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MB0028 Production and Operations Management

MB0028 Production and Operations Management

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Subject code: MB0028 (3 credits) Set 1 Marks 60 SUBJECT NAME : PRODUCTION & OPERATIONS MANAGEMENT Note: Each Question carries 10 marks
1. Explain the various automated systems for transfer of materials in the production plant?

Illustrate your answer by considering an example of an automobile showroom.
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. 2. 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.
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 worker’s 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.


Who are the players in a project management? What are the various roles and responsibilities of the players in a project management?
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 involvedThat 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 today’s 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.


What are the various steps in project monitoring and controlling a project?
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 follows1. 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 member’s followSchedule quality review, Agenda for quality review, conduct quality review and follow up. 6. Progress control- It is the main part at assessmentProgress 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.

Monitoring and Controlling cycle


Explain the necessity and objectives of SCM?
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 SCMSCM 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.


What are the steps involved in SCM implementation?
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 SCMThe 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.

Subject code: MB0028 (3 credits) Set 2 Marks 60 SUBJECT NAME : PRODUCTION & OPERATIONS MANAGEMENT Note: Each Question carries 10 marks 1. Explain how material flow information helps in work centre decision. Consider the
example of a shopping centre to illustrate your answer.

The decision which involves during uses of material flow information has belowA 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 center’s 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 Essential Ordinary Ordinary Unimportant Not desirable that that they the closeness are close centers or are not close necessary to to be be close close closeness

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. 2. What are the reasons for failure of a project? Give suitable examples. 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 Now, Incidence Projects Project Project being objective the of reasons of initiated not in management of line are Project random with not at business all a project project. failure: failure levels objective observed

Project NonLack Factors Project Working

manager of




experience support




project team clients

dedicated complete to in project alignment of from not business management

contributing objective within the

success with project

emphasized: objective methodology


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

Overview of information and communication Technologies (ICT) project: Involve information and communication technologies such as the word wide web, email, more Common No One Less prioritization or more rapidly problems of of qualified project the fiber-optics and at encountered activity stages from in an the reduce during organizational project satellites casts projects position manpower mishandled Enable societies to produce, access, adapt and apply information in greater amount, Offer enormous opportunities for enhancing business and economic viability


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.

3. Explain the various phases in project management life cycle? 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 The chapter important tasks of in this production phase are as management. 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 the phase which project involve in execution the above report. 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 A Life

project cycle of the a

management project scope of planning execution

life consists of of

cycle: the the the following: project project activities and

Understanding Establishing Formulating Project

objectives and


Monitor and control the project resources 4. What are the seven principles of SCM?
SevenprinciplesofSCMare: 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.

5. Explain what is meant by bullwhip effect and how it could be prevented? 6.
What do you understand by Line Balancing? What is the importance of order picking in material handling? Give suitable examples.

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