L6M9 Practice Online

LTL Ltd is a manufacturing organisation that produces made to order equipment for the construction industry such as bespoke windows and doors. The Head of Operations has received four large orders of windows and doors and is considering the sequencing of when the orders should be made. Which of the following should the company do?

XYZ Ltd is a retail organisation that sells many different hair care products. The marketing team are looking at sales figures from the past year and are trying to decide which products should receive extra marketing in order to boost sales. One product in particular has a low market share but the market has high potential for growth. According to the Boston Consultancy Group Matrix, which category of item would this fall under?

Below are brief descriptions of 5 organisations operating in the manufacturing sector. Each organisation creates a different product and is engaging in a different operational strategy. For each organisation, select the product type described as per the Boston Consultancy Group Matrix and the organisational strategy.

Organisation 1: This is a new product which has just launched into the market. It currently has a small market share but the business is confident that it has a high potential for market growth. There is a long-term commitment to improving quality with an emphasis on manufacturing infrastructure.

Organisation 2: This product has been on the marketplace for many years and the organisation believes that there is no further room for growth in market share. As it is currently the market leader, the organisation benefits from economies of scale. The manufacturing process has, over the course of the years, eliminated all waste from the processing of the item which has contributed to a high profit margin.

Organisation 3: This product has a high relative market share and high potential for growth. The organisation is required to invest heavily in this product to ensure its continued success. They have therefore created a specialist team to create innovative ideas to improve quality and reduce waste in the manufacturing process.

Organisation 4: The organisation is carefully considering whether to continue to make this product as it has a low return on investment, low market share and low potential for growth. The company is considering starting from scratch in order to streamline production and decision making.

Organisation 5: This product is difficult to manage. It has the potential to become a market leader and sales are increasing, but there is heavy competition. The organisation will use a process technology strategy which will include all staff and all departments and have an impact on the development of systems and procedures.

Complete the table below. Some answers may be used more than once: Star, Problem Child, Dog, Cash Cow, Total Quality Management, Six Sigma, Business Process Reengineering, Lean.

Which of the following will you put into box 5?

Below are descriptions of 5 organisations in the manufacturing industry. Each organisation creates a different product in a different way. For each organisation, select the prioritisation method for processing orders from customers and the pattern of workflow used.

Organisation 1: This company makes their product only after receiving orders from customers. All items produced are identical which means that items can be produced very quickly and effectively. Orders are prioritised based on the necessary lead-time specified by the customer.

Organisation 2: This organisation produces products which can be customised – customers simply specify the dimensions and materials required when placing their order online. In order to produce these, the organisation groups the product by characteristics when deciding which orders to complete first.

Organisation 3: This organisation looks at the length of time the order will take to make, and prioritises those that will take the most amount of time. Each product created is unique so processing time varies greatly.

Organisation 4: This organisation creates the same item in small amounts each year. Orders are processed on the day they are received and shipped out the next day.

Organisation 5: This organisation has low order numbers but is continuing to create products in a hope that sales will increase soon. Different members of the team produce different items.

Complete the table below by listing prioritisation method and pattern of workflow. Some answers may not be used: earliest due date, shortest processing time, longest processing time, similar process, HR skill requirement, first in-first out, make to order, make to stock, engineer to order, configure to order, continuous production, batch production.

Which of the following will you put into box 6?