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Chapter 5 Additional 2

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Chapter 5: Operations management

Name:      

Additional school-assessed coursework 2


Outcome 3
Analyse the relationship between business objectives and operations management, and propose
and evaluate strategies to improve the efficiency and effectiveness of business operations.

ASSESSMENT task — case study


Time allowed: 75 minutes
Marks allocated: 40 marks (the marks for each question are indicated at the end of each
question)
Conditions: Closed book (no notes or textbooks may be used when completing this task).
Read the case study and answer all questions in the spaces provided. Use the
marking scheme as a guide to the time you should spend on each question.

True Blue Steel


Steel producer, True Blue Steel, has a manufacturing plant located on the outskirts of
Melbourne. The plant annually produces 40 000 tonnes of steel, in lengths of up to 15 metres.
The steel lengths undergo a final straightening process at the on-site straightening facility.
The materials handling procedures are very complicated. The raw materials required to make
the steel (such as iron ore, molten iron and scrap steel) are delivered to the plant, then the
steel is made. Bundles of steel are moved over to the straightening facility, untied, orientated
and straightened, and then repacked for transport. There is a heavy reliance on forklifts and
manual labour to manoeuvre the steel. Within the confined and busy space there have been
many accidents.
True Blue Steel has had problems with customers complaining about faults in some of the
steel lengths. Currently, inspections are carried out randomly on the lengths before they leave
the manufacturing plant. The operations manager believes that the business would benefit
from introducing total quality management. He would also like to introduce a computer
controlled manufacturing system where materials are predominantly handled by robotics.

1 Define these terms and provide an example for each to demonstrate your understanding.
(a) Lean management
     
(b) Master production schedule
     
(c) Quality control
     

© John Wiley & Sons Australia, Ltd 1


Chapter 5: Operations management

(d) Computer-aided manufacturing


     
(e) Automated production line
     
5 x 2 marks = 10 marks
2 Analyse the relationship between operations management and business objectives.
     
4 marks
3 Compare the operations system of a manufacturing business with that of a business that
provides a service.
     
4 marks
4 Explain the three key elements of the operations management system at True Blue Steel.
     
6 marks
5 List the problems that True Blue Steel is experiencing with its materials handling. Explain how
these problems could be solved.
     
4 marks
6 Outline how total quality management could be used to improve the operations system at True
Blue Steel.
     
4 marks
7 Describe how the operations manager at True Blue Steel could use a technological development
strategy to improve the efficiency and effectiveness of its operations system.
     
4 marks
8 Discuss the costs and benefits of a socially responsible operations system.
     
4 marks

© John Wiley & Sons Australia, Ltd 2

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