MB0044 – Production & Operations Management Assignment Set- 1

Q1. Explain in brief the origins of Just In Time. Explain how JIT is implemented. Ans :- Just-In-Time (JIT) manufacturing is a process by which companies don’t keep lots of excess inventory; instead, they manufacture a product as an order comes in. It is a management philosophy of continuous and forced problem solving. The objective of JIT manufacturing system is to:
• •

Eliminate waste that is, minimise the amount of equipment, materials, parts, space, and worker’s time, which adds a great value to the product. Increase productivity

JIT means making what the market demands when it is in need. It is the most popular systems that incorporate the generic elements of lean systems. Lean production supplies customer’s with exactly what the customer wants, when the customer wants, without waste, through continuous improvement. Implementation of JIT JIT, Total Quality Management (TQM) and other developmental measures, are possible only with top management commitment and a learning culture in the organisation. The main handicap to any programme is the resistance by the organisational members, even at the top, to make changes. This resistance may take the form of non-cooperation and may enlarge to become sabotage. These usually show up at the implementation stage. So, communication of the goals is to be realised and the objectives of each team are to be framed effectively. Initially, a milestone chart helps in establishing various steps to be taken and correcting the activities as the process is on. This is the best way of ensuring success. It is well to remind you at this stage that JIT is not a destination, but an on-going continuous improvement programme in the process of achieving TQM. Q2. Bring out the historical background of Value Engineering. Elucidate three companies which have incorporated VE with brief explanation. Ans :-Value Engineering (VE) or Value Analysis is a methodology by which we try to find substitutes for a product or an operation. The concept of value engineering originated during the Second World War. It was developed by the General Electric Corporations (GEC). Value Engineering has gained popularity due to its potential for gaining high Returns on Investment (ROI). This methodology is widely used in business re-engineering, government projects, automakers, transportation and distribution, industrial equipment, construction, assembling and machining processes, health care and environmental engineering, and many others. Value engineering process calls for a deep study of a product and the purpose for which it is used, such as, the raw materials used; the processes of transformation; the equipment needed, and many others.

engineers applied the same principles and found that. Sundaram Lyenger (TVS) Limited is one of the largest automobile distribution companies in India. quicker. They stocked their garage with some critical assemblies of a bus. if not better. Initially. which were cheaper giving the same performance. TVS: T. Whenever. ASHOK LEYLAND: In implementation of VA. A concept percolated to the manufacturing departments. . this approach has gained much more benefits to the company.V. the practioners were the people in charge of purchasing who tried to locate substitute material which would be equally good. and competitive. they replaced it immediately with a new one. This first and basic approach to value engineering. When compared to the traditional method. it helped to save time. a part or an assembly failed of a bus. they could use alternate materials. The focus was on the value of each bit materials. TVS used the VE approach to restore the mobility of buses that had broken down. Specialized dealers could provide an equally good material at a lesser price. Ashok Leyland changed gear material from phosphor bronze to a less expensive cast iron and eliminated frequent field complaint of gear seizure in trucks. each operation.It also questions whether what is being used is the most appropriate and economical. efficient. This approach led to the design stage. TVS based in Madurai was ranked as the best bus transportation system in India. thus restoring mobility within a couple of hours. 2. GENERAL ELECTICALS CORPORATION (GEC): The concepts of value engineering originated in 1947 in General Electricals corporation (GEC) When a substitute for asbestos for flooring had to be found. It could manage to run the fleets for about 96% of the time. It was also fund that dimensions and tolerance could be altered without affecting the performance of the part or the product. at a lower price. This applies to all aspects of the product. Companies which have incorporated VE: 1. 3. During the mid1940 to 1960s. reduce cost. The investigations took them on the path of eliminating some operations.

We use this model to economise. Distribution of their sources is the critical issue. 4. Inventory Control Model: Inventory control model considers the: • • • • • • Frequency of placing orders Quantities per order considering the cost of placing an order Number of pieces that are to be kept in reserve Rate of consumption Lead time required for the supplier Costs involved in storage . Assignment Model: Allocating jobs or persons to machines.There are different quantitative models: 1. Linear Programming: Linear programming technique is often used for optimising a given objective like: profit or revenue maximisation. Transportation Model: Transportation model is concerned with goods from manufacturing centres or warehouses which have to be supplied to depots or retail outlets. awarding different projects to contractors is done so that maximum returns occur or less expense are incurred. Hence. What is work study and motion study. calls for the use of this model. Explain the key elements of Quantitative modelling. Ans:.Q3. 2. or cost outgo minimisation. 3. The demand and supply position of the places where they are required or produced and the cost of transportation are considered in the model. when there are limited resources and they have to meet competing demands.

production. 5. we develop a model which resembles a real life situation. • • • • • People to be serviced Rate of service Type of queue discipline that is intended to be followed Policy of priority Tolerable amounts of waiting 6. PERT (Project Evaluation and Review Technique) and CPM (Critical Path Method) Models: When projects are undertaken with a number of activities. Based on this pattern. A lot of coordination is needed while supplying there sources. Number of items which includes the following is studied with some special techniques. They are formed when the rate of production is less at particular points compared to the previous ones. 7. with gaps of weeks or months and some happens simultaneously. we adopt special methods to make the system efficient. Delayed completion may entail penalties. delivery and other actions. some happens in sequence. Waiting Line Models: Queues are formed when the rate of service is at a variance with the rate of arrival. we predict and plan our procurement.We have different models which give solutions to optimisation depending upon the probabilities of patterns of consumption and supply. It is also equally important to identify the bottlenecks and smoothen resources so that time schedules are maintained. So. Figure: Quantitative models . Simulation Models: Simulation models are used when we will not be able to formulate mathematical models. Sometimes we see multiple service points and a single queue are formed for feeding them. In this model. It is important to estimate the time required for completion of the project.

where one component is manufactured using several operations and machines it is possible to achieve this condition – or very nearly. We assume that product life cycles are sufficiently stable to invest heavily on the automated flow lines to achieve reduced cost per unit. Some sculptors use the technology to produce complex shapes for fine arts exhibitions. It is necessary to design the machines in such a way that the operation times are the same throughout the sequence in the flow of the martial.Rapid prototyping is the automatic construction of physical objects using additive manufacturing technology. After completing an operation on a machine. Provision for extra pallets or tool holders or conveyors is made in the original design to accommodate anticipated changes. a few of the operations can be done on a single machine with a number of attachments. The parts at various stages from raw material to ready for fitment or assembly are processed continuously to attain the required shapes or acquire special properties to enable them to perform desired functions. Human intervention may be needed to verify that the operations are taking place according to standards. Ans:. Group Technology. Sometimes. held. they are used for a much wider range of applications and are even used to manufacture production-quality parts in relatively small numbers. lifted. Designers now incorporate flexibility in the machines which will take care of small changes in dimensions by making adjustments or minor changes in the existing machine or layout. The logic to be followed is to find out whether the reduction in cost per piece justifies the costs of designing. positioned etc. In fixed automation or hard automation. the semi-finished parts are moved to the next machine in the sequence determined by the process requirements a flow line is established. The costs involved in changing the setup of automated flow lines are high. With methodologies of JIT and Lean Manufacturing finding importance and relevance in the competitive field of manufacturing. When these can be achieved with the help of automation and the processes are conducted with self-regulation. So. They are moved further to other machines for performing further operations. automated flow lines are considered only when the product is required to be made in high volumes over a relatively long period. Today. The first techniques for rapid prototyping became available in the late1980s and were used to produce models and prototype parts. for completing different operations. Flow lines compel engineers to put in place . many companies have found that well designed flow lines suit their purpose well. we have an automated flow line. Cellular Manufacturing along with conventional Product and Process Layouts are still resorted to as they allow flexibility for the production system. The change in movements needed can be achieved by programming the machines. manufacturing and setting up automated flow lines. The global trends are favouring flexibility in the manufacturing systems. rotated. we will have automated flow lines established. Automated flow lines: When several automated machines are linked by a transfer system which moves the parts by using handling machines which are also automated.Q4. What is Rapid Prototyping? Explain the difference between automated flow line and automated assembly line with examples. The materials need to be moved. One important consideration is to balance times that different machines take to complete the operations assigned to them.

Automated Assembly Lines: All equipment’s needed to make a finished product are laid out in such a way as to follow the sequence in which the parts or subassemblies are put together and fitted. The material goes from station 1 to 5 sequentially. You will note that the same task gets repeated at each station continuously. All parts or subassemblies are fitted to enable the product to be in readiness to perform the function it was designed to. every bottleneck gets focused upon and solutions found to ease them. It is not possible to think of inventories (Work In Process) in a flow line. This process is called assembly. it is important to note that setting up automated flow lines will not be suitable for many industries. The main consideration for using automated assembly lines is that the volumes justify the huge expenses involved in setting up the system. However. we may provide more personnel to complete operations. a frame. Sensors will keep track of these activities and move the assemblies to the next stage. By necessity. The finished item comes out at the end of the line. place them at specified places and fasten them by pressing. Product Layouts are designed so that the assembly tasks are performed in the sequence they are designed. In automated assembly lines the moving pallets move the materials from station to station and moving arms pick up parts. The time taken at any of the locations should be the same. body. An operator will oversee that the assemblies are happening and there are no stop pages.equipment’s that balance their production rates. Usually. Bottlenecks cannot be permitted. 4 and 5 need not wait. Otherwise the flow is interrupted. say twice as long. screwing or even welding. but the basic principle is to fit all parts together and ensure linkages so that their functions are integrated and give out the desired output. Methodologies of achieving the final result may vary. At 5. . base will be the starting point of an assembly. riveting. The frame itself consists of a construction made up of several components and would have been ‘assembled’ or ‘fabricated’ in a separate bay or plant and brought to the assembly line. Operation 2 takes longer time. To see that the flow is kept at the same pace we provide two locations 2a and 2b so that operations 3. Production managers see every bottleneck as an opportunity to hasten the flow and reduce inventories.

buildings. Centre of gravity method In this section. Point rating method 4.Planning is the most important function of management. List different methods for selecting a suitable plant location and explain any two. Lands. Factor rating method 3. you will study in detail the methods to determine the most likely location. Ans :. Break-even analysis 5. when we have to deal with lands. Therefore. The methods which determine the most likely location are: 1. buildings and machineries are costly and once fixed cannot be moved easily. Rating plan method 2. Planning. These considerations are vital for the success of any firm. and estimates for the future. requires a lot of thought.Q5. It is important especially. data gathering. Factors influencing Plant Location can be broadly divided into two types namely: general factors and special factors Figure: Factors influencing plant location Rating methods General factors or special factors – each factor has its own importance in determining the location of a plant. therefore. and machineries. . ranking them and giving weightage for them is one of the ways of determining the location.

Then. the products of the rating are added and the location which gets the maximum product of rating is selected.Rating plan method: In rating plan method. The location which gets the maximum rating. Table gives factor rating and location rating of three locations. . Now. Factor rating method: In factor rating method. let us consider an example for better understanding the Factor rating method. the various factors for locating a plant are given ratings depending upon the perception of the management. considering all the factors. each of the factors for location is rated and the rating of the competitive locations is considered. is chosen for locating the plant.

Top management commitment: Commitment of the top management is to assign people and fix responsibilities to complete the project. looking into the expansion programmes or the development of nearby places. The universal breakthrough sequences are: • • • Proof of need: There should be a compelling need to make changes. So. Specific projects with time frames and the resource allocation are decided. Inspection. List out Deming’s 14 points. one of these places for setting up the plant is chosen. Project identification: Here what is to be changed is identified. This rating method is amenable to the consideration of various other factors which are relevant for locating the plant. In such cases. you find that both B and C have almost the same total. Explain Juran’s Quality Trilogy and Crosby’s absolutes of quality. The decision may even be changed.However. testing. Diagnostic journey: Each team will determine whether the problems result from systemic causes or are random or are deliberately caused. Ans: Juran’s quality triology Juran uses his famous Universal Breakthrough Sequence to implement quality programmes. and validation are also included at this point. personal preference or reconsideration of any of the factors may be advisable. Q6. Root causes are ascertained with utmost certainty. • • . which may be suitable for a particular industry. Remedial action: This is the stage when changes are introduced.

2. suppliers. It is the people. forming the triology to achieve Total Quality Management. Juran has categorised cost of quality into four categories: 1. Failure costs .Internal: These are costs of rejections. error cause removal and continuously reinforcing the system. maintaining quality is more economical than compromising on its achievement.External: These are costs of replacement. including maintenance of records. and others. certification. Quality Planning. 3. customers helps in identifying opportunities . increasing awareness. Having records or all actions and consequences will help in further improvements. and processes that create problems. There are no quality problems. is the path to quality Quality is measured as the price paid for non-conformance and as indices Quality originates in all factions. repairs in terms of materials. Prevention costs: Prevention cost is the sequence of three sets of activities. and Quality Improvement. on-site rework including spare parts and expenses of the personnel.• Holding on to the gains: The above steps result in beneficiary results. He urged that there be no restriction on spending for achieving quality. The actions that result in the benefits derived should be the norm for establishing standards. designs. not appraisal. machine time and loss of morale. Appraisal costs : These are costs of inspection. segregation costs. every time 2) Communication: Flow of information between departments. The ingredients are: 1) Integrity: Honesty and commitment help in producing everything right first time. His absolutes can be listed as under: • • • • Quality is conformance to requirements. labour. 4. His approach emphasises on measurement of quality. Crosby’s absolutes of quality Like Deming. warranty costs and loss of goodwill. not ‘goodness’ Prevention. He opined that the quality management regimen should improve the overall health of the organisation and prescribed a vaccine. Crosby also lays emphasis on top management commitment and responsibility for designing the system so that defects are not inevitable. Quality Control. so that advantages derived are not lost over time. Failure costs . corrective action. In the long run. Crosby also has given 14 points similar to those of Deming.

Give pride of workmanship to the workmen 13. Conduct meaningful training on the job 7. Deming’s approach is summarised in his 14 points. Improve the system of production and service constantly 6. Do not set-up numerical quotas and work standards 12. Constancy of purpose for continuous improvement 2. State and exhibit top management’s commitment for quality and productivity . Education and training to be given vigorously 14. Do not exhort.3) Systems and operations: These should bring in a quality environment so that nobody is comfortable with anything less than the best Deming wheel Deming’s TQM helps organisations to improve the quality of the products and services they offer. Remove barriers between departments and people 10. Do not award any business based on price alone 5. Adopt modern methods of supervision and leadership 8. and put up posters 11. repeat slogans. Adopt the TQM philosophy for economic purposes 3. 1. Remove fear from the minds of everyone connected with the organisation 9. Do not depend on inspection to deliver quality 4.

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