1

Q1. Write short notes on:

Outsourcing strategies for capital productivity
Implementations of operations
Basic competitive priorities
Market survey method of forecasting
Ans. Outsourcing strategies for capital productivity:
When capacity requirements are determined, it is easy to figure out whether some goods
or services can be outsourced. Outsourcing can reduce the capital and manpower
requirements. Also the available capacities can be used augment the core competencies
thus reducing the cost of the product or services to the customer. Further, outsourcing
also helps in improved product design and even enables better networking and
collaborations. However lack of expertise, quality considerations, nature of demand, and
cost factors may restrict outsourcing.
Implementation of operations:
Implementation is the process of executing the planned operations. When planning and
controlling functions are put together, we call it as implementation of operations. The
planning is the process of estimating, routing, and scheduling. The functions are
conducted while the manufacturing is going on, like dispatching and expediting.
Basic competitive priorities:
Cost
Quality
Time
Flexibility
Cost: cost is one of the primary considerations while marketing a product or services.
Being a low-cost producer, the product accepted by the customer offers sustainability and
can outperform competitors.
Quality:
Quality is defined by the customer. The operations manager looks into two important
aspects namely high performance design and consistent quality.
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 lapsed between the
customer order and the delivery.
Flexibility:

2
Flexibility is the ability to provide a wide variety of products, and it measures how fast
the manufacturer can convert its process line used for one product to produce another
product after marketing the required changes.
Market survey method of forecasting:
Conducting survey among the prospective buyer or users is a very old method of
forecasting. Here a questionnaire is prepared ad circulated among the people and their
responses are obtained. The responses are collated and analyzed to reveal possible clues
towards acceptance or otherwise about a new product or services. Based on the overall
decision, the forecasting is done. This method is typically done for new products or at
new places where a product to be launched. In this method, the number of respondents
and how responses are gathered like through oral interviews, personal talks, internet
based, postal ballots, etc, have to be established before survey. The common limitations
are the sample size and the way of drawing the sample like random, convenient, or
judgmental. Sample bias is not completely ruled out.
Q2. Evaluate the factors that favour Gujarat as a location for manufacturing automobiles.
Gujarat offers a model for Economic Progress and Development for the developing
nations. Its significant contribution to Indian Economy has made India visible to a
competitive market in spite of the downturn in World Economy. Emerging as Investor
friendly destinations in the country, Gujarat highlights a luxurious lifestyle of leisure,
pleasure, business and Investments.
Strategic Location
Gujarat has a strategic location it is well connected to the major cities of the
world both by air and sea routes.
Gujarat has direct international flight connectivity to cities across Europe, Middle
East, East Asia and America.
Q3. Write shorts note on:
5 Ss system of waste elimination
Scheduling in services
Vendor managed inventory
Subcontracting capacity (production) option
Ans: 5Ss system of waste elimination:

Sort/segregate- keep what is needed and remove everything else from the work
area, when in doubt, throw it out. Identify non value items and remove them.
Simply/straighten- arrange and use analysis tools to improve the work flow and
reduce waste motion. Consider long run and short run ergonomic issues.

Shine/sweep- clean daily; eliminate all forms of dirt, contamination, and clutter
from the work area.
Standardize- remove variations from the process by developing standard
operating procedures and checklists, develop good standards. Standardize
equipment and tooling so that cross training time and cost are reduced.
Sustain/self- discipline- Review periodically to recognize the efforts and motivate
the work force to sustain progress. Use visuals wherever possible for easy
communication and implementation.

Scheduling in services:
There are distinctive difference between the scheduling followed for manufacturing
and services. All these differences have a direct impact on scheduling. The differences
are:
Service operations cannot create inventories to provide buffer for demand
uncertainties.
Demand in service operations cannot be predicted accurately.
Demands for service are initiated mostly as unplanned event and hence, there
may be certain distortions in scheduling.
Providing the required manpower and skills for the sudden demand in
scheduling a service activity is challenging and sometimes becomes crucial.
Vendor managed inventory:
The very purpose of JIT is to reduce inventory at all places in the supply chain. Inventory
is considered as waste because inventory is created by using materials, machines, and
efforts of persons. All of these are resources which have already been used up and that
portion of it which is not consumed and sent up the value chain causes a drag in the
system. However, inventories are inevitable because uncertainties exist at every stage,
making it necessary to provide a buffer so that demands do not go unfilled. The challenge
is to keep it to the minimum.
Subcontracting capacity (production) option:
A film can acquire temporary capacity by subcontracting work during peak demand
periods. Subcontracting, however, has several pitfalls. First, it may be expensive, second
it risks opening the clients door to a competitor. Third, is often hard to find the perfect
subcontract supplier, one who always delivers the quality product on time. However, of
late outsourcing has become a complete business policy and cost of operations may be
cited as the main reason.
Q4. Describe the post implementation review of a project. Explain the tools that may be
considered for post implementation review.
Ans: Post implementation review

4
After every stage of a project is implemented, it may so happen that there could be a
minor change or modification which has to be reviewed. This is known as post
implementation review. The review is performed in four parts:
1. Final product review: The product obtained after every stage must meet the
requirements of that stage. If it completely meets the stated objectives, then focus on the
issues of maintenance of the processes and product performance. If the final product does
not completely meet the objectives then identify the variations in the product and analyse
the variation. Study the factors responsible for the change and evaluate each one
separately.
2. Outstanding project work review: Many times it is found that there may be some item
of the project which is still not in its finished form. It may be insignificant as it may be a
by-product of that stage which may not be required immediately for the next stage. Then
the items that are open should be resolved and necessary steps be taken to close such
open items.
3. Project review: Every aspect of a project from start to end has to be reviewed. The
objectives, performance criteria, financial criteria, resource utilisation, slips and gains of
time, adherence to the project definition, and plans have to be reviewed. All such review
details and reports have to be well documented for future use.
4. Process review: Every process is important in any project. One may review the process
to see, if any changes can be made to improve its performance.

The tools are as follows:

Tools for post implementation review
There are various tools for post project implementation review that may be considered for
improving and developing processes of the project. Reports are prepared on the same
which becomes the basis for all future discussion. Some of the tools that may be
considered for post implementation review are the final product evaluation, outstanding
project work evaluation, project review questionnaire, and project evaluation.
1. Final product evaluation: Final product evaluation may be done
through regularly organised meetings and quality reviews.
2. Outstanding project work evaluation: All outstanding works of a
project can be reviewed to check its output quality and performance.
3. Project review questionnaire: Project review questionnaire may
become important if the reviews are to be structured. Group discussion

5
may be initiated depending upon the points to be discussed.
4. Process evaluation: Evaluation of any process is one of the key issues
of project

Q5. Explain the steps to set data in logical order so that the business process may be
defined.
List the ingredients of a business process.
Ans: A business process or business method is a collection of related, structured activities
or tasks that produce a specific service or product (serve a particular goal) for a particular
customer or customers. It can often be visualized with a flowchart as a sequence of
activities with interleaving decision points or with a Process Matrix as a sequence of
activities with relevance rules based on data in the process.
1. Management processes, the processes that govern the operation of a system.
Typical management processes include "corporate governance" and "strategic
management".
2. Operational processes, processes that constitute the core business and create the
primary value stream. For example, taking orders from customers, and opening an
account in a bank branch.
3. Supporting processes, which support the core processes. Examples include Health
& Safety, accounting, recruitment, call center, technical support.

BELOW ARE THE INGREDIENTS OF BUSINESS PROCESS.

The ingredients that might be used in a business process can be briefly outlined as shown
below.
The data, which accomplishes the desired business objective.

Acquisition, storage, distribution, and control of data, which undertakes the

process across tasks.

Persons, teams, and organizational units, which helps to perform and achieve the
tasks.

Decision, which enhances the value of data during the process.

6. Describe the dimensions of quality.

The concept was defined by David Garvin. Some of the dimensions are mutually
reinforcing, whereas others are notimprovement in one may be at the expense of
others. Understanding the trade-offs desired by customers among these dimensions can
help build a competitive advantage.
There are eight dimensions of quality that can be summarized as follows:
1. Performance: Performance refers to a product's primary operating characteristics.
This dimension of quality involves measurable attributes; brands can usually be
ranked objectively on individual aspects of performance.
2. Features: Features are additional characteristics that enhance the appeal of the
product or service to the user.
3. Reliability: Reliability is the likelihood that a product will not fail within a
specific time period. This is a key element for users who need the product to work
without fail.
4. Conformance: Conformance is the precision with which the product or service
meets the specified standards.
5. Durability: Durability measures the length of a products life. When the product
can be repaired, estimating durability is more complicated. The item will be used
until it is no longer economical to operate it. This happens when the repair rate
and the associated costs increase significantly.
6. Serviceability: Serviceability is the speed with which the product can be put into
service when it breaks down, as well as the competence and the behavior of the
serviceperson.
7. Aesthetics: Aesthetics is the subjective dimension indicating the kind of response
a user has to a product. It represents the individuals personal preference.
8. Perceived Quality: Perceived Quality is the quality attributed to a good or service
based on indirect measures.