1) What are the inputs required to run a material requiremet planning system ?

Material Requirements Planning (MRP) is a system that helps organizations plan and
manage the materials required for manufacturing a product. The inputs required to run an
MRP system typically include:

1. Master Production Schedule (MPS): This is a detailed plan that specifies the quantity
and timing of production for each finished product. It serves as a primary input to the MRP
system.
2. Bill of Materials (BOM): The BOM is a hierarchical list of all the components, sub-
assemblies, and raw materials needed to manufacture a finished product. It outlines the
structure and relationships between different items.
3. Inventory Status: The current status of inventory for each item in the system, including
the quantity on hand, on order, and on backorder. This information is crucial for
determining what needs to be ordered.
4. Lead Times: The time it takes for a supplier to deliver materials or components after
an order is placed. Accurate lead time information is essential for calculating when to place
orders to meet production requirements.
5. Supplier Information: Details about suppliers, including contact information, terms,
and conditions. This information is necessary for placing orders and managing the
procurement process.
6. Work Orders: Information about the current work orders, including the quantity to be
produced, start and end dates, and the progress of work. This helps in coordinating
production activities.
7. Forecasted Demand: Predictions of future demand for finished products. While this is
not always precise, it helps in planning production and ordering materials ahead of time.
9. Order Policies: Guidelines for managing inventory and placing orders, including order
quantities, order frequency, and reorder points. These policies help in optimizing the
balance between holding costs and stockouts.
10. ERP (Enterprise Resource Planning) System: Many MRP systems are integrated
into larger ERP systems. In such cases, data from other modules such as finance, human
resources, and sales can also be important inputs.

2) Name three key strategies for meeting customer demand while planning for production ?
Meeting customer demand while effectively planning for production involves careful
strategies to ensure timely delivery of products and optimal use of resources. Here are three
key strategies:

1. Demand Forecasting and Planning:

Accurately forecasting customer demand is crucial. By analyzing historical data, market
trends, and customer behavior, businesses can make informed predictions about future
demand.
 - Collaborative Planning: Collaborate with key stakeholders, including sales and
marketing teams, to gather insights and inputs for demand planning. This ensures that the
production plan aligns closely with expected market demand.
2. Agile and Flexible Manufacturing:
- Flexible Production Processes: Design production processes that can adapt to changes
in demand quickly. This includes having the ability to scale production up or down based
on fluctuations in customer orders.
- Quick Changeovers: Minimize downtime between production runs by implementing
quick changeover procedures. This allows for more frequent adjustments to the production
schedule in response to changes in demand.
3. Effective Inventory Management:
- Safety Stock: Maintain an appropriate level of safety stock to mitigate the impact of
unexpected demand fluctuations or supply chain disruptions. This ensures that even during
peak demand periods, there are sufficient goods available for customers.
- Just-in-Time (JIT) Inventory: Implementing JIT principles helps in reducing excess
inventory and associated holding costs. JIT aims to produce and deliver goods just in time
to meet customer demand, minimizing the need for large inventories.
3) Explain DMAIC in the context of six sigma quality ?
DMAIC is a structured problem-solving methodology used in the context of Six Sigma
quality management. Six Sigma is a set of techniques and tools for process improvement,
aiming to reduce defects, improve efficiency, and enhance overall quality. DMAIC is an
acronym that represents the five phases of this methodology
1 .Define:
- Clearly define the problem or improvement opportunity. Identify the project's goals and
scope.
-Customer Requirements: Understand and define the requirements and expectations of
the customer related to the process or product under consideration.
-Project Charter:Develop a project charter that outlines the purpose, scope, team
members, and expected timeline for the improvement project.
2. Measure:
- Baseline Measurement: Establish a baseline for the current performance of the process
by collecting relevant data. This involves identifying key metrics and measurement points.
- Data Collection:Use appropriate measurement techniques and tools to gather data.
Ensure that the data collected is accurate and representative of the process.
3. Analyze:
 - Root Cause Analysis: Identify the root causes of the issues or variations observed in the
process. Analytical tools such as Pareto charts, fishbone diagrams, and statistical analysis
are often employed.
- **Data Analysis: Analyze the collected data to identify patterns, trends, and correlations
that can help uncover the factors contributing to the problem.
4. Improve:
- Generate Solutions: Based on the analysis, brainstorm and generate potential solutions
to address the root causes identified.
- Optimization:Evaluate and select the most effective solutions. Implement process
improvements and modifications to achieve the desired outcomes.
5. Control:
- Standardization: Develop and implement standardized procedures to sustain the
improvements achieved in the Improve phase.
- Monitoring: Establish control mechanisms and metrics to continuously monitor the
process performance. This ensures that the process remains in a state of control and
continues to meet the desired quality standards.
DMAIC is a cyclical and iterative process, meaning that once the Control phase is
completed, the team can go back to the Define phase to identify and work on new
improvement opportunities. This iterative nature allows organizations to continuously
enhance their processes and maintain a focus on delivering high-quality products or
services to customers.

4) Explain in brief – the push system , the pull system , the push-pull system as a supply
chain strategy ?

➢ Push System:
• In a push system, production decisions are made based on forecasts and predictions of
future demand. Products are manufactured and pushed through the supply chain without
waiting for customer orders.
• High levels of inventory are maintained at various stages of the supply chain to meet
anticipated demand. Production is often driven by a predetermined schedule rather than
actual customer orders.
• Efficient for products with stable and predictable demand. Allows for economies of
scale in production.

➢ Pull System:
• In a pull system, production is initiated in response to actual customer demand. Products
are pulled through the supply chain as customer orders are received.
• Inventory levels are kept minimal, and production is triggered by specific customer
orders or consumption signals. This approach aims to minimize waste and improve
responsiveness to customer needs.
 • Reduces excess inventory and associated carrying costs. Enhances flexibility and
responsiveness to changes in customer demand.

➢ Push-Pull System (Hybrid System)

• A push-pull system combines elements of both push and pull strategies to optimize the
supply chain. The upstream part of the supply chain operates on a push basis, while the
downstream part operates on a pull basis.
• Upstream stages, such as manufacturing and distribution, use forecasts and push
inventory based on expected demand. Downstream stages, closer to the customer,
operate on a pull basis, responding to actual orders.
• Allows for efficient production planning and economies of scale in upstream stages,
while maintaining responsiveness to customer demand in downstream stages.

5) The driving force of Toyota Production Systems [TPS] is the elimination of waste. Briefly
explain the seven different types of wastes under TPS.

• The Toyota Production System (TPS) is all about streamlining and efficiency. It
aims to eliminate wasteful activities that add no value to the customer. These wastes
are often called the "Seven Deadly Wastes," and each one represents an area where
a process could be improved.
• Overproduction: Making more than what's needed. Imagine baking a dozen
cookies when you only have two guests coming over. Those extra cookies might go
stale, or you might end up overindulging. In manufacturing, overproduction leads
to excess inventory, which takes up space, ties up resources, and can eventually
become obsolete.
• Transportation: Moving things unnecessarily. Think about carrying groceries all
the way from the store to your car, then back to your kitchen when you could have
unloaded them directly. In a factory, this waste could involve moving parts or
materials around more than once during the production process.
• Waiting: Idle time due to delays or inefficiencies. Picture being stuck in a long
line at the bank when you only have a quick errand to run. In manufacturing, waiting
could mean machines sitting idle while they wait for materials or instructions.
• Inventory: Having too much stock on hand. This is like having a closet
overflowing with clothes you never wear. Excess inventory ties up valuable space
and resources, and it can also lead to product deterioration or obsolescence.
• Motion: Wasted physical movement by people or machines. Think about pacing
back and forth while you're on hold with customer service. In a factory, this could
involve workers taking extra steps to reach tools or materials, or machines
performing unnecessary movements.
 • Defects: Producing items that don't meet quality standards. Imagine baking a cake
that comes out burnt or undercooked. In manufacturing, defects lead to rework or
scrap, which wastes time, materials, and money.
• Over processing: Doing more work than necessary. This is like writing a ten-
page report when a one-pager would suffice. In manufacturing, over processing
could involve using complex methods or tools when simpler ones would do the job
just as well.
• By eliminating these seven wastes, Toyota Production Systems can create a
leaner, more efficient operation that delivers value to customers without wasting
resources.

6) Explain Mass Production as opposed to Mass Customization - in brief draw the distinct
difference between the two concepts with suitable example

Imagine making pizzas:

Mass Production:
• One standard pizza: Like a pre-made frozen pizza, everyone gets the same toppings and crust.
This is fast and efficient, perfect for busy days.
• Large quantities: Imagine cranking out hundreds of these pizzas all day long. Standardization
makes it faster and cheaper to produce each one.
• Limited options: No personalization allowed. Want pineapple? Tough luck! This approach
appeals to a broad audience with similar tastes.
Mass Customization:
• Build your own pizza: Choose your crust, sauce, toppings, the works! You get exactly what
you crave, even if it's just mushrooms and extra cheese.
• Flexibility: The process adapts to individual preferences. Think of a pizza buffet with all the
ingredients laid out for you to create your masterpiece.
• Higher cost: Customizing takes more time and effort, so expect a higher price tag compared
to the standard frozen pizza.
• Mass Production: One-size-fits-all, prioritizing affordability and speed.
• Mass Customization: Personalized experiences, offering flexibility at a slightly higher cost.
Examples:
• Mass Production: Ford Model T cars, IKEA furniture, white T-shirts.
• Mass Customization: Nike iD shoes, Starbucks coffee with endless customizations, Dell
computers built to your specifications.
• It depends! When everyone wants the same basic thing, mass production wins. But for those
who crave individuality and control, mass customization reigns supreme..

7) In the context of waiting lines, explain degree of patience

 • "degree of patience" refers to a person's individual tolerance for the discomfort and
inconvenience of waiting. It determines how long someone is willing to wait before
their frustration or dissatisfaction outweighs the perceived value of the service they're
waiting for.
Here's a breakdown of different "degrees of patience":
• High Patience: These individuals can handle long waits with minimal negativity. They
might see it as an opportunity to relax, read a book, or catch up on their phone. For
them, the benefit of reaching the front of the line outweighs the temporary discomfort.
• Moderate Patience: These individuals accept waiting as a necessary part of life, but
have a limit. They might start to get restless or annoyed after a certain amount of time,
especially if the wait seems disorganized or unfair.
• Low Patience: These individuals become easily frustrated and agitated when waiting.
They might fidget, complain, or even abandon the line altogether if they perceive the
wait as excessive or unreasonable.

Several factors can influence a person's degree of patience, including:

• Expected wait time: Knowing how long the wait will be can help manage expectations
and maintain patience.
• Reason for waiting: Waiting for something important or enjoyable might be more
tolerable than waiting for something mundane.
• Individual personality: Some people are naturally more patient than others.
• External factors: Stress, fatigue, and hunger can all lower a person's tolerance for
waiting.
8) Enumerate the different types of facility layouts. Explain any one with examples?
Process Layout:
• Grouping similar equipment and functions together.

• Examples: Chemical plants, hospitals, machine shops.

• Advantages: Efficient for low-volume, high-variety production, allows for
specialization and skill development.
• Disadvantages: Increased material handling, potentially longer processing times, less
flexibility to changing product demands.
• Example: Imagine a hospital lab. Blood testing equipment, X-ray machines, and other
analytical tools are organized by function, not by patient flow. This allows for efficient
use of specialized equipment and skilled technicians, regardless of the specific tests
each patient needs.
• Product Layout:
• Focus: Arranging equipment and work stations in a sequential order along a
production line.
• Examples: Assembly lines for cars, electronics, food processing.
 • Advantages: High production volumes, reduced material handling, efficient for
standardized products.
• Disadvantages: Less flexible to product changes, high initial investment, requires
good production planning and coordination.
• Example: A car assembly line is a classic example. Parts are moved from station to
station, where workers perform specific tasks, culminating in the finished product. This
linear flow optimizes production for high volumes of the same model.
• Fixed Position Layout:
• Focus: The product remains stationary, and workers and equipment move around it.
• Examples: Shipbuilding, aircraft assembly, construction sites.
• Advantages: Suitable for large, immobile products, allows for customization and
flexibility.
• Disadvantages: High labor costs, potential safety hazards, inefficient material
handling in some cases.
• Example: Building a large ship requires workers and equipment to move around the
hull, rather than the hull being constantly transported. This allows for customization
and adaptation to specific features while managing the sheer size of the product.
• Cellular Layout:
• Focus: Grouping machines and workers into small, self-contained teams responsible
for complete modules of a product.
• Examples: Electronics component assembly, furniture manufacturing.
• Advantages: Combines process and product layout strengths, promotes teamwork and
cross-training, improves flexibility and responsiveness.
• Disadvantages: Requires well-trained employees, may not be suitable for all products,
potential bottlenecks within cells.
• Example: Imagine a furniture assembly cell. A small team may be responsible for
assembling all parts of a specific table model, with easy access to tools and materials
within their designated area. This empowers the team, reduces overall production time,
and allows for quicker adjustments to product variations.

9) Briefly explain safety stock. Why do organizations maintain safety stock?

• Prevent Stockouts: The most obvious benefit is avoiding frustrating and often damaging
stockouts. Running out of key items can lead to lost sales, unhappy customers, and
potential damage to brand reputation. Safety stock acts as a buffer, ensuring smooth
fulfillment even when demand spikes or deliveries are delayed.

• Maintain Customer Satisfaction: Consistent availability is crucial for customer

satisfaction. Having safety stock helps businesses meet customer demand on time, every
time, building trust and loyalty.
 Protect Production and Operations: A stockout of essential materials or components can
shut down production lines and cause costly delays. Safety stock mitigates this risk,
ensuring smooth operations and efficient resource utilization.

• Lead Time Fluctuations: Supply chains can be unpredictable. Unexpected delays at any
point can disrupt inventory levels. Safety stock provides a buffer against these
uncertainties, giving businesses time to react and procure more inventory without
hindering operations.

• Seasonal or Promotional Demand: Safety stock plays a crucial role in managing periods
of predictable increase in demand, such as holiday seasons or promotional campaigns.
Having additional inventory on hand ensures businesses can capitalize on these
opportunities without facing stockouts and lost sales.

10) What do you understand by lean production? How can JIT help in achieving lean
production?

Lean production, also known as the Toyota Production System (TPS), is a methodology
focused on eliminating waste and maximizing value throughout the manufacturing process. It
prioritizes reducing lead times, minimizing inventory, and improving product quality.

• Value: Only activities that add value for the customer are considered, anything else is seen as
waste and eliminated.
• Continuous improvement: Processes are constantly analyzed and refined to identify and
eliminate further waste.
• Flow: Smooth, uninterrupted flow of materials and information throughout the production
process is key.
• Pull production: Production is driven by customer demand, not by pushing finished goods
through the system.
• Respect for people: Empowering employees to identify and solve problems is crucial.
• JIT aims to deliver materials and components to the production line exactly when they are
needed, eliminating the need for large stockpiles of inventory. This reduces carrying costs,
frees up storage space, and minimizes the risk of obsolescence.
• Reduces waste: Less inventory means less waste from overproduction, transportation, and
holding costs.
• Improves flow: Smooth delivery of materials eliminates waiting times and keeps the
production process flowing smoothly.
• Pull production: JIT production is inherently demand-driven, only producing what is needed
when it is needed.
• Requires teamwork and communication: Strong collaboration between departments is crucial
for accurate forecasting and timely delivery of materials.
 11) Explain in brief Fish-bone Diagram ?
• A fish-bone diagram, also known as an Ishikawa diagram or cause-and-effect analysis,
is a visual tool used to identify and organize the potential causes of a specific problem
or effect.
• It gets its name from its resemblance to a fish skeleton, with the "head" representing
the problem and the "bones" branching out to show the various factors that might be
contributing to it.
• Benefits of using a fish-bone diagram:

• Visually organizes complex problems: Breaks down the problem into smaller, more
manageable pieces.
• Identifies potential root causes: Encourages brainstorming and helps determine the most likely
causes.
• Promotes teamwork and collaboration: Useful for group discussions and problem-solving
sessions.
• Improves decision-making: Provides a clear picture of the factors contributing to the
problem, leading to better solutions.

Fish-bone diagrams are widely used in various fields, including:

• Manufacturing and quality control: To identify causes of product defects or process

inefficiencies.
• Project management: To identify potential risks and challenges in project planning.
• Healthcare: To analyze the causes of medical conditions and identify treatment options.
• Business analysis: To understand customer dissatisfaction and improve service quality.
• By effectively utilizing a fish-bone diagram, you can gain valuable insights into the root causes
of problems and develop targeted solutions for improvement.

12) What the various models of managing inventory with pros and cons of each. Which model
is suitable for AD?
Economic Order Quantity (EOQ):

• Pros: Minimizes total inventory costs (holding + ordering) for single item with constant
demand. Simple to calculate.
• Cons: Assumes steady demand and lead times, ignores inventory changes, not suitable for
multiple items or fluctuating demand.

ABC Analysis:

• Pros: Classifies inventory based on importance (high-value A items, medium B items, low-cost
C items), allowing for focused control and different management strategies for each category.
• Cons: Subjective in classifying items, doesn't provide specific order quantities, relies on
accurate cost and demand data.

Fixed Reorder Point:

• Pros: Simple to implement, requires minimal data, suitable for stable demand and lead times.
• Cons: Can lead to stockouts during high demand or unexpected delays, doesn't optimize
inventory costs, requires frequent monitoring.

Fixed Reorder Period:

• Pros: Easy to manage, predictable orders at regular intervals, good for stable demand.
• Cons: Not responsive to changes in demand, can lead to excess inventory or stockouts, relies
on accurate average demand forecast.

Just-in-Time (JIT):

• Pros: Reduces inventory holding costs, improves cash flow, minimizes waste, promotes
efficient production flow.
• Cons: Requires reliable suppliers, complex to implement, vulnerable to disruptions, less
forgiving of errors.

Material Requirements Planning (MRP):

• Pros: Comprehensive solution for managing complex, multi-component assemblies, optimizes

production planning and material needs.
• Cons: Requires robust software and data, expensive to implement, complex to
manage, unsuitable for simple inventory.

AD suitability:

• ABC Analysis: Focus on managing high-demand A items closely, while allowing for simpler
control of B and C items.
• Fixed Reorder Point with Demand Forecasting: Combine simplicity with data-driven
adjustments to reorder points based on predicted demand changes.
• Vendor Managed Inventory (VMI): Partner with suppliers to manage inventory levels based
on real-time sales data, reducing your risk and investment.

Ultimately, the best model for AD depends on your specific business, product mix, and risk
tolerance.

13) Using the concept of Input - Transformation- Output, describe primary input, primary
transformation and desired output for a university and a hospital.
 Primary Input: university
• Students: Individuals seeking knowledge, skills, and qualifications.
• Faculty: Professors, lecturers, and instructors with expertise in various fields.
• Curriculum: Content and learning materials designed to develop specific knowledge and skills.
• Resources: Buildings, facilities, equipment, technology, and financial support.
Primary Transformation:
• Teaching and learning: Students engage with faculty and curriculum through lectures,
discussions, labs, research, and other pedagogical methods.
• Knowledge and skill development: Students gain understanding, critical thinking skills, and
the ability to apply their learning to real-world problems.
• Personal and professional growth: Students develop self-confidence, communication skills,
teamwork, and ethical values.
Desired Output:
• Graduates: Individuals with advanced knowledge, skills, and qualifications.
• Educated citizens: Individuals prepared to contribute positively to society.
• Innovation and research: New knowledge, technologies, and solutions generated through
research and academic inquiry.
• Economic and social development: Graduates who contribute to the workforce and solve
societal challenges.
Hospital:
Primary Input:
• Patients: Individuals seeking medical care for diagnoses, treatments, and prevention.
• Medical professionals: Doctors, nurses, therapists, and other healthcare personnel with
expertise in various specialties.
• Medical technology: Equipment, diagnostics, and medications used for diagnosis, treatment,
and rehabilitation.
• Resources: Buildings, facilities, equipment, technology, and financial support.
Primary Transformation:
• Diagnosis and treatment: Healthcare professionals assess patients, identify medical
conditions, and administer appropriate treatments and interventions.
• Improved health outcomes: Patients experience alleviation of symptoms, disease remission,
or cure.
• Pain management and emotional support: Patients receive comfort care and emotional
support throughout their treatment journey.
Desired Output:
• Healthy patients: Individuals who have recovered from illness or improved their health status.
• Reduced mortality and morbidity: Fewer deaths and illnesses overall within the community.
• Prevention and public health: Implementation of measures to prevent future illness and
promote overall health within the community.
• Scientific advancement and medical innovation: Research and development of new
treatments, technologies, and healthcare practices.

14) Explain in brief various types of cost associated with Quality management with example
The costs associated with quality management can be broadly categorized into four types, often
referred to as the "Cost of Quality (COQ)":
Prevention Costs:
• These are proactive expenses made to prevent defects and errors before they occur.
• Examples: employee training, quality planning, process improvement initiatives, quality
control equipment, preventive maintenance.
• Benefit: Minimizing internal and external failure costs in the long run.
Example: A manufacturing company invests in automated quality checks on the assembly line
to catch defective parts early. This prevents the cost of assembling and shipping faulty
products, saving money and customer satisfaction.
Appraisal Costs:
• These are incurred to measure and evaluate quality throughout the process.
• Examples: inspections, tests, audits, data analysis, performance reviews.
• Benefit: Early detection of potential issues to prevent internal and external failures.
Example: A hospital conducts regular X-rays and patient monitoring to identify medical
complications early. This allows for prompt intervention and reduces the potential for costly
treatments later.
Internal Failure Costs:
• These are incurred when defects are found before reaching the customer, but after resources
have been invested.
• Examples: scrap materials, rework, downtime, warranty repairs, product recalls.
• Benefit: Identifying and correcting issues internally is cheaper than external failures.
Example: A bakery finds moldy bread before it reaches shelves. While they lose the cost of the
ingredients and labor, it's better than dealing with customer complaints and potential health
risks.
External Failure Costs:
• These are incurred when defects reach the customer and cause problems.
• Examples: customer complaints, returns, refunds, warranty claims, lawsuits, lost sales, brand
damage.
• Benefit: Minimizing these costs is crucial for customer satisfaction and brand reputation.
Example: A software company releases a buggy update that crashes user computers. They face
costly customer support calls, bug fixes, and potential lawsuits, damaging their reputation.
 15) As a part of the overall aggregate sales and operational planning process explain the three
key strategies firms adopt while planning for production.

Demand-driven planning:
• This strategy prioritizes aligning production with forecasted customer demand. It uses market
research, historical data, and sales forecasts to predict future demand for various products.
• Reduces inventory costs by avoiding overproduction.
• Improves customer satisfaction by ensuring product availability.
• Increases production efficiency by focusing on high-demand items.
• Example: A clothing retailer uses seasonal sales trends and weather forecasts to
determine production quantities for different types of clothing, ensuring they have
enough stock for peak seasons but avoiding overproduction during slower periods.
Supply-driven planning:
• This strategy focuses on maximizing the utilization of existing production capacity and
resources. It considers factors like available materials, equipment capabilities, and workforce
skillsets to determine what can be produced.
• Reduces idle time and underutilization of resources.
• Improves operational efficiency by optimizing production processes.
• Makes effective use of existing resources.
• Example: A factory producing furniture has limited access to specific wood types.
Their planning prioritizes products using those materials to maximize output while
utilizing their existing capabilities.
Hybrid planning:
• This strategy balances both demand and supply considerations. It combines forecasts with
resource constraints to optimize production plans. The goal is to find a balance between
meeting customer demand and making efficient use of available resources.
• Provides a more realistic planning approach by considering both internal and external
factors.
• Increases flexibility to adapt to changing market conditions.
• Creates a more cost-effective production plan by balancing demand and resource
limitations.
• Example: A food manufacturer uses sales forecasts and analyses its ingredient inventory to
plan production runs for different products. This ensures they have enough stock to meet
expected demand while avoiding waste due to limited ingredients.

16) Explain in brief the waste identified under JIT philosophy?

• Just-in-time (JIT) philosophy aims to eliminate waste in all aspects of production and
delivery. It identifies seven key types of waste, often referred to as the "Seven Deadly
Wastes":

• Overproduction: Producing more than what is needed or before it is needed, leading to

inventory storage costs, product obsolescence, and potential quality issues.
• Waiting: Idle time for workers, machines, or materials due to bottlenecks,
breakdowns, or inefficient scheduling, resulting in productivity loss and increased lead
times.
• Transportation: Unnecessary movement of materials, parts, or finished products
within the production process or during delivery, leading to cost inefficiency and
potential damage.
• Processing Defects: Incorrectly fabricated or assembled products resulting in rework,
scrap, and warranty claims, adding significant costs and delays.
• Inventory: Carrying large amounts of raw materials, work-in-progress, or finished
goods, tying up capital, incurring storage costs, and increasing the risk of obsolescence.
• Motion: Unnecessary movements by workers during their tasks, increasing fatigue
and reducing efficiency. Poorly designed work areas can contribute to this waste.
• Over-processing: Performing unnecessary steps or adding features to products beyond
customer requirements, increasing production time and cost without adding value.
• By identifying and eliminating these wastes, JIT can significantly improve
productivity, reduce costs, and shorten lead times. This philosophy encourages
continuous improvement and a focus on lean manufacturing principles to optimize the
production process.
 17) Describe in brief the distinguishing features of Fixed order Quantity system (Q system)
and Fixed time period model (P model)

18) What are the two basic questions must be answered by an inventory-control decision rule?

• When to order: This involves determining the reorder point, the inventory level at which
a new order should be placed. Factors like lead time (time to receive orders), demand
patterns, and safety stock (buffer to prevent stock outs) all play a role in deciding when
to trigger an order.

• How much to order: This defines the order quantity, the number of units to be ordered
at the reorder point. Balancing factors like holding costs (cost of storing inventory),
ordering costs (cost of placing an order), and demand is key to determining the optimal
order quantity.

19) Describe the generic product development process used in market-pull situation. How
does the process change for technology-push products?
Market-Pull:
In a market-pull situation, the product development process is driven by customer needs and
wants. Here's the generic process:
1. Identify Market Need: Research is conducted to understand customer challenges, unmet
needs, and existing solutions. Surveys, focus groups, and market analysis methods are common
tools.
2. Concept Development: Based on identified needs, potential product concepts are
brainstormed and evaluated for feasibility and market fit. Prototypes may be created for user
testing and feedback.
3. Product Design: The chosen concept is further refined with detailed design specifications,
engineering constraints, and cost considerations.
4. Development and Testing: Prototypes are built and tested through various iterations, refining
functionality, performance, and user experience.
5. Manufacturing and Launch: Production processes are established, marketing campaigns are
developed, and the product is finally launched into the market.
6. Post-Launch Monitoring: Customer feedback is gathered, sales performance is tracked, and
adjustments are made to improve the product and marketing strategy based on market response.
Technology-Push:
In technology-push situations, the product development process is driven by existing
technology capabilities and innovative breakthroughs. Here's how it differs:
1. Technology Identification: New technological advancements or potential applications are
identified and explored for their commercial viability.
2. Market Fit Assessment: Research is conducted to determine what customer needs or
problems the technology could address and what potential market exists for the resulting
product.
3. Concept Development: The technology is adapted and refined to fit identified market needs,
often requiring creative problem-solving to overcome challenges in user experience and
integration.
4. Product Design: Similar to market-pull, detailed design and engineering work follows to
create a practical and marketable product.
5. Development and Testing: Prototyping and testing are crucial to ensure the product
effectively utilizes the technology and satisfies market needs.
6. Market Education and Launch: Creating market awareness and educating potential customers
about the benefits and uses of the new technology is often a significant focus.
7. Post-Launch Monitoring: Feedback and sales performance are monitored, but adjustments
may require not only product refinement but also educating the market about the technology's
value proposition.
• Starting Point: Market-pull starts with the market, technology-push starts with the technology.
• Market Research: Market-pull prioritizes research on existing needs, technology-push focuses
on finding needs the technology can address.
• User Involvement: Market-pull heavily involves user testing and feedback throughout the
process, technology-push may integrate users later to ensure market fit.
• Marketing Strategy: Market-pull leverages existing market knowledge, technology-push may
need to educate the market about the new technology.

20)