Production Management

BCO214 Production Management Final Assignment

Task:

 The following assignment is an individual task.  Questions and tasks:

o CASE STUDY 1. Production Planning and Control. (350-400 words)  Define: Design Capacity, Effective Capacity and Actual Capacity.  Calculate the Design Capacity, the Effective Capacity, and the Actual Capacity of the

packaging machine, during 2020  Define the Percentage of Efficiency and the Percentage of Utilization  Calculate the % of Efficiency and the % of Utilization of the packaging machine during

2020  How could the company improve the % of Efficiency and the % of Utilization?

o CASE STUDY 2. Quality Control. (350-400 words)  Define the 3 types of Quality Costs. If you where the Production Manager of a company,

in which of the 3 would you invest the most? Discuss your answer.  Calculate the Efficiency and Effectiveness of each of the 4 processes. If as a you had to

look for ways to increase the Efficiency and Effectiveness of those processes, how would you do it?

o CASE STUDY 3. Maintenance & Waste Management. (350-400 words)  Describe 3 of the 8 pillars of the Total Productive Maintenance (TPM).  Of the 8 wastes established by the Lean Manufacturing methodology, which do you

consider to be the 3 most important for a company that produces electronic components and equipment? Why?

 Remember that in this type of assignments, the proposed questions should serve as a guide, but do not limit yourself exclusively to answering the questions. Make sure you include enough theoretical information (definitions of concepts, usefulness of management tools, etc.). Also, remember to back up your arguments on relevant and reliable sources.

 Remember to show all your calculations any time that is required, including the formulas.

Formalities:

 Structure of the report: o Cover Page (on a separate page) o Table of Contents (on a separate page) o Case Study 1 o Case Study 2 o Bibliography (References and Sources) o Appendix o are excluded of the total wordcount.

 Wordcount: 1000-1200 words  Cover Page, Table of Contents, References and Appendix are excluded of the total wordcount.  Font: Arial 11 pts.  Text alignment: Justified.  The in-text References and the Bibliography must be in Harvard’s citation style.

Submission: week 13 – Deadline for submission is Sunday, January 16th at 23:59 CEST. – Via Moodle (Turnitin)

Weight: This task is a 40% of your total grade for this subject.

It assesses the following learning outcomes:  Outcome 1: Understand the production management within operation management.  Outcome 2: Describe operations processes design and their management to contextualize and improve

production performance.

 Outcome 3: Assess lay out design and evaluate facility location.  Outcome 4: Evaluate how to elaborate a master production schedule (MRS) and material requirement

planning (MRP).  Outcome 5: Understand quality control components and measures.  Outcome 6: Understand production in the global setting.

CASE STUDY 1. Production Planning and Control. (350-400 words)

Sagittarius is a very well-known company from the food and beverages sector in Barcelona. They have been in business since 1979. They have hired you as their new Junior Production Manager. One of the first things that you notice in your first week is that, because of a new Maintenance Management Plan, the capacities of the packaging machine need to be updated.

During 2020, the packaging machine worked 2 shifts of 8 hours per day in a working week of 5 days, but it could have worked 3 shifts (of 8 hours each) per day, during the hole week if necessary. The company planned and performed some preventive maintenance 8 hours every month.

During that year, the packaging machine suffered a breakdown, and the maintenance team worked to solve it during two full weeks. Also, during March and September, the maintenance team performed some corrective tasks for 20 hours each month.

a. Define: Design Capacity, Effective Capacity and Actual Capacity. b. Calculate the Design Capacity, the Effective Capacity and the Actual Capacity of the packaging machine,

during 2020 c. Define the Percentage of Efficiency and the Percentage of Utilization d. Calculate the % of Efficiency and the % of Utilization of the packaging machine during 2020 e. How could the company improve the % of Efficiency and the % of Utilization?

CASE STUDY 2. Quality Control. (350-400 words)

Quality, for some years, has been proposed as a necessary condition to maintain the competitiveness of companies, therefore, quality policies are aimed at two fundamental aspects, interrelated:

- Satisfaction of the needs and expectations of the client by the company, supplying the desired quality in products and services, and maintaining the level.

- Satisfaction of the needs and interests of the organization, achieving and maintaining the desired quality in the company at an optimal cost, efficiently using all its resources.

Since a company's resources are limited, production managers must try to optimize their use as much as possible. In the case of quality control, companies normally distinguish 3 categories of costs: Prevention Costs, Appraisal (Evaluation) Costs and Non-conformance Costs.

In this sense, one of the reasons why companies invest in quality is not only for pure image, but also because they achieve the optimization of costs, and with it, competitive advantages in the medium and long term, derived from a good management and the detection and solution, in time, of possible failures.

Therefore, quality costs, but non-quality is more expensive. Considerably more expensive. The misconception that Quality is more expensive comes from not measuring the cost of poor quality, and if it is not measured, it cannot be controlled.

One of the sectors that best understands the costs of non-quality is the textile sector. Because of that, during 2021, a textile company carried out a study on the efficiency and effectiveness of four of its most important processes. Below are the results of the study:

Year 2021

Process Planned

Production Real

Production

Resources Used

Raw Materials (units)

Human Labor (hours)

Equipment and Technology (Euros)

Fabric preparation 7.500.000 7.380.000 1.000.000 4.500 1.000,00 €

Fabric bleaching 7.380.000 7.360.000 744.000 1.360 1.150,00 €

Fabric dyeing 7.360.000 7.200.000 550.000 2.500 3.450,00 €

Fabric printing 7.200.000 7.175.000 392.500 1.500 50.000,00 €

a. Define the 3 types of Quality Costs. If you where the Production Manager of a company, in which of the 3 would you invest the most? Discuss your answer.

b. Considering that the “Cost of Raw Materials” is 0,20 €/unit and the “Cost of Human Labor” is 10,00 €/hour, calculate the Efficiency and Effectiveness of each of the 4 processes. If as a you had to look for ways to increase the Efficiency and Effectiveness of those processes, how would you do it?

CASE STUDY 3. Maintenance & Waste Management. (350-400 words)

Equipment maintenance is a vital element within the Planning and Control phase, as it ensures increasing the levels of effectiveness and efficiency of the processes.

TPM (Total Productive Maintenance) is a holistic approach to equipment maintenance that strives to achieve perfect production with No Breakdowns, No Small Stops or Slow Running, No Defects and No Accidents.

It is based in 8 fundamental pillars and creates a shared responsibility that encourages greater involvement by plant floor workers. In the right environment this can be very effective in improving productivity (increasing up time, reducing cycle times, and eliminating defects).

Electronic component and equipment manufacturing companies are fully aware that much of their success lies in offering high-quality products at low cost. That is why they try to reduce waste to the maximum, as a way to increase their profitability.

One of the methodologies that has given the best results to companies that manufacture electronic components and equipment to reduce waste is Lean Manufacturing.

This method of organizing work focuses on the continuous improvement and optimization of the production system by eliminating waste and activities that do not add any kind of value to the process.

Its fundamental objective is to minimize the losses that occur in any manufacturing process, and to use only those resources that are essential. Thus, eliminating waste improves quality and reduces manufacturing time and costs.

a. Describe 3 of the 8 pillars of the Total Productive Maintenance (TPM). b. Of the 8 wastes established by the Lean Manufacturing methodology, which do you consider to be the 3

most important for a company that produces electronic components and equipment? Why?

Rubrics

Exceptional 90-100

Good 80-89

Fair 70-79

Marginal fail 60-69

Knowledge & Understanding

(30%)

Student demonstrates excellent understanding of key concepts regarding production planning and control, quality control, and maintenance and waste management; using vocabulary in an entirely appropriate manner.

Student demonstrates good understanding of the task and mentions some relevant concepts regarding production planning and control, quality control, and maintenance and waste management and demonstrates use of the relevant vocabulary.

Student understands the task and provides minimum theory regarding production planning and control, quality control, and maintenance and waste management and/or some use of vocabulary.

Student understands the task and attempts to answer the question but does not mention key concepts regarding production planning and control, quality control, and maintenance and waste management or uses minimum amount of relevant vocabulary.

Application (30%)

Student applies fully relevant knowledge from the topics delivered in class.

Student applies mostly relevant knowledge from the topics delivered in class.

Student applies some relevant knowledge from the topics delivered in class. Misunderstanding may be evident.

Student applies little relevant knowledge from the topics delivered in class. Misunderstands are evident.

Critical Thinking (30%)

Student critically assesses in excellent ways, reaching outstanding conclusions, based on an excellent relation of academic concepts.

Student critically assesses in good ways, reaching outstanding conclusions based on a good relation of academic concepts.

Student provides some insights but stays on the surface of the topic. Arguments and conclusions are not based on a proper relation of academic concepts.

Student makes little or noncritical thinking insights. Arguments and conclusions are not based on a proper relation of academic concepts.

Communication (10%)

Student communicates their ideas extremely clearly and concisely, respecting word count, grammar and spellcheck

Student communicates their ideas clearly and concisely, respecting word count, grammar and spellcheck

Student communicates their ideas with some clarity and concision. It may be slightly over or under the wordcount limit. Some misspelling errors may be evident.

Student communicates their ideas in a somewhat unclear and unconcise way. Does not reach or does exceed wordcount excessively and misspelling errors are evident.