1

Spring 2014

MBA Semester 2

MB0044 - PRODUCTION AND OPERATION MANAGEMENT


Q1. Explain briefly elements of operations strategy?

Elements of operation strategy

Operations strategy comprises six components:

Positioning the production system,- It involves selecting the product design, the production
system and the inventory policy for the finished goods for each product line

A) Product Focused- Generally employed in mass production organizations, where there
are groups of machine, tools and workers arranged according to their respective tasks in
order to put together a product.

B) Process Focused-It is designed to support production departments that perform a single
task like painting or packing. These system are highly flexible and can easily be modified to
support other product design.

2. Focus of factories and service facilities
3. Product/Service design and development.

4. Technology selection and process development,- Thorough analysis and planning of the
production processes and facilities. Every step in the process of production is planned in
detail. The technology to be used in the production process is selected from range of options
5, Allocation of resources to strategic alternatives- Production companies have to
continuously deal with the problem of scarce resources like capital, machine and materials
and so on. As these resource inputs are vital to production activities, their shortages can
influence production performance significantly. Hence the operation manger have to plan the
optimal use of resources, both in terms of minimizing wastage, and in terms of their
allocation to the best strategic use.

6. Facility planning.

The location of the production facilities is one of the key decisions an operation manager has
to make since it is critical to the competitiveness of the organization.

Setting up production facilities with adequate capacity involves massive initial investment.
Strategically right options should be carefully weighted against all available alternatives.
These decisions also influence the future decisions on probable capacity expansions plans.
Operation managers also make decisions, i.e. decision on internal arrangement of workers
and department within the facility.


Q2. Describe the general factors that influence the plant location decision.

Factors influencing Plant Location can be broadly divided into two types namely: general
factors and special factors.

2


General factors

The general factors that influence the plant location are listed below

Availability of land: Availability of land plays an important role in determining the plant
location. Many-a-time, our plans, calculations and forecasts suggest a particular area as the
best to start an organisation. However, availability of land may be in question. In such cases,
we will have to choose the second best location.
Availability of inputs: While choosing a plant location, it is very important for the
organisation to get the labour at the right time and raw materials at good qualities. The plant
should be located:
Near to the raw material source when there is no loss of weight
At the market place when there is a loss of weight in the material
Close to the market when universally available, so as to minimise the transportation
cost

Closeness to market places: Organisations can choose to locate the plant near to the
customers market or far from them, depending upon the product they produce. It is
advisable to locate the plant near to the market place, when:

The projection life of the product is low
The transportation cost is high
The products are delicate and susceptible to spoilage
After sales services are promptly required very often

The advantages of locating the plant near to the market place are:

Consistent supply of goods to the customers
Reduction of the cost of transportation

Communication facilities: Communication facility is also an important factor which
influences the location of a plant. Regions with good communication facilities viz. Postal and
Tele communication links should be given priority for the selection of sites.

Infrastructure: Infrastructure plays a prominent role in deciding the location. The basic
infrastructure needed in any organisation are:

Power: For example, industries which run day and night require continuous power
supply. So they should be located near to the power stations and should ensure
continuous power supply throughout the year.
Water: For example, process industries such as, paper, chemical, and cement,
requires continuous water supply in large amount. So, such process industries need
to be located near to the water.
Waste disposal: For example, for process industries such as, paper and sugarcane
industries facility for disposal of waste is the key factor.

3


Q3. Write short notes on
Total productive Maintenance
GNATT Chart
Bullwhip effect in SCM
Scheduling in services



Q4. Explain the steps and tools for changing project management process.


Q5. Under capacity options the company decides to vary the production output by
varying the time, workforce or outsourcing. What are the basic capacity options a
company can choose to meet demand?


Q6. Write short notes on:
Relevance of Value Engineering in manufacturing
Vendor Managed inventory
Rating methods for locating a plant
Importance of business process modelling







Remaining answers are available in the full assignments.


For full assignments contact us:

Global Education

Rajdeep: 098662 48187 / 077958 40110

Email: support@smuassignments.com /

global.education.smu@gmail.com

Website: www.smuassignments.com

Note: Paid assignments will be in word format without any water mark as per SMUs new
requirement.