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MBA Semester 2

MB0044 – Production & Operation Management

Assignment Set – 1

Q.No 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.

Answer: Automation system comes to reduce labor power and time in the production. Here we can
see the evolution systems with so me examples. The goods requited by society were produces in
small quantities by craftsman who would know the need of the community and produced them by
their own hands with simple tools. The apprentices or by another craftsman, who would make them
to meet the requests made.

The parts and components used to make these machines had to be replaced when they were
making parts so that interchangeability was achieved made setting up standards and specifications
important for meeting.

The craftsmen gave way to en gineers, workers, superiors and inspectors. Division of labor 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 syste ms cost huge sums of money and therefore a deep analysis of the various factors
has to be done. For services, automation usually means labor saving devices in education, long
distance learning technology helps in supplementing class room instruction. The f acilitating goods
that are used are web site and videos.

Automation in the banking sector has resulted in ATMs, which serve the banks a huge amount of
customer satisfaction. Automation is idea 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 advantages of automation is
it has low variability and will be more consiste nt 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, opt ical 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 compu ter 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 far monitoring quantity, location, movement etc. They help the automated systems to start
information and provide information for effecting 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 automatically with latest machine.

Q.No 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.

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Answer: To locate an automobile company or plant many things should be considers. For
automobile plant automated flaw lines, automated assembly lines, flexible -manufacturing systems,
and global transition rapid prototyping. Building manufacturing flexibility thi ngs 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 v erify that the operations ate taking place according to standards.
When this cab is 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 autom ation, 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 pe r 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 mater ials 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 there activities and move the assembles to the
next stage.

The machines are arranged in a sequence to perform operat ions according to the technical

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 equipment. 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

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 over come problems that my be encountered when full scale
manufacture is undertaken.

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 wi ll 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. No 3: Who are the players in a project management? What are the various roles and
responsibilities of the p layers in a project management?

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Answer: 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 w hose interests may be affected by the outcome of the

Exert influence over the project and its result 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
Now, we will define the role and responsibilities of project management. Here are some roles and

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 mangers 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 i s responsible for ensuring that the project upon completion shall deliver the gain in
the business for which it is intended.
• The project team has to properly co -ordinate with each other working on different aspects of the
• The team members are r esponsible for the completion of the project as per the plans of the

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 th e 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 proportiona l 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 ada ptability.

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

Q. No 4: What are the various steps in project monitoring and controlling a project?

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Answer: 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 only by careful monitoring of the project
progress. It required establishing control factors to keep the project on the track of progress. The
results of any stage in a project depend on the inputs to that stage. It is therefore necessary to
control all the inputs and the corresponding outputs from a stage. A project management may use
certain standard trolls to keep the pr oject 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 methodology of PERT (programmer Evolution Review Technique) and
CPM (critical path method) may be used to analyze the project. In the PERT method one car find
out the variance and use the variance to analyze the various probabilistic estimates pertaining to
the project. Using the CPM one can estimate the start time and the f inish time for every event of the
project in its WBS (work Breakdown Structure).

The analysis charts can be used to monitor, control, track and execute a project. Typical PERT/ CPM
exercise of a project is worked out at the end of this sub unit - 9.2. The various steps involved in
monitoring and controlling a project from start to end are as follows -

1. Perlirninary work - the team members understand the project plans, project stage schedule,
progress controls, tracking the duels. Summary of the members 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 quality agendas. They must understand the stage status
reposes, stage and reports, st age end approval reports.

2. Project progress - The members must keep a track of the project progress and communication the
same to other related members of the project. They must monitor and control project progress,
through the use of regular checkpoints , quality charts. Statistical tables, control the quality factors
which are likely to deviate from expected values as any deviation may result in change to the stage
she duel

3. Stage control - the manager must establish a project check paint cycle. For th is suitable stage
version control procedure may be followed.

4. 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.

5. Quality control - This is very important in any project: Quality control is possible if the project
member’s follow-

Schedule quality review, Agenda for quality review, conduct quality review and follow up.

6. Progress control - It is the main part at assessment -

Progress control assesses - monitor performance, update schedule, update casts, Re -plan stage
schedule, conduct team status review etc.

Along with we create status report, create flash reports, project status reports etc.

7. Approvals - lastly, project sage 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 findi ng defects in a cost -effective manner. The group review
progress includes several stage like planning, preparation and overview, a group review meeting
and rework recommendation and follow -up.

Q. No 5. Explain the necessity and objectives of SCM?

Answer: SCM is the abbreviation of supply chain Management. It is considered by much express
worldwide as the ultimate solution towards efficient enterprise management.

Now, we explain the necessity and objectives of SCM -

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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


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

Enhancement of flexibility in the organization to help in easy imple mentation of schemes involving
modernization, expansion and divestment, mergers and acquisitions.

Enhancement of coverage and accuracy of management information systems.

With the objectives of SCM its implementation are required. Implementation is in the f orm 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 b uying and selling goods and materials.

Q. No: 6. What are the steps involved in SCM implementation?

Answer: There are many steps which involved in SCM implementation are - Business Process, sales
and marketing. Logistics, costing, demand planning, trade - off analysis, environmental requirement,
process stability, integrated supply, supplier management, product design, suppliers, customers,
material specifications, etc.

Some important aspect of SCM -

The level of competition existing in the market and the i mpact of competitive forces on the product

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 ma rkets 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 tietinct service need those particular

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 p lanners must

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monitor the entire supply chain to detect early warning signals of changing customer demand and

Differentiate the product closer to the customer -companies today no longer can afford to stock pile
inventory to compensate for possible for ecasting 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 own ing 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.

MBA Semester 2
MB0044 – Production & Operation Management
Assignment Set – 2

Q. No 1: Explain how material flow information helps in work centre decision. Consider the example
of a shopping centre to illustrate your answer.
Answer: A work center is a production facility co mprising 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 mater ials, 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 t he
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 loca tions 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:

Absolutely necessary to be close

Essential to be close
Ordinary closeness
Ordinary closeness
Unimportant that they are close or not
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 will many
competing factors that have to be accommodated.

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Q. No 2. What are the reasons for failure of a project? Give suitable examples.
Answer: Project is a set of activities, which are networked in order and aimed towards achieving
goal of a project.

Now, the reasons are project failure:

Projects being initiated of 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 n ot emphasized:
Project objective in alignment with business objective
Working within the framework of project management methodology
Effective scoping planning, estimation, execution, controls and reviews, project bottlenecks
Communication and managing exp ectations effectively with clients, team merits and stake holders
Prior expectance of PM in a similar project
Overview of information and communication Technologies (ICT) project:
Involve information and communication technologies such as the word wide web , e-mail, fiber-
optics satellites
Enable societies to produce, access, adapt and apply information in greater amount, more rapidly
and at reduce casts
Offer enormous opportunities for enhancing business and economic viability
Common problems encountered du ring projects
No prioritization of project activity from an organizational position
One or more of the stages in the project mishandled
Less qualified non-dedicated manpower
Absence of smooth flow of communicati on 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

Q. No 3. Explain the various phases in project management life cycle?

Answer: 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 pr oblem, 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.

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 practic ally 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

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A project proposal is prepared by a group of people including the pr oject 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 m anager. 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

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

Q. No 4. What are the seven principles of SCM?

Answer: Seven principles of SCM are:

Group customer by needs - Effective SCM groups, customer by di stinct 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 consi stent forecast and optimal resource

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 s uppliers to reduce the
overall costs of owning materials and services; SCM maximizes profit margins both for themselves
and their suppliers.

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Develop a supply chain wide technology strategy - as one of the cornerstones of successful SCM
information technolo gy 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.

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. No 5. Explain what is meant by bullwhip effect and how it coul d be prevented?

Answer: An organization will always have ups and downs. It is necessary that the managers of the
organization keep track of the market conditions and analyze the changes. They must take
decisions on the organization to meet the market dema nds. Failing to do so may adversely affect
the functioning of the organization resulting in lack of coordination and trust among supply chain
members. The changes may effect the information and may lead to demand amplification in the
supply chain. The bull whip effect is the uncertainty caused from distorted information flowing up and
down the supply chain. This has its affect on almost all the industries, poses a risk to firms that
experience large variations in demand. And also these firms which are depend ent on suppliers,
distributors and retailers.

A bullwhip effect may arise because of -

1. Increase in the lead -time of the project due to increase in variability of demand.
2. Increase in the stock to stock to accommodate the increasing demand arising ou t of
complicated demand models and forecasting techniques.
3. Reduced service levels in the organization.
4. Inefficient allocation of resources.
5. Increased transportation cast

How to prevent it?

Bullwhip effect may be avoided by one or more of the fo llowing measures- Avoid multiple
demand forecasting

1. Breading the single orders into number of batches of orders.

2. Stabilize the prices avoid the risk involved in overstocking by maintaining a proper stock
3. Reduce the variability and uncertainty in pa int of sale (POS) and shaving information
4. Reduce the lead-time in the stages of the project
5. Always keep analyzing the past figures and track current and future levels of requirements
6. Enhance the operational efficient and outsourcing logistics to c apable and efficient agency

Q. No 6. What do you understand by Line Balancing? What is the importance of order picking in
material handling? Give suitable examples.
Answer: 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 parts are

Order picking is a process by which items of products for supply is to be made have to be retrieved
from specific storage location. It is found to take 60% of labor activities in the warehouse. Since it is
critical to the business to meet customer’s demand expeditiously and accurately, lot of attention is

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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 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 assem bly, 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 f orks, 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 t imely availability.

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