MARYLAND INTERNATIONAL COLLEGE

DEPARTMENT OF BUSINESS ADMINISTRATION

SCHOOL OF GRADUATE STUDIES

MBA PROGRAM

COURSE TITLE: OPERATIONS MANAGEMENT

GROUP PROJECT ASSIGNMENT

PREPARED BY GROUP OF SECTION 403 STUDENTES

NAM ID No

1.TIGIST LINGERIH ADAMU………………………………..MBA/HR01/612/15

2.AMARTI DANIEL GELETA………………………………...MBA/HR01/056/15
3.KIDIST TESEMA SAHILU………………………………….AMB/HR01/337/15
3.HILINA TEMECHEW SENBETO…………………………..AMB/HR01/310/15
5.EYERUSALEM MULUALEM……………………………...AMB/HR01/729/15

SUBMITTED TO: DR.MICHAEL H/MARIAM

SUBMISSION DATE: 18/08/2024 G.C

ETHIOPIA, ADDIS ABABA

Part I.
Attempt all the questions

1. Depending upon the focus of layout design there are some basic or classical types of
Layouts.” Explain, in view of the statement, the types of plant layouts.
2. Under what circumstances would you use PERT as opposed to CPM in project management?
3. The firm has to take into consideration both the technology of production and the
social aspects of the work environment.” Comment on the statement.
4. What are the different types of audit, involved in TQM? Discuss them with examples.
5. Write short notes the followings :
(a) Economic Order Quantity (EOQ)
(b) Bill of Materials
(c) Cellular Layout
(d) Operating Characteristic (OC) Curve
(e) Job Enlargement
(f) Flexibility in Manufacturing

Answer For Part One

.
1. Types of Plant Layouts
Plant layouts are vital for the efficiency of production processes. The main types of layouts include:
Process Layout: This layout groups machines or workstations based on the processes they perform. It
is suitable for job shops where a variety of products are produced. For instance, a custom furniture
workshop might use this layout to allow flexibility in handling different designs.
Product Layout: Here, workstations are arranged according to the sequence of operations needed to
manufacture a specific product. This is optimal for mass production. For example, an automobile
assembly line follows a product layout to streamline the assembly process.
Fixed-Position Layout: In this layout, the product remains in one location, and workers bring tools
and materials to the site. This is commonly used in construction projects where large structures are
built, such as bridges or buildings.
Cellular Layout: This layout organizes workstations into small groups (cells) that focus on specific
products or processes. It enhances teamwork and efficiency, suitable for environments where product
variety is moderate, like small-scale electronics manufacturing.
2. Using PERT vs. CPM in Project Management
PERT (Program Evaluation Review Technique) is utilized in projects where time estimates are
uncertain. It is ideal for research and development projects, where activities' durations are
unpredictable, allowing for a flexible approach to project scheduling.
CPM (Critical Path Method) is used in projects with well-defined activities and clear timelines. It is
perfect for construction projects, where precise scheduling is critical to meet deadlines and manage
resource allocation effectively.
3. Technology of Production vs. Social Aspects
The statement highlights the importance of balancing technological advancements with social
considerations in the workplace. As firms adopt new technologies for increased efficiency, they must
also account for the social environment, such as employee welfare, labor rights, and community
impact. Neglecting these can lead to workforce dissatisfaction, high turnover rates, and negative
public perception. For instance, implementing automation in manufacturing requires training workers
and ensuring that job losses are managed ethically.
4. Types of Audits in TQM
Total Quality Management (TQM) involves various audits to ensure quality standards. Key types
include:
Quality Audit: Assesses compliance with quality standards and procedures. For example, a food
processing company may conduct quality audits to ensure food safety regulations are met.
Process Audit: Focusing on the efficiency of manufacturing processes, this audit reviews workflows
and identifies areas for improvement. A textile manufacturer might use process audits to optimize
fabric production efficiency.
Environmental Audit: Evaluates a company’s compliance with environmental standards, helping
firms assess their impact on the environment. For instance, a brewery might perform environmental
audits to monitor waste management practices.
Social Audit: Examines the company’s impact on its stakeholders, including employees and the
community. This is crucial for companies that emphasize corporate social responsibility, ensuring
they adhere to ethical practices.
5. Short Notes
(a) Economic Order Quantity (EOQ)
EOQ is a formula that determines the optimal order size that minimizes total inventory costs,
including ordering and holding costs. It helps businesses balance the costs of ordering materials with
the costs of storing them, leading to more efficient inventory management.
(b) Bill of Materials
A Bill of Materials (BOM) is a comprehensive list of all the materials, components, and parts
required to manufacture a product. It serves as a crucial reference for production planning and
inventory management, ensuring that manufacturers have the necessary inputs for production
processes.
(c) Cellular Layout
Cellular layout organizes workstations into distinct cells, each responsible for producing a particular
product or family of products. This layout enhances efficiency by promoting teamwork and reducing
movement waste, often used in small to medium-sized manufacturing facilities.
(d) Operating Characteristic (OC) Curve
The OC curve is a graphical representation that shows the relationship between the probability of
accepting a lot and the quality level of the lot. It helps manufacturers assess the effectiveness of their
sampling plans and reduce the risk of producing defective goods.
(e) Job Enlargement
Job enlargement involves increasing the variety of tasks that an employee is responsible for, thereby
enhancing job satisfaction and productivity. This approach can reduce monotonous routines, making
work more engaging and improving employee morale.
(f) Flexibility in Manufacturing
Flexibility in manufacturing refers to the ability to adapt production processes to changes in demand
or product types. It is crucial for businesses facing fluctuating market conditions and enables quick
response to customer needs, maintaining competitiveness in dynamic industries.
By understanding these concepts, firms can enhance operational efficiency and adapt to the
complexities of modern production environments.
Part II.

Pick accompany with which you are familiar, either by working for it or by a close family member
working for it or the Company your work in. Write a paper about it with the following sections:

1. Introduction - Give a brief overview of the company including its product or services, location,
history.
2. Product - Describe the product or product mix or service in more detail.

a. What created the opportunity for your product or service?

b. Do you make or buy your product or service? (yes, services can be purchased -
think temporaries, independent truck drivers, etc.) Explain.
c. What issues are involved in the design of your product or service? Environmental issues,
robust design, value analysis, modular, manufacturability, etc.
3. Supply-Chain Management –
a. What is the supply chain strategy for your
company? b. How is vendor selection/purchasing
handled? c. Discuss how the supply chain is managed.
d. Discuss materials management/distribution.
e. Is e-commerce applied in any form? Describe the e-commerce practice in the company. If
the Company is not adopting e-commerce, recommend forms of e-commerce to be applied.
 Answer For Part Two
Company: Ethiopian Coffee Export Company
1. Introduction
Ethiopian Coffee Export Company, based in Addis Ababa, is a leading exporter of premium
Ethiopian coffee. Established in 2010, the company aims to promote Ethiopia’s rich coffee
heritage while ensuring farmers receive fair compensation. Known for its focus on quality and
sustainability, the company sources coffee beans from various regions, including Sidamo,
Yirgacheffe, and Harrar, each showcasing distinct flavor profiles.
2. Product
Ethiopian Coffee Export Company offers a diverse range of coffee products, including:
Single-Origin Coffee: High-quality beans sourced from specific regions, celebrated for their
unique flavors.
Blended Coffee: Custom blends that combine tastes from multiple regions to create unique
experiences.
Organic Coffee: Certifiably produced using sustainable farming practices, appealing to eco-
conscious consumers.
a. Opportunity Creation
The global demand for specialty coffee has surged in recent years, creating opportunities for
Ethiopian coffee producers to capture a share of the international market. As consumers seek
unique flavors and high-quality products, Ethiopian coffee, rich in biodiversity and heritage, is
increasingly recognized.
b. Production Approach
The company primarily buys green coffee beans from local farmers and cooperatives. This
supports local agriculture while allowing the company to focus on quality control and
processing. The coffee is roasted and packaged in-house to maintain freshness.
c. Design Issues
Several design issues are critical to the product offerings:
Environmental Issues: Emphasis on eco-friendly packaging and sustainable farming
techniques to minimize ecological impact.
Robust Design: Packaging is designed to protect the coffee from external factors like moisture
and light.
Value Analysis: Regular evaluation of production processes to ensure cost-efficiency without
sacrificing quality.
Manufacturability: Emphasis on efficient roasting and packaging processes to meet growing
demand.
3. Supply-Chain Management
a. Supply Chain Strategy
The Ethiopian Coffee Export Company employs a localized supply chain strategy, focusing on
direct relationships with farmers and cooperatives. This approach enhances traceability and
ensures the quality of the coffee.
b. Vendor Selection/Purchasing
Vendor selection is focused on quality and ethical sourcing. The company collaborates closely
with local farmers and cooperatives, conducting regular assessments to ensure that they adhere
to sustainability and quality standards.
c. Supply Chain Management
The supply chain is managed through regular communication with farmers and transparent
processes for quality control. The company uses a small team to coordinate the logistics of
coffee sourcing, processing, and shipping.
d. Materials Management/Distribution
Materials management involves tracking coffee supplies from farm to processing. The
company uses a just-in-time inventory system to ensure fresh beans are always available.
Distribution to international markets is facilitated through partnerships with logistics
companies specializing in food exports.
e. E-commerce Applications
Ethiopian Coffee Export Company is beginning to explore e-commerce by setting up an online
store to reach consumers directly. Currently, the company sells through local retailers and
international partners.
Recommendations for E-commerce Expansion:
Online Store Development: Create a user-friendly website to allow direct consumer purchases.
Subscription Services: Offer monthly coffee subscriptions to encourage recurring sales.
Digital Marketing: Utilize social media and online advertising to engage customers and
promote the unique qualities of Ethiopian coffee.
By adopting these e-commerce strategies, the Ethiopian Coffee Export Company can broaden
its market reach and increase sales while further highlighting the quality and heritage of
Ethiopian coffee.