Production Management: Question Bank 1. Explain production system model as on today & from organization point of view? Answer:
Production System Today : Machine Availability
Economic Climate
Capital
Competition
Material supply
Customer
Bank
Machine
Raw Material INPUT
Men
Product / Service
Control
OUT PUT
Demand
Trade Union
Labor Availability
Money
Social Channel
Government
Production System in Organization : Vision : Companies achievement in near future Mahindra Tractors : We will be largest tractor manufacturer in the world by 2009
Mission is what co. want to achieve Or Purpose of companies existence Policy Mission
Amul – Taste of India Glaxo – Better India Healthier India L&T We will do the things India will proud of
Plan
Plan of Glaxo : We will be life saving drug import substitute
Production System
Production System : Is a vehicle through which organization achieves its vision / Mission written by the company As effectiveness of production system can affect vision & mission statement of Co.
2. Discuss interaction of production with other functions of organization? Answer:
Interaction with other functions : Marketing
Finance
Accounting
Industrial Engg.
PRODUCTION
Research & Development
Procurement
Personnel
Marketing : 1. Customer Quality requirement 2. New product & processes 3. Customer feedback on products & services • Finance : 1. Budgetary information 2. The analysis of investment 3. Provision of money for improvement 4. Provision of information on general condition of firm • Accounts : 1. Data including cost of material ,direct labor & Over head items 2. Release of special reports on operation of the production system ,includes scrap, rework ,overtime etc. 3. Providing data to data processing services • Procurement : 1. The determination of items to be purchased 2. The determination of delivery schedule 3. The discovery of new product / process / material 4. Inventory control • Personal : 1. Retirement of people 2. Training of people 3. Labor relations 4. Safety
• R&D : Of New ideas ,products ,processes etc. • Industrial Engineering : 1. Method analysis information 2. Work measurement information 3. Plant layout & Material handling information 4. Plant maintenance information
3. Explain Continuous & Intermittent production system? Answer: From Text Book Page No.:226227
4. What is plant layout & factors to be considered in development of plant layout? Answer: Layout is a Fundamental of every organization and enterprise • Kitchen, Retailers, offices, service organization and all the enterprises have a specific layout • A Simple situation with few items to arrange have many alternatives • Previously Layouts were based on intuition, experience and judgment • With the complexities and competition now scientific methods are used • The Layout comes in picture after the location has been finalized • Development of good layout depends on decisions already taken on location, capacity, facility, manufacturing method and material handling techniques • Efficiency and performance of machines and production is the focus area for this • Plant layout begins with plant location and continues through 3 further levels, 1. Layout of department within site 2. Layout of items within the department 3. Layout of individual work places Factors Influencing Layouts 1. Factory Building : The nature & size of building determines the floor space available for layout . While designing the special requirements i.e. Air conditioning, dust control , Humidity control ,Noise proofing etc must be kept in mind 2. Nature of product : Product layout is suitable for uniform products Process layout is suitable for custom made products 3. Production process : In assembly line industries product layout is better In job order or intermittent manufacturing process layout is desirable 4. Types of machinery : General purpose machines are arranged as per process layout, Special purpose machines are arranged as per product layout
5. Repairs & Maintenance : Machines / Equipments must be arranged keeping in mind the movement of operators & maintenance tools 6. Human Needs: Adequate arrangement should be made for Wash rooms, drinking water / Canteen & other employee facilities 7. Plant Environment: Heat / Noise / Light / Ventilation & other aspects should be duly considered e.g. Pint shop / Fabrication / Plating section should be located separately to protect employees from harmful fumes etc. Adequate safety arrangement should be made To conclude • The plant layout should be conducive to health & safety of employees • It should ensure free & efficient flow of employees & materials • Future expansion & diversification may also be considered while planning factory layout
5. Explain objective of plat layout & compare good & poor layout? Answer: Objectives of Plant Layout • Economies of materials, facilitation of manufacturing and handling of goods • Proper and efficient use of floor space • Ensure proper flow of goods and processes without any delay • Provision for supervision and control • Careful planning to avoid changes and relayout of a plant • Provision of safety to workers • Meet quality and capacity requirement in the most economical manner • Provision of adequate medical facilities and refreshment facilities • Have enough of material handling spaces Features Of A Good Layout • Sufficient space for worker and machine to perform their tasks • Must have adequate safety and security to workers against accidents. For eg. Provision of first aid box, fire ex.,etc • Sufficient gangway space for raw materials, workers and semi finished goods • Arrangement of machines and equipment in such a way that it minimizes material handling and costs • Stores for inprocess material should be near to processing machines • Supervision, coordination and control should be easily and effectively carried • Scope for further adjustments and extensions should be sufficient enough Symptoms of Poor Layout A good layout results in • Comfort, • Convenience, • Safety, • Efficiency, • Compactness And • Finally In Profits To The Organization
A poor layout results in • Congestion, • Wastes, • Frustration, • Inefficiency And • Finally A Lower Profit Or A Loss To An Organization
6. What is material handling? Explain any 10 principles of material handling? Answer: Materials handling · The loading, moving, and unloading of materials · The hundreds of different ways of handling materials are generally classified according to the type of equipment used. For example, the International Materials Management Society has classified equipment as (1) Conveyor (2) Cranes, elevators, and hoists (3) Positioning, weighing, and control equipment (4) Industrial vehicles (5) Motor vehicles (6) Railroad car (7) Marine carriers (8) Aircraft (9) Containers and supports Principles of Material Handling 1. Orientation Principle Study the system relationships thoroughly prior to preliminary planning in order to identify existing methods and problems, physical and economic constraints, and to establish future requirements and goals 2. Planning Principle Establish a plan to include basic requirements, desirable options, and the consideration of contingencies for all material handling and storage activities 3. Systems Principle Integrate those handling and storage activities which are economically viable into a coordinated system of operation including receiving, inspection, storage, production, assembly, packaging, warehousing, shipping and transportation 4. Unit Load Principle Handle product in as large a unit load as practical 5. Space Utilization Principle Make effective utilization of all cubic space 6. Standardization Principle Standardize handling methods and equipment wherever possible ( pallet truck)
7. Ergonomic Principle Recognize human capabilities and limitations by designing material handling equipment and procedures for effective interaction with the people using the system (Diesel Forklift drivers) 8. Energy Principle Include energy consumption of the material handling systems and material handling procedures when making comparisons or preparing economic justifications ( Ex : Diesel fork lift Vs Electrical) 9. Ecology Principle Minimize adverse effects on the environment when selecting material handling equipment and procedures 10. Mechanization Principle Mechanize the handling process where feasible to increase efficiency and economy in the handling of materials. 11. Flexibility Principle Use methods and equipment which can perform a variety of tasks under a variety of operating conditions 12. Simplification Principle Simplify handling by eliminating, reducing, or combining unnecessary movements and/or equipment
7. Explain need & nature of location decisions? Discuss various Factors influencing location decisions? Answer: Need for Location Decisions • Marketing Strategy • Cost of Doing Business • Growth • Depletion of Resources Nature of Location Decisions • Strategic Importance – Long term commitment / costs – Impact on investments, revenues, and operations – Supply chains • Objectives – Profit potential – No single location may be better than others – Identify several locations from which to choose • Options – Expand existing facilities – Add new facilities – Move
• • • • •
Decide on the criteria Identify the important factors Develop location alternatives Evaluate the alternatives Make selection
Factors Influencing Location Decisions • Customer response time and local presence • Operating costs • Technological, – Availability and economies of scale (fixed operational costs): Semiconductor manufacturing takes place only in 56 countries worldwide • Infrastructure, electricity, phone lines, suppliers • Macroeconomic: Tariffs, exchange rate volatility, economic volatility • Economic communities: NAFTA (North American Free Trade Agreement), EU (European Union), PACIFIC RIM (The Pacific Rim refers to the countries and cities located around the edge of the Pacific Ocean), EFTA (European free trade association) • Political stability • Logistics and facility costs • Competition • Positive externalities : Nissan in India develops car suppliers which can also supply Suzuki in India Toyota City Shopping Malls • Negative externalities, • Pollution (Ex: factories burn fuel for production. Production will result in profit but gases produced are harmful to the environment, people etc.) Location Decision Factors Regional Factors
Multiple Plant Strategies
Community Considerations
Siterelated Factors
Regional Factors • Location of raw materials • Location of markets • Labor factors • Climate and taxes Community Considerations • Quality of life • Services • Attitudes • Taxes • Environmental regulations • Utilities • Developer support Site Related Factors • Land • Transportation • Environmental • Legal Multiple Plant Strategies • Product plant strategy • Market area plant strategy • Process plant strategy
8. Explain factors to be considered while selecting location for service function & manufacturing function? Answer: Comparison of Service and Manufacturing Considerations Manufacturing / Distribution • Cost Focus • Transportation modes / costs
Service / Retail • Revenue focus Demographics : age,income,etc
• Energy availability, costs
• Population / area
• Labor cost / availability / skills
• Competition
• Building / leasing costs
• Traffic volume / patterns • Customer access/parking
9. Selection of location by using ROI Method? ( Numerical Example from class PPT) Answer: • Transportation Model : Decision based on movement costs of raw materials or finished goods •
Factor Rating: Decision based on quantitative and qualitative inputs
• Center of Gravity Method: Decision based on minimum distribution costs Factor affecting location, Physical Factors • Qualitative : Measurement in terms of criteria like Adequate / Good / Significant etc • Quantitative: Measurement in terms of some cost Labor / Material / Housing / Land / Transport Evaluating Locations (Ex) A manufacturing co. is in situation to decide a suitable location for new plant. Three probable locations are short listed namely X102 , Y102 , Z102, Relevant data is as mentioned in the table given below. Use ROI method to Finalize the location
Sr.No
Data
1 2
Salaries & Wages Water & Power Expenses Raw material & other expenses Total Initial Investment Distribution Expenses Miscellaneous Expenses Expected Sales(Rs)per anum
3 4 5 6 7
Proposed Locations X 102 Y 102 Z 103 25000 25000 25000 25000 35000 30000 85000 200000 55000 45000
80000 300000 45000 25000
65000 250000 65000 35000
225000
250000
225000
Solution: Proposed Locations X 102 Y 102 Z 103 225000 250000 225000 235000 210000 220000 10000 40000 5000 200000 300000 250000
Data Sales Revenue Total Expenses Profit Initial Investment % Return on investment (ROI) ROI = Profit / Initial 5 Investment
13
2
Conclusion: Based on ROI criteria location Y 102 is the best.
10. What is inventory management? Discuss types of inventories? Answer: Inventory Definition: It consist of material Raw / in process / Finished goods, Goods purchased for resale Also tangible assets which can be seen, measured & counted Types of Inventory Management Systems: • Production Inventories Raw material / parts & components which enters the company product in production process 1. Special items as per company specifications 2. Off The Shelf industrial items • MRO Inventories Maintenance Repair & Operating Supplies which get Consumed during production • In process inventories Semi finished products • Finished goods inventories Complete products ready for shipment
11. What is inventory control? Explain any two selective inventory control methods? Answer: Text Book No. 285 and 290 12. What is “MRP” in production management? Explain in detail. Answer: Text Book No. 282 and 283 13. Discuss important types of plant maintenance & scope of maintenance function? Answer: • Function Of The Manufacturing Management Concerned With The Day To Day Problem Of Keeping The Physical Plant In Good Health • An Essential Activity In Every Manufacturing Establishment • Needed To Ensure Availability Of The Machines, Buildings & Services • Needed By Other Parts Of The Organization For The Performance Of their Functions At An Optimum Return On The Investment, Whether This Is In Machines, Materials Or Employees Types Of Maintenance • Break Down Or Corrective • Preventive • Predictive • Routine • Planned BREAK DOWN MAINTENANCE • Maintenance Done After A Breakdown Occurs • A Passive Role Aimed At • Getting The Equipment Back Into Operation As Soon As Possible • Control Cost Of Repairs • Control Cost In Replacement Of Spare Machines
PREVENTIVE MAINTENANCE • Undertaken Before The Need Arises & Aims To Minimize The Unanticipated Or Major Break Downs • Proper Identification Of Equipment • Adequate Record Of Work, Costs Etc • Inspection Schedule • Inspection Check Lists • Well Qualified Inspectors • Use Of Repair Budgets For Major Equipment • Administration Procedures For Follow Up Program PREDICTIVE MAINTENANCE • Maintenance Based On The Condition Of Equipment • Sensitive Instruments Used For Predicting Trouble • Extension Of Service Life Without Fear Of Failure ROUTINE MAINTENANCE • Periodic Inspection, Cleaning , Lubrication & Repair Of Production Equipment • Can Be Online Or Offline PLANNED MAINTENANCE • INSPECTION OF ALL PLANT & MACHINERY ACCORDING TO PREDETERMINED SCHEDULE • TO SERVICE , OVERHAUL, LUBRICATE OR REPAIR BEFORE ACTUAL BREAKDOWN OR DETERIORATION OCCURS • AIMS TO REDUCE MACHINE STOPPAGE DUE TO SUDDEN BREAK DOWN • REDUCES MACHINE BREAK DOWN TIME , COST OF MAINTENANCE AND INCREASES PRODUCTIVITY • SCOPE – Primary Function • Maintenance Of Existing Plant & Machinery, Buildings & Ground • Equipment Inspection & Lubrication • Utilities Generation & Distribution • Alteration To Existing Equipment & Buildings • New Installation Of Equipment And Building – Secondary Function • Store Keeping Stock Of Spare Parts • Plant Protection Including Fire Safety • Waste Disposal • Salvage • Insurance Administration • Pollution & Noise Control
14. What is TPM & explain specific actions of TPM? Answer: TOTAL PRODUCTIVE MAINTENANCE (TPM) • Originally Developed In Japan • An Approach Bringing Total Quality Management Concepts To The Practice Of Preventive Maintenance • Involves The Concept Of Reducing Variability Through Employee Involvement And Excellent Maintenance Records • Method Designed To Eliminate The Loses • Caused By Breakdown Of Machines And Equipments • By Identifying And Attacking All Causes Of Equipment Breakdowns And System Down Time • SPECIFIC ACTIONS OF TPM • Restoring Equipment To A Likenew Condition • Having Operators Involved In The Maintenance • Improving Maintenance Efficiency And Effectiveness • Training The Labor Force To Improve Their Job Skills • Minimize Maintenance Efforts • Effective Use Of Preventive And Predictive Maintenance Technology
STRUCTURE OF TOTAL Productive MAINTENANCE (TPM) MAINTENANCE
IMPROVEMENT MAINTENANCE
MODIFICATION RETROFIT REDSIGN CHANGE ORDER
CONDITION, SELF SCHEDULED, MACHINE CONTROL LIMITS
CORRECTIVE MAINTENANCE
PREVENTIVE MAINTENANCE
CONDITION, MONITOR, STATISTICAL, PREDICTIVE, TREND, ANALYSIS
SCHEDULED, PERIODIC, FIXED INTERVAL, SPECIFIC TIME
UNSCHEDULED, BREAKDOWN, EMERGENCY, REPAIR, REMEDIAL
15. What are the types of production variation? Explain different sources of variation? Answer: Types of production Part / Piece Variation Within Piece Variation Piece to Piece Variation Time to time Variation Sources of Variation 1stEquipment
Sources of Variation2nd Material
Sources of Variation3rdEnvironment
Sources of Variation4th Operator
Sources of Variation continue
16. What is principle of control chart? Explain use of control chart? Answer: Control Charts
Control Chart METHOD
Short Notes: 17 .Network analysis 18. Break even analysis 19. Fault Tree analysis 20. Reliability
21. JIT Answer: • JIT is an inventory strategy implemented to improve the return on investment of a business by reducing inprocess inventory and its associated carrying costs. • In order to achieve JIT the process must have signals of what is going on elsewhere within the process • This means that the process is often driven by a series of signals, which can be Kanban), that tell production processes when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf • When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency. • Quick communication of the consumption of old stock which triggers new stock to be ordered is key to JIT and inventory reduction. • This saves warehouse space and costs • However since stock levels are determined by historical demand, any sudden demand rises above the historical average demand, the firm will deplete inventory faster than usual and cause customer service issues • In recent years manufacturers have touted a trailing 13 week average as a better predictor for JIT planning than most forecasters could provide Transaction cost approach • JIT reduces inventory in a firm. However, unless it is used throughout the supply chain, it can be hypothesized that firms are simply outsourcing their input inventory to suppliers • This effect was investigated by Newman (1993), who found, on average, suppliers in Japan charged JIT customers a 5% price premium Environmental concerns • During the birth of JIT, multiple daily deliveries were often made by bicycle; with increases in scale has come the adoption of vans and lorries (trucks) for these deliveries Three JIT wastes: • Time: wasted in traffic jams • Inventory: specifically pipeline (in transport) inventory and • Scrap: with respect to petrol or diesel burned while not physically moving Benefits 1. Set up times are significantly reduced in the factory: This allows the reduction or elimination of the inventory held to cover the "changeover" time, the tool used here is SMED (Single Minute Exchange of Die). The phrase "single minute" does not mean that all changeovers and startups should take only one minute, but that they should take less than 10 minutes 2. The flows of goods from warehouse to shelves are improved. 3. Better consistency of scheduling and consistency of employee work hours 4. Increased emphasis on supplier relationships 5. Supplies continue around the clock keeping workers productive and businesses focused on turnover
22. Robotics: Answer: ROBOTS are Human like machines that perform production tasks 1. Robots can be programmed to perform a set of moves 2. Program storage & control is in micro computer with set of predetermined operation 3. Robots replace human beings for Dangerous / hazardous (lifting hot components, continuous welding etc ),Heavy , Dirty ,Unpleasant or monotonous tasks Robotics: It is the science of selecting robots for various applications & knowing when not uses them is “ROBOTICS” Advantages: 1. Consistency in performance 2. No mental or Physical fatigue 3. Production of better quality products Disadvantages: 1. High initial investment 2. No value addition due to experience 3. High maintenance cost
23. Computer integrated manufacturing Answer: Future of Manufacturing • Stress on high product6 quality • Flexible manufacturing system • Fast execution & customer order delivery • CAD / CAM will be basis for product design & production planning Digital computer will be driving force (known as CIM—Computer Integrated Manufacturing). Digital computer will provide shared data base for four primary manufacturing functions 1. Engineering design 2. Manufacturing Engineering 3. Factory production 4. Information management The database stores all products & process related information required to produce a component or a product It also contains information about machines, tools, materials, manufacturing steps, quantity required & vendor /supplier database