OPERATION MANAGEMENT ASSIGNMENT

Q1) For the following, construct a cellular layout using the Binary Algorithm and draw a
possible layout diagram
A: 3 –5 –7 –10 –12
B: 1 –4 –6
C: 3 –5 –7
D: 2 –8 –9 –11
E: 3 –5 –7 –10 –12
F: 2 –8 –9 –11
G: 1 –4 –6
H: 9 –11

Ans. PART ROUTING MATRIX

Cell 1 3-5-7-10-12
Cell 2 1-4-6
Cell3 2-8-9-11

Q2) Here is some data collected by an organisation for relocating their operations. Which
would be the selected site according to the location rating factor method? Show your
calculations.

Ans.

Location Rating Factor Method is a simple method to assess the attractiveness of each potential
location. This method is used when choices are available. This method has no scientific basis, it is
just an agreed upon weighted technique.
In this question site 3 will be the preferred site.
Q3) Enlist the differences between Product and Process Based Layouts. State at least 5 points.
Use diagrams if necessary.
Ans.
PRODUCT LAYOUT
 In a product layout the resources are
placed to follow exactly the process
sequence dictated by a product.
 The machinery used in product-based
layout are highly adaptable
 In this type of layout, the workers are
well trained not only about their
work but are extensively cross-
trained.
 Area required to make this layout is
small as the resources are placed to
follow exactly the process sequence
dictated by a product.
 Although the transfer line of the
product is rigid but the level of
agility is very high.
 The time take to travel is less.
 The fixed cost is high and variable
cost is low.
 Due to the interrelated system,
machinery breakdown can seriously
affect production.
PROCESS LAYOUT
 A process layout is an arrangement of
resources on the basis of the process
characteristics of the resources available.
 Machinery used in process-based layout
are not specialised one rather are general
purpose uses machinery.
 In process- based layout we find that the
workers are trained only in a particular
process, the one which they are supposed
to perform.
 This type of layout occupies a large area
as resources are arranged on the basis of
the process characteristics of the
resources available.
 The transfer line of product in this layout
is very flexible but agility level is low.
 Time taken to travel is more.
 Comparatively low fixed cost and high
variable cost.
 Machinery breaks down does not have a
significant effect on the final output.
Q4) You have been given the job to set up a store in an area which has to balance the
populations of various villages with their distances as plotted on an X-Y plane from the current
area of Operations. Draw a Graph and state your conclusions.
Ans.
The method used here to find a suitable location for the store is the Centre of Gravity Method. This
method indicates the ideal location in the grid map that would ensure that the weighted distances
travelled on the whole is minimum. This method has been popularized by Walmart and is used to
build warehouses or distribution houses. In this method a simple weighted scheme is utilized to asses
the attractiveness of each location.
In this question that assessing that given data it is found that the location which will be near to point
(267,59) will be the ideal location for setting up the store as this place is at a middle point from all
the other centres.

Q5) A group of new candidates has joined your organisation. During a meeting one of them
asks this question: Isn’t Operations only about Manufacturing? Why don’t we rename the
department? If you were a Senior Manager in this organisation and you overheard this, how
would you explain what Operations Management is, and also explain the difference between
Production and Operations?
Ans. Operations management is the administration of business practices to create the highest level of
efficiency possible within an organization. It is concerned with converting materials and labour into
goods and services as efficiently as possible to maximize the profit of an organization. It involves
utilizing resources from staff, materials, equipment, and technology. Operations managers acquire,
develop, and deliver goods to clients based on client needs and the abilities of the company.
Operations management handles various strategic issues, including determining the size of
manufacturing plants and project management methods and implementing the structure of
information technology networks. Other operational issues include the management of inventory
levels, including work-in-process levels and raw materials acquisition, quality control, materials
handling, and maintenance policies. To be an effective operations management professional, one
must be able to understand the processes that are essential to what a company does and get them to
flow and work together seamlessly. The coordination involved in setting up business processes in an
efficient way requires a solid understanding of logistics. 
An operation professional understands local and global trends, customer demand and the available
resources for production. Operations management approaches the acquisition of materials and the
use of labour in a timely, cost-effective manner to deliver customer expectations. Inventory levels are
monitored to ensure excessive quantities are on hand. Operations management is responsible for
finding vendors that supply the appropriate goods at reasonable prices and have the ability to deliver
the product when needed.
Another large facet of operations management involves the delivery of goods to customers. This
includes ensuring products are delivered within the agreed time commitment. Operations
management also typically follows up with customers to ensure the products meet quality and
functionality needs. Finally, operations management takes the feedback received and distributes the
relevant information to each department to use in process improvement.
Difference between production and operation is as follows.
Production Operations
Production Management connotes the Operations Management refers to the part of
administration of the range of activities management concerned with the production and
belonging to the creation of products. delivery of goods and services.

The objective of production management is to Its objective of operations management is to

produce the best goods or services that are of the utilize resources, to the extent possible so as to
right quality, right quantity at the right time. satisfy customers wants.

Production management occurs on outputs after Operations management occurs on input during
manufacturing raised in the market manufacturing.
Production management decision making is Operations management decision making is
related to the aspects of production related to the regular business activities.
Production management requires extra capital to The operation management requires less capital
make the capital in the beginning and needless funding because it wants extra work and needs
labour because it offers with the unit. immediate outcomes.

Production management is found in enterprises Operations management is found in Banks,

where production is undertaken. Hospitals, Companies including production
companies, Agencies, etc