assignment_mb0044-production & operations management-ans

7/28/2019 Assignment_MB0044-Production & Operations Management-Ans

1/20

Summer 2011- May drive

Master of Business Administration - MBA Semester II

MB0044 Production & Operations Management - 4 Credits

(Book ID: B1133)

Assignment

Set- 1 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

1. Explain Quality Circles and its importance? Explain how CAD and CIM aid in

reducing the concept to market time.

Answer: Quality circle:-A quality circle is a group composed ofworkers , usually under the leadership of

their supervisor (but they can elect a team leader), who are trained to identify,analyze and solve work-related problems and present their solutionsto management in order to improve the performance of the organization, andmotivate and enrich the work of employees. When matured, true quality circlesbecome self-managing, having gained the confidence of management.Kaoru Ishikawa is generally considered to have promoted the concept of QualityCircles. It is well known that he is the originator of fishbone diagrams to identifythe root cause of any problem. The causes for the existence of a problem areclassified as pertaining to the material, processes or method or any factor thatgoes into production. The matter is further investigated and pursued till theexact cause is determined. Quality circles use these principles in solvingproblems. The teams select projects selected on the above basis and implementactions to achieve improvement in the processes with a view to improve quality.Since these activities are carried out without affecting the regular day to daywork and involve little involvement of the managers, team work gets reinforcedand results in continuous improvement in methods and quality. The capitaldeployed is minimal, if at all and therefore productivity is enhanced.Quality circles are very efficient in incorporating low cost and nonintrusivemethods of improving productivity and quality throughout the organisation. They

seek to involve all persons who are actually involved in the production systemand the information they elicit and bring about improvements highly costeffective. They unveil creativity and encourage team work and bring aboutimprovements almost on a day to day basis. They do not bring about dramaticchanges, but continuous incremental changes in a harmonious way. They alsotend to encourage identification of possible failures and seek methods ofpreventing things going wrong.Designers of products are increasingly depending on Computer Aided Design.

The software aids in creating or modifying an existing design. The images can bemanoeuvred on the screen. Images of different components can be seen asassembled Sections taken and relative positions can be checked to greataccuracies. Views can be made seen from different angles and positions, so that

the visualization process of the designed component/product helps the designerto suggest alternatives to the customer and the production department. The
http://en.wikipedia.org/wiki/Workerhttp://en.wikipedia.org/wiki/Managementhttp://en.wikipedia.org/wiki/Workerhttp://en.wikipedia.org/wiki/Management


2/20


drawings can be sent via intranet or internet to the concerned persons and theiropinions taken. Corrections and incorporations can be made very quickly. Thedatabase can be prepared, updated continuously and their access to executive.

The efficiency of designers increases by nearly 5 times The software cangenerate the volume, weights of components as also other engineering

parameters like centre of gravity, deflections under estimated loads, and variousother design parameters on complicate forms either single components orassemblies Laborious mechanical drawings need not be drawn. Nor complicatedcalculations done. This aids in reducing the time required making a design ormodifying a product and thus concept market period gets drastically cut.Integration occurs when a broad range of manufacturing and supportingactivities are linked.Activities include engineering design, production planning, shop control, orderprocessing, material control, distribution etc. Information flow across allfunctions takes place with the help of computers. Transmission, processing,distribution and feedback happen almost in real time so that intended activities

are conducted rapidly. This process helps in rapid production and also reducesindirect costs. As response times decrease, customer satisfaction increasesresulting in better business. CIM helps in avoiding accumulation of materialsresulting in better throughput and better utilization of space. Bar coded labelsthat accompany materials contain instructions for processing them which areread by sensing devices and display the status on monitors. This information isavailable to all concerned personnel responsible in planning, marketing etc. sothat they will be aware of the status of any order and if expediting is needed tomeet deadlines, and they will be able to seek intervention. Identifying shortages,ensuring faster deliveries becomes easy with CIM.

2. What is Differentiation Strategies? Briefly explaintools used for

implementation of Operations.

Answer: Differentiation Strategies:-Differentiation is a process by which a company distinguishes itself from itscompetitors and their offerings. The process includes adding a set ofdifferentiators which are meaningful and adds value for the customer. Thedifferences should be perceived by the customer as important, distinctive,superior and affordable. Nonetheless, they have to make the companysofferings i.e. the products and services profitable. To derive competitiveadvantage the study of the processes to adapt innovations which should be ofsuch nature as being pre-emptive is important. Here, we are not considering thesituation of an entirely new product but those which are already contributing tothe company revenues and the threat of competitors has to be met. According toMiland Lele (Miland M.Lele, Creating Strategic Leverage: New York, John Wiley1992) companies have different potential in terms of manoeuvrability along withtarget market, place (channels), promotion and price. These are affected by thecompanys position in the market, the industry structure. BCG has classified(Philip Kotler) four types of industries and the approaches available, depending

on the cell the particular industry fits into.


3/20


Tools for implementation of Operations:-All functions in the organisation including administration, finance, materials,purchase, marketing, production, logistics, communication and others, can beconsidered operations. The reason is all of them use some inputs like materialsor information either on a person to person basis or through a flow line. They are

required to use some process and convert them into outputs usable in the nextstage of the value chain. For example, when an invoice is received for payment,it contains information about a material or a service, the person who needed it,the price to be paid, the supplier, transportation, insurance, quantity, tax to bepaid, etc. The bills payable section will have to verify data regarding the above,seek inspection reports from the quality control department/user department tocertify the bill for payment. Before actual payment is made verification of theterms of payment, availability of funds etc are done You will notice thatinformation is sought or given, materials received and transferred,papers/instructions are received / issued for initiating activities. All these are alsooperations. However, for our study we will limit our focus to operations involving

manufacture. We identify a set of specialized techniques call them tools whichcan be standardized for ease of implementation and control.Implementation of Operations Implementation is the process of executing theplanned operations. Estimating, routing and loading are the planning processesand dispatching and progressing are processes which are conducted while themanufacturing is going on. We call the former planning and the latter controllingfunction. Put together they are considered implementation. Estimating gives thequantities to be made at each workstation depending on the sales forecast,provision for buffer stock, quantities bought out, or services outsourced, likelyshortfalls etc. It is done on the basis of capacity. The next step, routing,determines the sequence of operations and the machines that do them so thatwork flow as determined by the processes is smooth resulting in minimum

inventory. Scheduling is mainly concerned with allocating time slots for differentjobs. It specifies as to when jobs start and end at particular workstations. Thepurpose is to prevent imbalances among work centers and utilize labour hours insuch a way that established lead times are maintained. Dispatching is concernedwith actually moving the materials with tools, jigs and fixtures to specificmachines along with drawings and ensuring inspections at specific nodes, so thatthe materials move in the supply chain, Expediting is mainly to ensure that allthe above are being done properly. Reports are generated and any bottleneckthat gets created is removed.

Tools for implementation GANTT charts are used to record progress comparingthe actual against the planned activities and keep track of the flow of thematerial. Line balancing and line of balance are two more tools to ensure thatmachining centers are loaded as uniformly as possible to prevent build up stocksat intermediate stages. Simulation models are used to predict utilization ofmachines and production levels. Various inventory models help us to determinewhen to order and how many to order and also give us an insight to the risks andopportunities that come up for our consideration. Proper maintenance andanalysis of records help us to see the gaps that have crept into the operationssystem. Learning that happens across functions will make the tools used morerealistically and increase efficiency. Much ERP software, especially SAP havemany modulesthat store, sort and analyze data and make them available to the staff across theglobe in many plants enabling managers to streamline their operations. Software

specific to functions, applications or organization can be obtained. MicrosoftOperations Manager 2005 is a useful tool in this regard.


4/20


3. Differentiate between Automated flow line and Automated assembly line with

example. Write a note on Rapid Prototyping.

Answer:-

When several automated machines are linked by a transfer system which moves the parts by using

handling machines which are also automated, we have an automated flow line. After completing an

operation on a machine, the semi finished parts are moved to the next machine in the sequence

determined by the process requirements a flow line is established. The parts at various stages

from raw material to ready for fitment or assembly are processed continuously to attain the

required shapes or acquire special properties to enable them to perform desired functions. The

materials need to be moved, held, rotated, lifted, positioned etc. for completing different

operations.

Sometimes, a few of the operations can be done on a single machine with a number of

attachments. They are moved further to other machines for performing further operations. Human

intervention may be needed to verify that the operations are taking place according to standards.

When these can be achieved with the help of automation and the processes are conducted with

self regulation, we will have automated flow lines established.

One important consideration is to balance times that different machines take to complete the

operations assigned to them. It is necessary to design the machines in such a way that the

operation times are the same throughout the sequence in the flow of the martial. In fixed

automation or hard automation, where one component is manufactured using several operations

and machines it is possible to achieve this condition or very nearly. We assume that product life

cycles are sufficiently stable to invest heavily on the automated flow lines to achieve reduced cost

per unit. The global trends are favouring flexibility in the manufacturing systems. The costs

involved in changing the set up of automated flow lines are high. So, automated flow lines are

considered only when the product is required to be made in high volumes over a relatively long

period. Designers now incorporate flexibility in the machines which will take care of small changes

in dimensions by making adjustments or minor changes in the existing machine or layout. The

change in movements needed can be achieved by programming the machines. Provisions for extra

pallets or tool holders or conveyors are made in the original design to accommodate anticipated

changes. The logic to be followed is to find out whether the reduction in cost per piece justifies the

costs of designing, manufacturing and setting up automated flow lines. Group Technology, Cellular

Manufacturing along with conventional Product and Process Layouts are still resorted to as they

allow flexibility for the production system.

With methodologies of JIT and Lean Manufacturing finding importance and relevance in the

competitive field of manufacturing, many companies have found that well designed flow lines suit

their purpose well. Flow lines compel engineers to put in place equipments that balance theirproduction rates. It is not possible to think of inventories (Work

In Process) in a flow line. Bottlenecks cannot be permitted. By necessity, every bottleneck gets

focused upon and solutions found to ease them. Production managers see every bottleneck as an

opportunity to hasten the flow and reduce inventories. However, it is important to note that setting

up automated flow lines will not be suitable for many industries

Automated Assembly Lines: All equipments needed to make a finished product are laid out in such

a way as to follow the sequence in which the parts or subassemblies are put together and fitted.

Usually, a frame, body, base will be the starting point of an assembly. The frame itself consists of

a construction made up of several components and would have been assembled or fabricated in

a separate bay or plant and brought to the assembly line. All parts or subassemblies are fitted to

enable the product to be in readiness to perform the function it was designed to. This process is

called assembly.


5/20


The material goes from station 1 to 5 sequentially. Operation 2 takes longer time, say twice as

long. To see that the flow is kept at the same pace we provide two locations 2a and 2b so that

operations 3, 4 and 5 need not wait. At 5, we may provide more personnel to complete operations.

The time taken at any of the locations should be the same. Otherwise the flow is interrupted. In

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

moving arms pick up parts, place them at specified places and fasten them by pressing, riveting,

screwing or even welding. Sensors will keep track of these activities and move the assemblies to

the next stage. An operator will oversee that the assemblies are happening and there are no

stoppages. The main consideration for using automated assembly lines is that the volumes justify

the huge expenses involved in setting up the system.

Rapid Prototyping: Prototyping is a process by which a new product is developed in small numbers

so as to determine the suitability of the materials, study the various methods of manufacture, type

of machinery required and to develop techniques to overcome problems that may be encountered

when full scale manufacture is undertaken. Prototypes do meet the specifications of the

components that enter a product and performance can be measured on those. It helps in

confirming the design and any shortcomings can be rectified at low cost. If serious defects or

problems arise during the manufacture, a thorough change in design or even its replacement maybe considered. To arrive at decisions to make use of the advantages stated above, it is important

that the prototypes are made within the shortest possible time. Rapid prototyping facilitates this.

It uses virtual designs from Computer Aided Design CAD or animation modelling which

transforms dimensional data to 3dimensional views. The physical space of the product is amenable

to have cross sections made.

Cross sections taken at very close positions gives thin layers which enable the generation of a solid

model of the designed product. The data that is thus created helps build a solid model exactly as

per the drawings. Any shape can be generated in this method. Advanced technologies like SLS

(Selective Laser Sintering), FDM (Fused Deposition Modeling), LOM (Laminated Object

Manufacture), EBM (Electronic Beam Melting) are some of Rapid Prototype Modeling Processes.

Since the basis data about the product is already available in CAD, the above processes can

produce models in a matter of a few days. Conventional machines like lathes, milling machines,grinding machines, EDM (Electro Discharge Machining) also help in the production of prototypes.

Because of their advantages Rapid Prototyping is being increasingly used.

4. Explain the different factors influencing plant location.Write a brief note on

Product layout with an example.

Answer: Factors influencing plant location:-1. Nature of the product:The nature of the product to be manufactured willsignificantly affect the layout of the plant. Stationary layout will be most suitablefor heavy products while line layout will be best for the manufacture for the lightproducts because small and light products can be moved from one machine toanother very easily and, therefore, more attention can be paid to machinelocations can be paid to machine locations and handling of materials.2. Volume of production: Volume of production and the standardization of theproduct also affect the type of layout. If standardized commodities are to bemanufactured on large scale, line type of layout may be adopted.3. Basic managerial policies and decisions: The type of layout depends verymuch on the decisions and policies of the management to be followed inproducing the commodity with regard to the size of plant, kind and quality of theproduct, scope for expansion to be provided for, the extent to which the plant isto be integrated, amount of stocks to be carried at anytime, the kind ofemployee facilities to be provided etc.

4. Nature of plant location: The size shape and topography of the site atwhich the plant is located will naturally affect the type of layout to be followed in


6/20


view of the maximum utilization of the space available .For e.g., if a site is nearthe railway line the arrangement of general layout for receiving and shipping andfor the best flow of production in and out the plant may be made by the side ofthe railway lines .If space is narrow and the production process is lengthy, thelayout of plant may be arranged on the land surface in the following manner:

5. Type of industry process: This is one of the most important factorsinfluencing the choice of type of plant layout. Generally the types of layoutparticularly the arrangement of machines and work centers and the location ofworkmen vary according to the nature of the industry to which the plantbelongs. For the purpose of lay out, industry may be classified into twobroad categories:(i) Intermittent and (ii) continuous. Intermittent type of industries is those,which manufacture different component or different machines.Such industries may manufacture the parts, when required according to themarket needs. Examples of such industries are shipbuilding plants. In this type ofindustry functional layout may be the best. The second type of industry in

continuous industry. in this type of industry raw material are fed at one end andthe finished goods are received at another end. A continuous industry may eitherbe analytical or synthetic. A analytical industry breaks up the raw material intoseveral parts during the course of production process or changes its form, e.g. oiland sugar refineries. A synthetic industry on the other hand mixes the two ormore materials to manufacture one product along with the process of productionor assembles several parts to get finished product. Cement and automobilesindustries are the examples of such industry. Line layout is more suitable incontinuous process industries.6. Types of methods of production: Layout plans may be different accordingto the method of production proposed to be adopted. Any of the following threemethods may be adopted for production- (1) Job order production, (2) batch

production, and (3) mass production. Under job production goods are producedaccording to the orders of the customers and therefore, specification vary fromcustomer to customer and the production cannot be standardized. The machinesand equipment can be arranged in a manner to suit the need of all types ofcustomers. Batch production carries the production of goods in batches or groupat intervals. In this type of manufacturing the product is standardized andproduction is made generally in anticipation of sales. In such cases functional orprocess layout may be adopted. In case of mass production of standardizedgoods, line layout is most suitable form of plant layout.7. Nature of machines: Nature of machines and equipment also affects thelayout of plants. If machines are heavy in weight or create noisy atmosphere,stationery layout may reasonably be adopted. Heavy machines are generallyfixed on the ground floor. Ample space should be provided for complicatedmachines to avoid accidents.8. Climate: Sometimes, temperature, illumination and air are the decidingfactors in the location of machines and their establishments. For example, inlantern manufacturing industry, the spray-painting room is built along the factorywall to ensure the required temperature control and air expulsion and theprocess of spray painting may be undertaken.9.Nature of material: Design and specification of materials, quantity andquality of materials and combination of materials are probably the mostimportant factors to be considered in planning a layout. So, materials storage,space, volume and weight of raw materials, floor load capacity, ceiling height,

method of storing etc. should be given special consideration. This will affect thespace and the efficiency of the production process in the plant. It will facilitate


7/20


economic production of goods and prompt materials flow and soundly conceivedmaterials handling system.10. Type of machine: Machines and equipment may be either general purposeor special purpose. In addition certain tools are used. The requirements of eachmachine and equipment are quite different in terms of their space; speed and

material handling process and these factors should be given properconsideration while choosing out a particular type of layout. This should also beconsidered that each machine and equipment is used to its fullest capacitybecause machines involve a huge investment. For instance, under productlayout, certain machines may not be used to their full capacity so care should betaken to make full use of the capacity of the machines and equipment.12. Human factor and working conditions: Men are the most importantfactor of production and therefore special consideration for their safety andcomforts should be given while planning a layout, specific safety items likeobstruction-free floor, workers not exposed to hazards, exit etc. should beprovided for. The layout should also provide for the comforts to the workers such

as provision of rest rooms, drinking water and other services etc. sufficient spaceis also to be provided for free movement of workers.13. Characteristics of the building: Shape of building, covered and openarea, number of storeys, facilities of elevators, parking area and so on alsoinfluence the layout plan. In most of the cases where building is hired, layout isto be adjusted within the spaces available in the building. Although minormodification may be done to suit the needs of the plants and equipment. But ifany building is to be constructed, proper care should be given to construct itaccording to the layout plan drawn by experts. Special type of construction isneeded to accommodate huge or technical or complex or sophisticated machinesand equipment.Product layout

Product layout is also called as production lines or assembly lines. They aredesigned and laid out in such a way that only a few products are capable ofbeing manufactured or assembled. Materials flow through the various facilities.

These use special machines to perform specific operations to produce only oneproduct at one time. So, companies should set different set of machines fordifferent products. Workers perform a narrow range of activities to complete theoperations on the product as it moves in a flow line. The operation times, thesequence of movements and routing procedures are highly standardised to meetproduction requirements which are synchronised with many such products tocomplete finished goods to meet demands. Using special machines andimplementing standardisation in operations have many advantages which arelisted below:

1. The skill required of the workers is low2. Supervision is minimal3. Training needs are small

Precautions to be taken are:

Constant check on the processes needs to be performed so that quality is

assured.

Corrective measures have to be implemented immediately to avoidrejections, since, the quantities that get manufactured will be continuous.

Check for the behavioural attitude of the worker. As jobs are repetitive,

workers tend to be bored and lose concentration. This may affect

productivity and quality.


8/20


Product Layout Example: Let consider an example of Work allocation at anairport

Activity Average time, seconds1. Deplane 202. Immigration 16

3. Baggage claim 404. Customs 245. Check baggage 186. Board domestic flight 15

5. Write a brief note on PDCA cycle, Jurans Quality Trilogy and Crosbys

Absolutes of Quality. List all the Quality Tools.Answer: PDCA cycle:-PlanDoCheckAct Cycle Also called: PDCA, plandostudyact (PDSA) cycle,Deming cycle, Shewhart cycle.Description

The plandocheckact cycle is a four-step model for carrying out change. Just asa circle has no end, the PDCA cycle should be repeated again and again forcontinuous improvement.When to Use Plan-Do-Check-Act

As a model for continuous improvement. When starting a new improvement project. When developing a new or improved design of a process, product or

service. When defining a repetitive work process. When planning data collection and analysis in order to verify and prioritize

problems or root causes. When implementing any change.

Plan-Do-Check-Act Procedure1. Plan. Recognize an opportunity and plan a change.2. Do. Test the change. Carry out a small-scale study.3. Study. Review the test, analyze the results and identify what youve

learned.

4. Act. Take action based on what you learned in the study step: If thechange did not work, go through the cycle again with a different plan. If you weresuccessful, incorporate what you learned from the test into wider changes. Usewhat you learned to plan new improvements, beginning the cycle again.Jurans quality triology

Juran uses his famous Universal Breakthrough Sequence to implement qualityprogrammes. The universal breakthrough sequences are:

1. Proof of need: There should be a compelling need to make changes.2. Project identification: Here what is to be changed is identified. Specific

projects with time frames and the resource allocation are decided.3. Top management commitment: Commitment of the top management is to

assign people and fix responsibilities to complete the project


9/20


4. Diagnostic journey: Each team will determine whether the problems resultfrom systemic causes or are random or are deliberately caused. Root causes areascertained with utmost certainty.

5. Remedial action: This is the stage when changes are introduced.Inspection, testing, and validation are also included at this point.

6. Holding on to the gains: The above steps result in beneficiary results.Having records or all actions and consequences will help in furtherimprovements. The actions that result in the benefits derived should be the normfor establishing standards.

Juran has categorised cost of quality into four categories:1. Failure costs Internal: These are costs of rejections, repairs in terms ofmaterials, labour, machine time and loss of morale.2. Failure costs External: These are costs of replacement, on-site reworkincluding spare parts and expenses of the personnel, warranty costs and loss ofgoodwill.3.Appraisal costs: These are costs of inspection, including maintenance of

records, certification, segregation costs, and others.4. Prevention costs: Prevention cost is the sequence of three sets of activities,Quality Planning, Quality Control, and Quality Improvement, forming the triologyto achieve Total Quality Management.Crosbys absolutes of quality:-Like Deming, Crosby also lays emphasis on top management commitment andresponsibility for designing the system so that defects are not inevitable. Heurged that there be no restriction on spending for achieving quality. In the longrun, maintaining quality is more economical than compromising on itsachievement. His absolutes can be listed as under:

1. Quality is conformance to requirements, not goodness2. Prevention, not appraisal, is the path to quality

3. Quality is measured as the price paid for non-conformance and as indices4. Quality originates in all factions. There are no quality problems. It is the

people, designs, and processes that create problemsCrosby also has given 14 points similar to those of Deming. His approachemphasises on measurement of quality, increasing awareness, corrective action,error cause removal and continuously reinforcing the system, so that advantagesderived are not lost over time. He opined that the quality management regimenshould improve the overall health of the organisation and prescribed a vaccine.

The ingredients are:1) Integrity: Honesty and commitment help in producing everything right firsttime, every time2) Communication: Flow of information between departments, suppliers,customers helps in identifying opportunities3) Systems and operations: These should bring in a quality environment so thatnobody is comfortable with anything less than the best.Quality Tools:-

1. Cause-and-effect diagram (also called Ishikawa or fishbone chart):Identifies many possible causes for an effect or problem and sorts ideas intouseful categories.

2. Check sheet: A structured, prepared form for collecting and analyzingdata; a generic tool that can be adapted for a wide variety of purposes.

3. Control charts: Graphs used to study how a process changes over time.4. Histogram:The most commonly used graph for showing frequency

distributions, or how often each different value in a set of data occurs.5. Pareto chart: Shows on a bar graph which factors are more significant.
http://asq.org/learn-about-quality/cause-analysis-tools/overview/fishbone.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/check-sheet.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/control-chart.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/histogram.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/pareto.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/fishbone.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/check-sheet.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/control-chart.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/histogram.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/pareto.html


10/20


6. Scatter diagram: Graphs pairs of numerical data, one variable on eachaxis, to look for a relationship.

7. Stratification: A technique that separates data gathered from a variety ofsources so that patterns can be seen (some lists replace stratification withflowchart or run chart).

6. Define project cycle, project management, and scope of project. List the

various project management knowledge areas? What are the reasons for

failure of a project?

Answer: Project cycleA project cycle consists of the various activities of operations, resources, and thelimitations imposed on them.Project management:-

It is the discipline of planning, organizing, securing, and managing resources toachieve specific goals. A project is a temporary endeavour with a definedbeginning and end (usually time-constrained, and often constrained by fundingor deliverables), undertaken to meet unique goals and objectives, typically tobring about beneficial change or added value. The temporary nature of projectsstands in contrast with business as usual (or operations), which are repetitivepermanent, or semi-permanent functional activities to produce products orservices. In practice, the management of these two systems is often quitedifferent, and as such requires the development of distinct technical skills andmanagement strategies.Project Scope:-

The project scope is the definition of what the project is supposed to accomplishand the budget of both time and money that has been created to achieve theseobjectives.Best results are achieved when both the definition and the budget are preciseand detailed. A good project scope document defines specifically what tasks areto be performed or results delivered. It defines the specific date when thesedeliverables are due and lists the budget allocated for them.Project management knowledge areas

The knowledge areas of project management are the following: Project integration management, cost management, communicationsmanagement

Project scope management, quality management, risk management Project time management, human management, procurement managementFor a project to be successful, it is necessary to understand its relationship withother management disciplines. Other management supporting disciplines arebusiness legal issues, strategic planning, logistics, human resourcemanagement, and domain knowledge.Project failureA project may fail because of one or more of the following reasons: Incidence of project failure Factors contributing to project success not emphasised Overview of Information and Communication Technologies (ICT) projects Common problems encountered during projects

The reasons for the failure of a project in detail:-
http://asq.org/learn-about-quality/cause-analysis-tools/overview/scatter.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/stratification.htmlhttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Business_operationshttp://asq.org/learn-about-quality/cause-analysis-tools/overview/scatter.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/stratification.htmlhttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Business_operations


11/20


Incidence of project failure: The incidents of project failure are due tofollowing reasons:

Projects being initiated at 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 emphasised:

Project objective in alignment with business objective

Working within the framework of project management methodology

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

closure intertwined with quality

Proactive approach towards project bottlenecks

Communication and managing expectations effectively with clients, team

members, and stake holders Prior experience of project manager in a similar project

Overview of Information and Communication Technologies (ICT)projects:

Involve information and communications technologies such as the World

Wide Web, e-mail, fiber-optics, and satellites

Enable societies to produce, access, adapt and apply information in

greater amounts, more rapidly and at reduced costs

Offer enormous opportunities for enhancing business and economicviability

Common problems encountered during projects: No prioritisation of project activity from an organisational 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.


12/20


Master of Business Administration - MBA Semester II

MB0044 Production & Operations Management - 4 Credits

(Book ID: B1133)

Assignment

Set- 2 (60 Marks)

Note: Each Question carries 10 marks. Answer all the questions.

1. Explain the various phases in project management life cycle. List the DomainApplications of SCM and the steps involved in implementation of SCM.

Answers : Phases of project management life cycleProject management life cycle has six phases:

Analysis and evaluation phase Marketing phase Design phase Execution phase Control inspecting, testing, and delivery phase Closure and post completion analysis phase

Analysis and evaluation phaseAnalysis and evaluation phase is the initial phase of any project. In this phase,information is collected from the customer pertaining to the project. From thecollected information, the requirements of the project are analysed. According tothe customer requirement, the entire project is planned in a strategic manner.

The project manager conducts the analysis of the problem and submits adetailed report to the top management.Marketing phaseA project proposal is prepared by a group of people including the projectmanager. This proposal has to contain the strategies adopted to market theproduct to the customers.Design phase

Design phase involves the study of inputs and outputs of the various projectstages

Inputs received consist of: project feasibility study, preliminary projectevaluation details, project proposal, and customer interviews.

Outputs produced consist of: system design specifications, functionalspecifications of the project, design specifications of the project, and projectplan.Execution phaseIn execution phase, the project manager and the team members work on theproject objectives as per the plan. At every stage during the execution, reportsare prepared.Control inspecting, testing and delivery phaseDuring this phase, the project team works under the guidance of the projectmanager. The project manager has to ensure that the team working under him is


13/20


implementing the project designs accurately. The project has to be tracked ormonitored through its cost, manpower, and schedule. The project manager hasto ensure ways of managing the customer and marketing the future work, as wellas ways to perform quality control work.Closure and post completion analysis phase

Upon satisfactory completion and delivery of the intended product or service thestaff performance has to be evaluated. The project manager has to documentthe lessons from the project. Reports on project feedback are to be prepared andanalysed. A project execution report is to be prepared.Domain ApplicationsSCM can be easily applied and integrated with:

ERP systems Design systems like auto-CAD, Pro-E R&D systems ISO 9000 systems Accounting and financial systems

Costing systems Manufacturing systems

SCM implementation involves the certain steps: Study the strengths and weaknesses within the enterprise as well as of

external agencies involved. Understand the organisation objectives. Study the existing systems and identify the gaps and propose solutions to

plug the loopholes. Evolve consensus and test fire individual solutions Integrate solutions which are adjudged successfully into the mainstream. Study overall impact after all proposals in a section are implemented,

review consensus. Finalise SCM document, circulate, and implement the same

2. What is a Business Process Model? Explain why a business process needs to

be modelled.

Ans:

What is a Business Process Model? Explain why a business processneeds to be modelled.

Answer : Business Process is a total response that a business undertakesutilising the resources and delivering the outputs that create a value for thecustomer.

The business process: Has a goal Uses specific inputs Delivers specific outputs Collects resources Performs a number of activities in some order Creates value for the customer


14/20


Business Process Modelling refers to a set of activities undertaken to optimisethe business process.

The reasons for optimising the business process is to: Improve the performance of the process Deliver better value for the customer Maximise the earnings of the organisation Keep its head above competition from outsiders

Reasons for optimising the business processThe business system contains a combination of people and the applicationsorganised to meet the business objectives. The applications are automatedtimely and efficiently to enable information and reporting system to be accurate.

To meet the business objectives: Designers and programmers:The designers and programmers of the

modelling process, together:o Put together the data and processes to provide optimum benefitso Put in place the architecture which is capable of addressing these

needs Architecture: The architecture should be flexible to adapt new methods,

processes, and business plans.All the elements of the business process have to be structured and controlled forthe purpose of analysis, evaluation, modification, implementation, andcorrection. Some of the elements are activities, parts, products, data, people,processes, software tools, delivery systems, and performance measurement.

3. What is Value Engineering? Give a real life example of application of VE.

MA0044 : What is Value Engineering? Give a real life example ofapplication of VE.

Answer : Value Engineering (VE) or Value Analysis is a methodology by which wetry to find substitutes for a product or an operation.

The concept of value engineering originated during the Second World War. It wasdeveloped by the General Electric Corporations (GEC). Value Engineering hasgained popularity due to its potential for gaining high Returns on Investment(ROI). This methodology is widely used in business re-engineering, governmentprojects, automakers, transportation and distribution, industrial equipment,construction, assembling and machining processes, health care andenvironmental engineering, and many others. Value engineering process calls fora deep study of a product and the purpose for which it is used, such as, the rawmaterials used; the processes of transformation; the equipment needed, andmany others. It also questions whether what is being used is the mostappropriate and economical. This applies to all aspects of the product.Simplification of processes reduces the cost of manufacturing. Every piece ofmaterial and the process should add value to the product so as to render thebest performance. Thus, there is an opportunity at every stage of themanufacturing and delivery process to find alternatives which will increase thefunctionality or reduce cost in terms of material, process, and time.

The different aspects of value engineering can be encapsulated into a sequenceof steps known as a Job Plan. Value Engineering in organisations helps to

identify: The problem or situation that needs to be changed/improved


15/20


All that is good about the existing situation The improvements required in the situation The functions to be performed The ways of performing each function The best ways among the selected functions The steps to be followed to implement the function The person who executes the function

It should be remembered that we are not seeking a cost reduction sacrificingquality. It has been found that there will be an improvement in quality whensystematic value analysis principles are employed.Examples of Value Engineering

Russian liquid-fuel rocket motors are intentionally designed to permit ugly(though leak-free) welding. This reduces costs by eliminating grinding andfinishing operations that do not help the motor function better.

Some Japanese disk brakes have parts toleranced to three millimeters, aneasy-to-meet precision. When combined with crude statistical process controls,

this assures that less than one in a million parts will fail to fit. Many vehicle manufacturers have active programs to reduce the numbers

and types of fasteners in their product, to reduce inventory, tooling andassembly costs.

Often a premium forming process (like near net shape forming) caneliminate hundreds of low-precision machining or drilling steps. Precision transferstamping can quickly produce hundreds of high quality parts from generic rolls ofsteel and aluminum. Die casting is used to produce metal parts from aluminumor sturdy tin alloys (theyre often about as strong as mild steels). Plastic injectionmolding is a powerful technique, especially if the parts special properties aresupplemented with inserts of brass or steel.

When a product incorporates a computer, it replaces many parts with

software that fits into a single light-weight, low-power memory part ormicrocontroller. As computers grow faster, digital signal processing software isbeginning to replace many analog electronic circuits for audio and sometimesradio frequency processing.

On some printed circuit boards (itself a producibility technique), theconductors are intentionally sized to act as delay lines, resistors and inductors toreduce the parts count. An important recent innovation was to eliminate theleads of surface mounted components. At one stroke, this eliminated the needto drill most holes in a printed cricuit board, as well as clip off the leads aftersoldering.

In Japan (the land where manufacturing engineers are most valued), it is a

standard process to design printed circuit boards of inexpensive phenolic resinand paper, and reduce the number of copper layers to one or two to lower costswithout harming specifications.

4. Discuss the Modern trends in Project Management. Write a note on macro

issues of project management.

Answer : Modern Trends in Project Management


16/20


There are a number of ways a manager can implement a project successfully. Asit is important to monitor and control the project activities throughout variousstages, it becomes much more important to resort to effective and powerful toolsto coordinate the activities. Modern trends in project management have shown anumber of ways that can be considered to achieve good results in any project.

Irrespective of whichever way one wants to choose for effective outputs, theessential methods are as follows:

meticulous planning of all the activities referring to checklist which could have been creatively designed adopting quality control measures and standards

PerceptionAs per the current trends in project management, the perception is that the jobof a manger is to obtain result. A more result-cum-profit oriented corporatestrategy lays greater emphasis on maximised efficiency of operations.Corporate strategic tools in project managementa. Continuous Business Process Improvement: Continuous business

improvement is a process through which a project team passes on the details ofany system as recommendation for standardisation. It acts as a business processelement for the company as a whole.b. Force Field Analysis: The analysis is done by adopting suitable methods toidentify external factors which may affect the project progress. The externalfactors are the hurdles in a project. Use of appropriate processes minimises andeliminates the hurdles resulting in a smooth flow of activities and projectprogress.c. Information Risk Management: Various methods can be adopted to reducethe risks in a project. A proper methodology is one that is based on the qualitycontrol aspect which may even be automated and integrated into the projectprocess. The risks arising out of corruption, age, field size variation and format

mismatch have to be controlled.d. Management Assurance Measure: Management assurance measure is atask performed by the project leader to convince management against wavering.At the same time, it aims at preparing team members to counter anyunexpected storms in the project. This is the greatest opportunity for a leader tomature and go up the ladder as well as an equal opportunity for the member toemerge a leader through accepting a challenge.e. SEI-CMM & ISO Certification: SEI-CMM & ISO Certification is a wellestablished certification system. An organisation having a certification willenable the management team to realise the importance of a process and howeffectively projects could be managed smoothly. Several world organisations, arenow working on P-CMM and total quality assurance.f. Strategic Inflection Point: A real test for the project leader and themanagement team is to accurately predict the exact point of the developmentprocess where the team might face a massive problem. These points may berelated to political, geophysical and rarely to time.Macro issues

The macro issues of the project management are listed below: Evolving Key Success Factors (KSF) upfront Empowerment Title (ET) Partnering Decision Making (PDM) Management by Exception (MBE) Knowledge (K) Factor

Evolving Key Success Factors (KSF) upfront


17/20


In order to provide complete stability to fulfilment of goals, a project managerneeds to constantly evaluate the key success factors from time to time.Empowerment Title (ET)ET reflects the relative importance of members of the organisation at threelevels Team members, Group leaders, and Managers.

Partnering Decision Making (PDM)PDM is a substitute to monitoring and control. A senior, with a better decisionmaking process, will work closely with the project managers and members of theproject. The whole crew will plan together to find out what best can be done tomanage the future better from past experience.Management by Exception (MBE)No news is good news. If a member wants help he or she locates a source andproposes to the manager only if such help is not accessible for free. Similarly, amember should believe that a team leaders silence is a sign of approval andshould not provoke comments through excessive seeking of opinions.Knowledge (K) Factor

Knowledge is the most powerful mover of the wheels of progress.Knowledge (K)factor is an index of the extent to which one can manage today with yesterdaysknowledge content and also the extent to which todays knowledge will be usedtomorrow.

5. Explain the steps involved in Johnsons Algorithm and CDS Algorithm.

Answer : Johnsons algorithm of sequencingJohnsons algorithm is used for sequencing of n jobs through two work centres.The purpose is to minimise idle time on machines and reduce the total timetaken for completing all the jobs.As there are no priority rules since all job have equal priority, sequencing the

jobs according to the time taken may minimise the idle time taken by the jobs onmachines. This reduces the total time taken.

The algorithm can be fulfilled in the following steps. Step 1: Find the minimum among the time taken by machine 1 and 2 for

all the jobs. Step 2a: If the minimum processing time is required by machine 1 to

complete the job, place the associated job in the first available position in thefinal sequence. Then go to step 3. (If it is a tie you may choose either of them,for applying the above rule.)

Step 2b: If the minimum processing time is required by machine 2 tocomplete the job, place the associated job in the last available position in finalsequence. Then go to step 3. (If it is a tie you may choose either of them, forapplying the above rule.)

Step 3: Remove the assigned job from consideration and return to step 1until all the positions in the sequence are filled.CDS algorithm for n jobs on m machinesCDS algorithm was given by Campbell, Dudek and Smith. It is used to find theoptimal sequence of the jobs to be followed when there are m numbers ofmachines. We do this by converting the m number of machines to 2. This is doneby considering different combinations like 1 and m, then 1+2 and (M-1)+M,


18/20


then 1+2+3 and (M-2)+(M-1)+M, and so on. This gives m-1 sequences and wecan choose the most optimal among them by calculating the time taken by eachof the obtained m-1 sequences.

The sequence that takes the minimum time will be the most optimal job ordersequence according to the CDA algorithm. This process is useful, when the

number of machines is small but more than 2.In order to calculate the time taken by each of the sequences obtained, we haveto calculate the time-in and time-out of the jobs in the sequence for eachmachine. In order to calculate this, consider the sequence in case let 1 andfollow the following steps.Remember that except for M1, other machines may have to wait to start theiroperations, until the previous operation is over. You have to include idle times atthe beginning, middle or the end. So the initial value, which is the time-in undermachine 1 for the first job in the sequence, will be zero. The time-in for thefurther jobs will be Maximum of (the time-out of the previous job in the sequenceunder the same machine, the time-out of the next job in the sequence under the

previous machine).Time-out of a machine = Time-in of that machine (from the previous step) + Theoriginal time taken by the job under the respective machine.

6. List the objectives of JIT. Explain briefly characteristics of JIT.

Answer : Just-In-Time (JIT) manufacturing is a process by which companies dont

keep lots of excess inventory; instead, they manufacture a product as an ordercomes in. It is a management philosophy of continuous and forced problem

solving.

The objective of JIT manufacturing system is to: Eliminate waste that is, minimise the amount of equipment, materials,

parts, space, and workers time, which adds a great value to the product Increase productivity

JIT means making what the market demands when it is in need. It is the mostpopular systems that incorporate the generic elements of lean systems. Leanproduction supplies customers with exactly what the customer wants, when the

customer wants, without waste, through continuous improvement.


19/20


Deploying JIT results in decrease of inventories and increases the overallefficiencies. Decreasing inventory allows reducing wastes which in turn results insaving lots of money.

There are many advantages of JIT: Increases the work productivity Reduces operating costs Improves performance and throughput Improves quality Improves deliveries Increases flexibility and innovativeness

For industrial organisations to remain competitive, cost efficiencies have becomecompulsory. JIT helps in this process. It is extended to the shop floor and also theinventory systems of the vendors. JIT has been extended to mean continuousimprovement. These principles are being applied to the fields of Engineering,Purchasing, Accounting, and Data processing.Characteristics of JIT

The consequent savings are to be utilised for reducing cost and rendering betterservice to the customer. Shigeo Shingo an authority on JIT at Toyota classifiesthe wastes to be eliminated as follows.

The seven wastes to be eliminated according to JIT are: Over production Inventory Waiting time Movement Effort Defective products Over processing

1. Over production: Over production is to manufacture products before it isactually needed. If the demand for that product decreases, the extra parts orproducts produced may not be useful or needed. Also over production results inhigh storage costs and is also difficult to detect defects. So, over production isconsidered a waste.2. Inventory: Excess procurement or production builds up stock of materialswhich are not immediately used, thus locking space and funds carrying heavycosts. The figure 13.2, illustrates the inventories at different levels of anorganisation Supplier distribution, Production, and Customer distribution.3. Waiting time: Waste of time happen when goods are not moving or beingprocessed. The operator, the machine or the part will either be not working or beworked upon. The duration of waiting is can be said to be unproductive and may

create more serious consequences.4. Movement: Any unnecessary movement is a waste of energy; it causesblockages, disrupting movements and delaying the flow of other items creatingdelays.5. Effort: The people, who work, do not make a study as to how the products onwhich they are making are utilised and do not realise the purpose for which theyare made. This lack of education will lead to waste of resources. Finally, they endup in shortage of resources when needed.6. Defective products: The defective products lead to a tremendous loss to thecompany. This is because they use up the same equipments, workmen and thetime that would be used to make good products. Thus defective products use upresources and result in losses.


20/20


7. Over Processing: Some steps like unnecessary processing or production donot add value to the final output. As a result, it is waste of all the inputs that gointo the process.

assignment_mb0044-production & operations management-ans

Documents