POM- ASSIGNMENT.doc

7/29/2019 POM- ASSIGNMENT.doc

1/11

POM

MB0044 : What is Differentiation Strategies? Briefly explain tools used for implementation

of Operations.

Answer: Differentiation Strategies:-

Differentiation is a process by which a company distinguishes itself from its competitors and

their offerings. The process includes adding a set of differentiators which are meaningful and

adds value for the customer. The differences should be perceived by the customer as important,distinctive, superior and affordable. Nonetheless, they have to make the companys offerings i.e.

the products and services profitable. To derive competitive advantage the study of the processes

to adapt innovations which should be of such nature as being pre-emptive is important. Here, weare not considering the situation of an entirely new product but those which are already

contributing to the company revenues and the threat of competitors has to be met. According to

Miland Lele (Miland M.Lele, Creating Strategic Leverage: New York, John Wiley 1992)

companies have different potential in terms of manoeuvrability along with target market, place

(channels), promotion and price. These are affected by the companys position in the market, theindustry structure. BCG has classified (Philip Kotler) four types of industries and the approaches

available, depending on the cell the particular industry fits into.

Tools for implementation of Operations:-All functions in the organisation including administration, finance, materials, purchase,

marketing, production, logistics, communication and others, can be considered operations. The

reason is all of them use some inputs like materials or information either on a person to personbasis or through a flow line. They are required to use some process and convert them into outputs

usable in the next stage of the value chain. For example, when an invoice is received for

payment, it contains information about a material or a service, the person who needed it, the

price to be paid, the supplier, transportation, insurance, quantity, tax to be paid, etc. The billspayable section will have to verify data regarding the above, seek inspection reports from the

quality control department/user department to certify the bill for payment. Before actual paymentis made verification of the terms of payment, availability of funds etc are done You will notice

that information is sought or given, materials received and transferred, papers/instructions are

received / issued for initiating activities. All these are also operations. However, for our study we

will limit our focus to operations involving manufacture. We identify a set of specializedtechniques call them tools which can be standardized for ease of implementation and control.

Implementation of Operations Implementation is the process of executing the planned

operations. Estimating, routing and loading are the planning processes and dispatching and

progressing are processes which are conducted while the manufacturing is going on. We call theformer planning and the latter controlling function. Put together they are considered

implementation. Estimating gives the quantities to be made at each workstation depending on the

sales forecast, provision for buffer stock, quantities bought out, or services outsourced, likelyshortfalls etc. It is done on the basis of capacity. The next step, routing, determines the sequence

of operations and the machines that do them so that work flow as determined by the processes is

smooth resulting in minimum inventory. Scheduling is mainly concerned with allocating timeslots for different jobs. It specifies as to when jobs start and end at particular workstations. The


2/11

purpose is to prevent imbalances among work centers and utilize labour hours in such a way that

established lead times are maintained. Dispatching is concerned with actually moving the

materials with tools, jigs and fixtures to specific machines along with drawings and ensuringinspections at specific nodes, so that the materials move in the supply chain, Expediting is

mainly to ensure that all the above are being done properly. Reports are generated and any

bottleneck that gets created is removed.

Tools for implementation GANTT charts are used to record progress comparing the actualagainst the planned activities and keep track of the flow of the material. Line balancing and line

of balance are two more tools to ensure that machining centers are loaded as uniformly as

possible to prevent build up stocks at intermediate stages. Simulation models are used to predictutilization of machines and production levels. Various inventory models help us to determine

when to order and how many to order and also give us an insight to the risks and opportunities

that come up for our consideration. Proper maintenance and analysis of records help us to see thegaps that have crept into the operations system. Learning that happens across functions will

make the tools used more realistically and increase efficiency. Much ERP software, especially

SAP have many modulesthat store, sort and analyze data and make them available to the staff across the globe in many

plants enabling managers to streamline their operations. Software specific to functions,

applications or organization can be obtained. Microsoft Operations Manager 2005 is a useful tool

in this regard.

MBA0044 : Differentiate between Automated flow line and automated assembly line with

example. Write a note on Rapid Prototyping.Answer: Automated flow lines:

When several automated machines are linked by a transfer system which moves the parts by

using handling machines which are also automated, we have an automated flow line. After

completing an operation on a machine, the semi finished parts are moved to the next machine in

the sequence determined by the process requirements a flow line is established. The parts atvarious stages from raw material to ready for fitment or assembly are processed continuously to

attain the required shapes or acquire special properties to enable them to perform desired

functions. The materials need to be moved, held, rotated, lifted, positioned etc. for completingdifferent operations.

Sometimes, a few of the operations can be done on a single machine with a number of

attachments. They are moved further to other machines for performing further operations.Human intervention may be needed to verify that the operations are taking place according to

standards. When these can be achieved with the help of automation and the processes are

conducted with self regulation, we will have automated flow lines established.

One important consideration is to balance times that different machines take to complete theoperations assigned to them. It is necessary to design the machines in such a way that the


3/11

operation times are the same throughout the sequence in the flow of the martial. In fixed

automation or hard automation, where one component is manufactured using several operations

and machines it is possible to achieve this condition or very nearly. We assume that productlife cycles are sufficiently stable to invest heavily on the automated flow lines to achieve reduced

cost per unit. 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 areconsidered 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 orlayout. 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 flowlines. Group Technology, Cellular Manufacturing along with conventional Product and Process

Layouts are still resorted to as they allow flexibility for the production system.

With methodologies of JIT and Lean Manufacturing finding importance and relevance in thecompetitive field of manufacturing, many companies have found that well designed flow lines

suit their purpose well. Flow lines compel engineers to put in place equipments that balance their

production rates. It is not possible to think of inventories (Work

In Process) in a flow line. Bottlenecks cannot be permitted. By necessity, every bottleneck getsfocused upon and solutions found to ease them. Production managers see every bottleneck as an

opportunity to hasten the flow and reduce inventories. However, it is important to note that

setting up automated flow lines will not be suitable for many industries

Automated Assembly Lines: All equipments needed to make a finished product are laid out insuch a way as to follow the sequence in which the parts or subassemblies are put together and

fitted. Usually, a frame, body, base will be the starting point of an assembly. The frame itselfconsists of a construction made up of several components and would have been assembled orfabricated in a separate bay or plant and brought to the assembly line. All parts or

subassemblies are fitted to enable the product to be in readiness to perform the function it was

designed to. This process is called assembly.

The material goes from station 1 to 5 sequentially. Operation 2 takes longer time, say twice aslong. To see that the flow is kept at the same pace we provide two locations 2a and 2b so that

operations 3, 4 and 5 need not wait. At 5, we may provide more personnel to complete

operations. The time taken at any of the locations should be the same. Otherwise the flow isinterrupted. In automated assembly lines the moving pallets move the materials from station to

station and moving arms pick up parts, place them at specified places and fasten them by

pressing, riveting, screwing or even welding. Sensors will keep track of these activities and movethe assemblies to the next stage. An operator will oversee that the assemblies are happening and

there are no stoppages. The main consideration for using automated assembly lines is that the

volumes justify the huge expenses involved in setting up the system.

Rapid Prototyping: Prototyping is a process by which a new product is developed in smallnumbers so as to determine the suitability of the materials, study the various methods of


4/11

manufacture, type of machinery required and to develop techniques to overcome problems that

may be encountered when full scale manufacture is undertaken. Prototypes do meet the

specifications of the components that enter a product and performance can be measured on those.It helps in confirming the design and any shortcomings can be rectified at low cost. If serious

defects or problems arise during the manufacture, a thorough change in design or even its

replacement may be considered. To arrive at decisions to make use of the advantages statedabove, it is important that the prototypes are made within the shortest possible time. Rapid

prototyping facilitates this. It uses virtual designs from Computer Aided Design CAD or

animation modelling which transforms dimensional data to 3dimensional views. The physicalspace 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 thus created helps build a solid model

exactly as per the drawings. Any shape can be generated in this method. Advanced technologieslike SLS (Selective Laser Sintering), FDM (Fused Deposition Modeling), LOM (Laminated

Object Manufacture), EBM (Electronic Beam Melting) are some of Rapid Prototype Modeling

Processes.

Since the basis data about the product is already available in CAD, the above processes canproduce models in a matter of a few days. Conventional machines like lathes, milling machines,

grinding machines, EDM (Electro Discharge Machining) also help in the production ofprototypes. Because of their advantages Rapid Prototyping is being increasingly used.

MBA0044 : Explain the different factors influencing plant location. Write a brief note on

Product layout with an example.

Answer: Factors influencing plant location:-

1. Nature of the product: The nature of the product to be manufactured will significantly affectthe layout of the plant. Stationary layout will be most suitable for heavy products while line

layout will be best for the manufacture for the light products because small and light products

can be moved from one machine to another very easily and, therefore, more attention can be paidto machine locations can be paid to machine locations and handling of materials.

2. Volume of production: Volume of production and the standardization of the product also

affect the type of layout. If standardized commodities are to be manufactured on large scale, line

type of layout may be adopted.

3. Basic managerial policies and decisions: The type of layout depends very much on thedecisions and policies of the management to be followed in producing the commodity with

regard to the size of plant, kind and quality of the product, scope for expansion to be provided

for, the extent to which the plant is to be integrated, amount of stocks to be carried at anytime,the kind of employee facilities to be provided etc.

4. Nature of plant location: The size shape and topography of the site at which the plant is

located will naturally affect the type of layout to be followed in view of the maximum utilization


5/11

of the space available .For e.g., if a site is near the railway line the arrangement of general layout

for receiving and shipping and for the best flow of production in and out the plant may be made

by the side of the railway lines .If space is narrow and the production process is lengthy, thelayout of plant may be arranged on the land surface in the following manner:

5. Type of industry process: This is one of the most important factors influencing the choice oftype of plant layout. Generally the types of layout particularly the arrangement of machines and

work centers and the location of workmen vary according to the nature of the industry to whichthe plant belongs. For the purpose of lay out, industry may be classified into two broadcategories:

(i) Intermittent and (ii) continuous. Intermittent type of industries is those, which manufacturedifferent component or different machines.

Such industries may manufacture the parts, when required according to the market needs.

Examples of such industries are shipbuilding plants. In this type of industry functional layout

may be the best. The second type of industry in continuous industry. in this type of industry rawmaterial are fed at one end and the finished goods are received at another end. A continuous

industry may either be analytical or synthetic. A analytical industry breaks up the raw material

into several parts during the course of production process or changes its form, e.g. oil and sugar

refineries. A synthetic industry on the other hand mixes the two or more materials tomanufacture one product along with the process of production or assembles several parts to get

finished product. Cement and automobiles industries are the examples of such industry. Line

layout is more suitable in continuous process industries.

6. Types of methods of production: Layout plans may be different according to the method of

production proposed to be adopted. Any of the following three methods may be adopted for

production- (1) Job order production, (2) batch production, and (3) mass production. Under jobproduction goods are produced according to the orders of the customers and therefore,specification vary from customer to customer and the production cannot be standardized. The

machines and equipment can be arranged in a manner to suit the need of all types of customers.

Batch production carries the production of goods in batches or group at intervals. In this type ofmanufacturing the product is standardized and production is made generally in anticipation of

sales. In such cases functional or process layout may be adopted. In case of mass production of

standardized goods, line layout is most suitable form of plant layout.

7. Nature of machines:Nature of machines and equipment also affects the layout of plants. Ifmachines are heavy in weight or create noisy atmosphere, stationery layout may reasonably be

adopted. Heavy machines are generally fixed on the ground floor. Ample space should be

provided for complicated machines to avoid accidents.

8. Climate: Sometimes, temperature, illumination and air are the deciding factors in the locationof machines and their establishments. For example, in lantern manufacturing industry, the spray-

painting room is built along the factory wall to ensure the required temperature control and air

expulsion and the process of spray painting may be undertaken.


6/11

9.Nature of material: Design and specification of materials, quantity and quality of materials

and combination of materials are probably the most important factors to be considered in

planning a layout. So, materials storage, space, volume and weight of raw materials, floor loadcapacity, ceiling height, method of storing etc. should be given special consideration. This will

affect the space and the efficiency of the production process in the plant. It will facilitate

economic production of goods and prompt materials flow and soundly conceived materialshandling system.

10. Type of machine: Machines and equipment may be either general purpose or special

purpose. In addition certain tools are used. The requirements of each machine and equipment are

quite different in terms of their space; speed and material handling process and these factorsshould be given proper consideration while choosing out a particular type of layout. This should

also be considered that each machine and equipment is used to its fullest capacity because

machines involve a huge investment. For instance, under product layout, certain machines maynot be used to their full capacity so care should be taken to make full use of the capacity of the

machines and equipment.

12. Human factor and working conditions: Men are the most important factor of production

and therefore special consideration for their safety and comforts should be given while planninga layout, specific safety items like obstruction-free floor, workers not exposed to hazards, exit

etc. should be provided for. The layout should also provide for the comforts to the workers such

as provision of rest rooms, drinking water and other services etc. sufficient space is also to beprovided for free movement of workers.

13. Characteristics of the building: Shape of building, covered and open area, number of

storeys, facilities of elevators, parking area and so on also influence the layout plan. In most of

the cases where building is hired, layout is to be adjusted within the spaces available in the

building. Although minor modification may be done to suit the needs of the plants andequipment. But if any building is to be constructed, proper care should be given to construct it

according to the layout plan drawn by experts. Special type of construction is needed toaccommodate huge or technical or complex or sophisticated machines and equipment.

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 specificoperations 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 ofmovements 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 advantageswhich are listed below:

1. The skill required of the workers is low


7/11

2. Supervision is minimal3. Training needs are small

1. Precautions to be taken are:2. Constant check on the processes needs to be performed so that quality is assured.

3. Corrective measures have to be implemented immediately to avoid rejections,

since, the quantities that get manufactured will be continuous.4. Check for the behavioural attitude of the worker. As jobs are repetitive, workers

tend to be bored and lose concentration. This may affect productivity and quality.

Product Layout Example: Let consider an example of Work allocation at an airport

Activity Average time, seconds1. Deplane 20

2. Immigration 16

3. Baggage claim 40

4. Customs 24

5. Check baggage 186. Board domestic flight 15

MB0044 : Write a brief note on PDCA cycle, Jurans Quality Trilogy and Crosbys

Absolutes of Quality. List all the Quality Tools.

Answer: PDCA cycle:-

PlanDoCheckAct Cycle Also called: PDCA, plandostudyact (PDSA) cycle, Demingcycle, Shewhart cycle.

Description

The plandocheckact cycle is a four-step model for carrying out change. Just as a circle has no

end, the PDCA cycle should be repeated again and again for continuous improvement.

When to Use Plan-Do-Check-Act

As a model for continuous improvement.

When starting a new improvement project. When developing a new or improved design of a process, product or service.

When defining a repetitive work process.

When planning data collection and analysis in order to verify and prioritize problems or

root causes.

When implementing any change.

Plan-Do-Check-Act Procedure


8/11

1. Plan. Recognize an opportunity and plan a change.

2. Do. Test the change. Carry out a small-scale study.

3. Study. Review the test, analyze the results and identify what youve learned.4. Act. Take action based on what you learned in the study step: If the change did not work,

go through the cycle again with a different plan. If you were successful, incorporate what

you learned from the test into wider changes. Use what you learned to plan newimprovements, beginning the cycle again.

Jurans quality triology

Juran uses his famous Universal Breakthrough Sequence to implement quality programmes. The

universal breakthrough sequences are:

1. Proof of need: There should be a compelling need to make changes.

2. Project identification: Here what is to be changed is identified. Specific projects with

time frames and the resource allocation are decided.

3. Top management commitment: Commitment of the top management is to assign peopleand fix responsibilities to complete the project

4. 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 utmostcertainty.

5. Remedial action: This is the stage when changes are introduced. Inspection, testing, and

validation are also included at this point.6. 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.

Juran has categorised cost of quality into four categories:

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.

Crosbys absolutes of quality:-

Like Deming, Crosby also lays emphasis on top management commitment and responsibility for

designing the system so that defects are not inevitable. He urged that there be no restriction on


9/11

spending for achieving quality. In the long run, maintaining quality is more economical than

compromising on its achievement. His absolutes can be listed as under:

1. Quality is conformance to requirements, not goodness2. Prevention, not appraisal, is the path to quality

3. Quality is measured as the price paid for non-conformance and as indices4. Quality originates in all factions. There are no quality problems. It is the people, designs,

and processes that create problems

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 opinedthat 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.

Quality Tools:-

1. Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many

possible causes for an effect or problem and sorts ideas into useful categories.

2. Check sheet: A structured, prepared form for collecting and analyzing data; a generic toolthat can be adapted for a wide variety of purposes.3. Control charts: Graphs used to study how a process changes over time.4. Histogram: The most commonly used graph for showing frequency distributions, or how

often each different value in a set of data occurs.5. Pareto chart: Shows on a bar graph which factors are more significant.6. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a

relationship.7. Stratification: A technique that separates data gathered from a variety of sources so that

patterns can be seen (some lists replace stratification with flowchart or run chart).

MB0044 : Define project cycle, project management, and scope of project. List the various

project management knowledge areas? What are the reasons for failure of a project?
http://asq.org/learn-about-quality/cause-analysis-tools/overview/fishbone.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/check-sheet.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/control-chart.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/histogram.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/pareto.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/scatter.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/stratification.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/check-sheet.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/control-chart.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/histogram.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/pareto.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/scatter.htmlhttp://asq.org/learn-about-quality/data-collection-analysis-tools/overview/stratification.htmlhttp://asq.org/learn-about-quality/cause-analysis-tools/overview/fishbone.html


10/11

Answer: Project cycle

A project cycle consists of the various activities of operations, resources, and the limitations

imposed on them.

Project management:-

It is the discipline of planning, organizing, securing, and managing resources to achieve specific

goals. Aproject is a temporary endeavour with a defined beginning and end (usually time-

constrained, and often constrained by funding or deliverables), undertaken to meet unique goals

and objectives, typically to bring about beneficial change or added value. The temporary natureof projects stands in contrast withbusiness as usual (or operations), which are repetitive

permanent, or semi-permanent functional activities to produce products or services. In practice,

the management of these two systems is often quite different, and as such requires thedevelopment of distinct technical skills and management strategies.

Project Scope:-

The project scope is the definition of what the project is supposed to accomplish and the budget

of both time and money that has been created to achieve these objectives.

Best results are achieved when both the definition and the budget are precise and detailed. A

good project scope document defines specifically what tasks are to be performed or results

delivered. It defines the specific date when these deliverables are due and lists the budget

allocated for them.

Project management knowledge areas

The knowledge areas of project management are the following:

Project integration management, cost management, communications management

Project scope management, quality management, risk management

Project time management, human management, procurement management

For a project to be successful, it is necessary to understand its relationship with othermanagement disciplines. Other management supporting disciplines are business legal issues,

strategic planning, logistics, human resource management, and domain knowledge.

Project failure

A project may fail because of one or more of the following reasons:
http://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Projecthttp://en.wikipedia.org/wiki/Business_operations


11/11

Incidence of project failure

Factors contributing to project success not emphasised

Overview of Information and Communication Technologies (ICT) projects

Common problems encountered during projects

The reasons for the failure of a project in detail:-

Incidence of project failure: The incidents of project failure are due to following reasons:

1. Projects being initiated at random at all levels2. Project objective not in line with business objective3. Project management not observed4. Project manager with no prior experience in the related project5. Non-dedicated team

6. Lack of complete support from clients

Factors contributing to project success not emphasised:

1. Project objective in alignment with business objective2. Working within the framework of project management methodology3. Effective scoping, planning, estimation, execution, controls and reviews, closure

intertwined with quality4. Proactive approach towards project bottlenecks5. Communication and managing expectations effectively with clients, team members,

and stake holders6. Prior experience of project manager in a similar project

Overview of Information and Communication Technologies (ICT) projects:

1. Involve information and communications technologies such as the World Wide Web,e-mail, fiber-optics, and satellites

2. Enable societies to produce, access, adapt and apply information in greater amounts,more rapidly and at reduced costs

3. Offer enormous opportunities for enhancing business and economic viability

Common problems encountered during projects:

1. No prioritisation of project activity from an organisational position2. One or more of the stages in the project mishandled

3. Less qualified/non-dedicated manpower4. Absence of smooth flow of communication between the involved parties.

Documents

POM- ASSIGNMENT.doc