MGMT20130 Operations Management Oz Assignments

MGMT20130 Operations Management Oz Assignments

MGMT20130 Operations Management Oz Assignments

Problem 1

Crayola meets the competitive priority cost by setting a clear company pillar of observing quality while producing their products. The company ensure that they supply their customers with products that meet their needs at the lowest possible prices. Designs are done and analysis completed to ensures that the final product is manufactured at the lowest cost possible.

Another competitive business strategy addressed by the company in its pillar is quality. The company is usually keen in its quality by maintaining ethical responsibility to ensure that all design criteria are met. Manufacturing processes are monitored closely to eliminate bottlenecks and reduce possible errors (Reid, R. Dan, & Sanders, 2015, p. 15).

The company ensures that they maintain agility and resilience to ensure that goods arrive to customers on time. They move quickly to ensure that the daily target for production of crayons, markers and paint is met. Also, they are keen to withstanding any challenges to achieve their daily targets.

The company achieves flexibility in customizing products to their customers by being innovative. The company come up with unique designs to meet specific needs of customers.

Crayola has a huge market share in the world hence the need to expand internationally. The world population is largely accounted for by kids between the ages of 0 to 14 hence the need for the company to expand globally.

The company’s ability to be innovative will boost them in understanding the needs of children worldwide hence meet their needs (Heizer, Render, & Munson, 2016, p. 44).

The major challenges that they might face is the government policies set against tree cutting which is a major raw material in their production.

The competitive strategy that will pose a big challenge to the company is its flexibility in terms of variety. Expanding internationally means meeting different customer base which different needs and culture hence the need for mass variety production.

Problem 2

Year 1

Year 2

Year 3

Year 4

 

Their multifactor productivity of the hospital increased from Year 1 to 3 the decreased on the fourth year due to the following reasons:

A. Increase in the charges per abdomen procedure from $690 in previous year to $695 hence reducing the volume of work since patients transferred to other institutions

B. Due to increase in labor, overhead costs and material cost despite reduction in works.

C. The labor productivity also increased in the first three years reducing in the final year. This was due to the fact that the hospital hired more staff despite registering low volume of works.

Problem 3

Cost for space and equipment = $140,000

Selling cost = $3,500

Material and labor cost = $1,750

Profit for 1 bike = 3,500 -1,750 = $ 1,750

Taking number of bikes sold to break even = x

Then;

Cost for space and equipment = $190,000

Selling cost = $3,500

Material and labor cost = $1,350

Profit for 1 bike = 3,500 -1,350 = $ 2150

Taking number of bikes sold to break even = x

Then;

Problem 4


 

The management should not release the new cereal line before doing a test market which will only cost $120,000.

Problem 5

The company initially specialized in production of plastics connectors for electrical equipment. In this sector, they met the needs of the clients through observing their needs and coming up with special designs that would meet their requirement. Through this arrangement, the company achieved customization of products hence explaining their flexibility as well as quality control through calculated designs (Heizer, Render, & Munson, 2016, p. 24).

When the team expanded to mold fabrication and plastic production, they maintained their quality through forming of design teams which would work on orders from clients. The design team led by a project design engineer would work on the order from the client to ensure that all the needs are met before fabrication. The team involves the client closely to ensure that they are satisfied with the design specifications before the process of fabrication commences.

The plant layout is also designed to ensure that minimal time is wasted during the design process. The competitive strategies are keen on the time for production of a given product. The stages for production are sorted in such a way that the product moves at docking then passed through steps to testing and commissioning before it is sent to the client. That saves a lot of time. Testing of the final products is also important to maintain top notch quality before products are sent to the client (Films Media Group, & Video Arts (Firm), 2016, p. 4).

Problem 6

Develop a Pareto diagram to prioritize the causes of the problem.

 

 

 


 

Problem 7

 

1

2

3

4

5

6

7

x chart

R chart

D1

46.5

37.2

31

26.4

24.6

22

21.2

29.84286

25.3

D2

8.4

12.1

18.7

18

15

13.7

12.5

14.05714

10.3

D3

9.5

8.3

10.6

8.5

7.2

8

7.5

8.514286

3.4

D4

8.2

22.6

25.2

30.5

20

22.8

21.5

21.54286

22.3

D5

25.6

24

19.3

19.3

17.8

18.2

17.8

20.28571

7.8

D6

9.7

12.5

9.3

12.8

14.8

12.5

9

11.51429

5.8

D7

19.5

11.5

7.3

20.2

16.8

14.1

8.2

13.94286

12.9

 

 

 

 

 

 

 

 

17.1

12.54286

Upper control limit for x chart

Lower control limit for x chart

Central line for R chart

 

1

2

3

4

5

6

7

x chart

R chart

D1

46.5

37.2

31

26.4

24.6

22

21.2

29.84286

25.3

D2

8.4

12.1

18.7

18

15

13.7

12.5

14.05714

10.3

D3

9.5

8.3

10.6

8.5

7.2

8

7.5

8.514286

3.4

D4

8.2

22.6

25.2

30.5

20

22.8

21.5

21.54286

22.3

D5

25.6

24

19.3

19.3

17.8

18.2

17.8

20.28571

7.8

D6

9.7

12.5

9.3

12.8

14.8

12.5

9

11.51429

5.8

D7

19.5

11.5

7.3

20.2

16.8

14.1

8.2

13.94286

12.9

Long wait calls were observed on day 1, 4 and 5 with the lowest call wait average time being day 3.

Problem 8

Construct a network diagram for the office renovation project.

Activity

Expected Time

Variance

A

4

4/9

B

7

49/36

C

11

49/36

D

7

1

E

5

1/9

F

12

49/36

G

6

4/9

Path

Time

A-C-E-G

4+11+5+6 = 26

B-D-E-G

7+7+5+6 = 25

B-F-G

7+12+6 = 25

Since there are three paths:

Reference

1. Films Media Group,, & Video Arts (Firm). (2016). Managing Project management and Processes.
2. Heizer, J., Render, B., & Munson, C. (2016). Operations Management. Pearson Australia Pty Ltd.

3. Heizer, J., Render, B., & Munson, C. (2016). Operations Management. Pearson Australia Pty Ltd.
4. Reid, R. Dan, & Sanders, N. (2015). Operations Management. John Wiley & Sons Inc.