SPRING ASSINGMENT

PRODUCTION AND OPERATION MANAGEMENT

MB 0046/MBF 202
Nandeshwar Singh
Roll no. 1408001255

Q1, Write a short note on:

• Environment scanning as a basis for strategic decision making

• Tools for the implementation of operation

• Differentiation strategies on the basis of decision making

• Core competencies as basis of decision making.

Answer. 1.

2. Tools of operation strategy are as following:

A, Designing of the production system- The designing of the production system

involved the selection of the type of product design, processing system, inventory plan for
finished goods, etc. The product design has two variables. They are:

Customized product design – The design is customized when the volume is low and
special features are inbuilt. Eg.Industrial products like, turbines, boilers, air compressors, etc.

Standard product design – The designer adopt a universal design so that the product
will have wide acceptance across the customers. Also the demand is more and quantity is
high. Examples: Air conditioners, TV, fans, etc.

B. Facilities for production and services -Certain specialization allow the firm to
provide the customers with product of lower cost, faster delivery, on time delivery, high
product quality and flexibility. Here, overheads will be less and the firm can outperform
compared to the competitors. While planning the specialized lines, the economies of scale
and the continuous demand are to be looked into.
C. Product or service design and development – The stages followed in
developing a product are:

• Generating the idea.

• Creating the feasibility reports.

• Designing the prototype and testing

• Preparing a production model

• Evaluating the economies of scale of production

• Testing the product in the market

• Obtaining feedback

• Creating the final design and starting the production

• Technology selection and process development – There are many

challenges faced by the operation mangers in this design as the alternative are many.
The techno-economic analysis for each alternative will help to decide the required
technology. Combining high technology production equipments with conventional
machines and using robotics, flexible manufacturing systems, etc.

• Allocation of resources – The production unit face continuous problems of

allocating the scarce resources like capital, machines, equipments, materials,
manpower, services, etc Allocation at the right time to the right place of production
indicates the efficiency of production planners.

4. The operation strategies are evolved based on the business strategies. Some of the business
strategies that have a direct bearing to manufacture are:

• To serve a defined product to the stable market.

• To provide high product variety and customize the design to meet the specific
requirements.

• To provide rapid response to the market through in-built flexibility and produce
different products to keep abreast with the environmental changes.
Q2. A. What is Forecasting?

B. What are the benefits of Forecasting?

C. What is the Cost Implication of forecasting?

D. List the different types of forecasting?

Answer. A. Forecasting is synonymous with estimating and prediction, though forecasting is

considered to be more scientific rather than a crude or vague guesswork. Forecasting may
involve taking historical data and projecting then into the future with some sort of mathematical
model. It may be a subjective or an intuitive prediction.

B. Benefits of Forecasting – Forecasting Basically help to overcome the uncertainty about

the demand and thus provide a workable solution. Without the forecast, no production function
can be taken up. Hence, It can be stated that forecasting help to:

• Improve employee relations

• Improve materials management

• Get better use of capital and facilities

• Improve customer service

C. Cost implication of forecasting – Forecasting requires special efforts and involves

inputs from experts which cost a lot to the companies. Well-trained experts and associations’
sustainably invest in human resources and hence charge their clients for the service rendered.
Thus, forecasting done in-house or carried out extremely require significant investments.
Because of improved accuracy and better judgment, the losses that would occur because of poor
forecasting would be decrease as more efforts are put in for forecasting. Hence, higher the
efforts’ lower will be the losses. The cost will go increase with increase in the forecasting efforts.

It understood that to keep the total cost of forecasting to a minimum, it is necessary that the
forecasting efforts has to be raised up to the level at which certain uncertainty is acceptable and
hence, there is preparedness for some possible loss. On the other hand, It doesn’t make sense to
increase the efforts are subject to market dynamics and many other unpredictable parameters
which will not be know nor controllable.
D. There are different types of forecasting are as following:

1. Quantitative (Statistical Forecasting) Method –

Time series analysis Causal methods

Moving averages Regression analysis

Exponential moving averages Input – output model

Box- Jenkins methods leading indicators

Trend projections Simulations model

Fourier series Economic model

2. Qualitative (Subjective estimation) –

The different qualitative methods of forecasting are as follows:

• Market surveys

• Nominal group testing

• Historical analysis

• Jury of executive opinion

• Life style analysis

• Delphi methods
Q3. Describe the process o Value Analysis?
Answer. The process of value analysis can be divided into the following four steps:

1. Data gathering – All relevant information concerned with the product and the parts
that go to make it are collected. The concerns at this stage are the raw materials used, its
dimensions, characteristics, availability, and lead time, and price, mode of transport,
storage, and the 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 fir information gathering at a later date. No information should be considered
unimportant or irrelevant. It will be advantageous to record the source of information.

Value Analyzing

Data gathering

Analysis and Valuation of function

Idea Generation and Evaluation of substitutes

Implementation and regulation

2. Analysis and valuation of functions – They are categorized as basic functions

and secondary functions. The description should be cryptic – two or three words. If there
are many functions that any part has to perform – weight age may be given to each of
them. Considered with the cost of the part and the weight, each function gets a value
attached to it.

3. Idea generation and evaluation of substitutes – The next step is identifying the
material or process that is amenable to the application of value engineering. Since there
are a number of factors to be considered and to break away from the conventional
 thinking, brain storming is preferred. Ideas are allowed to be worth more detail evolution.
Debates about suitability of any particular change envisaged are conducted. Facts are
analyzed and consensus arrived as to what can be attempted.

4. Implementation and regulation – The decision taken after evaluation is conveyed

to the top management and clearance are obtained for implementation. Teams are formed
for each implementation and concerned persons are involved and educated about the
implementing change. Their cooperation is necessary for the change to be effective. If
any small changes are necessary when a few trails are taken, they should be considered.
After successful implementation, the change – material change or the process change
becomes the new norm or standard for further operations. The methodology adopted is on
the line of continues improvement.

Q4. What do you understand by “Line balancing”? What happens if balance

doesn’t exist?

Answer. A simple line consists of a series of work stations, and the total work content of the
product, which is expressed in terms of the total time, is divided among these workstations
equally. For example, consider five operations performed at A, B, C, D, and E. Each one can be a
workstation or more than one operation can be combined at a single workstation. In a simple line
like this it is easy to combine at a single workstation. In simple line like this it is easy to visualize
the flow and also to make out the work allocation. Figure depicts a simple line flow indicating
the work stations.

A B C D E

Simple line flow including the work stations

The time requires to complete the work allotted to each station is known as the “service time”,
normally longer than a service time. The cycle time includes both the productive as well as the
non-productive time along with idle time if any. Non productive time includes time for
movement, handling and inspection time. The manner in which the work content is allocated to
the expressed by precedence requirements, that is, one operation must be complete before the
other operation can start.

The allocation of work elements to a workstation may also be influenced by “zoning” constraints
which in two ways : positive zoning constraints demands that certain sharing of resources, and
negative zoning which insists that certain operation should be clubbed together because of
interference or conflicts.

All these constraints make it very difficult or impossible to achieve perfect line balance and
hence, a certain amount of balancing delay or balancing loss is available. Balance delay is
defined as the total time available to complete the given job and the required in other words; the
balance delay is the difference in time between the service time and cycle time, expressed as a
percentage of the cycle time.

The objective of line balancing is that, given a desired cycle time, the attempt is to assign work
elements to workstations to:

• Minimize idle time or balancing delay

• Minimize the number of work stations.

• Distribute balancing delay evenly between stations

• Avoid violating any constraints

Q5. Explain the steps to Set Data in a Logical Order? Listing of the ingredient
of the Business process?

Answer. The following steps should be considered for setting the data in a logical order:
1. Check whether the participants in the process that is, people, teams, and electronic
applications are sufficient or, or any changes and additions need to be made.

2. Ensure that all the data expected is included or not. Generally, we start with an initial set
of data we have. When we check them with the requirements of the process for the
desired outcomes, we find gaps. These are the gaps help us in determining which suspect
of the data is appropriate at each task in the process.

3. Check whether the data is sufficient for the implementation of the process. This can be
achieved by answering the following questions:

A. What is the path the process should take?

 B. What decisions are to be made at any point in the process?

C. Are data available at those points?

4. State the rules to define the various parts of the process. At this stage, the naming
convention is also included. This is important to be included at the process definition
stage.

5. Determine the disposition of data at the end of the process and decide the following:

A. Do we plan to keep the data or delete them?

B. If they are to be stored, where and in what form will be used?

C. What are the measures of security for access?

6. Determine the other elements depending upon the business process and the need. The
elements added must be questioned to collect a detail data. It is better to go deeper into
the details and collect data, and make them available at this initial stage, so that a better
model can be prepared. Process definition enables us to go into details at every stages of
the process and verify the adequacy of data, the sequential steps in the process and fill the
gaps before attempting implantation.

The Ingredients – The ingredients that might be used in a business process can be
briefly outlined as follows:

• The data which accomplishes the desired business objective.

• Acquisition, storage, distribution and control of data which undertakes the process
across tasks.

• Persons, teams and orgainisational units help to perform and achieve the tasks.

• Decisions which enhance the value of data during the process.

Q6. Describe the Post implementation review of the project. Explain the
tools that may be considered as a tools for past implementation review?
 Answer. The review is performed in four parts as following:

1. Final product review – The product obtained after every stage must meet the
requirements of that stage. If it completely meets that stated objectives, than focus on
the issue of maintenance of the processes and product performance. If the final
product does not completely meet the objectives then identify the variations in the
product and analysis the variance performance.

2. Outstanding project work review – Many times it is found that there may be
some item of the project which is still not in its finished form. It may be insignificant
as it may be by-product of that stage which may not be required immediately for the
next stage

3. Project review – Every aspect of a project from start to end has to be reviewed.
The objectives, performance criteria, financial criteria, resources utilization, slips and
gains of time, adherence to the project definition and plans have to be reviewed. All
such review details and reports have to be well documented for future use.

4. Process review – Every process is important in any project. One may review the
process to see. If any changes can be made to improve its performance.

POST IMPLEMENTATION OF PROJECT

 FINAL PRODUCT REVIEW

FINAL PROJECT REVIEW

PROCESS REVIEW

OUTSTANDING PROJECT REVIEW