0 ASSIGNMENTS

2 SET-1
SUBJECT- PRODUCTION & OPERATIONS MANAGEMENT
0 CODE-MB0028
1

1 1. Explain the various automated systems for transfer of materials in the production
plant? Illustrate your answer by considering an example of an automobile showroom.

A work center is a production facility comprising of one or more machines and

one or more workmen considered as a single unit for purposes of estimation of capacity.
This unit may have a single operation or a number of them conducted on the input items.
In the pipeline of production, each work center’s contribution is vital as materials are
scheduled, routed and load to be sent to it. In many organizations, they are even
considered as cost centers. Location just means relative positions of different centers so
as to minimize the movement of materials, meet technological sequences, to reduce
congestion, maximize throughput, improve part tracking ability and avoid repetitive
movements. In addition another consideration is to provide for expansion of production.
Each work centre receives information along with material that enters it. The material
also leaves the work center with information. The route sheet contains information about
the material, process, quantities, inspection procedures, etc. The drawings or instructions
tell the condition of the material at entry and the required condition at exit. In this sense
every operation consists of material transformation occurring on the basis of information.
Activities conducted are on the basis of information that flows with material. Different
locations have to accommodate the constraints of operations. Their positions on evaluated
on the basis of deriving maximum benefit of the information that is available. Basically
each location is determined on the basis of ‘ from and to’. Where does it receive material
from and to which center the material goes. Some centers have to close as a matter of
necessity, some need not be and some need to be as far away as possible.

This aspect has been given a rating scale in terms of alphabets as under

a – Absolutely necessary to be close

e – Essential to be close

i – Important that they are close

o – Ordinary closeness

u – Unimportant that they are close or not

x – Not desirable that the centers are close.

It can be seen that this is only a guide for location of the work centers as there will
many competing factors that have to be accommodated.
2. State the important considerations for locating an automobile plant? Collect information
on layout planning of an automobile plant from various sources and furnish the same.

Machinery Layout:-

The processes involved in getting things done have to be detailed out in terms of
materials required, the sequence of the various activities of the process and their
movements from one location to another. The equipments required, their capabilities and
the personnel required to man them have to be determined and provided for. Quantities
that need to be moved, balancing the loads to meet the production requirements will have
to meet the plans that have been formulated. The essence of planning is the determination
of activates that need to be performed at a future date to meet demands that have been
forecast based on market surveys and forecasting. Different types of layouts are in vogue
depending upon the product, the process and the type of production. Another main
consideration is the material handling that is required for the raw materials, goods in
process and the finished goods. We will consider them in detail.

Product Layout:

These are also called production lines or assembly lines. They are designed and laid out
in such a way that only a few products are capable of being manufactured or assembled.
Materials flow through the various facilities. These use special machines to perform
specific operations to produce only one product at one time. So companies set different
set of machines for different machines. Workers perform a narrow range of activities to
complete the operations on the product as it moves in a flow line. The operation times,
the sequence of movements, routing procedures are highly standardized to meet
production requirements which are synchronized with many such products to complete
finished goods to meet demands. The skill required of the workers is low. Supervision is
minimal. Training needs are small. The main concern is to keep a check on the processes
so that quality is assured. Since the quantities that get manufactured will be continuous,
corrective measures have to be implemented immediately to avoid rejections. Another
problem is behavioral in that the workers tend to be bored and lose concentration as jobs
are repetitive and may affect productivity and quality.
The operations 1 to 5 happen in a sequence and testing of sub assembly, to which area
some components –whether bought-out items or made elsewhere in the plant arrive for
assembly.
3. Who are the players in a project management? What are the various roles and
responsibilities of the players in a project management?

Project Management Players, their Roles and Responsibilities

The Players

Individuals and organizations

• That are actively involved in the project

• Whose interests may be affected (positively or negatively) by the outcome
(success or failure) of the project
• Exert influence over the project and its results
• Players are also called “stakeholders” of the project
• Project manager- the individual responsible for managing the project
• Customer- the individual or organization that will use the product- the end result
of the project.
• Performing organization- the enterprise whose employees are most directly
involved in doing the work of the project.
• Sponsor-the individual or group within or external to the performing organization
that funds the project.

Roles and Responsibilities

• There are number of projects which an organization works on. It is not possible
for one individual to manage all the projects. There is a team of managers who
manage the projects.
• There may be different teams working on different projects.
• An experienced project manager and his team may manage more than one project
at a time.
• The project team is responsible for ensuring that the project upon completion shall
deliver the gain in the business for which it is intended for.
• The project team has to properly coordinate with each other working on different
aspects of the project.
• The team members are responsible for the completion of the project as per the
plans of the project.
4. What are the various steps in project monitoring and controlling a project?

Project Monitoring and Control

Any project aimed at delivering a product or a service has to go through phases in a

planned manner in order to meet the requirements. It is possible to work according to the
project plan only by careful monitoring of the project progress. It requires establishing
control factors to keep the project on the track of progress. The results of any stage in a
project, depends on the inputs to that stage. It is therefore necessary to control all the
inputs and the corresponding outputs from a stage. A project manager may use certain
standard tools to keep the project on track. The project manager and the team members
should be fully aware of the techniques and methods to rectify the factors influencing
delay of the project and its product.The various steps involved in monitoring and
controlling a project from start to end are as follows –

Preliminary work – The team members understand the project plans, project stage
schedule, progress controls, tracking schedules, summary of the stage cost and related
worksheets. The entire member has to understand the tolerances in any change and
maintain a change control log. They must realize the need and importance of quality for
which they have to follow strictly a quality review schedule and frequently discuss on the
quality agendas. They must understand the stage status reports, stage end reports, stage
end approval reports.

Project Progress – The members must keep a track of the project progress and
communicate the same to other related members of the project. The project manager
ensures that these changes are made smoothly and organizes review meeting with the
project management group.

Stage Control – The manager must establish a project check point cycle. For this
suitable stage version control procedures may be followed. The details are to be
documented stage wise. Project files have to be frequently updated with suitable version
control number and revision status should be maintained for each change. Team members
are identified who will exercise controls at various points of the project.

Resources – Plan the resources required for various stage of the project. Brief both the
project team and the key resources about the objectives of every stage, planned activities,
products, organization, metrics and project controls.

Quality Control –This is very important in any project. Quality control is possible if the
project members follow –

• Schedule Quality Review– It is recommended that quality review be scheduled at

the beginning of the stage and also ending of every stage.

• Agenda for quality review – create and distribute a quality review agenda
specifying the objective, products, logistics, roles, responsibilities and time frame.
 • Conduct quality review – the quality review is to be conducted in a structured and
formal manner. Quality review should focus on product development and its
quality factors. Focus on whether it meets the prescribed quality standard.

• Follow up – QR complete product status revised from ‘In progresses to ‘QR

Complete’. Follow up the actions planned in strict manner which ensures
conformity to the standards.

• Review quality control procedures – verify that the quality objectives for each
product are appropriate and that all participants are satisfied both with the process
and its outcome.

Progress Control

• Monitor Performance: The team members log in details of actual start date,
actual finish date, actual hours worked per task, estimated hours to complete the
task, elapsed time in hours to compete the task, any miscellaneous costs incurred
during a stage. These inputs become the base to monitor the performance of the
project and its stages.

• Update Schedule-Update the schedule for actual start date for tasks started,
actual finish date for tasks finished, actual hours worked per task, latest estimated
work in hours to complete the task.

• Update costs - Update the stage cost summary worksheet with actual costs
incurred this period, estimated remaining costs. Miscellaneous costs will be
automatically updated from the scheduler, since they are calculated from actual
work.

• Re-plan stage schedule-Review the tracking Gantt and Cost workbook and
identify any deviation from the baseline. Establish why the deviation has
occurred. Refer back to the project control factors to help determine the
appropriate corrective action and adjust the schedule accordingly. Determine if
the stage has exceeded the progress, cost and quality tolerance levels agreed with
the project management team. Review status of open issues and determine any
further action required on these issues. Review the status of any outstanding
quality reviews Review any new change requests.
 • Conduct team status review- Conduct a status meeting with the project team.
Items for discussion are achievements this period planned activities that are
incomplete or overdue, activities for the next period, new issues identified this
period, issues closed this period, summary of results of quality reviews , summary
of schedule and cost status, suggested revisions to the plan.

• Create status report - The status report provides a record of current achievement
and immediate expectations of the project. The status has to be effectively
communicated to all interested parties.

• Create Flash report - summarize the accomplishments for the month, schedule
status, upcoming tasks for the month and any major issues. Distribute to the
project team and project management team

• Project Status Reports – As discussed earlier, the status report provides a record
of current achievements and immediate expectations of the project.

A weekly status report includes:

- Accomplishments during the period
- Items not completed during the period
- Proposed activities for the next period
- Any predicted slippage to the stage schedule, along with cause and corrective action.
- Any predicted cost overrun along with cause and corrective action.

Approvals – Project stage reviews and the decisions taken and actions planned need to
be approved by the top management. The goals of such review are to improve quality by
finding defects and to improve productivity by finding defects in a cost effective manner.
The group review process includes several stages like planning, preparation and overview
a group review meeting and rework recommendations and follow-up.
5. Explain the necessity and objectives of SCM?

Many experts consider supply chain management worldwide as the ultimate solution
towards efficient enterprise management. Many management failures have been
attributed to lack of a system to bind various sub-systems within a geographically wide
spread enterprise which true to modern trends, also includes an umbrella of customers,
suppliers and associates. Managers of tomorrow are therefore expected to raise
themselves above the level of perpetual crisis management to one of proactive, predictive
and performance-oriented management.

Need and objectives:

SCM is required by and Enterprise as a tool to enhance management effectiveness with
the following organizational objectives:

1. Reduction of inventory
2. Enhancement of participation level and empowerment level
3. Increase in functional effectiveness of existing systems like ERP, Accounting
Software and Documentation like Financial reports/ Statements/ ISO 9000
Documents etc.
4. Effective integration of multiple systems like ERP, communication systems,
documentation system and secure.
5. Design / R&D systems etc.
6. Better utilization of resources – men, material, equipment and money.
7. Optimization of money flow cycle within the organization as well as to and from
external agencies.
8. Enhancement of value of products, operations and services and consequently,
enhancement of profitability.
9. Enhancement of satisfaction level of customers and clients, supporting
institutions, statutory control agencies, suppliers and vendors, employees and
executives.
10. Enhancement of flexibility in the organization to help in easy implementation of
schemes involving modernization, expansion and diversification – even
divestments, mergers and acquisitions.
11. Enhancement of coverage and accuracy of management information systems.
6. What are the steps involved in SCM implementation?

Domain Applications:

SCM can be easily applied and integrated with –

a. ERP systems
b. Design systems like auto-CAD, Pro-E
c. R & D systems
d. ISO 9000 systems
e. Accounting and financial systems
f. Costing systems
g. Manufacturing systems

SCM implementation involves the following steps:

1. Study the strengths and weaknesses within the enterprise as well as of External
agencies involved.

2. Understand the organization objectives

3. Study the existing systems and identify the gaps and propose solutions to plug the
loopholes.

4. Evolve consensus and test fire individual solutions

5. Integrate solutions which are adjudged successful into the mainstream

6. Study overall impact after all proposals in a section are implemented , review
consensus

7. Finalize SCM document, circulate and implement