2 Marks Unitwise OM Subject

BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
2 MARKS
UNIT 1
PRODUCTION SYSTEM
1.what is production?
Any process or procedure developed to transform a set of input elements like
men, materials, capital information and energy in to a specified set of output
elements like finished products or services in proper quantity or quality.
It is a process by which goods and services are created.
2.what is a system?
System is a regularly interacting or inter depending group of items forming a unified
whale.
3.what is meant by production system?

Production system is a set of interrelated component or sub-system which receives
the input from the environment transform it in to desirable outputs.
It includes all functions require to design produce, distribute, etc…
Eg: garments, car, computer, mobile phone
4.Mention the nature of production system?
System,Organisational function,Transformation process,Creating utility
5.What is production management?
It refers to the application of management principles to a production of factory.
Factory system
6.What is operation management?
It is a process in which resources or input are converted in to more useful products.
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7. What are the objectives of production management?
1. Maximizing the customer through
2. Good quality
3. Employee satisfaction
4. Production possible
5. Maximum efficiency
6. Possible profit (or) return of investment
7. Ultimate aim or production
8. What is agile management?
The ability to adapt quickly to change in volume of demand in the product mix
demanded and in product design or in delivery schedule, as become a major
competitive strategy and competitive advantage to the firm.
9. What is process production?
The process are interlink and production is carried out on continuously through a
uniform and standardised sequence manner / operations. Eg: crude oil, extraction.
10.What is intermitant production?
Facility must be flexible enough to handle a variety of products and sizes or where
the basic nature of the activity imposes change of important characteristics of the
input similarly.
11. What is the nature of strategic management?
It is usually a formulation of goals and a set of action plans for accomplishment of
the goals.
12. What is strategic management?.
It is the process of formulation, implementing and evaluating strategy to achieve
organizational goals.
When it is defined as set of managerial decisions and actions that determines long
term performance operation.
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13. What is procuring?
It is a series of steps and processes by a firm to acquire the required components
to produce goods & services it is also called as “procuring”.
It is the act of moving some of the firm internal activities and decision
responsibilities to external providers the activity to be outstores may be
encompassed and entire function or may entile an activity embedded within a
function
14. What do you mean by country factors?
Resource availability, Infrastructure, Community, Culture
15. What is contract manufacturing?
It is an arrangement where in an international business place orders with local
manufactures for the production of products that are expected to sell locally or
exported to foreign countries.
16. What is supply chain management?
It is a sequence of organization facility function that are involved in producing
and delivering a product.
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Unit 2
Forecasting Capacity Techniques
1. What is forecast?
It is a estimate of an event which will happen in future. It is only an estimate based
on the past data related to a particular event, proper care must be given in estimating
it.
2. What are the types of forecast?
1. Technological forecasting
2. Economic forecasting
3. Demand forecasting.
3. What are the elements of good forecast?
The good forecast should be
1. Accurate
2. Timely reliable
3. Meaning full units
4. Written form simple to understand & use
4. What are the objectives of demand forecasting?
1. Short range objectives
2. Long range objectives
5. What is naïve approach?
It is a simple way to forecast in which the forecast of demand for the next period
is assumed to be equal to the actual demand in the current period.
6. Compare exponential smoothing with trend adjustments?

Simple exponential smoothing method must be modified when a trend is present
to adjust . forecast including trend
Forecast including trend(fit)t=ft+Tt .
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Ft=exponential smooth forecast
Tt=exponential smooth trend.
β=(0≤α,β≤1)
ft=α(At-1)+(1-α)(ft-1+Tt-1)
t=β(ft-ft-1)+(1-β)Tt-1
A=actual demand of this period.
Ft=forecast of the last period.
Tt=trend of the last period.
Y=α+βx
7. What is capacity planning?

The amount of output a system is capable of achieving over a specific period of time
is called capacity planning.
8. What are the types of capacity?
Production capacity, Design capacity, Effective capacity, Maximum capacity,
Measures of capacity
9. What is capacity cushion?
It is an addition amount of production capacity over and above the required capacity
to meet the expected demand.
10. What is diseconomics of scale?
Above a certain level of output addition volume of output results in ever increasing
average unit cost this phenomenon is known as diseconomics of scale.
11. What is experience curve?
The concept that avous a firm to increase the production capacity without
additional capital investment.
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12. Methods of selecting among alternative capacity?

1. Break even analysis
2. Financial analysis
3. Decision theory
13. What is aggregate production planning?
It is the process of determining output levels of products growth over the next to
16-18 month period on a weekly or monthly basis. It indicate the overall level of
output determining the business plan.
14. What is aggregate capacity planning?
It is the process of devising a plan for providing a production capacity scheme to
support intermediate range sales forecast.
15. What is rough cut capacity planning?
Tenitative master production schedule to test is feasibility in terms of capacity
before MPS (Master Production Schedule) is finalized.
16. What is production capacity?
Production capacity is defined as maximum production rate or facility of a plan.
17. What is capacity decisions?
It involves capacity decisions that must merge consumer demands with human,
materials and financial resources of the organization.
18. What is capacity requirement planning?
It is a technique to determine the labour and equipment capacity needed to meet
the objectives.
19. What is master production schedule ?
It sets the quantity of each finished product to be completed in each time period of
short range planning horizon.
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20. What are the functions of mps?

1. Translating aggregate plan
2. Evaluating alternative master schedule
3. Generating material requirements
4. Generating capacity requirements
5. Facilitating information processing
6. Maintaining valid priorities
7. Effectively utilizing the capacity
21.What is resource requirement planning?
Determination of the amount and timing of production resources needed to
produce finished products as per master production schedule. It is also called as
rough cut capacity planning. It is used to evaluate the feasibility of a trial mps.
22. What are the objectives of material resource planning?
1. To improve the customer service by meeting the delivery schedule promise &
shortening the delivery lead time.
2. To reduce inventory cast by reducing inventory levels.
3. To improve plan operating efficiency by better use of productive resources.
23. What is MRP input?
It is a inventory status file it gives complete and u to date information on the on-
hand inventories, gross requirements, scheduled receipt, and planned order releases
for the item.
24. What is bill of material?
It provides the information recording all the materials parts and the subassembly
that go in to the end product.
25. What is product explosion?
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It is the process of determining from the product structure and planned order
releases and the gross requirements for components.
26. What is pegging?
It is the process of tracing mrp records and all the levels of the product structure
to identify how changes in the record of one components with affects the record of
the other component.
27. What is cyclic counting?
Counting on on hand inventory at regular intervals to verify inventory quantities
shown in theMRP.
28. What is time fence?
It designated the length of time that must pass without changing the mps to
stabilize the mrp system.
29. What is period order quantity?
It also order quantity and lot sizing policy in which order quantity varies according
to a comparision of holding order cost.
30. What is manufacturing resource planning II?
It addresses the planning a control activity related to materials, capacity, finance ,
engineering , sales & marketing.
31. What is closed loop MRP II?
A system built around material requirement planning I and also including
additional planning functions such as crp & mps.
32. What is distribution requirement planning?
A time phased stock replenishment plan for all levels of a distribution network
using the MRP planning logic.
33. What is Enterprise Resource Planning?
A software package developed for optimum use of resources of an enterprise in a
planned manner it intergrates the entire enterprise in a planned manner it intergrates
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the entire enterprise starting from the supplier to the customer covering logistics,
financial & human resources.
34. What is tracking signal?
It is a measurement of how well the forecasting is predicting actual values.
Tracking signal= running sum of forecast errors
Mean absolute deviation
35 What is meant by Reliability ?
Reliability of data refers to the aspects of data which make it consistent over long
periods of time
36 Difference between Correlation coefficient & regression coefficient.:
correlation coefficient for short is a measure of the degree of linear relationship
between two variables, usually labeled X and Y. While in regression the emphasis
is on predicting one variable from the other, in correlation the emphasis is on the
degree to which a linear model may describe the relationship between two variables.
In regression the interest is directional, one variable is predicted and the other is the
predictor; in correlation the interest is non-directional, the relationship is the critical
aspect.
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UNIT 3
DESIGN OF PRODUCE SERVICE AND WORK SYSTEM
1. What are the factors influencing product design?

1. Customer requirements
2. Convinence of the operator or user
3. Trade off between form and function types of material used
4. Work methods & equipments
5. Cost/price ratio
6. Product quality process capability
7. Effect on existing product
8. Packaging
2. What is values engineering?
It is concerned with the improvement of design & specification at various stages
of product planning & development.
3. What is process planning?
It is concerned with planning the conversion process needed to convert the raw
material in to finished product.
1. Process design
2. Operation design
5. What is process selection?
It refers to the way of production of goods & services is organized.
6. What is process management?
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It refers with the selection of inputs, operation, workflows & methods & transform
inputs to output.
7. What is product strategy?

It is an organization process for the selection of resource inputs in to output.
8. What is process strategy?
1. Process focus(carpenting, printing, jobshop)
2. Repetive focus(motorcycle, automobiles)
3. Product focus(skilled operators)
9. What is vertical integration?
The amount of production & distribution chain which is brought under the
ownership of a firm.
1. Backward integration ex: reliance company
2. Forward integration ex: Indian oil corporation limited
10. What is capital intensity?
Predominant resources used in manufacturing consists of machines & equipments
rather than human labour.
Advantage: product quality superior
Disadvantage: low volume, high capital.
11. What is flexibility?
Ability to respond fast to the need of customer .
Ability of the production system to change quickly from production of one
product service to another.
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12. What are the steps involved in work study?

Method study work study work measurement
Select select
Record record
examine
Operation flow motion firm
Process chart process chart chart analysis chart define
Examine breakdown
Develop measure
Define time synthesis analytical

study
estimating
install
estimate normal
time
to achieve
13. What is work study?
It is a systematic critical examination of factor affecting productivity for the
purpose of improvement.
Work study is the body of knowledge concern with the analysis of work method
and the standard of proposed work method.
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12
14. What are the objectives of work study?
1. Present of doing and any
2. To measure the work content of the job
3. To measure the one qualified employee time required of possible workman
4. Increase I productivity
5. To improve the operation efficiency.
15. What is simultaneous motion (SIMO) chart?
Movement of the body members of the operator expressed in terms of therbigs on
common time scale
16. What is cyclic graph?
Movement of hand by exposing from movement of place light emitted from small
bulb attacked to the operation figure.
17. What is chromo cyclic graph?
It is the modification of cyclic graph in which recording is made using flash
lights
18. What is method study?
It is the systematic recording analyst and critical examination of existing and
proposed ways of doing work and development application of easier and new
production method.
19 What is meant by Concurrent Engineering or Simultaneous Engineering?
Concurrent engineering, also known as simultaneous engineering, is a non-linear
product or project design approach during which all phases of manufacturing operate
at the same time - simultaneously.
Both product and process design run in parallel and occur in the same time frame.
Product and process are closely coordinated to achieve optimal matching of
requirements for effective cost, quality, and delivery
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13
UNIT -4
MATERIALS MANAGEMENT
1. What are the types of inventory cost?
• Ordering cost
• Carrying cost
2. What is capital cost?
It is the loss of interest on money involved invested in inventory building &
inventory control equipment.
3. What is inventory control?
When to replenish the inventory of an item.
How much of an item to order when the inventory of the item is to be replenished.
4. What is economic order quantity?
The sum of ordering cost& carrying cost for each item order size which is equal to
total cost. The ordersize at which the total cost is minimum is caused economic
quantity q=optimal order size.
5. What is back order?
The time or order will be received instaneous and they are consumed at a constant
rate. The purchase price per unit remains same irrespective of order size. If there is
no stock at the time of receiving a request for the items, it is assued that it will be
satisfied at a later data with a penalty.
6. What are the types of wastages in JIT?
Over production , Higher cost waiting time & delay ,Unnecessary handling or
transportation ,Unnecessary inventory ,Processing waste, Inefficient work methods,
Defective products.
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UNIT5
PROJECT & FACILITY PLANNING
1. What is a project?
A project is a set of activities that use resources to accomplish the goals &
objectives
2. What is project management?
It is a decipline of planning, organizing, managing resources to bring about the
successful completion of specific project goals & objectives.
3. What are the challenges for project management?
1. To achieve all the project goals & objectives while honouring the project
constrain like scope, budget, time.
2. To optimize the allocation & integration of inputs necessary to meet
predefined objective.
4. What are the features of project management?
1. Total accountability
2. Project dedication
3. Requirement for co-ordination intregrated planning & control
5. What is the importance of project management?
• Global competition
• Knowledge explotion
• Corporate downsizing.
• Increased customer focus
• Rapid development of economics of nation
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6. What is project life cycle?
• Concept phase
• Initial planning or feasibility phase.
• Detailed planning phase
• Organization phase
• Execution phase termination phase
7. What is project management process?
• Planning
• Scheduling
• Control
• Team
• Matrix organization
• Project manager
• Scope statement
• Statement of work organization breakdown structure
• Responsibility assignment matrix
8. What is work break down schedule?
Individual elements components of a work, hierarchical structure which can be
scheduled .
9. What is resource availability or limits?
Resource availability due date, late penalities, activity information identify
all required activities.
10. What is schedule of project management?
Gantt chart 1.graph or bar chart for CRM(Customer Relationship
Management) 2.provide visual display pert schedule
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11. What is Gantt chart?
It is a diagrammatic or graphical depiction of time duration of activities against a
given period corresponding to the master scheduled. It is a horizontal bar chart to
keep track of progress of a project.
12. What is project network?
Network analysis is the general name given to contain specific techniques which
can be used for the planning management & control of projects.
13. What is an arrow?
Indicate activity & event nodes
A nodes is represented by a circle indicate event a point in time where one or more
activities start and finish.
14. What is dummy activity?
Indicates only precedence relationship does not require any time of effort.
15. What is event?
Signals the beginning or ending of an activity
Designates a point in time
Represented by a circle
16. What is network?
Shows the sequential relationship among activities using nodes and arrows.
17. What is slack variable or float?
The amount of time that an activity or group of activity can slip without causing
a delay in the completion of the project.
18. What is project crashing?
Reducing project time,
Crash cost cost of reducing activity time.
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19. What is facility location or plant location?
Plant location is a function of determining location for a plant for maximum
operating economy & effectiveness it become importance.
20. What is the importance of facility location?
factors Financial,Employment factors, distribution
21. What is the objectives of location decision?
• organization to maximize the potential profit
• To have competitive advantage
• To maximize the best of the location of the firm
• To identify the best location for the firm or to find a number of
acceptable location from which to choose one
22. What is the importance of location?
Long term commitment often to have a impact on investment required, operating
cost& revenues as per as well as operation
23. What is the general procedure for making a location?
1. Evaluation criteria for deciding the alternative location
2. Identify the critical factor(raw material, market proximity)
3. Developing the alternatives
4. Evaluating the alternatives
24. What are the methods which evaluate the location decision method?
Factor rating method, Break even analysis method ,Quantitative method
25. What is facility layout?
It refers to the configuration of departments work centers & equipments &
machinery with follow of materials or work through the production system.
It involves decision about the fiscal arrangement of economic activity center with
in a facility.
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26. What are the tools & techniques of layout?

Template
Operation sequence analysis different work center
Line balancing
Analyzing the layout using computers
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BA 9221 OPERATION MANAGEMENT NOTES

N.PRAKASH A.P MBA DEPT

3.what is meant by production system?

6. Compare exponential smoothing with trend adjustments?

7. What is capacity planning?

12. Methods of selecting among alternative capacity?

20. What are the functions of mps?

1. What are the factors influencing product design?

7. What is product strategy?

12. What are the steps involved in work study?

Define time synthesis analytical

26. What are the tools & techniques of layout?

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