IGNOU MBA MS-05 Solved Assignment 2011

Course Code Course Title Assignment Code Coverage : : : : MS - 5 Management of Machines and Materials MS-5/SEM - I/2011 All Blocks

Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. Q1. Elaborate the concept of Systems Life-Cycle in Operations Management.

Solution: Systems Life Cycle (SLC) is a process used by a systems analyst to develop an information system, including requirements, validation, training, and user (stakeholder) ownership. Any SLC should result in a high quality system that meets or exceeds customer expectations, reaches completion within time and cost estimates, works effectively and efficiently in the current and planned Information Technology infrastructure, and is inexpensive to maintain and cost-effective to enhance. Computer systems are complex and often (especially with the recent rise of Service-Oriented Architecture) link multiple traditional systems potentially supplied by different software vendors. To manage this level of complexity, a number of SLC models have been created: "waterfall"; "fountain"; "spiral"; "build and fix"; "rapid prototyping"; "incremental"; and "synchronize and stabilize". In project management a project can be defined both with a project life cycle (PLC) and an SLC, during which slightly different activities occur. According to Taylor (2004) "the project life cycle encompasses all the activities of the project, while the systems life cycle focuses on realizing the product requirements. The Systems Life Cycle (SLC) phases serve as a programmatic guide to project activity and provide a flexible but consistent way to conduct projects to a depth matching the scope of the project. Each of the SLC phase objectives are described in this section with key deliverables, a description of recommended tasks, and a summary of related control objectives for effective management. It is critical for the project manager to establish and monitor control objectives during each SLC phase while executing projects. Control objectives help to provide a clear statement of the desired result or purpose and should be used throughout the entire SLC process. Control objectives can be grouped into major categories (Domains), and relate to the SLC phases as shown in the figure. To manage and control any SLC initiative, each project will be required to establish some degree of a Work Breakdown Structure (WBS) to capture and schedule the work necessary to complete the project. The WBS and all programmatic material should be kept in the Project Description section of the project notebook. The WBS format is mostly left to the project manager to establish in a way that best describes the project work. There are some key areas that must be defined in the WBS

as part of the SLC policy. The following diagram describes three key areas that will be addressed in the WBS in a manner established by the project manager. Work breakdown structured organization The upper section of the Work Breakdown Structure (WBS) should identify the major phases and milestones of the project in a summary fashion. In addition, the upper section should provide an overview of the full scope and timeline of the project and will be part of the initial project description effort leading to project approval. The middle section of the WBS is based on the seven Systems Life Cycle (SLC) phases as a guide for WBS task . The WBS elements should consist of milestones and tasks as opposed to activities and have a definitive period (usually two weeks or more). Each task must have a measurable output (e.x. document, decision, or analysis). A WBS task may rely on one or more activities (e.g. software engineering, systems engineering) and may require close coordination with other tasks, either internal or external to the project. Any part of the project needing support from contractors should have a Statement of work (SOW) written to include the appropriate tasks from the SLC phases. The SOW does not occur during a specific phase of SLC but is developed to include the work from the SLC process that may be conducted by external resources such as contractor.

Q2.

Define work measurement. What are the various methods of work

measurement? Discuss work sampling. Solution: The purpose of work measurement is to determine the time it ought to take to do a job. The problem is in the definition of "ought to." Work measurement analyst define this as the time it should take an experienced and well-trained operator to perform the job in a specific and well-defined method at a speed that can be maintained all day, day after day, without undue fatigue. This time, called standard time, can be divided into several parts: the actual elements used to perform the job; the rating factor used to determine the "normal" pace of these elements (the method used to determine the "ought to" time); and an allowance for personal time, unavoidable delays, and slowing due to fatigue. There are four main systems of work measurement. First, and most used, is time study, specifically, stop-watch time study. Motion picture and video cameras, computers, and various production timing devices can also be used in the place of, and in conjunction with, the stop watch. The second system, work sampling, is a statistical procedure for measuring work and requires an understanding of the techniques of statistics and probability. The third system, predetermined time systems (PDT), uses sets of tables of basic motions that have already been "normalized" by experts. Thus, PDT systems do not require the analyst to "rate" or "level" the measurement. Finally, there is the standard data system of work measurement which, strictly speaking, is not a measurement technique at all. Here similar elements made up of similar groups of motions from the other measurement systems are tabled and then reused as needed for subsequent products and standards. USES OF WORK MEASUREMENT Work measurement is used to determine standards against which comparisons can be made for a variety of purposes. 1. Wage incentives. If workers are to be paid in accordance with the amount of work accomplished rather than the amount of time expended (hourly), some means of determining an acceptable, or fair, amount of work is needed. The payment for work accomplished could be based on sales price and profits, but a fairer method is to establish a standard and pay in accordance to that standard. 2. Schedules. In order to schedule work effectively and keep things running smoothly and orderly, a knowledge of expected working times is an absolute necessity. 3. Budgets. Budgets provide needed control over funds. One of their more important inputs is operating costs. Standards provide the expected operating times from which these costs are computed. 4. Labor cost control.Labor cost is usually a very significant percentage of the total manufacturing cost (normally from 10 to 40 percent). To control these costs, the actual costs must be compared to a standard and any deviation corrected, especially if the actual is greater than the standard.

5. Downtime studies. Properly developed standards include reasonable allowances (extra time) for personal time, unavoidable delays, and fatigue. Both time study and work sampling can be used to determine these allowances. They can also be used on a continuing basis (daily or weekly) to measure actual downtime and personal time when definitive production records are not kept and standards are not used.

Q3. What are the objectives of Value Engineering? Discuss how to organize VE/VA function in a tractor manufacturing firm. Solution: Value Engineering (VE) is an organized effort directed at optimizing a products relationship between its functional need(s) and the cost(s) to meet that need while meeting or exceeding quality requirements. It is a formal attempt to assure the highest value of a product by delivering all required functions at the lowest overall cost. Through the selection of the most appropriate product for analysis and a creative team, Value Engineering projects on average yield a 10-20% reduction in cost without a quality sacrifice. Value engineering emerged into prominence after World War II. Basic ideas related to it were developed by Lowrence D.Miles in 1947. The industrial situation during that period was so, that there was overall recession. Material was in short supply. Trained and skill manpower was insufficient. Therefore, manufacturing technologies were looking for alternative material, improved processing requirements, better designs, low cost operation, and efficient system. Foundation of value engineering got its root during this period to achieve some of these objectives. The major focus, however, was to cut down cost while retaining the desired function of the product.

The objective of value engineering is the systematic application of recognized techniques to identify the function of a product or service; establish norms for the function; and provide the necessary function related to these at lowest cost. IMEC works with clients in providing a Value Engineering cost-reduction workshop that challenges and utilizes a select cross-functional team of inter-company employees working in a dynamic team environment. IMECs experienced VE facilitators lead the team through the use of proven techniques such as teamwork, functional analysis, creativity, cost-worth, and others that are guided by the VE project objectives and implementation plan. Objectives of Value Engineering Value: 1. Selection. IMEC staff works with the client to select the product to benefit from the Value Engineering process. Selection also includes identifying the team to participate in the workshop. 2. Investigation. During the investigation phase, the team is trained to understand and implement the basic tools of the VE process. The team will then investigate all of the current

product and process information including performance requirements. The entire process will be investigated from raw materials to finished goods. All functions will be investigated at their most basic level and assigned a cost value at that level. 3. Speculation. This phase requires the team to apply brainstorming techniques to generate a large list of potential alternatives to the current product and manufacturing process. 4. Evaluation. Evaluation is the process by which the team refines ideas evaluating the advantages and disadvantages of each alternative. The team will build cost models and estimate the resources required to implement the best alternatives. 5. . requires the team to further define and validate the best alternatives utilizing sketches, testing, and other technical work. Typically action items are assigned to confirm feasibility and can require up to several weeks to complete. 6. Presentation. Following the completion of the action items, the VE team reconvenes to finalize and present their recommendations to the executive staff. Implementation In order to move ideas into reality, IMEC can facilitate and support the implementation of approved findings through: 7. Implementation. IMEC works with executive staff to assign the appropriate action items to ensure recommendations are implemented. 8. Audits. IMEC works with the VE team leader to audit progress and update the executive staff measuring actual savings versus estimates.

Benefits of Value Engineering Value Engineering is a powerful, proven methodology used to define the basic value added functions of a product while improving quality, performance, and eliminating unnecessary costs.

Q4.

Write an essay on Statistical Quality Control.

Solution: Statistical Quality control is the application of statistical methods to the monitoring and control of a Quality to ensure that it operates at its full potential to produce conforming product. Under SQC, a Quality behaves predictably to produce as much conforming product as possible with the least possible waste. While SQC has been applied most frequently to controlling manufacturing lines, it applies equally well to any Quality with a measurable output. Key tools in SQC are control charts, a focus on continuous improvement and designed experiments. Much of the power of SQC lies in the ability to examine a Quality and the sources of

variation in that Quality using tools that give weight to objective analysis over subjective opinions and that allow the strength of each source to be determined numerically. Variations in the Quality that may affect the quality of the end product or service can be detected and corrected, thus reducing waste as well as the likelihood that problems will be passed on to the customer. With its emphasis on early detection and prevention of problems, SQC has a distinct advantage over other quality methods, such as inspection, that apply resources to detecting and correcting problems after they have occurred. In addition to reducing waste, SQC can lead to a reduction in the time required to produce the product or service from end to end. This is partially due to a diminished likelihood that the final product will have to be reworked, but it may also result from using SQC data to identify bottlenecks, wait times, and other sources of delays within the Quality. Quality cycle time reductions coupled with improvements in yield have made SQC a valuable tool from both a cost reduction and a customer satisfaction standpoint. Statistical Quality Control may be broadly broken down into three sets of activities: understanding the Quality; understanding the causes of variation; and elimination of the sources of special cause variation. In understanding a Quality, the Quality is typically mapped out and the Quality is monitored using control charts. Control charts are used to identify variation that may be due to special causes, and to free the user from concern over variation due to common causes. This is a continuous, ongoing activity. When a Quality is stable and does not trigger any of the detection rules for a control chart, a Quality capability analysis may also be performed to predict the ability of the current Quality to produce conforming (i.e. within specification) product in the future. When excessive variation is identified by the control chart detection rules, or the Quality capability is found lacking, additional effort is exerted to determine causes of that variance. The tools used include Ishikawa diagrams, designed experiments and Pareto charts. Designed experiments are critical to this phase of SQC, as they are the only means of objectively quantifying the relative importance of the many potential causes of variation. Once the causes of variation have been quantified, effort is spent in eliminating those causes that are both statistically and practically significant (i.e. a cause that has only a small but statistically significant effect may not be considered cost-effective to fix; however, a cause that is not statistically significant can never be considered practically significant). Generally, this includes of standard work, error-proofing and training. Additional Quality changes may be required to reduce variation or align the Quality with the desired target, especially if there is a problem with Quality capability. In practice, most people (in a manufacturing environment) will think of SQC as a set of rules and a control chart (paper and / or digital). SQC ought to be a QUALITY, that is, when conditions change such 'rules' should be re-evaluated and possibly updated. This does not, alas, take place usually; as a result the set of rules known as "the Western Electric rules" can be, with minor variations, found in a great many different environs (for which they are very

rarely actually suitable). For digital SQC charts, so-called SQC rules usually come with some rule specific logic that determines a 'derived value' that is to be used as the basis for some (setting) correction. One example of such a derived value would be (for the common N numbers in a row ranging up or down 'rule'); derived value = last value + average difference between the last N numbers (which would, in effect, be extending the row with the to be expected next value).

Q5.

Discuss the various vendor evaluation and rating.

Solution: As a consumer, when you want to purchase an item, whether it is a new car or a flat screen television, you will most likely do some research on the prices of your local stores or from vendors on the internet. When you have narrowed your search you then look at other criteria that may be important to you, like warranty or availability. Lastly you will look at other less tangible criteria such as your previous experiences with the vendor and how their customer service was. This behavior is exactly the same for companies when they want to evaluate the vendors in their supply chain. Unless your company only uses one vendor for each item they purchase, there will enviably be occasion when a decision has to be made as to which vendor gets your business. There are a number of different scenarios when this will occur, for example when the item is purchased for the first time and when an item is no longer single sourced. Purchasing an Item For The First Time When a decision has to be made between vendors, the purchasing department will use some vendor evaluation method to be their tool in the decision. If the item is to be bought for the first time, the purchasing department may have contacted a number of vendors and sent them a Request for Quotation (RFQ). Each vendor would then complete the RDQ with the information that was required, normally price and terms. The purchasing department would then use these completed quotations, in conjunction with other information they have collected on the vendors, to make short list for further evaluation or make a final selection. The purchasing department would evaluate the vendors based on a number of criteria they had decided upon which may include objective criteria such as price and warranty and subjective data which would include past experience with the vendor. Based on the weighting given to these criteria the purchasing department would be able to fairly evaluate each vendor. Choosing Between Vendor If the sourcing of an item has been from a single vendor but another vendor has been approved to supply the same item, a decision would need to be made on vendor selection when a requisition has been received by the purchasing department. Many companies use a vendor evaluation tool that allows transaction data to be analyzed to give a comparison between vendors. The vendor evaluation uses criteria that have been determined by the purchasing department to compare vendors such as price, delivery reliability, delivery date adherence and quality of the item. There are any numbers of criteria that can be

used in a comparison and these are usually weighted so that important criteria are given more credence. For example, a company may decide that quality of the items it receives from vendors is more important than price, which in turn is more important that delivery reliability. The company would then weight these criteria so that the overall score reflects that requirement. Vendor evaluation is important as it can reduce supply chain costs and improve the quality and timeliness of the delivery of items to your company. The skill in evaluating vendors is to determine which criteria are important and the weighting that these criteria are given. It is important to remember that these criteria may be different for each item you are sourcing and possibly different between regions or countries. Objective data is useful to compare the information that you can obtain from each purchase order and goods receipt, but sometimes the subjective data that your purchasing agents can provide such as customer service and the willingness of the vendor to accommodate your requirements, is as or more important in a vendor evaluation. Various vendors rating: Vendor rating is the result of a formal vendor evaluation system. Vendors or suppliers are given standing, status, or title according to their attainment of some level of performance, such as delivery, lead time, quality, price, or some combination of variables. The motivation for the establishment of such a rating system is part of the effort of manufacturers and service firms to ensure that the desired characteristics of a purchased product or service is built in and not determined later by some after-the-fact indicator. The vendor rating may take the form of a hierarchical ranking from poor to excellent and whatever rankings the firm chooses to insert in between the two. For some firms, the vendor rating may come in the form of some sort of award system or as some variation of certification. Much of this attention to vender rating is a direct result of the widespread implementation of the just-in-time concept in the United States and its focus on the critical role of the buyer-supplier relationship. Most firms want vendors that will produce all of the products and services defect-free and deliver them just in time (or as close to this ideal as reasonably possible). Some type of vehicle is needed to determine which supplying firms are capable of coming satisfactorily close to this and thus to be retained as current suppliers. One such vehicle is the vendor rating. In order to accomplish the rating of vendors, some sort of review process must take place. The process begins with the identification of vendors who not only can supply the needed product or service but is a strategic match for the buying firm. Then important factors to be used as criteria for vendor evaluation are determined. These are usually variables that add value to the process through increased service or decreased cost. After determining which factors are critical, a method is devised that allows the vendor to be judged or rated on each individual factor. It could be numeric rating or a Likert-scale ranking. The individual ratings can then be weighted according to importance, and pooled to arrive at an overall vendor rating. The

process can be somewhat complex in that many factors can be complementary or conflicting. The process is further complicated by fact that some factors are quantitatively measured and others subjectively. Once established, the rating system must be introduced to the supplying firm through some sort of formal education process. Once the buying firm is assured that the vendor understands what is expected and is able and willing to participate, the evaluation process can begin. The evaluation could be an ongoing process or it could occur within a predetermined time frame, such as quarterly. Of course the rating must be conveyed to the participating vendor with some firms actually publishing overall vendor standings. If problems are exposed, the vendor should formally present an action plan designed to overcome any problems that may have surfaced. Many buying firms require the vendor to show continuing improvement in predetermined critical areas.

Q6. Explain how you would proceed in designing a waste disposal system for a steel plant. Solution: The world steel industry produces about 780 Mt of crude steel and simultaneously approximately 300 Mt of solid wastes products are also produced. Thus an average of about 400 Kg of solid by products is generated in the steel industry per tonne of crude steel. Major share of this (70-80%) consists of Blast Furnace Slag and basic Oxygen Furnace Slag. These wastes are an ecological hazard. The total steel production in India is about 25 million tones and the waste generated annually is around 8 million tones (considerably higher than the world average). Though the report has highlighted the associated ecological problems and suggested management, the main purpose of the report is to highlight the business opportunities available in utilization of the generated wastes into commercial products. Technologies have been developed in most the developed nations of the world for utilization of the generated wastes. and there are nations, which have total utilization of the wastes. In India though utilization of wastes have begun it is still quite some time before there is total utilization. The report has focused on the wastes generated quality and quantity- by integrated steel plants, secondary steel sector and electric arc furnaces in India. Technologies developed for utilization of the generated wastes into useful products have been covered along with the technology sources, in India and abroad, and estimated project costs. The report has also presented a plan for zero waste programme One of the major concerns of world steel industry is the disposal of wastes generated at various stages of processing. The global emphasis on stringent legislation for environmental protection has changed the scenario of waste dumping into waste management. Because of natural drive to be cost-effective, there is a growing trend of adopting such waste management measures as would convert wastes into wealth, thereby treating wastes as byproducts. This has led to aiming at of zero-waste technologies. The technologies developed to economically convert wastes of steel plants into wealth provide new business opportunities for prospective entrepreneurs. Such technologies which have been identified in the report through adequate deliberations are indicated below in two categories, namely technologies for gainful utilisation of wastes in manufacture of conventional products and those for gainful conversion of wastes into altogether new products

Ecological problems and their management The major solid wastes of steel plants that are dumped namely, BF sludge, spent refractories and fly ash, pose ecological problem and parallel initiatives are required for eco-friendly management of solid wastes. The following two ways have been identified and dealt with in this chapter for management of ecological problems. * Plantation for green cover * Plantation of flowering and tree species. There are conflicting reports of effects of soil amended by fly ash on vegetables. Pending confirmation and reconfirmation of no harmful effects on vegetables, fly ash is prohibited in production of vegetables or food grains. Therefore, fly ash may be used for plantation of flowering plants and tree species.

Practices and technologies of steel plant solid waste management. Practices and technologies of steel plant solid waste management have been classified into three groups as follows. Minimisation of wastes Recycling of wastes Reuse ( including sale to outside parties) of wastes For minimisation of wastes, minimisation measures have been indicated. For recycling / reuse, the technologies have been briefly described with the name of the developing agency and the commercial status in this chapter. Cost data for implementation of the technologies could not be made available, because, normally, foreign parties reply only to queries about specific projects. It is suggested that research proposals may be made for the technology packages involved for indigenous through technology absorption and commercialisation, end then exemplary facilities based on cost-effective technologies may be set up for other entrepreneurs to follow suit. Problems and prospects of managing key by-products which are substantially dumped at present like steelmaking slag, BOF dust/sludge, fly ash and spent refractories have been dealt with at length. Plan for zero waste programme It is emphasised that all the industries, including the steel industry, are to be committed to sustainable . Therefore, steel plants have no option but to plan immediately for a zero waste programme and implement the same. Aim of zero waste programme is make the total dumped quantity and so the individual waste quantities dumped to zero or near zero, or in other words, to produce 100% or almost 100% products. Wastes generated in all the model plants have been analysed and measures have been suggested to eliminate or minimize dumping.The chapter solicits initiatives from Govt. of India for creation of community cement plant to be built, owned and operated by a third party to take care of EAF slags and

community 2-stage Waelz kiln of adequate capacity to take care of zinc-rich EAF dust from a cluster of SSPs (EAF). To achieve the goal of zero waste programme on national basis as a part of sustainable initiative from Govt. of India is necessary to provide community ferruginous waste processing plants based on technologies like REDSMELT, FASTMET, ROMELT, Hamborn Shaft Furnace or process developed by RDCIS for utilisation of ferruginous wastes, to be built, owned and operated by third parties