ASSIGNMENT FOR THE 1 SEMESTER ON OPERATION MANAGEMENT

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Q1. Discuss various types of Plant Layout with examples from Manufacturing Industry? Ans1. Various types off plant layouts are as follows : a). Process layout :- Process layouts are found primarily in job shops, or firms that produce customized, low-volume products that may require different processing requirements and sequences of operations. Process layouts are facility configurations in which operations of a similar nature or function are grouped together. As such, they occasionally are referred to as functional layouts. e.g., milling, grinding, drilling, hydraulic presses, and lathes b). Product layout :- Product layouts are found in flow shops (repetitive assembly and process or continuous flow industries). Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes. In a product layout, resources are arranged sequentially, based on the routing of the products. Two types of lines are used in product layouts: paced and unpaced. Paced lines can use some sort of conveyor that moves output along at a continuous rate so that workers can perform operations on the product as it goes by. Two types of lines are used in product layouts: paced and unpaced. Paced lines can use some sort of conveyor that moves output along at a continuous rate so that workers can perform operations on the product as it goes by. c). Fixed position Layout :- A fixed-position layout is appropriate for a product that is too large or too heavy to move. For example, battleships are not produced on an assembly line. For services, other reasons may dictate the fixed position (e.g., a hospital operating room where doctors, nurses, and medical equipment are brought to the patient). Other fixed-position layout examples include construction (e.g., buildings, dams, and electric or nuclear power plants), shipbuilding, aircraft, aerospace, farming, drilling for oil, home repair, and automated car washes. d). Combination Layout :- Many situations call for a mixture of the three main layout types. These mixtures are commonly called combination or hybrid layouts. For example, one firm may utilize a process layout for the majority of its process along with an assembly in one area. e) Cellular Layout :- Cellular manufacturing is a type of layout where machines are grouped according to the process requirements for a set of similar items (part families) that require similar processing. These groups are called cells.

Q2. What is aggregate planning? Describe in detail? Ans2. aggregate planning is an attempt to balance capacity and demand in such a way that costs are minimized. The term "aggregate" is used because planning at this level includes all resources "in the aggregate;" for example, as a product line or family. Aggregate resources could be total number of workers, hours of machine time, or tons of raw materials. Aggregate units of output could include gallons, feet, pounds of output, as well as aggregate units appearing in service industries such as hours of service delivered, number of patients seen, etc. Aggregate planning is considered to be intermediate-term in nature Hence, most aggregate plans cover a period of three to 18 months. Aggregate plans

serve as a foundation for future short-range type planning, such as production scheduling, sequencing, and loading. The master production schedule (MPS) used in material requirements planning (MRP) has been described as the aggregate plan "disaggregated." Technique for aggregate planning Determine capacity for each period. This capacity should match demand, which means it may require the inclusion of overtime or subcontracting. Identify company, departmental, or union policies that are pertinent. For example, maintaining a certain safety stock level, maintaining a reasonably stable workforce, backorder policies, overtime policies, inventory level policies, and other less explicit rules such as the nature of employment with the individual industry, the possibility of a bad image, and the loss of goodwill. Determine unit costs for units produced. These costs typically include the basic production costs (fixed and variable costs as well as direct and indirect labor costs). Develop alternative plans and compute the cost for each. If satisfactory plans emerge, select the one that best satisfies objectives. Q3. Describe the types of production planning and control systems. Explain the impact of IT in Master Production Scheduling. Describe the software that is being used in Master Production Scheduling. Ans3.

Q4. . How do you select a vendor as a purchasing manager for your organization. Explain the various vendor evaluation techniques. Ans4. The vendor selection process is important no matter how small the part or how simple the
service. 1. Analyze Business Requirements The toughest part of the vendor selection process is analyzing the business requirements. This guide will show you how to accomplish this and gain consensus across all the stakeholders before you begin the vendor selection process. 2. Vendor Search The second part of the vendor selection process is to perform a comprehensive vendor search and create a "short list" of vendors to pursue. 3. Request for Proposal (RFP) and Request for Quotation (RFQ) The third part of the vendor selection process is to write a Request for Proposal (RFP) or Request for Quotation (RFQ). A well written RFP or RFQ is the critical success factor in the entire vendor selection process. 4. Proposal Evaluation and Vendor Selection In the vendor selection process, this is the most crucial step of all. Lack of preparation and not paying attention to detail can lead your vendor selection team to recommend the wrong vendor for your company.

5. Contract Negotiation Strategies The final stage in the vendor selection process is developing a contract negotiation strategy. Successful contract negotiation means that both sides will gain from coming to an agreement. This guide will show you how to plan a successful contract negotiation strategy.

various vendor evaluation techniques.

Define basic requirements To keep focus on your business needs, you must develop and gather internal consensus on the requirements you expect a vendor to meet. Get approval on the requirements from all parties before you sit down with vendors Keep the evaluation simple Before you sit down with vendors, your team must agree on how to measure vendor options. Participants should agree ahead of time on how to prioritize the requirements and rate the vendors ability to fulfill those requirements. Timing, The salesperson would like you to make your decision as quickly as possible. Most of the time, a fast decision is only in the vendors best interest. It seems every time I sit down to negotiate with a vendor, the end of the quarter is next Friday, and if we want to get the best prices, well need to decide by then. Conclusion Working with vendors can be a challenging task for developers, as it pulls us away from the keyboard, away from our programs, and beyond the code.

Q5. Discuss the importance of Value Analysis. Describe any two major types of analyzing purchased components? Ans5. Lawrence Miles conceived of Value Analysis (VA) in the 1945 based on the application of function analysis to the component parts of a product. Value analysis defines a "basic function" as anything that makes the product work or sell. A function that is defined as "basic" cannot change. Secondary functions, also called "supporting functions", described the manner in which the basic function(s) were implemented. Secondary functions could be modified or eliminated to reduce product cost. Two major types of analysis : a). THE VALUE ANALYSIS METHOD If we describe in detail what we are trying to accomplish, we tend to describe a solution and miss the opportunity to engage in divergent thinking about other alternatives. When trying to describe problems that affect us, we become locked in to a course of action without realizing it, because of our own bias. Conversely, the more abstractly we can define the function of what we are trying to accomplish, the more opportunities we will have for divergent thinking. This high level of abstraction can be achieved by describing what is to be accomplished with a verb and a noun. In this discipline, the verb answers the question, "What is to be done?" or, "What is it to do?" The verb defines the required action. The noun answers the question, "What is it being done to?" The noun tells what is acted upon. Identifying the function by a verb-noun is not as simple a matter as it appears.

b). FUNCTION ANALYSIS SYSTEM TECHNIQUE Function Analysis System Technique is an evolution of the value analysis process created by Charles Bytheway. FAST permits people with different technical backgrounds to effectively communicate and resolve issues that require multi-disciplined considerations. FAST is not an end product or result, but rather a beginning. It describes the item or system under study and causes the team to think through the functions that the item or system performs, forming the basis for a wide variety of subsequent approaches and analysis techniques. FAST contributes significantly to perhaps the most important phase of value engineering: function analysis. FAST is a creative stimulus to explore innovative avenues for performing functions. Q6. Discuss ABC classification of Materials. Explain its significance in a manufacturing industry? Ans6.

Q7. What is Just in Time Concept? Explain with relevant case study from a Japanese company? Ans7. Management philosophy of continuous and forced problem solving. Supplies and components are pulled through system to arrive where they are needed when they are needed. What Does Just-in-Time Do? 1.Attacks waste Anything not adding value to the product From the customers perspective 2.Exposes problems and bottlenecks caused by variability Deviation from optimum 3. Achieves streamlined production By reducing inventory. It results into 1. Queue and delay reduction, speedier throughput, freed assets 2. Quality improvement, reduces waste and wins orders 3. Cost reduction which reduces selling price 4.Variability reductions in the workplace reduces waste 5.Rework reduction, reduces waste and wins orders 6.Faster response to the customer at lower cost and higher quality, which leads to: Q8. As a Quality Manager of a company how will you convince the trainees that Quality is important in an organization? What are the various developments in Quality that happened in the past 50 years?

Ans8. As a Quality Manager of a company I will convince the trainee that Quality is important in an organization because it helps us Meeting Our Customers Requirements Doing Things Right the First Time Freedom from Failure (Defects) Consistency (Reduction in Variation) Continuous Improvement Quality in Everything We Do The various developments in Quality that happened in the past 50 years is that it has come up with many new concepts related to quality like 1). Total Quality Management 2). Economic Order Quantity 3) Just In Time 4). Six Sigma

Q9. . Discuss in detail about ISO 9000 family of standards? Ans9. For e.g. A welfare agency decided to improve the quality of the services it provided to clients. It adopted ISO 9004 as the basis for implementing its system and planning for improvements. The agency recognized that ISO 9000 provided very useful additional guidance in terminology and understanding and applying QMS concepts to their system. They mapped the resulting system processes to requirements identified in ISO 9001. They planned to seek certification to ISO 9001 to gain recognition and credibility from clients and supporters.

Q10. What is Total Quality Management? Explain Six Sigma and its significance with a case study discussion? Ans10. TQM is a philosophy which applies equally to all parts of the organization. TQM can be viewed as an extension of the traditional approach to quality. TQM places the customer at the forefront of quality decision making.Greater emphasis on the roles and responsibilities of every member of staff within an organization to influence quality. All staff are empowered.

Six sigma is the concept of Business Management Strategy, which was developed by Motorola in the year 1986 in USA to measure the level of accuracy in the production. The term Six Sigma originated from terminology associated with manufacturing, specifically terms associated with statistical modeling of manufacturing processes. The maturity of a manufacturing process can be described by a sigma rating indicating its yield, or the percentage of defect-free products it creates. A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million). Motorola set a goal of "six sigma" for all of its manufacturing operations, and this goal became a byword for the management and engineering practices used to achieve it. Different role in six sigma For successful implementation of six sigma following key role are assigned 1. Executive Leadership : is consisting of CEO and other top management people responsible for setting for the goals for the Six Sigma. To get the improvement in the process of Six sigma they are free to think and make relevant changes according to available resources. 2. Champions : These people are responsible for the successful implementation of six sigma in the organization. They also act as mentors to the Black Belts. 3. Master Black Belts : These people are identified by the champions, devoting their 100 5 of time to the six sigma. They are assisted by Champions and guide to black belts and Green belts. They are spending their most of time in working six sigma efficiently in an organization. 4. Black Belt : Are the operators for the Master Black Belts and Champions. They are like the helping hand to them. Main focus in the project execution. 5. Green Belt : are responsible for the execution of six sigma along with other job responsibility, operating under the guidance of black belts.