Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 2017-2018
Mid-Semester Test (EC-2 Regular)

Course No. : MM ZG512

Course Title : MANUFACTURING STRATEGY
Nature of Exam : Closed Book
Weightage : 35% No. of Pages =1
Duration : 2 Hours No. of Questions = 6
Date of Exam : 23/09/2017 (AN)
Note:
1. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. All parts of a question should be answered consecutively. Each answer should start from a fresh page.
3. Assumptions made if any, should be stated clearly at the beginning of your answer.

Q.1. It was discussed in class that often the functional strategies in an organization are not
necessarily aligned with the business strategy and not mutually supportive of other
functional strategies. What are the dangers of this? How might a company try to reduce
this problem? [3 + 2 = 5]

Q.2. Show how the volume-variety/flow-layout matrix can be used to determine the best
configuration for different stages in a product life cycle. What is the disadvantage if a
company chooses to operate off the principal diagonal in the volume-variety/flow-layout
matrix? [4 + 2 = 6]

Q.3. One of five Competitive Forces of Michael Porter is The Threat from Substitute Products.
Take the three Generic Strategies of Michael Porter and discuss how each strategy can be
used to reduce the potential threat from Substitute Products. [2 + 2 + 2 = 6]

Q.4. What does it mean to be “stuck in the middle” in terms of Michael Porter’s generic
strategies? What are the negative consequences of being stuck in the middle? Give an
example [3 + 2 + 1 = 6]

Q.5. Consider the following 3 scenarios:

(a) A unit ABC of a major corporation is quite profitable. It does not have any
significant potential for growth, but also does not require any major product
innovation or advertising to keep it going.
(b) Another unit DEF of the same corporation has a new product which can be big
money maker if certain features can be improved. This may require new
technology.
(c) A third unit XYZ has been accepted by the market and the company is finding it
difficult to keep up with the demand and may have to add capacity in terms of
adding new lines or a new plant.

For each of the above scenarios, suggest which quadrant of the BCG matrix does each fall in,
justifying your answers with suitable reasons. [2 + 2 + 2 = 6]

Q.6. Suppose there is a company that has two sets of customers, industrial and retail. The
industrial customers need a narrow range of products in high volumes, but the company
must meet exacting quality and delivery specifications. The retail market consists of a
large variety of products, each in small quantities. The retail market would be serviced
based on a forecast, while the industrial customers commit to purchasing certain quantities
during the year, and the monthly schedule is given in advance. Discuss how you would
plan the manufacturing levers for this company. Specifically discuss the facilities, process
technology, and human resources. [6]