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

1. Explain the various automated systems for transfer of materials in the

production plant? Illustrate your answer by considering an example of an
automobile showroom.

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 are 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.

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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 by bar
codes which are read and fed into the system for 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.”

2. 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.

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.

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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 are taking place
according to standards. When these cabs 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, & crewing or even welding. Sensors will keep
track of these 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

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manufactured, type of machinery required and develop techniques to overcome

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. Their 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.

3. Who are the players in a project management? What are the various roles and
responsibilities of the players in a 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.

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• 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.
Roles and Responsibilities of Project Management are as follows: 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 managers who manage the projects.
• There may be different teams working a different project.
• 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

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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.

4. What are the various steps in project monitoring and controlling a project?

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 required establishing
control factors to keep the project on the track of progress. The results of any stage in
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. 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 duels. Summary of the
members have to understand the tolerances in any change and maintain a
change control log. They must realize 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,

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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.
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.

F
Fig: Monitoring and Controlling cycle

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Fig: Monitoring and Controlling cycle

5. Explain the necessity and objectives of SCM?

SCM is the abbreviation of Supply Chain Management. It is considered by

many express worldwide as the ultimate solution towards efficient enterprise
management.

¾ The necessity and objectives of SCM are as follows

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.

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• 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.
• 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, mergers 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.

6. What are the steps involved in SCM implementation?

There are many steps which involved in SCM implementation, they are-
Business Process, sales and marketing. Logistics, costing, demand planning, trade- off
analysis, environmental requirement, process stability, integrated supply, supplier
management, product design, suppliers, customers, material specifications, etc.

SCM implementation involves the following steps:

1. Study the strengths and weaknesses within the enterprise as well as of External
Agencies involved.
2. Understand the organization objectives
3. Study the existing systems and identify the gaps and propose solutions to plug
the loopholes.
4. Evolve consensus and test fire individual solutions.

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5. Integrate solutions which are adjudged successful into the mainstream.

Study overall impact after all proposals in a section are implemented, review

6. consensus.
7. Finalize SCM document, circulate and implement.

1. Explain how material flow information helps in work centre decision.

Consider the example of a shopping centre to illustrate your answer.

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The decision which involves during uses of material flow information are 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 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 far 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.

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• 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.

2. What are the reasons for failure of a project? Give suitable examples.

Project is a set of activities which are networked in order and aimed towards
achieving goal of a project.
The reasons for project failure are:
a) 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.

b) Factors contributing to project success not emphasized:

• Project objective in alignment with business objective.
• Working within the framework of project management methodology.
• 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.

c) Overview of information and communication Technologies (ICT) project:

• Involve information and communication technologies such as the World
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.

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• 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.

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

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.
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.

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• 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.
¾ 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.
¾ Design phase:
• This phase involves the study of inputs and outputs of the various
project stages.
¾ Execution phase:
o 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.
¾ 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.
¾ 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 project execution report.

The phase which involve in the above are:

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• 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.

4. What are the seven principles of SCM?

Seven principles of SCM are:

¾ Group customer by needs- Effective SCM groups, customer by distinct service
needs, regardless of industry and then tailors services to this particular
segment.
¾ Customize the logistic network- In designing their logistics network;
companies need to focus on the service requirement and profit of the customer
segments identified.
¾ 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.
¾ 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.

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¾ 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.
¾ 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.
¾ 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.

5. Explain what is meant by bullwhip effect and how it could be prevented?

An unmanaged supply chain is not inherently stable. Demand variability

increases as one move up the supply chain away from the retail customer, and small
changes in consumer demand can result in large variations in orders placed upstream.
Eventually, the network can oscillate in very large swings as each organization in the
supply chain seeks to solve the problem from its own perspective. This phenomenon
is known as the bullwhip effect and has been observed across most industries,
resulting in increased cost and poorer service.

Causes of the Bullwhip Effect

Sources of variability can be demand variability, quality problems, strikes,
plant fires, etc. Variability coupled with time delays in the transmission of
information up the supply chain and time delays in manufacturing and shipping goods
down the supply chain create the bullwhip effect. The following all can contribute to
the bullwhip effect:
o Overreaction to backlogs.
o Neglecting to order in an attempt to reduce inventory.
o No communication up and down the supply chain.
o No coordination up and down the supply chain.
o Delay times for information and material flow.

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o Order batching - larger orders result in more variance. Order batching

occurs in an effort to reduce ordering costs, to take advantage of
transportation economics such as full truck load economies, and to
benefit from sales incentives. Promotions often result in forward
buying to benefit more from the lower prices.
o Shortage gaming: customers order more than they need during a period
of short supply, hoping that the partial shipments they receive will be
sufficient.
o Demand forecast inaccuracies: everybody in the chain adds a certain
percentage to the demand estimates. The result is no visibility of true
customer demand.
o Free return policies.

Countermeasures to the Bullwhip Effect

While the bullwhip effect is a common problem, many leading companies
have been able to apply countermeasures to overcome it. Here are some of these
solutions:
• Countermeasures to order batching - High order cost is countered with
Electronic Data Interchange (EDI) and computer aided ordering (CAO). Full
truck load economics are countered with third-party logistics and assorted
truckloads. Random or correlated ordering is countered with regular delivery
appointments. More frequent ordering results in smaller orders and smaller
variance. However, when an entity orders more often, it will not see a
reduction in its own demand variance - the reduction is seen by the upstream
entities. Also, when an entity orders more frequently, its required safety stock
may increase or decrease; see the standard loss function in the Inventory
Management section.
• Countermeasures to shortage gaming - Proportional rationing schemes are
countered by allocating units based on past sales. Ignorance of supply chain
conditions can be addressed by sharing capacity and supply information.
Unrestricted ordering capability can be addressed by reducing the order size
flexibility and implementing capacity reservations. For example, one can
reserve a fixed quantity for a given year and specify the quantity of each order

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shortly before it is needed, as long as the sum of the order quantities equals to
the reserved quantity.
• Countermeasures to fluctuating prices - High-low pricing can be replaced
with everyday low prices (EDLP). Special purchase contracts can be
implemented in order to specify ordering at regular intervals to better
synchronize delivery and purchase.
• Countermeasures to demand forecast inaccuracies - Lack of demand
visibility can be addressed by providing access to point of sale (POS) data.
Single control of replenishment or Vendor Managed Inventory (VMI) can
overcome exaggerated demand forecasts. Long lead times should be reduced
where economically advantageous.
• Free return policies are not addressed easily. Often, such policies simply
must be prohibited or limited.

6. What do you understand by Line Balancing? What is the importance of order

picking in material handling? Give suitable examples.

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

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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:
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.

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