Mb0028 Set 02 Vkg

Assignment 2 MB0028 Production and Operations Management Answer the following questions: Q1. Discuss Data-Driven approach to Process definition Data driven approach ,most commonly used in relational and object oriented analysis efforts, analyzes the life cycle of each major data entity type. The approach defines the process for each phase or change the data undergoes the method by which the data is created, the reason for the change and the event that causes the data to achieve its terminal state. In a data driven process logical data model must be completed before the process modeling and analysis begin. This method assures that all data action is accounted for and that there are meaning full associations between the data and its process. MAJOR POINTS OF INTREST IN CONSTRUCTING A LOGICAL PROCESS MODELARE ♦ What is the Purpose of the process? ♦ Who will participate in the process? ♦ The Order in which the steps of the process are done. ♦ Which data to be included in the process? ♦ What Decisions that will be made during the execution of the process? ♦ The rules you will use to define the various part of the process ♦ Disposition of the data at the end of the process. There will be other element in the business process that needs to be included in the model. The more complete the model, the easier it will be implement the soft ware, and the more successful the process will be in producing the desired output.

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If the definition of the process is ambiguous or lengthy, it is usually a candidate for decomposing in to the sequential process .All functions are decomposed to process, and all process are ultimately decomposed in to sequential process. CONSTRUCTING THE PROCESS MODEL DIAGRAMS Once the functions, process and sequential process have been identified and defined, the analyst uses process modeling software to construct a set of diagrams to graphically represent the business process under scrutiny. Be mindful of areas in the process where more than one task may be performed simultaneously. In these areas you may need to show data being shared among participants or different sub sets of the data being made available to each participant. This indicates that the process has been completed and that all the data generated by the process can be identified.

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Q2. Elaborate on the Project Management Life Cycle The project manager is the one person who carries joint responsibilities for all aspect of the project. Project manager’s life cycle overlaps with the development life cycle in the middle, at the beginning and end they are both different. Project manager’s duty starts before development and continue after delivery of the project. RESPONSIBILITIES OF THE PROJECT MANAGER ♦ Budgeting and cost control ♦ Task Scheduling ♦ Resources allocation ♦ Tracking project expenditures ♦ Ensure technical quality ♦ Manage relation with customers and company. PHASES OF THE PROJECT MANAGEMENT LIFE CYCLE ♦ Analysis and evaluation phase  Starts with receiving need identification from the customer.  Project manager must provide inputs to top management covering a detailed analysis of chances of success and key success factors. Project manager has to do the requirement analysis (determine over all requirement), Trade of analysis (examine various alternatives), Estimation (rough cost estimate, manpower requirement & functionality), Systems design (chose a general design that can fulfill the requirements) and at the end project evaluation has to be done (evaluate the project in terms of expected profit and risk involved) Project manager has to deliver the Project Feasibility Study and Preliminary Project Evaluation report during the analysis and evaluation phase. ♦ Marketing phase In marketing phase project proposal is to be prepared by a group of people including the project manager. Importance of the proposal is to

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 Define exactly what the project will achieve and what items it will deliver.  Convince the customer that your proposal will meet there requirements better than any other company’s proposal.  Outline the solution to the customer and how the deliverables are to be produced to convince the customer that you understand the problem involved.  To convince the customer that you are fully competent to produce the desired system. ♦ Design phase In design phase design of new system is to be produced, the inputs received are  Project Feasibility Study  Preliminary Project Evaluation  Project Proposal  Customer Interviews And the out put produced are as  System Design Specification  Program Functional Specification  Program Design Specification  Project Plan  Technical Specification ♦ Test and delivery phase  During this phase, the project does all work under guidance of project manager.  Project manager’s ability to lead and manage the team as required.

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Specific responsibilities of Project manager during this phase is to ensure accurate implementation of design, project tracking, managing the customer, marketing for future and perform quality control work. ♦ Post completion analysis phase Analyses the just completed project and produce  Project lessons and learned document  Project marketing opportunity report  Staff performance evaluation.

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Q3. Explain the seven Principles of Supply Chain Management Supply chain is a net work of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chain exists in both service and manufacturing organizations, although the complexity may vary from industry to industry and firm to firm. Supply chain management is required by an Enterprise as a tool to enhance management effectiveness with an increase in Functional effectiveness of existing systems like ERP, Accounting Software and documentation like Financial Reports/Statements/ ISO 9000 Documents etc. Supply chain management means transforming a company’s supply chain in to an optimally efficient, customer satisfying process, where the affectivity of the whole supply chain is more important than the affectivity of each individual department. Realistic supply chain has multiple end products with shared components, facilities and capacities Seven Principles of Supply Chain Management are as 1. Group customer by needs: Effective supply chain management groups customer by distinct services needsregardless of industry- and then tailor services to those particular segments. 2. Customize the logistic network: In designing their logistics network, companies need to focus on the service requirements and profit potential of the customer segment identified. 3. Listen to signals of market demand and plan accordingly: Sales and operational 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 forecasts and optimal resource allocation.

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4. Differentiate the product closer to the customer: Companies today no longer can afford to stockpile 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. 5. Strategically manage the source of supply: By working closely with their key suppliers to reduce overall costs of owing materials and services, supply chain managers maximize profit margins both for them selves and their suppliers. 6. Develop a supply chain wide technology strategy: As one of the corner stones of successful supply chain management, 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 product, services and information. 7. Adopt channel spanning performance measures: Excellent supply chain performance management systems do more than just monitor internal functions. They apply performance criteria to every link in the supply chain-criteria embraces both service and financial metrics, including as each account’s true profitability.

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Q4. Describe considerations when Planning and Implementing Integrated Material Handling Systems An Integrated state is a desired state when one speaks of a particular material handling installation as an integrated system; reference is generally being made to at least one of three possible characteristics of the installation. In discussing these characteristics, the word automation will be used, and is indeed an integrated handling systems will employ some automation, and will employ computers to control the automation. Automation is not the objective, automation is merely a tool. The objective is material flow patterns which have been arranged to flow logically. It is a material handling tasks that have been simplified before any thought is given to automating the task. It is in creating flexibility, both in what can be handled and the way it can be handled. And it is in achieving a level of coordination in the material flow process which is unprecedented. It is to these ends that Indian industry should be devoting its energies. To the extant that these objectives are realized is the extent to which a firm foundation exists for developing an integrated material handling system. There are three characteristics of an Integrated Material Handling Systems. The first and most important characteristics of an integrated material handling system has very little to do with the mechanical aspect of handling material. Secondly, an integrated material handling system can also be characterized by a unbroken material flow “link” between successive stage in a manufacturing or warehousing operation. The implication is that individual pieces or unit loads are picked up or injected, transported and then deposited at a destination with little or no human intervention, other than perhaps the pushing of a start button. Thirdly, an integrated material handling system characteristically interfaces two or more material handling devices in order to form the bridge between work stations or other discrete points of origin and destination with in the material flow cycle.

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Q5. Write a note on Implementation of JIT through Optimization of Resource Utilization While modern ERP systems are designed with sufficient user friendliness towards customization of Just in Time (JIT) and unstructured approach might prove to be counter productive. Apart from JIT principles being absent such an approach might even destructively alter the primary capabilities of the ERP system it self. The following passages outline the essential features which are picked out from the ERP for JIT customization in the order in which they are listed:  Order processing for JIT ♦ Multiple order type ♦ Multiple pricing structures and commissions ♦ Shipping Locations ♦ Online customer credit information at order entry ♦ Conversation of quotes of order ♦ Customs EDI interface ♦ Contacts ♦ On line inquiries on order, customer or part status  Shipping and Sales Returns ♦ Shipping facility for partial or whole orders ♦ Automatic back order of partially shipped orders ♦ Acceptance of sales returns to inventory or back order ♦ Credit invoices based on returns ♦ Generate packing slips and related shipping documents ♦ On line inquiry of open shipments by customer, part or date  JIT-Shop Floor Control ♦ Tie up of manufacturing order back to multiple customers or build to stock

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♦ Automatic

generation

of

operation

details

and

material

requirements ♦ Extensive operation instructions ♦ Automatic generation of PO requisitions for raw materials and subcontracting  Labour Reporting ♦ Bar coded employee badges and manufacturing orders ♦ On line data collection scanners on the shop floor ♦ Reports on labor hours, goods and scrap quantities in real time ♦ Tracking of employee attendance through the time clock ♦ Manual entries/adjustment of time card  Job Costing ♦ Costing by job ♦ Costing by operation ♦ Tracking of labor, burden, material and subcontract costs individually  JIT Purchasing ♦ Creation and approval of purchase requisitions ♦ Automatic generation of Pos from requisitions ♦ Creation of Pos with multiple line items and releases ♦ Creation of regular, blanket or subcontract Pos ♦ Availability of status by vendor, part or date  Receiving and Return ♦ Receipt of material into inventory against purchase line items ♦ Tracking of material from different vendors by bar coded tags ♦ Tracking of Rejected material from different vendors by bar coded tags ♦ Tracking of rejected material with reason codes

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♦ Automatic back order for partial receipts

 JIT Inventory ♦ Tracking of finished goods, raw materials, assemblies and components ♦ Creation of multilevel bill of materials and view product structures ♦ Tracking of on hand, allocated, available, on job and on order quantities ♦ Maintenance of lead times and recorder levels ♦ Issue of materials to jobs by tag ♦ Multiple Units of measure for sales stock and purchase

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Q6. Enumerate Quantitative Decision Making We face numerous decisions in Supply chain management. We can use computers to analyze the potential outcomes of various decision alternatives. But use of Quantitative models can make decision making more efficient and powerful. Rough estimates and thumb rule methods have always tended to be poor reflection of decision making ability in management. Decision making has its own drawbacks  High level of uncertainty  Little precedent to follow  Variables less scientifically Predictable  When facts are limited  When “ facts” Do not clearly point thy way to go  When analytical Data are of “little” use  Several alternatives with “Good” arguments for each  Time is limited  Implicit favorite model Diagram of Quantitative Approach

Identify Problem

Formulate and Implement Model

Analysis Model

Test Results

Implement solution

Unsatisfactory Results

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