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mb0028 spring 2009

mb0028 spring 2009



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Published by niteshg11
please upload sikkim manipal university 2nd sem mba assignment mb 0029 for spring 2009
please upload sikkim manipal university 2nd sem mba assignment mb 0029 for spring 2009

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Published by: niteshg11 on May 23, 2009
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Subject code: MB0028(3 credits)Set 1Marks 60
Q1. Explain what is meant by capital productivity?Ans:
Capital Productivity
Capital deployed in plant, machinery, buildings and the distribution systems as wellas working capital are components of the cost of manufacture and need to beproductive. Demand fluctuations, uncertainties of production owing to breakdownsand inventories being created drag the productivity down. Therefore, strategies areneeded to maximize the utilization of the funds allotted towards capital. Adapting tonew technologies, outsourcing and balancing of the workstations to reduce theproportion of idle times on equipments are the focus of this section.
1 Outsourcing Strategies
When capacity requirements are determined it will be easy to determine whethersome goods or services can be outsourced so that the capital and manpowerrequirements can be reduced and the available capacities are used to augment corecompetencies thus reducing the cost of the product or service to the customer.However, the following factors may restrict outsourcing(a) Lack of expertise – the outsourced firm may not have the requisite expertise todo the job required(b) Quality considerations Loss of control over operations may result in lowerquality. This is a risk that the firm gets exposed to.(c) Nature of demand When the load is uniform and steady, it may not beworthwhile to outsourcing. Absence of supervision and control may be a hindranceto meet any urgent requirements of the customer. This affects the businessespecially if no production facilities are built in the organization(d) Cost when the fixed costs those go along with making the product does not getreduced considerably
 2 Methods Improvement
Methods Improvement starts with Methods analysis focus of this process is how a job is done breaking it down to elemental tasks so that they are amenable foranalysis.. This is done for both running jobs and new jobs. For a new job, thedescription becomes the input for analysis. For current jobs, the analyst depends onobservations, records and suggestions of the persons involved in the job. Whenimproved methods are suggested, they are implemented and records created forassessing the consequences of the methods improvement procedures. The analystshould involve all concerned persons in the process so that acceptance becomespossible and opportunities open up for further improvements. Moreover, the peopleactually involved would be interested in improving their productivity and will helpthe analyst in the process.
3 Balancing of Workstations
Assembly lines necessitate out stringing together workstations which carry outoperations in a sequence so that the product gets completed in stages. Since theworkflow has to be uniform and operations may require different periods forcompletion the necessity of Line Balancing is felt. Capacities at workstations andthe workforce to man are so adjusted that a product in the process of assemblyalmost approximately the same amount of time.
4 Rationalization of Packaging Methods
With logistics becoming an important function of the supply chain and outsourcingbecoming thenorm, packaging has become an important aspect, packaging has becomeimportant . Space is at a premium and therefore stacking and storing have to morescientific. Movements inside thepremises from one location to another location are being done with automatedsystems and they need that thepackaging systemsare designed for safe transit,continuous monitoring – both for quantities and operations. In case of outsourcedproducts the materials used and their design should facilitate reuse of the samewhich brings in economy.
5 Quality Circles
Kaoru Ishikawa is generally considered to have promoted the concept of QualityCircles. It is well known that he is the originator of 
fishbone diagrams
to identify theroot cause of any problem. The causes for the existence of a problem are classifiedas pertaining to the material, processes or method or any factor that goes intoproduction. The matter is further investigated and pursued till the exact cause isdetermined. Quality circles use these principles in solving problems. The teamsselect projects selected on the above basis and implement actions to achieveimprovement in the processes with a view to improve quality. Since these activitiesare carried out without affecting the regular day to day work and involve littleinvolvement of the managers, team work gets reinforced and results in continuousimprovement in methods and quality. The capital deployed is minimal, if at all, andtherefore productivity is enhanced.
Q2. Write a detailed note on Split case order fulfillment methods and mechanization.
Split-case Order Fulfillment Methods and Mechanisation
 This system looks at situations when bulk supplies in full cases to one or moredestinations are not done. Fulfillment of orders which need different merchandise indifferent quantities requires that ‘cases’ will have to be split, and pieces picked,repacked in cartons and ship to the customer. .Mechanisationhelps in improvingidentification, pickup and repacking the materials in addition to relieving monotonyof the workers. A few strategies of achieving this objective optimally are discussedhere.
1 Order Picking Methods
Items as per customer requirements have to be picked and packed in a logicalmanner and assigned to personnel so that their productivity is maximized.Accuracy of fulfillment of order is ensured by two basic factorsa) Order Extent it is defined as the number of order to be picked simultaneously bya picker in an assignment. This is categorized as discrete order picking in whichcase a single order is selected at a time and Batch order Picking in which case the
merchandise requirements of many orders are put together and selected for pick upin the geographical area which is covered in a single pass.b) Coverage Extent it is the physical area to be traversed by the picker in selectingmerchandise for an assignment within the picking system. The personnel pick upthe merchandise from a zone the zone being a contiguous area with differentpicking locations. The boundaries may be fixed or dynamically adjusted toaccommodate either personnel or customers. This zone is identified within thepicking area. In the other method called tour picking the entire picking area isconsidered for picking merchandise. Either of the strategies is adopted to meet theconstraints or opportunities which maximize employee productivity and thecustomers’ needs.
2 Sorting and Routing
Sorting is done for the purpose of easing the operation of matching orders,merchandise and the customers for whom they are done. This activity can be doneas and when orders are picked Sort Immediate or by merging a number of order andbatches are made to consolidate the priorities for execution. This method is calledMerge and Sort. The strategy used depends on the total area of the zone, thenumber of orders, and the type of merchandise and the economics of balancing allthe above.When orders are routed among those zones where picks are required we call themrouting the picks. When orders are routed from zone to zone, in a particular order,whether any picks are there or not, we call them chaining. When multiple zones arecovered simultaneously in differentZones we call themparallel routing. As can be discerned, no one single method issuitable for actual situations on site. They are formulated as a strategy foroptimization of resources in view of the constraints.
3 Order Packing Methods
Order fulfilling methodology covers one more aspect i.e. the order packing methods.When split-case is executed it becomes necessary that the merchandise isrepackaged for shipment to meet the requirements of the customers. In the firstmethod they are packed as they are picked. This is applicable in cases where themerchandise is usable by the customer directly and when the tools and packagingmaterials are available with the picker and he can pack them throughout the pickingarea.
4 Classification Schemes
In this section you will come to know about the coding of various methods of splitpicking and packing. The letters will uniquely identify the method intended to beused and all personnel in the process will know disposition status of themerchandise.D iscrete Order Picking or B atch Order Picking LetterD or B is usedZ one Picking or Tour PickingPack Immediate or Assemble and PackBS Batch Order Picking -Sort ImmediateBM Batch Order Picking – Merge & SortZR Zone Picking with RoutingZC Zone Picking with ChainingZP Zone Picking in ParallelFor example, BSDZCA means Batch Order Picking Sort Immediate DiscreteOrder Packing Zone Picking with Chaining and Assemble.

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