POM sample question paper

SECTION A
1.AS/RS: An automated storage and retrieval system consists of a variety of computer-
controlled systems for automatically placing and retrieving loads from defined storage
locations. AS/RS are typically used in applications where:

• There is a very high volume of loads being moved into and out of storage
• Storage density is important because of space constraints
• No value is added in this process (no processing, only storage and transport)
• Accuracy is critical because of potential expensive damages to the load

2. Warehouse management:

Warehouse management is the control of the day-to-day operations of a warehouse, such

as the shipping, receiving, put-away and picking of goods. WM aims to maximise the
efficiency and effectiveness of warehouse operations by:

• Organizing warehouse space

• Managing inventory
• Making transportation management easier
• Improving warehouse performance by implementing WM software
• Applying better warehousing logistics: dictate how quickly it moves from reception
to storage and eventually out for distribution

3. An automated guided vehicle or automatic guided vehicle (AGV) is a portable robot that
follows along marked long lines or wires on the floor, or uses radio waves, vision cameras,
magnets, or lasers for navigation. They are most often used in industrial applications to
transport heavy materials around a large industrial building, such as a factory or
warehouse. The AGV can tow objects behind them in trailers to which they can
autonomously attach. The trailers can be used to move raw materials or finished product.
The AGV can also store objects on a bed. The objects can be placed on a set of motorized
rollers (conveyor) and then pushed off by reversing them.

4. The Economic Order Quantity (EOQ) is the number of units that a company should add to
inventory with each order to minimize the total costs of inventory—such as holding costs,
order costs, and shortage costs. The EOQ provides a model for calculating the appropriate
reorder point and the optimal reorder quantity to ensure the instantaneous replenishment
of inventory with no shortages. It can be a valuable tool for small business owners who need
to make decisions about how much inventory to keep on hand, how many items to order
each time, and how often to reorder to incur the lowest possible costs.

5. PDCA (Plan-Do-Check-Act) is an iterative, four-stage approach for continually improving

processes, products or services, and for resolving problems.

Plan – Identify the problem, collect relevant data, and understand the problem's root cause,
develop hypotheses about what the issues may be, and decide which one to test.
Do – Develop and implement a solution; decide upon a measurement to gauge its
effectiveness, test the potential solution, and measure the results.

Check – Confirm the results through before-and-after data comparison. Study the result,
measure effectiveness, and decide whether the hypothesis is supported or not.

Act – Document the results, inform others about process changes, and make
recommendations for the future PDCA cycles. If the solution was successful, implement it. If
not, tackle the next problem and repeat the PDCA cycle again.

6. Fixed lot size A lot size that always uses the same quantity (or a multiple) for a reorder;
the timing of the order varies while the size of the order is constant. Fixed lots are
sometimes used when a process may require stamping out 100 pieces at a time, or when a
vendor will only ship a carton of 500 items. Using fixed lots may mean placing fewer orders,
at the tradeoff of carrying more inventory for a period of time than may be required.

7. A poka-yoke is any mechanism in any process that helps an equipment operator avoid
mistakes. Its purpose is to eliminate product defects by preventing, correcting, or drawing
attention to human errors as they occur. It is a Japanese term that means "mistake-
proofing" or "inadvertent error prevention" and was adopted by Toyota Production System.

8. Supply chain management is the management of the flow of goods and services and
includes all processes that transform raw materials into final products. SCM represents an
effort by suppliers to develop and implement supply chains that are as efficient and
economical as possible. In SCM, the supply chain manager coordinates the logistics of all
aspects of the supply chain which consists of five parts:

• The plan or strategy

• The source (of raw materials or services)
• Manufacturing (focused on productivity and efficiency)
• Delivery and logistics
• The return system (for defective or unwanted products)

SECTION B:

Q1. Operation management is a process that involves planning, organizing, managing,

controlling and supervising the production and manufacturing processes. The major aim of
an operation manager is to ensure timely delivery of the products and to successfully turn
the raw materials into the finished products (input to output). Operations Management
plays a vital role to run any project successfully. Its benefits include:

• Operation management involves like planning, organizing, staffing, monitoring

controlling, directing and motivating. Operation management is obligatory for
organizations to manage the daily activities seamlessly. With its help, an organization
 is able to make good use of its resources like labor, raw material, money and other
resources.
• Operation Management is important to improve the overall productivity. The ratio
of input to output is termed as productivity. It gives a measure of the efficiency of
the manager as well as the employees.
• Operation management is the management of the various business activities that
take place within an organization and contributes in making the products to align
with customer’s requirements. If the products are made catering to the needs of the
customers then, they’ll be sold at a rapid rate.
• Under operation management, there is the optimum utilization of resources
leading to enormous profits of the organization. The efforts of the employees and
the various raw materials are efficiently utilized and converted into the services and
goods required by the organization.

Earlier everyone believed that the operation management was not that important
for the organization, but later on, it was discovered that it is actually important for
the functioning of the organization. It was found that the manufacturing of raw
materials to make the goods and selling them along with management of sales is
necessary, and this is done efficiently by managing the operations.

The seven main functions of operations are:

• Product management- Design

• Supply chain
• Inventory
• Forecasting
• Scheduling
• Quality
• Finance

Some people still understand operations as an organization’s daily operations and

tactics, while others see operations strategy as having a key role to play in
companies of any size.

Strategic importance
Operations strategy is only one part of overall business or corporate strategy, but it’s
crucial for competitiveness and success. Without a strong operations strategy,
companies fail to keep up with changing markets and lose out to more strategic
competitors. Many companies, big and small, have struggled with operations
strategy, often lacking in comparison with technologically savvy competitors. For
example, Amazon, while constantly advancing technology such as drones for
delivery, has pushed aside myriad brick-and-mortar retailers.

To be effective and competitive, all parts of a company must work together. All
departments should contribute to the company mission and have strategies
underlying the overall corporate/business strategy. In addition to having an
operations strategy, they should also have functional area strategies in finance, IT,
 sales, marketing, human resources, and possibly other departments, depending on
the type of business.

An operations strategy should guide the structural decisions and the evolution of
operational capabilities needed to achieve the desired competitive position of the
company as a whole.

Q2: MANUFACTURING PROCESSES

Most manufacturing environments fit into one of five general categories. Repetitive,
Discrete, Job Shop, Process (batch), and Process (continuous).

1. Repetitive Processing

Repetitive processing has dedicated production lines that produce the same or similar items
consistently without change. It requires minimal setup or changeover, so it can be
accelerated, slowed down, or another production line added.

2. Discrete Processing

Discrete processing is also an assembly or production line process, but it is highly diverse,
with a wide variation of setups and changeover frequencies. The variation is based on
whether the products being produced are alike or very disparate. If the latter is the case,
setup and tear-down will require more time.

3. Job Shop Processing

Job shop processing has production areas, rather than production lines. One or a number of
product versions are assembled in the areas. If demand deems necessary, the job shop
operation is converted to a discrete processing environment with automated equipment.

4. Process Manufacturing (Batch)

This type of operation is analogous to discrete and job shop processes. The process can run
produce one batch or several, depending on requirements. Continuous batch processes are
possible when the composition of raw materials can’t be made to a strict standard. Design
considerations and disciplines are more diverse.

5. Process Manufacturing (Continuous)

This type of processing is similar to repetitive, in that they run 24/7. The main difference is
that the products are gases, liquids, powders, or slurries. Or in areas like mining, they can be
granular materials. With continuous process manufacturing, the disciplines to create the
product are more diverse.

Repetitive, Discrete and Job Shop processes produce a final product that is made of
separate parts and components that can be put together or taken apart. The end product
must be exactly the same composition; if one part is missing, the final product is defective;
there is no variation. The manufacturing process can be stopped at a certain point, and
restarted at that point at a later time without affecting the final product. Eg automobiles,
computers and various types of machines.

Process Manufacturing, on the other hand, uses formulas to develop products. Recipes or
formulas are used to mix or blend materials to make the final product. These recipes can be
altered, as desired, with a variation of ingredients and amounts. Unlike the other processes,
where the product can be dissembled and reused, the materials used in these types of
products cannot. Eg pharmaceuticals, foods and beverages, paints, etc.

The biggest difference between process manufacturing and the other types of operations is
that you cannot reverse, or halt and restart, the process manufacturing process. Process
manufacturing depends on lot potency and shelf life for their requirements, while the
others use BOMs, serial numbers and the like.

Q4. LEVEL STRATEGY vs CHASE STRATEGY

Many companies experience variable demand for their products. This is probably
most noticeable in products that have seasonal demand patterns, such as snow
blowers or lawn mowers, but demand for other products may vary appreciably
throughout the year. In such cases, companies face several different options meeting
demands. Generally, these options fall into two “pure strategies” – a chase strategy
and a level strategy. Under the chase strategy, production is varied as demand
varies. With the level strategy, production remains at a constant level in spite of
demand variations.
The use of a level strategy means that a company will produce at a constant rate
regardless of the demand level.
Numerical Problem
Q5 and Q 6 later