MB0044 Production Operation Managemt

7/27/2019 MB0044 Production Operation Managemt

1/6

MB 0044 - Production and Operation Management

ASSIGNMENT- Set 1

NAME : AMIT PATHAK

ROLL NO : 1302016570

Q.1) State the important considerations for locating an automobile plant.

Answer-The general factors that influence the plant location are l isted as follows:

Ava il ab il it y of la nd Availability of land plays an important role in determining the plant location. On

several occasions, our plans, calculations and forecasts suggest a particular area as

the best to start an organisation. However availability of land may be in question. Insuch cases will have to ch oose the second best location.

Availability of Inputs

While choosing a plant location, it is very important for the organisation to get the labour at the

right time and good quality raw materials. The plant should be located:

Near to raw material source At the market place Close the market when universally available, so as to minimise the transportation cost.

Closeness to market places Organisation can choose to locate the plant neat to the customers market or far from them,

depending upon the product they produce. It is advisable to locate the plant near to the market

place, when:

The projected life of the product is low The transportation cost is high The products are delicate and susceptible to spoilage After sales services have to be prompt

Communication facilities

Communication facility is also an important factor which influences has location of a plant. Regions

with good communication facilities namely postal and tele communication links should be given

priority for the selection of sites.

Infrastructure Infrastructure plays a prominent role in deciding the location. The basic

infrastructures needed in any organisation are:

Power foe example, Industries which run day and night require continuous power supply.So they should be located near the power station and should ensure continuous powersupply throughout the year.

Water For example, process industries such as, paper, chemical, and cement requirecontinuous wter supply in large amount. So such process industries need to be located nearthe source of water supply.


2/6

Waste disposal for example, for process industries such as paper and sugarcaneindustries, facility for disposal of waste is the key factor.

Government support The factor that demand additional attention for plant location arethe policies of the state governments and local bodies concerning labour laws, building

codes, and safety.

Housing and recreation Housing and recreation factors also influence the plant location.Locating a plant with or near to the facilities of good schools, housing and recreation foremployee will have a greater impact on the organisation.

Q2 Explain essentials of Project Management Philosophy

Answer-Project management is defined as the act of assembling people to systematically achieve a

shared goal, and then it has existed since ancient history. Think of the Egyptians erecting the Great

Pyramid.Of Giza or the first Emperor of China commanding the manual labour of millions to build

the Great Wall of China. Despite new method developments and technology changes over

time, project managementhas kept its core goal intact: to deliver successful projects in a clear and

effective way.

Project management is all about the mindset.

Time: It is an important parameter in farming the right mindset. It is possible to improve the pace

of the project by reducing the time frame of the process. The mindset is normally to work out a

comfort mode by stretching the time limits.

Responsiveness: Responsiveness refers to the quickness of response of an individual. The vibrancy

and liveliness of an individual or an organisation are proportional to its capabilities to respond to

evolving process and structure.
http://www.mavenlink.com/http://www.mavenlink.com/http://www.mavenlink.com/http://www.mavenlink.com/


3/6

Information sharing: Information is power. Information is the master key to todays business.

Information sharing is an important characteristic of the project mindset today. A seamless flow of

information is the key to build a healthy mindset among various stakeholders in a project.

Processes: 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 greater capabilities of adaptability.

Structured Planning: Structured planning based on project management life cycle enables one to

easily and conveniently work according to the plan. It also enables efficient use of project resources

and prioritisation of the activities based on resource planning.

Hence, having a right mindset and flexible process in place is very important for sound projectmanagement.

Q3.Several different strategies have been employed to assist in aggregate planning. Explain these inbrief.

Answer -1. Pure Strategies:-

There are three focused or pure strategies are

Vary production to match demand by changes in employment. Produce at a constant rate and use inventories. Produce with stable workforce but vary the utilization rate.

2In this strategy the production output is increased or decreased according the demand. This is

possible if workers are added or removed to vary the input capacity. It also means that if the systemis dominantly automated then it will be either under or over-utilised as the as the situation

demands.

3.Level production Strategy:-

In this case, the production output is held constant irrespective of the changes in demand fromperiod to period. Usually, the average demand is taken as the constant output. When the demand

exceeds the average output, in some months there is shortage and when the output is above theaverage there is surplus and build-up of inventory. However, wherever possible excess output can

be used to accumulate inventory and that inventory is maintained

4.Stable work-force Strategy:-

In this strategy the work force is maintained at the same level on regular time. Production output isvaried either by overtime or by building up inventory. However, if the demand falls then the

production output is decreased and some workers may become idle.

5. Mixed Strategies:-

In mixed strategies, the aggregate planner has a wide variety of choices by mixing to or

more strategy. The number of mixed strategies in alternative production plans is almost limitless.

However, based on the realities of the situations, the number of practical solutions is limited.


4/6

6Mathematical models

Mathematical models attempt to refine or improve upon the trail-and-error approaches. However,

the solution generated May not be feasible and need to be refined. A popular technique is the

application of transportation algorithm which is a special case of the linear-programming model. It

views the aggregate planning problem as the linear-programming model. It views the aggregated

planning problem as the problem of allocating capacity to meet the forecast requirement where

supply consists of the inventory on hand and units that can be produced using regulartime, overtime and subcontracting etc.

Q4. Illustrate the different methods by which quality is sought to be achieve using various

tools and techniques

Ans) Quality control techniques are specific and procedures adopted using data, foe

determining a particular aspect of quality to arrive at decisions which are conclusive. Eachtechnique developed and tested by senior personnel or consultants will be simple enough to be

understood, implemented and interpreted by the personnel for their immediate use. Some of the

quality control techniques are:

1. Quality at the source.

2. Quality control tools

.3. Acceptance sampling.

Quality at the source:-The concept of quality makes the production worker responsible for

inspecting his /her own work and for taking corrective actions .since inspection is done

immediately after a job is done,finding the cause of the error with clarity aids in faster rectification.

Every worker has the authority to stop production, if he /she find some serious defect .This puts

responsibility for quality on the workers and gives them pride their work. Help should always beavailable from the quality control personnel to help workers understand the implications of the

above actions. This brings cooperation and improves the achievement. The informationgenerated

may be used to effect improvements at the suppliers end also. The entire process brings inopenness, commitment, participation and helps in achieving quality.

Quality control tools: The most popular and widely used tools are called as 7 QC tools. These includesthe following

Flow chart

Check sheet

Histogram

Pareto analysis

Scatter diagram

Control chart

Aceptancesampling

Accepting sampling is also known as end if line inspections and categorizing the products based on

sample based inspection. In accepting sampling method of quality control ,the supplier and


5/6

customer agree upon accepting a lot by inspecting a small number as agreed upon by the parties

or as validated by sampling scheme , is determined as defective, the lot is accepted. If the number of

defectives is more than the agreed size, the entire lot is rejected. Obviously, risks for the producer

and buyer exit. As samplesize increase and the number of acceptable defectives decreases, the risk

for the buyer decreases. And converse is true. That is the reason these number cannot be fixed

asthey depend on the customers requirements.

Q5.Explain the basic competitive priorities considered while formulating operations

strategy by a firm?

Answer-Operations strategy advantages depend on its processes and competitive priorities

considered while establishing the Capabilities. The basic competitive priorities are:

1. COSTCost is one of the primary considerations while marketing product or a service. Being a low cost

producer, accepted by the customer offers sustainability and can outperform competitors. Lower

prices and better quality of a product will ensure higher demand and higher profitability.

2. QualityQuality is defined by the customer. The operation manager looks into two important aspects

namely high performance design and consistent quality. High performance design includessuperior features, greater durability, conveniences to services etc.

3. Time

Faster delivery time, on time delivery, and speedy development cycle are the time factors

that Operations strategy looks into. Faster delivery time is the time elapsed between the

customer order and delivery. On time delivery is the frequency with which the product is delivered

on time.

4. Flexibility

Flexibility is the ability to provide a wide variety of products, and it measures how fast themanufacturers can its process line used for one product to produce another product after making

the required changes. The two types of flexibility are

Customizations.

Volume flexibility.

Q6. Explain briefly the four classification of scheduling strategies?

Ans) Scheduling strategy differs from organisation to organisation as it depends on the quantum of

production, size and type of production, companys policy priorities, etc. Most\t of these strategiesare concerned with job shop production since the problem encountered is more when more than

one product is produce in the same plant.

Following are classification:

Detailing scheduling

Cumulative scheduling

Cumulative-detailed scheduling

Priority decision riles.


6/6

Detail Scheduling

All job orders from customers are scheduled to last details. This may not be practical in case

disruptions are there in production line like machine breakdown, absenteeism, etc.

Cumulative Scheduling

The customer orders are pooled to form a cumulative work load and then matched with the

capacity. The work load is then allocated in such a way that immediate periods get allocated to

maximum capacity.

Cumulative detailed combination

This combines both the earlier strategies of firm and flexible nature of work load. Cumulative work

load projections can be used to plan for capacity as needed. As change happens during the week, thematerials and capacity requirement are updated. The actual time allocated to the specific job at

each work centre is as per the standard hours needed. This is tuned further with the requirementsof the master schedule.

Documents

MB0044 Production Operation Managemt