Production Managemnt Set1 Taha

8/14/2019 Production Managemnt Set1 Taha

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SET -1 MB0028 Page 1

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DINA BUSINESS SCHOOL

DINA INSTITUTE OF HOTEL AND BUSINESS MANAGEMENT

PUNE 411 028

CENTRE CODE 02758

ASSIGNMENT SET 1 / SET 2

NAME : TAHA MOHAMMED DHILAWALA

ROLL.NO. : 520850852

PAPER / SUBJECT :PRODUCTION & OPERATIONS

MANAGEMENT

CODE : MB0028

SEMESTER : I / II / III / IV

SIKKIM MANIPAL UNIVERSITY


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1. EXPLAIN WHAT IS MENT BY CAPITAL

PRODUCTIVITY?

ANS.CAPITAL PRODUCTVITY

Capital deployed in plant, machinery, buildings and the

distribution system as well as working capital are components of the costof manufacture and need to be productive. Demand fluctuation,

uncertainties of productivity down. Therefore, strategies are needed to

maximize the utilization of the funds allotted towards capital. Adapting tonew technologies, outsourcing and balancing of the workstations to

reduce the proportion of idle times on equipment are the focus of thissection.

OUTSOURCING STRATEGIES

When capacity requirement are determined it will be easy

to determine whether some goods or services can be outsourced sothat the capital and manpower requirement can be reduced and theavailable capacities are used to augment core competencies thus

reducing the cost of the product or services to the customer. However,the following factors may restricts outsourcing.

I. Lack of expertise the outsourcing firm may not have the

requisite expertise to do the job requiredII. Quality considerations- loss of control over operationsmay result in lower quality. This is risk that the firm gets

exposed to.

III. Nature of demand- when the load is uniform and steady, it

may not be worthwhile to outsourcing. Absence ofsupervisions and control may be a hindrance to meet anyurgent requirements of the customer. This affects the

business especially if no production facilities bare built inthe organization

IV. Cost- when the fixed costs that go along with making theproduct does not get reduced considerably

MATHODS IMPROVEMENTMethods improvement start with methods analysis.

The focus of this process is to find out how a job is done breaking it downto elemental tasks so that they are amenable for analysis. This is done for

both running jobs and new jobs.


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For the new job, the description becomes the inputs for analysis. For

current jobs, the analyst depends on observation, records and suggestionsof the persons involved in the job. When improved methods are

suggested, they are implemented and records created for assessing the

consequences of the methods improvement procedures. The analyst

should involve all concerned persons in the process so that acceptance becomes possible and opportunities open up for further improvements.Moreover, the people actually involved would be interested in improving

their productivity and will help the analyst in the process.

BALANCING OF WORKSSATIONS

Assembly lines necessitate out stringing togetherworkstations which carry out operations in a sequence so that the product

gets completed in stages. Since the workflows has to be uniform andoperation may require different periods for completion the necessity of

line balancing is felt. Capacities at workstation and the workforce to manso adjusted that a products in the process of assembly almost

approximately the same amount of time.

RATIONALIZATION OF PACKAGING METHODS

With logistics becoming an important function of the

supply chainAnd outsourcing becoming the norm, packaging has become an important

aspect, packaging has become important. Space is at a premium andtherefore stacking and storing have to more scientific. Movement inside

the premise from one location to another location are being done withautomated systems and they need that the packaging system are designedfor safe transit, continuous monitoring-both for quantities and operations.

In case of outsourcing product the material used and their design should

facilitate reuse of the same, which brings in economy.

QUALITY CIRCLESKaoru is generally considered to have promoted the

concept of quality circles. It is well known that he is the originator offishbone diagrams to identify the root cause of any problem. The causes

for the existence of a problem are classified as pertaining to the material,processes or method or any factor that goes into production. The matter isfurther investigated and pursued till the exact is determined. Quality

circles use these principal in solving problems. The teams select projectselected on the above basis and implement action to achieve improvement

in the process with a view to improve quality. Since these activities arecarried out without affecting the regular day to day work and involve


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little continuous improvement in methods and quality. The capital

deployed is minimal, if at all, and therefore productivity is enhanced.

2. WRITE A DETAILED NOTE ON SPLIT-CASE ORDER

FULFILLMENT METHODS AND MECHANIZATION.ANS. This system looks at situations when bulk supplies in full cases toone or more destination are not done. Fulfilment of order which need

different merchandise in different quantities requires that cases willhave to be split, and pieces picked, repacked in cartons and ship to the

customer. Mechanisation helps in improving identification, pick-up and

repacking the material in addition to relieving monotony of the workers.A few strategies of achieving this objective optimally are discussed here.

ORDER PICKING METHODS

Items as per customer requirement have to be picked and packed in alogical manner and assigned to personnel so that their productivity is

maximized.

Accuracy of fulfilment of order is ensured by basic factors:I. Order extent- it is defined as the number of order to be

picked simultaneously by a picker in an assignment. This is

categorized as discrete order picking in which case a singleorder is selected at a time; and batch order picking in which

case the merchandise requirements of many orders are puttogether and selected for pick up in the geographical area

which is covered in single pass.II. Coverage extent it is the physical area to be traversed bythe picker in selecting merchandise for an assignment within

the picking system. The personnel pick up the merchandise

from a zone, the being a contiguous area with different

picking location. The boundaries may be fixed ordynamically adjusted to accommodate either personnel orcustomers. This zone is identified within the picking area is

considered for picking merchandise. Either of strategies isadopted to meet the constraints or opportunities which

maximize employee productivity and the customers needs.

SORTING AND ROUTING

Sorting is done for the purpose of easing theoperation of matching orders, merchandise and the customers for whom

they done. This activity can be done as when order are picked i.e. sortimmediate or by merging a number of order and batches are made to

consolidate the priorities for execution. This methods is called merge and


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sort. The strategy used depends on the total area of the zone, the number

of order, and the type of merchandise. And the economics of balancingall the above.

When order are routed among those zones where

picks are required, we call them routing the picks. When order are routed

from zone to zone, in a particular order, whether any picks are there ornot, we call them chaining. When multiple zones are coveredsimultaneously in different zones we call them parallel routing. As can be

discerned, no one single method is suitable for actual situations on site.They are formulated as a strategy for optimization of resources in view of

the constraints.

ORDER PACKING METHODS

Order fulfilling methodology cover one moreaspects i.e. the order pacing methods. When split-case is executed it

becomes necessary that the merchandise is repackaged for shipment tomeet the requirement of the customers. In the first method they

merchandise is usable by the customer directly and when the tools and

packaging materials are available with the picker and he can packthroughout the picking area.

CLASSIFICATION SCHEMESIn this section you will come to know about the coding of various

methods of splits picking and packing. The letters will uniquely identifythe method intended to be used and all personnel in the process will know

disposition status of the merchandise.Discrete order picking or batch order picking- letter D or B is usedzone picking or tour picking

Pack immediate assemble and pack

BS BATCH ORDER PICKING SORT IMMEDIATE

BM BATCH ORDER PICKING - MERGE& SORTZR ZONE PICKING WITH ROUTINGZP ZONE PICKING IN PARALLEL

For example, BSDZCA means batch order picking, sort immediate-discrete order packing, zone picking with chaining and assemble.

With this type of coding 24 ways representing the type of split orderpicking and packing are identifiable.


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CHOICE OF OPTIMAL FULFILLMENT STRATEGIES

The choice of order fulfilment strategy depends upon the predominant

order characteristics and category of distribution. They are determined bygeneral order characteristics such as-

a) Number of line- items;

b) Quality of pieces per line itemGeneral order categories are

a) Wholesale distribution usually large number of pieces of a

few items; b) Retail distribution-order for large quantities for a large

number of items;c) Direct marketing order for a small quality;

d) Consumer distribution small quantities of different items for purposes of evaluation promotion and consumption

The performance measures to be satisfied by the choice of strategy are to

minimize the costs involved and maximize desirable characteristics

They are

a) Minimize the cost of pick and pack for every order;b) Minimize the cost of shipping per order;

c) Reduce the time required per cycle;d) To increase the fill rate;

e) Improve accuracy of the elements of the process;f) Traceability and accountability of all transaction.Advance technology involving bar coding, feeding on line data ,high

speed processing an distribution of information across all nodes of the

supply chain help in improving efficiency, reduce costs and improve

customer satisfaction.


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3. EXPLAIN STRATEGIC MANAGEMENT PROCESS AND

STRATEGIC DECISION MAKING IN DETAIL.

ANS.STRATEGIC MANAGEMENT PROCESS

Most of organization process depend upon the structure

of the organisation, the hierarchical level, decision arrival mechanisms,communication system, authorization process, implementation

procedures, feedback and monitoring devices to formulate and implement

strategies. It is necessary to ensure that the process is effective andefficient and avoid loss of control. In essence, the purpose of strategies is

to leverage the companys advantages, prepare of strategies is to leveragethe companys advantages, prepare for the eventualities of uncertain

external happening and maximize the chances of success in itsendeavours. Organizational goals necessitate the adoption of certain

strategies, which are converted to function goals in the areas of finance,

marketing and operations. These goals are achieved by adoptingstrategies arrived at using organizational processes mentioned above.When these long term strategies are being implemented tactics may have

to be employed to meet short term challenges depending upon situations.The actual activities which result in out comes are called operations.

A business strategy is the result of a decision taken at the highest level.They are specific programme of action which outline hoe the resources

are deployed to achieve goals in an environment. A general framework toguide and activate think-tanks in the organization to come up withproposals. Action plans with time frames, authority hierarchies and feed-

back mechanisms are formulated and designed. At this stage detailed

scenarios as to the likely consequences are considered and contingency

plans worked out for implementation, if situations call for the same.Being in readiness with alternatives is a good way assuring the success ofany plan.

For example the production of a model of motor cycle is to be increasedby 25% and possibly reduce the price by 10%. This decision would have

been taken as strategy to meet the increasing demand which are e real- to enter a niche market of the competitor- to augment marketing departments claim after a vigorous

sales campaign- or any other reason.

The strategy for the marketing function would be many like promisingfreebies, make the commission attractive for the dealer, to open more

service outlets. The operations strategy would consider the following


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- additional machinery or sub-contracting

- methods to improve productivity- revamping assembly lines

- measures to improve motivation

- promoting existing employees new suppliers

look for opportunities to reduce costs as scaling up providesscope.

The above measures will be under consideration at all times. When a

change is considered, identification of areas of cooperation andcollaboration become visible. Opportunities arise for understanding and

resolution of problems. Setting up visible targets to meet deadlines

encourages application of constancy of purpose as per Deming. This initself would be strategy for improvement quality and productivity.

STRATEGIC DECISION MAKING

Decision making is the most crucial management function. Decision

commit the organisation and its member to activities which have financialrepercussions and affect the functioning of other who are connected withthose. Therefore decisions are taken after lot of deliberation which

involve data gathering, analysis and the predicting outcome. Accuracy ofdata, their relevance for the matter under consideration are matter which

affect the quality of decision. In addition, the following also form thebasis of decision making:

a) environmental scanning the business environment in whichthe firm exists and has to compete continually exhibits potentialfor opportunities and threats. Becoming aware of those and

their impact on the firm by a process of scanning is called

environmental scanning. The environment include the industry,

the marketplace, the governmental agencies, society, ecology,technology, etc. competitors may be gaining edge bydiversification, making forays into the firms niche market

making by new and better products; supplier could be formingcartel and preparing to drive hard bargains; the government

could be passing laws and issuing order which could affect thesupply of materials or restrictions on import and export or evenemployment conditions. adaptation to these dynamic factors by

environment scanning and basic strategy decisions is vital. b) Core competencies each organisation is started by an

entrepreneur or a small group of them who believed in someunique strengths which would give them a place in market.

Utilizing those strengths the venture would have succeeded and


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development and expansion take place either laterally or

vertically or in both ways. However, additional strengths orcompetences would have been acquires to augment of the

workforce an d additional facilities created, would be

continuously demanding and satisfying new needs. investor and

suppliers would be wiling to back an enterprise, who, theyhave, seen grow in strength. the developments andimprovement both in knowledge and skills make the core

strengths better. This tends to make these an advantage over thecompetencies. Using these advantages would from a part of the

decision strategy of the firm.

Core process of an organisation are determined by core competencies.Four main core process are customer relationship, new product/services

development, supplier relationship and order fulfilment. The emphasison these process depends on the order of industry, the length of its

existence and the consequent strengths built up in certain areas, the wayearlier successes have been achieved and the reinforcement they have

given to the organisation. One should remember that the environment is

always dynamic and the strategy formulation needs to be constantlyupdated for making implementation effective. Ultimately everyorganisation depends on the core compete cities which gives it an

advantage over the competitors.


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4. WHAT IS TQM? EXPLAIN QULITY APPROACHES OF

DEMING WHEEL AND JURANS QUALITY TRIOLOGY.

ANS. INTRODUCTION TO TQM

TQM is viewed from many angels as a philosophyas an approach and journey toward excellence. The main thrust is toachieve customer satisfaction by involving every body in the

organisation, across all functions with continuous improvement drivingall activities. TQM systems are designed to prevent poor quality from

occurring. The following steps are implemented to achieve total quality.

a) Take all measures to know what the customer wants voice ofthe customer. Develop methods that generate facts which can be

used for decision making. do not ignore the internal customer the next person in the process.

b) Convert the wants in to design specification, that meet orexceed customer expectation.

c) Process are to be designed so that they facilitate doing the job

right the first time. Incorporate elements that make it impossibleto make mistake. It is called fail sating or fool proofing. TheJapanese call it POKAYOKE.

d) Keeping record of all occurrences, procedures followed andconsequences. They help in validating the processes so that

continuous improvement becomes possible. More importantlyany gaps can be seen and rectified immediately.

One of the basic tenets of TQM is just because something is workingwell improvement is not necessary. The search must be continuous to findways and means to improve every aspects of the business process finance,

operation and management. Complacency should never be allowed to

creep in at any time. In this aspects, culture plays an important role. All

these require top management commitment

APPROACHES TO TQM:

Being practiced worldwide by different organisation, TQM has differentapproaches towards its achievement. The basic thrust of each of these is

realising excellence. All the approaches have a lot in common, but theemphasis shifts from one other. Needless to say, each organisation willuse any of these or even a combination to suit its structure, culture and

need. Some emphasise on the philosophy of TQM and the role ofmanagement and employees in being aware, committed and act. Some

expect us to use statistics more intensely. Some give us an integratedapproach.


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DEMING WHEEL:

Demings approach is summarised in his 15 points.

1. constancy of purpose for continuous improvement

2. adopt the TQM philosophy for economic purposes3. do not depend on inspection to deliver quality4. do not award any business based on price alone

5. improve the system of production and service constantly6. conduct meaningful training on the job

7. adopt modern method of supervision and leadership

8. remove fear from the mind of everyone connected with theorganisation

9. remove barriers between department and people10.do not exhort, repeat slogan and put up poster.

11.do not set up numerical quotas and work standards12.give pride of workmanship to the workmen

13.education and training to be given vigorously

14. sate and exhibit top managements commitment for quality andproductivity

15.using the above principles, Deming gave a four step approach to

ensure a purposeful journey of TQM. The slope is shown to indicatethat if efforts are let up the programme will roll back.

DEMING CYCLE PLAN DO - CHECK ACT

PLAN means that a problem is identified, process are determined andrelevant theories are checked out.

ACT PLAN

A P

CHECK DO

C D


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DO means that the plan is implemented on a trial basis. All inputs are

correctly measured and recorded.CHECK means that he trial taken according to the are in accordance

with the expected results.

ACT when all the above steps are satisfactory regular production is

started so that quality outcomes are assured

JURANS QUALITY TRIOLOGY

- JURANS uses his famous breakthrough sequence toimplement quality programmes. They are

Proof of need there should be compelling need to

make changes Project identification here what is to be changed

is identified. Specific project with time frames andthe resource allocation are decided.

Organisation with top managements commitmentis made in terms of assignment of persons,

responsibilities fixed

Diagnostic journey each team will determine theproblem result from systemic causes or random ordeliberately caused. Root causes are ascertained

with utmost certainty.

Remedial action this is the stage when changes

are introduced. Inspection, testing and validationare also included at this point

Holding on to the gains the above steps results inbeneficiary results. Having records or all action andconsequences will help in further improvements.

The action that resulted in the benefits derived

should be the norm for establishing standards.

JURAN has categorized cost of quality into four categories1) Failure costs internal these are costs of

rejection, repairs etc in terms of materials,

labour, machine time and loss of morale;2) Failure costs external these are costs of

replacement, on site rework including spareparts and expenses of the personnel, warrantycosts and loss of goodwill;

3) Appraisal costs costs of inspection, includingmaintenance of records, certification,

segregation costs, etc.4) Prevention costs the sequence of three sets of

activities quality planning, quality control


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and quality improvement from the triology to

achieve total quality management.

His arguments are that

1. Quality is the results of goods planning considering the needs of both internal and external customers and develops processes tomeet them. The processes are also planned to meet them.

2. Quality is built in to the system of manufacture, inputs andprocesses that are on stream like raw material, spare parts, labour,

machine maintenance, training, warehousing, inspection

procedures, packaging, etc . They have to be made to followstandards and control exercised to make sure that mistake does not

occur often and if they are corrected at the source.3. Quality improvement measures are essential to keep the quality

culture alive. Newer methods will be founds, 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 tobe on the look out for opportunities for improvement.


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5. COMPARE WORKFLOW WITH BPM. EXPLAIN IN

DETAIL THE PROJECT DEVELOPMENT PROCESSCYCLES?

ANS.

WORKFLOW VS. BPMWorkflow contains a number of entities in a unidirectional path with

nodes. each of these nodes may contain a number of elements material,

data, attributes, value. They come together for integration or even fordivision and will have transformation going on. The activities that make

these transformations are the sub process. So, there changes takingplace along the path and at the end we have a completed process. Every

detail has been worked out, the outcomes verified and correct broughtinto the flow so that nothing outward cocker. The only thing lacking is

flexibility that business situation demand all the time and because the

enterprise has to perform and excel in conditions of uncertainty,improvement and competition. Fortunately these are exceptions. Whilemajority of the humdrum goes on smoothly, we need to manage

exceptions. Notably, exceptions create new process, opportunities andhelp us get new insight in to the processes. It has been found that 80% of

process cost arise out of managing exceptions. These happen at many points in the value chain. Managing these is business process

management. Workflow does not offer option in the way processes areconducted. They have fixed routes, activities and schedules. Actually,there is not much management. BPM goes ahead not on a fixed track,

but on bumpy roads, swerving sharply to avoid collisions and overtaking

the vehicles that re ahead. It calls for all management skills.

THE PROJECT DEVELOPMENT PROCESS CYCLE

EVERY COMPANY WOULD BE INTERESTED TO IMPROVE

THEIR PERFORMANCE OVER THE THEIR PERVIOUSPERFORMANCE IN PROJECTS. IN ORDER TO IMPROVE

PROJECT PERFORMANCE, THE COMPANY MUST ASSUREQUALITY CONTROL AT EVERY STAGE OF THE PROJECTTHROUGHOUT THE PROJECT LIFE CYCLE.

The various steps which may be considered in the development of theprocess cycle in any project are listed below:

I. Planning for review: - in this step the main focus is on collection ofdata. Data is the main input requirement of any successful project

information system and therefore the project. Once the data has


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been gathered prepare a suitable plan for its analysis. Obtain

necessary commitment from management and team member toparticipate actively and take action on findings. It is necessary that

every project member gives his or her commitment to participate

and deliver the service/product in the project. Reviews are

necessary for every stage of the project. Prepare schedule for eachproject for each project review.

II. Conducting the review: - before the review prepare an agenda. The

agenda should be well structured in terms of time and content.Make necessary arrangement to gather in puts to the review. The

review leader is the project manager. Incorporate points, which are

external to the project. These external points have to be wellstructured to be reviewed. A reporter must be designated to

document key points of the meeting. An automated checklist mustbe formulated for the session. The use of flipcharts may be helpful

to collect data from participants.III. Take action on findings: - during the meeting, determine the points

which are critical to the project and its performance. The member

may have brain storming session to discuss critical points. Make alist of all such items discussed and items suggested and group thedata into categories and then prioritize, either by group discussion

or voting. Identify action items and assign a project member or ateam the task pertaining to the action planned. For all such action

and recommendations, prioritize the items depending upon the taskfor execution. After reaching consensus on results, summarize

project success factor, recommendation for further study and actionitems with responsibilities and due dates. Set expectations of scope,investment, time, etc., for each item and send a copy the team.

Follow up all the actions. Place review reports in the project

documents file, in the quality/productivity department and in the

library. Make reports available to manager of the life process forsimilar projects.

IV. Do continuous improvement: - continual improvement is one of the

management mantras. Every organization wants to improvecontinuously. It is not possible to achieve improvement unless

sufficient measures are adapted to measure improvement.Encourage the quality manager to take for quality themes thatemerge from review meetings. The quality manager should

highlight trends and de escalate chronic problems. Reviews re acheck process in the PLAN DO CHECK ACT (PDCA)

cycle of quality cycle. They are not just a one- time events. In thiscontext, act on recommendation from pervious project; plan to

capture data about project; do continuous. Improvement; check on


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hoe you are doing write a retrospective analysis. Do periodic

project review that will trigger mid project corrections. Conductimmediate, informal retrospective after solving unexpected

obstacles. Understand any impact on the reminder of the project.

Recognize people for extra efforts and noteworthy contributions.

Be open to attend review for other project. Learn from similarventures, warranty failures, customer survey and experience ofother division and companies. Be a part of continuous

organizational learning program that includes experimentation,evaluation and documentation with easy access and retrieval.

V. Critical success factors:- it is necessary that a company identifies

factor in a project. These factor may slacken the project if notfocused. Routines tasks may be assigned to lower level team

members as this may relive the project team from wasting theirskill set on routine matters. In terms of project delivery, the project

office can relieve project managers of takes, like filling forms andtemplates, getting these forms signed off, mailing, receiving and

checking items etc. regarding project management skills the project

office can help the project manager in the project scope definition, project kick off preparation and planning tasks, trough mentoringand coaching services. These are the combining strengths that

make the project manager to move forward and achieve the projectsuccess.

Regarding project quality reviews, the project management officeadds value providing processes, tools and project management

experience but any quality review process can be implemented bythe team without sponsorship from the management level.It is necessary to identify the entire critical success factor. One of

the critical successes factor for the project quality review process

implementation is to convince and sell the benefits to the

management team of the organization. The team should showexhibit better control of their project portfolio and thendemonstrate better control about business profitability.

VI. Results and benefits of the project quality reviews:- the main benefits of the project quality review are the project status is

formally visible to the whole organization. It creates awareness androom for improvement. Only reviewing, in a detailed manner,every project we can have a clear idea about the lack of knowledge

mistakes, errors, deviations, and their reasons.The project quality reviews helps the project manager and his/her

manager to enable the necessary and taking the action needed toachieve the project goals finishing the project on time, scope and

budget.


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The team can find benefits the project manager, for the customer

and for the sponsor.For the project manager because that process helps in terma of

discipline and control for the customer because, in the way that

process is anticipating results, also create some kind of proactive

behaviour in the project manager anticipating potential problem tothe customer and finally for the sponsor because this process helpshim to know project details and then to ask the customer upper

management level for clarifications.Management expectations are crucial for the project success but

project reviews add value to such expectations.

The above steps can be represented in the from a diagram to showvarious process items in a project. These diagrams will help in the

review process es to pin point facts and figures of concern postdelivery. Every flow and process can be studied and reviewed for

enhancement in the product or service deliverable in future.


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As an example consider packaging of a tonic bottle in a box;

ASSEMBLE

ASSEMBLE

STICK LABEL

ON BOX

BOTTEL TONIC CAP

OUTLER

BOX

PRINTED

LABEL

CHECK THE

FUTMENT OF CAP

ON BOTTLE

CHECK THE

ALIGMENT AND

POSITION OF LABEL

PACKED

TONIC


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6. WHAT IS JIT? EXPLAIN VALUE ENGINEERING WITH

EXAMPLES.ANS. INTRODUCTION TO JIT

JIT can be considered to be philosophy of manufacturing

founded on the principal of elimination of all waste and therebyincreasing productivity. When the philosophy is applied at workplace, the

approach results in providing parts in just right quantities at the right

time, thus lowering the costs and increasing productivity. Since no extraparts are available, production of only good parts is forced on the system.

JIT has been extended to mean continuous improvement. These principalare being applied to engineering, purchasing, accounting and data

processing also. We will see how JIT helps in implementing leanproduction systems. In these days when technology is able to provide us

with highly accurate equipment which have high capacities and the

business has become global meaning that both suppliers and customersare widely accessible. To remain competitive, cost efficiencies havebecome compulsory. JIT helps in this process. It is extended to the shop

floor and inventory systems of the vendors also. One of the mainchallenges for JIT is frequent changes in production schedules owing to

the changes in demand. This causes the procurements plans to changes. Inthe present day scenario where most manufacturing concerns depends

upon a number of suppliers, who in turn may outsource parts andservices, disruptions have a cascading effect. However, there is a limit tothe agility that a company can build into the system. Communication

right through the supply chain helps in reducing inventories and keep the

flow lines smooth. Success of JIT depends upon a lot of preparation and

committed implementation.VALUE ENGINEERING/ VALUE ANALYSIS

Basically it is a methodology by which we try to find substitutes for a

product or an operation. It can be conducted both internally andexternally. The concept took shape during the Second World War. The

thinking process calls for a deep study of a product and the purpose forwhich it is used, the raw materials used, the processes of transformation,the equipment need etc. and question whether what is being used is the

most appropriate and economical. This applies to all aspects of theproduct. For examples, let us consider a component needs a round brass

rod as raw material in size 21.5 mm. diameter. It has seven operations:cutting, drilling, chamfering boring. Milling, a different size, a different

tool, a different machine, a different cot sequence, a different tool for an


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operation, a different chemical, a different concentration, a different

voltage, shorter time or processing. Studies can be conducted to verifywhether any operation can be eliminated. Simplification of processes

reduces the cost of manufacture. Every piece of material and the process

should add value to of the product so as to render the best performance.

Thus there is an opportunity at every stage of the manufacturing anddelivery process to find alternatives which will increase the functionalityor reduce cost in terms of material, process and time. It should be

remembered that we are not seeking a cost reduction sacrificing quality. Ithas been found that there will be an improvement in quality when

systematic value engineering principles are employed.

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Production Managemnt Set1 Taha