Working with HOMS Food Products Sdn Bhd and part time lecturer with UiTM Shah Alam in various subjects; Operations Management, Production Management, Banking Operations, Business, Islamic Banking, Islamic Finance, ....... PRACTITIONER THAT TEACH

Thursday, August 22, 2013

Test 2 OPM530 Aug 2013


QUESTION 1

Haqen Food Industry Sdn Bhd is preparing its aggregate plan for the second half of the year. The table below contains monthly demand estimates.

Month
Expected Demand (units)
January
18,000
February
21,000
March
17,500
April
12,500
May
12,000
June
13,500

 

Production Time
:
10 minutes / unit
Working hours
:
10 hours / day
Days per month
:
22 work days / month
Current number of workers
:
10 workers
Overtime capacity
:
600 units per month
Average labour cost
:
RM10 / hour
Overtime cost
:
RM12 / hour
Subcontract cost
:
RM20 / unit
Inventory Holding cost
:
RM0.50 / unit per month
Beginning Inventory
:
800 units

 

Management prefers to keep a constant workforce and production level, absorbing variations through inventory excesses, overtime and subcontract. Demand not met will be outsourced to its sister company. Develop an aggregate plan and compute the total cost that will meet the demand and other conditions of the problem.

(11 marks)

Answer:

For a worker
à 1 unit = 10 minutes
à 1 hour = 60 minutes / 10 minutes = 6 units / hour
à 1 day = 10 hours X 6 units = 60 units / day
à 1 month = 60 units X 22 days = 1,320 units / month
 
Therefore, for 10 workers
à 1,320 units X 10 workers = 13,200 units                                                                       (1 mark)

 

Month
Demand
Actual Prod
Inv Change
Beginning stock
Overtime
Subcontract
End inv
January
18,000
13,200
-4,800
800
600
3,400
 
February
21,000
13,200
-7,800
 
600
7,200
 
March
17,500
13,200
-4,300
 
600
3,700
 
April
12,500
13,200
700
 
-
-
700
May
12,000
13,200
1,200
700
-
-
1,900
June
13,500
13,200
-300
1,900
-
-
1,600
 
94,500
79,200
 
 
1,800
14,300
4,200
Marks given
 
(1 mark)
 
 
(1 mark)
(1 mark)
(1 mark)
 
 
 
 
 
 
 
 
 
Total cost for the plan
1)     Regular cost
= Total unit produced X cost per hour
= 79,200 units / 6 unit  per hour X RM10 per hour
= RM132,000                                                                                                                  (1 mark)
2)     Overtime cost
= 1,800 units / 6 unit per hour X RM12 per hour
=  RM3,600                                                                                                                     (1 mark)
3)     Subcontract cost
= 14,300 units X RM20 per unit
= RM28,600                                                                                                                    (1 mark)
4)     Inventory holding cost
= 4,200 units X RM0.5. per unit per month
= RM2,100                                                                                                                      (1 mark)
5)     Therefore, Total cost
= RM132,000 + RM3,600 + RM28,600 + RM2,100
= RM166,300                                                                                                                (2 marks)

 

QUESTION 2

Discuss the three (3) phases of project management. Support your answer by relevant examples.

(9 marks)

 

Answer:
1)    Project planning
2)    Project scheduling
3)    Project control
Students are required to discuss on these three points. Answer must be supported by relevant examples.
(any four points X 5 marks = 20 marks)

 

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