MNO2601/001/3/2021

Tutorial Letter 001/3/2021

Production and Operations Management

MNO2601

2021

Department of Operations Management

IMPORTANT INFORMATION

Please register on myUnisa, activate your myLife e-mail address,

and make sure that you have regular access to the myUnisa module website
(MNO2601-2021-S1) for as well as your group website.

BARCODE
 CONTENTS
Page

1 INTRODUCTION ............................................................................................................................... 3
2 PURPOSE AND OUTCOMES .......................................................................................................... 4
2.1 Purpose.............................................................................................................................................. 4
2.2 Outcomes........................................................................................................................................... 4
3 CONTACT DETAILS........................................................................................................................ 5
3.1 Lecturer .............................................................................................................................................. 5
3.2 University ........................................................................................................................................... 5
4 RESOURCES .................................................................................................................................... 6
4.1 Prescribed book ................................................................................................................................. 6
4.2 Joining myUnisa ................................................................................................................................ 6
4.3 Library services and resources ......................................................................................................... 6
5 HOW TO STUDY ONLINE................................................................................................................ 7
5.1 What it means to study fully online.................................................................................................... 7
5.2 myUnisa tools .................................................................................................................................... 7
6 ASSESSMENT .................................................................................................................................. 8
6.1 Assessment plan ............................................................................................................................... 8
6.2 Assignment due dates and unique numbers..................................................................................... 9
7 IN CLOSING .................................................................................................................................... 10
ADDENDUM ................................................................................................................................................ 11

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 MNO2601/001/3/2021

Dear Student

1 INTRODUCTION

I am pleased to welcome you to the module Production and Operations Management

(MNO2601). I hope that you will find the module both interesting and rewarding. If you grasp the
potential economic impact of “adding value”, then you will agree that a country's economic
growth depends directly on adding value and being productive.

Due to the ministerial request to extend the 2021 registration dates, Unisa had to amend both
the semester dates and the assessment arrangements for the 2021 academic year.

During 2021 we will have only one semester and only one tuition and assessment period.

You will be well on your way to success if you start studying early in the year and resolve
to do the assignments diligently.

It is imperative to study Tutorial Letter MNALLEQ/301/4/2021 thoroughly, as it provides

important information on general aspects of all undergraduate modules.

This tutorial letter contains the assignments and assessment criteria, as well as instructions on
preparing and submitting the assignments. In addition, it contains all the information you need
about the study material and how to get it. Study this information carefully and make sure that
you obtain the prescribed book as soon as possible. Some of your study material may not be
available when you register. The study material may be accessed online on myUnisa.

Right from the start, I must point out that you must read all the tutorial letters that you receive
during the year immediately and carefully. These tutorial letters will always contain important
and sometimes urgent information. Also, visit the MNO2601 website frequently because
important announcements will be posted there from time to time. You will be allocated an e-tutor
who will assist you to work through the learning content in preparation for the final assessment.

Assignments must be uploaded on myUnisa. You may also chat to your lecturer and fellow
students about your studies and difficulties you have using the same platform. You may
participate on the online discussion forums via myUnisa. Your e-tutor can be accessed via
myUnisa. Podcasts and lessons tools have also been made available on myUnisa.

Visit the website for MNO2601 on myUnisa frequently. The website for this module is
MNO2601-21-S1.

Getting started …

Owing to the nature of this module, you can find your study material online. Go to the myUnisa
website at https://my.unisa.ac.za and log in using your student number and password. Click on
myModules at the top of the webpage and then on Sites in the top right corner. In the new
window, click on the grey star icon next to the modules that you want displayed on the
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navigation bar. Close the window in the top right corner, then select the option Reload to see
your updated favourite sites. Now go to your navigation bar and click on the module that you
want to open.
2 PURPOSE AND OUTCOMES

2.1 Purpose

Students who have completed this module successfully will be equipped with knowledge and
skills related to a basic understanding of the role and functioning of production as well as
operations management. They will also understand selected design and planning tasks and
responsibilities of production and operation managers as well as productivity management
regarding the management of operations in organisations.

This module is delivered using myUnisa and the internet, as well as peer group interaction and
e-tutor support.

2.2 Outcomes

For this module, you must achieve several learning outcomes:

Learning outcome 1

Students understand the functioning and contribution of production and operations management
(POM) in businesses, organisations or other institutions in South Africa, and appreciate its
importance.

Learning outcome 2

Students are familiar with the use of selected productivity terminology and can explain the basic
components of a productivity management model.

Learning outcome 3

Students understand certain selected aspects of the design of the POM system and can
demonstrate their practical application.

Learning outcome 4

Students understand certain selected aspects of planning and control of the POM system and
can demonstrate their practical application.

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3 CONTACT DETAILS

3.1 Lecturer

The primary lecturer for this module is Dr Anthea Amadi-Echendu.

Department: Operations Management

Telephone: 012 429 2627
E-mail: amadiap@unisa.ac.za

You are welcome to contact me to discuss any queries about or problems with this module.
Direct all queries that are not of a purely administrative nature but are about the content of this
module to me. Please always have your study material and student number with you when you
contact me.

3.2 University

To contact the university, follow the instructions on the Contact us page on the Unisa website.
Remember to have your student number available whenever you contact the university.

Whenever you contact a lecturer, please include your student number to enable the lecturer to
help you more effectively.

Make administrative enquiries as follows:

Directorate/ Business Description of Short SMS E-mail address

unit enquiry code
Student Admissions Applications and 43578 Study-info@unisa.ac.za
and Registrations registrations
Student Assessment Assignments and 43584 For assignments:
Administration examinations Assign@unisa.ac.za
For examinations:
Exams@unisa.ac.za
Despatch Study material 43579 despatch@unisa.ac.za
Finance Student accounts 31954 finan@unisa.ac.za
ICT (myUnisa and myUnisa 43582 MyUnisaHelp@unisa.ac.za
myLife) myLife e-mail MyLifeHelp@unisa.ac.za

Study @ Unisa is available on myUnisa: www.unisa.ac.za/brochures/studies. This brochure

contains all the tips and information you need to succeed at Unisa.

5
4 RESOURCES

4.1 Prescribed book

The prescribed book for MNO2601 is:

Slack, N, Brandon-Jones, A, Johnston, R, Singh, H & Phihlela, K. 2017. Operations

management: Global and Southern African perspectives. 3rd edition. Cape Town:
Pearson.

Other editions do not contain all the information on which you will be tested in the assessments.

4.2 Joining myUnisa

The myUnisa learning management system is Unisa’s online campus that will help you to
communicate with your lecturers, other students and the administrative departments. To claim
your myUnisa account, please follow the steps below:

1. Visit the myUnisa website at https://my.unisa.ac.za/portal.

2. Click on the Claim Unisa login link on the top of the screen under the orange user ID box.
3. A new screen will load, prompting you to enter your student number. Please enter your
student number and click continue.
4. Enter your surname, your full name, your date of birth and, your South African ID number
(South African citizens) OR your passport number (foreign students). Then click continue.
Remember to enter either an ID number or a passport number, NOT both.
5. Please read the guidelines and click all the checkboxes to acknowledge that you have
read all the information provided. Once you are done, click the Acknowledge button to
redirect you to the final page of the process.
6. The final page will display your myLife e-mail address and your myLife AND myUnisa
password. This password will also be sent to the cellphone number displayed on the page
for safekeeping.
7. Please note that it can take up to 24 hours for your myLife e-mail account to be created.

Remember that the password provided is your myUnisa AND myLife password.

4.3 Library services and resources

The Unisa Library offers a range of information services and resources:

• For detailed library information, go to https://unisa.ac.za/library.

• For research support and services (for example, personal librarians and literature search
services), go to https://www.unisa.ac.za/sites/corporate/default/Library/Library-
services/Research-support.
• The library has created numerous library guides: https://libguides.unisa.ac.za.

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 MNO2601/001/3/2021

Recommended guides

• Request and download recommended material: https://libguides.unisa.ac.za/request

• Postgraduate information services: https://libguides.unisa.ac.za/request/postgrad
• Finding and using library resources and tools: https://libguides.unisa.ac.za/research-
support
• Frequently asked questions about the library: https://libguides.unisa.ac.za/ask
• Services to students living with disabilities: https://libguides.unisa.ac.za/disability
• Assistance with technical problems accessing the Unisa Library or resources:
https://libguides.unisa.ac.za/techsupport

You may also send an e-mail to Lib-help@unisa.ac.za (please provide your student number in
the subject line).

5 HOW TO STUDY ONLINE

5.1 What it means to study fully online

Studying fully-online modules differ completely from studying some of your other modules at
Unisa.

• All your study material and learning activities for online modules are designed to be
delivered online on myUnisa. Although we give you a printed copy to support your
studies, the module is designed to be delivered online.
• All of your assignments must be submitted online. This means that you must do all
your activities and submit all your assignments on myUnisa. Do NOT use couriers or the
South African Post Office to post your assignments to Unisa.
• All communication between you and the university happens online. Lecturers will
communicate to you by e-mail and by using the Announcements and Discussion
Forums on myUnisa. You can also use all of these ways to ask questions and contact
your lecturer.

5.2 myUnisa tools

You can access the study material on myUnisa and save it on your hard drive to access it even
when you are offline. You therefore do not have to wait for printed study material before you
start studying – you can go online as soon as you have registered and find all your study
material there. You will be able to read and re-read the material and start working on your
assignments and doing other activities.

It is very important that you log in to myUnisa regularly. I recommend that you log in at least
once a week or every 10 days to do the following:

• Check for new announcements. You can also set up your myLife e-mail account to
receive the announcements by e-mail or on your cellphone.
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• Do the Discussion Forum activities. When you do the activities for each study unit, we
want you to share your answers with the other students in your group. You can read the
instructions and even prepare your answers offline, but you have to go online to post your
messages.
• Do other online activities. You can upload your assignment answers on myUnisa.

I believe it is important to highlight the tools that you will use for your formal assignments. In this
module, there are different types of communication using different myUnisa options:

• Discussions. This is the place where the online discussion forums take place and where
you can share your ideas and insights with other students in your group.
• Assignments. The assignments must be uploaded on myUnisa.
• Podcasts. Various podcasts were recorded and posted on myUnisa to assist with certain
components of the syllabus.
• E-tutor support. E-tutors will be appointed to assist students to work through the syllabus.
These interactions occur on myUnisa.
• Lessons. Additional information has been made available to assist students to work
through the learning content.

5.3 Predatory providers of classes and examination support

There are multiple fraudulent and predatory providers of classes and examination guidance to
Unisa students that you need to know about. Note that Unisa does not have agreements with
any of these agencies/schools/colleges to provide tuition or support to our students. Unisa also
does not provide these predators with study material, guidelines or your contact information.

These providers may not have the necessary expertise to assist you and often charge
exorbitant fees. If you receive an invitation from any agency or college, it is best to confirm with
your lecturer if the provider is a legitimate Unisa partner.

6 ASSESSMENT

6.1 Assessment plan

Your final mark for this module will be calculated as follows:

Weighting of the module: assessments 1-5 (65% ) and final assessment mark (35% )

Assignments 01 to 05 collectively will count 65% towards your final mark (that is, each
assignment will contribute towards your final mark). It will, therefore, be to your advantage to
obtain a good mark for each assignment.

A higher module mark will help you to achieve a higher final mark for MNO2601. You will need a
final mark of 50% to pass this module.

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In the final assessment, students will have to obtain a final mark of at least 40% to qualify for
the supplementary examination.

6.2 Assignment due dates and unique numbers

Below, is a breakdown of the assignments and their due dates during the year:

2021 year
Assignment Due Weight Unique
number Date number
01 30 May 2021 10% 629969

02 19 June 2021 10% 576319

03 10 July 2021 15% 793233

04 31 July 2021 15% 606313

05 15 August 15% 869829

2021
06 Self- 0 N/A
assessment
07 Final 35%
assessment
3 September
2021

To submit an assignment on myUnisa:

• Go to myUnisa.
• Log in using your student number and password.
• Select the module.
• Click on Assignments in the menu on the left-hand side of the screen.
• Click on the number of the assignment that you wish to submit.
• Follow the instructions.

Do NOT upload a protected document as this will hamper the online marking process.

This module follows a continuous assessment and all assignments contribute towards your final
mark that you will obtain. The final assessment will be a non-venue-based exam and thus it can
be accessible from your place of choice. The final assessment will also be a “open-book” exam
which will require you to apply all the knowledge, skills and techniques you have mastered
throughout the course. The assessments are set in English.

Please note that the marks that you obtain for the compulsory assignments is not an indication
of your level of understanding of the study material or what marks you can expect in the final
assessment. Limited copies of old examination papers are placed on myUnisa by the
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Examination Department. Please note that previous examination papers are provided to give
you an idea of the expected format of your final assessment and you should not regard it as an
indication of questions that are likely to appear in the final assessment that you will write.

Please do not contact your lecturers for copies of previous examination papers or the availability
of examination papers on myUnisa, as this is a function performed by the Examination
Department.

7 IN CLOSING

Do not hesitate to contact me by e-mail if you have problems with the content of this tutorial
letter or with any academic aspect of this module.

We wish you a fascinating and satisfying journey through the study material and trust that you
will complete the module successfully.

Enjoy the journey!

Dr Anthea Amadi-Echendu

Lecturer: Operations Management

DEPARTMENT OF OPERATIONS MANAGEMENT

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ADDENDA
ADDENDUM 1: ASSIGNMENTS

ASSIGNMENT 01: COMPULSORY ASSIGNMENT

(Contributes 10% towards final mark)
Due date Unique number

30 May 2021 629969

This assignment for module MNO2601 covers only questions for Topic 1 (Study unit 1), Topic
2 (Study unit 2)

MULTIPLE-CHOICE QUESTIONS (10 marks)

Answer the following ten (10) multiple-choice questions. Each question is of equal value and
counts one mark. No negative marking will be applied.

Juzuki (Pty) Ltd manufactures dynamic automotive products. Their product divisions include a
variety of vehicles, bikes and marine engines. The vehicle manufacturing plants’ production
lines include sedans, 2×’s, 4×4s and SUVs. The tasks in each of the production lines are carried
out in a specific order, in a single flow, and are standardised. For example, a chassis on a
production line will be transformed as the body, engine, interior, wheels, paint and so on are
added. Juzuki must ensure that the production line has enough production stock for the various
tasks. A car should emerge from the process every 30 minutes on average. There should never
be more than 40 cars in the process at any given time. The average assembly time per car is 20
minutes.

Questions 1 to 4

With reference to the transformation process, match the correct number of the item in the left
column with the item in the right column.

a. Assembly of parts
b. Vehicle
c. Aircraft
d. Consumers
e. Chassis
f. Machinery

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Question 1

Transformed resource is:

1. d
2. b
3. f
4. e

Question 2

Transforming resource is:

1. a
2. b
3. c
4. f

Question 3

Process is:

1. a
2. b
3. c
4. d

Question 4

Output is:

1. a
2. b
3. d
4. e

Questions 5 to 8

With reference to the case study, apply the principles of the four Vs by matching numbers 5 to 8
in the left column with the correct option in the right column

Well defined
b. High customer contact
c. High repeatability
d. Flexible
e. Predictability
f. Centralisation
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Question 5

The volume dimension is best described by:

1. a
2. b
3. c
4. d

Question 6

The variety dimension is best described by:

1. a
2. c
3. e
4. f

Question 7

The variation dimension is best described by:

1. b
2. c
3. d
4. e

Question 8

The visibility dimension is best described by:

1. b
2. d
3. e
4. f

Questions 9 to 10: With reference to the case study, apply the performance objectives.

Question 9

Which aspect best describes dependability?

1. ability to change
2. on-time delivery
3. short delivery lead time
4. less expensive process cost

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Question 10

Which aspect best describes speed?

1. ability to change
2. on-time delivery
3. short delivery lead time
4. on specification products

TOTAL: ASSIGNMENT 01 10 x 1 mark = 10 marks

ASSIGNMENT 02 COMPULSORY ASSIGNMENT

(Contributes 10% towards final mark)
Due date Unique number

19 June 2021 576319

This assignment for module MNO2601 only covers questions for topic 3 (study units 3 and 4).

MULTIPLE-CHOICE QUESTIONS (10 marks)

Question 1

One of the primary responsibilities of a manager is to achieve productive use of an

organisation’s resources. Choose the correct option. Stevenson (2009) defines productivity as
an index that measures:

1. goods and services only

2. labour, materials, energy and other resources
3. outputs and inputs used to produce it
4. input divided by output

Question 2

Productivity SA (2010) outlines three sectors under which all economic activities in South Africa
are grouped. The tertiary sector consists of:

1. finance, real estate and business

2. electricity, gas and water
3. mining and quarrying
4. manufacturing

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Question 3

Choose the correct option. Beneficiaries of productivity must be:

a. the environment
b. the economy
c. society
d. operations of the business

1. a
2. a,b
3. a,b,c
4. a,b,c,d

Question 4

Key drivers of productivity include:

a. effectiveness
b. utilisation
c. efficiency
d. elimination of all forms of waste

1. a
2. a, b
3. a, b, c
4. a, b, c, d

Question 5

Why is it important that we measure productivity?

a. The macro-perspective is reflected in the GDP (gross domestic product) per capita of
a country.
b. It comprises the total output (goods and services) of a country divided by its total
population.
c. It takes into consideration aspects of society such as available resources, skills and
economic development.
d. It takes into consideration the success of the economic policy of a country.

1. a
2. a,b
3. a,b,c
4. a,b,c,d

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Question 6

Micro productivity is about:

1. only labour efficiency or labour productivity

2. qualitative improvements in inputs
3. the amount of output that a business can produce
4. cost-cutting in a business

Question 7

The DPA productivity management process consist of five sequential steps namely:

a. productivity measurement
b. productivity diagnosis
c. productivity improvement
d. proactivity accountability
e. productivity disclosure
f. productivity plan

1. f,a,b,c,e
2. d,b,f,a,e
3. a,b,f,e,d
4. a,f,e,a,c

Question 8

Key elements of improving productivity in a business include:

a. gain sharing
b. cooperative labour-management relations
c. profit sharing
d. top-down management structure

1. a
2. a,b
3. a,b,c
4. a,b,c,d

Question 9

There has been an unexpected increase in the cost of an input resource. What is the more
correct cause of action for the business to take to ensure its long-term sustainability?

1. Increase the price of its output

2. Tighten up on its internal production control
3. Use less of the input resource that has become more expensive
4. Keep everything the same and report lower profits
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Question 10

Productivity is relevant to ______________.

1. individuals
2. firms
3. industries
4. all of the above

TOTAL: ASSIGNMENT 02 10 x 1 mark = 10 marks

ASSIGNMENT 03 COMPULSORY ASSIGNMENT

(Contributes 15% towards final mark)
Due date Unique number

10 July 2021 793233

This assignment for module MNO2601 only covers questions for topic 2 (study unit 2), topic 4
(study units 5 and 6).

MULTIPLE-CHOICE QUESTIONS (10 marks)

Answer the following ten (10) multiple-choice questions. Each question is of equal value and is
allocated one (1) mark. No negative marking will be applied.

Juzuki (Pty) Ltd manufactures dynamic automotive products. Their product divisions include a
variety of vehicles, bikes and marine engines. The vehicle manufacturing plants’ production
lines include Sedans, 2x4’s, 4x4’s and SUV’s. The tasks in each of the production lines are
carried out in a specific order, in a single flow, and are standardised. For example, a chassis, on
a production line will be transformed, as the body, engine, interior, wheels, paint, etc. are
added. Juzuki needs to ensure that the production line has enough production stock for the
various tasks. A car should emerge from the process every 30 minutes on average. There
should never be more than 40 cars in the process at any given time. The average assembly
time per car is 20 minutes.

Question 1-2

With reference to the case study, apply the performance objectives

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Question 1

Which aspect best describes quality?

1. ability to change
2. on-time delivery
3. short delivery lead time
4. on specification products

Question 2

Changing over between tasks quickly and without wasting time and capacity is an example of …
.

1. cost
2. speed
3. dependability
4. flexibility

Question 3

Process design ensures that the performance of the process is appropriate for whatever it is
trying to achieve in designing for the environment. Which aspects should be taken into
consideration?

a. the life of the product itself

b. sources of input to a product or service
c. quantities of energies consumed in the process
d. types of waste materials created in the processes

1. a
2. a, b
3. a, b, c
4. a, b, c, d

Question 4

The position of a process on the volume–variety continuum shapes its overall design. Which
process type is associated with an automobile plant?

1. jobbing processes
2. mass processes
3. continuous processes
4. project processes

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Question 5

Using Little’s Law, what is the work in progress?

1. 40 minutes
2. 30 minutes
3. 40 cars
4. 20 minutes

Question 6

Using Little’s Law, what is the cycle time?

1. 40 minutes
2. 30 minutes
3. 0.75 minutes
4. 20 minutes

Question 7

Using Little’s Law, the throughput time is … .

1. 40 minutes
2. 30 minutes
3. 20 hours
4. 0.75

Question 8

It is important to consider the whole supply network and not just individual operations. What are
the reasons for this statement?

a. It provides an understanding of competitiveness.

b. It helps to identify important links in the network.
c. It helps to reduce land costs for the operation.
d. It helps to keep the network focused on long-term issues.

1. a, b, c
2. a, c, d
3. b, c, d
4. a, b, d

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Question 9

There are two main approaches to forecasting. . Qualitative methods used to forecast are … .

a. time series analysis

b. Delphi method
c. panel approach
d. moving average forecasting

1. a and b
2. a and c
3. b and c
4. b and d

Question 10

What would be the best layout position for Juzuki?

1. fixed layout
2. functional layout
3. cell layout
4. product layout

TOTAL: ASSIGNMENT 03 10 x 1 mark = 10 marks

ASSIGNMENT 04: COMPULSORY ASSIGNMENT

(Contributes 15% towards final mark)
Due date Unique number
31 July 2021 606313

This assignment for module MNO2601 covers only the multiple-choice questions for Topic 7
(Study unit 9), Topic 8 (Study units 10 and 11).

MULTIPLE-CHOICE QUESTIONS (10 marks)

Answer the following 10 multiple-choice questions. Each question is of equal value and counts
one mark. No negative marking will be applied.

Jacob is an operations manager who works for a major paper manufacturer that wants to grow
their business and still maintain their strong competitive position. The company has made huge
investments over the year to create optimum conditions for its employees, complemented by a
progressive set of human resources policies and practices. To enhance supply chain visibility,
the plant implemented an integrated distribution service to enable a quicker delivery time to
customers as soon as online orders have been placed.

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To ensure that the production line has enough production stock for the various tasks, the
business uses a stock-control system whereby it waits for stock levels to reach a predetermined
level before they reorder at a fixed quantity. Due to poor delivery and insufficient stock levels,
Jacob has decided to implement a new system to ensure better stock control. Jacob wants
orders to take place every two weeks (when there are only 500 units left in storage) as well as
to keep safety stock. Ideally, it is desired that new stock arrives when stock inventory reaches a
certain predetermined minimum level.

The table below are for Questions 1 to 3.

There is a link between the human resource strategy and work-related stress. The “Impact” and
“What can be done about it?” columns need to be aligned. By using the letters of the alphabet,
indicate the effect and resultant action necessary for numbers 1 to 3 in the table below.

Causes of stress Impact What can be done about it?

1. Staff feel a. Uncertainty may cause
alienated/disaffected. staff to resign or become
unproductive.
2. Staff become c. Staff may perform poorly
overloaded. and become unproductive.
3. Change. e. Staff cannot cope, and the
quality of work may suffer.
b. Plan ahead and work together
with the staff to solve
problems.
d. Involve the staff in decision
making and use teamwork.
f. Change the way that the job is
designed.

Question 1

Staff feeling alienated is most associated with:

1. c and d
2. a and b
3. e and f

Question 2

Staff becoming overloaded is most associated with:

1. c and d
2. e and f
3. a and b

Question 3

Change is most associated with:

1. a and b
2. c and d
3. e and f

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Question 4

Increasing the number of tasks on the same level for an individual is known as ... and increasing
the number of tasks with increased decision-making capabilities is known as … .

1. empowerment; job rotation

2. job enrichment; flexible working
3. job rotation; empowerment
4. job enlargement; job enrichment

Question 5

The planning and control system should be able to cope with uncertainty in demand. The paper
manufacturing plant is an example of ... demand.

1. dependent
2. independent

Question 6

The P:D ratio of an operation indicates how long the customer must wait for the service or
product. When an operation’s services and products are standardised, there is the potential to
create them before demand is known. For our case study, which design option is more apt?

1. Design, create and deliver to order.

2. Create and deliver to order.
3. Partially create and deliver to order.
4. Create to stock.

Questions 7 and 8 deal with the table below.

Sequence Order Process Start Finish Due date Lateness

of jobs received time time time
A 1 5 0 5 6 0
B 2 3 5 8 5 3
C 3 6 8 14 8 6
D 4 2 14 16 7 9
E 5 1 16 17 3 14

Question 7

The optimal sequence for LIFO is … .

1. E, D, C, B and A
2. A, B, C, D and E
3. E, D, C, B and A
4. C, A, B, D and E

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Question 8

The optimal sequence for LOT is … .

1. A, B, C, D and E
2. E, D, C, B and A
3. E, D, B, A and C
4. C, A, B, D and E

Questions 9 to 10 deal with the case study below.

A reconditioned copying machine at the paper plant can operate for seven days a week and 24
hours a day. Statistics recorded for the machine are as follows:

Product changeovers 20 hrs

Regular preventative maintenance 16 hrs
No work scheduled 8 hrs
Quality sampling checks 8 hrs
Shift change times 7 hrs
Maintenance breakdown 18 hrs
Quality failure investigation 20 hrs
Coating material stockout 8 hrs
Labour shortages 6 hrs
Waiting for paper rolls 6 hrs

Should the machine not operate for 59 hours a week due to planned occurrences (unavoidable)
and not for 58 hours due to unplanned stoppages (avoidable), what are the utilisation and
efficiency ratios of the machine?

Question 9

The design capacity is … .

1. 168 - 59 = 109 hours per week
2. 168 - 59 - 58 = 51 hours per week
3. 59 hours
4. 24 hours × 7 days a week = 168 hours per week

Question 10

The effective capacity is … .

1. 168 - 59 = 109 hours per week

2. 168 - 59 - 58 = 51 hours per week
3. 59 hours
4. 24 hours × 7 days a week = 168 hours per week

TOTAL: ASSIGNMENT 04 10 x 1 mark = 10 marks

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 ASSIGNMENT 05 COMPULSORY ASSIGNMENT
(Contributes 15% towards final mark)
Due date Unique number
15 August 2021 869829

This assignment for module MNO2601 only covers the multiple-choice questions for topic 8
(study unit 11), topic 9 (study unit 12) and topic 10 (study units 13 and 14).

MULTIPLE-CHOICE QUESTIONS (10 marks)

Answer the following ten (10) multiple-choice questions. Each question is of equal value and is
allocated one (1) mark. No negative marking will be applied.

Jacob is an operations manager who works for a major paper manufacturer that wants to grow
their business and still maintain their strong competitive position. The company has made huge
investments over the year to create optimum conditions for its employees, complimented by the
progressive set of human resources policies and practices. To enhance supply chain visibility,
the plant implemented an integrated distribution service to enable a quicker delivery time to
customers as soon as online orders have been placed.

To ensure that the production line has enough production stock for the various tasks, the
business uses a stock-control system whereby it waits for stock levels to reach a predetermined
level before they reorder at a fixed quantity. Due to poor delivery and insufficient stock levels,
Jacob has decided to implement a new system to ensure better stock control. Jacob wants
orders to take place every 2 weeks (when there are only 500 units left in storage) as well as to
keep safety stock. Ideally, it is desired that new stock arrives when stock inventory reaches a
certain pre-determined minimum level.

Questions 1-3 deal with the case study below.

A reconditioned copying machine at the paper plant can operate for 7 days a week and 24
hours a day. Statistics recorded for the machine are as follows:

Product changeovers 20 hrs

Regular preventative maintenance 16 hrs
No work scheduled 8 hrs
Quality sampling checks 8 hrs
Shift change times 7 hrs
Maintenance breakdown 18 hrs
Quality failure investigation 20 hrs
Coating material stockout 8 hrs
Labour shortages 6 hrs
Waiting for paper rolls 6 hrs

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 MNO2601/001/3/2021

Should the machine not operate for 59 hours a week due to planned occurrences (unavoidable)
and not for 58 hours due to unplanned stoppages (avoidable), what are the utilisation and
efficiency ratios of the machine?

Question 1

The actual output is … .

1. 168 - 59 = 109 hours per week

2. 168 - 59 - 58 = 51 hours per week
3. 59 hours
4. 24 hours × 7 days a week = 168 hours per week

Question 2

The utilisation is … .

1. 30%
2. 70%
3. 53%
4. 47%

Question 3

The efficiency is … .

1. 30%
2. 70%
3. 53%
4. 47%

Question 4

Methods to adjust capacity at the paper plant include … .

a. changing to a jobbing process

b. working overtime by varying the productive hours worked
c. employing part-time staff to work less than a normal working day
d. adjusting the size of the workforce during periods of high demand

1. a, b and c
2. a, c and d
3. b, c and d
4. a, b and d

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Question 5

There are several benefits of having inventory. Which three of the following options below can
be considered benefits?

a. to anticipate future demands

b. to counteract lack of flexibility
c. to tie up working capital
d. to fill the processing pipeline

1. a, b, c
2. a, c, d
3. a, b, d
4. b, c, d

Question 6

The purchasing manager of the paper plant is facing a dilemma. He would like to use the
economic order quantity (EOQ) to order tyres but is not sure of the conditions necessary for
using the EOQ. Which guidelines will help him with this dilemma?

a. The demand is constant throughout the year (no seasonal pattern present).
b. The set-up cost for each item is the same.
c. The variable cost of production changes with the variation in the size of the order.
d. The production and delivery times are known or can be determined with certainty.

1. a, b, c
2. a, b, d
3. a, c, d
4. b, c, d

Question 7

E-procurement has grown significantly in recent years. Which factor is important for e-
procurement?

1. High spending on products and services leads to higher total costs.

2. E-procurement can find less expensive alternatives as substitutes to products and
services.
3. Higher competition limits supplier identification.
4. Internal processes are excluded from e-procurement.

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 MNO2601/001/3/2021

Question 8

The SCOR model uses three techniques to improve supply chains. One of these techniques is
….

1. disaster flexibility
2. the master production schedule
3. P:D ratios
4. business process modelling

Question 9

ERP integrates information from various functions to plan and control operations activities. The
development of ERP includes:

a. web-integrated ERP
b. ERP
c. MRP II
d. MRP

What is the correct order in which it was developed?

1. a, b, c, d
2. d, c, b, a
3. b, d, c, a
4. d, c, a, b

Question 10

Materials requirements planning is a dependent demand system. The inputs for MRP include
the ... .

1. suppliers
2. prototype
3. bill of materials
4. list of assets

TOTAL: ASSIGNMENT 05 10 x 1 mark = 10 marks

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ASSIGNMENT 06: SELF-ASSESSMENT

This assignment covers essay questions on all 10 topics and 14 study units of the MNO2601
module.

Question 1

1.1. Describe the operations of the following organisations using the transformation process
model. Carefully identify the transforming resources, the transformed resources, the type
of transformation process and the outputs from the transformation process.
• Johannesburg International Airport [10]
• a large supermarket 10]

1.2. Using your own example, describe how the cost of the operation might be affected by
changing the levels of performance of quality, speed, dependability and flexibility. [5]

1.3. Describe the macro-perspective of productivity management and discuss how it could be
improved in South Africa. [5]

30 marks

Question 2

2.1. Describe the micro-perspective of productivity management and discuss how it could be
improved in South Africa. [5]

2.2. Describe designing a new product or service of your choice in terms of the transformed
and transforming resources, the activity and the outputs. [5]

2.3. Identify the type of layout that might be adopted by the following organisations and explain
the reasons for your choice:
• a bank [5]
• a borehole drilling business [5]

2.4. Discuss the scheduling rules for the order in which work is to be performed. [10]

30 marks

Question 3

3.1 A university’s printing department uses paper at a rate of 86 reams per day. A ream of
paper costs R20 and the annual stock-holding cost is calculated at 10% of the cost of the
paper. If it costs R250 every time an order is placed, and the department works 250 days
per year, what is the EOQ for the paper? If it takes three days between placing an order
and receiving it, what is the re-order point at which an order should be placed? [5]

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3.2 Headquartered in Sydney (Australia), Zstrata Coal has interests in over 30 operating coal
mines throughout Australia, South Africa and Colombia. Assume that recently a new
location has been identified in a rural area 100 km outside Nelspruit. The area is rich in
coal mineral resources. As the South African location consultant, how would you advise
Zstrata on the various supply side factors (6 marks)? Are demand side factors relevant in
this particular decision (2 marks)? Justify your answer. [8]

3.3 The Cocoa and Coffee Company always has four members of staff serving drinks and
snacks. It is open for 10 hours every day and the average time it takes for a customer to
be served is five minutes. Using Little’s law, calculate the following:

3.3.1 How many customers can be served in a day? [4]

3.3.2 How many more customers could be served in a day if there were eight servers? [3]
3.3.3 If the Cocoa and Coffee Company keeps the number of staff at four, but improves
efficiency by reducing the average time taken to serve a customer from six minutes
to three and half minutes, how many customers can be served in a day? [3]

3.4 A car manufacturer has a painting line with a design capacity of 99 m2 per minute. The line
is operated 24 hours a day, seven days a week. Records for a week show the following:

1 Product changeovers 6 hrs

(setups)
2 Regular maintenance 5 hrs
3 No work scheduled 12 hrs
4 Quality sampling checks 18 hrs
5 Shift change times 20 hrs
6 Maintenance breakdown 9 hrs
7 Quality failure investigation 7 hrs
8 Paint stockouts 14 hrs
9 Labour shortages 16 hrs
10 Waiting for paint 16 hrs
Total 123 hrs

The first five categories of lost production are planned occurrences, while the last five are
unplanned occurrences. Calculate the following (please show each step): [7]

a) design capacity
b) effective capacity
c) actual output
d) utilisation (percentage)
e) efficiency (percentage)

30 marks
TOTAL: 90 marks

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 ADDENDUM 2: SOLUTIONS AND COMMENTS ON ASSIGNMENT 06

ASSIGNMENT 06: SELF-ASSESSMENT

This assignment covers the essay questions on all 10 topics and 14 study units of the
MNO2601 module.

ESSAY QUESTIONS

Question 1 (30 marks)

Question 1.1

In this question, you were required to describe the operations of both Johannesburg
International Airport and the supermarket using the transformation model (see Figure 1.2 on
page 9 of your prescribed book). Each of the examples is worth 10 marks. The components of
the transformation model that you should have identified are inputs (both the transforming and
transformed resources), the type or types of transformation process(es) (the materials,
information and/or customer/client processing) and the outputs (goods and services). Your
answers could have been in the form of a table, as shown below. Note that only the example of
the supermarket is provided here, but the airport example could be dealt with in the same way.

Supermarket
Inputs – Transformed resources [3 × 1 = 3 marks]

Materials Customers/Clients

Goods for sale Buyers of goods and services

Foodstuffs
(1 mark)
(1 mark)
Inputs – Transforming resources [2 × 1 = 2 marks]
Staff Facilities

Sales staff, packers, till operators Shop floor, storage space, cash registers,
delivery vehicles
(1 mark) (1 mark)

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 MNO2601/001/3/2021

Transformation process(es) [3 × 1 = 3 marks]

Materials processing Customer/Client processing

Display of goods, sales advice, trolley

(1 mark)
(1 mark)

Outputs [2 × 1 = 2 marks]
Goods Services

Foodstuffs, cleaning materials, fresh Parking facilities, crèche

produce
(1 mark) (1 mark)

Your own assessment of your answer = ___ marks out of 10 (Example 1)

Your own assessment of your answer = ___ marks out of 10 (Example 2)

Subtotal: Question 1.1 = ___ marks out of 20

Question 1.2

This question required you to describe how the cost of an operation (you could choose your
own example) may be affected by the changing levels of performance of quality, speed,
dependability and flexibility. You would have received one mark if you explained the underlying
principle of Figure 2.10 on page 52 of your prescribed book. Depending on the example you
chose, four marks (one mark each) would have been awarded for your description of the effect
on each of the four performance objectives.

Your own assessment of your answer =___ marks out of 5

Question 1.3

This question required you to describe the macro-perspective of productivity management and
to discuss how it could be improved in South Africa. In your description of the macro-
perspective of productivity management, you should have pointed out that it deals primarily with
productivity issues for a country as a whole (see the discussion in Study unit 3 of Topic 3 in your
study guide). One mark would have been awarded for this part of your answer. Regarding ways
of improving productivity in South Africa, see again to the discussion on the points listed by the
NPI in your study guide. These points include paying attention to the issues of creating a
market-friendly social environment with stable macroeconomic conditions; investing in
infrastructure projects and savings; trade promotions and exports; an efficiently, functioning

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labour market; education and skills development; technological development; and promoting
small, medium and micro-enterprises as the primary sources of new jobs. Four marks would
have been awarded for your discussion on this part of the question.

Your own assessment of your answer =___ marks out of 5

Subtotal: Question 1

Your totals for Questions 1.1, 1.2 and 1.3 = ___ marks out of 30

Question 2 (30 marks)

Question 2.1

This question required you to describe the micro-perspective of productivity management and to
discuss how it could be improved in South Africa. In your description of the micro-perspective of
productivity management, you should have pointed out that it deals primarily with productivity
issues within the individual business firm or enterprise (see the discussion in Study unit 4 of
Topic 3 in your study guide). One mark was awarded for this part of your answer. Regarding
ways of improving the productivity of South African businesses, see the discussion on
managing productivity within the business enterprise in your study guide. The discussion
centres on the use of value-added productivity measurement and the measurement process of
the DPA to improve productivity within the individual business enterprise. Four marks were
awarded for your discussion on this part of the question.

Your own assessment of your answer =___ marks out of 5

Question 2.2

This question required you to describe designing a new product or service of your choice in
terms of the transformed and transforming resources, the activity and the outputs. You should
have used the discussion in Chapter 5 of your prescribed book under the heading “The design
activity is itself a process” as the basis for your answer. One mark was awarded if you
mentioned first that the design activity in itself is a transformation process because it conforms
to the basic input-transformation-output model. Four marks were awarded depending on how
well you discussed your own example in terms of the transformed resources, the transforming
resources, the activity itself and the output(s).

Your own assessment of your answer =___ marks out of 5

Question 2.3

This question required you to identify the type of layout that might be adopted (i) by an
organisation like a bank and (ii) by a borehole drilling business, and to explain the reasons for
your choice. Each example was awarded five marks. In the case of the bank, the basic layout
type would depend on the section of the business operation on which we are focusing. For
example, in the hall where we normally do our personal banking transactions, the overall layout
would resemble a process layout type (clients move around and use different services as and
when required) but in other parts of the bank (for example, the self-service cafeteria for staff), a

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 MNO2601/001/3/2021

product layout might be adopted. In the case of the borehole drilling operation, the only viable
option would be a fixed-position layout where the drilling machine is taken to the place where a
borehole is to be drilled.

Your own assessment of your answer =___ marks out of 10

Question 2.4

Review the scheduling rules on pages 285 and 286 of your prescribed book. You would have
received a mark for the rule and a mark for the explanation of the rule, to a maximum of 10
marks.

Your own assessment of your answer =___ marks out of 10

Subtotal: Question 2

Your totals for Questions 2.1, 2.2, 2.3 and 2.4 = ___ marks out of 30

Question 3 (30 marks)

Question 3.1

This question required you (i) to do a calculation, based on the data given in the problem, in
order to determine the EOQ and (ii) to work out the reorder point.

You should use the same basic EOQ formula as the one used in the example in your prescribed
book for the first calculation.

EOQ = 2CoD (1 mark)

Ch

= 2 × 250 × [86 × 250]

0.1 × 20 (2 marks)

= 2 318.40 reams of paper per year (1 mark)

The reorder point (the point at which the stock will fall to zero minus the order lead time) is three
days. (Note: The order lead time, which is the time it takes between placing an order and
receiving it, is given in the problem as 3 days.) [1 mark awarded.] Perhaps it would be more
meaningful to work out the reorder level (the level that the inventory will have reached when a
replenishment order needs to be placed). If the demand rate is 86 reams of paper per day and
the lead time is 3 days, the reorder level will be at 258 reams.

Your own assessment of your answer = ___ marks out of 5

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Question 3.2

[1 mark per discussion of each factor as listed above awarded: 8 × 1 = 8 marks]

Your own assessment of your answer = ___ marks out of 8

Question 3.3

This question deals with Little’s law (Topic 4).

3.3.1 Little’s law: Throughput time = Work-in-process × Cycle time

4 staff × (10 hours × 60) minutes ÷ 5 minutes per customer

= 480 customers can be served per day [4]

3.3.2 8 staff × 600 minutes ÷ 5 minutes per customer

= 960 customers can be served per day [3]

3.3.3 4 staff × 600 minutes ÷ 3.5 minutes per customer

= 686 customers can be served per day [3]

Your own assessment of your answer =___ marks out of 10

Question 3.4

This question deals with Topic 8, Study unit 11.

(a) Design capacity = ?

(b) Effective capacity = Design capacity - Unavoidable losses = ?
(c) Actual output = Design capacity - Unavoidable and avoidable losses = ?
(d) Utilisation = Actual output ÷ Design capacity = 28.8%
(e) Efficiency = Actual output ÷ Effective capacity = 42.1%

Try and solve the question and see if you can get to the utilisation and efficiency answers
provided. You receive marks for correct formulas, even if your answer is incorrect.

Your own assessment of your answer =___ marks out of 7

Subtotal: Question 3
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 MNO2601/001/3/2021

Your total for Questions 3.1, 3.2 and 3.3 =___ marks out of 30

TOTAL:

Your total for Questions 1, 2 and 3 = _____ marks out of 90

THE FINAL ASSESSMENT 7 WILL BE MADE AVAILABLE VIA MYUNISA ON

3 SEPTEMER 2021.

©
Unisa 2021

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