Operation Management Report: Product Design and Development

This report analyzes an operation management case study, focusing on the application of project management tools and techniques. It begins by explaining the utility of a Gantt chart in avoiding project delays, illustrating its construction and benefits. The report then delves into the critical path method, emphasizing its importance in predicting project completion times and identifying critical activities. Furthermore, it identifies and describes other project tools like PERT, resource histograms, and project management software. The report also addresses location selection and the calculation of sales volume based on fixed and variable costs. Finally, it outlines the process for designing a new product or service, covering aspects like selecting goods or services, the design process, and product development, with references to relevant literature.

OPERATION MANAGEMENT 1
OPERATION MANAGEMENT
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OPERATION MANAGEMENT 2
Question 1.
1.1. Construct and explain in details how a Gantt chart would have helped to avoid the
situation in the case study above.
Typically, a Gantt chart can be defined as a horizontal bar chart whose main purpose is to depicts
the tasks allocated to particular project against a specified calendar. Individual bar represents a
particular project task. The task and the calendar timeline are listed on vertical side in the left-
hand column and horizontal axis respectively (Dow & Taylor, 2015). Gantt chart indicates the
progress and are usually applied for resource planning. Very little training is required to
understand them since they provide a distinct, pictorial model of the project.
Gantt chart for Alfred Mnguni construction company.
Week 0 1 3 4 5 6 7 8 9 10 11 12 13 14 15
Test conversion Programme
Convert files
Prepare training
Conduct training
Run parallel system
end time for Mnguni company
Alfred Mnguni company required to list all the tasks that needed to be performed in this
construction project. Tasks are indicated vertically on the Gantt chart. These tasks need to be
identified by name and number (Hubbard, 2016). Alfred Mnguni need to horizontally indicate
duration and resources to be used in Belmont project plus any other important information. The
horizontal part of the graph indicate task connecting start and end duration. Having run 15
months late on completion of a construction project, the company need to show the relationship
by joining tasks-can make diagram.

OPERATION MANAGEMENT 3
1.2. Explain the importance and significance of the-critical pathll and how you would
identify and control the activities on it.
Critical path refers to method that was initiated for management of projects particularly in
private sector.it model the tasks and project’s events as network.
Importance and significance of CPM.
 CPM predicts the completion time of a project and any additional time required to
extend on a project.
 It critically provides a clear view of the project graphically.
 It clearly indicates critical activities of a project that need to be maintained on the
schedule.
How to identify and control activities.
 Specify each task.
 Find out the sequence of those tasks.
 Draw network diagram
 Estimate the time required to complete individual task.
 Determine the critical path or simply the longest path through the network.
 Finally, Alfred Mnguni need to update the critical path diagram as the project
progresses.
1.3. Identify and describe three other project tools and techniques that you would have
used had you been the project manager.
i. Program evaluation and review technique (PERT). This is graphical network model
that critically depicts the activities of a project and indicate the relationship between
those activities. It depicts duration, tasks and dependency information regarding a
particular project.
ii. Resource histogram. This refers to bar or column chart whose main purpose is to
indicate the number of resources that have been deployed to a given project in a given
period of time.

OPERATION MANAGEMENT 4
iii. Project management software (Schwalbe, 2015). This tool includes Microsoft
Outlook in the current market. It is used in project scheduling, budgeting and cost
control, communication and coordination, used in work breakdown structure,
management of risks and finally in updating and reprinting of reports.
Question 2.
Location fixed cost variable cost
Gauteny 300,000 5.75
Nigeria 800,000 2.75
Mauritius 100,000 8.00
Sales volume of Gauteny.
Total cost = variable cost + fixed cost= 300000 +5.75.
Since sales volume is the quantity of goods sold for the purpose of calculating total sales
and gross profit (Franco, 2015). Given the sale value and sale price, then;
Sale value = sales volume * sales price
Sales value/sales price = sales volume
In this case, by assumption let sales value and sales price represent fixed cost and
variable cost respectively.
Sales volume = 300,000/5.75 =52,174
Nigeria sales volume = 800,000/2.75 = 290,901
Mauritius sales volume = 100,000/8 = 12,500
Question 3.
To design a new product or service, explain the process to follow in;

OPERATION MANAGEMENT 5
3.1. selecting goods or service.
When selecting a new good or service, as innovative investor, it is wise to identify if a gap exists
in the market for that product (Kotler, 2011). If a clear gap exists, then one need to find out the
demand of such good or service. Perfect demand implies a great perfect market for the newly
introduced product. Finally, it is important to take note on the forces of demand and supply
mechanisms with respect to the existing market gaps.
3.2. the design processes.
To design a good or service, a good investor need to do a prior research on the product. It is good
to draw closely any other party that have ever designed that particular good or service. An
investor need to maintain the best part of the product and significantly improve on the weak
areas so as to ensure maximum satisfaction of the anticipated consumers.
3.3. product development.
Product development involves bring the goods or services into operation. It is good to test the
market response during product development. This will help the investor to critically analyze the
product before the actual release and announcement to the market (Jonasson, 2012). This also
give the investor a chance to improve on any improper part of the product.
References.
Dow, W., & Taylor, B. (2015). Project Management Communication Tool. William Dow.

OPERATION MANAGEMENT 6
Franco, S.A. (2015). Fundamentals of Corporate Finance. McGraw-Hill Education.
Hubbard, G.R. (2016). Microeconomics. Pearson.
Jonasson, H. (2012). Determining Project Requirement. Averbach publication.
Kotler, P. (2011). Framework for Marketing Management. Pearson.
Schwalbe, k. (2015). Information Technology Project Management. Course Technology.