NAME: MEENAKSHI

MBA-II semester

MB0028

Production & Operation Management

Set 1
Q1 Explain the various automated systems for transfer of materials in the
production plant? Illustrate your answer by considering an example of an
automobile showroom?

Ans.: Basically, automation system comes to reduce labour power and time in the
production. Here we can see the evolution systems with some examples. The goods
requited by society were produces in small quantities by craftsman who would know the
need of the community and produced them by their own hands with simple tools. The
apprentices or by another craftsman, who would make them to meet the requests made.

The parts and components used to make these machines had to be replaced when they
wore making parts so that interchangeability was achieved made setting up standards and
specifications important for meeting

The craftsmen gave way to engineers, workers, superiors and inspectors. Division of
labour became necessary to achieve efficiencies and the jabs that became specialized.
Competition has necessitated improved quality, reduced sates and better services to the
customer.

Automation systems cost huge sums of money and therefore a deep analysis of the
various factors has to be done. For services, automation usually means labour saving
devices in education, long distance learning technology helps in supplementing class
room instruction. The facilitating goods that are used are web site and videos.

Automation in the banking sector has resulted in ATMs which same the banks a huge
amount customer satisfaction. Automation is ideas when the service provided or the
product manufactured is highly standardized.

Some extent of automation can be designed even with customization i. e. product or

service a meant to produce or deliver low volume specific to a requirement. The
advantages of automation is it has low variability and will be more consistent on a
repetitive basis

The machines have sensing and control devices that enable them to operate automobile.
The simplest of them called machine attachments replace human effort. They guide,
locate, move and achieve revise position by means of came, optical sensing. Load sensing
mechanisms and activate the controls to remove human intention.

Robots are higher in the order of automation as they perform a variety of tasks. They are
designed to move movements according to programmers written into the computer that
inside them.
With the help of automation, inspection of component can be done 100% ensures highest
quality identification and movement of materials are helped by bar codes which are read
and fed into the system far monitoring quantity, location, movement etc. They help the
automated systems to start information and provide information for effecting any changes
necessary. To make effective use of automated machines, we need to have the movement
of materials from and to different time as stores, automated, Automated storage and
Retrieval systems- ASRS- receive orders for materials from anywhere in the production
area, collect materials in the works times. Computers and information systems are used
for placing orders for matters, give commands adjust inventory records which show the
location and quantity of materials needed.

Automated guided vehicle systems- AGVS – are pallet trucks and unit load carriers
follow embedded guide wires or paint strips to destinations as programmed.

In an automobile showroom we can see all the work automatically with latest machine

Q2. State the important considerations for locating an automobile plant? Collect
information on layout planning of an automobile plant from various sources and
furnish the same.

Ans. : To locate an automobile company or plant many thing should be consider. For an
automobile plant automated flaw lines, automated assembly lines, flexible manufacturing
systems, global transition rapid prototyping. Building manufacturing flexibility things are
necessity.

About the automated flow lines we can say it is a machine which is linked by a transfer
system which moves the parts by using handling machines which are also automated, we
have an automated flow line.

Human intervention ma is needed to verify that the operations ate taking place according
to standards. When these cab be achieved with the help of automation and the processes
are conducted with self regulation, we will have automated flow lines established.

In fixed automation or hard automation, where one component is manufactured using

services operations and machines it is possible to achieve this condition. We assume that
product life cycles are sufficiently stable to interest heavily on the automate flow lines to
achieve reduces cast per unit.

Product layouts ate designed so that the assembly tasks are performed in the sequence
they are designed at each station continuously. The finished item came out at the end of
the line.

In automated assembly lines the moving pallets move the materials from station to station
and moving arms pick up parts, place them at specified place and system them by
perusing, riveting, & crewing or even welding. Sensors will keep track of there activities
and move the assembles to the next stage.
The machines are arranged in a sequence to perform operations according to the technical
requirements.

The tools are loaded, movements are effected, speeds controlled automatically without
the need for worker’s involvement.

The flexibility leads to better utilization of the equipments. It reduces the numbers of
systems and rids in reduction of investment as well as a space needed to install them. One
of the major cancers of modern manufacturing systems is to be able to respond to market
Demands which have uncertainties.

Prototyping is a process by which a new product is developed in small number so as to

determine the suitability of the materials, study the various methods of manufactured,
type of machinery required and develop techniques to over come problems that my be
encountered when full scale manufacture is undertaken.

Prototypes do meet the specification of the component that enters a product and
performance can be measured on these.

It helps in con be reforming the design and any shortcomings can be rectified at low cost.

Flexibility has three dimensions in the manufacturing field. They are variety, volume and
time. There demands will have to be satisfied. In that sense they become constraints
which restrict the maximization of productivity. Every business will have to meet the
market demands of its various products in variety volumes of different time.

Flexibility is also needed to be able to develop new products or make improvements in

the products fast enough to cater to shifting marker needs.

Manufacturing systems have flexibility built into them to enable organization meet global
demand. You have understood how the latest trends in manufacturing when implemented
help firms to stay a head in business.

Q3. Who are the players in a project management? What are the various roles and
responsibilities of the players in a project management?

Ans.: At first we will discuss about project management then we will discuss about
players in project management. Project management is the practice of controlling the use
of resources, such as cost, time manpower, hardware and software involved in a project.
That starts with a problem statement and end with delivery of a complete product.

Here we will see the participants of project management:

In the project management players individual and organizations both are involved-

That is actively involved in the project whose interests may be affected by the outcome of
the project.
Exert influence over the project and its results players or also called “stake holders’’ of
the project
Project manager- the individual responsible for managing the project.

Customer- the individual or organization that will use the product- the end result of the
project.

Performing organization- the enterprise whose employees are mast directly involved in
doing the work of the project.

Sponsors- the individual or group within or external to the performing organization that
funds the project.

Now, we will define the role and responsibilities of project management. Here are some
roles and responsibilities:

There are number of projects which an organization works on. It is not possible for one
individual to manage all the projects.

There is a team of mangers who manage the projects.

There may be different teams working as different projects.

An experienced project manager and this team may manage more than one project at a
time.

The project team is responsible for ensuring that the project upon completion shall
deliver the gain in the business for which it is intended for.

-the project team has to properly co-ordinate with each other working on different aspects
of the project.

-the team members are responsible for the completion of the project as per the plans of
the project.

Characteristics of project mindset: - some of the characteristics of project mindset are the
following –

Time - it is possible to improve the pace of the project by reducing the time frame of the
process. The mindset is normally to work in a comfort made by stretching the time limits.

Responsiveness – it refers to quickness of response of an individual. The vibrancy and

livens of an individual or an organization are proportional to its capability of evolving
process and structure for superior responsiveness time constant.

Information sharing – information is owner information is the matter key to today’s

business. Information sharing is the characteristic of the project mindset today.

Process – project mindset lays emphasis on flexible process. The major difference in a
process and a system is in its capabilities of providing flexibility to different situational
encounters. Flexible process possesses greater capabilities of adaptability.

Structured planning – structure planning based a project management life cycle enables
one to easily and conveniently work according to the plan.

Q4. What are the various steps in project monitoring and controlling a project?

Ans.: Here we elaborate the project monitoring and control.

Any project aimed at delivering a product or a service has to go through phases in a

planned manner in order to meet the requirements. It only by careful monitoring of the
project progress. It required establishing control factors to keep the project on the track of
progress. The results of any stage in a project, depends on the inputs to that stage. It is
therefore necessary to control all the inputs and the corresponding outputs from a stage.
A project management may use certain standard trolls to keep the project on track. The
project manager and the team members should be fully aware of the techniques and
methods to rectify the factors influencing delay of the project and its product. The
methodology of PERT (programmer Evolution Review Technique) and CPM (critical
path method) may be used to analyze the project. In the PERT method one car find out
the variance and use the variance to analyze the various probabilistic estimates pertaining
to the project. Using the CPM one can estimate the start time and the finish time for every
event of the project in its WBS (work Breakdown Structure).

The analysis charts can be used to monitor, control, track and execute a project. Typical
PERT/ CPM exercise of a project are worked out at the end of this sub unit- 9.2. The
various steps involved in monitoring and controlling a project from start to end are as
follows-

1. Perlirninary work- the team members understand the project plans, project stage
schedule, progress controls, tracking the duels. Summary of the members have to
understand the tolerances in any change and maintain a change control log. They must
realize the need and importance of quality for which they have to follow strictly quality
agendas. They must understand the stage status reposes, stage and reports, stage end
approval reports.

2. Project progress- The members must keep a track of the project progress and
communication the same to other related members of the project. They must monitor and
control project progress, through the use of regular check points, quality charts. Statistical
tables, control the quality factors which are likely to deviate from expected values as any
deviation may result in change to the stage she duel

3. Stage control- The manager must establish a project check paint cycle. For this suitable
stage version control procedure may be followed.

4. Resources- Plan the resources required for various stage of the project. Brief both the
project team and the key resources about the objectives of every stage, planned activities,
products, organization. Metrics and project controls.
5. Quality control- This is very important in any project: Quality control is possible if the
project member’s follow-

Schedule quality review, Agenda for quality review, conduct quality review and follow
up.

6. Progress control- It is the main part at assessment-

Progress control assesses- monitor performance, update schedule, update casts, Re-plan
stage schedule, conduct team status review etc.

Along with we create status report, create flash reports, project status reports etc.

7. Approvals - lastly, project sage reviews and the decisions taken and actions planned
need to be approved by the top management. The goals of such review are to improve
quality by finding defects and to improve productivity by finding defects in a cost
effective manner. The group review progress includes several stage like planning,
preparation and overview, a group review meeting and rework recommendation and
follow-up.

Q5. Explain the necessity and objectives of SCM?

Ans.: SCM is the abbreviation of supply chain Management. It is considered by many

express worldwide as the ultimate solution towards efficient enterprise management.

Now, we explain the necessity and objectives of SCM-

SCM is required by and enterprise as a tow to enhance management effectiveness with a

following organizational objective:

Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP, Accounting.

Software and Documentation like financial reports statements ISO 9000 Documents etc.

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communication systems,

documentation system and secure, Design R&D systems etc.

Better utilization of resources- men, material, equipment and money.

Optimization of money flow cycle within the organization as well as to and from external
agencies.

Enhancement of value of products, operations and services and consequently,

enhancements of profitability.

Enhancement of satisfaction level of customer and clients, supporting institutions,

statutory control agencies, supporting institutions, statutory control agencies, suppliers
and vendors, employees and executives.

Enhancement of flexibility in the organization to help in easy implementation of schemes

involving modernization, expansion and divestment, merges and acquisitions.
Enhancement of coverage and accuracy of management information systems.
With the objectives of SCM its implementation are required. Implementation is in the
form of various functional blocks of an organization interpenetrated through which a
smooth flow of the product development is possible.

A relatively new SCM option involves web based software with a browser interface.
Several electronic marketplaces for buying and selling goods and materials.

Q6. What are the steps involved in SCM implementation?

Ans.: There is many steps which involved in SCM implementation are- Business
Process, sales and marketing. Logistics, costing, demand planning, trade- off analysis,
environmental requirement, process stability, integrated supply, supplier management,
product design, suppliers, customers, material specifications, etc.

Some important aspect of SCM-

The level of competition existing in the market and the impact of competitive forces on
the product development.

Designing and working on a strategic logic for better growth through value invention.
Working out new value curve in the product development along with necessary break
point.

Using it to analyses markets and the economies in product design. Tine, customer, quality
of product and the concept of survival of fittest.

Steps of SCM principals:

Group customer by need: Effective SCM groups, customer by distinct service meet that
particular segment.

Customize the logistics networks: In designing their logistics network, companies need to
focus on the service requirement and profit potential of the customer segments identified.
Listen to signals of market demand and plan accordingly- sales and operations planners
must monitor the entire supply chain to detect early warning signals of changing
customer demand and needs.

Differentiate the product closer to the customer-companies today no longer can afford to
stock pile inventory to compensate for possible forecasting errors, instead, they need to
postpone product differentiation in the manufacturing. Process closer to actual customer
demand.

Strategically manage the source of supply-by working closely with their key suppliers to
reduce the overall casts of owning materials and services; SCM maximizes profit margins
both for themselves, and their supplies.

Develop a supply chain wide technology strategy- as one of the cornerstones of

successful SCM information technology must be able to support multiple levels of
decision making.

Adopt channel spanning performance measures- Excellent supply performance

measurement systems do more than just monitor internal functions. They apply
performance criteria that embrace bathe service and financial metrics, including as such
as each accounts true profitability
 Subject code: MB0028
Set 2

Q1. Explain how material flow information helps in work centre decision. Consider
the example of a shopping centre to illustrate your answer.

Ans.: The decision which involves during uses of material flow information has below-

A work center is a production facility comprising of one or more machines and one or
more workmen considered as a single unit for purposes of estimation of capacity. This
unit may have a single operation or a number of them conducted on the input items. In
the pipeline of production, each work center’s contribution is vital as materials are
scheduled, routed and loads to be sent to it.

In most organization, they are even considered as cash centers. Location trust means
relative position of different centers so as to minimize the movement of materials, meet
technological sequences, to reduce congestion, maximize throughput, improve part
tracking ability and avoid repetitive movements. In addition another consideration is to
provide for expansion of production.

Each work center receives information along with material that enter it the material also
leaves the word center with information. The route sheet contains information about the
material, process, quantities, and inspection procedures. Etc. the drawings or instructions
tell the condition of the malarial of entry and the required condition at exit.

In this sense every operation consists of material transformation occurring on the basis of
information. Activities conducted are on the basis of information that flows with material.
Different locations have to accommodate the constraints of the basis of darning
maximums benefit of the information that is available. Basically, each location is
determined on the basis of from and to: where does it receive material goes. Some centers
have to close as a matter of necessity, some need not to be and some need to be as for
away as possible.

This aspect has been given a rating scale in terms of alphabets as under:

Absolutely necessary to be close

Essential to be close
Ordinary closeness
Ordinary closeness
Unimportant that they are close or not
Not desirable that the centers are close

It can be seen that this is only a guide for Indian location as the work centers as there will
many competing factors that have to be accommodated.
Q2. What are the reasons for failure of a project? Give suitable examples.

Ans.: Before knowing the reasons of failure we have to know about project.
Project is a set of activities which are networked in order and aimed towards achieving
goal of a project.

Now, the reasons are project failure:

Incidence of Project failure

Projects being initiated of random at all levels
Project objective not in line with business objective
Project management not observed
Project manager with no prior experience in the related project
Non- dedicated team
Lack of complete support from clients

Factors contributing to project success not emphasized:

Project objective in alignment with business objective

Working within the framework of project management methodology
Effective scoping planning, estimation, execution, controls and reviews, project
bottlenecks
Communication and managing expectations effectively with clients, team merits and
stake holders
Prior expectance of PM in a similar project

Overview of information and communication Technologies (ICT) project:

Involve information and communication technologies such as the word wide web, e-mail,
fiber-optics satellites
Enable societies to produce, access, adapt and apply information in greater amount, more
rapidly and at reduce casts
Offer enormous opportunities for enhancing business and economic viability
Common problems encountered during projects
No prioritization of project activity from an organizational position
One or more of the stages in the project mishandled
Less qualified non-dedicated manpower
Absence of smooth flow of communication between the involved parties

These basic reasons lead a project to failures. In the project failures business management
and project management is directly involved. From the management point of view it is
basic things to care above topics to success of a project. Project is the core business of a
company. In the MBA assignment its role has been defined from the management
prospective.
Q3. Explain the various phases in project management life cycle?

Ans.: This is the initial phase of any project. In this phase information is collected from
the customer pertaining to the project and the requirements are analyzed. The entire
project has to be planned and it should be done in a strategic manner. The project
manager conducts the analysis of the problem and submits a detailed report to the top
project justification, details on what the problem is a method of solving the problem, list
of the objectives to be achieved, project budget and the success rate of completing the
project. The report must also contain information and the project feasibility, and the risks
involved in the project.

Project management life cycle is the integrated part of management. It is attach with
project responsibility or failure of a project. For the MBA assignments it is the most
valuable chapter in production management.

The important tasks of this phase are as follows:

Specification Requirements Analysis (SRA): It has to be conducted to determine the

essential requirements of a project in order to achieve the target.

Feasibility study: To analyze whether the project is technically, economically and

practically feasible to be undertaken.

Trade off analysis: To understand and examine the various alternatives which could be
considered.

Estimation: To estimate the project cost, effort requires for the project and functionality
of various process in the project.

System design: Choose a general design that can fusil the requirements.

Project evolution: Evaluate the project in terms of expected profit, cost and risks involved
marketing phase.

A project proposal is prepared by a group of people including the project manager. This
proposal has to contain the strategies adopted to market the product to the customers.

Design phase: This phase involves the study of inputs and outputs of the various project
stages.

Execution phase: In this phase the project manager and the teams members work on the
project objectives as per the plan. At every stage during the execution reports are
prepared.

Control – Inspecting, Testing and Delivery phase during this phase. The project team
works under the guidance of the project manager. The project manager has to ensure that
the team working under his, implements the project designs accurately, the project
manager has to ensure ways of managing the customer, perform quality control work.

Closure and post completion analysis phase upon satisfactory completion and delivery of
the intended product or service the staff performance has to be evaluated. Document the
lessons from the project. Prepare the reports on project feedback analysis followed by the
project execution report.

The phase which involve in the above are:

The preparation stage involves the preparation and approval of project outline, project
plan and project budget.

The next stage involves selecting and briefing the project team about the proposals
followed by discussions on the roles and responsibility of the project member and the
organization.

The project management life cycle:

A Life cycle of a project consists of the following:

1)Understanding the scope of the project

2)Establishing objectives of the project

3)Formulating and planning various activities

4)Project execution and

5)Monitor and control the project resources

Q4. What are the seven principles of SCM?

Ans.: Seven principles of SCM are:
 • Group customer by needs- Effective SCM groups, customer by distinct service
needs, regardless of industry and then tailors services to this particular segment.

• Customize the logistic network- In designing their logistics network; companies

need to focus on the service requirement and profit of the customer segments
identified.

• Listen to signals of market demand and plan accordingly- Sales and operations
planners must monitor the entire supply chain to detect early warning signals of
changing customer demand and needs. This demand driven approach leads to
more consistent forecast and optimal resource allocation.

• Differentiate the product closer to the customer- companies today no longer can
afford to stock pile inventory to compensate for possible forecasting errors.
Instead, they need to postpone product differentiation in the manufacturing
process closer to actual consumer demand. This strategy allows the supply chain
to respond quickly and cost effectively to change in customer needs.

• Strategically manage the sources of supply- by working closely with their key
suppliers to reduce the overall costs of owning materials and services; SCM
maximizes profit margins both for themselves and their suppliers.

• Develop a supply chain wide technology strategy- as one of the cornerstones of

successful SCM information technology must be able to support multiple levels of
decision making. It also should afford a clear view and ability to measure the flow
of products, services and information.

• Adopt channel spanning chain performance measures- Excellent supply chain

performance measurement system do more than just monitor internal functions.
They apply performance criteria to every link in the supply chain-criteria that
embrace both service and financial metrics

Q5. Explain what is meant by bullwhip effect and how it could be prevented?
Ans.: An organization will always have ups and downs. It is necessary that the managers
of the organization keep track of the market conditions and analyze the changes. They
must take decisions on the organization to meet the market demands. Failing to do so
may adversely affect the functioning of the organization resulting in lack of coordination
and trust among supply chain members. The changes may effect the information and may
lead to demand amplification in the supply chain. The bullwhip effect is the uncertainty
caused from distorted information flowing up and down the supply chain. This has its
affect on almost all the industries, poses a risk to firms that experience large variations in
demand. And also these firms which are dependent on suppliers, distributors and
retailers.

A bullwhip effect may arises because of-

Increase in the lead time of the project due to increase in variability of demand
Increase in the stock to stock to accommodate the increasing demand arising out of
complicated demands models and forecasting techniques
Reduced service levels in the organization
Inefficient allocation of resources
Increased transportation cast

How to prevent it?

Bullwhip effect may be avoided by one or more of the following measures- Avoid
multiple demand forecasting
Breading the single orders into number of batches of orders

Stabilize the prices avoid the risk involved in overstocking by maintaining a proper stock
Reduce the variability and uncertainty in paint of sale (POS) and shaving information
Reduce the lead time in the stages of the project

Always keep analyzing the past figures and track current and future levels of
requirements

Enhance the operational efficient and outsourcing logistics to capable and efficient
agency

Q6. What do you understand by Line Balancing? What is the importance of order
picking in material handling? Give suitable examples.

Ans.: Production lines have a number of work centers in a particular sequence so that the
material that gets proceed has to move further without encountering any bottlenecks. The
quantities produced the rate of production at each center, the number of operations and
the total production required are factors taken into account.

The purpose of taking place between work centers and minimum inventory gets created.
We use the principles of JIT and lean Manufacturing to achieve these. Linear
programming, Dynamic programming and other mathematical models are used to study
these problems.

In order picking important pants are:

Order picking is a process by which items of products for supply is to be made haves to
be retrieved from specific storage location. It is found to take 60% of labour activities in
the warehouse. Since it is critical to the business to meet customer’s demand
expeditiously and accurately, lot of attention is being given to this aspect of operations. In
the manufacturing arena, we desire to move towards small lot sizes and cycle time
reductions.

Efficient order picking is necessary for being competitive. In the supply chain Storage,
retrieval and delivery do not add value to the product, but are necessary.

Material Handling:

The purpose is to take the job through the technological steps in which the processing
needs to be done for the transformation that is to be effected on the material that is
getting processed. The major concerns are about the quantities that need to be processed
and the time that the different operations required. In case the product has to enter
assembly, along with other parts that are being manufactured parallel, will all the
required parts arrive at that point at the same time. Some components may be outsourced.
To handle different parts, we have material handling equipments such as cranes lifting
forks, trucks etc.

The problem for the manager is the limited supply of these equipments and the need to
optimize utilization of the equipment and see that the manufacturing line has smooth
flow. Our concern is to reduced inventory, minimums movement and timely availability.