Answer (2) Differentiation Strategies Differentiation is a process by which a company distinguishes itself from its competitors and their

offerings. The process includes adding a set of differentiators which are meaningful and adds value for the customer. The differences should be perceived by the customer as important, distinctive, superior and affordable. Nonetheless, they have to make the companys offerings i.e the products and services profitable. To derive competitive advantage the study of the processes to adapt innovations which should be of such nature as being preemptive is important. Here, we are not considering the situation of an entirely new product but those which are already contributing to the company revenues and the threat of competitors has to be met. According to Miland Lele (Miland M.Lele, Creating Strategic Leverage: New York, John Wiley 1992) companies have different potential in terms of maneuverability along with target market, place(channels), promotion and price. These are affected by the companys position in the market, the industry structure. BCG has classified ( Philip Kotler) four types of industries and the approaches available, depending on the cell the particular industry fits into. Tools for implementation of Operations All functions in the organisation including administration, finance, materials, purchase, marketing, production, logistics, communication and others, can be considered operations. The reason is all of them use some inputs like materials or information either on a person to person basis or through a flow line. They are required to use some process and convert them into outputs usable in the next stage of the value chain. For example, when an invoice is received for payment, it contains information about a material or a service, the person who needed it, the price to be paid, the supplier, transportation, insurance, quantity, tax to be paid, etc. The bills payable section will have to verify data regarding the above, seek inspection reports from the quality control department/user department to certify the bill for payment. Before actual payment is made verification of the terms of payment, availability of funds etc are done You will notice that information is sought or given, materials received and transferred, papers/instructions are received / issued for initiating activities. All these are also operations. However, for our study we will limit our focus to operations involving manufacture. We identify a set of specialized techniques call them tools which can be standardized for ease of implementation and control. Implementation of Operations Implementation is the process of executing the planned operations. Estimating, routing and loading are the planning processes and dispatching and progressing are processes which are conducted while the manufacturing is going on. We call the former planning and the latter controlling function. Put together they are considered implementation. Estimating gives the quantities to be made at each workstation depending on the sales forecast, provision for buffer stock, quantities bought out, or services outsourced, likely shortfalls etc. It is done on the basis of capacity. The next step, routing, determines the sequence of operations and the machines that do them so that work flow as determined by the processes is smooth resulting in minimum

inventory. Scheduling is mainly concerned with allocating time slots for different jobs. It specifies as to when jobs start and end at particular workstations. The purpose is to prevent imbalances among work centers and utilize labor hours in such a way that established lead times are maintained. Dispatching is concerned with actually moving the materials with tools, jigs and fixtures to specific machines along with drawings and ensuring inspections at specific nodes, so that the materials move in the supply chain, Expediting is mainly to ensure that all the above are being done properly. Reports are generated and any bottleneck that gets created is removed. Tools for implementation GANTT charts are used to record progress comparing the actual against the planned activities and keep track of the flow of the material. Line balancing and line of balance are two more tools to ensure that machining centers are loaded as uniformly as possible to prevent build up stocks at intermediate stages. Simulation models are used to predict utilization of machines and production levels. Various inventory models help us to determine when to order and how many to order and also give us an insight to the risks and opportunities that come up for our consideration. Proper maintenance and analysis of records help us to see the gaps that have crept into the operations system. Learning that happens across functions will make the tools used more realistically and increase efficiency. Many ERP software, especially SAP have many modules that store, sort and analyze data and make them available to the staff across the globe in many plants enabling managers to streamline their operations. Software specific to functions, applications or organization can be obtained. Microsoft Operations Manager 2005 is a useful tool in this regard

Answer (3) Automated flow lines : When several automated machines are linked by a transfer system which moves the parts by using handling machines which are also automated, we have an automated flow line. After completing an operation on a machine, the semifinished parts are moved to the next machine in the sequence determined by the process requirements a flow line is established. The parts at various stages from raw material to ready for fitment or assembly are processed continuously to attain the required shapes or acquire special properties to enable them to perform desired functions. The materials need to be moved, held, rotated, lifted, positioned etc. for completing different operations. Sometimes, a few of the operations can be done on a single machine with a number of attachments. They are moved further to other machines for performing further operations. Human intervention may be needed to verify that the operations are taking place according to standards. When these can be achieved with the help of automation and the processes are conducted with self regulation, we will have automated flow lines established. One important consideration is to balance times that different machines take to complete the operations assigned to them. It is necessary to design the machines in such a way that the operation times are the same throughout the sequence in the flow of the martial. In fixed automation or hard automation, where one component is manufactured using several operations and machines it is possible to achieve this condition or very nearly. We assume that product life cycles are sufficiently stable to invest heavily on the automated flow lines to achieve reduced cost per unit. The global trends are favouring flexibility in the manufacturing systems. The costs involved in changing the set up of automated flow lines are high. So, automated flow lines are considered only when the product is required to be made in high volumes over a relatively long period. Designers now incorporate flexibility in the machines which will take care of small changes in dimensions by making adjustments or minor changes in the existing machine or layout. The change in movements needed can be achieved by programming the machines. Provision for extra pallets or tool holders or conveyors are made in the original design to accommodate anticipated changes. The logic to be followed is to find out whether the reduction in cost per piece justifies the costs of designing, manufacturing and setting up automated flow lines. Group Technology, Cellular Manufacturing along with conventional Product and Process Layouts are still resorted to as they allow flexibility for the production system. With methodologies of JIT and Lean Manufacturing finding importance and relevance in the competitive field of manufacturing, many companies have found that well designed flow lines suit their purpose well. Flow lines compel engineers to put in place equipments that balance their production rates. It is not possible to think of inventories (Work In Process) in a flow line. Bottlenecks cannot be permitted. By necessity, every bottleneck gets focused upon and solutions found to ease them. Production managers see every bottleneck as an opportunity to hasten the flow and reduce inventories. However, it is important to note that setting up automated flow lines will not be suitable for many industries Automated Assembly Lines : All equipments needed to make a finished product are laid out in such a way as to follow the sequence in which the parts or subassemblies are put together and fitted. Usually, a frame, body, base will be the starting point of an assembly. The frame itself consists of a construction made up of several components and would

have been assembled or fabricated in a separate bay or plant and brought to the assembly line. All parts or subassemblies are fitted to enable the product to be in readiness to perform the function it was designed to. This process is called assembly. Methodologies of achieving the final result may vary, but the basic principle is to fit all parts together and ensure linkages so that their functions are integrated and give out the desired output. Product Layouts are designed so that the assembly tasks are performed in the sequence they are designed. You will note that the same task gets repeated at each station continuously. The finished item comes out at the end of the line The material goes from station 1 to 5 sequentially. Operation 2 takes longer time, say twice as long. To see that the flow is kept at the same pace we provide two locations 2a and 2b so that operations 3, 4 an 5 need not wait. At 5, we may provide more personnel to complete operations. The time taken at any of the locations should be the same. Otherwise the flow is interrupted. In automated assembly lines the moving pallets move the materials from station to station and moving arms pick up parts, place them at specified places and fasten them by pressing, riveting, screwing or even welding. Sensors will keep track of these activities and move the assemblies to the next stage. An operator will oversee that the assemblies are happening and there are no stoppages. The main consideration for using automated assembly lines is that the volumes justify the huge expenses involved in setting up the system. Rapid Prototyping : Prototyping is a process by which a new product is developed in small numbers so as to determine the suitability of the materials, study the various methods of manufacture, type of machinery required and to develop techniques to overcome problems that my be encountered when full scale manufacture is undertaken. Prototypes do meet the specifications of the components that enter a product and performance can be measured on those. It helps in confirming the design and any shortcomings can be rectified at low cost. If serious defects or problems arise during the manufacture, a thorough change in design or even its replacement may be considered. To arrive at decisions to make use of the advantages stated above, it is important that the prototypes are made within the shortest possible time. Rapid prototyping facilitates this. It uses virtual designs from Computer Aided Design CAD or animation modeling which transforms dimensional data to 3dimensional views. The physical space of the product is amenable to have cross sections made. Cross sections taken at very close positions gives thin layers which enable the generation of a solid model of the designed product. The data that is thus created helps build a solid model exactly as per the drawings. Any shape can be generated in this method. Advanced technologies like SLS ( Selective Laser Sintering), FDM (Fused Deposition Modeling), LOM (Laminated Object Manufacture), EBM (Electronic Beam Melting) are some of Rapid Prototype Modeling Processes. Since the basis data about the product is already available in CAD, the above processes can produce models in a matter of a few days. Conventional machines like lathes, milling machines, grinding machines, EDM (Electro Discharge Machining) also help in the production of prototypes. Because of their advantages Rapid Prototyping is being increasingly used. A bimonthly magazine TCT Magazine calling the Rapid Prototyping as Time Compressing Techniques is dedicated to the publication of latest developments in this field as researched and developed by practitioners around the world.

Answer (1)
Quality circles

Kaoru Ishikawa is generally considered to have promoted the concept of Quality Circles. It is well known that he is the originator of fishbone diagrams to identify the root cause of any problem (See Figure 1.5 Example of a fishbone diagram). The causes for the existence of a problem are classified as pertaining to the material, processes or method or any factor that goes into production. The matter is further investigated and pursued till the exact cause is determined.

Quality Circles use these principles in solving problems. A Quality Circle is composed of a small group of employees who genuinely care about others, and who preferably does similar work, that is: Meeting voluntarily with a leader on a regular basis Identifying the problems Analysing the causes Recommending their solutions to management Implementing solutions, wherever possible The teams select projects as per these problems and implement actions to achieve improvement in the processes with a view to improve quality. Since these activities are carried out without affecting the regular work and involve little involvement of the managers, team work gets reinforced and results in continuous improvement in methods and quality. The capital deployed is minimal, if at all, and therefore productivity is enhanced. Use of computers in design CAD Designs of products are increasingly depending on Computer Aided Design (CAD). It is an electronic system for designing new parts or products or altering existing ones, replacing drafting traditionally done by hand. The designs are made using powerful desktop computers and graphics software. Designer can create drawings and view them from any angle on a display monitor. Images of different components can be seen as assembled; sections taken and relative positions can be checked to great accuracies. Views can be made from different angles and positions, so that the visualisation process

of the designed component/product helps the designer to suggest alternatives to the customer and the production department. The drawings can be sent via intranet or internet to the concerned persons and their opinions taken. Corrections and incorporations can be made very quickly. The computer can also simulate the reaction of a part to strength and stress tests. Using the design data stored in the computers memory, manufacturing engineers and other users can quickly obtain printouts of plans and specifications for a part or product. The software can generate the volume, weights of components as also other engineering parameters like centre of gravity, deflections under estimated loads, and various other design parameters on complicate forms, either for single components or assemblies. Laborious mechanical drawings or complicated calculations need not be drawn for people using this software. The database can be prepared, updated continuously and their access to executive. Analysts use CAD to store, retrieve, and classify data about various parts. CAD helps to increase the efficiency of a designers work. This aids in reducing the time required for making a design or modifying a product and thus concept market period gets drastically cut. This implementation also cuts the cost of product development and sharply reduces the time to market new products. It saves time by enabling designers to access and modify old designs quickly, rather than start from scratch. Computer integrated manufacturing (CIM) Integration occurs when a broad range of manufacturing and supporting activities are linked. CIM is the complete automation of a manufacturing plant, with all processes functioning under computer control and digital information tying them together. The three major functions in manufacturing are production, design, and management function. Production function converts resources into products. The design function transforms customer specifications into design. Finally the management functions plan and control production activities. The three computer aids in CIM are: Computer aid to the production function (automated flow of materials) Computer aid to the design function (automated flow of technological information) Computer aid to the management function (automated flow of managerial information) When it comes to production, CIMs are included in different areas of production process such as in engineering design, production planning, shop control, order processing, material control, distribution and many other areas. Information flow across all the functions takes place with the help of computers. Transmission, processing, distribution, and feedback happen almost in real time so that intended activities are conducted rapidly. CIM process helps in rapid production and also reduces indirect costs. CIM uses computers to control the entire production process. This integration allows the processes to exchange information with each other and thus they become capable of initiating actions. As response times decrease, customer satisfaction increases resulting in better business. CIM helps in avoiding accumulation of materials resulting in better throughput and better utilisation of space. Bar coded labels that accompany materials contain instructions for processing them which are read by sensing devices and display the status on monitors. This information is available to all concerned personnel responsible in planning, marketing and other activities so that they will be aware of the status of any order. If expediting is needed to meet deadlines, they will be able to seek intervention. Identifying shortages and ensuring faster deliveries become easy with CIM.

Answer(6) Project cycle A project cycle consists of the various activities of operations, resources, and the limitations imposed on them. Definition of Project Management Managing a project is the practice of controlling the use of resources, such as cost, time, manpower, hardware, and software involved in the project. It usually starts with a problem statement and ends with delivery of a complete product. Project management involves understanding the scope and various processes in a project cycle Project A Project is a temporary endeavour with a finite completion date undertaken to create a unique product or service. Projects bring form or function to ideas or needs. A project is a set of activities which are networked in order and aimed towards achieving the goals of a project. Upon the completion of all the activities, the goals of the project would have been achieved. A project is undertaken to achieve a purpose. Some examples of projects are listed below. Commissioning a new industrial unit Construction of a house Setting up of an office Developing a technology Launching a new product in the market Scope of the project refers to the various parameters that affect the project in its planning, formulation, and executions. Project management knowledge areas The knowledge areas of project management are the following: Project integration management, cost management, communications management Project scope management, quality management, risk management Project time management, human management, procurement management For a project to be successful, it is necessary to understand its relationship with other management disciplines. Other management supporting disciplines are business legal issues, strategic planning, logistics, human resource management, and domain knowledge.

Project failure A project may fail because of one or more of the following reasons: Incidence of project failure Factors contributing to project success not emphasised Overview of Information and Communication Technologies (ICT) projects Common problems encountered during projects Let us know more in detail the reasons for the failure of a project in this section. Incidence of project failure: The incidents of project failure are due to following reasons: Projects being initiated at random at all levels Project objective not in line with business objective Project management not observed Project manager with no prior experience in the related project Non-dedicated team Lack of complete support from clients

Answer (4)

Factors influencing Plant Location can be broadly divided into two types namely: general factors and special factors
General factors The general factors that influence the plant location are listed below 1. Availability of land: Availability of land plays an important role in determining the plant location. Many-a-time, our plans, calculations and forecasts suggest a particular area as the best to start an organisation. However, availability of land may be in question. In such cases, we will have to choose the second best location. 2. Availability of inputs: While choosing a plant location, it is very important for the organisation to get the labour at the right time and raw materials at good qualities. The plant should be located: Near to the raw material source when there is no loss of weight At the market place when there is a loss of weight in the material Close to the market when universally available, so as to minimise the transportation cost 3. Closeness to market places: Organisations can choose to locate the plant near to the customers market or far from them, depending upon the product they produce. It is advisable to locate the plant near to the market place, when: The projection life of the product is low The transportation cost is high The products are delicate and susceptible to spoilage After sales services are promptly required very often The advantages of locating the plant near to the market place are: Consistent supply of goods to the customers Reduction of the cost of transportation 4. Communication facilities: Communication facility is also an important factor which influences the location of a plant. Regions with good communication facilities viz. Postal and Tele communication links should be given priority for the selection of sites. 5. Infrastructure: Infrastructure plays a prominent role in deciding the location. The basic infrastructure needed in any organisation are: Power: For example, industries which run day and night require continuous power supply. So they should be located near to the power stations and should ensure continuous power supply throughout the year. Water: For example, process industries such as, paper, chemical, and cement, requires continuous water supply in large amount. So, such process industries need to be located near to the water. Waste disposal: For example, for process industries such as, paper and sugarcane industries facility for disposal of waste is the key factor.

6. Transport: Transport facility is a must for facility location and layout of location of the plant. Timely supply of raw materials to the company and supply of finished goods to the customers is an important factor. The basic modes of transportation are by Air, Road, Rail, Water, and Pipeline. The choice of location should be made depending on these basic modes. Cost of transportation is also an important criterion for plant location. 7. Government support: The factors that demand additional attention for plant location are the policies of the state governments and local bodies concerning labour laws, building codes, and safety. 8. Housing and recreation: Housing and recreation factors also influence the plant location. Locating a plant with the facilities of good schools, housing and recreation for employees will have a greater impact on the organisation. These factor seems to be unimportant, but have a difference as they motivate the employees and hence the location decisions Special factors The special factors that influence the plant location are: 1. Economic stability outside investments 2. Cultural factors 3. Wages 4. Joint ventures support of big time players

Answer(5)
Jurans quality triology Juran uses his famous Universal Breakthrough Sequence to implement quality programmes. The universal breakthrough sequences are: Proof of need: There should be a compelling need to make changes. Project identification: Here what is to be changed is identified. Specific projects with time frames and the resource allocation are decided. Top management commitment: Commitment of the top management is to assign people and fix responsibilities to complete the project Diagnostic journey: Each team will determine whether the problems result from systemic causes or are random or are deliberately caused. Root causes are ascertained with utmost certainty. Remedial action: This is the stage when changes are introduced. Inspection, testing, and validation are also included at this point. Holding on to the gains: The above steps result in beneficiary results. Having records or all actions and consequences will help in further improvements. The actions that result in the benefits derived should be the norm for establishing standards. Juran has categorised cost of quality into four categories: 1. Failure costs - Internal: These are costs of rejections, repairs in terms of materials, labour, machine time and loss of morale. 2. Failure costs - External: These are costs of replacement, on-site rework including spare parts and expenses of the personnel, warranty costs and loss of goodwill. 3. Appraisal costs: These are costs of inspection, including maintenance of records, certification, segregation costs, and others. 4. Prevention costs: Prevention cost is the sequence of three sets of activities, Quality Planning, Quality Control, and Quality Improvement, forming the triology to achieve Total Quality Management. Jurans argument says that: Quality is the result of good planning considering the needs of both internal and external customers and develops processes to meet them. The processes are also planned to meet them. (See Figure 6.8 for Jurans quality triology)

Quality is built into the system of manufacture, inputs and processes that are on
stream like raw material, spare parts, labour, machine maintenance, training, warehousing, inspection procedures, packaging, and others. All these have to follow standards and control exercises to make sure that mistake do not occur often and that if mistakes do occur then they are corrected at the source. Quality improvement measures are essential to keep the quality culture alive. Newer methods will be found, some operations can be eliminated, improved technology available. In short, as experience is gained things can always be done better. It is for the management to take the initiative and encourage the employees to be on the lookout for opportunities for improvement

Crosbys absolutes of quality Like Deming, Crosby also lays emphasis on top management commitment and responsibility for designing the system so that defects are not inevitable. He urged that there be no restriction on spending for achieving quality. In the long run, maintaining quality is more economical than compromising on its achievement. His absolutes can be listed as under: Quality is conformance to requirements, not goodness Prevention, not appraisal, is the path to quality Quality is measured as the price paid for non-conformance and as indices Quality originates in all factions. There are no quality problems. It is the people, designs, and processes that create problems Crosby also has given 14 points similar to those of Deming. His approach emphasises on measurement of quality, increasing awareness, corrective action, error cause removal and continuously reinforcing the system, so that advantages derived are not lost over time. He opined that the quality management regimen should improve the overall health of the organisation and prescribed a vaccine. The ingredients are: 1) Integrity: Honesty and commitment help in producing everything right first time, every time 2) Communication: Flow of information between departments, suppliers, customers helps in identifying opportunities 3) Systems and operations: These should bring in a quality environment so that nobody is comfortable with anything less than the best Quality control tools Flow Chart, Check sheet, Histogram, Pareto Analysis, Scatter Diagram, Control Chart, and Cause and Effect Diagram are the basic seven control tools considered for achieving quality