Professional Documents
Culture Documents
2 Marks Unitwise OM Subject
2 Marks Unitwise OM Subject
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.
Page 1
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
It is a process in which resources or input are converted in to more useful
products.
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.
Page 2
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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.
Page 3
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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.
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
Page 5
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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.
Page 6
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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?
It is the process of determining from the product structure and planned order
releases and the gross requirements for components.
26. What is pegging?
Page 7
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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 the entire enterprise starting from the supplier to the customer covering
logistics, financial & human resources.
34. What is tracking signal?
Page 8
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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.
UNIT 3
DESIGN OF PRODUCE SERVICE AND WORK SYSTEM
Page
10
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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.
Examine
breakdown
Develop measure
Page
12
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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
UNIT -4
MATERIALS MANAGEMENT
1. What are the types of inventory cost?
Ordering cost
Carrying cost
2. What is capital cost?
Page
13
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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.
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?
Page
14
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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
Page
16
BA 9221 OPERATION MANAGEMENT NOTES
N.PRAKASH A.P MBA DEPT
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.
Page
18