ASSIGNMENTS - MBA - II SEMESTER

MB0028 (3 CREDITS)

SET 1

PRODUCTION AND OPERATIONS MANAGEMENT

Q.1:- Explain the various automated systems for transfer of materials in the
production plant? Illustrate your answer by considering an example of an automobile
showroom.

Ans:- Basically, automation system comes to reduce labour power and time in the
production. Here we can see the evolution systems with some 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
wore making parts so that interchangeability was achieved made setting up standards and
specifications important for meeting.

The craftsmen gave way to engineers, workers, superiors and inspectors. Division of
labour became necessary to achieve efficiencies and the jabs that became specialized.
Competition has necessitated improved quality, reduced sates and better services to the
customer.

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

Automation in the banking sector has resulted in ATMs which same the banks a huge
amount customer satisfaction. Automation is ideas when the service provided or the product
manufactured is highly standardized.

Some extent of automation can be designed even with customization i. e. product or

service a meant to produce or deliver low volume specific to a requirement. The advantage of
automation is it has low variability and will be more consistent on a repetitive basis.

The machines have sensing and control devices that enable them to operate
automobile. The simplest of them called machine attachments replace human effort. They

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guide, locate, move and achieve revise position by means of came, optical sensing. Load
sensing mechanisms and activate the controls to remove human intention.

Robots are higher in the order of automation as they perform a variety of tasks. They
are designed to move movements according to programmers written into the computer that
inside them.

With the help of automation, inspection of component can be done 100% ensures
highest quality identification and movement of materials are helped by bar codes which are
read and fed into the system for monitoring quantity, location, movement etc. They help the
automated systems to start information and provide information for effecting 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.2:- State the important considerations for locating an automobile plant?

Collect information on layout planning of an automobile plant from various sources
and furnish the same.

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

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

Human intervention is needed to verify that the operations are taking place according
to standards. When these can be achieved with the help of automation and the processes are
conducted with self regulation, we will have automated flow lines established.

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

services operations and machines it is possible to achieve this condition. We assume that
product life cycles are sufficiently stable to interest heavily on the automate flow lines to

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achieve reduces cast per unit.

Product layouts ate designed so that the assembly tasks are performed in the sequence
they are designed at each station continuously. The finished item came out at the end of the
line.

In automated assembly lines the moving pallets move the materials from station to
station and moving arms pick up parts, place them at specified place and system them by
perusing, riveting, & crewing or even welding. Sensors will keep track of these activities and
move the assembled to the next stage.

The machines are arranged in a sequence to perform operations according to the

technical requirements.

The tools are loaded, movements are effected, speeds controlled automatically
without the need for worker’s involvement.

The flexibility leads to better utilization of the equipments. It reduces the numbers of
systems and rids in reduction of investment as well as a space needed to install them. One of
the major cancers of modern manufacturing systems is to be able to respond to market
Demands which have uncertainties.

Prototyping is a process by which a new product is developed in small number so as

to determine the suitability of the materials, study the various methods of manufactured, type
of machinery required and develop techniques to overcome problems that may be
encountered when full scale manufacture is undertaken.

Prototypes do meet the specification of the component that enters a product and
performance can be measured on these.

It helps in con be reforming the design and any shortcomings can be rectified at low
cost.

Flexibility has three dimensions in the manufacturing field. They are variety, volume
and time. Their demands will have to be satisfied. In that sense they become constraints
which restrict the maximization of productivity. Every business will have to meet the market
demands of its various products in variety volumes of different time.

Flexibility is also needed to be able to develop new products or make improvements

in the products fast enough to cater to shifting marker needs.

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

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

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

Here we will see the participants of project management:

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

Exert influence over the project and its results players or also called “stake holders’’
of the project. Project manager- the individual responsible for managing the project.

Customer- the individual or organization that will use the product- the end result of
the project.

Performing organization- the enterprise whose employees are mast directly involved
in doing the work of the project.

Sponsors- the individual or group within or external to the performing organization

that funds the project.

Now, we will define the role and responsibilities of project management. Here are
some roles and responsibilities:

There are number of projects which an organization works on. It is not possible for
one individual to manage all the projects.

There is a team of managers who manage the projects.

There may be different teams working different projects.

An experienced project manager and this team may manage more than one project at a
time.

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

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

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

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

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

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

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

Structured planning – structure planning based a project management life cycle

enables one to easily and conveniently work according to the plan.

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

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

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

Monitoring and Controlling Process Group Processes

1. Monitoring and Controlling includes:

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

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

In multi-phase projects, the Monitoring and Controlling process also provides

feedback between project phases, in order to implement corrective or preventive actions to
bring the project into compliance with the project management plan. Project Maintenance is
an ongoing process, and it includes:

(a) Continuing support of end users

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

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Monitoring and Controlling cycle

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

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

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

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

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

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

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

with a following organizational objective:

1. Reduction of inventory

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

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

3. Enhancement of participation level and empowerment level

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

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

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

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

from external agencies.

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

enhancements of profitability.

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

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

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

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

10. Enhancement of coverage and accuracy of management information systems.

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

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

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

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

Some important aspect of SCM-

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

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

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

Steps of SCM principals:

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

Customize the logistics networks: In designing their logistics network, companies

need to focus on the service requirement and profit potential of the customer segments
identified.

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

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

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

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

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

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

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 ASSIGNMENTS - MBA - II SEMESTER

MB0028 (3 CREDITS)

SET 2

PRODUCTION AND OPERATIONS MANAGEMENT

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

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

A work center is a production facility comprising of one or more machines and one or
more workmen considered as a single unit for purposes of estimation of capacity. This unit
may have a single operation or a number of them conducted on the input items. In the
pipeline of production, each work center’s contribution is vital as materials are scheduled,
routed and loads to be sent to it.

In most organization, they are even considered as cash centers. Location trust means
relative position of different centers so as to minimize the movement of materials, meet
technological sequences, to reduce congestion, maximize throughput, improve part tracking
ability and avoid repetitive movements. In addition another consideration is to provide for
expansion of production.

Each work center receives information along with material that enter it the material
also leaves the word center with information. The route sheet contains information about the
material, process, quantities, and inspection procedures. Etc. the drawings or instructions tell
the condition of the malarial of entry and the required condition at exit.

In this sense every operation consists of material transformation occurring on the

basis of information. Activities conducted are on the basis of information that flows with
material. Different locations have to accommodate the constraints of the basis of darning
maximums benefit of the information that is available. Basically, each location is determined
on the basis of from and to: where does it receive material goes. Some centers have to close
as a matter of necessity, some need not to be and some need to be as far away as possible.

This aspect has been given a rating scale in terms of alphabets as under:

(a) Absolutely necessary to be close.

(b) Essential to be close.
(c) Ordinary closeness.
(d) Ordinary closeness.

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 (e) Unimportant that they are close or not.
(f) Not desirable that the centers are close.

It can be seen that this is only a guide for Indian location as the work centers as there
will many competing factors that have to be accommodated.

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

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

1. The reasons are project failure:

(a) Incidence of Project failure.

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

2. Factors contributing to project success not emphasized:

(a) Project objective in alignment with business objective

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

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

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

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

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

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

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

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

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

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

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

and practically feasible to be undertaken.

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

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

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

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

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

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

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

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

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

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

2. The phase which involve in the above are:

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

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

3. The project management life cycle:

A Life cycle of a project consists of the following:

Understanding the scope of the project Establishing objectives of the project

Formulating and planning various activities Project execution and Monitor and control the
project resources.

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

Ans:- Seven principles of SCM are:

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

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 Customize the logistic network- In designing their logistics network; companies need
to focus on the service requirement and profit of the customer segments identified.

Listen to signals of market demand and plan accordingly- Sales and operations
planners must monitor the entire supply chain to detect early warning signals of changing
customer demand and needs. This demand driven approach leads to more consistent forecast
and optimal resource allocation.

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

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

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

successful SCM information technology must be able to support multiple levels of decision
making. It also should afford a clear view and ability to measure the flow of products,
services and information.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

In order picking important pants are:

Order picking is a process by which items of products for supply is to be made haves
to be retrieved from specific storage location. It is found to take 60% of labour activities in
the warehouse. Since it is critical to the business to meet customer’s demand expeditiously
and accurately, lot of attention is being given to this aspect of operations. In the
manufacturing arena, we desire to move towards small lot sizes and cycle time reductions.

Efficient order picking is necessary for being competitive. In the supply chain Storage,
retrieval and delivery do not add value to the product, but are necessary.

Material Handling:

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

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