SURNAME & INITIALS: Sithole VF
STUDENT NUMBER: 222399368
MODULE NAME: Operations Management 2.2
MODULE CODE: EBMAY2A
DUE DATE: 20 November 2023
Table of content
Title
Pages
Introduction
Organography
3
Aggregate Planning
4-5
MRP
5
Gantt Chart
6
Kanban System
6
Maintenance plan
7
Areas where an operation manager can be used in
operations management
7-8
Delegating Tasks Via Formal Email
8-9
Reference
9-10
UNIVA (PTY) LTD
1. Introduction
Univa (PTY) LTD is a South African entity that manufactures and sells a range of
cooking appliances refrigerators and washing machines. The appliances range
include electric or gas stoves, hobs, extractor fans, microwaves, refrigerator, freezers,
and washing Machines. Univa’s products are designated to be reliable and longlasting. The organisation(“Univa”) is located at Howick Mews, Mahai, Waterfall in
Midrand. The company has 700 local employees in South Africa.
The aim of this report is to generate an operational plan which can be used to
manufacture electric stove in Univa (PTY) Ltd. The electric stove consists of 9 parts
which Grates, burner covers, burners, Induction stoves, control panel, oven, door,
oven racks, and drip pan. The company has 9 machines, and it uses a work cell
process which focuses on a forward-looking schedule.
The below organography shows the position which determines where operations
manager’s fit in an entity referring to Univa (PTY) Ltd.
Organography
CEO
Product Development
Manager
Quality
OM
Manager
Production manager
Supply Chain And
Finance and
Accounting
HR Manager
Logistics manager
Aggregate plan for Electric stoves
Univa (PTY) Ltd uses a level Strategy, and the employment levels and output levels
remain constant while inventory is allowed to build in an earlier period only to be drawn
back in later periods as demand increases. It produces 100 stoves per month. An
aggregate plan is an approach to determine the quantity and timing of production for
the intermediate future usually 3 to 18 months. The company produces 5 stoves per
day. The aggregate schedule ties the organisation’s strategic goals to production plan.
The aggregate plan of Electric stoves in Univa (PTY) Ltd is shown below.
Jobs




Painting
Mechanical
Electronics
Metalworks
Materials




Paint
Steel
Cast iron
Aluminium
The cost of Univa’s of producing electric stoves are as follows
Inventory Carrying cost
: R200 per unit per month
Subcontracting
: R500 per unit
Average pay rate
: R30 (R240 per day)
Labour hour to produce one stove : 2,6 hours per unit
Hiring and Training
: R3000 per unit
Layoffs
: R4000 per unit
The table below shows the units produced at UNIVA from January to May in 2023
Month
Production
days
Reg time
Production
Demand
Jan
Feb
March
April
May
20
17
22
18
21
100
100
115
120
100
90
105
110
100
120
Monthly
inventory
change
+10
-5
+5
10
-20
Ending
inventory
+10
+5
+10
+20
0
Total = 45
Total units of inventory carried over from one month to the next month = 45 stoves
Workforce required to produce 10 stoves per day = 3 workers
Cost
Calculations
Inventory Carrying cost
(45 units * R200 per unit) = R9000
Regular-time labour
(3 workers * R240 * 98 days) = R70560
Other costs
=0
Total cost
= R9000 + R70560 = R79 560
MRP of Univa
Months
Lead time
Paint
4
1
10
Labour hour: 0,5 hours each
3
Payable: R200
Electronics
R600
2
10
Labour hours: 0,75 hours each
5
Machine hours: 0,25 hours each
4
Payable: Raw materials at R220 each
Mechanics
5
3
R880
10
Labour hours: 0,9 hours each
7
Machine hours: 0,5 hours each
5
Payable: R 250
R1000
Gant Chart
A Gant Chart is a planning chart used to schedule resources and allocate time. When
it is used in loading, it shows the loading and idle times of several departments, and
machines. The Gant Chart also show the start and end dates of each job as well as
the department between the jobs.
When the Gantt chart is used in loading, it shows the loading and idle time of several
departments, machines, or facilities. They display the relative workloads in the system
so that operations managers know what to adjust. It has major limitations; it does not
account for production variability such as human errors that need reworking a job.
Consequently, it must also be updated regularly to account for new jobs and revised
time estimates.
Kanban system of Univa
A kanban is a Japanese word for card, which has come to mean signal. A kanban
system moves parts through production via a Pull from a signal. The card itself does
not exist, an empty position on the floor is sufficient indication that the next container
is needed. They use some sort of signal such as a flag which alerts that it is time for
the next container. Usually, each card controls a specific quantity of parts, although
multiple card system is used if the producing work cell produces several components
or if the lot size is different from the move size. The kanban cards provide a direct
control on the amount of work-in-process between cells. If there is an immediate
storage area, a two-card system may be used, one card circulates between user and
storage, the other circulates between the storage and producing area.
Daily Demand = 5 stoves
Production lead time = 3 days
Container size = 45 stoves
Demand during lead time = 10 * 3 = 30
Number of Kanban's needed = (Demand during lead time + safety stock) / Container
size
= (30 + 45) / 45
= 2 containers
Therefore, once the reorder point hit, 2 containers should be released.
Maintenace Plan in Univa
The company uses preventive maintenance, which is a plan that involves routine
inspections, servicing and keeping facilities in good repair to prevent failure. The
company execute variety of tests to detect startup problems prior to shipment. There
are two tactics of maintenance which is implementing or improving preventive
maintenance and increasing repair capabilities or speed. Once the product or
machine, process settle in, a study can be made of the Mean time between failures.
Failures can occur at different rates during the life of a product.
The below text boxes show the maintenance plan implemented in Univa for electric
stoves
.
Employee
Partnering with maintenance personel
Skill training
Reward System
Employee empowerment
Results
Reduced inventory
Improved quality
Improved capacity
Procedures
Continuous improvement
Keep computerized records
Reduced variability
Monitor and adjust
Clean and lubricate
Make minor repairs
Areas where Operations manager can be of use in operations Management
An operations manager plays a pivotal role in different fields within the organisation,
leveraging the principles of operations management to enhance efficiency and
effectiveness
a). Operational planning; It involves monitoring daily production, managing inventory
and ensuring team member performance.
Why?

Effective planning ensures streamlined processes, minimizes bottlenecks, and
optimizes resources allocation.
How?

Create a robust production schedule, anticipate resource needs, and adapt
swiftly to changes.
b). Finance; Cost reduction and profit enhancement.
Why?

Ensures that budgets align with production goals.
How?

Create budgets, monitor expenses, and making informed financial choices.
c). Product design and Development; Operations managers collaborate with product
teams to access customer demand and feasibility.
Why?

Well-designed products lead to customer satisfaction and efficient production.
How?

By evaluating market needs, feasibility study, and coordinating cross-functional
teams.
d). Forecasting; Predict future demand and resource needs
Why?

Accurate forecasts prevent overstocking or shortages.
How?

By analysing historical data, market trends, and collaborating with sales and
marketing teams.
e). Strategy; Aligning operations with overall business goals
Why?

How?
Strategic decisions impact long-term success.

By contributing to strategic planning, assessing risks, and adapting to market
changes.
Delegating Tasks Via Formal Email
From: Vunene Sithole
To: Thabo Maseko
Subject: Task Assignment- Urgent report submission
Dear Team,
I hope this email find you well. We have an urgent due to the end of the week. I’m
assigning this job to Thabo Maseko. Please find the details below.
Task: Compile a Maintenance plan
Deadline: Friday 11AM
Required inputs: material and machines data
Format: Excel spreadsheet
Thabo, kindly confirm receipt of this assignment and provide an estimated completion
time.
Let me know if you need assistance.
Best regards,
Vunene Sithole
Operations Manager
Univa (PTY) Ltd
References
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no. 10(October 2006): 26-31
2. van Veen-Dirks, Paula, " Management Control and the production Environment."
International Journal of production
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Logic.” Production and Inventory Management Journal (1st quarter 2000): 1-5
4. Bard, Jonathan F. “Staff Scheduling in High Volume Service facilities with
Downgrading.” IIE Transactions 36 (2004): 985-997
5. Barba-Gutierrez, Y., B. Adenso-Diaz, and S. M. Gupta. “Lot Sizing in Reverse MRP
for Scheduling Disassembly.” International Journal of Production Economics 111,
no. 2 (February 2008): 741.
6. Kenet, J., and V. Sridharan. “The value of Using Scheduling Information in
Planning Material Requirements.” Decision Sciences 29, no. 2 (Spring 1998): 479498
7. Krupp, James A. G. “Integrating Kanban and MRP to reduce Lead time” Production
and Inventory Management Journal 43, no. 3-4 (3rd quarter 2002): 78-82
8. Chen,
Fangruo.
“Salesforce
Initiative,
Market
Information,
and
Production/Inventory Planning.” Management Science 51, no. 1 (January 2005):
60-75