OM-101-Solution

Q:-Difference between Operations Management and Management

Operations Management is an ongoing organizational function that performs activities to
produce products or supply services. For instance, production operations, manufacturing, IT
service management, and accounting operations.
Furthermore, operations are permanent endeavours that produce repetitive outputs.
Resources are assigned to do the same tasks according to operating procedures and policy.
In contrast, managements are temporary and help the business to meet organizational goals
and to respond quickly and easily to the external environment. Organizations use
management to change operations, products and services to meet business need, gain
competitive advantage and respond to new markets.
Q:- What is pure projects? Advantages and disadvantages of pure projects.
A Pure project is where a self-contained team works full time on the project.
Pure Projects believes that every client and project is unique, which demands a unique
approach with suitably tailored teams and systems to ensure success.
The staff and directors of Pure Projects understand the cultural uniqueness of each region in
which we operate and tailor our approach and systems to best ensure successful project
outcomes.
Advantages
The project manager has full authority over the project.
Team members report to one boss.
Lines of communication are shortened. Decisions are made quickly.
Team pride, motivation, and commitment are high
Disadvantages
Duplication of resources.
Organizational goals and policies are ignored.
Lack of new technology transfer due to weakened functional divisions
Team members have no functional area home.
Q:- What factors must be treated off by product development before introducing a new
product?
Successful product launches involve a number of different activities. (1) An appropriate
organizational environment and top management support (2) Use of a disciplined new
product development process (3) Dedicated development teams plus the willingness and
ability to partner and outsource (4) Product development activities that start with and flow
from business unit strat- egy (5) Understanding the external environment and identifying
market opportunities that fit core competencies (6) Identification and specification of what is
driving the consumer and what the consumer wants (7) Processes and techniques for
keeping the pipeline filled with a wide variety of product ideas (8) Clear and focused product
definition early in the process before development work begins (9) A superior and
differentiated product and package (10) Use of research to measure reaction to the product
and all elements of the pro- gram throughout the development process (11) Use of category
management philosophy to align manufacturer and retailer focus on the consumer (12) A
well-executed launch (13) Ability to adapt, grow, and improve as market and competitive
conditions evolve
Q:- Draw some suggestion for reducing the throughput times of process.
Manufacturing throughput time is defined as the length of time between the release of an

order to
the factory floor and its receipt into finished goods inventory or its shipment to the
customer. Reductions in manufacturing throughput time can generate numerous benefits.
Manufacturing throughput time reduction can be a daunting task due to the many factors
that influence it and their complex interactions. However, there are basic principles that, if
applied correctly, can be used to reduce manufacturing throughput time. The answer to this
question will vary between plants, but the following guidelines can be offered:
1. Production and transfer batch size reductions offer the largest potential for MTTP in most
plants. If the plant has a job shop/functional layout in place, significant reductions in batch
size may require conversion to manufacturing cells (for reasons listed in column 5 of the
frame- work). Converting to cells may also reduce move time per part, processing time per
part, processing variability, and arrival variability, further reducing MTTP beyond that
achieved through production and transfer batch size reductions alone.
2. High workstation utilization is a major contributor to long MTTP, especially in cases where
variability is high. If variability cannot be reduced, workstation utilization must be reduced to
lower throughput times. In general, work-station utilization levels in the 7580% range may
be required on critical resources to keep MTTP low (Suri 1998).
3. Many causes of long MTTP are a result of policies and procedures implemented in the past
that are used to control production batch sizes, transfer batch sizes, workstation utilization,
resource access, and so on. With the current emphasis on short manufacturing throughput
times, the relationships illustrated in the throughput time reduction framework and the
principles discussed in this paper should be used to evaluate whether these decisions should
be changed.
Q:- Explain the nature of services.
A service is an act or performance offered by one party to another. They are economic
activities that create value and provide benefits for customers at specific times and places
as a result of bringing desired change.
Service is an act or performance offered by one party to another. They are economic
activities that create value and provide benefits for customers at specific times and places
as a result of bringing about a desired change in or on behalf of the recipient of the service.
According to the marketing experts and management thinkers the concept of services is a
wider one. The distinct characteristics of services are mentioned below.
Simultaneity: opportunities for personal selling, interaction creates customer perceptions of
quality
Perishability: cannot inventory, opportunity loss of idle capacity, need to match supply with
demand
Intangibility: creative advertising, no patent protection, importance of reputation
Heterogeneity: customer involvement in delivery process results in variability
Customer Participation in the Service Process: attention to facility design, opportunities for
co-production, concern for customer and employee behavior
Or:- Explain the nature of services.
A service is an act or performance offered by one party to another. They are economic
activities that create value and provide benefits for customers at specific times and places
as a result of bringing desired change.
According to Sir William B Service refers to social efforts which includes the Govt. to fight
five giant evils wants, disease, ignorance, squalor and illness in the society.
Service is an act or performance offered by one party to another. They are economic

activities that create value and provide benefits for customers at specific times and places
as a result of bringing about a desired change in or on behalf of the recipient of the service.
According to the marketing experts and management thinkers the concept of services is a
wider one. The distinct characteristics of services are mentioned below.
Intangibility: Services are intangible we cannot touch them are not physical objects.
According to Carman and Uhl, a consumer feels that he has the right and opportunity to see,
touch, hear, smell or taste the goods before they buy them.
Perishability : Services too, are perishable like labor, Service has a high degree of perish
ability. Here the element of time assumes a significant position
Inseparability: Services are generally created or supplied simultaneously. They are
inseparable. For an e.g., the entertainment industry, health experts and other professionals
create and offer their service at the same given time.
Heterogeneity: The quality of services cannot be standardized. The same type of services
cannot be sold to all the consumers even if they pay the same price. Consumers rate these
services in different ways. This is due to the difference in perception of individuals at the
level of providers and users. Heterogeneity makes it difficult to establish standards for the
output of service firm.
Ownership: In the sale of goods, after the completion of process, the goods are transferred in
the name of the buyer and he becomes the owner of the goods. But in the case of services,
we do not find this. The users have only an access to services. They cannot own the service.
Simultaneity: Services cannot move through channels of distribution and cannot be
delivered to the potential customers and user. Thus, either users are brought to the services
or providers go to the user. It is right to say that services have limited geographical area.
Quality Measurement: A service sector requires another tool for measurement. We can
measure it in terms of service level. Hence we can determine the level of satisfaction at
which users are satisfied. Thus the firm sells good atmosphere convenience of customers,
consistent quality of services, etc.
Nature of demand- Generally, the services are fluctuating in nature. During the peak tourist
seasons there is an abnormal increase in the demand of services. Therefore, while
identifying the salient features of services one cannot ignore the nature of demand. E.g.
tourists go to hill stations during summer season wherein public transport utilities are used
substantially. This indicates that flexibility is the important feature of service.
Q:- Factors that should be considered in queuing system
The queuing system consists primarily of the waiting line(s) and the available number of
servers. Here we discuss issues pertaining to waiting line characteristics and management,
line structure, and service rate. Factors to consider with waiting lines include the line length,
number of lines, and queue discipline.
Length: In a practical sense, an infinite line is simply one that is very long in terms of the
capacity of the service system. Examples of infinite potential length are a line of vehicles
backed up for miles at a bridge crossing and customers who must form a line around the
block as they wait to purchase tickets at a theater. Gas stations, loading docks, and parking
lots have limited line capacity caused by legal restrictions or physical space characteristics.
This complicates the waiting line problem not only in service system utilization and waiting
line computations but also in

the shape of the actual arrival distribution. The arrival denied entry into the line because of
lack of space may rejoin the population for a later try or may seek service elsewhere. Either
action makes an obvious difference in the finite population case.
Number of lines: A single line or single file is, of course, one line only. The term multiple lines
refers to the single lines that form in front of two or more servers or to single lines that
converge at some central redistribution point. The disadvan- tage of multiple lines in a busy
facility is that arrivals often shift lines if several previous services have been of short
duration or if those customers currently in other lines appear to require a short service time.
Queue discipline: A queue discipline is a priority rule or set of rules for determining the order
of service to customers in a waiting line. The rules selected can have a dramatic effect on
the systems overall performance. The number of customers in line, the average waiting
time, the range of variability in waiting time, and the efficiency of the service facility are just
a few of the factors affected by the choice of priority rules. Probably the most common
priority rule is first come, first served (FCFS). This rule states that customers in line are
served on the basis of their chronological arrival; no other characteristics have any bearing
on the selection process. This is popularly accepted as the fairest rule, although in practice it
discriminates against the arrival requiring a short service time.
Q:- What capacity problems are encountered when anew drug is introduced to the market?
The primary concerns come from uncertain demand for the drug and the high capital
investment typically needed for modern drug production. Being a new drug, there are no
historical sales data on which to base forecasts of future demand. If forecasts are too high,
significant capital resources will be underutilized. If forecasts are too low, there may be
insufficient capital resources to meet the actual demand, resulting in lost sales when the
price for the new drug is typically highest.
Q:- What is operations strategy? Discuss the corporate strategy design process of operations
management.
According to Slack and Lewis, operations strategy holds the following definition:
Operations strategy is the total pattern of decisions which shape the long-term capabilities
of any type of operations and their contribution to the overall strategy, through the
reconciliation of market requirements with operations resources.
Operations strategy is the tool that helps to define the methods of producing goods or a
service offered to the customer
In this section that follows, we'd be performing a surgery of the given definition in order to
know what operations strategy actually means.
Market and brand focused organisations are concerned with the expression and perception
of the corporate brand. Corporate design management implements, develops, and maintains
the corporate identity, or brand. This type of brand management is strongly anchored in the
organisation to control and influence corporate design activities. The design programme
plays the role of a quality programme within many fields of the organisation to achieve
uniform internal branding. It is strongly linked to strategy, corporate culture, product
development, marketing, organisational structure, and technological development.
Achieving a consistent corporate brand requires the involvement of designers and a
widespread design awareness among employees. A creative culture, knowledge sharing
processes, determination, design leadership, and good work relations support the work of
corporate brand management.
Q:- What are the some reasons for which project scheduling is not done well.

Every design project brings its own unique challenges. Here are some common ways design
projects to go off track:
1. Creativity means uncertain duration creativity doesnt always happen exactly within a
specific time allotment.
2. Problems on another project demand the teams attention, and everyone must focus on
addressing that and not the current project.
3. Client delays in approval or providing information or even just decision-making.
4. A poorly forecasted or overly optimistic schedule created by the project manager.
5. Technological troubles software conflicts, IT issues, bad file and asset management.
6. Steeper learning curve than anticipated.
7. More client and or designer revisions were required, causing more work expanding time
allotments as well.
8. Bad creative brief: poorly defined scope of work and incorrect strategic assumptions.
Essentially, working on the wrong problem in the wrong way and wasting time.
9. Unforeseen complexity and degree of difficulty.
10. Poor communication and team interaction.
Q:- Discuss the six generic product development process of product design.
The six phases of the generic product development process are:
0. Planning: The planning activity is often reffered to as "phase zero" since it precedes the
project approval and launch of the actual product development process. This phase begins
with corporate strategy and includes assessment of technology developments and market
objectives. The output of the planning phase is the project mission statement, which
specifies the target market for the product, business goals, key assumptions, and
constraints.
1. Concept development: In the concept development phase, the needs of the target market
are identified, alternative product concepts are generated and evaluated, and one or more
concepts are selected for further development and testing. A concept is a description of the
form, function, and features of a product and is usually accompanied by a set of
specifications, an analysis of competitive products, and an economic justification of the
project.
2. System-level design: The system-level design phase includes the definition of the product
architecture and the decomposition of the product into subsystems and components. The
final assembly scheme for the production system is usually defined during this phase as
well. The output of this phase usually includes a geometric layout of the product, a
functional specification of each of the product's subsystems, and a preliminary process flow
diagram for the final assembly process.
3. Detail design: The detail design phase includes the complete specification of the
geometry, materials, and tolerances of all of the unique parts in the product and the
identification of all of the standard parts to be purchased from suppliers. A process plan is
established and tooling is designed for each part to be fabricated within the production
system. The output of this phase is the control documentation for the product - the drawings
or computer files describing the geometry of each part and its production tooling, the
specifications of the purchased parts, and the process plans for the fabrication and assembly

of the product. Two critical issues addressed in the detail design phase are production cost
and robust performance.
4. Testing and refinement: The testing and refinement phase involves the construction and
evaluation of multiple preproduction versions of the product. Early (alpha) prototypes are
usually built with production-intent parts - parts with the same geometry and material
properties as intended for the production version of the product but not necessarily
fabricated with the actual processes to be used in production. Alpha prototypes are tested to
determine whether the product will work as designed and whether the product satisfies the
key customer needs. Later (beta) prototypes are usually built with parts supplied by the
intended production processes but may not be assembled using the intended final assembly
process. Beta protitypes are extensively evaluated internally and are also typically tested by
customers in their own use environment. The goal for the beta prototypes is usually to
answer questions about performance and reliability in order to identify necessary
engineering changes for the final product.
5. Production ramp-up: In the production ramp-up phase, the product is made using the
intended production system. The purpose of the ramp-up is to train the work force and to
work out any remaining problems in the production processes. Product produced during
production ramp-up are sometimes supplied to preferred customers and are carefully
evaluated to identify any remaining flaws. The transition from production ramp-up to
ongoing production is usually gradual. At some point in this transition, the product is
launched and becomes available for widespread distribution.
Q:- What does product process matrix tell us?
The product-process matrix is a tool for analyzing the relationship between the product life
cycle and the technological life cycle. It was introduced by Robert H. Hayes and Steven C.
Wheelwright in two classic management articles published in Harvard Business Review in
1979, entitled "Link Manufacturing Process and Product Life Cycles" and "The Dynamics of
Process-Product Life Cycles." The authors used this matrix to examine market-manufacturing
congruence issues and to facilitate the understanding of the strategic options available to a
company. The matrix itself consists of two dimensions, product structure/product life cycle
and process structure/process life cycle. The production process used to manufacture a
product moves through a series of stages, much like the stages of products and markets,
which begins with a highly flexible, high-cost process and progresses toward increasing
standardization, mechanization, and automation, culminating in an inflexible but costeffective process. The process structure/process life cycle dimension describes the process
choice (job shop, batch, assembly line, and continuous flow) and process structure (jumbled
flow, disconnected line flow, connected line flow and continuous flow) while the product
structure/product life cycle describes the four stages of the product life cycle (low volume to
high volume) and product structure (low to high standardization). Later writers on the
subject sometimes insert an additional stage in the extreme upper-left corner of the matrix:
the project.
A company can be characterized as occupying a particular region on the matrix. This region
is determined by the firm's stage in the product life cycle and the firm's choice of production
process. At the upper left extreme, firms are characterized as process oriented or focused
while the lower right extreme holds firms that are said to be product focused. The decision of
where a firm locates on the matrix is determined by whether the production system is
organized by grouping resources around the process or the product. Note from the figure

that the vertices of the matrix result in four distinct types of operations (described by the
appropriate process choice) located on the diagonal of the matrix.
Q:- How does the product volume affect break even analysis? Explain.
Breakeven is the point, also known as the cost, profit volume analysis is about finding the
point where the sales (Revenue) equals the total costs. This analysis is all about determining
the volume at which the revenues will be just enough to cover up all the costs, that is,
profits will be zero. The production above this level will contribute to profits. As we know
revenue is the product of price and quantity, the more you increase the quantity, the more
revenues you will have. That is why production volume is important as it is the production
volume that determines the point at which you will break even as it is not possible for the
producer to change the price a lot while the volume can be varied. The production volume is
essential in determining how much we have to produce to become profitable.
Q:- What are some reasons for a plant to maintain a capacity cushion? How about a negative
capacity cushion? Explain.
A plant may choose to maintain a capacity cushion for a number of reasons. If the demand is
highly unstable, maintaining cushion capacity will ensure capacity availability at all times.
Also, capacity cushions can be useful if high service quality levels are established. Some
organizations choose to use capacity cushions as a competitive weapon to create barriers to
entry for competitors.
Negative capacity cushions may be maintained when demand is expected to decrease
rapidly and capacity investment is high enough to discourage short run capacity
acquisitions.
Q:- Discuss the issues in facility location.
The problem of facility location is faced by both new and existing businesses, and its
solution is critical to a companys eventual success. An important element in design- ing a
companys supply chain is the location of its facilities. For instance, 3M has moved a
significant part of its corporate activity, including R&D, to the more temperate climate of
Austin, Texas. Toys Us has opened a new location in Japan as a part of its global strategy.
Disney chose Paris, France, for its European theme park, and BMW assembles the Z3 sports
car in South Carolina. Manufacturing and service companies location decisions are guided
by a variety of criteria defined by competitive imperatives. Criteria that influence manufacturing plant and warehouse location planning are discussed next.
Proximity to Customers: For example, Japans NatSteel Electronics has built its two largest
plants in Mexico and Hungary to be closer to major markets in the United States and Europe
whose buyers want their goods delivered yesterday. Such proximity also helps ensure that
customer needs are incorporated into products being developed and built.
Business Climate: A favorable business climate can include the presence of similar-sized
businesses, the presence of companies in the same industry, and, in the case of
international locations, the presence of other foreign companies. Probusiness government
legislation and local government intervention to facilitate businesses locating in an area via
subsidies, tax abatements, and other support are also factors.

Total Costs: The objective is to select a site with the lowest total cost. This includes regional
costs, inbound distribution costs, and outbound distribution costs. Land, construction, labor,
taxes, and energy costs make up the regional costs. In addition, there are hidden costs that
are difficult to measure. These involve (1) excessive moving of preproduction material
between locations before final delivery to the customers and (2) loss of customer
responsiveness arising from locating away from the main customer base.
Infrastructure: Adequate road, rail, air, and sea transportation are vital. Energy and
telecommunications requirements also must be met. In addition, the local governments
willingness to invest in upgrading infrastructure to the levels required may be an incentive
to select a specific location.
Quality of Labor: The educational and skill levels of the labor pool must match the
companys needs. Even more important are the willingness and ability to learn.
Suppliers: A high-quality and competitive supplier base makes a given location suitable. The
proximity of important suppliers plants also supports lean production methods.
Other Facilities: The location of other plants or distribution centers of the same company
may influence a new facilitys location in the network. Issues of product mix and capacity are
strongly interconnected to the location decision in this context.
Free Trade Zones: A foreign trade zone or a free trade zone is typically a closed facility
(under the supervision of the customs department) into which foreign goods can be brought
without being subject to the normal customs requirements. There are about 170 such free
trade zones in the United States today. Such specialized locations also exist in other
countries. Manufacturers in free trade zones can use imported components in the final
product and delay payment of customs duties until the product is shipped into the host
country.
Political Risk: The fast-changing geopolitical scenes in numerous nations present exciting,
challenging opportunities. But the extended phase of transformation that many countries
are undergoing makes the decision to locate in those areas extremely difficult. Political risks
in both the country of location and the host country influence location decisions.
Government Barriers: Barriers to enter and locate in many countries are being removed
today through legislation. Yet many nonlegislative and cultural barriers should be considered
in location planning.
Trading Blocs: The world of trading blocs gained a new member with the ratification of the
North American Free Trade Agreement (NAFTA). Such agreements influence location
decisions, both within and outside trading bloc countries. Firms typically locate, or relocate,
within a bloc to take advantage of new market opportunities or lower total costs afforded by
the trading agreement. Other companies (those outside the trading bloc countries) decide
on locations within the bloc so as not to be disqualified from competing in the new market.
Examples include the location of various Japanese auto manufacturing plants in Europe

before 1992 as well as recent moves by many communications and financial services
companies into Mexico in a post-NAFTA environment.
Environmental Regulation: The environmental regulations that impact a certain industry in a
given location should be included in the location decision. Besides measurable cost
implications, these regulations influence the relationship with the local community.
Host Community: The host communitys interest in having the plant in its midst is a
necessary part of the evaluation process. Local educational facilities and the broader issue
of quality of life are also important.
Competitive Advantage: An important decision for multinational companies is the nation in
which to locate the home base for each distinct business. Porter suggests that a company
can have different home bases for distinct businesses or segments. Competitive advantage
is created at a home base where strategy is set, the core product and process tech- nology
are created, and a critical mass of production takes place. So a company should move its
home base to a country that stimulates innovation and provides the best environ- ment for
global competitiveness.1 This concept can also be applied to domestic companies seeking to
gain sustainable competitive advantage. It partly explains the southeastern states recent
emergence as the preferred corporate destination within the United States (that is, their
business climate fosters innovation and low-cost production).
Q:- Distinguish between in-process inventory, safety stock inventory, and seasonal inventory.
In-process inventory consists of those items of materials components and partially
completed units that are currently in the production process.
Safety-stock inventory is set so that inventory is maintained to satisfy some maximum level
of demand. It could be stated that safety stock is that level of inventory between the
minimum expected demand and the desired level of demand satisfaction.
Seasonal inventory is that inventory accumulated to meet some periodic increase in
demand.
OM-111-Solution
1. What is Operations Management?
Operations Management deals with the design and management of products, processes,
services and supply chains. It considers the acquisition, development, and utilization of
resources that firms need to deliver the goods and services their clients want.
Q-Why Is Operation Management Important?
Operations management is the management of resources to create goods and services that
can be sold to make a profit. This resources include employees, facilities, inventory and
time. It is important because it allows a company to make profits if used properly.
Operations management is very important in business operations since it forms the heart of
the organization by controlling the system of operation. Operations management deals with
the design, operation, and improvement of the systems that create and deliver a firms
primary products and services. Like marketing and finance, operations management is a
functional field of business with clear management responsibilities.
2. Explain matrix project with advantage
An organizational structure that facilitates the horizontal flow of skills and information.
It is used mainly in the management of large projects or product development processes,
drawing employees from different functional disciplines for assignment to a team without
removing them from their respective positions.

Advantages of a matrix project

- Because key people can be shared, the project cost is minimized
- Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved
- There is a better balance between time, cost and performance
- Authority and responsibility are shared
- Stress is distributed among the team
3. 7 Steps of Product Development
Product development steps vary based on the nature of the business and the management
style, but most businesses follow seven main steps in the development process.
Product Idea Brainstorming
The first step is to generate an idea for the product. Ask employees, especially those who
deal with customers regularly, for product ideas.
Evaluate the Ideas
Make a list of product ideas and share it with the appropriate decision-makers in the
company, such as the management team.
Market Evaluation
Seek feedback from customers, employees and partners on which idea is most appealing.
Analysis
Analyze the remaining product idea from a business perspective. Determine how much, if
any, competition exists for similar products
Prototype and Marketing
Develop a prototype of the product, then share it with a handful of good customers and key
partners. Ask them to try it out and provide feedback.
Market Testing
Make adjustments to the prototype or develop a new version, if necessary. Develop
additional prototypes for market testing.
Prepare for Launch
Begin production for the first round of the product launch. Evaluate how many products to
produce based on market testing and demand for the product.
Q. No.-4: What it the major cost trade-off that must be made in managing waiting line
situations?
The classic trade-off is between the cost of waiting for service versus the cost of providing
additional service capacity, e.g., the cost of idle WIP versus the cost of adding more workers
and machines to process the inventory.
5. Discuss the purpose of inventory.
Inventory -- stored resource (raw material, work-in-process, finished goods) that is used to
satisfy present or future demand.
Purposes of inventory
1. Smooth-out variations in operation performances
2. Avoid stock out or shortage
3. Safeguard against price changes and inflation
4. Take advantage of quantity discounts
advantages:
1) can meet the customer demand
2) can avoid loss of sale
3) can meet unexpected increase in demand
disadvantages:
1) money locked up in inventory

2) holding costs
3) spoilage costs
4) obsolescence costs
Q-What Is the Purpose of Inventory Control?
The main purpose of inventory control is simply to enable a business take stock and
appropriately manage their goods and products. Inventory control is a process done by
businesses that sell products in order to help analyse how the business is performing.
6. what is capacity?
The maximum level of output of goods and/or services that a given system can potentially
produce over a set period of time. In most cases, it is unlikely that any system will operate at
full capacity for prolonged periods, because natural inefficiencies and other factors decrease
potential output.
Capacity Utilization Rate
A metric used to measure the rate at which potential output levels are being met or used.
Displayed as a percentage, capacity utilization levels give insight into the overall slack that
is in the economy or a firm at a given point in time. If a company is running at a 70%
capacity utilization rate, it has room to increase production up to a 100% utilization rate
without incurring the expensive costs of building a new plant or facility.
Capacity Utilization Rate
7. Work-in-Process Inventory
Definition: Work-in-process inventory is inventory that has been partially converted through
the production process, but for which additional work must be completed before it can be
transported out of the manufacturing area and recorded as finished goods inventory.
The cost of work-in-process typically includes all of the raw material cost related to the final
product, since raw materials are usually added at the beginning of the conversion process.
Also, a portion of the direct labor cost and factory overhead will also be assigned to work-inprocess; more of these costs will be added as part of the remaining manufacturing process.
Definition of 'Seasonality'
A characteristic of a time series in which the data experiences regular and predictable
changes which recur every calendar year. Any predictable change or pattern in a time series
that recurs or repeats over a one-year period can be said to be seasonal.
Note that seasonal effects are different from cyclical effects, as seasonal cycles are
contained within one calendar year, while cyclical effects (such as boosted sales due to low
unemployment rates) can span time periods shorter or longer than one calendar year.
8.a operational strategy
Definition
A plan of action implemented by a firm that describes how they will employ their resources
in the production of a product or service. An operational strategy is a necessary element for
a business and supports the firm's corporate strategy.
8.b Q-Discuss the major competitive dimensions that forms the competitive position of a
firm
Answer- Book Page-25
Or, An operation strategy is concerned with setting broad polices and plans for using the
resources of a firm to best support its long-term competitive strategy.
COMPETITIVE DIMENSIONS
Cost Make it cheap
Product Quality and Reliability Make it Good
Delivery Speed Make it Fast

 Delivery Reliability Deliver it when Promised

Coping with Changes in Demand Change its Volume
Flexibility and New Product Introduction Speed- Change it
Other Product-Specific Criteria
Technical liaison
Meeting a launch date
Supplier after-sale support
9.a critical path
Longest sequence of activities in a project plan which must be completed on time for the
project to complete on due date. An activity on the critical path cannot be started until its
predecessor activity is complete; if it is delayed for a day, the entire project will be delayed
for a day unless the activity following the delayed activity is completed a day earlier.
give an example of process flowchart
no
11. what is manufacturing execution system?
A manufacturing execution system (MES) is a control system for managing and monitoring
work-in-process on a factory floor. An MES keeps track of all manufacturing information in
real time, receiving up-to-the-minute data from robots, machine monitors and employees.
The goal of a manufacturing execution system is to improve productivity and reduce cycletime, the total time to produce an order. By integrating an MES with ERP software, factory
managers can be proactive about ensuring the delivery of quality products in a timely, costeffective manner.
12. Discuss the functions of scheduling and controlling of an operation in brief?
Functions of the operations scheduling
1. Allocation of the resources.
2. Shop floor control.
3. Making maximum use of the plant at minimum possible cost.
4. Ensure that the needs of the manpower are optimum.
5. Determination of the sequence of the jobs.
6. Specifying the start and the end time for each job (actively scheduled).
7. Getting quick feedback from the shops regarding the delays and the various interruptions.
8. Possess up to date information for the availability of the materials, expected delivery
dates etc.
9. Possess up to date data on the machine regarding its breakdown, servicing etc.
10. Keep itself abreast of the hiring, dismissals, holidays etc. of the work force.
Production planning and control
1. To plan production facilities in the best possible manner along with the proper systematic
planning of production activities.
2. Providing men, machines, materials etc. of right quality, quantity and also providing them
at the right time forms a very important factor.
3. To inform, about the difficulties or the various awkward positions expected to crop up
later, to the management beforehand.
13. Explain the different types of Inventories
Raw materials: Raw materials, required for production of finished products are one of the
basic components of inventory for a manufacture. Shortage of raw materials can cause
production stoppage or change in production Schedule which in turn may result in a
shortage of finished goods. Thus sufficient quantities of raw materials need to be stored to
cope with uncertain situations. However, where shortage of raw materials can disrupt

normal manufacturing operations, excessive inventories can increase inventory carrying

costs and reduce profitability.
Finished Goods: Finished goods are another important part of inventories, especially for the
wholesalers and manufacturers. While holding finished goods inventory, it is important to
have a adequate and not excess stock of inventories as they may incur cost as well as loss if
the excess inventory is not sold out in time.
W.I.P.: Work In Progress (W.I.P.) inventory is often maintained between manufacturing
operations within a plant to avoid production hold ups in case a critical machine or
equipment were to breakdown and also to equalize production flow, since not all
manufacturing units produce at the same rate.
Spare parts: Spare part inventories are mainly held for purpose of coping up with untimely
breakdowns in machinery and facilities. This may form a minor part of the inventory,
however are as necessary as holding raw materials inventory.
14. Short Note On:
a. safety stock
Inventory held as buffer against mismatch between forecasted and actual consumption or
demand, between expected and actual delivery time, and unforeseen emergencies. Safety
stock is the stock held by a company in excess of its requirement for the lead time.
Safety stock is calculated using the following formula:
Safety Stock = (Maximum Daily Usage Average Daily Usage) Lead Time
b. centroid method
The centroid method helps businesses identify the location of facilities used for
manufacturing and other production-related aspects of the business. The ultimate goal of
this method is to use math formulations to achieve either lower shipping costs, lower
shipping time or both in relation to profits.
The centroid method offers very specific, limited information to the individuals in an
organization that manage the manufacturing and production lines. Not only does this
method identify both new and possible facility locations, it also helps to keep track of wellestablished facilities for the business. This allows the centroid method to provide useful
information regarding the distances between locations.
c. assembly line balancing
Assembly line balancing can be loosely defined as the process of optimizing an assembly
line with regard to certain factors. Configuring an assembly line is a complicated process,
and optimizing that system is an important part of many manufacturing business models.
Maintaining and operating one is often quite costly, as well. The main focus of balancing is
usually to optimize existing or planned assembly lines to minimize costs and maximize
gains.
d. cycle time
The period required to complete one cycle of an operation; or to complete a function, job, or
task from start to finish. Cycle time is used in differentiating total duration of a process from
its run time.
e. learning curve
A concept that describes how new skills or knowledge can be quickly acquired initially, but
subsequent learning becomes much slower. At first, a minimal investment of resources
yields significant results, but the payback from continuing effort is smaller. The concept of a
learning curve is important to companies in hiring and training new employees and
managers, in working to increase production efficiency, and in budgeting and forecasting

costs.
f. gantt chart
A Gantt chart is a visual representation of a project schedule. A type of bar chart, a Gantt
charts show the start and finish dates of the different required elements of a project. Henry
Laurence Gantt, an American mechanical engineer, is recognized for developing the Gantt
chart.
g. throughput time
The period required for a material, part, or subassembly to pass through the manufacturing
process. Full form: manufacturing throughput time. Throughput is generally viewed as the
rate a business is able to produce a product or service for a given unit of time.