MB0028: Production &

Operations Management
[Assignment SET1 & SET2]

Name : P. Srinath
SMDUE ID : 520923307
Center : Mehbub College Campus, Secunderabad
Subject Code : MB0028
Subject : Production & Operations Management
 ASSIGNMENT MBA SEM II Subject Code:
MB0028 SET 1

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.

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 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

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 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.

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.
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 ma 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 achieve reduces cast
per unit.

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 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 then 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 workers 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.

3. Who are the players in a project management? What are the

various roles and responsibilities of the players in a project
management?

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 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.

Here are some of the roles and responsibilities of Project Management:

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 on 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.

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.

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 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

todays 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.

4. What are the various steps in project monitoring and

controlling a project?
Any project aimed at delivering a product or service has to go through
phases in a planned manner in order to meet the requirements. Its only by
careful monitoring of the project progress. It required establishing control
factors to keep the project on the track of progress. The results of any stage
in a project, depends on the inputs to that stage. It is therefore necessary to
control all the inputs and the corresponding outputs from a stage. A project
management may use certain standard trolls to keep the project on track.

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 The project manager and the team members should be fully aware of
the techniques and methods to rectify the factors influencing delay of the
project and its product. The methodology of PERT (programmer Evolution
Review Technique) and CPM (critical path method) may be used to analyze
the project. In the PERT method one car find out the variance and use the
variance to analyze the various probabilistic estimates pertaining to the
project. Using the CPM one can estimate the start time and the finish time for
every event of the project in its WBS (work Breakdown Structure).

The analysis charts can be used to monitor, control, track and execute
a project. The various steps involved in monitoring and controlling a project
from start to end are as follows-

Preliminary work- the team members understand the project plans,

project stage schedule, progress controls, tracking the schedules. Summary
of the members have to understand the tolerances in any change and
maintain a change control log. They must realize the need and importance of
quality for which they have to follow strictly quality agendas. They must
understand the stage status reposes, stage and reports, stage end approval
reports.

Project progress- The members must keep a track of the project

progress and communication the same to other related members of the
project. They must monitor and control project progress, through the use of
regular check points, quality charts. Statistical tables, control the quality
factors which are likely to deviate from expected values as any deviation may
result in change to the stage schedule.

Stage control- The manager must establish a project check paint

cycle. For this suitable stage version control procedure may be followed.

Resources- Plan the resources required for various stage of the

project. Brief both the project team and the key resources about the
objectives of every stage, planned activities, products, organization. Metrics
and project controls.

Quality control- This is very important in any project: Quality control

is possible if the project members follow-Schedule quality review, Agenda for
quality review, conduct quality review and follow up.

Progress control- It is the main part at assessment- Progress control

assesses- monitor performance, update schedule, update casts, Re-plan
stage schedule, conduct team status review etc. Along with we create status
report, create flash reports, project status reports etc.

Approvals - lastly, project sage reviews and the decisions taken and
actions planned need to be approved by the top management. The goals of
such review are to improve quality by finding defects and to improve
productivity by finding defects in a cost effective manner. The group review

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 progress includes several stage like planning, preparation and overview, a
group review meeting and rework recommendation and follow-up.

5. Explain the necessity and objectives of SCM?

SCM is the abbreviation of supply chain Management. It is considered

by many express worldwide as the ultimate solution towards efficient
enterprise management.

The necessity and objectives of SCM-

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

effectiveness with a following organizational objective:

Reduction of inventory

Enactment in functional effectiveness of existing systems like ERP,

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

Enhancement of participation level and empowerment level

Effective integration of multiple systems like ERP, communication

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

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

Optimization of money flow cycle within the organization as well as to

and from external agencies.

Enhancement of value of products, operations and services and

consequently, enhancements of profitability.

Enhancement of satisfaction level of customer and clients, supporting

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

Enhancement of flexibility in the organization to help in easy

implementation of schemes involving modernization, expansion and
divestment, mergers and acquisitions.

Enhancement of coverage and accuracy of management information

systems.

With the objectives of SCM, its implementation is 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.

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

6. What are the steps involves in SCM implementation

There are 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, suppliers, 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 implementation:

Group customer by need: Effective SCM groups, customer by

distinct service need those particular segments.

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. Processes 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.

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 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.

Adopt channel spanning performance measures: Excellent supply

performance measurement systems do more than just monitor internal
functions. They apply performance criteria that embrace both service and
financial metrics, including each accounts true profitability.

ASSIGNMENT MBA SEM I Subject Code:

MB0028 SET 2

1. Explain how material flow information helps in work centre

decision. Consider the example of a shopping centre to
illustrate your answer.

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 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 centers 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:

Absolutely necessary to be close

Essential to be close

Ordinary closeness

Ordinary closeness

Unimportant that they are close or not

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.

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

Now, the reasons are project failure:

Incidence of Project failure

Projects being initiated of random at all levels
Project objective not in line with business objective
Project management not observed
Project manager with no prior experience in the related project
Non- dedicated team
Lack of complete support from clients

Factors contributing to project success not emphasized:

Project objective in alignment with business objective

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

Overview of information and communication Technologies (ICT)

project:

Involve information and communication technologies such as the world

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

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.

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

The important tasks of this phase are as follows:

Specification Requirements Analysis (SRA): It has to be

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

Feasibility study: To analyze whether the project is technically,

economically and practically feasible to be undertaken.

Trade off analysis: To understand and examine the various

alternatives which could be considered.

Estimation: To estimate the project cost, effort requires for the

project and functionality of various process in the project.

System design: Choose a general design that can fusil the

requirements.

Project evolution: Evaluate the project in terms of expected profit,

cost and risks involved marketing phase.

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.

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

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.

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 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.

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.

The phase which involve in the above are:

The preparation stage involves the preparation and approval of project

outline, project plan and project budget.

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.

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.

4. What are the seven principles of SCM?

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.
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

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 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.

5. Explain what is meant by bullwhip effect and how it could be

prevented?
An unmanaged supply chain is not inherently stable. Demand
variability increases as one that 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.

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.

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 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

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.
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 everyday 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.

6. What do you understand by Line Balancing? What is the

importance of order picking in material handling? Give suitable
examples.
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.

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 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 customers 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:

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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