ASSIGNMENT

DUE BY 16TH APRIL, 2021.

NAME : Rifat Tasfia Otri

ID : 1813532630

COURSE : MGT314

SECTION :1

GROUP NO. :5

INSTRUCTOR : MD MOFASSEL HOSSAIN [MOF]

DEPARTMENT : DEPARTMENT OF MANAGEMENT

PART – A : 20 POINTS

PART – B : 40 POINTS

PART – C : 40 POINTS

TOTAL : 100 POINTS

Note: All answers must be answered within the given boxes after the questions.

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 PART – A
1. Imagine a business that does not perform proper Capacity Planning. Explain two of the
consequences that the business may experience. [20 Points]

Capacity planning is the process of determining manufacturing capacity and labor

requirements in order to ensure that the supply chain is ready to satisfy demand by giving
ideas about when and how to scale, create better design capacity etc. within a planned
period of time. Capacity planning is very crucial for an organization. Poor capacity
planning will result in several of the damages and losses. Two of the consequences are-

1. Lost sales and unhappy consumers- Capacity decisions have a direct influence on
the organization's ability to satisfy potential product and service demands; capacity
effectively restricts the pace of performance. Having enough power to meet demand
will also provide an organization with significant advantages. In 2001, Nike
overstock of low-selling shoes and not enough stock of the popular Air Jordans
without adequate testing. This ended up Nike in lost of sales and unsatisfied
customers. in addition, shortages of corona vaccine in due to production problems
affected capacity, limiting the availability of the vaccine.

2. Out of control costs- Operating costs are influenced by capacity planning. In an

ideal world, capability and demand conditions would be balanced, resulting in lower
operational costs. but if the capacity plan isn’t properly implied, it will lead in poor
capacity, increasing over all costs and forewing upon consumers.

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 PART – B

2. Distinguish between the operations of a manufacturing business and the operations of a

service providing business in terms of labor skills and wage rate. [10 Points]

Manufacturing and service are often distinct in terms of what is accomplished, but they are
often similar in terms of how it is accomplished. Differences are-

Terms Manufacturing business Service business

Labor skills Manufacturing jobs need
labor skills but less than
service jobs.
Wage rate Manufacturing jobs are well
paid and have less wage
variation.
Service jobs need higher
labor skills (automated
service is an exception)
Service jobs have very high
wage variation. Professional
workers are paid very high
wages and workers are paid
very less.

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3. Mention any five factors that affect competitiveness. [10 Points]

 Price
 Location
 Flexibility
 Service
 Quality

4. What are the elements of good forecasting? [10 Points]

Write only the questions:

The elements of good forecasting are Timely, Reliable, Accurate, Meaningful units, Easy to
use, Written, Cost effective.

5. There are several types of processes an operations manager can decide to follow. How do those process
types differ from each other? [10 Points]

1.Job shop- Job shop operates on a quite small scale and used when a low volume of high-
variety goods or services will be needed i.e., repair shop(manufacturing), veterinarian’s
office(service) etc.

2.Batch- Batch processing operates on a moderate volume of goods or services when it is

desired, and it can handle a moderate variety in products or services i.e.,
bakeries(manufacturing), Movie theatres(service) etc.

3. Continuous- it is used when a very high volume of similar, highly standardized output is
desired i.e., salt (manufacturing), sugar(manufacturing), Internet (service) etc.

4. Repetitive- it operates when higher volumes of more standardized goods or services are
needed i.e., computers(manufacturing), automatic car wash (service) etc.

PART – C
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 6. Follow the given data below and answer the following question. [10 Points]

Develop a forecast for the next period, given the data below, using a three-period moving average.

    
Using three period moving average,  F 6= (18+19+17)/3= 18
The forecast of next period(six) demand is 18.

7. Follow the given data below and answer the following question. [15 Points]

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Consider the following information:

   

What is the anticipated efficiency? 

 
As mentioned,
Effective capacity= 40000 units per year
Anticipated Output= 36000 units per year

Anticipated output 36000

Anticipated efficiency = ×100= ×100=90 % (Ans.)
Effective capacity 40000

8. Follow the given data below and answer the following questions. [15 Points]

Management wants to design an assembly line that will turn out 800 videotapes per day. There will be eight working hours
in each day. The industrial engineering staff has assembled the information below:

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GOOD LUCK

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