ASSIGNMENTS

Subject code: MB0028

(3 credits)

Set 1

Marks 60

SUBJECT NAME : PRODUCTION & OPERATIONS MANAGEMENT

Note: Each Question carries 10 marks

1. Explain the various automated systems for transfer of materials in the production

plant? Illustrate your answer by considering an example of an automobile showroom.

Answer: Basically, automation system comes to reduce labour power and time in the production.

Here we can see the evolution systems with some examples. The goods requited by society were

produces in small quantities by craftsman who would know the need of the community and

produced them by their own hands with simple tools. The apprentices or by another craftsman,

who would make them to meet the requests made.

The parts and components used to make these machines had to be replaced when they wore

making parts so that interchangeability was achieved made setting up standards and

specifications important for meeting

The craftsmen gave way to engineers, workers, superiors and inspectors. Division of labour

became necessary to achieve efficiencies and the jabs that became specialized. Competition has

necessitated improved quality, reduced sates and better services to the customer.

Automation systems cost huge sums of money and therefore a deep analysis of the various

factors has to be done. For services, automation usually means labour saving devices in

education, long distance learning technology helps in supplementing class room instruction. The

facilitating goods that are used are web site and videos.

Automation in the banking sector has resulted in ATMs which same the banks a huge amount

customer satisfaction. Automation is ideas when the service provided or the product

manufactured is highly standardized.

Some extent of automation can be designed even with customization i. e. product or service a

meant to produce or deliver low volume specific to a requirement. The advantages of automation

is it has low variability and will be more consistent on a repetitive basis.

The machines have sensing and control devices that enable them to operate automobile. The

simplest of them called machine attachments replace human effort. They guide, locate, move and

achieve revise position by means of came, optical sensing. Load sensing mechanisms and

activate the controls to remove human intention.

Robots are higher in the order of automation as they perform a variety of tasks. They are

designed to move movements according to programmers written into the computer that inside

them.

With the help of automation, inspection of component can be done 100% ensures highest quality

identification and movement of materials are helped by bar codes which are read and fed into the

system far monitoring quantity, location, movement etc. They help the automated systems to

start information and provide information for effecting any changes necessary. To make effective

use of automated machines, we need to have the movement of materials from and to different

time as stores, automated, Automated storage and Retrieval systems- ASRS- receive orders for

materials from anywhere in the production area, collect materials in the works times. Computers

and information systems are used for placing orders for matters, give commands adjust inventory

records which show the location and quantity of materials needed.

Automated guided vehicle systems- AGVS – are pallet trucks and unit load carriers follow

embedded guide wires or paint strips to destinations as programmed.

In an automobile showroom we can see all the work automatically with latest machine.

2. State the important considerations for locating an automobile plant? Collect

information on layout planning of an automobile plant from various sources and

furnish the same.

Answer: To locate an automobile company or plant many thing should be consider. For an

automobile plant automated flaw lines, automated assembly lines, flexible manufacturing

systems, global transition rapid prototyping. Building manufacturing flexibility things are

necessity.

About the automated flow lines we can say it is a machine which is linked by a transfer system

which moves the parts by using handling machines which are also automated, we have an

automated flow line.

Human intervention ma is needed to verify that the operations ate taking place according to

standards. When these cab be achieved with the help of automation and the processes are

conducted with self regulation, we will have automated flow lines established.

In fixed automation or hard automation, where one component is manufactured using services

operations and machines it is possible to achieve this condition. We assume that product life

cycles are sufficiently stable to interest heavily on the automate flow lines to achieve reduces

cast per unit.

Product layouts ate designed so that the assembly tasks are performed in the sequence they are

designed at each station continuously. The finished item came out at the end of the line.

In automated assembly lines the moving pallets move the materials from station to station and

moving arms pick up parts, place them at specified place and system them by perusing, riveting,

& crewing or even welding. Sensors will keep track of there activities and move the assembles to

the next stage.

The machines are arranged in a sequence to perform operations according to the technical

requirements.

The tools are loaded, movements are effected, speeds controlled automatically without the need

for worker’s involvement.

The flexibility leads to better utilization of the equipments. It reduces the numbers of systems

and rids in reduction of investment as well as a space needed to install them. One of the major

cancers of modern manufacturing systems is to be able to respond to market

Demands which have uncertainties.

Prototyping is a process by which a new product is developed in small number so as to determine

the suitability of the materials, study the various methods of manufactured, type of machinery

required and develop techniques to over come problems that my be encountered when full scale

manufacture is undertaken.

Prototypes do meet the specification of the component that enters a product and performance can

be measured on these.

It helps in con be reforming the design and any shortcomings can be rectified at low cost.

Flexibility has three dimensions in the manufacturing field. They are variety, volume and time.

There demands will have to be satisfied. In that sense they become constraints which restrict the

maximization of productivity. Every business will have to meet the market demands of its

various products in variety volumes of different time.

Flexibility is also needed to be able to develop new products or make improvements in the

products fast enough to cater to shifting marker needs.

Manufacturing systems have flexibility built into them to enable organization meet global

demand. You have understood how the latest trends in manufacturing when implemented help

firms to stay a head in business.

3. Who are the players in a project management? What are the various roles and

responsibilities of the players in a project management?

Answer:

The players:

Individual and Organisations

That are actively involved in the project

Whose interest may be affected positively or negatively by the outcome success or failure

of the project

Exert influence over the project and its result

Players are also called stakeholders of the projects

Project Manager-the individual responsible for managing the project

Customer-the individual or organization who will use the product-the end result of the

project

Performing organization-the enterprise whose employees are most directly involved in

doing the work of the project.

Sponsor-the individual or group within or external to the performing organisation that

funds the project

Roles and Responsibilities

There are number of projects which an organization works on.

4. What are the various steps in project monitoring and controlling a project?

Monitoring and Controlling

Monitoring and Controlling consists of those processes performed to observe project execution

so that potential problems can be identified in a timely manner and corrective action can be

taken, when necessary, to control the execution of the project. The key benefit is that project

performance is observed and measured regularly to identify variances from the project

management plan.

Monitoring and Controlling Process Group Processes

Monitoring and Controlling includes:

Measuring the ongoing project activities (where we are);

Monitoring the project variables (cost, effort, scope, etc.) against the project management

plan and the project performance baseline (where we should be);

Identify corrective actions to address issues and risks properly (How can we get on track

again);

Influencing the factors that could circumvent integrated change control so only approved

changes are implemented

In multi-phase projects, the Monitoring and Controlling process also provides feedback between

project phases, in order to implement corrective or preventive actions to bring the project into

compliance with the project management plan.

Project Maintenance is an ongoing process, and it includes:

Continuing support of end users

Correction of errors

Updates of the software over time

Monitoring and Controlling cycle

In this stage, auditors should pay attention to how effectively and quickly user problems are

resolved.

Over the course of any construction project, the work scope changes. Change is a normal and

expected part of the construction process. Changes can be the result of necessary design

modifications, differing site conditions, material availability, contractor-requested changes, value

engineering and impacts from third parties, to name a few. Beyond executing the change in the

field, the change normally needs to be documented to show what was actually constructed. This

is referred to as Change Management. Hence, the owner usually requires a final record to show

all changes or, more specifically, any change that modifies the tangible portions of the finished

work. The record is made on the contract documents – usually, but not necessarily limited to, the

design drawings. The end product of this effort is what the industry terms as-built drawings, or

more simply, “as built.” The requirement for providing them is a norm in construction contracts.

When changes are introduced to the project, the viability of the project has to be assessed again.

It is important not to lose sight of the initial goals and targets of the projects. When the changes

accumulate, the forecasted result may not justify the proposed investment.

5. Explain the necessity and objectives of SCM?

Answer. SCM is the abbreviation of supply chain Management. It is considered by many express

worldwide as the ultimate solution towards efficient enterprise management.

Now, we explain the necessity and objectives of SCM-

SCM is required by and enterprise as a tow to enhance management effectiveness with a

following organizational objective:

Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP, Accounting. Software and

Documentation like financial reports statements ISO 9000 Documents etc.

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communication systems, documentation

system and secure, Design R&D systems etc.

Better utilization of resources- men, material, equipment and money.

Optimization of money flow cycle within the organization as well as to and from external

agencies.

Enhancement of value of products, operations and services and consequently, enhancements of

profitability.

Enhancement of satisfaction level of customer and clients, supporting institutions, statutory

control agencies, supporting institutions, statutory control agencies, suppliers and vendors,

employees and executives.

Enhancement of flexibility in the organization to help in easy implementation of schemes

involving modernization, expansion and divestment, merges and acquisitions.

Enhancement of coverage and accuracy of management information systems.

With the objectives of SCM its implementation are required. Implementation is in the form of

various functional blocks of an organization interpenetrated through which a smooth flow of the

product development is possible.

A relatively new SCM option involves web based software with a browser interface. Several

electronic marketplaces for buying and selling goods and materials.

6. What are the steps involved in SCM implementation?

Answer- There is many steps which involved in SCM implementation are- Business Process,

sales and marketing. Logistics, costing, demand planning, trade- off analysis, environmental

requirement, process stability, integrated supply, supplier management, product design, suppiers,

customers, material specifications, etc.

Some important aspect of SCM-

The level of competition existing in the market and the impact of competitive forces on the

product development.

Designing and working on a strategic logic for better growth through value invention.

Working out new value curve in the product development along with necessary break point.

Using it to analyses markets and the economies in product design. Tine, customer, quality of

product and the concept of survival of fittest.

Steps of SCM principals:

Group customer by need: Effective SCM groups, customer by tietinct service meeds those

particular segment.

Customize the logistics networks: In designing their logistics network, companies need to focus

on the service requirement and profit potential of the customer segments identified.

Listen to signals of market demand and plan accordingly- sales and operations planners must

monitor the entire supply chain to detect early warning signals of changing customer demand and

needs.

Differentiate the product closer to the customer-companies today no longer can afford to stock

pile inventory to compensate for possible forecasting errors, instead, they need to postpone

product differentiation in the manufacturing. Process closer to actual customer demand.

Strategically manage the source of supply-by working closely with their key suppliers to reduce

the overall casts of owning materials and services; SCM maximizes profit margins both for

themselves, and their supplies.

Develop a supply chain wide technology strategy- as one of the cornerstones of successful SCM

information technology must be able to support multiple levels of decision making.

Adopt channel spanning performance measures- Excellent supply performance measurement

systems do more than just monitor internal functions. They apply performance criteria that

embrace bathe service and financial metrics, including as such as each accounts true profitability.

ASSIGNMENTS

Subject code: MB0028

(3 credits)

Set 2

Marks 60

SUBJECT NAME : PRODUCTION & OPERATIONS MANAGEMENT

Note: Each Question carries 10 marks

1. Explain how material flow information helps in work centre decision. Consider the

example of a shopping centre to illustrate your answer.

Answer: The decision which involves during uses of material flow information has below-

A work center is a production facility comprising of one or more machines and one or more

workmen considered as a single unit for purposes of estimation of capacity. This unit may have a

single operation or a number of them conducted on the input items. In the pipeline of production,

each work center’s contribution is vital as materials are scheduled, routed and loads to be sent to

it.

In most organization, they are even considered as cash centers. Location trust means relative

position of different centers so as to minimize the movement of materials, meet technological

sequences, to reduce congestion, maximize throughput, improve part tracking ability and avoid

repetitive movements. In addition another consideration is to provide for expansion of

production.

Each work center receives information along with material that enter it the material also leaves

the word center with information. The route sheet contains information about the material,

process, quantities, and inspection procedures. Etc. the drawings or instructions tell the condition

of the malarial of entry and the required condition at exit.

In this sense every operation consists of material transformation occurring on the basis of

information. Activities conducted are on the basis of information that flows with material.

Different locations have to accommodate the constraints of the basis of darning maximums

benefit of the information that is available. Basically, each location is determined on the basis of

from and to: where does it receive material goes. Some centers have to close as a matter of

necessity, some need not to be and some need to be as for away as possible.

This aspect has been given a rating scale in terms of alphabets as under:

Absolutely necessary to be close

Essential to be close

Ordinary closeness

Ordinary closeness

Unimportant that they are close or not

Not desirable that the centers are close

It can be seen that this is only a guide for Indian location as the work centers as there will many

competing factors that have to be accommodated.

2. What are the reasons for failure of a project? Give suitable examples.

Answer: Before knowing the reasons of failure we have to know about project.

Project is a set of activities which are networked in order and aimed towards achieving goal of a

project.

Now, the reasons are project failure:

Incidence of Project failure

Projects being initiated of random at all levels

Project objective not in line with business objective

Project management not observed

Project manager with no prior experience in the related project

Non- dedicated team

Lack of complete support from clients

Factors contributing to project success not emphasized:

Project objective in alignment with business objective

Working within the framework of project management methodology

Effective scoping planning, estimation, execution, controls and reviews, project bottlenecks

Communication and managing expectations effectively with clients, team merits and stake

holders

Prior expectance of PM in a similar project

Overview of information and communication Technologies (ICT) project:

Involve information and communication technologies such as the word wide web, e-mail, fiber-

optics satellites

Enable societies to produce, access, adapt and apply information in greater amount, more rapidly

and at reduce casts

Offer enormous opportunities for enhancing business and economic viability

Common problems encountered during projects

No prioritization of project activity from an organizational position

One or more of the stages in the project mishandled

Less qualified non-dedicated manpower

Absence of smooth flow of communication between the involved parties

These basic reasons lead a project to failures. In the project failures business management and

project management is directly involved. From the management point of view it is basic things to

care above topics to success of a project. Project is the core business of a company.

3. Explain the various phases in project management life cycle?

Answer: This is the initial phase of any project. In this phase information is collected from the

customer pertaining to the project and the requirements are analyzed. The entire project has to be

planned and it should be done in a strategic manner. The project manager conducts the analysis

of the problem and submits a detailed report to the top project justification, details on what the

problem is a method of solving the problem, list of the objectives to be achieved, project budget

and the success rate of completing the project. The report must also contain information and the

project feasibility, and the risks involved in the project.

Project management life cycle is the integrated part of management. It is attach with project

responsibility or failure of a project.

The important tasks of this phase are as follows:

Specification Requirements Analysis (SRA): It has to be conducted to determine the essential

requirements of a project in order to achieve the target.

Feasibility study: To analyze whether the project is technically, economically and practically

feasible to be undertaken.

Trade off analysis: To understand and examine the various alternatives which could be

considered.

Estimation: To estimate the project cost, effort requires for the project and functionality of

various process in the project.

System design: Choose a general design that can fusil the requirements.

Project evolution: Evaluate the project in terms of expected profit, cost and risks involved

marketing phase.

A project proposal is prepared by a group of people including the project manager. This proposal

has to contain the strategies adopted to market the product to the customers.

Design phase: This phase involves the study of inputs and outputs of the various project stages.

Execution phase: In this phase the project manager and the teams members work on the project

objectives as per the plan. At every stage during the execution reports are prepared.

Control – Inspecting, Testing and Delivery phase during this phase. The project team works

under the guidance of the project manager. The project manager has to ensure that the team

working under his, implements the project designs accurately, the project manager has to ensure

ways of managing the customer, perform quality control work.

Closure and post completion analysis phase upon satisfactory completion and delivery of the

intended product or service the staff performance has to be evaluated. Document the lessons

from the project. Prepare the reports on project feedback analysis followed by the project

execution report.

The phase which involve in the above are:

The preparation stage involves the preparation and approval of project outline, project plan and

project budget.

The next stage involves selecting and briefing the project team about the proposals followed by

discussions on the roles and responsibility of the project member and the organization.

The project management life cycle:

A Life cycle of a project consists of the following:

Understanding the scope of the project

Establishing objectives of the project

Formulating and planning various activities

Project execution and

Monitor and control the project resources.

4. What are the seven principles of SCM?

Answer: Seven principles of SCM are:

Group customer by needs- Effective SCM groups, customer by distinct service needs, regardless

of industry and then tailors services to this particular segment.

Customize the logistic network- In designing their logistics network; companies need to focus on

the service requirement and profit of the customer segments identified.

Listen to signals of market demand and plan accordingly- Sales and operations planners must

monitor the entire supply chain to detect early warning signals of changing customer demand and

needs. This demand driven approach leads to more consistent forecast and optimal resource

allocation.

Differentiate the product closer to the customer- companies today no longer can afford to stock

pile inventory to compensate for possible forecasting errors. Instead, they need to postpone

product differentiation in the manufacturing process closer to actual consumer demand. This

strategy allows the supply chain to respond quickly and cost effectively to change in customer

needs.

Strategically manage the sources of supply- by working closely with their key suppliers to reduce

the overall costs of owning materials and services; SCM maximizes profit margins both for

themselves and their suppliers.

Develop a supply chain wide technology strategy- as one of the cornerstones of successful SCM

information technology must be able to support multiple levels of decision making. It also should

afford a clear view and ability to measure the flow of products, services and information.

Adopt channel spanning chain performance measures- Excellent supply chain performance

measurement system do more than just monitor internal functions. They apply performance

criteria to every link in the supply chain-criteria that embrace both service and financial metrics.

5. Explain what is meant by bullwhip effect and how it could be prevented?

An unmanaged supply chain is not inherently stable. Demand variability increases as one moves

up the supply chain away from the retail customer, and small changes in consumer demand can

result in large variations in orders placed upstream. Eventually, the network can oscillate in very

large swings as each organization in the supply chain seeks to solve the problem from its own

perspective. This phenomenon is known as the bullwhip effect and has been observed across

most industries, resulting in increased cost and poorer service.

Causes of the Bullwhip Effect

Sources of variability can be demand variability, quality problems, strikes, plant fires, etc.

Variability coupled with time delays in the transmission of information up the supply chain and

time delays in manufacturing and shipping goods down the supply chain create the bullwhip

effect. The following all can contribute to the bullwhip effect:

Overreaction to backlogs

Neglecting to order in an attempt to reduce inventory

No communication up and down the supply chain

No coordination up and down the supply chain

Delay times for information and material flow

Order batching - larger orders result in more variance. Order batching occurs in an effort

to reduce ordering costs, to take advantage of transportation economics such as full truck

load economies, and to benefit from sales incentives. Promotions often result in forward

buying to benefit more from the lower prices.

Shortage gaming: customers order more than they need during a period of short supply,

hoping that the partial shipments they receive will be sufficient.

Demand forecast inaccuracies: everybody in the chain adds a certain percentage to the

demand estimates. The result is no visibility of true customer demand.

Free return policies

Countermeasures to the Bullwhip Effect

While the bullwhip effect is a common problem, many leading companies have been able to

apply countermeasures to overcome it. Here are some of these solutions:

Countermeasures to order batching - High order cost is countered with Electronic Data

Interchange (EDI) and computer aided ordering (CAO). Full truck load economics are

countered with third-party logistics and assorted truckloads. Random or correlated

ordering is countered with regular delivery appointments. More frequent ordering results

in smaller orders and smaller variance. However, when an entity orders more often, it

will not see a reduction in its own demand variance - the reduction is seen by the

upstream entities. Also, when an entity orders more frequently, its required safety stock

may increase or decrease; see the standard loss function in the Inventory Management

section.

Countermeasures to shortage gaming - Proportional rationing schemes are countered

by allocating units based on past sales. Ignorance of supply chain conditions can be

addressed by sharing capacity and supply information. Unrestricted ordering capability

can be addressed by reducing the order size flexibility and implementing capacity

reservations. For example, one can reserve a fixed quantity for a given year and specify

the quantity of each order shortly before it is needed, as long as the sum of the order

quantities equals to the reserved quantity.

Countermeasures to fluctuating prices - High-low pricing can be replaced with every

day low prices (EDLP). Special purchase contracts can be implemented in order to

specify ordering at regular intervals to better synchronize delivery and purchase.

Countermeasures to demand forecast inaccuracies - Lack of demand visibility can be

addressed by providing access to point of sale (POS) data. Single control of

replenishment or Vendor Managed Inventory (VMI) can overcome exaggerated demand

forecasts. Long lead times should be reduced where economically advantageous.

Free return policies are not addressed easily. Often, such policies simply must be

prohibited or limited.

6. What do you understand by Line Balancing? What is the importance of order

picking in material handling? Give suitable examples.

Answer - Production lines have a number of work centers in a particular sequence so that the

material that gets proceed has to move further without encountering any bottlenecks. The

quantities produced the rate of production at each center, the number of operations and the total

production required are factors taken into account.

The purpose of taking place between work centers and minimum inventory gets created. We use

the principles of JIT and lean Manufacturing to achieve these. Linear programming, Dynamic

programming and other mathematical models are used to study these problems.

In order picking important pants are:

Order picking is a process by which items of products for supply is to be made haves to be

retrieved from specific storage location. It is found to take 60% of labour activities in the

warehouse. Since it is critical to the business to meet customer’s demand expeditiously and

accurately, lot of attention is being given to this aspect of operations. In the manufacturing arena,

we desire to move towards small lot sizes and cycle time reductions.

Efficient order picking is necessary for being competitive. In the supply chain Storage, retrieval

and delivery do not add value to the product, but are necessary.

Material Handling:

The purpose is to take the job through the technological steps in which the processing needs to

be done for the transformation that is to be effected on the material that is getting processed. The

major concerns are about the quantities that need to be processed and the time that the different

operations required. In case the product has to enter assembly, along with other parts that are

being manufactured parallel, will all the required parts arrive at that point at the same time. Some

components may be outsourced. To handle different parts, we have material handling equipments

such as cranes lifting forks, trucks etc.

The problem for the manager is the limited supply of these equipments and the need to optimize

utilization of the equipment and see that the manufacturing line has smooth flow. Our concern is

to reduced inventory, minimums movement and timely availability.