Production Management – November 2019 Past Paper – KNEC Higher Diploma

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This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following courses:

  • Higher Diploma in Entrepreneurship Development

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1. (a) Managers encounter problems in the process of production of goods and services.
Explain four such problems. (8 marks)

(b) A project designed to refurbish a production plan consists of the following activities with estimated times and precedence relationships:

Activity Predecessors Optimistic time Most likely time Pessimistic time
A 10 12 14
B 20 26 56
C A 2 4 30
D B 16 18 32
E B, C 50 72 82
F D, E 12 18 36

For each activity, determine the:
I. expected time; (3 marks)
ii. variance. (3 marks)

(ii) Estimate the probability of completing the project within a hundred days. (6 marks)

2. (a)Kamore Enterprises has been facing increasing production costs in the recent past.
Explain the factors that may have contributed to this increase. (10 marks)

(b) Explain the circumstances under which human resource consideration may influence by the choice of technology in a manufacturing firm. (10 marks)

3. (a) Explain the strategies that a firm may adopt to improve the aesthetics of a product during product design and development. (10 marks)

(b) The annual demand of material X used in the manufacturing process at Wakz Enterprises is 250,000 units. The ordering cost is Ksh 200 per order. The annual holding cost is Ksh 100 per unit.

Determine the:
(i) Economic Order Quantity (EOQ). (3 marks)
(ii) Number of orders per year. (2 marks)
(iii) Average cost of inventory. (2 marks)
(iv) Total relevant cost of the inventory. (3 marks)

4. (a) Explain the ways in which a manufacturing firm may improve efficiency in material handling. (10 marks)

(b) Explain the techniques that a firm may adopt in carrying out the performance appraisal exercise of its staff. (10 marks)

5. (a) Explain the benefits that may be derived by a small enterprise from instituting quality control. (10 marks)

(b) Explain the problems that a manufacturing firm may encounter in the process of scheduling. (10 marks)

6. (a) Explain the aspects of technology that may be considered in order to improve productivity in a firm. (10 marks)

(b) The management of Depo Enterprises has been advised to always carry out preventive maintenance on its manufacturing plants. Explain the benefits that the firm may derive from such a practice. (10 marks)

7. (a) Describe the steps followed when developing a new product or service. (10 marks)

(b) Explain five objectives of production management in an organization. (10 marks)

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