Assignment 2 – Managing Operations

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Assessment item 3 – Assignment 2 – Managing Operations

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Value: 35%

Due Date: 03-Jun-2020

Return Date: 25-Jun-2020

Length:

Submission method options: Alternative submission method

TASK

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This assignment consists of three (3) questions. You must answer all questions.

Question 1 – Managing Capacity (10 marks)

PART (A) – 5 marks – limit to 400 words

Discuss some of the major capacity considerations for a hospital. How do these differ from a car manufacturing plant?

PART (B) – 5 marks

IC – Optical is a small optical services store in which they can fill most prescription orders in around 1 hour. The manager has hired you as a consultant to analyse their process of their store. Currently each task is assigned one person and a typical retail working day is 9:00 am to 5:30 pm where the optometrist has a 1.5 hour break (for lunch and attend management meetings) and all other employees have a 30 min lunch break. The information for each task is provided below:

Task	Time (mins/patient)
A. Greet and register the patient	3
B. Optometrist performs eye examination	20
C. Selects frames and lenses	15
D. Glasses are made	60
E. Final fitting of glasses	5

With task D this process can run 6 pairs of glasses at the same time.

The information you need to provide the manager is as follows:

1. Draw a process flow diagram showing the capacity of each task. Identify the bottleneck and determine the current maximum output of the process per day (assuming every patient requires glasses). (3 marks)
2. If another employee was added to the process, where would be the logical place to add this employee. Give your reasoning. (2 marks) – Limit to 150 words

Note: The process flow diagram can be neatly drawn manually or by using drawing software such as MS PowerPoint. Show all working out of calculations.

Question 2 – Scheduling and Executing Operations (15 marks) – Limit to 1000 words

Riverina AutoParts (RAP) are planning to expand their factory to cope with the additional demand for their products and have requested your help as an external consultant. RAP wants to determine what is involved in the project and how soon it can be completed. They have asked for a plan in the form of a Gantt Chart and Network Diagram with relevant activity times, project duration and identification of the critical path. 

In the initial planning stages, you have decided that there are three major phases (or sub-projects) in this expansion project these being; building, processing equipment and material handling system. 

After spending a few weeks in scoping the work, you have established a list of activities according to the three major components. Discussions with contractors and the client have helped you to draw up a table of estimated durations
for the activities and the relationships among them as indicated below.

Activity	Activities on which it is dependent	Duration (in weeks)
BUILDING PHASE
A1 – Design building	none	6
A2 – Ordering Material	A1	5
A3 – Construction of building	A2	1
PROCESS EQUIPMENT PHASE
B1 – In-house design of equipment	A1	2
B2 – Detailed design by consultant	B1	8
B3 – Tender exercise for equipment	B2	4
B4 – Installation and commissioning of equipment	B3	4
MATERIAL HANDLING SYSTEM PHASE
C1 – Study of processing equipment by consultant	B2	2
C2 – Design of material handling equipment	C1	4
C3 – Purchase of equipment	C2	4
C4 – Installation and commissioning	C3	4

1. Write a report on the project plan required by RAP senior management, offering sufficient information for senior management to review and understand the implications of embarking on such a project. (10 marks)
2. You realise that the information that RAP has requested is inadequate and suitable for only basic planning purposes. In a second section of the report, present your recommendations on what other information is relevant and what techniques and systems should be used to plan, monitor and control the project. (5 marks)

Note:

• For part (a) the network diagram and Gantt chart can be neatly drawn manually or by using drawing software such as MS PowerPoint (you are not to use any project software such as Microsoft Project). Limit your reports written response to 400 words this does not include diagrams, charts or data tables.
•  For part (b) limit your reports written response to 600 words.

Question 3 – Inventory Management (10 marks)

PART A (6 marks)

Tamworth Wind Turbine Distributors (TWTD) is involved in distributing wind turbine units to a range of customers where they distribute 1250 wind turbine units in 1 year. The cost of each unit is $20.00. The carrying cost is 22% of the cost per unit . It has been established that the cost of placing an order is $250.00 per order. 

1. At present the TWTD follows a policy of buying all 1,250 wind turbine units that it requires in 1 year. These units are bought in one purchase order, at the beginning of the year. Determine the economic order quantity and calculate the savings that TWTD will make if it uses the Economic Order Quantity model. (3 marks) – Show all working out 
2. Explain the limitation of this basic mathematical model (i.e. EOQ model) and discuss what other features or factors need to be considered to make it more realistic. (3 marks) – Limit to 350 words

PART B (4 marks) – Limit to 500 words

There are a number of modern inventory control methodologies. However, there are still many organisations which have not adopted them. Discuss why this may be the case and how organisations can be persuaded to adopt modern inventory control methodologies. Provide examples of types of inventory control methods to be considered to support your argument.

RATIONALE

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This assessment task will assess the following learning outcome/s:

• be able to analyse and critically appraise an organisation’s operations.
• be able to determine and apply appropriate tools and techniques in a variety of operations situations.
• be able to collect, analyse and interpret operational data.
• be able to formulate and evaluate alternative approaches in operations management.
• be able to establish standards and develop controls applicable to various processes.
• be able to respond to changes in the business environment by deploying the appropriate operations strategy.

This assignment is based on topics covered in MGT310 and involves the application of theoretical concepts and both quantitative and qualitative techniques. The objective is to develop skills in creating frameworks and models of typical problems and issues faced in Operations Management, analysing them and interpreting them in support of the decision making process and various OM strategies to be applied, and offer insights into how theoretical concepts, models and systems can be modified and applied in practical or realistic situations.

MARKING CRITERIA AND STANDARDS

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The following rubric applies across all questions for this assignment where applicable. Students’ ability to explain theory, concepts and results, develop strategies, ability to problem solve and accuracy of calculations applied are assessed along with the presentation of their report.

Criteria	HD (85 – 100%)	DI (75 – 84%)	CR (65 – 74%)	PS (50 – 64%)	FL (< 50%)
Concepts explanation	Comprehensive / detailed knowledge of topic theory and shows in-depth awareness of variety of concepts and ideas.	Good knowledge of topic theory and awareness of variety of concepts and ideas.	Has given a reasonably factual and/or conceptual knowledge base of theory, concepts and appropriate terminology.	Evidence of limited knowledge of topic theory and some use of appropriate terminology.	Lacks evidence of knowledge relevant to the topic theory and/or significantly misuses terminology.
Calculation Accuracy	Marks are given based on the accuracy of the results and the calculation process if applicable.
Reflection, discussion, and problem solving analysis	Excellently demonstrate and integrate critical/ reflective analysis. Evidence of outstanding reflective thinking skills. Can critically review and present the appropriate evidence (models, techniques, systems, factors etc.) for supporting conclusions / recommendations.	Good demonstration and integration of critical / reflective analysis. Evidence of good reflective thinking skills. Can clearly present the appropriate evidence for supporting conclusions / recommendations.	Demonstrate reasonable critical / reflective analysis. Can review and present most of the evidence for supporting the conclusions / recommendations but some of the evidence is missing or incorrect.	Some attempt at critical/reflective analysis. Can review and present some of the evidence for supporting the conclusions / recommendations.	Does not demonstrate any attempt at critical/ reflective analysis. Provide little / no evidence for supporting conclusions / recommendations.
Presentation and referencing	A polished and imaginative approach to the topic. Very professionally presented assignment document. Message is very clear and logical with no spelling or grammatical errors throughout the report. Highly relevant refereed literature / articles presented in perfect APA style. Articles used to outstanding effect in the response.	Report is well presented. Formatting is consistent throughout the report. Message is clear and presented well with few spelling or grammatical errors. Very relevant refereed literature / articles presented in perfect APA style. Articles used to very good effect in the response.	Report is well presented with some inconsistent formatting. Some parts of the message are unclear. Relevant refereed literature/ articles presented in near perfect APA style. Articles used to good effect in the response.	Report is adequately presented with some attempt to organise in a logical manner the assignment document. Potentially relevant refereed literature / articles presented with some errors in APA style. Articles used to some effect in the response.	Report is poorly presented, disorganised/ incoherent. Less than 3 relevant literature / articles, and/or not presented in APA style. Articles not used to good effect in the response.

PRESENTATION

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The following points are a general guide for presenting assessment items:

• Assessment items should be typed.
• Use 1.5 line spacing.
• Use a standard 12-point font such as Times New Roman, Calibri or Arial.
• Left-justify body text.
• Use section heading and sub-headings and these are to be in bold text.
• Most importantly, always use your spelling and grammar checker. Remember this does not pick up all errors, so you must also manually and carefully edit your work.
• Always cite and reference all sources of information used in assessments (see plagiarism below).
• Provide a single reference list that always starts on a new page.
• Indicate the number of words (do not include what is inside citation brackets or in reference list).
• If you are required to submit a hard-copy assignment include a cover/title page, page numbers and in the header/footer indicate student name, student number, and subject name.

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