Types of layout performance criteria


Question 1 (The research is attached in the documents and it is about quality managmnet )
You are to write an essay about your research into an operations concept and its application to a business situation. The aim of the essay is to explain to an intelligent person, with no specialised knowledge of operations management, the concept on which your research was based and the extent of its application to the operations tasks in a manufacturing or service organisation.

Your essay should:

• State the operations concept and explain its meaning and relevance.
• State two (2) important areas of knowledge about the concept, preferably from recent research.
• Briefly explain a real business situation where your concept can be applied. (for the research which is attached in the documents the problem was about the application of the concept quality management to real business and the lecturer found it like it has not been explained clearly how you can apply that.)
• Explain the most important management tasks in this business situation and the effect that the operations concept has on those tasks.

Question 2 Answer either Section A or Section B

A. How realistic are the assumptions of the Economic Order Quantity (EOQ) model? Discuss how the issues of safety stock can be incorporated in EOQ and re-order point (RP) while ordering inventory. Do you think the model is still used in practice? If not, what model is mostly used while ordering inventory?


B. Recently, the Polish General Corporation, well known for manufacturing appliances and automobile parts, initiated a $13 billion project to produce automobiles. A great deal of learning on the part of management and employees was required. Even though pressure was mounting to get a new product to market in early 2012, the production manager of the newly formed automobile division insisted on almost a year of trial runs before sales started because workers have to do their jobs 60 to 100 times before they can memorise the right sequence. The launch date was set for early 2013. What are the consequences of using this approach to enter the market with a new product?

Question 3 Answer either Section C or Section D

C. Melinda Scholer has spent the last few weeks determining inventory costs for TOCO, a toy manufacturer located near Taos, New Mexico. She knows that annual demand will be 20,000 units per year and that carrying cost will be $0.50 per unit per year. Ordering cost, on the other hand, can vary from $40 per order to $50 per order. During the last 486 working days, Melinda has observed the following frequency distribution for the ordering cost. Melinda’s boss would like Melinda to determine an EOQ value for each possible ordering cost and to determine an EOQ value for the expected (mean) ordering cost.

Ordering Cost ($) Frequency Ordering Cost ($) Frequency
40 24 46 64
41 34 47 45
42 44 48 44
43 56 49 23
44 76 50 10
45 66

Remember to show all working in your answer.


D. Performance criteria important in creating a layout can go well beyond communication and materials handling. Identify and discuss the types of layout performance criteria that might be most important in the following settings:

a) Airport
b) Bank
c) Classroom
d) Product designers’ office
e) Law firm

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