MB0044 - PRODUCTION AND OPERATION MANAGEMENT

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Summer 2013

MBA II SEMESTER

MB 0044 - PRODUCTION AND OPERATION MANAGEMENT - 4 CREDITS

(BOOK ID B1627)

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q1. Explain the four basic varieties of layouts for manufacturing facilities.

(Process layout – 4 marks; Product layout- 3 marks; Group technology layout – 2 marks; Fixed position layout – 1 mark) 10 marks

Answer :  Basic varieties of layouts for manufacturing facilities:

Facility layout means planning for the location of all machines, utilities, employee workstations, customer service areas, material storage areas, aisles, rest rooms, lunch rooms, drinking fountains, internal walls, offices, and computer rooms, and for the flow patterns of materials and people around, into, and within buildings.

1. Process layout :

Q2. The major decision areas in supply chain management have both strategic and operational elements .Explain these decision areas in detail.

(Location decisions; Production decision; Inventory decisions; Transportation decisions- 10 marks, i.e 2.5 marks each)10 marks

Answer : The major decision areas in supply chain management:

Location decisions:

The geographic placement of production facilities, stocking points, and sourcing points is the natural first step in creating a supply chain. The location of facilities involves a commitment of resources to a long-term plan. Once the size, number, and location of these are determined, so are the possible paths by which the product flows through to the final customer. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets, and will have a considerable impact on revenue, cost, and level of service.

Q3. Business process is a total response that a business undertakes utilizing the resources and delivering the outputs that create a value for the customer. Business process modeling refers to a set of activities undertaken to optimize the business process. Business process modeling can be categorized into two parts – Logical processing modeling and physical process modeling. Explain in detail of the two processes of modeling.

(Logical processing modeling : Definition – 1 mark , Steps to be followed to make the work smoother – 2 marks, Explanation of logical process model including what it consists of , represents, improves and identifies; logical modeling formats ;ways of representing logical process modeling – 4 marks; physical process modeling including definition, what it deals with , why objects during physical modeling vary on the database software being used, outcomes- 3 marks) 10 marks

Answer : Logical processing modeling:

Logical Process Modeling is the representation of a business process, detailing all the activities in the process from gathering the initial data to reaching the desired outcome. Logical process modeling methods provide a description of the logical flow of data through a business process.

Steps to be followed to make the work smoother:

These are the kinds of activities described in a logical process model:

Q4. In the recent times, operations are considered from end to end of value chain which means the operations that start from sourcing of materials and other inputs to successful delivery of products to customers or end users. Implementation is the process of executing the planned operations. When planning and controlling functions are put together, we call it as Implementation of Operations. Tools for implementation are a set of

specialized techniques which can be standardized for ease of implementation and control . Write a brief note on “implementation of operations” and tools for implementation.

(Explanation of planning , controlling – 1 mark; Implementation of operations :Estimating, Routing, Scheduling, Dispatching and Expediting – 5 marks, i.e. 1 mark each , Tools for implementation : Gantt charts – 1 mark, Line balancing and line of balance – 0.5 marks, Simulation models – 1 mark , Proper maintenance and analysis of records – 0.5 marks; software – 1 mark)

Answer : Planning and controlling functions of operation management :

Planning means looking ahead and chalking out future courses of action to be followed. It is a preparatory step. It is a systematic activity which determines when, how and who is going to perform a specific job. Planning is a detailed programme regarding future courses of action. While Controlling consists of verifying whether everything occurs in conformities with the plans adopted.

Q5. It is possible to work according to the project plan only by careful monitoring of the project progress. There are various steps involved in monitoring and controlling a project from start to end. One of the steps is progress control of a project which can be achieved by completing certain steps. Explain the steps of progress control.

(Monitor performance, Update schedule, Update costs, Re-plan stage schedule, Conduct team status review, Create status report, Create flash report, Project status reports - 10 i.e. 1.25 marks each) 10 marks

Answer :  Steps of progress control:

The project progress depends on many factors. All the factors contribute equally in monitoring and controlling the project. The step of progress control is the important one. The progress control of a project can be achieved by considering the following:

1. Monitor performance:

The first step for any project control mechanism is to monitor the progress. There are numerous ways to monitor and measure various project parameters.

Q6. Value analysis is a methodology by which we try to minimize the cost and improve the revenue of a product or an operation. Value analysis looks at the manufacturing activities with a view to make the components simpler, processes faster, and the products better. Explain the process of value analysis.

(Explanation of steps : Data gathering, Analysis and valuation of functions, Idea generation and evaluation of substitutes, Implementation and regulation – 10 marks i.e.2.5 marks each )

Answer : Process of value analysis :

There are four steps involved in the process of value analysis.

1. Data gathering:

All relevant information concerned with the product and the parts that go to make it are collected. The concerned at this stage are raw material used, its dimensions , characteristics, availability , lead time , storage and rate of consumption. All questions regarding each of them are asked. The available information is recorded and when information is not available , tags can be attached for information gathering at later date. No information should be considered irrelevant.

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