Answer ALL questions

Case Study

Operation Management and Planning

International standards are playing a pivotal role in leading and shaping the smart manufacturing landscape through different stages of the planning process. The integration and consistency among different rules in each planning process are therefore essential to effectively support industrial automation evolution and to ensure their applicability and capability in maintaining their competitive level. One of the crucial issue discussed in maintaining business competitiveness is an excellent plant decision. A plant is a place where the cost of the product is kept to low to maximize gains. Identifying an ideal location is very crucial; it should always maximize the net advantage, must minimise the unit cost of production and distribution. Plant location decisions are significant because once the plant is located at a particular site, then the organization has to face the pros and cons of that initial decision. The proximity of sources of raw materials is the obvious explanation of the location of the majority of the business operation site. This is important because the raw material should be available within the economic distance to reduce the cost of transportation. As the cost of distribution is an essential item in the overhead expenses in much operating business, so it will be advantageous to be located near to the centre of demand for most of the finished products. Importance of this is fully realized if the material required for the manufacturing of products are not in bulk and freight charges are small. Although all business needs to consider the site selection factors, some of the business locations do not find the critical factors but to start their business operation in a particular district or area with the primary purpose to develop that area. This act may be due to State Government policies regarding workers, pollution and smoke control requirements and waste disposal rules for industries that might affect the society. Besides the physical policy, the climate is also regarded as one of the factors that are really an influencing for specific sectors such as agriculture, leather, and textile. For such industries extreme humid or dry conditions are not suitable for plant location. Climate change for this business plant can affect labour efficiency and productivity. As an operation manager, discuss the following issues and critically elaborate on the situation and suggest a practical solution based on the citation.

Question 1

Based on the case above, elaborate FIVE (5) possible relationship that exists between the factors of site location and operation management in the logistics business. (20 marks)

Question 2

Evaluate THREE (3) main categories of the planning process involves accordingly to the different time horizon and evaluate TWO (2) consequences of the planning process in managing the long term operation of the business. Support each answer with an example, evidence and citation. (50 marks)

Question 3

From the case, describe THREE (3) critical analysis of the possible problem faced by the operating firm. Support your discussion with appropriate citation, evidence and reference.

(30 marks)

[Total : 100 Marks]