Subject Name : Operational Management (AMF 202) Study Country :
Student Name :
a) Students are required to submit all three assignment sets.
Five Subjective Questions
Three Subjective Questions + Case Study
Objective or one line Questions
b) Total weightage given to these assignments is 30%. OR 30 Marks c) All assignments are to be completed as typed in word/pdf. d) All questions are required to be attempted.
e) All the three assignments are to be completed by due dates and need to be submitted for evaluation by Amity University. f) The students have to attached a scan signature in the form.
( ? ) Tick mark in front of the assignments submitted
Operational ManagementAssignment 1
1. Discuss the changing philosophy of operations management. What are the new trends in operations management? Ans:
2. What is the difference in strategy in developing an initial layout for a new facility as compared to the strategy in improving the layout of an existing facility? Ans:
3. Discuss the various factors to be considered to decide the location of a cement plant? How do the factors differ in case of a nuclear plant? Ans:
4. Write short notes on: (a) Capacity requirement plans (b) Rough cut capacity plans (c) Resource requirement plans Ans:
a. Capacity requirement plans
A forecast for demand of the product is the base for estimating the short term workload on the facility. Companies plans for a period of one and work out the expected output of different products or services based on the forecast. The plans generated are then compared with the existing
b. Rough cut capacity plans
c. Resource requirement plans
5. Actual demand differs from forecasted demand. How to adjust the aggregates plan to meet this situation?
6. Why is materials planning needed? Discuss the various aspects of materials planning. Which other departments contribute to materials planning and in what way?
7. What do you understand by the term corrective maintenance? In what way is corrective maintenance different from preventive maintenance and predictive maintenance? Support your answer with examples.
8. What do you understand by ‘Total quality Management’? Discuss the objectives of total quality management. In what way the approach to Total Quality Management has changed over the last ten years?
Power Byte Computers
Chang Yung Chong is considering whether to open a new computer store called Power Byte Computers in West Lafayette, Indiana. Mr. Chong wants to proceed cautiously since the market potential for another computer store is uncertain. He can either open a small store now, open a large store now, drop the idea now, or else have a market potential study conducted & then decide whether to open a small or arge store or do nothing. A marketing research firm has offered to conduct a market potential survey for $5,000. the survey would suggest either a favorable or unfavorable market for a new computer store. Based on Mr. Chong’s calculations, he believes that is a small store is opened he would earn a first year profit of $30,000 in a favorable market, but would loss $10,000 the first year in an unfavorable market. If a large store is opened he believes he would earn $60,000 the first year in a favorable market, but loss $35,000 the first year in an unfavorable market. Without the insight from a market potential survey, Mr. Chong believes there is a 50% chance that the market will be favorable.
In initial discussions with the marketing research firm, the marketing analyst guessed that there was a 60% chance that a survey would suggest a favorable market. Reluctantly, the analyst admitted that marketing surveys do not always assess markets correctly. Upon further prodding by Mr. Chong, the analyst estimated that is the survey suggested a favorable market then the chance of the market actually being favorable was 90%. But if the survey suggested an unfavorable market there would still be a 15% chance that the market would actually be favorable. Mr. Chong is feeling rather perplexed by this time. Questions:
1. Why do you think the decision of what to do seem difficult to Mr. Chong? 2. Recommend what Mr. Chong should do?
3. With your recommendation in question no. 2, what is the best case & worst case first year net financial result to which Mr. Chong would be exposed?
4. Mr. Chong has now decided that he does not want to be exposed to any first year net loss over $25,000. This means he no longer wants to consider opening a large store. What would you recommend to Mr. Chong now?