ASSIGNMENTS

Subject code: MB0028

(3 credits)
Set 1
Marks 60
SUBJECT NAME : PRODUCTION & OPERATIONS MANAGEMENT

Note: Each Question carries 10 marks

Q.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.
A.1 The main purposes of automation systems are 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 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.

In the case of an Automobile Assembly line:

Consider the assembly of a car: assume that certain steps in the assembly line
are to install the engine, install the hood, and install the wheels (in that order, with
arbitrary interstitial steps); only one of these steps can be done at a time. In
 traditional production, only one car would be assembled at a time. If engine
installation takes 20 minutes, hood installation takes 5 minutes, and wheel
installation takes 10 minutes, then a car can be produced every 35 minutes.

In an assembly line, car assembly is split between several stations, all working
simultaneously. When one station is finished with a car, it passes it on to the next.
By having three stations, a total of three different cars can be operated on at the
same time, each one at a different stage of its assembly.

After finishing its work on the first car, the engine installation crew can begin
working on the second car. While the engine installation crew works on the
second car, the first car can be moved to the hood station and fitted with a hood,
then to the wheels station and be fitted with wheels. After the engine has been
installed on the second car, the second car moves to the hood assembly. At the
same time, the third car moves to the engine assembly. When the third car’s
engine has been mounted, it then can be moved to the hood station; meanwhile,
subsequent cars (if any) can be moved to the engine installation station.

Assuming no loss of time when moving a car from one station to another, the
longest stage on the assembly line determines the throughput (20 minutes for the
engine installation) so a car can be produced every 20 minutes, once the first car
taking 35 minutes has been produced.

Q.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.
A.2 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, & 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 my 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.

Q.3 Who are the players in a project management? What are the various roles and
responsibilities of the players in a project management?
A.3 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. Thos who exert influence over the project and its results
players are 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.

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.

Q.4 What are the various steps in project monitoring and controlling a project?
A.4 Any project aimed at delivering a product or service has to go through phases in a
planned manner in order to meet the requirements. It’s 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 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:
a. Preliminary work - the team members understand the project
plans, project stage schedule, progress controls, tracking the schedules.
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.
b. 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 schedule.
c. Stage control - The manager must establish a project check paint
cycle. For this suitable stage version control procedure may be followed.
d. 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.
e. 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.
f. 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.
g. 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.

Q.5 Explain the necessity and objectives of SCM?

A.5 SCM or Supply Chain Management. It is considered by many express worldwide
as the ultimate solution towards efficient enterprise management.

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.
• 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 is 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 markets place for buying and selling goods and
materials.

Q.6 What are the steps involved in SCM implementation?

A.6 There are 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, suppliers, 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 implementation:

Group customer by need:
Effective SCM groups, customer by distinct service needs those particular
segments.

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 differentiation
in the manufacturing. Processes 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 both service and
financial metrics, including each account’s true profitability.
 ASSIGNMENTS
Subject code: MB0028
(3 credits)
Set 2
Marks 60
SUBJECT NAME : PRODUCTION & OPERATIONS MANAGEMENT

Note: Each Question carries 10 marks

Q.1 Explain how material flow information helps in work centre decision. Consider the
example of a shopping centre to illustrate your answer.
A.1 The decision which involves during uses of material flow information is mentioned
below by considering the example of a shopping centre:
A work center (E.g. Shopping 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 shopping center may have a single
operation/ process or a number of them conducted on the input items. In the
pipeline of receiving the material to supplying to customers, each work center’s
contribution is vital as materials are scheduled, routed and loads to be sent to it.

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 enters it in a
shopping center; the material also leaves the shopping 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
material 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
• Important that they are close
• 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.

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

The reasons are project failure:

A. General:
• Incidence of Project failure
• Higher cost of capital
• 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
 • Misuse of financial resources
• Business strategy superseded
• Overspends in excess of agreed budgets

B. Management Reasons
• Ability to adapt to new resource combinations
• Differences between management and client
• Insufficient risk management
• Insufficient end-user management
• Insufficient training of users
• Inappropriate procedures and routines
• Lack of management judgement
• Lack of software development metrics
• Loss of key personnel
• Poor vendor management
• Poor communication between stakeholders
• Poor contract management
• Poor financial management
• Project management capability
• Poor delegation and decision making
• Unfilled promises to users and other stakeholders

Technical reasons
• Inappropriate architecture
• Insufficient reuse of existing technical objects
• Inappropriate testing tools
• Inappropriate coding language
• Inappropriate technical methodologies
• Lack of formal technical standards
• Lack of technical innovation (obsolescence)
• Misstatement of technical risk
• Obsolescence of technology
• Poor interface specifications
 • Poor quality code
• Poor systems testing
• Poor data migration
• Poor systems integration
• Poor configuration management
• Poor change management procedures
• Poor technical judgment

C. 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

D. Overview of information and communication Technologies

(ICT) project:
• Involve information and communication technologies such as
the world wide web, e-mail, fibre-optics satellites
• Enable societies to produce, access, adapt and apply
information in greater amount, more rapidly and at reduce costs
• 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.
Q.3 Explain the various phases in project management life cycle?
A.3 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.
• 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.

Phases in Project Management Life Cycle:

• 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.
Inputs received, consist of project feasibility study, preliminary
project evaluation details, project proposal and customer interviews.
Outputs produced, consist of system design specifications,
functional specifications of the project, design specifications of the
project and the project plan.
Execution Phase: In this phase the project manager and the team
members work on the project objectives as per the plan. At every stage
during the execution reports are prepared.
Control, Inspection, Testing & 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 has to be monitored or tracked
through its cost, manpower and schedule. 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 project execution report.

General practices involved in the above phases 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 feasibility or research stage will establish whether the project is feasible or not and
establishes the risk factors likely to be faced during the course of project
execution and the related key factors to overcome the problems.
A detailed definition and plan for the project and its execution is prepared by the team
and coordinated by project Manager.
 • The final stage involves satisfactory delivery of the product/service to the
customers. Upon completion of the project, review is to be conducted by
the project team along with the sponsors and customers to discuss about
the progress, performance and hurdles.

Q.4 What are the seven principles of SCM?

A.4 The seven principles of SCM are as follows:
a. Group customer by needs- Effective SCM groups, customer by
distinct service needs, regardless of industry and then tailors services to
those particular segments.
b. Customize the logistic network- In designing their logistics network;
companies need to focus on the service requirement and profit of the
customer segments identified.
c. 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.
d. 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.
e. 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.
f. 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.
 g. 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,
including each account’s profitability.

Q.5 Explain what is meant by bullwhip effect and how it could be prevented?
A.5 An organization will always have ups and downs. It is necessary that the
managers of the organization keep track on 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 result in wild swing in orders. This may adversely affect functioning of the
organization resulting in lack of coordination and trust among supply chain
members. The changes may affect 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
effect on almost all the industries, poses a risk to firms that experience large
variations in demand, and also those firms which are dependent on suppliers,
distributors and retailers.

A bullwhip effect may also arise because of:

a. Increase in the lead time of the project due to increase in variability
of demand.
b. Increase in the stocks to accommodate the increasing demand
arising out of complicated demand models and forecasting techniques.
c. Reduced service levels in the organization.
d. Inefficient allocation of resources.
e. Increased transportation costs.

Measures to prevent bullwhip effect:

Bullwhip effect may be avoided by one or more of the following measures:
a. Avoid multiple demand forecasting.
b. Breaking the single orders into number of batches of orders.
 c. Stabilising the prices, avoid the risk involved in overstocking by
maintaining a proper stock.
d. Reduce the variability and uncertainty in Point Of Sale[POS] and
sharing information.
e. Reduce the lead time in the stages of the project.
f. Always keep analyzing the past figures and track current and future
levels of requirements.
g. Enhance the operational efficiency and outsourcing logistics to a
capable and efficient agency.

Q.6 What do you understand by Line Balancing? What is the importance of order
picking in material handling? Give suitable examples.
A.6 Productivity increases when product moves the various operations toward
completion without any holdovers. Balancing a variety of operation is the major
concern which is addressed by design and allocation of machines at workstations.

Material handling has become one of the important functions of operations

management owing to the necessity of making them efficient and economical. The
necessity is the outcome of worldwide outsourcing and meeting demands of a
global market. Assemblies take place at various locations and distribution is
across the world. Many companies do not have main stores at their manufacturing
facilities. Suppliers deliver the required quantities to the places where they are
required for further processing or assembly. To reduce the inventory only required
quantities have to be made and delivered at appropriate times.

This necessitates that the flow lines are smooth. Balancing flow lines, different
equipments to achieve the same is the objective of line balancing.

Production lines have a number of work enters in particular sequence so that the
material that gets processed has to move further without encountering any
bottlenecks. The quantities processed the rate of production at each centre, the
number of operations and the total production required are factors taken into
account.
The purpose of balancing is to see that no shortages occur between work centres
and minimum inventory gets created.
The principles of Linear Programming, JIT and Lean Manufacturing are used to
achieve these.

The importance of order picking in material handling

Order picking is a process by which items or products for which supply is to be
made have to be retrieved from specific storage locations. It is found to take 60%
of labour activities in a warehouse. Since it is critical to the business to meet
customer’s demands accurately, lot of attention is being given to this aspect of
operations. In the manufacturing arena, we desire to move towards small lot
sizes, point of use delivery 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.

Types of equipments that help in bring efficiency to the process:

a. Horizontal Travel – These are in the aisle, picker to part systems.
The picker, a worker walks or rides a vehicle and pickers the item or
product and puts into the vehicle, or conveyor. The storage system could
be pallet racks, shelves or gravity racks.
b. Person Abroad- In this system the picker is on a platform of a
vehicle he can move up and also horizontally along the aisle.
c. Part to Picker – these are mechanised systems here a storage /
retrieval device carries the trays or bins to the person picking. More than
one picker can also access the system.
d. Special equipment – for high throughput and space efficiently
special equipments are made which are in the form of movable shelves,
rotary racks mobile shuttles that travel in lanes.
e. Workplace equipment – items can be kept in work benches and be
picked up. The carts are used to keep items for being picked up.

Before implementing any of these systems, a detailed study of alternatives, a plan

for expansion or reduction will have to be considered. Some of these factors are:
A. Material Properties
 - Size, weight and nest ability
- Carton counts, pallet counts
- Fragility
- Value
- Environment[ temperature, humidity]
B. System Requirements
- Volume per product
- Number of orders to be shipped
- Response time
- Supporting processes [labelling, pricing]
- Growth factors
C. Economic factors
- Investment required
- Product life
- Rate of return
D. Design considerations
- Total number of products that are to be stored
- Number of products received per shift
- Total number of retrieved per shift
- Labour force
- Variability of the product
- Management Information System