FACULTY OF BUSINESS AND MANAGEMENT STUDIES

FACULTY OF BUSINESS AND MANAGEMENT STUDIES
UNDERGRADUATE BUSINESS PROGRAMME
ACADEMIC YEAR 2019-2020, 2nd Semester
August – 2020
WRIT3

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Gulf College – Faculty of Business and Management Studies – In academic
Affiliation with CARDIFF SCHOOL OF MANAGEMENT

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Rewrite below part just after the References of your assignment.
WORK DECLARATION
I, , hereby declare that the uploaded Coursework through Turnitin is my own work. I affirm that this
has been researched and completed in accordance with the college rules and regulations on
plagiarism.
I acknowledge the advice given by the module tutors on proper referencing to avoid plagiarism and
the rules on the academic unfair practice.
I acknowledge that I read and understand the plagiarism guide written at the end of this assessment.
Any academic misconduct will be handled according to the rules and regulations of the university.
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General instructions
Coursework must be submitted online through Turnitin before due date. An acknowledgement will
be given to you by your teacher upon presentation of the finance clearance. This is your receipt,
keep it.
The only circumstance in which assignments can be uploaded late via Turnitin is if a Mitigating
Circumstances (MC) form is submitted at the same time. In these circumstances work may be
submitted within five (5) working days. Make sure to secure MC form and submit the same to the
concerned staff.
Write the number of words used, excluding references, at the end of your assignment. Provide the
list of sources you used at the last page of your assignment with proper label ‘References’. You may
include diagrams, figures etc. without word penalty. The number of words will be + or – 10% of the
total words allowed.
A work declaration must be included just after the reference page of your assignment. This ensures
that you prepare your work in good faith. Any form of collusion and/or academic unfair practice will
be dealt with according to the pertinent rules and regulations of the partner university. Please read
carefully the plagiarism guide.
Assessment Details
This Coursework comprises 50% of the total assessments marks. It will develop the following skills:
1. Research skills. Students are able to search for relevant literature and studies to support the
assignment theories and concepts.
2. Critical thinking. Students are able to evaluate the scenario given in the assignment and apply
solutions to the queries posed.
In addition, the assessment will test the following learning outcomes:
Identify relevant costs & appropriate techniques for decision making & use them to
facilitate the solution of a range of realistic management problems
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Assessment Task
Ahmed Ali, the operations manager of Muscat Traders, is not fully convinced that he will be removed from his
post any time soon. After he received a letter from the CEO asking for clarifications on the various major
decisions he made, he felt that everyone is just perplexed by the implementations of the various performance
management tools. He was given by the CEO three days for complete explanation. He hired you as a consultant
on this matter. The following details were made clear by Ahmed Ali:
1. Mansoor, the production head, complained about the immediate implementation of Business
Process Re-engineering (BPR). He explained that the company is not yet ready for BPR. Instead, he
suggested that lean management be applied in all the production processes and procedures.
2. Fathma, the marketing manager, asked for the equal production of the various sizes of bed
sheets that the home decoration department manufactures. According to Ahmed Ali, there is limited
supply of raw materials used in the production. The decision comes after the preparation of the production
budget. He presented to you the following production data.
The home decoration department of the company produces three sizes of bed sheets. The sheet is made
from linen fabric that costs OMR 0.550 per metre. The workers are paid for OMR 0.200 per hour. The
company incurred fixed costs of OMR1,200 in 2019. The production data for 2019 follows:

The supply of linen fabric is limited to 1,000 metres. The budget production (based upon maximum
demand) follows: Twin (200 bed sheets); Queen (220 bed sheets) and King (180 bed sheets).
3. Mahmood, the finance manager, argued that it is wrong decision to reduce the selling price of the
personalised mugs the houseware department manufactures. He said that reducing the price does not
give them advantage over the competitors. However, Ahmed Ali explained that the selling price
reduction gives lower contribution margin but increases the inventory turnover. Relevant to this, he
gave the following production data.
The houseware department manufactures personalised mugs used as token on various corporate events.
There were 2,000 mugs sold for OMR 3.950 each in 2019.
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Prepare a report for Ahmed Ali addressing the following:
1. Concerns on production process and procedures: (600 words)
a. Discuss the specific aims and applications of Business Process Re-engineering.
b. Discuss the specific aims and applications of Lean Management.
c. In terms of small-scale productions, discuss the appropriate performance management measures.
2. Concerns on limited resources: (1000 words)
a. Critically analyse the factors affecting limited resources in production management.
b. Based from the given data, prepare a production budget that will yield maximum profit from the
material available.
c. Based from your production budget, explain the reasons for unequal production of bed sheets.
d. Discuss measures to maximize profit with limited resources.
3. Concerns on production costing: (1000 words)
a. Discuss the application of variable costing and absorption costing in manufacturing industries.
b. Based from the given data, prepare the income statement using the variable and absorption
costing.
c. If Ahmed Ali decides to reduce the selling price of the product to OMR 3, prepare the income
statement using both the costing methods.
d. Discuss whether the decision to reduce the selling price is favourable or unfavourable.
4. Recommendation (400 words)
a. Prepare a summary report identifying the major decisions made by Ahmed Ali. State your stand,
whether the decision is justified or not.
b. Discuss the implications of the CEO’s actions on the performance of Ahmed Ali as production
manager.
References

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GAC5010 – Performance Management
AY: 2019-2020 / 2nd Semester
Marking Scheme