ASSIGNMENT MBA 2nd Sem Subject Code: MB0044 (4 credits) Set 1 SUBJECT: PRODUCTION & OPERATIONS MANAGEMENT Marks 60

Note: Each Question carries 10 marks Q1. Explain Quality Circles and its importance? Explain how CAD and CIM aid in reducing the concept to market time. Answer: Quality Circles Kaoru Ishikawa is generally considered to have promoted the concept of Quality Circles. It is well known that he is the originator of fishbone diagrams to identify the root cause of any problem. The causes for the existence of a problem are classified as pertaining to the material, processes or method or any factor that goes into production. The matter is further investigated and pursued till the exact cause is determined. Quality circles use these principles in solving problems. The teams select projects selected on the above basis and implement actions to achieve improvement in the processes with a view to improve quality. Since these activities are carried out without affecting the regular day to day work and involve little involvement of the managers, team work gets reinforced and results in continuous improvement in methods and quality. The capital deployed is minimal, if at all, and therefore productivity is enhanced. Quality circles are very efficient in incorporating low cost and nonintrusive methods of improving productivity and quality throughout the organisation. They seek to involve all persons who are actually involved in the production system and the information they elicit and bring about improvements highly cost effective. They unveil creativity and encourage team work and bring about improvements almost on a day to day basis. They do not bring about dramatic changes, but continuous incremental changes in a harmonious way. They also tend to encourage identification of possible failures and seek methods of preventing 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 be maneuvered on the screen. Images of different components can be seen as assembled sections taken and relative positions can be checked to great accuracies. Views can bee made seen from different angles and positions, so that the visualization process of the designed component/product helps the designer to suggest alternatives to the customer and the production department. The drawings can be sent via intranet or internet to the concerned persons and their opinions taken. Corrections and incorporations can be made very quickly. The database can be prepared, updated continuously and their access to executive. The efficiency of designers increases by nearly 5 times The

software can generate the volume, weights of components as also other engineering parameters like centre of gravity, deflections under estimated loads, and various other design parameters on complicate forms either single components or assemblies Laborious mechanical drawings need not be drawn. nor complicated calculations done. This aids in reducing the time required to make a design or modify a product and thus concept market period gets drastically cut. Integration occurs when a broad range of manufacturing and supporting activities are linked. Activities include engineering design, production planning, shop control, order processing, material control, distribution etc. Information flow across all functions takes place with the help of computers. Transmission, processing, distribution and feed back happen almost in real time so that intended activities are conducted rapidly. This process helps in rapid production and also reduce indirect costs. As response times decrease, customer satisfaction increases resulting in better business. CIM helps in avoiding accumulation of materials resulting in better throughput and better utilization of space. Bar coded labels that accompany materials contain instructions for processing them which are read by sensing devices and display the status on monitors. This information is available to all concerned personnel responsible in planning, marketing etc. so that they will be aware of the status of any order and if expediting is needed to meet deadlines, they will be able to seek intervention. Identifying shortages, ensuring faster deliveries becomes easy with CIM.

Q2. What is Differentiation Strategies? Briefly explain tools used for implementation of Operations. Answer: Differentiation Strategies Differentiation is a process by which a company distinguishes itself from its competitors and their offerings. The process includes adding a set of differentiators which are meaningful and adds value for the customer. The differences should be perceived by the customer as important, distinctive, superior and affordable. Nonetheless, they have to make the companys offerings i.e the products and services profitable. To derive competitive advantage the study of the processes to adapt innovations which should be of such nature as being preemptive is important. Here, we are not considering the situation of an entirely new product but those which are already contributing to the company revenues and the threat of competitors has to be met. According to Miland Lele (Miland M.Lele, Creating Strategic Leverage: New York, John Wiley 1992) companies have different potential in terms of maneuverability along with target market, place(channels), promotion and price. These are affected by the companys 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.

Tools for implementation of Operations All functions in the organisation including administration, finance, materials,

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Q3. Differentiate between Automated flow line and Automated assembly line with example. Write a note on Rapid Prototyping. Answer: Automated flow lines : 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 semifinished 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. Provision 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 their production 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. Methodologies of achieving the final result may vary, but the basic principle is to fit all parts together and ensure linkages so that their functions are integrated and give out the desired output. Product Layouts are designed so that the assembly tasks are performed in the sequence they are designed. You will note that the same task gets repeated at each station continuously. The finished item comes out at the end of the line

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

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Q4. Explain the different factors influencing plant location. Write a brief note on Product layout with an example. Answer: Factors influencing Plant Location can be broadly divided into two types namely General Factors and Special Factors. General Factors : 1. Availability of land Our plans, calculations and forecasts suggest a particular area as the best, but availability of land may be in question. Many times we will have to choose the second best location on this count. 2. Availability of inputs labour, raw materials. 3. Closeness to market places 4. Communication facilities 5. Infrastructure power, water 6. Transport 7. Government support subsidies etc 8. Housing and recreation educational facilities Special Factors: 1. Economic stability outside investments 2. Cultural factors 3. Wages 4. Joint ventures support of big time players The various factors have their relative importance and therefore ranking them and giving weightage for them is one of the ways of determining the location. We study some models to determine the most likely location. A. Rating Plan Method to evaluate Major Factors for Plant Location. In this Method the various factors are given rating depending upon the perception of the management. The location which gets the maximum rating, considering all the factors is chosen for locating the plant. It can be seen that not all factors are considered. And the value attached to each factor may vary from manager to manager. A sample of such valuation is given below.

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Q5. Write a brief note on PDCA cycle, Jurans Quality Trilogy and Crosbys Absolutes of Quality. List all the Quality Tools. Answer: The PlanDoCheckAct (PDCA) cycle of a quality cycle. They are not just a onetime event. In this context, act on recommendations from previous projects plan to capture data about project do continuous improvement check on how you are doing with a retrospective analysis. Do periodic project reviews that will trigger midproject corrections. Conduct immediate, informal retrospective after solving unexpected obstacles. Understand any impact on the remainder of the project. Recognize people for extra efforts and noteworthy contributions.

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Q6. 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 Cycle A project cycle basically consists of the various activities of operations, resources and the limitations imposed on them. project management : Management is the technique of understanding the problems, needs and controlling the use of resources, such as cost, time, manpower, materials, etc. scope of project : It refers to the various parameters that affect the project in its planning, formulation and executions. Project management knowledge areas are the following a) Project integration management, cost management, communications management b) Project scope management, quality management, risk management c) Project time management, human management, procurement management . Project management knowledge areas describe project management knowledge and

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ASSIGNMENT MBA 2nd Sem Subject Code: MB0044 (4 credits) Set 2 SUBJECT: PRODUCTION & OPERATIONS MANAGEMENT Marks 60
Note: Each Question carries 10 marks Q1. Explain the various phases in project management life cycle. List the Domain Applications of SCM and the steps involved in implementation of SCM . Answer: Phases of Project Management Life Cycle 1 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 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 management. The report should consist of project justification, details on what the problem 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 risks involved in the 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. Tradeoff analysis: To understand and examine the various alternatives which could be considered Estimation: To estimate the project cost, effort required for the project and functionality of various processes in the project System design: choose a general design that can fulfill the requirements Project evaluation: evaluate the project in terms of expected profit, cost and risks involved

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Q2. What is a Business Process Model? Explain why a business process needs to be modelled. Answer:

Business Process refers to the techniques and activities used as a part of Business Process Management discipline. Management process gets exhibited in corporate governance and strategic management. The operational component of Management consists workflow across the functions which realize the objectives of the business. In this context, modeling acts as a guide for identifying the gaps in the processes and thus undertake measures to align them. Because of the dynamics of business, processes have a tendency of deviating. Models act as anchors to stabilise the responses to keep the processes on track. We will also see how Business Process Modeling which is a change process helps achievement of overall business objectives. Business Process is a total response that a business undertakes utilizing resources and delivering outputs that create value for the customer. The same can be listed as under. The Business Process (i) has a goal (ii) uses specific inputs (iii) delivers specific outputs (iv) collects resources (v) performs a number of activities in some order (vi) creates value for the customer. Business Process Management refers to a set of activities undertaken to optimise the business process for improving their performance, deliver better value for the

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Q3. What is Value Engineering? Give a real life example of application of VE. Answer: Basically it is a methodology by which we try to find substitutes for a product or an operation. It can be conducted both internally and externally. The concept took shape during the Second World War. The thinking process calls for a deep study of a product the purpose for which it is used, the raw materials used, the processes of transformation, the equipment needed etc. and question whether what is being used is the most appropriate and economical. This applies to all aspects of the product. For example, let us consider a component needs a round brass rod as raw material in size 21.5 mm. Diameter. It has seven operations cutting, drilling, chamfering boring. milling, plating and polishing. Value analysis considers all aspects of each of these and investigates whether any of them can substituted by another material, a different size, a different tool, a different machine, a different cot sequence, a different tool for an operation, a different chemical, a different concentration, a different voltage, shorter time or processing. Studies can be conducted to verify whether any operation can be eliminated. Simplification of processes reduces the cost of manufacture. Every piece of material

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Q4. Discuss the Modern trends in Project Management. Write a note on macro issues of project management. Answer: Modern Trends in Project Management: Perception The perception of a manager in current trends in project management is to obtain result. A more result cum profit oriented corporate strategy lays greater emphasis on maximized efficiency of operations. Some of the tools being used currently are: a) Continuous Business Process Improvement It is a process through which a project team passes on the details of any system as recommendation for standardization. It acts as a business process element for the company as a whole. b) Force Field Analysis Using various analysis techniques and procedure to identify major external factors or forces which could affect development process. These forces could be related to customer profiles. This responsibility is entrusted with the senior most member of the team rather than the leader or manager. c) Information Risk Management Scientific analytical and quite often automated system of quality control of key input data connected with the project help reduce

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Q5. Explain the steps involved in Johnsons Algorithm and CDS Algorithm. Answer: Johnsons Algorithm of Sequencing This algorithm is used for sequencing of n jobs through two work centres. The purpose is to minimize idle time on machines and reduce the total time taken for completing all the jobs. There are no priority rules since all job have equal priority. The The order of the operations will be machine1 first and machine2 next. The steps to be taken are: (i) Choose the job which has the shortest processing time in any of the two workcentres. (ii) If it happens to be on machine 1, then load it first if it is on machine 2, allot it for loading last. (iii) Eliminate this job. Continue this till all job obleobs have been allotted. Example: Time on

In case the periods on two machines for any of the jobs is the same, you may

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Q6. List the objectives of JIT. Explain briefly characteristics of JIT. Answer: JIT : can be considered to be a philosophy of manufacturing founded on the principles of elimination of all waste and thereby increasing productivity. When the philosophy is applied at workplace, the approach results in providing parts in just right quantities at the right time. This results in economy of material and time thus lowering the costs and increasing productivity. Since no extra parts are available, production of only good parts is forced on the system. JIT has been extended to mean continuous improvement. These principles are being applied to engineering, purchasing, accounting and data processing also. We will see how JIT helps in implementing Lean Production systems. In these days when technology is able to provide us with highly accurate equipments which have high capacities and the business has become global meaning that both suppliers and customers are widely accessible. To remain competitive, cost efficiencies have become compulsory. JIT helps in this process. It is extended to the shop floor and inventory systems of the vendors also. One of the main challenges for JIT is frequent changes in production schedules owing to the changes in demand. This causes the procurements plans to change. In the present day scenario where most manufacturing concerns depend upon a number of suppliers, who in turn may outsource parts and services, disruptions have a cascading effect. However, there is a limit to the agility that a company can build into the system.

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