Operations Management
Learning outcomes covered
• Understand the strategic role of operations management in sustaining firm’s competitive advantages
• Understand the competitive priorities in product and service design
• Understand the interdependence of the operations function with the other key functional areas of a firm
• Understand the planning, organizing and controlling functions of the conversion system
• Be able to apply analytical skills and problem-solving tools to operations problems
Scenario and the Task
Task 1: Scenario
Select any service or manufacturing organization of your choice. Keenly observe the existing operations and collect data related to following learning outcomes. Prepare a report by describing the existing practices of the organization based on the below guidelines.
1. Explain why operations management is important for organizations.
2. Understand the link between operations management and strategic planning. Describe the performance objectives which they focus on out of cost; dependability; flexibility; quality and speed and discuss the internal and external benefits of excelling in these performance objectives.
3. Describe the operations functions of the selected organization such as product design and process selection, capacity planning, inventory management and supply chain management.
4. Analyze the operation function within the organization and present the operations function of the organization using the “Process Flow Chart Technique”.
5. Discuss how quality management techniques can be applied to the bottlenecks,potential failure points, and for the improvement of operations functions in the selected organization. Give your recommendations with proper justifications. (20 marks)
Task 02: Linear Programming
The Sky electronics company produces two products as Sky Walkman; a portable DVD player and Sky watch TV; a wrist watch size internet connected color television. The production process for each product is similar in that both the products require a certain number of Labor hours and materials in the assembly department.
Each Walkman takes 6 units of materials and 4 hours of Labor where watch TV takes 4 units of materials and 8 hours of Labor to produce a one unit. During the current production period 80 hours of labor hours are available and 48 kilograms of materials are available.
Each Walkman sold yields a profit of $4 where Watch TV produced may be sold for a $3 profit per unit. Sky Electronics needs to determine the optimum (best) production mix of materials and labor that maximizes their total daily profit.
a. Develop the Linear Programming Model.
b. Use the graphical method to find the optimal solution.
Task 03: Network Planning
ABC (Pvt) Ltd. is a leading organization in UK. The Management has decided to diversify its operations into manufacturing sector. For the establishment of the new division the Operation Manager of the Head office has been laid out the activities, which have to be carried out before the establishment of the operations. Following table shows the activities which have to be finished before starting the new business.
|
Activity
ID
|
Activity description
|
Duration
(In Weeks)
|
Precedent(s)
|
|
A
|
Initial Stage
|
-
|
-
|
|
B
|
Recruit new staff
|
6
|
-
|
|
C
|
Choose new basic equipment
|
2
|
-
|
|
D
|
Choose new special equipment
|
4
|
-
|
|
E
|
Draw new layout
|
3
|
-
|
|
F
|
Train new staff
|
10
|
B
|
|
G
|
Order new basic equipment
|
2
|
C
|
|
H
|
Order new special equipment
|
8
|
D
|
|
I
|
Make structural alterations
|
8
|
E
|
|
J
|
Unpack and inspect equipment
|
2
|
G,H
|
|
K
|
Install services
|
4
|
I
|
|
L
|
Install and commission equipment
|
6
|
J,K
|
Using the above information
• Develop the Network Diagram
• Identify the critical path of the project and determine the project duration by which the business can be expected to begin operations
Task 04 - Prepare a report including answers to above task 01, 02 and 03 not exceeding 6000 words with appropriate report structure and Harvard references.