AFRICAN LEADERSHIP INSTITUTE

ASSIGNMENT COVER

TITLE OF PROGRAM: OPERATIONS MANAGEMENT

NAME OF MODULE/ SUBJECT: POST GRADUATE DIPLOMA IN MANAGENT AND

NAME OF STUDENT: TSINDA TAWANDA

CELLPHONE NUMBER: 0873 212 398

ASSIGNMENT TITLE:

QUESTIONS 1 a, b, c, d and e

NAME OF LECTURER: DR ZEBEDIAH CHITANHA

DATES OF LECTURE: 27 AND 28 AUGUST 2022

ASSIGNMENT DUE DATE: 12 SEPTEMBER 2022

Lecturer to complete the following section:

MARK ALLOCATION: ……………………………………….....................................

COMMENTS: ……………………………………………………………………………...........

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LECTURER’S SIGNATURE: …………………..............DATE: ………………...........

Explain how the three key functions making up operations management interlink (20 marks)

The three key functions of operations management which are finance, operations and marketing are
inseparable. According to Wright (2004), the above stated functions are interlinked. In fact, finance is a
branch that deals with managing operations and processes within the organization. Finance, therefore,
plays a chief role in operations management. It is essential to insure that the organisation’s finance has
been utilised properly in order to carry out major functions such as the creation of goods and services so
that the customer’s needs could be satisfied (marketing).

Race (2004), concurs with Wright in that all companies need finance to expand their activities or
operations in order for them to achieve growth. He further asserted that it is the duty of the finance
department to help identify such areas where spending money can bring in excellent returns. It may be
possible that investing in new machinery will help to increase production and satisfy new market
demands. This is a significant role of finance in business, hence finance, operations and marketing are
closely interlinked.

Finance enhances staff strength (Wild, 2002). Despite rapid automation of various processes in business
organisations, there is no way machines can replace humans. Devices also require people to program
them and operate them hence this is why the human workforce is crucial for any firm. However,
employing more people will cause more expenses. Wild (2002), opined that through financial resources,
financial management helps in finding out which positions are most profitable to fill in order to enhance
operations. He also argued that operations, as a function of operations management, is mainly
concerned with planning, organizing, directing and controlling all the activities of an organization. This
helps in converting the raw materials and human efforts into valuable goods and services for satisfying
customer needs. All these activities are however supported by finance. One can argue with certainty
that a lack of proper management of finance will undoubtedly to business failure through bad planning
and missing of opportunities to improve profits.

Wallace (2001), suggested that marketing is also interlinked with operations and finance. Basing on this
view, marketing is therefore a vital activity for any firm. It helps bring in revenue. It is however, a
department that spends a considerable amount of money. In terms of the finance function, when
marketing, one must know necessarily what returns each campaign brings. It therefore follows that any
advertising program that is not earning much must be optimized or stopped temporarily. Finance
managers therefore provide accurate information about returns from marketing campaigns. According
to Kopalle (2001), the purpose of marketing as a function of operations management is to create
alignment and order within an organization’s operations. He added that the marketing operation teams
are often responsible for creating work systems and flows throughout every unit of the business as well
as overseeing deadlines and cooperation.

The marketing department is responsible for researching and developing the marketing plan (Wright,
2015). The plan details the current situation with respect to customers, competition and the external
environment (opportunities and threats) and takes into account the internal strength and weaknesses of
the organization (operations). Wright (2015), further asserted that although marketing plans can have
long term horizons, they should be reviewed regularly and be updated annually in conjunction with
setting of the annual sales and financial budgets. This entails a close relationship between marketing and
finance. More so, marketing plans set objectives including sales budgets, determines marketing actions,
including forecasts of demand and identifies resource requirements for existing and new products and
services. Even the successful implementation and carrying through of the marketing plan requires action
by the operations management function for the physical development, manufacture and delivery of
goods and services.
The link between operation, finance and marketing therefore summarily ensures that customers are
treated well in every way necessary and possible (Wright, 2015). Customers are the ones that make an
organisation thrive and there is feeling for a manager or an employee as a customer getting the utmost
satisfaction. Marketing rightly ensures this together with quality products.
Question 1 (b)

What are the factors that PPC considered in setting up its Ruwa cement manufacturing plant? (20 marks)

Empirical evidence shows that PPC considered a number of factors when setting up its Ruwa cement
manufacturing plant. Chief among them was the availability of markets. PPC did not only assess the
existing market segment and the region, but also the potential growth of newer regions and potential
competitors like Lafarge Cement Zimbabwe and Sino Zimbabwe Cement (Koski, 2020). He further opined
that revenue for any business comes from the market, hence for this very important reason, PPC made a
thorough research in terms of market transparency in order to understand the market demand,
competition, prices and future prospects before venturing into the cement manufacturing business.
Added to this was the growth of the economy by as much as 10% in 2010-2011. There was a
‘dollarisation policy’ which saw the use of eight currencies namely the Euro, the United States Dollar, the
Pound and Sterling, the Indian Rupee, the Chinese Yuan, the Batswana Pula, the Australian Dollar and
the South African Rand. This also marked the phase out of the dysfunctional Zimbabwean Dollar and the
end of hyperinflation (Porras, 2019). According to (Porras, 2019), PPC had two other cement plants in
Zimbabwe, hence the construction of the 0,7 Mt / year plant would manufacture cement for sale in
Zimbabwean towns like Harare, Ruwa, Chitungwiza and Norton and central Mozambique.

In addition to markets, PPC also considered the issue of manpower (Nurre, 2018). Zimbabwe has a large
pool of workers in that specific area since the industry is skill intensive. To supplement this factor,
Zimbabwe offered a variety of technical training institutions like the School of Mines in Bulawayo and
the University of Zimbabwe among others. More so, the host country also experienced essential political
stability (Nurre, 2018). This would foster industrial activity for the corporate. Sources have it on good
authourity that PPC was also offered incentives, a concession and tax holidays. The Government of
Zimbabwe intended to promote a balanced regional development.
According to (Martin, 2019), the materials used in cement production are minerals containing calcium
oxide, silex, alumina and iron oxide. Limestone, being the key input raw material and fuel being
important to sustain the energy intensive cement manufacturing industry, Zimbabwe offered a reliable
availability of limestone from the vicinities of Masasa and this ensured smooth and cost effective
operations of PPC. He added that the location of the Ruwa Plant selected keeping a view in the
availability and price economics of input materials.

Another school of thought opined the availability of community services most importantly housing,
schools, colleges, recreational facilities as well as municipal services from the Harare City Council
(Martin, 2019). Access to the required infrastructure and utilities was guaranteed by surrounding
suburbs like Mabvuku, Ruwa, Tafara and Manresa. (Weir, 2017) also concurred, arguing that PPC
considered the availability of Export Processing Zones nearby, notably Ruwa and Melfort, since the
cement was partly intended for export to central Mozambique.

PPC also considered the issue of ease of acquiring regulatory and statutory clearances by the
Government of Zimbabwe and the ‘Zimbabwe Is Open For Business mantra (NewsDay, August, 2020).
The corporate acquired clearances and permissions for setting up its Ruwa plant. These clearances
included the Environmental clearance for manufacturing plants, the Forest clearance, consent by locals
to establish the cement plant, consolidated approvals for sourcing utilities (from Zesa the Harare
Municipal Authority) and handling effluent. To add on to that, they managed to secure consent and or
no objection certificate from the local pollution control board (EMA).

The cement manufacturing company had a sound capital base which was anchored from its mother unit
in South Africa (PPC South Africa) (NewsDay, August 2020). PPC Zimbabwe therefore started its project
in Ruwa by first putting in a portion of its equity and then the company commenced the process of
parallel arrangement of other types of finances from local finance houses such as CBZ. Added to this
multitude of factors was a vibrant road and rail network from Masasa. The company also had
equipment, processes and a tanker fleet in place to handle the bulk cement deliveries that were vital to
the big project.
Question 1 (c)

Compromise of safety and health environmental quality management has negatively impacted some
businesses. Support your answers with practical examples. (20 marks)

Empirical evidence has shown that some businesses are compromising safety and health environmental
quality management. Workplace safety and health environmental quality management refers to the
limitation of elements that can cause harm, accidents and other negative outcomes in the workplace
(Ulmann, 2015). He added that safety and health environmental quality management represent a
culmination of policies, behaviours and precautions that work to limit hazards, accidents and other kinds
of harm in a work environment. More often than not, workplace safety directly affects the productivity
and well-being of a workforce and this directly impacts the quality of output of the business. It follows
therefore that employers must strive to create a safe environment that offers an acceptable level of risk
for all employees. Ulmann (2015), further asserted that health and safety issues are studied and
analyzed by means of ISO 14121. Environmental issues are also examined with the aid of Failure Mode
and Effect Analysis. Businesses should therefore practice Quantitative Risk Analysis which helps to lessen
the likelihood of undesirable incidents and to minimize the possibility of adverse consequences. Entities
should follow the procedural steps of risk management namely: risk identification, risk analysis, risk
prioritisation, mitigation, planning, measuring and control.

According to The Herald, Zimbabwe (Wednesday 26 November 2020), at least 40 informal gold miners
were trapped underground after a shaft at the disused Ran Mine in Bindura collapsed. The paper further
opined that officials at the aforesaid mine, failed to formulate strategies to develop effective preventive
measures associated with the risk factors. These strategies could have included individual related
factors, job related factors and equipment related factors. In a related case reported by the same paper,
six miners died at the decommissioned Matshetshe Mine in Esigodini the same year during the rain
season.
More so, fire accidents are very serious dangers that can result in loss of live and property in the
workplace (Stranks, 2016). A report by the US Bureau of Statistics stated that nearly 200 workers die
from workplace fires and explosions every year and more than 5000 others sustain minor to major
injuries. He further asserted that compromise on safety and health issues especially pertaining the
reduction of fire accidents, impact negatively on some businesses. He opined that faulty electrical
equipments are the major causes of fire accidents at workplaces. Electrical fires can also be sudden,
widespread in a few minutes, difficult to contain and can be very destructive. The Herald (Zimbabwe) (08
September 2022), reported an ‘Apocalyptic’ fire that destroyed Glen View Area 8 home industry for the
second time in a row. The report added the industrial complex, located along Willowvale Road in
Harare was gutted by fire, destroying property worth thousands of dollars, fortunately, no injuries were
reported. Newly manufactured chairs beds, kitchen cupboards, lounge suits, tables and wardrobes were
among the items destroyed.

Reports by Herald (08 September 2022) indicated that the causes of the inferno at Glen View Industrial
Complex could not be quickly ascertained. Different versions of the events were given, spanning from
suspected electrical fault to cigarette butts that could have been randomly dropped. The influence of an
untidy environment could also not completely be ruled out, since workplaces that are littered with
inflammable material and poorly ventilated can easily experience fire accidents. Other schools of
thought suggested the influence of combustible materials. The industrial complex uses combustible
materials for production and as a business, it should have taken extra safety precautions when handling
them. A compromise on the safety and health issues increased the risk of the fire accident.

Wahab (2017), suggested that most of fatalities in the construction sector are a result of falls from a
height or into excavated areas or the result of people being struck by falling or moving objects. NewsDay
Zimbabwe (02 December 1999), reported a tragic accident that happened during the construction of the
CABS Millennium Tower in Harare which claimed five lives. Reports suggest that the accident might have
been caused by the fault of either the construction company or the workers themselves. It is however
disheartening that the victims of the accident suffered injuries and death.
Question 1 (d)

Discuss any 5 factors that a Zimplats mining manager needs to consider in capacity planning. (20 marks)

Capacity planning is the process of evaluating all available production resources, including machinery,
staffing and work centres to understand if the manufacturer will be able to meet now and in future
(Hamilton, 2006). He further opined that capacity planning involves resource capacity planning, which is
the process of deciding how to optimize the function of existing resources, which resources to add or
which resources to degrade or remove. With capacity planning, business managers are able to tell if
many people are working on one task (meaning the company will be paying out more wages than is
necessary), or if not enough people are working on a task (in which case the task won’t be finished on
time). Whichever way, capacity planning is important in making sure that everybody is working to their
full potential. It however, works in estimates too, not necessarily actuals. Hence capacity planning not
only looks at where the business is right now in terms of work-load that is being faced, but also where
the business is likely to be in future.

Important as it is, a Zimplats mining manager needs to consider various factors in capacity planning.
Chief among them the factors are the number of machines, the size of the employee base needed to
operate the machines, expansion of power sources, mix of products to be made and equipment
utilization as well as overall efficiency (Hunerberg, 2010).

According to a local news reporter, Impala Platinum is to expand processing capacity at Zimplats in order
to support increased output from its US$200 million investment at the Zimbabwe’s largest platinum
mine. Zimplats needs to consider the development of its two platinum mine, Bimha and Mupani which
will add another 180 000 ounces, and this extra output will need extra concentrator capacity. Implats
COO, Gerhard Potgieter said Zimplats smelter has been operating at 6.5 million tonne capacity for a year
from four mines and its three concentrator plants. With the added output from Bimha and Mupani
mines, the company should consider more capacity for processing (NewsDay,2021). Added to that, the
expansion of Zimplats must come also with the need for further beneficiation, hence the company will
have to consider value addition in its capacity planning.

Evidence has pointed out that with the new Mupani mine ramping up, it will be fifth mine, together with
Bimha mine, hence Zimplats will be growing into a significant size of production so much so that the
current project will take it to 6,7 million tonnes. So Zimplats needs to consider a fourth concentrator unit
at the operation in order to concentrate those tonnes. Unfortunately, given all this increase in
production, the smelter at Zimplats is at full capacity meaning to say the company needs to consider
having its concentrators come to Rustenburg operations for them to be treated there. The company
should also consider investing in additional smelter capacity which forms part of the next stage of the
processing chain.

Zimplats has acknowledged, that long term, it is constrained in as far as smelting capacity is concerned
hence it needs a further furnace and the sulphur abatement that goes with it (NewsDay, 2021). Zimplats
also needs to consider the expansion of its energy sources. In this regard, the company plans to build
two solar power plants with generation capacity of 185 MW to power its operations according to the
country’s energy regulator. Zimplats has applied to build a 105 MW plant at Ngezi, South west of Harare
where it has mines and two concentrators and 85 MW at Selous where there is a smelter and
concentrator, hence the company has to consider the aforesaid factors in its capacity planning to cope
with its rising production level.
Question 1 (e)

With the help of a diagram, apply the Critical Path Model to a school block construction project. (20
marks)

The Critical Path Model is a technique that allows one to identify tasks that are necessary for project
completion (Bodea, 2020). The critical path in project management is the longest sequence of activities
that must be finished on time to complete the entire project. This paper will concentrate on the
application of the Critical Path Model to a school block construction. According to Bodea (2020), building
up the project road map helps to visualize what needs to be done to done to reach the intended goal of
constructing the school block. Therefore, the Critical Path Model is a project management technique that
involves mapping out the key tasks or critical tasks necessary to complete the process of constructing
the school block. The tasks include, among others, excavating and pouring footers, pouring concrete in
the foundation, erection of the rough wall and roof, installing sliding, installing plumbing, installing
electricity, installing wallboard, laying floor, doing interior painting, installing interior fixtures, installing
gutters and downpouts and finally doing grading and landscaping. Hence there is need to use a work
breakdown structure list all the project activities or tasks required to produce the deliverables. The list
of the above activities in the work breakdown structure serves as the foundation for the rest of the
Critical Path Model.

Bolam (2019), argued that based on work breakdown structure, on constructing the school block, one
should determine the tasks that are dependent on one another, for example, pouring concrete depends
on excavating and pouring footers, while installing sliding depends on erection of the rough wall and
roof. He added that the next step is to create a network diagram, which is a flow chart displaying the
chronology of the activities. A box is created for each task and arrows are used to depict task
dependencies. The next step is to estimate the task duration of each activity based on educated guesses
from previous experiences or from previous experience data or even based on industry standards. The
Critical Path is therefore calculated and represented as in the diagram below:

TASK AND IMMEDIATE SUCCESSOR INFORMATION FOR THE CONSTRUCTION OF A SCHOOL BLOCK

(0)-----------(1)----------------(3)-------------(4)-------(5)-------------(7)--------(8)

(6)------------(9)-----------------(10)--------------(11)----------(12)

TASK DESCRIPTION IMMEDIATE SUCCESSORS

0 START 1

1 Excavate and pour footers 2

2 Pour concrete foundation 3

3 Erect rough wall and roof 4,5,6

4 Install sliding 11

5 Install plumbing 7

6 Install electrical 7

7 Install wallboard 8,9

8 Lay flooring 10

9 Do interior painting 10

10 Install interior fixtures 13

12 Grading and Landscaping 13

13 FINISH --

When using the Critical Path Model, comparison of expectations with actual progress can be made easier
as well as the facilitation of more effective resource management. Bottlenecks in the project can be
avoided. Plotting out project dependencies using a network diagram gives a better idea of which
activities can and cannot run parallel allowing one to schedule accordingly.

REFERENCES

Manufacturing Plants and Management Style, (August 15, 2021). Retrieved from [Link]
[Link]/manufacturing plants and management style.

Koski, V (2020). The value of perfect and imperfect information in lake monitoring and management

Nurre, S, G (2017). Interactive excel based Grant chart schedule builder .

Poliani, R (2020). Planning and Control in Construction, Critical Path Model.

Porras, F, R, (2019). A critical analysis of advantages brought by blockchain technology to the global
economy. International journal of business.

Wright, O (2010). Oliver Wright 6 th Edition [Link]-tools. Com/retrieved 4 April 2010. Google
scholar.

Wallace, T, F (2020). MRP11: Making it Happen, John Wiley and sons: London, Google Scholar.

Wild, R (2002). Operations Management, Continuum: London, Google Scholar.

Kopalle, P. K (2001). Strategic Management of Expectations. Journal of Marketing Research,Vol 38, No 8