Master of Business Administration-MBA Semester IIMB0044–Production & Operations Management– 4 Credits

(Book ID: B1133)Assignment Set- 2

Q1. Explain Logical process and Physical process modeling. What are the ingredients of Business Process?

Ans

Business Process Modeling

A process is a coordinated set of activities designed to produce a specific outcome. There are processes for saving a file, constructing a building, and cooking a meal. In fact, there is a process for almost everything we do. A business process is a type of process designed to achieve a particular business objective.

Business processes consist of many components, including:

The data needed to accomplish the desired business objective Individual work tasks that manipulate, review, or act upon the data in some way Decisions that affect the data in the process or the manner in which the process is

conducted The movement of data between tasks in the process Individuals and groups which perform tasks

Processes can be manual or automated, fully documented or simply knowledge in the minds of one or more people. They can be simple or complex. They can be formal, requiring exact adherence to all details; or flexible, provided the desired outcome is achieved.

Logical Process Modeling

Logical Process Modeling is the representation of a business process, detailing all the activities in the process from gathering the initial data to reaching the desired outcome. These are the kinds of activities described in a logical process model:

Gathering the data to be acted upon Controlling access to the data during the process execution Determining which work task in the process should be accomplished next Delivering the appropriate subset of the data to the corresponding work task Assuring that all necessary data exists and all required actions have been performed at

each task Providing a mechanism to indicate acceptance of the results of the process, such as,

electronic “signatures”

All business processes are made up of these actions. The most complex of processes can be broken down into these concepts. The complexity comes in the manner in which the process activities are connected together. Some activities may occur in sequential order, while some may be performed in parallel. There may be circular paths in the process (a re-work loop, for example). It is likely there will be some combination of these.

The movement of data and the decisions made determining the paths the data follow during the process comprise the process model. The contains only business activities, uses business terminology (not software acronyms, technical jargon, etc.…), completely describes the activities of the business area being modeled, and is independent of any individual or position working in the organization. Like its sibling, Logical Data Modeling, Logical Process Modeling does not include redundant activities, technology dependent activities, physical limitations or requirements or current systems limitations or requirements. The process model is a representation of the business view of the set of activities under analysis.

Heretofore, many applications and systems were built without a logical process model or a rigorous examination of the processes needed to accomplish the business goals. This resulted in applications that did not meet the needs of the users and / or were difficult to maintain and enhance.

Problems with an unmodeled system include the following:

Not knowing who is in possession of the data at any point in time Lack of control over access to the data at any point in the process Inability to determine quickly where in the process the data resides and how long it has

been there Difficulties in making adjustments to a specific execution of a business process Inconsistent process execution

. Ingredients of Business Process

1) Time: You must understand that time is money. In business, our objective is to make money. Period. But the question is how productively you convert your time into money. Are you making full use of your time or you just let the time pass by you?

How much you make depends on how good you are at converting time to money. If you are already productive, then you may want to ask what are the things you can do toimprove further the ratio of dollar/second? If you are making $0.01/second, what you can do to make it $0.02/second? Or even more. Remember time is the most valuable asset and once it’s gone, it’s gone. Also time is also the fairest distribution of resources every human being receives.

2) People: To be successful in business, you must have people connections. I mean the right people. People consist of customers, suppliers, partners, staff, and associates.

One thing that you must not leave out is your mentor or coach. Having genuine mentors or coaches is very important and it can make a very big difference in your business.

To make sure that you have more profits, you must serve people well. Organize your database of people connections. By simply knowing who does what, who supplies what, who needs what, where to get what make you miles ahead of other people. To organize your connections, you can either use a paper folder or computer spreadsheet.

3) Knowledge and Skills: When I talk about knowledge and skills, I am not referring to academic knowledge that you find in schools or colleges. What’s more important to youis knowledge and skills that can bring you results you want.

How many MBA holders that you know of have become business owners and have made tones of money? That shows getting the right knowledge and skills is important. Don’t blindly go after knowledge that could drown you. Go for knowledge and skills that are universally tested and proven.

Examples of right knowledge and skills are where to get what from who, money making trends, marketing strategies, art of dealing with people, negotiation skills, selling skills, skills of managing and growing money, investment skills, universal laws of success, and more. Don’t waste time on unnecessary knowledge as I went through that before. There’s only so much that you need to know and learn. Be sharp and focus when you acquire knowledge and skills. Don’t follow what normal people do.

4) Personal Health: In fact, this is the most important ingredient of all. How can you run a business without a healthy body? In order to maintain an optimum health, you have to provide your body with proper nutrients and sufficient exercise. And also don’t forget about emotional well being. Don’t let anger and other negative emotions control you.

This is where positive and empowering attitudes come into play. Maintaining your body is just like maintaining your car. If you send your car to workshop for regular service and pump petrol regularly, why don’t you do the same for your body? It’s something for you to think about. Don’t be stingy over spending money for your own health because physical and mental health can cause you a lot of money in the long run if your body is not taken care of properly.

5) Money: Let’s face it. It does take money to make money even you need a little. But you might not need a lot of money to start a business because there are many ways tostart one with low capital.

I meet a lot of people who want to be rich but are not willing to invest the money. You must invest in something in order to for you to get something. The law of sowing andreaping is at work. Don’t expect something without investing anything. Money is one of the investments you need to make.

Even though you don’t need to have a capital for your business, but at least you must be able to cover your expenses while building your business. You also need money to buy products to stock up and other stuff. So, you must at least come up with whatever amount that you have to start a business.

These are the five basic ingredients of business success. Do your best to acquire or grow or invest in these ingredients. But the good thing is you don’t need to have a perfect combination of ingredients to get started. You can still perfect the ingredients along the way. Somehow, get it started with what you’ve got.Article Source: http://EzineArticles.com/24925

Q2. Explain Project Management knowledge areas. With an example explain work Breakdown Structure.

Ans.

The Project management knowledge areas are described in the following.

Project integration management describes the processes and activities needed to identify, define, combine, unify and coordinate the various project management elements within the project management process groups. The project management processes are develop project charter, develop preliminary project scope statement, develop project management plan, direct and manage project execution, monitor and control project work, integrated change control and close project.

Project scope management describes the processes needed to ensure that the project includes all the work required – and only the work required – to complete the project successfully. The project management processes are plan scope, define scope, create work breakdown structure, verify scope and control scope.

Project time management describes the processes required to ensure on-time project completion. The project management processes are define project activities, sequence activities, estimate activity resources, estimate activity duration and develop and control project schedule.

Project cost management describes the processes involved in planning, estimating, budgeting and controlling costs to ensure that the project is completed within the approved budget. The project management processes are cost estimating, cost budgeting and cost control.

Project quality management describes the processes involved in assuring that the project will satisfy the objectives for which it was undertaken. The project management processes are quality planning, perform quality assurance and perform quality control.

Project human resource management describes the processes that organise and manage the project team. The project management processes are human resource planning, acquire project team, develop project team and manage project team.

Project communications management describes the processes concerning the timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information. The project management processes are communications planning, information distribution, performance reporting and manage stakeholders.

Project risk management describes the processes concerned with conducting risk management on a project. The project management processes are risk management planning, risk identification, qualitative risk analysis, quantitative risk analysis, risk response planning and risk monitoring and control.

Project procurement management describes the processes that purchase or acquire products, services or results as well as contract management processes. The project management processes are plan purchases and acquisitions, plan contracting, request seller responses, select sellers, contract administration and contract closure.

Work Breakdown Structure

A work breakdown structure (WBS) in project management and systems engineering, is a tool used to define and group a project‘s discrete work elements in a way that helps organize and define the total work scope of the project.[1]

A work breakdown structure element may be a product, data, a service, or any combination. A WBS also provides the necessary framework for detailed cost estimating and control along with providing guidance for schedule development and control. Additionally the WBS is a dynamic tool and can be revised and updated as needed by the project manager.

Example of a product oriented work breakdown structure of an aircraft system

Q3.Take an example of any product or project and explain Project Management Life Cycle.

In industry, product lifecycle management (PLM) is the process of managing the entire lifecycle of a product from its conception, through design and manufacture, to service and disposal.[1] PLM integrates people, data, processes and business systems and provides a product information backbone for companies and their extended enterprise.[2]

‘Product lifecycle management’ (PLM) should be distinguished from ‘Product life cycle management (marketing)‘ (PLCM). PLM describes the engineering aspect of a product, from managing descriptions and properties of a product through its development and useful life;

whereas, PLCM refers to the commercial management of life of a product in the business market with respect to costs and sales measures.

Product lifecycle management is one of the four cornerstones of a corporation’s information technology structure.[3] All companies need to manage communications and information with their customers (CRM-Customer Relationship Management), their suppliers (SCM-Supply Chain Management), their resources within the enterprise (ERP-Enterprise Resource Planning) and their planning (SDLC-Systems Development Life Cycle). In addition, manufacturing engineering companies must also develop, describe, manage and communicate information about their products.

One form of PLM is called people-centric PLM. While traditional PLM tools have been deployed only on release or during the release phase, people-centric PLM targets the design phase.

Example

Recent (as of 2009) ICT development (EU funded PROMISE project 2004-2008) has allowed PLM to extend beyond traditional PLM and integrate sensor data and real time ‘lifecycle event data’ into PLM, as well as allowing this information to be made available to different players in the total lifecycle of an individual product (closing the information loop). This has resulted in the extension of PLM into Closed Loop Lifecycle Management

Benefits

Documented benefits of product lifecycle management include:[4][5]

Reduced time to market Improved product quality Reduced prototyping costs More accurate and timely Request For Quote generation Ability to quickly identify potential sales opportunities and revenue contributions Savings through the re-use of original data A framework for product optimization Reduced waste Savings through the complete integration of engineering workflows Documentation that can assist in proving Compliance for RoHS or Title 21 CFR Part

11 Ability to provide Contract Manufacturers with access to a centralized product record

Q4. Explain PIMS. What is the difference between key Success Factor (KSF) and Knowledge (K) Factor? Explain with example.

Ans. Project Management Information System (PMIS) are system tools and techniques used in project management to deliver information. Project managers use the techniques and tools to collect, combine and distribute information through electronic and manual means. Project Management Information System (PMIS) is used by upper and lower management to communicate with each other.Project Management Information System (PMIS) help plan, execute and close project management goals. During the planning process, project managers use PMIS for budget framework such as estimating costs. The Project Management Information System is also used to create a specific schedule and define the scope baseline. At the execution of the project management goals, the project management team collects information into one database. The PMIS is used to compare the baseline with the actual accomplishment of each activity, manage materials, collect financial data, and keep a record for reporting purposes. During the close of the project, the Project Management Information System is used to review the goals to check if the tasks were accomplished. Then, it is used to create a final report of the project close.To conclude, the project management information system (PMIS) is used to plan schedules, budget and execute work to be accomplished in project management

Key Success   Factors

Definition: The factors that are a necessary condition for success in a given market.

When writing a business plan, it’s crucial to identify what will make your business a success. Think of key success factors as the small towns you must pass through to reach your destination. If you don’t consult a map to found out where those towns are, you may miss a turnoff and your destination. Key success factors, also known as critical success factors, keep you and your employees on track to make your business a success.

Increasing the sales of a product or service is a common key success factor, but it should be linked to a measurable goal, such as “sales of product X will increase by 30 percent in the fourth quarter.” Measuring the outcome of the goals related to your key success factors is essential to keeping your business on target.

Almost all businesses can benefit from having the key success factor “attract new customers.” Decide how many new customers your business needs to succeed, and set a related goal, such as “increase walk-in traffic by 25 percent by offering samples at the door.” Other examples of common key success factors are, “retain quality employees,” “increase profit margin” and “increase customer satisfaction.”

Some businesses are subject to more regulation than others. Manufacturing facilities must comply with OSHA regulations, and they may want to develop a key success factor that addresses the company’s compliance. For example, “Provide all employees with hazardous material training.”

Key success factors should always be relevant to the business you are in. An example of an industry specific key success factor is “increase load factor relative to the industry average.” This key success factor is specific to the airline industry, as

referenced in “Airline Industry Key Success Factors” in the Graziadio Business Report. Fleet management is essential to airlines, limousine companies and taxi services, but it’s not relevant to the development of computer games.

The key success factor “Build a manufacturing facility to produce 80 percent of inventory” is an example of what RapidBi.com calls temporal factors. According to the web site, temporal factors “relate to short-term situations, often crises. These CSF’s may be important, but are usually short-lived.” In this example, once the manufacturing facility is constructed and operational, the key success factor is no longer needed and can be replaced by a currently relevant one.

Measurable Key Success Factors

General Key Success Factors

Regulatory Key Success Factors

Industry Specific Key Success Factors

Temporal Key Success Factors

Knowledge factor

India may be a brain bank to the world. but it doesn’t help if other countries cash in on this more frequently than india itself. The state of Indian higher education is the weak link in this chain it’s the reason why Indians spend $3 billion annually seeking education abroad.

Those who study abroad tend to stay on abroad, while according to a NASSCOM-Mckinsey estimate only 10-25 per cent of those earning a college degree in India are employable.

Now the National Knowledge Commission (NKC) has written to the prime minister stating that raising the number of indian universities from 350 to 1,500 is critical if India’s growth is to be sustained.

As NKC Chairman Sam Pitroda notes, only 7 per cent of India’s population aged 18-24 enters higher education, which is half the Asian average. China has created 1,250 new universities within just the last three years.

India’s percentage of youth enrolled in college has to be brought up to at least asian levels while at the same time enhancing academic standards.

The only way such a sweeping revamp can be carried out is if today’s centrally managed education mono-polies are dismantled, and education is depoliticised and debureaucratised.

Q5. Explain the seven principles of supply chain management. Take an example of any product in the market and explain the scenario of Bullwhip effect.

Ans. There is many steps which involved in SCM implementation are- Business Process, sales and marketing. Logistics, costing, demand planning, trade- off analysis, environmental requirement, process stability, integrated supply, supplier management, product design, suppiers, 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 tietinct service meeds 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.

Q.6 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 minimize the idle time taken by the jobs on the machines.

Job Machine 1 (M1)

Machine 2 (M2)

Machine 3 (M3)

A 6 8 7

B 4 5 3

C 5 5 7

D 3 4 6

E 4 3 4

Answer:

Consider MI and M3

Job Machine 1(M1)

Machine 3(M3)

A 6 7B 4 3C 5 7D 3 6E 4 4

JOB = DECAB