Business Finance
Saudi Electronic University Operations Management Paper

Saudi electronic university

Question Description

I’m studying for my Management class and need an explanation.

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
  • Submissions without this cover page will NOT be accepted.

Learning Outcome:

  • Understand the concept of process selection, forecasting, capacity planning, production forecast methods and schedule operations.
  • Apply knowledge and skills to optimize production objective of maximizing profits using qualitative and quantitative techniques in related areas of operations management.
  • Exhibit the knowledge of lean system, quality controls and green systems

Assignment Question(s):(Marks 5)

Question 1:

A company that makes car accessories. The company control its production process by periodically taking a sample of 99 units from the production line. Each product is inspected for defective features. Control limits are developed using three standard deviations from the mean as the limit. During the last 12 samples taken, the proportion of defective items per sample was recorded as follows:

0.01

0.03

0.0

0.04

0.01

0.01

0.00

0.01

0.02

0.02

0.03

0.03

a. Determine the mean proportion defective, the UCL, and the LCL? (Marks 1) (word count maximum:150)

b. Draw a control chart and plot each of the sample measurements on it? (Marks 1) (word count maximum:100)

c. Does it appear that the process for making tees is in statistical control? (Marks 0.5) (word count maximum:100)

Question 2:

A Chemical Company estimates the annual demand for a certain product as follows:

Week

1

2

3

4

5

6

Demand

649

524

561

738

511

600

  • Forecast the demand for week 7 using a five-period moving average? (Marks 0.5) (word count maximum:100)
  • Forecast the demand for week 7 using a three-period weighted moving average. Use the following weights: W1 = .5, W2 = .3, W3 = .2.? (Marks 0.5) (word count maximum:100)
  • Forecast the demand for week 7 using exponential smoothing. Use an α value of .1 and assume the forecast for week 6 was 602 units? (Marks 1) (word count maximum:100)
  • What assumptions are made in each of the above forecasts? (Marks 0.5) (word count maximum:150)








q3. EXPLAIN THE CROSS FUNCTIONAL DECISION AND ITS IM[PORTANCE.

GIVE AN EXAMPLE FROM YOUR EXPERIENCE.



Q4. what are the diffrent types of quality. give an example


Q5. define one concept of the week ( Qualitative forecasting methods )


Q7. explain and give exampe of chase stragtegies and level strategy


Q8. facility strategies and factors


Q9. define the aggregate planning


Q10. what are the types of wastes you noted in your work?



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Final Answer

Attached.

Running head: OPERATION MANAGEMENT

Operation management
Name
Institution
Date

1

2

OPERATION MANAGEMENT
Q1. a. A sample of 12 units taken from data of 99 units
Mean

Lcl=( m-

ucl

Ucl=(m+3*sigma)

0.0175

3*sigma)

0.056141711

-0.151

Standard deviation becomes sigma in this case.
To calculate the standard deviation, use the following formula.
∑(𝑥𝑖−𝑋0

Sample standard deviation= √

𝑁−1

for i=1 to N

Using the formula in Microsoft excel will give 0.0129 as the sample standard deviation.
1. b
mean

0.0175

standard
deviation

0.012881

control chart
0.12
0.1
0.08
0.06
0.04
0.02
0
1

2

3

4
sample

5

6
mean cl

7

8
ucl

9

10
lcl

11

12

3

OPERATION MANAGEMENT
1. c. The sample is still in statistical control. As seen from the graph,
there is no point that UCL comes into contact with the LCL.
Q2.
question 2a. to estimate the seventh value using excel, we start with the second variable in the
case of 5 moving average.
Week

demand
1

649

2

524

3

561

4

738

5

511

6

600

7

2. b.
week

demand

1

649

2

524

3

561

4

738

5

511

6

600

7

200

587

4

OPERATION MANAGEMENT
The formula used
in excel is as
follows=
(w1*D(N-1) +
W2*D(N-2) +
W3*D(N-3))/3
(600*.5 + 511*.3
+ 738*.2)/3 =
200
D represents the
demand for that
month.
2. c
week

Demand

Forecast

1

649

649

2

524

536.5

3

561

558.55

4

738

720.055

5

511 531.9055

6

difference

602

5

OPERATION MANAGEMENT
F (7) =
0.1*600 +
7

0.9*602=602

F(n+1) =a*D(n) + (1-a) *F(n) is the formula for exponential smoothing
Q3. EXPLAIN THE CROSS FUNCTIONAL DECISION AND ITS IMPORTANCE.
Cross-functional decisions are types of an approach used in an organization which comprises of
people with a different set of skills and work with one another to have a better performance of
the entity. It may involve members from a different department in an organization. Some of the
functional areas in an organization that the team may come from our sales department, finance,
accounts and audit department, human resource and customer care department (Li, X. 2003).
The advantages that come along with such teams include:
1. Better decision-making process because of the diversified set of skills combined.
Members of the teams come with different knowledge, expertise, and problem-solving
skills.
2. There is improved collaboration in the team, especially among major functional areas.
Better teamwork among members of the team helps it to give the client a great experience
in working with them. A satisfied client always come back or refer others hence
improving the performance of the entity.
3. Product innovation is improved. Different skill sets among workers in the team provide
different ideas on how to improve a particular project to ensure customer loyalty keeps
increasing. Working together forms ensures that comprehensive solutions to problems are
realized quickly without much struggle.
Example

OPERATION MANAGEMENT

6

A company that has been dealing with the transportation of cargo realizes that revenue generated
is reducing significantly annually. The board of management requires that the chief executive
officer come up with a solution to that. As a professional manger, a team of representatives is
done to come up with solutions to improve the performance of the business. A cross-section team
put in place sees the company improving in performance and to its optimal point.
Q4. What are the different types of quality?
Quality is the extent of value to which one gets from consuming a product or a service.
1. Product quality value. Different products offer different ways of satisfaction to their
clients.
2. Service quality. Defined as the level of satisfaction one gets from receiving a service.
3. Information quality. If the information received or relayed is clear, timely and serves the
purpose it was intended, it off...

TutorJudithi (2655)
Cornell University

Anonymous
Return customer, been using sp for a good two years now.

Anonymous
Thanks as always for the good work!

Anonymous
Excellent job

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