Question 1CompanyX makes cell phones at their manufacturing plant and manages a distributioncenter...

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Question 1CompanyX makes cell phones at their manufacturing plant and manages a distributioncenter to deliver phones to retailers. Their recording keeping is limited to ahand written ledger which...

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Question 1

Company
X makes cell phones at their manufacturing plant and manages a distribution
center to deliver phones to retailers. Their recording keeping is limited to a
hand written ledger which although outdated as a system is reliable. The
challenge is they are unable to effectively manage their supply chain. Below is
a diagram that depicts the factory production output. Capacity is in units per
hour.

Diagram<br><br>Description automatically generated

a)
Identify the constraints and bottlenecks. What is the
distinction between the two?

b)
Calculate throughput time and advise
management how this time can be improved via a process of ongoing process
improvement.

c)
Why is it important to have relative and
not absolute performance benchmarks?

d)
What are three indicators operations
managers should measure to ensure that Company X is meeting their targets? What
KPI’s can be used to effectively manage the supply chain of Company X?

(20 Marks)

No more than 3 paragraphs (8 lines per
paragraph for Qu 2 an Qu 3)

Question 2

Marketing argues that an increase
in sales will have the largest positive impact on contribution. Do you agree?
What approaches can a company utilize to become sustainable over time? The use
of examples is encouraged.

(10 Marks)

Question 3

Discuss
with the use of examples operations management issues and competitive strategies
a firm can use as it moves through its product life cycle. In an aggressive
competitive environment, what strategy should a firm typically adopt and why?

(10 Marks)

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Answered Same Day Oct 26, 2022

Rachit · Accepted Answer

1
SUPPLY CHAIN MANAGEMENT / OPERATIONS MANAGEMENT
Answer 1 a.  There are two major constraints that can be seen from the diagram, the production output at Unit B and Unit E which are 80 units and 60 units per hours respectively. The constraints come around the production capacity of these units when compared to other units. While Unit B is at 66% capacity of unit A and C, Unit E is at 31.57% production capacity of Unit F and at 50% capacity at Unit D. Due to these production constraints, the efficiency of Unit F cannot be utilised at its full because Unit E can only produce 60 Units per hours whereas the efficiency of Unit F is at 190 units per hours.
The biggest bottleneck is at Unit E which is just 25% production capacity from the inventory its receives from Unit C and Unit D combined. It receives 240 units per hour against the production of 60 units per hours. The distinctions between the two is constraints is a technical aspect as Unit E has a certain skillset that is used to combine the subassembly units with Unit D. Since the production efficiency is around 60 units , it is called as constraint whereas the cycle of assembly where 240 units are collected at Unit E is bottleneck where the maximum inventory is stuck due to the efficiency challenges.
Answer 1 b. Total Capacity At Unit A per hour- 110 Units
	          Total Capacity At Unit B per hour- 80 Units
	           Total Capacity At Unit C per hour- 120 Units
		Efficiency lag At Unit C= 40 Units per hour as Inventory is stuck at Unit B, so final Units production at Unit C= 80 Units 
Collection at Unit E = 120 Units from D + 80 Units fro C = 200 Units per hour
Production at Unit E = 60 Per hour
Production at Unit F = 190 Per hour
Efficiency lag at Unit F= 190 – 60= 130 Units
Final Production or Throughput time is 60 Units per hours which is transferred from Unit E.

Question 1CompanyX makes cell phones at their manufacturing plant and manages a distributioncenter to deliver phones to retailers. Their recording keeping is limited to ahand written ledger which...

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