JANNEL YZA S.

GUNIDA

BSBA IV

OPERATION AND PRODUCTION MANAGEMENT

EXERCISES:

SECTION A.

1. What do you mean by Production?

- Production is defined as “the step-by-step conversion of one form of material into
another form through chemical or mechanical process to create or enhance the utility
of the product to the user.” Thus production is a value addition process. At each stage
of processing, there will be value addition.
- Edwood Buffa defines production as ‘a process by which goods and services are
created’.

2. What do you mean by Production System?

- The production system of an organization is that part, which produces products of an
organization. It is that activity whereby resources, flowing within a defined system,
are combined and transformed in a controlled manner to add value in accordance with
the policies communicated by management.

3. Mention the different types of production system

- Production systems can be classified as Job Shop, Batch, Mass and Continuous
Production systems.
4. What is Job Shop Production?
- Job shop production are characterized by manufacturing of one or few quantity of
products designed and produced as per the specification of customers within prefixed
time and cost.

5. What is a batch Production?

- Batch production is defined by American Production and Inventory Control Society
(APICS) “as a form of manufacturing in which the job passes through the functional
departments in lots or batches and each lot may have a different routing.” It is
characterized by the manufacture of limited number of products produced at regular
intervals and stocked awaiting sales.

6. What is a Mass Production?

- Manufacture of discrete parts or assemblies using a continuous process are called
mass production.

7. What is a continuous production?

- Production facilities are arranged as per the sequence of production operations from
the first operations to the finished product. The items are made to flow through the
sequence of operations through material handling devices such as conveyors, transfer
devices, etc.

8. Mention any 4 advantages of job shop production.

- 1. Because of general purpose machines and facilities variety of products can be
produced.
- 2. Operators will become more skilled and competent, as each job gives them
learning opportunities.
- 3. Full potential of operators can be utilized.
 - 4. Opportunity exists for creative methods and innovative ideas
9. Mention any 4 limitation of job shop production.
- 1. Higher cost due to frequent set up changes.
- 2. Higher level of inventory at all levels and hence higher inventory cost.
- 3. Production planning is complicated.
- 4. Larger space requirements.

10. Mention any 4 advantages of batch production

- 1. Better utilization of plant and machinery.
- 2. Promotes functional specialization.
- 3. Cost per unit is lower as compared to job order production.
- 4. Lower investment in plant and machinery.

11. Mention any 4 limitation of batch production.

- 1. Material handling is complex because of irregular and longer flows.
- 2. Production planning and control is complex.
- 3. Work in process inventory is higher compared to continuous production.
- 4. Higher set up costs due to frequent changes in set up

12. Mention any 4 advantages of mass production.

- 1. Higher rate of production with reduced cycle time.
- 2. Higher capacity utilization due to line balancing.
- 3. Less skilled operators are required.
- 4. Low process inventory.

13. Mention any 4 limitation of mass production.

- 1. Breakdown of one machine will stop an entire production line.
 - 2. Line layout needs major change with the changes in the product design.
- 3. High investment in production facilities.
- 4. The cycle time is determined by the slowest operation.

14. Mention any 4 advantages of continuous production.

1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.

15. Mention any 4 limitation of continuous production.

- 1. Flexibility to accommodate and process number of products does not exist.
- 2. Very high investment for setting flow lines.
- 3. Product differentiation is limited.

16. Define Production Management

- Production management is a process of planning, organizing, directing and
controlling the activities of the production function. It combines and transforms
various resources used in the production subsystem of the organization into value
added product in a controlled manner as per the policies of the organization.

17. Mention any 4 objectives of production management.

- 1. RIGHT QUALITY The quality of product is established based upon the customers
needs. The right quality is not necessarily best quality. It is determined by the cost of
the product and the technical characteristics as suited to the specific requirements.

- 2. RIGHT QUANTITY The manufacturing organization should produce the products

in right number. If they are produced in excess of demand the capital will block up in
 the form of inventory and if the quantity is produced in short of demand, leads to
shortage of products.

- 3. RIGHT TIME Timeliness of delivery is one of the important parameter to judge

the effectiveness of production department. So, the production department has to
make the optimal utilization of input resources to achieve its objective.

- 4. RIGHT MANUFACTURING COST Manufacturing costs are established before

the product is actually manufactured. Hence, all attempts should be made to produce
the products at pre-established cost, so as to reduce the variation between actual and
the standard (pre-established) cost.

18. Define Operating System

- Operating system converts inputs in order to provide outputs which are required by a
customer. It converts physical resources into outputs, the function of which is to
satisfy customer wants i.e., to provide some utility for the customer.

19. How do you manage operation?

- Managing operations can be enclosed in a frame of general management function as
shown in Fig. 1.3. Operation managers are concerned with planning, organizing, and
controlling the activities which affect human behaviour through models

20. What do you mean by operation?

- An operation is defined in terms of the mission it serves for the organization,
technology it employs and the human and managerial processes it involves.
Operations in an organization can be categorized into manufacturing operations and
service operations.
 21. What do you mean by Manufacturing Operations?
- Manufacturing operations is a conversion process that includes manufacturing yields
a tangible output: a product, whereas, a conversion process that includes service
yields an intangible output: a deed, a performance, an effort.

22. What do you mean by Service Operations?

- Service is characterized by intangible outputs, outputs that customers consumes
immediately, jobs that use more labor and less equipment, direct consumer contact,
frequent customer participation in the conversion process, and elementary methods
for measuring conversion activities and resource consumption.

23. What do you mean by Globalization?

- The term ‘globalization’ describes businesses’ deployment of facilities and operations
around the world. Globalization can be defined as a process in which geographic
distance becomes a factor of diminishing importance in the establishment and
maintenance of cross border economic, political and socio-cultural relations. It can
also be defined as worldwide drive toward a globalized economic system dominated
by supranational corporate trade and banking institutions that are not accountable to
democratic processes or national governments.

SECTION B

1. Briefly explain the production system and its characteristic.

The production system of an organization is that part, which produces products of

an organization. It is that activity whereby resources, flowing within a defined system, are
combined and transformed in a controlled manner to add value in accordance with the
policies communicated by management. A simplified production system is shown
above.The production system has the following characteristics:

-Production is an organized activity, so every production system has an objective.

-The system transforms the various inputs to useful outputs.
-It does not operate in isolation from the other organization system.
-There exists a feedback about the activities, which is essential to control and improve
system performance.

2. What is Job Shop Production? What are its characteristic, advantages and limitation?

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. The distinguishing feature of this is low volume and
high variety of products. A job shop comprises of general purpose machines arranged
into different departments. Each job demands unique technological requirements,
demands processing on machines in a certain sequence.

Characteristics
The Job-shop production system is followed when there is:

1. High variety of products and low volume.

2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of
uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each product,
capacities for each work centre and order priorities.

Advantages
Following are the advantages of job shop production:

1. Because of general purpose machines and facilities variety of products can be

produced.
2. Operators will become more skilled and competent, as each job gives them
learning opportunities.
3. Full potential of operators can be utilised.
4. Opportunity exists for creative methods and innovative ideas.
 Limitations

Following are the limitations of job shop production:

1. Higher cost due to frequent set up changes.

2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.

3. What is a batch production? What are its characteristic, advantages and limitation?

Batch production is defined by American Production and Inventory Control Society

(APICS) “as a form of manufacturing in which the job passes through the functional
departments in lots or batches and each lot may have a different routing.” It is
characterised by the manufacture of limited number of products produced at regular
intervals and stocked awaiting sales.

Characteristics
Batch production system is used under the following circumstances:

1. When there is shorter production runs.

2. When plant and machinery are flexible.
3. When plant and machinery set up is used for the production of item in a batch and
change of set up is required for processing the next batch.
4. When manufacturing lead time and cost are lower as compared to job order
production.

Advantages
Following are the advantages of batch production:

1. Better utilisation of plant and machinery.

2. Promotes functional specialisation.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
 Limitations
Following are the limitations of batch production:

1. Material handling is complex because of irregular and longer flows.

2. Production planning and control is complex
3. Work in process inventory is higher compared to continuous production.
4. Higher set up costs due to frequent changes in set up.

4. What is a mass production? What are its characteristic, advantages and limitation?

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.

Characteristics
Mass production is used under the following circumstances:

1. Standardisation of product and process sequence.

2. Dedicated special purpose machines having higher production capacities and
output rates. 3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.
7. Flow of materials, components and parts is continuous and without any back
tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.

Advantages
Following are the advantages of mass production:

1. Higher rate of production with reduced cycle time.

2. Higher capacity utilisation due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
 Limitations
Following are the limitations of mass production:

1. Breakdown of one machine will stop an entire production line.

2. Line layout needs major change with the changes in the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.

5. What is continuous production? What are its characteristics, advantages and

limitations?

Production facilities are arranged as per the sequence of production operations from
the first operations to the finished product. The items are made to flow through the
sequence of operations through material handling devices such as conveyors, transfer
devices, etc.

Characteristics
Continuous production is used under the following circumstances:

1. Dedicated plant and equipment with zero flexibility

2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with final product.
5. Planning and scheduling is a routine action.

Advantages
Following are the advantages of continuous production:

1. Standardisation of product and process sequence.

2. Higher rate of production with reduced cycle time.
3. Higher capacity utilisation due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
5. Person with limited skills can be used on the production line.
6. Unit cost is lower due to high volume of production.
 Limitations
Following are the limitations of continuous production:

1. Flexibility to accommodate and process number of products does not exist.

2. Very high investment for setting flow lines.
3. Product differentiation is limited.

6. Explain in brief the objectives of production management.

The main objective of production management is to produce goods and services

of the right quality, right quantity, at the right time and at minimum cost. It also tries
to improve the efficiency. An efficient organization can face competition effectively.
Production management ensures full or optimum utilization of available production
capacity.

7. Explain in brief the objectives of operations management.

 Customer Service: The primary objective of operations management, is to utilize the

resources of the organization, to create such products or services that satisfy the needs
of the consumers, by providing “right thing at the right price, place and time”.
 Resource Utilization: To make the best possible use of the organization’s resources
to satisfy the wants of the consumers, is another important objective of the operations
management.

8. Distinguish between manufacturing operations and service operations.

Manufacturing operations produce tangible goods, which are physical products

that can be held and seen. Manufacturing can be broken down into two branches:
process and discrete manufacturing. While process manufacturers produce goods
that typically use a formula and ingredients, such as soda pop or pharmaceutical
drugs, discrete manufacturers produce goods from parts, such as electronics,
appliances and automobiles. On the other hand, service operations provide certain
intangible services that may not be easily identifiable. Service operations can be
classified into many industries, such as banking, hospitality, advertising and
consultancy.
 9. Explain the key issues to be considered for managing global operations.

Managing global operations would focus on the following key issues:

 To acquire and properly utilize the following concepts and those related to
global operations, supply chain, logistics, etc.
 To associate global historical events to key drivers in global operations from
different perspectives.
 To develop criteria for conceptualization and evaluation of different global
operations.
 To associate success and failure cases of global operations to political, social,
economical and technological environments.
 To envision trends in global operations.
 To develop an understanding of the world vision regardless of their country of
origin, residence or studies in a respectful way of perspectives of people from
different races, studies, preferences, religion, politic affiliation, place of origin, etc.

SECTION C

1. Explain the different types of production system.

JOB SHOP PRODUCTION

Job shop production are characterized by manufacturing of one or few quantity

of products designed and produced as per the specification of customers within prefixed
time and cost. The distinguishing feature of this is low volume and high variety of
products. A job shop comprises of general-purpose machines arranged into different
departments. Each job demands unique technological requirements, demands
processing on machines in a certain sequence.

BATCH PRODUCTION

Batch production is defined by American Production and Inventory Control

Society (APICS) “as a form of manufacturing in which the job passes through the
functional departments in lots or batches and each lot may have a different routing.” It
is characterized by the manufacture of limited number of products produced at regular
intervals and stocked awaiting sales.

MASS PRODUCTION
 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.

CONTINUOUS PRODUCTION

Production facilities are arranged as per the sequence of production operations

from the first operations to the finished product. The items are made to flow through the
sequence of operations through material handling devices such as conveyors, transfer
devices, etc.

2. Explain the framework of managing operations.

The operational framework generally describes the corporate organization or

management structure. This includes how leaders will govern the company and the
hierarchy of its divisions or management teams. For example, the framework may set
out the levels of management, from the CEO to department heads and ordinary
managers. Accompanying this might be a chart illustrating the corporate hierarchy. In
smaller firms, this section might simply state the corporate structure, such as owner-
operator.

3. Explain the scope of production and operations management.

Production and operations management concern with the conversion of inputs into
outputs, using physical resources, so as to provide the desired utilities to the customer while
meeting the other organizational objectives of effectiveness, efficiency and adaptability. It
distinguishes itself from other functions such as personnel, marketing, finance, etc., by its
primary concern for ‘conversion by using physical resources.’ Following are the activities
which are listed under production and operations management functions:

1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials management
8. Maintenance management.