1. Computer Aided Design in production. 4. Main components of Computer Integrated Manufacturing (CIM). 7. Types of processes.

Ans. Computer Aided Design (CAD) plays a crucial role in modern production processes across various Ans. Computer Integrated Manufacturing (CIM) integrates various aspects of manufacturing using computer Ans. Processes can be categorized into several types based on their characteristics and functions within an
industries. Here are several key aspects of how CAD is utilized in production: technology and software to improve efficiency, accuracy, and flexibility. organization. d
1. Design Creation and Visualization: CAD software enables engineers and designers to create detailed 1. CAD (Computer-Aided Design): CAD software is used to create detailed 2D and 3D models of 1. Primary Processes:
2D and 3D models of products, components, and structures. This helps in visualizing the final product products and components. These models are essential for visualizing designs, conducting simulations, o Core Processes: These are essential activities directly related to delivering value to customers
and iterating designs before physical production begins. and generating specifications that guide the manufacturing process. or stakeholders. For example, In a service-oriented business like a bank, core processes might
2. Accuracy and Precision: CAD tools allow for precise measurements and specifications, ensuring that 2. CAM (Computer-Aided Manufacturing): CAM systems utilize CAD data to automate include loan processing or customer account management.
components fit together perfectly and meet required tolerances. This reduces errors and minimizes the manufacturing processes. They generate instructions for machinery such as CNC (Computer Numerical 2. Supporting Processes:
need for rework during production. Control) machines, robots, and automated assembly lines. o Secondary Processes: These are necessary to support core processes but do not directly add
3. Speed and Efficiency: CAD significantly speeds up the design process compared to traditional 3. CAPP (Computer-Aided Process Planning): CAPP software assists in planning the manufacturing value to the end product or service. Examples include maintenance, procurement, logistics,
methods. Design changes can be made quickly and easily, which is essential for adapting to evolving processes required to produce a product. It selects the most efficient manufacturing methods, sequences and IT support
requirements or customer feedback. operations, and determines the necessary resources (like tools, materials, and equipment) based on 3. Management Processes:
4. Integration with Manufacturing: CAD models can be directly used in Computer Aided CAD/CAM data. o Tertiary Processes: These are processes that govern and control the organization as a whole.
Manufacturing (CAM) systems to generate instructions for automated production machinery such as 4. CAQ (Computer-Aided Quality Assurance): CAQ systems monitor and control quality throughout They include strategic planning, budgeting, performance management, and corporate
CNC (Computer Numerical Control) machines. This integration streamlines the transition from design the manufacturing process. They collect data from sensors and inspection devices, perform statistical governance.
to physical product. analysis, and generate reports to ensure products meet quality standards. CAQ helps in identifying and 4. Operational Processes:
2. Importance of operations strategies in winning competition. rectifying defects early in production. o Quaternary Processes: These are related to ongoing activities that are necessary for day-to-
Ans. Operations strategies are crucial in gaining a competitive edge in the marketplace. 5. PLM (Product Lifecycle Management): PLM software manages the entire lifecycle of a product day operations. They include activities such as scheduling, inventory management, quality
from conception through design, manufacturing, and service. It integrates CAD, CAM, and CAQ data, control, and customer service
1. Cost Efficiency: Effective operations strategies can significantly reduce production costs through
facilitates collaboration among team members, tracks revisions, and ensures regulatory compliance. 5. Continuous Improvement Processes:
streamlined processes, efficient use of resources, and optimized supply chain management. Lower costs
o Quinary Processes: These processes focus on continuously improving organizational
allow businesses to offer competitive pricing, which attracts price-sensitive customers and enhances performance. They involve methodologies such as Lean Six Sigma, Kaizen, and Total Quality
market share. 5. Logical sequence of Operations Process from the point of view of an entrepreneur who is
planning to start a manufacturing or service unit. Management (TQM) to identify inefficiencies, reduce waste, and enhance productivity across
2. Quality Improvement: Operations strategies focus on enhancing product or service quality through all types of processes within the organization.
rigorous quality control measures, continuous improvement initiatives, and adherence to industry Ans. Starting a manufacturing or service unit involves several key steps in the operations process. Here's a
standards. Higher quality products lead to increased customer satisfaction, loyalty, and a positive brand logical sequence from the point of view of an entrepreneur:
reputation, which are critical for gaining a competitive advantage. 1. Market Research and Feasibility Study: Conduct thorough market research to identify opportunities, 8. Comparison between different processes.
3. Innovation and Differentiation: Innovative operations strategies can lead to the development of understand customer needs, analyse competition, and assess market demand for your product or Ans.
unique products or services that differentiate a company from its competitors. Whether through service. Core Processes Support Processes
advanced manufacturing techniques, unique customization options, or cutting-edge technology 2. Product or Service Design: Develop a detailed plan for your product or service based on customer Core processes focus on delivering core business support processes facilitate and optimize core
adoption. feedback and market research. Utilize CAD software for product design or service blueprinting to value operations.
4. Flexibility and Responsiveness: Operations strategies that emphasize flexibility and responsiveness visualize concepts, iterate on designs, and ensure feasibility in terms of manufacturing or service Core processes directly contribute to revenue and support processes contribute to operational
enable companies to quickly adapt to changing market demands, customer preferences, and delivery. customer satisfaction efficiency and cost reduction.
technological advancements. 3. Prototype Development and Testing: Create prototypes of your product or service to test core processes driving revenue growth support processes ensuring operational
functionality, performance, and market acceptance. Iterate on designs based on feedback from
effectiveness
3. Scope and objective of Production Management. prototype testing to refine your offering and ensure it meets customer expectations and quality
standards. Operational Processes Management Processes
Ans. Scope of Production Management: 4. Production Planning and Process Design: Plan the manufacturing process by defining workflows, Operational processes focus on executing tasks management processes focus on overseeing and
selecting equipment and technologies, determining production methods, and establishing quality and activities necessary for daily operations, directing overall organizational strategy and
1. Design of Production Systems: This involves determining the optimal layout, equipment, and
processes needed to achieve production goals efficiently. control measures. Use tools like CAM for manufacturing process design or service delivery performance.
2. Planning and Control: Production managers are responsible for planning production schedules, optimization to streamline operations. : Operational processes are short-term focused, management processes are long-term focused,
allocating resources (such as manpower, materials, and equipment). 5. Sourcing and Supply Chain Management: Identify suppliers for raw materials, components, or addressing immediate operational needs guiding the organization's future direction and
3. Quality Management: Ensuring that products or services meet quality standards through quality subcontracted services needed in your production process. Establish relationships with reliable growth.
control measures, continuous improvement initiatives, and adherence to quality assurance protocols. suppliers, negotiate contracts, and implement supply chain management practices to ensure timely Operational processes ensure day-to-day management processes provide strategic
4. Inventory Management: Managing inventory levels to ensure sufficient stock availability without availability of inputs and minimize costs. efficiency and effectiveness, guidance, decision-making frameworks, and
excessive holding costs, including implementing inventory control techniques like Just-In-Time (JIT) accountability
or Material Requirements Planning (MRP). 6. Draw a schematic diagram for the transformation process of a bank. Customer-Facing Processes Cross-Functional Processes
5. Maintenance Management: Ensuring that production machinery and equipment are properly Ans. Customer-facing processes prioritize customer cross-functional processes focus on achieving
maintained to minimize downtime and ensure optimal performance.
satisfaction and retention. organizational goals through collaboration and
Objectives of Production Management: alignment across departments.
1. Cost Efficiency: Minimizing production costs while maintaining product quality and meeting customer Customer-facing processes require seamless cross-functional processes require effective
demand. This includes optimizing resource utilization and reducing wastage. interaction and responsiveness to customer needs communication and integration of diverse
2. High Productivity: Maximizing output per unit of input (such as labor, materials, and machinery)
expertise and resources
through efficient processes and technology adoption.
3. Quality Assurance: Ensuring that products or services consistently meet or exceed customer Customer-facing processes directly impact cross-functional processes impact overall
expectations in terms of reliability, performance, and durability. customer loyalty and satisfaction organizational efficiency, innovation, and
4. On-Time Delivery: Meeting production schedules and deadlines to fulfill customer orders promptly competitive advantage
and maintain customer satisfaction.
5. Flexibility and Adaptability: Being able to quickly adjust production processes and schedules in
response to changes in market demand, customer preferences, or unexpected event

9. Objectives of a good location. 12. Discuss the prime dimensions of quality with respect to product and services 15. Distinguish between method study and time study.
Ans. The objectives of selecting a good location for a business are crucial as they directly impact various method study time study
aspects of operations, profitability, and long-term success. The prime dimensions of quality for products and services, while sharing some common principles, Method study is the systematic recording, analysis, Time study is a technique for establishing standard
1. Proximity to Market and Customers: have distinct characteristics tailored to their specific nature. and critical examination of ways to perform tasks to times for tasks by measuring the time taken by a
o A good location should be easily accessible to the target market or customer base. Proximity 1. Performance: develop and apply more efficient methods. qualified worker to complete tasks under specified
reduces transportation costs, enhances customer convenience, and potentially increases foot o How well a product performs its intended function. For example, the speed of a car or the conditions.
traffic for retail businesses. resolution of a camera.
2. Cost Efficiency: 2. Features:
o Optimal locations minimize operational costs such as rent, utilities, taxes, and labor expenses. o The additional characteristics that enhance the product's appeal and functionality, such as a Focuses on improving the way tasks are performed Focuses on determining the time required to
Cost-efficient locations contribute to higher profit margins and financial sustainability. smartphone's camera quality or a car's GPS system. perform tasks
3. Access to Skilled Labor: 3. Reliability: Analytical and creative, looking to redesign Quantitative, focusing on measurement and timing.
o A desirable location provides access to a skilled labor pool relevant to the business's industry. The probability of a product performing without failure over a specified period. For example,
o processes.
Availability of qualified workers reduces recruitment challenges and supports productivity
the dependability of an appliance over time. Process charts, diagrams, and critical examination. Stopwatch, time study sheets, and performance
and innovation.
4. Infrastructure and Logistics: 4. Conformance: rating scales.
o Good infrastructure, including transportation networks (roads, highways, airports, ports), o The degree to which a product’s design and operating characteristics meet established
utilities (electricity, water, internet), and logistics services (warehousing, distribution centers), standards. For example, a car meeting emission standard.
ensures smooth operations and timely delivery of goods and services. 5. Durability: Analysing the layout of a manufacturing plant to Timing the assembly line tasks to determine how
5. Competitive Advantage: o The length of time a product continues to function before it deteriorates or requires rearrange equipment for a smoother workflow, long each operation takes and setting standard
o Location can provide a competitive edge by positioning the business near competitors, replacement. For instance, the lifespan of a battery. reducing unnecessary movements and enhancing times for production planning.
suppliers, or complementary businesses. Proximity to industry clusters or innovation hubs 6. Serviceability: efficiency.
fosters collaboration, knowledge sharing, and industry trends awareness. o The ease and speed with which a product can be repaired and maintained. For example, the
availability of spare parts and the efficiency of repair services for a vehicle. 16. Salient features of TQM?
10. Factors affecting the location of a business.
Ans. The location of a business is influenced by a variety of factors. Here are some key considerations: 13. Costs of quality Ans. Total Quality Management (TQM) is a comprehensive management approach that focuses on long-term
1. Target Market Proximity: Ans Cost of Quality is a methodology used to define and measure where and what amount of an success through customer satisfaction. TQM involves the continuous improvement of organizational processes,
o Being close to the target customers can increase foot traffic and sales, especially for retail organization’s resources are being used for prevention activities and maintaining product quality as opposed resulting in high-quality products and services. Here are the salient features of TQM:
businesses. 1. Customer Focus
to the costs resulting from internal and external failures. The Cost of Quality can be represented by the sum of
2. Cost of Location:
o Rent, property taxes, and utilities vary greatly by location. Businesses need to balance cost two factors. The Cost of Good Quality and the Cost of Poor Quality equals the Cost of Quality, as represented  Definition: The primary focus of TQM is meeting and exceeding customer expectations and requirements.
with potential revenue. in the basic equation below:  Implementation: Understanding customer needs through feedback, market research, and direct interaction.
3. Labor Availability: CoQ = CoGQ + CoPQ 2. Continuous Improvement (Kaizen)
o Access to a skilled workforce is crucial. Some industries may require specific expertise that is The Cost of Quality equation looks simply but in reality, it is more complex. The Cost of Quality includes all  Definition: Continuous improvement is an ongoing effort to enhance products, services, and processes.
only available in certain areas. costs associated with the quality of a product from preventive costs intended to reduce or eliminate failures,  Implementation: Using tools like PDCA (Plan-Do-Check-Act) cycle, Six Sigma, and Lean principles to identify and
4. Transportation and Accessibility: cost of process controls to maintain quality levels and the costs related to failures both internal and external. eliminate inefficiencies.
o Good transportation links for both customers and suppliers are vital. Proximity to major roads, 3. Total Employee Involvement
public transportation, and airports can be beneficial. 14. Comparison between ‘p’ chart and ‘c’ chart  Definition: All employees are encouraged to participate in the quality improvement process.
5. Competitor Proximity:
o Being near competitors can be advantageous (cluster effect) or disadvantageous, depending on
Ans. Control charts are essential tools in statistical process control (SPC) for monitoring and controlling  Implementation: Empowering employees through training, creating quality circles, and promoting a culture of
quality. Two commonly used control charts for attribute data are the 'p' chart and the 'c' chart. teamwork and collaboration.
the business strategy.
6. Supply Chain Considerations: 'p' Chart (Proportion Chart) 4. Process-Cantered Approach
o Proximity to suppliers and distribution networks can reduce transportation costs and improve 1. Purpose:  Definition: Focusing on process thinking, where all activities are seen as processes that can be managed and
efficiency. o Used to monitor the proportion of defective items in a process. improved.
2. Data Type:  Implementation: Mapping processes to identify critical steps, analysing workflow, and implementing standard
11. Definition of Quality o Attribute data: Binary (defective or not defective). operating procedures (SOPs).
3. Sample Size: 5. Integrated System
Ans. Quality is a multifaceted concept that generally refers to the degree of excellence of something o Varies from sample to sample. Each sample can have a different number of observations.
as measured against other similar things. It involves meeting or exceeding customer expectations 4. When to Use:  Definition: All aspects of the organization, including departments and functions, are interconnected and must
work together towards common goals.
and can be defined in various contexts: o When you need to monitor the proportion of defective items and sample sizes are not constant.
o Useful in processes where the number of items inspected varies over time.  Implementation: Using integrated management systems like ISO 9001 to ensure alignment and consistency
 he standard of something as measured against other things of a similar kind across the organization.
 The extent to which a product or service meets specified requirements, customer 'c' Chart (Count Chart)
6. Strategic and Systematic Approach
expectations, and industry standards. It often involves dimensions such as performance, 1. Purpose:
o Used to monitor the count of defects per unit or item.  Definition: TQM requires a strategic plan that integrates quality as a core component.
reliability, durability, and aesthetics. 2. Data Type:  Implementation: Developing long-term quality goals aligned with the organization’s mission and vision, and
 The process of ensuring that products and services meet consumer expectations and o Attribute data: Count of defects. ensuring systematic deployment across all levels.
regulatory requirements through consistent measurement and corrective actions. 3. Sample Size:
 The overall support and service provided to customers, including aspects like o Fixed and constant over time. Each sample has the same number of observations (units inspected).
responsiveness, reliability, empathy, and assurance.
17. Advantages of Control Chart.  Description: A check sheet is a simple form used to record the frequency of occurrences of specific events or 21. Fishbone diagram
Ans. some key advantages of using control charts: defects. It helps in gathering real-time data and identifying patterns. A fishbone diagram is a cause-and-effect discovery tool that helps figure out the reason(s) for
1. Detection of Process Variability: 3. Control Chart defects, variations or failures within a process. In other words, it helps break down, in successive
o Control charts help identify variations in the process that are due to common causes (inherent  Purpose: To monitor process performance over time and detect variations.
layers, root causes that potentially contribute to an effect
in the process) and special causes (external factors).  Description: A control chart plots data points in chronological order and includes control limits. It helps identify
o They enable distinguishing between normal process variations and unusual variations that may trends, shifts, or outliers in the process, distinguishing between common cause and special cause variations. Advantages Disadvantages
indicate problems. 4. Histogram Helps identify cause and effect relationships Irrelevant potential causes can cause confusion
2. Early Warning of Problems:  Purpose: To display the distribution of data and identify patterns. Helps develop in-depth joint brainstorming Complex issues may lead to a messy diagram
o By monitoring process data in real-time, control charts can provide early warnings of potential
 Description: A histogram is a bar graph that shows the frequency distribution of data. It helps visualize the shape, discussion
issues before they result in defective products or services. spread, and central tendency of the data, highlighting any unusual patterns or deviations.
o This proactive approach allows for timely interventions to prevent defects. Works well with the 5 Whys to drill down to a Lends itself to the divergent approach
3. Continuous Process Improvement:
5. Pareto Chart root cause quickly
o Control charts support continuous improvement initiatives by providing a visual  Purpose: To prioritize problems or causes based on their significance. Helps prioritize relevant causes, allowing you to Based on opinion rather than evidence
representation of process performance over time.  Description: A Pareto chart is a bar graph that ranks causes or issues by their frequency or impact, following the address underlying root causes
o They help in identifying trends, shifts, or cycles in the process, facilitating data-driven Pareto principle (80/20 rule). It helps focus efforts on the most significant problems that will yield the greatest
decision-making for process improvements. improvements.
4. Decision-Making Support: 6. Scatter Diagram (Scatter Plot)
o Control charts provide a clear, visual representation of process data, making it easier for  Purpose: To identify relationships between two variables.
managers and operators to make informed decisions.  Description: A scatter diagram plots pairs of numerical data points on a graph to identify possible correlations. It
o They support objective decision-making based on statistical evidence rather than intuition or helps in visualizing the relationship and determining whether changes in one variable might affect another.
guesswork. 7. Flowchart (Process Map)
5. Cost Reduction:
 Purpose: To visualize and analyze the steps in a process.
o By detecting and addressing issues early, control charts can reduce waste, rework, and scrap,
leading to cost savings.  Description: A flowchart is a diagram that outlines the sequence of steps in a process. It helps understand the
workflow, identify bottlenecks, redundancies, or opportunities for improvement.
o They also help in maintaining consistent quality, reducing the costs associated with poor
quality, such as returns, recalls, and customer complaints.
6. Improved Quality Control: 20. Describe Juran’s Quality Trilogy.
Juran’s Quality Trilogy is a comprehensive framework for managing quality that was developed by Dr. Joseph 22. Importance of ‘statistical process control’.
o Control charts help maintain a consistent level of quality by monitoring key process
parameters. M. Juran, a pioneer in quality management. The trilogy consists of three key components: Quality Planning, Statistical Process Control (SPC) is a methodological approach used in quality management that
o They ensure that the process remains within specified control limits, resulting in more reliable Quality Control, and Quality Improvement utilizes statistical methods to monitor and control a process. It plays a critical role in ensuring that the
and predictable outputs. 1. Quality Planning process operates efficiently, producing more specification-conforming products with less waste
(rework or scrap).
 Purpose: To design products and processes that meet customer needs and quality
18. Acceptance sampling. 1. Improved Quality Control:
standards. o Consistent Product Quality: SPC helps maintain consistent quality by identifying variations
Ans. Acceptance sampling is a statistical quality control technique used to determine whether to accept or  Key Activities: and taking corrective actions before defects occur.
reject a batch of products based on a sample drawn from the batch. It is commonly used in manufacturing and o Identify who the customers are.
other industries to make decisions about product quality without inspecting every item. o Reduction of Variability: By monitoring the process, SPC helps reduce variability, ensuring
o Determine the needs of those customers. products meet quality standards consistently.
1. Lot (or Batch):
o A collection of items from which a sample is drawn for inspection. o Develop product features that respond to customer needs. 2. Early Detection of Problems:
2. Sample: o Develop processes capable of producing those features. o Preventive Action: SPC enables the early detection of process variations that may lead to
o A subset of items taken from the lot, used for inspection to make inferences about the quality of the o Establish quality goals that are measurable and achievable. defects, allowing for preventive measures to be implemented.
entire lot. 3. Cost Savings:
3. Acceptance Criteria: 2. Quality Control o Reduction in Waste: By minimizing the production of defective items, SPC helps reduce
o Predefined standards or specifications that the sample must meet for the lot to be accepted.  Purpose: To monitor and maintain the quality of products and processes during production. waste, rework, and scrap, leading to cost savings.
4. Sampling Plan:  Key Activities: o Efficient Resource Utilization: Efficient process control ensures optimal use of resources,
o A plan that specifies the number of items to be sampled (sample size) and the criteria for accepting or o Establish control measures and standards. reducing costs associated with overproduction, inventory, and downtime.
rejecting the lot based on the inspection results.
o Evaluate actual performance against quality standards. 4. Enhanced Process Understanding:
19. Seven essential quality tools in quality control and briefly explain them. o Compare actual performance with quality goals. o Process Insights: SPC provides valuable insights into the process behavior, helping
o Act on the difference between performance and goals. understand how different variables affect product quality.
Ans. The Seven Essential Quality Tools are fundamental instruments used in quality control to help identify, o Data-Driven Decisions: The use of statistical data allows for informed decision-making,
analyze, and improve quality-related issues. These tools are simple yet powerful and are widely used across 3. Quality Improvement improving process management and control.
various industries to enhance process performance and product quality:  Purpose: To achieve breakthrough levels of performance and enhance processes 5. Continuous Improvement:
1. Cause-and-Effect Diagram (Fishbone or Ishikawa Diagram) continuously. o Identify Improvement Opportunities: SPC helps in identifying areas for improvement by
 Purpose: To identify and organize potential causes of a problem.  Key Activities: highlighting trends, shifts, or cycles in the process.
 Description: This diagram resembles a fishbone, with the problem at the head and potential causes branching off
o Identify areas for improvement. o Support for Lean and Six Sigma: It is integral to continuous improvement methodologies like
like bones. It helps teams systematically explore all possible factors that could lead to a defect or issue.
o Establish teams to drive improvement initiatives. Lean and Six Sigma, driving efforts to enhance process efficiency and quality.
2. Check Sheet
o Use systematic methodologies to analyze and solve quality problems. 6. Compliance and Standards:
 Purpose: To collect and analyze data in a structured manner. o Meeting Regulatory Requirements: Many industries have strict regulatory standards for
o Implement solutions and measure their effectiveness.
quality. SPC helps ensure compliance with these standards.
o Standardize the improved processes.

23. Discuss Deming’s 14 points relating to total quality management. 11. Eliminate Numerical Quotas for the Workforce and Numerical Goals for Management Kaizen Process
Deming’s 14 Points for Management are foundational principles that underpin Total Quality Management  Description: Abandon rigid quotas and numerical targets that undermine quality. Focus on 1. Identify Opportunities:
(TQM). Developed by Dr. W. Edwards Deming, these points provide a comprehensive framework for continuous improvement and quality results. o Look for areas where improvements can be made. This could involve analyzing current
improving organizational.  Relation to TQM: Encourages a quality-focused approach rather than meeting arbitrary numbers, processes, listening to employee suggestions, or using data to identify inefficiencies.
1. Create Constancy of Purpose for Improvement of Product and Service aligning with TQM’s holistic view of quality management. 2. Plan (Plan-Do-Check-Act Cycle):
 Description: Focus on long-term planning and continuous improvement rather than short-term 12. Remove Barriers to Pride of Workmanship o Develop a plan for implementing the improvement. This includes defining the problem,
financial goals. Invest in research, education, and constant innovation.  Description: Ensure employees take pride in their work by providing the right tools, training, and setting objectives, and outlining the steps needed to achieve the improvement.
 Relation to TQM: Establishes a vision and commitment to quality improvement that aligns with TQM environment. Avoid practices that undermine their efforts. 3. Do:
principles of continuous improvement and customer focus. o Implement the plan on a small scale to test its effectiveness. This trial phase helps in
 Relation to TQM: Key to TQM’s emphasis on employee satisfaction and engagement, recognizing that
2. Adopt the New Philosophy identifying any potential issues before full-scale implementation.
motivated employees are critical to quality outcomes.
 Description: Embrace quality as a strategic imperative. Move away from outdated, reactive quality 4. Check:
13. Institute a Vigorous Program of Education and Self-Improvement for Everyone
practices to proactive management focused on quality. o Evaluate the results of the trial implementation. Compare the outcomes with the objectives
 Description: Invest in continuous learning and development for all employees. Encourage self- set in the planning phase to determine if the improvement was successful.
 Relation to TQM: Encourages a cultural shift towards a quality-first mindset, integral to TQM’s improvement and professional growth. 5. Act:
emphasis on quality in all aspects of the organization.  Relation to TQM: Supports the TQM principle of ongoing education and training, ensuring that the o If the trial is successful, implement the improvement on a larger scale. Standardize the new
3. Cease Dependence on Inspection to Achieve Quality workforce is capable and motivated to contribute to quality. process and document the changes. If the trial is not successful, analyze what went wrong
 Description: Eliminate the need for mass inspection by building quality into the product from the 14. Put Everybody in the Company to Work Accomplishing the Transformation and revise the plan accordingly.
start. Use statistical controls for process monitoring.  Description: Engage all employees in the quality transformation process. Make quality everyone’s 25. JIT
 Relation to TQM: Supports the TQM goal of preventing defects rather than detecting them, responsibility. Just-In-Time (JIT) is a production and inventory management system that aims to increase efficiency and
promoting process improvements and defect prevention.  Relation to TQM: Central to TQM’s inclusive approach, where every employee is involved in and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory
4. End the Practice of Awarding Business on the Basis of Price Tag Alone committed to the organization’s quality journey. costs. The JIT philosophy originated in Japan, particularly within Toyota, and has since been adopted
 Description: Focus on long-term relationships with suppliers based on quality and reliability, not just 24. Discuss the following quality improvement tools: worldwide.
price. Adopt a win-win approach. The following quality improvement tools are Key Principles of JIT
 Relation to TQM: Aligns with TQM’s principle of developing strategic partnerships with suppliers to 1. Plan-Do-Check-Act (PDCA) Cycle 1. Elimination of Waste:
ensure consistent quality in the supply chain. 2. Six Sigma o JIT focuses on reducing waste in all forms, including excess inventory, overproduction,
5. Improve Constantly and Forever Every Process for Planning, Production, and Service 3. Lean waiting time, transportation, motion, over-processing, and defects.
 Description: Continuously seek ways to improve processes and systems. Encourage innovation and 4. 5 Whys 2. Continuous Improvement:
regular assessment of methods and practices. o Like Kaizen, JIT emphasizes ongoing, incremental improvements in processes to enhance
5. Failure Mode and Effects Analysis (FMEA)
 Relation to TQM: Core to TQM’s focus on continuous improvement (Kaizen) and optimizing processes efficiency and reduce waste.
6. Root Cause Analysis (RCA)
to enhance quality and efficiency. 3. Pull System:
7. Kaizen (Continuous Improvement) o Production is driven by actual customer demand rather than forecasts. Components and
6. Institute Training on the Job
8. 5S Methodology materials are only pulled through the production process when needed by the next step.
 Description: Invest in ongoing training and education for employees to enhance their skills and
9. Total Quality Management (TQM) 4. Streamlined Production:
knowledge. Ensure they understand their roles in quality improvement.
10. Business Process Reengineering (BPR) o JIT aims to streamline production processes to ensure smooth flow and minimize delays. This
 Relation to TQM: Highlights the importance of employee development and empowerment, key
25. Kaizen involves simplifying workflows, reducing setup times, and optimizing workstations.
components of TQM in fostering a quality-centric culture.
Kaizen is a Japanese term meaning "change for the better" or "continuous improvement." It is a philosophy that 5. Supplier Integration:
7. Adopt and Institute Leadership
focuses on small, incremental changes that improve efficiency, productivity, and quality in all aspects of an o Close collaboration with suppliers is crucial. JIT requires reliable suppliers who can deliver
 Description: Managers must lead by example, guiding employees towards quality objectives. small quantities of materials quickly and consistently.
organization. The Kaizen approach involves everyone in the organization, from top management to frontline
Leadership should be about helping people do a better job.
workers, and emphasizes employee involvement, teamwork, and systematic problem-solving.
 Relation to TQM: Stresses the role of leadership in driving TQM initiatives, creating an environment Key Principles of Kaizen
that supports quality and continuous improvement. 1. Continuous Improvement:
8. Drive Out Fear o The core principle of Kaizen is ongoing, incremental improvement in all areas of the
 Description: Create a safe and open environment where employees can express ideas and concerns organization. Instead of seeking large, dramatic changes, Kaizen focuses on making small,
without fear of retribution. Encourage open communication. consistent improvements over time.
 Relation to TQM: Essential for building a culture of trust and collaboration, enabling employees to 2. Employee Involvement:
contribute to quality improvements without fear. o All employees, regardless of their position, are encouraged to contribute ideas and take part
9. Break Down Barriers Between Staff Areas in improvement activities.
 Description: Promote collaboration and communication across departments. Encourage teamwork 3. Teamwork:
and understanding of different functions and roles. o Kaizen promotes a team-oriented approach to problem-solving. Cross-functional teams
 Relation to TQM: Supports the TQM principle of cross-functional teamwork, ensuring all parts of the collaborate to identify issues, develop solutions, and implement improvements.
organization work together towards common quality goals. 4. Standardization:
10. Eliminate Slogans, Exhortations, and Targets for the Workforce o Once a process improvement is identified and implemented, it is standardized and
 Description: Remove empty slogans and unrealistic targets that create adversarial relationships. documented. This ensures that the improvement is maintained and becomes part of the
Focus on creating supportive systems and processes. regular workflow.
 Relation to TQM: Emphasizes meaningful goals and systemic improvements over motivational 5. Customer Focus:
rhetoric, fostering a genuine commitment to quality. o Improvements are made with the goal of enhancing customer satisfaction. This involves
understanding customer needs and expectations and striving to meet or exceed them.
26. Six Sigma 4. Act 31. What is the importance of 'Work measurement.
Six Sigma is a data-driven methodology for eliminating defects and improving quality in processes. Developed Objective: Based on the evaluation, decide on the next steps to either standardize the improvement or make Work measurement is a critical process in industrial engineering that involves quantifying the amount of time it should
by Motorola in the 1980s and popularized by General Electric in the 1990s, Six Sigma uses statistical tools and further changes. take to perform a specific task or job under standard conditions. This process plays a crucial role in various aspects of
techniques to identify and remove the causes of defects and variability in manufacturing and business processes.  Standardize Successful Improvements: If the plan was successful and the objectives were met, organizational efficiency, productivity, and operational management.
Key Concepts of Six Sigma standardize the improved process. Document the new standards and ensure that they are Importance of Work Measurement
1. DMAIC Cycle: communicated and implemented throughout the organization. 1. Basis for Performance Standards: Work measurement provides a scientific basis for establishing realistic
o The DMAIC cycle is a structured, five-phase problem-solving methodology used in Six Sigma  Plan Further Improvements: If the plan was not successful or partially successful, use the insights performance standards. By accurately determining the time required to complete tasks, organizations can set
projects. It stands for Define, Measure, Analyze, Improve, and Control. gained to develop a new plan. This might involve tweaking the existing plan or addressing new issues achievable goals for workers, departments, and projects.
2. Define: that were identified. 2. Optimization of Resource Utilization: Work measurement enables organizations to optimize the allocation of
o Objective: Define the problem or improvement opportunity, set goals, and identify the  Prepare for the Next Cycle: Continuous improvement is an ongoing process. Use the lessons learned resources, including labour, equipment, and materials. By understanding how long tasks should take, managers
project scope. to inform the next PDCA cycle, continually seeking ways to improve. can schedule work effectively, minimize idle time, and maximize productivity.
o Activities: Develop project charter, identify stakeholders, and define customer requirements 3. Cost Control and Budgeting: Accurate work measurement helps in estimating costs more precisely. By knowing
28. Give a brief description of each step of ‘Method Study’.
(CTQs - Critical to Quality). the time required for tasks, organizations can budget resources effectively, plan for labour costs, and allocate
Method study includes the study or critical examination of the existing way of doing the work. The reason
3. Measure: budgets accordingly.
behind this study is to find, develop, and apply the easier and effective method of doing the work. It helps in 4. Improved Production Planning and Scheduling: Work measurement provides the foundation for effective
o Objective: Quantify the problem by collecting data and establishing baseline measurements.
reducing cost and unnecessary activity. In other words, it is a process of examining all the activities to find a production planning and scheduling. It helps in determining production capacities, setting realistic timelines for
o Activities: Map the process, develop data collection plan, measure current performance, and
validate measurement systems. simple way of doing it. projects, and sequencing tasks efficiently
4. Analyze: Objective of Method Study 5. Performance Evaluation and Incentive Systems: Work measurement forms the basis for evaluating individual
o Objective: Identify the root causes of the problem using data analysis and statistical tools. 1.) Analysis of the movement of the men and material. and team performance. By comparing actual performance against standard times, organizations can identify high
o Activities: Analyze data, identify patterns and relationships, conduct root cause analysis, and 2.) Subdividing the activity into smaller parts performers, provide feedback, and implement incentive systems based on productivity and efficiency metrics.
prioritize potential causes. 3.) Simplify or modify the task to improve the workflow. 32. What are the factors to be considered in deciding the location for building a Cement Plant?
5. Improve: 4.) reduce unnecessary activity to increase productivity. Deciding the location for building a cement plant involves considering a range of factors that can
o Objective: Develop and implement solutions to address the root causes and improve the 5.) Ensure effective material handling to reduce wasteful activity. significantly impact the operational efficiency, cost-effectiveness, and overall success of the plant.
process. 1. Proximity to Raw Materials: Cement production requires large quantities of raw materials such as limestone,
o Activities: Generate improvement ideas, develop and test solutions, implement changes, and 29. Write a short note on Motion Study. clay, shale, and gypsum. Choosing a location close to these materials reduces transportation costs and ensures a
measure results. Motion study, a key component of methods engineering, involves the systematic analysis of the movements stable supply chain, thereby lowering production costs.
6. Control: 2. Accessibility to Markets: Cement is a bulk commodity with high transportation costs. Locating the plant close to
required to perform a task with the objective of improving efficiency. The primary goal is to identify and
o Objective: Sustain the improvements by establishing controls and monitoring processes. major markets or construction hubs reduces transportation expenses and enhances market responsiveness.
o Activities: Develop control plans, implement monitoring systems, standardize processes, and eliminate unnecessary motions, reduce fatigue, and optimize the way work is done. This leads to increased 3. Infrastructure and Utilities: Availability and reliability of infrastructure such as roads, rail networks, ports, and
productivity, improved quality, and reduced operational costs. utilities (electricity, water, and natural gas) are crucial.
ensure long-term sustainability.
Key Objectives 4. Labour Availability and Skills: Access to a skilled and trainable workforce is essential for the plant's operations.
27. PDCA 1. Eliminate Wasteful Motions: Identify and remove unnecessary or redundant motions to streamline 5. Environmental Regulations and Sustainability: Cement production can have significant environmental impacts
The Plan-Do-Check-Act (PDCA) cycle, also known as the Deming Cycle or Shewhart Cycle, is a four-step the work process. due to emissions of dust, particulate matter, and greenhouse gases. Compliance with environmental regulations,
iterative process used for continuous improvement in quality management and problem-solving 2. Improve Efficiency: Simplify and optimize motions to reduce the time and effort required to perform proximity to sensitive environmental areas, and initiatives for sustainability and emission reduction are critical
1. Plan a task. considerations.
Objective: Identify the problem, set objectives, and develop a plan to achieve the desired improvement. 3. Enhance Worker Safety and Comfort: Reduce physical strain and fatigue by designing tasks that are 6. Cost of Land and Construction: The cost and availability of suitable land for the plant site, as well as the costs
 Identify the Problem: Clearly define the issue or area for improvement. Understand the current state associated with construction and infrastructure development, are important financial considerations.
ergonomically sound.
and the desired state. 4. Increase Productivity: Enable workers to complete tasks more quickly and with less effort. 33. Discuss the Break-Even Analysis method in selection of plant location
 Set Objectives: Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals Break-even analysis is a financial tool used to determine the point at which revenue equals total costs, resulting in
5. Improve Quality: Ensure that optimized motions lead to more consistent and higher-quality outputs.
for the improvement. neither profit nor loss. In the context of selecting a plant location, break-even analysis helps decision-makers assess
30. What are the components of Standard Time? the financial feasibility of various location options by calculating the volume of production or sales needed to cover
 Develop a Plan: Create a detailed action plan that outlines the steps needed to achieve the Standard time is a crucial concept in work measurement and time study, used to establish the costs
objectives. This includes assigning responsibilities, setting timelines, and identifying necessary
amount of time required for a qualified worker to complete a specific task under defined conditions. 1. Identify Cost Components:
resources.
It encompasses several components to ensure the time set is realistic and accounts for various o Fixed costs: Costs that do not vary with production or sales volume, such as rent, insurance, and
2. Do
administrative salaries.
Objective: Implement the plan on a small scale to test its effectiveness. factors affecting work performance. The main components of standard time are:
o Variable costs: Costs that vary directly with production or sales volume, such as raw materials, labor,
 Implement the Plan: Execute the action plan developed in the planning phase. Ensure that all team and utilities.
members understand their roles and responsibilities. 1. Basic Time: Also known as "normal time" or "observed time," this is the time it takes for a
2. Calculate Total Costs: Sum up all fixed and variable costs for each location option to determine the total cost
 Document the Process: Record observations, collect data, and document any issues or deviations worker to perform a task under normal working conditions, excluding any allowances. It is structure.
from the plan. This documentation will be critical for the next phase. typically calculated by multiplying the observed time by a performance rating factor. 3. Determine Selling Price and Contribution Margin: Establish the selling price per unit of the product and calculate
3. Check the contribution margin per unit. The contribution margin represents the amount of each sale that contributes to
Objective: Evaluate the results of the implementation to determine whether the plan is achieving the desired Basic Time=Observed Time × Performance Rating covering fixed costs and generating profit.
objectives. 4. Compute Break-Even Point: The break-even point is the level of production or sales where total revenue equals
 Analyze Results: Compare the actual outcomes with the expected results. Use data collected during 2. Allowances: These are additional time allowances added to the basic time to account for total costs. This calculation determines the minimum level of production or sales required for the plant to cover
the "Do" phase to assess performance. various delays, interruptions, and needs that occur during a workday. Allowances ensure all costs.
 Identify Deviations: Identify any deviations from the plan and understand why they occurred. This that the standard time is realistic and achievable under normal working conditions. 5. Compare Location Options: Calculate the break-even point for each location option based on their respective
includes looking for unexpected problems or failures. cost structures and contribution margins. The location with the lowest break-even point may indicate the most
financially viable option in terms of achieving profitability sooner.

34. Types of facility layout 36. Objectives of forecasting in production? 1.Considering the following data. Apply Return on Investment (ROI) method to select the
Facility layout refers to the arrangement of machinery, equipment, workstations, and other resources within a facility The objectives of forecasting in production can be summarized as follows: most suitable site for a plant.
to optimize workflow, efficiency, and productivity. The layout design can significantly impact operations, including 1. Optimizing Production Planning
material handling, production flow, communication, and overall operational costs.  Balancing Supply and Demand: Forecasting helps in aligning production capacity with anticipated Factors Site A Site B Site C
Process Layout (or Functional Layout) 1. Land 1,00,000 1,00,000 1,00,000
demand levels. 2. Building 1,50,000 1,25,000 1,00,000
 Description: In a process layout, similar machines or equipment are grouped together based on their  Efficient Resource Allocation: Forecasts guide decisions on the allocation of resources such as labour, 3. Total Sales 3,50,000 3,00,000 3,00,000
functions or types of operations they perform. This layout is typically used for job shops or batch raw materials, equipment, and facilities 4. Raw Material Cost 60,000 80,000 55,000
production environments where a variety of products are made in small quantities. 5. Distribution Cost 40,000 40,000 45,000
2. Inventory Management
6. Electricity 10,000 25,000 35,000
Product Layout (or Line Layout)  Inventory Optimization: Forecasts aid in determining optimal inventory levels based on anticipated 7. Water 30,000 25,000 35,000
 Description: In a product layout, equipment and workstations are arranged in a sequence that follows demand fluctuations. This helps in maintaining sufficient stock to fulfil customer orders while avoiding 8. Salary & Wages 45,000 50,000 40,000
the order of operations required to assemble a specific product or product family. Each workstation excess inventory that ties up capital and storage space. 9. Community facilities good satisfactory poor
10. Community attitude good satisfactory good
performs a specialized task in a continuous flow. 3. Cost Management
Site A
Fixed-Position Layout  Minimizing Production Costs: Forecasting supports cost-effective production by allowing for efficient
use of resources and reducing waste associated with overproduction or excess inventory. 1. Total Investment:
 Description: In a fixed-position layout, the product remains stationary, and workers, equipment, and Total Investment (Site A) =Land+ Building=100,000+150,000=250,000
materials are brought to the site. This layout is common in construction projects, shipbuilding, and  Budgeting and Financial Planning: Reliable forecasts assist in budgeting and financial planning by
providing insights into future revenue streams, production expenses, and cash flow projections. 2. Total Costs:
large-scale equipment manufacturing. Total Costs (Site A) =60,000+40,000+10,000+30,000+45,000=185,000
4. Customer Service and Satisfaction
Cellular Layout (or Group Layout) 3. Net Profit:
 Meeting Customer Demand: Forecasting ensures that products are available when customers need
 Description: Cellular layout groups machines, equipment, and workstations into cells that perform a Net Profit (Site A) =Total Sales−Total Costs=350,000−185,000=165,000
them, thereby enhancing customer satisfaction and loyalty.
sequence of operations required to produce a family of similar products. Each cell operates 4. ROI:
 Improving Delivery Times: By predicting demand accurately, production schedules can be optimized
autonomously, minimizing material handling and setup times. ROI (Site A) = (165,000/250,000) ×100=66%
to improve lead times and meet delivery commitments.
Hybrid Layout Site B
5. Strategic Decision Making
 Description: A hybrid layout combines elements of different layouts to leverage their respective 1. Total Investment:
 Long-Term Planning: Forecasts provide valuable information for strategic decision making and long-
Total Investment (Site B) =Land +Building=100,000+125,000=225,000
strengths while minimizing their weaknesses. It aims to optimize specific processes or workflows term planning. This includes decisions related to capacity expansion, new product introductions,
2. Total Costs:
within a facility. market expansions, and investment in technology or infrastructure.
Total Costs (Site B) =80,000+40,000+25,000+25,000+50,000=220,000
35. Objectives of a good layout 37. Discuss the objectives of demand forecasting .
Objectives of Demand Forecasting: 3. Net Profit:
The objectives of a good layout typically include: Net Profit (Site B) =Total Sales−Total Costs=300,000−220,000=80,000
1. Production Planning and Inventory Management:
o Optimize Production Levels: Forecasting helps in determining the optimal level of production 4. ROI:
1. Optimization of Space Utilization
ROI (Site B) = (80,000/225,000) ×100=35.56%
 Maximize Use of Available Space: Efficiently use floor space, vertical space, and storage areas to to meet anticipated demand, thereby avoiding underproduction or overproduction
scenarios. Site C
accommodate production processes, storage of materials, and movement of goods. 1. Total Investment:
o Efficient Inventory Management: Accurate forecasts enable organizations to maintain
 Minimize Wastage: Reduce wasted space through effective planning and layout design, ensuring that Total Investment (Site C) =Land +Building=100,000+100,000=200,000
appropriate inventory levels, reducing carrying costs associated with excess inventory while
every square foot is used productively. 2. Total Costs:
ensuring products are available to meet customer demand.
2. Improved Flow of Materials and Goods 2. Resource Allocation: Total Costs (Site C) =55,000+45,000+35,000+35,000+40,000=210,000
 Smooth Workflow: Design a layout that facilitates a logical sequence of operations, minimizing o Optimize Resource Utilization: Forecasting guides decisions on resource allocation, including 3. Net Profit:
material handling and transportation times between workstations or departments. labor, raw materials, and production capacity. This ensures that resources are utilized Net Profit (Site C) =Total Sales−Total Costs=300,000−210,000=90,000
 Reduced Material Handling Costs: Minimize the distance and time required to move materials and efficiently, reducing costs and improving operational efficiency. 4. ROI:
goods within the facility, thereby lowering operational costs. 3. Financial Planning and Budgeting: ROI (Site C) = (90,000/200,000) ×100=45%
3. Enhanced Productivity and Efficiency o Budget Allocation: Forecasts provide insights into future revenue streams and expenses,
 Optimized Process Flow: Arrange equipment, workstations, and resources in a manner that supports facilitating budgeting and financial planning processes. Comparison of ROI
efficient production processes and reduces cycle times. o Cash Flow Management: By predicting demand accurately, organizations can manage cash
 Reduced Downtime: Minimize downtime by ensuring easy access to equipment, tools, and materials flow effectively, aligning expenditures with expected revenue.
4. Marketing and Sales Strategy:  Site A: 66%
required for production.  Site B: 35.56%
o Develop Marketing Plans: Forecasting supports the development of marketing strategies by
4. Flexibility and Adaptability  Site C: 45%
identifying potential market opportunities and targeting customer segments effectively.
 Accommodate Changes: Design a layout that can easily adapt to changes in production volume, o Sales Planning: It helps in setting realistic sales targets and developing sales strategies to
product mix, and technology without significant disruptions or additional costs. achieve those targets. Based on the ROI calculations, Site A has the highest ROI of 66%. Thus, according to the
 Modularity: Incorporate modular design principles that allow for easy expansion, reconfiguration, or
ROI method, Site A is the most suitable location for the plant.
modification of the layout as business needs evolve.
5. Safety and Ergonomics
 Ensure Safe Working Environment: Design workstations and layout configurations that promote
worker safety, minimize ergonomic risks, and comply with health and safety regulations.
 Reduce Accidents: Arrange machinery and equipment to reduce the risk of accidents and injuries,
ensuring clear pathways and visibility within the facility.
 2.Times clocks Ltd. is considering two location options for locating its now clock manufacturing facility, 4.Potential locations A, B and C have the cost structures as shown below for producing a product expected to sell for Rs. 5. A manufacturer of garments is actively considering five alternative locations for setting up its factory.
Pune and Noida. The company has its existing manufacturing facility at Chennai, which caters to the 3250 per unit. Find the most economical location for an expected volume of 2750 units per year. Locations vary in terms of their advantages to the firm. Based on the survey the firm has arrived at six
markets in the southern part of the country. The company estimates that the fixed costs and variable factors to be considered for final site selection. Each of the factors as well as the individual locations are
costs at Pune for the facility are Rs. 2 million and Rs. 30 per clock respectively. On the other hand, at Site Fixed cost per year Variable cost per unit rated on a on a scale of 1 to 100. Use the method of factor rating to find the best location.
Noida, the fixed and variable costs are estimated at Rs. 1.8 million and Rs. 40 per clock respectively. The
sales revenue estimates are also different for the two locations because of the consumers’ perception. A A 6500000 1200 Factor Rating Rating of each factor for five locations on a scale of 100
clock can be sold for Rs. 100 if manufactured at Noida, and the same clock can fetch Rs. 120 if Factors L1 L2 L3 L4 L5
B 7500000 560 Factors Rating
manufactured in Pune. The management of the company will choose that location option at which the Availability of infrastructure 20 40 60 35 55
breakeven volume in lower. Which option should the company choose? Availability of infrastructure 90 Size of the market 30 30 40 60 80
C 5500000 4250
Pune Size of the market 60 Industrial relations climate 80 30 50 60 50
 Fixed Costs: Rs. 2,000,000 Site A Industrial relations climate 50 Tax benefits and concessions 80 20 10 20 20
 Variable Cost per Clock: Rs. 30  Fixed cost per year: Rs. 6,500,000 Tax benefits and concessions 30 Availability of cheap labour 70 70 45 50 50
 Selling Price per Clock: Rs. 120  Variable cost per unit: Rs. 1,200 Availability of cheap labour 30 Nearness to port 20 40 90 50 60
Breakeven Volume (Pune)= (2,000,000/120−30) = (2,000,000/90) =22,222.22 clocks  Expected volume: 2750 units Nearness to port 65
Noida Total Cost A=6,500,000+(1,200×2750) = 9,800,000 Location L1
 Fixed Costs: Rs. 1,800,000 Site B Weighted ScoreL1 = (20×90) +(30×60) + (80×50) +(80×30) +(70×30) +(20×65)
 Variable Cost per Clock: Rs. 40  Fixed cost per year: Rs. 7,500,000 Weighted ScoreL1=1800+1800+4000+2400+2100+1300=13400
 Selling Price per Clock: Rs. 100  Variable cost per unit: Rs. 560 Location L2
Breakeven Volume (Noida)= (1,800,000/100−40) = (1,800,000/60) =30,000 clocks  Expected volume: 2750 units Weighted ScoreL2= (40×90) +(30×60) +(30×50) +(20×30) +(70×30) +(40×65
 Breakeven Volume (Pune): 22,222.22 clocks Total Cost B=7,500,000+(560×2750) = 9,040,000 Weighted ScoreL2=3600+1800+1500+600+2100+2600=12200
 Breakeven Volume (Noida): 30,000 clocks Site C Location L3
The breakeven volume is lower for Pune (22,222.22 clocks) compared to Noida (30,000 clocks).  Fixed cost per year: Rs. 5,500,000 Weighted ScoreL3= (60×90) +(40×60) +(50×50) +(10×30) +(45×30) +(90×65)
3.The table below shows factor ratings and location ratings for location alternatives A and B. Weighted ScoreL3=5400+2400+2500+300+1350+5850=17800
 Variable cost per unit: Rs. 4,250
Identify the most suitable location Location L4
 Expected volume: 2750 units
Weighted ScoreL4= (35×90) +(60×60) +(60×50) +(20×30) +(50×30) +(50×65)
Total Cost C=5,500,000+(4,250×2750) = 17,187,500
Location Rating Weighted ScoreL4=3150+3600+3000+600+1500+3250=15100
Factors Factor Rating Summary of Total Costs
Location A Location B Location L5
Tax Advantage 4 8 6
 Site A: Rs. 9,800,000
Weighted ScoreL5= (55×90) +(80×60) +(50×50) +(20×30) +(50×30) +(60×65)
Suitability of labour skill 3 2 3  Site B: Rs. 9,040,000
Weighted ScoreL5=4950+4800+2500+600+1500+3900=18250
Proximity to customers 3 6 5  Site C: Rs. 17,187,500
Proximity to suppliers 5 2 4 The most economical location for an expected volume of 2750 units per year is Site B with a total cost of Rs. 9,040,000.
Summary of Weighted Scores
Adequacy of water 1 3 3  L1: 13,400
Quality of educational system 3 2 5  L2: 12,200
Transportation facility 4 3 4  L3: 17,800
Availability of electricity 4 4 6
 L4: 15,100
 L5: 18,250
Location A
The best location based on the factor rating method is Location L5 with a weighted score of 18,250.
1. Tax Advantage: 4×8=32
2. Suitability of labour skill: 3×2=6 6.The Arcot Fabric Co. produces large bed covers (among other things): they are supposed to be brightly
3. Proximity to customers: 3×6=18 coloured and have a fringe on each end. From time to time, a bed cover is selected from the finished
4. Proximity to suppliers: 5×2=10 goods and subjected to an intense inspection in search of any defect. A defect is a stain, a badly dyed
5. Adequacy of water: 1×3=3 spot, a hole, a missing fringe, etc., each occurrence counts as a distinct defect. Here is data on 12 sample
6. Quality of educational system: 3×2=6 bed covers.
7. Transportation facility: 4×3=12
8. Availability of electricity: 4×4=16
Total score for Location A: 32+6+18+10+3+6+12+16=103 Bed Covers 1 2 3 4 5 6 7 8 9 10 11 12
Location B
1. Tax Advantage: 4×6=24
2. Suitability of labour skill: 3×3=9
3. Proximity to customers: 3×5=15 Number of defects 2 1 3 0 1 4 0 1 3 2 3 1
4. Proximity to suppliers: 5×4=20
5. Adequacy of water: 1×3=3
6. Quality of educational system: 3×5=15 1. Calculate cˉ:
7. Transportation facility: 4×4=16 cˉ= (2+1+3+0+1+4+0+1+3+2+3+1/12) =1.75
8. Availability of electricity: 4×6=24 2. Calculate UCL and LCL:
Total score for Location B: 24+9+15+20+3+15+16+24=126
UCL=1.75+3 root 1.75 = 5.71
 Total score for Location A: 103
 Total score for Location B: 126 LCL=1.75−3 root 1.75 = 2.21
Based on the weighted scoring method, Location B is the most suitable location as it has a higher total score of 126 Since the LCL cannot be negative for a ccc-chart, we set the LCL to 0.
compared to Location A's score of 103.

7.The Perfect Circle Company manufactures electrical isolator. Once each hour a sample of 125 finished 9.Six consecutive lots of gear were inspected by sampling process at the final inspection. The
products is drawn from the output; each product is examined by a technician. Those which fail are classified number of defectives observed in different samples, each sample consisting of 150 pieces are given
as defective; the rest are satisfactory. Here are data on ten consecutive samples taken in one week: below:

Sample no. 1 2 3 4 5 6 7 8 9 10 Sample 1 2 3 4 5 6 7 8 9

number

Number of 5 10 4 6 7 8 9 10 6
Defective 15 13 16 11 13 14 20 25 30 45
defectives

Draw a control chart for the fraction defectives.

Calculate pˉ: Calculate the average proportion of defectives (pˉ):

pˉ=
(0.12+0.104+0.128+0.088+0.104+0.112+0.16+0.2+0.24 pˉ=
+0.36/10) = 0.1616 (0.0333+0.0667+0.0267+0.04+0.0467+0.0533+0.06+0.0667
UCL= 0.1616+3 root 0.001083 = 0.2603 +0.04)/9
LCL= 0.1616−3 root 0.001083 = 0.0629 pˉ= 0.0482

8.A-line inspector in an engineering company recorded dimensions of each of the five jobs
selected at the end of every half an hour of the five hours in the morning. The quality
characteristic is the measurement of the diameter. Plot X-Bar and R chart and find out which of
the given observations are out of control. Given constants: A2 = 0.5768, D3 = 2.114, D4 = 0.
Calculate the Control Limits
Sample Range(  Upper Control Limit (UCLp): UCLp=0.0482+3 root (.0482× (1−0.0482)/150) = 0.1007
no Average(Xbar) R)  Lower Control Limit (LCLp): LCLp=0.0482−3 root 0.000305796 = 0
1 25.01 0.03
2 25.02 0.04
3 25.02 0.02
4 25.02 0.03
5 25.02 0.03
6 25.02 0.07
7 25 0.04
8 25.01 0.03
9 25.01 0.06
10 24.99 0.05
 Calculate Control Limits for Xˉ Chart
Upper Control Limit (UCLXˉ)
UCLXˉ= (Xˉ+A2Rˉ) = 25.012+0.5768×0.04 =25.035072
 Lower Control Limit (LCLXˉ):
LCLXˉ=(Xˉ−A2Rˉ) = 25.012−0.5768×0.04 =24.988928
Calculate Control Limits for R-Chart
 UpperControlLimit (UCLR_R): UCLR=2.114×0.04= 0.08456
 LowerControlLimit (LCL_R): LCLR= 0×0.04 =0