MNO1503 ASSIGNMENT 2 FOR 1ST SEM 2025

SECTION A INSTRUCTION: Answer all the questions by choosing the correct option and placing the answer in the answer box provided – refer to the answer template. SECTION A: Multiple-choice questions (MCQs) 10 x 2 marks each = 20 marks Question 1 [20] 1.1 Material requirement planning (MRP) is a set of techniques that uses bill of materials (BOM) data, inventory data and the master production schedule to calculate requirements for ... A. inventory. B. customers. C. materials. D. suppliers. 1.2 Which one of the following statements is INCORRECT regarding the manufacturing planning and control (MPC) chart? A. The system is driven from the top down. B. Much of the feedback is in a one-way direction. C. The system takes account of what happens and, therefore, is very flexible. D. Many smaller systems are included in forming the complete manufacturing requirements. 1.3 How do strategic and tactical planning levels interact in a manufacturing organisation? A. Tactical planning provides feedback for strategic planning. B. Strategic planning sets the objectives and constraints within which tactical planning operates. C. Tactical planning operates independently of strategic planning. D. Strategic planning is adjusted based on operational planning outcomes. 1.4 Which forecasting method assigns exponentially decreasing weights to past observations? A. the moving average B. exponential smoothing C. regression analysis D. the Delphi method 1.5 … is functionality that enables production to be planned and executed at a rate of per unit of measure, such as hourly. A. Re-engineering planning B. Standardisation manufacturing C. Once-off manufacturing D. Repetitive manufacturing 1.6 What is the term used to describe a phenomenon where the quantity committed to the customer when the customer request is made is not – or will not be – available according to the enterprise resource planning (ERP) system? A. invalid demand B. independent demand C. dependent demand D. original demand 1.7 What does “available to promise”’ (ATP) refer to in master production scheduling? A. the total amount of inventory currently in stock B. the portion of inventory and planned production that is not committed to customer orders C. the total forecasted demand for a product D. the number of defective products in stock 1.8 What is the primary purpose of material requirements planning (MRP) within the master production schedule (MPS)? A. to evaluate individual employee performance metrics in order to determine eligibility for promotions and bonuses B. to ensure that materials are available for production and products are available for delivery C. to conduct a comprehensive analysis of competitor pricing models for strategic marketing and sales planning D. to design creative content and promotional materials for upcoming marketing campaigns based on seasonal trends 1.9 Which method is commonly used in production activity control (PAC) to prioritise and sequence jobs on the shop floor? A. first-in, first-out (FIFO) B. just-in-time (JIT) C. economic order quantity (EOQ) D. net present value (NPV) 1.10 Which one of the following statements is a characteristic of flow manufacturing? A. Work centres are not arranged according to routings and routings are fixed with each work centre requiring the same time to perform the work. B. Work centres do not have machinery and tooling for specific products and produce a limited range of products. C. The transfer of employees between work centres involves some form of mechanical transfer. D. Work centres are arranged according to routings and routings are fixed with each work centre requiring the same time to perform the work. Section A: 10 questions x 2 marks = 20 marks Total for section A = [20 marks] SECTION B This section consists of seven (7) questions which constitute a total of 25 marks. Type or write each answer neatly in the space provided on the answer template. 2.1 Using the following information, calculate the net requirements for a product in a local company such as Shoprite. Show all steps in your calculation: (3) • gross requirements – 200 units • scheduled receipts – 50 units • on-hand inventory – 40 units 2.2 Pick n Pay expects a demand of 500 units of maize meal in week six. Using a material requirements planning (MRP) system, and given that the lead time for maize meal is three weeks and the order quantity is 500 units, in which week should Pick n Pay place the order to meet this demand? (2) 2.3 How can the implementation of quick changeover techniques benefit a pull system in a South African manufacturing company? In your answer, explain the advantages and support your discussion with practical examples from a local business environment. (10) 7 Case Study: ZENZELE Textiles Overview ZENZELE Textiles is a mid-sized South African firm based in KwaZulu-Natal, specialising in the production of locally inspired fabrics and garments for both domestic and international markets. The company has recently encountered several operational challenges, particularly in streamlining its production processes, managing fluctuating demand and improving resource utilisation. To overcome these hurdles, ZENZELE Textiles is planning to adopt a range of integrated manufacturing technologies and process improvement methodologies. Case details ZENZELE Textiles has been facing persistent difficulties in keeping up with production timelines and managing inventory levels effectively. The absence of a coordinated manufacturing planning and control (MPC) system has resulted in repeated delays and stock shortages. In addition, inconsistent customer demand – driven by seasonal trends and shifting fashion preferences – has led to frequent overproduction and missed sales opportunities. To address these challenges, ZENZELE Textiles is considering the implementation of an enterprise resource planning (ERP) system to bring together its core business functions – such as finance, human resources and manufacturing – into one streamlined platform. This integrated approach aims to improve internal communication, data accuracy and decision-making across departments. A key focus area for ZENZELE Textiles is the development of a comprehensive master production schedule (MPS) that will align production plans with actual market demand while maximising efficiency on the factory floor. In support of the MPS, the company plans to introduce material requirements planning (MRP) to ensure that raw materials are procured on time and finished goods are available for delivery without delay. To further enhance operational efficiency, ZENZELE Textiles is re-evaluating its distribution and capacity planning systems. The goal is to optimise the use of available resources and ensure timely delivery to retailers and customers across the country. In line with lean manufacturing principles, the company is exploring pull-based production methods such as Kanban and demand-driven material requirements planning (DDMRP) to reduce waste and respond more effectively to real-time customer orders. Finally, ZENZELE Textiles recognises the need to implement robust production activity control 8 (PAC) systems. These systems will help monitor daily production activities, ensuring that tasks are carried out according to plan and that performance targets are consistently met. 2.4 List three (3) ways in which ZENZELE Textiles can benefit from an integrated MPC system. (3) 2.5 Why is demand forecasting important for ZENZELE Textiles? (2) 2.6 How does “exploding the bill of material” help ZENZELE Textiles in its MRP process? Provide a practical example related to the case study. (3) 2.7 What is a “bottleneck” in the context of the theory of constraints (TOC) at ZENZELE Textiles? (2)