ASSIGNMENTS - MBA - II SEMESTER

MB0028
SET 1

PRODUCTION AND OPERATIONS MANAGEMENT

Q.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.

The main purpose of automation system is to reduce labour power and time involved in
the production thus saving money and reducing cost of production. Let’s take some
example to see the evolution of this system. The goods required by craftsman to produce
the need of society in small quantities were actually produced by their own hands with
simple tools. These people who actually know the demand of the society sometimes
depend on the apprentices for meeting the production requirement.

The parts and components used to make these machines had to be replaced when they
wore making parts so that interchangeability was achieved made setting up standards
and specifications important for meeting. The craftsmen gave way to engineers, workers,
superiors and inspectors. Division of labour became necessary to achieve efficiencies and
the jabs that became specialized. Competition has necessitated improved quality,
reduced sates and better services to the customer.

Automation systems cost huge sums of money and therefore a deep analysis of the
various factors has to be done. For services, automation usually means labour saving
devices in education, long distance learning technology helps in supplementing class
room instruction. The facilitating goods that are used are web site and videos.

Automation in the banking sector has resulted in ATMs which same the banks a huge
amount customer satisfaction. Automation is ideas when the service provided or the
product manufactured is highly standardized. Some extent of automation can be
designed even with customization i. e. product or service a meant to produce or deliver
low volume specific to a requirement. The advantage of automation is it has low
variability and will be more consistent on a repetitive basis.

The machines have sensing and control devices that enable them to operate automobile.
The simplest of them called machine attachments replace human effort. They guide,
locate, move and achieve revise position by means of came, optical sensing. Load
sensing mechanisms and activate the controls to remove human intention. Robots are
higher in the order of automation as they perform a variety of tasks. They are designed
to move movements according to programmers written into the computer that inside
them.

With the help of automation, inspection of component can be done 100% ensures
highest quality identification and movement of materials are helped by bar codes which
are read and fed into the system for monitoring quantity, location, movement etc. They
help the automated systems to start information and provide information for effecting

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any changes necessary. To make effective use of automated machines, we need to have
the movement of materials from and to different time as stores, automated, Automated
storage and Retrieval systems- ASRS- receive orders for materials from anywhere in the
production area, collect materials in the works times. Computers and information
systems are used for placing orders for matters, give commands adjust inventory
records which show the location and quantity of materials needed.

Automated guided vehicle systems- AGVS – are pallet trucks and unit load carriers follow
embedded guide wires or paint strips to destinations as programmed. In an automobile
showroom we can see all the work were done automatically with latest machine.

Q.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.

Ans:- To locate an automobile company or plant many thing should be consider. For an
automobile plant automated flaw lines, automated assembly lines, flexible manufacturing
systems, global transition rapid prototyping. Building manufacturing flexibility things are
necessity.

About the automated flow lines we can say it is a machine which is linked by a transfer
system which moves the parts by using handling machines which are also automated,
we have an automated flow line. Human intervention is 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.

In fixed automation or hard automation, where one component is manufactured using

services operations and machines it is possible to achieve this condition. We assume that
product life cycles are sufficiently stable to interest heavily on the automate flow lines to
achieve reduces cast per unit. Product layouts ate designed so that the assembly tasks
are performed in the sequence they are designed at each station continuously. The
finished item came out at the end of the line.

In automated assembly lines the moving pallets move the materials from station to
station and moving arms pick up parts, place them at specified place and system them
by perusing, riveting, & crewing or even welding. Sensors will keep track of these
activities and move the assembled to the next stage. The machines are arranged in a
sequence to perform operations according to the technical requirements. The tools are
loaded, movements are effected, speeds controlled automatically without the need for
worker’s involvement.

The flexibility leads to better utilization of the equipments. It reduces the numbers of
systems and rids in reduction of investment as well as a space needed to install them.
One of the major cancers of modern manufacturing systems is to be able to respond to
market Demands which have uncertainties. Prototyping is a process by which a new
product is developed in small number so as to determine the suitability of the materials,
study the various methods of manufactured, type of machinery required and develop
techniques to overcome problems that may be encountered when full scale manufacture
is undertaken.

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Prototypes do meet the specification of the component that enters a product and
performance can be measured on these. It helps in con be reforming the design and any
shortcomings can be rectified at low cost.

Flexibility has three dimensions in the manufacturing field. They are variety, volume and
time. Their demands will have to be satisfied. In that sense they become constraints
which restrict the maximization of productivity. Every business will have to meet the
market demands of its various products in variety volumes of different time. Flexibility is
also needed to be able to develop new products or make improvements in the products
fast enough to cater to shifting marker needs.

Manufacturing systems have flexibility built into them to enable organization meet global
demand. You have understood how the latest trends in manufacturing when
implemented help firms to stay a head in business.

Q.3:- Who are the players in a project management? What are the various
roles and responsibilities of the players in a project management?

Ans:- At first we will discuss about project management then we will discuss about
players in project management. Project management is the practice of controlling the
use of resources, such as cost, time manpower, hardware and software involved in a
project. That starts with a problem statement and end with delivery of a complete
product.

Here we will see the participants of project management:

In the project management players individual and organizations both are involved-
That is actively involved in the project whose interests may be affected by the outcome
of the project.

Exert influence over the project and its results players or also called “stake holders’’ 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 mast directly involved in
doing the work of the project. Sponsors- the individual or group within or external to the
performing organization that funds the project. Now, we will define the role and
responsibilities of project management. Here are some 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 different projects.

An experienced project manager and this 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 co-ordinate with each other working on different aspects of the project. The

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team members are responsible for the completion of the project as per the plans of the
project.

Characteristics of project mindset: - some of the characteristics of project mindset are

the following - Time - it is possible to improve the pace of the project by reducing the
time frame of the process. The mindset is normally to work in a comfort made by
stretching the time limits.

Responsiveness – it refers to quickness of response of an individual. The vibrancy and

livens of an individual or an organization are proportional to its capability of evolving
process and structure for superior responsiveness time constant.

Information sharing – information is owner information is the matter key to today’s

business. Information sharing is the characteristic of the project mindset today.

Process – project mindset lays emphasis on flexible process. The major difference in a
process and a system is in its capabilities of providing flexibility to different situational
encounters. Flexible process possesses greater capabilities of adaptability.

Structured planning – structure planning based a project management life cycle enables
one to easily and conveniently work according to the plan.

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Q.4:- What are the various steps in project monitoring and controlling a
project?

Ans:- Monitoring and Controlling Monitoring and Controlling consists of those

processes performed to observe project execution so that potential problems can
be identified in a timely manner and corrective action can be taken, when
necessary, to control the execution of the project. The key benefit is that project
performance is observed and measured regularly to identify variances from the
project management plan.

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Monitoring and Controlling Process Group Processes

1. Monitoring and Controlling includes:

(a) Measuring the ongoing project activities (where we are);

(b) Monitoring the project variables (cost, effort, scope, etc.) against the
project (c) management plan and the project performance baseline (where we
should be);
(d) Identify corrective actions to address issues and risks properly (How can
we get on track again);
(e) Influencing the factors that could circumvent integrated change control so
only approved changes are implemented

In multi-phase projects, the Monitoring and Controlling process also provides feedback
between project phases, in order to implement corrective or preventive actions to bring
the project into compliance with the project management plan. Project Maintenance is an
ongoing process, and it includes:

(a) Continuing support of end users

(b) Correction of errors
(c) Updates of the software over time

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Monitoring and Controlling cycle

In this stage, auditors should pay attention to how effectively and quickly user problems
are resolved.

Over the course of any construction project, the work scope changes. Change is a
normal and expected part of the construction process. Changes can be the result of
necessary design modifications, differing site conditions, material availability, contractor-
requested changes, value engineering and impacts from third parties, to name a few.
Beyond executing the change in the field, the change normally needs to be documented
to show what was actually constructed. This is referred to as Change Management.
Hence, the owner usually requires a final record to show all changes or, more
specifically, any change that modifies the tangible portions of the finished work. The
record is made on the contract documents – usually, but not necessarily limited to, the
design drawings. The end product of this effort is what the industry terms as-built
drawings, or more simply, “as built.” The requirement for providing them is a norm in
construction contracts.

When changes are introduced to the project, the viability of the project has to be
assessed again. It is important not to lose sight of the initial goals and targets of the
projects. When the changes accumulate, the forecasted result may not justify the
proposed investment.

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Q.5:- Explain the necessity and objectives of SCM.

Ans:- SCM is the abbreviation of Supply Chain Management. It is considered by

many express worldwide as the ultimate solution towards efficient enterprise
management. Now, we explain the necessity and objectives of SCM:-

SCM is required by and enterprise as a tow to enhance management effectiveness with a

following organizational objective:

1. Reduction of inventory

2. Enactment in functional effectiveness of existing systems like ERP,

Accounting. Software and Documentation like financial reports statements ISO
9000 Documents etc.

3. Enhancement of participation level and empowerment level

4. Effective integration of multiple systems like ERP, communication systems,

documentation system and secure, Design R&D systems etc.

5. Better utilization of resources- men, material, equipment and money.

6. Optimization of money flow cycle within the organization as well as to and

from external agencies.

7. Enhancement of value of products, operations and services and

consequently, enhancements of profitability.

8. Enhancement of satisfaction level of customer and clients, supporting

institutions, statutory control agencies, supporting institutions, statutory control
agencies, suppliers and vendors, employees and executives.

9. Enhancement of flexibility in the organization to help in easy

implementation of schemes involving modernization, expansion and divestment,
merges and acquisitions.

10. Enhancement of coverage and accuracy of management information

systems.
With the objectives of SCM its implementation are required. Implementation is in
the form of various functional blocks of an organization interpenetrated through
which a smooth flow of the product development is possible.

A relatively new SCM option involves web based software with a browser interface.
Several electronic marketplaces for buying and selling goods and materials.

Q.6:- What are the steps involved in SCM implementation?

Ans:- There is many steps which involved in SCM implementation are- Business
Process, sales and marketing. Logistics, costing, demand planning, trade- off analysis,

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environmental requirement, process stability, integrated supply, supplier management,
product design, suppiers, customers, material specifications, etc.

Some important aspect of SCM-

The level of competition existing in the market and the impact of competitive forces on
the product development.

Designing and working on a strategic logic for better growth through value invention.
Working out new value curve in the product development along with necessary break
point.

Using it to analyses markets and the economies in product design. Tine, customer,
quality of product and the concept of survival of fittest.

Steps of SCM principals:

Group customer by need: Effective SCM groups, customer by distinct service need that
particular segment.

Customize the logistics networks: In designing their logistics network, companies need
to focus on the service requirement and profit potential of the customer segments
identified.

Listen to signals of market demand and plan accordingly- sales and operations planners
must monitor the entire supply chain to detect early warning signals of changing
customer demand and needs.

Differentiate the product closer to the customer-companies today no longer can afford to
stock pile inventory to compensate for possible forecasting errors, instead, they need to
postpone product differentiation in the manufacturing. Process closer to actual customer
demand.

Strategically manage the source of supply-by working closely with their key suppliers to
reduce the overall casts of owning materials and services; SCM maximizes profit margins
both for themselves, and their supplies.

Develop a supply chain wide technology strategy- as one of the cornerstones of

successful SCM information technology must be able to support multiple levels of
decision making.

Adopt channel spanning performance measures- Excellent supply performance

measurement systems do more than just monitor internal functions. They apply
performance criteria that embrace bathe service and financial metrics, including as such
as each accounts true profitability.

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 ASSIGNMENTS - MBA - II SEMESTER

MB0028 (3 CREDITS)

SET 2

PRODUCTION AND OPERATIONS MANAGEMENT

Q.1:- Explain how material flow information helps in work centre decision.
Consider the example of a shopping center to illustrate your answer.

Ans:- The decision which involves during uses of material flow information has below:-

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 loads to be sent to
it.

In most organization, they are even considered as cash centers. Location trust means
relative position 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 center receives information along with material that enter it the material also
leaves the word center with information. The route sheet contains information about the
material, process, quantities, and inspection procedures. Etc. the drawings or
instructions tell the condition of the malarial of 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 the basis of darning
maximums benefit of the information that is available. Basically, each location is
determined on the basis of from and to: where does it receive material goes. Some
centers have to close as a matter of necessity, some need not to 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.

(b) Essential to be close.
(c) Ordinary closeness.
(d) Ordinary closeness.
(e) Unimportant that they are close or not.
(f) Not desirable that the centers are close.

It can be seen that this is only a guide for Indian location as the work centers as there

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will many competing factors that have to be accommodated.

Q.2:- What are the reasons for failure of a project? Give suitable examples.

Ans:- Before knowing the reasons of failure we have to know about project. Project is a
set of activities which are networked in order and aimed towards achieving goal of a
project.

1. The reasons are project failure:

(a) Incidence of Project failure.

(b) Projects being initiated of random at all levels.
(c) Project objective not in line with business objective.
(d) Project management not observed.
(e) Project manager with no prior experience in the related project.
(f) Non- dedicated team.
(g) Lack of complete support from clients.

2. Factors contributing to project success not emphasized:

(a) Project objective in alignment with business objective

(b) Working within the framework of project management methodology
(c) Effective scoping planning, estimation, execution, controls and reviews,
project bottlenecks
(d) Communication and managing expectations effectively with clients, team
merits and stake holders
(e) Prior expectance of PM in a similar project

3. Overview of information and communication Technologies (ICT) project:

(a) Involve information and communication technologies such as the word

wide web, e-mail, fiber-optics satellites
(b) Enable societies to produce, access, adapt and apply information in
greater amount, more rapidly and at reduce casts
(c) Offer enormous opportunities for enhancing business and economic
viability
Common problems encountered during projects
(d) No prioritization of project activity from an organizational position
(e) One or more of the stages in the project mishandled
(f) Less qualified non-dedicated manpower
(g) Absence of smooth flow of communication between the involved parties

These basic reasons lead a project to failures. In the project failures business
management and project management is directly involved. From the management point
of view it is basic things to care above topics to success of a project. Project is the core
business of a company. In the MBA assignment its role has been defined from the
management prospective.

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Q.3:- Explain the various phases in project management life cycle?

Ans:- This is the initial phase of any project. In this phase information is collected from
the customer pertaining to the project and the requirements are analyzed. The entire
project has to be planned and it should be done in a strategic manner. The project
manager conducts the analysis of the problem and submits a detailed report to the top
project justification, details on what the problem is a method of solving the problem, list
of the objectives to be achieved, project budget and the success rate of completing the
project. The report must also contain information and the project feasibility, and the
risks involved in the project.

Project management life cycle is the integrated part of management. It is attach with
project responsibility or failure of a project.

1. The important tasks of this phase are as follows:

(a) Specification Requirements Analysis (SRA): It has to be conducted to

determine the essential requirements of a project in order to achieve the target.

(b) Feasibility study: To analyze whether the project is technically,

economically and practically feasible to be undertaken.

(c) Trade off analysis: To understand and examine the various alternatives
which could be considered.

(d) Estimation: To estimate the project cost, effort requires for the project
and functionality of various process in the project.

(e) System design: Choose a general design that can fusil the requirements.

(f) Project evolution: Evaluate the project in terms of expected profit, cost
and risks involved marketing phase.

(g) A project proposal is prepared by a group of people including the project

manager. This proposal has to contain the strategies adopted to market the
product to the customers.

(h) Design phase: This phase involves the study of inputs and outputs of the
various project stages.

(j) Execution phase: In this phase the project manager and the teams
members work on the project objectives as per the plan. At every stage during
the execution reports are prepared.

(k) Control – Inspecting, Testing and Delivery phase during this phase. The
project team works under the guidance of the project manager. The project
manager has to ensure that the team working under his, implements the project
designs accurately, the project manager has to ensure ways of managing the
customer, perform quality control work.

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 (l) Closure and post completion analysis phase upon satisfactory completion
and delivery of the intended product or service the staff performance has to be
evaluated. Document the lessons from the project. Prepare the reports on project
feedback analysis followed by the project execution report.

2. The phase which involve in the above are:

(a) The preparation stage involves the preparation and approval of project
outline, project plan and project budget.

(b) The next stage involves selecting and briefing the project team about the
proposals followed by discussions on the roles and responsibility of the project
member and the organization.

3. The project management life cycle:

A Life cycle of a project consists of the following:

Understanding the scope of the project Establishing objectives of the project Formulating
and planning various activities Project execution and Monitor and control the project
resources.

Q.4:- What are the seven principles of SCM?

Ans:- Seven principles of SCM are:

Group customer by needs- Effective SCM groups, customer by distinct service needs,
regardless of industry and then tailors services to this particular segment.

Customize the logistic network- In designing their logistics network; companies need to
focus on the service requirement and profit of the customer segments identified. Listen
to signals of market demand and plan accordingly- Sales and operations planners must
monitor the entire supply chain to detect early warning signals of changing customer
demand and needs. This demand driven approach leads to more consistent forecast and
optimal resource allocation.

Differentiate the product closer to the customer- companies today no longer can afford
to stock pile inventory to compensate for possible forecasting errors. Instead, they need
to postpone product differentiation in the manufacturing process closer to actual
consumer demand. This strategy allows the supply chain to respond quickly and cost
effectively to change in customer needs.

Strategically manage the sources of supply- by working closely with their key suppliers
to reduce the overall costs of owning materials and services; SCM maximizes profit
margins both for themselves and their suppliers. Develop a supply chain wide technology
strategy- as one of the cornerstones of successful SCM information technology must be
able to support multiple levels of decision making. It also should afford a clear view and
ability to measure the flow of products, services and information.

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Adopt channel spanning chain performance measures- Excellent supply chain
performance measurement system do more than just monitor internal functions. They
apply performance criteria to every link in the supply chain-criteria that embrace both
service and financial metrics.

Q.5:- Explain Bullwhip effect and how it could be prevented.

Ans:- An unmanaged supply chain is not inherently stable. Demand variability increases
as one moves up the supply chain away from the retail customer, and small changes in
consumer demand can result in large variations in orders placed upstream. Eventually,
the network can oscillate in very large swings as each organization in the supply chain
seeks to solve the problem from its own perspective. This phenomenon is known as the
bullwhip effect and has been observed across most industries, resulting in increased
cost and poorer service.

1. Causes of the Bullwhip Effect: Sources of variability can be demand

variability, quality problems, strikes, plant fires, etc. Variability coupled with
time delays in the transmission of information up the supply chain and time
delays in manufacturing and shipping goods down the supply chain create the
bullwhip effect. The following all can contribute to the bullwhip effect:

• Overreaction to backlogs
• Neglecting to order in an attempt to reduce inventory
• No communication up and down the supply chain
• No coordination up and down the supply chain
• Delay times for information and material flow
• Order batching - larger orders result in more variance. Order batching occurs in
an effort to reduce ordering costs, to take advantage of transportation economics
such as full truck load economies, and to benefit from sales incentives.
Promotions often result in forward buying to benefit more from the lower prices.
• Shortage gaming: customers order more than they need during a period of short
supply, hoping that the partial shipments they receive will be sufficient.
• Demand forecast inaccuracies: everybody in the chain adds a certain percentage
to the demand estimates. The result is no visibility of true customer demand.
• Free return policies

2. Countermeasures to the Bullwhip Effect: While the bullwhip effect is a

common problem, many leading companies have been able to apply
countermeasures to overcome it. Here are some of these solutions:

• Countermeasures to order batching - High order cost is countered with

Electronic Data Interchange (EDI) and computer aided ordering (CAO). Full truck
load economics are countered with third-party logistics and assorted truckloads.
Random or correlated ordering is countered with regular delivery appointments.
More frequent ordering results in smaller orders and smaller variance. However,
when an entity orders more often, it will not see a reduction in its own demand
variance - the reduction is seen by the upstream entities. Also, when an entity

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 orders more frequently, its required safety stock may increase or decrease; see
the standard loss function in the Inventory Management section.
• Countermeasures to shortage gaming - Proportional rationing schemes are
countered by allocating units based on past sales. Ignorance of supply chain
conditions can be addressed by sharing capacity and supply information.
Unrestricted ordering capability can be addressed by reducing the order size
flexibility and implementing capacity reservations. For example, one can reserve
a fixed quantity for a given year and specify the quantity of each order shortly
before it is needed, as long as the sum of the order quantities equals to the
reserved quantity.
• Countermeasures to fluctuating prices - High-low pricing can be replaced
with every day low prices (EDLP). Special purchase contracts can be implemented
in order to specify ordering at regular intervals to better synchronize delivery and
purchase.
• Countermeasures to demand forecast inaccuracies - Lack of demand
visibility can be addressed by providing access to point of sale (POS) data. Single
control of replenishment or Vendor Managed Inventory (VMI) can overcome
exaggerated demand forecasts. Long lead times should be reduced where
economically advantageous.
• Free return policies are not addressed easily. Often, such policies simply must
be prohibited or limited.

Q.6:- What do you understand by Line Balancing? What is the importance of order
picking in material handling? Give suitable examples.

Ans:- Production lines have a number of work centers in a particular sequence so that
the material that gets proceed has to move further without encountering any
bottlenecks. The quantities produced the rate of production at each center, the number
of operations and the total production required are factors taken into account.

The purpose of taking place between work centers and minimum inventory gets created.
We use the principles of JIT and lean Manufacturing to achieve these. Linear
programming, Dynamic programming and other mathematical models are used to study
these problems.

In order picking important pants are:

Order picking is a process by which items of products for supply is to be made haves to
be retrieved from specific storage location. It is found to take 60% of labour activities in
the warehouse. Since it is critical to the business to meet customer’s demand
expeditiously and accurately, lot of attention is being given to this aspect of operations.
In the manufacturing arena, we desire to move towards small lot sizes and cycle time
reductions. Efficient order picking is necessary for being competitive. In the supply chain
Storage, retrieval and delivery do not add value to the product, but are necessary.

Material Handling:

The purpose is to take the job through the technological steps in which the processing
needs to be done for the transformation that is to be effected on the material that is

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getting processed. The major concerns are about the quantities that need to be
processed and the time that the different operations required. In case the product has to
enter assembly, along with other parts that are being manufactured parallel, will all the
required parts arrive at that point at the same time. Some components may be
outsourced. To handle different parts, we have material handling equipments such as
cranes lifting forks, trucks etc. The problem for the manager is the limited supply of
these equipments and the need to optimize utilization of the equipment and see that the
manufacturing line has smooth flow. Our concern is to reduced inventory, minimums
movement and timely availability.

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