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Q2. Write a detailed note on Split case order fulfillment methods and mechanization.
Ans:
Split-case Order Fulfillment Methods and Mechanisation
This system looks at situations when bulk supplies in full cases to one or more
destinations are not done. Fulfillment of orders which need different merchandise in
different quantities requires that ‘cases’ will have to be split, and pieces picked,
repacked in cartons and ship to the customer. .Mechanisation helps in improving
identification, pickup and repacking the materials in addition to relieving monotony
of the workers. A few strategies of achieving this objective optimally are discussed
here.
1 Order Picking Methods
Items as per customer requirements have to be picked and packed in a logical
manner and assigned to personnel so that their productivity is maximized.
Accuracy of fulfillment of order is ensured by two basic factors
a) Order Extent it is defined as the number of order to be picked simultaneously by
a picker in an assignment. This is categorized as discrete order picking in which
case a single order is selected at a time and Batch order Picking in which case the
merchandise requirements of many orders are put together and selected for pick up
in the geographical area which is covered in a single pass.
b) Coverage Extent it is the physical area to be traversed by the picker in selecting
merchandise for an assignment within the picking system. The personnel pick up
the merchandise from a zone the zone being a contiguous area with different
picking locations. The boundaries may be fixed or dynamically adjusted to
accommodate either personnel or customers. This zone is identified within the
picking area. In the other method called tour picking the entire picking area is
considered for picking merchandise. Either of the strategies is adopted to meet the
constraints or opportunities which maximize employee productivity and the
customers’ needs.
2 Sorting and Routing
Sorting is done for the purpose of easing the operation of matching orders,
merchandise and the customers for whom they are done. This activity can be done
as and when orders are picked Sort Immediate or by merging a number of order and
batches are made to consolidate the priorities for execution. This method is called
Merge and Sort. The strategy used depends on the total area of the zone, the
number of orders, and the type of merchandise and the economics of balancing all
the above.
When orders are routed among those zones where picks are required we call them
routing the picks. When orders are routed from zone to zone, in a particular order,
whether any picks are there or not, we call them chaining. When multiple zones are
covered simultaneously in different
Zones we call them parallel routing. As can be discerned, no one single method is
suitable for actual situations on site. They are formulated as a strategy for
optimization of resources in view of the constraints.
3 Order Packing Methods
Order fulfilling methodology covers one more aspect i.e. the order packing methods.
When split-case is executed it becomes necessary that the merchandise is
repackaged for shipment to meet the requirements of the customers. In the first
method they are packed as they are picked. This is applicable in cases where the
merchandise is usable by the customer directly and when the tools and packaging
materials are available with the picker and he can pack them throughout the picking
area.
4 Classification Schemes
In this section you will come to know about the coding of various methods of split
picking and packing. The letters will uniquely identify the method intended to be
used and all personnel in the process will know disposition status of the
merchandise.
D iscrete Order Picking or B atch Order Picking Letter
D or B is used
Z one Picking or Tour Picking
Pack Immediate or Assemble and Pack
BS Batch Order Picking -Sort Immediate
BM Batch Order Picking – Merge & Sort
ZR Zone Picking with Routing
ZC Zone Picking with Chaining
ZP Zone Picking in Parallel
For example, BSDZCA means Batch Order Picking Sort Immediate Discrete
Order Packing Zone Picking with Chaining and Assemble.
With this type of coding 24 ways of representing the type of split order picking and
packing are identifiable.
5 Choice of Optimal Fulfillment Strategies
The choice of order fulfillment strategy depends upon the predominant order
characteristics and category of distribution. They are determined by General order
characteristics such as
a) number of line items;
b) quality of pieces per line item
General order categories are
a) Wholesale Distribution – usually large number of pieces of a few items;
b) Retail Distribution – orders for large quantities for a large number of items;
c) Direct Marketing orders for a small quantity;
d) Consumer Distribution small quantities of different items for purposes of
evaluation, promotion and consumption
The performance measures to be satisfied by the choice of strategy are to minimize
the costs involved and maximize desirable characteristics..
They are
a) Minimise the cost of pick and pack for every order;
b) Minimise the cost of shipping per order,
c) Reduce the time required per cycle;
d) To increase the fill rate
e) Improve Accuracy of the elements of the process
f) Traceability and accountability of all transactions.
Advanced technology involving Bar Coding, feeding on line data, high speed
processing and distribution of information across all nodes of the supply chain help
in improving efficiency, reduce costs and improve customer satisfaction.
Q3. Explain strategic management process and strategic decision making in detail.
Ans:
Q4. What is TQM? Explain Quality approaches of Deming Wheel and Jurans Quality Triology.
Ans:
Plan means that a problem is identified, processes are determined and relevant
theories are checked out .
Do – means that the plan is implemented on a trial basis. All inputs are correctly
measured and recorded.
Check – means that the trials taken according to the plan are in accordance with the
expected results.
Act When all the above steps are satisfactory regular production is started so that
quality outcomes are assured
2 Juran’s Quality Triology :
Juran uses his famous Universal Breakthrough Sequence to implement quality
programmes. They are
A – Proof of need there should be a compelling need to make changes
B – Project Identification Here what is to be changed is identified Specific projects
with time frames and the resource allocation are decided.
C Organisation with top management’s commitment is made in terms of assignment
of persons, responsibilities fixed
D Diagnostic journey Each team will determine the problems result from systemic
causes or random or deliberately caused. Root causes are ascertained with utmost
certainty.
E Remedial Action – This is the stage when changes are introduced. Inspection,
testing and validation are also included at this point.
F Holding on to the gains The above steps result in beneficiary results. Having
records or all actions and consequences will help in further improvements. The
actions that resulted in the benefits derived should be the norm for establishing
standards.
Juran has categorized cost of quality into four categories
(a) Failure costs – Internal These are costs of rejections, repairs etc in terms of
materials, labour, machine time and loss of morale;
(b) Failure costs – External – These are costs of replacement, onsite rework including
spare parts and expenses of the personnel, warranty costs and loss of goodwill;
(c) Appraisal Costs costs of inspection, including maintenance of records,
certification, segregation costs, etc.
(d) Prevention costs: The sequences of three sets of activities Quality Planning,
Quality Control and Quality Improvement form the trio logy to achieve Total Quality
Management. His arguments are that
1. Quality is the result of good planning considering the needs of both internal and
external customers and develops processes to meet them. The processes are also
planned to meet them.
2. Quality is built into the system of manufacture inputs and processes that are on
stream like raw material, spare parts, labour, machine maintenance, training,
warehousing, inspection procedures, packaging, etc. They have to be made to
follow standards and control exercised to make sure that mistakes do not occur
often and if they are they are corrected at the source.
3. Quality Improvement measures are essential to keep the quality culture alive.
Newer methods
will be found, some operations can be eliminated, improved technology available In
short, as experience is gained things can always be done better. It is for the
management to take the initiative and encourage the employees to be on the look
out for opportunities for improvement.
Q 5. Compare Workflow with BPM. Explain in detail the Project Development process Cycle?
Ans:
The material goes from station 1 to 5 sequentially. Operation 2 takes longer time,
say twice as long. To see that the flow is kept at the same pace we provide two
locations 2a and 2b so that operations 3, 4 and 5 need not wait. At 5, we may
provide more personnel to complete operations. The time taken at any of the
locations should be the same. Otherwise the flow is interrupted. In automated
assembly lines the moving pallets move the materials from station to station and
moving arms pick up parts, place them at specified places and fasten them by
pressing, riveting, screwing or even welding. Sensors will keep track of these
activities and move the assemblies to the next stage. An operator will oversee that
the assemblies are happening and there are no stoppages. The main consideration
for using automated assembly lines is that the volumes justify the huge expenses
involved in setting up the system.
Automated flow lines
When several automated machines are linked by a transfer system which moves the
parts by using handling machines which are also automated, we have an automated
flow line. After completing an operation on a machine, the semi-finished parts are
moved to the next machine in the sequence determined by the process
requirements a flow line is established. The parts at various stages from raw
material to ready for fitment or assembly are processed continuously to attain the
required shapes or acquire special properties to enable them to perform desired
functions. The materials need to be moved, held, rotated, lifted, positioned etc. for
completing different operations. Sometimes, a few of the operations can be done on
a single machine with a number of attachments. They are moved further to other
machines for performing further operations. Human intervention may be needed to
verify that the operations are taking place according to standards. When these can
be achieved with the help of automation and the processes are conducted with self
regulation, we will have automated flow lines established. One important
consideration is to balance times that different machines take to complete the
operations assigned to them. It is necessary to design the machines in such a way
that the operation times are the same throughout the sequence in the flow of the
martial. In fixed automation or hard automation, where one component is
manufactured using several operations and machines it is possible to achieve this
condition – or very nearly. We assume that product life cycles are sufficiently stable
to invest heavily on the automated flow lines to achieve reduced cost per unit. The
global trends are favoring flexibility in the manufacturing systems. The costs
involved in changing the set up of automated flow lines are high. So, automated
flow lines are considered only when the product is required to be made in high
volumes over a relatively long period. Designers now incorporate flexibility in the
machines which will take care of small changes in dimensions by making
adjustments or minor changes in the existing machine or layout. The change in
movements needed can be achieved by programming the machines. Provision for
extra pallets or tool holders or conveyors are made in the original design to
accommodate anticipated changes. The logic to be followed is to find out whether
the reduction in cost per piece justifies the costs of designing, manufacturing and
setting up automated flow lines. Group Technology, Cellular Manufacturing along
with conventional Product and Process Layouts are still resorted to as they allow
flexibility for the production system. With methodologies of JIT and Lean
Manufacturing finding importance and relevance in the competitive field of
manufacturing, many companies have found that well designed flow lines suit their
purpose well. Flow lines compel engineers to put in place equipments that balance
their production rates. It is not possible to think of inventories (Work In Process) in a
flow line. Bottlenecks cannot be permitted. By necessity, every bottleneck gets
focused upon and solutions found to ease them. Production managers see every
bottleneck as an opportunity to hasten the flow and reduce inventories. However, it
is important to note that setting up automated flow lines will not be suitable for
many industries
Q4. Write a detailed note on Crosby’s Absolutes of Quality and Taguchis Quality Loss Function.
Ans:
Crosby’s absolutes of Quality
Like Deming, he also lays emphasis on top management commitment and
responsibility for designing the system so that defects are not inevitable. He urged
that there be no restriction on spending for achieving quality. In the long run,
maintaining quality is more economical rather than compromising on its
achievement.
His absolutes can be listed as under.
(i) Quality is conformance to requirements – not ‘goodness’.
(ii) Prevention, not appraisal, is the path to quality.
(iii) Quality is measured as the price paid for nonconformance and as indexes.
(iv) Quality originates in all factions. There are no quality problems. It is the people,
design, process, who create problems.
Crosby also has given 14 points similar to those of Deming. His approach
emphasizes on measurement of quality, increasing awareness, corrective action,
error cause removal and continuously reinforcing the system, so that advantages
derived are not lost over time. He desires that the quality management regimen
should improve the overall health of the organisation and prescribed a vaccine.
The ingredients are:
1. Integrity honesty and commitment to produce everything right first time, every
time.
2. Communication Flow of information between departments, suppliers, customers
helps in identifying opportunities.
3. Systems and operations: These should bring in a quality environment so that
nobody is comfortable with anything less than the best.
6.5.3.4 Taguchi’s Quality Loss Function His contention is that quality comes
from design. He advocated a wide use of Design of Experiments for experimentation
on variables and obtain specifications which will result in high quality of the product.
It helps in bringing cost effective improvements in quality. He believed that
designers should make robust designs so that product can withstand the
variabilities which tend to be persistent and give quality for longer periods. His
objective in giving the loss function is to make manufacturers realize that it is the
target value of the specification that should be sought to be achieved and not the
permissible deviations. The loss caused is the square of the deviation multiplied by
a cost constant.
L = C (X-T) 2
L = Total Loss
C= Cost constant
X = average value of the quality characteristic
T = target value of the characteristic.
Taguchi also talks about losses to society because of a dent in quality both the
manufacturers and users in society who will have to endure the consequences of
reduced performance as long as the product is used.
Shane O'Leary, chief operating officer of the UK-Canadian group, will take over the reins from
Mr [Richard Anderson]. High hopes over the gas explorer's intentions to develop a field in
Algeria caused its share price to peak in 2005 but its failure to exploit the prospect has since
caused its share price to slump.
In spite of Mr [Khelil]'s views, FCP yesterday announced that Mr [Michael Kroupeev]'s proposed
slate of directors would now be recommended by management, making their election virtually
guaranteed, although two of his nominees would step down and make way for compromise
board members.
Mr Kroupeev, who controls nearly 10 per cent of FCP through an investment vehicle, also
sounded a conciliatory tone. "The minister has no grounds to be concerned. There has been no
change in control of the board. We are fully committed to developing this project." [Source : Proquest
: STANLEY PIGNAL. Financial Times. London (UK): Apr 15, 2008. pg. 20]
Question : Identify the major process of operations as applicable to this context and explain it in
detail?
Ans:
Initiating Processes because this process is initiated by management group
decision which results in the next phase of the project.
The two word phrase initiating process refers specifically to a particular group or processes, the
purpose of which is for the sole and express authorization by those who have the power to
make the determination as to when it may be feasible and or appropriate to resume work on any
particular work schedule activity that has been halted previously for one reason or another. This
authorization is traditionally coming on the heels of a redefinition of scope for the particular
activity phase or project which may then allow the particular activity to be restarted. The
initiating processes are quite typically performed by groups and individuals that are actually
outside of the actual scope of control within the project and rather, represent interested but not
directly controlling members of the organization, program, and or portfolio processes. These
individuals typically will weigh in and provide insight as to the initiating process for this particular
activity and or event.
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