Operations Management DEC 2025

Description

Operations Management

Dec 2025 Examination

 

 

Q1. A fast-growing meal kit delivery startup is experiencing operational bottlenecks as it tries to offer more customization options to customers, such as dietary preferences and portion sizes. While customers appreciate the flexibility, the increased complexity is leading to higher costs, longer lead times, and more frequent errors in order fulfillment. The operations manager is considering using PCN analysis to map out the process and identify opportunities to streamline operations without sacrificing the personalized experience that differentiates the brand. How should the operations manager apply Process-Chain-Network (PCN) analysis to redesign the service delivery process, balancing the need for customization with operational efficiency and cost control? (10 Marks)

Ans 1.

Introduction

Customization has become a key way for companies to stand apart in the competitive service industry, notably in the food and meal kit delivery business. By offering varied options such as dietary preferences, portion sizes, and specialized menus, startups can enhance customer satisfaction and loyalty. However, these advantages often create operational bottlenecks, higher costs, and fulfillment errors, thereby undermining efficiency and profitability. To address this paradox, the operations manager must adopt structured tools like Process-Chain-Network (PCN) analysis, which helps map and evaluate the interactions between customers and service providers. Through PCN analysis, the startup can visualize its service delivery processes, identify inefficiencies, and redesign

 

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Q2(A). A switchgear manufacturer must plan production for the next year. The company can either maintain a constant workforce and production rate (level strategy), incurring inventory holding and backorder costs, or adjust capacity each period (chase strategy), incurring overtime, undertime, hiring, and layoff costs. The workforce is skilled, and frequent changes may affect morale and productivity. The company seeks to minimize total costs while ensuring operational stability. Evaluate the implications of choosing a level strategy versus a chase strategy for a manufacturer of electrical switchgears, given the cost structures and operational realities described. Justify which strategy you would recommend, considering factors such as inventory costs, workforce stability, and the feasibility of frequent hiring or layoffs. (5 Marks)

Ans 2a.

Introduction

Production planning in the switchgear industry requires balancing cost efficiency with operational stability. Manufacturers can adopt either a level strategy, maintaining a constant workforce and steady production, or a chase strategy, adjusting workforce and capacity to match fluctuating demand. Each approach carries implications in terms of costs, workforce morale, and service performance. In the context of skilled labor and potential morale issues from frequent workforce adjustments, the company must carefully

 

 

Q2(B). An established Indian manufacturing company is experiencing pressure from customers demanding greater variety, customization, and faster delivery of products. At the same time, the firm must control costs and maintain operational efficiency to remain competitive against global players. The management is considering whether to invest in flexible manufacturing systems, redesign its supply chain, or limit product variety. Evaluate the implications of increasing customer expectations and product/service proliferation on the operations management practices of an Indian manufacturing firm. Critically discuss how the firm should balance customization, cost control, and operational complexity, and justify which strategies would best position the firm for sustained competitiveness in a liberalized economy. (5 Marks)

Ans 2b.

Introduction

Indian manufacturers today face heightened pressure as customers demand greater product variety, customization, and faster deliveries, while cost control remains critical for global competitiveness. This creates an operational dilemma: offering variety increases complexity and costs, while focusing only on efficiency risks losing customers to competitors. To thrive in a liberalized economy, the firm must carefully evaluate strategies like flexible manufacturing systems, supply chain redesign, and selective product variety, ensuring that customer expectations are met without eroding efficiency or profitability. A