49989 Operations Engineering – Individual

Assignment

Autumn 2018

Total marks - 30% of total subject marks

Please note that:

 Your report should be less than 5500 words, excluding cover sheet, table of contents,
executive summary, appendices and references (if applicable).
 No text, table or graph should be converted into pictures (e.g. scanning).
 It is required to use the cover sheet (available on subject website at UTS Online) for
your assignment.
 Submission as soft copy only (electronic version).
 The electronic copy of assignment will be used for plagiarism assessment and for
marking.
 Work submitted late without an approved extension is subject to a late penalty of 10
per cent of the total available marks deducted per calendar day that the assessment is
overdue. 

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Please select only one of the following case studies for your
assignment:

CASE A. Tesla Motors

Tesla is an innovative manufacturer that designs, assemble and sells fully electric vehicles,
along with variety products, for an instant, charging stations, battery products and automated
driving system. Tesla has achieved huge success with the launch of its flagship electric luxury
“Sedan Model S” in 2012, due to the increased awareness of environmental issues such as
climate change and ozone layer depletion. Consumers, now, have the tendency to switch from
buying a traditional patrol-powered vehicle to Tesla’s new full electric sedan. Therefore, with
limited competitors in the electric vehicle market, Tesla has obtained a significant amount of
market share in 2012.

CASE B. Samsung

Samsung Group is a South Korean multinational conglomerate which comprises numerous

affiliated businesses, most of them united under the Samsung brand, and is the largest South
Korean business conglomerate. Among five business units of Samsung, the Samsung
Electronics is the outstanding one. In 2007 Samsung Mobile Phones and Telecommunication
Business reported over 40% growth and became the second largest mobile device
manufacturer in the world. “Samsung Galaxy S8” Android smartphones (as part of
the Samsung Galaxy S series) is one of the most successful versions produced by Samsung
Electronics which was in high demand at release. During the pre-order period, a record one
million units were booked in South Korea, and overall sales numbers were 30% higher than
the Galaxy S7.

CASE C. Patties Foods

Patties Foods, is an Australian food manufacturing company that produces meat pies, baked
goods, frozen fruits, and pre-made desserts. It was publicly listed on the Australian Stock
Exchange and became publicly listed in 2006. In 2007 Patties acquired the Chefs Pride and
Creative Gourmet businesses, and introduced gluten free foods to its product roster. Since its
founding, it has grown into one of the largest pie manufacturers supplying the grocery market
in Australia. “Patties Pies” are the original flagship product of Patties Foods. Pies, pasties,
sausage rolls and quiches in three different sizes (standard, party and mini party), there is also
a gluten free range of patties pies. In the early years of the 21st century, Patties were the
second largest selling pie in Victoria and held 15% of the Australian national market.

*** Notice: If you have any other similar case fitted into the aforementioned industries, you
can adopt it for accomplishing this assignment.
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Structure and format of report:

1. Title page

Cover sheet is provided through UTSOnline.

2. Executive summary

Write a short executive summary (approx. 1-2 paragraphs).

This summary presents the key issues and facts of the report in a concise form. It should
include:
 The purpose of the report
 The main findings
 The conclusion and recommendations

3. Introduction

Write a short introduction (approx. 1 page).

The introduction should include the background of the chosen case study and an explanation of
its main operations. This may include e.g.:
 Nature of its operations (manufacturing, non-manufacturing, or combination, etc.),
 Type of customers, market segments, method of sales, after-sales service, etc.,
 Organizational size, locations, single or multi-site operations,
 Type of products and services,
 Method of product/service creation,
 Production, distribution, etc.

Briefly set out an explanation of how you tackled the case and how the report is organized.

4. Design a new product

a) For the organisation you have chosen, 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.
Complete DR checklist by providing answers to the review questions and additional
comments (approx. 1-2 pages).

c) Write a brief summary on the DR outcome (approx. 2-3 paragraphs).

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5. Design the Operations
a) 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).

b) 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) (approx. 1-2 pages).

Determine at least one root cause for each waste example and recommend at least one
improvement action for each of the root causes (all together eight root causes and eight
improvement actions) (approx. 1-2 pages).

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).

6. 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).

Please make sure that you do the calculations only for your selected case.

CASE A:
Demand (D) per week = (500 to 1000 per week)
Lead Time during replenishment (L/T) = a number between 4 and 6 weeks
Standard Deviation of demand during replenishment (SD) = 10%.
Carrying cost (H) per week = a number between $10 and $50
Fixed cost of order (S) = a number between $500 and $1000
Service Level = a number between 80% and 95%
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 CASE B:
Demand (D) per week = (500,000 to 1,000,000 per week)
Lead Time during replenishment (L/T) = a number between 1 and 2 weeks
Standard Deviation of demand during replenishment (SD) = 15%.
Carrying cost (H) per week = a number between $1and $5
Fixed cost of order (S) = a number between $100 and $200
Service Level = a number between 80% and 95%

CASE C:
Demand (D) per week = (50,000 to 100,000 per week)
Lead Time during replenishment (L/T) = a number between 1 and 3 weeks
Standard Deviation of demand during replenishment (SD) = 5%.
Carrying cost (H) per week = a number between $0.50 and $2.00
Fixed cost of order (S) = a number between $5.00 and $10
Service Level = a number between 90% and 95%

c) For one of the production equipment pieces, 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).

7. Improve the Operations

a) For the same equipment for which you have earlier calculated the probability of failure,
calculate the OEE (which should be less than 85%) (approx. 1 pages).

b) Determine at least five actions to improve its OEE (approx. 2-3 paragraphs).

c) 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 (approx. 1-2 pages).

d) Provide a brief interpretation of the obtained results (approx. 2-3 paragraphs).

e) 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).

f) 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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8. Conclusion

Write a short conclusion (approx. 1-2 paragraphs).

This section opens with a brief summary of the report and then draws conclusions from the
data presented. No new material should be introduced in this section.

Marking guide

You can find marking criteria for the assignment follow.

Criteria Weighting (Marks)

1) Presentation 3.5
Table of contents, headings, (1)
Cover sheet, …
Grammar, length (2.5)
2) Executive Summary 1
3) Introduction 1
4) Design a new product 3.5
a) Debono 6 hats (1.5)
b) Design review checklist (1.5)
c) Design review summary (0.5)
5) Design the Operations 8
a) VSM (2)
b) Waste forms (2)
c) Floor plan (2)
d) Kanban (2)
6. Manage the Operations 5
a) Supply chain (2)
b) ROP, safety stock, and EOQ (2)
c) Probability of Failure (1)
7. Improve the Operations 7
a) OEE Calculations (1)
b) Five Actions to improve OEE (1)
c) RTY defects and defective (1)
d) Interpretation of results (0.5)
e) Five Why (1.5)
f) TOC 5 steps (2)
8. Conclusion 1
Total Mark of assignment 30

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