Question 1 (10 Marks)

Study the scenario described below and answer all questions that follow.

Firms achieve their missions in three conceptual ways:

(1) differentiation,

(2) costs leadership, and

(3) response.

In this regard, operations managers are called on to deliver goods and services that are

(1) better, or at least different,

(2) cheaper, and

(3) more responsive.

Operations managers translate these strategic concepts into tangible tasks to be accomplished. Any one or combination of the three strategy options can generate a system that has a unique advantage over competitors (Heizer, Render and Munson, 2017:74).

P&B Inc., a medium-sized manufacturing family-owned firm operates in a market characterised by quick delivery and reliability of scheduling as well as frequent dramatic changes in design innovation and customer demand. As the operations analysts at P&B Inc., discuss how you would prioritise for implementation the following FOUR (4) critical and strategic decision areas of operations management as part of P&B's 'input-transformation-output' process to achieve competitive advantage:

1. Goods and service design 2. Human resources and job design 3. Inventory, and 4. Scheduling

In addition to the above, your discussion should include an introduction in which the strategy option implicated by the market requirements is comprehensively described.

Question 2 Use the information provided below to answer all questions that follow. Thabs Performance Auto, Inc. specialises in the modification of cars. Mr Thabiso Mokwena, the managing director of Thabs Performance Auto wants to measure the performance of the business and has asked you to determine the multifactor productivity of the operations. You have assembled the following data:

Last year This year N umber of cars modified 700 750 Labour 10 000 hours @ R300 per hour 9 000 hours @ R350 per hour Suspension and engine modification kits 500 @R20 000 each 520 @R22 000 each Energy 100 000 kilowatt-hours @ R20 per kilowatthour 80 000 kilowatt-hours @ R25 per kilowatthour 2.1 If the multifactor productivity of Thabs Performance Auto's operations last year was 1.4, calculate how much was charged, on average, for each car modification. (5 marks) 2.2 Assuming the average price per modification has not changed, calculate the multifactor productivity of Thabs Performance Auto's operations this year (round off answer to 2 decimal places). (4 marks) 2.3 Determine the percentage change in the multifactor productivity of Thabs Performance Auto's operations this year compared to last year (round off answer to 2 decimal places)