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Operations Management Case Study (Mark: 40%)

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Operations Management

Case Study (mark: 40%)


Part I: Write a Report on One Selected Local Company Based Using Following
Questions.
Pick a local company (Only Business Company) with which you are familiar either by
working for it or by a close family member working for it.
Write a term paper about it with the following sections:
1. Introduction - Give a brief overview of the company including its product or
services, location, history.
2. Product - Describe the product or product mix or service in more detail.
a. What created the opportunity for company’s product or service?
b. What issues are involved in the design of company’s product or service?
Environmental issues, robust design, value analysis, modular, manufacturability, etc.
c. Where is the product or service in its life cycle?
3. Process - Give an overview and flow diagram of the process. If your process is very
complex, give an overview. Point out any bottlenecks in the company’s process.
4. Location - Explain why the business is located where it is. Discuss issues pertinent to
its location.
5. Layout - What type of layout does the company have? What is the rationale behind
the layout?
Show a diagram. How can it be improved?
Part II: Workout
ILLUSTRATION 1: The design capacity for engine repair in our company is 80 trucks
per day. The effective capacity is 40 engines per day and the actual output is 36 engines
per day. Calculate the utilization and efficiency of the operation.
ILLUSTRATION 2: Let us assume that a new medical facility, Health-care, is to be
located in Harar. The location factors, factor rating and scores for two potential sites are
shown in the following table. Which is the best location based on factor rating method?

1
S. No. Location Factor Factor Rating
Rating Location 1 Location 2
1. Facility utilization 0.3 45 40
2. Total patient per month 0.1 50 56
3. Average time per emergency trip 0.2 70 65
4. Land and construction costs 0.25 60 65
5. Employee preferences 0.15 80 75

ILLUSTRATION 3: The new Health-care facility is targeted to serve seven survey tracts in
East Hararghie zone. The table given below shows the coordinates for the centre of each survey
tract, along with the projected populations, measured in thousands. Customers will travel from
the seven survey tract centres to the new facility when they need health-care. Two locations
being considered for the new facility are at (3.5, 5.5) and (6, 3), which are the centres of survey
tracts B and D. Details of seven survey tract centres, co-ordinate distances along with the
population for each centre are given below. If we use the population as the loads and use
rectilinear distance, which location is better in terms of its total load-distance score?
S. No. Centre of (X,Y) Population
survey (000)
1. A (6, 5.5) 5
2. B (3.5, 5.5) 15
3. C (5, 6) 10
4. D (6, 3) 20
5. E (8, 10) 3
6. F (4, 6) 6
7. G (2, 4) 4

ILLUSTRATION 4: Assume that XY company plan to select the common center for existing
seven plants. Base on the information given in the table below, to where the common center to
locate? (Use Center of gravity).

2
S. No. Location of existing Distance Volume
Plants (miles) (ton)
1. A 200 5
2. B 500 3
3. C 700 5
4. D 300 3
5. E 500 7
6. F 250 5
7. G 600 4

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