Q- What are the differences between inspection and quality control and state the advantages of quality control.

A- Usually there is no difference. But both terms have slightly different meaning in different circles. Inspection means checking the characteristics of a product to ensure that conformity to a set of specifications is met. Sometimes it means checking 100% of a batch of product; sometimes it means checking only some samples (in the latter case, it is exactly the same as "statistical quality control"). Quality control usually means only checking the conformity of products already made. It comprises inspection and other tests such as lab tests. Some people use quality control to designate some more upstream activities that aim at preventing quality issues (usually these activities are called "quality assurance"). Advantages of Quality control

It pushes the factories to improve the quality level of their workmanship because of the pressure of inspections and non-acceptance. It forces the suppliers to meet the order terms and product requirements of the firms, or to compensate for any discrepancy (exact materials, colors, aspect, packing, functions etc). Quality problems are reduced after the goods are delivered. Able to have the time to adapt planning and take decisions. The factory can rework the goods itself and will be more careful in the future. Over the long term, regular inspections and customer feedback contribute to improving the suppliers' reliability.

Q. Write a short note ona) Demings 14 principles 1. Create constancy of purpose for improvement of product and services Create constancy of purpose for continual improvement of products and service to society, allocating resources to provide for long range needs rather than only short term profitability, with a plan to become competitive, to stay in business, and to provide jobs. 2. Adopt the new philosophy. We are in a new economic age that was created in Japan. We can no longer live with commonly accepted levels of delays, mistakes, defective materials, and defective workmanship. Transformation of Western management style is necessary to halt the continued decline of business and industry. 3. Cease dependency on mass inspection Eliminate the need for mass inspection as the way of life to achieve quality by building quality into the product in the first place. Require statistical evidence of built in quality in both manufacturing and purchasing functions.

4. End the practice of awarding business on price tag Instead require meaningful measures of quality along with price. Reduce the number of suppliers for the same item by eliminating those that do not qualify with statistical and other evidence of quality. The aim is to minimize total cost, not merely initial cost, by minimizing variation. This may be achieved by moving toward a single supplier for any one item, on a long term relationship of loyalty and trust. Purchasing managers have a new job, and must learn it. 5. Constantly and forever improve the systems of production and services. Improve constantly and forever every process for planning, production, and service. Search continually for problems in order to improve every activity in the company, to improve quality and productivity, and thus to constantly decrease costs. Institute innovation and constant improvement of product, service, and process. It is management's job to work continually on the system (design, incoming materials, maintenance, improvement of machines, supervision, training, retraining).

6. Institute modern methods of training on the job Institute modern methods of training on the job for all, including management, to make better use of every employee. New skills are required to keep up with changes in materials, methods, product and service design, machinery, techniques, and service. 7. Institute modern methods of supervision and leadership Adopt and institute leadership aimed at helping people do a better job. The responsibility of managers and supervisors must be changed from sheer numbers to quality. Improvement of quality will automatically improve productivity. Management must ensure that immediate action is taken on reports of inherited defects, maintenance requirements, poor tools, fuzzy operational definitions, and all conditions detrimental to quality. 8. Drive out fear Encourage effective two way communication and other means to drive out fear throughout the organization so that everybody may work effectively and more productively for the company. 9. Break down barriers between departments Break down barriers between departments and staff areas. People in different areas, such as Leasing, Maintenance, Administration, must work in teams to tackle problems that may be encountered with products or service. 10. Eliminate numerical goals for the work force Eliminate the use of slogans, posters and exhortations for the work force, demanding Zero Defects and new levels of productivity, without providing methods. Such exhortations only create adversarial relationships; the bulk of the causes of low quality and low productivity belong to the system, and thus lie beyond the power of the work force. 11. Eliminate work standards and numerical quotas Eliminate work standards that prescribe quotas for the work force and numerical goals for

people in management. Substitute aids and helpful leadership in order to achieve continual improvement of quality and productivity. 12. Remove barriers to pride of workmanship Remove the barriers that rob hourly workers, and people in management, of their right to pride of workmanship. This implies, among other things, abolition of the annual merit rating (appraisal of performance) and of Management by Objective. Again, the responsibility of managers, supervisors, foremen must be changed from sheer numbers to quality. 13) Institute a vigorous programme of education and training for everyone Institute a vigorous program of education, and encourage self improvement for everyone. What an organization needs is not just good people; it needs people that are improving with education. Advances in competitive position will have their roots in knowledge. 14) Create a structure in top management that will push everyday on the above 13 points. Clearly define top management's permanent commitment to ever improving quality and productivity, and their obligation to implement all of these principles. Indeed, it is not enough that top management commit themselves for life to quality and productivity. They must know what it is that they are committed tothat is, what they must do. Create a structure in top management that will push every day on the preceding 13 Points, and take action in order to accomplish the transformation. Support is not enough: action is required!

b) 7 Quality Control Tools

The Seven Quality Control tools are listed below. Ishikawa Diagram Ishikawa diagram is named after its inventor Kaoru Ishikawa. It is also called as cause-and-effect diagram or fishbone chart as the diagram resembles a fish skeleton. It is a tool used to analyse, sort and determine the various causes of a problem. It shows the relationship between the causes/sub-causes and their outcome. Control Charts These are the most complicated of the seven quality tools. Control charts are graphs used to track changes or progress of a process or product over a particular time period. It displays the data according to the sequence in which it occurred. The various types of Control charts are Mean and Range charts for Variables and nP chart, C chart etc for Attributes. Checklists Checklists are a structured and systematic form of data analysis and collection. It gathers data such that its based on facts rather than assumptions. It can be in various formats, e.g. table, tally chart, etc. Checklists help easy identification of the problem.

Pareto Analysis Pareto analysis is also known as the 80:20 rule or ABC analysis. It is one of the simplest yet effective tools available. It is named after its inventor Alfredo Pareto who noticed that very few people controlled most of the nations riches. He invented a chart where the vital few could be distinguished from the trivial many. According to this rule 80% of the problems can be attributed to 20% causes. Scatter Diagram A scatter diagram is a graphical tool for the identification of the relationship between two variables. It shows the value of a variable with respect to a change in the other. Two sets of data are plotted on graph, with the x-axis being used for the predictor variable, while the y-axis used for the variable being predicted. This method can be used to test a possible cause/effect relationship. Flowcharts Flow charts are the pictorial representation of a sequence of operations in a process. They are usually simple and easy to understand. They show a step-by-step picture of the process for analysis and discussion. It shows the flow of operations that transform and input to an output for the next step. Histogram A histogram is a bar chart representation of a set of data. It provides an easy way to evaluate the distribution of data. The measurements are grouped into bins, each bin representing a range of values of some variable. It shows patterns that may have otherwise gone unnoticed in a table or chart. c) PDCA cycle

PDCA (plandocheckact) is an iterative four-step management method used in business for the control and continuous improvement of processes and products. It is also known as the Deming circle/cycle/wheel, Shewhart cycle, control circle/cycle, or plandostudyact (PDSA).

The steps in each successive PDCA cycle are PLAN Establish the objectives and processes necessary to deliver results in accordance with the expected output (the target or goals). By establishing output expectations, the completeness and accuracy of the specification is also a part of the targeted improvement. Whenever possible start on a small scale to test possible effects. DO Implement the plan, execute the process, make the product. Collect data for charting and analysis in the following "CHECK" and "ACT" steps. CHECK Study the actual results (measured and collected in "DO" above) and compare against the expected results (targets or goals from the "PLAN") to ascertain any differences. Charting data can make this much easier to see trends over several PDCA cycles and in order to convert the collected data into information. Information is what you need for the next step "ACT". ACT Request corrective actions on significant differences between actual and planned results. Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product. When a pass through these four steps does not result in

the need to improve, the scope to which PDCA is applied may be refined to plan and improve with more detail in the next iteration of the cycle.

Q. What are the Objectives of Master Production Schedule (MPS)? Ans: 1. Keeping the inventories at the desired level by making perfect use of the resources that are available with the company. 2. Setting up due dates for the availability of the end items and also providing the required information regarding resources and also the materials which act as the supporting pillars of the aggregate planning. 3. Maintaining properly, the desired level of customer service. 4. Setting particular schedules for the production of the parts and the components that are used as the inputs to materials requirements planning, in the end items. MPS which is effective in nature helps in keeping the customer delivery promises, as delivery in time forms a very important factor in todays competitive world which contributes towards the formation of the impression of the company, its working in the customers minds. An effective MPS acts as a basis for the utilization of the capacity of the plant to a good level and also helps in the resolving of the trade offs that usually occur in between production and the marketing. With the help of the master production schedule, one can establish production schedule for the models of the products and one can also get the schedule input for the materials requirements planning process, along with the schedule that is used by order processing. Q. Define and differentiate between Robust design and Modular design. Ans: Robust design: Customers expect products to perform satisfactorily when used in all kinds of field conditions. Hence it is not enough if the product perform as intended when they are produced and used under ideal conditions. A Robust design is one that will perform as intended even if undesirable conditions occur either in production or in the field. Robustness can be designed into products by assuming less than desirable field conditions in terms of heat, cold, humidity, nature of use, variation and other conditions. Modular design: It is the creation of products from some combination of basic, pre-existing subsystem known as modules. In this approach, products are designed in easily segmented components or modules. This design offers flexibility to both production and marketing. The modular design concept gives consumers a range of product options and offers considerable advantage in manufacturing and product design. Stabilizing the designs of the modules make them easier to built. Even the maintenance or repair of products in case of break down becomes easier because the faulty module can be easily removed and replaced by a spare module. Q. Define material management, discuss the functions of purchasing department? A. Material Management is concerned with control of materials in such a manner which ensures maximum return on working control material management is concerned with the location & purchase

of needed their storage & movement. It also arranges to keep on account for them .it is also responsible for planning their movement through manufacturing processes, store rooms and distribution channels. It is concerned with planning, organizing and controlling the flow of materials from their initial purchase through internal operations to the service point through distribution. OR Material management is a scientific technique, concerned with Planning, Organizing &Control of flow of materials, from their initial purchase to destination. OR Definition: A process encompassing acquisition, shipping, receiving, evaluation, warehousing and distribution of goods, supplies and equipment. FUNCTIONS OF THE PURCHASING DEPARTMENT: 1. The main function of the Purchasing Department is to render assistance to all departments of the company in the procurement of equipment, supplies and services. 2. To provide assistance in procurement by obtaining quotations, ordering and expediting deliveries, and making adjustments until the supplies or services are received or performed satisfactorily. 3. To be a center of information on sources of supply for the many items used by the company. 4. To obtain the best value for every penny expended. 5. When the technical details involved make it advisable for certain departments to aid in the preparing of the specifications for the order involved, the Director of Purchasing shall seek the advice and cooperation of the department head involved in the specific purchase. 6. In order not to have to purchase things at the last minute, the purchasing dept should: a) Anticipate requirements sufficiently in advance to do a good job of buying. The axiom, Makes Waste" is particularly true in the field of purchasing. b) Contribute either to improvement of quality or of economy. c) Keep strictly confidential all information and quotations submitted by competing vendors. 7. Expedite all deliveries as promptly as possible so that adjustments can be made if necessary. Send appropriate documents to the end user and Receiving Department as soon as possible. Q. How capacity planning can be measured? State the factors affecting determination of capacity planning? Factors affecting capacity planning : The following are the important factors affecting the capacity planning: 1.Process design: in multistage production processes the maximum rate of output that can be achieved is governed by the lowest capacity stage. "Haste

2. Product design: with exactly the same personnel and equipment the capacity for making a product that is well designed for production will be greater than for a poorly designed one. 3.Product variety: the fewer types of product made by a production unit and the more similar they are, the more specialized equipment and jobs can be and the less time lost on product changeovers and machine set ups. On the other hand, if there are a variety of products with more differences, there requires more time and a complex capacity planning. 4. Product quality: the way products are made tested and inspected will affect the rate at which products of acceptable quality can be produced. 5.Product scheduling: scheduling that keeps product flows well balanced and synchronized and unproductive time minimized, will utilize machines and personnel better and result in greater effective capacity. 6.Materials management: shortage of materials can cause work stoppages while excess inventories can cause congestion and wasted time searching for materials directly affecting the capacity planning. 7. Maintenance: equipment breakdowns and defects due to machine wear and tear are two major sources of lost production. 8. Job design and personnel management: the amount of output a production system actually produces is greatly determined by the personnel operating the system. Inadequate training, poor job design over work and absenteeism all lead to loss of production. Measuring capacity planning Measuring capacity Capacity, being the ability to produce work in a given time, must be measured in the unit of work. For example, consider a factory that has a capacity of 10,000 " machine hours" in each 40 hour week. This factory should be capable of producing 10,000 "standard hours of work" during a 40-hour week. The actual volume of product that the factory can produce will depend on: - the amount of work involved in production (e.g. does a product require 1, 5, 10 standard hours? -any additional time required in production (e.g. machine set-up, maintenance) - the productivity or effectiveness of the factory Measures: Output: Capacity to produce specific products or provide specific services.

the number of units output per period, the number of customers who could be served per time period more difficult to measure as the variety of products increases since they may have very different manufacturing or service times measuring capacity is relatively straightforward in product focused firms where they produce many of the same type of product

Input: The ability to accept new customer business

in process focus firms where every job require different resources and times this may be a more meaningful measure ie. a specialty engineering firm may be able to accept a certain number of new jobs per month it is very difficult to state this capacity in exact terms.

Q. Give examples for the following. Mass production system: Mass production (also flow production, repetitive flow production, series production, or serial production) is the production of large amounts of standardized products, including and especially on assembly lines. The concepts of mass production are applied to various kinds of products, from fluids and particulates handled in bulk (such as food, fuel, chemicals, and mined minerals) to discrete solid parts (such as fasteners) to assemblies of such parts (such as household appliances) Exs: Soaps, detergents, and other FMCGs are produced in bulk standardized ways. Job shop production: Examples of job shop production They include paint shops, machine tool factories and specialty restaurants. Given below is a brief outline of the paint manufacturing process, In this, paints are manufactured in a variety of colors and even patterns and the machines used are the same for all the jobs which are done. 1. 2. 3. 4. 5. 6. 7. First a color pigment is selected Then a brightener is added to it to bring out its texture. Next, binder and plasticizer is added which will make it stick to the wall. Lastly, additives and water is added to improve its consistency Then a brightener is added to it to bring out its texture. Next, binder and plasticizer is added which will make it stick to the wall. Lastly, additives and water is added to improve its consistency Job shop production is tailor made form. For ex: an order received for printing a wedding invitation is a simplest example for Job shop production. Batch production system: Example of batch production: We can consider the manufacture of wallpaper as an example. There are many variants available in terms of patterns and textures. They are all produced in batches according to the demand. Also, certain pharma products (medicines and syrups) etc are also produced in batches. Q. State and explain the major factors which are affecting the Process Design Decision. A. Major Factors affecting Process Design Decisions Operations managers have to consider factors like the nature of demand, the degree of vertical integration, flexibility, degree of automation, and quality level and degree of customer contact while making process design decisions. Some of the factors are as follows:

1. 2. 3. 4.

Nature of Demand. Degree of Vertical Integration. Flexibility. Degree of Automation.

1. Nature of Demand Organizations have to produce products or services based on customer needs and preferences. They have to schedule their production so as to be able to meet the estimated future demand levels. Methods for estimating future demand consider factors like seasonality, growth trends, and other demand patterns that affect future demand levels. Influence of demand patterns - The demand for a product rises or falls over a period of time and is influenced by factors like seasonal fluctuations that affect the design of the production process of the product. For example, the demand for products like air conditioners, refrigerators, etc. varies from season to season. Influence of price level - The price-volume or the demand curve influences the process design. As customers are price-sensitive, they have a tendency to buy more of a product at a low price and less at a high price. 2. Degree of vertical integration Vertical integration is the extent to which the production and the distribution chain is brought under the ownership of the organization. The degree of vertical integration determines the extent to which a product and its components are produced internally. Vertical integration is of two types: forward and backward. Forward integration is the expansion of ownership of production to the distribution chain, towards the market. And when it is expanded backward or toward the sources of supplies, it is referred to as backward integration. Vertical integration provides flexibility in manufacturing which results in increased profits due to centralized overheads, pooling of R&D and design efforts, and economies of scale. Vertical integration may not, however, always be desirable as the decision to produce the components instead of buying them could leave organizations stuck with outdated technology. Operations managers should evaluate the pros and cons of vertical integration before deciding on its implementation. 3. Flexibility A flexible organization is one that responds quickly to the changing customer preferences or market conditions. Organizations have to be flexible in order to increase or maintain their market share. Flexibility can be broadly classified into: Product/service Flexibility - The ability of the production system to shift quickly from producing one product to another is referred to as product/service flexibility. This is necessary for organizations which produce different custom-designed products/services in small lots using general-purpose equipment and multi-skilled employees. Volume Flexibility - The ability to increase or decrease production volumes rapidly in response to external changes is referred to as volume flexibility. This is necessary for organizations that produce products the demand for which fluctuates and for which it is uneconomical to maintain a high level of inventory. 4. Degree of automation

Operations managers in the past avoided automation due to the high costs involved in automating the processes and the difficulty in integrating them with other production processes. Of late, they have realized that automation can be used as a strategic weapon for competing with others. Though automation is expensive, it can reduce labor and related costs. Operations managers should decide on the degree of automation required for their production processes. Quality level and degree of customer contact: The quality levels of a product or service decide its competitiveness in the market and affect the production process design at all stages of production. The desired level of quality has direct implications for the degree of automation and the extent of customer interaction and contact required for the production process. Q. What do you mean by Tracking Signal? In statistics and management science, a tracking signal monitors any forecasts that have been made in comparison with actual, and warns when there are unexpected departures of the outcomes from the forecasts. Forecasts can relate to sales, inventory, or anything pertaining to an organizations future demand. The tracking signal is a simple indicator that forecast bias is present in the forecast model. It is most often used when the validity of the forecasting model might be in doubt. One form of tracking signal is the ratio of the cumulative sum of forecast errors (the deviations between the estimated forecasts and the actual values) to the mean absolute deviation.The formula for this tracking signal is:
Tracking signal = (at ft) / MAD

where at is the actual value of the quantity being forecast, and ft is the forecast. MAD is the mean absolute deviation. The formula for the MAD is:
MAD = |at ft| / n

where n is the number of periods. Therefore, the entire formula for tracking signal is:
Tracking signal = (at ft) / |at ft| / n

Q. What do mean by Quality Circle? A quality circle is a participatory management technique that enlists the help of employees in solving problems related to their own jobs. In their volume Japanese Quality Circles and Productivity, Joel E. Ross and William C. Ross define a quality circle as "a small group of employees doing similar or related work who meet regularly to identify, analyze, and solve product-quality and production problems and to improve general operations. The circle is a relatively autonomous unit (ideally about ten workers), usually led by a supervisor or a senior worker and organized as a work unit." Employees who participate in quality circles usually receive training in formal problem-solving methods such as, brainstorming, Pareto analysis, and cause and effect diagrams and then are encouraged to apply these methods to either specific or general company problems. After completing an analysis, they often present their findings to management and then handle implementation of approved solutions.

Q. What is job design? What are its objectives? Definition Work arrangement (or rearrangement) aimed at reducing or overcoming job dissatisfaction and employee alienation arising from repetitive and mechanistic tasks. Through job design, organizations try to raise productivity levels by offering non-monetary rewards such as greater satisfaction from a sense of personal achievement in meeting the increased challenge and responsibility of one's work. Job enlargement, job enrichment, job rotation, and job simplification are the various techniques used in a job design exercise. The objectives of job design There are clearly many alternative designs for any given job. For this reason, an understanding of what the job design is supposed to achieve is particularly important. As before, the five performance objectives give us a guide to what is relevant in job design decisions. 1. Quality The ability of staff to produce high-quality products and services can be affected by job design. This includes avoiding errors in the short term, but also includes designing jobs which encourage staff to improve the job itself in such a way as to make errors less likely. 2. Speed Sometimes speed of response is the dominant objective to be achieved in job design. For example, the way in which the jobs of emergency service personnel are organised (the range of tasks for which they are trained, the sequence of activities in their approved procedures, the autonomy which they have to decide on appropriate action, and so on) will go a long way to determine their ability to respond promptly to emergencies and perhaps save lives. 3. Dependability Dependable supply of goods and services is usually influenced, in some way, by job design. For example, in the postal services working arrangements, multi-skilling, accurate use of sorting equipment through good staff-machine interface design, and the design of postal staffs clothing, can all aid dependable delivery of letters and parcels. 4. Flexibility Job design can affect the ability of the operation to change the nature of its activities. New product or service flexibility, mix flexibility, volume flexibility and delivery flexibility are all dependent to some extent on job design. (See Chapter 2 for a full description of these different types of flexibility). For example, staff who have been trained in several tasks (multi-skilling) may find it easier to cope with a wide variety of models and new product or service introductions. 5. Cost All the elements of job design described above will have an effect on the productivity, and therefore the cost, of the job. Productivity in this context means the ratio of output to labour input: for example, the number of customers served per hour or the number of products made per worker.

In addition, job design will influence two other particularly important objectives. 6. Health and safety Whatever else a job design achieves, it must not endanger the well-being of the person who does the job, other staff of the operation, the customers who might be present in the operation, or those who use any products made by the operation. 7. Quality of working life The design of any job should take into account its effect on job security, intrinsic interest, variety, opportunities for development, stress level and attitude of the person performing the job 8. Division of labour Although it is historically the earliest influence on job design, division of labour is arguably still the most important. If it were not all of us would do everything. The fact that we specialise is a tacit recognition of the advantages to be gained from division of labour. 9.Scientific management As far as scientific managements influence on job design goes, method study and work measurement are its twin legacies. Both are still practiced, though neither are as popular as once they were. Behavioural approaches to job design The title behavioural approaches in clumsy but reasonably descriptive. This approach is the Flexible working Three types of flexible working are,
o o o

skills flexibility time flexibility location flexibility - to take the feelings and motivation of individual members of staff into account.

Q. Explain the 3 divisions or elements of operation management? 1. CUSTOMER DEMAND: An organisation has two categories of customer(internal and external). Customer demand is the pull from a customer. While the demand can be for a free product (such as The Continuous Improvement Companion), the great majority of time, customer demand is what customers actually want to purchase. It is how much of something that consumers are wanting. In todays economic environment, customers are being more cautious and selective with their spending money. A company needs to know the consumer demand so they know how to satisfy their demands which intern helps in growth of the organization. Todays customers demand authenticity and professionalism. Scripts and standard

responses arent enough to reinforce the brand; the organization must build customer loyalty, or make sales. Some key customers include: Bank and investment firms Suppliers manpower recruiting supply agencies customer Local population Govt. agency 2 OPERATION SYSTEM/PROCESS 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 often can be visualized with a flowchart as a sequence of activities There are three types of business processes: 1. Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management". 2. Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Advertising and Marketing, and Sales. 3. Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Call center, Technical support. A business process begins with a mission objective and ends with achievement of the business objective. Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos. A business process can be decomposed into several sub-processes[1], which have their own attributes, but also contribute to achieving the goal of the super-process. The analysis of business processes typically includes the mapping of processes and sub-processes down to activity level. Business Processes are designed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company). Business Processes can be modeled through a large number of methods and techniques. For instance, the Business Process Modeling Notation is a Business Process Modeling technique that can be used for drawing business processes in a workflow. 3 PROCESS CAPACITY A process is a unique combination of tools, materials, methods, and people engaged in producing a measurable output; for example a manufacturing line for machine parts. All processes have inherent statistical variability which can be evaluated by statistical methods.

The Process Capability is a measurable property of a process to the specification, expressed as a process capability index (e.g., Cpk or Cpm) or as a process performance index(e.g., Ppk or Ppm). The output of this measurement is usually illustrated by a histogram and calculations that predict how many parts will be produced out of specification (OOS). Process capability is also defined as the capability of a process to meet its purpose as managed by an organization's management and process definition structures ISO 15504. Two parts of process capability are: 1) Measure the variability of the output of a process, and 2) Compare that variability with a proposed specification or product tolerance The input of a process usually has at least one or more measurable characteristics that are used to specify outputs. These can be analyzed statistically; where the output data shows a normal distribution the process can be described by the process mean (average) and the standard deviation. A process needs to be established with appropriate process controls in place. A control chart analysis is used to determine whether the process is "in statistical control". If the process is not in statistical control then capability has no meaning. Therefore the process capability involves only common cause variation and not special cause variation. A batch of data needs to be obtained from the measured output of the process. The more data that is included the more precise the result, however an estimate can be achieved with as few as 17 data points. This should include the normal variety of production conditions, materials, and people in the process. With a manufactured product, it is common to include at least three different production runs, including start-ups. The process mean (average) and standard deviation are calculated. With a normal distribution, the "tails" can extend well beyond plus and minus three standard deviations, but this interval should contain about 99.73% of production output. Therefore for a normal distribution of data the process capability is often described as the relationship between six standard deviations and the required specification Q. What factors do you consider while selecting a plant location site to put up an automobile manufacturing facility? A facility layout is an arrangement of everything needed for production of goods or delivery of services. A facility is an entity that facilitates the performance of any job. It may be a machine tool, a work centre, a manufacturing cell, a machine shop, a department, a warehouse, etc. (Heragu, 1997). The final solution for a Plant Layout has to take into account a balance among the characteristics and considerations of all factors affecting plant layout, in order to get the maximum advantages. The factors affecting plant layout can be grouped into 8 categories: Materials Machinery Labor Material Handling Waiting Time Auxiliary Services The building Future Changes Materials

 The layout of the productive equipment will depend on the characteristics of the product to be managed at the facility, as well as the different parts and materials to work on. Main factors to be considered: size, shape, volume, weight, and the physical-chemical characteristics, since they influence the manufacturing methods and storage and material handling processes. The sequence and order of the operations will affect plant layout as well, taking into account the variety and quantity to produce. Labor Labor has to be organized in the production process (direct labor, supervision and auxiliary services). Environment considerations: employees safety, light conditions, ventilation, temperature, noise, etc. Process considerations: personnel qualifications, flexibility, number of workers required at a given time as well as the type of work to be performed by them. Material Handling Material handling does not add value to the product; its just waste. Objective: Minimize material handling as well as combining with other operations when possible, eliminating unnecessary and costly movements. Waiting time - Stock Objective: Continuous Material Flow through the facility, avoiding the cost of waiting time and demurrages that happen when the flow stops. On the other hand, the material waiting to flow through the facility not always represents a cost to avoid. As stock sometimes provides safety to protect production, improving customer service, allowing more economic batches, etc. Its necessary then to consider space for the required stock at the facility when designing the layout. Resting time to cool down or heating up Auxiliary Services Support the main production activities at the plant: Related to labor: Accessibility paths, fire protection installations, supervision, safety, etc. Related to material: quality control. Related to machinery: maintenance and electrical and water lines. The auxiliary services represent around 30% of the space at a facility. The space dedicated to auxiliary services is usually considered as waste. Its important to have efficient services to insure that their indirect costs have been minimized. The building If it has been already selected, its characteristics will be a constraint at the moment of designing the layout, which is different if the building has to be built. Future changes One of the main objectives of plant layout is flexibility. Its important to forecast the future changes to avoid having an inefficient plant layout in a short term.

 Flexibility can be reached keeping the original layout as free as possible regarding fixed characteristics, allowing the adjustment to emergencies and variations of the normal process activities. Possible future extensions of the facility must be taken into account, as well as the feasibility of production during re-layout. Machinery Having information about the processes, machinery, tools and necessary equipment, as well as their use and requirements is essential to design a correct layout. The methods and time studies to improve the processes are closely linked to the plant layout. Regarding machinery, we have to consider the type, total available for each type, as well as type and quantity of tools and equipment. Its essential as well to know about space required, shape, height, weight, quantity and type of workers required, risks for the personnel, requirements of auxiliary services, etc. Thus it is obvious that many top mgt. policies determine the plant layout objectives and scope of the plant activities. The layout engineer must have a clear and complete understanding of those top mgt. policies that have a bearing on plant layout objectives. Q. Differentiate between long range and short range sales production management? Planning is a fundamental activity of mgt. Forecasting forms the basis of planning. A forecast is an estimate of a future event achieved by systematically combining & casting forward in predetermined way about the past. Estimates of the future demand for products and services are commonly referred to as sales forecasts. The sales forecasts or demand forecasts are the starting point for the entire planning in production and operations mgt. Short-Range Forecast: This forecast has a time span upto one year, but is generally less than three months. It can be even for monthly or weekly forecasts. It is used for planning purchasing, job-scheduling, workforce levels, and, production levels. Long-Range Forecast: It has a time span of 3 yrs. or more. They are used in new product planning and development, capital expenditure planning and planning for facility location or expansion and research and development. Apart from this, there are other features, they are: Long-Range forecasts pertain to be more comprehensive than Short-Range Forecasts. The forecasting methodologies used in short-range forecasting are different from those used for long-range forecasting. Short-range forecasts tend to be more accurate than long-range forecasts. Thus to conclude, they are also used to predict profits, revenues, costs, prices, and so on. Hence, effective planning in both short and long run depends on forecast of demand for companys products. Q. Briefly explain Johnsons rule or algorithm used for sequencing? A. Johsons rule of algorithm is used for sequencing n jobs through two work centres.

Statement of johnsons rule Step 1: List the processing/operation times from n jobs on the two work centres/machines Step 2: Scan all the processing/operation times for the n jobs on both machines/work centres and select the shortest processing / operation time in either work centre/machine Step 3: if the shortest processing / operation time happens to be for a job on the first work centre/ machines place the job first in the sequence. If it is at the second work centre/machines, place the job last in the sequence. Step 4: remove the job assigned to the sequence in the step 3 from further consideration. Step 5: repeat step 2,3 and 4 until all the jobs are assigned into the sequence. Note: in the case of a tie choose the job with the smallest subscriptfirst for assigning into the sequence. On the other hand any job has same processing/operation time on machine M1 and M2 then give preference to the processing time/ operation time on M1 to be considered first for assigning that job into the sequence the above rules are known as thumb rules to be followed in case of tie between two job/machines. Q. Discuss various classifications of technology. Explain the role of technology in production and operations management ? Classifications of technology Production Technology Production technology is the technology for production of goods. The industries adopting new technologies for their production of goods and services. The main purposes of production technology are reduces production costs as well as wastages of raw materials and maintain the qualities of output. Now a days industries spend more money for technologies. Group Technology Group technology means , machines are grouped into cells and the cells function like a product layout within a large shop or process layout. Each cell in the CM layout is formed to produce a single parts family- few parts, all with common characteristics, which usually means that they desire the same machines and have similar machine settings. Operations Technology The technology uses for operations strategies of industries. The changes brought about by new technologies keep operations managers on their toes, and require them to up to date on the latest develops in operations technologies. Role of technology To reduces the cost of production. To increases the level of out put. To maintain and control the quality of products. To reduces the wastages

Useful handling of raw materials

Q. Differentiate between manufacturing & services? Service Manufacturing simultaneous production and consumption (co-creation consumption and production at different stages between producer and consumer) many critical aspects are intangible many critical aspects are tangible concept of inventory may not be material, but can be usually has inventory and buffers virtual such as requests and, in healthcare, patients waiting for service can be considered a type of inventory considerable variability in service delivery some variation open universe in variety of service cases closed set in variety in product manufacturing substantive and peripheral benefits mainly substantive product benefits

Q. Distinguish between P system from Q system of Inventory management? FIXED ORDER INTERVAL SYSTEM OR P-SYSTEM Inventory position is monitored at discrete point in time Once an order is placed at time t, another order can not be placed until (t + T), and the second order will not be filled until the lead time period has elapsed, at (t + T + L) Thus safety stock protection is needed for the lead-time L plus the order interval T In the fixed order size system, safety stock is needed only for the lead-time period, because the inventory position is monitored with each transaction In the fixed order size system, a higher than normal demand causes a shorter time between orders whereas in the fixed order interval system, the result would be a larger order size Predetermined inventory level (E) E = S + RT + LR Where S is the safety stock considering demand variation during (T + L) period and (RT + LR) is the average demand during (T + L) period The order interval (T) 20 =HR FIXED ORDER QUANTITY SYSTEM OR Q-SYSTEM Safety stock is needed to protect against a stockout after the reorder point is reached and prior to receipt of an order This period is usually called lead-time The reorder point B is composed of the mean lead-time demand plus safety stock Average inventory level on hand just before the receipt of a replenishment order is the safety stock. Over many cycles, the inventory level will sometimes be more than the safety stock and sometimes less, but it should average to the safety stock Larger the order quantity, fewer the annual orders, which means the fewer opportunities for stockout to occur Safety stocks are dependent on stockout cost or service level, holding cost, demand variation and lead-time variation

 Working stock quantity is determined before considering safety stock In the order quantity formulations, it is assumed that the order quantity can be determined by an economic balance of the relevant cost, and that it is independent of the reorder point. Q. With the help of neat diagram explain product development process? The development of competitive new products is a prerequisite for many companies success. Product development does not necessarily mean discovering revolutionary new inventions, nor does it just involve re-vamping old solutions. A successful product often results from thinking along new lines, free from conventional approaches and traditional choices of materials and designs. Today, the word product can have many different meanings. Here, we will be using the term in the sense of a mechanical product. To a car salesman, a car is the product. But a car consists of a number of components which are often supplied by independent manufacturers. To an engine supplier, an engine is the product. To take this analogy one step further, an engine is also comprised of a number of different components, all of which may be viewed as separate products. The task of developing a new product and, to an even greater extent, the task of designing a new product, may rightfully be called "creating" a product. Each individual step of the process has to be examined and approached as though it were a "development project" in its own right, whether we look at the car as a whole or at one of the components used to make it.

1. Idea generation: new product development starts with idea generation which is a systematic search for new-product ideas. It is necessary to generate new ideas in order to find a few good ones. The new ideas may be generated from various sources such as internal sources and external sources. 2. Idea screening: Idea screening is the process of screening new product ideas in order to spot good ideas and drop poor ones as earlier as possible. The firm must go ahead with those product ideas that will turn into profitable products. 3.Concept Development and Testing: An attractive idea must be developed into a product concept. The product concept is a detailed version of the product idea stated in meaningful consumer terms. Concept testing: Calls for testing new product concepts with target customer group to find out whether the concepts have strong customer appeal. Marketers may present a word or picture description of the

product concept or present virtual reality program using computers and sensory devices to stimulate reality. 4. Marketing strategy Development: This step involves an initial marketing strategy for introducing the new product to the market. 5. Business Analysis: Once the company has decided on its product concept and marketing strategy, it can evaluate the business attractiveness of the proposal. Business analysis involves a review of the sale, and profit projections for a new product to find out whether these factors satisfy the companys objectives. 6. Product Development: it involves developing the product concept which has existed as a word description or a drawing into a physical product by the R & D department. One or more physical versions are developed and tested. 7. Test Marketing: If the product passes functional and consumer tests, then test marketing is conducted. In this products are produced in a small batch and the product and marketing programs are introduced into more realistic market setting. 8. Commercialization: Based on the information obtained from test marketing the company can make final decision about whether to launch the new product in full scale to the market or not. Commercialization involves, full scale manufacturing and marketing of the product which will involve considerable expenditure to the company.

Q. What is preventive Maintenance? In marked contrast to corrective maintenance is preventive maintenance, which is undertaken before the need arise and aims to minimize the possibility of unanticipated production interruption or major breakdowns. Preventive maintenance consists of: Proper design and installation of equipment, Periodic inspection of plant and equipment to prevent break downs before they occur, Repetitive servicing, upkeep and overhaul of equipment Adequate lubrication, cleaning and painting of buildings and equipments

The key to all good preventive maintenance is inspection. It should cover virtually everything, including production machinery, motors, controls, material handling equipment, process equipment, lightings, buildings and plant services. Q. Define inventory? Explain the functions of inventory management? Inventory can be used to refer to the stock on hand at a particular time of raw material, goods in process of manufacture, finished products, merchandised purchased for resale, and like, tangible assets which can be seen, measured and counted. In connection with financial statements and accounting records, the reference may be to the amount assigned to the stock of goods owned by an enterprise at a particular time Functions of Inventory management are,

1. Adequate supply of materials, stores etc, Inventory control ensures an adequate supply of materials, stores etc, minimize stock-outs and shortages, and avoids costly interruptions in operations. 2. Minimizes the various cost: It keeps down investment in inventories, inventory carrying costs and obsolescence loses to the minimum. It will lead to economies of scale and low production cost. 3. Facilitates purchasing economies: Through the measurement of requirements on the basis of recorded experience inventory facilitates purchasing economies. It will reduce the chance of over stock of materials. 4. Eliminates duplication: It eliminates duplication in ordering or in replenishing [to fill up again] stocks by centralizing the source from which purchase requisition emanate. 5. Better utilization of stocks: It permits a better utilization of available stocks by facilitating inter department transfers within a company. It leads to reduce in wastage of materials and one department can seek other departments help if there is a shortage of materials. 6. Check against the loss of materials: By keeping a standard set of books of record, inventory provides a check against the loss of materials through carelessness or pilferage. It acts as a most useful weapon to prevent the losses for big firms. 7. Facilitates cost accounting: It facilitates cost accounting activities by providing a means for allocating material costs to products, departments or other operating accounts. It also helps to keep up to date records. 8. Comparisons between operations and periods: It enables management to make cost and consumption comparisons between operations and periods. It also helps to forecast the future demand and supply. 9. Location and disposition of inactive and obsolete items: It serves as a means for the location and disposition of inactive and obsolete items of stores. 10. Preparing financial statements: Perpetual inventory values provide a consistent and reliable basis for preparing financial statements. It also helps to budget the fund required for future operations. 11. Other functions: a. To meet anticipated demand b. To smooth production requirements

Q. State the principles of plant layout .Explain the different types of plant layout with one example each. Definition: Plant layout refers to the arrangement of physical facilities such as machines, equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of raw material to the delivery of the final product. plant lay out is an important strategic level decision-making for an organization. One of the key features of a conversion process (manufacturing system) is the efficiency with which the products (services) are transferred to the customers. This fact will include the determination of where to place the plant or facility. The selection of location is a key-decision as large investment is made in building plant and machinery. It is not advisable or not possible to change the location very often..So an improper locationof plant may lead towaste of all the investments made in building and machinery, equipment. .Before a location for a plant is selected, long range forecasts should be made anticipating future needs of the company. The plant location should be based on the companys expansion plan and policy, diversification plan for the products, changing market conditions, the changing sources of raw materials and many other factors that influence the choice of the location decision. Principles of Plant Layout

1. Principle of integration: A good layout is one that integrates men, materials, machines and supporting services and others in order to get the optimum utilization of resources and maximum effectiveness.2. 2. Principle of minimum distance: This principle is concerned with the minimum travel (or movement) of man and materials. The facilities should be arranged such that, the total distance travelled by the men and materials should be minimum and as far as possible straight-line movement should be preferred. 3. Principle of cubic space utilization: The good layout is one that utilizes both horizontal and vertical space. It is not only enough if only the floor space is utilized optimally but the third dimension, i.e., the height is also to be utilized effectively 4. Principle of flow: A good layout is one that makes the materials to move in forward direction towards the completion stage, i.e., there should not be any backtracking. 5. Principle of maximum flexibility The good layout is one that can be altered without much cost and time, i.e., future requirements should be taken into account while designing the present layout. 6. Principle of safety, security and satisfaction: A good layout is one that gives due consideration to workers safety and satisfaction and safeguards the plant and machinery against fire, theft, etc. 7. Principle of minimum handling: A good layout is one that reduces the material handling to the minimum TYPES OF LAYOUT: There are mainly four types of plant layout: (a) Product or line layout (b) Process or functional layout (c) Fixed position or location layout (d) Combined or group layout PRODUCT OR LINE LAYOUT: In this type of layout the machines and equipments are arranged in one line depending upon the sequence of operations required for the product. It is also called as line layout. The material moves to another machine sequentially without any backtracking or deviation i.e the output of one machine becomes input of the next machine. It requires a very little material handling. It is used for mass production of standardized products.

Advantages of Product layout: Low cost of material handling, due to straight and short route and absence of backtracking Smooth and continuous operations Continuous flow of work Lesser inventory and work in progress Optimum use of floor space Simple and effective inspection of work and simplified production control Lower manufacturing cost per unit Disadvantages of Product layout: Higher initial capital investment in special purpose machine (SPM) High overhead charges Breakdown of one machine will disturb the production process. Lesser flexibility of physical resources.

PROCESS LAYOUT: In this type of layout the machines of a similar type are arranged together at one place. This type of layout is used for batch production. It is preferred when the product is not standardized and the quantity produced is very small.

Advantages of Process layout: Lower initial capital investment is required. There is high degree of machine utilization, as a machine is not blocked for a single product The overhead costs are relatively low Breakdown of one machine does not disturb the production process. Supervision can be more effective and specialized. Greater flexibility of resources. Disadvantages of Process layout: Material handling costs are high due to backtracking More skilled labour is required resulting in higher cost. Work in progress inventory is high needing greater storage space More frequent inspection is needed which results in costly supervision COMBINED LAYOUT: A combination of process & product layout is known as combined layout.

Manufacturing concerns where several products are produced in repeated numbers with no likelihood of continuous production, combined layout is followed

FIXED POSITION OR LOCATION LAYOUT: Fixed position layout involves the movement of manpower and machines to the product which remains stationary. The movement of men and machines is advisable as the cost of moving them would be lesser. This type of layout is preferred where the size of the job is bulky and heavy. Example of such type of layout is locomotives, ships, boilers, generators, wagon building, aircraft manufacturing, etc.

Advantages of Fixed position layout: The investment on layout is very small. The layout is flexible as change in job design and operation sequence can be easily incorporated. Adjustments can be made to meet shortage of materials or absence of workers by changing the sequence of operations. Disadvantages of Fixed position layout: As the production period being very long so the capital investment is very high. Very large space is required for storage of material and equipment near the product. As several operations are often carried out simultaneously so there is possibility of confusion and conflicts

Q. Explain the uses and limitations of BE analysis. Disadvantages and advantages of breakeven analysis

Example of how a breakeven chart should look. Breakeven analysis Breakeven analysis is the relationship between cost volume and profits at various levels of activity, with emphasis being placed on the breakeven point. The breakeven point is where the business neither receive a profit nor a loss, this is when total money received from sales is equal to total money spent to produce the items for sale. 1) It is simple to conduct and understand. 2) It shows profit and loss at different levels of output. 3) It can cope with changing circumstances. e.g. the following changes in the business environment can be shown in a break even chart. It assumes that all output is sold at the given price (this may well be untrue) . 1. Although it can cope with changes in circumstances, these factors change regularly reducing its usefulness as a forecasting tool. 2. The model assumes that costs increase constantly and do not benefit from economies of scale. If the firm obtains purchasing economies of scale then its total cost line will no longer be straight. 3. Break-even analysis is only as good as the data upon which it is based. Poor quality data will lead to inaccurate conclusions being drawn. Uses of a breakeven analysis Breakeven analysis enables a business organization to: 1. Measure profit and loses at different levels of production and sales. 2. To predict the effect of changes in price of sales. 3. To analysis the relationship between fixed cost and variable cost. 4. To predict the effect on profitability if changes in cost and efficiency. Even though breakeven has these advantages or uses, there are also several demerits of break even analysis. Disadvantages of breakeven analysis 1. Assumes that sales prices are constant at all levels of output. 2. Assumes production and sales are the same. 3. Breakeven charts may be time consuming to prepare.

4. It can only apply to a single product or single mix of products. Breakeven formulas Breakeven point: There are two ways of calculating the breakeven point, in units and in sales revenue. The first way is by dividing fixed cost by contribution per unit this gives the result in units or by dividing fixed cost by c/s ratio which gives the sales revenue. The c/s ratio is the contribution to sales ratio this is given by dividing contribution per unit by selling price per unit. Example of Breakeven point ABC Ltd expects to sell 10000 units at $10 each. The variable cost per unit is $5 and the fixed cost is $15000 per annum. Calculate the breakeven point in units and in sale revenue. To calculate the BEP in units you would use the formula fixed cost divided by contribution per unit. Therefore you would divide $15000 by contribution, which is selling price $10 minus variable cost per unit $5. $15000 divided by $5. The final answer is 3000 units In terms of sales revenue you would divide the fixed cost by the c/s ratio. $15000 divided by (contribution divided by selling price per unit) . $15000 divided by ($5 divided by $10).$15000 divided by 0.5. The final answer is $30000. And we know this is the correct answer because when we multiply the breakeven point in units by the selling price we get the same answer. Target Profits or Target Loses Breakeven formulas can be changed a little to show profits or losses. The new formula is: Fixed cost + profit (loss) c/s ratio or Fixed cost +profit (loss) contribution per unit Q. What do you mean by Facility location? Discuss the objectives and significance of Facility location? Ans: Facility location is actually a term used in operation management, facility location or location analysis is done so that the better uses of the location can be understood. The company by understanding the materials and production process done nearby the location can save ample time in production process and also save a lot in terms of transportation cost. And also the company can find out optimum position for the location of the company so that all the factors that are needed will be not a long distance from the company. Objectives of Location Design: 1) Profit oriented organisations have the objectives of maximising the potential profits. 2) Non profit organisations strive to achieve a balance between cost and level of customer service they provide. 3) To identify the best location for a firm or to find a number of acceptable locations from which to choose one. 4) To maximise the benefit of location to the firm. 5) To have competitive advantage. Significance:

1) Involve a long-term commitment. 2) Often have an impact on investment required, operating costs and revenues at well as operations. 3) A wrong choice of location might result in excessive transportation costs, shortage of qualified labour, loss of competitive advantage, inadequate supplies of raw material etc. 4) For services, a poor location could result in lack of customer and/or high operating costs. Q. What is Plant layout? Ans: Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. According to Riggs, the overall objective of plant layout is to design a physical arrangement that most economically meets the required output quantity and quality. According to J. L. Zundi, Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized. Q. Discuss the Malcolm Baldrige National Quality Award (MBNQA) in detail, with help of a model? It is an integrated approach to help organizations achieve superior performance by helping companies focus on, delivery of ever-improving value to customers and stakeholders. Improvement of overall organizational effectiveness and capabilities. Organization and personal learning. The Malcolm Baldrige National Quality Award recognizes U.S. organizations in the business, health care, education, and nonprofit sectors for performance excellence. The Baldrige Award is the only formal recognition of the performance excellence of both public and private U.S. organizations given by the President of the United States. It is administered by the Baldrige Performance Excellence Program, which is based at and managed by the National Institute of Standards and Technology, an agency of the U.S. Department of Commerce. Up to 18 awards may be given annually across six eligibility categories manufacturing, service, small business, education, health care, and nonprofit. As of 2010, 91 organizations had received the award. The Baldrige National Quality Program and the associated award were established by the Malcolm Baldrige National Quality Improvement Act of 1987 (Public Law 100107). The program and award were named for Malcolm Baldrige, who served as United States Secretary of Commerce during the Reagan administration, from 1981 until Baldriges 1987 death in a rodeo accident. In 2010, the program's name was changed to the Baldrige Performance Excellence Program to reflect the evolution of the field of quality from a focus on product, service, and customer quality to a broader, strategic focus on overall organizational quality called performance excellence. The award promotes awareness of performance excellence as an increasingly important element in competitiveness. It also promotes the sharing of successful performance strategies and the benefits derived from using these strategies. To receive a Baldrige Award, an organization must have a rolemodel organizational management system that ensures continuous improvement in delivering products and/or services, demonstrates efficient and effective operations, and provides a way of engaging and responding to customers and other stakeholders. The award is not given for specific products or services.

Criteria for Performance Excellence The Baldrige Criteria for Performance Excellence serve two main purposes: (1) to identify Baldrige Award recipients that will serve as role models for other organizations and (2) to help organizations assess their improvement efforts, diagnose their overall performance management system, and identify their strengths and opportunities for improvement. In addition, the Criteria help strengthen U.S. competitiveness by improving organizational performance practices, capabilities, and results facilitating communication and sharing of information on best practices among U.S. organizations of all types serving as a tool for understanding and managing performance and for guiding planning and opportunities for learning. The Baldrige Criteria for Performance Excellence provide organizations with an integrated approach to performance management that results in delivery of ever-improving value to customers and stakeholders, contributing to organizational sustainability improved organizational effectiveness and capabilities organizational and personal learning. The following three sector-specific versions of the Criteria, which are revised every two years, are available for free from the Baldrige Program: Criteria for Performance Excellence Education Criteria for Performance Excellence Health Care Criteria for Performance Excellence Benefits of using MBNQA: Achieves sustainable results in todays challenging environment. Helps organizations to think strategically. Helps companies align processes, people, resources and customers needs MBNQA criterias re used by: Whether your organization is small or large; involved in service manufacturing, government, or nonprofit work, and has one office or multiple sites across the globe, the criteria provides a valuable framework that helps you measure performance and plans in an uncertain environment. The criterion helps align resources with approaches, such as ISO 9000, Lean, Balanced Scorecard and Six Sigma. It improves communication, productivity and effectiveness. In addition it identifies improvement areas and strategic goals. Q. What do you mean by Facility location? Discuss the objectives and significance of Facility location? (could
be repetitive)

Ans: Facility location is actually a term used in operation management, facility location or location analysis is done so that the better uses of the location can be understood. The company by understanding the materials and production process done nearby the location can save ample time in production process and also save a lot in terms of transportation cost. And also the company can find out optimum position for the location of the company so that all the factors that are needed will be not a long distance from the company.

Objectives of Location Design: 1) Profit oriented organisations have the objectives of maximising the potential profits. 2) Non profit organisations strive to achieve a balance between cost and level of customer service they provide. 3) To identify the best location for a firm or to find a number of acceptable locations from which to choose one. 4) To maximise the benefit of location to the firm. 5) To have competitive advantage.

Significance: 1) Involve a long-term commitment. 2) Often have an impact on investment required, operating costs and revenues at well as operations. 3) A wrong choice of location might result in excessive transportation costs, shortage of qualified labour, loss of competitive advantage, inadequate supplies of raw material etc. 4) For services, a poor location could result in lack of customer and/or high operating costs. Q) What is Plant layout? Ans: Plant layout refers to the arrangement of physical facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of material at the lowest cost and with the least amount of handling in processing the product from the receipt of material to the shipment of the finished product. According to Riggs, the overall objective of plant layout is to design a physical arrangement that most economically meets the required output quantity and quality. According to J. L. Zundi, Plant layout ideally involves allocation of space and arrangement of equipment in such a manner that overall operating costs are minimized.