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Write short notes on:

Outsourcing strategies for capital productivity

Implementation of operations

Basic competitive priorities

Market survey method of forecasting


Outsourcing strategies for capital productivity:

Capital Productivity is Capital deployed in plant, machinery, buildings, and the

distribution systems as well as working capital are the components of the cost of
manufacturing. Outsourcing strategies when capacity requirements are determined,
it is easy to figure out whether some goods or services can be outsourced.
Outsourcing can reduce the capital and manpower requirements. Also, the available
capacities can be used to augment the core competencies thus reducing the cost of
the product or service to the customer. Further, outsourcing also helps in improved
product design and even enables better networking and collaborations. However,
lack of expertise, quality considerations, nature of demand, and cost factors may
restrict outsourcing.
Lack of expertise The outsourced firm may not have the requisite expertise to do
the job required.
Quality considerations Loss of control over operations may result in lower quality.
Nature of demand This affects the business, especially if no production facilities
are built in the organization.
Cost It may not be worthwhile when the fixed costs that go along with making the
product does not get reduced considerably.

Implementation of operations:

Implementation of operations Implementation is the operations. When planning and

controlling functions Implementation of Operations.
process of executing the planned are put together, we call it as

Fig: Implementation of operations

Estimating Estimating gives the quantities to be made at each workstation
depending on the sales forecast, provision for buffer stock, quantities bought out,
services outsourced, likely shortfalls, and others. It is made on the basis of capacity.
Routing Routing determines the sequence of operations and the machines that do
them, so that work flow, as determined by the processes, is smooth resulting in
minimum inventory.
Scheduling Scheduling is mainly concerned with allocating time slots for different
Dispatching Dispatching is concerned with moving of the materials with tools, jigs,
and fixtures to specific machines along with the drawings and ensuring inspections
at specific nodes, so that the materials move in the supply chain.
Expediting Expediting ensures that all the above are being done properly. Reports
are generated and any bottleneck that gets created is removed.

Basic competitive priorities

The basic competitive priorities are:

1. Cost






Cost: Cost is one of the primary considerations while marketing a product or

a service

Quality: Quality is defined by the customer. The operations manager looks

into two important aspects namely high performance design and consistent quality.

Time: Faster delivery time, on-time delivery, and speedy development cycle
are the time factors that operations strategy looks into.

Flexibility: Flexibility is the ability to provide a wide variety of products, and it

measures how fast the manufacturer can convert its process line used for one
product to produce another product after making the required changes.

Market survey method of forecasting:

Market surveys Conducting surveys among the prospective buyers or users are a
very old method of forecasting. Here, a questionnaire is prepared and circulated
among the people and their responses are obtained. The responses are collated and
analyzed to reveal possible clues towards acceptance or otherwise about a new
product or service. Based on the overall decision, the forecasting is done. This
method is typically done for new products or at new
places where a product is to be launched. In this method, the number of
respondents and how responses are gathered like through oral interviews, personal
talks, internet based, postal ballots, etc, have to be established before survey. The
common limitations are the sample size and the way of drawing the sample like
random, convenient, or judgmental. Sample bias is not completely ruled out.

Q2. Gujarats emergence as an auto hub is a positive for the economy Saturday,
17 September 2011 - 8:00am IST | Place: Mumbai | Agency: DNA
Several domestic and foreign auto manufacturers have either announced plans to
establish manufacturing plants in Gujarat or are considering it as a possible
location. Those establishing the plants include the US-based Ford Motor and PSA
Peugeot Citroen from France, joining Indias Tata Motors, General Motors of US,
Bombardier of Canada and Asia Motor Works (AMW), a heavy commercial vehicle
manufacturer. Auto ancillary hubs, which are critical for a thriving auto hub, are
located in Rajkot, Ahmedabad and Vadodara, and more to come in Kutch and
Sanand districts. A precision engineering park is planned to come up in Dahej.
See paid assignment for complete answer of this Case study..

Q3. Write short notes on:

5Ss system of waste elimination

Scheduling in services

Vendor managed inventory

Subcontracting capacity (production) option


5 Ss system of waste elimination

5S is the name of a workplace organization method that uses a list of five Japanese
words: seiri, seiton, seiso, seiketsu, and shitsuke. Transliterated or translated into
English, they all start with the letter "S. Concept of 5S Historically, production
managers have used housekeeping for a neat, orderly, and efficient workplace
and as a means of reducing waste. Operations managers have improvised
housekeeping to include a checklist commonly known as the 5Ss. The Japanese
developed the initial 5Ss where each S stands for a Japanese word. The 5Ss are as
Sort/segregate Keep what is needed and remove everything else from the work
area; when in doubt, throw it out.
Simplify/straighten Arrange and use analysis tools to improve the work flow and
reduce wasted motion. Consider long-run and short-run ergonomic issues
Shine/sweep Clean daily; eliminate all forms of dirt, contamination, and clutter
from the work area.
Standardize Remove variations from the process by developing standard
operating procedures and checklists; develop good standards.
Sustain/self-discipline Review periodically to recognize the efforts and motivate
the workforce to sustain progress. Use visuals wherever possible for easy
communication and implementation.
b) Scheduling in Services:
Service operations cannot create inventories to provide buffer for demand
uncertainties Demand in service operations cannot be predicted accurately
Demand for service are initiated mostly as unplanned event and hence, there may
be certain distortions in scheduling Providing the required manpower and skills for
the sudden demand in scheduling a service activity is challenging and sometimes
becomes crucial Scheduling customer demand Normally the service centre capacity
is fixed, but the demand will be varying. Forecasting the demand in advance for
service activities is difficult and scheduling such variable demand poses certain
problems. In
order to provide timely service and utilize the capacity to the maximum extent, the
scheduler has to adopt certain systems/methodologies. There are three methods
normally used by the scheduler in services.

They are:





Vendor managed inventory:

The very purpose of JIT is to reduce inventory at all places in the supply chain.
Inventory is considered a waste because inventory is created by using materials,
machines, and efforts of persons. All of these are resources which have already
been used up and that portion of it which is not consumed and sent up the value
chain causes a drag in the system. However, inventories are inevitable because
uncertainties exist at every stage, making it necessary to provide a buffer so that
demands do not go unfilled. The challenge is to keep it to the minimum. To make
this happen, the calculations involving the following are necessary:

Forecasts of the market demand

Capacities of the equipments

Worker absenteeism

Suppliers lead times

Quality of the produced components


Subcontracting capacity (production) option:

Subtracting enables planners to acquire temporary capacity with great flexibility.

Factors to consider include availability capacity, relative expertise, quality
considerations, cost, and the amount and stability of demand. As an alternative to
subcontracting, an organization might consider outsourcing: contracting with
another organization to supply some portion of the goods or services on a regular

Q4. Describe the post implementation review of a project. Explain the tools that
may be considered for post implementation review.
Completing a project" is not the same thing as ending the project management process. Simply finishing
doesn't ensure that the organization benefits from the project's outcome.
For example, after completing a year long project to establish a new quality management process for
your organization, you want to make sure that what you set out to do was actually achieved. Your

objective wasn't to simply deliver a process but rather, to deliver the process that addresses the specific
business need you intended to meet. This is the real measure of success.
To make the most of the benefits that the project can deliver, however, you also need to check to see if
further improvements will deliver still greater benefit.
You also need to ensure that the lessons learned during the project are not forgotten. You can more
effectively design and execute future projects when you take advantage of lessons learned through
experience of previous projects.
So how can you properly measure a project's success, and work toward continuous improvement? This
is where the process of Post-Implementation Review (PIR) is helpful. It helps you answer the following
key questions:

Did the project fully solve the problem that it was designed to address?

Can we take things further, and deliver even bigger benefits?

What lessons did we learn that we can apply to future projects?

The PIR Process

The key to a successful PIR is recognizing that the time spent on the project is just a small part of an
ongoing time-line.
For people and organizations that will be working on similar projects in the future, it makes sense to learn
as many lessons as possible, so that mistakes are not repeated in future projects.
And for organizations benefiting from the project, it makes sense to ensure that all desired benefits have
been realized, and to understand what additional benefits can be achieved.

When to Review
A good time to start thinking about the Post Implementation Review is when members of the project team
remember the most shortly after the project has been delivered, and when most of the problems have
been ironed-out. Start to list ideas and observations while they are still fresh in people's minds.
However, to adequately assess the quality of the implementation and complete this process, you'll need
to wait long enough for the changes caused by the project to truly take effect.
There will probably be a period of adjustment before you can finally review the solution as it was intended
to operate: you'll likely need to overcome some of the usual resistance to change, hold people's hands
while they operate new systems, and eliminate technical problems that didn't emerge when deliverables
were tested. You should therefore typically allow a few weeks, or even a few months, before doing the full
PIR. Where possible, allow for at least one, full, successful cycle of business before reviewing lessons

What to Review
Here are some tips for conducting the PIR:

Ask for openness Emphasize the importance of being open and honest in your
assessment, and make sure that people aren't in any way punished for being open.
Be objective Describe what has happened in objective terms, and then focus
on improvements.
Document success Document practices and procedures that led to project
successes, and make recommendations for applying them to similar future projects.
Look with hindsight Pay attention to the "unknowns" (now known!) that may
have increased implementation risks. Develop a way of looking out for these in future
Be future-focused Remember, the purpose is to focus on the future, not to
assign blame for what happened in the past. This is not the time to focus on any one
person or team.
Look at both positives and negatives Identify positive as well as negative

When conducting the review, include the following activities:

Review the expected deliverables (including documentation) and

ensure either that these have been delivered to an acceptable level of quality,
or that an acceptable substitute is in place.
If there are gaps, how will these be closed?

Determine whether the project goals were achieved.

Is the deliverable functioning as expected?

Are error rates low enough, and is it fit for purpose?

Is it functioning well, and in a way that will adjust smoothly to future

operating demands?

Are users adequately trained and supported? And are there sufficiently
enough confident, skilled people in place?

Are the necessary controls and systems in place, and are they working

What routine activities are needed to support the project's success?

If there are problems here, how will these be addressed?

Conduct a gap analysis.

Review the project charter to evaluate how closely the project results
match the original objectives.

How does the end result compare with the original project plan, in
terms of quality, schedule and budget?
Determine the satisfaction of stakeholders.
Were the end users' needs met?

Is the project sponsor satisfied?

What are the effects on the client or end user?

If key individuals aren't satisfied, how should this be addressed?

Determine the project's costs and benefits.

What were the final costs?
What will it cost to operate the solution?

What will it cost to support the solution in the future?

How do the costs compare with the benefits achieved?

If the project hasn't delivered a sufficiently large return, how can this be
Identify areas of further development.
Have all of the expected benefits been achieved? If not, what is needed
to achieve them?
Are there opportunities for further training and coaching that will
maximize results?

Could you make further changes, which would deliver even more value?

Are there any other additional benefits that can be achieved?

Identify lessons learned.

How well were the projects deliverables assessed, and how well were
timescales and costs assessed?

What went wrong, why did these things go wrong, and how could these
problems be avoided next time?

What went well, and needs to be learned from?

Report findings and recommendations.
What have you learned from this review?

Do you need corrective activity to get the benefits you want?

What lessons have you learned that need to be carried forward to

future projects?

Does this project naturally lead on to future projects, which will build on
the success and benefits already achieved?

How to Review
As you perform the post-implementation review, certain methods and practices will help you obtain the
best possible information:

Define the scope of the review beforehand -The last thing you want to do is
to create a political problem. Given the number of people often involved in a project,
it's easy to hurt someone's feelings when reviewing the project's success. Clarify your
objectives for the review, and make your intentions clear this will better ensure that
people share their experiences openly and honestly. Then make absolutely sure that
you stick to these intentions, and that people's egos aren't unnecessarily bruised by
the process!
Review key documents Gather together the key project documents. This will
help you assess the project planning process, as well as the actual benefits achieved
through the project.
Consider using independent reviewers Where possible, use outside people
in your review process to get an objective, unclouded view of the project. Some
people recommend using only independent people in the review, however, you can
learn a lot from the perspectives of those who were directly involved in the project
this is why the best strategy is probably to have a balance.

Use appropriate data collection Collect information in the most appropriate

way, for example, by using interviews and surveys. Also, test the deliverable yourself,
to make sure you get firsthand information.
Deliver appropriate reports Report your findings, and publicize the results.
Remember that the PIR is designed to help project managers conduct more effective
projects in the future, as well as to measure and optimize the benefits of the specific
project being reviewed.
Present recommendations Present the detailed recommendations to the
organization and the project leaders, as well as to customers and other stakeholders.
Include as many people as necessary so that you keep and apply the best-practice
information in the future.

As you plan your PIR, be aware of the costs and benefits of the review process itself.
Interviewing stakeholders and customers, testing the solution, and documenting the results
are time-consuming activities. Make sure the time and resources dedicated to the review
are consistent with the project scope and its output, and that the potential benefits of
conducting the review are worth the effort put in.

Q5. Explain the steps to set data in logical order so that the business process may
be defined.
Answer:A business process or business method is a collection of related, structured
activities or tasks that produce a specific service or product (serve a particular goal)
for a particular customer or customers. It can often be visualized with a flowchart
as a sequence of activities with interleaving decision points or with a Process Matrix
as a sequence of activities with relevance rules based on data in the process.
There are three types of business processes:

Management processes, the processes that govern the operation of a system.

Typical management processes include "corporate governance" and "strategic

Operational processes, processes

Q. 6. Describe the dimensions of quality.

Answer:In 1987 David Garvin suggested that there are eight dimensions to quality.
Lets briefly look at each of Garvin's eight dimensions.Eight dimensions of product
quality management can be used at a strategic level to analyze quality
characteristics. The concept was defined by David Garvin.

Performance: Performance refers to a product's primary operating

characteristics. This dimension of quality involves measurable attributes; brands
can usually be ranked objectively on individual aspects of performance.

Features: Features are additional