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2020 – 2021Spring 2021Operations Management (MGT 320)Assignment-4 (Group) (15%) – Chapter 5Start Date: 18 May2021 – 8:00 amDue Date: 22 May-2021(Please upload your assessment on Moodle using Assignment -4Turnitin submission link)Student Names:Student ID:Section:Faculty Name:Total Earned Points: / 100Question # 1:In a manufacturing operation, the actual output is 75 percent of effective capacity. Theoperation was designed to produce 10,000 units of finished product in a month. But due toproduct design changes that has taken place over time, their current effective capacity is only 60percent of design capacity.
A).Find the number of units that the current operation can produce in a month.(10 Points)B). What is the Utilization of the current operation?(10 Points)C).What design capacity would be needed to bring the effective capacity same as the currentdesign capacity?(10 Points)D).Comment on the utilization of the current operations and recommend any five ways theutilization can be improved.(10 Points)Answer:A).Design capacity = 10000 units Effective capacity = 10000*60% = 6000 units NumberB).Utilization =actual output / effective capacity =6000/75000 * 100= 80%C).Following steps needed to bring the effective capacity same as the current design capacity:oEstimate future limit necessitiesoAssess existing limit and offices and recognize holesoDistinguish options for meeting necessitiesoDirect monetary examinations of every other optionoEvaluate key subjective issues for every other optionoSelect the choice to seek after that will be best in the long hauloExecute the chose electiveoScreen resultsD.oDemand surpasses limit by raising costs, or booking long lead times.oCapacity surpasses request by value decreases or forceful showcasing.oAdjusting to occasional requests or recurrent example of requests.
oTactics for coordinating with ability to request byoMaking staffing changes (expanding or diminishing the quantity of representatives ormovements)oAdjusting gear (buying extra hardware or selling or renting out existing gear)oImproving cycles to build throughputoRe-planning items to work with more throughputoAdding measure adaptability to more readily meet changing pr5oduct inclinationsoClosing officesoQuestion # 2:A computer repair service has a design capacity of 80 repairs per day. Its effective capacity,however, is 64 repairs per day, and its actual output is 62 repairs per day. The manager wouldlike to increase the number of repairs per day. Which of the following factors would yourecommend that the manager investigate: quality problems, absenteeism, or scheduling andbalancing? Explain your reasoning.Expert AnswerAnswerDesign capacity = 80 repairs per dayEffective Capacity = 64 repairs per dayActual Output = 62 repairs per dayAnswer 1.Formula 1:Efficiency: (Actual Output / Effective Capacity ) * 100 %It gives an idea about how well the system has been used in comparison to what is beingavailable. In other words, helps to know design capacity of the system.Formula 2:Utilization: (Actual Output / Design Capacity ) * 100 %