Mancosa Operations in supply chain management revision
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Operations in supply chain management
Instelling
Management College Of Southern Africa (MANCOSA)
This is for Advanced diploma in business management students but if this is relevant to your module then you are welcome to use .This has exercises on advanced management principles and has questions and answers to some of the questions and has answers to the november 2022 Osa exam
Question 1
One X-South African president in partnership with the Russians has been awarded a contract to
build a nuclear reactor that will generate electricity capable of powering the country and its all its
neighbouring countries. Unlike South Africa, Zimbabwe is a land-locked country but rich in
uranium. As consultant for the electricity project, assess issues pertinent to locating of the plant
before you can recommend the most appropriate location.
Question 2
Your CEO has picked up an increase in production but also a significant increase in costs. As
Operations manager, you have been requested by the CEO to prepare productivity analysis for the
company comparing 2021 and 2022. Reports pulled out of the system shown figures in the table
below:
Year 2021 2022
Production units 20 000 25 000
Raw materials (ton of wood) 1 500 2 500
Labour hours 45 000 55 000
Capital costs R400 000 R500 000
Due to quality enhancement, the cost of labour cost per hour increased from an average of R10
per hour to an average of R15 per hour. The average cost per tonne of raw material had increased
from R500 to R600 again from 2021 to 2022. Due to new requirements by the bank, the cost of
capital increase from R400 000 to R500 000. The CEO handed the above figures and is expecting
productivity figures urgently.
2.1 Using the above information, provide a detailed calculation of single productivity analysis and
multifactor productivity
Solution
Single factor productivity
2021 2022
Labour productivity
(output/labour hours)
Material
1
,REVISION 1 – Operations in Supply Chain 2024
2.2 Comment on single factor productivity
Multifactor productivity
2021 2022
Material
Labour
Capital
Total Cost
Overall
2.3 Comment multifactor productivity
Question 3
Critically discuss how the performance objectives within Eskom Supply Chain can result in improved productivity. Make
use of relevant examples to justify your answer.
Question 4
The president intervenes and replaces current Eskom employees. Recommend any five steps in Operations Management
Decision-Making which may help Eskom to improve its supply chain. Make use of relevant examples to justify your
recommendation.
Question 5
Discuss the Input, Transformation, and Output processes at SAB-Miller.
2
,REVISION 1 – Operations in Supply Chain 2024
Question 1
One X-South African president in partnership with the Russians has been awarded a contract to
build a nuclear reactor that will generate electricity capable of powering the country and its all its
neighbouring countries. Unlike South Africa, Zimbabwe is a land-locked country but rich in
uranium. As consultant for the electricity project, assess issues pertinent to locating of the plant
before you can recommend the most appropriate location.
Question 2
Your CEO has picked up an increase in production but also a significant increase in costs. As
Operations manager, you have been requested by the CEO to prepare productivity analysis for the
company comparing 2021 and 2022. Reports pulled out of the system shown figures in the table
below:
Year 2021 2022
Production units 20 000 25 000
Raw materials (ton of wood) 1 500 2 500
Labour hours 45 000 55 000
Capital costs R400 000 R500 000
Due to quality enhancement, the cost of labour cost per hour increased from an average of R10
per hour to an average of R15 per hour. The average cost per tonne of raw material had increased
from R500 to R600 again from 2021 to 2022. Due to new requirements by the bank, the cost of
capital increase from R400 000 to R500 000. The CEO handed the above figures and is expecting
productivity figures urgently.
2.1 Using the above information, provide a detailed calculation of single productivity
analysis and multifactor productivity
Solution
Single factor productivity
2021 2022
Labour productivity 20 000 units/45 000 hrs = 25 000 units/55 000 hours =
(output/labour hours) 0.444 units per labour hour 0.455 units per labour hour
Material 20 000 units/1 500 tons = 25 000 units/2 500 tons = 10
13.333 units per ton units per ton
1
, REVISION 1 – Operations in Supply Chain 2024
2.2 Comment on single factor productivity
Multifactor productivity
2021 2022
Material 1 500 x 500 = R750 000 2 500 x 600 = R1 500 000
Labour 45 000 x 10 = R450 000 55 000 x 15 = R825 000
Capital R400 000 R500 000
Total Cost R1 600 000 R2 825 000
Overall 20 000 units/1 600 000 = 0.012 5 units 25 000 units/2 825 00 = 0.008 8 units per
per rand rand
2.3 Comment multifactor productivity
Question 3
Critically discuss how the performance objectives within Eskom Supply Chain can result in improved productivity. Make
use of relevant examples to justify your answer.
Question 4
The president intervenes and replaces current Eskom employees. Recommend any five steps in Operations Management
Decision-Making which may help Eskom to improve its supply chain. Make use of relevant examples to justify your
recommendation.
2
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