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Master of Business Administration- MBA Semester 2
: Rishikesh Sah SWATI CHOUDHARY
ROLL NO. : 511116481 511227543 LC. CODE : 0965 3337
MB0044 – Production and Operations Management SUBJECT : MB0044 – Production and Operations Management
analysis. such as CAD/CAM systems. CIM implies that there are at least two computers exchanging information. purchasing. Explain briefly the Computer Integrated Manufacturing. and distribution are linked through the computer with factory floor functions such as materials handling and management. Through the integration of computers. the availability of process planning and its data. the level of the integration into the product itself and the integration of the production processes.1 (60 Marks) Note: Each question carries 10 Marks. Algorithms for uniting the data processing component with the sensor/modification component. As a method of manufacturing. the experience of the company or personnel to make the integration. Answer all the questions. Mechanisms for sensing state and modifying processes.g. CIM is most useful where a high level of ICT is used in the company or facility. This integration allows individual processes to exchange information with each other and initiate actions. based on real-time input from sensors. CIM is an example of the implementation of information and communication technologies (ICTs) in manufacturing. and support functions of a manufacturing enterprise are organized. three components distinguish CIM from other manufacturing methodologies: Means for data storage. Ans: Computer-integrated manufacturing (CIM) is the manufacturing approach of using computers to control the entire production process. although the main advantage is the ability to create automated manufacturing processes. Some factors involved when considering a CIM implementation are the production volume. manipulation and presentation. marketing. production. cost accounting. Typically CIM relies on closed-loop control processes. e.Assignment Set . retrieval. Q1. the controller of an arm robot and a micro-controller of a CNC machine. inventory control. It is also known as flexible design and manufacturing. manufacturing can be faster and less error-prone. In a CIM system functional areas such as design. The term "computer-integrated manufacturing" is both a method of manufacturing and the name of a computer-automated system in which individual engineering. providing direct control and monitoring of all the operations. Key challenges There are three major challenges to development of a smoothly operating computer-integrated manufacturing system: . planning.
Data integrity: The higher the degree of automation. chemical and petroleum. and the automation professional is ―any individual involved in the creation and application of technology to monitor and control the production and delivery of products and services. but there must always be a competent engineer on hand to handle circumstances which could not be foreseen by the designers of the control software. Here are some examples: Manufacturing . it requires extra human labor in ensuring that there are proper safeguards for the data signals that are used to control the machines. and management. including food and pharmaceutical. including automotive. and job functions. and rail Utilities . safety. a process.‖ Using our definition. are using different communications protocols. aerospace. conveyors and robots. such as CNC.‖ We define automation as “ the creation and application of technology to monitor and control the production and delivery of products and services. computer Q2. and maintenance to design. or a system operate automatically. the more critical is the integrity of the data used to control the machines. Integration of components from different suppliers: When different machines. Automation even reaches into the marketing and sales functions of these industries. oil and gas.‖ Automation encompasses many vital elements. systems. electric power. including water and wastewater. While the CIM system saves on labor of operating the machines. In the case of AGVs. Automation provides benefits to virtually all of industry. pulp and paper Transportation . integration. the automation profession includes ―everyone involved in the creation and application of technology to monitor and control the production and delivery of products and services‖. including security. What is automation? What are the kinds of automation? Ans: The dictionary defines automation as ―the technique of making an apparatus. procurement. and telecommunications Defense Facility operations . Process control: Computers may be used to assist the human operators of the manufacturing facility. and other building automation And many others Automation crosses all functions within industry from installation. energy management. . environmental control. even differing lengths of time for charging the batteries may cause problems.
Cybersecurity. telemetry and communications. Examples for this kind of products are Opalis Integration Server. BMC Realops or HP/Opsware/IConclude Opsforce. electro-optics.Automation involves a very broad range of technologies including robotics and expert systems. test measurement. and many. where the bucks go. Some solutions in the IT Process Automation area are providing a rich set of features for designing and managing policies. 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. which is focused on Change Management Automation. wireless applications. Support Automation Support Automation refers to software packages are focused on supporting the routine work of help desk personnel. allowing operator to ―automate‖ recurring tasks. HP know that story. Tivoli or Unicenter. eventtriggering. change and manage vast numbers of components. Products in this category are former Opsware Server Automation System. IBM Tivoli Provisioning Manager and to bring in some cloudy haze modern and . systems integration. Run-Book-Automation Products belonging to this category are very popular nowadays. Any of the large vendor offers such a tool or suite and – you guessed it – here is place. Good products offer a multitude of connectors and interfaces to existing ITSM suites like OpenView. BMC BladeLogic. many more. as companies have started to deploy myriad of servers into an extremely fast growing number of data centers all over the world. process measurement and control. bringing high demand for automated tools to provision. Though modern products are highly evolutionized through offering multi platform compatibility. They allow to define a set of ITSM-Workflows through a Graphical user interface. By bringing in the term Policy the rules management get’s a more of the ―enterprise-style‖. Think of it as a kind of script integration in existing Service desk. policy-based execution and configured to smart coloured visual GUIs. where batch processing or job Scheduling were a big improvement. Policy-Based Automation Certain Automation solutions such as Enigmatec are elevating the importance of rules to an higher level. CRM application or even in Knowledge Base Applications for Automated Self Service. IT-Workload Automation These concepts stem from early (mainframe) days of computing. sensors. Examples for this category are products like CA SupportBridge or mValent Integrity.
2. 3. transportation facilities. poor location can act as a continuous stimulus of higher cost. quality. They also include infrastructural facilities. What are the factors that influence the plant location? Ans: Units concerning both manufacturing as well as the assembling of the products are on a very large scale affected by the decisions involving the location of the plant. legislation. These decisions are sometimes taken because of the social or the political conditions engulfing the working of a company. The Need for location decisions These decisions are needed when a new plant is to be set up or when the operations involved in the company at the present location need to be expanded but expansion becomes difficult because of the poor selection of the site for such operations. transportation. Location of the plant itself becomes a very important factor concerning service facilities. Plant location decisions need detailed analysis because: 1. customer satisfaction are some of the other factors which are greatly influenced by the plant location decisions – hence these decisions require in-depth analysis. as the plant location decisions are strategic and long-term in nature.e. the taxation and also the work attitude of the workers. Regional factors: These factors include proximity of the plant to the market and also to the sources of the raw materials. Once a plant is set up at a location which is not much suitable. The investments involved in the in setting up of the plant premises . it is a very disturbing as well as very expensive process to shift works of a company to some other place. Marketing.cool products/players like Elastra or 3Tera/Applogic which allow to mix data center and cloud offerings.buying of the land etc are very large and especially in the case of big multinational companies. the investments can go into millions of rupees. According to Robinson. so economic factors of the location should be very minutely and carefully checked and discussed in order to achieve good returns on the money which has been invested. Q3. and availability of skilled workers. . Factors governing plant location: 1. largely depends upon the industrial policies issued by the government. Robinson was the one who has very clearly and efficiently justified industrial location concerns using pure materials nearer to the markets or the consumption centers. Any change that creeps in the industrial policy of the government which favors decentralization and hence does not permit any change or any expansion of the existing plant – requires strictly evaluated location decisions. as it would largely affect the cycle of production. Wrong plant location generally affects cost parameters i. The way the works of a company have to be performed.
‖ ―The Basic Seven. suitability of the land etc.the place of production is likely to be at the place of consumption where the final product is more expensive to carry because it is more bulky. it's temporary. and you'll have a name for them too: "indispensable. Ans: ―The Old Seven. supporting industries and services. a generic tool that can be adapted for a wide variety of purposes. Q4. and it's specific. or a wedding. 2. the launch of a new service. A project isn't something that's part of normal business operations. Pareto chart: Shows on a bar graph which factors are more significant. whether the project is development of a new product. Ans: roject management is the science (and art) of organizing the components of a project. or how often each different value in a set of data occurs. one variable on each axis.‖ Start your quality journey by mastering these tools. Community factors: These involve accommodation. to look for a relationship.‖ ―The First Seven." 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. Q5. a marketing campaign. education. As one expert notes.‖ Quality pros have many names for these seven basic tools of quality. Check sheet: A structured. Histogram: The most commonly used graph for showing frequency distributions. Control charts: Graphs used to study how a process changes over time. "It has a beginning . a professor of engineering at Tokyo University and the father of ―quality circles. more fragile or more perishable than is raw materials. entertainment and transport facilities. Scatter diagram: Graphs pairs of numerical data. It's typically created once. Define project management. 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‖). Describe the five dimensions of project management. prepared form for collecting and analyzing data. first emphasized by Kaoru Ishikawa. Describe the seven basic quality control tools. It also includes attitude of the community.
Now the work of the project begins. how the tasks are related. In this stage. project management typically follows the same pattern: 1. the project manager knows how many resources and how much budget he or she has to work with for the project. and it has funding limits. the project manager lists all activities or tasks. This phase also allows the project manager to define relationships between tasks. cash. materials. 5. and how each tasks is tied to a specific deadline. if one task is x number of days late. Executing the Project Build the project team. resources." A project consumes resources (whether people. the outcome of a specific set of activities. Project Management Basics No matter what the type of project. Define requirements for completing the project. or time). Constraints typically relate to schedule. Likewise. For example. a budget constraint may affect the number of people who can work on the project. . In this phase. 3. 4. Likewise. The project manager then assigns those resources and allocates budget to various tasks in the project. This phase also includes a list of project deliverables. and scope. dates by which important aspects of the project need to be met. if additional features are added as part of project scope.those who have a vested interest in the outcome of the project. as well as any other requirements that are necessary for completing the project. how long each task will take. In this stage. so that. budget. the project manager identifies how many people (often referred to as "resources") and how much expense ("cost") is involved in the project. The project manager will also want to identify project constraints. 2. thereby imposing a resource constraint. that could affect scheduling. resources. the project manager can set milestones. for example. Planning the Project Define all project activities. The project manager works with the business sponsor or manager who wants to have the project implemented and other stakeholders -. The project manager will also need to manage assumptions and risks related to the project. A change in one constraint will typically affect the other constraints. the project tasks related to it will also reflect a comparable delay. and budget. Definition Planning Execution Control Closure Defining the Project In this stage the project manager defines what the project is and what the users hope to achieve by undertaking the project.and an end.
Closure of the Project In this stage. A product such as Microsoft Project facilitates the administrative aspects of project management. Time.Controlling the Project The project manager is in charge of updating the project plans to reflect actual time elapsed for each task. information. Scope Frequently. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory (with the assumption that products are available when needed). The company or agency may decide to eliminate those projects with a lower return in order to dedicate greater resources to the remaining projects or in order to preserve the projects with the highest return or value Q6. PPM is a move by organizations to get control over numerous projects by evaluating how well each project aligns with strategic goals and quantifying its value. As a solution for successful supply chain management. By keeping up with the details of progress. Money. Reducing or increasing any one of the three will probably have an impact on the other two. the project manager and business owner pull together the project team and those who have an interest in the outcome of the project (stakeholders) to analyze the final outcome of the project. sophisticated software systems with Web interfaces are competing with Web-based application service providers (ASP) who promise to provide part or all of the SCM service for companies who rent their service. people refer to project management as having three components: time. An organization will typically be working on multiple projects. and scope. the project manager is able to understand how well the project is progressing overall. Supply chain management involves coordinating and integrating these flows both within and among companies. each resulting in potentially differing amounts of return or value. What is meant by Supply Chain Management (SCM)? What are the objectives of SCM? Ans: Supply chain management (SCM) is the oversight of materials. and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. that will affect the scope (what can be included in the project) as well as the cost (since additional people or resources may be required to meet the abbreviated schedule). If a company reduces the amount of time it can spend on a project. Project Portfolio Management Recent trends in project management include project portfolio management (PPM). money. Supply chain management flows can be divided into three main flows: .
Flexible planning and control procedures. variety reduction. The financial flow consists of credit terms. and consignment and title ownership arrangements. and includes key suppliers. Reduction of pre & post production inventory. . There are two main types of SCM software: planning applications and execution applications. capital & plant through the company. The product flow The information flow The finances flow The product flow includes the movement of goods from a supplier to a customer. payment schedules. the management of materials. Objectives of SCM A well designed SC is expected to support the strategic objectives of:1. Achieving maximum efficiency in using labour. manufacturers. Customer service performance improvement. This shared data may reside in diverse database systems. 3. 5. 6. etc. 8. and financial information involving all parties Some SCM applications are based on open data models that support the sharing of data both inside and outside the enterprise (this is called the extended enterprise. Solving supplier’s problems and beyond his level. Execution applications track the physical status of goods. The information flow involves transmitting orders and updating the status of delivery. Minimizing variance by means of activities like standardization. and end customers of a specific company). or data warehouses. 7. Product Quantity control. at several different sites and companies. 2. as well as any customer returns or service needs. 4. Planning applications use advanced algorithms to determine the best way to fill an order. Minimum total cost of operation & procurement.
The working capital productivity measure tends to be somewhat more accurate. in a factory productivity might be measured based on the number of hours it takes to produce a good. There are many different ways of measuring productivity. while in the service sector productivity might be measured based on the revenue generated by an employee divided by his/her salary.Assignment Set . each with a logic. and capital). . objectives. because it has too much invested in accounts receivable and/or inventory to produce a given level of sales. yet. equipment. Q1. since it subtracts current liabilities from current assets to arrive at a net current asset figure that may be considerably less than the total current assets figure used in the other measurement. the following five are identified as main processes. For example. in order to be able to measure and understand them. Ans: The amount of output per unit of input (labor. yet. Answer all the questions. theory and key figures of its own. Alternatively.2 (60 Marks) Note: Each question carries 10 Marks. in that both are used to see if there are sufficient assets available to support a given level of sales activity. as a part of the whole. A producing company can be divided into sub-processes in different ways. an excessively low working capital productivity measurement reveals that a company is quite inefficient at producing sales. The main processes of a company are as follows: Description: The working capital productivity measure is similar to the sales to current assets ratio. It is important to examine each of them individually. The measure can be compared to the results of competitors to see if the company is using its working capital in the most effective manner. What is productivity? Write a brief note on capital productivity.
the semi finished parts are moved to the next machine in the sequence determined by the process requirements a flow line is established. lifted. in case the ending working capital for the reporting period is unusually high or low. we will have automated flow lines established. They are moved further to other machines for performing further operations. When these can be achieved with the help of automation and the processes are conducted with self regulation. The formula is as: Annual Sales Working Capital Q2. With methodologies of JIT and Lean Manufacturing finding importance and relevance in the competitive field of manufacturing. every bottleneck gets . Provision for extra pallets or tool holders or conveyors are made in the original design to accommodate anticipated changes. By necessity. The parts at various stages from raw material to ready for fitment or assembly are processed continuously to attain the required shapes or acquire special properties to enable them to perform desired functions. Human intervention may be needed to verify that the operations are taking place according to standards. It may be useful to also calculate average working capital. where one component is manufactured using several operations and machines it is possible to achieve this condition – or very nearly. So. Bottlenecks cannot be permitted. Sometimes. many companies have found that well designed flow lines suit their purpose well. for completing different operations. In fixed automation or hard automation. Ans: Automated flow lines : When several automated machines are linked by a transfer system which moves the parts by using handling machines which are also automated. automated flow lines are considered only when the product is required to be made in high volumes over a relatively long period. held. We assume that product life cycles are sufficiently stable to invest heavily on the automated flow lines to achieve reduced cost per unit. a few of the operations can be done on a single machine with a number of attachments. The logic to be followed is to find out whether the reduction in cost per piece justifies the costs of designing. Flow lines compel engineers to put in place equipments that balance their production rates. rotated. The materials need to be moved. It is necessary to design the machines in such a way that the operation times are the same throughout the sequence in the flow of the martial. positioned etc. Designers now incorporate flexibility in the machines which will take care of small changes in dimensions by making adjustments or minor changes in the existing machine or layout. Describe briefly the automated flow lines. Cellular Manufacturing along with conventional Product and Process Layouts are still resorted to as they allow flexibility for the production system. diivide annual sales by total working capital.Formula: To calculate working capital productivity. It is not possible to think of inventories (Work In Process) in a flow line. manufacturing and setting up automated flow lines. Group Technology. The global trends are favouring flexibility in the manufacturing systems. The costs involved in changing the set up of automated flow lines are high. The change in movements needed can be achieved by programming the machines. After completing an operation on a machine. One important consideration is to balance times that different machines take to complete the operations assigned to them. we have an automated flow line.
information and feedback. The emphasis of production supervisors must be to help people to do a better job. Ans: otal quality management or TQM is an integrative philosophy of management for continuously improving the quality of products and processes. Improvement of quality will automatically improve productivity. depend on meaningful measures of quality. We are in a new economic age.focused upon and solutions found to ease them. What is meant by Total Quality Management? Mention the 14 points of Deming’s approach to management. cross-functional training. There should be continual reduction of waste and continual improvement of quality in every activity so as to yield a continual rise in productivity and a decrease in costs. require. committed leadership. fear of the fact that it may be necessary to learn a better way of working and fear that their positions might be usurped frequently . stay in business and provide jobs. poor tools or fuzzy operational definitions. lack of maintenance of machines. Point 7 : Institute modern methods of supervision. Management must prepare to take immediate action on response from supervisors concerning problems such as inherited defects. Point 2: Adopt the new philosophy. Production managers see every bottleneck as an opportunity to hasten the flow and reduce inventories. Instead. and employee involvement. Point 1: Create constancy of purpose toward improvement of the product and service so as to become competitive. Point 8: Fear is a barrier to improvement so drive out fear by encouraging effective two-way communication and other mechanisms that will enable everybody to be part of change. In other words. and even customers. instead. Point 5: Find the problems. constantly improve the system of production and service. suppliers. supplier quality management. in order to meet or exceed customer expectations. strategic planning. and Schroeder (2001) identified the nine common TQM practices as cross-functional product design. statistical evidence that quality is built in. Point 6: Institute modern methods of training and education for all. and to belong to it. A modern method of on-the-job training use control charts to determine whether a worker has been properly trained and is able to perform the job correctly. McKone. along with price. However. Fear can often be found at all levels in an organization: fear of change. Considering the practices of TQM as discussed in six empirical studies. defective material and defective workmanship. process management.  TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. TQM capitalizes on the involvement of management. End the practice of awarding business on the basis of a price alone. Point 3: Cease dependence on mass inspection. We no longer need live with commonly accepted levels of delay. customer involvement. workforce. Cua. it is important to note that setting up automated flow lines will not be suitable for many industries Q3. Point 4: Improve the quality of incoming materials. Statistical methods must be used to discover when training is complete. mistake.
abolition of the annual merit rating (appraisal of performance) and of management by objectives. which are repetitive. administration and production must work in teams to tackle problems that may be encountered with products or service. whilst on the shop-floor. Point 11: Eliminate work standards that prescribe numerical quotas for the workforce and numerical goals for people in management. design. it needs people that are improving with education. of their right to pride of workmanship. Describe briefly the Project Monitoring and control. The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. undertaken to meet unique goals and objectives. Point 9: Break down barriers between departments and staff areas. These meetings . organizing. posters and exhortations for the workforce. People in different areas such as research. typically to bring about beneficial change or added value. Point 10: Eliminate the use of slogans. Point 14: Top management's permanent commitment to ever-improving quality and productivity must be clearly defined and a management structure created that will continuously take action to follow the preceding 13 points. sales.affect middle and higher management. Project Communication Tools and Techniques Pulse Meetings Pulse meetings are short team status meetings where the project management team is able to gather project performance information about the activities that are underway. Typical constraints are scope. The temporary nature of projects stands in contrast with business as usual (or operations). and managing resources to achieve specific goals. workers can also fear the effects of change on their jobs. and often constrained by funding or deliverables). and people in management. What an organization needs is not just good people. Substitute aids and helpful leadership. securing. Such exhortations only create adversarial relationships. In practice. permanent. The secondary—and more ambitious—challenge is to optimize the allocation and integrate the inputs necessary to meet pre-defined objectives. the management of these two systems is often quite different. and budget. Point 13: Institute a vigorous program of education. and as such requires the development of distinct technical skills and management strategies. This implies. or semi-permanent functional activities to produce products or services. A project is a temporary endeavor with a defined beginning and end (usually time-constrained. time. demanding zero defects and new levels of productivity without providing methods. Q4. Ans: Project management is the discipline of planning. and encourage self-improvement for everyone. Point 12: Remove the barriers that rob hourly workers.
the beginning and completion of project activities is reported Variance Reports Variance reports are formal reports generated by the PMIS. or Production Readiness Reviews. Security Reviews. Ans: Just in Time (JIT) is a management philosophy aimed at eliminating waste and continuously improving quality. Toyota JIT manufacturing started in the aftermath of World War II. Variance reports compare what has actually happened on a project against what was expected to have happened on the project. Normally they are only a few minutes in duration. During the meeting.such as the quality control system. the origins of the JIT as a management strategy traces to Taiichi Onho of the Toyota Manufacturing Company.should occur frequently and can either be face-to-face or virtual. He developed Just in Time strategy as a means of competitive advantage during the post World War II period in Japan. These are in-depth reviews focused upon a technical aspect of the project. The reviewers should perform an in-depth analysis of the project deliverables and activities to determine whether the project work has been accomplished completely and correctly. Although the history of JIT traces back to Henry Ford who applied Just in Time principles to manage inventory in the Ford Automobile Company during the early part of the 20th Century. Credit for developing JIT as a management strategy goes to Toyota. by the Earned Value Management System. or by a project supplier. Code Reviews. . These reviews will normally generate a list of actions that must be completed. one of the other business management systems . Q5. These are most often used on Full-scale and Complex projects. Unlike the Pulse Meetings which focus on day-to-day activities. Examples would be Desgin Reviews. Program Reviews Program Reviews are meetings with the project team members and sub-project leaders that review the current status of the program as compared to the original program plan. the Program Reviews focus on the big picture and emphasize the integration between activities and between sub-projects encompassed within the program. The question being asked is whether the program activities and the sub-projects are likely to interfere with each other Technical Reviews Technical Reviews are formal meetings conducted with subject matter experts who are not members of the proejct team. Write a brief note on Just-In-Time (JIT).
It is particularly suited to physical and mechanical problems. Quick Logical X X Long Psychological . Taiichi Onho identified waste as the primary evil. but can also be used in other areas. The car pricing policy of US manufacturers was to charge a mark-up on the cost price. The need of the hour was thus to reduce manufacturing costs to increase profits. projects. and analyze. or processes. and Taiichi Onho sought ways to reach such levels. Ans: Value Engineering (VE). where items moved through the production system only as and when needed.When to use itUse Value Analysis to analyze and understand the detail of specific situations. Use it in reverse (called Value Engineering) to identify specific solutions to detail problems.The post-World War II Japanese automobile industry faced a crisis of existence. What is value engineering? Explain its significance. To overcome these two challenges. This system was not suited to the Japanese conditions where a small market required manufacturing in small quantities. understand different perspectives. The productivity of an American car worker was nine times that of a Japanese car worker at that time.VE involves a team of people following a structured process. The process helps team members communicate across boundaries. The low demand in Japan led to price resistance. The categories of waste identified included overproduction inventory or waste associated with keeping dead stock time spent by workers waiting for materials to appear in the assembly line time spend on transportation or movement workers spending more time than necessary processing an item waste associated with defective items Taiichi Onho then sought to eliminate waste through the just-in-time philosophy. also known as Value Analysis. is a systematic and functionbased approach to improving the value of products. Two pressing challenges however prevented Toyota from adopting the American way: 1. Q6. Use it to find a focus on key areas for innovation. American car manufacturers made ―lots‖ or a ―batch‖ of a model or a component before switching over to a new model or component. and companies such as Toyota looked to benchmark their thriving American counterparts. 2. innovate.
.Individual How it works X Group Value Analysis (and its design partner. Value Engineering) is used to increase the value of products or services to all concerned by considering the function of individual items and the benefit of this function and balancing this against the costs incurred in delivering it. The task then becomes to increase the value or decrease the cost.
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