Operations Management - MNGT 401 Marks: 20 Fall 2016-2017 Working Guidelines 1. Submit original work, it should not be copy and paste, if found any such report, zero marks will be awarded. 2. It will be checked plagiarism. 3. Read thoroughly, understand each point, and then plan to work. 4. Submit only through UMS portal. 5. Submission deadline - 31/10/2016 6. Delayed submission will deduct marks accordingly. 7. The assignment will not be accepted after the final exam. 8. Format: Cover page (UMS logo, Project title, Name and ID No. Semester, University Name, City Name, page no. 9. There are five questions. Each carry 4 marks. Instructor: Dr. Nitin Kumar Upadhye, Associate Professor n.upadhye@ums.ae; 056-360 8330 Page#1 Assignment Note: Assume that you have been appointed as Operations Manager of a well reputed construction company in UAE. Your main task is to evaluate the various resources to operationalize business activities effectively and efficiently. At the same time it is expected to justify the resources utilized to produce the product or service in your complex organization making it profitable and maintaining the ethical, social and cultural integrity. You have identified the following four key areas of strategic importance for your organization. Apply the principles of Operations Management learned by you to optimize the resources. 1. The production supervisor has reported that the absenteeism in the concrete section is very random during past few months. The details are given in the following table: Month Apr'16 May'16 Jun'16 Jul'16 Aug'16 Sep'16 Number of workers absent 180 196 168 179 191 195 Prepare a forecast for the month of Oct'16 using following approaches. a. The approximate Nave approach b. A Three period moving average c. A five period moving average d. A weighted average using weights of 0.5 (most recent, 0.30 and 0.20 for previous two months e. Exponential smoothing with a smoothing constant of 0.40 (Hint- from Chapter 3 - Forecasting) Page#2 2. The organization has received an order to construct an exhibition center for EXPO-2020. The following table contains information related to the major activities. a. Draw a precedence diagram (network diagram) using AOA (Activity of Arrow) b. Find the critical path. c. Determine the expected time period of the project. Activit y A B C D E F G H I J K End Immediate Predecessor Expected time (months) A C A E B and D F and I G and H H K and M 6 8 3 9 5 8 14 12 3 4 15 (Hint- from Chapter 4 - Project Management) 3. The construction manager needs approximately 8,500 Metric tons of cement per year. Currently the company purchases 750 MT per order and pay 90 dirhams per MT. The supplier has just announced that orders of 2000 MT or more will be filed at a prices of 60 dirhams per MT. Your organization incurs a cost of 3000 dirhams each time it submits an order and assigns an annual holding cost of 18 percent of the purchase price per MT. a. Determine the order size that will minimize the total cost. b. If the supplier offered the discount at 3000 MT instead of 200 MTs, what order size would minimize total cost? (Hint- from Chapter 5 - Inventory Management) 4. The Supply Chain Supervisor complained you that the orders processing time is a real bottleneck for his department. The new software installed last month is hanging in between. It was expected with the new software the processing time of an order will be 12 minutes as an average. Five samples of four observations (k = 4) each have been taken. Construct the Page#3 X-bar and R Chart (mean and range chart) after calculating the upper and lower control limits. Do the result suggests that the process is in control? Sample 1 12.3 11.8 11.9 12.2 48.2 Total (x) Hint: Sample 2 12.0 12.1 11.9 11.9 47.9 Sample 3 12.5 12.1 12.3 11.9 48.8 Sample 4 11.9 12.1 11.8 12.2 48.0 Sample5 12.3 12.6 11.6 11.9 48.4 Given: For k = 4 A2 = 0.73 D3 = 0 D4 = 2.28 xx = x / k and Range (R) = Largest - smallest R bar = R / k UCL xx = X-double bar + A2 * R-bar LCL xx = X-double bar - A2 * R-bar UCL R-bar = D4 * R-bar UCL R-bar = D3 * R-bar (Hint- from Chapter 6- Managing Quality) 5. Based on the solution for the above key areas, prepare a detailed report to be submitted to the top management highlighting the importance of optimization tools and techniques used by you. Also focus on other areas such as team working, quality systems, etc. to be incorporated in your organization to overcome these problems in future. ****************************************** Page#4 Dear student, Please I'm just trying to help you because I believe you need quality answer that is why you paid your money in this platform. In any case you don't like my suggestion kindly igore it rather than alerting the moderator. By luck if you receive another answer from a tutor then select the answer and ignore my suggestion. Please don't alert the moderator because I have placed my account at risk just to let you know why so far you have not received the response that you desire. Regards Prof. James Anderson