MB0044 Assignment

7/23/2019 MB0044 Assignment

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Question No.-1

Write short notes on:

• Outsourcing strategies for capital productivity• Implementation of operations• Basic competitive priorities• Market survey method of forecasting

Answer

Outsourcing strategies for capital productivity:

Capital Productivity is Capital deployed in plant, machinery,uildings, and the distriution systems as !ell as !orking capital arethe components of the cost of manufacturing" Outsourcingstrategies !hen capacity re#uirements are determined, it is easy to$gure out !hether some goods or services can e outsourced"Outsourcing can reduce the capital and manpo!er re#uirements"%lso, the availale capacities can e used to augment the corecompetencies thus reducing the cost of the product or service to thecustomer" &urther, outsourcing also helps in improved productdesign and even enales etter net!orking and collaorations"

'o!ever, lack of e(pertise, #uality considerations, nature of demand, and cost factors may restrict outsourcing"

Lack of expertise – )he outsourced $rm may not have there#uisite e(pertise to do the *o re#uired"

Quality considerations – +oss of control over operations mayresult in lo!er #uality"

Nature of deand – )his aects the usiness, especially if no

production facilities are uilt in the organi-ation"

!ost – It may not e !orth!hile !hen the $(ed costs that go along!ith making the product does not get reduced consideraly"

"pleentation of operations:

Implementation of operations Implementation is the process of e(ecuting the planned operations" When planning and controllingfunctions are put together, !e call it as Implementation of

Operations"



#stiating – .stimating gives the #uantities to e made at each!orkstation depending on the sales forecast, provision for uerstock, #uantities ought out, services outsourced, likely shortfalls,and others" It is made on the asis of capacity"

$outing – /outing determines the se#uence of operations and the

machines that do them, so that !ork 0o!, as determined y theprocesses, is smooth resulting in minimum inventory"%c&eduling – 1cheduling is mainly concerned !ith allocating timeslots for dierent *os

'ispatc&ing – 2ispatching is concerned !ith moving of thematerials !ith tools, *igs, and $(tures to speci$c machines along!ith the dra!ings and ensuring inspections at speci$c nodes, so thatthe materials move in the supply chain"

#xpediting – .(pediting ensures that all the aove are eing doneproperly" /eports are generated and any ottleneck that getscreated is removed"

(asic copetitive priorities -

)he asic competitive priorities are:3" Cost4" 5uality6" )ime7" &le(iility

!ost: Cost is one of the primary considerations !hile marketinga product or a service

Quality: 5uality is de$ned y the customer" )he operationsmanager looks into t!o important aspects namely high performancedesign and consistent #uality"

)ie: &aster delivery time, on8time delivery, and speedydevelopment cycle are the time factors that operations strategylooks into"



*lexi+ility: &le(iility is the aility to provide a !ide variety of products, and it measures ho! fast the manufacturer can convert itsprocess line used for one product to produce another product aftermaking the re#uired changes"

,arket survey et&od of forecasting:

Market surveys Conducting surveys among the prospective uyersor users are a very old method of forecasting" 'ere, a #uestionnaireis prepared and circulated among the people and their responses areotained" )he responses are collated and analysed to reveal possileclues to!ards acceptance or other!ise aout a ne! product orservice" Based on the overall decision, the forecasting is done" )his

method is typically done for ne! products or at ne! places !here aproduct is to e launched" In this method, the numer of respondents and ho! responses are gathered like through oralintervie!s, personal talks, internet ased, postal allots, etc", haveto e estalished efore survey" )he common limitations are thesample si-e and the !ay of dra!ing the sample like random,convenient, or *udgmental" 1ample ias is not completely ruled out"

Question No.-

3" +ist of general factors that favour 9u*arat as a destination formanufacturing automoiles"4" +ist of 1pecial factors that favour 9u*arat as a destination for

automoile manufacturing"6" .(plain !hy of these &actors favour 9u*arat as automoile

manufacturing hu7" Compare 9u*arat !ith other states like )amilnadu or 'aryana in

terms of locating a automoile manufacturing plant"

Answer

eneral factors t&at favour u/arat as a destination foranufacturing autoo+iles-

Gujarat has leveraged its locational advantages, with relatively low transaction costs

for accessing markets in the western and northern India. Good rail connectivity is

slated to improve significantly with the opening of the dedicated freight corridors to

Dahej and Nhava Sheva passing through large parts of Gujarat.

%pecial factors t&at favour u/arat as a destination for

autoo+ile anufacturing-

9u*arats port development also could permit economicaltransportation to other o, thus diversifying transport modes"2eveloping domestic and international $nancial services, improving



road and air connectivity and focusing on aordale housing andother amenities could further add to 9u*arats locational advantage"

*actors favour u/arat as autoo+ile anufacturing &u+-

)here are several reasons !hy 9u*arats emergence as an auto huis a positive for Indias economy" &irst, the auto sector is a motherindustry and for every direct *o in the O., minimum ;8< indirect

*os are created in tier I, II and III, not including *os for drivers,service station attendants and mechanics that form a !ell8payingproposition for many relatively less skilled, ut aspirational Indians"

1econdly, importance of transport e#uipment, !hich includes alltypes of motorised vehicles, in Indias trade has een increasing"

)hirdly, healthy competition among auto hus in )amil =adu,Maharashtra and 9u*arat !ill e a positive for the manufacturingproductivity"

&inally, it !ould assist India in progressing to!ards the goal of increasing the share of manufacturing in 92P from 3>? in 4@3@ to4;? y 4@44"

!oparison

A&rom our point of vie!, !e dont see it as )amil =adu versus 9u*aratut )amil =adu and 9u*arat, says oginder 1ingh, President andManaging 2irector of &ord India" AWe have e(cellent relationships!ith oth governments" In 9u*arat, since it is a ne! plant, !e havethe advantage of ringing in ne! technology"

u/arat is a +etter location for anufacturing autoo+iles

9u*arat is the larger share of non8fertile agricultural land" 9u*arats

land ank could thus e an attractive factor" 9u*arat Industrial2evelopment Corporation D9I2CE deserves credit for turning theaove potential into actual accomplishments"

Question No.-0

Write short notes on:

• ;1s system of !aste elimination• 1cheduling in services• Fendor managed inventory• 1ucontracting capacity DproductionE option



Answer

a 2 %s syste of waste eliination -

;1 is the name of a !orkplace organi-ation method that uses a listof $ve apanese !ords: seiri, seiton, seiso, seiketsu, and shitsuke"

)ransliterated or translated into .nglish, they all start !ith the letterG1" Concept of A;1 'istorically, production managers have usedAhousekeeping for a neat, orderly, and eHcient !orkplace and as ameans of reducing !aste" Operations managers have improvisedAhousekeeping to include a checklist commonly kno!n as the ;1s"

)he apanese developed the initial ;1s !here each 1 stands for a apanese !ord" )he ;1s are as follo!s:

%ort3segregate – eep !hat is needed and remove everything elsefrom the !ork areaJ !hen in dout, thro! it out"

%iplify3straig&ten – %rrange and use analysis tools to improvethe !ork 0o! and reduce !asted motion" Consider long8run andshort8run ergonomic issues

%&ine3sweep – Clean dailyJ eliminate all forms of dirt,contamination, and clutter from the !ork area"

%tandardi4e – /emove variations from the process y developingstandard operating procedures and checklistsJ develop goodstandards"%ustain3self-discipline – /evie! periodically to recogni-e theeorts and motivate the !orkforce to sustain progress" Kse visuals!herever possile for easy communication and implementation"

+ %c&eduling in %ervices:

1ervice operations cannot create inventories to provide uer fordemand uncertainties 2emand in service operations cannot epredicted accurately 2emand for service are initiated mostly asunplanned event and hence, there may e certain distortions inscheduling Providing the re#uired manpo!er and skills for thesudden demand in scheduling a service activity is challenging andsometimes ecomes crucial 1cheduling customer demand =ormallythe service centre capacity is $(ed, ut the demand !ill e varying"&orecasting the demand in advance for service activities is diHcultand scheduling such variale demand poses certain prolems" Inorder to provide timely service and utili-e the capacity to thema(imum e(tent, the scheduler has to adopt certainsystemsLmethodologies" )here are three methods normally used ythe scheduler in services"



)hey are:• Backlogs• /eservations• %ppointments

c 5endor anaged inventory:

)he very purpose of I) is to reduce inventory at all places in thesupply chain" Inventory is considered a !aste ecause inventory iscreated y using materials, machines, and eorts of persons" %ll of these are resources !hich have already een used up and thatportion of it !hich is not consumed and sent up the value chaincauses a drag in the system" 'o!ever, inventories are inevitaleecause uncertainties e(ist at every stage, making it necessary to

provide a uer so that demands do not go un$lled" )he challenge isto keep it to the minimum" )o make this happen, the calculationsinvolving the follo!ing are necessary:

• &orecasts of the market demand

• Capacities of the e#uipment• Worker asenteeism• 1uppliers lead times• 5uality of the produced components

d %u+contracting capacity 6production option:

1utracting enales planners to ac#uire temporary capacity !ithgreat 0e(iility" &actors to consider include availaility capacity,relative e(pertise, #uality considerations, cost, and the amount andstaility of demand" %s an alternative to sucontracting, anorgani-ation might consider outsourcing: contracting !ith anotherorgani-ation to supply some portion of the goods or services on aregular asis"

Question No.-7

2escrie the post implementation revie!" .(plain the tools that maye considered for post implementation revie!"

Answer

8ost ipleentation review-

)he Post Implementation /evie! DPI/E is conducted after a pro*ecthas een completed" )he purpose of the PI/ is to evaluate ho!successfully the pro*ect o*ectives have een met and ho! eectivethe pro*ect management practices !ere in keeping the pro*ect on



track" )he outcomes of the PI/ should e documented in a PostImplementation /evie! /eport

8ost ipleentation review of a pro/ect-

)o make the most of the ene$ts that the pro*ect can deliver,ho!ever, you also need to check to see if further improvements !illdeliver still greater ene$t"

ou also need to ensure that the lessons learned during the pro*ectare not forgotten" ou can more eectively design and e(ecutefuture pro*ects !hen you take advantage of lessons learned throughe(perience of previous pro*ects"1o ho! can you properly measure a pro*ectNs success, and !orkto!ard continuous improvement )his is !here the process of Post8

Implementation /evie! DPI/E is helpful" It helps you ans!er thefollo!ing key #uestions:

• 2id the pro*ect fully solve the prolem that it !as designed to

address

• Can !e take things further, and deliver even igger ene$ts

• What lessons did !e learn that !e can apply to future pro*ects

Four parts of the post implementation review of a project-

1. *inal product evaluation: &inal product evaluation may edone through regularly organised meetings and #ualityrevie!s"

. Outstanding pro/ect work evaluation: %ll outstanding!orks of a pro*ect can e revie!ed to check its output #ualityand performance"

0. 8ro/ect review 9uestionnaire: Pro*ect revie! #uestionnairemay ecome important if the revie!s are to e structured"

9roup discussion may e initiated depending upon the pointsto e discussed"

7. 8rocess evaluation: .valuation of any process is one of thekey issues of pro*ect"

How do it do well-

• 9et input from the entire pro*ect team, the customers, and

other ma*or stakeholders"

• Conduct the PI/ after the pro*ectNs deliverales have een in

service for an ade#uate period of time to evaluate the productor serviceNs successful integration into the usiness"

• /evie! the Pro*ect Charter to evaluate ho! closely the pro*ect

results match the original goals, o*ectives, and deliverales" )his revie! should also include a gap analysis et!een the

https://ocio.wa.gov/pmframework/templates/PIRreport.doc






planned re#uirements, schedule, and udget and !hat !asactually delivered, !hen and for ho! much"

• Conduct a lessons learned e(ercise to capture the most salient

points for inclusion in the PI/"

•

Conduct a customer survey"• Consider utili-ing an o*ective third party to conduct the PI/"

• .valuate the eectiveness of the pro*ect management

practices and other processes as !ell as the success of thepro*ect deliverales"

• 2ocument practices and procedures that led to pro*ect

successes and make recommendations for applying them tosimilar future pro*ects"

• Provide only the level of detail necessary to sho! meaningful

analysis of events and conclusions"

• ey in on the Gunkno!nsG !hich may have increased

implementation risks and !hich oer useful GhindsightG value"

• %ttach appropriate documentation !hich may e useful

information to the PI/ such as a $nal 5uality %ssurance /eport,customer survey results, etc"

Question No.-2

.(plain the steps to set data in logical order so that the usiness

process may e de$ned"

+ist the ingredients of a usiness process"

Answer

Steps to set data in a logical order

)he follo!ing steps should e considered for setting the data in alogical order"

3" Check !hether the participants in the process that is, people,teams, and electronic applications are suHcient or, any changes andadditions need to e made"

4" .nsure that all the data e(pected is included or not" 9enerally, !estart !ith an initial set of data !hich !e have" When !e check them!ith the re#uirements of the process for the desired outcomes, !e

$nd gaps"

6" Check !hether the data is suHcient for the implementation of theprocess"



7" 1tate the rules used to de$ne the various parts of the process" %tthis stage, the naming conventions are also included" )his isimportant to e included at the process de$nition stage"

;" 2etermine the disposition of data at the end of the process anddecide the follo!ing:a" 2o !e plan to keep the data or delete them" If they are to e stored, !here and in !hat form !ill e usedc" What are the measures of security for access

>" 2etermine the other elements depending upon the usinessprocess and the need" )he elements added must e #uestioned tocollect a detail data"

Ingredients of a business process-

)he ingredients that might e used in a usiness process can erie0y outlined as follo!s:

• )he data !hich accomplishes the desired usiness o*ective

• %c#uisition, storage, distriution, and control of data !hich

undertakes the process across tasks

• Persons, teams, and organisational units !hich helps to

perform and

• achieve the tasks

• 2ecisions !hich enhance the value of data during the process,

!e also have some ehavioural aspects of the usinessprocess, mainly the decision making process !here humansare involved" 2ecision failures are common and research hassho!n that, the failure of decisions is due to:8

3" iases in perception and fallacies in reasoning"

Question No.-

2escrie the dimensions of #uality"

Answer

Four dimensions of quality-

5uality is inherent in the product or service that is rendered to thecustomer" 1ince !e are attempting to measure the same, !e !illlook into those aspects of #uality, called dimensions of #uality"



1. Quality of design – % product is designed keeping in vie! thecustomers re#uirement" &or designing a product, themanufacturer or service provider should e a!are of thespeci$cations of dierent features re#uired to incorporate inthe product"

2. onformance to design – Conformance to design is thedegree to !hich the manufactured product or delivered servicemeets the parameters that have een incorporated in thedesign"

3. !tilisation conditions – Ktilisation conditions refer to thenecessity of the customer eing informed or trained so that,the purpose for !hich the product !as made is realised y the

customer in total, thus enhancing the customers satisfaction"Instructions, manuals, help8lines, and on8site training y themanufacturers personnel improve the perception of #uality"

4. "fter sales service – )here are so many reasons !hyproducts do not function to the e(pected levels" It may eimproper use, une(pected or additional demands, improperassemly or even manufacturing defects"

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MB0044 Assignment