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Master of Business Administration - MBA Semester 2
MB0044-Production and Operation Management-4 Credits
(Book ID: B1627)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words
each. Each Question carries 10 marks 6 X 10=60.
Q1. What is value engineering? List the main benefits of value
engineering?
Definition and explanation of Value Engineering (VE)
Listing of the main benefits (any four)
Answer. The concept of value engineering originated during the Second
World War 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 reengineering, government projects, automakers, transportation and distribution,
industrial equipment, 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;

Q2. Case study: SABMiller revamps supply chain management

SABMiller, the $24bn global brewing giant, is revamping its supply
chain management system to reduce stock-outs caused by an
increasingly complex and hard to predict market. The firm is developing
and testing the new system in South Africa with an eye on rolling it out
to group companies worldwide, says SABMiller programme manager
Rudi van Schoor.
"Our brands are the same as any other brand, especially those at the
luxury end," says Van Schoor. "If the customer comes into the shop and
can't find our product, he or she has the disposable income and selfconfidence to substitute our brand for our competitors'. That's
dangerous."

Van Scoor says the group has an average stock availability target of
98%. "But for some premium brands the target is 100%," he says. That
means it will live with excess stocks of some products, just to ensure
that a thirsty customer can get his or her favourite drink, every time.
(Source:http://www.computerweekly.com/feature/Case-studySABMiller-revamps-supply-chainmanagement)
Why did SABMiller revamp its supply chain? Describe the domain
application used for SCM integration?
Analysis of the major and minor issues for revamping the supply chain with
evidence
Description of the SAP system, why it was used and the benefits from
using the system
Answer. Revamping:-

Q3. Write short notes on:

Ingredients of a business process

Acceptance sampling
Work Breakdown Structure
Productivity

Answer. a. Ingredients of a business process: - The ingredients that might

be used in a business process can be briefly outlined as follows.

Q4. Collaborative Forecasting Running Smoothly at Brooks Sports

designs and develops high-performance running footwear, apparel and
accessories which are sold in 80 countries worldwide. In 2001, when
the company shifted from a broad product line to focus on highperformance products targeted at serious runners, it was clear that the
forecasting process needed to change to support the strategic direction
of the company. The existing forecasting process, based entirely on the
judgment of the sales team, was limiting the companys ability to grow.
The strategy shift created a number of forecasting challenges for
Brooks including:
Inconsistent style growth: the new line of products experience growth
rates anywhere from 0 to 50 percent annually.
Long production planning horizon coupled with short product life:
production and capacity decisions are typically made 18 months before
a style is launched, average lead time for a style is 6 months and the
product life of Brooks styles range from 6 to 24 months. This means
that planners must sometimes set the entire demand plan for a style
prior to ever receiving a customer order, underscoring the importance
of accurate forecasts.

 Increasing at-once orders: at once orders, which are placed for

immediate shipment, historically accounted for less than 20 percent of
total sales. Since 2001, however, at once orders have increased to
nearly 50 percent of total sales.
Evolving size curves: with its new focus on serious runners, the
standard footwear size curve would not adequately reflect distribution
of sales by sizes.
No exposure to retail sell-through: the high-performance products are
sold primarily through independent specialty stores who dont have the
capability to share sales data with vendors.
What is the main issue of the case study? Analyse the forecasting
solution.
Description of the main issue(forecasting process needed to change),
forecasting challenges
Evaluation of the collaborative forecasting process
Conclusion on whether the solution could be improved or not
Answer. Issues:-

Q5. Explain the risk management and its various components.

Definition of risk management and what it entails
Description of the four components of risk management
a. Risk assessment
b. Risk control
c. Risk prioritising
d. Risk mitigation
Answer. Risk Management
Risks are those events or conditions that may occur and whose occurrence has a
harmful or negative impact on a project. Risk management aims to identify the
risks and then take actions to minimise

Q6. Why redesign of layouts may be necessary? List the differences

between product and process layout.
Listing of reasons why redesigning of existing layout is required
Listing of any five differences
Answer. Most Common reasons for redesigns:1. Inefficient Operations.
2. Accident or safety hazards.

Winter-2015
Get solved assignments at nominal price of
Rs.125 each.
Mail us at: subjects4u@gmail.com or contact at
09882243490