Professional Documents
Culture Documents
MB0044
Lack of expertise: The outsourced firm may not have the requisite expertise to do the
job required.
Quality considerations: Loss of control over operations may result in lower quality.
Nature of demand: When the load is uniform and steady, it may not be worthwhile to
outsource. Absence of supervision and control may be a hindrance to meet any urgent
requirements of the customer. This affects the business, especially if no production
facilities are built in the organisation.
Cost: It may not be worthwhile when the fixed costs that go along with making the
product does not get reduced considerably.
Implementation of operations
Implementation is the process of executing the planned operations. When planning and
controlling functions are put together, we call it as Implementation of Operations. The planning
is the process of estimating, routing, and scheduling. The controlling functions are conducted
while the manufacturing is going on, like dispatching and expediting.
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Dispatching: Dispatching is concerned with moving of the materials with tools, jigs, and
fixtures to specific machines along with the drawings and ensuring inspections at specific
nodes, so that the materials move in the supply chain.
Cost:- A firm competing on a price/cost basis is able to provide consumers with an indemand product at a price that is competitively lower than that offered by firms
producing the same or similar good/service. In order to compete on a price basis, the firm
must be able to produce the product at a lesser cost or be willing to accept a smaller profit
margin.
Quality:- Quality can have eight dimensions as performance, conformance, features,
durability, reliability, serviceability, aesthetics and perceived quality. Firms competing on
this basis offer products or services that are superior to the competition on one or more of
the eight dimensions. Obviously, it would be undesirable if not impossible for firms to
compete on all eight dimensions of quality at once.
Flexibility:- Firms may compete on their ability to provide either flexibility of the
product or volume. Firms that can easily accept engineering changes (changes in the
product) offer a strategic advantage to their customers. This can also apply to services. A
number of years ago, a well-known fast food restaurant advertised hold the pickles, hold
the lettuce, special orders dont upset us, which meant that ordering a non-standardized
version of the product would not slow down the delivery process.
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This method is typically done for new products or at new places where a product is to be
launched. In this method, the number of respondents and how responses are gathered like
through oral interviews, personal talks, internet based, postal ballots, etc., have to be established
before survey. The common limitations are the sample size and the way of drawing the sample
like random, convenient, or judgmental. Sample bias is not completely ruled out.
Question (2):- Evaluate the factors that favour Gujarat as a location for
manufacturing automobiles?
Answer: General factors that favour Gujarat as a destination for automobile
manufacturing
Gujarat has leveraged its locational advantages, with relatively low transaction costs for
accessing markets in the western and northern India. Good rail connectivity is slated to improve
significantly with the opening of the dedicated freight corridors to Dahej and NhavaSheva
passing through large parts of Gujarat. Sanand is also a part of the Delhi-Mumbai Industrial
Corridor (DMIC), a multi-billion dollar India-Japan initiative. The Delhi-Mumbai freight
corridor project will provide excellent rail connectivity for the auto sector in Sanand and for
other industries. Gujarats emergence as an auto hub is not an accident, but an outcome of
leveraging its strengths through sound economic policies and competent management by the
state government.
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Several domestic and foreign auto manufacturers have either announced plans to establish
manufacturing plants in Gujarat or are considering it as a possible location.
Gujarats auto hub thus goes beyond the production of cars. The mix of domestic and foreign
auto companies also provides opportunities for skills transfer and learning.
One of the advantages of Gujarat is the larger share of non-fertile agricultural land. This
potentially makes managing the requirements of industry for land easier. Gujarat Industrial
Development Corporation (GIDC) deserves credit for turning the above potential into actual
accomplishments.
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Question (3):- Write short note on the following: 5 S system of waste elimination
5S is a philosophy, a way of thinking which focuses on organizing and managing the workspace
by eliminating 7 Wastes while improving quality and safety. The 5S list describes how to
organize a work space for efficiency and effectiveness by identifying and storing the items used,
maintaining the area and items, and sustaining the new order. There are five primary 5S phases
which are known as:
Sort
Straighten
Shine
Standardize
Follow procedures
Follow checklists for activities where available
Keep the work area to specified standard
Sustain
Clean up after completion of job and before commencing next job or end of shift
Identify situations where compliance to standards is unlikely and take actions specified in
procedures
Inspect work area regularly for compliance to specified standard
Recommend improvements to lift the level of compliance in the workplace
Scheduling in Services
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In todays competitive world, the orders that are placed either from the side of the customer or
from the side of the assembly benches are to be completed on or before the contracted or the
promised date. For fulfilling this, operations scheduling plays a very critical and an essential role
and completely ensures that these dates are met.
Operations scheduling helps in the confirmation or the revision of the tentative delivery date that
has been promised in the original quotation. Sometimes during the operations scheduling of the
work order, it may be discovered that the delivery date originally and tentatively promised
cannot be met. All this may be due to the several problems like the materials that are required
may not be available at that particular time or may not be available immediately. This problem
can also occur due to the increased plant loading while the customer is deciding whether or not
to award the quoted job to this company.
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high degree of visibility of its goods at the customers location. Instead of the customer
reordering when its supply has been exhausted, the supplier is responsible for replenishing and
stocking the customer at appropriate levels
Subcontracting Capacity
A firm can acquire temporary capacity by subcontracting work during peak demand periods.
Subcontracting, however, has several pitfalls. First, it may be expensive; second, it risks opening
the clients door to a competitor. Third, it is often hard to find the perfect subcontract supplier,
one who always delivers the quality product on time. However, of late outsourcing has become a
complete business policy and cost of operations may be cited as the main reason. Thus, it is
possible to partly produce the items outside or completely procure from outside. Depending on
who is stronger and controlling the whole process the subcontracting costs will vary and could be
even low.
Did the project fully solve the problem that it was designed to address?
The key to a successful PIR is recognizing that the time spent on the project is just a small part of
an ongoing time-line. After every stage of a project is implemented, it may so happen that there
could be a minor change or modification which has to be reviewed. This is known as post
implementation review. The review is performed in four parts as depicted in the below figure:Rajiv Kalia
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Final Product
Review
Outstanding
Project Work
Project Review
Process Review
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There are various tools for post project implementation review that may be considered for
improving and developing processes of the project. Reports are prepared on the same which
becomes the basis for all future discussion. Some of the tools that may be considered for post
implementation review are the final product evaluation, outstanding project work evaluation,
project review questionnaire, and project evaluation as depicted in the following figure:-
Final
Product
Evaluation
Project
Evaluation
Outstanding
Project Work
Evaluation
Project
Review
Final
product
evaluation: Final product evaluation may be done through regularly organised meetings
and quality reviews.
Outstanding project work evaluation: All outstanding works of a project can be
reviewed to check its output quality and performance.
Project review questionnaire: Project review questionnaire may become important if
the reviews are to be structured. Group discussion may be initiated depending upon the
points to be discussed.
Process evaluation: Evaluation of any process is one of the key issues of project.
Question (5):- Explain the steps to set data in logical order so that the business
process may be defined.
Answer:Explanation of the steps to set data in a logical order:
The following steps should be considered for setting the data in a logical order.
1. Check whether the participants in the process that is, people, teams, and electronic
applications are sufficient or, any changes and additions need to be made.
2. Ensure that all the data expected is included or not. Generally, we start with an initial set of
data which we have. When we check them with the requirements of the process for the desired
outcomes, we find gaps. These gaps help us in determining which subset of the data is
appropriate at each task in the process.
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3. Check whether the data is sufficient for the implementation of the process. This can be
achieved by answering the following questions:
4. State the rules used to define the various parts of the process. At this stage, the naming
conventions are also included. This is important to be included at the process definition stage.
5. Determine the disposition of data at the end of the process and decide the following:
6. Determine the other elements depending upon the business process and the need. The elements
added must be questioned to collect a detail data. It is better to go deeper into the details and
collect data, and make them available at this initial stage, so that a better model can be prepared.
Then, the processes will be more successful in delivering the desired output. Process definition
enables us to go into details at every stage of the process and verify the adequacy of data, the
sequential steps in the process and fill the gaps before attempting implementation.
The purpose of setting the data in a logical order is to, locate deficiencies and remove them.
Therefore, the decisions about process and sequence can be taken and a model can be designed
which is useful in all perspectives.
Listing of the ingredients of a business process
The ingredients that might be used in a business process can be briefly outlined as follows:
The data which accomplishes the desired business objective
Acquisition, storage, distribution, and control of data which undertakes
The process across tasks Persons, teams, and organisational units which helps to perform and
Achieve the tasks Decisions which enhance the value of data during the process
We also have some behavioral aspects of the business process, mainly the decision making
process where humans are involved. Decision failures are common and research has shown that,
the failure of decisions is due to:
Biases in perception and fallacies in reasoning
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Tendency to act on assumptions, even when data are available easily for verification and/or
confirmation
Tendency to bring out of memory the facts that reinforce our assumptions and biased
evaluation
Tendency to accept evidence or fact as absolute which support our hypothesis
These listed factors result in faulty decision making. Being aware and avoiding them consciously
improves the processes of the business.
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6. Serviceability:
Serviceability refers to the promptness, courtesy, proficiency and ease in repair when the product
breaks down and is sent for repairs.
7. Aesthetics:
Aesthetic aspect of a product is comparatively subjective in nature and refers to its impact on the
human senses such as how it looks, feels, sounds, tastes and so on, depending upon the type of
product. Automobile companies make sure that in addition to functional quality, the automobiles
are also artistically attractive.
8. Perceived quality:
An equally important dimension of quality is the perception of the quality of the product in the
mind of the consumer. Honda cars, Sony Walkman and Rolex watches are perceived to be high
quality items by the consumers.
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