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MB 0044 Production and Operation Management Semester 2 MBA SMU WINTER 2014

MB 0044 Production and Operation Management Semester 2 MBA SMU WINTER 2014

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Dear students to get solved assignments of SMU MBA WINTER 2014 call us at 8510092683 or mail us at mhanda74@gmail.com
Dear students to get solved assignments of SMU MBA WINTER 2014 call us at 8510092683 or mail us at mhanda74@gmail.com

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Dear students to get solved assignments of SMU MBA WINTER 2014 call us at 8510092683 or mail us at
MB 0044 - PRODUCTION AND OPERATION MANAGEMENT
 
1. What is value engineering? List the main benefits of value engineering?
 Answer:
 Value Engineering (VE) or Value Analysis is a methodology by which we try to  find substitutes for a product or an operation.
2. Case study: SABMiller revamps supply chain management SABMiller, the $24bn global brewing giant, is revamping its supply chain management system to reduce stock-outs caused by an increasingly complex and hard to predict market.
 The firm is developing and testing the new system in South Africa with an eye on rolling it out to group companies worldwide, says SABMiller programme manager Rudi van Schoor. The trigger for the revamp came when the company's customers ran out of stocks of popular SABMiller brands during peak periods in two consecutive years, 2007 and 2008. The shortfall on some brands was as high as 22%. "That had a direct impact on the bottom line," Van Schoor says. Given SABMiller's ambition to be the world's most efficient producer, such a gap was never going to be tolerated. But instead of addressing the symptom, it called in management consultancy McKinsey to look at the entire supply chain system to see where it could be improved and future stock-outs avoided. The study revealed a complex situation, one that wasn't susceptible to a "quick fix", Van Schoor says.
Demand factors
The ethnically and demographically diverse South African market is one of the world's most complex and fast-changing. Van Schoor cites economic growth, more disposable income in new hands, changing and upgrading tastes, new product development and new routes to market among the factors that influence demand for SABMiller's products. Add to that big event such as the British Lions tour and the 2010 World Cup, and climate change, and the picture becomes more complex.
 
"Our brands are the same as any other brand, especially those at the luxury end," says Van Schoor. "If the customer comes into the shop and can't find our product, he or she has the disposable income and self-confidence to substitute our brand for our competitors'. That's dangerous." Van Schoor says the group has a average stock availability target of 98%. "But for some premium brands the target is 100%," he says. That means it will live with excess stocks of some products, just to ensure that a thirsty customer can get his or her favourite drink, every time.
Maximize profitability
But SABMiller also wants to maximize its profitability. To do all this it must integrate information from a lot of sources. These include sales forecasts for about 2,600 sku locations or depots for the brewing division and 3,100 for the soft drinks division, as well as planned promotions data from the marketing and promotions division, as well as cost and production data, among others. These data must then be converted into raw material purchases, manufacturing scheduling, distribution and stockholding plans for 12 factories (seven breweries and five soft drink plants) and three tiers of distributors, broken down into between 70 and 80 stock-keeping units (skus) for the brewing division and around 270 for soft drinks. And all this must be optimised for profit. "There is inherent volatility of demand in the soft drinks business because of seasonal change, but less in the beer market," Van Schoor says. Even so, improving the accuracy of demand forecasts and schedules and integrating
them to boost profitability was too complex for SABMiller’s demand forecast and supply
system. The in-house system, developed over years, had most of the usual problems associated with legacy systems: it was inflexible, complex, hard to communicate with, and hard to integrate with newer systems, Van Schoor says.
Integration with SAP system
After a global search, SABMiller settled on Infor's advanced supply chain management system, in particular Infor's demand forecasting system. This takes information from modules of SABMiller's SAP enterprise resource management system, integrates them with sales forecasts from the field, and feeds back to the manufacturing resource planning system and financial systems to generate production schedules, raw materials orders and volume and financial forecasts. This will let SABMiller make any of its products in the most cost-effective location, given the local demand, manufacturing, transport and inventory costs. It will also increase its flexibility in responding to changes in demand. Products will no longer be made only in a single plant to optimise production runs, but, based on more holistic data, in the plants that optimise overall profitability.
 
This flexibility also gives the company greater cover to handle factory downtime and to meet rapid changes in demand. But some parts of the legacy system will still be around. "We are keeping it to manage the return and reuse of empty bottles," Van Schoor says. But even that data will go into the Infor system so that it can create production schedules down to tank, line and minute accuracy. This attention to detail is part of the SABMiller ethos. Measurement and numbers are integral to the company culture. Van Schoor says the Infor system will be tested in three ways: on its "theoretical" answers, against actual results, and against causal factors that may have influenced demand and supply. Van Schoor says the $1.2m the firm spent on Infor licenses was about 60% of the total project cost. But this could be a drop in the ocean if the company adopts it worldwide. And interest from group firms is high. "We have used expertise from all around the group," Van Schoor says. "One of the best people on the project came from our European division, and we have lots of others keen to know how we do." (Source: http://www.computerweekly.com/feature/Case-study-SABMiller-revamps-supply-chainmanagement) Why did SABMilller revamp its supply chain? Describe the domain application used for SCM integration?
3 Write short notes on: (a)Ingredients of a business process:
 
 Answer:
 
The ingredients that might be used in a business process can be briefly outlined as follows:
(b) Acceptance sampling:
 Acceptance sampling is also known as end of line inspection and categorising the products based on sample based inspection.
(c) Work Breakdown Structure:
The entire process of a project may be considered to be made up on number of sub process placed in different stage called the Work Breakdown
(d) Productivity
Productivity is generally expressed as the ratio of outputs to inputs.
4 Collaborative Forecasting Running Smoothly at Brooks Sports
Brooks Sports designs and develops high-performance running footwear, apparel and accessories which are sold in 80 countries worldwide. In 2001, when the company shifted from a broad product line to focus on high-performance products targeted at serious runners, it was clear that the forecasting process needed to change to support

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