Neelam Aswal MBA Sem-2 POM

Master of Business Administration - MBA Semester II

MB0044 Production & Operations Management - 4 Credits (Book ID: B1133) Assignment Set- 1 Q1. Explain in brief the origins of Just In Time. Explain the different types of wastes that can be eliminated using JIT.
JIT or Lean Manufacturing as its more commonly known today was perfected by Toyota, but has its roots based in the American concept of mass production. The first well-known instance of mass-production was when Eli Whitney received a contract from the U.S. Army to manufacture muskets. (Strategos, Inc.) Whitney was to build 10000 muskets in two years time. At the time,he had no factory, no workers and after taking a financial beating on the invention of the cotton gin, he had very little money. But out of this arose the beginnings of the American Industrial Revolution. He created machinery that would make the work of creating the muskets more suitable for unskilled labor as opposed to needing specially trained gunsmiths. (The Eli Whitney Museum & Workshop) The parts would be interchangeable, making it easier to repair the weapons in the field. It took ten years for Whitney to fill the order for the Army, but by doing so proved that the concept of mass-production would change the face of manufacturing forever. Just in time were developed to minimize wastage across the organization. If a firm is optimistic aboutthe demand, then that firm increases their planned inventories. On the other hand if the demandis weak when compared to the expectations, then that firms unplanned inventories are high. Thatmeans companies dont keep a lot of excess inventory, then manufacture a product as an ordercomes in. It is management philosophy of continuous and forced problem solving. The seven types of wastes to be eliminated according to JIT are : Waste from Overproduction Inventory Waste Waste of waiting/idle time Waste of Motion Effort Processing Waste Waste from product Defects

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1 Waste from Overproduction. Over production is to manufacture products before it is actually needed. If the demand for thatproduct decreases, the extra parts or products produced may not be useful or needed. Also overproduction results in high storage costs and is also difficult to detect defects. So, over productionsis considered a waste. 2 Inventory Waste. Excess procurement or production builds up stock of materials which are not immediately use, this locking space and fund carrying heavy cost. 3 Waste of waiting/idle time Waste of time happen when goods are not moving or being processed. The operator, the machine or the part will either be not working or be worked upon. The duration is can be said to be unproductive and may create more serious consequences. 4. Waste of Motion Any unnecessary movement is a waste of energy; it causes blockages, disrupting movements and delaying the flow of other items creating delays. 5. Effort: The people, who work, do not make a study as to how the products on which they are making are utilized and do not realize the purpose for which they are made. This lack of education will lead to waste of resources. Finally, they end up in shortage of resources when needed. 7. Processing Waste. Some steps like unnecessary processing or production do not add value to the final output. As a results, it is waste of all the inputs that go into the process. 6. Waste from product Defects . The defective products leads to a tremendous loss to the company. This is because they use up the same equipments, workmen and the time that would be used to make good products. Thus defective products use up resources and result in losses.

Neelam Aswal MBA Sem-2 POM Q2.Bring out the historical background of Value Engineering. Elucidate three companies which have incorporated VE with brief explanation. Answer:Value of 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, 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. It is also questions whether what is being used is the most appropriate and economical. This applies to all aspects of the products.

1. 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. Specialized dealers could provide an equally good material at a lesser price. Initially, the practioners were the people in charge of purchasing who tried to locate substitute material which would be equally good, if not better, at a lower price.This the first and basic approach to value engineering. A the concept percolated to the manufacturing departments, engineers applied the same principles and found that, they could use alternate materials, which were cheaper giving the same performance. It was also fund that dimensions and tolerance could be altered without affecting the performance of the part or the product. The investigations took them on the path of eliminating some operations. The focus was on the value of each bit materials, each operation. This approach led to the design stage. 2. ASHOK LEYLAND. In implementation of VA, Ashok Leyland changed gear material from phosphor bronze to a less expensive cast iron and eliminated frequent field complaint of gear seizure in trucks.

Neelam Aswal MBA Sem-2 POM 3. TVS. T.V. Sundaram Lyenger (TVS) Limited is one of the largest automobile distribution companies inIndia. During the mid 1940 to 1960s, TVS based in Madurai was ranked as the best bus transportation system in India. It could manage to run the fleets for about 96% of the time.

TVS used the VE approach to restore the mobility of buses that had broken down. They stocked their garage with some critical assemblies of a bus. Whenever, a part or an assembly failed of a bus, they replaced it immediately with a new one, thus restoring mobility within a couple of hours. When compared to the traditional method, this approach has gained much more benefits to the company, it helped to save time, reduce cost, efficient, quicker, and competitive. 4. MODI XEROX. Modi Xerox designed the VE-d low cost copier 1025 ST, which uses a single tray. The advantage of new design is that it is easy to operate and the cost is also very low. 5. TITAN Titan watches introduced new designs adopting a strategy of innovation. Value engineering uses rational logic (a unique "how" - "why" questioning technique) and the analysis of function to identify relationships that increase value. It is considered a quantitative method similar to the scientific method, which focuses on hypothesis-conclusion approaches to test relationships, and operations research, which uses model building to identify predictive relationships. Value engineering is also referred to as "value management" or "value methodology" (VM), and" value analysis" (VA)VE is above all a structured problem solving process based on functionanalysisunderstanding something with such clarity that it can be described in two words, the active verb and measurable noun abridgement. For example, the function of a pencil is to "make marks". This then facilitates considering what else can make marks. From a spray can, lipstick, a diamond on glass to a stick in the sand, one can then clearly decide upon which alternative solution is most appropriate.

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Q3. Explain different types of Quantitative models. Differentiate between work study and motion study.
Answer:There are different quantitative models 1 Linear Programming: Linear programming technique is often used for optimising a given objective like: profit or revenue maximisation, or cost outgo minimisation. Distribution of the resources is the critical issue, when there are limited resources and they have to meet competing demands. 2 Transportation Model Transportation model is concerned with goods from manufacturing centres or warehouses which have to be supplied to depots or retail outlets. The demand and supply position of the places where they are required or produced and the cost of transportation are considered in the model. We use this model to economise. 3 Assignment Model Allocating jobs or persons to machines, awarding different projects to contractors is done so that maximum returns occur or less expense are incurred. Hence, calls for the use of this model. 4Inventory 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 storageWe have different models which give solutions to optimisation depending upon the probabilities of patterns of consumption and supply. 5. Waiting Line Models: Queues are formed when the rate of service is at a variance with the rate of arrival. They are formed when the rate of production is less at particular points compared to the previous ones. Sometimes we see multiple service points and a single queue are formed for feeding them. Number of items which includes the following is studied with some special techniques. People to be serviced Rate of service Type of queue discipline that is intended to be followed Policy of priority Tolerable amounts of waiting Others 6 Simulation Models: Simulation models are used when we will not be able to formulate mathematical models. So, we develop a model which resembles a real life situation. Based on this pattern, we predict and plan our procurement, production, delivery and other actions. 7. PERT (Project Evaluation and Review Technique) and CPM (Critical Path Method) Models:

Neelam Aswal MBA Sem-2 POM When projects are undertaken with a number of activities, some happens in sequence, with gaps of weeks or months and some happens simultaneously. It is important to estimate the time required for completion of the project. A lot of coordination is needed while supplying the resources. It is also equally important to identify the bottlenecks and smoothen resources so that time schedules are maintained. Delayed completion may entail penalties. In this model, we adopt special methods to make the system efficient.

Workstudy We say that work study is being conducted when analysis of work methods is conducted during the period when a job is done on a machine or equipment. The study helps in designing the optimum work method and standardisation of the work method.This study enables the methods engineer to search for better methods for higher utilisation of man and Machine and accomplishment of higher productivity. The study gives an opportunity to the workmen to learn the process of study thus making them able to offer suggestions for improved methods. This encourages workmen participation and they can be permitted to make changes and report the advantages that can be derived from those. This course is in alignment with the principle of continuous improvement and helps the organisation in the long run. Reward systems may be implemented for recognising contributions from the workmen.Work study comprises of work measurement and method study. Work measurement focuses on the time element of work, while method study focuses on the methods deployed and development of better methods. Motion study Motion study focus is on studying the method currently being used and developing a new method of performing the task in a better way. Operation Flow charts, Motion Charts, Flow Process charts, which are the elements of the task, are studied to find the purpose of each activity, the sequence in which they are done, and the effect of these on the work. The study may help in changing some of them and even eliminate some of them to effect improvements.The new method should result in saving of time, reduced motions, and simpler activities.

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Q4. What is Rapid Prototyping? Explain the difference between automated flowline and automated assembly line with examples.
Answer:Prototyping is a process by which a new product is developed in small numbers. Prototyping is helpful to determine the suitability of the materials study the various methods of manufacture determine type of machinery required develop techniques to overcome problems that may be encountered when full scale manufacturing is undertaken

Rapid prototyping uses virtual designs from Computer Aided Design (CAD) or animation modelling which transforms dimensional data to 3-dimensional views. The physical space of the product is amenable to have cross sections made. Cross sections taken at very close positions gives thin layers which enable the generation of a solid model of the designed product. The data that is created helps build a solid model exactly as per the drawings. Any shape can be generated in this method. Some of the other advanced Rapid Prototype Modelling Processes are: Selective Laser Sintering (SLS) Fused Deposition Modelling (FDM) Laminated Object Manufacture (LOM) Electronic Beam Melting (EBM)

Since, the basis data about the product is already available in CAD; the above processes can produce models in a matter of a few days. Conventional machines like lathes, milling machines, grinding machines, Electro Discharge Machining (EDM) also help in the production of prototypes. Due to their advantages, Rapid Prototyping is being increasingly used. A bi-monthly magazine -TCT Magazine -calling the Rapid Prototyping as Time Compressing Techniques is dedicated to the publication of latest developments in this field as researched and developed by practitioners around the world. 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, we have an automated flow line. After completing an operation on a machine, the semi-finished parts are moved to the next machine in the sequence determined by the process requirements and a flow line is established. The parts at various stages from rawmaterial to ready for fitment or assembly are processed continuously to attain there quired shapes or acquire special properties to enable them to perform desired functions. The materials need to be moved, held, rotated, lifted, and positioned for completing different operations. Sometimes, a few of the operations can be done on single machine with a number of attachments. They are moved further to othermachines for performing further operations. Human intervention may be needed toverify that the operations are taking place according to standards.

Neelam Aswal MBA Sem-2 POM When these can be achieved with the help of automation and the processes are conducted with self regulation, we will have automated flow lines established. The global trends are favouring flexibility in the manufacturing systems. The costsinvolved in changing the set up of automated flow lines are high. So, automated flow lines are considered only when the product is required to be made in high volumes over a relatively long period. 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 change inmovements needed can be achieved by programming the machines. Provisions for extra pallets or tool holders or conveyors are made in the original design to accommodate anticipated changes. The logic to be followed is to find out whether the reduction in cost per piece justifies the costs of designing, manufacturing, and setting up automated flow lines. Group Technology and Cellular Manufacturing along with conventional Product and Process Layouts are still resorted to, as they allow flexibility for the production system. Automated Assembly Lines All equipments needed to make a finished product are laid out in such a way as to follow the sequence in which the parts or sub-assemblies are put together and fitted. Usually, a frame, body, base will be the starting point of an assembly. 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. All parts or sub-assemblies are fitted to enable the product to bein readiness to perform the function it was designed to. This process is called assembly. Methodologies of achieving the final result may vary, 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.

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Q5. Explain Break Even Analysis and Centre of Gravity methods. Explain Product layout and process layout with examples.
Answer:Break-even analysis Every manufacturing company will have three major contributors to cost: 1. Investments made for land, plant and machinery resulting in interest and depreciation 2. Recurring expenses, which are not proportional to the quantity of production 3. Variable costs, which are directly proportional to the quantities produced For our calculations, we combine the first two costs together and call them fixed costs. We call those costs that depend on the quantity of production as variable costs. We compare the total costs for different locations on estimated amounts per annum and select whichever location costs the least. However, we will have to consider the possible variations in production levels during the foreseeable time spans and take a decision. Centre of gravity method Centre of gravity method is used mainly when: Transportation costs, either for distribution of products or collection of materials from different suppliers, is the main criterion Production rates are high The volume and weights of materials that have to be moved are huge Time taken, either to receive material from suppliers or delivery to customers, is critical It is better to locate the facility at such a place, which caters to the different points most optimally. The vital factor is the load, that is, number of items, or the weights that need to be moved from the central location to the existing or demanding points. We use this method when, both distance and load have to be considered for optimality in terms of cost. Product layout Product layout is also called as production lines or assembly lines. They are designed and laid out in such a way that only a few products are capable of being manufactured or assembled. Materials flow through the various facilities. These use special machines to perform specific operations to produce only one product at one time. So, companies should set different set of machines for different products. Workers perform a narrow range of activities to complete the operations on the product as it moves in a flow line. The operation times, the sequence of movements and routing procedures are highly standardised to meet production requirements which are synchronised with many such products to complete finished goods to meet demands. Using special machines and implementing standardisation in operations have many advantages which are listed below: The skill required of the workers is low Supervision is minimal Training needs are small Precautions to be taken are: Constant check on the processes needs to be performed so that quality is assured. Corrective measures have to be implemented immediately to avoid rejections, since, the quantities that get manufactured will be continuous Check for the behavioural attitude of the worker. As jobs are repetitive, workers tend to be bored and lose concentration. This may affect productivity and quality. Process layout

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Q6. Explain Jurans Quality Trilogy and Crosbys absolutes of quality. List out the pillars of Total Productive Maintenance.
Answer:Jurans quality trilogy Juran uses his famous Universal Breakthrough Sequence to implement quality programmes. The universal breakthrough sequences are: Proof of need: There should be a compelling need to make changes. Project identification: Here what is to be changed is identified. Specific projects with timeframes and the resource allocation are decided. Top management commitment: Commitment of the top management is to assign people and fix responsibilities to complete the project Diagnostic journey: Each team will determine whether the problems result from systemic causes or are random or are deliberately caused. Root causes are ascertained with utmost certainty. Remedial action: This is the stage when changes are introduced. Inspection, testing, and validation are also included at this point. Holding on to the gains: The above steps result in beneficiary results. Having records or all actions and consequences will help in further improvements. The actions that result in the benefits derived should be the norm for establishing standards. Juran has categorised cost of quality into four categories: 1. Failure costs - Internal: These are costs of rejections, repairs in terms of materials, labour, machine time and loss of morale. 2. Failure costs External: These are costs of replacement, on-site rework including spare parts and expenses of the personnel, warranty costs and loss of goodwill. 3. Appraisal costs: These are costs of inspection, including maintenance of records, certification, segregation costs, and others. 4. Prevention costs: Prevention cost is the sequence of three sets of activities, Quality Planning, Quality Control, and Quality Improvement, forming the trilogy to achieve Total Quality Management. Jurans argument says that: Quality is the result of good planning considering the needs of both internal and external customers and develops processes to meet them. The processes are also planned to meet them. Quality is built into the system of manufacture, inputs and processes that are on stream like raw material, spare parts, labour, machine maintenance, training, warehousing, inspection procedures, packaging, and others. All these have to follow standards and control exercises to make sure that mistake do not occur often and that if mistakes do occur then they are corrected at the source. Quality improvement measures are essential to keep the quality culture alive. Newer methods will be found, some operations can be eliminated, improved technology available. In short, as experience is gained things can always be done better.

Neelam Aswal MBA Sem-2 POM It is for the management to take the initiative and encourage the employees to be on the lookout for opportunities for improvement.

Crosbys absolutes of quality Like Deming, Crosby also lays emphasis on top management commitment and responsibility for designing the system so that defects are not inevitable. He urged that there be no restriction on spending for achieving quality. In the long run, maintaining quality is more economical than compromising on its achievement. His absolutes can be listed as under: Quality is conformance to requirements, not goodness Prevention, not appraisal, is the path to quality Quality is measured as the price paid for non-conformance and as indices Quality originates in all factions. There are no quality problems. It is the people, designs, and processes that create problems

Crosby also has given 14 points similar to those of Deming. His approach emphasises on measurement of quality, increasing awareness, corrective action, error cause removal and continuously reinforcing the system, so that advantages derived are not lost over time. He opined that the quality management regimen should improve the overall health of the organisation and prescribed a vaccine. The ingredients are: 1) Integrity: Honesty and commitment help in producing everything right first time, every time 2) Communication: Flow of information between departments, suppliers, customers helps in identifying opportunities 3) Systems and operations: These should bring in a quality environment so that nobody is comfortable with anything less than the best Total Productive Maintenance (TPM) Maintenance is a function in any operations system. Maintenance keeps the equipments in good condition. Generally equipments deteriorate because usage causes wear to the parts introducing inaccuracies on the products made on them. When the deterioration produces components which exceed the permitted deviations rendering them unacceptable, maintenance is undertaken to bring back the machine to produce acceptable components. Sometimes the failure is sudden and serious and the equipment stops working. Disruption of production and emergency repair work are costly and schedules are missed causing delays in supplies and consequent losses. These breakdowns occur because the equipment was carrying hidden defects which were not apparent. All these are attended to by the maintenance department. Historical records indicate the probability of failures over different periods thus enabling us to plan to attend to them. With progress in automation, we have costly equipments. We have flow lines and any one machine breaking down causes a series of machines to be idle. So, we have to move towards zero breakdowns like we want to move towards zero defects by implementing TQM tools.TPM puts the responsibility of maintenance where it belongs to and the operator who uses the equipment. It is a companywide activity which involves all the people. The main thrust is Eliminating all break downs. The focus is on the operating personnel because they would know about malfunctioning earlier and more than anybody else. They work on the machine and are aware of the slightest variations that occur and thus should be able to plan to remove the cause before it

Neelam Aswal MBA Sem-2 POM becomes serious. So every planned maintenance activity reduces the probability of a breakdown. Ownership of the operation and machine increases the commitment of the workmen. Autonomy is the starting point for learning and excellence. The worker can suggest better ways of improving quality, productivity, and design. This helps in continuous improvement. Team work and participation improves the quality culture. The principles of 5S -the housekeeping activities which Improve efficiency at workplace is considered a measurable standard to aid the implementation of TPM even in the office rooms.

Neelam Aswal MBA Sem-2 POM

Master of Business Administration - MBA Semester II

MB0044 Production & Operations Management
(Book ID: B1133)

Assignment Set- 2

Q1.Sketch the business process model and define the terms. Differentiate between Explain Logical Process Modelling and Physical Process Modelling.
Answer:LOGICAL PROCESS MODELLING

Logical process modelling is the representation of putting together all the activities of business process in details and making a representation of them. The initial data collected need to be arrange in a logical manner so that, links are made between nodes for making for the workflow smooth. The steps to be followed to make the work smoother are given below: 1. Capture relevant data in detail to be acted upon. 2. Establish controls and limit access to the data during processes execution 3. Determine which task in the process is to be done and also the subsequent task in that process. 4. Make sure that all the relevant data is available for all the tasks. 5. Make the relevant and appropriate data available for that task. 6. Establish a mechanism to indicate acceptance of the results after every task or process. This is to have an assurance that flow is going ahead with accomplishments in the desired path. Some of these activities may occur in a sequential order whereas, some of them run parallel. There may even be circular paths, like re-work loops. Complexities arise when the processes activities are not connected together. Logical processes model consists of only the business activities and shows the connectivity among them. The process model is a representation of the business activities different from the technology dependent ones. Thus, we have a model that is singularly structured only for business activities. Computer programmes are also present in the total system. This allows the

Neelam Aswal MBA Sem-2 POM business oriented executives to be in control of the inputs, processes and outputs. The logical process model improves, control on the access to data. It also indentifies, who is in possession of data at different nodes in the dataflow network that has been structured.

A few of the logical modeling formats are given below. 1. Process Descriptions with task sequences and data addresses. 2. Flow chart with various activities and relationships 3. Flow diagrams 4. Function hierarchies 5. Function dependency diagram Every business activity, when considered as a logical process model, can be represented by a diagram, it can be decomposed and meaningful names can be given to the details. Verb and noun form combinations can be used to describe at each level. Nouns give the name of the activity uniquely and are used for the entire model meaning the same activity. PHYSICAL PROCESS MODELLING Physical process modeling is concerned with the actual design of data base meeting the requirement of the business. Physical modeling deals with the conversion of the logical model into a relation model. Object gets defined at the schema level. The objects here are tables created on the basis of entities and attributes. A database is defined for the business. All the information is put together to make the database software specific. This means that the objects during physical modeling vary on the database software being used. The outcomes are server model diagrams showing tables and relationships with a database. BELOW ARE THE INGREDIENTS OF BUSINESS PROCESS. The ingredients that might be used in a business process can be briefly outlined as shown below. The data which accomplishes the desired business objective. Acquisition, storage, distribution, and control of data which undertakes the process across tasks.Persons, teams, and organizational units which helps to perform and achieve the tasks. Decision which enhances the value of data during the process.

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Q2.Explain project management life cycle and its phases. With an example explain Work Breakdown Structure.
Answer:A life cycle of a project consists of the following steps. Understanding the scope of the project. Establishing objectives of the projects Formulating and planning various activities. Executing the project Monitoring and controlling the project resources. Closing and post completion analysis PHASES OF PROJECT MANAGEMENT LIFE CYLCE. Project management life cycle has six phases: Analysis and evaluation phase. Marketing phase Design phase Execution phase Control-inspecting, testing, and delivery phase Closure and post completion analysis phase.

1-ANALYSIS AND EVALUATION PHASE: Analysis and evaluation phase is the initial phase of any project. In this phase, information is collected from the customer pertaining to the project. From the collected information, the requirements of the project are analyzed. According to the customer requirement, the entire project is planned in a strategic manner. The project manager conducts the analysis of the problem and submits a detailed report to the top management. 2-MARKETING PHASE: A project proposal is prepared by a group of people including the project manager. This proposal has to contain the strategic adopted to market the product to the customer. 3-DESIGN PHASE: Design phase involves the study of inputs and outputs of the various project stages.

Neelam Aswal MBA Sem-2 POM a. Inputs received consist of project feasibility study, preliminary project evaluation details, project proposal, and customer interviews. b. Outputs produced consist of system design specifications, functional specifications of the project, design specifications of the project and project plan. 4-EXECUTION PHASE In execution phase, the project manager and the term members work on the project objectives as per the plan. At every stage during the execution, reports are prepared. 5-Control- inspecting testing and delivery phase: During this phase, the project teams works under the guidance of the project manager. The project manager has to ensure that the team working under him is implementing the project designs accurately. The project has to be tracked or monitored through its cost, manpower, and schedule. The project manager has to ensure ways of managing the customer and marketing the future work, as well as ways to perform quality control work 6-Closure and post completion analysis phase: Upon satisfactory completion and delivery of the intended product or service the staff performance has to be evaluated. The project manager has to document the lessons from the project. Reports on project feedback are to be prepared and analyzed. A project execution report is to be prepared. Let us have a quick recap of what is involved in the above phases c. Analysis and evaluation phase: The preparation stage involves the preparation and approval of project outline, project plan, and project budget. d. Assigning task to the team members: The next stage involves selecting and briefing the project team about the proposals, followed by discussions on the roles and responsibilities of the project member and the organization. e. Feasibility study: The feasibility or research stage establishes whether the project is feasible or not and establishes the risk factors likely to be faced during the course of the project execution and the related key factors to overcome the problem f. Execution phase: A detailed definition and plan for the project and its execution is prepared by the team and coordinated by the project manager.

g. Implementation stage: The implementation stage involves the execution of the project as per the plan, this also involves careful monitoring of the project progress and managing the changes, if any, within the scope of the project framework. closure and post completion analysis phase: The final stage involves satisfactory delivery of the product/service to the customers. Upon completion, a project review is to be conducted by the project manager along with team member, sponsors, and customer. A project review process involves discussions about the progress, performance, hurdles that

Neelam Aswal MBA Sem-2 POM were overcome and problems faced , so that, such instances could be avoided in future projects.

Example No.1

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Example No.2

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Example No.3

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q3.define industries best practices? explain any one popular industry best practice followed by all companies.
Answer:-

A best practice is a technique or methodology that, through experience and research, has proven to reliably lead to a desired result. A commitment to using the best practices in any field is a commitment to using all the knowledge and technology at one's disposal to ensure success. The term is used frequently in the fields of health care, government administration, the education system, project management, hardware and software product development, and elsewhere.

In software development, a best practice is a well-defined method that contributes to a successful step in product development. Throughout the software industry, several best practices are widely followed. Some of the more commonly used are: an iterative development process, requirement management, quality control, and change control.

An iterative (meaning repetitive) development process, which progresses in incremental stages, helps to maintain a focus on manageable tasks and ensures that earlier stages are successful before the later stages are attempted. Requirement management addresses the problem of creeping requirements, which is a situation in which the client requests additional changes to the product that are beyond the scope of what was originally planned. To guard against this common phenomenon, requirement management employs strategies such as documentation of

Neelam Aswal MBA Sem-2 POM requirements, sign-offs, and methodologies such as the use case. Quality control is a strategy that defines objective measures for assessing quality throughout the development process in terms of the product's functionality, reliability, and performance. Change control is a strategy that seeks to closely monitor changes throughout the iterative process to ensure that records are intact for changes that have been made and that unacceptable changes are not undertaken.

A best practice tends to spread throughout a field or industry after a success has been demonstrated. However, it is often noted that demonstrated best practices can be slow to spread, even within an organization. According to the American Productivity & Quality Center, the three main barriers to adoption of a best practice are a lack of knowledge about current best practices, a lack of motivation to make changes involved in their adoption, and a lack of knowledge and skills required to do so. Best practices for software industries:

1.Development process - It is important to choose the appropriate development life cycle process to the project at hand because all other activities are derived from the process. For most modern software development projects, some kind of spiral-based methodology is used over a waterfall process. There are several choices, including the Rational Unified Process (RUP), IBM Global Services Method, and extreme Programming (XP). Having a process is better than not having one at all, and in many cases it is less important on what process is used than how well it is executed. The commonly used methodologies listed above all contain guidance about how to execute the process and templates for artifacts. In addition, the RUP has a series of books that describe the best practices for using RUP although if you do not choose to use RUP, these books still provide an excellent source of best practices. It is also possible to add plug ins to the RUP. .

2. Requirements - Gathering and agreeing on requirements is fundamental to a successful project. This does not necessarily imply that all requirements need to be fixed before any architecture, design, and coding are done, but it is important for the development team to understand what needs to be built. Quality requirements are broken up into two kinds: functional and non-functional. A good way to document functional requirements is using Use Cases. Note that Use Cases are used for non-OO projects. A definitive book on the subject of use cases is by Armour and Miller . Non-functional requirements describe the performance and system characteristics of the application. It is important to gather them because they have a major impact on the application architecture, design, and performance.

Neelam Aswal MBA Sem-2 POM 3. Architecture - Choosing the appropriate architecture for your application is key. Many times IBM is asked to review a project in trouble and we have found that the development team did not apply well-known industry architecture best practices. A good way to avoid this type of problem is to contact IBM. Our consultants can work side by side with your team and ensure that the projects get started on the right track. Tried and true practices are called patterns and they range from the classic Gang of Four patterns, Java patterns , to EJB design patterns . Sun's equivalent is the Core J2EE Patterns catalog . Many projects fail as discussed in the introduction. The study of these failures has given rise to the concept of anti patterns. They are valuable because they provide useful knowledge of what does not work, and why. 4. Design - Even with a good architecture it is still possible to have a bad design. Many applications are either over-designed or under-designed. The two basic principles here are "Keep it Simple" and information hiding. For many projects, it is important to perform ObjectOriented Analysis and Design using UML. There are many books on UML, but we recommend UML User Guide [11] and Applying UML and Patterns [12]. Reuse is one of the great promises of OO, but it is often unrealized because of the additional effort required to create reusable assets. Code reuse is but one form of reuse and there are other kinds of reuse that can provide better productivity gains. 5. WebSphere application design - IBM has extensive knowledge of the best practices and design patterns for the WebSphere product family. Each project is different and our consultants have the experience to help you. There is still a tremendous return on investment (ROI) even if you only use the consultants for a short time because you save the costs later in the project. Our experts have also published a great deal of this wisdom, including considerations for highperformance Web sites and guidelines for autonomic computing. 6. Construction of the code - Construction of the code is a fraction of the total project effort, but it is often the most visible. Other work equally important includes requirements, architecture, analysis, design, and test. In projects with no development process (so-called "code and fix"), these tasks are also happening, but under the guise of programming. A best practice for constructing code includes the daily build and smoke test. Martin Fowler goes one step further and suggests continuous integration that also integrates the concept of unit tests and selftesting code. Note that even though continuous integration and unit tests have gained popularity through XP, you can use these best practices on all types of projects. I recommend using standard frameworks to automate builds and testing, such as Ant and JUnit. 7. Peer reviews - It is important to review other people's work. Experience has shown that problems are eliminated earlier this way and reviews are as effective or even more effective than testing. Any artifact from the development process is reviewed, including plans, requirements, architecture, design, code, and test cases. Karl Wiegers paper on the Seven Deadly Sins of Software Reviews explains the correct ways to perform peer reviews. Peer reviews are helpful in trying to produce software quality at top speed. 8. Testing - Testing is not an afterthought or cutback when the schedule gets tight. It is an integral part of software development that needs to be planned. It is also important that testing is done proactively; meaning that test cases are planned before coding starts, and test cases

Neelam Aswal MBA Sem-2 POM are developed while the application is being designed and coded. There are also a number of testing patterns that have been developed. 9. Performance testing - Testing is usually the last resort to catch application defects. It is labor intensive and usually only catches coding defects. Architecture and design defects may be missed. One method to catch some architectural defects is to simulate load testing on the application before it is deployed and to deal with performance issues before they become problems. 10. Configuration management - Configuration management involves knowing the state of all artifacts that make up your system or project, managing the state of those artifacts, and releasing distinct versions of a system. There is more to configuration management than just source control systems, such as Rational Clear case. 11. Quality and defects management - It is important to establish quality priorities and release criteria for the project so that a plan is constructed to help the team achieve quality software. As the project is coded and tested, the defect arrival and fix rate can help measure the maturity of the code. It is important that a defect tracking system is used that is linked to the source control management system. For example, projects using Rational Clear Case may also use Rational Clear Quest. By using defect tracking, it is possible to gauge when a project is ready to release. 12. Deployment - Deployment is the final stage of releasing an application for users. If you get this far in your project - congratulations! However, there are still things that can go wrong. You need to plan for deployment. 13. System operations and support - Without the operations department, you cannot deploy and support a new application. The support area is a vital factor to respond and resolve user problems. To ease the flow of problems, the support problem database is hooked into the application defect tracking system. 14. Data migration - Most applications are not brand new, but are enhancements or rewrites of existing applications. Data migration from the existing data sources is usually a major project by itself. This is not a project for your junior programmers. It is as important as the new application. Usually the new application has better business rules and expects higher quality data. Improving the quality of data is a complex subject outside the scope of this article. 15. Project management - Project management is key to a successful project. Many of the other best practice areas described in this article are related to project management and a good project manager is already aware of the existence of these best practices. Our recommended bible for project management is Rapid Development by Steve McConnell [14]. Given the number of other checklists and tip sheets for project management, it is surprising how many project managers are not aware of them and do not apply lessons learned from previous projects, such as: "if you fail to plan, you plan to fail." One way to manage a difficult project is through time boxing. 16. Measuring success - You can measure your development process against an industry standard known as the Capability Maturity Model (CMM) from the Software Engineering Institute at Carnegie Mellon University. Most projects are at level 1 (initial). If you implement the best practices described above and the guidelines in the companion article, Guide to Running

Neelam Aswal MBA Sem-2 POM Software Development Projects, then you could be well on the way to achieving a higher maturity level and a successful project.

Q4.Explain PMIS. What is Key Success Factor (KSF), Explain with example.
Answer:PMIS (PROJECT MANAGEMENT INFORMATION SYSTEM) An information system is mainly aimed at providing the management at different levels with information related to the system of the organization. It helps in maintaining discipline in the system. An information system dealing with project management tasks is the project management information system. It helps in decision making in arriving at optimum allocation of resources. The information system is based on a database of the organization. A project management information system also holds schedule, scope changes, risk assessment and actual results. The information is communicated to managers at different levels of the organization depending upon the need. Let us find how a project management information system is used by different stakeholders.

WHO NEEDS INFORMATION AND WHY?

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Upper managers To know information on all project regarding progress, problem, resource usage, costs and project goals. This information helps them take decisions on the projects. They should review the projects at each milestone and arrive at appropriate decision.

Project manager and department managers

To see each project schedule, priority and use of resources to determine the most efficient use across the organization.

Project team members

To see schedule, task lists and specification so that they know what needs to be done next.

The fours majors aspects of a PMIS are: 1. Providing information to the major stakeholder. 2. Assisting the team members, stakeholders, managers with necessary information and summary of the information shared to the higher level managers. 3. Assisting the manager in doing what if analysis about project staffing, proposed staffing changes and total allocation of resources. 4. Helping organizational learning by helping the members of the organizations lean about project management. Usually, the team members, and not the systems administrators of the company, develop a good PMIS. Organisations tend to allocate such responsibility by rotation among members with a well designed and structured data entry and analytical format. DIFFERENT BETWEEN KEY SUCCESS FACTORS (KSF) AND KNOWLEDGE (K) FACTOR
Key success factors (KSF) The KSF should be evolved based on a basic Knowledge (k) factor Knowledge is the most powerful mover of the wheels of

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consensus document (BCD) KSF will also provide an input to effective exit strategy (EES) progress Knowledge (k) factor is an index of the extent to which one can manager today with yesterdays knowledge content and also the extent to which todays knowledge will be used tomorrow. K factor would render the development process more productive. The k factor of course, undergoes correction through obsolescence, since changes are now phenomenal.

Broad level of KSF should be available at the conceptual stage and should be firmed up and detailed out during the planning stage. The easiest way would be for the team to evaluate each step for chances of success on a scale of ten. KSF should be available to the management, duly approved by the project manager before execution and control stages.

Leaders should recognize the knowledge potential of the younger managers. Seniority is no more an automate scale for knowledge. It is equally important for younger member not suppress their knowledge potential from its application. Here time and cost does not matter, knowledge is to be updated time to time to get better results.

KSF rides normal consideration of time and cost- at the levels encompassing client expectation and management perception-time and cost come into play as subservient to these major goal. In order to provide complete stability to fulfillment of goals, a project manager needs to constantly evaluate the key success factor from time to time.

As age and experience advance wisdom gains, but knowledge should always be updated and utilized. It is the task of every team members to maximize the k factor in all directions.

Example of Key success factor According to TeachMeFinance.com, a turnkey project is "a project in which a builder/developer contracts to construct a completed facility that includes all items necessary for use and occupancy." Unfortunately, many turnkey businesses never capture the interest of the buyers. Whether you're building in brick and mortar or building in computer code, there are several factors critical to the success of your turnkey project. Know the Business Several businesses can be set up as turnkey businesses, from food service to copy management to telemarketing and sales. Whichever you decide, it is important to have an intimate knowledge of the business you are building. One key factor in a successful turnkey business is being able to anticipate the needs and desires of the potential owners before they are brought on board. A salesman, for example, looking to purchase a turnkey sales business will need an office as a base of operations; but since so much of the sales process is done through phones, computers and other electronic devices, the turnkey developer may want to

Neelam Aswal MBA Sem-2 POM include additional power outlets in the construction of the building, or desks with onboard power strips and surge protectors. These small additions can make a turnkey project a success. Know the Area Internet businesses often have nationwide access to clientele, but brick-and-mortar turnkey operations sometimes run into trouble in areas poorly suited to the service they offer. For example, an outdoor food service stand opening in Wilkes-Barre, Pennsylvania, will not do as much business (at least during the winter months) as one opening in an Orlando, Florida, theme park. Knowing the area where you are constructing your turnkey business includes knowing the weather conditions, the dominant demographic, the current popularity and number of businesses like the one you are creating and the average income of the public. Planning a turnkey business that uses these factors to its advantage will make the business more readily sellable. Make Connections Turnkey businesses are designed to be ready to operate as soon as the buyer takes ownership. Still, once they are sold, many businesses of this type run into problems when it comes to resupplying, logistics and advertising. Because of this, many buyers are wary of turnkey operations. One way to quell any "down the road" fears is to have this part of the infrastructure accounted for. Make contact with businesses which help advertise businesses, ship products, supply copy paper and any other stock the owner might require. Obtain discounts from as many as possible Example of Knowledge (k) factor ABSTRACT Most organisations are aware that in todays highly competitive environment managing effectively their knowledge is the only way to achieve a sustainable competitive advantage. One of the primary areas to which knowledge management can be applied is the field of project management. An increasing number of business sectors are adopting a project approach to carry out a range of essential activities where valuable knowledge is gained. Knowledge from projects is an important resource for further projects, because projects solve innovative and interdisciplinary tasks. However, the majority of organisations do not manage the information gained through past projects. Failure to transfer knowledge from past to future projects leads to wasted activity and unnecessary expenses by reinventing the wheel. Therefore, knowledge management is a critical success factor for many projects. The purpose of this Management Report is to approach knowledge management from the perspective of project management. The main objective is to define how knowledge management can be enhanced within a project by analysing suitable tools and relevant theories. The research is based on the high-speed train project XY of the company XXX. This project is an important milestone for XXX to improve its market position in Spain. The

Neelam Aswal MBA Sem-2 POM knowledge gained through the XY project will be the key factor for the success of the further high-speed train projects. The main finding of the case study highlights that there is a lack of formal knowledge management activities at the project. The project team focuses mainly on personal interaction for transferring knowledge and information technology is not used to its full potential. A hybrid approach to knowledge management for project environments is suggested, taking into account technical as well as human-specific aspects. The main recommendation is to determine a knowledge management strategy, which preferably focuses on transferring tacit knowledge and gives information technology a support function. Other areas of improvement are creating an open and constructive project culture, including knowledge initiatives in reward systems and fostering documented project review sessions. Finally, general conclusions are provided to answer the main research question of this management report.

Q5.Explain the seven principles of supply chain management. Take an example of any product in the market and explain Bullwhip effect.
Answer:Seven principles of SCM are:

Neelam Aswal MBA Sem-2 POM 1. Group customer by needs: Effective SCM groups customers by distinct service needs, regardless of industry and then tailors services to those particular segments. 2. Customize the logistics networks: In designing their logistic network, companies need to focus on the service requirement and profit potential of the customer segments identified. 3. 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 customers demand and needs. This demand driven approach leads to more consistent forecast and optimal resource allocation. 4. Differentiate the product closer to the customer: companies today no longer can afford to stockpile 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 changes in customer needs. 5. 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. 6. 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 decisions making. It also should afford a clear view and ability to measure the flow of products, services and information. 7. Adopt channel spanning performance measures: Excellent supply chain performance measurement systems do more than just monitor internal functions. They apply performance criteria to every link in the supply chain-criteria that both service and financial metrics. BULLWHIP EFFECT IN SCM An organization will always have up 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 resources and make necessary changes within the organization to meet the market demands. Failing to do so may results in wild swings in the orders. This may adversely affect the functioning of the organization resulting in lack of coordination and trust among supply chain members. The changes may affect the information and may led 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 those firm which are dependent on suppliers, distributors and retailers. A bullwhip effect may arise because of: Increase in the lead time of the project due to increase in variability ofdemand

Neelam Aswal MBA Sem-2 POM Increase in the stocks to accommodate the increase demand arising out of complicated demand models and forecasting techniques. Reduced service levels in the organization. Inefficient allocation of resources. Increased transportation cost. How to prevent it? Bullwhip effect may be avoided by one or more of the following measures: Avoid multiple demand forecasting. reaking the single order 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 point of sale (POS) and sharing information educe the lead time in the stages of the project Always keep analyzing the past figures and track current and future levels of requirement. Enhance the operational efficiency and outsourcing logistics to a capable and efficient agency Example of one product the effect Bullwhip theory. Beer Game The beer game was developed at MIT by the Systems Dynamic Group in the 1960s. The game involves a simple production/distribution system for a single brand of beer. There are three players in the game including a retailer, a wholesaler, and a marketing director at the brewery. Each player's goal is to maximize profit. A truck driver delivers beer once each week to the retailer. Then the retailer places an order with the trucker who returns the order to the wholesaler. There's a four week lag between ordering and receiving the beer. The retailer and wholesaler do not communicate directly. The retailer sells hundreds of productsand the wholesaler distributes many products to a large number of customers.

The following represents the results of a typical beer game:-

Neelam Aswal MBA Sem-2 POM 3.1 The Retailer Week 1: Lover's Beer is not very popular but the retailer sells four cases per week on average. Because the lead time is four weeks, the retailer attempts to keep twelve cases in the store by ordering four cases each Monday when the trucker makes a delivery. Week 2: The retailer's sales of Lover's beer doubles to eight cases, so on Monday, he orders 8cases. Week 3: The retailer sells 8 cases. The trucker delivers four cases. To be safe, the retailer decides to order 12 cases of Lover's beer. Week 4: The retailer learns from some of his younger customers that a music video appearing on TV shows a group singing "I'll take on last sip of Lover's beer and run into the sun." The retailer assumes that this explains the increased demand for the product. The trucker delivers 5 cases. he retailer is nearly sold out, so he orders 16 cases. Week 5: The retailer sells the last case, but receives 7 cases. All 7 cases are sold by the end of the week. So again on Monday the retailer orders 16 cases. Week 6: Customers are looking for Lover's beer. Some put their names on a list to be called when the beer comes in. The trucker delivers only 6 cases and all are sold by the weekend. The retailer orders another 16 cases. Week 7: The trucker delivers 7 cases. The retailer is frustrated, but orders another 16 cases. Week 8: The trucker delivers 5 cases and tells the retailer the beer is backlogged. The retailer is really getting irritated with the wholesaler, but orders 24 cases. 3.2 The Wholesaler The wholesaler distributes many brands of beer to a large number of retailers, but he is the only distributor of Lover's beer. The wholesaler orders 4 truckloads from the brewery truck driver each week and receives the beer after a 4 week lag. The wholesaler's policy is to keep 12 truckloads in inventory on a continuous basis. Week 6: By week 6 the wholesaler is out of Lover's beer and responds by ordering 30 truckloads from the brewery. Week 8: By the 8th week most stores are ordering 3 or 4 times more Lovers' beer than their regular amounts. Week 9: The wholesaler orders more Lover's beer, but gets only 6 truckloads. Week 10: Only 8 truckloads are delivered, so the wholesaler orders 40. Week 11: Only 12 truckloads are received, and there are 77 truckloads in backlog, so the wholesaler orders 40 more truckloads.

Neelam Aswal MBA Sem-2 POM Week 12: The wholesaler orders 60 more truckloads of Lover's beer. It appears that the beer is becoming more popular from week to week. Week 13: There is still a huge backlog. Weeks 14-15: The wholesaler receives larger shipments from the brewery, but orders from retailers begin to drop off. Week 16: The trucker delivers 55 truckloads from the brewery, but the wholesaler gets zero orders from retailers. So he stops ordering from the brewery. Week 17: The wholesaler receives another 60 truckloads. Retailers order zero. The wholesaler orders zero. The brewery keeps sending beer. 3.3 The Brewery The brewery is small but has a reputation for producing high quality beer. Lover's beer is only one of several products produced at the brewery. Week 6: New orders come in for 40 gross. It takes two weeks to brew the beer. Week 14: Orders continue to come in and the brewery has not been able to catch up on the backlogged orders. The marketing manager begins to wonder how much bonus he will get for Week 16: The brewery catches up on the backlog, but orders begin to drop off. Week 18: By week 18 there are no new orders for Lover's beer. Week 19: The brewery has 100 gross of Lover's beer in stock, but no orders. So the brewery stops producing Lover's beer. Weeks 20-23. No orders. At this point all the players blame each other for the excess inventory. Conversations with wholesale and retailer reveal an inventory of 93 cases at the retailer and 220 truckloads at the wholesaler. The marketing manager figures it will take the wholesaler a year to sell the Lover's beer he has in stock. The retailers must be the problem. The retailer explains that demand increased from 4 cases per week to 8 cases. The wholesaler and marketing manager think demand mushroomed after that, and then fell off, but the retailer explains that didn't happen. Demand stayed at 8 cases per week. Since he didn't get the beer he ordered, he kept ordering more in an attempt to keep up with the demand. The marketing manager plans his resignation. 3.4 Lessons from the Beer Game 1. The structure of a system influences behavior. Systems cause their own problems, not external forces or individual errors.

Neelam Aswal MBA Sem-2 POM 2. Human systems include the way in which people make decisions. 3. People tend to focus on their own decisions and ignore how these decisions affect others. 3.5 Lessons Related to the Learning Disabilities 1. People do not understand how their actions affect others. 2. So they tend to blame each other for problems. 3. Becoming proactive causes more problems. 4. The problems build gradually, so people don't realize there is a problem until its too late. 5. People don't learn from their experience because the effects of their actions occur somewhere else in the system.

Stock variability amplification in a supply chain due to Bullwhip Effect

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Q6.Time taken by three machines on five jobs in a factory is tabulated below in table below. Find out the optimal sequence to be followed to minimise the idle time taken by the jobs on the machines.

Job

Machine (M1) 6 4 5 3 4

Machine (M2) 8 5 5 4 3

Machine (M3) 7 3 7 6 4

A B C D E

Answer:Consider M1 and M3 Job Machin e 1 (M1) A B C D 6 4 5 3 Machin e 3 (M3) 7 3 7 6

Neelam Aswal MBA Sem-2 POM E 4 4

JOB = D E C A B