MB0028 - P.Srinath - Completely Solved

8/9/2019 MB0028 - P.Srinath - Completely Solved

1/17

MB0028: Production &Operations Management[Assignment SET1 & SET2]

Name : P. Srinath

SMDUE ID : 520923307

Center : Mehbub College Campus, SecunderabadSubject Code : MB0028

Subject : Production & Operations Management


2/17

ASSIGNMENT MBA SEM II Subject Code:

MB0028 SET 1

1. Explain the various automated systems for transfer of materials inthe production plant? Illustrate your answer by considering anexample of an automobile showroom.

Basically, automation system comes to reduce labour power and timein the production. Here we can see the evolution systems with someexamples. The goods requited by society were produces in small quantitiesby craftsman who would know the need of the community and producedthem by their own hands with simple tools. The apprentices or by anothercraftsman, who would make them to meet the requests made.

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

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

Automation systems cost huge sums of money and therefore a deepanalysis of the various factors has to be done. For services, automationusually means labour saving devices in education, long distance learningtechnology helps in supplementing class room instruction. The facilitatinggoods that are used are web site and videos.

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

Some extent of automation can be designed even with customizationi.e. product or service a meant to produce or deliver low volume specific to arequirement. The advantage of automation is it has low variability and will bemore consistent on a repetitive basis.

The machines have sensing and control devices that enable them tooperate automobile. The simplest of them called machine attachmentsreplace human effort. They guide, locate, move and achieve revise positionby means of came, optical sensing. Load sensing mechanisms and activatethe controls to remove human intention.

Robots are higher in the order of automation as they perform a varietyof tasks. They are designed to move movements according to programmerswritten into the computer that inside them.

With the help of automation, inspection of component can be done100% ensures highest quality identification and movement of materials are

2 | P a g e

MB0028 520923307


3/17

helped by bar codes which are read and fed into the system for monitoringquantity, location, movement etc. They help the automated systems to startinformation and provide information for effecting any changes necessary. Tomake effective use of automated machines, we need to have the movementof materials from and to different time as stores, automated, Automatedstorage 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 andquantity of materials needed.

Automated guided vehicle systems- AGVS are pallet trucks and unitload carriers follow embedded guide wires or paint strips to destinations asprogrammed.

In an automobile showroom we can see all the work automatically withlatest machine.

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

To locate an automobile company or plant many thing should be

consider. For an automobile plant automated flaw lines, automated assemblylines, 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 islinked by a transfer system which moves the parts by using handlingmachines which are also automated, we have an automated flow line.

Human intervention ma is needed to verify that the operations aretaking place according to standards. When these can be achieved with thehelp of automation and the processes are conducted with self regulation, wewill have automated flow lines established.

In fixed automation or hard automation, where one component ismanufactured using services operations and machines it is possible toachieve this condition. We assume that product life cycles are sufficientlystable to interest heavily on the automate flow lines to achieve reduces castper unit.

3 | P a g e

MB0028 520923307


4/17

Product layouts ate designed so that the assembly tasks are performedin the sequence they are designed at each station continuously. The finisheditem came out at the end of the line.

In automated assembly lines the moving pallets move the materialsfrom station to station and moving arms pick up parts, place them at

specified place and system them by perusing, riveting, & crewing or evenwelding. Sensors will keep track of their activities and move then assemblesto the next stage.

The machines are arranged in a sequence to perform operationsaccording to the technical requirements.

The tools are loaded, movements are effected, speeds controlledautomatically without the need for workers 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 aspace needed to install them. One of the major cancers of modernmanufacturing systems is to be able to respond to market demands whichhave uncertainties.

Prototyping is a process by which a new product is developed in smallnumber so as to determine the suitability of the materials, study the variousmethods of manufactured, type of machinery required and developtechniques to overcome problems that may be encountered when full scalemanufacture 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 bereforming the design and any shortcomings can be rectified at low cost.

Flexibility has three dimensions in the manufacturing field. They arevariety, volume and time. Their demands will have to be satisfied. In thatsense they become constraints which restrict the maximization ofproductivity. Every business will have to meet the market demands of itsvarious products in variety volumes of different time.

Flexibility is also needed to be able to develop new products or makeimprovements 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 trendsin manufacturing when implemented help firms to stay a head in business.

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

4 | P a g e

MB0028 520923307


5/17

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 completeproduct.

Here we will see the participants of project management:

In the project management players individual and organizations both areinvolved-

That is actively involved in the project whose interests may be affectedby the outcome of the project. Exert influence over the project and its resultsplayers 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 endresult of the project.

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

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

Here are some of the roles and responsibilities of Project Management:

There are number of projects which an organization works on. It is notpossible for one individual to manage all the projects.

There is a team of managers who manage the projects.

There may be different teams working on different projects.

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

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

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

The team members are responsible for the completion of the project asper the plans of the project.

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

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

5 | P a g e

MB0028 520923307


6/17

Responsiveness it refers to quickness of response of an individual. Thevibrancy and livens of an individual or an organization are proportional to itscapability of evolving process and structure for superior responsiveness timeconstant.

Information sharing information is owner information is the matter key to

todays business. Information sharing is the characteristic of the projectmindset today.

Process project mindset lays emphasis on flexible process. The majordifference in a process and a system is in its capabilities of providingflexibility to different situational encounters. Flexible process possessesgreater capabilities of adaptability.

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

4. What are the various steps in project monitoring and

controlling a project?Any project aimed at delivering a product or service has to go through

phases in a planned manner in order to meet the requirements. Its only bycareful monitoring of the project progress. It required establishing controlfactors to keep the project on the track of progress. The results of any stagein a project, depends on the inputs to that stage. It is therefore necessary tocontrol all the inputs and the corresponding outputs from a stage. A projectmanagement may use certain standard trolls to keep the project on track.

6 | P a g e

MB0028 520923307
http://en.wikipedia.org/wiki/File:Monitoring_and_Controlling_Process_Group_Processes.jpg


7/17

The project manager and the team members should be fully aware ofthe techniques and methods to rectify the factors influencing delay of theproject and its product. The methodology of PERT (programmer EvolutionReview Technique) and CPM (critical path method) may be used to analyzethe project. In the PERT method one car find out the variance and use thevariance to analyze the various probabilistic estimates pertaining to the

project. Using the CPM one can estimate the start time and the finish time forevery event of the project in its WBS (work Breakdown Structure).

The analysis charts can be used to monitor, control, track and executea project. The various steps involved in monitoring and controlling a projectfrom start to end are as follows-

Preliminary work- the team members understand the project plans,project stage schedule, progress controls, tracking the schedules. Summaryof the members have to understand the tolerances in any change andmaintain a change control log. They must realize the need and importance ofquality for which they have to follow strictly quality agendas. They must

understand the stage status reposes, stage and reports, stage end approvalreports.

Project progress- The members must keep a track of the projectprogress and communication the same to other related members of theproject. They must monitor and control project progress, through the use ofregular check points, quality charts. Statistical tables, control the qualityfactors which are likely to deviate from expected values as any deviation mayresult in change to the stage schedule.

Stage control- The manager must establish a project check paint

cycle. For this suitable stage version control procedure may be followed.

Resources- Plan the resources required for various stage of theproject. Brief both the project team and the key resources about theobjectives of every stage, planned activities, products, organization. Metricsand project controls.

Quality control- This is very important in any project: Quality controlis possible if the project members follow-Schedule quality review, Agenda forquality review, conduct quality review and follow up.

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

assesses- monitor performance, update schedule, update casts, Re-planstage schedule, conduct team status review etc. Along with we create statusreport, create flash reports, project status reports etc.

Approvals - lastly, project sage reviews and the decisions taken andactions planned need to be approved by the top management. The goals ofsuch review are to improve quality by finding defects and to improveproductivity by finding defects in a cost effective manner. The group review

7 | P a g e

MB0028 520923307


8/17

progress includes several stage like planning, preparation and overview, agroup review meeting and rework recommendation and follow-up.

5. Explain the necessity and objectives of SCM?

SCM is the abbreviation of supply chain Management. It is considered

by many express worldwide as the ultimate solution towards efficiententerprise management.

The necessity and objectives of SCM-

SCM is required by and enterprise as a tow to enhance managementeffectiveness with a following organizational objective:

Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP,Accounting. Software and Documentation like financial reportsstatements ISO 9000 Documents etc.

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communicationsystems, 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 toand from external agencies.

Enhancement of value of products, operations and services and

consequently, enhancements of profitability.

Enhancement of satisfaction level of customer and clients, supportinginstitutions, statutory control agencies, supporting institutions,statutory control agencies, suppliers and vendors, employees andexecutives.

Enhancement of flexibility in the organization to help in easyimplementation of schemes involving modernization, expansion anddivestment, mergers and acquisitions.

Enhancement of coverage and accuracy of management informationsystems.

With the objectives of SCM, its implementation is required.Implementation is in the form of various functional blocks of an organizationinterpenetrated through which a smooth flow of the product development ispossible.

8 | P a g e

MB0028 520923307


9/17

A relatively new SCM option involves web based software with abrowser interface. Several electronic markets place for buying and sellinggoods and materials.

6. What are the steps involves in SCM implementation

There are many steps which involved in SCM implementation are-Business Process, sales and marketing. Logistics, costing, demand planning,trade- off analysis, environmental requirement, process stability, integratedsupply, supplier management, product design, suppliers, customers, materialspecifications, etc.

Some important aspect of SCM:

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

Designing and working on a strategic logic for better growth throughvalue invention.

Working out new value curve in the product development along withnecessary 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 implementation:

Group customer by need: Effective SCM groups, customer bydistinct service need those particular segments.

Customize the logistics networks: In designing their logisticsnetwork, companies need to focus on the service requirement and profitpotential of the customer segments identified.

Listen to signals of market demand and plan accordingly: Salesand operations planners must monitor the entire supply chain to detect earlywarning 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 possibleforecasting errors; instead, they need to postpone product differentiation inthe manufacturing. Processes closer to actual customer demand.

Strategically manage the source of supply: By working closelywith their key suppliers to reduce the overall casts of owning materials andservices; SCM maximizes profit margins both for themselves, and theirsupplies.

9 | P a g e

MB0028 520923307


10/17

Develop a supply chain wide technology strategy: As one of thecornerstones of successful SCM information technology must be able tosupport multiple levels of decision making.

Adopt channel spanning performance measures: Excellent supplyperformance measurement systems do more than just monitor internal

functions. They apply performance criteria that embrace both service andfinancial metrics, including each accounts true profitability.

ASSIGNMENT MBA SEM I Subject Code:

MB0028 SET 2

1. Explain how material flow information helps in work centredecision. Consider the example of a shopping centre toillustrate your answer.

10 | P a g e

MB0028 520923307


11/17

The decision which involves during uses of material flow informationhas below-

A work center is a production facility comprising of one or moremachines and one or more workmen considered as a single unit for purposesof 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, eachwork centers contribution is vital as materials are scheduled, routed andloads 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 minimizethe movement of materials, meet technological sequences, to reducecongestion, maximize throughput, improve part tracking ability and avoidrepetitive movements. In addition another consideration is to provide forexpansion of production.

Each work center receives information along with material that enter it

the material also leaves the word center with information. The route sheetcontains information about the material, process, quantities, and inspectionprocedures. Etc. the drawings or instructions tell the condition of the malarialof entry and the required condition at exit.

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

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

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 workcenters as there will many competing factors that have to be accommodated.

11 | P a g e

MB0028 520923307


12/17

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

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 worldwide web, e-mail, fiber-optics satellites

Enable societies to produce, access, adapt and apply information ingreater amount, more rapidly and at reduce casts

Offer enormous opportunities for enhancing business and economicviability

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 failuresbusiness management and project management is directly involved. Fromthe management point of view it is basic things to care above topics tosuccess of a project. Project is the core business of a company.

12 | P a g e

MB0028 520923307


13/17

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

This is the initial phase of any project. In this phase information iscollected from the customer pertaining to the project and the requirementsare analyzed. The entire project has to be planned and it should be done in astrategic manner. The project manager conducts the analysis of the problemand submits a detailed report to the top project justification, details on whatthe problem is a method of solving the problem, list of the objectives to beachieved, project budget and the success rate of completing the project. Thereport must also contain information and the project feasibility, and the risksinvolved in the project.

Project management life cycle is the integrated part of management. Itis 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 beconducted to determine the essential requirements of a project in order toachieve 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 variousalternatives which could be considered.

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

System design: Choose a general design that can fusil therequirements.

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 theproject manager. This proposal has to contain the strategies adopted tomarket the product to the customers.

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

Execution phase: In this phase the project manager and the teamsmembers work on the project objectives as per the plan. At every stageduring the execution reports are prepared.

13 | P a g e

MB0028 520923307


14/17

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

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

The phase which involve in the above are:

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

The next stage involves selecting and briefing the project team aboutthe proposals followed by discussions on the roles and responsibility of theproject 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 bydistinct service needs, regardless of industry and then tailors servicesto this particular segment.

Customize the logistic network- In designing their logisticsnetwork; companies need to focus on the service requirement andprofit 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 detectearly warning signals of changing customer demand and needs. Thisdemand driven approach leads to more consistent forecast andoptimal resource allocation.

Differentiate the product closer to the customer- companiestoday no longer can afford to stock pile inventory to compensate forpossible forecasting errors. Instead, they need to postpone productdifferentiation in the manufacturing process closer to actual consumer

14 | P a g e

MB0028 520923307


15/17

demand. This strategy allows the supply chain to respond quickly andcost effectively to change in customer needs.

Strategically manage the sources of supply- by working closelywith their key suppliers to reduce the overall costs of owning materialsand services; SCM maximizes profit margins both for themselves andtheir suppliers. Develop a supply chain wide technology strategy- as one of thecornerstones of successful SCM information technology must be able tosupport multiple levels of decision making. It also should afford a clearview and ability to measure the flow of products, services andinformation.

Adopt channel spanning chain performance measures- Excellentsupply chain performance measurement system do more than justmonitor internal functions. They apply performance criteria to everylink in the supply chain-criteria that embrace both service and financialmetrics.

5. Explain what is meant by bullwhip effect and how it could beprevented?An unmanaged supply chain is not inherently stable. Demand

variability increases as one that moves up the supply chain away from theretail customer, and small changes in consumer demand can result in largevariations in orders placed upstream. Eventually, the network can oscillate invery large swings as each organization in the supply chain seeks to solve theproblem from its own perspective. This phenomenon is known as the bullwhipeffect and has been observed across most industries, resulting in increasedcost and poorer service.

Causes of the Bullwhip Effect

Sources of variability can be demand variability, quality problems,strikes, plant fires, etc. Variability coupled with time delays in thetransmission of information up the supply chain and time delays inmanufacturing and shipping goods down the supply chain create the bullwhipeffect. The following all can contribute to the bullwhip effect:

Overreaction to backlogs

Neglecting to order in an attempt to reduce inventory No communication up and down the supply chain

No coordination up and down the supply chain

Delay times for information and material flow

Order batching - larger orders result in more variance. Order

batching occurs in an effort to reduce ordering costs, to takeadvantage of transportation economics such as full truck loadeconomies, and to benefit from sales incentives. Promotions oftenresult in forward buying to benefit more from the lower prices.

Shortage gaming: customers order more than they need duringa period of short supply, hoping that the partial shipments they receivewill be sufficient.

15 | P a g e

MB0028 520923307


16/17

Demand forecast inaccuracies: everybody in the chain adds acertain percentage to the demand estimates. The result is no visibilityof true customer demand. Free return policies

Countermeasures to the Bullwhip EffectWhile the bullwhip effect is a common problem, many leading

companies have been able to apply countermeasures to overcome it. Hereare some of these solutions:

Countermeasures to order batching - High order cost is countered withElectronic Data Interchange (EDI) and computer aided ordering (CAO). Fulltruck load economics are countered with third-party logistics and assortedtruckloads. Random or correlated ordering is countered with regular deliveryappointments. More frequent ordering results in smaller orders and smallervariance. However, when an entity orders more often, it will not see areduction in its own demand variance - the reduction is seen by the upstreamentities. Also, when an entity orders more frequently, its required safety

stock may increase or decrease; see the standard loss function in theInventory Management section.

Countermeasures to shortage gaming - Proportional rationing schemesare countered by allocating units based on past sales. Ignorance of supplychain conditions can be addressed by sharing capacity and supplyinformation. Unrestricted ordering capability can be addressed by reducingthe order size flexibility and implementing capacity reservations. Forexample, one can reserve a fixed quantity for a given year and specify thequantity of each order shortly before it is needed, as long as the sum of theorder quantities equals to the reserved quantity.

Countermeasures to fluctuating prices - High-low pricing can be replacedwith everyday low prices (EDLP). Special purchase contracts can beimplemented in order to specify ordering at regular intervals to bettersynchronize delivery and purchase.

Countermeasures to demand forecast inaccuracies - Lack of demandvisibility can be addressed by providing access to point of sale (POS) data.Single control of replenishment or Vendor Managed Inventory (VMI) canovercome exaggerated demand forecasts. Long lead times should be reducedwhere economically advantageous.

Free return policies are not addressed easily. Often, such policies simplymust be prohibited or limited.

6. What do you understand by Line Balancing? What is the

importance of order picking in material handling? Give suitableexamples.

Production lines have a number of work centers in a particularsequence so that the material that gets proceed has to move further withoutencountering any bottlenecks. The quantities produced the rate of productionat each center, the number of operations and the total production requiredare factors taken into account.

16 | P a g e

MB0028 520923307


17/17

The purpose of taking place between work centers and minimuminventory gets created. We use the principles of JIT and lean Manufacturing toachieve these. Linear programming, Dynamic programming and othermathematical 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 tobe made haves to be retrieved from specific storage location. It is found totake 60% of labour activities in the warehouse. Since it is critical to thebusiness to meet customers demand expeditiously and accurately, lot ofattention is being given to this aspect of operations. In the manufacturingarena, we desire to move towards small lot sizes and cycle time reductions.

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

Material Handling:

The purpose is to take the job through the technological steps in whichthe processing needs to be done for the transformation that is to be effectedon the material that is getting processed. The major concerns are about thequantities that need to be processed and the time that the differentoperations required. In case the product has to enter assembly, along withother parts that are being manufactured parallel, will all the required partsarrive at that point at the same time. Some components may be outsourced.To handle different parts, we have material handling equipments such ascranes 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 themanufacturing line has smooth flow. Our concern is to reduced inventory,minimums movement and timely availability.

17 | P a g e

MB0028 - P.Srinath - Completely Solved

Documents

Transcript of MB0028 - P.Srinath - Completely Solved