Q1. What are the components of systems productivity?

Explain how CAD and CIM

help
System Productivity:
Enhancement of productivity is achieved by either reducing the inputs for the same output or increasing
the output by using the same input. Productivity can be calculated for a:
• Single operation
• Functional unit
• Department or division
• Plant
Productivity is a measure of the efficiency of the system and looks at the economies achieved during
the processes. Every process will have a number of contributors which help in achieving maximum
productivity. The processes are: People, Machines, Facilitating goods, Ancillary equipments, and
Technology. Each of these elements attempts to enhance the contribution of other elements.

Opportunities exist at all stages of the work flow in the entire system to introduce measures for
increasing productivity. However in actual manufacturing situations, the inefficiencies will have
cascading effect in hampering productivity. Communication, effective review processes and innovative
methods will ensure optimization of resources. Building up reliability into the equipments, managing
the supply chain to economize on the cost factors improves productivity.
Quality circles are very efficient in incorporating low cost and non-intrusive methods of improving
productivity and quality throughout the organization.
Quality circles:
• Involve all persons who are actually involved in the production system and the information they elicit
and bring about improvements that are highly cost effective.
• Unveil creativity and encourage team work and bring about improvements almost on a day to day
basis.
• Bring continuous incremental changes in a harmonious way instead of dramatic changes.
• Encourage identification of possible failures and seek methods of preventing things going wrong
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 visualization 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 computer’s 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 center 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 designer’s 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 apidly.
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.

Q2. What do you understand by ‘industry best practice’? Briefly explain different
types of Benchmarking.
Industry Best Practices : Each industry would have developed over years or decades. During this
development materials would have changed and processes would have changed. As all products or
services are meant to serve needs of the customers, they undergo continuous changes both in shapes
and features.
Materials and methods go on improving incessantly because of the research that is conducted. The
companies that were at the front innovate to stay in business as new entrants would be adopting the
latest techniques that the pioneers had taken decades to establish. So, the various firms in any industry
would end up adopting almost similar methods of getting an output required. Such practices would get
refined to a great extent giving rise to what we call industry best practices. These tend to get stabilised
or changed owing to the development of new equipments which are designed.
A manufacturer, with an eye on growing markets, demands for higher quality and reduced prices.
Competition benefits those who can use all these to their advantage. Industry best practices open up the
field for benchmarking by companies which need to improve their performance.

The following are the types of benchmarking considered by various firms.

• Process Benchmarking – Business Process
• Financial Benchmarking
• Performance Benchmarking
• Product Benchmarking
• Strategic Benchmarking
• Functional Benchmarking

Tools like Pareto Analysis (an example is shown in figure) are used to make the choice or choices from
among many aspects in any one of the above categories.
Example of Pareto Analysis

1. Planning: Planning determines the process, service or the product to be benchmarked on which
metrics are assigned for collection of data.
2. Analysis: Analyzed data gives inputs for comparison with the target company’s performance on the
parameter benchmark on which data was collected. Measuring gaps helps in identifying the process
which should be improved for reaching the benchmark.
3. Integration: Resources are required across all functions to achieve the target needs. Integration
involves putting together resources like people, equipments, and communication, so that, progress is
unhindered and all activities reach their logical conclusions without loss of initiative or time.
4. Action: When changes are needed, actions have to be planned according to the steps earlier stated.
Teams are provided with necessary leadership, authority, and supporting facilities to enable them to
complete all activities within the time frame set for the purpose. Since benchmarking is done in specific
areas, it is necessary to maintain the focus, and implement actions without losing initiative, so that,
results become demonstrable.

if (window['tickAboveFold']) {window['tickAboveFold']
(document.getElementById("latency-5593305032069672779")); } Q3. List out the
various automated systems for transfer of materials in the production plant. What
do you understand by Line Balancing? Explain with an example
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 semi-finished parts are moved to the next machine in the sequence
determined by the process requirements and 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, and positioned 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.

The main 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. We assume that product life cycles are sufficiently stable to invest heavily on the automated
flow lines to achieve reduced cost per unit.

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 sub-assemblies 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.

Line balancing: Line and work cell balancing is an effective tool to improve the throughput of
assembly lines and work cells while reducing manpower requirements and costs. Assembly Line
Balancing, or simply Line Balancing (LB), is the problem of assigning operations to workstations along
an assembly line, in such a way that the assignment be optimal in some sense. Ever since Henry Ford’s
introduction of assembly lines, LB has been an optimization problem of significant industrial
importance: the efficiency difference between an optimal and a sub-optimal assignment can yield
economies (or waste) reaching millions of dollars per year.

LB is a classic Operations Research (OR) optimization problem, having been tackled by OR over
several decades. Many algorithms have been proposed for the problem. Yet despite the practical
importance of the problem, and the OR efforts that have been made to tackle it, little commercially
available software is available to help industry in optimizing their lines. In fact, according to a recent
survey by Becker and Scholl (2004), there appear to be currently just two commercially available
packages featuring both a state of the art optimization algorithm and a user-friendly interface for data
management. Furthermore, one of those packages appears to handle only the “clean” formulation of the
problem (Simple Assembly Line Balancing Problem, or SALBP), which leaves only one package
available for industries such as automotive. This situation appears to be paradoxical, or at least
unexpected: given the huge economies LB can generate, one would expect several software packages
vying to grab a part of those economies.

A typical example are operations that require the vehicle to be elevated above the operators: such
operations can only be assigned to workstations with enough space to contain the elevated vehicle.
Zoning constraints are typical in the automotive industry – any algorithm to be applied there must
support them.

if (window['tickAboveFold']) {window['tickAboveFold']
(document.getElementById("latency-7545830538923721546")); } Q4. Explain the
different types of Quality Control Tools with examples? How do Crosby’s absolutes
of quality differ from Deming’s principles?

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.
Quality Control Tools

a) Flow Chart: Flow chart is a visual representation of process showing the various steps. It helps in
locating the points at which a problem exists or an improvement is possible. Detailed data can be
collected, analysed, and methods for correction can be developed using flow charts. The various steps
include:

• Listing out the various steps or activities in a particular job

• Classifying them as a procedure or a decision

Each decision point generates alternatives. Criteria and consequences that go with decisions are
amenable to evaluation for purposes of assessing quality. The flow chart helps in pin-pointing the exact
points at which errors have crept in.
Sample flow chart
b) Check Sheet: Check sheets are used to record the number of defects, types of defects, locations at
which they are occurring, times at which they are occurring, and workmen by whom they are
occurring. The sheet keeps a record of the frequencies of occurrence with reference to possible defect
causing parameters. It helps to implement a corrective procedure at the point where the frequencies are
more.

The table shows that the number of defects 1 and 5 are not many as compared to defect no 2 which
increased over the days and appears to be stabilising at the higher side and therefore needs to be
attended immediately. The column which shows days can be changed to observed by the hour, if need
be.

c) Histogram – Histograms are graphical representations of distribution of data. They are generally
used to record huge volumes of data about a process. They reveal whether the pattern of distribution
has a single peak, or many peaks and also the extent of variation around the peak value. This helps in
identifying whether the problem is serious. When used in conjunction with comparable parameters, the
visual patterns help us to identify the problem which should be attended to.
Sample histogram chart

The values shown are the number of observations made regarding a parameter. Sometimes, the
percentages are shown to demonstrate the relative contribution of each of the parameters.
d) Pareto Analysis: Pareto analysis is a tool for classifying problem areas according to the degree of
importance and attending to the most important. Pareto principle, also called 8020 rule, states that 80
percent of the problems that we encounter arise out of 20 percent of items. If we find that, in a day, we
have 184 assemblies having problems and there are 11 possible causes, it is observed that 80 percent of
them, that is, 147 of them have been caused by just 2 or 3 of them. It will be easy to focus on these 2 or
3 and reduce the number of defects to a great extent. When the cause of these defects has been
attended, we will observe that some other defect becomes predominantly observed and if the process is
continued, we are marching toward zero defects.

e) Scatter Diagram: Scatter diagram is used when we have two variables and want to know the degree
of relationship between them (See Figure 6.5 for Sample scatter diagram). We can determine if there is
cause and effect relationship between the variables and the degree of extent over a range of values of
the variables. Sometimes, we can observe that there is no relationship, in which we can change one
parameter being sure that it has no effect on the other parameter.

Sample scatter diagram

f) Control Charts: Control charts are used to verify whether a process is under control. Variables, when
they remain within a range, will render the product and maintain the specifications. This is called the
quality of conformance. The range of permitted deviations is determined by design parameters.
Samples are taken and the mean and range of the variable of each sample (subgroup) is recorded. The
mean of the means of the samples gives the control lines. Assuming normal distribution, we expect
99.97 percent of all values to lie within the Upper Control Limit (UCL) and Lower Control Limit
(LCL) – corresponding to

+ 3σ. The graphical representation of data helps in changing settings to bring back the process closer to
the target.

g) Cause and Effect Diagram: Cause and effect diagram represents all the possible causes which lead to
a defect on quality characteristics. These are arranged in such a way that different branches
representing causes connect the stem in the direction of the discovery of the problem (See Figure 6.6
for Sample cause and effect diagram). When each of them is investigated thoroughly we will be able to
pin-point some factors which cause the problem. We will also observe that a few of them can have
cumulative effect or even a cascading effect.

When we observe that we have excessive defects from a machine, we try to identify all possible
sources of the causes of defects. We make a study of each of them and try to correct it.

Deming Principle

Deming's TQM helps organisations to improve the quality of the products and services they offer.
Deming’s approach is summarised in his 14 points.

1. Constancy of purpose for continuous improvement

2. Adopt the TQM philosophy for economic purposes

3. Do not depend on inspection to deliver quality

4. Do not award any business based on price alone

5. Improve the system of production and service constantly

6. Conduct meaningful training on the job

7. Adopt modern methods of supervision and leadership

8. Remove fear from the minds of everyone connected with the organisation

9. Remove barriers between departments and people

10. Do not exhort, repeat slogans, and put up posters

11. Do not set-up numerical quotas and work standards

12. Give pride of workmanship to the workmen

13. Education and training to be given vigorously

14. State and exhibit top management’s commitment for quality and productivity

Using the above principles, Deming gave a four step approach to ensure a purposeful journey of TQM .
The slope is shown to indicate that if efforts are let up the programme will roll back.

• Plan means that a problem is identified, processes are determined and relevant theories are checked
out.

• Do means that the plan is implemented on a trial basis. All inputs are correctly measured and
recorded.

• Check means that the trials taken according to the plan are in accordance with the expected results.

• Act means when all the above steps are satisfactory regular production is started so that quality
outcomes are assured.

Crosby’s 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 emphasizes 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 organization 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

if (window['tickAboveFold']) {window['tickAboveFold']
(document.getElementById("latency-4044715779618227296")); } Q5. Define
project cycle, project management, and scope of project. List the various project
management knowledge areas? What are the reasons for failure of a project?
A project cycle consists of the various activities of operations, resources, and the limitations imposed
on them.

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.

Some of the other definitions of project management are shown below. “Project management is the
complete set of tasks, techniques, and tools applied during project execution”. – DIN 69901 (German
Organisation for Standardisation)
“Project management is the application of knowledge, skills, tools, and techniques to project activities
to meet project requirements”. – PMBOK (Project Management Body of Knowledge, defined by
Project Management Institute (PMI))
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 management knowledge areas

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

Factors contributing to project success not emphasised:

• Project objective in alignment with business objective
• Working within the framework of project management methodology
• Effective scoping, planning, estimation, execution, controls and reviews, closure intertwined with
quality
• Proactive approach towards project bottlenecks
• Communication and managing expectations effectively with clients, team members, and stake holders

• Prior experience of project manager in a similar project

Overview of Information and Communication Technologies (ICT) projects:

• Involve information and communications technologies such as the World Wide Web, e-mail, fiber-
optics, and satellites
• Enable societies to produce, access, adapt and apply information in greater amounts, more rapidly and
at reduced costs
• Offer enormous opportunities for enhancing business and economic viability

Common problems encountered during projects:

• No prioritisation of project activity from an organisational position
• One or more of the stages in the project mishandled
• Less qualified/non-dedicated manpower
• Absence of smooth flow of communication between the involved parties

6. Explain the various phases in project management life cycle. Explain the necessity and
objectives of SCM.
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. For the MBA assignments it is the most valuable chapter in
production management.

The important tasks of this phase are as follows:

Specification Requirements Analysis (SRA): It has to be conducted to determine the essential

requirements of a project in order to achieve the target.

Feasibility study: To analyze whether the project is technically, economically and practically feasible to
be undertaken.

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

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

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

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

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.

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

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.

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.

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.

The phase which involve in the above are:

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

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.

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

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:

Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP, Accounting. Software and
Documentation like financial reports statements ISO 9000 Documents etc.

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communication systems, documentation system and
secure, Design R&D systems etc.

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

Optimization of money flow cycle within the organization as well as to and from external agencies.

Enhancement of value of products, operations and services and consequently, enhancements of

profitability.

Enhancement of satisfaction level of customer and clients, supporting institutions, statutory control
agencies, supporting institutions, statutory control agencies, suppliers and vendors, employees and
executives.

Enhancement of flexibility in the organization to help in easy implementation of schemes involving

modernization, expansion and divestment, merges and acquisitions.

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 inter penetrated 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.