UNIVERSITY OF TORONTO

FACULTY OF APPLIED SCIENCE AND ENGINEERING

FINAL EXAMINATION, 18th April 2018 at 2PM

DURATION: 2 and % hrs

Fourth Year - Industrial Engineering

M1E459 - Organizational Design

Exam Type - A

Examiner - Stephen C Armstrong

Rooms: GB-304 (A-Ham) and GB404 (HAW-Z)

Student Name

Student Number

Please Note: The exam consists of three (3) sections. Write ALL answers in THIS question paper. i.e. Do NOT use a separate answer booklet.

PRINT CLEARLY - USE THIS PAPER TO ANSWER ALL QUESTIONS

Section #

Actual Marks

Maximum Marks

1 24

2 40

3 36

Total 100

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Please Note: The exam consists of 3 sections.

1) Section I - Multiple Choice Questions - Worth 24%

You are to answer 12 multiple-choice questions.

Circle one (1) answer directly on this paper.

2) Section II— Essay Type Questions by Module - Worth 40%

It consists of 7 modules (7-13) of questions and tests knowledge from each module. There are multiple question from each module. You are required to answer questions from only 5 out of 7 modules. If you answer more than that, we will take the first 5.

Answer those questions in the space provided. If you run out of space you can use pages 24 and 25 at the back. If you do so, make sure you make it clear what question you are answering and that it does not interfere with the Section III question.

3) Section III— Case Study —36%

4) THIS EXAM CONTAINS 25 pages including this title page.

5) Please write ONLY in PEN. NO PENCIL.

6) Please use bullet points when writing to make your answers clearer.

7) Try to be as clear in your handwriting as possible. We read this and if we find it too difficult to read then it is the same as not making a clear argument and so marks MAY be deducted. Please write clearly.

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Section I - Multiple Choice Questions - Worth 24%

MOD 7—MANUFACTURING AND SERVICE TECHNOLOGIES

1. Which kind of production represents mechanization and standardization one step beyond those in an assembly line?

continuous process large-batch technical complexity small-batch

2. What is the purpose of the socio-technical systems approach?

to apply the theory of job enlargement to provide qualified management to an organization in a turbulent environment to offer the most advanced information technology possible to maximize organizati competitiveness to combine human needs with technical efficiency in job design

MOD 8—INFORMATION TECHNOLOGY AND CONTROL

3. What term is used for the process of continually measuring products, services, and practices against those of tough competitors or other organizations recognized as industry leaders?

the balanced scorecard benchmarkiiig Six Sigma enterprise resource planning

4. Which of the following is the term for the efforts to systematically find, organize, and make available a company's intellectual capital and to foster a culture of continuous learning and knowledge sharing so that organizational activities build on what is already known?

enterprise resource planning Six Sigma knowledge management benchmarking

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MOD 9—ORGANIZATION SIZE, LIFE CYCLE, AND DECLINE

5. What is the major goal of an organization during the entrepreneurial stage of the life cycle?

growth goal-setting

C. survival d. complete organizational structure

6. At which stage in the life cycle of a newly established hierarchy do departments emerge and get established, along with the beginnings of division of labour?

entrepreneurial formalization collectivity elaboration

MOD 10—ORGANIZATIONAL CULTURE AND ETHICAL VALUES

7. Why is it that organizations do NOT typically come face-to-face with the power of culture until they try to implement new strategies that go against basic cultural norms and values?

Culture is usually written and when a change i's attempted written cultural policies create obstacles to change. Culture provides members with a sense of self and members rely on this sense and. therefore resistant to change.

. Culture generates commitment to improving market share and a change that alters culture leads to reduced revenues. Culture generally goes unnoticed until a change is made and the power becomes noticeable.

MOD 11—INNOVATION AND CHANGE

8. Which of the following is best example of radical change?

organizational turnarounds and business transformations any series of continual progressive changes affecting one organizational part, and ti another implementation of sales teams in the marketing department bringing new technology to product development

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9. Once decision makers choose to go ahead with a proposed idea, which of the following elements needed for a successful change occurs?

need recognition adoption implementation resource acquisition

MOD 12—DECISION-MAKING PROCESSES

10. What are the first four steps of the rational approach to decision making specifically designed to help a manager do?

follow the scientific method devise a problem solution evaluate alternative solutions identify the problem

11. What is the last step in the rational approach to decision making?

defining the decision problem evaluating alternatives implementing the chosen alternative diagnosing the problem

MOD 13—CONFLICT, POWER, AND POLITICS

12. Which of the following is probably the greatest cause of intergroup conflict in organizations?

goal incompatibility differentiation task interdependence limited resources

Section 2 - Long Answer Type Questions by Module (USE bullet points). Please answer 5 of the 7 modules of questions. Each module has multiple questions. - Worth 40%

2.7.1 Module 7: Core Business Processes and Manufacturing Firms

What is a Core Business within the concept of an integrated enterprise? Provide an example. What is a Non-Core Business Process? Provide an example of this. Describe the relation between money, productivity, value and core business processes. What are the 3 types of manufacturing firms? How does a flexible manufacturing system (FMS) address the increase in complexity? Give one example company for each Describe the principles of Concurrent Engineering and integrated product development

2.7.2 Module - Lean Manufacturing

What is 5 S and how it is applied? Describe the 5 whys, and how they relate to root cause analysis Describe the principles of Continuous Improvement? Provide an example of the use of the application Group Technology (ABB BusBar) to improve operational performance by integrating and automating design and manufacturing knowledge.

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2.8.1 Module - Management Control Systems and Scorecards

What are the parts of a management control system? Describe the key elements of a ERP/MRPII system 'What is a Balance Scorecard? Describe the role of each of the parts in the scorecard. How does Feedback Control Model work with the Balance Scorecard? What are the career opportunities in the IT industry developing ERP Systems

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2.8.2 Module 8 MRPII - Based on the information described below. Fill in the chart with the appropriate values as described in the description. Indicate out of stocks as negative values when calculating.

What day(s) does Pepsi run out of stock? What simple fix will prevent the out of stock(s)? If you need to make the Pepsi, what day should it be ordered to account for lead time?

Description:

The Superbowl is upcoming next weekend. You are the planner at Pepsi and Metro and Loblaws both order from you. Every week they send you their projected schedule for the week. They both expect to order Pepsi on Mondays to Saturdays and Saturday is expected to be a surge because of the Superbowl. This week their order looks like this:

Metro Pepsi Order [5, 5, 6, 0, 0, 6] (Mon-Sat) Loblaw Pepsi Order = [10, 5, 0, 10, 0, 10] (Mon-Sat) (The first element is an order count for Monday, and last element for Saturday)

You start the week (Sunday) with 10 cases in your warehouse. As a planner, you have scheduled orders of Pepsi coming in from Montreal to help with your stock. The maximum they can send you is 20 cases for each order. You have 2 such orders scheduled, 1 for Monday and 1 for Thursday, both containing 20 cases. They are flexible with these dates. Another option for getting more Pepsi is to make it. You specifically lack salts and sucrose so you need to order it. The lead time to order these ingredients and to make it into Pepsi cases takes 3 days.

SUN MON TUE WED THU FRI SAT

On Hand Start of Day

Schedule Receipts (into warehouse)

Gross Requirements I Sales Orders

On Hand, To Next Day

2.9.1 Module 9 Draw the Organizational Life Cycle. - List the stages of the Grieners Organizational life cycle Model. For each stage, give one bullet/sentence, describing the opportunity of the stage and one bullet/sentence describing the potential challenge of the stage. (2 bullets/sentences for each stage)

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2.9.2 Application of Grieners Model - Choose ONE of the following, and discuss:

a) Apple Case Study

As Apple grew, John Sculley was hired from Pepsico to manage process. What stage did this occur? Why? Steve Jobs was fired for a variety of reasons, but mainly he could not contend between the process and idea of innovation at Apple. What stage was Steve Jobs fired in? Why?

b) Samco Machinery Case Study

What where the key issues Samco faced as they tried to scale over the 25 years?

What action did they take to address these issues?

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2.10.1 Module 10 - Draw the Relationship of Environment and Strategy to Organizational Culture diagram. List the two axes. For each axis, what are the corresponding high and low points of each axis (4 total)? What are the 4 types of cultures listed? Give an example of a company/industry for each of the cultures and explain why.

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2.10.2 Answer ONE of the following questions

Discuss the organizational review conducted at Samco Machinery to address the relationship between engineering and manufacturing departments - what were the issues and how were they addressed

"Engineers are organizational people" captured by the corporate culture, ethics, and ethos - discuss.

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2.11.1 Mod 11 - Innovation and Change Describe the four quadrants of Innovation Describe the differences between incremental, and radical change-provide examples Describe the drivers of innovation and change

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2.11.2 Mod 11 - What are the required elements of a successful innovation and change initiative? Explain briefly each element. For each element provide and example of the impact when it is missing?

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2.12.1 Mod 12 - Answer ONE of the Following Questions:

Describe the contingency decision-making framework, which brings together the two dimensions of problem consensus and technical solution knowledge. V

Describe the six-step problem solving process that helps make decisions - provide an application example to illustrate your understanding.

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2.12.2 Mod 12: Answer ONE of the following questions:

What are the three major phases in Mintzberg's incremental decision process model? Why might an organization recycle through one or more phases of the model?

Discuss how a decision-making matrix is designed including the decision criteria and how a team weights the importance of the various criteria - provide an example to illustrate your

understanding.

2.13.1 Mod 13 —Describe the role of socio-political management and conflict resolution during a business transformation initiative. Include the difference between power and authority? Is it possible for a person to have formal authority but no real power? Include a description of your understanding of the critical elements of the conflict resolution process. Define the two paradigms (Technical Consultant V Sociologist) when addressing conflict and change. Provide an example of conflict resolution to illustrate your understanding.

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2.13.2 Mod 13 - Discuss the conflict resolution process including sources of conflict, types of conflict, negotiating strategies, conflict escalation and conflict resolution. Provide an example to illustrate your understanding.

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Section 3 - Integrative Case Study - Worth 36%

Case Study "Ramrod" Stockwell - Handed out separately

Overview

The case centers around the vice president of production, Ramsey Stockwell. He was regarded

as a very competent production man, and his loyalty to the company was unquestioned. He

managed to keep outdated facilities operating and was able to push through the construction of

quite modern facilities in the finishing phases of the production process. But he was in trouble

with his own staff and with other divisions of the company, principally sales. Stockwell failed to

delegate authority to his subordinates. People asked for permission for this and that, but those

who took some action on their own could be severely scolded. Stockwell was isolated socially

from the group of top personnel and didn't handle people very well. He balked at the idea of

learning management skills through leadership training. By contrast, Rob Bronson, the sales

manager, was widely regarded as an extremely bright, capable, likable, and up-and-coming

manager. The relationship between the production department and the sales department was

strained.

Please answer the following Questions: You have been called in to help Benson Metal

Company to find solutions to their management problems.

What are the critical issues facing the company? What are Stockwell 'S vertical sources of power? What are the horizontal sources of power? How could empowerment improve this situation? What solutions and way forward do you recommend for this company?

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