Operations Management

Topics: Material requirements planning, Manufacturing resource planning, Production schedule Pages: 24 (6069 words) Published: March 2, 2013
Assignment Cover Sheet

Surname: Govender

First Names: Krishna

Student Number: 109662

Subject: Operations Management

Assignment Number: 04

Tutor’s Name:

Examination Venue: Johannesburg

Date Submitted: 21 May 2011

Submission: First (X) Resubmission :()

Postal Address: P.O. Box 20568
Protea Park

Email: devgov12345@gmail.com
Contact No’s:
(Cell) 082 452 4447

Course/Intake: MBA 1 – July 2011

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by myself.

Table of Contents
Table of Contents Page No Introduction 3 1. Waste’s at St James Hospital. 4 2. The elements in St. James new approach. 4-7. 3. Further ideas from Just in Time manufacturing. 8-10. 4. Main factors that influenced the four location decision. 10-12. 5. What the companies were trying to improve. 12. 6. Factors that influence the location of design centres compared 13. factors that influence manufacturing operations.

7. Benefits of Materials Requirement Planning. 13-19. 8. Weighted moving average demand forecast. 19-20. 9. Costs associated with poor quality. 20-22. 10. Expected completion time and variance. 22-23. 11. AON network diagram 23. 12. Limitations of PERT and CPM. 24. 13. Conclusion. 24-25 14. Bibliography 25

Just In Time systems principal goal is the elimination of waste and the principal measure of success is how much or how little inventory there is. Virtually anything that achieves this end can be considered a Just In Time innovation. Just In Time (JIT) purchasing practices uniquely deliver high quality material. A major operational decision is the location strategy, which is the process of determining where the organisation should put its facility and how the organisation should determine the decision. Materials Requirement Planning (MRP) is more commonly regarded as a “push” system. It is a simple method of projecting the requirements of the individual components of a product.

List of Abbreviations.
JIT – Just in Time.
MRP – Materials Requirement Planning.
PERT – Program Evaluation and Review Technique.
CPM – Critical Path Method.

Question 1.1
Identify the ‘wastes’ that initially could be found at St Jame’s Hospital.

1.1.1. Excess inventory: Fifteen thousand different products is excessive inventory holding. 1.1.2. The use of expensive items instead of low cost items: The expensive surgeon’s gloves could be replaced by cheaper alternatives.

1.1.3. Duplicated inventory: Twenty different types of gloves are used, this could be reduced to fewer types.
1.1.4. Purchasing administration: Similar items are supplied by six or more suppliers. 1.1.5. Too many...
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