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MNO2601 Assignment 5 2021 Semester 1 and 2
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This document serves as a guide to Assignment 5 Semester 1 and 2 2021
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MNO2601 ASSIGNMENT 5SEMESTER 1 & 2 Unique No: 869829
YEAR 2021
PLEASE DO NOT PLAGIRIZE!
THIS PACK CONTAINS ANSWERS TO ASSIGNMENT 5.
THIS ASSIGNMENT IS ALSO BASED ON YOUR OWN OPINION,
THEREFOR USE THIS AS A GUIDELINE ONLY
, MULTIPLE-CHOICE QUESTIONS (10 marks)
Jacob is an operations manager who works for a major paper manufacturer that wants to grow
their business and still maintain their strong competitive position. The company has made huge
investments over the year to create optimum conditions for its employees, complimented by the
progressive set of human resources policies and practices. To enhance supply chain visibility,
the plant implemented an integrated distribution service to enable a quicker delivery time to
customers as soon as online orders have been placed.
To ensure that the production line has enough production stock for the various tasks, the
business uses a stock-control system whereby it waits for stock levels to reach a predetermined
level before they reorder at a fixed quantity. Due to poor delivery and insufficient stock levels,
Jacob has decided to implement a new system to ensure better stock control. Jacob wants
orders to take place every 2 weeks (when there are only 500 units left in storage) as well as to
keep safety stock. Ideally, it is desired that new stock arrives when stock inventory reaches a
certain pre-determined minimum level.
Questions 1-3 deal with the case study below.
A reconditioned copying machine at the paper plant can operate for 7 days a week and 24
hours a day. Statistics recorded for the machine are as follows:
Product changeovers 20 hrs
Regular preventative maintenance 16 hrs
No work scheduled 8 hrs
Quality sampling checks 8 hrs
Shift change times 7 hrs
Maintenance breakdown 18 hrs
Quality failure investigation 20 hrs
Coating material stockout 8 hrs
Labour shortages 6 hrs
Waiting for paper rolls 6 hrs
Should the machine not operate for 59 hours a week due to planned occurrences (unavoidable)
and not for 58 hours due to unplanned stoppages (avoidable), what are the utilisation and
efficiency ratios of the machine?
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