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Marks 60

Master of Business Administration - MBA Semester 2

MB 0044 - Production and Operation Management


Q1. State the important considerations for locating an automobile plant.

AnswerTo 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.

Machinery Layout :The processes involved in getting things done have to be detailed out in terms of materials required, the sequence of the various activ ities of the process and their movements from one location to another. The equipments required, their capabilities andthe personnel required to man them have to be determined and provided for. Quantitiesthat need to be moved, balancing the loads to meet the production requirements will haveto meet the plans that have been formulated. The essence of planning is the determinationof activates that need to be performed at a future date to meet demands that have beenforecast based on market surveys and forecasting. Different types of layouts are in voguedepending upon the product, the process and the type of production. Another m ainconsideration is the material handling that is required for the raw materials, goods in process and the finished goods. We will consider them in detail

Product Layout :-

These are also called production lines or assembly lines. They are designed and laid outin such a way that only a few products are capable of being manufactured or assembled.Materials flow through the various facilities. These use special machines to performspecific operations to produce only one product at one time. So companies set differentset of machines for different machines. Workers perform a narrow range of activities tocomplete the operations on the product as it moves in a flow line. The operation times,t h e s e q u e n c e o f m o v e m e n t s , r o u t i n g p r o c e d u r e s a r e h i g h l y s t a n d a r d i z e d t o m e e t production requirements which are synchronized with many such products to completefinished goods to meet demands. The skill required of the workers is low. Supervision isminimal. Training needs are small. The main concern is to keep a check on the processesso that quality is assured. Since the quantities that get manufactured will be continuous,corrective measures have to be implemented immediately to avoid rejections. Another problem is behavioral in that the workers tend to be bored and lose concentration as jobsa r e r e p e t i t i v e a n d m a y a f f e c t p r o d u c t i v i t y a n d q u a l i t y . The operations 1 to 5 happen in a sequence and testing of sub assembly, to which areasome components whether bought-out items or made elsewhere in the plant arrive for assembly.

Q2. Explain essentials of Project Management Philosophy AnswerProject management is defined as the act of assembling people to systematically achieve a shared goal, then it has existed since ancient history. Think of the Egyptians erecting the Great Pyramid

of Giza or the first Emperor of China commanding the manual labor of millions to build the Great Wall of China. Despite new method developments and technology changes over time, project management has kept its core goal intact: to deliver successful projects in a clear and effective way. Dialogue and Cooperation: We emphasize a consultative, inclusive approach to project implementation. The involvement of counterparts in the design and implementation is essential to ensure that change management programs are effective and supported. Ownership and Empowerment: It is important to emphasize the development of local talent. We are keen on empowering staff based on solid risk management approaches and motivational strategies. We enjoy coaching project staff and interns in field offices on all aspects of project management, including human resources, turn around and change management, donor relations, internal financial control and work planning. Integrity and Accountability: Especially in difficult environments such as Afghanistan and many other developing countries, it is important to adhere to the highest standards of professionalism, integrity, client concern and service. Internal Financial and Risk Controls: Strong internal risk management systems, such as those based on the COSO, AS/NZS 460:2004 and ISO 30001 are critically important to the implementation of programs, especially larger programs. Quality and Innovation: We try to utilize the latest technology in support of project implementation. Content Management Systems such as joomla and Drupal are examples of how free opensource software that can be used to manage projects' document repository and to provide information on the programs to counterparts in different languages.

Q3. Several different strategies have been employed to assist in aggregate planning. Explain these in brief. Answer 1. Pure Strategies:There are three focused or pure strategies are Vary production to match demand by changes in employment. Produce at a constant rate and use inventories. Produce with stable workforce but vary the utilization rate. 2. Chase demand Strategy In this strategy the production output is increased or decreased according the demand. This is possible if workers are added or removed to vary the input capacity. It also means that if the system is dominantly automated then it will be either under or over-utilised as the as the situation demands. 3.Level production Strategy :In this case, the production output is held constant irrespective of the changes in demand from period to period. Usually, the average demand is taken as the constant output. When the demand exceeds the average output, in some months there is shortage and when the output is above the average there is surplus and build-up of inventory. However, wherever possible excess output can be used to accumulate inventory and that inventory is maintained.

4.Stable work-force Strategy :- in this strategy the work force is maintained at the same level on regular time. Production output is varied either by overtime or by building up inventory. However, if the demand falls then the production output is decreased and some workers may become idle. 5. Mixed Strategies:- in mixed strategies, the aggregate planner has a wide variety of choices by mixing to or more strategy. The number of mixed strategies in alternative production plans is almost limitless. However, based on the realities of the situations, the number of practical solutions is limited. 6. Mathematical Planning Models :Mathematical models attempt to refine or improve upon the trailand-error approaches. However, the solution generated may not be feasible and need to be refined. A popular technique is the application of transportation algorithm which is a special case of the linear-programming model. It views the aggregate planning problem as the linear-programming model. It views the aggregated planning problem as the problem of allocating capacity to meet the forecast requirement where supply consists of the inventory on hand and units that can be produced using regular time , over time and subcontracting etc.

Q4. Illustrate the different methods by which quality is sought to be achieved using various tools and techniques. Answer Quality control techniques are specific and procedures adopted using data, foe determining a particular aspect of quality to arrive

at decisions which are conclusive. Each technique developed and tested by senior personnel or consultants will be simple enough to be understood , implemented and interpreted by the personnel for their immediate use. Some of the quality control technique are : 1. Quality at the source. 2. Quality control tools . 3. Acceptance sampling . Quality at the source The concept of quality makes the production worker responsible for inspecting his /her own work and for taking corrective actions . since inspection is done immediately after a job is done , finding the cause of the error with clarity aids in faster rectification. Every worker has the authority to stop production, if he /she find some serious defect .This puts responsibility for quality on the workers and gives them pride their work . Help should always be available from the quality control personnel to help workers understand the implications of the above actions. This brings cooperation and improves the achievement. The information generated may be used to effect improvements at the suppliers end also. The entire process brings in openness, commitment, participation and helps in achieving quality. Quality control tools The most popular and widely used tools are called as 7 QC tools. These includes the following Flow chart Check sheet

Histogram Pareto analysis Scatter diagram Control chart Cause and effect diagram

1.Flow Chart ;- flow chart is a visual representation of a 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 includes Listing out the various steps or activities in particular job. Classifying them as a procedure or a decision. 2.Check sheet :- are used to record the number 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. 3.Histogram :- are graphically 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 single peak, or many peaks and also the extent of variation around the peak value. This helps in identifying whether the problem is serious. The various types of visual patterns have

been established along with relevant interpretations which helps us to identify the problem. 4.Pareto Analysis :- is a tool for classifying problem areas according to the degree of importance and attending to the most importance and attending to the most important ones. Pareto principles , verbally stated as vital few; trivial many is also called 80-20 rule because is to observe that 80% of the problem that we encounter arise out of 20% of items. Acceptance sampling Accepting sampling is also known as end if line inspections and categorizing the products based on sample based inspection. In accepting sampling method of quality control , the supplier and customer agree upon accepting a lot by inspecting a small number as agreed upon by the parties or as validated by sampling scheme , is determined as defective, the lot is accepted. If the number of defectives is more than the agreed size, the entire lot is rejected. Obviously, risks for the producer and buyer exit. As samle size increase and the number of acceptable defectives decreases, the risk for the buyer decreases. And converse is true. That is the reason these number cannot be fixed as they depend on the customers requirements. Q5. Explain the basic competitive priorities considered while formulating operations strategy by a firm? AnswerOperations strategy advantages depends on its processes and competitive priorities considered while establishing the

Capabilities. The basic competitive priorities are: 1. COST Cost is one of the primary considerations while marketing a product or a service. Being a low cost producer, accepted by the customer offers sustainability and can outperform competitors. Lower prices and better quality of a product will ensure higher demand and higher profitability. 2. Quality Quality is defined by the customer. The operation manager looks into two important aspects namely high performance design and consistent quality. High performance design includes superior features, greater durability, conveniences to services etc 3. Time Faster delivery time, on time delivery, and speedy development cycle are the time factors that Operations strategy looks into. Faster delivery time is the time elapsed between the customer order and delivery. On time delivery is the frequency with which the product is delivered on time. 4. Flexibility Flexibility is the ability to provide a wide variety of products, and it measures how fast the manufacturers can its process line used for one product to produce another product after making the required changes. The two types of flexibility are Customizations. Volume flexibility.

Q6. Explain briefly the four classification of scheduling strategies? AnswerScheduling strategies differs from organization to organizing as it depends on the quantum of production, size and type of production, companys policy, priorities, etc. most of these strategy are . 1. Detailed Scheduling All job orders from customer are scheduled to the last details this may not be practical in case disruptions are there in production line machine breakdown, absenteeism, etc 2. Cumulative scheduling The customer order are pooled to from a cumulative work load and then matched with the capacity. The work load is then allocated in such a way that immediate periods get allocated to maximum capacity. 3. Cumulative-detailed combination This combines both the earlier strategies of firm and flexible nature of work load. Cumulative work load projection can be used to plan for capacity as needed. As changes happen during the week, the materials and capacity requirements are updated . 4. Priority decision rulesWhen a set of order are to be executed, the question of prioritizing arises. These priority decision rules are scheduling guidelines used independently or in conjunction with any one of the above three strategies.