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Production & Operations
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Management
MBA,SMU,Sem-2,Assignment-01
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5/20/2010

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Robin Smith

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1. What are the components of systems productivity? Explain how CAD and CIM help in
improving productivity. Explain the difference between Storage Density and Velocity.

Ans- Production management encompasses all activities which go into conversion of a sate of inputs
into outputs which are useful to meet human needs. It involves the identification of the perquisite
materials, knowledge of the processes, and installation of equipments necessary to convert or
transform the materials to products. System productivity is generally expressed as the ratio of outputs
to inputs. Productivity can be calculated for a single operation, a functional unit, a department division
or a plant. It is a measure of the efficiency of the system and looks at the economies achieved during
the processes. Every process will have number of contributors-people machines, facilitating goods,
ancillary equipments, technology, etc. Which help in achieving maximum productivity - each element
attempting to enhance the contribution of other elements? Enhancement of productivity is achieved by
either reducing the inputs for the same output or increasing the output by using the same input.
Opportunities exist at all stages of the workflow.

The entire system of introduce measures for increasing productivity. However in actual
manufacturing situations, the inefficiencies will have cascading effect in hampering productivity.
Communication, effective review processes and innovative methods will ensure optimization of
resources. Capital productivity: Capital deployed in plant, machinery, buildings and the distribution
system as well as working capital are components of the oust of manufacture and need to be
productive. Demand fluctuations, uncertainties of production owing to breakdowns and inventories
being crated drag the productivity down. Therefore, strategies are needed to maximize the utilization
of the funds allotted towards capital. Adapting to new technologies, outsourcing and balancing of the
workstations to reduce the proportion of idle times on equipments are the focus of this section.

computers in design and manufacturing applications makes it possible to remove much of the tedium
and manual labor involved. For example, the many design specifications, blueprints, material lists,
and other documents needed to build complex machines can require thousands of highly technical and
accurate drawings and charts. If the engineers decide structural components need to be changed, all of
these plans and drawings must be changed. Prior to CAD/CAM, human designers and draftspersons
had to change them manually, a time consuming and error-prone process. When a CAD system is
used, the computer can automatically evaluate and change all corresponding documents instantly. In
addition, by using interactive graphics workstations, designers, engineers, and architects can create
models or drawings, increase or decrease sizes, rotate or change them at will, and see results instantly
on screen.

CAD is particularly valuable in space programs, where many unknown design variables are involved.
Previously, engineers depended upon trial-and-error testing and modification, a time consuming and
possibly life-threatening process. However, when aided by computer simulation

and testing, a great deal of time, money, and possibly lives can be saved. Besides its use in the
military, CAD is also used in civil aeronautics, automotive, and data processing industries.

CAM, commonly utilized in conjunction with CAD, uses computers to communicate instructions to
automated machinery. CAM techniques are especially suited for manufacturing plants, where tasks
are repetitive, tedious, or dangerous for human workers.

Computer integrated manufacturing (CIM), a term popularized by Joseph Harrington in 1975, is also
known as autofacturing. CIM is a programmable manufacturing method designed to link CAD, CAM,
industrial robotics, and machine manufacturing using unattended processing workstations. CIM offers
uninterrupted operation from raw materials to finished product, with the added benefits of quality
assurance and automated assembly.

Three-dimensional velocity models for the basins along the coast of Washington and in Puget
Lowland provide a means for better understanding the lateral variations in strong ground motions
recorded there. We have compiled 16 sonic and 18 density logs from 22 oil test wells to help us
determine the geometry and physical properties of the Cenozoic basins along coastal Washington. The
depth ranges sampled by the test-well logs fall between 0.3 and 2.1 km. These well logs sample
Quaternary to middle Eocene sedimentary rocks of the Quinault Formation, Montesano Formation,
and Hoh rock assemblage. Most (18 or 82%) of the wells are from Grays Harbor County, and many of
these are from the Ocean City area. These Grays Harbor County wells sample the Quinault Formation,
Montesano Formation, and frequently bottom in the Hoh rock assemblage. These wells show that the
sonic velocity and density normally increase significantly across the contacts between the Quinault or
the Montesano Formations and the Hoh rock assemblage. Reflection coefficients calculated for
vertically traveling compressional waves from the average velocities and densities for these units
suggest that the top of the Hoh rock assemblage is a strong reflector of downward-propagating seismic
waves: these reflection coefficients lie between 11 and 20%. Thus, this boundary may reflect seismic
energy upward and trap a substantial portion of the seismic energy generated by future earthquakes
within the Miocene and younger sedimentary basins found along the Washington coast.

Three wells from Jefferson County provide data for the Hoh rock assemblage for the entire length of
the logs. One well (Eastern Petroleum Sniffer Forks #1), from the Forks area in Clallam County, also
exclusively samples the Hoh rock assemblage. This report presents the locations, elevations, depths,
stratigraphic, and other information for all the oil test wells, and provides plots showing the density
and sonic velocities as a function of depth for each well log. We also present two-way travel times for
15 of the wells calculated from the sonic velocities. Average velocities and densities for the wells
having both logs can be reasonably well related using a modified Gardner’s rule, with p=1825v(1/4),
where p is the density (in kg/m3) and v is the sonic velocity (in km/s). Finally, we present laboratory
measurements of compression-wave velocity, shear-wave velocity, and density for 11 greywacke and
29 magic rocks from the Olympic Peninsula and Puget Lowland.

These units have significance for earthquake-hazard investigations in Puget Lowland as

they dip eastward beneath the Lowland, forming the “bedrock” beneath much of the lowland. Average
Vp/Vs ratios for the magic rocks, mainly Crescent Formation volcanic, lie between 1.81 and 1.86.
Average Vp/Vs ratios for the greywacke from the accretionary core complex in the Olympic
Peninsula show greater scatter but lie between 1.77 and 1.88. Both the Olympic Peninsula magic
rocks and greywacke have lower shear-wave velocities than would be expected for a Poisson solid
(Vp/Vs=1.732). Although the P-wave velocities and densities in the greywacke can be related by a
Gardner’s rule of p=1720v(1/4), close to the p=1740v(1/4) proposed by Gardner et al. (1974), the
velocities and densities of the magic rocks are best related by a Gardner’s rule of p=1840v(1/4). Thus,
the density/velocity relations are similar for the Puget Lowland well logs and greywacke from the
Olympic Peninsula. Density/velocity relations are similar for the Washington coastal well logs and
mafic rocks from the Olympic Peninsula, but differ from those of the Puget Lowland well logs and
greywacke from the Olympic Peninsula.
2. What are the components of operations management? What do you understand by ‘industry
best practice’? List out different types of Benchmarking.
Ans-

Components of Operation Management:-- The various components of Operations Management are

as follows:-

Product
Procurement Design Location

Quality Operation Lay out

Management Management
Mission &
Strategy
schedule Process Design

Reliability & Inventory Human Resource

Maintenance & Job Design

Procurement:-- Procurement is the acquisition of appropriate goods and/or services at the best
possible total cost of ownership to meet the needs of the purchaser in terms of quality and quantity,
time, and location. Corporations and public bodies often define processes intended to promote fair and
open competition for their business while minimizing exposure to fraud and collusion.

Almost all purchasing decisions include factors such as delivery and handling, marginal benefit, and
price fluctuations. Procurement generally involves making buying decisions under conditions of
scarcity. If good data is available, it is good practice to make use of economic analysis methods such
as cost-benefit analysis or cost-utility analysis.

An important distinction is made between analysis without risk and those with risk. Where risk is
involved, either in the costs or the benefits, the concept of expected value may be employed.
 Direct procurement and indirect procurement
TYPES
Direct Indirect
procurement procurement
Maintenance,
Raw material Capital
repair, and
and production goods and
operating (MRO)
goods services
supplies
Quantity Large Low Low
Frequenc
High Relatively high Low
y
Industry
Value Low High
FEATURES specific
Nature Operational Tactical Strategic
Crude oil in
Lubricants, spare Machinery,
Examples petroleum
parts computers
industry

Based on the consumption purposes of the acquired goods and services, procurement activities are
often split into two distinct categories. The first category being direct, production-related procurement
and the second being indirect, non-production-related procurement.

Direct procurement occurs in manufacturing settings only. It encompasses all items that are part of
finished products, such as raw material, components and parts. Direct procurement, which is the focus
in supply chain management, directly affects the production process of manufacturing firms. In
contrast, indirect procurement activities concern “operating resources” that a company purchases to
enable its operations. It comprises a wide variety of goods and services, from standardised low value
items like office supplies and machine lubricants to complex and costly products and services like
heavy equipment and consulting services.

Quality Management:-- Quality management is a recent phenomenon. Advanced civilizations that

supported the arts and crafts allowed clients to choose goods meeting higher quality standards than
normal goods. In societies where art responsibilities of a master craftsman (and similarly for artists)
was to lead their studio, train and supervise the on, the importance of craftsmen was diminished as
mass production and repetitive work practices were instituted. The aim was to produce large numbers
of the same goods. The first proponent in the US for this approach was Eli Whitney who proposed
(interchangeable) parts manufacture for muskets, hence producing the identical components and
creating a musket assembly line. The next step forward was promoted by several people
including Frederick Winslow Taylor a mechanical engineer who sought to improve industrial
efficiency. He is sometimes called "the father of scientific management." He was one of the
intellectual leaders of the Efficiency Movement and part of his approach laid a further foundation for
quality management, including aspects like standardization and adopting improved practices. Henry
Ford also was important in bringing process and quality management practices into operation in his
assembly lines. In Germany, Karl Friedrich Benz, often called the inventor of the motor car, was
pursuing similar assembly and production practices, although real mass production was properly
initiated in Volkswagen after World War II. From this period onwards, North American companies
focused predominantly upon production against lower cost with increased efficiency

Schedule:-- A plan for performing work or achieving an objective, specifying the order and allotted
time for each part: finished the project on schedule.

Reliability & Maintenance:-- It is generally used to achieve improvements in fields such as the
establishment of safe minimum levels of maintenance, changes to operating procedures and strategies
and the establishment of capital maintenance regimes and plans. Successful implementation of RCM
will lead to increase in cost effectiveness, machine uptime, and a greater understanding of the level of
risk that the organization is presently managing.

Inventory:-- Inventory is a list for goods and materials, or those goods and materials themselves, held
available in stock by a business. It is also used for a list of the contents of a household and for a list
for testamentary purposes of the possessions of someone who has died. In accounting inventory is
considered an asset.

In business management, inventory consists of a list of goods and materials held available in stock.
Human Resource & Job design:-- the process of putting together various elements to form a job,
bearing in mind organizational and individual worker requirements, as well as considerations of
health, safety, and ergonomics. The scientific management approach of Frederick Winslow Taylor
viewed job design as purely mechanistic, but the later human relations movement rediscovered the
importance of workers' relationship to their work and stressed the importance of job satisfaction.

Process Design:-- Design is the planning that lays the basis for the making of every object or system.
It can be used both as a noun and as a verb and, in a broader way, it means applied
arts and engineering (See design disciplines below). As a verb, "to design" refers to the process of
originating and developing a plan for a product, structure, system, or component with intention. As a
noun, "a design" is used for either the final (solution) plan (e.g. proposal, drawing, model, description)
or the result of implementing that plan in the form of the final product of a design process. This
classification aside, in its broadest sense no other limitations exist and the final product can be
anything from clothing to graphical user interfaces to skyscrapers. Even virtual concepts such
as corporate identity and cultural traditions such as celebration of certain holidays[3] are sometimes
designed. More recently, processes (in general) have also been treated as products of design, giving
new meaning to the term process design.

The person designing is called a designer, which is also a term used for people who work
professionally in one of the various design areas, usually also specifying which area is being dealt
with (such as a fashion designer, concept designer or web designer). Designing often requires a
designer to consider the aesthetic, functional, and many other aspects of an object or a process, which
usually requires considerable research, thought, modeling, interactive adjustment, and re-design. With
such a broad definition, there is no universal language or unifying institution for designers of all
disciplines. This allows for many differing philosophies and approaches toward the subject. However,
serious study of design demands increased focus on the design process.

Lay Out:-- Layout is the sizing, spacing, and placement of content within a window or page.
Effective layout is crucial in helping users find what they are looking for quickly, as well as making
the appearance visually appealing. Effective layout can make the difference between designs that
users immediately understand and those that leave users feeling puzzled and overwhelmed.

Location:-- In geography, Location is a position or point in physical space that something occupies on
the Earth's surface the Solar System, or mankind’s physically reachable universe.

 An absolute location is designated using a specific pairing of latitude and longitude, a Cartesian
coordinate grid (e.g. Spherical coordinate system, an ellipsoid-based system (e.g., World Geodetic
System), or similar methods.
 A relative location is the location of a place or area in relation to another site, i.e. "3 miles
northwest of Chicago".

Industry best practice:--

Each industry would have developed over years or decades. Materials would have changed, processes
would have changed. As all products or services are meant to serve needs of the customers, they
undergo continuous changes – both in shapes and features. Because of research that is conducted,
materials and methods go on improve incessantly. The companies that were at the fore innovate to
stay in business as new entrants would be adopting the latest techniques that the pioneers had taken
decades to establish. So the practices adopted by various firms in any industry would end up adopting
almost similar methods of getting an output required. Such practices would get refined to a great
extent giving rise what we call industry best practices. These tend to get stabilized or changed owing
to the development of new equipments which are designed and manufacturers of those with an eye on
growing markets which demand higher quality and reduced prices. Competition benefits those who
can use all these to their advantage. Industry best practices open up the field for benchmarking by
companies which need to improve their performance.
Bench Marking:-- It is a method of measuring a company’s processes, methods, procedures and in a
way all functions in great detail. Benchmarking is used to understand how these got into the system
and what circumstances brought them about. It is a learning process with a few to find out whether
some of the reasons have changed and bring in new processes for improvement.. The metrics that
could be used are – number of pieces per hour, cost per unit, number of breakdowns per week.,
customer alienation during a week, return on investment, number of returns from customers in a
month, inventory turnover, and many others. As can be seen the figures as found above determine the
efficiency of the organisation. To keep focused, many organizations, especially the large ones, select a
few processes for purposes of benchmarking. This helps in ensuring constant and deep attention to
those aspects which are to be dealt with. The following are the types of benchmarking firms consider.

Types of benchmarking:-
• Process benchmarking - the initiating firm focuses its observation and investigation of
business processes with a goal of identifying and observing the best practices from one or
more benchmark firms. Activity analysis will be required where the objective is to benchmark
cost and efficiency; increasingly applied to back-office processes where outsourcing may be a
consideration.
• Financial benchmarking - performing a financial analysis and comparing the results in an
effort to assess your overall competitiveness and productivity.
• Benchmarking from an investor perspective- extending the benchmarking universe to also
compare to peer companies that can be considered alternative investment opportunities from
the perspective of an investor.
• Performance benchmarking - allows the initiator firm to assess their competitive position by
comparing products and services with those of target firms.
• Product benchmarking - the process of designing new products or upgrades to current ones.
This process can sometimes involve reverse engineering which is taking apart competitors
products to find strengths and weaknesses.
• Strategic benchmarking - involves observing how others compete. This type is usually not
industry specific, meaning it is best to look at other industries.
• Functional benchmarking - a company will focus its benchmarking on a single function to
improve the operation of that particular function. Complex functions such as Human
Resources, Finance and Accounting and Information and Communication Technology are
unlikely to be directly comparable in cost and efficiency terms and may need to be
disaggregated into processes to make valid comparison.
• Best-in-class benchmarking - involves studying the leading competitor or the company that
best carries out a specific function.
• Operational benchmarking - embraces everything from staffing and productivity to office flow
and analysis of procedures performed.
3. Explain the various automated systems for transfer of materials in the production plant.
Explain the process of building manufacturing flexibility. What do you understand by Line
Balancing?
Ans-

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 ma is needed to verify that the operations ate 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 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 their activities and move the assembles 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 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. There
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.