Production and Operations Management Solved Assignment Set1 2011
Production and Operations Management Solved Assignment Set1 2011
Just-In-Time (JIT) manufacturing is a process by which companies don't keep lots of excess
inventory; instead, they manufacture a product as an order comes in. It is a management
philosophy of continuous and forced problem solving.
The objective of JIT manufacturing system is to:
Eliminate waste that is, minimise the amount of equipment, materials, parts, space, and
worker’s time, which adds a great value to the product
Increase productivity
JIT means making what the market demands when it is in need. It is the most popular systems
that incorporate the generic elements of lean systems. Lean production supplies customers with
exactly what the customer wants, when the customer wants, without waste, through continuous
improvement.
Deploying JIT results in decrease of inventories and increases the overall efficiencies.
Decreasing inventory allows reducing wastes which in turn results in saving lots of money.
There are many advantages of JIT. JIT:
Increases the work productivity
Reduces operating costs
Improves performance and throughput
Improves quality
Improves deliveries
Increases flexibility and innovativeness
For industrial organisations to remain competitive, cost efficiencies have become compulsory.
JIT helps in this process. It is extended to the shop floor and also the inventory systems of the
vendors. JIT has been extended to mean continuous improvement. These principles are being
applied to the fields of Engineering, Purchasing, Accounting, and Data processing.
However, for organisations to completely implement JIT manufacturing system, they need to
have a proper commitment along with the following basic facilities - proper material, quality,
equipment, and people involvement.
The consequent savings are to be utilised for reducing cost and rendering better service to the
customer. Shigeo Shingo an authority on JIT at Toyota classifies the wastes to be eliminated as
follows. (See Figure 13.1. Seven wastes)
The seven wastes to be eliminated according to JIT are:
1. Over production
2. Inventory
3. Waiting time
4. Movement
5. Effort
6. Defective products
7. Over processing
3. Waiting time: Waste of time happen when goods are not moving or being processed. The
operator, the machine or the part will either be not working or be worked upon. The duration of
waiting is can be said to be unproductive and may create more serious consequences.
4. Movement: Any unnecessary movement is a waste of energy; it causes blockages,
disrupting movements and delaying the flow of other items creating delays.
5. Effort: The people, who work, do not make a study as to how the products on which they are
making are utilised and do not realise the purpose for which they are made. This lack of
education will lead to waste of resources. Finally, they end up in shortage of resources when
needed.
6. Defective products: The defective products lead to a tremendous loss to the company. This
is because they use up the same equipments, workmen and the time that would be used to
make good products. Thus defective products use up resources and result in losses.
7. Over Processing: Some steps like unnecessary processing or production do not add value
to the final output. As a result, it is waste of all the inputs that go into the process.
Q2. What is Value Engineering or Value Analysis? Elucidate five companies which
have incorporated VE with brief explanation.
Value Engineering (VE) or Value Analysis is a methodology by which we try to find substitutes
for a product or an operation.
The concept of value engineering originated during the Second World War. It was developed by
the General Electric Corporations (GEC). Value Engineering has gained popularity due to its
potential for gaining high Returns on Investment (ROI). This methodology is widely used in
business re-engineering, government projects, automakers, transportation and distribution,
industrial equipment, construction, assembling and machining processes, health care and
environmental engineering, and many others. Value engineering process calls for a deep study
of a product and the purpose for which it is used, such as, the raw materials used; the processes
of transformation; the equipment needed, and many others. It also questions whether what is
being used is the most appropriate and economical. This applies to all aspects of the product.
Here are a few companies that implemented Value Engineering for providing value to their
customers.
1. Modi Xerox designed the VE-d low cost copier 1025 ST, which uses a single
tray. The advantage of new design is that it is easy to operate and the cost is
also very low.
1. Linear Programming: Linear programming technique is often used for optimising a given
objective like: profit or revenue maximisation, or cost outgo minimisation. Distribution of the
resources is the critical issue, when there are limited resources and they have to meet
competing demands.
5. Waiting Line Models: Queues are formed when the rate of service is at a variance with the
rate of arrival. They are formed when the rate of production is less at particular points compared
to the previous ones. Sometimes we see multiple service points and a single queue are formed
for feeding them. Number of items which includes the following is studied with some special
techniques.
People to be serviced
Rate of service
Type of queue discipline that is intended to be followed
Policy of priority
Tolerable amounts of waiting
Others
6. Simulation Models: Simulation models are used when we will not be able to formulate
mathematical models. So, we develop a model which resembles a real life situation. Based on
this pattern, we predict and plan our procurement, production, delivery and other actions.
7. PERT (Project Evaluation and Review Technique) and CPM (Critical Path Method)
Models: When projects are undertaken with a number of activities, some happens in sequence,
with gaps of weeks or months and some happens simultaneously. It is important to estimate the
time required for completion of the project. A lot of coordination is needed while supplying the
resources. It is also equally important to identify the bottlenecks and smoothen resources so
that time schedules are maintained. Delayed completion may entail penalties. In this model, we
adopt special methods to make the system efficient.
Work study
We say that work study is being conducted when analysis of work methods is
conducted during the period when a job is done on a machine or equipment. The study
helps in designing the optimum work method and standardisation of the work method.
This study enables the methods engineer to search for better methods for higher
utilisation of man and machine and accomplishment of higher productivity. The study gives an
opportunity to the workmen to learn the process of study thus making them able to offer
suggestions for improved methods. This encourages workmen participation and they can be
permitted to make changes and report the advantages that can be derived from those. This
course is in alignment with the principle of continuous improvement and helps the organisation
in the long run. Reward systems may be implemented for recognising contributions from the
workmen.
Work study comprises of work measurement and method study. Work measurement focuses on
the time element of work, while method study focuses on the methods deployed and
development of better methods.
Motion study
Motion study focus is on studying the method currently being used and developing a new
method of performing the task in a better way. Operation Flow charts, Motion Charts, Flow
Process charts, which are the elements of the task, are studied to find the purpose of each
activity, the sequence in which they are done, and the effect of these on the work. The study
may help in changing some of them and even eliminate some of them to effect improvements.
The new method should result in saving of time, reduced motions, and simpler activities.
Q3. What is Rapid Prototyping? Explain the difference between Automated flow
line and Automated assembly line with examples.
Rapid prototyping uses virtual designs from Computer Aided Design (CAD) or animation
modelling which transforms dimensional data to 3-dimensional views. The physical space of the
product is amenable to have cross sections made. Cross sections taken at very close positions
gives thin layers which enable the generation of a solid model of the designed product. The data
that is created helps build a solid model exactly as per the drawings. Any shape can be
generated in this method. Some of the other advanced Rapid Prototype Modelling Processes
are:
Selective Laser Sintering (SLS)
Fused Deposition Modelling (FDM)
Laminated Object Manufacture (LOM)
Electronic Beam Melting (EBM)
Since, the basis data about the product is already available in CAD; the above processes can
produce models in a matter of a few days. Conventional machines like lathes, milling machines,
grinding machines, Electro Discharge Machining (EDM) also help in the production of
prototypes. Due to their advantages, Rapid Prototyping is being increasingly used. A bi-monthly
magazine – TCT Magazine – calling the Rapid Prototyping as Time Compressing Techniques is
dedicated to the publication of latest developments in this field as researched and developed by
practitioners around the world.
The global trends are favouring flexibility in the manufacturing systems. The costs
involved in changing the set up of automated flow lines are high. So, automated
flow lines are considered only when the product is required to be made in high
volumes over a relatively long period. Designers now incorporate flexibility in the
machines which will take care of small changes in dimensions by making
adjustments or minor changes in the existing machine or layout. The change in
movements needed can be achieved by programming the machines. Provisions for
extra pallets or tool holders or conveyors are made in the original design to
accommodate anticipated changes. The logic to be followed is to find out whether
the reduction in cost per piece justifies the costs of designing, manufacturing, and
setting up automated flow lines. Group Technology and Cellular Manufacturing
along with conventional Product and Process Layouts are still resorted to, as they
allow flexibility for the production system.
Q5. Explain Break Even Analysis and Centre of Gravity methods. Explain
Product layout and process layout with examples.
Break-even analysis
Every manufacturing company will have three major contributors to cost:
1. Investments made for land, plant and machinery resulting in interest and depreciation
2. Recurring expenses, which are not proportional to the quantity of production
3. Variable costs, which are directly proportional to the quantities produced
For our calculations, we combine the first two costs together and call them fixed costs. We
call those costs that depend on the quantity of production as variable costs.
We compare the total costs for different locations on estimated amounts per
annum and select whichever location costs the least. However, we will have to
consider the possible variations in production levels during the foreseeable time
spans and take a decision.
It is better to locate the facility at such a place, which caters to the different points most
optimally. The vital factor is the load, that is, number of items, or the weights that need to be
moved from the central location to the existing or demanding points. We use this method when,
both distance and load have to be considered for optimality in terms of cost.
Product layout
Product layout is also called as production lines or assembly lines. They are designed and laid
out in such a way that only a few products are capable of being manufactured or assembled.
Materials flow through the various facilities. These use special machines to perform specific
operations to produce only one product at one time. So, companies should set different set of
machines for different products. Workers perform a narrow range of activities to complete the
operations on the product as it moves in a flow line. The operation times, the sequence of
movements and routing procedures are highly standardised to meet production requirements
which are synchronised with many such products to complete finished goods to meet demands.
Using special machines and implementing standardisation in operations have many advantages
which are listed below:
The skill required of the workers is low
Supervision is minimal
Training needs are small
Process layout
INCOMPLETE
Q6. Explain Juran’s Quality Trilogy and Crosby’s absolutes of quality. List out the
pillars of Total Productive Maintenance.
Juran uses his famous Universal Breakthrough Sequence to implement quality programmes.
The universal breakthrough sequences are:
Proof of need: There should be a compelling need to make changes.
Project identification: Here what is to be changed is identified. Specific projects with time
frames and the resource allocation are decided.
Top management commitment: Commitment of the top management is to assign people
and fix responsibilities to complete the project
Diagnostic journey: Each team will determine whether the problems result from systemic
causes or are random or are deliberately caused. Root causes are ascertained with utmost
certainty.
Remedial action: This is the stage when changes are introduced. Inspection, testing, and
validation are also included at this point.
Holding on to the gains: The above steps result in beneficiary results. Having records or
all actions and consequences will help in further improvements. The actions that result in the
benefits derived should be the norm for establishing standards.
1. Failure costs - Internal: These are costs of rejections, repairs in terms of materials, labour,
machine time and loss of morale.
2. Failure costs - External: These are costs of replacement, on-site rework including spare
parts and expenses of the personnel, warranty costs and loss of goodwill.
3. Appraisal costs: These are costs of inspection, including maintenance of records,
certification, segregation costs, and others.
4. Prevention costs: Prevention cost is the sequence of three sets of activities, Quality
Planning, Quality Control, and Quality Improvement, forming the triology to achieve Total
Quality Management.
Quality is the result of good planning considering the needs of both internal and external
customers and develops processes to meet them. The processes are also planned to meet
them.
Quality is built into the system of manufacture, inputs and processes that are on stream like
raw material, spare parts, labour, machine maintenance, training, warehousing, inspection
procedures, packaging, and others. All these have to follow standards and control exercises
to make sure that mistake do not occur often and that if mistakes do occur then they are
corrected at the source.
Quality improvement measures are essential to keep the quality culture alive. Newer
methods will be found, some operations can be eliminated, improved technology available. In
short, as experience is gained things can always be done better. It is for the management to
take the initiative and encourage the employees to be on the lookout for opportunities for
improvement.
Crosby also has given 14 points similar to those of Deming. His approach emphasises on
measurement of quality, increasing awareness, corrective action, error cause removal and
continuously reinforcing the system, so that advantages derived are not lost over time. He
opined that the quality management regimen should improve the overall health of the
organisation and prescribed a vaccine. The ingredients are:
1) Integrity: Honesty and commitment help in producing everything right first time, every time
2) Communication: Flow of information between departments, suppliers, customers helps in
identifying opportunities
3) Systems and operations: These should bring in a quality environment so that nobody is
comfortable with anything less than the best