Master of Business Administration- MBA Semester 2 MB0044 Production and Operations Management - 4 Credits (Book ID: B1133) Assignment

t Set - 1 (60 Marks)

Q1. Explain briefly the Computer Integrated Manufacturing? Computer Integrated Manufacturing, known as CIM, is the phrase used to describe the complete automation of a manufacturing plant, with all processes functioning under computer control and digital information tying them together. It was promoted by machine tool manufacturers in the 1980's and the Society for Manufacturing Engineers (CASA/SME). Quite often it was mistaken for the concept of a "lights out" factory. It includes CAD/CAM, computer-aided design/computer-aided manufacturing, CAPP, computer-aided process planning, CNC, computer numerical control machine tools, DNC, direct numerical control machine tools, FMS, flexible machining systems, ASRS, automated storage and retrieval systems, AGV, automated guided vehicles, use of robotics and automated conveyance, computerized scheduling and production control, and a business system integrated by a common data base. The heart of computer integrated manufacturing is CAD/CAM. Computer-aided design(CAD) and computer-aided manufacturing(CAM) systems are essential to reducing cycle times in the organization. CAD/CAM is a high technology integrating tool between design and manufacturing. CAD techniques make use of group technology to create similar geometries for quick retrieval. Electronic files replace drawing rooms. CAD/CAM integrated systems provide design/drafting, planning and scheduling, and fabrication capabilities. CAD provides the electronic part images, and CAM provides the facility for toolpath cutters to take on the raw piece. The computer graphics that CAD provides allows designers to create electronic images which can be portrayed in two dimensions, or as a three dimensional solid component or assembly which can be rotated as it is viewed. Advanced software programs can analyze and test designs before a prototype is made. Finite element analysis programs allow engineers to predict stress points on a part, and the effects of loading.

Q2. What is automation? What are the kinds of automation? Automation is the use of control systems and information technologies to reduce the need for human work in the production of goods and services. In the scope of industrialization,

automation is a step beyond mechanization. Whereas mechanization provided human operators with machinery to assist them with the muscular requirements of work, automation greatly decreases the need for human sensory and mental requirements as well. Automation plays an increasingly important role in the world economy and in daily experience. Automation has had a notable impact in a wide range of industries beyond manufacturing (where it began). Once-ubiquitous telephone operators have been replaced largely by automated telephone switchboards and answering machines. Medical processes such as primary screening inelectrocardiography or radiography and laboratory analysis of human genes, sera, cells, and tissues are carried out at much greater speed and accuracy by automated systems. Automated teller machines have reduced the need for bank visits to obtain cash and carry out transactions. In general, automation has been responsible for the shift in the world economy from industrial jobs to service jobs in the 20th and 21st centuries.[1] The term automation, inspired by the earlier word automatic (coming from automaton), was not widely used before 1947, when General Motors established the automation department. At that time automation technologies were electrical, mechanical, hydraulic and pneumatic. Between 1957 and 1964 factory output nearly doubled while the number of blue collar workers started to decline

Types:Automated IT-Service Management / ITSM Process Automation :This is an umbrella term for solutions focused on supporting Service Management workflows, usually based on best practices and standards like ITIL or Cobit. Subordinated terms are Support Automation or Run-BookAutomation. Support Automation:Support Automation refers to software packages are focused on supporting the routine work of help desk personnel. Think of it as a kind of script integration in existing Service desk, CRM application or even in Knowledge Base Applications for Automated Self Service. Examples for this category are products like CA SupportBridge or mValent Integrity, which is focused on Change Management Automation. Run-Book-Automation:Products belonging to this category are very popular nowadays. They allow to define a set of ITSM-Workflows through a Graphical user interface. Good products offer a multitude of connectors and interfaces to existing ITSM suites like OpenView, Tivoli or Unicenter. Examples for this kind of products are Opalis Integration Server, BMC Realops or HP/Opsware/IConclude Opsforce. Policy-Based Automation:Certain Automation solutions such as Enigmatec are elevating the importance of rules to an higher level. By bringing in the term Policy the rules management gets

a more of the enterprise-style. Some solutions in the IT Process Automation area are providing a rich set of features for designing and managing policies. IT-Workload Automation:These concepts stem from early (mainframe) days of computing, where batch processing or job Scheduling were a big improvement, allowing operator to automate recurring tasks. Though modern products are highly evolutionized through offering multi platform compatibility, event-triggering, policy-based execution and configured to smart coloured visual GUIs. These products are gaining ground in modern service oriented environments and are represented through products from big vendors like CA/Cybermation and IBM Tivoli or smaller competitors like ASG and UC4 Data Center Automation:This is the hottest topic today, as companies have started to deploy myriad of servers into an extremely fast growing number of data centers all over the world, bringing high demand for automated tools to provision, change and manage vast numbers of components. Any of the large vendor offers such a tool or suite and you guessed it here is place, where the bucks go. HP know that story. Products in this category are former Opsware Server Automation System, BMC BladeLogic, IBM Tivoli Provisioning Manager and to bring in some cloudy haze modern and cool products/players like Elastra or 3Tera/Applogic which allow to mix data center and cloud offerings Q3. What are the factors that influence the plant location Factors influencing plant location:1. Nature of the product: The nature of the product to be manufactured will significantly affect the layout of the plant. Stationary layout will be most suitable for heavy products while line layout will be best for the manufacture for the light products because small and light products can be moved from one machine to another very easily and, therefore, more attention can be paid to machine locations can be paid to machine locations and handling of materials. 2. Volume of production: Volume of production and the standardization of the product also affect the type of layout. If standardized commodities are to be manufactured on large scale, line type of layout may be adopted. 3. Basic managerial policies and decisions: The type of layout depends very much on the decisions and policies of the management to be followed in producing the commodity with regard to the size of plant, kind and quality of the product, scope for expansion to be provided for, the extent to which the plant is to be integrated, amount of stocks to be carried at anytime, the kind of employee facilities to be provided etc. 4. Nature of plant location: The size shape and topography of the site at which the plant is located will naturally affect the type of layout to be followed in view of the maximum utilization of the space available .For e.g., if a site is near the railway line the arrangement of general layout for receiving and shipping and for the best flow of production in and out the plant may be made by the side of the railway lines .If space is narrow and the production process is lengthy, the layout of plant may be arranged on the land surface in the following manner:

5. Type of industry process: This is one of the most important factors influencing the choice of type of plant layout. Generally the types of layout particularly the arrangement of machines and work centers and the location of workmen vary according to the nature of the industry to which the plant belongs. For the purpose of lay out, industry may be classified into two broad categories: (i) Intermittent and (ii) continuous. Intermittent type of industries is those, which manufacture different component or different machines. Such industries may manufacture the parts, when required according to the market needs. Examples of such industries are shipbuilding plants. In this type of industry functional layout may be the best. The second type of industry in continuous industry. in this type of industry raw material are fed at one end and the finished goods are received at another end. A continuous industry may either be analytical or synthetic. A analytical industry breaks up the raw material into several parts during the course of production process or changes its form, e.g. oil and sugar refineries. A synthetic industry on the other hand mixes the two or more materials to manufacture one product along with the process of production or assembles several parts to get finished product. Cement and automobiles industries are the examples of such industry. Line layout is more suitable in continuous process industries. 6. Types of methods of production: Layout plans may be different according to the method of production proposed to be adopted. Any of the following three methods may be adopted for production- (1) Job order production, (2) batch production, and (3) mass production. Under job production goods are produced according to the orders of the customers and therefore, specification vary from customer to customer and the production cannot be standardized. The machines and equipment can be arranged in a manner to suit the need of all types of customers. Batch production carries the production of goods in batches or group at intervals. In this type of manufacturing the product is standardized and production is made generally in anticipation of sales. In such cases functional or process layout may be adopted. In case of mass production of standardized goods, line layout is most suitable form of plant layout. 7. Nature of machines: Nature of machines and equipment also affects the layout of plants. If machines are heavy in weight or create noisy atmosphere, stationery layout may reasonably be adopted. Heavy machines are generally fixed on the ground floor. Ample space should be provided for complicated machines to avoid accidents. 8. Climate: Sometimes, temperature, illumination and air are the deciding factors in the location of machines and their establishments. For example, in lantern manufacturing industry, the spraypainting room is built along the factory wall to ensure the required temperature control and air expulsion and the process of spray painting may be undertaken. 9.Nature of material: Design and specification of materials, quantity and quality of materials and combination of materials are probably the most important factors to be considered in planning a layout. So, materials storage, space, volume and weight of raw materials, floor load capacity, ceiling height, method of storing etc. should be given special consideration. This will affect the space and the efficiency of the production process in the plant. It will facilitate

economic production of goods and prompt materials flow and soundly conceived materials handling system. 10. Type of machine: Machines and equipment may be either general purpose or special purpose. In addition certain tools are used. The requirements of each machine and equipment are quite different in terms of their space; speed and material handling process and these factors should be given proper consideration while choosing out a particular type of layout. This should also be considered that each machine and equipment is used to its fullest capacity because machines involve a huge investment. For instance, under product layout, certain machines may not be used to their full capacity so care should be taken to make full use of the capacity of the machines and equipment. 12. Human factor and working conditions: Men are the most important factor of production and therefore special consideration for their safety and comforts should be given while planning a layout, specific safety items like obstruction-free floor, workers not exposed to hazards, exit etc. should be provided for. The layout should also provide for the comforts to the workers such as provision of rest rooms, drinking water and other services etc. sufficient space is also to be provided for free movement of workers. Q4. Describe the seven basic quality control tools? Quality pros have many names for these seven basic tools of quality, first emphasized by Kaoru Ishikawa, a professor of engineering at Tokyo University and the father of quality circles. Start your quality journey by mastering these tools, and you'll have a name for them too: "indispensable."

Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible causes for an effect or problem and sorts ideas into useful categories. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes. Control charts: Graphs used to study how a process changes over time. Histogram: The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. Pareto chart: Shows on a bar graph which factors are more significant. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a relationship. Stratification: A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace stratification with flowchart or run chart).

Q5. Define project management. Describe the five dimensions of project management.? What is a project? Project management is the way of managing change. Everything from the Olympics to organising a wedding can be considered a project. It describes the activities that meet specific objectives and can be used to introduce or improve new or existing products and services. The APM definition of a project identifies two of the key features: Uniqueness Projects are separate to business-as-usual activities, requiring people to come together temporarily to focus on specific project objectives. As a result, effective teamwork is central to successful projects. Transience A project has a specific start and end point and is set up to meet specific objectives, to create a specified result, product or service. Scope - time, cost and quality Projects need to be controlled to meet their objectives and deliver benefits. Objectives are defined in terms of expectations of time, cost and quality.

Time, cost and quality are called objectives or constraints. For example:

The project must be completed by January 2013 (time). The project must not spend more than 500,000 (cost). The project should create a searchable and informative website (quality). All the work that has to be done to achieve the time, cost and quality objectives defines the project scope. The scope can change over time, and it is the project managersresponsibility to

ensure the project will still deliver its defined benefits. A project manager must maintain focus on the relative priorities of time, cost and quality. What is project management? Project management focuses on controlling the introduction of the desired change. This involves:

Understanding the needs of stakeholders. Planning what needs to be done, when, by whom, and to what standards. Building and motivating the team. Coordinating the work of different people. Monitoring work being done. Managing any changes to the plan. Delivering successful results. For further information on project management see Starting Out in Project Managementand the APM Body of Knowledge. The APM Glossary is a good source of definitions, andregular events are held that specialise in a wide range of project management topics. Q6. What is meant by Supply Chain Management (SCM)? What are the objectives of SCM? A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources,raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may reenter the supply chain at any point where residual value is recyclable. Supply chains link value chains In the 1980s, the term Supply Chain Management (SCM) was developed[5] to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers being those that provide products, services and information that add value for customers and other stakeholders. The basic idea behind the SCM is that companies and corporations involve themselves in a supply chain by exchanging information regarding market fluctuations and production capabilities. If all relevant information is accessible to any relevant company, every company in the supply chain has the ability to help optimize the entire supply chain rather than sub optimize based on a local interest. This will lead to better planned overall production and distribution which can cut costs and give a more attractive final product leading to better sales and better overall results for the companies involved.

Incorporating SCM successfully leads to a new kind of competition on the global market where competition is no longer of the company versus company form but rather takes on a supply chain versus supply chain form. Objectives:

Enhancing Customer Service Expanding Sales Revenue Reducing Inventory Cost Improving On-Time Delivery Reducing Order to Delivery Cycle Time Reducing Lead Time Reducing Transportation Cost Reducing Warehouse Cost Reducing / Rationalize Supplier Base Expanding Width / Depth of Distribution