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49989 Operations Engineering – Individual Assignment
Task 1: Describe the organisation and its operations
Select an organisation of your choice and describe the its operations (approx. 1-2 pages).
This may including e.g.:
nature of its operations (manufacturing, non-manufacturing, or combination, etc.),
type of customers, market segments, method of sales, after-sales service, etc.,
organisational size, locations, single or multi-site operations,
type of products and services,
method of product/service creation,
production, distribution, etc.
Task 2: Design the Operations
a) For the organisation you have chosen under Task 1, describe how to design a new product (or service using) De Bono’s Six Hats Thinking model. Each hat should have at least 4 items on it (approx. 1-2 pages).
b) Develop a Design Review checklist consisting of minimum 25 questions distributed evenly over the various aspects (minimum six different aspects) of your new product (approx. 1-2 pages).
Complete DR checklist by providing answers to the review questions and additional comments. Write a brief summary on the DR outcome (approx. half page).
c) Construct a value stream map (VSM) for the new product developed under section a) and b) using a MS Office program. It should have a supplier at the one end and a customer at the other end, an information flow with minimum one core activity, a material flow with at least five core activities, at least three inventory locations. You should also enter the value added and non-value added times for all core activities and inventories, and determine the ratio of value added and non-value added times. (approx. 1-2 pages).
d) As part of the VSM that you created earlier, pick at least four different waste forms and identify at least two examples for each of the four waste forms (all together eight examples).
Determine at least one root cause for each waste example and recommend at least improvement action for each of the root cause (all together eight root causes and eight improvement actions).
(approx. 1-2 pages).
Task 3: Manage the Operations
a) Develop a Supply Chain consisting of at least five elements/modules/functions for your product or service. Describe specifically how these elements/modules work together to ensure a seamless supply chain operation for your product or service.
Generic descriptions will not be accepted; they should be specifically related and relevant to your product or service (approx. 1-2 pages).
b) Determine the Inventory Reorder Point (ROP), Safety Stock and Economic Order Quantity (EOQ) for your product or service based on the following parameters (approx. 1-2 pages).
Demand (D) per week = (pick a number that is relevant to your assignment)
Lead Time during replenishment (L/T) = a number between 1 and 4 weeks
Standard Deviation of demand during replenishment (SD) = 10%.
Carrying cost (H) per week = a number between $0.50 and $3.00
Fixed cost of order (S) = a number between $5.00 and $20.00
Service Level = a number between 80% and 95%
c) For the process that you picked earlier for value stream mapping, construct a production (layout) floor plan (with at least five core activities) using a MS Office program. Determine the location of equipment, personnel, inventory, etc. as well as the flow of materials/goods with their proper names. (approx 1-2 pages).
d) For your product, construct a JIT production flow based on a Kanban Pull system. Label all the elements and activities within the layout, and describe how the pull system works (approx 1 page).
e) For one of the production equipment, determine its reliability based on a fictitious MTBF and calculate the probability of a failure to occur after a certain time of its intended operation time (approx. 1-2 pages).
f) For the same equipment, calculate the OEE (which should be less than 85%) and determine at least five actions to improve its OEE (approx. 1-2 pages).
Task 4: Improve the Operations
a) Pick a 2-step process that is relevant to your operations. Then assume a certain output for the step 1, and that you have produced a small number of defective items, say between 3-5% at step 1, and between 5-7% at step 2. For defects, assume a number that must be larger than the defective items observed at each step.
Now, determine the performance metrics Yield (defective), RTY (defective), Yield (defect), and RTY (defect) for this process, and provide a brief interpretation of the results (approx 1-2 pages).
b) In one of the operational processes of your choice pick a particular problem. Identify its root cause(s) by using the 5-Why methodology (apply at least 5 x Why). Determine a suitable action to eliminate/reduce the root cause(s) (approx. 1 page).
c) Assume a fictitious constraint (bottleneck) in your operations. Describe what specific actions you could take to overcome that constraint using the TOC’s Five Focusing Steps. You can use the headings of the Five Focusing Steps, but the actions (details under the headings) should be specific and relevant to your constraint (approx. 1 page)
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