Exam (elaborations)
MNP3702 Assignment 3 Semester 1 2024 (150019)- DUE 18 April 2024
- Course
- MNP3702 (MNP3702)
- Institution
- University Of South Africa
QUESTIONS AND ANSWERS
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[Date]MNP3702 Assignment
3 Semester 1 2024
(150019)- DUE 18
April 2024
QUESTIONS AND ANSWERS
[COMPANY NAME]
, MNP3702 Assignment 3 Semester 1 2024 (150019)- DUE 18
April 2024
As an expert in Supply Chain Management, discuss (using examples where possible
how load-shedding affects the logistics and operations management of small and
medium enterprises in South Africa AND explain how small and medium enterprises
can minimise the impact without bankrupting their accounts using lean and Six
Sigma. In your answer provide reliable sources and a list of references.
VERSION ONE
The Crippling Grip of Load Shedding: How SMEs in South Africa Can Fight
Back with Lean & Six Sigma
Load shedding in South Africa throws a wrench into the well-oiled machines of
small and medium enterprises (SMEs). Predictable operations become a gamble,
and efficient logistics a distant dream. Let's delve into how load shedding disrupts
these crucial areas for SMEs, and explore how Lean and Six Sigma principles can
be their saving grace.
The Disruption Chain Reaction: How Load Shedding Impacts SMEs
• Production Halts and Delays: Machinery grinds to a halt during power
outages, leading to production delays and missed deadlines. Perishable
goods like food can spoil, and momentum is lost in assembly lines [1].
• Inventory Management Mayhem: Unplanned outages disrupt "just-in-
time" inventory practices, forcing SMEs to hold higher stock levels,
increasing storage costs and the risk of obsolescence [2].
• Logistics Logjams: Refrigerated trucks can't maintain temperature,
deliveries get delayed, and communication with transport companies
crumbles without electricity [3].
• Data Disasters: Unsaved work and corrupted files become a nightmare
during outages, especially for businesses reliant on digital record-keeping
and customer interaction [1].
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