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Ans. Just in time were developed to minimize wastage across the organization.
If a firm is optimistic about the demand, then that firm increases their planned
inventories. On the other hand if the demand is weak when compared to the
expectations, then that firm’s unplanned inventories are high. That means
companies don’t keep a lot of excess inventory, then manufacture a product as
an order comes in. It is management philosophy of continuous and forced
problem solving.
1 Over production
2 Inventory.
3 Waiting time.
Waste of time happen when goods are not moving or being processed. The
operator, the machine or the part will either be not working or be worked
upon. The duration is can be said to be unproductive and may create more
serious consequences.
4. Movement
Any unnecessary movement is a waste of energy; it causes blockages,
disrupting movements and delaying the flow of other items creating delays.
5. Effort:
The people, who work, do not make a study as to how the products on which
they are making are utilized and do not realize the purpose for which they
are made. This lack of education will lead to waste of resources. Finally, they
end up in shortage of resources when needed.
6. Defective products.
7. Over Processing
The concept of value engineering originated during the second world war. It was
developed by the General Electric corporations (GEC). Value Engineering has
gained popularity due to its potential for gaining high Returns on investment
(ROI). This methodology is widely used in business re-engineering, government
projects, construction, assembling and machining processes, health care and
environmental engineering, and many others. Value engineering process calls
for a deep study of a product and the purpose for which it is used, such as the
raw materials used; the processes of transformation; the equipment needed,
and many others. It is also questions whether what is being used is the most
appropriate and economical. This applies to all aspects of the products.
2. ASHOK LEYLAND.
3. TVS.
TVS used the VE approach to restore the mobility of buses that had
broken down. They stocked their garage with some critical
assemblies of a bus. Whenever, a part or an assembly failed of a
bus, they replaced it immediately with a new one, thus restoring
mobility within a couple of hours.
4. MODI XEROX.
Modi Xerox designed the VE-d low cost copier 1025 ST, which uses a
single tray. The advantage of new design is that it is easy to operate
and the cost is also very low.
5. TITAN
• Rate of consumption.
• People to be serviced.
• Rate of service
• Policy of priority
• Others.
The study enables the methods The study may help in changing
engineer to search for better some of them and even eliminate
methods for higher utilization of some of them to effect
man and machine and improvements.
accomplishment of higher
productivity.
The study gives an opportunity The new method should result in
to the workmen to learn the saving of time, reduced motions and
process of study thus making simpler activities.
them able to offer suggestions
for improved methods.
Prototype do meet the specification of the components that enter a product and
performance can be measured on those. It helps in confirming the design and
any shortcomings can be rectified at low cost. If serious defects or problems
arise during manufacturing, a thorough change in design or even its
replacement may be considered. Toa arrive at decisions and to make use of the
advantageous stated above, it is important that the prototypes are made within
the shortest possible time, Rapid prototyping facilities this.
Handling machine have main role to All equipments make role of making sub-
move semi finished product to the next assemblies put together and fitted.
stage.
Semi-finished products are the main Here Sub-assemblies product are the core
core activities. activites.
Here raw materials are achieving to get Here intermediated products are achieving
required shapes and acquire special to get finished product.
properties.
The materials are needed to be moved, Here All parts or sub-assemblies are fitted
held, rotated, fitted and positioned for to enables the product to be in readiness
completing different operations. to perform the function it was designed to.
This process is called assembly.
Q.5 Explain Break even Analysis and centre of gravity methods. Explain
product layout and process layout with examples.
1. Investments made for land, plant and machinery resulting in interest and
depreciation.
For our calculations, we combine the first two costs together and call them fixed
costs. We call those costs that depend on the quantity of production as variable
costs.
We compare the total costs for different locations on estimated amounts per
annum and select whichever locations costs the least. However we will have to
consider the possible variations in production levels during the foreseeable time
spans and take decision.
• The volume and weights of materials that have to be moved are huge.
It is better to locate the facility at such a place, which caters to the different
points most optimally. The vital factor is the load, that is, number of items, or
the weights that need to be moved from the central location to the existing or
demanding point. We use this method when, both distance and load have to be
considered for optimality in terms of costs.
PRODUCT LAYOUT
Product layout is also called as production lines or assembly lines. They are
designed and laid out in such a way that only few products are capable of being
manufactured or assembled. Materials flow through the various facilities. These
use special machines to perform specific operations to produce only one
product at one time. So, companies should set different set of machines for
different products. Workers perform a narrow range of activities to complete the
operations on the product as it moves in a flow line. The operation times, the
sequence of movements and routing procedures are highly standardized to
meet production requirements which are synchronized with many such products
to complete finished goods to meets demands. Using special machines and
implementing standardization in operations have many advantages which are
listed below:
• Supervision is minimal
• Check for the behavioral of the worker. As jobs are repetitive, workers
tend to be bored and lose concentration. This may affect productivity and
quality.
Example:
PROCESS LAYOUT
Process layout design determines the best relative locations of functional work
centres. Work
together, whereas those that have little interaction can be spatially separated.
One approach of
3. Identify and estimate the amount of material and personnel flow among work
centres
description should include the primary function of the work centre; drilling, new
accounts, or
required. The description should also include any special access needs (such as
access to running
For a new facility, the spatial configuration of the work centres and the size and
shape of
fixtures such as elevators, loading docks, and bathrooms becomes part of the
layout process.
However, in many cases the facility and its characteristics are a given. In these
situations, it is
of a floor or foundation.
Fig 2.11 Relationship flow diagram
To minimize transport times and material-handling costs, we would like to place
close
together those work centres that have the greatest flow of materials and people
between them.
To estimate the flows between work centres, it is helpful to begin by drawing
relationship diagram
as shown in Fig. 2.11.
For manufacturing systems, material flows and transporting costs can be
estimated reasonably
well using historical routings for products or through work sampling techniques
applied to workers
or jobs. The flow of people, especially in a service system such as a business
office or a
university administration building, may be difficult to estimate precisely,
although work sampling
can be used to obtain rough estimates.
The amounts and/or costs of flows among work centres are usually presented
using a flow
matrix, a flow-cost matrix, or a proximity chart.
• Quality is built into the system of manufacture, inputs and processes that
are on stream like raw material, spare parts, labour, machine
maintenance, training, warehousing, inspection procedures, packaging,
and other. All these have to follow standards and control exercises to
make sure that mistake do not occur often and that if mistakes do occur
then they are corrected at the source.
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:
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 that overall health of the organization
and prescribed a vaccine. The ingredients are.
TPM puts the responsibility of maintenance where it belongs to and the operator who
uses the equipment. It is a companywide activity which involves all the people. The
main thrust is eliminating all break downs. The focus is on the operating personnel
because they would know about malfunctioning earlier and more than anybody else.
They work on the machine and are aware of the slightest variations that occur and thus
should be able to plan to remove the cause before it becomes serious. So every
planned maintenance activity reduces the probability of a breakdown, Ownership of the
operation and machine increases the commitment of the workmen. Autonomy is the
starting point for learning and excellence. The worker can suggest better ways of
improving quality, productivity, and design. This help in continuous improvement, Team
work and participation improves the quality culture. The principles of 5S- the
housekeeping activities which improve efficiency at workplace is considered a
measurable standard to aid the implementation at TPM even in the office rooms.
(Book ID: B1133)
Set- 2 (60 Marks)
4. Make sure that all the relevant data is available for all the
tasks.
5. Make the relevant and appropriate data available for that task.
3. Flow diagrams
4. Function hierarchies
WBS is the technique to analysis the content of work and cost by breaking it
down into its component parts. Projects key stages from the highest level of the
WBS, which is then used to show the details at the lower levels of the project.
Each key stage comprises many task identified at the start of planning and later
this list will have to be validated.
A Work Breakdown Structure is a results-oriented family tree that captures all the work of a project
in an organized way. It is often portrayed graphically as a hierarchical tree, however, it can also be a
tabular list of "element" categories and tasks or the indented task list that appears in your Gantt chart
schedule. As a very simple example, Figure 1 shows a WBS for a hypothetical banquet.
EXAMPLE 1.
EXAMPLE -2
Q.3 TAKE AND EXAMPLE OF ANY PRODUCT OR PROJECT AND EXPLAIN
PROJECT MANAGEMENT LIFE CYCLE.
2. Marketing phase
3. Design phase
4. Execution phase
7. Closure and post completion analysis phase: The final stage involves
satisfactory delivery of the product/service to the customers. Upon
completion, a project review is to be conducted by the project manager
along with team member, sponsors, and customer. A project review
process involves discussions about the progress, performance, hurdles
that were overcome and problems faced , so that, such instances could be
avoided in future projects.
Example No.1
Example No.2
Example No.3
Q.4 EXPLAIN PMIS. WHAT IS DIFFERENCE BETWEEN KEY SUCCESS
FACTOR (KSF) AND KNOWLEDGE (K) FACTOR ? EXPLAIN WITH
EXAMPLES.
Project manager and To see each project schedule, priority and use of
department managers resources to determine the most efficient use
across the organization.
Project team members To see schedule, task lists and specification so that
they know what needs to be done next.
Usually, the team members, and not the systems administrators of the
company, develop a good PMIS. Organisations tend to allocate such
responsibility by rotation among members with a well designed and structured
data entry and analytical format.
The KSF should be evolved based on a Knowledge is the most powerful mover of
basic consensus document (BCD) the wheels of progress
KSF will also provide an input to Knowledge (k) factor is an index of the
effective exit strategy (EES) extent to which one can manager today
with yesterdays knowledge content and
also the extent to which today’s
knowledge will be used tomorrow.
Broad level of KSF should be available K factor would render the development
at the conceptual stage and should be process more productive. The k factor of
firmed up and detailed out during the course, undergoes correction through
planning stage. The easiest way obsolescence, since changes are now
would be for the team to evaluate phenomenal.
each step for chances of success on a
scale of ten.
KSF rides normal consideration of Here time and cost does not matter,
time and cost- at the levels knowledge is to be updated time to time
encompassing client expectation and to get better results.
management perception-time and
cost come into play as subservient to
these major goal.
Make Connections
Turnkey businesses are designed to be ready to operate as soon as the buyer takes ownership.
Still, once they are sold, many businesses of this type run into problems when it comes to
resupplying, logistics and advertising. Because of this, many buyers are wary of turnkey
operations. One way to quell any "down the road" fears is to have this part of the infrastructure
accounted for. Make contact with businesses which help advertise businesses, ship products,
supply copy paper and any other stock the owner might require. Obtain discounts from as many
as possible
ABSTRACT
Most organisations are aware that in today’s highly competitive environment managing effectively
their knowledge is the only way to achieve a sustainable competitive advantage. One of the primary
areas to which knowledge management can be applied is the field of project management. An
increasing number of business sectors are adopting a project approach to carry out a range of
essential activities where valuable knowledge is gained. Knowledge from projects is an important
resource for further projects, because projects solve innovative and interdisciplinary tasks. However,
the majority of organisations do not manage the information gained through past projects. Failure to
transfer knowledge from past to future projects leads to wasted activity and unnecessary expenses by
‘reinventing the wheel’. Therefore, knowledge management is a critical success factor for many
projects.
The purpose of this Management Report is to approach knowledge management from the perspective
of project management. The main objective is to define how knowledge management can be
enhanced within a project by analysing suitable tools and relevant theories. The research is based on
the high-speed train project XY of the company XXX. This project is an important milestone for
XXX to improve its market position in Spain. The knowledge gained through the XY project will be
the key factor for the success of the further high-speed train projects.
The main finding of the case study highlights that there is a lack of formal knowledge management
activities at the project. The project team focuses mainly on personal interaction for transferring
knowledge and information technology is not used to its full potential. A hybrid approach to
knowledge management for project environments is suggested, taking into account technical as well
as human-specific aspects. The main recommendation is to determine a knowledge management
strategy, which preferably focuses on transferring tacit knowledge and gives information technology
a support function. Other areas of improvement are creating an open and constructive project culture,
including knowledge initiatives in reward systems and fostering documented project review sessions.
Finally, general conclusions are provided to answer the main research question of this management
report.
How to prevent it ?
• Always keep analyzing the past figures and track current and future levels
of requirement.
A truck driver delivers beer once each week to the retailer. Then the retailer
places an order with
the trucker who returns the order to the wholesaler. There's a four week lag
between ordering and
The retailer and wholesaler do not communicate directly. The retailer sells
hundreds of products
Week 1: Lover's Beer is not very popular but the retailer sells four cases per
week on average.
Because the lead time is four weeks, the retailer attempts to keep twelve cases
in the store by
ordering four cases each Monday when the trucker makes a delivery.
cases.
Week 3: The retailer sells 8 cases. The trucker delivers four cases. To be safe,
the retailer decides
Week 4: The retailer learns from some of his younger customers that a music
video appearing on
TV shows a group singing "I'll take on last sip of Lover's beer and run into the
sun." The retailer
assumes that this explains the increased demand for the product. The trucker
delivers 5 cases.
Week 5: The retailer sells the last case, but receives 7 cases. All 7 cases are
sold by the end of
Week 6: Customers are looking for Lover's beer. Some put their names on a list
to be called
when the beer comes in. The trucker delivers only 6 cases and all are sold by
the weekend. The
Week 7: The trucker delivers 7 cases. The retailer is frustrated, but orders
another 16 cases.
Week 8: The trucker delivers 5 cases and tells the retailer the beer is
backlogged. The retailer is
each week and receives the beer after a 4 week lag. The wholesaler's policy is
to keep 12
Week 8: By the 8th week most stores are ordering 3 or 4 times more Lovers'
beer than their
regular amounts.
______________________________________________________________________________
________________________________________________________________________________
Week 9: The wholesaler orders more Lover's beer, but gets only 6 truckloads.
Week 10: Only 8 truckloads are delivered, so the wholesaler orders 40.
Week 11: Only 12 truckloads are received, and there are 77 truckloads in
backlog, so the
Week 12: The wholesaler orders 60 more truckloads of Lover's beer. It appears
that the beer is
Weeks 14-15: The wholesaler receives larger shipments from the brewery, but
orders from
Week 16: The trucker delivers 55 truckloads from the brewery, but the
wholesaler gets zero
Week 17: The wholesaler receives another 60 truckloads. Retailers order zero.
The wholesaler
orders zero.
The brewery is small but has a reputation for producing high quality beer.
Lover's beer is only
Week 6: New orders come in for 40 gross. It takes two weeks to brew the beer.
Week 14: Orders continue to come in and the brewery has not been able to
catch up on the
backlogged orders. The marketing manager begins to wonder how much bonus
he will get for
Week 16: The brewery catches up on the backlog, but orders begin to drop off.
Week 18: By week 18 there are no new orders for Lover's beer.
Week 19: The brewery has 100 gross of Lover's beer in stock, but no orders. So
the brewery
At this point all the players blame each other for the excess inventory.
Conversations with
wholesale and retailer reveal an inventory of 93 cases at the retailer and 220
truckloads at the
wholesaler. The marketing manager figures it will take the wholesaler a year to
sell the Lover's
beer he has in stock. The retailers must be the problem. The retailer explains
that demand
increased from 4 cases per week to 8 cases. The wholesaler and marketing
manager think
demand mushroomed after that, and then fell off, but the retailer explains that
didn't happen.
Demand stayed at 8 cases per week. Since he didn't get the beer he ordered, he
kept ordering
more in an attempt to keep up with the demand. The marketing manager plans
his resignation.
______________________________________________________________________________
________________________________________________________________________________
3. People tend to focus on their own decisions and ignore how these decisions
affect others.
4. The problems build gradually, so people don't realize there is a problem until
it’s too late.
5. People don't learn from their experience because the effects of their actions
occur somewhere
A 6 7
B 4 3
C 5 7
D 3 6
E 4 4
JOB = D E C A B