Q - 1.EXPLAIN THE OUTSOURCING CONCEPTS?

COST SAVINGS / FOCUS / STAFFING LEVELS / MORALE

, KNOWLEDGE , FLEXIBILITY , ACCOUNTABILITY
Q - 2. LIST THE ADVANTAGES AND DISADVANTAGES OF PROJECT PROCESS?
ADV-- WORKFLOW MANAGEMENT, -/ COST CONTAINMENT, /PRODUCTIVE STAFF
UTILIZATION
DIS- MICROMANAGEMENT// MISCOMMUNICATION COST, LACKLUSTER CREATIVITY
Q 3 LIST AND EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF BATCH
PROCESSES
ADV-FLEXIBILTY:,QUALITY, PRODUCTION PROCEESES ARE FASTER, HIGH
CUSTOMIZATION
DIS-LOW VOLUME, DEMAND FLUCTUATES, COSTLY:, SLOW, DIFFICULT TO MANAGE,
TAKES TIME Q 4 LIST AND EXPLAIN THE ADVANTAGES AND DISADVANTAGES OF
MASS PROCESSES
ADV-EFFICIENCY, SPEED, LOW COST, EFFICIENCY, EASE OF MANUFACTURE
CONTROL AND SPEED
DIS- CAPITAL INVESTMENT:, LACK OF RESPONSIVENESS, DIFFICULTIES OF
ADAPTING TO CHANGES IN DEMAND, TECHNOLO
Q 5 EXPLAIN THE MAIN PRINCIPLES OF REDESIGNING PROCESSES.
1. REMOVE WASTE, SIMPLIFY, AND CONSOLIDATE SIMILAR ACTIVITIES.
2. LINK PROCESSES TO CREATE VALUE.
3. LET THE SWIFTEST AND MOST CAPABLE ENTERPRISE EXECUTE THE PROCESS.
4. FLEX THE PROCESS FOR ANY TIME, ANY PLACE, ANY WAY.
5. CAPTURE INFORMATION DIGITALLY AT THE SOURCE AND PROPAGATE IT
THROUGH THE PROCESS.
6. PROVIDE VISIBILITY THROUGH FRESHER AND RICHER INFORMATION ABOUT
PROCESS STATUS.
7. FIT THE PROCESS WITH SENSORS AND FEEDBACK LOOPS THAT CAN PROMPT
ACTION.
8. ADD ANALYTIC CAPABILITIES TO THE PROCESS.
9. CONNECT, COLLECT, AND CREATE KNOWLEDGE AROUND THE PROCESS THROUGH
ALL WHO TOUCH IT.
10. PERSONALIZE THE PROCESS WITH THE PREFERENCE AND HABITS OF
PARTICIPANTS.
Q 6 LIST AND EXPLAIN THE MAIN ELEMENTS OF PRODUCT TECHNOLOGY
CAD- COMPUTER-AIDED DESIGN ,
GT -GROUP TECHNOLOGY
CAE- COMPUTER-AIDED ENGINEERING
CPC- COLLABORATIVE PRODUCT COMMERCE
PDM- PRODUCT DATA MANAGEMENT
PLM -PRODUCT LIFECYCLE MANAGEMENT

PRODUCT CONFIGURATION
7.EXPLAIN THE CONCEPT OF CAPACITY AND THE THREE BASIC STRATEGIES OF
CAPACITY EXPANSION.
CAPACITY LEAD STRATEGY.
AVERAGE CAPACITY STRATEGY
CAPACITY LAG STRATEGY
8.LIST AND EXPLAIN THE MAIN OBJECTIVES OF A FACILITY LAYOUT.
Q9. LIST AND EXPLAIN THE BASIC FACILITY LAYOUTS.

MINIMIZE MOVEMENT AND MATERIAL HANDLING COSTS;

UTILIZE SPACE EFFICIENTLY;

UTILIZE LABOR EFFICIENTLY;

ELIMINATE BOTTLENECKS;

FACILITATE COMMUNICATION AND INTERACTION BETWEEN WORKERS,

BETWEEN WORKERS AND THEIR SUPER- VISORS, AND BETWEEN WORKERS AND
CUSTOMERS;

REDUCE MANUFACTURING CYCLE TIME AND CUSTOMER SERVICE TIME;

ELIMINATE WASTED OR REDUNDANT MOVEMENT;

FACILITATE THE ENTRY, EXIT, AND PLACEMENT OF MATERIAL, PRODUCTS,

AND PEOPLE;

INCORPORATE SAFETY AND SECURITY MEASURES;

PROMOTE PRODUCT AND SERVICE QUALITY;

ENCOURAGE PROPER MAINTENANCE ACTIVITIES;

PROVIDE A VISUAL CONTROL OF ACTIVITIES;

PROVIDE FLEXIBILITY TO ADAPT TO CHANGING CONDITIONS;

INCREASE CAPACITY.
QUESTION 17 WHAT ARE SOME OF THE RISK OF OUTSOURCING?
COST /, CAPACITY / QUALITY
SPEED / RELIABILITY / EXPERTISE
QUESTION 18 LIST AND EXPLAIN THE FOUR FUNCTIONS OF INVENTORY?
DEMAND / INVENTORY COST / CARRING COST / INVENTORY SYSTEMS
QUESTION 19
LIST AND EXPLAIN THE FOUR TYPES OF INVENTORY
RAW MATERIALS / WORK IN PROGRESS / FINISHED GOODS / TRANSPORTATION

Q- 21 WHAT ARE THE THREE MAIN INVENTORY MODELS FOR INDEPENDENT

DEMAND? LIST AND BRIEFLY EXPLAIN.
. THREE INDEPENDENT DEMAND MODELS ARE:
1. BASIC ECONOMIC ORDER QUANTITY (EOQ) MODEL
2.PRODUCTION ORDER QUANTITY MODEL (EPQ)
3.QUANTITY DISCOUNT MODEL (QD)
BASIC EOQ MODEL
USED TO IDENTIFY THE ORDER SIZE THAT WILL MINIMIZE THE SUM OF THE
ANNUAL COSTS OF HOLDING INVENTORY AND ORDERING INVENTORY

ASSUMPTIONS:
1. ONLY ONE PRODUCT IS INVOLVED
2. ANNUAL DEMAND REQUIREMENTS ARE KNOWN, CONSTANT (SPREAD EVENLY
THROUGHOUT THE YEAR), AND INDEPENDENT
3. LEADTIME IS KNOWN AND DOES NOT VARY
4. RECEIPT OF INVENTORY IS INSTANTANEOUS AND COMPLETE, I.E., INVENTORY
FROM AN ORDER ARRIVES IN ONE BATCH AT ONE TIME IN A SINGLE DELIVERY
5. QUANTITY DISCOUNTS ARE NOT POSSIBLE
6. STOCKOUTS (SHORTAGES) CAN BE COMPLETELY AVOIDED IF ORDERS ARE
PLACED AT THE RIGHT TIME
ECONOMIC PRODUCTION QUANTITY (EPQ) MODEL
THE BATCH MODE OF PRODUCTION IS WIDELY USED IN PRODUCTION. (EVEN IN
ASSEMBLY OPERATIONS, PORTIONS OF THE WORK ARE DONE IN BATCHES).
AN ECONOMIC ORDER QUANTITY TECHNIQUE APPLIED TO PRODUCTION ORDERS.
ASSUMPTIONS:
1. ONLY ONE ITEM IS INVOLVED
2. ANNUAL DEMAND IS KNOWN
3. THE USAGE RATE IS CONSTANT
4. USAGE OCCURS CONTINUALLY, BUT PRODUCTION OCCURS PERIODICALLY
5. THE PRODUCTION RATE IS CONSTANT
6. LEAD TIME DOES NOT VARY
7. THERE ARE NO QUANTITY DISCOUNTS
QUANTITY DISCOUNT MODEL
QUANTITY DISCOUNTS ARE PRICE REDUCTIONS FOR LARGE ORDERS OFFERED
TO CUSTOMERS TO INDUCE THEM TO BUY IN LARGE QUANTITIES. IF QUANTITY
DISCOUNTS ARE OFFERED, THE BUYER MUST WEIGH THE POTENTIAL BENEFITS
OF REDUCED PURCHASE PRICE AND FEWER ORDERS THAT WILL RESULT IN
BUYING IN LARGE QUANTITIES
AGAINST THE INCREASE IN CARRYING COSTS CAUSED BY HIGHER AVERAGE
INVENTORIES.

THE BUYERS GOAL WITH QUANTITY DISCOUNTS IS TO SELECT THE ORDER

QUANTITY THAT WILL MINIMIZE TOTAL COST, WHERE TOTAL COST IS THESUM OF
CARRYING COST, ORDERING COST, AND PURCHASING COST.
Q- 22 WHAT ARE SOME QUANTITATIVE TECHNIQUES FOR AGGREGATE PLANNING
QUANTITATIVE TECHNIQUES FOR AGGREGATE PLANNING
ONE AGGREGATE PLANNING STRATEGY IS NOT ALWAYS PREFERABLE TO
ANOTHER. THE MOST EFFECTIVE STRATEGY DEPENDSON THE DEMAND
DISTRIBUTION, COMPETITIVE POSITION, AND COST STRUCTURE OF A FIRM OR
PRODUCT LINE.SEVERAL QUANTITATIVE TECHNIQUES ARE AVAILABLE TO HELP
WITH THE AGGREGATE PLANNING DECISION. IN THESECTIONS THAT FOLLOW, WE
DISCUSS PURE AND MIXED STRATEGIES, LINEAR PROGRAMMING, THE
TRANSPORTATION METHOD, AND OTHER QUANTITATIVE TECHNIQUES.
PURE STRATEGIES
SOLVING AGGREGATE PLANNING PROBLEMS INVOLVES FORMULATING
STRATEGIES FOR MEETING DEMAND, CONSTRUCTINGPRODUCTION PLANS FROM
THOSE STRATEGIES, DETERMINING THE COST AND FEASIBILITY OF EACH
PLAN,AND SELECTING THE LOWEST COST PLAN FROM AMONG THE FEASIBLE
ALTERNATIVES. THE EFFECTIVENESS OF THE AGGREGATEPLANNING PROCESS IS
DIRECTLY RELATED TO MANAGEMENTS UNDERSTANDING OF THE COST
VARIABLES INVOLVEDAND THE REASONABLENESS OF THE SCENARIOS TESTED.
EXAMPLE 14.1 COMPARES THE COST OF TWO PURE STRATEGIES: LEVEL
PRODUCTION AND CHASE DEMAND.
ALTHOUGH CHASE DEMAND IS THE BETTER STRATEGY FOR GOOD AND RICH
FROM AN ECONOMIC POINT OF
VIEW, IT MAY SEEM UNDULY HARSH ON THE COMPANYS WORKFORCE. AN
EXAMPLE OF A GOOD FIT BETWEEN ACOMPANYS CHASE DEMAND STRATEGY
AND THE NEEDS OF THE WORKFORCE IS HERSHEYS, LOCATED IN
RURALPENNSYLVANIA, WITH A DEMAND AND COST STRUCTURE MUCH LIKE
THAT OF GOOD AND RICH. THE LOCATION OFTHE MANUFACTURING FACILITY IS
ESSENTIAL TO THE EFFECTIVENESS OF THE COMPANYS PRODUCTION PLAN.
DURINGTHE WINTER, WHEN DEMAND FOR CHOCOLATE IS HIGH, THE COMPANY
HIRES FARMERS FROM SURROUNDING AREAS,WHO ARE IDLE AT THAT TIME OF
YEAR. THE FARMERS ARE LET GO DURING THE SPRING AND SUMMER, WHEN
THEY AREANXIOUS TO RETURN TO THEIR FIELDS AND THE DEMAND FOR
CHOCOLATE FALLS. THE PLAN IS COST-EFFECTIVE, AND THEEXTRA HELP IS
CONTENT WITH THE SPORADIC HIRING AND FIRING PRACTICES OF THE
COMPANY.
GENERAL LINEAR PROGRAMMING MODEL
STRATEGIES FOR PRODUCTION PLANNING MAY BE EASY TO EVALUATE, BUT
THEY DO NOT NECESSARILY PROVIDE AN OPTIMAL SOLUTION. WE COULD
SIMPLY TRYDIFFERENT COMBINATIONS AND COMPARE THE COSTS (I.E., THE
TRIAL-AND-ERROR APPROACH), OR WE COULD FIND THE OPTIMAL SOLUTION BY
USING LINEAR PROGRAMMING. IF YOU ARE UNFAMILIAR WITH LINEAR
PROGRAMMING,PLEASE REVIEW THE SUPPLEMENT TO THIS CHAPTER. EXAMPLE

14.2 DEVELOPS AN OPTIMAL PRODUCTION PLAN FOR GOOD AND RICH

CHOCOLATE CANDIES USING LINEAR PROGRAMMING.
MIXED STRATEGIES
MOST COMPANIES USE MIXED STRATEGIES FOR PRODUCTION PLANNING.
MIXED STRATEGIES CAN INCORPORATE MANAGEMENTPOLICIES, SUCH AS NO
MORE THAN X% OF THE WORKFORCE CAN BE LAID OFF IN ONE QUARTER OR
INVENTORYLEVELS CANNOT EXCEED X DOLLARS. THEY CAN ALSO BE
ADAPTED TO THE QUIRKS OF A COMPANY ORINDUSTRY. FOR EXAMPLE, MANY
INDUSTRIES THAT EXPERIENCE A SLOWDOWN DURING PART OF THE YEAR
MAYSIMPLY SHUT DOWN MANUFACTURING DURING THE LOW-DEMAND SEASON
AND SCHEDULE EMPLOYEE VACATIONS DURING THAT TIME.
THE TRANSPORTATION METHOD
FOR CASES IN WHICH THE DECISION TO CHANGE THE SIZE OF THE WORKFORCE
HAS ALREADY BEEN MADE OR IS
PROHIBITED, THE TRANSPORTATION METHOD OF LINEAR PROGRAMMING CAN
BE USED TO DEVELOP AN AGGREGATE
PRODUCTION PLAN. THE TRANSPORTATIONMETHOD GATHERS ALL THE COST
INFORMATION INTO ONE MATRIX AND PLANS PRODUCTION BASED ON
THELOWEST-COST ALTERNATIVES. TABLE 14.1 SHOWS A BLANK
TRANSPORTATION TABLEAU WITH IFOR INVENTORY, H FORHOLDING COST, R FOR
REGULAR PRODUCTION COST, O FOR OVERTIME, S FOR SUBCONTRACTING, AND
B FOR BACKORDERING.THE CAPITAL LETTERS INDICATE INDIVIDUAL
CAPACITIES OR DEMAND. THE PERIODS OF PRODUCTION,ALONG WITH THE
PRODUCTION OPTIONS, APPEAR IN THE FIRST COLUMN. THE PERIODS OF USE
(REGARDLESS OFWHEN THE ITEMS ARE PRODUCED) APPEAR ACROSS THE TOP
ROW. COST ENTRIES IN THE PERIOD-OF-USE COLUMNSDIFFER BY THE COST OF
HOLDING THE ITEM IN INVENTORY BEFORE ITS USE.OTHER QUANTITATIVE
TECHNIQUESALTHOUGH LINEAR PROGRAMMING MODELS WILL YIELD AN
OPTIMAL SOLUTION TO THE AGGREGATE PLANNING PROBLEM, THERE ARE SOME
LIMITATIONS. THE RELATIONSHIPS AMONG VARIABLES MUST BE LINEAR, THE
MODEL ISDETERMINISTIC, AND ONLY ONE OBJECTIVE IS ALLOWED (USUALLY
MINIMIZING COST).THE LINEAR DECISION RULE, SEARCH DECISION RULE, AND
MANAGEMENT COEFFICIENTS MODEL USE DIFFERENTTYPES OF COST
FUNCTIONS TO SOLVE AGGREGATE PLANNING PROBLEMS. THE LINEAR
DECISION RULE (LDR) IS AN OPTIMIZINGTECHNIQUE ORIGINALLY DEVELOPED
FOR AGGREGATE PLANNING IN A PAINT FACTORY. IT SOLVES A SET OF FOUR
QUADRATIC EQUATIONS THAT DESCRIBE THE MAJOR CAPACITY-RELATED COSTS
IN THE FACTORY: PAYROLL COSTS,HIRING AND FIRING, OVERTIME AND
UNDERTIME, AND INVENTORY COSTS. THE RESULTS YIELD THE OPTIMAL
WORKFORCE LEVEL AND PRODUCTION RATE.
THE SEARCH DECISION RULE (SDR) IS A PATTERN SEARCH ALGORITHM THAT
TRIES TO FIND THE MINIMUM COST
COMBINATION OF VARIOUS WORKFORCE LEVELS AND PRODUCTION RATES. ANY
TYPE OF COST FUNCTION CAN BE USED. THE SEARCH IS PERFORMED BY
COMPUTER AND MAY INVOLVE THE EVALUATION OF THOUSANDS OF
POSSIBLESOLUTIONS, BUT AN OPTIMAL SOLUTION IS NOT GUARANTEED. THE

MANAGEMENT COEFFICIENTS MODEL USES REGRESSION ANALYSIS TO

IMPROVE THE CONSISTENCY OF PLANNING DECISIONS. TECHNIQUES LIKE SDR
AND MANAGEMENT COEFFICIENTS ARE OFTEN EMBEDDED IN COMMERCIAL
DECISION SUPPORT SYSTEMS OR EXPERT SYSTEMS FOR AGGREGATE PLANNING.