Aim
To develop an understanding of overall concepts of various industrial manufacturing process and management functions.
Objectives
Giving exposure to the students about local markets and identify the products and their demand in the market. And also to identify the concepts of manufacturing system by applying the knowledge of management skills.
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
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).
Task
Section- A
1. Task in this question requires each student to carry out local market study, survey and analysis. Each one should visit the local market places, select any Five products (electronic / automobile / any other consumer products) with all brands available in the Oman market, study the product in detail, and carry out the survey and provide answers for the following questions in the report:
i. Mention any two products with details like Name, Specifications, Prices and Manufacturers.
ii. ‘It has been observed that the design of any existing product in today's market is modified with revised or new versions'. Explain why the manufactures keep changing the design of the products, supporting your answer with a product example.
iii. Identify any product whose sales and demand are very high in local market as compared to the other product in the same segment and discuss various factors affecting higher sales/demand of the product in the market.
2. i. the government of Oman has implemented new policies due to the low oil/gas price, Suggest appropriate measures to be taken by local manufacturing industries in order to Sustain in the market till recovery of oil price to the normal level.
ii. Write major advantages and disadvantages of Discount cash flow and Non discount cash Flow techniques followed in capital investment.
3. Break-even analysis helps a manager to understand more clearly the nature of relevant costs and their importance in managerial decision making, resulting in that the manager is able to take more sound and effective decisions. Explain its relevance to any manufacturing industry, supporting your answer with an example.
NOTE:-
a) Answer to all the questions from Section-A. Answers should be related to the questions and the answers all together should not exceed more than 1000 words.
b) Language skills and clarity in the contents with subject knowledge are essential and marking will be done accordingly.
c) Students are advised to proof read the entire report once completed before uploading to TURNITIN and the report should be free from language errors.
d) CCE Harvard reference format need to follow for the report.
e) The report should be TURNITIN checked and a SIMILARITY INDEX REPORT should be submitted along with the report by the student.
Section- B
4. Rusyl plastic processing industry is a well reputed company in Oman. The company from time to time carrying out the market survey with the support of a local consultancy company identifying potential market for any new products and its demand in the market. The consultancy company has submitted a feasible report after the market survey to the company stating in the report that a new product shows a demand forecasting with 3,200 units per week over 52 working weeks in a year and the company requires an investment of RO 50,000 to meet the target quantity. Also, the following information in Table Q4 pertaining to the costs and other financial aspects is provided by the consultancy company.
|
Description
|
Details
|
|
Unit price of the product
|
RO 2.5
|
|
Raw material cost
|
RO 1.4
|
|
Production time per unit product
|
25 standard minutes
|
|
Employee charges
|
RO 50 per week
|
|
Annual fixed costs
|
RO 36,000
|
|
Other variable costs per unit
|
RO 0.400
|
|
Annual scrap value
|
RO 8000
|
|
Cost of capital
|
12%
|
|
Corporation tax payable every year
|
30%
|
|
Working week (hrs)
|
40
|
|
Life of the product (years)
|
8
|
Table Q4
i. A company is very much concerned on the future value of net cash flow before venturing into the production of new product. As the company's requirement on the new project and their interest on NPV calculations, determine NPV for the new project proposal.
ii. Using the information from the table 1 if an alternate option is available to buy the raw material at the price of RO 1.3 and other variable cost is RO 0.600 with fixed cost of RO 42000, determine NPV for the alternate option.
iii. Mention whether the company can take a decision to accept the new project proposal or alternate option.
iv. If the industry considers the third option, project C is to buy in 4000 components per year from another company at a price of RO 120.000 per unit, how much amount of money is to be paid per year?
v. Calculate Break Even point and margin of safety (units and value) If the company sells 3200 units of new product per year at a price of RO 45 .000 for both the options. 8Marks
5. Madina manufacturing industry is producing metal plates for seven products for Seeb service center, the process industry executes and completes all works sequentially. Under the terms of contract between the two companies, the process industry will receive RO 2,000 for each work completed on time, but it will incur RO 3,000 in penalties for each work completed late. The details of each product, processing time for each product, and the due days are shown in the Table Q5.
|
Products (Works)
|
Processing Time (Days)
|
Due days
|
|
A
|
5
|
10
|
|
B
|
14
|
32
|
|
C
|
4
|
16
|
|
D
|
10
|
19
|
|
E
|
12
|
26
|
|
F
|
8
|
22
|
|
G
|
15
|
18
|
Table Q5
i. Considering the data in the table Q5 as single machining schedule, determine the sequence which will minimize the maximum lateness and also, maximum lateness with respect to the optimal sequence and also, find out the tardy works and how much revenue will be lost due to tardy jobs
ii. By using Hodgson's algorithm, determine the sequence of all works in order to maximize net revenues.
iii. Mention how much revenue will be saved if Hodgson's algorithm is followed by the company.