Section B Answer ALL 3 questions in the question paper-answer booklet file. Question 1 (Total 30 marks) Tommy is the operations manager of ABC Co. Ltd, producing various electric appliances; and with recent trend of cost increase, he wishes to look into the productivity of his company. He would like to know if his company is having a 18% increase in productivity with ALL factors considered, in order to be qualified for a productivity improvement bonus. Please see the annual figures below: Year 2019/20 Year 2020/21 Unit Produced 5,000,000 5,000,000 Labour (hours) 900,000 710,000 Capital Invested ($) 90,000,000 110,000,000 Materials (Ton) 2,080 2,400 The details of the various cost items are: $42 per labour hour and $17 per kg of materials (1 Ton = 1,000 kgs). While for the capital expense, it is at 0.9% per month of capital investment. a) Calculate the missing data and productivity percentage change (correct to 1 decimal place) for each category in the table below, al to a9. (9 marks) Some answers have been shown for your reference. Yr 2019/20 Yr 2020/21 Monthly Monthly Productivity Unit Cost Unit Cost Cost Change (%) or Rate Produced 2019/20 2020/21 state + or -] 5,000,000 5,000,000 (a2) 42 3,150,000 (11) Labour (hours) 900,000 710,000 (14) 0.9% (a3) 990,000 Capital Invested ($) 90 900.000 110.000.000 (64) thours) 900,000 210,000 Capital Invested ($) 0.994 90,000,000 110,000,000 (3) 990,000 ( Materials (Ton) 17 3,400,000 2,400 (95) 106/ 2,080 Subtotal (98) (as) Please make sure you are having all figures compared to the same unit of measure b) Will Tommy get his productivity improvement bonus for Year 2020/217 Why? (2 marks) cl The following table shows three product lines' contribution in ABC Co. Ltd, as well as their position in the product life cycle Product Position in Life Product Percent Contribution Cycle Contribution to the Company Turbo Vacuum Introduction 30% 40% Smart Oven Growth 30% 50% Fast Rice Cooker Decline 50% 1094 Note: - Product contribution = 1- Cost of Goods/Selling Price ** Portion of that product's contribution to the total contribution gained by the Company Identify and explain a reasonable marketing or operational strategy for each of the above three products. (9 marks) d) ABC Co. Ltd. would like to expand the oven product line by adding Oven type A and type B by outsourcing, Oven type A and B are manufactured by two different suppliers, Tommy.operations manager of ABC Co. Ltd, talked with both suppliers for more details before outsourcing, Below is the additional information given by two suppliers Oven type A supplier: We would provide some varieties in selection and customers would pick the components selection from our available list for faster assembly and production. We would help customers to assembly of what they selected. Our cost and delivery lead time would be acceptable in the market. Oven type B supplier: Our oven is manufactured under a specific method in a job shop. We would support what customers dadadidadidadidade Cycle Cahtribution to the Company Turbo Vacuum Introduction 30% 40% Smart Oven Growth 30% 50% Fast Rice Cooker Decline 50% 10% Note: * Product contribution 1- Cost of Goods/Selling Price ** Portion of that product's contribution to the total contribution gained by the Company Identity and explain areasonable marketing or operational strategy for each of the above the products (o marks d! ABC Co. Ltd. would like to expand the oven product line by adding Oven type A and type B by outsourcing. Oven Type A and are manufactured by two different suppliers Tommy, operations manager of ABC Ca Lid., talked with both suppliers for more details before outsourcing. Below is the additional information given by two suppliers Oven type A supplier: We would provide some varieties in selection and customers would pick the components selection from our available list for faster assembly and production. We would help customers to sembly of what they selected. Our cost and delivery lead time would be acceptable in the market Owen type supplier Our oven is manufactured under a specific method in a job shop We would support what customers requested by and that's why our product is much more expensive and longer production tead time is needed. There are a lot of different steps in production. However, most of our customers are happy with our Nighly tailor made ovens. if you were the operation manager, please comment what are the production process strategiet under en type A and B Justify your answer with comment (6 marks) and compare the characteristics of processes you selected. (marks) Section B Answer ALL 3 questions in the question paper-answer booklet file. Question 1 (Total 30 marks) Tommy is the operations manager of ABC Co. Ltd, producing various electric appliances; and with recent trend of cost increase, he wishes to look into the productivity of his company. He would like to know if his company is having a 18% increase in productivity with ALL factors considered, in order to be qualified for a productivity improvement bonus. Please see the annual figures below: Year 2019/20 Year 2020/21 Unit Produced 5,000,000 5,000,000 Labour (hours) 900,000 710,000 Capital Invested ($) 90,000,000 110,000,000 Materials (Ton) 2,080 2,400 The details of the various cost items are: $42 per labour hour and $17 per kg of materials (1 Ton = 1,000 kgs). While for the capital expense, it is at 0.9% per month of capital investment. a) Calculate the missing data and productivity percentage change (correct to 1 decimal place) for each category in the table below, al to a9. (9 marks) Some answers have been shown for your reference. Yr 2019/20 Yr 2020/21 Monthly Monthly Productivity Unit Cost Unit Cost Cost Change (%) or Rate Produced 2019/20 2020/21 state + or -] 5,000,000 5,000,000 (a2) 42 3,150,000 (11) Labour (hours) 900,000 710,000 (14) 0.9% (a3) 990,000 Capital Invested ($) 90 900.000 110.000.000 (64) thours) 900,000 210,000 Capital Invested ($) 0.994 90,000,000 110,000,000 (3) 990,000 ( Materials (Ton) 17 3,400,000 2,400 (95) 106/ 2,080 Subtotal (98) (as) Please make sure you are having all figures compared to the same unit of measure b) Will Tommy get his productivity improvement bonus for Year 2020/217 Why? (2 marks) cl The following table shows three product lines' contribution in ABC Co. Ltd, as well as their position in the product life cycle Product Position in Life Product Percent Contribution Cycle Contribution to the Company Turbo Vacuum Introduction 30% 40% Smart Oven Growth 30% 50% Fast Rice Cooker Decline 50% 1094 Note: - Product contribution = 1- Cost of Goods/Selling Price ** Portion of that product's contribution to the total contribution gained by the Company Identify and explain a reasonable marketing or operational strategy for each of the above three products. (9 marks) d) ABC Co. Ltd. would like to expand the oven product line by adding Oven type A and type B by outsourcing, Oven type A and B are manufactured by two different suppliers, Tommy.operations manager of ABC Co. Ltd, talked with both suppliers for more details before outsourcing, Below is the additional information given by two suppliers Oven type A supplier: We would provide some varieties in selection and customers would pick the components selection from our available list for faster assembly and production. We would help customers to assembly of what they selected. Our cost and delivery lead time would be acceptable in the market. Oven type B supplier: Our oven is manufactured under a specific method in a job shop. We would support what customers dadadidadidadidade Cycle Cahtribution to the Company Turbo Vacuum Introduction 30% 40% Smart Oven Growth 30% 50% Fast Rice Cooker Decline 50% 10% Note: * Product contribution 1- Cost of Goods/Selling Price ** Portion of that product's contribution to the total contribution gained by the Company Identity and explain areasonable marketing or operational strategy for each of the above the products (o marks d! ABC Co. Ltd. would like to expand the oven product line by adding Oven type A and type B by outsourcing. Oven Type A and are manufactured by two different suppliers Tommy, operations manager of ABC Ca Lid., talked with both suppliers for more details before outsourcing. Below is the additional information given by two suppliers Oven type A supplier: We would provide some varieties in selection and customers would pick the components selection from our available list for faster assembly and production. We would help customers to sembly of what they selected. Our cost and delivery lead time would be acceptable in the market Owen type supplier Our oven is manufactured under a specific method in a job shop We would support what customers requested by and that's why our product is much more expensive and longer production tead time is needed. There are a lot of different steps in production. However, most of our customers are happy with our Nighly tailor made ovens. if you were the operation manager, please comment what are the production process strategiet under en type A and B Justify your answer with comment (6 marks) and compare the characteristics of processes you selected