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BUS002 Operations Management Report

BUS002 Operations Management Report

No Module Learning Outcome  Description 
1 A1 Assess key factors influencing effective management of operations
2 A2 Evaluate the fundamental concepts, tools and techniques of operations management
3 B1 Apply operations management tools and techniques to business problems
4 B2 Approach and manage data and information, problem solving and decision making effectively
5 B3 Analyse data and information using relevant operations management tools and concepts
6 C1 Apply analytical and problem-solving skills to decision problems in business management

Assessment instructions for students

 In this report, you are required to answer ALL SIX QUESTIONS. Your answers are to be presented in a single report format, and in answering these questions, please:

  • state and explain all assumptions, on which your answers are based.
  • support any answers with the appropriate calculations to arrive at the answer.

 While each individual answer might have a different word count from the others, the overall word count should not exceed 2,000 (+ or – 10%) words excluding calculations (numbers and equations, etc.). Order Now from Course Researchers

 Assessment Questions

 Q1. (20%) As Patrick Sportwear Co. completes plans for its new assembly line of Liverpool, it identifies 30 different tasks in the production process. VP of Operations Kevin Keegan now faces the job of balancing the line.  He lists precedences and provides time estimates for each step based on work-sampling techniques.

His goal is to produce 1.000 football shoes per standard 35-hour workweek.

Task Time

(sec)

Immediate Predecessors Task Time

(sec)

Immediate Predecessors
B1 50 E2 18 G5, F3
K4 24 B1 A4 10 E1
K9 27 B1 E3 109 F3
J1 66 B1 D6 53 F4
C2 12 D7 72 F9, E2, E3, K9
J2 22 B1 C1 78 F7, A4
J3 3 C2 D8 78 E3, D6
D5 6 D9 37 D6, A4
G4 79 K4, K9 C3 40 F9, D7
G5 29 K9, J1 B3 72 D7, D8, D9, C1
F3 32 J2 B5 108 C1
F4 92 J2 A1 52 B5
F7 21 J3 B7 18 A1, B3, C3
E1 20 C2 A2 72 B5
F9 126 G4, K4 A3 114 B7, A1, A2, D5

a)      Balance this operation using the shortest operation time rule and compute the efficiency of the line. (10%)

b)      Explore if this balance could be improved (7%).

c)      Discuss if is it possible to improve this balance to 100%? (3%)

 Q2. (20%) Michele Platini and Diego Maradona, planners for a company that makes several models of footballs are about to prepare the capacity plan that will cover six periods. They have assembled the following information.

Period 1 2 3 4 5 6 Total
Forecast 250 300 350 400 500 250 2,050

They intend to start with zero inventory on hand in the first period, and their production rate is 300 units per period. Use overtime at a fixed rate of 15 units per period as needed.  Use subcontracting at a maximum rate of 50 units per period if needed.

Plan for an ending inventory of zero for period 6. Backorders cannot exceed 60 units per period.

Compute the total cost of the plan.

a) Prepare the capacity plan as below using the level strategy. (10%)

Period 1 2  … 6 Total
Forecast          
Production:          
Regular        
Overtime        
Subcontracting        
Output-Forecast        
Inventory:          
Beginning        
Ending        
Average        
Backorders        
Costs:          
Regular        
Overtime        
Subcontracting        
Inventory        
Backorders        
TOTAL        

Level Strategy Operations Costs:  Regular: 4£,  Overtime: 2£,  Subcontracting: 10£,  Inventory: 2£,  Backorders: 30£

b)      Prepare the capacity plan using the chase strategy, and compute the costs. (7%)

Period 1 2  … 6 Total
Forecast          
Production:          
Regular

 

       
Change in  Production        
Costs:          
Regular

 

       
Production level  change        
TOTAL        

Chase Strategy Operations Costs:  Regular: 4£,  Level change: 6£

c)      Compare and contrast the two strategies. (3%)  Order Now from Course ResearchersQ3. (15%)  Franz Beckenbauer and Johan Cruyff are purchasing managers for the headquarters of a large sports marketing company chain with a central inventory operation. Their fastest-moving inventory item has a daily demand of 35 units.     The cost of each unit is £200, and the inventory carrying cost is £25 per unit per year. The average ordering cost is £60 per order. It takes about 5 days for an order to arrive, and there are 252 working days per year.

a)        To minimize the cost, how many units should be ordered each time an order is placed? What is the total annual inventory cost, including the cost of the units? (7%)

b)        How can they manage the days it takes for an order to arrive?  (How does it impact their               operations and costs?) (4%)

c)        b)  Even if there is substantial uncertainty in the parameters in the EOQ-model, it is still quite a    useful model. Discuss why. (4%)

Q4. (15%) Oleg Blokhin Sportwear uses, for the goalkeeper gloves, a time sensitive and unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. He uses 250 pounds per month of the chemical, estimates the holding cost to be £4.25 (because of spoilage), and estimates order costs to be £20 per order. The cost schedules of four suppliers are as follows:

Vendor 1 Vendor 2
Quantity Price/LB (£) Quantity Price/LB (£)
1-49 36.00 1-74 35.00
50-99 34.75 75-149 34.00
100-149 33.55 150-224 32.80
150-249 32.35 225-299 31.90
250-349 31.25 300-374 31.40
350-499 30.50 375-449 30.90
500+ 30.00 450+ 30.50
Vendor 3 Vendor 4
Quantity Price/LB (£) Quantity Price/LB (£)
1-99 34.50 1-199 36.00
100-199 33.75 200-399 34.00
200-399 32.00 400-599+ 32.00
400-499 31.25 600+ 30.00
500+ 30.50    

a. Identify and discuss what quantity should be ordered, and which supplier should be used? (10%)

b. Discuss factor(s) that should be considered besides total cost. (5%)

Q5. (15%) A process considered to be in control measures an ingredient in ounces.

Roberto Baggio, a quality inspector took 20 samples, each with 8 observations as follows:

SAMPLES     OBSERVATIONS        
  1 2 3 4 5 6 7 8
1 11 9 10 13 10 11 9 12
2 7 8 12 9 6 8 11 10
3 13 9 10 12 12 11 10 9
4 9 10 8 8 11 12 10 10
5 12 10 9 7 9 12 11 8
6 11 10 8 9 10 14 12 9
7 13 12 10 11 14 15 8 9
8 10 10 8 9 10 11 10 9
9 8 8 12 11 13 10 12 10
10 10 12 11 10 11 12 10 12
11 11 9 10 12 11 13 9 12
12 12 11 11 11 12 10 11 13
13 13 9 10 12 11 12 10 9
14 9 8 11 12 9 11 10 10
15 8 10 9 14 13 13 11 12
15 9 10 8 11 15 16 12 9
17 11 10 9 12 15 14 8 10
18 12 10 11 9 11 12 9 10
19 9 12 12 12 11 13 12 9
20 11 11 9 10 10 11 8 12

a. Using this information, obtain three-sigma (i.e., z=3) control limits for a mean control chart and control limits for a range chart, respectively. It is known from previous experience that the standard deviation of the process is 0.693. (8%)

6. Discuss, with justification and observation, whether the process is in control or not. (7%) (15%) Nikos Anastopoulos of EMPROSS Strategic IT Consultants, leads the development of a new football stadium.  He developed the activities, durations, and predecessor relationships in the following table for delivering company valuations.

Activity Predecessor Duration in Weeks
A 5
B 3
C A, B 8
D C 3
E 4
F E 10
G F 8
H E 18
I D 20
J D, G, I 7
K I 5
L H 10

a. Draw the Network Diagram, and identify and discuss the project duration and the critical path using the following activity notation (7%)

ES ID

 

Time

EF
SL SL
LS LF

b. Draw the project’s Gantt chart (3%)

c. Change the time of at least two activities that can reduce the overall project duration, draw the new critical path and the new Gantt chart (5%)

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