Production and Operations Management

Question Bank

Module I:
1) What is production?
Production is the process by which raw materials and other inputs are converted into finished
goods.

2) What is production management?

Production management is the management principles to the production function in the
factory which involves planning, organizing , directing and controlling functions to the
production process.

3) What is operations management?

Operations management is the process in which resources or inputs are converted into more
useful products.
It involves tactics of scheduling work, assigning resources (Manpower, Machines,
inventories, etc.), assessing quality standards, etc.

4) Mention few differences between production and operations management.

Tangible/Intangible nature of output: The term production management is more used for a
system where tangible goods are produced. Whereas operations management is more
frequently is used where various inputs are transformed into intangible services.
The evolution: of production is historical but, operations management is recently developed.
Nature of work (job): Jobs that use less labour and more equipment come under production.
And under operations there are jobs that use more labour and less equipment.
Degree of customer contact: Production involves little customer contact. And operations
require direct consumer contact.

5) What is continuous production? Give an example.

Production facilities are arranged as per the sequence of production operations from the first
operations to the finished product.
EX: coca cola
6) What is mass production? Give an example.
Manufacture of discrete parts or assemblies using a continuous process are called
mass production.
This production system is justified by very large volume of production.
The machines are arranged in a line or product layout.
Product and process standardisation exists and all outputs follow the same path.

7) What is batch production?

It is characterised by the manufacture of limited number of products produced at regular
intervals and stocked awaiting sales.

8) What is Job-Shop production?

Job shop production are characterised by manufacturing of one or few quantity of products
designed and produced as per the specification of customers within prefixed time and cost.

9) What is productivity?
Productivity refers to the amount of goods and services produced with the resources used.

10) What is a production system?

Module II:
1) What is plant location?
A plant location may not guarantee success but, it certainly contributes to the smooth and
efficient working of an organization.
But selecting a bad location is a severe loss for any enterprise
2) Define is plant layout?
Planning and arranging manufacturing machinery, equipment, and services for the
first time in completely new plants;
The improvements in layout already in use in order to introduce new methods and
improvements in manufacturing procedures.
3) What is locational analysis?
Locational analysis is a dynamic process where entrepreneur analyses and compares the
appropriateness or otherwise of alternative sites with the aim of selecting the best site for a
given enterprise.

4) What is factor rating method?

5) What is point rating method?

6) What is break-even analysis?

7) What is qualitative factor analysis?

8) Name few objectives of a good layout.

9) State the principles of plant layout.

Principle of integration
Principle of minimum distance:
Principle of usage:
Principle of minimum handling
Principle of Minimum Investment:

10) Name the types of plant layout.

a. Product layout or line processing layout or flow-line layout
b. Process layout or functional layout or job shop layout
 c. Fixed position layout or static layout
d. Cellular manufacturing (CM) layout or Group Technology layout
e. Combined layout or Hybrid layout

11) What is a product layout?

The product layout involves the arrangement of machines in one line, depending upon the
sequence of operations.
In this type of layout, machines and auxiliary services are located according to the processing
sequence of the product. E.g: Paper manufacturing.

12) What is a process layout?

In a process layout, general purpose machines are arranged in no particular sequence, as the
processing requirements and sequence are different for the various types of products to be
manufactured.
The process layout involves a grouping together of like machines in one department.

13) What is fixed layout?

In this type of layout, the material or major component remains in a fixed location, and tools,
machinery and men as well as other pieces of materials are brought to this location.
Here the product is very bulky, heavy, large, or has a fixed position.
E.g:construction of a building, dam, aeroplane, ship ,etc. where equipment, raw materials
and workers are brought to the site according to a time schedule for better utilisation of space
available.

14) What is meant by cellular layout?

In a cellular layout, groups of items with similar processing requirements are identified, and
separate manufacturing cells are formed for each group, which contain the required machines
in the desired sequence.

15) What is combined layout?

It is possible to have a combined layout where in product layout and process layout, with an
emphasis on either is noticed in most industrial establishments
e.g. for industries involving the fabrication of parts and assembly, fabrication tends to
employ the process layout, while the assembly areas often employ the product layout.
16) What is plant capacity?
The capacity of a plant or facility is defined as the maximum load that can be handled by it
during a given period.
The load can be expressed in terms of the amount of inputs or output.
Example: the capacity of a sugar mill is expressed in terms of the tonnes of sugar cane
(input) crushed per day or tonnes of sugar (output) produced per day. For a Plastic goods
manufacturing unit, the amount of plastic processed per day is assessed for capacity.

Module III:
1) What is aggregate planning?
\Aggregate planning involves planning workforce size, production rate (working hours) and
inventory levels.

2) What is aggregate output planning?

It is the process of determining output levels (units) of product groups over the next 6 to 18
months period.

3) State few objectives of aggregate planning.

To establish company-wide strategic plan for allocating resources.
To develop an economic strategy to meet customer demand.

4) Why are aggregate plans important?

5) What is aggregate capacity planning?

It is the process of devising a plan for providing a production capacity to support the
intermediate range sales forecast.

6) What are the factors determining plant capacity?

Market demand for a product/service
The amount of capital that can be invested
Degree of automation desired
Level of integration
Type of technology selected
7) Name the production (aggregate) planning strategies.
The basic production planning strategies are based upon three variables: workforce size (no.
of workers), utilisation of workers and inventory size.
In each one of these strategies, one variable is varied and the other two are kept constant.
Level Output Plan
Chase Plan
Varying Utilisation Plan

8) What is master schedule?

A master schedule is the disaggregation of an aggregate plan, as it includes information about
the number of various models and sub-models of a product required in a given duration.

9) What is rough-cut capacity planning?

This process of checking the feasibility of the master schedule with respect to the available
capacity is called Rough-cut Capacity Planning.

10) What is master production schedule?

The Master Production Schedule (MPS) gives details about the quantities and timing of the
planned production of a product.

Module IV:
1) What is meant by PPC?
2) State few objectives of PPC.
To conform to delivery commitments.
Materials planning and control.
Optimum scheduling of resources

3) State the three phases of PPC.

Planning Phase
Action Phase
Control Phase

4) State the functions of PPC.

Pre-planning function
Planning function
Control function
5) What is Loading?(Loading machine According to their capacity)
It is the process of converting operation schedules into practice.

6) What is Scheduling?(Timeing Per Operation)

Involves fixing priorities for each job and laying down a time table for production.

7) What is a Route Sheet?

It deals with specific production order. One sheet is required for each part or component of
the order.

8) What is Dispatching? (allocating resource to production)

Dispatching also provides a means for comparing actual progress with planned production
progress.

9) What is Expediting?(follow up material work progress assembling )

This is the control tool that keeps a close observation on the progress of the work.

10) What is Evaluation?( Feedback)

The objective of evaluation is to improve performance. Performance of machines, processes
and labour is evaluated to improve the same.

11) What is meant by design capacity and system capacity?

Designed capacity of a facility is the planned or engineered rate of output of goods or
services under normal or full scale operating conditions.
System capacity is the maximum output of the specific product or product mix the system of
workers and machines is capable of producing as an integrated whole

12) State few techniques of Routing.

Route card:
Work sheet
Move order
13) What is Scheduling? State few principles of Scheduling.
Principle of optimum production plan
Principle of optimum sequence:

14) What is sequencing?

Sequencing is the process of determining the sequence of processing of all jobs at each work
centre or machine.

15) What is No Passing Rule in sequencing?

It refers to the rule of maintaining the order in which jobs are processed on the given machines

Module V:
1) What is Materials Management?
Materials management is a function, which aims for integrated approach towards the
management of materials in an industrial undertaking.

2) State the 5Ms of an industrial organization.

3) State few objectives of materials management.

Continuity of Supply
Consistency of Quality
Low Payroll Costs

4) What is Materials Planning and Control?

Material planning is a scientific technique of determining in advance the requirements of raw
materials, ancillary parts and components, spares etc. as directed by the production
programme.

5) What is 3S?
Standardization, Simplification and Specification

6) What is Ergonomics?
It is the design of human tasks, man-machine system, and effective accomplishment of the
job, including displays for presenting information to human sensors, controls for human
operations and complex man-machine systems.
7) What is JIT?
JIT refers to the production methodology which aims to improve overall productivity through
elimination of waste and which leads to improved quality

8) What is inventory?
Inventory generally refers to the materials in stock and represent those items which are either
stocked for sale or they are in the process of manufacturing or they are in the form of
materials, which are yet to be utilized.

9) What are MRO inventories?

Maintenance, Repairs & Operating supplies

10) State few reasons for holding inventory.

11) State few objectives of inventory management.

12) What is inventory control?

Inventory control pertains to the administration of established policies, systems and
procedures. For e.g. the actual steps taken to maintain the stock levels or stock records refer
to inventory control.

13) Name the factors affecting inventory management and control

Type of Product
Type of Manufacture
Volume of production
Other factors

14) What is max-minimum and two bin system?

This system is usually used in connection with manual inventory control systems.
Under this technique, stock of each item is separated in two bins.

15) What is EOQ?

EOQ (Economic Order Quantity) solves this decision problem.
Module VI:
1) What is a project?
A Project is a unique one-time operations designed to accomplish a specific set of objectives
in a limited time frame.

2) What is project management?

It can be defined as a set of tools, skills, techniques, and knowledge that can be applied to a
project in order to fulfil that project's requirements.

3) Name the three steps involved in a project.

Project definition planning
Execution of major activities
Phasing out the project

4) Name the phases through which a project passes.

Organisation Phase
Execution Phase
Termination Phase
The Concept Phase
Feasibility phase
Detailed Planning Phase

5) Name the different forms of project organization.

Functional Organisation
Project Co-ordinator
Project Matrix
Project Team

6) Name key responsibilities of the project manager.

Work: accomplish activities necessary and meet the performance objectives.
Human Resources: direct and motivate employees.
Communication: disseminate information to everyone for carrying out their tasks
properly.
7) What is a network diagram?

8) What is processor and successor activity in a network diagram?

9) What is slack?
The amount of time that an activity or group of activities can slip without causing a delay in
the completion of the project. It is also known as float.

10) State few difference between PERT and CPM.

CPM is an activity oriented approach where as PERT is an event oriented approach.
CPM is a deterministic model and ignores probabilistic element of the problem. PERT,
however, is a probabilistic model and takes into account time uncertainty.

Module: VII:
1) What is productivity?
Productivity is the quantitative relation between what we produce and we use as a resource to
produce them, i.e., arithmetic ratio of amount produced (output) to the amount of resources
(input).

2) What is work study?

Work study is a generic term for those techniques (method study and work measurement)
which are used in the examination of human work in all its contexts.

3) Name few objectives of work study?

To analyse the present method of doing a job in order to develop a new and better
method.
To improve operational efficiency.
To increase the productivity

4) What is work study beneficial for the organization?

Better worker-management relations.
Meets the delivery commitment.
5) State few objectives of method study?
To improve utilisation of resources.
To eliminate wasteful and inefficient motions.

6) What is motion study?

Motion study is part of method study where analysis of the motion of an operator or work
will be studied by following the prescribed methods.

7) Name the three categories of motion study principles.

a) Effective use of the operator.
b) Arrangement of the workplace.
c) Design of tools and equipment.

8) What is work measurement?

In simple words, it is a technique of measuring the work content of any activity under study.

9) Who is said to a qualified worker?

10) Name two techniques used for work measurement.

a) Work sampling
b) Time study (stop watch technique)

11) What is time study?

Time study is measuring the time through stop watch is called time study

12) What is synthesis method?

Synthesis Method is a work measurement technique for building up the time for a job at a
defined level of performance by totalling element times obtained previously from time
studies on other jobs containing the elements concerned or from synthetic data.

13) What is PMTS?

Predetermined motion time study (PMTS) is a work measurement technique whereby times
established for basic human motions are used to build up the time for a job at the defined
level of performance.
14) What is analytical estimating?
Analytical estimating is a work measurement technique, being a development of estimating,
whereby the time required to carry out elements of a job at a defined level of performance is
estimated partly from knowledge and practical experience of the elements concerned and
partly from synthetic data.

15) What is work sampling?

Work sampling is a technique in which a large number of observations are made over a period of
time of one or group of machines, processes or workers.

Module VIII:
1) Define the term quality?
The word quality does not mean the quality of manufactured product only. It may refer to the
quality of the process (i.e., men, material, and machines) and even that of management.

2) What is quality control?

It is a systematic control of various factors that affect the quality of the product and it
depends on materials, tools, machines, type of labour, working conditions etc.

3) Why is QC needed in an organization?

4) Name the types of quality control categories.

Off-line quality control
Statistical process control
Acceptance sampling plans

5) What is SQC?

6) Name two objectives of quality control.

To produce optimal quality at reduced price.
To check the variation during manufacturing.

7) Why is QC beneficial for any organization?

8) Name any four techniques used for quality control.
Control charts
Check sheets
Histogram
Graphs or flow charts

9) What are control charts?

control chart plots a selected quality characteristic found from sub-group of observations as a
function of sample

10) What is variable control chart?

It is one by which it is possible to measures the quality characteristics of a product. The
variable control charts are X-BAR chart and R-BAR chart

11) What is attribute control chart?

It is one in which it is not possible to measures the quality characteristics of a product, i.e., it
is based on visual inspection only like good or bad, success or failure, accepted or rejected.
The attribute control charts are p-charts, np-charts, c-charts, u-charts.

12) What is X chart?

It is used to monitor the changes in the mean of a process (central tendencies).

13) What is R chart?

It is used to monitor the dispersion or variability of the process

14) What is p and np chart?

15) What is c chart?

5 Marks
Module II:
1) Discuss the factors affecting location decision for a retail outlet in Belgaum city
2) What are Factor rating and Point rating methods? How are they used?
Factor rating method:It requires identifying several compensable factors (like skills and
responsibility) each with several degrees and also the degree to which each of
these factors is present in the job or location.Point
Point rating Method: The point method is an extension of the factor comparison method.
Each factor is then divided into levels or degrees which are then assigned points. Each job is
rated using the job evaluation instrument. The points for each factor are summed to form a
total point score for the job.

3) What is plant layout? Why is the layout decision important in an organization?

Plant layout is the most effective physical arrangement, either existing or in plans of
industrial facilities i.e. arrangement of machines, processing equipment and service
departments to achieve greatest co-ordination and efficiency of 4 M's (Men, Materials,
Machines and Methods)

4) What are the differences between a product and a process layout?

Product Layout in Manufacturing
In this kind of layout the workstations are segmented into groups whic are based on the
products being manufactured. When product layout is implemented semi finished products
can be transfered from one workstation to another quickly in the production line. This kind of
layout is best suited for small business organizations handling lower volume of products.
When the number of products being manufactured increases it is necessary to implement
process layout into action.
Process Layout in Manufacturing
In this kind of layout similar workstations are grouped together which performs the same
operation without considering which kind of products being manufactured. Products are
manufactured in bulk which are transferred to the next section as semi finished goods. Better
coordination and supervision at the workstation is possible with process layout in
manufacturing. In process layout individual process work more effieciently leading to higher
profits.
5) What is product layout? Give an example and mention it pros and cons.
The product layout involves the arrangement of machines in one line, depending upon the
sequence of operations. A product layout is suitable when a product having standard features
is to be produced in large volumes.
ADVANTAGES
Easier material handling and less inventory costs
Less supervision & labour training costs
This type of layout avoids production bottlenecks
High efficiency of labour and equipment
No need of routing or scheduling once the line is operational
DISADVANTAGES
Maintenance cost is fairly high to ensure smooth running of the line
Inflexibility to design changes in products or processes
Breakdown of a machine or high absenteeism of workers leads to halt in production
Monotonous repetitive tasks lead to frustration for workers

6) Explain process layout with an example? Discuss its advantages and disadvantages.
ADVANTAGES
Maintenance cost is low because of low-cost general purpose machines
The system is more flexible to design changes in products or processes compared to
product layout
Breakdown of a machine does not lead to halt in production as substitute machines
are kept ready for such situations
The system promotes creativity of workers due to the variety of tasks performed by
them
DISADVANTAGES
Material handling is time-consuming as there is no fixed route
WIP inventory is usually high in batch processing
A low output rate and thus, high cost per unit
Routing & scheduling is tedious time consuming for different products
High cost of supervision because of special treatment to every product being
processed
7) What is fixed position layout? State its pros and cons.
In this type of layout, the material or major component remains in a fixed location, and tools,
machinery and men as well as other pieces of materials are brought to this location.
8) Write a note on line balancing method.
Line balancing is the study that nearly equally divides the work to be done among the
workers and minimises the number of employees required to complete the project.
The main focus of this method is to assign tasks to different work stations in such a way
that the total processing time at these workstations are equal.
Line balancing is also known as assembly line balancing.
Cycle Time: is the time for which a basic structure of the product is available before a
workstation. It is defined as the time period after which completed units comes off the
assembly line.
Bottleneck: A bottleneck in manufacturing is a point in the production process that has
less capacity than the demand placed on it.
Bottleneck operation: is the task requiring the longest operation time. (the duration of
the bottleneck operation is the minimum possible cycle time)

9) What is load distance analysis? Explain with an example.

Load Distance Analysis is used to compare alternative layouts to identify the one with
the least product or material travel time per period.
The layout with the lowest total (Load X Distance) or total (Load X Cost) is the best
choice.
Here the Load X Distance for all the alternative layouts is computed and the layout with
the lowest total (Load X Distance) is selected.

10) PROBLEMS ON LOAD DISTANCE ANALYSIS AND ASSEMBLY LINE (LINE

BALANCING) METHOD

Module III:
1) Write a note on aggregate planning in an organization.
Aggregate planning forms a part of PPC (Production planning and control is a tool
available to the management to achieve the stated production objectives). Thus, a
production system is encompassed by the four factors. i.e., quantity, quality, cost and
time. Planning is an exercise of intelligent anticipation in order to establish how an
objective can be achieved or a need fulfilled in circumstances, which are invariably
restrictive. Planning is an exercise of intelligent anticipation in order to establish how an
objective can be achieved or a need fulfilled in circumstances, which are invariably
restrictive. Aggregate planning involves planning workforce size, production rate
(working hours) and inventory levels.
2) What is operations planning and scheduling system?
These systems are concerned with the volume and timing of outputs, the utilisation of
operations capacity and balancing outputs with capacity at desired levels of competitive
effectiveness.
These systems must fit together activities at various levels, form top to bottom, in support of
one another.

3) What is an aggregate production planning? Explain the inputs and outputs for aggregate
production planning.
It is the process of determining output levels (units) of product groups over the next 6 to 18
months period.
The plan indicates the overall level of outputs supporting the business plan.
Aggregate planning determines the resource capacity a firm will need to meet its demand
over an intermediate time horizon in the future

4) What is level output plan and chase plan strategy?.

In this method, the inventory size is varied keeping the workforce size and utilisation of
workers constant.
Here under low demand situations, the excess units produced over demand are accumulated
as inventory.
And during high demand, the units required over the units produced are taken from
inventory.
 The advantage of this plan is that the cost of hiring and training the new workers as well as
the cost for laying off workers is zero.
The employee morale is high due to job security.
But during low demand, there is a high inventory cost due to its large size.
Chase plan: In this method, the workforce size is varied according to demand, keeping the
utilisation of workers and inventory size constant.
During months of low demand, the workforce size is decreased and the extra workers are laid
off.
And during the months of high demand, more workers are hired.
But these costs prove to be substantially high.
And the workers morale is also low due to insecurity
The production of items is in tune with the demand requirements, thus, inventory and
inventory handling cost is almost negligible.
During the months of high demand, overtime may be required on the part of workers, for
which the company incurs overtime cost.

5) What is varying utilization plan and chase plan?

Under this method, the utilisation of workers is varied keeping the workforce size (no. of
workers) and inventory size constant.
During the months of low demand, the workers produce less so as to match the demand and
they have a lot of idle time.
And during the months of high demand, the excess units required over regular production are
produced by overtime on the part of workers.
The idle time during the months of low demand is a loss to the company, whereas the
company incurs a high cost for the overtime paid during the months of high demand.
Excess overtime may also lead to less efficiency on the part of the workers.
Still, the company saves on inventory costs, which are almost negligible in this plan.

6) What is MPS? Explain the functions of MPS.

The master schedule provides details about the quantities and delivery timings of a
product, but not the production plan.
The Master Production Schedule (MPS) gives details about the quantities and timing
of the planned production of a product.
 It is derived from the master schedule by taking into account the inventory status of
the product in a given time period.
Available to promise inventory: provides the sales personnel with information about
how many units of a product they can commit to customers in a given time period
according to the MPS.
Time fences: are various time intervals set by production managers to regulate
changes in the MPS.
Functions of MPS:
To translate aggregate plans into specific end items
Evaluate alternative schedules
Generate material requirement
Generate capacity requirements
Facilitate information processing
Effective utilization of capacity

Module IV:
1) What is PPC? Explain the stages in PPC.
PPC is also referred to as Operations Planning and Control because the production planning
and control techniques used in production systems manufacturing can also be employed in
operations or service systems.
Stages in PPC
a) Planning
b) Operations
c) Control

2) Enumerate the objectives of PPC.

3) What are the three phases of PPC? Explain.
Planning Phase:
Production planning determines the optimal schedule and sequence of operations
economic batch quantity, machine assignment and dispatching priorities for sequencing.
It has two categories of planning namely
Prior planning: means pre-production planning. It includes Product development and
design, Forecasting, Aggregate planning and Material requirement planning.

Action Phase:
Action phase has the major step of dispatching.
Dispatching is the transition from planning phase to action phase. In this phase, the
worker is ordered to start manufacturing the product.
The tasks which are included in dispatching are job order, store issue order, tool order,
time ticket, inspection order, move order etc.

Control Phase : The control phase has the following two major modules:
A. Progress reporting: The various data pertaining to materials rejection, process
variations, equipment failures, operator efficiency, operator absenteeism, tool life, etc.,
are collected and analyzed for the purpose of progress reporting.
B. Corrective action: The tasks under corrective action primarily make provisions for an
unexpected event.
Some examples of corrective actions are creating schedule flexibility, schedule
modifications, capacity modifications, make or buy decisions, expediting the work, pre-
planning, and so on.

4) What is meant by PPC? Explain the functions of PPC.

Function of PPC
Pre-planning function:
Pre-planning is a macro level planning and deals with analysis of data and is an outline of
the planning policy based upon the forecasted demand, market analysis and product
design and development.
This stage is concerned with process design (new processes and developments,
equipment policy and replacement and work flow (Plant layout).
 Planning function;
The planning function starts once the task to be accomplished is specified, with the
analysis of four Ms, i.e., Machines, Methods, Materials and Manpower.
This is followed by process planning (routing). Both short-term (near future) and long-
term planning are considered.

Control function ;
Control function is effected by dispatching, inspection and expediting materials control,
analysis of work-in-process.
Finally, evaluation makes the PPC cycle complete and corrective actions are taken
through a feedback from analysis.

5) What is strategic, tactical and operational planning? Give examples.

6) What is scheduling? Explain the types of scheduling.

Scheduling can be defined as prescribing of when and where each operation necessary to
manufacture the product is to be performed.
The principle aim of scheduling is to plan the sequence of work so that production can be
systematically arranged towards the end of completion of all products by due date.
Types of Scheduling
Forward scheduling is commonly used in job shops where customers place their orders
on needed as soon as possible basis.
Forward scheduling determines start and finish times of next priority job by assigning it
the earliest available time slot and from that time, determines when the job will be
finished in that work centre.
The forward method generates in the process inventory that are needed at subsequent
work centers and higher inventory cost.

Backward scheduling is often used in assembly type industries and commit in advance
to specific delivery dates.
Backward scheduling determines the start and finish times for waiting jobs by assigning
them to the latest available time slot that will enable each job to be completed just when
it is due, but done before.
By assigning jobs as late as possible, backward scheduling minimizes inventories since a
job is not completed until it must go directly to the next work centre on its routing.
7) What is Routing? Explain the different techniques of routing.
Routing may be defined as the selection of path which each part of the product will follow
while being transformed from raw materials to finished products.
Path of the product will also give sequence of operation to be adopted while being
manufactured.
Techniques of Routing
1. Route card: This card always accompanies with the job throughout all operations. This
indicates the material used during manufacturing and their progress from one operation to
another.
2. Work sheet: It contains
a) Specifications to be followed while manufacturing.
b) Instructions regarding routing of every part with identification number of machines and
work place of operation.
3. Route sheet: It deals with specific production order. One sheet is required for each part or
component of the order.
These includes the following:
a) Number and other identification of order.
b) Symbol and identification of part.
c) Number of pieces to be made.
d) Number of pieces in each lot.
e) Operation data which includes:
i. List of operation on the part.
ii. Department in which operations are to be performed.
iii. Machine to be used for each operation.
iv. Fixed sequence of operation, if any.
f) Rate at which job must be completed, determined from the operation sheet
4. Move order: Though this is document needed for production control, it is used for routing
system.
Move order is prepared for each operation as per operation sheet.
On this the quantity passed forward, scrapped and to be rectified are recorded.
It is returned to planning office when the operation is completed.

8) PROBLEMS ON SEQUENCING
Module V:
1) What is material management? Explain the functions of materials management?
Materials management is a function, which aims for integrated approach towards the
management of materials in an industrial undertaking.
Its main objective is cost reduction and efficient handling of materials at all stages and in all
sections of the undertaking.
Functions of Material Management

2) Explain the objectives of materials management.

The prime objective of materials management is the optimum investment in inventory.
The main focus of materials management is to procure right materials in right quality, of
right quantity, at the right time, bought from right source and at right places.

The main objectives are divided into 2 categories:

1) Primary Objectives (directly contribute to the company objectives)
2) Secondary Objectives (indirectly contribute to the company objectives)
3) Discuss the objectives of inventory management.

4) Explain the different inventory costs in inventory management.

Setup Cost: This is the cost associated with setting up of machineries before starting the
production process.
Ordering Cost: This is a cost associated with ordering of raw materials for the
production purpose. It includes costs for preparing a purchase order, processing
payments, inspection of materials, etc.
Holding Cost (Carrying Cost): It represents the cost associated with storing the items in
the inventory. This cost is the proportional to the amount of inventory and the time over
which it is held.
This cost includes the opportunity cost of capital invested in the stock, costs directly
associated with storing goods (like store keepers salary, electricity expenses, protective
covers, transportation costs, etc.), obsolescence cost(like scrapping & possible rework),
Deterioration cost, indirect cost of general insurance, etc.
Shortage Cost: The penalty cost for running out of stocks is known as shortage costs.
This cost includes the loss of potential profit, loss of goodwill, permanent loss of
customers, loss associated with future sales, etc.

5) What is inventory control? State the objectives of inventory control?

Inventory control is a planned approach of determining what to order, when to order and how
much to order and how much to stock so that costs associated with buying and storing are
optimal without interrupting production and sales.
Objectives of Inventory Control
1) To ensure adequate supply of products to customer and avoid shortages as far as possible.
2) To make sure that the financial investment in inventories is minimum (i.e., to see that the
working capital is blocked to the minimum possible extent).
3) Efficient purchasing, storing, consumption and accounting for materials is an important
objective.
4) To maintain timely record of inventories of all the items and to maintain the stock within
the desired limits.
5) To ensure timely action for replenishment.
6) To provide a reserve stock for variations in lead times of delivery of materials.
6) What is inventory management and control? What are the factors affecting inventory
management and control?

Factors affecting Inventory Management & Control

Type of Product
Type of Manufacture
Volume of production
Other factors
The objectives of the company
The qualifications & capabilities of staff personnel
The nature and size of inventories
The capability of present and future data processing equipment.
The present method for controlling inventories, and for making inventory decisions.

7) What is inventory control? Explain any four inventory control techniques.

Inventory control is a planned approach of determining what to order, when to order and how
much to order and how much to stock so that costs associated with buying and storing are
optimal without interrupting production and sales.

Any four inventory control techniques.

GOLF Analysis
SOS Analysis
XYZ Analysis
Max-Minimum system
Two bin system
EOQ
ABC analysis
HML analysis
VED analysis
FSN analysis
SDE analysis
8) Explain the EOQ Model. EOQ problem

Module VI:
1) What is a project? Explain the different phases of a project with an example.
A Project is a unique one-time operations designed to accomplish a specific set of objectives
in a limited time frame.
Different phases of a project

2) What is project management? What are the key decisions in project management?
Project management: is the discipline of planning, organizing, motivating, and controlling
resources to achieve specific goals.
In simple words, it can be defined as a set of tools, skills, techniques, and knowledge that can
be applied to a project in order to fulfil that project's requirements.
Key Decisions in Project Management
Deciding which project to implement
 Selecting the project manager
Selecting the members of the project team
Managing and controlling project resources
Deciding whether to terminate a project and if so, when.

3) Describe the various phases in a project life cycle with an example.

The Concept Phase
Feasibility phase
Detailed Planning Phase
Organisation Phase
Execution Phase
Termination Phase

4) Enumerate the key decisions to be taken in project management.(repated)

5) What is meant by project scheduling technique? Explain one of the techniques in detail.
Scheduling Chart (Gantt Chart)
PERT (Programme Evaluation and Review Technique)
CPM (Critical Path Method)

6) What is Gantt Chart? State the pros and cons of Gantt Chart.
Gantt Chart also known as horizontal bar chart is the most frequently used tool to manage
small projects.
Its a standard tool that allows managers to plan and control a project and that also shows the
timing of each task.
Henry Laurence Gantt (1861-1919) developed the Gantt chart in the early 1900s.
Pros and Cons for Gantt Charts
Merits:
These are easy to understand
They are simple enough to modify
They involve low cost
Demerits:
These charts do not adequately indicate the degree of interrelationships among the
projects activities.
7) What is CPM technique? Explain the steps involved in drawing up a CPM network.
Critical Path Method (CPM) refers to a quantitative technique which when applied to
network planning, is helpful in calculating the minimum time and the sequence of tasks
needed to complete a project.
It is a technique used for planning and coordinating large projects.

Steps involved in drawing up a CPM network.

1) Analyze and break up the entire project into smaller systems i.e. specific activities and/or
events.
2) Determine the interdependence and sequence of those activities.
3) Draw a network diagram.
4) Estimate the completion time, cost, etc. for each activity.
5) Identify the critical path (longest path through the network).
6) Update the CPM/PERT diagram as the project progresses.

8) What is PERT? Give the pros and cons for PERT.

PERT (Project Evaluation and Review Techniques) is a networking approach to planning,
monitoring, controlling and evaluation of complex projects
In other words, if any task on the critical path takes longer than expected, the end date of the
project will be affected.

Pros and cons for PERT.

Advantages of Pert
Simple in concept and not complex mathematically.
Networks help to perceive quickly relationships among project activities.
Useful in monitoring both time schedules and costs.
Applicable to a wide variety of projects and industries.
Disadvantages of Pert
Project activities must be clearly defined, independent and stable in their relationship.
Precedence relationships must be specified and networked together.
Time estimates tend to be subjective and are subject to judging by managers.
Too much emphases is placed on the longest or critical path and near critical path is not
monitored closely.
9) Mention the differences between PERT and CPM methods.
CPM is an activity oriented approach where as PERT is an event oriented approach.
CPM is a deterministic model and ignores probabilistic element of the problem. PERT,
however, is a probabilistic model and takes into account time uncertainty.
CPM is commonly used for those projects which are repetitive in nature. PERT is widely
used for one-time projects like planning and scheduling research development projects.
CPM places dual emphasis on time and cost and evaluates the trade-off between project
cost and project time. On the other hand, PERT is primarily concerned with time. It helps
the manager to schedule and coordinate various activities so that the project can be
completed on scheduled time.

10) Enumerate the roles and responsibilities of a project manager.

Responsibilities of the Project Manager
Work: accomplish activities necessary and meet the performance objectives.
Human Resources: direct and motivate employees.
Communication: disseminate information to everyone for carrying out their tasks
properly.
Quality: effectively maintain quality so that performance objectives are met.
Time: maintain time and complete project on schedule.
Costs: manage costs efficiently so as to keep the project with in budget.

Role of a Project Manager

Manage the projects scope to define the goals and work to be done.
Manage people involved in the project.
Manage communications to see that the appropriate parties are informed.
Manage time by planning and meeting a schedule.
Manage quality so that the projects results are satisfactory.
Manage costs so that the project is performed at the minimum cost possible.

11) What is a network diagram? State the symbols and terms used in network based techniques.

12) PROBLEMS ON NETWORK DIAGRAMS

Module VII:
1) Define the term work study and state its objectives.
Work study is a means of enhancing the production efficiency (productivity) of the firm by
elimination of waste and unnecessary operations.
objectives.
To analyse the present method of doing a job in order to develop a new and better
method.
To measure the work content of a job by measuring the time required to do the job
and hence establish a standard time.
To increase the productivity by ensuring the best possible use of human, machine
and material resources.
To improve operational efficiency.

2) What is work study? List out the benefits of work study.

Work study is a generic term for those techniques (method study and work measurement)
which are used in the examination of human work in all its contexts. And which lead
systematically to the investigation of all the factors which affect the efficiency and economy
of the situation being reviewed, in order to effect improvement.
benefits of work study
It helps to achieve the smooth production flow with minimum interruptions.
It helps to reduce the cost of the product by eliminating waste and unnecessary
operations.
Better worker-management relations.
Meets the delivery commitment.
Reduction in rejections and scrap and higher utilization of resources of the organization.
Helps to achieve better working conditions.
Better workplace layout.
Improves upon the existing process or methods and helps in standardization and
simplification.
Helps to establish the standard time for an operation or job which has got application in
manpower planning, production planning.
3) Define method study and state the objectives of method study.
Method study is the systematic recording and critical examination or existing and proposed
ways or doing work as a means or developing and applying easier and more effective
methods and reducing cost.
objectives of method study.
To study the existing proposed method of doing any job, operation or activity.
To develop an improved method to improve productivity and to reduce operating costs.
To reduce excessive material handling or movement and thereby reduce fatigue to
workmen.
To improve utilisation of resources.
To eliminate wasteful and inefficient motions.
To standardise work methods or processes, working conditions, machinery, equipments
and tools.

4) What is motion economy? What are the various principles of motion economy?

5) What is work measurement? State the objectives of work measurement.

Work Measurement is defined as the application of techniques designed to establish the work
content of a specified task by determining the time required for carrying out the task at a
defined standard of performance by a qualified worker.
objectives of work measurement.
a) Comparing alternative methods.
b) Assessing the correct initial manning (manpower requirement planning).
c) Planning and control.
d) Realistic costing.
e) Financial incentive schemes.
f) Cost reduction and cost control.
g) Identifying substandard workers.
h) Training new employees.

6) What is time study? State the objectives of time study.

In other words measuring the time through stop watch is called time study.
Objectives of time study
7) Discuss the steps involved for conducting time study.
8) What is work sampling? Enumerate the steps involved in work sampling.
Work sampling is a technique in which a large number of observations are made over a
period of time of one or group of machines, processes or workers.
Steps involved in work sampling
1) Determine the objective of the study.
2) Plan the sampling procedure including:
a) An estimate of the percentage of time being devoted to each phase of the activity
b) The setting of accuracy limits
c) An estimate of the number of observations required
d) Selection of length of the study period
e) Establish the mechanics of making observations, the route to follow and recording
of data.
3) Collect the data as planned
4) Process the data and present the results

Module VIII:
1) What is Quality? What is the need for Quality Control?
The word quality does not mean the quality of manufactured product only. It may refer to the
quality of the process (i.e., men, material, and machines) and even that of management.
The need for Quality Control
1) No yardstick for comparing the quality of goods/services.
2) Difficulty in maintaining consistency in quality.
3) Dissatisfied customers due to increased maintenance and operating costs of
products/services.
4) Increased rework cost while manufacturing products/providing services.
5) Reduced life time of the products/services.
6) Reduced flexibility with respect to usage of standard spare parts.
7) Hence, controlling quality is an essential activity.

2) What is Quality Control? What is the need for QC in an organization?

It is a systematic control of various factors that affect the quality of the product and it
depends on materials, tools, machines, type of labour, working conditions etc.
3) Explain the various types of quality control categories.
Off-line quality control: Its procedure deal with measures to select and choose
controllable product and process parameters in such a way that the deviation between the
product or process output and the standard will be minimized. Much of this task is
accomplished through product and process design.
Statistical process control: SPC involves comparing the output of a process or a service
with a standard and taking remedial actions in case of a discrepancy between the two.
Acceptance sampling plans: A plan that determines the number of items to sample and
the acceptance criteria of the lot, based on meeting certain stipulated conditions (such as
the risk of rejecting a good lot or accepting a bad lot) is known as an acceptance sampling
plan.

4) In an organization how can Quality control have its impact in making decision?
5) State few objectives of quality control.
To improve the companies income by making the production more acceptable to the
customers, i.e., by providing long life, greater usefulness, maintainability etc.
To reduce companies cost through reduction of losses due to defects.
To achieve interchangeability of manufacture in large scale production.
To produce optimal quality at reduced price.
To ensure satisfaction of customers with productions or services or high quality level, to
build customer goodwill, confidence and reputation of manufacturer.
To make inspection prompt to ensure quality control.
To check the variation during manufacturing.

6) What are the benefits of quality control?

Improving the quality of products and services.
Increasing the productivity of manufacturing processes, commercial business,
corporations.
Reducing manufacturing and corporate costs.
Determining and improving the marketability of products and services.
Reducing consumer prices of products and services.
Improving and/or assuring on time deliveries and availability.
Assisting in the management of an enterprise.
7) Explain any four quality control techniques.
Pareto charts
Check sheets
Cause and effect diagram
Scatter diagrams
Histogram
Graphs or flow charts
Control charts

8) What is SQC? What are its advantages?

Statistical quality control (SQC) is the term used to describe the set of statistical tools used
by quality professionals.
Advantages

9) What are quality control charts? Explain the two types of control charts.
10) PROBLEMS ON CONTROL CHARTS