Institute of Management Technology

Centre for Distance Learning

A16, Site 3, UPSIDC Industrial Area, Meerut Road, Ghaziabad - 201 003

Subject Code: IMT-15

Subject Name : PRODUCTION

& OPERATIONS MANAGEMENT

Objectives
1. To provide an awareness of the role of Operations Management in the functioning of a business organization. 2. To given an insight into the relationships that exist between various factors that affect the operations of a business organization- manufacturing or service 3. To equip students with a tools and techniques for analyzing, designing and improving the functioning of an operations system.

Contents
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Nature and Scope of Production & Operations Management. Product Selection and Product Development. Process Selection and Production Systems. Location Planning and Plant Layout. Production Planning and Control. Value Engineering, Quality Control and Quality Assurance. Project Planning and Control : P E R T / C P M. Material Management: Scientific Inventory Control. Maintenance Operation Policy and Reliability. Use of Quantitative Techniques in solving Production Problems: Sequencing Technique( Johnsons Rules). Linear Programming(only Simplex Graphical). Transportation Technique(North-west Corner/Vogels Method). Hungarian Method for solving Assignment Problems.

References
1. Kanishka Bedi, Production & Operations Management, Oxford University Press 2. Chase R B, Aquilano N J, and Jacobs F R , Production and Operations Management: Manufacturing and Services (8th edition), Tata McGraw Hill 3. Krajewski Lee J & Ritzman Larry P, Operations Management: Strategy and Analysis, Addison Wesely

Notes:
a. b. c. d. a. Write answers in your own words as far as possible and refrain from copying from the text books/handouts. Answers of Ist Set (Part-A & Part-B), IInd Set (Part-C, Part-D), IIIrd Set (Short Answer Questions) and Case Study must be sent together. Mail the answer sheets alongwith the copy of assignments for evaluation & return. Only hand written assignments shall be accepted. First Set of Assignments: Part-A : 5 Marks & Part-B : 5 Marks. Each question carries 1 marks.

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b. c. d.

Second Set of Assignments: Third Set of Assignments: Forth Set of Assignments:

Part-C : 5 Marks & Part-D : 5 Marks. Each question carries 1 marks. 20 Short Answer Questions : 10 Marks. Each question carries marks. Confine your answers to 150 to 200 Words. Two Case Studies : 10 Marks. Each case study carries 5 marks.

ASSIGNMENTS
Subject Code : IMT-15 Subject Name: PRODUCTION

& OPERATIONS MANAGEMENT

PART A

1. What is production/ operations system? Discuss its components giving examples from both service and non service organisations. Explain how it affects and is affected by its external environment and other functional areas. 2. Define productivity. How can it be improved in manufacturing organisations? 3. There are two methods of processing oil at a refinery. Method 1 has fixed costs of Rs. 9,00,000 whereas the fixed costs for Method 2 are Rs. 11,00,000. The variable costs depend on the chemicals used and heating requirements. These are Rs. 1.50 and Rs. 1.00 per barrel respectively. Which method is more economical? 4. What do you understand by Product Development? Discuss the factors that would be taken into consideration while developing a new product? 5. What is meant by product life cycle? Explain its different stages.

PART B
1. 2. 3. 4. 5. Explain the factors that are to be taken into account for plant location for setting up an electronics equipment plant. What are the different Production Systems? State their characteristics. What do you understand by product layout and process layout? Compare the selection criteria of these layouts. Explain the methodology and assumptions for sequencing n jobs through three machines A,B,C in prescribed order ABC for each job. There are seven jobs to be processed through three machines M1, M2 and M3 in that order. The processing time for each job in hours is given in the table. Sequence these jobs using Johnsons method and find the overall processing time and idle times for the three machines:Job A B C D E F G M1 1 3 7 9 4 5 2 M2 7 3 8 2 8 6 1 M3 8 10 9 11 9 14 12

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PART C
1. 2. 3. What is Quality management? Discuss the various concepts of quality management namely quality planning, quality assurance and quality control. Define method study. Discuss the steps involved in method study. A job having five operators was studied and following time elements in minutes was observed: 1 Opn1 Opn2 Opn3 Opn4 Opn5 0.16 0.60 0.33 0.50 0.24 2 0.12 0.60 0.50 0.50 0.24 3 0.13 0.60 0.35 0.50 0.25 4 0.15 0.60 0.37 0.50 0.27 5 0.24 0.60 0.35 0.50 0.25

The following additional information was obtained about the job:1. Opn 2 and 4 are machine controlled. 2. There are two irregular occurences while timing ie having more than 25 % variation from average applicable to their respective operations. These have to be excluded for computation purposes. 3. The operators rating was 110. 4. Personal allowance is 30 minutes a day and unavoidable delay 20 minutes a day. The shift duration is 8 hrs. 5. Fatigue allowance of 10 % is given. Determine the following: (i) What should be the standard minutes per unit of this job? (ii) What should be the shift output standard? 4. 5. In a manufacturing company, what are the inventory related costs? For an item costing Rs. 50 per unit, there is a constant demand of 15,000 units per annum. The estimated cost of placing an order is Rs. 150 and the inventory carrying cost is 24 %. Find the Economic Order Quantity (E O Q).

PART D
1. Define Maintenance and state its objectives. 2. What are the various types of Maintenance System? Briefly discuss the functions of each. 3. What Maintenance Policy should be adopted for planning and control of spares? 4. What is Value Engineering? Discuss the various steps involved in it. 5. A small project consists of eight activities and has following characteristics:Activity Preceding Activity Time estimate (in weeks) Most Optimistic Most likely Most Pessimistic (to) (te) (tp) 2 6 12 10 12 26 8 9 10 10 15 20 7 7.5 11 9 9 9 3 3.5 7 5 5 5

A B C D E F G H

------A A A B,C D E,F,G

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(i) (ii) (iii) (iv)

Draw the network and determine the critical path. Find the float for all the activities. If a 30 week deadline is imposed, what is the probability that the project will be completed on time? If the project manager wants to be 99 % sure that the project will be completed on the scheduled date, how many weeks before that date should he start the project work?

SHORT ANSWER QUESTIONS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Work measurement and activity sampling. Automation in Production and flexible manufacturing systems. Role of computers in design of lay out. ABC Analysis. Total Productive Maintenance. Assembly Line and Cycle Time. MRP and ERP ISO 9000 series and 14000 series. Reliability and how it is calculated for parallel and series systems. Standardisation and variety reduction. Applications of linear programming in production. Tangible and intangible factors for plant location. Designed capacity, Rated capacity and Effective capacity. Fixed position layout. Quality Circles and Control Charts. Two basic questions to be answered in an inventory control system. Unbalanced transportation problem. Calculate the reliability of an automated production system with three operations: turning, milling and grinding. Individual parts are transferred from one operation to next operation by a robot, thus if one machine or robot fails, the entire production process must stop. The reliability of robot, turning centre, milling machine and grinder are: 0.99, 0.98, 0.99 and 0.96 respectively. Obtain the minimum transportation cost for the following transportation problem. D1 6 4 10 20 Destination D2 D3 5 8 2 5 50 20 50 40 D4 4 9 15 30 Supply 20 50 30

19.

Warehouse Requirement 20.

W1 W2 W3

What are the differences between transportation and assignment problems?

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CASE STUDY-1
An electric company manufactures both ceiling and table fans. Resource requirements for both these items are indicated below:Product Type Labour Hour per unit 2 4 Raw Material per unit (kg) 8 6 Profit per unit (Rs) 80 100

Table fan Ceiling fan

The company can make available 80 hours of labour and 240 kgs of raw materials. How many table and ceiling fans should be produced in a day to maximise profit?

CASE STUDY-2
The washdry company manufactures several models of washers and dryers. The projected requirements over the next year for their automatic washers are:Month 12 Demand 1 800 2 1030 3 810 4 900 5 950 6 1340 7 1100 8 1210 600 9 580 10 890 11 1000

Current inventory is 100 units. The firms current capacity is 960 units per month. The average salary of production workers is $ 1200 per month. Each production worker accounts for 30 units per month. Overtime is paid at one and a half upto 20 % additional time. Additional labour can be hired for a training cost of $ 250, and existing workers can be laid off at a cost of $ 500. Any increase or decrease in production rate costs $ 5000 for tooling, set up and line charges. This does not apply, however to overtime. Inventory holding costs are $ 25 per unit per month. Back order cost $ 75 per unit short. Determine two different production plans trying to minimise the cost of meeting next years requirements for:

1. 2.

Varying work force to meet demand. Keeping work force constant.

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