Production Operations Management MB0044

7/30/2019 Production Operations Management MB0044

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NAME: KOTIAN SUBHA RAMESH

ROLL NUMBER: 511016602

COURSE: MASTER OF BUSINESSADMINISTRATION

SEMESTER: Second

SUBJECT: production andoperations management

SUBJECT CODE: MB0044

Centre code: 02542

ASSIGNMENT SET: I

1. What are the components of systemsproductivity? Explain how CAD and CIM help inimproving productivity.

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Production and operations management

Productivity is a measure of output from a production process, per unitof input. It is expressed as:

Productivity can becalculated for a:

o Single Operation

o Functional Unit

o Department or division

o Plan

It is a measure of the efficiency of the system and looks at theeconomies achieved during the processes. Every process will havenumber of contributors-people machines, facilitating goods, ancillaryequipments, technology, etc. Each element attempting to enhance thecontribution of other elements. Opportunities exist at all stages of the

workflow. The entire system of introduce measures for increasingproductivity. However in actual manufacturing situations, theinefficiencies will have cascading effect in hampering productivity.Communication, effective review processes and innovative methodswill ensure optimization of resources.Quality circles are efficient in incorporating low cost and non-intrusivemethods of improving productivity and quality throughout theorganization. Capital deployed in plant, machinery, buildings and thedistribution system as well as working capital are components of theoust of manufacture and need to be productive. Demand fluctuations,uncertainties of production owing to breakdowns and inventories being

created drag the productivity down.

Computer Aided Design (CAD) is an electronic system for designingnew parts or products or altering existing ones, replacing draftingtraditionally done by hand. The designs are made using powerfuldesktop computers and graphics software. Designer can createdrawings and view them from any angle on a display monitor. Viewscan be made from different angles and positions so that thevisualization process of the designed component helps the designer tosuggest alternative to the customer and production department. Thesoftware can generate the volume, weights of components as also

other engineering loads, and various other engineering parameters likecentre of gravity, deflections under estimated loads, and various otherdesign parameters on complicate forms, either for single componentsor assemblies. CAD helps to increase the efficiency of a designerswork. This aids in reducing the time required for making a design ormodifying a product and thus concept market period gets drasticallycut. This implementation also cuts the cost of product developmentand sharply reduces the time to market new products. It saves time by

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Productivity=Output

Input


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enabling designers to access and modify old designs quickly, ratherthan start from scratch.

Computer Integrated manufacturing (CIM) Integration occurswhen a broad range of manufacturing and supporting activities are

linked. It is the complete automation of a manufacturing plant, with allprocess functioning under computer control and digital informationtying them together. Activities include engineering design, productionplanning, shop control, order processing, material control, distributionetc. Information flow across all functions takes place with the help ofcomputers. Transmission, processing, distribution and feedbackhappen almost in real time so that intended activities are conductedrapidly. This process helps in rapid production and also reducesindirect costs. As response times decrease, customer satisfactionincreases resulting in better business. CIM helps in avoidingaccumulation of materials resulting in better throughput and better

utilization of space. Bar coded labels that accompany materials containinstructions for processing them which are read by sensing devicesand display the status on monitors. This information is available to allconcerned personnel responsible in planning. Identifying shortages,ensuring faster deliveries becomes easy with CIM. It is an importantaspect of technology in manufacturing.

2. What do you understand by industry best practice? Brieflyexplain different types of Benchmarking.

For setting up or development of an industry it takes decades andduring this decade many changes related to production has takenplace. As time goes product and services keep on changing as percustomer requirement. The companies that were at the front innovateto stay in business as new entrants would be adopting the latesttechniques that the pioneers had taken decades to establish. In thiscase he various firms in any industry would end up adopting almostsimilar methods of getting an output required. The changing practiceswhich give better output will give rise to Industry Best Practices. Thesetend to get stabilized or changed owing to the development of newequipments which are designed. A manufacture will keep track on

demands for higher quality and reduced prices and those who can useall these advantage will benefit. Industry best practices open up thefield for benchmarking by companies which need to improve theirperformance.

Benchmarking involves management identifying the best firms in theirindustry, or any other industry where similar processes exist, andcomparing the results. Benchmarking is an essential ingredient in

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strategic planning and operational improvement. Benchmarking makesit possible to gain competitive superiority rather than competitiveparity. The term benchmark refers to the reference point by whichperformance is measured against. It is the indicator of what can and isbeing achieved. The term benchmarking refers to the actual activity of

establishing benchmarks and 'best' practices.

Following are the types of Benchmarking:

o Process Benchmarking-Business Process

o Financial Benchmarking

o Performance Benchmarking

o Product Benchmarking

o Strategic Benchmarking

o Functional Benchmarking

o Process Benchmarking-Business Process: ProcessBenchmarking focuses on improving specific critical processesand operations. Benchmarking partners are sought from bestpractice organizations that perform similar work or deliver similarservices. Process benchmarking invariably involves producingprocess maps to facilitate comparison and analysis. This type ofbenchmarking often results in short term benefits.

o

Financial benchmarking: Financial benchmarking helps inanalyzing and comparing the results in an effort to assess overallcompetitiveness and productivity.

o Performance Benchmarking: Performance benchmarkingallows the initiator firm to assess their competitive position bycomparing products and services with those of target firms.

o Product Benchmarking: Product Benchmarking helps in designingnew products or upgrades to current ones.

o Strategic Benchmarking: Strategic Benchmarking helps inobserving how others compete.

o Functional Benchmarking: Functional Benchmarking helps inbenchmarking on a single function to improve the operation ofthat particular function. This can lead to innovation and dramaticimprovements.

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Benchmarking goes beyond comparisons with competitors tounderstanding the practices that lie behind the performance gaps. It isnot a method for 'copying' the practices of competitors, but a way ofseeking superior process performance by looking outside the industry.Benchmarking makes it possible to gain competitive superiority rather

than competitive parity. Benchmark refers to the reference point bywhich performance is measured against. It is the indicator of what canand is being achieved. The term benchmarking refers to the actualactivity of establishing benchmarks and executing best practices.

3. List out the various automated systems for transfer ofmaterials in the production plant. What do you understand byLine Balancing? Explain withan example.

The various automated systems for transfer of materials in theproduction plant are:

o Fixed,

o Programmable

o Flexible

o Fixed: fixed automation is rigid .They are designed for high

volume production and their rigidity ensures less variability. Theyare not amenable to change in product or process. They need

minimal human intervention. E.g.: Pharmaceutical Machines andtextile machines.

o Programmable: Programming devices enable machines tooperate automatically. The machines have sensing and controldevices that enable the simplest of them called machineattachments replace human effort. They guide, locate, move,and achieve relative positions by means of cams, optical sensing,and load sensing mechanisms and activate the controls toremove human intervention. Numerically controlled machinesread instructions and convert them to machine operations.Computers are used for controlling one machine or a number ofthem and they have programmes written into them foroperations. They are Computer Numerically Controlled or forshort CNC machines.

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o Flexible: Robots are higher in the order of automation as theyperform a variety of tasks. They are designed to move materialsby holding them in their arms and making precise movementsaccording to programmes written into the computers that residein them. They simulate human actions. They can grip and hold

tools with the help of sensors. These sensors are sensitive totouch and force to know that the material is to be held with therequisite pressure for the conduct of operations. Vision sensorsare used for inspection, identification and guidance. They useoptics based instruments to gather data and feed them to thecomputers for activating the other parts of the robot.

Identification and movement of materials are helped by bar codeswhich are read and fed into the system for monitoring quantity,location, and movement. They help the automated systems to sortinformation and provide information for effecting any changes

necessary. Computers and information systems are used for placingorders for materials, giving commands and adjusting inventory recordswhich show the location and quantity of materials available.

Line Balancing:

When several automated machines are linked by a transfer systemwhich moves the parts by using handling machines which are alsoautomated, we have an automated flow line. After completing anoperation on a machine, the semi-finished parts are moved to the next

machine in the sequence determined by the process requirements anda flow line is established. The parts at various stages from raw materialto ready for fitment or assembly are processed continuously to attainthe required shapes or acquire special properties to enable them toperform 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 a single machinewith a number of attachments. They are moved further to othermachines for performing further operations. Human intervention maybe needed to verify that the operations are taking place according tostandards. When these can be achieved with the help of automation

and the processes

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The main consideration is to balance times that different machinestake to complete the operations assigned to them. It is necessary todesign the machines in such a way that, the operation times are thesame throughout the sequence in the flow of the martial. In fixedautomation or hard automation, where one component ismanufactured using several operations and machines, it is possible to

achieve this condition. We assume that product life cycles aresufficiently stable to invest heavily on the automated flow lines toachieve reduced cost per unit.

Automated flow lines are considered only when the product is requiredto be made in high volumes over a relatively long period. Designersnow incorporate flexibility in the machines which will take care of smallchanges in dimensions by making adjustments or minor changes in theexisting machine or layout. The change in movements needed can beachieved by programming the machines. Provisions for extra pallets ortool holders or conveyors are made in the original design to

accommodate anticipated changes. The logic to be followed is to findout whether the reduction in cost per piece justifies the costs ofdesigning, manufacturing, and setting up automated flow lines. GroupTechnology and Cellular Manufacturing along with conventionalProduct and Process Layouts are still resorted to, as they allowflexibility for the production system.

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4. Explain the different types of Quality Control Tools withexamples? How do Crosbys absolutes of quality differ fromDemings principles?

There are seven basic control tools considered for achieving quality.

They are as follows:

1. Flow Chart2. Check Sheet3. Histogram4. Pareto Analysis5. Scatter Diagram6. Control Chart7. Causes and Effect diagram

1 Flow Chart:

Flow chart is a visual representation of process showing the varioussteps. Like other types of diagram, they help visualize what is going onand thereby help the viewer to understand a process, and perhaps alsofind flaws and other less-obvious features within it. There are many

different types of flowcharts, and each type has its own list of boxesand notational conventions. The two most common types of boxes in aflowchart are:

A processing step which is as called activity and denoted as arectangular box

A decision usually denoted as a diamond.

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Each decision point generates alternatives. Criteria and consequencesthat go with decisions are amenable to evaluation for purposes ofassessing quality which shows the responsibility of each organizationalfor different parts of a single process.

Reject Reject

Sample of Flow Chart

1. Check Sheet:

The check sheet is a simple document that is used for collecting datain real-time like number of defects, types of defects, and at thelocation and time where the data is generated. Check Sheet containclassification, location, frequency, measurement scale and check list.

Sample check sheet

No. of DefectsIn Shirt 1 2 3 4 5

Day1 II III IIII IIIIII II

2 I IIIIIIII IIIIIII IIII III

3 II IIIIII IIII II II

4 II IIII IIII II II

5 III IIIIII II I III

6 II III II IIII II

The table shows that the number of defects in shirt 1 and 5 are notmany as compared to defect no 2 which increased over the days andappears to be stabilizing at the higher side and therefore needs to beattended immediately.

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StartInsp

ectOpen Inspe

ct

Close


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2. Histogram:

A histogram is a graphical representation, showing a visualimpression of the distribution of data. It is an estimate of theprobability distribution of a continuous variable. It is used when

there is large amount of data about process. They reveal whetherthe pattern of distribution has a single peak, or many peaks andalso the extent of variation around the peak value. This helps inidentifying whether the problem is serious. When used inconjunction with comparable parameters, the visual patterns helpus to identify the problem which should be attended to. Belowsample of Histogram of wages of workers A B C D in Rs.

Sample Histogram Chart

3. Pareto Analysis:

Pareto analysis is a tool for classifying problem areas according to thedegree of importance and attending to the most important. Paretoprinciple, also called 80-20 rule, states that 80 percent of the problems

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that we encounter arise out of 20 percent of items. If we find that, in aday, we have 164 assemblies having problems and there are 11possible causes, it is observed that 80 percent of them, that is, 147 ofthem have been caused by just 2 or 3 of them. It will be easy to focuson these 2 or 3 and reduce the number of defects to a great extent.

When the cause of these defects has been attended, we will observethat some other defect becomes predominantly observed and if theprocess is continued, we are marching toward zero defects.

Sample of Pareto Analysis

Pareto Analysis when used correctly is powerful and effective tool incontinuous improvement and problem solving to break up few fromother causes in terms of cost and frequency.

4. Scatter Diagram:

Scatter diagram is used when we have two variables and want toknow the degree of relationship between them. This diagram simplyplots pairs of corresponding data from two variables, which areusually two variables in a process being studied. The scatter diagramdoes not determine the exact relationship between the two variables,but it does indicate whether they are correlated or not and also doesnot predict cause and effect relationships between these variables. Itis used to provide a graphical representation of the strength of therelationship between two variables and serve as a follow-up step to a

cause-effect analysis to establish whether a change in an identifiedcause can indeed produce a change in its identified effect.

Sample of Scatter Diagram

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A scatter Diagram is also very useful when we want to see how two

comparable data sets agree with each other.

5. Control Chart:

Control charts are used to verify whether a process is under control.Variables, when they remain within a range, will render the productand maintain the specifications. This is called the quality ofconformance. If the chart indicates that the process being monitored isnot in control, analysis of the chart can help determine the sources ofvariation, which can then be eliminated to bring the process back into

control. The control chart can be seen as part of an objective anddisciplined approach that enables correct decisions regarding controlof the process, including whether or not to change process controlparameters. Samples are taken and the mean and range of thevariable of each sample (subgroup) is recorded.

6. Causes and Effect diagram:

A Cause-and-Effect Diagram is a tool that is useful for identifying andorganizing the known or potential causes of quality. These arearranged in such a way that different branches representing causesconnect the stem in the direction of the discovery of the problem.Cause and Effect Diagrams help you to think through causes of a

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problem thoroughly. Their major benefit is that it pushes to consider allpossible causes of the problem rather than just the ones that are mostclear.

Machine Product Process

Major Defects

Inspection ProductTraining

Sample Cause and Effect Diagram

Crosbys absolutes of quality differ from Demings principles:Crosby also lays emphasis on top management commitment andresponsibility for designing the system so that defects are notinevitable. He urged that there be no restriction on spending for

achieving quality. In the long run, maintaining quality is moreeconomical than compromising on its achievement.

Crosby adopted his basic theories about quality in four Absolutes ofQuality Management as follows:

1. Quality means conformance to requirements, not goodness.2. The system for causing quality is prevention, not appraisal.3. The performance standard must be zero defects, not "that's

close enough."4. The measurement of quality is the price of nonconformance, not

indexes.

Crosby also has given 14 points similar to those of Deming. Hisapproach emphasizes on measurement of quality, increasingawareness, corrective action, error cause removal and continuouslyreinforcing the system, so that advantages derived are not lost overtime. He opined that the quality management regimen should improve

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the overall health of the organization and prescribed a vaccine. Theingredients are:

1) Integrity: Honesty and commitment help in producingeverything right first time, every time.

2) Communication: Flow of information betweendepartments, suppliers, customers helps in identifyingopportunities.

3) Systems and operations: These should bring in a qualityenvironment so that nobody is comfortable with anythingless than the best

5. Define project cycle, project management, and scope of

project. List the various project management knowledgeareas? What are the reasons for failure of a project?

Project Cycle

A project cycle consists of the various activities of operations,resources, and the limitations imposed on them.

Project Management:

A Project is a temporary endeavor with a finite completion dateundertaken to create a unique product or service. Projects bring formor function to ideas or needs. A project is undertaken to achieve apurpose. Whereas Management is the technique of understanding theproblems, needs, and controlling the use of resources such as cost,time, manpower and materials. Thus Project management is amethodical approach to planning and guiding project processes fromstart to finish.

Scope of project:Scope of the project refers to the various parameters that affect theproject in its planning, formulation, and executions. Scope of project isto clearly describe and gain agreement on the logical boundaries of theproject.

Various project management knowledge areas:

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The knowledge areas of project management are the following:

o Project integration management, cost management,

communications management

o Project scope management, quality management, risk

management

o Project time management, human management, procurement

management

Project Management Knowledge Areas

o Project Integration Management: It Deals with processes that

integrate different aspects of project management. Thisknowledge area deals with developing Project Charter,Preliminary Project Scope, and Project Management Plan. It alsodeals with monitoring and controlling project work, integratedchange control, and closing a project.

o Project Cost Management: It deals with processes concerning

the cost constrains of the project. Some of the processes that arepart of this knowledge area are Cost Estimating, Budgeting, andControl.

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o Project Communication Management: It deals with theprocesses concerning communication mechanisms of a project,namely, Communication Planning, Performance Reporting, and

Information Distribution.

o Project Scope Management: It deals with the processes that

are responsible for controlling project scope. It consists of ScopePlanning, Definition, Verification, and Control.

o Project Quality Management: It deals with the processes that

assure that the project meets its quality obligations. It consists ofQuality Planning, Quality Assurance, and Quality Control.

o Project Risk Management: It deals with the processes

concerned with project-related risk management. It consists ofRisk Identification, Quantitative and Qualitative Risk Analysis,Risk Response Planning, and Risk Monitoring.

o Project Time Management: It deals with the processesconcerning the time constraints of the project. It deals withActivity definition, sequencing, resource estimating, and durationestimating. It also deals with schedule development and control.

o Project Human Resources Management: It deals with the

processes that deal with obtaining and managing the projectteam. Some of the processes of this knowledge area are HumanResource Planning, Acquire Project Team, Develop Project Team,and Manage Project Team.

o Project Procurement Management: It deals with theprocesses that deal with obtaining products and services needed

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to complete a project. It consists of Plan Contracting, SelectSeller Responses, Select Seller, and Contract Closer.

For successful project it is necessary to understand its relationship withother management disciplines. Other management supportingdisciplines are business legal issues, strategic planning, logistics,human resource management, and domain knowledge.

Reasons for Failure of a project:

The measure of project success or failure has a great deal to do withhow projects are defined. A project is a temporary endeavorundertaken to create a unique product or service .Organizations that

successfully use project management disciplines know exactly howrigorously they mean to apply the disciplines and how to measuresuccess.

A project may fail because of the following reasons:

o Incidence of project failure

o Factors contributing to project success not emphasized

o Overview of Information and CommunicationTechnologies (ICT) projects

o Common problems encountered during projects

Incidence of project failure:

o Projects being initiated at random at all levels

o Project objective not in line with business objective

o Project management not observed

o No prior experience of Project manager in the related project

o Non-dedicated teamo Lack of complete support from clients

Factors contributing to project success not emphasized:

Project objective in alignment with business objective

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Working within the framework of project managementmethodology

Effective scoping, planning, estimation, execution, controls andreviews, closure intertwined with quality

Proactive approach towards project bottlenecks

Communication and managing expectations effectively withclients, team members, and stake holders

Prior experience of project manager in a similar project

Overview of Information and Communication Technologies(ICT) projects:

Involve information and communications technologies such as

the World Wide Web, e-mail, fiber-optics, and satellites Enable societies to produce, access, adapt and apply information

in greater amounts, more rapidly and at reduced costs

Offer enormous opportunities for enhancing business andeconomic 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 or non-dedicated manpower

Absence of smooth flow of communication between the involvedparties

6. Explain the various phases in project management lifecycle. Explain thenecessity and objectives of SCM.

Project management is an important phase of any project. The Projectmanager must first understand the change processes in a project tobring about any changes. Project management life cycle has sixphases:

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1. Analysis and evaluation phase2. Marketing phase3. Design phase4. Execution phase5. Control inspecting, testing, and delivery phase

6. Closure and post completion analysis phase

1. Analysis and evaluation phase:

Analysis and evaluation phase is the initial phase of any project.information is collected from the customer pertaining to the projectand the requirements of the project are analyzed. According to thecustomer requirement, the entire project is planned in a strategicmanner. The project manager conducts the analysis of the problemand submits a detailed report to the top management.

Project Manager Analysis Report consists of the following:

o Details of the project justification

o Details on what the problem is

o Methods of solving the problem

o List of the objectives to be achieved

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o Estimation of project budget

o Success rate of completing the project

o Information on the project feasibility

o Information of the risks involved in the project

The important task of the project manager during the phase ofanalysis and evaluation are:

o Specification Requirements Analysis to determine the vital

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

o Feasibility Study to analyze whether the project is technically,economically, and practically feasible to be undertaken.

o Trade-off Analysis to understand and examine the various

alternatives which could be considered for solving the problem.

o Estimation to conduct on the project cost, effort required for the

project, and the functionality of various processes in the project.

o System design to choose to fulfill the requirements.

o Project Evaluation to evaluate in terms of expected profit, cost,

and risks involved.

2. Marketing phase

A project proposal is prepared by a group of people including the

project manager. This proposal has to contain the strategies adoptedto market the product to the customers. As customer is one to acceptit and led to long lasting.

3. Design phase

Design phase involve inputs and outputs of the various project stages.

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Inputs and Outputs in Design Phase

o Inputs received consist of project feasibility study, preliminary

project evaluation details, project proposal, and customer

interviews.

o Outputs produced consist of system design specifications,

functional specifications of the project, design specifications ofthe project, and project plan.

4. Execution phase

In this phase the plan is executed by Project Manager and his

executives and at every stage reports are prepared

5. Control inspecting, testing and delivery phase

The project team works under the guidance of the project manager. Ithas to be ensured by project manager that the team working underhim is implementing the project designs accurately. The project has to

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be tracked or monitored through its cost, manpower, and schedule.The project manager has to ensure ways of managing the customerand marketing the future work as well as ways to perform qualitycontrol work.

6. Closure and post completion analysis phase

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 theproject. Prepare the reports on project feedback analysis followed bythe project execution report.

The phases which involve in the above are:

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

o Assigning task to the team members

o The feasibility or research stage establishes whether the project

is feasible or not and establishes the risk factors

o A detailed definition and plan for the project and its execution is

prepared by the team and coordinated by the project manager.

o The implementation stage involves the execution of the project

as per the plan.

o The final stage involves satisfactory delivery of the

product/service to the customers.

Necessity and Objectives of SCM

SCM is required by an enterprise as a tool to improve managementeffectiveness with the following objectives:

o Reduction of inventory.

o Enhancement of participation level and empowerment level.

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o Increase in functional effectiveness of existing systems like

Enterprise Resource Planning (ERP), Accounting Software, andDocumentation such as financial reports/ Statements/ISO 9000Documents.

o Effective integration of multiple systems like ERP,

communication systems, documentation system and security.

o Design / Research & Development (R&D) systems.

o Better operation of resources like men, material, equipment, and

money.

o Optimization of money flow cycle within the organization as well

as from external agencies.

o Enhancement of value of products, operations, and services.

These enhancements will consequently enhance the profitabilityof organization.

o Enhancement of satisfaction level of customers and clients,

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

o Enhancement of flexibility in the organization to help in easy

implementation of schemes involving modernization, expansionand diversification even divestments, mergers and acquisitions.

o Enhancement of coverage and accuracy of management

information systems.

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Production Operations Management MB0044

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