Assignment 1&2: Operations Management - Assignment 1 Assessment 30% Class. Late Submissions Will Be Penalised
Assignment 1&2: Operations Management - Assignment 1 Assessment 30% Class. Late Submissions Will Be Penalised
1. Explain the generic-step blueprint for process analysis and what are the basic
requirements for each step?
2. Compare and contrast the method of time study to the method of work sampling. What
are the strengths and limitations of each, and for which applications are they best suited?
3. A manager of a company producing computer chips knows that in the early stages of
production for a new product, the expenditures exceed receipts, whereas in the latter
stages, the reverse is true. Give an explanation for this phenomenon.
2. Consider the factors that should be considered when selecting the appropriate
capacity cushion. How does the choice of capacity cushion relate to other decisions in
operations management?
3. Explain the meaning of process reengineering and how can it be applied to a major
process with which you are familiar.
You have the opportunity to invest RM 10 billion for your organization to develop a car
engine for passenger cars. The development plan will span over 5 years. The final
product costing RM 100 million / sale contract could reach a sales potential of
eventually making RM 250 billion for the organization. The new engine can be placed
in service 5 years from now, but only if it qualifies four years from now for certification
clearing commercial use and only if it meets America’s Automotive Administration’s
(AAA) ever tightening standards for environmental pollution and noise reduction.
Certification also has to be obtained from the Malaysian Director General of
Automotive Association of Malaysia (MAA). There is competition from world-class
manufacturers like Toyota, Honda and Nissan who are developing competing engines
with a long successful track record. If you decide to proceed with the project, you
must also determine where the new engines will be produced and develop the
manufacturing facilities. If you decline to proceed, your organization could invest its
resources elsewhere and based on its track record for successful products developed
in the past it could get attractive returns.
Question 1.
Question 2.
In case of lengthy product design and development time, examine the kinds of risks
that the organization will be exposed to.
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