CONFIDENTIAL MARCH 2022/SET A/MGT3053

INDIVIDUAL ASSIGNMENT (CASE STUDIES)

COURSE : OPERATIONS MANAGEMENT

COURSE CODE : MGT3053
DURATION : 24 HOURS

INSTRUCTIONS TO CANDIDATES:

1. Answer ALL questions.

2. This assignment able to achive Course Learning Outcome (CLO) as below:

CLO1: Explain terms, concepts, processes, tools and techniques related to operations
management

CLO2: Apply knowledge, process, tools and techniques of operations management in

organization

CLO3: Analyse effective operations management plan in organization

3. The answer must be in handwriting.

4. The answer needs to be submitted to the respective lecturer by upload the PDF
file via LMS.

5. After you have finished, name your PDF file with: Code, Section Number and
Name (Example of the file’s name: MGT3053 S1 Ahmad bin Albab).

6. Plagiarism, copying and cheating will not be tolerated where no marks will be
given and disciplinary actions can be taken.

DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO

This question booklet consists of 5 printed pages including the front page

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CONFIDENTIAL MARCH 2022/SET A/MGT3053

CASE STUDY 1

Mr Azhar Appointed as the Operation Manager for ABX Sdn Bhd. He faced many
situations in the company. As Operations manager he need to solve the situation as
below;

ABX Sdn Bhd produces cast bronze valves on a 10-person assembly line. On a
recent day, 160 valves were produced during an 8-hour shift. Monthly sales at the local
market are provided as below:

MONTH SALES
January 23
February 13
March 20
April 18
May 15
June 20
July 14
August 20
September 17
October 21
November 21
December 16

Required:
a. Calculate the labor productivity per labour-hour.
(5 marks)

b. Mr Azhar and his employees have discussed changed the layout and was able to
increase production to 180 units per 8-hour shift, what will be their new productivity?
(4 marks)

c. What is the percentage of productivity increase?

(4 marks)

d. Forecast January sales for the following year using each of following:

i. Naïve Method
(2 Marks)
ii. A 6-months moving average
(5 marks)

iii. A 3-month weighted average using 1, 5, and 3, with the heaviest weights
applied to the most recent months
(5 marks)

(Total: 25 marks)

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CASE STUDY 2

Warehouse for XYZ Company has the physical ability to handle 1,200 units of
products. However, Store manager believe that 1,300 units can be handled
effectively. The last event, although forecasted to have 1,000 units, resulted in the
aactual record of only 950 units. A product is currently made in a process-focused
shop, where fixed costs are RM9000 per year and variable cost is RM60 per unit.
The firm sells the product for RM300 per unit. I’lmi, Production Manager has been timed
performing four work elements, with the results shown in the following table. The allowances
for tasks such as personal 7%; fatigue 10%; and delay 3%.

Task Performance Observations (minutes)

Element Rating (%) 1 2 3 4 5
1 110 0.5 0.4 0.5 0.4 0.4
2 95 0.6 0.6 0.9 0.6 0.7
3 90 0.6 0.5 0.6 0.5 0.5
4 85 1.5 1.6 1.9 1.6 1.5
Table of Work Performance

Required

a. Calculate the utilization and efficiency

(6 marks)

b. Calculate the break-even point in unit and ringgit

(6 marks)

c. Compute the normal time

(8 marks)

d. Compute the standard time

(5 marks)

(Total: 25 marks)

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CASE STUDY 3

MFO Construction Sdn. Bhd plan to develop new building. A network consists of the
activities in the following list. Times are given in days

Activity Predecessor (s) Time (Days)

A - 2
B - 3
C A 2
D A, B 4
E C 4
F C 3
G D,E 5
H F,G 2

MFO Construction Sdn. Bhd produced 2500 units of product during a year. These product
are purchased from a supplier 90 miles away. The following information is known about the
products:
Annual Demand 2500
Holding cost per unit per year RM 1.50
Ordering cost per year RM 18.75
Lead Time 2 days
Working days per year 250
Safety stock 3 days

Required:
a. Draw the network diagram.
(4 marks)
b. Calculate the Earliest Start (ES), Earliest Finish (EF), Latest Start (LS), Latest Finish
(LF), and Slack for each activity.
(5 marks)
c. Calculate total project completion time?
(2 marks)
d. Identify the critical path activities?
(2 marks)

e. If activity C were delayed 8 days instead of 3 days, what happen to the project?
(2 marks)
f. Calculate the economic order quantity (EOQ)?
(2 marks)
g. How many orders would be made each year?
(2 marks)
h. How many time between orders?
(2 marks)
i. Calculate the reorder point?
(2 marks)
j. Calculate the quantity of safety stock
(2 marks)

(Total: 25 marks)
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CASE STUDY 4

YZA Manufacturing produce end item name of A product. Each unit of A is composed of one
unit of B, two units of C, and one unit of D. C is composed of two units of D and three units
of E. Customer of YZA Manufacturing key-in thousands of sales records each day for a A
products. CEO YZA Manufacturing, Muhammad Ifwat want to set control limits 99.73% of the
random variation in the data entry process when it is in control. Sales samples of 20
customers are gathered (shown in the Table). Muhammad Ifwat carefully examines 100
records entered by each customers and counts the number of errors.

Sample 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Defects 6 5 0 1 4 2 5 3 3 2 6 1 8 7 5 4 11 3 0 4
Table Sample of Defects

Required:

a. Draw the product structure tree

(5 marks)

b. If 150 units of A are allocated, how many units of C, D & E are needed
(5 marks)

c. Develop a control chart

(5 marks)

d. Plot the 20 samples collected

(5 marks)

e. Is it all the sample within the control? Discuss two (2) reasons.
(5 marks)

(Total: 25 marks)

(TOTAL: 100 MARKS)

END OF QUESTION PAPER

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