ASSIGNMENTS- MBA Sem-II

MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

SMU
ASSIGNMENT
SEMESTER – 2
MBO028

PRODUCTION & OPERATIONS

MANAGEMENT

SUBMITTED BY:
SIDHARTH RAMTEKE
MBA
ROLL NO.- 520918813
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

Q1 Explain the various automated systems for transfer of materials

in the production plant? Illustrate your answer by considering an
example of an automobile showroom?
Ans: Basically, automation system comes to reduce labour power and time in
the production. Here we can see the evolution systems with some examples.
The goods requited by society were produces in small quantities by craftsman
who would know the need of the community and produced them by their own
hands with simple tools. The apprentices or by another craftsman, who would
make them to meet the requests made.

The parts and components used to make these machines had to be replaced
when they wore making parts so that interchangeability was achieved made
setting up standards And specifications important for meeting

The craftsmen gave way to engineers, workers, superiors and inspectors.

Division of labour became necessary to achieve efficiencies and the jabs that
became specialized. Competition has necessitated improved quality, reduced
sates and better services to the customer.

Automation systems cost huge sums of money and therefore a deep analysis
of the various factors has to be done. For services, automation usually means
labour saving devices in education, long distance learning technology helps in
supplementing class room instruction. The facilitating goods that are used are
web site and videos.

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

Some extent of automation can be designed even with customization i. e.

product or service a meant to produce or deliver low volume specific to a
requirement. The advantages of automation is it has low variability and will
be more consistent on a repetitive basis

The machines have sensing and control devices that enable them to operate
automobile. The simplest of them called machine attachments replace human
effort. They guide, locate, move and achieve revise position by means of
came, optical sensing. Load sensing mechanisms and activate the controls to
remove human intention.

Robots are higher in the order of automation as they perform a variety of

tasks. They are designed to move movements according to programmers
written into the computer that inside them

With the help of automation, inspection of component can be done 100%

ensures highest quality identification and movement of materials are helped
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

by bar codes which are read and fed into the system far monitoring quantity,
location, movement etc. They help the automated systems to start
information and provide information for effecting any changes necessary. To
make effective use of automated machines, we need to have the movement
of materials from and to different time as stores, automated,

Automated storage and Retrieval systems- ASRS- receive orders for

materials from anywhere in the production area, collect materials in the
works times. Computers and information systems are used for placing orders
for matters, give commands adjust inventory records which show the
location and quantity of materials needed. Automated guided vehicle
systems- AGVS – are pallet trucks and unit load carriers follow embedded
guide wires or paint strips to destinations as programmed.

In an automobile showroom we can see all the work automatically with latest
machine

Q2. State the important considerations for locating an automobile

plant? Collect information on layout planning of an automobile plant
from various sources and furnish the same.
Ans : To locate an automobile company or plant many thing should be
consider. For an automobile plant automated flaw lines, automated assembly
lines, flexible manufacturing systems, global transition rapid prototyping.
Building manufacturing flexibility things are necessity.

About the automated flow lines we can say it is a machine which is linked by a
transfer system which moves the parts by using handling machines which are
also automated, we have an automated flow line.

Human intervention ma is needed to verify that the operations ate taking

place according to standards. When these cab be achieved with the help of
automation and the processes
are conducted with self regulation, we will have automated flow lines
established.

In fixed automation or hard automation, where one component is

manufactured using services operations and machines it is possible to achieve
this condition. We assume that product life cycles are sufficiently stable to
interest heavily on the automate flow lines to achieve reduces cast per unit.

Product layouts ate designed so that the assembly tasks are performed in the
sequence they are designed at each station continuously. The finished item
came out at the end of the line. In automated assembly lines the moving
pallets move the materials from station to station and moving arms pick up
parts, place them at specified place and system them by perusing, riveting, &
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

crewing or even welding. Sensors will keep track of there activities and move
the assembles to the next stage.

The machines are arranged in a sequence to perform operations according to

the technical requirements.

The tools are loaded, movements are effected, speeds controlled

automatically without the need for worker’s involvement.
The flexibility leads to better utilization of the equipments. It reduces the
numbers of systems and rids in reduction of investment as well as a space
needed to install them. One of the major cancers of modern manufacturing
systems is to be able to respond to market Demands which have
uncertainties.

Prototyping is a process by which a new product is developed in small number

so as to determine the suitability of the materials, study the various methods
of manufactured, type of machinery required and develop techniques to over
come problems that may be encountered when full scale manufacture is
undertaken.

Prototypes do meet the specification of the component that enters a product

and performance can be measured on these.

It helps in con be reforming the design and any shortcomings can be rectified
at low cost.

Flexibility has three dimensions in the manufacturing field. They are variety,
volume and time. There demands will have to be satisfied. In that sense they
become constraints which restrict the maximization of productivity. Every
business will have to meet the market demands of its various products in
variety volumes of different time.

Flexibility is also needed to be able to develop new products or make

improvements in the products fast enough to cater to shifting marker needs.

Manufacturing systems have flexibility built into them to enable organization

meet global
demand. You have understood how the latest trends in manufacturing when
implemented
help firms to stay a head in business.

Q3 . Who are the players in a project management? What are the

various roles and
responsibilities of the players in a project management?
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

Ans : At first we will discuss about project management then we will discuss
about players in project management. Project management is the practice of
controlling the use of resources, such as cost, time manpower, hardware and
software involved in a project.

That starts with a problem statement and end with delivery of a complete
product.

Here we will see the participants of project management:

In the project management players individual and organizations both are

involved-

That is actively involved in the project whose interests may be affected by the
outcome of the project.

Exert influence over the project and its results players or also called “stake
holders’’ of the project

Project manager- the individual responsible for managing the project.

Customer- the individual or organization that will use the product- the end
result of the
project.

Performing organization- the enterprise whose employees are mast directly

involved in
doing the work of the project.

Sponsors- the individual or group within or external to the performing

organization that
funds the project.

Now, we will define the role and responsibilities of project management. Here
are some
roles and responsibilities:

There are number of projects which an organization works on. It is not possible
for one
individual to manage all the projects.

There is a team of mangers who manage the projects.

There may be different teams working an different projects.

ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

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

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

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

-the team members are responsible for the completion of the project as per
the plans of
the project.

Characteristics of project mindset: - some of the characteristics of project

mindset are the
following –

Time - it is possible to improve the pace of the project by reducing the time
frame of the process. The mindset is normally to work in a comfort made by
stretching the time limits.
Responsiveness – it refers to quickness of response of an individual. The
vibrancy and livens of an individual or an organization are proportional to its
capability of evolving process and structure for superior responsiveness time
constant.
Information sharing – information is owner information is the matter key to
today’s business. Information sharing is the characteristic of the project
mindset today.
Process – project mindset lays emphasis on flexible process. The major
difference in a process and a system is in its capabilities of providing flexibility
to different situational encounters. Flexible process possesses greater
capabilities of adaptability.
Structured planning – structure planning based a project management life
cycle enables one to easily and conveniently work according to the plan.

Q4. What are the various steps in project monitoring and controlling
a project?
Ans : Here we elaborate the project monitoring and control.

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

phases in a planned manner in order to meet the requirements. It only by
careful monitoring of the project progress. It required establishing control
factors to keep the project on the track of progress. The results of any stage in
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

a project, depends on the inputs to that stage. It is therefore necessary to

control all the inputs and the corresponding outputs from a stage. A project
management may use certain standard trolls to keep the project on track. The
project manager and the team members should be fully aware of the
techniques and methods to rectify the factors influencing delay of the project
and its product. The methodology of PERT (programmer Evolution Review
Technique) and CPM (critical path method) may be used to analyze the
project. In the PERT method one car find out the variance and use the
variance to analyze the various probabilistic estimates pertaining to the
project. Using the CPM one can estimate the start time and the finish time for
every event of the project in its WBS (work Breakdown Structure).

The analysis charts can be used to monitor, control, track and execute a
project. Typical PERT/ CPM exercise of a project are worked out at the end of
this sub unit- 9.2. The various steps involved in monitoring and controlling a
project from start to end are as follows-
1. Perlirninary work- the team members understand the project plans,
project stage schedule, progress controls, tracking the dules. Summary of
the members have to understand the tolerances in any change and
maintain a change control log. They mustrealize the need and importance
of quality for which they have to follow strictly quality agendas. They must
understand the stage status reposes, stage and reports, stage end
approval reports.

2. Project progress- The members must keep a track of the project progress
and communication the same to other related members of the project. They
must monitor and
control project progress, through the use of regular check points, quality
charts. Statistical
tables, control the quality factors which are likely to deviate from expected
values as any
deviation may result in change to the stage she duel

3. Stage control- The manager must establish a project check paint cycle. For
this suitable stage version control procedure may be followed.

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

5. Quality control- This is very important in any project: Quality control is

possible if the project member’s follow-

Schedule quality review, Agenda for quality review, conduct quality review and
follow up.
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

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

Progress control assesses- monitor performance, update schedule, update
casts, Re-plan
stage schedule, conduct team status review etc.

Along with we create status report, create flash reports, project status reports
etc.

7. Approvals - lastly, project sage reviews and the decisions taken and actions
planned need to be approved by the top management. The goals of such
review are to improve quality by finding defects and to improve productivity
by finding defects in a cost effective manner. The group review progress
includes several stage like planning, preparation and overview, a group review
meeting and rework recommendation and follow-up.

Q5. Explain the necessity and objectives of SCM?

Ans : SCM is the abbreviation of supply chain Management. It is considered by
many express worldwide as the ultimate solution towards efficient enterprise
management.

Now, we explain the necessity and objectives of SCM

SCM is required by and enterprise as a tow to enhance management

effectiveness with a following organizational objective:

Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP,

Accounting. Software and Documentation like financial reports statements ISO
9000 Documents etc.

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communication systems,

documentation system and secure, Design R&D systems etc.

Better utilization of resources- men, material, equipment and money.

Optimization of money flow cycle within the organization as well as to and

from external agencies.

Enhancement of value of products, operations and services and consequently,

enhancements of profitability.
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

Enhancement of satisfaction level of customer and clients, supporting

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

Enhancement of flexibility in the organization to help in easy implementation

of schemes involving modernization, expansion and divestment, merges and
acquisitions.

Enhancement of coverage and accuracy of management information systems.

With the objectives of SCM its implementation are required. Implementation is
in the form of various functional blocks of an organization interpenetrated
through which a smooth flow of the product development is possible.
A relatively new SCM option involves web based software with a browser
interface. Several electronic marketplaces for buying and selling goods and
materials.

Q6. What are the steps involved in SCM implementation?

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
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

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
ASSIGNMENTS
Subject code: MB0028
Set 2

Q1. Explain how material flow information helps in work centre

decision. Consider
the example of a shopping centre to illustrate your answer.
Ans : The decision which involves during uses of material flow information has
below-

A work center is a production facility comprising of one or more machines and

one or more workmen considered as a single unit for purposes of estimation of
capacity. This unit may have a single operation or a number of them
conducted on the input items. In the pipeline of production, each work center’s
contribution is vital as materials are scheduled, routed and loads to be sent to
it.

In most organization, they are even considered as cash centers. Location trust
means relative position of different centers so as to minimize the movement
of materials, meet technological sequences, to reduce congestion, maximize
throughput, improve part tracking ability and avoid repetitive movements. In
addition another consideration is to provide for expansion of production.

Each work center receives information along with material that enter it the
material also leaves the word center with information. The route sheet
contains information about the material, process, quantities, and inspection
procedures. Etc. the drawings or instructions tell the condition of the malarial
of entry and the required condition at exit.

In this sense every operation consists of material transformation occurring on

the basis of information. Activities conducted are on the basis of information
that flows with material. Different locations have to accommodate the
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

constraints of the basis of darning maximums benefit of the information that is

available. Basically, each location is determined on the basis of from and to:
where does it receive material goes. Some centers have to close as a matter
of necessity, some need not to be and some need to be as for away as
possible.

This aspect has been given a rating scale in terms of alphabets as under:
• Absolutely necessary to be close
• Essential to be close
• Ordinary closeness
• Ordinary closeness
• Unimportant that they are close or not
• Not desirable that the centers are close

It can be seen that this is only a guide for Indian location as the work centers
as there will
many competing factors that have to be accommodated.

Q2. What are the reasons for failure of a project? Give suitable
examples.
Ans: 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
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

• Effective scoping planning, estimation, execution, controls and

reviews, project bottlenecks
• Communication and managing expectations effectively with
clients, team merits and
• stake holders
• Prior expectance of PM in a similar project

Overview of information and communication Technologies (ICT) project:

Involve information and communication technologies such as the word wide

web, e-mail,
fiber-optics satellites
Enable societies to produce, access, adapt and apply information in greater
amount, more
rapidly and at reduce casts
Offer enormous opportunities for enhancing business and economic viability
Common problems encountered during projects
No prioritization of project activity from an organizational position
One or more of the stages in the project mishandled
Less qualified non-dedicated manpower
Absence of smooth flow of communication between the involved parties

These basic reasons lead a project to failures. In the project failures business
management
and project management is directly involved. From the management point of
view it is basic things to care above topics to success of a project. Project is
the core business of a company. In the MBA assignment its role has been
defined from the management prospective.

Q3. Explain the various phases in project management life cycle?

Ans: This is the initial phase of any project. In this phase information is
collected from the customer pertaining to the project and the requirements
are analyzed. The entire project has to be planned and it should be done in a
strategic manner. The project manager conducts the analysis of the problem
and submits a detailed report to the top project justification, details on what
the problem is a method of solving the problem, list of the objectives to be
achieved, project budget and the success rate of completing the project. The
report must also contain information and the project feasibility, and the risks
involved in the project.

Project management life cycle is the integrated part of management. It is

attach with
project responsibility or failure of a project. For the MBA assignments it is the
most
valuable chapter in production management.
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

The important tasks of this phase are as follows:

Specification Requirements Analysis (SRA): It has to be conducted to
determine the essential requirements of a project in order to achieve the
target.

Feasibility study: To analyze whether the project is technically, economically

and practically feasible to be undertaken.

Trade off analysis: To understand and examine the various alternatives which
could be considered.

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

System design: Choose a general design that can fusil the requirements.

Project evolution: Evaluate the project in terms of expected profit, cost and
risks involved
marketing phase.

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

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

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

Execution phase: In this phase the project manager and the teams members
work on the
project objectives as per the plan. At every stage during the execution reports
are prepared.

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

Closure and post completion analysis phase upon satisfactory completion and
delivery of
the intended product or service the staff performance has to be evaluated.
Document the
lessons from the project. Prepare the reports on project feedback analysis
followed by the
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

project execution report.

The phase which involve in the above are:

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

The next stage involves selecting and briefing the project team about the
proposals followed by discussions on the roles and responsibility of the project
member and the organization.

The project management life cycle:

A Life cycle of a project consists of the following:

Understanding the scope of the project

Establishing objectives of the project

Formulating and planning various activities

Project execution and

Monitor and control the project resources

Q4. What are the seven principles of SCM?

Ans: Seven principles of SCM are:
Group customer by needs- Effective SCM groups, customer by distinct service
needs, regardless of industry and then tailors services to this particular
segment.

Customize the logistic network- In designing their logistics network; companies

need to focus on the service requirement and profit of the customer segments
identified.

Listen to signals of market demand and plan accordingly- Sales and operations
planners must monitor the entire supply chain to detect early warning signals
of changing customer demand and needs. This demand driven approach leads
to more consistent forecast and optimal resource allocation.

Differentiate the product closer to the customer- companies today no longer

can afford to stock pile inventory to compensate for possible forecasting
errors. Instead, they need to postpone product differentiation in the
manufacturing process closer to actual consumer demand. This strategy
allows the supply chain to respond quickly and cost effectively to change in
customer needs.
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

Strategically manage the sources of supply- by working closely with their key
suppliers
to reduce the overall costs of owning materials and services; SCM maximizes
profit margins both for themselves and their suppliers.

Develop a supply chain wide technology strategy- as one of the cornerstones

of successful SCM information technology must be able to support multiple
levels of decision making. It also should afford a clear view and ability to
measure the flow of products, services and information.

Adopt channel spanning chain performance measures- Excellent supply chain

performance measurement system do more than just monitor internal
functions. They apply performance criteria to every link in the supply chain-
criteria that embrace both service and financial metrics

Q5. Explain what is meant by bullwhip effect and how it could be

prevented?
Ans: An organization will always have ups and downs. It is necessary that the
managers of the organization keep track of the market conditions and analyze
the changes. They must take decisions on the organization to meet the market
demands. Failing to do so may adversely affect the functioning of the
organization resulting in lack of coordination and trust among supply chain
members. The changes may effect the information and may lead to demand
amplification in the supply chain. The bullwhip effect is the uncertainty caused
from distorted information flowing up and down the supply chain. This has its
affect on almost all the industries, poses a risk to firms that experience large
variations in demand. And also these firms which are dependent on suppliers,
distributors and retailers.

A bullwhip effect may arises because of-

Increase in the lead time of the project due to increase in variability of

demand
Increase in the stock to stock to accommodate the increasing demand arising
out of
complicated demands models and forecasting techniques
Reduced service levels in the organization
Inefficient allocation of resources
Increased transportation cast

How to prevent it?

Bullwhip effect may be avoided by one or more of the following measures-

Avoid multiple demand forecasting
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

Breading the single orders into number of batches of orders

Stabilize the prices avoid the risk involved in overstocking by maintaining a

proper stock
Reduce the variability and uncertainty in paint of sale (POS) and shaving
information
Reduce the lead time in the stages of the project

Always keep analyzing the past figures and track current and future levels of
requirements

Enhance the operational efficient and outsourcing logistics to capable and

efficient agency

Q6. What do you understand by Line Balancing? What is the

importance of order picking in material handling? Give suitable
examples.
Ans: Production lines have a number of work centers in a particular sequence
so that the material that gets proceed has to move further without
encountering any bottlenecks. The quantities produced the rate of production
at each center, the number of operations and the total production required are
factors taken into account.

The purpose of taking place between work centers and minimum inventory
gets created.
We use the principles of JIT and lean Manufacturing to achieve these. Linear
programming, Dynamic programming and other mathematical models are
used to study
these problems.

In order picking important pants are:

Order picking is a process by which items of products for supply is to be made

haves to
be retrieved from specific storage location. It is found to take 60% of labour
activities in the warehouse. Since it is critical to the business to meet
customer’s demand expeditiously and accurately, lot of attention is being
given to this aspect of operations. In the manufacturing arena, we desire to
move towards small lot sizes and cycle time reductions.

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

Material Handling:
ASSIGNMENTS- MBA Sem-II
MB0028 – PRODUCTION & OPERATIONS MANAGEMENT

The purpose is to take the job through the technological steps in which the
processing needs to be done for the transformation that is to be effected on
the material that is getting processed. The major concerns are about the
quantities that need to be processed and the time that the different
operations required. In case the product has to enter assembly, along with
other parts that are being manufactured parallel, will all the required parts
arrive at that point at the same time. Some components may be outsourced.
To handle different parts, we have material handling equipments such as
cranes lifting forks, trucks etc.

The problem for the manager is the limited supply of these equipments and
the need to optimize utilization of the equipment and see that the
manufacturing line has smooth flow. Our concern is to reduced inventory,
minimums movement and timely availability.