MB0044-PRODUCTION AND OPERATION MANAGEMENT

ASSIGNMENT Set- 1
Ques1. Explain in brief the origins of Just in Time. Explain the different types of wastes
that can be eliminated using JIT.
Ans.Just in time were developed to minimize wastage across the organization. If a firm is optimistic
about the demand, then that firm increases their planned inventories. On the other hand if the
demand is weak when compared to the expectations, then that firms unplanned inventories are
high. That means companies dont keep a lot of excess inventory, then manufacture a product as an
order comes in. It is management philosophy of continuous and forced problem solving.
The seven types of wastes to be eliminated according to JIT are
:
1

Over production

Over production is to manufacture products before it is actually needed. If the demand for that
product decreases, the extra parts or products produced may not be useful or needed. Also over
production results in high storage costs and is also difficult to detect defects. So, over
productions is considered a waste.
2

Inventory.

Excess procurement or production builds up stock of materials which are not immediately use,
this locking space and fund carrying heavy cost.
3

Waiting time.

Waste of time happen when goods are not moving or being processed. The operator, the
machine or the part will either be not working or be worked upon. The duration is can be said to
be unproductive and may create more serious consequences.
4. Movement
Any unnecessary movement is a waste of energy; it causes blockages, disrupting movements and
delaying the flow of other items creating delays.
5. Effort:
The people, who work, do not make a study as to how the products on which they are making are
utilized and do not realize the purpose for which they are made. This lack of education will lead
to waste of resources. Finally, they end up in shortage of resources when needed.
6.
products.

Defective

The defective products leads to a tremendous loss to the company. This is because they use up
the same equipments, workmen and the time that would be used to make good products.
Thus defective products use up resources and result in losses.

7. Over Processing
Some steps like unnecessary processing or production do not add value to the final output. As
a results, it is waste of all the inputs that go into the process.
Q.2

What is value engineering or value analysis ? Elucidate five companies which

have incorporate VE with brief explanation.

Ans. Value of engineering (VE) or value Analysis is a methodology by which we try to find
substitutes for a product or an operation.
The concept of value engineering originated during the second world war. It was developed by the
General Electric corporations (GEC). Value Engineering has gained popularity due to its potential for
gaining high Returns on investment (ROI). This methodology is widely used in business reengineering, government projects, construction, assembling and machining processes, health care and
environmental engineering, and many others. Value engineering process calls for a deep study of a
product and the purpose for which it is used, such as the raw materials used; the processes
of transformation; the equipment needed, and many others. It is also questions whether what is
being used is the most appropriate and economical. This applies to all aspects of the products.
1. GENERAL ELECTICALS CORPORATION (GEC)
The concepts of value engineering originated in 1947 in General Electricals corporation (GEC) When
a substitute for asbestos for flooring had to be found. Specialized dealers could provide an equally
good material at a lesser price.
Initially, the practioners were the people in charge of purchasing who tried to locate substitute
material which would be equally good, if not better, at a lower price. This the first and basic
approach to value engineering. A the concept percolated to the manufacturing departments, engineers
applied the same principles and found that, they could use alternate materials, which were cheaper
giving the same performance. It was also fund that dimensions and tolerance could be altered without
affecting the performance of the part or the product. The investigations took them on the path of
eliminating some operations. The focus was on the value of each bit materials, each operation. This
approach led to the design stage.
2. ASHOK LEYLAND.
In implementation of VA, Ashok Leyland changed gear material from phosphor bronze to a
less expensive cast iron and eliminated frequent field complaint of gear seizure in trucks.
3. TVS.
T.V. Sundaram Lyenger (TVS) Limited is one of the largest automobile distribution companies
in
India.
During the mid 1940 to 1960s, TVS based in Madurai was ranked as the best bus transportation
system in India. It could manage to run the fleets for about 96% of the time. TVS used the VE
approach to

restore the mobility of buses that had broken down. They stocked their garage with some critical
assemblies of a bus. Whenever, a part or an assembly failed of a bus, they replaced it immediately
with a new one, thus restoring mobility within a couple of hours.
When compared to the traditional method, this approach has gained much more benefits to
the company, it helped to save time, reduce cost, efficient, quicker, and competitive.
4. MODI XEROX.
Modi Xerox designed the VE-d low cost copier 1025 ST, which uses a single tray. The advantage
of new design is that it is easy to operate and the cost is also very low.
5. TITAN
Titan watches introduced new designs adopting a strategy of innovation.
Q.3 Explain different types of quantitative models. Differentiate between work study
and motion study.
Ans.

There are different quantitative models.

1. LINEAR PROGRAMMING: Linear programming technique is often used for optimizing

a given objective like; profit or revenue maximization, or cost outgo minimization.

Distribution of the revenues is the critical issue, when there are limited resources and they
have to meet competing demands.
2. TRANSPORTATION MODEL: Transportation model is concerned with goods from

manufacturing centres or warehouses which have to be supplied to depots or retails

outlets. The demand and supply position of the places where they are required or produced
and the cost of transportation are considered in the model. We use this model to economize.
3.

ASSISGNMENT MODEL: Allocating jobs or persons to machines, awarding

different projects to contractors is done so that maximum returns occur or less expenses are
incurred. Hence, calls for the use of this model.

4. INVENTORY CONTROL MODEL: Inventory control model

considers the: Frequency of placing orders.

Quantities per order considering the cost of placing an
order. Number of pieces that are to be kept in reserve.
Rate of consumption.
Lead time required for the supplier.
Cost involved in storage.

We have different models which give solutions to optimization depending upon

the probabilities of consumption and supply.

5.

WAITING LINE MODELS: Queues are formed when the rate of services is at a
variance with the rate of arrival. They are formed when the rate of production is less at
particular points compared to the previous one. Sometimes we see multiple service points and
a single queue are formed for feeding them. Number of items which includes the following is
studied with some special techniques.
People to be serviced.
Rate of service
Type of queue discipline that is intended to be
followed. Policy of priority
Tolerable amounts of waitin
Others.

6.

SIMULATION MODELS: Simulation models are used when we will not be able to
formulate mathematical model. So, we develop a model which resembles a real life
situation. Based on this pattern, we predict and plan our procurement, production, delivery
and other actions.

7. PERT (PROJECT EVALUATION AND REVIEW TECHNIQUE) AND

CPM (CRTICAL PATH METHOD) MODELS: When projects are undertaken with a
number of activities, some happens in sequence, with gaps of weeks or months and some
happens simultaneously. It is important to estimate the time required for completion of the
project. A lot of coordination is needed while supplying the resources. It is also equally
important to identify the bottlenecks and smoothen resources so that time schedules are
maintained.

Work study

Motions study.

We can say that work study is being conducted Method study is on studying the method currently
when analysis of work methods is
being used and developing a new method
conducted during the period when a job is
of performing the task in a better way.
done on a machine or equipment.
The study helps in designing the optimum work Operation flow charts, motion charts, flow process
method and standardization of the work charts, which are the elements of the task are
method.
studied to find the purpose of each activity, the
sequences in which they are done, and the effect of
these on the work.

The study enables the methods engineer The study may help in changing some of them and
to
even eliminate some of them to effect improvements.
search for better methods for higher
utilization of
man
and machine and
accomplishment of higher productivity.
The study gives an opportunity to the workmen The new method should result in saving of time,
to learn the process of study thus making
reduced motions and simpler activities.
them able to offer suggestions for improved
methods.
Q.4
What is rapid prototyping ? Explain the difference between Automated flow line
and
Automated
assembly
line
with
examples.
Ans. Prototyping is a process by which a new product is developed in small
numbers. Prototyping is helpful to:
Determine the suitability of the materials
Study the various methods of
manufacture Determine type of
machinery required
Develop techniques to overcome problems that may be encountered when full
scale manufacturing is undertaken.
Prototype do meet the specification of the components that enter a product and performance can be
measured on those. It helps in confirming the design and any shortcomings can be rectified at low
cost. If serious defects or problems arise during manufacturing, a thorough change in design or even
its replacement may be considered. Toa arrive at decisions and to make use of the advantageous
stated above, it is important that the prototypes are made within the shortest possible time, Rapid
prototyping facilities this.
The advanced Rapid Prototype Modelling Processes
are:

Computer Aided Design (CAD)

Selective Laser Sintering (SLS)
Fused Deposition Modelling
(FDM)
Lamination Object Manufacturing
(LOM) Electronic Beam Melting (EBM)
Different between Automated Flow lines and Assembly Flow line.
AUTOMATED FLOW LINES

ASSEMBLY FLOW LINES

Several Automated machines are linked by a All equipments are needed to in automated Assesmbly
transfer system.
line
Handling machine have main role to move semi All equipments make role of making sub-assemblies
finished product to the next stage.
put together and fitted.
Semi-finished
activities.

products

are

the

main

core Here Sub-assemblies product are the core activites.

Here raw materials are achieving to get required Here intermediated products are achieving to get
shapes and acquire special properties.
finished product.
The materials are needed to be moved, held, Here All parts or sub-assemblies are fitted to enables
rotated, fitted and positioned for
the product to be in readiness to perform the
completing different operations.
function it was designed to. This process is called
assembly.
Human intervention may be needed to verify that No human intervention is needed, methodologies
the operations are taking place according to are
framed to achieve the final result, basic principle is to
standards.
fit parts together and ensure linkages so that the
functions are integrated and give out the desired
output.
Q.5 Explain Break even Analysis and centre of gravity methods. Explain product layout
and process layout with examples.
Ans. Break even analysis
Every manufacturing company will have three major contributors to cost;
1. Investments made for land, plant and machinery resulting in interest and depreciation.
2. Recurring expenses, which are not proportional to the quantity of production.
3. Variable costs, which are directly proportional to the quantity produced.

For our calculations, we combine the first two costs together and call them fixed costs. We call those
costs that depend on the quantity of production as variable costs.
We compare the total costs for different locations on estimated amounts per annum and
select whichever locations costs the least. However we will have to consider the possible variations
in production levels during the foreseeable time spans and take decision.

CENTRE OF GRAVITY METHOD.

Centre of gravity method is used mainly
when;
Transportation costs, either for distribution of products or collection of materials from
different suppliers is the main criterion.
Production rates are high.
The volume and weights of materials that have to be moved are huge.
Time taken either to receive materials from suppliers or delivery to customers is critical.
It is better to locate the facility at such a place, which caters to the different points most optimally.
The vital factor is the load, that is, number of items, or the weights that need to be moved from the
central location to the existing or demanding point. We use this method when, both distance and load
have to be considered for optimality in terms of costs.
PRODUCT LAYOUT
Product layout is also called as production lines or assembly lines. They are designed and laid out in
such a way that only few products are capable of being manufactured or assembled. Materials flow
through the various facilities. These use special machines to perform specific operations to
produce

only one product at one time. So, companies should set different set of machines for different
products. Workers perform a narrow range of activities to complete the operations on the product as it
moves in a flow line. The operation times, the sequence of movements and routing procedures are
highly standardized to meet production requirements which are synchronized with many such
products to complete finished goods to meets demands. Using special machines and implementing
standardization in operations have many advantages which are listed below:
The skill required of the workers is low
Supervision is minimal
Training needs are small
Precautions to be taken
are:
Constant check on the processes needs to be performed so that quality is assured.
Corrective measures have to be implemented to avoid rejections, since, the quantities that
get manufactured will be continuous.
Check for the behavioral of the worker. As jobs are repetitive, workers tend to be bored
and lose concentration. This may affect productivity and quality.
Example:Let us consider an examples of a stainless steel manufacturing industry, in which the
operations turning, milling and drilling happen in a sequence. Testing is performed in each process to
assure the quality. The items are then sent to the assembly block. The items that arrive for assembly
are either bought out items or made item components from elsewhere in the plant. The final
product
inspection is made and send to the packing
dispatch.

TURNING
OPERATION

MILLING
MACHINES

DRILLING
MACHINES

PACKING
DISPATCH

INSPECTION

ASSSEMBLY

PROCESS LAYOUT
DESIGN OF PROCESS LAYOUT
The analysis involved in the design of production lines and assembly lines relates primarily
to timing, coordination, and balance among individual stages in the process.
For process layouts, the relative arrangement of departments and machines is the
critical factor because of the large amount of transportation and handling involved.
PROCEDURE FOR DESIGNING PROCESS LAYOUTS

Process layout design determines the best relative locations of functional work centres.
Work centres that interact frequently, with movement of material or people, should be
located close together, whereas those that have little interaction can be spatially separated.
One approach of designing an efficient functional layout is described below.
1. List and describe each functional work centre.
2. Obtain a drawing and description of the facility being designed.
3. Identify and estimate the amount of material and personnel flow among work centres
4. Use structured analytical methods to obtain a good general layout.
5. Evaluate and modify the layout, incorporating details such as machine orientation,
storage area location, and equipment access.
The first step in the layout process is to identify and describe each work centre. The description
should include the primary function of the work centre; drilling, new accounts, or cashier; its
major components, including equipment and number of personnel; and the space required. The
description should also include any special access needs (such as access to running water or an
elevator) or restrictions (it must be in a clean area or away from heat).
For a new facility, the spatial configuration of the work centres and the size and shape of
the facility are determined simultaneously. Determining the locations of special structures and
fixtures such as elevators, loading docks, and bathrooms becomes part of the layout process.
However, in many cases the facility and its characteristics are a given. In these situations, it is
necessary to obtain a drawing of the facility being designed, including shape and dimensions,
locations of fixed structures, and restrictions on activities, such as weight limits on certain
parts of a floor or foundation.

Fig 2.11 Relationship flow diagram

To minimize transport times and material-handling costs, we would like to place close
together those work centres that have the greatest flow of materials and people between
them.
To estimate the flows between work centres, it is helpful to begin by drawing relationship
diagram as shown in Fig. 2.11.
For manufacturing systems, material flows and transporting costs can be estimated reasonably
well using historical routings for products or through work sampling techniques applied to
workers or jobs. The flow of people, especially in a service system such as a business office or a
university administration building, may be difficult to estimate precisely, although work
sampling can be used to obtain rough estimates.
The amounts and/or costs of flows among work centres are usually presented using a
flow matrix, a flow-cost matrix, or a proximity chart.
Q.6 Explain Jurans Quality Trilogy and Crosbys absolutes of quality. List out the pillars
of total productive maintenance.
Ans. JURANS QUALITY TRIOLOGY
Juran uses his famous universal Breakthrough Sequence to implement quality programmes.
The universal break through sequences are ;
Proof of need: there should be a compelling need to make
changes.
Project identification: here what is to be changed is identified. Specific projects with time
frames and the resource allocation are decided.
Top management commitment: Commitment of the top management is to assign people and
fix responsibilities to complete the project.
Diagnostic journey: Each team will determine whether the problems result from systemic
causes or are random or are deliberately caused. Root causes are ascertained with utmost
certainty.

Remedial Action: This is the stage when changes are introduced. Inspection, testing, and
validation are also included at this point.
Holding on to the gains: the above steps results in beneficiary results. Having records or all
actions and consequences will help in further improvements. The actions that results in the
benefits derived should be the norm for establishing standards.
JURAN HAS CATEGORISED COST OF QUALITY IN TO FOUR CATEGORIES:
1. Failure costs internal: These are cost of rejections, repairs in terms of materials, labour,

machine time and loss of morale.

2. Failure costs-External: These are cost of replacement, on-site rework including spare parts

and expenses of the personnel, warranty costs and loss of goodwill.

3.

Appraisal costs:
These are cost inspection, including maintenance of records,
certification, segregation costs, and others.

4. Prevention costs: Prevention cost is the sequence of three sets of activities, Quality planning,

Quality control, and Quality improvement, forming the triology to achieve TOTAL
QUALITY MANAGEMENT.
JURANS ARGUMENT SAYS THAT;
Quality is the result of good planning consideration the needs of both internal and external
customers and develops processes to meet them. The processes are also planned to meet them.
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, and other. All these have to follow standards and control exercises to
make sure that mistake do not occur often and that if mistakes do occur then they are
corrected at the source.
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 an encourage the employees to be on lookout for opportunities for improvement.
CROSBYS ABSOLUTES OF QUALITY
Like Deming, Crosby 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 than
compromising on its achievement. His absolutes can be listed as under:
Quality is conformance to requirements, not
goodness Prevention, not appraisal, is the path to
quality.

Quality is measured as the price Paid for non-conformance and as indices

Quality originates in all factors. There are no quality problems. It is the people designs
and processes that 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 opined that
the quality management regimen should improve that overall health of the organization and
prescribed a vaccine. The ingredients are.
1. Integrity: Honesty and commitment help in producing everything right first time, every time.
2. Communication: Flow of information between departments, suppliers, customers helps

in indentifying opportunities.
3. Systems and operations: These should bring in a quality environment so that nobody is

comfortable with anything less than the best.

TOTAL PRODUCTION MAINTENANCE (TPM)
Maintenance is a function in any operations system. Maintenance keeps the equipments in good
condition. Generally equipments deteriorate because usage wear to the parts introducing
inaccuracies on the products made on them. When the deterioration produces components which
exceeds the permitted deviations rendering them unacceptable, maintenance is undertaken to
bring back the machine to produce acceptable components. Sometimes the failure is sudden and
serious and the equipment stops working. Disruption of production and emergency repairs
works are costly and schedules are missed causing delays in supplies and consequent losses. These
breakdowns occur because the equipment was carrying hidden defects which were not apparent. All
theses are attended to by the maintenances department. Historical records indicate the probability of
failures over different periods thus enabling us to plan to attend to them. With progress in
automation, we have costly equipments. We have flow lines and any one machine breaking down
causes a series of machine to be idle. So, we have to move towards zero breakdowns like we want to
move towards zero defects by implementing TQM Tools.
TPM puts the responsibility of maintenance where it belongs to and the operator who uses
the equipment. It is a companywide activity which involves all the people. The main thrust is
eliminating all break downs. The focus is on the operating personnel because they would know about
malfunctioning earlier and more than anybody else. They work on the machine and are aware of the
slightest variations that occur and thus should be able to plan to remove the cause before it becomes
serious. So every planned maintenance activity reduces the probability of a breakdown, Ownership of
the operation and machine increases the commitment of the workmen. Autonomy is the starting point
for learning and excellence. The worker can suggest better ways of improving quality,
productivity, and design. This help in continuous improvement, Team work and participation
improves the quality culture. The principles of 5S- the housekeeping activities which improve
efficiency at workplace is considered a measurable standard to aid the implementation at TPM even
in the office rooms.

ASSIGNMENT Set- 2
Q1. Explain logical process modelling and physical process modelling. what are the
ingredients of business process?

Ans. Logical process modelling

Logical process modeling is the representation of putting together all the activities of business
process in details and making a representation of them.The initial data collected need to be arrange in
a logical manner so that, links are made between nodes for making for the workflow smooth. The
steps to be followed to make the work smoother are given below:
1. Capture relevant data in detail to be acted upon.
2. Establish controls and limit access to the data during processes execution
3. Determine which task in the process is to be done and also the subsequent task in that process.
4. Make sure that all the relevant data is available for all the tasks.
5. Make the relevant and appropriate data available for that task.
6. Establish a mechanism to indicate acceptance of the results after every task or process. This
is to have an assurance that flow is going ahead with accomplishments in the desired path.
Some of these activities may occur in a sequential order whereas, some of them run parallel.
There may even be circular paths, like re-work loops. Complexities arise when the processes
activities are not connected together.
Logical processes model consists of only the business activities and shows the connectivity among
them. The process model is a representation of the business activities different from the technology
dependent ones. Thus, we have a model that is singularly structured only for business activities.
Computer programmes are also present in the total system. This allows the business oriented
executives to be in control of the inputs, processes and outputs. The logical process model improves,
control on the access to data. It also indentifies, who is in possession of data at different nodes in the
dataflow network that has been structured.A few of the logical modeling formats are given below.
1. Process Descriptions with task sequences and data addresses.
2. Flow chart with various activities and relationships
3. Flow diagrams
4. Function hierarchies
5. Function dependency diagram
Every business activity, when considered as a logical process model, can be represented by a
diagram, it can be decomposed and meaningful names can be given to the details. Verb and
noun form combinations can be used to describe at each level. Nouns give the name of the activity
uniquely and are used for the entire model meaning the same activity.
PHYSICAL PROCESS MODELLINGPhysical process modeling is concerned with the actual
design of data base meeting the requirement of the business.

Physical modeling deals with the conversion of the logical model into a relation model. Object gets
defined at the schema level. The objects here are tables created on the basis of entities and attributes.
A database is defined for the business. All the information is put together to make the database
software specific. This means that the objects during physical modeling vary on the database software
being used. The outcomes are server model diagrams showing tables and relationships with a
database.BELOW ARE THE INGREDIENTS OF BUSINESS PROCESS.
The ingredients that might be used in a business process can be briefly outlined as shown
below.
The data which accomplishes the desired business
objective.
Acquisition, storage, distribution, and control of data which undertakes the process
across tasks.
Persons, teams, and organizational units which helps to perform and achieve the
tasks. Decision which enhances the value of data during the process.

Q.2 Explain project management knowledge areas.with an example explain work breakdown
structure.
Ans. The knowledge areas of project management are the
following:
Project integration management, cost management, communications
management. Project scope management, quality management, risk
management.
Project time
management.

management,

human

management,

procurement

For a project to be successful, it is necessary to understand its relationship with other

management disciplines. Other management supporting disciplines are business legal issues,
strategic planning, logistics, human resource management, and domain knowledge.

WORK BREAK DOWN STRUCTURE.

The entire process of a project may be considered to be made up on number of sub process placed in
different stage called the work breakdown structure (WBS).
WBS is the technique to analysis the content of work and cost by breaking it down into its
component parts. Projects key stages from the highest level of the WBS, which is then used to show
the details at the lower levels of the project. Each key stage comprises many task identified at the
start of planning and later this list will have to be validated.
WBS is produced by indentifying the key elements, breaking each elements down into
component parts and continuing to breakdown until manageable work packages have indentified.
These can then be allocated to the appropriate person. The WBS does not shown dependencies other
than a grouping under the key stages. It is not time based- there is no timescale on the drawing.
Chart showing the example of work break down structure.A Work Breakdown Structure
is a results-oriented family tree that captures all the work of a project in an organized
way. It is often portrayed graphically as a hierarchical tree, however, it can also be a
tabular list of "element" categories and tasks or the indented task list that appears in
your Gantt chart schedule. As a very simple example, Figure 1 shows a WBS for a
hypothetical banquet.EXAMPLE 1.

EXAMPLE -2

Q.3 Take and example of any product or project and explain project management life
cycle. Ans. A life cycle of a project consists of the following steps.
Understanding the scope of the project.
Establishing objectives of the projects
Formulating and planning various
activities. Executing the project
Monitoring and controlling the project
resources. Closing and post completion analysis
6 PHASES OF PROJECT MANAGEMENT LIFE CYLCE.
1. Analysis and evaluation phase.
2. Marketing phase
3. Design phase
4. Execution phase

5. 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. In this phase, information is collected from the customer
pertaining to the project. From the collected information, the requirements of the project
are analyzed. According to the customer requirement, the entire project is planned in a
strategic manner. The project manager conducts the analysis of the problem and submits a
detailed report to the top management.
2.

MARKETING PHASE: A project proposal is prepared by a group of people

including the project manager. This proposal has to contain the strategic adopted to market
the product to the customer.

3. DESIGN PHASE: Design phase involves the study of inputs and outputs of the various

project stages.
a. Inputs received consist of project feasibility study, preliminary project

evaluation details, project proposal, and customer interviews.

b. Outputs produced consist of system design specifications, functional specifications

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

4. EXECUTION PHASE In execution phase, the project manager and the term members

work on the project objectives as per the plan. At every stage during the execution, reports are
prepared.
5. Control- inspecting testing and delivery phase: During this phase, the project

teams works under the guidance of the project manager. The project manager has to ensure
that the team working under him is implementing the project designs accurately. The
project has to be tracked or monitored through its cost, manpower, and schedule. The
project manager has to ensure ways of managing the customer and marketing the future work,
as well as ways to perform quality control work
6. Closure and post completion analysis phase: Upon satisfactory completion and

delivery of the intended product or service the staff performance has to be evaluated. The
project manager has to document the lessons from the project. Reports on project feedback
are to be prepared and analyzed. A project execution report is to be prepared.

Let us have a quick recap of what is involved in the above phases

a. Analysis and evaluation phase: The preparation stage involves the

preparation and approval of project outline, project plan, and project budget.

b. Assigning task to the team members: The next stage involves selecting and

briefing the project team about the proposals, followed by discussions on the roles
and responsibilities of the project member and the organization.
c.

Feasibility study: The feasibility or research stage establishes whether the

project is feasible or not and establishes the risk factors likely to be faced during the
course of the project execution and the related key factors to overcome the problem

d.

Execution phase: A detailed definition and plan for the project and its
execution is prepared by the team and coordinated by the project manager.

e. Implementationstage: The implementation stage involves the execution of the

project as per the plan, this also involves careful monitoring of the project
progress and managing the changes, if any, within the scope of the project framework.
7. Closure and post completion analysis phase: The final stage involves satisfactory

delivery of the product/service to the customers. Upon completion, a project review is to be

conducted by the project manager along with team member, sponsors, and customer. A
project review process involves discussions about the progress, performance, hurdles that
were overcome and problems faced , so that, such instances could be avoided in future
projects.
Example No.1

Example No.2
Example No.3

Q.4 Explain pmis. what is difference between key success factor (ksf) and knowledge (k) factor ?
explain with examples.
Ans. Pmis (project management information system)
An information system is mainly aimed at providing the management at different levels with
information related to the system of the organization. It helps in maintaining discipline in the
system.
An information system dealing with project management tasks is the project management
information system. It helps in decision making in arriving at optimum allocation of resources. The
information

system is based on a database of the organization. A project management information system also
hold schedule, scope changes, risk assessment and actual results.

WHO NEEDS INFORMATION AND WHY?

Upper managers

Project manager and department

managers

Project team members

To know information on all project regarding progress, problem,

resource usage, costs and project goals. This information
helps them take decisions on the projects. They should review
the projects at each milestone and arrive at appropriate
decision.
To see each project schedule, priority and use of resources to
determine the most efficient use across the organization.

To see schedule, task lists and specification so that they know

what needs to be done next.

The fours majors aspects of a PMIS

are:
1. Providing information to the major stakeholder.
2. Assisting the team members, stakeholders, managers with necessary information and
summary of the information shared to the higher level managers.
3. Assisting the manager in doing what if analysis about project staffing, proposed
staffing changes and total allocation of resources.
4. Helping organizational learning by helping the members of the organizations lean about
project management.
Usually, the team members, and not the systems administrators of the company, develop a good
PMIS. Organisations tend to allocate such responsibility by rotation among members with a well
designed and structured data entry and analytical format.
DIFFERENT BETWEEN KEY SUCCESS FACTORS (KSF) AND KNOWLEDGE
(K) FACTOR
Key success factors (KSF)

Knowledge (k) factor

The KSF should be evolved based on a basic Knowledge is the most powerful mover of the
consensus document (BCD)
wheels of progress
KSF will also provide an input to effective exit Knowledge (k) factor is an index of the extent to
strategy (EES)
which one can manager today with yesterdays

knowledge content and also the extent to which

todays knowledge will be used tomorrow.
Broad level of KSF should be available at
the
conceptual stage and should be firmed up and
detailed out during the planning stage. The
easiest way would be for the team to evaluate
each step for chances of success on a scale
of ten.
KSF should be available to the management,
duly approved by the project manager
before execution and control stages.

K factor would render the development process

more
productive. The k factor of course, undergoes
correction through obsolescence, since changes are
now phenomenal.

Leaders should recognize the knowledge potential

of
the younger managers. Seniority is no more an
automate scale for knowledge. It is equally
important for younger member not suppress their
knowledge potential from its application.
KSF rides normal consideration of time and Here time and cost does not matter, knowledge is to
costbe updated time to time to get better results.
at the levels encompassing client expectation
and management perception-time and cost come
into play as subservient to these major goal.
In order to provide complete stability As age and experience advance wisdom gains,
to
but
fulfillment of goals, a project manager needs to knowledge should always be updated and utilized. It
constantly evaluate the key success factor from is the task of every team members to maximize the
time to time.
k factor in all directions.
Example of Key success factor
According to TeachMeFinance.com, a turnkey project is "a project in which a builder/developer
contracts to construct a completed facility that includes all items necessary for use and occupancy."
Unfortunately, many turnkey businesses never capture the interest of the buyers. Whether you're
building in brick and mortar or building in computer code, there are several factors critical to the
success of your turnkey project.
Know the Business
Several businesses can be set up as turnkey businesses, from food service to copy management to
telemarketing and sales. Whichever you decide, it is important to have an intimate knowledge of the
business you are building. One key factor in a successful turnkey business is being able to
anticipate the needs and desires of the potential owners before they are brought on board. A
salesman, for example, looking to purchase a turnkey sales business will need an office as a base of
operations; but since so much of the sales process is done through phones, computers and other
electronic devices, the turnkey developer may want to include additional power outlets in the
construction of the building, or desks with onboard power strips and surge protectors. These
small additions can make a turnkey project a success.
Know the Area

Internet businesses often have nationwide access to clientele, but brick-and-mortar turnkey operations
sometimes run into trouble in areas poorly suited to the service they offer. For example, an
outdoor food service stand opening in Wilkes-Barre, Pennsylvania, will not do as much business
(at least during the winter months) as one opening in an Orlando, Florida, theme park. Knowing the
area where you are constructing your turnkey business includes knowing the weather conditions, the
dominant demographic, the current popularity and number of businesses like the one you are creating
and the average income of the public. Planning a turnkey business that uses these factors to its
advantage will make the business more readily sellable.
Make Connections Turnkey businesses are designed to be ready to operate as soon as the buyer takes
ownership. Still, once they are sold, many businesses of this type run into problems when it comes to
resupplying, logistics and advertising. Because of this, many buyers are wary of turnkey operations.
One way to quell any "down the road" fears is to have this part of the infrastructure accounted for.
Make contact with businesses which help advertise businesses, ship products, supply copy paper and
any other stock the owner might require. Obtain discounts from as many as possible
Example
factor

of

Knowledge

(k)

ABSTRACT Most organisations are aware that in todays highly competitive environment managing
effectively their knowledge is the only way to achieve a sustainable competitive advantage. One of
the primary areas to which knowledge management can be applied is the field of project
management. An increasing number of business sectors are adopting a project approach to carry out a
range of essential activities where valuable knowledge is gained. Knowledge from projects is an
important resource for further projects, because projects solve innovative and interdisciplinary tasks.
However, the majority of organisations do not manage the information gained through past projects.
Failure to transfer
knowledge from past to future projects leads to wasted activity and unnecessary expenses
by
reinventing the wheel. Therefore, knowledge management is a critical success factor for
many projects.
The purpose of this Management Report is to approach knowledge management from the
perspective of project management. The main objective is to define how knowledge management can
be enhanced within a project by analysing suitable tools and relevant theories. The research is based
on the high- speed train project XY of the company XXX. This project is an important milestone for
XXX to improve its market position in Spain. The knowledge gained through the XY project will be
the key factor for the success of the further high-speed train projects.
The main finding of the case study highlights that there is a lack of formal knowledge management
activities at the project. The project team focuses mainly on personal interaction for transferring
knowledge and information technology is not used to its full potential. A hybrid approach to
knowledge management for project environments is suggested, taking into account technical as well
as human-specific aspects. The main recommendation is to determine a knowledge management
strategy, which preferably focuses on transferring tacit knowledge and gives information technology
a support function. Other areas of improvement are creating an open and constructive project culture,
including knowledge initiatives in reward systems and fostering documented project review sessions.
Finally, general conclusions are provided to answer the main research question of this management
report.
Q.5
Explain the seven principal of supply chain management.take and example of any product
in the market and expain the secenrio of bullehip effect.

Ans: Seven principles of SCM are:

1. Group customer by needs:

Effective SCM groups customers by distinct service needs,

regardless of industry and then tailors services to those particular segments.

2. Customize the logistics networks: In designing their logistic network, companies need

to focus on the service requirement and profit potential of the customer segments identified.
3.

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
customers demand and needs. This demand driven approach leads to more consistent forecast
and optimal resource allocation.

4. Differentiate the product closer to the customer: companies today no longer can afford to

stockpile 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
changes in customer needs.
5. 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.
6. 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 decisions making. It
also should afford a clear view and ability to measure the flow of products, services and
information.
7. Adopt channel spanning performance measures: Excellent supply chain performance

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

EFFECT

IN

An organization will always have up 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 resources and make necessary changes within the organization to meet the
market demands. Failing to do so may results in wild swings in the orders. This may adversely
affect the functioning of the organization resulting in lack of coordination and trust among supply
chain members. The changes may affect the information and may led 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 those firm which are dependent on
suppliers, distributors and retailers. A bullwhip effect may arise because of:
Increase in the lead time of the project due to increase in variability of demand

Increase in the stocks to accommodate the increase demand arising out of

complicated demand models and forecasting techniques.
Reduced service levels in the
organization. Inefficient allocation of
resources. Increased transportation cost.
How to prevent it ?
Bullwhip effect may be avoided by one or more of the following
measures: Avoid multiple demand forecasting.
Breaking the single order 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 point of sale (POS) and sharing
information Reduce the lead time in the stages of the project
Always keep analyzing the past figures and track current and future levels of requirement.
Enhance the operational efficiency and outsourcing logistics to a capable and efficient
agency
Example of one product the effect Bullwhip theory.
The beer game was developed at MIT by the Systems Dynamic Group in the 1960s. The
game involves a simple production/distribution system for a single brand of beer. There are
three players in the game including a retailer, a wholesaler, and a marketing director at the
brewery. Each player's goal is to maximize profit.
A truck driver delivers beer once each week to the retailer. Then the retailer places an order
with the trucker who returns the order to the wholesaler. There's a four week lag between
ordering and receiving the beer.
The retailer and wholesaler do not communicate directly. The retailer sells hundreds of
products and the wholesaler distributes many products to a large number of customers.
The following represents the results of a typical beer game:3.1 The Retailer
Week 1: Lover's Beer is not very popular but the retailer sells four cases per week on average.

Because the lead time is four weeks, the retailer attempts to keep twelve cases in the store
by ordering four cases each Monday when the trucker makes a delivery.
Week 2: The retailer's sales of Lover's beer doubles to eight cases, so on Monday, he orders
8 cases.
Week 3: The retailer sells 8 cases. The trucker delivers four cases. To be safe, the retailer
decides to order 12 cases of Lover's beer.
Week 4: The retailer learns from some of his younger customers that a music video appearing
on TV shows a group singing "I'll take on last sip of Lover's beer and run into the sun." The
retailer assumes that this explains the increased demand for the product. The trucker delivers 5
cases.
The retailer is nearly sold out, so he orders 16 cases.
Week 5: The retailer sells the last case, but receives 7 cases. All 7 cases are sold by the end
of the week. So again on Monday the retailer orders 16 cases.
Week 6: Customers are looking for Lover's beer. Some put their names on a list to be called
when the beer comes in. The trucker delivers only 6 cases and all are sold by the weekend.
The retailer orders another 16 cases.
Week 7: The trucker delivers 7 cases. The retailer is frustrated, but orders another 16 cases.
Week 8: The trucker delivers 5 cases and tells the retailer the beer is backlogged. The retailer
is really getting irritated with the wholesaler, but orders 24 cases.
3.2 The Wholesaler
The wholesaler distributes many brands of beer to a large number of retailers, but he is the
only distributor of Lover's beer. The wholesaler orders 4 truckloads from the brewery truck
driver each week and receives the beer after a 4 week lag. The wholesaler's policy is to keep
12 truckloads in inventory on a continuous basis.
Week 6: By week 6 the wholesaler is out of Lover's beer and responds by ordering 30
truckloads from the brewery.
Week 8: By the 8th week most stores are ordering 3 or 4 times more Lovers' beer than
their regular amounts.

Week 9: The wholesaler orders more Lover's beer, but gets only 6
truckloads. Week 10: Only 8 truckloads are delivered, so the wholesaler
orders 40.
Week 11: Only 12 truckloads are received, and there are 77 truckloads in backlog, so
the wholesaler orders 40 more truckloads.
Week 12: The wholesaler orders 60 more truckloads of Lover's beer. It appears that the beer
is becoming more popular from week to week.
Week 13: There is still a huge backlog.
Weeks 14-15: The wholesaler receives larger shipments from the brewery, but orders
from retailers begin to drop off.
Week 16: The trucker delivers 55 truckloads from the brewery, but the wholesaler gets
zero orders from retailers. So he stops ordering from the brewery.
Week 17: The wholesaler receives 60 truckloads. Retailers order zero. The wholesaler orders zero.
The brewery keeps sending beer.
3.3 The Brewery
The brewery is small but has a reputation for producing high quality beer. Lover's beer is
only one of several products produced at the brewery.
Week 6: New orders come in for 40 gross. It takes two weeks to brew the beer.
Week 14: Orders continue to come in and the brewery has not been able to catch up on the
backlogged orders. The marketing manager begins to wonder how much bonus he will get
for increasing sales so dramatically.
Week 16: The brewery catches up on the backlog, but orders begin to drop
off. Week 18: By week 18 there are no new orders for Lover's beer.
Week 19: The brewery has 100 gross of Lover's beer in stock, but no orders. So the
brewery stops producing Lover's beer.
Weeks 20-23. No orders.
At this point all the players blame each other for the excess inventory. Conversations with
wholesale and retailer reveal an inventory of 93 cases at the retailer and 220 truckloads at
the

wholesaler. The marketing manager figures it will take the wholesaler a year to sell the
Lover's beer he has in stock. The retailers must be the problem. The retailer explains that
demand increased from 4 cases per week to 8 cases. The wholesaler and marketing manager
think demand mushroomed after that, and then fell off, but the retailer explains that didn't
happen. Demand stayed at 8 cases per week. Since he didn't get the beer he ordered, he kept
ordering more in an attempt to keep up with the demand. The marketing manager plans his
resignation.
3.4 Lessons from the Beer Game
1. The structure of a system influences behavior. Systems cause their own problems, not
external forces or individual errors.
2. Human systems include the way in which people make decisions.
3. People tend to focus on their own decisions and ignore how these decisions affect others.
3.5 Lessons Related to the Learning Disabilities
1. People do not understand how their actions affect others.
2. So they tend to blame each other for problems.
3. Becoming proactive causes more problems.
4. The problems build gradually, so people don't realize there is a problem until its too late.
5. People don't learn from their experience because the effects of their actions occur
somewhere else in the system.

Stock variability amplification in a supply chain due to Bullwhip Effect

Q.6 The 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

ANS. Consider M1 and M3

Job

Machine Machine
1 (M1)
3 (M3)

JOB = D E C A B