S.K.A.K.

D Samaraweera MN3001

150347 Assignment 05

1. What is operation management?

Managing the repetitive process in order to transform inputs
to desired outputs. (iso 9001:2015)

2. What Is the Operations Research?

Operational research, also known as operations research, is
an interdisciplinary mathematical science that focuses on
the effective use of technology and resources by
organizations. Also it called as optimization. Which gives the
meaning of selecting the best.

3. What are the steps in the operation research process?

Identify the problem or opportunity
Understand the system
Formulate the mathematical model
Verify the model
Select the best alternative
Present the result of analysis
Implement and evaluate the solution

4. Define the term problem?

The state of difficulty that need to be resolved.
How do we get a problem? Any problem comes from
human needs
What are the human needs? All the problems are human
needs.

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S.K.A.K.D Samaraweera MN3001

150347 Assignment 05

5. What is the creative problem solving process?

1. Define the problem
Identify the human need
Identify the desire status
Identify the current status
Set the objective (mental solution for the problem)
See the current status pertaining to the current status.
Identify the obstacles (problems) to move from reality
to objective.
2. Identify the constrains
3. Remove the constrains and see the free status (freedom)
4. Impose the constrains and find alternative solution.
5. Evaluate alternate solution based on current status and find the
most appropriate solution.
6. Then decide the implementation process of the solution
(solution implementing the process)
7. Evaluate the physical solution against the mental solution.
(objective)
8. If there is a gap, take the decided, the short term actions as well
as long term actions.
9. Take the appropriate action and physically bridge the gap.
10. Standardize above process for solving similar problem.

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S.K.A.K.D Samaraweera MN3001

150347 Assignment 05

6. What is linear programming?

A mathematical tool for maximizing or minimizing a quantity
(usually profit or cost of production), subject to certain
constraints.

7. What are the three basic elements of linear programming model?

A set of decision variables.
An objective function.
A set of constraints

8. Why the linear programming is important?

Many real static problems lend themselves to linear
programming formulations.

Many real problems can be approximated by linear models.

The output generated by linear programs provides useful

whats best and what-if information.

9. What is simulation?
Simulation is a process of designing a model of real system and
conducting experiments with this model for the purpose of
either understanding the behavior of the system and/or
evaluating variations strategies for the operation system.

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S.K.A.K.D Samaraweera MN3001

150347 Assignment 05

10. What are the advantages of simulation?

Can be used to study existing systems without disrupting the
ongoing operations.
Proposed systems can be tested before committing resources.
Allows us to control time.
Allows us to identify bottlenecks.
Allows us to gain insight into which variables are most important
to system performance

11. What are the disadvantages of simulation?

Model building is an art as well as a science. The quality of the
analysis depends on the quality of the model and the skill of the
modeler (Remember: GIGO)
Simulation results are sometimes hard to interpret.
Simulation analysis can be time consuming and expensive.
Should not be used when an analytical method would provide
for quicker results.

12. What is Optimized Production Technology (OPT)?

Optimized Production Technology is a planning & production
system focused on throughput maximization by alleviating
bottlenecks.

13. Why is OPT important?

An organization can only speed up the length of the entire
process if the bottleneck is alleviated

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S.K.A.K.D Samaraweera MN3001

150347 Assignment 05

14. What are the OPT operational measures?

Throughput = the rate at which the system generates
money through sales
Inventory = all the money that the system has invested in
purchasing things which it intends to sell
Operational Expense = all the money the system spends to
turn inventory into throughput

15. What is the goal of OPT?

Increase throughput while simultaneously reducing both
inventory and operational expense.

16. What are the 10 rules of OPT?

1. Utilization and activation of a resource are not the same
2. The level of utilization of a non-bottleneck is determined not
by its own potential but by some other constraint in the
system
3. An hour lost at a bottleneck is an hour lost for the total
system
4. An hour saved at a non-bottleneck is just a mirage
5. Bottlenecks govern both the throughput and inventory in the
system
6. The transfer batch may not and often should not be equal to
the process batch
7. The process batch should be variable, not fixed
8. Capacity and priority should be considered simultaneously,
not sequentially
9. Balance flow, not capacity
10. The sum of local optima is not equal to the global optimum

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