What are the advantages and limitations of planning

Operations Management


What are the advantages and limitations of planning


Answer the following question.

Q1. What are the advantages and limitations of planning? (10 marks)

Q2. 5. Serra’s Ceramics spent 3 000 MU on a new kiln last year, in the belief that it would cut energy usage 25 % over the old kiln. This kiln is an oven that turns “greenware” into finished pottery. Serra is concerned that the new kiln requires extra labour hours for its operation. Serra wants to check the energy saving of the new oven, and also to look over other measures of their productivity to see if the change really was beneficial. Serra has the following data to work with: Last Year This Year Production (finished units) 4000 4000 Greenware (pounds) 5000 5000 Labour (hrs) 350 375 Capital (MU) 15000 18000 Energy (kWh) 3000 2600 Were the modifications BENEFICIAL? (10 marks)

Q3. The CoolTech Co. produces various types of fans. In May, the company produced 1728 window fans at a standard price of 40 MU. The Co. has 12 direct labour employees whose compensation (including wages and fringe benefits) amounts to 21 MU/hour. During May, window fans were produced on 9 working days 9of 8 hours each), and other products were produced on other days.

  1. Determine the productivity of the window fans. b. In June, the CoolTech Co. produced 1 730 fans in 10 working days. What is the percentage in labour productivity of windows from May? (10 marks)

Q4. Ilhan’s, a local bakery, is worried about increased costs – particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Ilhan Balci, the owner, does not believe things have changed much, but he did invest an additional 3 000 MU for modifications to the bakery’s ovens to make them more energy efficient. The modifications were supposed to make the ovens at least 15 % more efficient. I. Balci has asked you, as a brilliant graduate of EMU, to check the energy savings of the new ovens and also look over other measures of the bakery’s productivity to see if the modifications were beneficial. You have the following data to work with: Last Year Now Production (dozen) 1 500 1 500 Labour (hours) 350 325 Capital Investment (MU) 15 000 18 000 Energy (kwhrs) 3 000 2 750 (10 marks)

Q5. 11. Ahmet Uslu makes wooden boxes in which to ship motorcycles. Ahmet and his three employees invest 40 hours per day making the 120 boxes.

  1. What is their productivity?

  2. Ahmet and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what would be their new productivity?

  3. What would be their increase in productivity? (10 marks)

Q6. Magusa Metal Works produces cast bronze valves on an assembly line. On a recent day, 160 valves were produced during an 8hour shift. Calculate the productivity of the line. (10 marks)

Q7. The manager of a local firm says “the forecasting techniques are more trouble than they are worth. I don`t forecast at all, and I`m doing 25% more business than last year”. Comment. (10 marks)

Q8. What is the logic of Taguchi methods? (10 marks)

What are the advantages and limitations of planning


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