Identify all of the main IOGEs involved in the process, and you should also make appropriate use of the main BPMN symbols in your detailed map.

OS201: Operations & Enterprise Resource Planning

Referral/Deferral Coursework, 2014-15

The coursework for deferred and referred students is comprised of the following exercises, full details of which are attached. Your results letter will specify which of these exercises you are required to submit.

• O&PM Exercise 1 25% of module
A process mapping and 4 Vs exercise, using ‘PowerPoint’ or ‘Word’.

• O&PM Exercise 2 25% of module (both tasks to be completed, each worth 12.5%)
Task A: A capacity management exercise, using ‘PowerPoint’ or ‘Word’.
Task B: An exercise, using ‘Excel’.

• IS/ERP Exercise 50% of module
Task: A written report based on your work on three SAP case studies.

Submission: Via the appropriate submission points on ‘Student central’.

Due Date: By 11:59pm on Friday 21st August, 2015

O&PM Exercise 1

The Task: For the operation listed below use your own initiative to map a core process that would directly contribute to the production and/or delivery of the product(s) offered to customers.

• Manufacturing: The production, and order fulfillment of a non-food product (e.g. an item of furniture or consumer electronics) for onward delivery to a wholesaler or retailer.

Then, choose a sub-section of your process map and develop a lower level (i.e. more detailed) map of that stage.

Also, position your chosen operation on a ‘4 Vs’ diagram and use terms suggested by Slack and others to classify its type and likely layout characteristics. Provide a concise, written rationale (max. 800 words) for this analysis.

Notes Use the drawing facilities in Powerpoint or Word to prepare your process
map(s). Do not use Visio, SmartDraw or any other diagramming software.

You should identify all of the main IOGEs involved in the process, and you should also make appropriate use of the main BPMN symbols in your detailed map.

You are not required to provide an extensive, written description of your process, although you may wish to annotate your diagram(s) in a few places if this will help the reader to understand how the process works.

References All sources should be referenced using the Harvard system.

Weighting O&PM 1 represents one half of the assessment within the O&PM strand of the module. It therefore counts towards 25% of the overall mark for the module.

Criteria You will be assessed primarily on your ability to apply the process mapping
techniques and operations typology analysis covered during the first few
weeks of the module. However, some marks will be reserved for the
plausibility of the flows depicted in the process diagram(s), and for the
quality of presentation.

Guidance The learning materials relating to the first block of teaching sessions (i.e.
up to the first reading week) cover most of the learning required to
undertake this task, although you may find that some background research
could prove useful.

O&PM Exercise 2

Note: Both tasks (A & B) must be completed for this exercise.

Task A: This task is based on the following text:

The ‘London Eye’

The ‘London Eye’ is the world’s largest observation wheel and one of the UK’s most spectacular tourist attractions. Its height is over twice that of the famous Prater Wheel in Vienna, but has three key design differences compared with any such conventional Ferris wheel: firstly, the passenger capsules are fully enclosed and air conditioned; secondly, they are positioned on the outside of the wheel structure and do not hang down; thirdly, the entire structure is supported on an A-frame from one side only, so it can be cantilevered out over the River Thames.

Each of the 32 passenger capsules, fixed on the perimeter of the 135-metre diameter rim, can hold 25 people. The wheel rotates continuously, so, to enter, customers have to step into the capsules, which are moving at 0.26 metres per second, which is a quarter of the normal walking speed. One complete 360-degree rotation takes 30 minutes, at the end of which the doors open and passengers disembark. Boarding and disembarkation are separated on the specially designed platform that is built over the river.

This tourist attraction is operated by the Tussauds Group, and it is their only attraction that uses a ‘timed admissions booking system’ (TABS) for both individual and group bookings. This allocates requests for ‘flights’ on the basis of half-hour time slots. At the time of writing, the London Eye is open every day except Christmas Day. Admission is from 10.00 a.m. to 9.30 p.m. (for the 9.30–10.00 p.m. slot) in the summer, from the beginning of April to mid-September. For the rest of the year, the winter season, admission begins at 10.00 a.m., and the last admissions are for the 5.30–6.00 p.m. slot.

Prices were set initially at £7.45 for adults, £4.95 for children and £5.85 for senior citizens. There is a 10% discount for groups of 10 or more, plus one free flight for every 16 paid admissions. For credit card pre-booking, there is a charge of £0.50 per person, and these tickets must be collected from the adjacent ticketing office, where purchases can be made in person. Prices were set to rise by £0.50 for the period from June to December 2000.

The London Eye forecasts anticipated that 2.2 million passengers would fly the London Eye in 2000, excluding January, which was reserved for final testing and admission of invited guests only. An early press release informed journalists that the London Eye would rotate at an average rate of 6,000 revolutions per year.

The Task: Using the data provided above, develop a detailed analysis of theoretical and
planned capacity, and of anticipated demand for the London Eye in its first
year of operation. Then, stating your assumptions, develop an estimate of
the revenue that might be earned during this period.

Weighting O&PM 2 (Task A) represents one quarter of the assessment within the O&PM strand of the module. It therefore counts towards 12.5% of the overall mark for the module.

Task B:

This task requires the use of some of the materials requirements planning techniques covered in O&PM Lecture 10 (MRP & ERP) and in chapter 14 of the core textbook, Slack et al (2013), “Operations Management”, 7th Ed.

The diagram below shows the component structure for a product (item A), which is comprised of seven different base components and sub-assemblies (items B – H).

Note: The figures in brackets show the number
of parts needed to make 1 item at the next level
up in the product structure (e.g. Every Item E is
comprised of 2 of Item C and 5 of Item H).

Customer demand for the product is seasonal and normally follows a symmetrical growth and decline pattern over a period of six or seven months. This year, demand for the product is expected to be as shown in the table below.

Time Period Weekly Demand
(week nos.) (no. units)
1 – 6 0
7 – 9 100
10 – 12 200
13 – 15 300
16 – 18 400
19 – 22 500
23 – 25 400
26 – 28 300
29 – 31 200
32 – 34 100
35 0

The levels of inventory available to the product assembly process at the start of week 1 (i.e. at the end of week 0), plus other standard data relating to each of the components is contained in the table below.

Stock Batch/Order Order
Item On-Hand Quantity Lead-Time Cost per
Code (no. units) (no. units) (no. weeks) Unit (£)
A 80 320 1 108.00
B 0 500 1 28.00
C 1,200 800 2 1.20
D 3,200 4,000 5 2.00
E 1,040 1,200 2 11.20
F 2,000 1,600 1 1.60
G 0 2,000 2 9.40
H 280 1,280 3 0.80

Additional Notes:

a) Items may be assembled (or ordered) and supplied only in fixed multiples of their standard batch (or order) quantity. For example, Item E may only be assembled and supplied in batches of 1,200 (i.e. 1,200 or 2,400 or 3,600 or …, etc.).

b) You should assume that inventories are received at the start of the week they are due, and that they are therefore available for use (or sale) in that week.

The Task: Use ‘Excel’ to create MRP records for all eight stock-holding items, A – H.
(Part 1) You should create a separate worksheet (all within the same file) for each
item.

The Task: If the supplier of Item D doubled its standard order quantity (from 4,000
(Part 2) units) to 8,000 units what impact would this have on the overall average
value of inventory held during the time period of the exercise (weeks 1 –
35)? Express your answer in value terms and also as a percentage.
Your answer to this part should be entered (along with any workings) into a
further worksheet within the same file as you created for part 1.

Weighting O&PM 2 (Task B) represents one quarter of the assessment within the O&PM strand of the module. It therefore counts towards 12.5% of the overall mark for the module.

IS/ERP Exercise

You should respond to the feedback you received on your first submission of the individual ERP assignment. The assignment brief is included below. Your response will include improving the SAP screen shots, if necessary. Access to the SAP site and material is available via Student Central. Please take care to read the instructions carefully and type the user name and password accurately.

Assignment Brief:

You are acting in a consultancy capacity for a new charity and have been asked to trial and evaluate 3 software applications supplied by SAP AG and to make one recommendation to that Charity, fully justifying your choice.

In order to assist any Charity with the planning and organising required to manage aid campaigns and allocation they will undoubtedly have invested in some technology.

This task requires you to review all 3 SAP applications introduced to you in the Workshops and to explain, in your opinion, which of the 3 you would recommend to your charity and why. So you may focus on a specific area within the charity’s operation and make your recommendation accordingly. You can assume the investment could be to introduce technology for the first time or as part of a system upgrade.

Assignment Deliverable:

1. An evaluation (Up to 1250 words) indicating the benefits and drawbacks of one of the applications that you think would be most useful to your chosen charity. You should start with a brief description (no more than 100 words) of the operations and processes within the Charity where your recommended software will be useful.

The main evaluation should address why and how the package will be useful to the charity. You will need to provide a final paragraph explaining why you have not recommended the other 2 applications at this time.

Weighting: This is the only assignment within the IS/ERP strand of the module. It
therefore counts towards 50% of the overall mark for the module.

Last Completed Projects

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