Operations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 1 Instructions to Students:– Students should form groups of 4-5 to answer the assignment.– Submission: By the week mentioned in the MIG by the teacher.– Students should use CU Harvard referencing style in report.– Submission form: Soft copy to be submitted through Moodle in Turnitin– Submission should be at the designated date in Moodle.– Late submission shall be penalized as per the norms of MEC mentioned in the ModuleInformation Guide.– Plagiarism policy is as per the MEC guidelines as mentioned in the ModuleInformation Guide.– Marks awarded in the assessment are provisional till it is approved by the Exam Board– Marks to be scaled down to 40OBJECTIVE:To evaluate student’s competence in understanding the aim of a planned research project forbusiness improvement. A real life case is introduced to students who are expected to applythe analytical approach of problem solving.OUTCOMES:1. Understand the practical problems of operations management in business.2. Perform calculations and modeling skills applied to several techniques inoperations management3. Apply the problem solving technique in operations management.
GROUP ASSIGNMENT , Fall 2019Module: Operations Management (BUSS-B 1006) ID NUMBERLevel: 1 Max. Marks:100 (Scale down into 40) Duration: 8 weeks
Operations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 2Project Aurora 2019-2020Author: André GijsbertsOperations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 3AURORA and JARDIN2.1 Introduction:Aurora is an investment company with its headquarter in Muscat, Oman. The word “aurora”is derived from the name of the Roman goddess of the dawn and also related to the word goldin Latin, aurum. Aurora buys production and distribution companies, tries to improve theiroperation and sell afterwards.Aurora’s most recent acquisition is Jardin, a manufacturer of synthetic garden furniture thatare made by means of modern spraying techniques. The company has existed some 30 yearsand was, until recently, an independent Dutch manufacturing company. Traditionally, Jardinhas been successful in producing large numbers of relatively simple products consisting ofone to five components such as stacking and folding chairs.Figure 1: examples of a stacking chair, folding chair and a lounge setJardin has a new top-of-the-range product: the lounge set consisting of a table, a bench andtwo chairs (see Figure 1). It is clear that a lounge set consists of far more components thantraditional products. These components are pressed on moulding machines with the aid ofmoulds. The lounge set consists of various components, coming from different moulds, sothat a lot of adjustments and handling is required during production.200,000 sets have been sold of these lounge sets in the past year. Jardin expects this numberto grow to 350,000 and more in the future.2.2 Product description:The lounge sets are sold in various models. For example, there is a lounge set of which thearmrests of a chair end in a round angle instead of a right one. The five product variants ofresearch are: Modena, Monaco, Victoria, St. Tropez and the Victoria Balcony.Operations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 4The lounge sets are sold to consumers in a small box. The idea behind the small box is thatconsumers can take the box home immediately and independently directly after purchase.Subsequently, consumers can assemble the set themselves.Every lounge set consists of a number of components, subassemblies and, finally, the endproduct. The components are produced with the aid of moulding techniques. The assembly ofa number of components forms a subassembly; the assembly of a number of subassembliesforms an end product. In figure 2 an example of a component, subassembly and end productis given.
Figure 2: productcomponent subassembly end
An average lounge set consists of 18 different components and four different subassemblies.The precise mouldings of the lounge sets can be found in Jardin.xls.2.3 Process description of current situation:The production process consists of 4 steps:1. Supplyinggranules 2. Moulding 3. Assembling 4. PackingIn this research, only the processes of moulding and assembling are interesting, but all stepsare briefly described for a better understanding of the process.Step 1 Granules are a synthetic material; they are supplied in lorries. From the lorries, thegranules are pumped into silos. A tube system transports the granules from the silos to themoulding machines in the right composition.Step 2 There are 27 moulding machines in the factory hall. A mould is placed in the machinefor the relevant component when moulding a part – named ‘component’ here. A mould is atemplate with the right shape of the required product. The heated granules are pressed into themould, after which a component is made in each production shot.Operations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 5Figure 3 Two examples of moulding machinesEach moulding machine has a certain press capacity, with which the mould is closed. Thispress capacity is important because a minimum press capacity is required for eachcomponent: components can be produced on machines with a higher press capacity, but theycannot be produced on machines with a lower press capacity. All machines are numbered onthe basis of the press capacity of the moulding machine. Also, the moulds are numbered;there is only one available of each type of mould, but perhaps certain additional mouldnumbers should be bought in the future.No operators are needed to handle the machines themselves. Components are put on palletsvia robots. There is space for a limited number of pallets near each machine. These pallets areremoved directly by forklift drivers or indirectly by assemblers. Relevant data about the 27moulding machines can be found in the database.Step 3 Assembling is adding together parts (called ‘components’ here) into components(called ‘subassemblies’ here). After moulding, assembling in the current situation is carriedout by assemblers in the near vicinity of the machine. If a component is assembledsomewhere else, forklift drivers transport the pallets with the components to the correctlocation. After the assembling process, forklift drivers transport the full pallets to thewarehouse in warehouse hall 1.Step 4 Not until a later stage are the packed components transported to the packing line, andpacked in a single box. The transport movements of subassemblies from warehouse hall 1 tothe packing line, and from there to the docks, are outside the scope of the research.Operations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 6c. The total amount of similar material in any form of student work from a single source shouldnot exceed 7 percent. However, cases having a similarity of less than 7 percent in such cases maystill be investigated by the faculty depending on the seriousness of the case.d. If faculty member find enough merit in the case of a student work with a similarity (with asingle source) of more than 7 percent as not a case of plagiarism, the faculty member shouldprovide detailed comments/remarks to justify the case.2.4 LayoutFigure 4 Layout of a part of Plant 1A part of plant 1 with the four production halls can be seen in Figure 4. There are more drawings inthe database: please study especially the drawing with the current assembly points, mutual distancesand the location of the warehouses!The assembly points are based on the current situation and can be changed in the future, also becausethe machines in production hall 4 are used for other products now, but they will be available for thelounge sets in the future.Relocating a machine or installing a new machine is estimated to cost € 10,000 per machine, amongstother things, because of adjustments of pipes for transporting granules. The cost of laying out asubassembly point is neglectable, but it requires a space of 2 by 2 metres per assembly employee.Every new mould costs 12,000 euro.The Lachenmeier is a machine for wrapping pallets (www.lachenmeier.com). The packingdepartment (not in the drawing) can be found on the right side of the Lachenmeier; this department isoutside the scope of the research. The shrink tunnel is unnecessary, and can be removed without anycost. The location in the layout of the Technical Services, moulding maintenance and the canteen isfixed.Maal Afd.Prod.Hal 1Prod. Hal 2Prod. Hal 3Prod. Hal 4TD.1803 18021302 805krimptunnel2011253 1252 1301434302432501652 651 56120011375801502322563755Lachenmeier101 063323 321125Matrijs onderhoudSilo 1Silo 2Silo 3Silo 4KantineOperations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 72.5 Other detailsThe company works 24 hours per day, 7 days per week and 50 weeks per year (there is a 2-weeksummer shut-down due to overall maintenance). This means a five-shift system for the production inplant 1. Each production team always consists of a team leader, a number of assembly employees forcompiling assembly packages, and a number of forklift drivers who are responsible for moving inempty pallets and packing materials, and moving out full pallets to the warehouse. An operator costs€27 an hour, an assembler costs €20 an hour and a forklift driver costs € 24 an hour.The moulding machines are out of order for, on average, 15% of the time because of malfunctions ortime needed to change moulds. The Technical Services deal with changes of moulds andmalfunctions.Research has shown that a forklift has an average speed of 6 km/h, while picking up or putting downthings takes, on average, 10 seconds. Effective working time of both forklift driver and assembler areestimated to be 7 out of 8 working hours.Put simply, we suppose that assembly points generate as many pallets as are brought in, that is, 4different pallets with one component on each pallet yields 4 pallets of a subassembly in the short termas well. Assembly times per person are given per subassembly in the database.AssignmentThe lounge sets are a great success. In the future the company wants to produce 375,000 sets, that is,75,000 of each of the types Modena, Monaco, Victoria, St. Tropez and Victoria Balcony in theexisting production hall.It is not clear if this future operation fits in this hall. A decision has to be made which productsshould be made on which machines and where subassembly points are realised. The company wantsto know the investments needed and the yearly exploitation costs spent on assemblers and forkliftdrivers.Aurora requires a plan – a report (± 20 pages) and Excel files- in which the choices oflayout, working method and resulting costs are explained, and which can be checked.Plagiarism Policy: Plagiarized documents, in parts or whole, submitted by the students willbe rejected. However, if the plagiarism is found to be accidental the student may be advisedto re-submit the work only once within one week from the date of rejection. A penalty of25% of the total marks on the specific coursework assessment component will be imposed onthe re-submitted work. If the re-submitted work is also found to be plagiarized the studentwill be awarded a zero mark in the respective assessment. If the work submitted is found tobe intentionally plagiarized to gain an unfair advantage in any form, such work will beautomatically rejected and a mark of zero will be awarded. If the student is found toconsistently submit plagiarized work it will be dealt with seriously and may warrantOperations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 8suspension for a period or expulsion as may be recommended by the committee set for thepurpose.Late submission Policy: Penalty for late submission – 5% of the maximum mark specifiedfor the assessment is to be deducted for each working day for a maximum of one week.Clarification on Plagiarism PolicyAs per MEC policy, any form of violation of academic integrity will invite severe penalty.Plagiarised documents, in part or in whole, submitted by the students will be subject to thispolicy.A. First offence of plagiarisma. A student will be allowed to re-submit the assignment once, within a maximum period ofone week. However, a penalty of deduction of 25% of the marks obtained for the resubmittedwork will be imposed.b. Mark deduction: When the work is resubmitted, the marking will be undertaken accordingto the marking criteria. In compliance with this policy, the 25% deduction is then made on themarks obtained. For example, in an assessment that carries a maximum of 50 marks, supposea student were to obtain 30 marks for the resubmitted work, the final marks for thatassessment will be 22.5 (after deducting 25% of the marks actually obtained for theresubmitted work).c. Period of resubmission: The student will have to resubmit the work one week from the datehe or she is advised to resubmit. For example, if the formal advice to resubmit wascommunicated to the student on a Sunday (latest by 5 pm), the student will have to resubmitthe work latest by next Sunday 5 pm.d. If the re-submitted work is also detected to be plagiarized, then the work will be awarded azero.e. Resubmission of the work beyond the maximum period of one week will not be acceptedand the work will be awarded a zero.B. Any further offence of plagiarisma. If any student is again caught in an act of plagiarism during his/her course of study (eitherin the same module, same semester or in any other semester), the student will directly beawarded zero for the work in which plagiarism is detected. In such cases, the student will notbe allowed to re-submit the work.Operations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 9C. Guidelinesa. Type 1: In case plagiarism is detected in any component or part submission (submitted atdifferent times) of one assessment (assignment), the deduction in marks will be applicable forthe whole assessment (assignment), even if only the component or part submission aloneneeds to be resubmitted.b. Type 2: In case plagiarism is detected in a group assessment, all students of the group willbe considered as having committed an act of plagiarism irrespective of whether plagiarism ison account of the act of all or a few or only one member. The policy will then be applied toall students.c. Type 3: Combination of Type 1 and Type 2: In case plagiarism is detected in anycomponent or part submission (submitted at different times) of a group assessment(assignment), the deduction in marks will be applicable for the whole assessment(assignment), even if only the component or part submission alone needs to be resubmitted.All students of the group would be considered as having committed an act of plagiarismirrespective of whether plagiarism is on account of the act of all or a few or only onemember. The policy will then be applied to all the students of the group.d. Type 4: Variation of Type 1 and Type 2: In cases where the assessment consists ofcomponents or part submissions that could be a group assessment component (e.g. groupassignment) and an individual assessment component (e.g. individual reflection), thefollowing will be applicable:1. If plagiarism is detected in the group assessment component, all students of the group willbe considered as having committed an act of plagiarism, irrespective of whether plagiarism ison account of the act of all or a few or only one member. The policy will then be applied toall students of the group. In such cases the group assessment component will be resubmittedas per the policy.2. If plagiarism is detected in the individual assessment component, the individual assessmentcomponent will be resubmitted as per the policy. The policy will then be applied to thatstudent alone.3. In both cases (a) and/or (b), the deduction in marks will be applicable for the wholeassessment (assignment).D. Amount of similar materiala. The total amount of similar material in any form of student work from all sources puttogether should not exceed 30% (including direct quotations).b. The total amount of quoted material (direct quotations) in any form of student work fromall sources put together should not exceed 10%.Operations Management (BUSS-B 1006) – CW2 – Fall– 19 – QPPage | 10c. The total amount of similar material in any form of student work from a single sourceshould not exceed 7 percent. However, cases having a similarity of less than 7 percent in suchcases may still be investigated by the faculty depending on the seriousness of the case.d. If faculty member find enough merit in the case of a student work with a similarity (with asingle source) of more than 7 percent as not a case of plagiarism, the faculty member shouldprovide detailed comments/remarks to justify the case.
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