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ASSIGNMENT

DRIVE FALL 2013


PROGRAM BBA SEMESTER V
BBA 501 PRODUCTION AND OPERATIONS MANAGEMENT

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Q.No1 Discuss the functions of operations management.


ANSWER: As stated earlier, operations management deals with the activities pertaining to the production
of goods and services. As such, it is essential to study the functions that operations management performs.
Broadly, these activities can be categorized as follows:
Planning
Organizing
Controlling
Planning
There are certain functions that the production or operations management should perform. Operations
management begins with the discussions for conceiving the design and specifications for the product.
Operations management is involved throughout in the development and production cycles to a stage
where products are ready to be dispatched to the marketing and sales department to provide them to final
consumers.

Product design and development: This deals with the issues of converting market feedback on the
requirements pertaining to the type of product to be produced into specifications and drawings that help in
production.
Production process selection: This helps in evaluating different process options possible to produce the
type of product in terms of volume and variety and other factors to select the best-suited process.
Planning facility location: This deals with evaluation of different possible locations for production and
selecting the most suitable one that meets the organizational objectives of production in the required
quantities at the minimal costs.
Planning facility layout: This refers to studying various options in terms of plant and machinery layout
that enables the smooth flow of materials for smooth production.
Capacity planning: This deals with the issues pertaining to planning the capacity for the plant that
enables cost-competitive production event with certain degree of fluctuations in the required volumes.
Production planning: This helps effectively plan the production to meet the required quantities of
products within the scheduled time.

Organizing
Work study: Also known as time and motion study, it aims at improving the cycle time required for
producing a product.
Materials management: This aims at establishing sources for the required materials in terms of input
materials or consumables at the right time so that no delays in production occur.
Purchasing management: This is responsible for making the input material available in time, at the
right price and in the right quantity and quality.
Controlling:

Stores management: This refers to managing the stores for input materials, consumables and finished
stocks while avoiding overstocking of materials. Stores are also accountable for recording the stock and
consumption of these materials.
Value analysis: The process of obtaining the best possible combination between cost and required
functional specifications of a product by assigning a value to every operation of the production process
and identifying the function of the product. This helps in enhancing the value of the product.
Quality control: This is responsible for monitoring the quality requirements of the product so that no
defective parts are passed on to the consumers. For this, systems associated with the processes are
assessed by the management of an organization in order to improve them so that no defective parts are
produced.
Maintenance management: This is responsible for ensuring the continuous production in terms of
machinery and other required infrastructure so that no breakdowns occur to hamper the production flow.
It also includes proactive preventive maintenance to maintain the health and performance of the machines
in peak condition.
Inventory management: This is responsible for maintaining minimum inventory of all critical
materials and ensuring that there is no overstocking or stock-out.

2 Discuss the any five main functions of production planning and control.
ANSWER:
The main activities encompassing Production Planning and Control (PPC) are as follows:
(i) Order preparation: The work of PPC begins once an order is received from the sales department.
This order is then converted into a work order or shop order and sent to various departments
concerned, action planning.

(ii) Materials planning: On receiving the order PPC decides the raw materials required for
manufacturing, considering the capacity of various production shops, the bill of materials, inventory on
hand, and lead time for procurement.
(iii) Routing (or process planning): Routing means determination of the sequence of operations for
manufacturing a product or service. This path is determined in advance and forms the basis for most of
the scheduling and dispatching functions. According to Kimball and Kimball, Routing is the selection of
path or route over which each piece is to travel in being transformed from raw material into finished
product. Routing includes the following activities:
Deciding the volume of production
Selecting the men, machines and materials to be used in its production
Deciding the type, number, and sequence of production operations
Deciding the place where production is to be carried out
When routing or process planning is being done, a route sheet is prepared.
(iv)Estimating: This involves establishing the operation time for every process; this also leads to fixation
of performance standards for both men and machines.
(v) Scheduling: According to Spriegal and Lanburgh, Scheduling involves establishing the amount of
work to be done and the time when each element of work will start or order of the work. Thus,
scheduling includes the following activities:
Determination of quality and rate of output of the plant or department
Allocation of time for each operation The scheduling function begins when the following information is
furnished:
Date of delivery specified by the customers order
Time required for assembly and subassembly process
Time to be taken in the production of component parts
Time required to make purchases
Time required for moving the materials from one station to the other, inspection, etc.
Priority of orders
Necessary provisions for unforeseen contingencies such as power breakdown, strike and lockout, absence
of workers or rush of orders of extreme importance, etc., are usually made when the schedule is prepared.

(vi) Loading: This involves allocating jobs to machines as per the capacity of machines and priority of
jobs to be done, so that the machinery is utilized to the maximum possible extent. It includes the
following activities: Preparation of machine loads
Fixing of actual dates of various operations/sequence of operations to be performed on the jobs
Coordination with the sales department to confirm delivery dates and keeping them informed about the
status of the schedules
(vii) Dispatching: Dispatching means preparation and distribution of work orders and manufacturing
instructions to the concerned departments in accordance with the details worked out under routing and
scheduling functions. The work order received by the various departments is an authority for them to start
the work according to that schedule.
(viii) Progressing: This involves controlling the process of production, collecting data from various
manufacturing shops, recording the progress of work and comparing progress against the plan.
(ix) Expediting and follow-up: Follow-up means to see whether the work is being carried out according
to the plan and orders and instructions issued. It ascertains that the materials, tools and equipment are
supplied at the job at the right time and to the right person or job. Follow-up is the means by which the
progress and execution of the plan is evaluated from time to time and divergence from the plan is noted.
The reasons for such divergence are then found out and efforts are made to eliminate them from the plan.
(x) Inspection: Inspection means comparing the actual with the written or expected specifications and
assessing whether they have been met. Inspection can be process inspection or product inspection, in
which the process or the product is inspected respectively.
(xi) Cost control: Production planning and control is responsible for cost control and cost reduction by
reducing or eliminating wastes, value analysis, etc.
(xii) Miscellaneous functions: There are certain miscellaneous functions such as building cost estimates
for products, fixing standards with the help of industrial engineering department, capacity planning,
making or buying decisions, making specifications of raw materials, process improvement, etc., have to
be performed.

3What are the various types and functions of stores?


ANSWER:
Raw materials and finished goods are among the most essential parts of any production process. So, raw
materials should be available all the time and should be of the best quality in order to produce a goodquality product. The following functions ensure that goods in the stores are properly organized:
Requesting the purchasing department for adequate quantity of materials so that the deliveries can be
made in the appropriate time.
Controlling on quantity of materials received from excess use
Protecting the materials from conditions such as bad weather, damage and stealing
Issuing materials only to authorized people or requisitions
Maintaining proper records of receipts, issues and balances
Maintaining the exact records of expenditures and dispatches
Maintaining proper records of stores so that they can be provided at right time
Keeping a record of inventory investment
Types of Stores
The requirement of stores depends on the nature of the organization and the work performed in the
organization. There are various types of stores available such as:
Receiving Main
Warehouse Special
(i) Receiving store
They perform activities that control the quality and quantity of purchased materials before it is accepted
for production. This type of stores is also called goods inward store. It is further divided into the
following types:
Inward: It is used to store the incoming materials until they are accepted and taken into stock.
Quarantine: It is used to store the stock materials temporarily that are under dispute or need certification
from the supplier.
Rejection: This is used to store materials that are defective and rejected by a company until the materials
are sent back to the respective suppliers.

(ii) Main store


Main stores perform activities that are concerned with storage and issuance of accepted materials and deal
with the maintenance of records of materials. It can be maintained either in the company as a godown or a
warehouse located near the company from where goods can be easily transferred. It is further divided into
the following types: However all these type of stores depend on the nature and size of the organization
and industry.

4What are the various types of Projects , list their advantages and Disadvantages?
ANSWER:
A project requires the coordinated functioning of several units of an organization such as, finance, HRD,
information system, etc. For every project, a separate team is formed consisting of project manager and a
project leader.
(i) On the basis of composition
Projects can be classified on the basis of composition mainly into three types:
Pure project
Functional project
Matrix project
(i) Pure project is one in which a self-contained team works full-time on the project. A team typically
consists of a project leader and team members that report to him and only him.
Advantages
The project manager has complete authority over the project.
Team members need not worry about multi reporting with a functional area manager and they have a
single reporting.
Short communication lines lead to quick decisions.
Pride, motivation, and commitment of the team are high.

Disadvantages
Resource duplication occurs due to non-sharing of equipment and people across projects.
Ignorance of organizational goals and policies happens due to removal of, team members both
physically and psychologically from the head office.
Project close-up is mostly delayed due to the anxiety of team members having no functional home area
and life-after-project.

(ii) Functional project


At the other end is the functional project. Several projects could be running simultaneously for example,
several research projects in the R&D department of an organization (Figure 10.1).
Advantages
A team member can work on multiple projects.
Even if individuals leave the project or firm, technical expertise is maintained within that functional area
which is a home after the project completion.
There is synergy within the department since the team members keep moving from one project to
another.
Disadvantages
Project aspects not directly related to the functional area are short-charged.
Team members are less motivated.
Client needs are not treated as primary and are responded to slowly.
(iii) Matrix project
Functional and pure project structures together form a matrix project and utilize personnel from separate
functional areas. Functional managers are responsible for delegating people and technologies used for the
project
Advantages
Inter-departmental communication is better.
Minimizes resource duplication.
Functional home area is defined for the team members on project completion, so they need not worry
about life-after-project.
Parent organization policies are followed which increase project support.
Disadvantages
There are two bosses. Often the functional manager will be listened to before the project manager.

It is doomed to failure unless the project manager has strong negotiating skills.

5 Describe the activities involved in Lubrication Maintenance.


ANSWER:
Regular and proper lubrication of machines helps in reducing the rate of their wear and tear, maintains
the temperature of the machines and decreases the power consumption by the machines. It also protects a
machine and its parts from corrosion and moisture. Irregular lubrication and failure in lubricating the
machines has always been a major reason behind breakdown of the machines.
Some of the activities necessary to ensure good lubrication are:
(a) Identifying the right part of machine for lubrication: Usually, all moving parts need to be
lubricated. This information can also be obtained from the instruction manuals provided by the
manufacturer. As it requires studying the manual and then performing the activity, it should be done by
trained professionals. Lubrication surveys are also conducted. The lubrication layout not only lists the
parts to be lubricated but also lists the type of lubricants to be used, process of lubrication, frequency and
quantity of lubrication.
(b) Cleaning of oil tanks and hydraulic systems: The oil tanks need to be cleaned at regular intervals to
ensure that the oil used for lubricating the machines is free from dust and dirt. In this process, the polluted
oil is taken out from the gearboxes and worm-gear tanks; the tank is cleaned and then refilled with good
quality oil. Plunger pumps are apparatus used for pulling oil from the oil tank. They should also be
checked and cleaned once a year.
(c) Bearings lubrication: Bearings should be lubricated with grease once a year. This helps in proper
functioning and maintenance of the bearings.
(d) Lubricating oil pipes: Due to frequent use of the oil gun at the time of lubrication or improper
handling, the lubricating pipes get damaged. They should be replaced with new ones to ensure proper
lubrication of the machine.
(e) Replacing wicks: Wicks lubricate the machines through capillary action. In order to keep wick
lubricators functional, they should be replaced at regular intervals.

(f) Scheduling the frequency of lubrication: The frequency of lubricating a machine or its parts depends
upon their functions and machine requirements. While some moving parts such as tool slides and guide
ways are oiled two to three times a day, some other parts are lubricated once a month or once in six
months.
(g) Deciding the amount of lubrication required: To ensure proper lubrication, care should be taken
that the lubricating agent or oil is used in oil will make a machine abrasive and damage the moving parts.
Over lubrication is also bad since it can cause overflowing especially in oil tanks, etc.
(h) Selecting the right lubricant: The right quality of lubricant is essential for good lubrication and the
long life of a machine. The right quality of lubricant is often mentioned in the instruction manual
provided by the manufacturer.

6 Explain Costs of Quality and its various types.


ANSWER: Each time work needs be redone, for example, re-manufacturing a defective item, the cost of
quality increases. Many such costs are overlooked or not recognized because traditional accounting
systems are not designed to identify them.
The following are the major costs of quality.
(a) Prevention costs
Costs that are incurred in preventing the manufacture of non-conforming products and stopping any such
product from reaching the customers are called preventive costs. Preventive costs include:
Process planning costs:
Include the development costs for establishing procedures, manufacturing controls and setting up
instructions for testing and inspection, reliability studies, new equipment design, etc.
Training costs: are

associated with developing


and operating formal training
programmes or attending
seminars on quality assurance.

General management costs:


Include those for clerical staff, supplies, and communications related to quality efforts.

(b) Appraisal costs


They are incurred while maintaining quality levels through measurement and analysis of data in order to
detect and correct problems. Testing and inspection costs are incurred while testing and inspecting
incoming materials, work in process and finished goods and include salaries for employees, cost of
equipment, cost of maintaining instruments, etc.
(c) Internal failure costs
It results from unsatisfactory quality that is found prior to the delivery of a product to the customer. It
includes scrap and rework costs, costs of corrective action arising from time spent determining the causes
of failure and correcting production problems.
(d) External failure costs
It occurs after poor quality products reach the customer. Costs of investigating complaints, product recall
costs, warranty claim costs, which include the cost of repair or replacement of products during warranty
periods, and product liability costs of legal action and settlements are a major source of external failure
costs.

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