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AOM4801 Assignment 3 Guide 2022
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AOM4801 ASSIGNMENT NO.3 YEAR 2022 SUGGESTED SOLUTIONS (DUE DATE: 05 SEPTEMBER 2022)
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muzavazi47@gmail.com AOM4801 assignment 3 0717513144DISCLAIMER
This document was prepared for AOM4801 module assignment 3 presentation.
It allows students to understand the key concepts in relation to anchor topics
of the module. However, students are advised to supplement with other
authentic sources such as journals & articles.
NB: Students must paraphrase all presented definitions to avoid plagariasm.
Also, calculations must be done by the student in relation to the question(s)
requirements.
0717513144 Page 1
, muzavazi47@gmail.com AOM4801 assignment 3 0717513144
3.1.1 Should the Jagsmart production plant in Rosslyn, Pretoria, be more
concerned about short-term capacity planning or long term-capacity planning?
Motivate your answer. (3)
The strategic planning undertaken by organisation for a daily weekly or
quarterly time frame is referred to as short term capacity planning.
The main goal of capacity planning is to meet the current and future level of
the requirement at a minimal wastage. On the other hand, long term capacity
planning is referred to as the level at which management sets the level of
capacity is a key determinant of the competitiveness of an organisation.
This decision needs to be made within a long-term plan which provides a fit
with the operations strategy of that organisation.
However, Jagsmart production must focus on short-term capacity planning as
it seeks to fulfil weekly demand levels.
With an aim of reducing wastes such as overproduction or underproduction,
short term capacity planning is more essential for the company.
3.1.2 At June 2020 in South Africa, as a result of the Covid-19 crisis, there had
been a 25% decline in the automotive sector. Even before this, the automotive
industry had been in decline due to environmental concerns and a reduced
demand for vehicles because of services such as Uber (Mail and Guardian,
2020). With reference to short-term capacity decisions, how could Jagsmart
respond to these occurrences? (5)
If short-term demand is stable and sufficient capacity is available, then
managing operations to ensure that demand is satisfied is generally easy.
However, when demand fluctuates above and below average capacity firms
can adjust capacity to match changes in demand by changing internal
resources and capabilities, or manage capacity by shifting and stimulating
demand, and then the organisation must implement different decisions that
align production and prevailing demand level.
i. Change of labour capacity and schedules is critical. Jagsmart labour
capacity can usually be managed easily through short-term changes in
workforce levels and schedules.
0717513144 Page 2
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