THE UNIVERSITY OF AUCKLAND SEMESTER ONE 2020 Final Assessment (Exam) OPSMGT 258 Business Process Design 

Read these instructions carefully before starting the exam: 1. The exam is marked out of 100 and is worth 47% of the coursework mark. 2. The last three pages of this booklet include z-Table and Lq-Table. 3. For all calculations, show your full workings. Unless stated differently, all your values must show two valid numbers (i.e., non-zero numbers) behind the decimal point if exists. 4. To write your answers, you should electronically type on this MS word file. 5. Submission format is MS word and you should electronically submit it to Turnitin via Canvas. Your submission file name should be: “Exam_258FC20_your Student ID number” 6. Answer ALL questions, each one in the appropriate section. 7. Please make sure that your answers are thoughtful, legible, and concise. 8. The final submission deadline is Tuesday, 30 June, 12:59pm. 9. NO late submission is allowed (No exception). 10. This Final Assessment has been designed so that a well-prepared student could complete it within 3 hours. 11. If you wish to raise concerns during the Final Assessment, please call the Contact Centre for advice: Auckland: 09 373 7513, Outside Auckland: 0800 61 62 63, International: +64 9 373 7513 12. It is your responsibility to ensure your assessment is successfully submitted on time. Please don’t leave it to the last minute to submit your assessment. 13. For any Canvas issues, please use 24/7 help on Canvas by chat or phone. 14. If any corrections are made during the 24 hours, you will be notified by a Canvas Announcement. Please ensure your notifications are turned on during this period. 15. Any violation of academic integrity will nullify your ENTIRE scores for the Exam. READE THE ACADEMIC HONESTY DELARATION CAREFULLY ON THE NEXT PAGE. Page 1 of 20 Academic honesty declaration By completing this assessment, I agree to the following declaration: I understand the University expects all students to complete coursework with integrity and honesty. I promise to complete all online assessment with the same academic integrity standards and values. Any identified form of poor academic practice or academic misconduct will be followed up and may result in disciplinary action. As a member of the University’s student body, I will complete this assessment in a fair, honest, responsible and trustworthy manner. This means that: • I declare that this assessment is my own work, except where acknowledged appropriately (e.g., use of referencing). • I will not seek out any unauthorised help in completing this assessment. • I declare that this work has not been submitted for academic credit in another University of Auckland course, or elsewhere. • I am aware the University of Auckland may use Turnitin or any other plagiarism detecting methods to check my content. • I will not discuss the content of the assessment with anyone else in any form, including, Canvas, Piazza, Facebook, Twitter or any other social media within the assessment period. • I will not reproduce the content of this assessment anywhere in any form. Page 2 of 20 Exam OPSMGT 258 Question/Answer Booklet Exam OPSMGT 258 Question/Answer Booklet QUESTION 1 [10 marks] Winnie Cooper and her friends enjoy making friendship bracelets for their other friends. It takes 20 minutes to set up the work area, 90 seconds to make each bracelet, and they like to make them in batches of 100. Assuming that the throughput time for a bracelet averages 10.2 minutes, how many bracelets are in process at any given point in time? For any decimals in your workings including final answers, round off to two decimal places if applicable. Your answer: Show your calculation and/or workings here: Page 3 of 20 Exam OPSMGT 258 Question/Answer Booklet QUESTION 2 [20 marks] BPR (Business Process Redesign) requires a systematic approach to improve processes. When you go out into the real world after graduation, you will need to redesign a business process regardless of the industry you join. Even before you think of your future, if you had working experience in a certain company or organization, including a restaurant or café, you might have wanted to improve things there. Now, this is your opportunity to virtually implement your ideas to redesign a business process in your interest. Specifically, describe how you would apply the first FOUR steps of the Seven Step Method as a systematic approach to your own BPR project. Hint: Using your own (hypothetical) example project scenario, describe things (or activities) to be done in EACH step of the first FOUR steps of the Seven Step Method. Your answers need to include practical aspects of your hypothetical scenario and also apply specific charts/diagrams/tools discussed in the classroom. Title of your hypothetical project: Name of process selected to be redesigned for your hypothetical project: Reasons and goals of your BPR project (you can describe its practical context): [Step 1] Define Problem Area: [1 marks] [1 marks] [2 marks] [4 marks] Your answer: Page 4 of 20 [Step 2] Assess the Current Situation: Exam OPSMGT 258 Question/Answer Booklet [4 marks] Your answer: [Step 3] Analyse the Causes - analyse data and root causes: [4 marks] Your answer: [Step 4] Try Improvement Theory: [4 marks] Your answer: Page 5 of 20 Exam OPSMGT 258 Question/Answer Booklet QUESTION 3 [15 marks] Now you, a product development manager in a global pharmaceutical company, are undertaking a project to develop a new medicine to cure COVID-19. Due to the urgent request from the Ministry of Health, your CEO wants to know when the project can be completed. You have identified six sub-tasks and also obtained the duration of those tasks, shown in the table below. Answer the following questions. For any decimals in your workings including final answers, round off to two decimal places if applicable. Note. As you see in the table below, your duration information is incomplete. Therefore, you have collected additional data and figured that, for the unknown optimistic time (X) of task D, you can actually use the second number that appears in your student ID number (e.g., X = 4 if your student ID number is ‘245397987’ or X = 9 if your student ID number is ‘795312486’) Optimistic time Most likely time Pessimistic time Immediate (month) (month) (month) Predecessor A 3 6 9 None B 5 9 11 A C 7 8 12 A D B, C E 3 6 7 B, C F 1 3 4 D,E What is your student ID? What is your ‘X’? i. Draw the network diagram (i.e., Activity-on-Node) of your project in the space below. To draw the diagram, you can use drawing tools in Shapes here in MS Word, or you can use another easy and quick application such as MS PowerPoint. [3 marks] Task X X+4 X+6 Page 6 of 20 Exam OPSMGT 258 Question/Answer Booklet ii. What are the critical path, its expected duration, and its path variance? Hint. You need to first calculate the expected times and Variances of tasks (fill the blanks below). [4 marks] Task Expected Time A B C D E F Critical path: Expected critical path duration: Critical path variance: Show your calculation and/or workings below: Variance Page 7 of 20 Exam OPSMGT 258 Question/Answer Booklet iii. What is the probability of completing the project (along the critical path) within four months earlier than your expected duration? [4 marks] Your answer: Show your calculation and/or workings here: Page 8 of 20 Exam OPSMGT 258 Question/Answer Booklet iv. By how many months are you 95% sure of completing the project (along the critical path)? [4 marks] Your answer: Show your calculation and/or workings here: Page 9 of 20 Exam OPSMGT 258 Question/Answer Booklet QUESTION 4 [15 marks] Based on the scenario in question 3, the Ministry of Health has requested your CEO to reduce the time (i.e., crashing) to complete the project as early as possible. However, crashing the duration of a project is costly. Fortunately, from the negotiation with the Ministry of Health, your CEO has won government funding, which is worth $800,000 for reducing time to finish the project. Based on the cost estimation for crashing shown in the table below, answer the following questions. Task Max. months of reduction Reduce cost ($) per month 80,000 100,000 110,000 130,000 120,000 70,000 A 2 B 4 C 4 D 3 E 2 F 2 i. What is your best crashing plan? Write down tasks and their month(s) of reduction. [7 marks] Your answer: Show your calculation and/or workings here: ii. What is your recommended total crash cost? [3 marks] Your answer: Show your calculation and/or workings here: Page 10 of 20 Exam OPSMGT 258 Question/Answer Booklet iii. In tasks B and C, your project team should conduct clinical tests to examine the safety and performance of multiple alternative drugs, identified in the previous task (A). What are the things that you can actually try in order to reduce the time to complete those tasks? Briefly discuss three approaches. You can make reasonable assumptions if needed. [5 marks] Your answer: Page 11 of 20 Exam OPSMGT 258 Question/Answer Booklet QUESTION 5 [10 marks] Kevin Arnold and Paul Pfeiffer each repair computers after school for their neighbours. They operate independently as competitors. Kevin and Paul each serve a customer every 5 minutes on average, and the customer arrival rate to Kevin and Paul is 8 customers per hour. Assume the service and arrival rates are exponentially distributed. For any decimals in your workings including final answers, round off to two decimal places if applicable. i. How many customers on average are waiting in a line? [5 marks] Your answer: Show your calculation and/or workings here: ii. How much time does a customer spend in total for their computer to be serviced? [5 marks] Your answer: Show your calculation and/or workings here: Page 12 of 20 Exam OPSMGT 258 Question/Answer Booklet QUESTION 6 [10 marks] Based on question 5, Kevin and Paul have decided to team up and go into business together, working out of one location. Assume the service and arrival rates are still exponentially distributed. For any decimals in your workings including final answers, round off to two decimal places if applicable. i. How many customers on average are waiting in the waiting line? [5 marks] Your answer: Show your calculation and/or workings here: ii. How much time does a customer spend in the waiting line? [5 marks] Your answer: Show your calculation and/or workings here: Page 13 of 20 Exam OPSMGT 258 Question/Answer Booklet QUESTION 7 [20 marks] Based on the linear demand distribution (i.e., price response function), demonstrated in the figure below, answer the following questions. For any decimals in your workings including final answers, round off to two decimal places if applicable. i. Calculate optimal one-to-one pricing profit. [3 marks] Your answer: Show your calculation and/or workings here: Page 14 of 20 Exam OPSMGT 258 Question/Answer Booklet ii. Calculate the optimal single price and its corresponding profit. [6 marks] Your answer: Show your calculation and/or workings here: Page 15 of 20 Exam OPSMGT 258 Question/Answer Booklet iii. Now, the customers are divided into two segments according to WTP (Willingness To Pay) as follows: - Segment 1 = all customers with WTP > $15, - Segment 2 = all customers with WTP ≤ $15. Find the optimal price for EACH segment and calculate the total profits. [7 marks] Show your calculation and/or workings here: Optimal price for segment 1: Optimal price for segment 2: Total profit: Page 16 of 20 Exam OPSMGT 258 Question/Answer Booklet iv. Discuss how price differentiation can be a lever to manage waiting lines and improve customers’ waiting. [4 marks] Your answer: Page 17 of 20 Exam OPSMGT 258 Question/Answer Booklet Page 18 of 20 Exam OPSMGT 258 Question/Answer Booklet Page 19 of 20 Exam OPSMGT 258 Question/Answer Booklet Page 20 of 20