Operations Management
1. Define and explain the following terms related to operations management with neat sketches and suitable examples:
a. CPM and PERT
b. Taguchi method of quality control
2. Various financial data for the financial year 2015 for two different plants, making same product is given in the following table. The Input is given in the form of expenditure in dollars. Calculate the total productivity measure and the partial measures for Labor, Capital, Energy and Raw materials for this company for both years. What do these measures tell you about this company?
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Particulars
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Plant A
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Plant B
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Output:
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Sales
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$ 412,000
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$455,000
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Input:
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Human resources
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$ 60,000
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$80,000
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|
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Capital
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$ 100,000
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$105,000
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|
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Power consumption
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$ 10,500
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$12,300
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Inventory purchased
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$ 72,000
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$91,000
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Miscellaneous
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$ 4,000
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$7,000
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3. Assume you have a product with the following parameters:
Annual Demand = 7200 units
Holding cost per year = $2.00 per unit
Order cost = $150 per order
a) What is the EOQ for this product?
b) Assuming a 300-day work year, how many orders should be processed per year?
c) What is the expected time between orders?
d) What is the total cost for the inventory policy used in Problem 3?
4. The case study of Arabic TV Channel "Quest Arabia" is given below. Answer the questions given at the end based on the case study:
Arabic TV Channel Quest Arabia began broadcasting on 15th January 2016 with exciting factual entertainment shows to 45 million homes in 22 countries across the Middle East and North Africa (MENA). The channel fills a Gap in the Arabic TV Market by providing Factual entertainment content of a quality and breadth that has never seen before in the region.Image Nation Abu Dhabi is partnering with Discovery communications to launch Quest Arabia. The viewer support, Goodwill and experience of these well-established networks will be an added advantage to Quest Arabia. Quest Arabiya will be aimed primarily at Arab men aged 16-44 with a lineup combining factual and reality programs with a combination of locally-produced original material as well as localized content from Discovery's library.
Operating from an office in the UAE, Discovery offers a portfolio of TV channels, which includes free-to-air network Flatfeet, as well as pay TV networks Discovery Channel HD, TLC HD, Animal Planet HD, Discovery Science HD, ID: Investigation Discovery and Discovery World, distributed on OSN. Flatfeet, the number one food network in the Middle East, is present in 55 million TV households in the region and in Saudi Arabia it is the fourth most-watched channel among women 20-44, and third among all women in the time period between noon and 6 p.m. Discovery Channel is one of the most successful international TV channels in Middle East amongst affluent adults, and ranks as the top factual channel based on weekly reach.
Earlier this year, Starz launched Starz Play Arabia, its subscription online video service across 17 countries in the Middle East, stealing a march on others, including Netflix and Amazon, who are also eyeing up the potentially lucrative market. While broadband penetration can be patchy across the region, mobile penetration is through the roof. In the UAE, for example, there are more mobile phones than there are people.
As expats makeup over 88% of UAE Population, in recent years we have seen growing competition from foreign non-Arabic channels in this field of industry. So Quest Arabia should develop innovative and competitive strategies to attract viewers as well as advertisers.
a. What competitive advantage that Quest Arabia has over all other channels?
b. Point out the challenges of Quest Arabia as a new entertainment channel.
c. As a Strategy Advisor of Quest Arabiawhat major strategical changes would you like to suggest and implement to increase its revenue?