FACULTY OF BUSINESS AND MANAGEMENT BACHELOR OF BUSINESS ADMINISTRATION (HONS.

)
OPERATION MANAGEMENT (BA244)

OPM 549: OPERATION MANAGEMENT (ASSIGNMENT 2)

STUDENT NAME
MUHD ADIB BIN DAMAN HURI 2021239468
GROUP: NB05A
LECTURER’S NAME: DR. ARLIZA BT ABDULLAH
DATE OF SUBMISSION: 25 January 2024
OPM549 FEB2021
QUESTION 3
A) Define the following term :
i) Bottleneck Time
Definition: Bottleneck time is the amount of time a manufacturing process is delayed or
slowed down due to a bottleneck, which is a step in the process with the lowest capacity.
Explanation: In most production processes, there is a stage or resource that limits overall
throughput. This bottleneck determines the system's maximum capacity. Bottleneck time
refers to the time lost or delayed at this important step, which affects the overall
efficiency of the operation.
ii) Throughput Time
Definition: Throughput time, also known as cycle time or lead time, is the overall time it
takes for a product to progress through a manufacturing process from start to finish.
Explanation: Throughput time encompasses all processing, waiting, and transit times
associated with manufacturing or service delivery. It offers a comprehensive view of the
time required to complete a product or service. Reducing throughput time is a common
goal for increasing operational efficiency and responsiveness.
iii) Break-Even Analysis
Definition: Break-even analysis is a financial computation that determines the point at
which total income equals total costs, yielding no profit or loss.
Explanation: The break-even point is when a company covers all of its fixed and variable
costs but does not make a profit. It is useful in determining the minimal amount of sales
or output required to prevent losses. Break-even analysis is a useful tool for making
decisions, developing pricing strategies, and determining the financial feasibility of a firm
or project.
iv) Capacity Analysis
Definition: Capacity analysis evaluates a system, process, or resource's ability to manage
a specific quantity of work within a specified time frame.
Explanation: Capacity analysis enables companies to determine the maximum output or
workload that their resources can bear. It comprises evaluating both design capacity (the
highest potential output under ideal conditions) and effective capacity (the actual
achievable output after accounting for factors such as downtime, maintenance, and
efficiency). Capacity study is critical for improving resource usage, detecting bottlenecks,
and planning for future expansion.
B) Explain the differences between Master Requirements Planning (MRP), Master
Production Schedule (MPS) and Enterprise Resource Planning (ERP).
Master Requirements Planning (MRP):
1. Focus
• MRP is primarily concerned with the planning and control of material
requirements for manufacturing.
• It guarantees that raw materials are available in the proper quantity and at the
right time for the production process.
2. Scope
• MRP is a component of production planning that focuses on material
management and planning.
3. Components
• The Bill of Materials (BOM), inventory data, and a master production
schedule (MPS) are all essential components.
• MRP systems are frequently connected with bigger Enterprise Resource
Planning (ERP) systems.

Master Production Schedule (MPS):

1. Focus
• MPS is responsible for scheduling the manufacture of completed items.
• It determines the quantity and timing of production to match client demand.
2. Scope
• MPS is a component of the overall production planning process, ensuring that
production aligns with overall demand and strategic objectives.
3. Components
• Key components include the finished goods timeline, production lead times,
and resource availability.
• MPS is a vital output from MRP that determines the time and quantity of
material requirements.

Enterprise Resource Planning (ERP):

1. Focus
• ERP is a complete system that connects multiple business processes within an
organization.
• It goes beyond production planning to include modules for finance, human
resources, supply chain, customer relationship management (CRM), and other
functions.
2. Scope
• ERP offers a comprehensive approach to managing all parts of a corporation,
from manufacturing and inventory to finance and customer relations.
3. Components
• ERP has several modules, including MRP, MPS, financial management, human
resources, and others.
• It strives to provide a single, unified platform for managing data and processes
across several functional domains.
QUESTION 4

A) Facility location affects the overall performance of an organization. Briefly explain

eight (8) important reasons for location decisions.

1. Labor Availability and Skill Sets

Access to a skilled and available workforce is paramount. Companies often choose
locations with a labor pool possessing the necessary skills and expertise for their
specific industry.

2. Taxation and Incentive Structures

Tax rates and incentives offered by different regions can significantly impact the
overall cost structure. Some areas may provide tax breaks or incentives, influencing
the decision-making process regarding the location of facilities.

3. Market Accessibility
Improved access to target markets reduces transportation costs, enhances service
efficiency, and facilitates prompt responses to customer demands. Proximity to
customers is crucial for businesses aiming to streamline operations and enhance
customer satisfaction.

4. Risk Mitigation
Evaluating susceptibility to natural disasters, political instability, or other risks is
essential. Choosing a location with lower risks helps safeguard the organization from
potential disruptions and financial losses.

5. Cultural and Social Considerations

Understanding local cultural and social aspects is critical, particularly for retail and
service industries. Adapting to local customs and preferences contributes to enhanced
customer satisfaction and overall business success.

6. Cost-Efficient Operations
Proximity to suppliers, labor markets, and efficient transport networks can influence
costs related to production, logistics, and distribution. Strategic location decisions can
optimize cost efficiency across various aspects of the supply chain.

7. Competitive Advantage
Being in close proximity to key suppliers, ensuring a faster response time to market
changes, and positioning oneself near competitors can contribute significantly to
building a robust competitive advantage.

8. Infrastructure and Technological Support

The availability of infrastructure and technological support is crucial. Access to
communication networks, utilities, and advanced technology can enhance operational
efficiency and contribute to the overall success of the business.
B) Michelle is deciding to open a new business outlet in four possible locations. He has
determined five key success factors can be used to evaluate the prospective
locations. The location study carried out as given below:

Based on the analysis, choose the suitable location for Michelle to open a new outlet.
Hence from above calculation the weighted average score maximum for location Kedah
(77.8). Hence suitable location for Michelle to open a new outlet is Kedah.
OPM549 JUNE 2015

QUESTION 2

A) Elaborate three (3) project management activities.

1. Project Planning:
Definition: Project planning is the process of determining the project scope,
objectives, schedules, resources, and tasks needed to fulfill project goals.

Elaboration:
Scope definition: entails clearly describing what the project will achieve and what is
not within its scope.
Setting objectives: for a project that are specific, quantifiable, achievable, relevant,
and time-bound.
Work Breakdown framework (WBS): Creating a hierarchical framework by breaking
down the project into smaller, more manageable tasks.
Resource Allocation: The identification and allocation of human, financial, and
material resources required for each task.
Timeline development: the process of creating a project plan that contains
milestones, deadlines, and dependencies.

2. Risk Management:
Definition: Risk management is the process of finding, assessing, and minimizing
potential risks to the project's success.

Elaboration:
Risk identification: entails identifying potential risks that could jeopardize project
objectives.
Risk assessment: involves determining the possibility and impact of recognized
hazards on the project.
Risk Mitigation Planning: developing methods to reduce the impact of prospective
risks.
Contingency planning: the preparation of alternate activities to be taken in the event
that a risk arises.
Monitoring and control: entails constantly monitoring hazards throughout the project
and adjusting methods as needed.

3. Project Execution and Monitoring:

Definition: Project execution entails putting the project plan into action, while
monitoring ensures that the project is on schedule.

Elaboration:
Task Execution: Performing the activities specified in the project plan.
Team management: entails supervising and directing team members in their
designated duties.
Quality assurance: the process of ensuring that deliverables fulfill defined quality
requirements.
Progress monitoring: entails regularly tracking project progress versus the project
timeline.
 Issue management: the process of addressing and resolving any difficulties or
obstacles that develop during project execution.
Communication: involves informing stakeholders about project status, changes, and
milestones.

B) Haqeem Training Centre is developing a program for managers. He has listed a number
of activities that must be completed before this program could be conducted. The
information as per table below.

i) Draw a project network based on the above information.

B
A C

E F
G
H
I

ii) Identify the critical path.

B-D-E-G-H-I has the longest duration, 44 days. It forms the Critical Path.
iii) Compute the completion time and the slack time for the above activities.
QUESTION 5
A) Differentiate between preventive maintenance and breakdown maintenance.

B) Explain two (2) reliability tactics in organization.

1. Redundancy:
Definition: Redundancy is the duplication of important components, systems, or
processes inside an organization to ensure uninterrupted operation in the event
of a failure or interruption.

Elaboration:
Component Redundancy: The duplication of critical components within a system
such that if one fails, the redundant component can take over.
System redundancy: refers to the presence of backup systems or subsystems in
place to preserve overall system functionality in the event that the primary system
fails.
Process redundancy: the creation of alternate processes or workflows that can be
launched in the event that the original process fails.
Data redundancy: the storage of vital data in numerous locations to prevent data
loss due to hardware failures, data corruption, or other issues.
2. Predictive Maintenance:
Definition: Predictive maintenance is a strategy that uses data and analytics to
forecast when equipment or machinery may break, allowing firms to undertake
maintenance proactively.

Elaboration:
Condition Monitoring: The use of sensors and monitoring technologies to obtain
real-time data on the state of equipment.
Data analysis: entails examining the collected data to identify trends or indicators
of possible failure.
Fault Prediction: Predicting probable faults or issues using previous data and
current conditions.
Scheduled maintenance: performing maintenance tasks based on predictive
insights rather than waiting for equipment to break.
Cost Savings: By addressing concerns before they become failures, businesses may
save downtime, increase equipment longevity, and optimize maintenance costs.
OPM549 JUNE 2021
QUESTION 4
A) Briefly explain the differences between forward and backward scheduling.

B) Jack's Refrigeration Repair is under contract to repair, recondition, and/or refurbish

commercial and industrial ice makers from restaurants, seafood processors, and
similar organizations. Jack currently has five jobs to be scheduled, shown in the order
in which they arrive. Determine the best rule to sequence the jobs between First Come
First Serve (FCFS), Shortest Processing Time (SPT), and Longest Processing Time
(LPT).

FCFS = V, W, X, Y, Z
SPT = W, Y, V, X, Z

LPT = Z, X, V, Y, W

Calculation:
Goals of Short-Term Scheduling
• Minimize completion time.
• Minimize WIP inventory.
• Maximize utilization.
• Minimize customer waiting.

In conclusion, the best rule for Jack in scheduling work is Shortest Processing Time (SPT)
because this method has 4 short-term scheduling goal criteria.