Process analysis

Introduction

1.Describe and illustrate the scope, context and significance of the role of operations management
2.Describe and illustrate the scope, context and significance of manufacturing
3.Explain, justify and apply specific operations management techniques
4.Apply both general and operations management specific software
5Apply team-working, communication and researching skills

Assignment
Produce a report to address the questions given below.
Using copy and paste, embed any diagrams you have used in the MS Word document that forms your assignment report. The files containing the diagrams do not need to be submitted.

Operations Management

Q1)Nicks Race Jackets (20 marks)
Nicks race clothing fabrication shop produces low cost, highly durable race jackets for followers of UCLan Racing. Typically out of the 100 jackets started each month, only 85% are considered good enough to sell. The other 15% are scrapped due to quality problems that are identified after they are completed the production process. Each jacket sells for 250.
As some of the production process is automated, each jacket only requires 10 hours for labour.
Each employee in Nicks business works an average of 160 hours per month. Wages are paid at 10 an hour. Material costs are 40 per jacket. The company overhead cost is around 5,000 per month.
a)Calculate the labour productivity (in per hour) and multifactor productivity ratio (of output value to input value) for a months manufacture.
b)After some study, Nick is considering three options to improve the multifactor productivity ratio.
i.Increase the sales price by 10%.
ii.Improve quality so that only 10% are defective.
iii.Reduce labour, material, and overhead costs by 10%.
Which option has the greatest impact on the multifactor productivity measure?
c)Use this example to discuss the significance of Operations Management to this (or any) business. You are likely to draw on all concepts studied in this module so far.

Q2)The Pert Mustang (30 marks)
Read the case study at the end of chapter 2 (p107) of the set text.
As the Director of Service Operations, using the information provided, prepare the report that Vicky Roberts requested. This is about what is involved in restoring the car, and whether it can be done in time for the Detroit show. The report must reflect the intentions of the new business, and the potential customer profiles identified.
Assume the project will begin immediately, and that 45 days are available to complete the project, including transporting the car to Detroit before the auto show begins. In the report, include discussion of the following activities.
a)Highlight Competitive Priorities aspects (Cost; Quality; Time; and Flexibility) of the new business activity (see Table 1.1, chapter 1).
b)In an appendix, include a table containing the project activities using the letter assigned to each activity in the case study; the time estimates; and the precedence relationships. Include a network diagram for the project. You may use figure 2.4 (p78) as an example of what is required (latest / earliest start / finish times). Determine the activities on the Critical Path, and the estimated Slack time for each activity.
Within the report, comment on the planned restoration schedule, and any issues you consider may arise in implementation.
c)Prepare a project budget showing the cost of each activity and the total for the project. Include this as an appendix.
Within the report, address the following points:
i.Can the project be completed within the allocated budget (left after buying the car) of 20,000?
ii.Determine whether the project will require more than 3,600 in any one week? Identify how to resolve any issues found in the budget.
Assume that activities B, C, and D must be paid for when the item is received (the earliest finish time for the activity). Assume that the costs of all other activities that span more than one week can be spread equally. Each week contains five days.
The report must be no longer than five sides of A4 (plus appendices). Focus on the strategic Fit of your proposals (Strategic Fit), and apply a range of course concepts.

Q3)Magma Digital Software Deployment (30 marks)
Magma Digital offer project support ranging from disaster analysis to project rescue, website design and development services, and business critical software.
The software installation Project Manager has asked you to prepare a schedule for a clients project data below. A particular requirement is for a minimum cost to Magma.
There is a 1,000 per week penalty for each week the project is delayed beyond week 25. Indirect costs relevant to this project are 2,500 per week.

In a short report (4 sides maximum) for the Project Manager, include the schedule (illustrated appropriately), and a table to show your analysis.
Clearly identify your recommended completion week, and the savings youre are making with your proposal.
Use bullet points to highlight the major benefits and limitations of applying this crash analysis to Project Management.

ActivityPredecessorsNormal Time
(NT)Normal Cost
(NC)Crash Time
(CT) Crash Cost
(CC)
Weeks( ,000)Weeks( ,000)
A5234
B8578
CA1010812
DA,B4337
EB3425
FD98614
GE,F2222
HG8659
IC,F97715

Q4)Al Marakeb Machine Company (20 marks)
The Al Marakeb Machine Company is a job shop that specialises in precision parts for businesses in the oil production industry. The diagram shows the current block plan for the key manufacturing centres of the facility.

342
165

The processes and Closeness Factors are:
Trips between Departments
Department123456
1Burr and Grind-1661811
2NC Machines-5
3Shipping& Receiving-2015
4Lathes and Drills-5
5Tool Store-8
6Inspection-

a)Refer to the closeness matrix and use the rectilinear distance to calculate the weighted distance (wd) score.
b)Exchange the positions of the Tool Store and Inspection areas, and re-calculate the wd score.
c)Use trial and error to find a particularly good block plan. Due to excessive relocation costs, Shipping and Receiving must remain in its current location. Recalculate the wd score for your final version.
d)Communicate your work and results in a short report. Discuss the benefits of using this analysis of Layout Design.

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