
GIS
PART B 48 marks
(Attempt any 3 Questions, each question carry 16 marks
Q.5 What do you mean by services? Discuss characteristics and classification of service.
Q.6 What is e-commerce? Elaborate model of e-commerce with example.
Q.7 "Role of Strategic Management in Global Competitiveness" Explain.
Q.8 Discuss strategic management with suitable example of strategic management process.
Q.9 What do you mean by strategic decision making? Discuss its characteristics. Differentiate strategic decision with administrative and operational decisions
PART C Case Study compulsory 20 marks
Q. 10. Jack Haley, a senior buyer for the Dynamite Truck Company, was confronted with an interesting predicament and possibly a trip overseas. Rising gasoline costs and increased competition had caused the management at the Dynamite Truck to develop a new truck powered by an air-cooled diesel engine. From bumper to tailgate, the new vehicle was designed as a full performance diesel truck. It was heavy-duty throughout: frame, suspension, brakes, axles and steering. It was built to endure. Under normal operating conditions, the new truck, using an efficient air-cooled diesel engine, was designed to yield 18 to 20 miles per gallon. The warranty was for 100,000 miles or two full years, whichever came first.
Jack had been actively involved in the development of the new truck. He provided the Dynamite engineers with information on the availability and cost implications of various materials, components, and subassemblies under consideration. From a technical, cost, availability, and service point of view, the diesel engine was the most crucial item to be purchased for the new truck.
Jack obtained technical data on four air-cooled diesel engines that appeared to satisfy Dynamite's requirements. Two of the manufacturers of these engines were located in Europe, one in Japan, and one in the United States. Discussions with the program manager indicated that from a technical point of view, each of the diesel engines was acceptable. Accordingly, all four manufacturers were invited to submit bids. The request for bids stipulated an estimated requirement of 10,000 engines per year for each of the next three years.
All four firms, submitted bids by the established date. Dutzel Diesel of Gailsdorf, Germany, was the lowest bidder with an FOB destination price of $14,263 for the first year, and a standard price escalation clause for the second and third years. The second lowest bidder was a US firm, the
Great American Diesel Company. Its price bid for the first year was $16,287 per engine. The price for the second and third years contained the same economic escalation clause as Dutzel's bid.
Jack sat contemplating a course of action. He wondered if the $2,024 per unit differential required to buy the US engines could be justified. He also wondered about the necessity of a trip to Gailsdorf to perform a survey on Dutzel prior to awarding the contract.
Questions:
Is a strategic issue involved in the sourcing of the engines? Analyze.
What type of supplier relationship would you recommend for the engine supplier? Why?
Is Jack's supplier visit justified?