CMA Inter Suggested Answers | Jun 25 Paper 9 Operations Management and Strategic Management

Table of contents

1. MCQs
2. 2 (a) : Align the major important decision areas under
3. 2 (b) : Analyze the three important tools which are used
4. 3 (a) : “Production planning and Control is a very important
5. 3 (b) : RONP Ltd. manufactures two colour televisions — 
6. 4 (a) : TOXIN Ltd., a manufacturing company has five
7. 4 (b) : MR. RATUN, a bakery shopkeeper sells confectionary
8. 5 (a) : GOPA BANDHU AUDITORIUM has been decorated
9. 5 (b) : A Research and Development department of ZOBEX
10. 6 (a) : “Strategic Management was associated with
11. 6 (b) : “Artificial Intelligence (AI) is intelligence exhibited
12. 7 (a) : “Porter’s value chain describes the categories of 
13. 7 (b) : “Rockart has identified four major sources of Critical 
14. 8 (a) : Analyze the differences between Strategy formulation
15. 8 (b) : Align the guidelines a strategic manager should keep 

CMA Inter Jun 25 Suggested Answer Other Subjects Blogs :

1. Suggested Answer Jun 25 Paper 5 : Business Laws and Ethics
2. Suggested Answer Jun 25 Paper 6 : Financial Accounting
3. Suggested Answer Jun 25 Paper 7 : Direct and Indirect Taxation
4. Suggested Answer Jun 25 Paper 8 : Cost Accounting (CA)
5. Suggested Answer Jun 25 Paper 10 : Corporate Accounting and Auditing
6. Suggested Answer Jun 25 Paper 11 : Financial Management and Business Data Analytics
7. Suggested Answer Jun 25 Paper 12 : Management Accounting
8. CMA Inter Syllabus (New Updates)
9. CMA Intermediate Online Classes

Section A

MCQs

(i) With reference to the operations of a manufacturing company, one of the important decisions is “Are we producing the right things?” Which one of the following is related to this?
(A) Quality Management
(B) Inventory Management
(C) Maintenance Management
(D) Delivery Planning

Solution:  (A) Quality Management

This question is about ensuring products meet customer needs and expectations, which is the focus of Quality Management—making sure the right products are produced with the right standards.

(ii) Which one of the following is associated with the question “Where should each centre be located”?
(A) Process layout
(B) Facility layout
(C) Product Layout
(D) Plant Layout

Solution:

View solution in koncept education app - Download App

(iii) Application of technology or process to the raw material to add use value is known as:
(A) Product
(B) Production
(C) Application of Technology
(D) Combination of Technology and Process

Solution:

View solution in koncept education app - Download App

(iv) A steel plant has a design capacity of 50,000 tons of steel per day, effective capacity of 40,000 tons of steel per day and actual output of 36,000 tons of steel per day.
Compute the efficiency of the plant.

(A) 90%
(B) 72%
(C) 80%
(D) 110%

Solution:

View solution in koncept education app - Download App

(v) The following item is being managed using a fixed time period model with safety stock:

What is the average inventory turn(s) for the item? (1 year = 52 weeks)

(A) 84.20 turns per year

(B) 24.76 turns per year

(C) 80.50 turns per year

(D) None of the above

Solution: (B) 24.76 turns per year

Choice 'B' is correct as--

Step 1: Calculate average inventory

Average Inventory = (Cycle Stock / 2) + Safety Stock

Cycle Stock = Weekly Demand × Review Cycle = 50 × 3 = 150 units

Average Inventory = (150 / 2) + 30 = 75 + 30 = 105 units

Step 2: Calculate annual demand

Annual Demand = 50 units/week × 52 weeks = 2,600 units

Step 3: Inventory Turnover = Annual Demand ÷ Average Inventory

Inventory Turnover = 2,600 ÷ 105 ≈ 24.76 turns/year

(vi) The Quality Circles and use of work teams or quality improvement teams are the examples of
(A) Time Reduction
(B) Lean Production
(C) Worker Involvement
(D) Re-Engineering

Solution:

View solution in koncept education app - Download App

(vii) The over capacity is preferred when
(A) the cost of creating the capacity is prohibitively high.
(B) fixed cost of the capacity is not very high.
(C) shortage of products does not affect the company.
(D) the technology changes fast.

Solution: (B) Fixed cost of the capacity is not very high

Overcapacity is preferred when the fixed cost of creating extra capacity is low, making it affordable to maintain more capacity than currently needed. This helps meet unexpected demand surges, reduce lead times, and improve customer satisfaction without incurring heavy financial burdens.

(viii) ________ is about how people may be motivated to work together in more effective ways.
(A) Organisational behavior
(B) Strategic Leadership
(C) Emotional Intelligence
(D) Organisational Change

Solution:

View solution in koncept education app - Download App

(ix) A __________ is a business unit in a growing market, but not yet with high market share.
(A) Cash Cow
(B) Dog
(C) Question Mark
(D) Star

Solution: (C) Question Mark

Choice 'C' is correct as--

In the BCG (Boston Consulting Group) matrix, a "Question Mark" (or "Problem Child") refers to a business unit or product in a growing market with low market share. These units have potential for growth, but it’s unclear whether they can gain enough market share to become successful, thus they require investment and careful management.

(x) __________ is a form of paid advertising that allows marketing teams to essentially purchase traffic to their website.
(A) Influencer Marketing
(B) Affiliate Marketing
(C) Pay-per-click
(D) Content Marketing

Solution: (C) Pay-per-click

Choice 'C' is correct as--

Pay-per-click (PPC) is a form of paid advertising where marketing teams pay a fee each time their ad is clicked, effectively purchasing traffic to their website.

Solution:

View solution in koncept education app - Download App

(xii) In the scheduling function, if the Critical Ratio for a job is greater than 1, it implies that
(A) the job is behind the schedule.
(B) the job is ahead of schedule.
(C) the job is not started yet.
(D) the job is exactly on schedule.

Solution:

View solution in koncept education app - Download App

(xiii) The ISO Standard associated with the “Quality Assurance in Production and Installation” is
(A) ISO 9001
(B) ISO 9002
(C) ISO 9003
(D) ISO 9004

Solution:

View solution in koncept education app - Download App

(xiv) Which one of the following cannot be called a valid “Type” of Big Data?
(A) Structured Data
(B) Unstructured Data
(C) Meta Data
(D) Semi-Structured Data

Solution:

View solution in koncept education app - Download App

(xv) The __________ refers to a set of managerial decisions and actions that determines the long-term performance of an organization.

(A) Organisational culture

(B) Strategic management

(C) Vision

(D) Mission

Solution: (B) Strategic Management

Strategic Management involves key decisions and actions that shape an organization's long-term goals and performance, including strategy formulation, implementation, and evaluation.

Section B

Question 2 (A):

Align the major important decision areas under production and operations management.

Solution:

View solution in koncept education app - Download App

Question 2 (B):

Analyze the three important tools which are used for increasing productivity in industry.

Solution:

View solution in koncept education app - Download App

Question 3 (A):

“Production planning and Control is a very important aspect of Production Management” — In this context, append the basic six types of production control.

Solution:

View solution in koncept education app - Download App

Question 3 (B):

RONP Ltd. manufactures two colour televisions — “Model 2M3” and “Model 3SP4” in a variety of sizes, colours and component combinations. Identical colour TVs are produced in lots of 100. The projected demand, lot size and time standard are shown in the following table:

The factory currently works 3 shifts, 8 hours a day, 5 days a week, 50 weeks a year.

It operates 100 workstations, each producing one colour TV in the time shown in the above Table.

The factory maintains a 19% Capacity cushion (C).

(Ignore use of overtime works).

Required:

(i) Analyze and Assess how many workstations will be required next year to meet the expected demand without decreasing the Company’s current capacity cushion.

(ii) Assess the number of additional workstations to be required to meet expected demand.
[Present calculation (NOs) up to nearest integer]

Solution:

View solution in koncept education app - Download App

Question 4 (A):

TOXIN Ltd., a manufacturing company has five jobs (D, E, F, G and H) and four machines (M1, M2, M3, and M4).

These jobs can be processed on any four machines. Resulting times (hours) vary with assignment. The required time (in hours) for each job on machine are given in following table:

The manager (Production) of the company would like to assign the jobs so that total time is minimized.

Required:

Develop the optimal assignment of jobs to machines and assess the corresponding total time (in hours).

Solution:

View solution in koncept education app - Download App

Question 4 (B):

MR. RATUN, a bakery shopkeeper sells confectionary items. Past data of demand per week in hundred kilograms with frequency is given as below:

The following two digit random numbers are to be used to generate the demand for 10 weeks:

Required:

1. Using the given two digit random numbers, simulate the 10 weeks demand of confectionary items.

2. Analyze the average demand per week.

Solution:

View solution in koncept education app - Download App

Question 5 (A):

GOPA BANDHU AUDITORIUM has been decorated with 1000 coloured light bulbs. The mortality rates of this type of bulbs have been observed pursuant to a systematic study as follows:

It costs ₹100 to replace a fused bulb. However, if all bulbs are replaced together, it would cost ₹40 per bulb. The auditorium management is thinking to replace all bulbs at fixed interval, whether or not the bulbs are fused and also to continue replacing fused bulbs as when they get fused.

Required:

1. Analyze the number of light bulbs to be replaced every month.
2. Assess the average monthly cost for individual replacement.
3. Analyze and identify at what periodicity the Management of Gopa Bandhu Auditorium should replace all the light bulbs.
4. Recommend which policy of the replacement would be economical.

Solution:

View solution in koncept education app - Download App

Question 5 (B):

A Research and Development department of ZOBEX Ltd. is developing a power supply for console television set. The department has listed down the activities with its time in the project as under:

Required:

1. Design a PERT Network Diagram and indicate all paths through it.
2. Analyze the critical path of the project.
3. Assess the Minimum time (in days) for completion of the project.
4. Analyze and assess the Total Float, Free Float and Independent float available on each activity.

Solution:

View solution in koncept education app - Download App

Question 6 (A):

“Strategic Management was associated with increasing focus on competition as the central characteristic of the business environment” — In this context, append the basic elements of Strategic Management.

Solution:

View solution in koncept education app - Download App

Question 6 (B):

“Artificial Intelligence (AI) is intelligence exhibited by machines and systems” — In this context, enumerate the three levels of Artificial Intelligence (AI) and analyze the various contemporary concepts, namely, Machine Learning (ML), Deep Learning & Blockchain.

Solution:

View solution in koncept education app - Download App

Question 7 (A):

“Porter’s value chain describes the categories of activities within and around an organization”. — With reference to this statement align the activities involved in the value chain of an Organization.

Solution:

The activities involved in Value Chain can be broadly divided into two types namely, primary activities and secondary or support activities. The following are the Primary activities :

(i) Inbound logistics are activities concerned with receiving; storing an d distributing inputs to the product or service including materials handling, stock control, transport, etc.

(ii) Operations transform these inputs into the final product or service. Operations include machining, packaging, assembly, testing, etc.

(iii) Outbound logistics collect, store and distribute the product to customers, for example warehousing, materials handling, distribution, etc.

(iv) Marketing and sales provide the means whereby consumers / users are made aware of the product or service and are able to purchase it. This includes sales administration, advertising and selling.

(v) Service includes those activities that enhance or maintain the value of product or service, such as installation, repair, training and spares.Support activities help to improve the effectiveness or efficiency of primary activities. The following are the support or secondary activities:

1. Procurement : It refers to the processes that occur in many parts of the organisation for acquiring the various resource inputs to the primary activities.
2. Technology development : All value activities have a ‘technology’, even if it is just knowhow. Technologies may be concerned directly with a product or with processes or with a particular resource
3. Human resource management : This transcends all primary activities. It is concerned with those activities involved in recruiting, managing, training, developing and rewarding people within the organisation.
4. Infrastructure : The formal systems of planning, finance, quality control, i nformation management, and the structures and routines that are part of an organisation’s culture.

(This Question is a part of konceptca.com question bank)

Question 7 (B):

 “Rockart has identified four major sources of Critical Success Factors” — In this context examine, the said four sources of critical success factors citing examples.

Solution:

Question 8 (A):

Analyze the differences between Strategy formulation and Strategy implementation according to David (2005).

Solution:

View solution in koncept education app - Download App

Question 8 (B):

Align the guidelines a strategic manager should keep in mind while implementing proper strategic control.

Solution:

View solution in koncept education app - Download App