Find out whether the system capacity of 5000 kg can be


Aim

To develop an understanding of overall concepts of various management functions.

Objective

- To expose local industries and identify products and their specifications.
- To identify worthy projects by applying the knowledge of capital investment appraisal techniques and break even analysis
- To gain the overall knowledge of operations (production) management relating to capacity planning

A. Knowledge and understanding of the topic

- Demonstrate knowledge of acquisition of information
- Demonstrate appropriate application of module knowledge
- Demonstrate wider reading and comprehension of topic

B. Application and analysis of the topic (Module specific Skill)
- Study the products available in the local market.
- Perform investment appraisal
- Understand the concept of maintenance
- Understand the concept of a manufacturing system and the factors to be considered when designing a manufacturing system (Job sequencing ).

C. The structure in terms of logic and coherence

Submissions should have a clear start and a clear end. Information within submissions should also be logical and well grouped by following Report structure with Introduction and Referencing,
Result Analysis, and Conclusion and Future works.

D. The use of relevant work examples and/or examples gained from further reading

The following books may be referred to for preparing the course works

1. Dyson, J.R., 2001. Accounting for Non-Accounting Students, Harlow: Financial Times/Prentice Hall.
2. Peter Atrill and Eddie McLaney, 2008, Accounting and Finance for Non-specialists, New York: Prentice Hall.
3. James C Van Horne, 2007. Financial Management & Policy, P New York: prentice Hall.
4. Joseph G. Monks, 2008. Operations Management, 3rd edition, New York: McGraw-Hill international Editions.
5. Lee J Krajewski and Larry P. Ritzman, 2007. Operations Management, 5th Edition, Upper saddle river: Addison-wesley.
6. Philip E. Hicks, 2006. Industrial Engineering and Management, 2nd Edition, Mc Graw Hill college.

These reading lists are not exhaustive and candidates are encouraged to read further and reference at the end of the course work using Harvard style of referencing.

SECTION-A

(a) Mention the names of ANY FIVE MANUFACTURING and FIVE SERVICE companies in Sultanate of Oman (Full name without spelling mistakes).

(b) Describe the profile of each company, its line of production and specifications of the products (ONE from Manufacturing and ONE from Service company, using your own sentences with 300 words approximately for EACH category).

‘Maintenance of machinery and equipment is a part of investment for efficient and effective production of any manufacturing industry to enhance reliability of production process. Meeting the production schedules and availability of products to the customers at all the time, every time and all places are dependent on the maintenance management'. Explain its relevance to any manufacturing industry, supporting your answer with an example.

In the present scenario of low oil price and Oman being oil based economy, discuss the following in detail:

(a) The impact of low oil price on the policies of Government of Oman, local industries and business firms. (200 words approximately)

(b) Various risks involved in the existing and the new projects or businesses for an investor and mention whether the period is suitable for a new investor.(200 words approximately)

(c) Best measures needed in order to overcome the present situation for the sustainability of local industries. (200 words approximately)

NOTE:-

1. Section-A report should be TURNITIN checked and a SIMILARITY INDEX REPORT should be submitted along with the report by the student.

2. Language skills and clarity in the contents with subject knowledge are essential and marking will be done accordingly.

3. Students are advised to proof read the entire report once completed before uploading to TURNITIN and the report should be free from language errors.

4. CCE Harvard reference sheet should be submitted along with the report.

5. Delay in submission will be marked as ZERO as per the College rules.

SECTION-B

M/S Al-Hail company is planning to undertake an investment project. An investment is needed to start the project and there are two projects available, but one to select. The details of the projects A and B are given in the table Q(4):

Data

Project-A

Project-B

Economic life (years)

8

8

Sales volume (units per year)

20,000

24,000

Sales price (RO per Unit)

8.000

8.000

Initial investment (RO)

125,000.000

150,000.000

Initial construction costs (RO)

20,000.000

30,000.000

Initial freight charges for machinery (RO)

4,000.000

4,000.000

Liquidation value at the end of the period

10,000.000

10,000.000

Fixed operating costs (RO per year)

8,000.000

10,000.000

Variable unit cost (RO)

5.500

5.000

Cost of capital

12%

12%

(a) Using the information from the table Q(4), calculate the following:
(i) Pay Back period (PBP)
(ii) Average Rate of Return
(iii) Net Present Value (NPV)
(iv) Break Even Sales (BES) and Break Even Quantity (BEQ)
(b) Ascertain which of the projects should be selected using the above results and justify your answer.

A food company is producing corn flakes using various automatic machinery and the market demand is 5,000 kg per week and the weekly working hours of the company are 40. The capacities of the machines are provided and given in the table Q(5). During the process, material moving from one machine to another in sequence following the precedence. The ratios for adding the materials from machines B, C and D are 2, 2 and 1 respectively. The ratio for the machines F and G is 4 to 1.

Machine

Capacity (Units/hr)

Precedence

A

60

-

B

60

A

C

40

-

D

40

-

E

150

B, C & D

F

150

E

G

50

-

H

100

F & G


(i) Using table Q(5), calculate the maximum system capacity that can be achieved.

(ii) Find out whether the system capacity of 5,000 kg can be achievable without upgrading any of the machine in the system.

(iii) Determine bottleneck machines. Find new capacities of bottleneck machines to obtain the system capacity of 5,000 kg.

(iv) If future demand is increased to 8,000 kg, what measures the company should take in order to achieve the future target (in terms of capacities of machines).

(v) There are two options available before the company, either to buy new machinery or go for second hand machinery. The company needs additional investment for both options. Discuss advantages and disadvantages of both the options and recommend the best option based on your justification.

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