Institute of Certified Management Accountants of Sri Lanka. Operational Level May 2016 Examination

Transcription

1 Copyright Reserved Serial No Operational Level May 2016 Examination Examination Date : 14 th May 2016 Number of Pages : 05 Examination Time: 1.30 p:m p:m. Number of Questions: 07 Instructions to Candidates 1. Time allowed is three (3) hours. 2. Total: 100 Marks. 3. Answer all questions in Part I and four (4) questions from Part II selecting two (2) questions from each of the Sections A and B. 4. Section A: Operations Management and Section B: Information Systems Management. 5. The answers should be in English Language. PART I Subject Subject Code Operations and Information Systems Management (OIM / OL 3-203) Question No. 01 (20 Marks) Answer all parts of the Question No.1. Select the most correct answer to each part of the question. Write the number of the part of the question and the selected answer by stating the relevant English letter, in your answer booklet. E.g. (1) (relevant English letter), (2) (relevant English letter) etc (1) A product or a service design involves three aspects namely a concept, a process and a.... package service utility (d) system (2) Which one of the following cannot be considered as an element of a forecast? demand pattern trend random variation (d) demand analysis (3) What type of layout noted below you recommend when setting up a hospital? process layout product layout cellular layout (d) service layout (4) Research which accesses and uses some part of the accumulated theories, knowledge, methods and techniques for a specific business purpose is known as a: pure research applied research strategic research (d) scientific research 1

2 (5) Which one of the following can be considered as an internal failure cost? Cost incurred to develop quality management programmes. Cost incurred in training workforce. Cost incurred for repair and inspection of the process failures. (d) Expenditure spent to improve manufacturing process. (6) Enterprises rely on e-business applications to re-engineer internal business process. carry out business process outsourcing. implement e-commerce systems with their and suppliers. (d) promote enterprise collaboration among business teams and workgroups. (7) Which one of the following is not considered as a computer crime? Internet privacy Hacking Spam (d) Intranet (8) Security measures provided by computer devices measuring physical traits that make individual unique. This is called as: Bio- metric security Business Process Outsourcing (BPR) Firewall (d) Encryption of data (9) Which one of the following cannot be recognized as a strategic use of internet technologies to gain competitive advantage? Global market penetration Product and service transformation Cost and efficiency improvement (d) Control of security threats (10) With regard to e procurement process which one of the following is correct? It completely revolutionizes a manufacturing or distribution process of firm s supply chain, making a seamless flow of order fulfillment information from manufacturer to supplier It provides supply chain of the firm to be efficient and cost- effective through collaborative efforts across the entire system. It concentrates on management information system to make viable business decisions. (d) It encompasses the firm s activities from the strategic level through the tactical and operational level. (10 2 Marks = Total 20 Marks) End of Part I 2

3 PART II Section A: Operations Management Answer any two (2) questions Question No. 02 (20 Marks) Mr. Nimal is a graduate in BSc Textile Technology. Having gathered five years post qualifying experience in textile industry, he commenced a medium scale garment factory and textile engineering Service Company to provide engineering services to entrepreneurs in garment industry. Two companies provide over 100 employment opportunities and expect to expand his business to cover up a bigger market share. Focussing on a garment factory, indicate its transformed resources, transforming resources and type of transformation process. (06 Marks) Explain five (5) differences between goods and services considering operation of a garment factory and a textile engineering Service Company. (10 Marks) In general a business organization can be divided into three major functions. Indicate three functions with a brief explanation? (04 Marks) Question No. 03 (20 Marks) House of Fashion is a clothing company established in 1990 and has grown up rapidly to be a key house hold brand in Sri Lanka. Renowned for high quality, custom tailoring and ready-made clothes for customers, the company offers exceptional standards of service to ensure that customers enjoy a quality management service. The company has a team of 500 employees with 100 branches in Sri Lanka and outlets in Maldives and Australia. CEO of the company believes that success story of the company is attributable to implementing total quality management. Explain briefly five (5) management principles of total quality Management. (10 Marks) Indicate with examples how prevention cost results in quality improvement. Describe briefly how cause effect diagram would be useful in analysing quality control issues. 3

4 Question No. 04 (20 Marks) With the introduction tax concessions for setting up industries and infrastructure based companies, Lanka Service (Pvt) Ltd has decided to commence assembly plant to produce automobiles to meet demand in south Asian region. The Company has obtained tax concessions from Board of Investment (BOI) of Sri Lanka. Explain what type of layout used in Automobile plant? Justify your answer. Lanka Service (Pvt) Ltd has decided to set up a assembly plant in Koggala Industrial Zone. Identify four (4) important factors the company should consider in locating assembly plant in Sri Lanka? (08 Marks) During a particular week, employees in a factory produced 500 garments. However due to quality problems 80 garments were sold as B grade products at a unit price of Rs.600/-. The remaining garments were sold at Rs.1,000/- per garment. Labour hours of 250,000 were utilized for this work. Calculate the labour productivity of 500 garments. (07 Marks) End of Section A Section B: Information Systems Management Answer any two (2) questions Question No. 05 (20 Marks) Swiss Lanka Company was established as a joint venture company which involves in promoting tourism in Sri Lanka by providing comprehensive package for western tourist. The company has set up internet environment and involve in e- booking, e- based payment system and providing all information through extra net and intranet. As a result of E commerce and supply chain management, the company has achieved a tremendous growth during last 03 years. Explain clearly role of Information Technology in Supply Chain Management and how it supports objectives of the company. Explain four (4) benefits that can be achieved Swiss Lanka Company for implementation of Supply Chain Management? (08 Marks) Indicate two (2) primary reasons for difficulties encountered in supply chain integration. (07 Marks) 4

5 Question No. 06 (20 Marks) Property Developers Company (PDC) commenced its operations 50 years ago as small and medium scale company dealing with real estate business. Now it has diversified its business operations and engaged in construction of commercial buildings, roads, canals and providing civil engineering and architectural services. It has a work force of 500 staff with 08 branch network in Island wide. It has no internally developed IT system which cannot share inter-branch operations and information. With increase of competitive forces, the company has developed to launch new IT system to gain benefits from information technology improvements. Indicate five (5) basic competitive strategies that IT can support in a situation given above scenario. (10 Marks) Describe two (2) roles of information system that can help the company to achieve success. Knowledge creating companies exploit two kinds of knowledge. Briefly explain them how such knowledge can assist improvement of the company? Question No. 07 (20 Marks) Write short notes selecting any four (4) of the following. (i) Components of Information Systems (ii) Management Information System (iii) SWOT analysis (iv) Enterprise Resource Planning (ERP) (v) Hacking (4 5 Marks = Total 20 Marks) End of Section B End of Part II End of Question Paper 5