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SIKKIM MANIPAL UNIVERSITY DEPARTMENT OF DISTANCE EDUCATION ASSIGNMENT SEMESTER 2 FULL NAME ROLL NUMBER LEARNING CENTER SUBJECT NAME : Galchar Pankaj N : 521113886 : 1771 : Production and Operations Management : MB0044 : B1133 : SET 1

SUBJECT CODE BOOK ID MODULE NO

DATE OF SUBMISSION AT THE LEARNING CENTRE : 19-June-2012 FACULTY SIGNATURE :

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Master of Business Administration-MBA Semester 2nd MB0044 Production and Operations Management 4 Credits Assignment Set- 1
Q1. Explain briefly the computer integrated manufacturing. Ans :Introduction In this unit, we discuss advanced technologies of production; use of Computer Aided Design (CAD) and Computer Integration Manufacturing (CIM) to facilitate production. Classification of material, their storage, and how assembly lines are fed with picking materials using mechanised systems for achieving high efficiencies are also discussed. Also discussed are the costs at various stages and the way a balance is struck for optimisation. Computer integrated manufacturing (CIM) Integration occurs when a broad range of manufacturing and supporting activities are linked. CIM is the complete automation of a manufacturing plant, with all processes functioning under computer control and digital information tying them together. The three major functions in manufacturing are production, design, and management function. Production function converts resources into products. The design function transforms customer specifications into design. Finally the management functions plan and control production activities. The three computer aids in CIM are: Computer aid to the production function (automated flow of materials) Computer aid to the design function (automated flow of technological information) Computer aid to the management function (automated flow of managerial information) When it comes to production, CIMs are included in different areas of production process such as in engineering design, production planning, shop control, order processing, material control, distribution and many other areas. Information flow across all the functions takes place with the help of computers. Transmission, processing, distribution, and feedback happen almost in real time so that intended activities are conducted rapidly

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CIM process helps in rapid production and also reduces indirect costs. CIM uses computers to control the entire production process. This integration allows the processes to exchange information with each other and thus they become capable of initiating actions. As response times decrease, customer satisfaction increases resulting in better business. CIM helps in avoiding accumulation of materials resulting in better throughput and better utilisation of space. Bar coded labels that accompany materials contain instructions for processing them which are read by sensing devices and display the status on monitors. This information is available to all concerned personnel responsible in planning, marketing and other activities so that they will be aware of the status of any order. If expediting is needed to meet deadlines, they will be able to seek intervention. Identifying shortages and ensuring faster deliveries become easy with CIM.

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Q 2 What are the automation ? what are the kinds of automation? Ans:Definition
It is a technology dealing with the application of u mechatronics u computers for production of goods and services. Automation is broadly classified into u manufacturing automation u service automation Examples: l robots, CNC machine tools, ASRS, security systems, CAD/CAM systems, logistics support tools, automated inspection systems, material handling systems

Types of Automation

Fixed automation u custom-engineered, special-purpose equipment to automate a fixed sequence of operations high production rates, inflexible product design Programmable automation u equipment designed to accommodate a specific class of product changes l batch production, medium volume Flexible automation u designed to manufacture a variety of products or parts l low production rates, varying product design and demand

Fixed automation u custom-engineered, special-purpose equipment to automate a fixed sequence of operations l high production rates, inflexible product design Programmable automation u equipment designed to accommodate a specific class of product changes

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Pank9033@gmail.com l batch production, medium volume Flexible automation u designed to manufacture a variety of products or parts l low production rates, varying product design and demand Types of Automation Attributes and advantages l Fixed: GE 1.5 billion light bulbs per year l Programmable: CNC machines used in batch production l Flexible: Honda (113 motorcycle models in 18 months)

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Q 3 What are the factors that influence the plant location? Ans:Factors influencing plant location:1. Nature of the product: The nature of the product to be manufactured will significantly affect the layout of the plant. Stationary layout will be most suitable for heavy products while line layout will be best for the manufacture for the light products because small and light products can be moved from one machine to another very easily and, therefore, more attention can be paid to machine locations can be paid to machine locations and handling of materials. 2. Volume of production: Volume of production and the standardization of the product also affect the type of layout. If standardized commodities are to be manufactured on large scale, line type of layout may be adopted. 3. Basic managerial policies and decisions: The type of layout depends very much on the decisions and policies of the management to be followed in producing the commodity with regard to the size of plant, kind and quality of the product, scope for expansion to be provided for, the extent to which the plant is to be integrated, amount of stocks to be carried at anytime, the kind of employee facilities to be provided etc. 4. Nature of plant location: The size shape and topography of the site at which the plant is located will naturally affect the type of layout to be followed in view of the maximum utilization of the space available .For e.g., if a site is near the railway line the arrangement of general layout for receiving and shipping and for the best flow of production in and out the plant may be made by the side of the railway lines .If space is narrow and the production process is lengthy, the layout of plant may be arranged on the land surface in the following manner: 5. Type of industry process: This is one of the most important factors influencing the choice of type of plant layout. Generally the types of layout particularly the arrangement of machines and work centers and the location of workmen vary according to the nature of the industry to which the plant belongs. For the purpose of lay out, industry may be classified into two broad categories: (i) Intermittent and (ii) continuous. Intermittent type of industries is those, which manufacture different component or different machines. Such industries may manufacture the parts, when required according to the market needs. Examples of such industries are shipbuilding plants. In this type of industry functional layout may be the best. The second type of industry in continuous industry. in this type of industry raw material are fed at one end and the finished goods are received at another end. A continuous industry may either be analytical or synthetic. A analytical industry breaks up the raw material into several parts during the course of production process or changes its form, e.g. oil and sugar refineries. A synthetic industry on the other hand mixes the two or more materials to manufacture one product along with the process of production or assembles several parts to get finished product. Cement and automobiles industries are the examples of such industry. Line layout is more suitable in continuous process industries.

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6. Types of methods of production: Layout plans may be different according to the method of production proposed to be adopted. Any of the following three methods may be adopted for production- (1) Job order production, (2) batch production, and (3) mass production. Under job production goods are produced according to the orders of the customers and therefore, specification vary from customer to customer and the production cannot be standardized. The machines and equipment can be arranged in a manner to suit the need of all types of customers. Batch production carries the production of goods in batches or group at intervals. In this type of manufacturing the product is standardized and production is made generally in anticipation of sales. In such cases functional or process layout may be adopted. In case of mass production of standardized goods, line layout is most suitable form of plant layout. 7. Nature of machines: Nature of machines and equipment also affects the layout of plants. If machines are heavy in weight or create noisy atmosphere, stationery layout may reasonably be adopted. Heavy machines are generally fixed on the ground floor. Ample space should be provided for complicated machines to avoid accidents. 8. Climate: Sometimes, temperature, illumination and air are the deciding factors in the location of machines and their establishments. For example, in lantern manufacturing industry, the spraypainting room is built along the factory wall to ensure the required temperature control and air expulsion and the process of spray painting may be undertaken. 9.Nature of material: Design and specification of materials, quantity and quality of materials and combination of materials are probably the most important factors to be considered in planning a layout. So, materials storage, space, volume and weight of raw materials, floor load capacity, ceiling height, method of storing etc. should be given special consideration. This will affect the space and the efficiency of the production process in the plant. It will facilitate economic production of goods and prompt materials flow and soundly conceived materials handling system. 10. Type of machine: Machines and equipment may be either general purpose or special purpose. In addition certain tools are used. The requirements of each machine and equipment are quite different in terms of their space; speed and material handling process and these factors should be given proper consideration while choosing out a particular type of layout. This should also be considered that each machine and equipment is used to its fullest capacity because machines involve a huge investment. For instance, under product layout, certain machines may not be used to their full capacity so care should be taken to make full use of the capacity of the machines and equipment. 12. Human factor and working conditions: Men are the most important factor of production and therefore special consideration for their safety and comforts should be given while planning a layout, specific safety items like obstruction-free floor, workers not exposed to hazards, exit etc. should be provided for. The layout should also provide for the comforts to the workers such as provision of rest rooms, drinking water and other services etc. sufficient space is also to be provided for free movement of workers.

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Q 4 Describe the seven basic quality control tools? Ans:Quality control tools : Flow Chart, Check sheet, Histogram, Pareto Analysis, Scatter Diagram, Control Chart, and Cause and Effect Diagram are the basic seven control tools considered for achieving quality

a) Flow Chart: Flow chart is a visual representation of process showing the various steps. It helps in locating the points at which a problem exists or an improvement is possible. Detailed data can be collected, analysed, and methods for correction can be developed using flow charts. The various steps include: Listing out the various steps or activities in a particular job Classifying them as a procedure or a decision

Each decision point generates alternatives. Criteria and consequences that go with decisions are amenable to evaluation for purposes of assessing quality. The flow chart helps in pin-pointing the exact points at which errors have crept in.

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Pank9033@gmail.com b) Check Sheet: Check sheets are used to record the number of defects, types of defects, locations at which they are occurring, times at which they are occurring, and workmen by whom they are occurring. The sheet keeps a record of the frequencies of occurrence with reference to possible defect causing parameters. It helps to implement a corrective procedure at the point where the frequencies are more c) Histogram Histograms are graphical representations of distribution of data (See Figure 6.4 for Sample histogram chart). They are generally used to record huge volumes of data about a process. They reveal whether the pattern of distribution has a single peak, or many peaks and also the extent of variation around the peak value. This helps in identifying whether the problem is serious. When used in conjunction with comparable parameters, the visual patterns help us to identify the problem which should be attended to.

The values shown are the number of observations made regarding a parameter. Sometimes, the percentages are shown to demonstrate the relative contribution of each of the parameters.

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Pank9033@gmail.com d) Pareto Analysis: Pareto analysis is a tool for classifying problem areas according to the degree of importance and attending to the most important. Pareto principle, also called 8020 rule, states that 80 percent of the problems that we encounter arise out of 20 percent of items. If we find that, in a day, we have 184 assemblies having problems and there are 11 possible causes, it is observed that 80 percent of them, that is, 147 of them have been caused by just 2 or 3 of them. It will be easy to focus on these 2 or 3 and reduce the number of defects to a great extent. When the cause of these defects has been attended, we will observe that some other defect becomes predominantly observed and if the process is continued, we are marching toward zero defects. e) Scatter Diagram: Scatter diagram is used when we have two variables and want to know the degree of relationship between them (See Figure 6.5 for Sample scatter diagram). We can determine if there is cause and effect relationship between the variables and the degree of extent over a range of values of the variables. Sometimes, we can observe that there is no relationship, in which we can change one parameter being sure that it has no effect on the other parameter. f) Control Charts: Control charts are used to verify whether a process is under control. Variables, when they remain within a range, will render the product and maintain the specifications. This is called the quality of conformance. The range of permitted deviations is determined by design parameters. Samples are taken and the mean and range of the variable of each sample (subgroup) is recorded. The mean of the means of the samples gives the control lines. Assuming normal distribution, we expect 99.97 percent of all values to lie within the Upper Control Limit (UCL) and Lower Control Limit (LCL) corresponding to process closer to the target. g) Cause and Effect Diagram: Cause and effect diagram represents all the possible causes which lead to a defect on quality characteristics. These are arranged in such a way that different branches representing causes connect the stem in the direction of the discovery of the problem (See Figure for Sample cause and effect diagram). When each of them is investigated thoroughly we will be able to pin-point some factors which cause the problem. We will also observe that a few of them can have cumulative effect or even a cascading effect.

When we observe that we have excessive defects from a machine, we try to identify all possible sources of the causes of defects. We make a study of each of them and try to correct it.

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Q 5. Define project management.describe the five dimension of project management . Ans:Introduction A production centre cannot work without proper planning. The processes necessary for the planning is identified and explained in the form of various concepts. One has to understand the process as a synonym for managing a project. In this unit, you will learn

Project Management by way of definitions and explanations of the various steps involved. You will also understand the important issues related to Human Resources, which forms a much greater part of Project Management. It is to be remembered that, people have to take the initiative to drive processes. Only then the system will take the initiative to drive the people.
Definition of Project Management : Managing a project is the practice of controlling the use of resources, such as cost, time, manpower, hardware, and software involved in the project. It usually starts with a problem statement and ends with delivery of a complete product Some of the other definitions of project management are shown below. Project management is the complete set of tasks, techniques, and tools applied during project execution . DIN 69901 (German Organisation for Standardisation) Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. PMBOK (Project Management Body of Knowledge, defined by Project Management Institute (PMI)) Project Management Principles : Project management can be considered to have five dimensions which are necessary to be managed. The dimensions are Features, Quality, Cost, Schedule, and Staff.

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The five dimensions of project management are dependent of one another. For example, if you add staff, the schedule may shorten and the cost might increase. The trade-offs among the five dimensions of project management are not linear. For each project, you need to decide which dimensions are critical and how to balance the others so as to achieve the key project objectives. Each of the five dimensions can take one of three roles on any given project: 1. Drive: A driver is a key objective of the project. It has low flexibility towards the project team. 2. Constraint: A constraint is the limiting factor beyond the control of project team. It gives the project team virtually no flexibility. 3. Degree of Freedom (DoF): Any project dimension that is neither a driver nor a constraint becomes a degree of freedom. A degree of freedom provides wider latitude towards the project team for balancing that dimension against the other four. An important aspect of this model is not which of the five dimensions turn out to be drivers or constraints on any given project, but that the relative priorities of the dimensions be negotiated in advance by the project team, customers, and management. A graphical way to depict these points is to use a Kiviat diagram. (See Figure 8.3 Kiviat graphical representation) A Kiviat diagram is a graph which allows us to plot several values of a project. The Kiviat graph is a useful tool in project management to compare the relative flexibility of the parameters considered. In this case, the five parameters (features, quality, cost, schedule, and staff) of project management can be graphically represented as an irregularly shaped polygon on a set of normalised axes. The position of each point on its axis indicates the relative degree of flexibility of that dimension for a particular project. It is plotted on an arbitrary scale of 0 10. 0 would indicate completely constrained 10 would indicate - completely flexible

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Q 6. What is meant by supply chain management (SCM)?what are the objectives of SCM? Ans:Introduction Supply Chain Management (SCM) is considered by many experts worldwide as the ultimate solution towards efficient enterprise management. Many management failures have been attributed to the lack of a system to bind various sub-systems within a geographically widespread enterprise, which true to modern trends, also includes an umbrella of customers, suppliers and associates. Managers of tomorrow are therefore, expected to raise themselves above the level of perpetual crisis management to one of proactive, predictive, and performance-oriented Supply Chain Management A global perspective SCM is the practice of coordinating the flow of goods, services, information, and finances as they move from raw materials to parts supplier to manufacturer to wholesaler to retailer to consumer. This process includes order generation, order taking, information feedback and the efficient and timely delivery of goods and services. In the simplest terms, SCM lets an organisation get the right goods and services to the place they are needed at the right time, in the proper quantity and at an acceptable cost. Efficiently managing this process involves overseeing relationships with suppliers and customers, controlling inventory, forecasting demand and getting constant feedback on what is happening at every link in the chain. Need and objectives SCM is required by an enterprise as a tool to enhance management effectiveness with the following organisational objectives: Reduction of inventory Enhancement of participation level and empowerment level Increase in functional effectiveness of existing systems like Enterprise Resource Planning (ERP), Accounting Software, and Documentation such as Financial reports/ Statements/ISO 9000 Documents Effective integration of multiple systems like ERP, communication systems, documentation system and security Design / Research & Development (R&D) systems Better utilisation of resources like men, material, equipment, and money Optimisation of money flow cycle within the organisation as well as from external agencies Enhancement of value of products, operations, and services. These enhancements will consequently enhance the profitability of organisation Enhancement of satisfaction level of customers and clients, supporting institutions, statutory control agencies, suppliers and vendors, employees and executives

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Pank9033@gmail.com Enhancement of flexibility in the organisation to help in easy implementation of schemes involving modernisation, expansion and diversification even divestments, mergers and acquisitions Enhancement of coverage and accuracy of management information systems

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