Prduction Management

8/14/2019 Prduction Management

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Production Management: Question Bank

1. Explain production system model as on today & from organization point

of view?

Answer:

Production System Today :

Machine

MenControl

Raw Material

Labor

Availability

MachineAvailability

Money

EconomicClimate

Social

Channel

Capital

INPUT OUT PUT

Product / Service

Trade Union

Material supply

Bank

Competition

Customer

Demand

Government

Production System

Plan

Policy

Mission

Production System in Organization :

Mission is what co. want to

achieve Or Purpose of companies

existence

Amul Taste of India

Glaxo Better India Healthier India

L&T - We will do the things India

will proud of

Vision : Companies

achievement in near future

Mahindra Tractors : We

will be largest tractormanufacturer in the

world by 2009

Plan of Glaxo :

We will be life saving

drug import substitute

Production System : Is a vehicle through which organization achieves its vision /Mission written by the company

As effectiveness of production system can affect vision & mission statement of Co.


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2. Discuss interaction of production with other functions of organization?

Answer:

Interaction with other functions :

PRODUCTION

Marketing

Finance

Accounting

Industrial Engg.

Procurement

PersonnelResearch & Development

Marketing :1. Customer Quality requirement

2. New product & processes3. Customer feedback on products & services

Finance :

1. Budgetary information

2. The analysis of investment3. Provision of money for improvement

4. Provision of information on general condition of firm

Accounts :1. Data including cost of material ,direct labor & Over head items

2. Release of special reports on operation of the production system

,includes scrap, rework ,overtime etc.

3. Providing data to data processing services

Procurement :

1. The determination of items to be purchased

2. The determination of delivery schedule3. The discovery of new product / process / material4. Inventory control

Personal :

1. Retirement of people2. Training of people

3. Labor relations

4. Safety


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R&D : Of New ideas ,products ,processes etc.

Industrial Engineering :1. Method analysis information

2. Work measurement information

3. Plant layout & Material handling information

4. Plant maintenance information

3. Explain Continuous & Intermittent production system?Answer: From Text Book Page No.:226-227

4. What is plant layout & factors to be considered in development of plant

layout?

Answer: Layout is a Fundamental of every organization and enterprise Kitchen, Retailers, offices, service organization and all the enterprises

have a specific layout A Simple situation with few items to arrange have many alternatives

Previously Layouts were based on intuition, experience and judgment

With the complexities and competition now scientific methods are

used

The Layout comes in picture after the location has been finalized

Development of good layout depends on decisions already taken on

location, capacity, facility, manufacturing method and material

handling techniques

Efficiency and performance of machines and production is the focus

area for this

Plant layout begins with plant location and continues through 3 further

levels,1. Layout of department within site

2. Layout of items within the department3. Layout of individual work places

Factors Influencing Layouts

1. Factory Building : The nature & size of building determines the floor

space available for layout . While designing the special requirements i.e.Air conditioning, dust control , Humidity control ,Noise proofing etc must

be kept in mind

2. Nature of product : Product layout is suitable for uniform products

Process layout is suitable for custom made products

3. Production process : In assembly line industries product layout is better

In job order or intermittent manufacturing process layout is desirable

4. Types of machinery : General purpose machines are arranged as per

process layout, Special purpose machines are arranged as per product layout


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5. Repairs & Maintenance : Machines / Equipments must be arranged

keeping in mind the movement of operators & maintenance tools

6. Human Needs: Adequate arrangement should be made for Wash rooms,

drinking water / Canteen & other employee facilities

7. Plant Environment: Heat / Noise / Light / Ventilation & other aspectsshould be duly considered e.g. Pint shop / Fabrication / Plating section should

be located separately to protect employees from harmful fumes etc. Adequatesafety arrangement should be made

To conclude

The plant layout should be conducive to health & safety of employees It should ensure free & efficient flow of employees & materials

Future expansion & diversification may also be considered while

planning factory layout

5. Explain objective of plat layout & compare good & poor layout?

Answer:

Objectives of Plant Layout Economies of materials, facilitation of manufacturing and handling of goods

Proper and efficient use of floor space

Ensure proper flow of goods and processes without any delay Provision for supervision and control

Careful planning to avoid changes and re-layout of a plant Provision of safety to workers

Meet quality and capacity requirement in the most economical manner Provision of adequate medical facilities and refreshment facilities

Have enough of material handling spaces

Features Of A Good Layout Sufficient space for worker and machine to perform their tasks

Must have adequate safety and security to workers against accidents. For eg.

Provision of first aid box, fire ex.,etc

Sufficient gang-way space for raw materials, workers and semi finished goods

Arrangement of machines and equipment in such a way that it minimizes

material handling and costs

Stores for in-process material should be near to processing machines

Supervision, co-ordination and control should be easily and effectively carried

Scope for further adjustments and extensions should be sufficient enough

Symptoms of Poor Layout

A good layout results in Comfort,

Convenience, Safety,

Efficiency, Compactness And

Finally In Profits To The Organization


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A poor layout results in

Congestion,

Wastes,

Frustration,

Inefficiency And

Finally A Lower Profit Or A Loss To An Organization

6. What is material handling? Explain any 10 principles of material

handling?Answer: Materials handling

The loading, moving, and unloading of materials

The hundreds of different ways of handling materials are generally

classified according to the type of equipment used.For example, the International Materials Management Society has classified

equipment as(1) Conveyor

(2) Cranes, elevators, and hoists(3) Positioning, weighing, and control equipment

(4) Industrial vehicles(5) Motor vehicles

(6) Railroad car

(7) Marine carriers

(8) Aircraft

(9) Containers and supports

Principles of Material Handling

1. Orientation Principle

Study the system relationships thoroughly prior to preliminary planning in order toidentify existing methods and problems, physical and economic constraints, and to

establish future requirements and goals2. Planning Principle

Establish a plan to include basic requirements, desirable options, and theconsideration of contingencies for all material handling and storage activities

3. Systems Principle

Integrate those handling and storage activities which are economically viable into acoordinated system of operation including receiving, inspection, storage, production,

assembly, packaging, warehousing, shipping and transportation

4. Unit Load PrincipleHandle product in as large a unit load as practical

5. Space Utilization Principle

Make effective utilization of all cubic space

6. Standardization PrincipleStandardize handling methods and equipment wherever possible ( pallet truck)


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7. Ergonomic PrincipleRecognize human capabilities and limitations by designing material handling

equipment and procedures for effective interaction with the people using the system

(Diesel Forklift drivers)

8. Energy Principle

Include energy consumption of the material handling systems and material handlingprocedures when making comparisons or preparing economic justifications ( Ex :

Diesel fork lift Vs Electrical)

9. Ecology PrincipleMinimize adverse effects on the environment when selecting material handling

equipment and procedures

10. Mechanization PrincipleMechanize the handling process where feasible to increase efficiency and economy in

the handling of materials.

11. Flexibility PrincipleUse methods and equipment which can perform a variety of tasks under a variety of

operating conditions

12. Simplification PrincipleSimplify handling by eliminating, reducing, or combining unnecessary movements

and/or equipment

7. Explain need & nature of location decisions? Discuss various Factorsinfluencing location decisions?

Answer:

Need for Location Decisions

Marketing Strategy

Cost of Doing Business

Growth

Depletion of Resources

Nature of Location Decisions

Strategic Importance Long term commitment / costs

Impact on investments, revenues, and operations

Supply chains

Objectives Profit potential

No single location may be better than others Identify several locations from which to choose

Options Expand existing facilities

Add new facilities Move


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Decide on the criteria

Identify the important factors

Develop location alternatives

Evaluate the alternatives

Make selection

Factors Influencing Location Decisions

Customer response time and local presence Operating costs

Technological, Availability and economies of scale (fixed operational costs):

Semiconductor manufacturing takes place only in 5-6 countriesworldwide

Infrastructure, electricity, phone lines, suppliers

Macroeconomic: Tariffs, exchange rate volatility, economic volatility

Economic communities: NAFTA (North American Free Trade

Agreement), EU (European Union), PACIFIC RIM (The Pacific Rim refers

to the countries and cities located around the edge of the Pacific Ocean),EFTA (European free trade association)

Political stability

Logistics and facility costs

Competition Positive externalities : Nissan in India develops car suppliers which can also

supply Suzuki in India

Toyota City

Shopping Malls

Negative externalities,

Pollution (Ex: factories burn fuel for production. Production will result inprofit but gases produced are harmful to the environment, people etc.)

Location Decision Factors

Regional Factors

Site-related FactorsMultiple PlantStrategies

Community Considerations


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Regional Factors

Location of raw materials

Location of markets

Labor factors

Climate and taxes

Community Considerations

Quality of life

Services Attitudes

Taxes Environmental regulations

Utilities

Developer support

Site Related Factors

Land

Transportation

Environmental

Legal

Multiple Plant Strategies

Product plant strategy Market area plant strategy

Process plant strategy

8. Explain factors to be considered while selecting location for servicefunction & manufacturing function?

Answer:Comparison of Service and Manufacturing Considerations

Manufacturing / Distribution Service / Retail

Cost Focus Revenue focus

Transportation modes / costs Demographics : age,income,etc

Energy availability, costs Population / area

Labor cost / availability / skills Competition

Building / leasing costs Traffic volume / patterns

Customer access/parking


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9. Selection of location by using ROI Method? ( Numerical Example from

class PPT)

Answer: Transportation Model : Decision based on movement costs of raw materials

or finished goods

Factor Rating: Decision based on quantitative and qualitative inputs

Center of Gravity Method: Decision based on minimum distribution costsFactor affecting location,

Physical Factors Qualitative : Measurement in terms of criteria like Adequate /

Good / Significant etc Quantitative: Measurement in terms of some cost Labor /

Material / Housing / Land / Transport

Evaluating Locations (Ex)

A manufacturing co. is in situation to decide a suitable location for new plant. Three

probable locations are short listed namely X102 , Y102 , Z102, Relevant data is as

mentioned in the table given below. Use ROI method to Finalize the location

Proposed Locations

Sr.No Data X 102 Y 102 Z 103

1 Salaries & Wages 25000 25000 25000

2 Water & Power Expenses 25000 35000 30000

3

Raw material & otherexpenses 85000 80000 65000

4 Total Initial Investment 200000 300000 250000

5 Distribution Expenses 55000 45000 65000

6 Miscellaneous Expenses 45000 25000 35000

7

Expected Sales(Rs)per

anum 225000 250000 225000

Solution:

Proposed Locations

Data X 102 Y 102 Z 103

Sales Revenue 225000 250000 225000

Total Expenses 235000 210000 220000

Profit -10000 40000 5000Initial Investment 200000 300000 250000

% Return on investment

(ROI)

ROI = Profit / InitialInvestment -5 13 2

Conclusion: Based on ROI criteria location Y 102 is the best.


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10. What is inventory management? Discuss types of inventories?

Answer:

Inventory Definition: It consist of material Raw / in process / Finished goods,

Goods purchased for resale Also tangible assets which can be seen, measured &

counted

Types of Inventory Management Systems:

Production Inventories ---Raw material / parts & components whichenters the company product in production process

1. Special items as per company specifications2. Off The Shelf industrial items

MRO Inventories --- Maintenance Repair & Operating Supplies whichget Consumed during production

In- process inventories ---- Semi finished products

Finished goods inventories --- Complete products ready for shipment

11. What is inventory control? Explain any two selective inventory control

methods?

Answer: Text Book No. 285 and 290

12. What is MRP in production management? Explain in detail.

Answer: Text Book No. 282 and 283

13. Discuss important types of plant maintenance & scope of maintenancefunction?

Answer: Function Of The Manufacturing Management Concerned With The Day- To-

Day Problem Of Keeping The Physical Plant In Good Health An Essential Activity In Every Manufacturing Establishment

Needed To Ensure Availability Of The Machines, Buildings &

Services

Needed By Other Parts Of The Organization For The Performance Of

their Functions At An Optimum Return On The Investment, Whether

This Is In Machines, Materials Or Employees

Types Of Maintenance Break Down Or Corrective

Preventive

Predictive

Routine

PlannedBREAK DOWN MAINTENANCE

Maintenance Done After A Breakdown Occurs A Passive Role Aimed At

Getting The Equipment Back Into Operation As Soon AsPossible

Control Cost Of Repairs Control Cost In Replacement Of Spare Machines


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PREVENTIVE MAINTENANCE Undertaken Before The Need Arises & Aims To Minimize The

Un-anticipated Or Major Break Downs

Proper Identification Of Equipment

Adequate Record Of Work, Costs Etc

Inspection Schedule

Inspection Check Lists Well Qualified Inspectors

Use Of Repair Budgets For Major Equipment Administration Procedures For Follow Up Program

PREDICTIVE MAINTENANCE

Maintenance Based On The Condition Of Equipment Sensitive Instruments Used For Predicting Trouble

Extension Of Service Life Without Fear Of Failure

ROUTINE MAINTENANCE Periodic Inspection, Cleaning , Lubrication & Repair Of

Production Equipment Can Be On-line Or Off-line

PLANNED MAINTENANCE INSPECTION OF ALL PLANT & MACHINERY ACCORDING

TO PRE-DETERMINED SCHEDULE

TO SERVICE , OVERHAUL, LUBRICATE OR REPAIR

BEFORE ACTUAL BREAKDOWN OR

DETERIORATION OCCURS AIMS TO REDUCE MACHINE STOPPAGE DUE TO

SUDDEN BREAK DOWN REDUCES MACHINE BREAK DOWN TIME , COST OF

MAINTENANCE AND INCREASES PRODUCTIVITY

SCOPE

Primary Function Maintenance Of Existing Plant & Machinery, Buildings &

Ground

Equipment Inspection & Lubrication

Utilities Generation & Distribution

Alteration To Existing Equipment & Buildings

New Installation Of Equipment And Building

Secondary Function Store Keeping- Stock Of Spare Parts

Plant Protection Including Fire Safety Waste Disposal

Salvage

Insurance Administration

Pollution & Noise Control


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14. What is TPM & explain specific actions of TPM?

Answer:

TOTAL PRODUCTIVE MAINTENANCE (TPM) Originally Developed In Japan

An Approach Bringing Total Quality Management Concepts To The

Practice Of Preventive Maintenance

Involves The Concept Of Reducing Variability Through EmployeeInvolvement And Excellent Maintenance Records

Method Designed To Eliminate The Loses

Caused By Break-down Of Machines And Equipments By Identifying And Attacking All Causes Of Equipment

Break-downs And System Down Time

SPECIFIC ACTIONS OF TPM Restoring Equipment To A Like-new Condition

Having Operators Involved In The Maintenance

Improving Maintenance Efficiency And Effectiveness

Training The Labor Force To Improve Their Job Skills Minimize Maintenance Efforts

Effective Use Of Preventive And Predictive Maintenance

Technology

MAINTENANCE

MODIFICATION

RETROFIT

REDSIGN

CHANGE ORDER

CONDITION,

SELF

SCHEDULED,

MACHINE

CONTROL

LIMITS

CONDITION,

MONITOR,

STATISTICAL,

PREDICTIVE,

TREND,

ANALYSIS

SCHEDULED,

PERIODIC,

FIXED

INTERVAL,

SPECIFIC

TIME

UNSCHEDULED,

BREAKDOWN,

EMERGENCY,

REPAIR,

REMEDIAL

IMPROVEMENT

MAINTENANCEPREVENTIVE

MAINTENANCE

CORRECTIVE

MAINTENANCE

STRUCTURE OF

TOTAL Productive MAINTENANCE (TPM)


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15. What are the types of production variation? Explain different sources of

variation?

Answer: Types of production Part / Piece Variation

Within Piece Variation

Piece to Piece Variation

Time to time Variation

Sources of Variation ---1st--Equipment

Sources of Variation----2nd---- Material

Sources of Variation----3rd-----Environment


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Sources of Variation----4th------ Operator

Sources of Variation- continue

16. What is principle of control chart? Explain use of control chart?

Answer:

Control Charts


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Control Chart METHOD

Short Notes:

17 .Network analysis

18. Break even analysis19. Fault Tree analysis

20. Reliability


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21. JIT

Answer: JIT is an inventory strategy implemented to improve the return on

investment of a business by reducing in-process inventory and its

associated carrying costs.

In order to achieve JIT the process must have signals of what is going on

elsewhere within the process This means that the process is often driven by a series of signals, which

can be Kanban), that tell production processes when to make the next part.Kanban are usually 'tickets' but can be simple visual signals, such as the

presence or absence of a part on a shelf When implemented correctly, JIT can lead to dramatic improvements in a

manufacturing organization's return on investment, quality, and efficiency. Quick communication of the consumption of old stock which triggers new

stock to be ordered is key to JIT and inventory reduction.

This saves warehouse space and costs

However since stock levels are determined by historical demand, any

sudden demand rises above the historical average demand, the firm will

deplete inventory faster than usual and cause customer service issues In recent years manufacturers have touted a trailing 13 week average as a

better predictor for JIT planning than most forecasters could provide

Transaction cost approach JIT reduces inventory in a firm. However, unless it is used throughout the

supply chain, it can be hypothesized that firms are simply outsourcing their

input inventory to suppliers

This effect was investigated by Newman (1993), who found, on average,suppliers in Japan charged JIT customers a 5% price premium

Environmental concerns

During the birth of JIT, multiple daily deliveries were often made by bicycle with increases in scale has come the adoption of vans and lorries

(trucks) for these deliveries

Three JIT wastes: Time: wasted in traffic jams

Inventory: specifically pipeline (in transport) inventory and

Scrap: with respect to petrol or diesel burned while not physically moving

Benefits1. Set up times are significantly reduced in the factory: This allows the reduction

or elimination of the inventory held to cover the "changeover" time, the toolused here is SMED (Single Minute Exchange of Die). The phrase "single

minute" does not mean that all changeovers and startups should take only one

minute, but that they should take less than 10 minutes

2. The flows of goods from warehouse to shelves are improved.

3. Better consistency of scheduling and consistency of employee work hours4. Increased emphasis on supplier relationships

5. Supplies continue around the clock keeping workers productive and businessesfocused on turnover


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22. Robotics:Answer: ROBOTS are Human like machines that perform production tasks

1. Robots can be programmed to perform a set of moves

2. Program storage & control is in micro computer with set of

predetermined operation

3. Robots replace human beings for Dangerous / hazardous (lifting

hot components, continuous welding etc ),Heavy , Dirty,Unpleasant or monotonous tasks

Robotics: It is the science of selecting robots for various applications &knowing when not uses them is ROBOTICS

Advantages:

1. Consistency in performance2. No mental or Physical fatigue

3. Production of better quality products

Disadvantages:

1. High initial investment

2. No value addition due to experience

3. High maintenance cost

23. Computer integrated manufacturing

Answer:

Future of Manufacturing Stress on high product6 quality

Flexible manufacturing system Fast execution & customer order delivery

CAD / CAM will be basis for product design & production planning

Digital computer will be driving force (known as CIMComputer IntegratedManufacturing). Digital computer will provide shared data base for four primary

manufacturing functions

1. Engineering design

2. Manufacturing Engineering

3. Factory production

4. Information management

The database stores all products & process related information required to produce

a component or a product

It also contains information about machines, tools, materials, manufacturing steps,

quantity required & vendor /supplier database

Prduction Management

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