Operational Management

Assignment I to IV

Submitted By:
Kush Kumawat
PGDM 2023-25
 Assignment: 1

Question: Difference between Takt Time, Cycle Time and Lead Time?

Answer:

Takt Time:

Takt Time, a key concept in Lean Manufacturing, serves as a pivotal metric for aligning
production processes with customer demand. The formula, Takt Time = Available Production
Time / Customer Demand, exemplifies its role in determining the optimal production rate. For
instance, if a company operates 8 hours a day (480 minutes) and faces a daily demand of 600
units, the Takt Time would be 0.8 minutes per unit. This calculation provides a precise
indication of the necessary production pace, enabling effective planning and resource
allocation.

The utility of Takt Time extends across several domains:

Production Planning: Takt Time facilitates the determination of the required production rate,
aiding in efficient production planning and resource allocation to meet customer demand
seamlessly.

Workload Balancing: By evenly distributing work among the available workforce, Takt Time
ensures a consistent production flow, preventing overburdening of resources and bottlenecks.

Bottleneck Identification: Discrepancies between the actual production time (cycle time) and
the calculated Takt Time serve as valuable indicators, pinpointing areas or processes in need
of improvement or optimization.

Resource Allocation: Takt Time guides decisions on resource allocation, be it man-hours,

machinery, or materials, to achieve the desired production rate efficiently.

Cycle Time: Cycle Time, representing the total duration to complete one process cycle, stands
as a crucial metric for optimizing the speed and efficiency of various operations. The formula,
Cycle Time = Total Time taken / Number of cycles, provides insights into the time taken per
cycle. In a manufacturing scenario producing 100 units in 8 hours, the Cycle Time would be
0.08 hours per unit, or 4.8 minutes.

The versatile applications of Cycle Time encompass:

Process Optimization: Identification of inefficiencies or bottlenecks in a process becomes

possible through monitoring and reducing cycle time, leading to improved productivity, cost
 reduction, and increased throughput.

Production Planning: Essential for planning production schedules, Cycle Time estimation aids
organizations in determining achievable output volumes within specified timeframes.

Performance Measurement: Serving as a metric for assessing the efficiency of a process or

operation, Cycle Time enables organizations to identify areas requiring improvement by
comparing against benchmarks or targets.

Customer Satisfaction: An influential factor in meeting customer expectations and delivery

deadlines, reduced Cycle Time enhances customer satisfaction by enabling faster delivery of
products or services.

Continuous Improvement: Monitoring cycle time allows organizations to track the impact of
process improvements, providing insights into the effectiveness of changes made and
identifying further opportunities for enhancement.

Lead Time:

Lead Time, the temporal interval between process initiation and completion, encompasses
various stages such as processing, manufacturing, transportation, and related activities.
Calculated as Completion Time minus Start Time, Lead Time is a critical parameter in project
management and customer satisfaction.

Illustratively, for a custom laptop order, if the entire process from order placement to shipping
takes 7 days, the lead time for the laptop is 7 days.

The versatile uses of Lead Time include:

Planning and Scheduling:

Lead Time aids in determining the time required for project or order completion, enabling
effective resource planning and scheduling to meet customer demands.

Inventory Management:

Businesses, armed with knowledge of lead time, can optimize inventory levels, avoiding
stockouts or excess inventory, thus minimizing associated costs.

Customer Satisfaction: Lead Time plays a crucial role in managing customer expectations by
providing accurate delivery date estimations. It enhances customer satisfaction by ensuring
timely delivery.

Process Improvement: Analyzing lead times across diverse processes helps identify
bottlenecks, inefficiencies, and areas for improvement. This analysis contributes to
streamlined processes, reduced lead times, and enhanced overall productivity.
Assignment: 2

Question: Information Provided:

40 ounce of meat per sandwich
200 ounce/ hr = cut meat
25 / hr = cut vegetable
24 loaves in 4 hrs = Make bread 5
mins per customer = Assemble

1. Determine Capacity.
2. What changes will be there if we increase making bread by 30%, Assemble by
20% and cut meat by 15%.
3. Determine the bottle neck in the process.

Answer:
1. To determine the capacity, we need to consider the rate at which each step is
performed and the limiting step. the capacity for each step first.

Cut meat: 200/40 = 5 so, it means we can make 5 sandwiches.

60/5 = 12 minutes, it will take 12 minutes for cut 40 ounces of meat.
Cut vegetable: 25/5 = 5 so, we can also make sandwich from the vegetables.
60/5 = 12 minutes, it will take 12 minutes for cut 5 vegetables.
Make bread: as 24 loaves in 4 hours so 24/4 = 6 in an hour.
60/6 = 10 minutes, so, it takes to 10 minutes cut a loaf of bread for 5 sandwich it 5*10 = 50
minutes.
Assembling: it’s taking 5 minutes to assembling a sandwich and deliver to the customer.

So, for a sandwich total time is 12 + 12 + 10 + 5 = 39 minutes

Hourly capacity is 60/39 = 1.54

2. If we increase the making bread by 30%, the new capacity would be 24+24*30% = 31.2
loaves/hr.
If we increase the assembling by 20%, the new capacity would be 5+5*20% = 6 minutes.
If we increase the cut meat by 15%, the new capacity would be 200 + 200*15% = 230
ounces/hr.

3. The bottleneck in the process is cutting vegetables, as it has the lowest capacity of 25/hr.
This means that the process cannot exceed this capacity and any increase in the capacity
of other steps will not improve the overall capacity.
 Assignment: 3
Concept of Facility Layout:

Facility layout refers to the strategic arrangement of components, departments, workstations,

machinery, equipment, and personnel within a physical space to optimize efficiency,
productivity, safety, and workflow in an organization. It involves the thoughtful planning and
design of the workspace to enhance operations and meet organizational objectives. Several key
concepts are fundamental to understanding facility layout.

New Approaches to Layout Design:

In optimizing space utilization, workflow efficiency, and overall productivity, layout design plays
a crucial role. Emerging trends and innovative approaches address the complexities and evolving
needs of modern facilities. Some of these approaches include:

Data-Driven Design:
Utilizing advanced data analytics and simulation techniques for dynamic and adaptive layouts
based on real-time data gathered through sensors, IoT devices, and data analysis tools.

Modular and Flexible Layouts:

Designing layouts with modularity and adaptability using movable partitions, modular furniture,
and flexible infrastructure to accommodate changing needs.

AI-Driven Optimization:
Leveraging artificial intelligence (AI) algorithms and machine learning to analyze data, predict
workflow patterns, and recommend changes for improved efficiency.

Collaborative Design Platforms:

Using collaborative software platforms for real-time contribution of ideas and feedback from
stakeholders, fostering inclusive and user-centric layouts.

Remote Work Considerations:

Adapting layouts to support remote work trends and hybrid models, ensuring spaces facilitate
collaboration, connectivity, and flexibility for both in-person and remote workers.

Computerized Relative Allocation of Facilities Techniques (CRAFT):

CRAFT is a computer-based method employed for facility layout planning. It seeks to optimize
the arrangement of facilities, workstations, or equipment within a given space to minimize
material handling costs and enhance operational efficiency. Key principles and features of CRAFT
include:

Block Plan Representation:

Using a block plan representation where each department or workstation is represented by a
block, allowing visualization of the space occupied by each unit.

Relationship Diagrams:
Establishing relationships between departments based on material flow, communication
requirements, and proximity to identify the most efficient flow paths.
Cost Consideration:
Focusing on minimizing material handling costs, considering transportation costs, handling costs,
and distance traveled by materials within the facility.

Objective Function:
Formulating an objective function to evaluate and compare different layout alternatives based
on factors like transportation costs, handling costs, and distance between departments.

Optimization Process:
Utilizing optimization algorithms to generate and evaluate multiple layout configurations, aiming
to find the most cost-effective layout.

Visualization and Evaluation:

Providing visual representations of potential layouts for decision-makers to assess and compare
options, considering material flow, departmental interactions, and spatial arrangements.

CRAFT is particularly valuable in industries where efficient material handling and workflow are
critical, such as manufacturing plants, warehouses, and logistics centers, aiding in the creation of
layouts that streamline operations, reduce material handling costs, and enhance productivity.

Automated Layout Design Program (ALDEP):

ALDEP is a computer-based tool used in facility layout planning to automate the design and
optimization process. Developed by the U.S. Air Force, ALDEP employs mathematical modeling
and optimization algorithms to generate efficient layouts. Key features and components include:

Mathematical Modeling:
Utilizing mathematical algorithms to create and evaluate layout configurations based on
parameters like space requirements, departmental relationships, and material flow
considerations.

Input Data:
Incorporating user-input data related to spatial requirements, adjacency preferences,
constraints, and other factors influencing facility layout.

Optimization Algorithms:
Using optimization algorithms to generate layouts that optimize efficiency, minimize material
handling costs, reduce travel distances, and satisfy specified constraints.

Constraints and Objectives:

Considering constraints such as space limitations and safety regulations while aiming to achieve
objectives like improving workflow, minimizing travel distances, and maximizing space
utilization.

Visual Representation and Analysis:

Providing visual representations of generated layouts for users to analyze and compare,
facilitating a deeper understanding of layout configurations and their impact on facility
operations.

Iterative Process:
Allowing users to iterate through multiple design iterations, adjusting parameters to explore and
evaluate various layout possibilities and fine-tune the design to meet specific requirements.

ALDEP streamlines facility layout planning by automating design procedures, aiding in the rapid
generation and assessment of multiple layout options. It contributes to the creation of layouts
that enhance operational efficiency, minimize material handling costs, and improve overall
productivity within a facility.

Computerized Relationship Layout Planning (CRLP):

CRLP, also known as CORELAP, is a computer-based technique for facility layout design and
optimization. Developed by Richard Muther, CORELAP focuses on establishing relationships and
adjacencies between departments or workstations to create an efficient layout. Key features
and aspects of CORELAP include:

Relationship Analysis:
Emphasizing the analysis of relationships and dependencies between different departments or
workstations, considering factors such as material flow and communication requirements.

Adjacency Requirements:
Identifying preferences or necessities for certain departments to be located close to each other
based on functional relationships, ensuring a seamless workflow.

Block Diagram Representation:

Using a block diagram to represent departments or workstations within the facility, with each
block representing a department and the relationships depicted graphically.

Optimization:
Aiming to optimize the layout by satisfying adjacency requirements, minimizing material
handling costs, travel distances, or communication barriers between departments.

Computer-Aided Design (CAD):

Utilizing computer-aided design software to visualize and manipulate layout configurations,
aiding in the creation, modification, and evaluation of different layout alternatives.

Visualization and Evaluation:

Providing visual representations of layout configurations for decision-makers to assess and
compare options, aiding in understanding the spatial arrangement and flow between
departments.

Iterative Process:
Allowing for iterative refinement of layouts by adjusting adjacency preferences, considering
alternative relationships, or modifying constraints to meet specific functional requirements.

CORELAP is particularly beneficial in industries where departmental interactions significantly

impact operational efficiency, such as manufacturing facilities and office spaces. By focusing on
relationships and adjacencies, CORELAP assists in creating layouts that optimize workflow,
minimize disruptions, and improve overall productivity within a facility.
ASSIGNMENT 4
Question 1- Operation strategies provide the roadmap
for achieving the organization objectives.” Justify

Operation Strategies: A Blueprint for Organizational Success

 Foundational Significance:
 Operation strategies serve as the foundational roadmap for achieving an
organization's objectives.
 Without a well-defined operation strategy, navigating the complex and
dynamic business environment becomes challenging.
 Alignment and Resource Optimization:
 Aligns all organizational resources, efforts, and activities toward a
common goal, preventing disjointed efforts.
 Ensures optimal utilization of resources by directing them purposefully.
 Enhanced Communication and Collaboration:
 Fosters improved communication and collaboration across different
departments and teams.
 When everyone understands and works towards the organization's
strategy,collaboration becomes more effective.
 Risk Identification and Mitigation:
 Proactively identifies and addresses potential risks that could impede
organizational progress.
 Allows the organization to take preventive measures or develop contingency
plans to manage risks effectively.
 Accountability and Performance Measurement:
 Sets clear and measurable goals, providing a basis for evaluating
organizational performance.
 Establishes accountability as progress is tracked against predefined objectives.
  Efficiency and Productivity:
 Streamlines operational processes, eliminating inefficiencies and unnecessary
steps.
 Aims to achieve higher productivity by doing more with fewer resources.
 Quality Improvement:
 Implements measures such as quality control and continuous improvement to
enhancethe quality of products and services.
 Focuses on delivering consistent and high-quality outputs.
 Cost Reduction:
 Seeks opportunities to reduce costs in various aspects, including materials,
labor, and operational expenses.
 Contributes to increased profitability by optimizing resource utilization.
 Customer Satisfaction:
 Directly links operational strategies to meeting or exceeding customer
expectations.
 Builds customer satisfaction by delivering products and services that
align withcustomer needs.
 Competitive Advantage:
 Involves innovative approaches and effective strategies to gain a competitive
edge.
 Differentiates the organization from competitors, establishing a sustainable
advantagein the market.

Illustrative Examples of Successful Organizations:

 Toyota:
 Operation strategy: Toyota Production System (TPS) emphasizes lean
manufacturing,just-in-time production, and continuous improvement.
 Result: Toyota has become a global leader in efficiency, quality, and innovation.
 Intel:
 Operation strategy: Focuses on technological innovation, rapid product
development cycles, and manufacturing excellence.
 Result: Intel maintains a leading position in the semiconductor industry
throughcutting-edge technology and efficient operations.
 Coca-Cola:
 Operation strategy: Prioritizes global supply chain efficiency, streamlined
distribution, and effective brand management.
 Result: Coca-Cola achieves widespread market presence and brand recognition.
 IKEA:
 Operation strategy: Incorporates flat-packaging, efficient logistics, and cost
leadershipto make furniture affordable globally.
 Result: IKEA is known for its cost-effective and innovative approach to
furnitureretailing on a global scale.

These examples showcase how successful organizations strategically align their

operational efforts with broader objectives, contributing to their overall

success and competitiveness. Each organization tailors its operation strategy to

its unique industry, market positioning, and goals.

Question 2:
Your institute intend to build a new building for its New
Management Course from next session. You are a brilliant student
of your institute and responsibility is given to you for this new
project called project
“ANTELLA”. You required to do the
following-
1. Build you team & mention their
capabilities.
2.Mention the product life cycle plan
with diagram.
3.Explain layout techniques with f

Project ANTELLA would be a strategic initiative led by a dynamic and capable

team. Assembled for their diverse skills and expertise, the team is there to ensure
a seamless process from conceptualization to the successful implementation of
the project.

Team Building:
Team Leader: Ms. Mahima Bhatia
 Strong leadership and communication skills
 Project management expertise
 Experience in facility design and construction

Architect:
 Mr. Rajendra Joshi
 Extensive experience in designing educational facilities
 Expertise in space optimization and accessibility
 Knowledge of sustainable construction practices

Engineer:
 Mr. Rixit Midha
 Expertise in structural engineering
 MEP systems design
 Understanding of building codes and regulations

Interior Designer:
 Ms. Divyanka Tripathi
 Experience in creating functional learning environments
 Knowledge of ergonomics and furniture selection
 Understanding of branding and visual identity

Construction Manager:
 Ms. Vishakha Khanna
 Experience in managing construction projects
  Budget control and scheduling expertise
 Strong communication and negotiation skills

Financial Analyst:
 Ms. Neeraj Gupta
 Expertise in cost estimation and budgeting
 Financial modeling and risk assessment
 Understanding of grant funding opportunities

Marketing and Communications Specialist:

 Ms. Shruti Bajaj
 Experience in developing marketing campaigns
 Expertise in public relations and media outreach
 Knowledge of digital marketing and social media

Human Resources:
 Ms. Prakriti Singh
 HR management skills
 Recruitment expertise
 Team-building abilities
 Legal Head:
 Legal Advisor – Adv. Ankita Raj
 Knowledge of construction laws.
 Contract negotiation skills.
 Legal expertise.

Solution 2(2):

Product Life Cycle (PLC):The Product Life Cycle (PLC) describes the different

stages a product goes through in the market, from its introduction to its

withdrawal. These stages are Introduction, Growth, Maturity, and Decline, each

requiring unique strategies and resources.

Introduction:
Product is new with limited sales and awareness.
High marketing and advertising costs for building awareness.
Limited distribution channels.
High production costs due to low volume.
Growth:
Sales increase rapidly with growing demand.
Distribution channels expand.
Possible decrease in prices due to economies of scale.
Competition may enter the market.
Maturity:
Sales growth stabilizes.
Intense competition leading to price pressure.
Focus on product differentiation and brand loyalty.
Profits may peak in this stage.
Decline:
Sales decline due to obsolescence or new offerings.
Companies may cut costs and focus on niche markets.
Some products may be discontinue
Factors Influencing PLC:

Technology: Advances may lead to new products replacing old ones.

Competition: Intensity affects PLC length and profitability.
Market Trends: Changing preferences and demographics impact demand.
Government Regulations: Affect product design, safety, and

marketing Understanding PLC helps businesses

Allocate resources efficiently

Develop effective marketing and pricing strategies

Make informed decisions about development, introduction, and

discontinuation.

Solution 3(3)

: Layout Techniques with Flow Chart:

Layout techniques are methods to arrange a space functionally, efficiently,

and aesthetically. The choice depends on specific needs and activities. Here

are common techniques:

Functional Layout:
Groups departments based on function.
Aims to minimize material handling.
 Line Layout:
Arranges activities in a sequence based on product flow.
Common in assembly lines.

Product Layout:
Dedicates areas to specific products.
Used in custom manufacturing.

Fixed-Position Layout:
For large products not easily moved.
Layout designed around the product.

Activity-Based Layout:
Arranges based on work activities.
Supports collaboration and productivity.

Open Plan Layout:

Minimizes walls for an open environment.
Common in modern offices.

Additional Techniques:
Cellular Layout: Uses self-contained cells for each product.
Hybrid Layout: Combines elements for customized solutions
Flexible Layout: Allows easy reconfiguration for changing needs.

Ways to determine layout techniques:

Analysis of Requirements:
Step 1: Identify the specific needs and objectives of the New
Management Course building. Step 2: Consider space requirements,
functionality, aesthetics, and compliance standards. Data Collection:
Step 3: Gather information about available space, utilities, budget
constraints, and specific requirements from stakeholders.
Preliminary Layout Design:
Step 4: Develop initial layout designs based on available space,
zoning, and identified key requirements.
Step 5: Consider functional areas such as classrooms, offices, common
spaces, and support facilities.
Feedback & Revision:
Step 6: Collect feedback from stakeholders, architects, and
relevant experts. Step 7: Revise the design based on
received feedback and recommendations. Detailing &
Documentation:
Step 8: Develop detailed plans, including floor plans, interior design
elements, structural details, and technical specifications.
Step 9: Create documentation for construction purposes, including
detailed drawings and specifications.
4. Explain layout techniques with

flow chart.Solution 2(1)

Project ANTELLA would be a strategic initiative led by a dynamic and capable

team. Assembled for their diverse skills and expertise, the team is there to ensure
a seamless process from conceptualization to the successful implementation of
the project.

Team Building:
Team Leader: Ms. Swati Mulani
 Strong leadership and communication skills
 Project management expertise
 Experience in facility design and construction

Architect:
 Mr. Raj Verma
 Extensive experience in designing educational facilities
 Expertise in space optimization and accessibility
 Knowledge of sustainable construction practices

Engineer:
 Ms. Riya Sharma
 Expertise in structural engineering
 MEP systems design
 Understanding of building codes and regulations

Interior Designer:
 Ms. Divya Sahay
 Experience in creating functional learning environments
 Knowledge of ergonomics and furniture selection
 Understanding of branding and visual identity

Construction Manager:
 Mr. Vishal Gupta
 Experience in managing construction projects
 Budget control and scheduling expertise
 Strong communication and negotiation skills

Financial Analyst:
 Ms. Nehal Kukreja
 Expertise in cost estimation and budgeting
 Financial modeling and risk assessment
 Understanding of grant funding opportunities

Marketing and Communications Specialist:

 Ms. Shruti Kukar
 Experience in developing marketing campaigns
 Expertise in public relations and media outreach
 Knowledge of digital marketing and social media
Human Resources:
 Ms. Priyanshi Agarwal
 HR management skills
 Recruitment expertise
 Team-building abilities
  Legal Head:
 Legal Advisor – Adv. Ankita Raj
 Knowledge of construction laws.
 Contract negotiation skills.
 Legal expertise.

Solution 2(2):

Product Life Cycle (PLC):The Product Life Cycle (PLC) describes the

different stages a product goes through in the market, from its introduction to

its withdrawal. These stages are Introduction, Growth, Maturity, and Decline,

each requiring unique strategies and resources.

 Introduction: 
 Product is new with limited sales and awareness. 
 High marketing and advertising costs for building awareness. 
 Limited distribution channels. 
 High production costs due to low volume. 
 Growth: 
 Sales increase rapidly with growing demand.
 Distribution channels expand. 
 Possible decrease in prices due to economies of scale.
 Competition may enter the market.
 Maturity:
 Sales growth stabilizes. 
 Intense competition leading to price pressure. 
 Focus on product differentiation and brand loyalty.
 Profits may peak in this stage. 
 Decline: 
 Sales decline due to obsolescence or new offerings. 
 Companies may cut costs and focus on niche markets. 
 Some products may be discontinued. 