MNO1503

MAY/JUNE 2024

OPERATIONS MANAGEMENT I

STUDENT NUMBER
1 3 2 6 6 3 6 5

Marks

Question
Examiners
no:
COMPLETE YOUR PERSONAL
1 2 3
INFORMATION ON THIS PAGE
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2
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OPERATIONS MANAGEMENT I ̶
…………………………………………………. ̶
Subject
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17 MAY 2024 ̶
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Date of submission
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UNIVERSITY EXAMINATIONS

15 MAY 2024

MNO1503

OPERATIONS MANAGEMENT I

70 marks

This paper consists of 18 pages.

Instructions:

1) The aim of this assessment is to test your knowledge of the key learning outcomes of this module.
2) You need to answer all the questions.
3) The typed portfolio should be converted to a PDF document.
4) Although it is strongly suggested that you type your responses to this assessment, you may submit
handwritten assessments by printing this document, completing it by hand, scanning it in and uploading
it on to myUnisa.
5) It is important to include in-text citations and a list of references as part of the portfolio, even if you use
the prescribed textbook to answer questions. Each additional source that you consult should also be
referenced.
6) No extension can be granted on this assessment as it constitutes an examination.
7) Take note of the mark allocation for each question. This will give you an indication of the number of
facts that should be discussed.
8) The assessment will not be returned to you, and the examination department will inform you of the final
results.
9) Do NOT submit the assessment by e-mail to your lecturer.
You are welcome to contact your lecturer via e-mail should you require guidance regarding the completion of
this assessment. You can reach Ms CM Maseko at [email protected].

Ensure that you keep a copy of the document that you submitted as well as your proof of submission via
myUnisa.

Good luck with the Assessment 06 portfolio.

NO EXTENSIONS WILL BE GRANTED ON THE SUBMISSION OF THIS ASSESSMENT.

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Honesty declaration

Note that the portfolio will not be marked if this declaration has not been completed.

Declaration of own work

I hereby declare that the material which I now submit for assessment is entirely my own work and has not been
taken from the work of others. Work that was constructed from other sources has been duly referenced.

Full name and surname: NTWANANO MASINGI

Student number: 13266365

Signature:

Contact number: 072 9087 534

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SECTION A

INSTRUCTION: Answer all the questions by choosing the correct option and placing the
answer in the answer box provided.
SECTION A: Multiple-choice questions (MCQ) (10 marks)

Question 1 [10]

1.1 In order to understand the manufacturing planning and control (MPC) chart, it is
important to take note of one of the following below. Which one of the following
statements is NOT correct?

A. The system is driven from the top down.

B. Much of the feedback is in a one-way direction.
C. The system takes account of what happens and, therefore, is very flexible.
D. Many smaller systems are included in forming the complete manufacturing
requirements.
ANSWER:
B

1.2 … made available and entered at any point in the system is used wherever it is needed
throughout the organisation.

A. Resource
B. Inventory
C. Information
D. Finances
ANSWER:
C

1.3 The following needs must be stated categorically: Unless a company can manufacture its
entire range of products, based on the exact quantities required by its customers on no
more than a weekly basis, including the procurement of all raw materials and
components, it must have …
A. a demand forecast.
B. a good marketing department.
C. a proper inventory in advance.
D. financial backup.
ANSWER:
A

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1.4 Billing presupposes a specified timetable within which customers are billed in
accordance with an existing contract. Contracts, specifically service contracts, will have
…

A. advantages and disadvantages.

B. clauses, sections and paragraphs.
C. inclusion and exclusion elements.
D. acceptance and legality of contract.
ANSWER:
C

1.5 What is the term of a phenomenon, where the quantity committed to the customer when
the customer request is made is not – or will not be – available according to the ERP
system?

A. Invalid demand
B. Independent demand
C. Dependent demand
D. Original demand

ANSWER:
A

1.6 The projected available balance is the planned stock level for a particular time bucket. It
is calculated for each period as follows:

A. PAB = prior period PAB + MPC + total demand

B. PAB = prior period PAB + MPR ÷ total demand
C. PAB = prior period PAB + MPA – total demand
D. PAB = prior period PAB + MPS – total demand
ANSWER:
D

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1.7 For capacity planning purposes, it is preferable to use … capacity, rather than rated.

A. design
B. demonstrated
C. product
D. organisational
.
ANSWER:
B

1.8 The CRP, DRP and MRP ensure that products are produced on time and in the right
quantities to satisfy customer demand. In view of this statement, which one of the
following options is intricately linked with MRP?

A. top-down planning
B. capacity and distribution planning
C. production and master schedule planning
D. materials and inventory planning
ANSWER:
B

1.9 What is not a planning tool but rather, a set of methodologies for designing and
operating a manufacturing plant.

A. Quantitative forecasting
B. Enterprise resource planning
C. Demand driven
D. Lean production

ANSWER:
D

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1.10 Which one of the following is a main function that conserves the balance between
available resources and customer demand?

A. capacity requirements planning (CRP)

B. the master production schedule (MPS)
C. planned automated capacity (PAC)
D. public investment portfolios (PIC)
ANSWER:
C

Section A: 10 questions x 1 mark = 10 marks

Total for section A = 10

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SECTION B

This section consists of twelve (12) questions which constitute a total of 60 marks. Write
each answer neatly in the space provided. If you run out of space, additional pages have been
allocated at the end of the last question. Indicate the question number of the question before
answering it.

2.1 Define the term constraint and identify the four steps to follow once the constraint has
been identified. (5)
Constraints are defined as “anything that prevents a system from achieving its main goal now and in the
future”.

In order to improve the throughput of the system once the constraint has been identified, there are four steps to
follow:

1. Figure out how to use the constraint to your advantage.

2. Restructure the system according to the decision made in step 1.

3. Alleviate the systems constraint.

4. Break the constraint and identify the next constraint.

2.2 Identify and briefly discuss the six (6) main sources of waste (Shigeo Shingo, 1989). (6)

1. Overprocessing.

Waste is added in this area when an inappropriate machine,

tools or fixtures are used, or when the process is not operated correctly. Pro-

cessing too much of a product (overprocessing) also creates waste because it

adds no value from the customer’s perspective.

2. Motion.

Any physical activity that does not directly add to the production of

a product can be considered waste, for example looking for tools increases

costs by increasing the time taken to complete the work.

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3. Transportation.

Any movement of items (raw material, parts, etc) that does

support the immediate use of those items is considered to be waste, as this

adds costs, not value. These costs can arise when system layout is inefficient,

resulting in long transportation distances (and, therefore, wasted time and la-

bour) within the system, or when items are kept in storage for extended

periods.

4. Defects.

Any scrap and/or defective parts produced in the system add costs

in that they require either a reworking of the product or a delay in customer

delivery (and, indeed, all production), although these are likely to happen

together.

5. Waiting time.

This waste can be a result of waiting for material to arrive at a

work centre and/or waiting for instructions on how to process the material.

Both result in an operator’s being idle when they should be working. This lack

of synchronisation within a system increases costs.

6.Inventory.

Storing excess inventory has its own associated costs, from ware-

housing to handling.

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2.3 List two (2) advantages and two (2) disadvantages of resource planning enterprise . (4)

Advantages

ERP uses the MPS to predict when products need to be made and projects the need for component production and/or
purchase.

It also predicts and calculates capacity at all levels, based on parameters defined within the system. ERP is a forward-
looking system and, as such, is well suited to environments where variability and uncertainty are prevalent.

Disadvantages

ERP is extremely data intensive in terms of the amount of data required for it to function, the accuracy of the data and
how current the data is.

This data burdencan be costly, as can setting up the correct hardware, implementing the system andtraining staff on it,
all of which are necessary for ERP to be successful.

2.4 What are the four (4) important aspects of a collaborative planning, forecasting and
replenishment (CPFR) model? (4)

1. Analysis

2. Execution

3. Strategy and planning

4. Demand and supply managemnt

2.5. What are the characteristics of a flow manufacturing environment? (4)

1. Work centres are arranged according to routings and routings are fixed, with each work centre requiring the
same time to perform the work.

2. Work centres have machinery and tooling for specific products and produce a limited range of products.

3. Transfer of material between work centres involves some form of mechanical transfer.

4. Capacity is fixed by the line.

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2.6. Use a diagram and briefly explain the steps that are used to reduce work in progress
(WIP).
(10)

EDUCATE

SET CAPACITY RULES SCHEDULE

INCREASE CAPACITY SET WIP TARGET

1. Educate all concerned that work-in-progress (WIP) really can be reduced. Make it a priority and convince
production staff that they wouldn’t need the flexibility and security of so much WIP if shop floor control could
be improved.

2. Implement good scheduling, loading and shop floor control techniques, thus increasing accuracy and order
control. In particular, ensure that orders are released to match the production plan, that some form of
input/output records exist, and that expediting is controlled.

3. Determine WIP targets under the new controls.

4.Have capacity decision rules in place to prevent the WIP from returning to unacceptable levels.

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2.7. Illustrate the position of the master production schedule (MPS) in the manufacturing
planning and control process by drawing and labelling a diagram of this position.
(5)

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2.8. Mzala owns a small business that produces frames. He recently received an order for
50 kg of frames. The routing times, that is, operations and standard times for producing
one frame, are described in the table below.

Operation Standard time

grind 7 hours
cut 11 hours
weld 5 hours
finish 13 hours
Calculate the routing lead time. (3)

Total work content = 7 + 11 + 5 +13 = 36

36÷8 workdays

4,5 days

2.9. A machine centre has six (6) similar machines and five (5) people operating them. It
takes two workers an eight-hour shift per day in a five-day week and an average of 6%
overtime on each shift to complete the work. The work centre’s efficiency is 115% and its
utilisation is 75%. Calculate the weekly capacity?
(3)

Weekly capacity = machines x shifts x hours per shift x overtime x efficiency x utilisation x

Weekly capacity days

=6 ×5×8×6%×115%×75%×5

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2.10 Calculate the forecast demand for the month of May using the following information: The
stock demand for January was 675, for February 700, for March 875, for April 900 and for
May … . (1)

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2.11 What are the advantages of quick change over in pull system production? (10)

Reduced order quantity.

The lot size and setup costs are often interdependent.

In other words, reducing the setup time can reduced the lot size.

Reduced queue and manufacturing lead time.

Manufacturing lead time depends on the queue, which, in turn, depends on the order quantity and scheduling.
Reducing setup time reduces the order quantity, as well as queue and lead times.

Reduced work-in-process (WIP) inventory.

The number of orders and their size determine WIP. Processing orders with lower quantities reduces WIP,
which increases floor space. More floor space allows work centres to be closer together, reducing waste in the
form of handling costs.

Improved quality.

Defects are more likely to be noticed quickly with smaller order quantities.

Improved process and material flow.

Smaller inventories allow products to move through the process more rapidly, allowing for the rapid
identification of problems within the process.

2.12 MRP systems are typically used by planners who are responsible for making the
decisions and taking the actions that keep material flowing into, through and out of a factory.
List the five (5) responsibilities of planners. (5)

1. Release orders to purchasing or manufacturing.

2. Reschedule due dates of open (existing) orders as required.

3. Reconcile errors and try to find their cause.

4. Solve critical material shortages by expediting or replanning.

5. Coordinate with other planners, master production schedulers, production ac-

tivity control and purchasing to resolve problems.

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Subtotal for section A: [10]

Subtotal for section B: [60]

TOTAL FOR PAPER: [70]

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Blank pages for additional writing

You can use the space provided below, if needed. Please number all your answers clearly and
leave a line open between each answer.

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UNISA 2024

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