AIMA Assignments: contact us for answers at assignmentssolution@gmail.com

                                                                          OM09

                                                             Operations Strategy

(For CNM Cases)

                                                                     Assignment - I

  Assignment Code: 2016OM09A1                                                      Last Date of Submission: 30^th April 2016

                                                                                                        Maximum Marks: 100

Attempt all the questions. All the questions are compulsory and carry equal marks.

                                                                          Section-A

1          Why it is important to know the stage of product life cycle in which the equipment is, in          the context of                 maintenance?

2          Why do firms engage themselves in an operations strategy exercise?

3          Explain (a) the relationship between production rate and cycle time and (b) their interpretation in                 synchronous production.  What does it mean for the workstations in a process to be balanced?

4          Describe the principles of the Toyota production system and how it is a departure from           traditional                 production systems.

                                                                          Section-B

The Hydro-Electric Company (HEC) has three sources of power.  A small amount of hydroelectric power is generated by damming wild and scenic rivers; a second source of power comes from burning coal, with emissions that create acid rain and contribute to global warming; the third source of power comes from nuclear fission.  HEC’s coal-fired plants use obsolete pollution-control technology, and an investment of several hundred million dollars would be required to update it.  Environmentalists urge HEC to promote conservation and purchase power from suppliers that use the cleanest fuels and technology.

However, HEC is already suffering from declining sales, which have resulted in billions of dollars invested in idle equipment.  Its large customers are taking advantage of laws hat permit them to buy power from low-cost suppliers.  HEC must cover the fixed costs of idle capacity by raising rates charged to its remaining customers or face defaulting on bonds (bankruptcy).  The increased rates motivate even more customers to seek low-cost suppliers, the start of a death spiral for HEC.  To prevent additional rate increases, HEC implements a cost-cutting program and puts its plans to update pollution controls on hold.

Case Question:

Discuss the ethical, environmental, and political issues and trade-offs associated with HEC’s strategy.