Jaipuria Institute of Management,

Vineet Khand, Gomti Nagar

Lucknow – 226 010

Academic Year 2018-19

Batch 2018-20
Trimester 2nd
Programme PGDM
(PGDM / PGDM-FS / PGDM-RM)
Name of Course Operations Management
Section C
Name of Faculty Prof. Anupam Saxena

Nature of submission Assignment

(Assignment / Project Report)
Topic of Assignment / Project Reflective notes

Deadline for submission

Group/ Learning Team Number Individual

Submitted by:

Sl. Name of Student Enrollment No. Signature

No.
1 Chaitanya Srivastava JL18PG185

Date of receiving at PMC Signature of PMC staff

 Operations Management
Reflective Notes
Lean Production
Lean Production involves the elimination of waste in production process. Lean is based on the
logic that nothing will be produced until it is required.
There are eight types of waste that usually occur at a work place and they are listed below:
 Over Production.
 Unnecessary movement of worker.
 Wasteful time.
 Quality defects.
 Underutilization of worker knowledge and skill.
 Excessive movement and material handling of product between processes.
 Excessive Inventory.
 Unnecessary processing steps that do not add value to the production system.

Just In Time Production

It is of two types JIT-I and JIT-II
JIT-I: Just-in-time manufacturing, also known as the Toyota Production System (TPS), is a
methodology focused on reducing time of production processes as well as response times from
suppliers and to customers.
JIT-II: There is a representative of the supplier present with the customer who is present at the
site and keeps a check on the demand of the customer if there are any changes in the demand so
he’ll be the one to notify the organization about this.

Inventory Management
Inventory is where stock is kept and it is of a few types.

Types of Inventories
 Raw materials
 Work in Progress
 Finished goods
 Replacement parts
  Goods in transit

Types of Demand
Dependent Demand:
These are the items which are required for making finished goods.
Independent Demand:
These are ready to be sold goods or the finished goods.
 Too much inventory reduces profitability
 Too little inventory damages consumer confidence

Objective of Inventory Management

 To satisfy the needs and wants of customer in time.
 To reduce overstocking and understocking risks and expenses

Lead Time:
Time from ordering till the delivery of goods.
Ordering Cost:
Cost incurred for placing an order.
Carrying Cost:
Cost of carrying the inventory from one point to another.
Shortage Cost
It is the cost which arises when demand is greater than or exceeds than supply.

Cross Docking
It is a supply chain strategy where inbound product flow is synchronized with customer’s
demand flow that means that as soon as the inventory gets emptied it is filled again to essentially
to reduce customers waiting time and to eliminate storage of inventory.

Inventory Counting System

Periodic Inventory Counting System
 Here, the counting is done at regular fixed periodic intervals.

Perpetual Inventory Counting System

TWO-BIN System
 Here, two containers of inventory are kept in two boxes and when one of the box is
empty then the order is placed till then the sound box is consumed.

ABC-Analysis
Different companies perform ABC analysis to control and find those items whose contribution is
maximum.
Class: A
 Approx. 20% of units
 80% of value

Class: B
 30% of units
 15% of value

Class: C
 50% of units
 5% of value

Location Planning and Analysis

There are four different types of layouts which are listed below:

 Product layout
 Process layout
 Fixed position layout
 Combination layout.

In product layout boredom is caused due to the recitative nature of work and in this case fixed
cost is also high.

Process layout is customized. Scheduling is a process of arranging, controlling and optimizing

work and workloads in the process.

Operations Scheduling are of four types which are listed below:

 First Come First Serve- job which comes first needs to be completed first.
 Shortest Processing Time- job having shortest processing time are done first.
  Early Due Date- job having early due date are handled first.
 Critical Ratio- it is the ratio of remaining time to the remaining work.

Location Planning is an important part of operations management some of its major factors are:

 Quality of life- good schools, attractive lifestyle and other amenities plays an important
role in location planning.
 Labor climate- easy availability of labors at reasonable rate.
 Utilities and taxes- land costs. Tax, incentives by the state government should be checked
before location planning.
 Proximity to markets- it is very useful in case of heavy final products.
 Proximity to suppliers and resources- so that transportation cost is reduced.
 Proximity to Parent’s company- for support of management and staffs.

Also there are some mathematical ways to do location planning which are:

 Weighted factor rating method.

 Centre of Gravity method.
 Location Break- even analysis.

Quality Management
Quality is the ability to meet or exceed the expectations. It has both qualitative and quantitative
aspects attached to it.

TQM stresses basically upon three principles for achieving high levels of process quality and
performance.
 Customer satisfaction
 Employee involvement
 Continuous improvement

Cost of Quality
 Appraisal Cost: Cost of inspection and testing to ensure that the product is in the
acceptable form or manner.
 Prevention Cost: The costs which are being incurred in order to prevent the defects from
happening.
  Internal Failure Costs: Cost incurred due to internal defects.
 External Failure Costs: Cost for defects that pass through the system.

Quality Circle: Quality Circle consists of group of employees who meet on regular basis to
solve problems, often led by facilitator, who is well trained in planning, problem solving and
statistical method.
There are 7 QC tools which are listed below:

 Check sheets.
 Scatter diagram.
 Cause and effect diagram.
 Pareto Chart.
 Flowchart.
 Histogram.
 Statistical Process Control Chart.

Six- Sigma: Six- Sigma certifies that there are only 3.4 DPMO (Defects Per Million
Observations). It was introduced first by Motorola but was further improved by Honeywell and
General Electric. The main focus is on the quality production and customer wants. The main
mission is to reduce variation in the processes that led to these defects.
It follows the DMAIC methodology which is-

 Define- identify the key processes.

 Measure- process and performance.
 Analyze- cause of defects.
 Improve- means to remove these defects.
 Control- determine to maintain development.