Production Management Set 2

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ROLL NO 510916600

ASSIGNMENT SOLVE OF MB0028 Q.1 Explain how material flow information helps in work centre decision. Consider the example of shopping centre to illustrate your answer? A. Resources can broadly classify under three categories. Land, machinery, equipments, tools, raw materials, inventory, power etc. fall into the first category. Processes, technology, techniques which have been developed or acquired for making the products or delivering the services for the customer is the second. People both inside and outside the organization are the third resources. In this category we have the employees, supplier’s customers and members of the society. All the resources have inherent potential of enabling the realization of the goals of the organization. It is the responsibility of the management to identify the strength that these entire factors have and utilize them for achieving productivity. Resources will have constrains in term of their availability- quantities and timeliness. Because mismatches will cause either shortage or excess inventory optimization is necessary to reduce the ill effect of both. Linear programming, queuing, theory, inventory, and simulation models are used to arrive at decisions to procure materials and plan scheduling so as to minimize wastage of resources. JIT philosophy which focuses on balancing the system considers the following as waste1. 2. 3. 4. 5. 6. 7.

Inventory Overproduction Waiting time Unnecessary movement Process scrap Inefficient work method Product

A work centre is a production facility comprising of one or more machines and one or more workmen considered as a single unit for purpose of estimating 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 loaded to be sent to it. In many organizations they are even considered as cost centers. Locations just means relative positions of different centers so as to minimize the movement of materials met 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. Activities conducted are on the basis of information that flows with materials. Different locations have to accommodate the constraints of operations. Their positions on evaluate on the basis of deriving maximum benefit of the information that is available. Basically each location is determined on the basis of “from and to”. Where does it receive materials from and to which center the material goes? Some centers have to close as a matter of necessity some need not be and some need to be as far away as possible.

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Q.2 what are the reasons for failure of a project? Give suitable examples? A. A project may fail because of one or more of the following reasonsa. Incidence of project failure: • • • • • •

Project being initiated at random at all level Project objective not in line with business objective Project management not observed Project management with no prior experience in the related project Non –dedicated team Lack of complete support from clients

b. factor 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, closer intertwined with quality proactive approach towards project bottlenecks communication and managing expectation effectively with clients team members and stake holders prior experience of PM in a similar project

c. overview of information and communication technologies(ICT) project: • • •

involved information and communication technologies such as the world wade web, e-mail, fiber-optics, and satellite 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 economics viability

d. common problems encountered during project • • • •

no prioritization of project activity from an organization one or more of the stages in the project mishandled less qualified/non-dedicated manpower absence of smooth flow communication between the involved parties

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Q.3 Explain the various phases in project management life cycle? A. Analysis and evaluation phase 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 analyzes. 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 management. The report should consist of project justification details on what the problems is methods 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 on the project feasibility and the risk involved in the project. 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 customer. Design phase The phase involved the study of inputs and outputs of the various project stages. Inputs receive constrain of project feasibility study preliminary project evaluation details project proposal and customer interview. Executive phase In this phase the project manager and the team member 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 him, implements the project designs accurately. The project has to be tracked or monitored through its cost manpower and scheduled. The project manager has to ensure ways of managing the customer, marketing the future work and ways to perform quality control work.

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Q.4 what are the seven principles of SCM? A. Seven principles of SCM are1) Group customer by need- effective SCM groups customer by distant service needs regardless of industry and then tailors services to those particular segments. 2) Customize the logistics network- in designing their logistics network, companies need to focus on the service requirement and profit potential of the customer segments identified. 3) Listen to signals of market demand and plan accordingly- sales and operations planner 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 resources allocation. 4) 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 changes in customer needs. 5) Strategically manage the sources of supply- by working closely with their key supplies to reduce the overall costs of owing materials and services; SCM maximizes profit margins both for themselves and their supplies. 6) 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 decisions making. It also should afford a clear view and ability to measure the flow of products, services and information. 7) Adopt channel spanning performance measure- excellent supply chain performance measurement systems 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, including as each accounts true profitability.

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Q.5. Explain what is meant by bullwhip effect and how it could prevented? A. An organization will always have ups and downs. It is necessary that the managers of the organization keep track of the market conditions and analyze the change. They must take decagons on thru resources and make necessary changes within the organization to meet the market demands. Failing to do so may results in wild swings in the order. This is may adversely affect the functioning of the organization resulting in lack of coordination and trust among supply chain members. the changes may affect the information and may lead to demand amplification in the supply chain. The Bullwhip effect is the uncertainty caused from distorted information flowing up and down the supply chain. This has its affect on almost all the industries, poses a risk to firms that experience large variations in demand and also those firms which are dependent on suppliers, distributors and retailers. A bullwhip effect may arise because ofa. Increase in the lead time of the project due to increase in variability of demands b. Increase in the stock to accommodate the increasing demand arising out of complicated demand models and forecasting techniques. c. Reduced services levels in the organization d. Inefficient allocations of resources. e. Increased transportation cost How to prevent? Bullwhip effect may be avoided by one or more of the following measuresa. b. c. d. e. f. g.

Avoid multiple demand forecasting Breaking the single orders into numbers of batches of orders. Stabilize the price avoid the risk involved in overstocking by maintaining a proper stock. Reduce the variability and uncertainty in point of sales (POS) and sharing information’s. Reduces the lead time in the stages of the project. Always keep analyzing the past figures and track current and future levels of requirements. Enhance the operational efficiency and outsourcing logistics to a capable and efficient agency.

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Q.6 what do you understanding by Line Balancing? What is the importance of order picking in materials handling? Give suitable examples? A. Balancing for materials flow Production lines have a number of worksites in a particular sequencing so that the materials that gets processed has to move further without encountering any bottlenecks. The quantities produced the rate of production at each centre the number of operations and the total production required are factors taken into accounts. The purpose of balancing is to see that no shortage occurs between work centers and minimum inventory gets created. We used the principle of JIT and lean manufacturing to achieve these. Linear programming dynamic programming and other mathematical models are used to study these problems. Some computer-efficient approximate algorithms have been developed to help the process. Importance of order picking in materials handling Order picking is a process by which items or products for which supply is to be made have to be retrieved from specific storage location. It is found to take 60% of labor 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 toward small lot sizes point-on-use-delivery and cycle time reductions. These are necessary to meet targets of JIT which have economics implications. Efficient order picking is necessary for being comities. In the supply chain storage retrieval and delivery do not add value to the product but are necessary. Equipments First we will see the types of equipment that helps us in bring in efficiency to the process. a) Horizontal Travel- these are in the aisle picker to part systems. The picker a worker walks or rides a vehicle and picks the item or product and puts into the cart or vehicle. He may also pick a place the item on a conveyor. The storage system could be pallet racks, shelves, storage drawers or gravity flow racks. The pallet racks can be only one or two levels. b) Person Abroad- in these systems the picker is on a platform of the vehicle he can move up as also horizontally along the aisle. c) Part to picker- these are mechanized systems. Here a storage/retrieval device carries the trays or bins to the person picking. These act on the instructions received through a remote control device with the picker. More than one picker can also access the system. d) Special equipment- for high throughput and space efficiency special equipment are made which are in the form of moveable rotary racks mobile shuttles that travel in lanes or even an automatic item picker which has dispensing mechanism that eject item on a conveyor belt. e) Workplace equipment-items can be kept on a work bench and be picked up. The carts also are used to keep items for being picker up. It should be noted that any of the systems described above are to suit the purpose and economics that can be derived. Before implementing any of these a detailed study of alternatives, a plan for expansion or reduction in the requirement of a particular product or a probable shifting of the location etc. will have to be undertaken. Some of these factors are listed below:

BIDYUT RAY

ROLL NO 510916600 1) Materials properties     

Size, weight and nest ability Carton counts, pallets counts Fragility Value Environment- temperature, humidity

2) System requirement for the product     

Volume per product Number of order to be shipped Response time Supporting processes- labeling, pricing Growth factors

3) Economics factors  Investment required  Project life  Rate of return Design considerations Design considerations arise mainly out of the following. Some of the factors mentioned above also are relevant for the purpose of design. They are – A) Total number of products that are to be stored b) Number of product received per shift c) Total numbers retrieved per shift D) Variability in the above- these will determine the dimensions of the building required for the purpose. Sizes, of bins, racks, pallets, are also fixed on the basis of above. Choice between carts, carousals, vehicles, conveyors, automatic item pickers can be made as also the space for locating and moving them. e) Labor force f) Management information system.