Master of Business Administration-MBA Sem.

MB0028 Production & Operations Management

Assignment set-1

Q1 Explain the various automated systems for transfer of materials in the production
plant? Illustrate your answer by considering an example of an automobile showroom?

Ans: Basically, automation system comes to reduce labour power and time in the production.
Here we can see the evolution systems with some examples. The goods requited by society were
produces in small quantities by craftsman who would know the need of the community and
produced them by their own hands with simple tools. The apprentices or by another craftsman,
who would make them to meet the requests made.

The parts and components used to make these machines had to be replaced when they wore
making parts so that interchangeability was achieved made setting up standards and
specifications important for meeting

The craftsmen gave way to engineers, workers, superiors and inspectors. Division of labour
became necessary to achieve efficiencies and the jabs that became specialized. Competition has
necessitated improved quality, reduced sates and better services to the customer.

Automation systems cost huge sums of money and therefore a deep analysis of the various
factors has to be done. For services, automation usually means labour saving devices in
education, long distance learning technology helps in supplementing class room instruction. The
facilitating goods that are used are web site and videos.

Automation in the banking sector has resulted in ATMs which same the banks a huge amount
customer satisfaction. Automation is ideas when the service provided or the product
manufactured is highly standardized.

Some extent of automation can be designed even with customization i. e. product or service a
meant to produce or deliver low volume specific to a requirement. The advantages of automation
is it has low variability and will be more consistent on a repetitive basis

The machines have sensing and control devices that enable them to operate automobile. The
simplest of them called machine attachments replace human effort. They guide, locate, move and
achieve revise position by means of came, optical sensing. Load sensing mechanisms and
activate the controls to remove human intention.

Robots are higher in the order of automation as they perform a variety of tasks. They are
designed to move movements according to programmers written into the computer that inside
them.
With the help of automation, inspection of component can be done 100% ensures highest quality
identification and movement of materials are helped by bar codes which are read and fed into the
system far monitoring quantity, location, movement etc. They help the automated systems to
start information and provide information for effecting any changes necessary. To make effective
use of automated machines, we need to have the movement of materials from and to different
time as stores, automated, Automated storage and Retrieval systems- ASRS- receive orders for
materials from anywhere in the production area, collect materials in the works times. Computers
and information systems are used for placing orders for matters, give commands adjust inventory
records which show the location and quantity of materials needed.

Automated guided vehicle systems- AGVS are pallet trucks and unit load carriers follow
embedded guide wires or paint strips to destinations as programmed.

In an automobile showroom we can see all the work automatically with latest machine

Q2. State the important considerations for locating an automobile plant? Collect
information on layout planning of an automobile plant from various sources and furnish
the same.

Ans : To locate an automobile company or plant many thing should be consider. For an
automobile plant automated flaw lines, automated assembly lines, flexible manufacturing
systems, global transition rapid prototyping. Building manufacturing flexibility things are
necessity.

About the automated flow lines we can say it is a machine which is linked by a transfer system
which moves the parts by using handling machines which are also automated, we have an
automated flow line.

Human intervention ma is needed to verify that the operations ate taking place according to
standards. When these cab be achieved with the help of automation and the processes are
conducted with self regulation, we will have automated flow lines established.

In fixed automation or hard automation, where one component is manufactured using services
operations and machines it is possible to achieve this condition. We assume that product life
cycles are sufficiently stable to interest heavily on the automate flow lines to achieve reduces
cast per unit.

Product layouts ate designed so that the assembly tasks are performed in the sequence they are
designed at each station continuously. The finished item came out at the end of the line.

In automated assembly lines the moving pallets move the materials from station to station and
moving arms pick up parts, place them at specified place and system them by perusing, riveting,
& crewing or even welding. Sensors will keep track of there activities and move the assembles to
the next stage.
The machines are arranged in a sequence to perform operations according to the technical
requirements.

The tools are loaded, movements are effected, speeds controlled automatically without the need
for workers involvement.

The flexibility leads to better utilization of the equipments. It reduces the numbers of systems
and rids in reduction of investment as well as a space needed to install them. One of the major
cancers of modern manufacturing systems is to be able to respond to market
Demands which have uncertainties.

Prototyping is a process by which a new product is developed in small number so as to determine

the suitability of the materials, study the various methods of manufactured, type of machinery
required and develop techniques to over come problems that my be encountered when full scale
manufacture is undertaken.

Prototypes do meet the specification of the component that enters a product and performance can
be measured on these.

It helps in con be reforming the design and any shortcomings can be rectified at low cost.

Flexibility has three dimensions in the manufacturing field. They are variety, volume and time.
There demands will have to be satisfied. In that sense they become constraints which restrict the
maximization of productivity. Every business will have to meet the market demands of its
various products in variety volumes of different time.

Flexibility is also needed to be able to develop new products or make improvements in the
products fast enough to cater to shifting marker needs.

Manufacturing systems have flexibility built into them to enable organization meet global
demand. You have understood how the latest trends in manufacturing when implemented help
firms to stay a head in business.

Q3 . Who are the players in a project management? What are the various roles and
responsibilities of the players in a project management?

Ans : At first we will discuss about project management then we will discuss about players in
project management. Project management is the practice of controlling the use of resources, such
as cost, time manpower, hardware and software involved in a project. That starts with a problem
statement and end with delivery of a complete product.

Here we will see the participants of project management:

In the project management players individual and organizations both are involved-

That is actively involved in the project whose interests may be affected by the outcome of the
project.
Exert influence over the project and its results players or also called stake holders of the
project
Project manager- the individual responsible for managing the project.

Customer- the individual or organization that will use the product- the end result of the project.

Performing organization- the enterprise whose employees are mast directly involved in doing the
work of the project.

Sponsors- the individual or group within or external to the performing organization that funds the
project.

Now, we will define the role and responsibilities of project management. Here are some roles
and responsibilities:

There are number of projects which an organization works on. It is not possible for one
individual to manage all the projects.
There is a team of mangers who manage the projects.

There may be different teams working an different projects.

An experienced project manager and this team may manage more than one project at a time.

The project team is responsible for ensuring that the project upon completion shall deliver the
gain in the business for which it is intended for.

-the project team has to properly co-ordinate with each other working on different aspects of the
project.

-the team members are responsible for the completion of the project as per the plans of the
project.

Characteristics of project mindset: - some of the characteristics of project mindset are the
following

Time - it is possible to improve the pace of the project by reducing the time frame of the process.
The mindset is normally to work in a comfort made by stretching the time limits.

Responsiveness it refers to quickness of response of an individual. The vibrancy and livens of

an individual or an organization are proportional to its capability of evolving process and
structure for superior responsiveness time constant.

Information sharing information is owner information is the matter key to todays business.
Information sharing is the characteristic of the project mindset today.

Process project mindset lays emphasis on flexible process. The major difference in a process
and a system is in its capabilities of providing flexibility to different situational encounters.
Flexible process possesses greater capabilities of adaptability.

Structured planning structure planning based a project management life cycle enables one to
easily and conveniently work according to the plan.

Q4. What are the various steps in project monitoring and controlling a project?

Ans : Here we elaborate the project monitoring and control.

Any project aimed at delivering a product or a service has to go through phases in a planned
manner in order to meet the requirements. It only by careful monitoring of the project progress. It
required establishing control factors to keep the project on the track of progress. The results of
any stage in a project, depends on the inputs to that stage. It is therefore necessary to control all
the inputs and the corresponding outputs from a stage. A project management may use certain
standard trolls to keep the project on track. The project manager and the team members should
be fully aware of the techniques and methods to rectify the factors influencing delay of the
project and its product. The methodology of PERT (programmer Evolution Review Technique)
and CPM (critical path method) may be used to analyze the project. In the PERT method one car
find out the variance and use the variance to analyze the various probabilistic estimates
pertaining to the project. Using the CPM one can estimate the start time and the finish time for
every event of the project in its WBS (work Breakdown Structure).

The analysis charts can be used to monitor, control, track and execute a project. Typical PERT/
CPM exercise of a project are worked out at the end of this sub unit- 9.2. The various steps
involved in monitoring and controlling a project from start to end are as follows-

1. Perlirninary work- the team members understand the project plans, project stage schedule,
progress controls, tracking the dules. Summary of the members have to understand the tolerances
in any change and maintain a change control log. They must realize the need and importance of
quality for which they have to follow strictly quality agendas. They must understand the stage
status reposes, stage and reports, stage end approval reports.

2. Project progress- The members must keep a track of the project progress and communication
the same to other related members of the project. They must monitor and control project
progress, through the use of regular check points, quality charts. Statistical tables, control the
quality factors which are likely to deviate from expected values as any deviation may result in
change to the stage she duel

3. Stage control- The manager must establish a project check paint cycle. For this suitable stage
version control procedure may be followed.

4. Resources- Plan the resources required for various stage of the project. Brief both the project
team and the key resources about the objectives of every stage, planned activities, products,
organization. Metrics and project controls.
5. Quality control- This is very important in any project: Quality control is possible if the project
members follow-

Schedule quality review, Agenda for quality review, conduct quality review and follow up.

6. Progress control- It is the main part at assessment-

Progress control assesses- monitor performance, update schedule, update casts, Re-plan stage
schedule, conduct team status review etc.

Along with we create status report, create flash reports, project status reports etc.

7. Approvals - lastly, project sage reviews and the decisions taken and actions planned need to be
approved by the top management. The goals of such review are to improve quality by finding
defects and to improve productivity by finding defects in a cost effective manner. The group
review progress includes several stage like planning, preparation and overview, a group review
meeting and rework recommendation and follow-up.

Q5. Explain the necessity and objectives of SCM?

Ans : SCM is the abbreviation of supply chain Management. It is considered by many express
worldwide as the ultimate solution towards efficient enterprise management.

Now, we explain the necessity and objectives of SCM-

SCM is required by and enterprise as a tow to enhance management effectiveness with a

following organizational objective:
Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP, Accounting. Software and
Documentation like financial reports statements ISO 9000 Documents etc.

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communication systems, documentation

system and secure, Design R&D systems etc.

Better utilization of resources- men, material, equipment and money.

Optimization of money flow cycle within the organization as well as to and from external
agencies.

Enhancement of value of products, operations and services and consequently, enhancements of

profitability.

Enhancement of satisfaction level of customer and clients, supporting institutions, statutory

control agencies, supporting institutions, statutory control agencies, suppliers and vendors,
employees and executives.

Enhancement of flexibility in the organization to help in easy implementation of schemes

involving modernization, expansion and divestment, merges and acquisitions.

Enhancement of coverage and accuracy of management information systems.

With the objectives of SCM its implementation are required. Implementation is in the form of
various functional blocks of an organization interpenetrated through which a smooth flow of the
product development is possible.

A relatively new SCM option involves web based software with a browser interface. Several
electronic marketplaces for buying and selling goods and materials.

Q6. What are the steps involved in SCM implementation?

Ans : There is many steps which involved in SCM implementation are- Business Process, sales
and marketing. Logistics, costing, demand planning, trade- off analysis, environmental
requirement, process stability, integrated supply, supplier management, product design, suppiers,
customers, material specifications, etc.

Some important aspect of SCM-

The level of competition existing in the market and the impact of competitive forces on the
product development.

Designing and working on a strategic logic for better growth through value invention.
Working out new value curve in the product development along with necessary break point.

Using it to analyses markets and the economies in product design. Tine, customer, quality of
product and the concept of survival of fittest.
Steps of SCM principals:

Group customer by need: Effective SCM groups, customer by tietinct service meeds those
particular segment.

Customize the logistics networks: In designing their logistics network, companies need to focus
on the service requirement and profit potential of the customer segments identified.

Listen to signals of market demand and plan accordingly- sales and operations planners must
monitor the entire supply chain to detect early warning signals of changing customer demand and
needs.

Differentiate the product closer to the customer-companies today no longer can afford to stock
pile inventory to compensate for possible forecasting errors, instead, they need to postpone
product differentiation in the manufacturing. Process closer to actual customer demand.

Strategically manage the source of supply-by working closely with their key suppliers to reduce
the overall casts of owning materials and services; SCM maximizes profit margins both for
themselves, and their supplies.

Develop a supply chain wide technology strategy- as one of the cornerstones of successful SCM
information technology must be able to support multiple levels of decision making.

Adopt channel spanning performance measures- Excellent supply performance measurement

systems do more than just monitor internal functions. They apply performance criteria that
embrace bathe service and financial metrics, including as such as each accounts true profitability
 Master of Business Administration-MBA Sem.2

MB0028 - Production & Operations Management

Assignment set-2

Q1. Explain how material flow information helps in work centre decision. Consider the
example of a shopping centre to illustrate your answer.

Ans : The decision which involves during uses of material flow information has below-

A work center is a production facility comprising of one or more machines and one or more
workmen considered as a single unit for purposes of estimation of capacity. This unit may have a
single operation or a number of them conducted on the input items. In the pipeline of production,
each work centers contribution is vital as materials are scheduled, routed and loads to be sent to
it.

In most organization, they are even considered as cash centers. Location trust means relative
position of different centers so as to minimize the movement of materials, meet technological
sequences, to reduce congestion, maximize throughput, improve part tracking ability and avoid
repetitive movements. In addition another consideration is to provide for expansion of
production.

Each work center receives information along with material that enter it the material also leaves
the word center with information. The route sheet contains information about the material,
process, quantities, and inspection procedures. Etc. the drawings or instructions tell the condition
of the malarial of entry and the required condition at exit.

In this sense every operation consists of material transformation occurring on the basis of
information. Activities conducted are on the basis of information that flows with material.
Different locations have to accommodate the constraints of the basis of darning maximums
benefit of the information that is available. Basically, each location is determined on the basis of
from and to: where does it receive material goes. Some centers have to close as a matter of
necessity, some need not to be and some need to be as for away as possible.

This aspect has been given a rating scale in terms of alphabets as under:

Absolutely necessary to be close

Essential to be close
Ordinary closeness
Ordinary closeness
Unimportant that they are close or not
Not desirable that the centers are close

It can be seen that this is only a guide for Indian location as the work centers as there will many
competing factors that have to be accommodated.
Q2. What are the reasons for failure of a project? Give suitable examples.

Ans: Before knowing the reasons of failure we have to know about project.
Project is a set of activities which are networked in order and aimed towards achieving goal of a
project.

Now, the reasons are project failure:

Incidence of Project failure

Projects being initiated of random at all levels
Project objective not in line with business objective
Project management not observed
Project manager with no prior experience in the related project
Non- dedicated team
Lack of complete support from clients

Factors contributing to project success not emphasized:

Project objective in alignment with business objective

Working within the framework of project management methodology
Effective scoping planning, estimation, execution, controls and reviews, project bottlenecks
Communication and managing expectations effectively with clients, team merits and stake
holders
Prior expectance of PM in a similar project

Overview of information and communication Technologies (ICT) project:

Involve information and communication technologies such as the word wide web, e-mail, fiber-
optics satellites
Enable societies to produce, access, adapt and apply information in greater amount, more rapidly
and at reduce casts
Offer enormous opportunities for enhancing business and economic viability
Common problems encountered during projects
No prioritization of project activity from an organizational position
One or more of the stages in the project mishandled
Less qualified non-dedicated manpower
Absence of smooth flow of communication between the involved parties

These basic reasons lead a project to failures. In the project failures business management and
project management is directly involved. From the management point of view it is basic things to
care above topics to success of a project. Project is the core business of a company. In the MBA
assignment its role has been defined from the management prospective.

Q3. Explain the various phases in project management life cycle?

Ans: 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 project justification, details on what the
problem is a method 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 and the
project feasibility, and the risks involved in the project.

Project management life cycle is the integrated part of management. It is attach with project
responsibility or failure of a project. For the MBA assignments it is the most valuable chapter in
production management.

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.

Trade off analysis: To understand and examine the various alternatives which could be
considered.

Estimation: To estimate the project cost, effort requires for the project and functionality of
various process in the project.

System design: Choose a general design that can fusil the requirements.

Project evolution: Evaluate the project in terms of expected profit, cost and risks involved
marketing phase.

A project proposal is prepared by a group of people including the project manager. This proposal
has to contain the strategies adopted to market the product to the customers.

Design phase: This phase involves the study of inputs and outputs of the various project stages.

Execution phase: In this phase the project manager and the teams members work on the project
objectives as per the plan. At every stage during the execution reports are prepared.

Control Inspecting, Testing and Delivery phase during this phase. The project team works
under the guidance of the project manager. The project manager has to ensure that the team
working under his, implements the project designs accurately, the project manager has to ensure
ways of managing the customer, perform quality control work.

Closure and post completion analysis phase upon satisfactory completion and delivery of the
intended product or service the staff performance has to be evaluated. Document the lessons
from the project. Prepare the reports on project feedback analysis followed by the project
execution report.

The phase which involve in the above are:

The preparation stage involves the preparation and approval of project outline, project plan and
project budget.

The next stage involves selecting and briefing the project team about the proposals followed by
discussions on the roles and responsibility of the project member and the organization.

The project management life cycle:

A Life cycle of a project consists of the following:

Understanding the scope of the project

Establishing objectives of the project

Formulating and planning various activities

Project execution and

Monitor and control the project resources

Q4. What are the seven principles of SCM?

Ans: Seven principles of SCM are:

Group customer by needs- Effective SCM groups, customer by distinct service needs, regardless
of industry and then tailors services to this particular segment.

Customize the logistic network- In designing their logistics network; companies need to focus on
the service requirement and profit of the customer segments identified.

Listen to signals of market demand and plan accordingly- Sales and operations planners must
monitor the entire supply chain to detect early warning signals of changing customer demand and
needs. This demand driven approach leads to more consistent forecast and optimal resource
allocation.

Differentiate the product closer to the customer- companies today no longer can afford to stock
pile inventory to compensate for possible forecasting errors. Instead, they need to postpone
product differentiation in the manufacturing process closer to actual consumer demand. This
strategy allows the supply chain to respond quickly and cost effectively to change in customer
needs.

Strategically manage the sources of supply- by working closely with their key suppliers to reduce
the overall costs of owning materials and services; SCM maximizes profit margins both for
themselves and their suppliers.

Develop a supply chain wide technology strategy- as one of the cornerstones of successful SCM
information technology must be able to support multiple levels of decision making. It also should
afford a clear view and ability to measure the flow of products, services and information.

Adopt channel spanning chain performance measures- Excellent supply chain performance
measurement system do more than just monitor internal functions. They apply performance
criteria to every link in the supply chain-criteria that embrace both service and financial metrics
Q5. Explain what is meant by bullwhip effect and how it could be prevented?

Ans: An organization will always have ups and downs. It is necessary that the managers of the
organization keep track of the market conditions and analyze the changes. They must take
decisions on the organization to meet the market demands. Failing to do so may adversely affect
the functioning of the organization resulting in lack of coordination and trust among supply chain
members. The changes may effect the information and may lead to demand amplification in the
supply chain. The bullwhip effect is the uncertainty caused from distorted information flowing
up and down the supply chain. This has its affect on almost all the industries, poses a risk to
firms that experience large variations in demand. And also these firms which are dependent on
suppliers, distributors and retailers.

A bullwhip effect may arises because of-

Increase in the lead time of the project due to increase in variability of demand
Increase in the stock to stock to accommodate the increasing demand arising out of complicated
demands models and forecasting techniques
Reduced service levels in the organization
Inefficient allocation of resources
Increased transportation cast

How to prevent it?

Bullwhip effect may be avoided by one or more of the following measures- Avoid multiple
demand forecasting
Breading the single orders into number of batches of orders

Stabilize the prices avoid the risk involved in overstocking by maintaining a proper stock
Reduce the variability and uncertainty in paint of sale (POS) and shaving information
Reduce the lead time in the stages of the project

Always keep analyzing the past figures and track current and future levels of requirements

Enhance the operational efficient and outsourcing logistics to capable and efficient agency

Q6. What do you understand by Line Balancing? What is the importance of order
picking in material handling? Give suitable examples.

Ans: Production lines have a number of work centers in a particular sequence so that the material
that gets proceed has to move further without encountering any bottlenecks. The quantities
produced the rate of production at each center, the number of operations and the total production
required are factors taken into account.

The purpose of taking place between work centers and minimum inventory gets created. We use
the principles of JIT and lean Manufacturing to achieve these. Linear programming, Dynamic
programming and other mathematical models are used to study these problems.

In order picking important pants are:

Order picking is a process by which items of products for supply is to be made haves to be
retrieved from specific storage location. It is found to take 60% of labour activities in the
warehouse. Since it is critical to the business to meet customers demand expeditiously and
accurately, lot of attention is being given to this aspect of operations. In the manufacturing arena,
we desire to move towards small lot sizes and cycle time reductions.

Efficient order picking is necessary for being competitive. In the supply chain Storage, retrieval
and delivery do not add value to the product, but are necessary.

Material Handling:

The purpose is to take the job through the technological steps in which the processing needs to
be done for the transformation that is to be effected on the material that is getting processed. The
major concerns are about the quantities that need to be processed and the time that the different
operations required. In case the product has to enter assembly, along with other parts that are
being manufactured parallel, will all the required parts arrive at that point at the same time. Some
components may be outsourced. To handle different parts, we have material handling equipments
such as cranes lifting forks, trucks etc.

The problem for the manager is the limited supply of these equipments and the need to optimize
utilization of the equipment and see that the manufacturing line has smooth flow. Our concern is
to reduced inventory, minimums movement and timely availability.