21692402 Mb0028 Production And Operations Management[1]

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

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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

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Players are also called stakeholders of the projects

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Project Manager-the individual responsible for managing the project

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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);

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Monitoring the project variables (cost, effort, scope, etc.) against the project management plan and the project performance baseline (where we should be);

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

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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

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Correction of errors

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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 SCMSCM 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 SCMThe 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 belowA 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, fiberoptics 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

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Neglecting to order in an attempt to reduce inventory

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No communication up and down the supply chain

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No coordination up and down the supply chain

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Delay times for information and material flow

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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.

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Shortage gaming: customers order more than they need during a period of short supply, hoping that the partial shipments they receive will be sufficient.

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Demand forecast inaccuracies: everybody in the chain adds a certain percentage to the demand estimates. The result is no visibility of true customer demand.

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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.

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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.

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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.

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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.

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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.