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.). 
| 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.
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.
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%)
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%)
Chase Strategy Operations Costs: Regular: 4£, Level change: 6£ c) Compare and contrast the two strategies. (3%) 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%)