Assignment- 1

Process Selection
Ans1 – Process- Sequences of activities that is intended to achieve some results typically to created
added value to the customers. It takes set of input resources which are then used to transform
something into output of products or services. Also defined as the act of transforming inputs to
outputs of a higher value.

Ans2 – Process Selection- Process Selection refers to the way an organization chooses to produce
its good or services.
It takes into
1. account selection of technology,
2. capacity planning,
3. layout of facilities,
4. design of work systems.
Process selection is a natural extension after selection of new products and services. Basically, it is
overall sequence of activities required to achieve product specification.
It specifies workstations to be used, tools and machinery to be used and other inputs and supports
to be used.

Ans3 – Factors Affecting Process Selection

1) Nature Demand-
- Demand for any product or service is dynamic in nature.
- It is hugely affected by the change in the price of the product
2) Degree of Vertical Integration-
- The amount of production and distribution chain that is brought under the ownership of the
business. Tells the number of process to be planned and designed.
3) Flexible Production-
- Product flexibility- degree of agility of the production system to shift from manufacturing of a
product to another.
- Volume Flexibility- Ability to quickly change the units being produced with respect to change
in the quantity demanded.
4) Degree of Automation
5) Quality-
- High quality products can be mass produced using better technology.
- Increased uniformity
6) Degree of customer contact-
- More in case of services
 - Less in case of manufacturing a product
Ans4) Process Strategies-
- Known as an organization’s approach to transform input resources into output of output of
goods and services.
- Objective is to build such a production system that can meet the customer’s requirements
and product specifications within the constraints of costs and other.
3 key principles are:
- Choices should be made such that they fit the situations.
- Every process is to be treated as a building block that ultimately creates the organization’s
whole supply chain.
- Attention is to be paid on the processes which are between the supply chain whether are
being performed externally or internally.
There are four process strategies:
- Process Focus
- Repetitive Focus
- Product Focus
- Mass Customization

-
Ans5) Product-Process Matrix-
- A tool for analysing relations b/w the PLC and Process Life Cycle. Introduced by Robert H
Hayes and Steven C Wheelwright.
- It is used to examine the manufacturing market issues and the strategies available to tackle
those issues.
- It is a 2D matrix having PLC and Process Life Cycle.
- A firm is seen as an occupant of a distinct region in the matrix. It is identified by on what
stage of PLC and Process LC, the firm is.
 - The location of the firm on the matrix is defined be how organized the production system is
around the product and consumer.
Process structure Product structure Low volume Low volume Higher volume Very high-volume
Process life cycle stage Product life cycle Unique (one of a Multiple Standardized product Commodity product
↓ stage kind) Products
→
(Project)
Jumbled flow (job
Job shop
shop)
Disconnected line flow
Batch
(batch)
Connected line flow
Assembly line
(assembly line)
Continuous flow
Continuous
(continuous)

Assignment- 2
Outsourcing
Ans1) Outsourcing- An accord in which one firm hires another which is responsible to plan and
execute certain activities considering these can also be done internally. Sometimes comprises of
transferring the assets or the employees from one company to another.
Outsourcing is a procedure usually undertaken by the firms as a cost-saving tool.

Ans2) Basis of outsourcing:

- Reduce and control operating costs
- Improving company focus
- Gaining access to world-class capabilities
- Freeing internal resources for other purposes
- Streamlining or increasing efficiency for time-consuming functions
- Maximizing use of external resources
- Sharing risks with a partner company

Ans3) Make or Buy decision: The make-or-buy decision is the process of making a strategic choice
between producing an item internally (in-house) or buying it externally (from an outside supplier).
The buy side of the judgements is also known as outsourcing. Make-or-buy choices generally arise
when a company that has evolved a product or part or which has drastically modified a good or
part is having problem with certain suppliers or has declining capacity or dynamic demand.
The two most important factors to consider in a make-or-buy decision are cost and the availability
of production capacity. Cost issues should have all the relevant costing and be enduring in nature.
Clearly, the buying side organization will evaluate producing and buying costs.
Ans4) Types of outsourcing:
1. Professional Outsourcing - Professional outsourcing includes any type of specialized, professional
services. This includes legal, accounting, purchasing, and administrative jobs.
2. IT Outsourcing – Hiring firms to resolve and provide IT solutions.
3. Manufacturing outsourcing - Outsourcing manufacturing involves hiring a manufacturing
company to produce your goods at a cheaper price than you could get if you hired a company in
the United States to do it. One of the most common places to outsource the production is China
mostly because of the cheap labour and prices.
4. Project outsourcing - Sometimes firms need help with certain projects, but don’t require life-long
help. Like advertising, hr procurement etc.
Ans5) Advantages and Disadvantages of Outsourcing

Advantages Disadvantages
Reduces overhead costs No exclusivity
Global access to talent Potential job loss
Ease of employment handling Language barrier
Quickly implement new technology Time difference
The ability to focus on other tasks Economic impact
Cost savings Ethics
Efficiency Time management
Supports innovation
Expertise
Quality
Quick Turnaround

Assignment- 3
Value Engineering
Ans1) Value engineering began at General Electric Co. during World War II. Because of the world
war, there were deficiencies of skilled labour, raw materials, and module parts. Three engineers,
Miles, Leftow and Erlicher at General Electric’s saw that those switches often saved costs,
enhanced the manufactured goods, or even both. They called their method "value analysis".
It all started with procurement of strategic materials to produce Turbo-Supercharger for the
engines of B-17 and P-47. Instead of part a function, today called Value Engineering, was developed
which helped in further cost reductions. Not only Pratt & Whitney still is using has this method, but
all modern firms are using it in one way or other.

Ans2) Value Engineering

- Structured and systematic problem-solving technique which is focused not only on cost
reductions but also improving the quality.
- It can be applied not only in manufacturing but to any kind of process like Governance etc.
- Focuses on value which is the most important for the customer.
- Also, the modification of designs and systems according to value analysis.

Ans3) Relevance of VE:

Value Engineering helps in
- Identifying and reducing or completely eliminating the undue / unnecessary cost,
- Reducing lead time,
- Reducing waste,
- Reliably collecting the data.
Application of VE:
Originally developed for product applications, but later extended to processes and systems. It is
used in those places where money places a key role like:
- Purchasing,
- Construction,
- Service Industry,
- Healthcare,
- Research and Development,
- Selling & Marketing etc.

Ans4) Value- a relationship established by comparison, generally output to input.

Its types are:
1. Cost value- the sum of labour, material overheads and various costs required to produce it.
Cost bearded to manufacture an item.
2. Functional Value- This type of value is what an offer does, it's the solution an offer provides
to the customer.
 3. Esteem value- is the additional premium price which a product can attract because of its
intrinsic attractiveness to purchasers.
4. Exchange value- is the sum of the attributes which enable the product to be exchanged or
sold.

Ans5) Quantitative Definition of Value Engineering Explained-

1. Improve function keeping the cost constant- according to me it states that the business shall
strive to improve its production functions and others in order to not let the Marginal Cost of
the product to increase.
2. Keeping function same reducing the cost- It focuses on the part of producing in economies of
scale. In microeconomics, economies of scale are the cost advantages which are enjoyed by
the producer due to large / mass manufacturing.
3. Function improves at a greater proportion than rate of increase in cost
4. Cost reduces at a greater proportion than rate reduction of functions

Ans6) Function: Act of bringing collectively raw materials and the production processes to satisfy
what the customer needs and wants. It also tells the idea of reducing the costs and improving the
quality of the products.

Ans7) Types of Functions.

Basic Function:
- Principal reason for the product's existence
- Has value to the Customer
- If the basic functions are lost, then value is also lost.
- Basic function of car is to transport people/material to the destination.
Secondary Function:
Targets for modification and/or elimination to:
- Reduce cost
- Reduce design complexity
- Achieve Breakthrough in design
- Secondary function of a car is to deliver the above mentioned quickly. It can be used as a
status symbol.

Assignment- 4
Concurrent Engineering
Ans1) Concurrent Engineering- It includes –
 - Designing and manufacturing the product simultaneously.
- Taking into account all the features of the product at an early stage.
- Making marketing policies such that they are able to generate responses quickly.
- Optimizing the company’s resources for better use.
- Linking activities which were not linked up earlier are now linked.
- Using members form every department to provide their inputs.

Ans2) Features of CE:

- Saves time: as designing and production are parallel processes, time wasted in going back to
boards to redesign the product is decreased.
- Cost Saving: Early consideration of each aspect of the good’s quality.
- Wastage of resources is reduced: it optimizes the resources of the firm.
- Responsibilities are demarcated
- Promotes team culture

Ans3) Role of CE in reducing the Cycle Time:

- As we design and produce the product parallelly,
- Each feature of product is considered either beforehand or simultaneously,
- Marketing strategy is designed and implemented parallelly,
- All the activities which were not linked up earlier are now linked,
- Members from every departments are there to provide their inputs.
The firm is able to save a huge amount of time through concurrent engineering.
Ans4) Steps involved in CE:
1. Team Formation: Multifunctional team drawn from concerned specialty functions & training.
2. Initiating design and documentation: forming initial design.
3. Brainstorming and deliberation for final design and management approval.
4. Developing production plans and schedule for the designed product Developing quality plan and
cost structure.
5. Establishing support processes, vendors suppliers, MIS etc.
6. Analysing "risk" factors and probable bottleneck.
7. Production of trial lot and weeding out of problems.

Assignment- 5
QFD
Ans1) Concept of QFD
- QFD is a technique ensuring the fulfilment and attending what customer needs and wants
through process, operations, and delivery of goods and services design.
- Converts what customer needs and wants into clear objectives, which are later converted
into product specs.
- Helps in understanding and defining those specifications of the product which are important
to the customer and tells the position of the product with respect to competitors.

Ans2) Use of House of Quality in QFD

Firstly, a house of quality is constructed.
- A part of it contains the factors (needs and wants of the customer), which are expected by
the customer.
- These factors are to be rated accordingly (based on our survey of the customer’s
expectations).
- Now write those features that will provide satisfaction to the customer.
- Make a relationship matrix.
- Identify the relationship between what can be done by us.
This means, we deploy the resources which the organization has in response to customer’s
requirements.
It minimizes our work of gathering resources at various stages.
It helps in reducing the time.
What the firm has to do (the process) is clearly defined.

Assignment- 6
Location
Ans1) Objectives of Facility Layout Planning
- Cost Minimization – Requires substantial investments of money and effort. Reducing
Transportation, Time related costs, investment in facility costs etc.
- Revenue Maximization – As the variable cost decrease the contribution towards sales
increases and as the fixed cost decrease the Profit Before Tax increases, ultimately leading to
higher revenues and profits.

Ans2) Reasons for location of some industries near source of Raw Material:
- Nature of raw material – Sugar Cane perishes quickly as the sugar content decreases.
 - Transportation Cost – Transportation of crude oil is slightly costly affair, hence mostly
refineries in India are found near seashore.
- Availability of labour – cheap labour is generally found at places where raw material is found.
- Certain zones are deemed to be SEZs – producing in such zones helps reduce taxes.
Reasons for location of some industries near market of finished goods
- Reduces cost of transportation incurred in distribution
- Ease of market accessibility is important for FMCG items.
- Perishable nature of certain goods like Milk, Ice-Creams etc
- Reduction in transportation time.

Ans3) Influence of technology on location decision

- Generally, places with high solar isolations are considered to set a Solar Power plant.
- It is technologically difficult to drill beyond 6-7 Kms of depth to extract Crude oil due to high
earth temperatures, hence rigs are set where the crude is comparatively easily accessible.
- Before drilling a CO well, geographic surveys are conducted and often the results are not as
expected hence the drill is not commenced. It took months and years earlier, but now with
help of technology the decision making has improved.
- Sophisticated softwares are being used to quickly narrow down location selection.