SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES 1 SEMESTER MID-SEM EXAMINATION MBA : 2008 - 2010 DIVISION A / B / C / D / E (TEST II) PRODUCTION &

p; OPERATION MANAGEMENT: PROF. MYSORE

ST

DAY & DATE : THURSDAY, 28 AUG. 08 TIMINGS : 10:30 AM TO 12:30 PM

TH

TOTAL MARKS : 20 TOTAL HRS. : 2

PREPARE THE PERT/ CPM CHART FOR THE FOLLOWING ACTIVITIES

Activity No ACTIVITY DESCRIPTION Depends on

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Conduct training on Increasing inventory turns and WIP mgt. at GE Pune Prepare a complete list of all the warehouses in the market Estimate the transportation time from factory warehouse to each warehouse in the market Define the mode of transport and the minimum quantity to be shipped from factory warehouse to market warehouse Estimate before the end of each month the expected sales of each variety of product from each marketing warehouse Define the method of calculating MINIMAX levels for each variety of product to be maintained at each marketing warehouse Calculate before the end of each month the MINIMAX levels of each variety of product at each marketing warehouse Define the method of communicating actual sales from each warehouse to factory warehouse. Identify the person from each marketing warehouse, who will communicate actual sales on regular basis to factory warehouse Identify the person from factory warehouse who will collect information from market warehouses on actual sales and compile the same Receive information on actual sales from each warehouse on regular basis Define the method of calculating MINIMAX levels of each variety of product at the factory warehouse Estimate the maximum quantity of production which can be credited to the finished goods warehouse every day / every week Define the method of calculating the MINIMAX levels of each variety of product at the factory warehouse Identify the person to monitor the stocks of each variety of finished goods at the factory warehouse on daily basis Monitor stock levels of each variety of product in factory F.G. warehouse and communicate to planning if the stock level of any variety is equal to or less than ROL Identify the person from planning department to receive information from F.G. stores and release shop order Receive information from F.G. stores and release shop order Identify the person from production to receive shop order

------1 2 3 1 1 3,4,5,6 1 1 1 8,9,10 1 1 5,12,13 1 11,14 1 16,17 1

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48

and release material for production Define a method of calculating total work load on all work centers Receive new shop order and calculate total work load on all work centers Identify the different work centers For each work center calculate the available working hours per shift /per week Compare the total work load with the hours available for production Identify the bottlenecks and/ or slowest operation Identify the person responsible for squeezing out maximum capacity out of bottlenecks Finalize the method of squeezing out maximum capacity out of the bottleneck resources Decide schedule of bottleneck resources To start with provide three days of inventory in front of the bottleneck resource Identify a person who will ensure that material is not released unless shop order exists and the material from bottleneck inventory buffer has moved further Ensure that the material from the bottleneck inventory buffer has moved further Release material to the first operation Credit finished goods to the finished goods stores Compare the quantity credited to F.G. stores with the shop order quantity If the quantity credited to F.G. stores is lesser than shop order quantity because of rejections get top management approval for release of excess material Communicate to the improvement group that lesser quantity is credited than planned Release excess material to credit balance quantity of shop order Credit balance shop order quantity to F.G. stores Close the shop order Improvements group to identify causes & initiate actions to prevent in future crediting the quantities lesser than the shop order quantities. Identify a person to calculate the time gap between the date of opening and the date of closing of the shop order Calculate the time gap between the date of opening and the date of closing the shop order Communicate to the improvement group the manufacturing cycle time Identify the methods to reduce the manufacturing cycle time Initiate actions to reduce manufacturing cycle time Monitor on regular basis the reduction in manufacturing cycle time Communicate on monthly basis to the top management the reduction in manufacturing cycle time Reduce finished goods inventory at factory F.G stores

1 18,19,20 1 22 21,23 24 1 26 25,27 28 1 29,30 31 32 33 33 34 35 37 38 36 1 39,41 42 43 44 45 46 47

49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

according to reduction in manufacturing cycle time Prepare a complete list of raw material and bought out components Estimate the lead time for each variety of raw material and bought out components Calculate at the end of each month the MINIMAX levels of raw material and bought out components to be maintained for the next month Compare the stock on hand with re-order level for each variety of raw material and bought out component on daily / regular basis When stock on hand plus pending purchase order is less than or equal to re-order level communicate the requirements to the purchase department Place purchase order Receive material in companys stores after inspection Close the purchase order Calculate the time gap between the date of opening and the date of closing the purchase order to calculate the major portion of lead time Identify the items and their suppliers for which lead time is high Offer training to the suppliers who have high manufacturing cycle time Monitor the performance of those suppliers who have high manufacturing cycle time after the training till the lead time is reduced compared to other supplier of the other item Repeat the activities 58, 59 and 60 on the regular basis Identify the items having high annual usage Train the suppliers of high priced items on how to drop cost by increasing inventory turns Get price reduction from such suppliers Communicate to the top management on the monthly basis the reduction in procurement lead time Communicate to top management on regular basis the price reduction obtained from suppliers Reduce raw material and the bought out components inventory on the regular basis in accordance with reduction in procurement lead time Establish the method of evaluating the total inventory Calculate on the monthly basis total inventory as the percentage of total sales Communicate to the top management on the monthly basis the reduction in inventory as the percentage of total sales

1 49 50 51 52 53 54 55 56 57 58 59 60 49 62 63 61 64 60 1 68 69

**********