Name SB Srivastava

Roll No. 511017032

Program MBA
Subject Production and
Operation Management
[Set 1]
Code MB00
Learning Karrox Technologies
Centre (Andheri Centre,
Mumbai.
Centre Code: 02974).
 PRODUCTION AND OPERATION MANAGEMENT

1. Explain the various automated system for transform of materials in the production
plant? Illustrate your answer by considering on example of an automobile showroom.

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.
2. State the important consideration for locating an automobile plant? Collect
information on layout planning of an automobile plant from various services and
furnish the same.

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

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

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. Preliminary work- the team members understand the project plans, project stage schedule,
progress controls, tracking the dules. 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.
5. Explain the necessity and objectives a SCM?

Answer. 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.
6 - What are the steps involves in SCM implementation?

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 instinct service needs those
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.
Name SB Srivastava
Roll No. 511017032
Program MBA
Subject Production and
Operation Management
[Set 2]
Code MB00
Learning Karrox Technologies
Centre (Andheri Centre,
Mumbai.
Centre Code: 02974).
 PRODUCTION AND OPERATION MANAGEMENT

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

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.
2. What are the reasons for failure of a project? Give suitable examples.

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
3. Explain the various phases in project management life cycle?

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.

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:

Understanding the scope of the project

Establishing objectives of the project

Formulating and planning various activities

Project execution and

Monitor and control the project resources

4. What are the seven principles of SCM?

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.
5. Explain Bullwhip effect and how it could be prevented ?

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

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