Operations Management

      Question 1. i) The work deliverables include the work statement, breakdown of work structure, the scope of project statement, and project plan of governance. ii) The plan of action is done categorically depending on the laid schedule of activities iii) Project timeline Task timeline schedule May 2021 Project planning June 2021 Collecting information July 2021 Project development August 2021 Project presentation. Question 2 Stock Safety stock Lead time X1 60 10 1 B1 20 0 2 B2 20 0 2 A1 10 5 1 C 50 0 1 D 200 0 1 Gross requirements for X1 is as follows: Duration 1 2 3 4 5 6 7 8 Required Gross 20 20 100 1. Calculate the MRP explosion and write the steps of calculation (20 Marks) MRP is a system that calculates the components and materials required to produce goods. It has three stages of inventory taking of materials components identifying which are needed, and production purchase or scheduling. Needed Amount = material bills Lead time consumption = Quantity required in 3 months /90 x time of lead Stock safety = 3 months quantity /90 x Stock days safety Order Size : Order Quantity = Lot number x its size     Duration 1 2 3 4 5 6 7 8 Gross necessity 20 20 100 Projected receipts 100 -10 Schedule at hand 60 20 80 50 35 35 90 Net requirements 20 Order receipts 100 Release of planned order 100   2. Discuss the limitations of the MRP system. (20 Marks) Material requirements planning (MRP) refers to an inventory management system that is based on a computer developed to improve businesses productivity. Industries use a system of MRP in the estimation of raw material quantities and design delivery schedule. The prominent roles of MRP systems are production planning, control of inventory, organization and scheduling. MRP has various limitations, including the high cost of system implementation, input information accuracy dependence, and time-consuming. It is demand-oriented oriented, which is detrimental to an institution that is demand forecast dependent. Without lead-time replenishment and smooth demand regularity, the system cannot be adjusted, which leaves an individual and lead-time replenishment regularity with too much or little material given. Other limitations include; i. Restrictions of customization ii. Inflexible systems, which are incompatible with any organization. iii. Operation Process Re-Organization iv. High cost of operating or installation v. Lack of commitment by top management vi. Lack of professional skills for those operating the system. vii. Inaccurate data and unrealistic MPS Part B: Answer the following questions: 1. The workplace X has a lot of work as it has been allocated more processing than the other two, which serves as the bottleneck for BPC. 2. Every firm faces limited capacity, so intelligent decision-making about product mix can augment your profitability. One merely needs to figure out the most profitable product mix that one can. An example of a product mix is Coca-Cola. To understand it, assume Coca-Cola monitors 2 product lines, minute maid and soft drinks. The products categorized as soft drinks include Fanta, Coca-Cola, and Sprite, while Minute Maid juice products include Mango, Guava, Orange, and Mixed Fruit. Coca-Cola product mix consistency will be high as the products line is in the beverage category. Distribution or production networks are similar to each product. Part (C) MOOC: (10 Marks) Pass the following online course. Insert the certificate in your report (or any other proof of completion). Write short notes about your reflection about this course: “Understanding operations management” “Log in with your name so that your certificate has your name for submission. https://www.open.edu/openlearn/money-business/leadership-management/understanding-operations-management/content-section-0