Q.1 What do you understand by Vendor-Managed Inventory (VMI)?

Q.2 Explain briefly the four classification of scheduling strategies & its approaches.

Q.3 Define production management. What are the various functions involved in production management?

Q.4 Explain the various phases in project management life cycle. Project Management Life Cycle A life cycle of a project consists of the following steps.

Phases of project management life cycle Project management life cycle has six phases: 9.2.1.1 Analysis and evaluation phase 9.2.1.2 Marketing phase 9.2.1.3 Design phase 9.2.1.4 Execution phase 9.2.1.5 Control inspecting, testing, and delivery phase 9.2.1.6 Closure and post completion analysis phase In this section, let us know about the six phases of project management life cycle in detail. (See Figure 9.1 Project management life cycle)
Figure 9.1: Project management life cycle

9.2.1.1 Analysis and evaluation phase Analysis and evaluation phase is the initial phase of any project. In this phase, information is collected from the customer pertaining to the project. From the collected information, the requirements of the project are analysed. According to the customer requirement, the entire project is planned in a strategic manner. The project manager conducts the analysis of the problem and submits a detailed report to the top management. Project Manager Analysis Report The report should consist of the:

rmation on the project feasibility The important tasks of the project manager during the phase of analysis and evaluation include: Specification Requirements Analysis (SRA): SRA has to be conducted to determine the essential requirements of a project in order to achieve the target. Feasibility Study: Feasibility study has to be conducted to analyse whether the project is technically, economically, and practically feasible to be undertaken. Trade-off Analysis: Trade-off analysis has to be conducted to understand and examine the various alternatives which could be considered for solving the problem. Estimation: Before starting a project, estimation has to be conducted on the project cost, effort required for the project, and the functionality of various processes in the project. System Design: According to the customer requirement, a general system design has to be chosen to fulfill the requirements. Project Evaluation: The project has to be evaluated in terms of expected profit, cost, and risks involved. 9.2.1.2 Marketing phase A project proposal is prepared by a group of people including the project manager. This proposal has to contain the strategies adopted to market the product to the customers. 9.2.1.3 Design phase Design phase involves the study of inputs and outputs of the various project stages. (See Figure 9.2 Study of inputs and outputs in design phase) Inputs received consist of: project feasibility study, preliminary project evaluation details, project proposal, and customer interviews. Outputs produced consist of: system design specifications, functional specifications of the project, design specifications of the project, and project plan.

9.2.1.4 Execution phase In execution phase, the project manager and the team members work on the project objectives as per the plan. At every stage during the execution, reports are prepared. 9.2.1.5. Control inspecting, testing and delivery phase During this phase, the project team works under the guidance of the project manager. The project manager has to ensure that the team working under him is implementing the project designs accurately. The project has to be tracked or monitored through its cost, manpower, and schedule. The project manager has to ensure ways of managing the customer and marketing the future work, as well as ways to perform quality control work. 9.2.1.6 Closure and post completion analysis phase

Upon satisfactory completion and delivery of the intended product or service the staff performance has to be evaluated. The project manager has to document the lessons from the project. Reports on project feedback are to be prepared and analysed. A project execution report is to be prepared. Let us have a quick recap of what is involved in the above phases. Analysis and evaluation phase: The preparation stage involves the preparation and approval of project outline, project plan, and project budget. Assigning task to the team members: The next stage involves selecting and briefing the project team about the proposals, followed by discussions on the roles and responsibilities of the project member and the organisation. Feasibility study: The feasibility or research stage establishes whether the project is feasible or not and establishes the risk factors likely to be faced during the course of the project execution and the related key factors to overcome the problems. Execution phase: A detailed definition and plan for the project and its execution is prepared by the team and coordinated by the project manager. Implementation stage: The implementation stage involves the execution of the project as per the plan. This also involves careful monitoring of the project progress and managing the changes, if any, within the scope of the project framework. Closure and post completion analysis phase: The final stage involves satisfactory delivery of the product/service to the customers. Upon completion, a project review is to be conducted by the project manager along with team members, sponsors, and customers. A project review process involves discussions about the progress, performance, hurdles that were overcome and problems faced, so that, such instances could be avoided in future projects.

Q.5 Explain the ingredients of a business process. Explain Physical Modelling. The ingredients The ingredients that might be used in a business process can be briefly outlined as shown below. data which accomplishes the desired business objective Acquisition, storage, distribution, and control of data which undertakes the process across tasks Persons, teams, and organisational units which helps to perform and achieve the tasks Decisions which enhances the value of data during the process We also have some behavioural aspects of the business process, mainly the decision making process where humans are involved. Decision failures are common and research has shown that, the failure of decisions is because of: sily for verification and/or confirmation

The above listed factors result in faulty decision making. Being aware and avoiding them consciously improves the processes of the business Physical Modelling Physical process modelling Physical process modelling is concerned with the actual design of data base meeting the requirements of the business. Physical modelling deals with the conversion of the logical model into a relational model. Objects get defined at the schema level. The objects here are tables created on the basis of entities and attributes. A database is defined for the business. All the information is put together to make the database software specific. This means that the objects during physical modelling vary on the database software being used. The outcomes are server model diagrams showing tables and relationships with a database

Q.6 Define the term quality. Explain the concept of quality at source.

Quality control techniques are specific activities and procedures adopted using data for determining a particular aspect of quality for arriving at decisions which are conclusive. Each technique though developed and tested by senior personnel or consultants will be simple enough to be understood, implemented, and interpreted by the personnel for their immediate use. The techniques to be used, the criteria to be adopted and the way of interpreting data are handed over to them for use. Some of the quality control techniques are:

Quality at the source The concept of quality makes the production worker responsible for inspecting his own work and for taking corrective actions. Since inspection is done immediately after a job is done, finding the cause of the error with clarity aids in faster rectification. Often, some fundamental processing mistakes get identified and their analysis improves the quality in the long run. Every worker has the authority to stop production, if he finds some serious defect. This puts responsibility for quality on the workers and gives them pride in their work. Help should always be available from the Quality Control personnel to help workers understand the implications of the above actions. This brings in cooperation and improves the achievement of quality. The information generated may be used to effect improvements at the suppliers end also. The entire process brings in openness, commitment, and participation and helps in achieving quality.

Assignment Set- 2 (60 Marks) Note: Each question carries 10 Marks. Answer all the questions. Q.1 What is value engineering? Explain the steps involved in Value analysis. value engineering Value Engineering/Value Analysis has gained importance in todays manufacturing field because, of the necessity of making all components as economically as possible. Every unnecessary component, every unwanted operation has to be eliminated for economising. Materials may have to be changed, tolerances in manufactures relaxed because value can be created in terms of reduced volume, increased strength or longer service. Involving the supplier and utilising their knowledge and experience are crucial for the companys success.

Process of Value Analysis The process of value analysis can be divided, into the following four steps Data Gathering, Analysis and Valuation of Functions, Idea Generation and Evaluation of Substitutes, and Implementation and Regulation

Step 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 material used, its dimensions, characteristics, availability, lead time, price, mode of transport, storage, 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 for information gathering at a later date. No information should be considered unimportant or irrelevant. It will be advantageous to record the source of information. Classification will be helpful. Table 13.1 gives you a brief about the key questions, techniques, and tasks that need to be performed in step 1. Step 2: Analysis and Valuation of Functions The function of each part is listed. They are categorised 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 weightage 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. Table 13.2 gives you a brief about the key questions, techniques, and tasks that need to be performed in step 2. Step 3: Idea Generation and Evaluation of Substitutes Having collected data and analysed them and knowing the relative importance of the functions, the next step is to identify the material or process that is amenable to the application of Value Engineering. Since there are a numbers of factors to be considered and to break away from the conventional thinking, brain storming is preferred. Ideas are allowed to be submitted to the group for discussion. A few of them will turn out to be worth a more detailed evaluation. Debates about suitability or disadvantage of any particular change envisaged are conducted. Facts are analysed and consensus arrived as to what can be attempted. Many times the existing material or process will be ideal and nothing need be done. But a discussion and decision about this confirms that maximum value is being derived. Table 13.3 gives you a brief about the key questions, techniques, and tasks that need to be performed in step 3.

Step 4: Implementation and Regularisation The decision taken after evaluation is conveyed to the top management and clearances obtained for implementation. Teams are formed for each implementation; concerned persons are involved and educated about the impending change. Their cooperation is necessary for the change to be effective. If any small changes are necessary when a few trials 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 lines of Continuous Improvement. Table 13.4 gives you a brief about the key questions, techniques, and tasks that need to be performed in step 4.

Q.2 Describe dimensions of quality. Which are the quality control tools? Dimensions of quality Before we consider quality control, let us see what quality means. Quality is inherent in the product or service that is rendered to the customer. Since we are attempting to measure the same, we will look into those aspects of quality called dimensions of quality. (See Figure 6.1 for Dimensions of
quality)

1. Quality of Design: A product is designed keeping in view of the customers requirement. For designing a product the manufacturer or service provider should be aware of the specifications of different features required to incorporate in the product. Some of the features to be known for designing a product include material, dimensions, and characteristics. The quality of the product is introduced by the design of these features. Inspection of the manufacturing processes is of utmost importance in ensuring quality of performance. 2. Conformance to Design: Conformance to design is the degree to which the manufactured product or delivered service meets the parameters that have been incorporated in the design. It verifies that the variability in the process is within acceptable limits so as not to compromise the functionalities that the designer wanted. 3. Utilisation Conditions: Utilisation conditions refer to the necessity of the customer being informed / trained so that the purpose for which the product was made is realised by the customer in total, thus enhancing his satisfaction. Instructions, manuals, help-lines, and on-site training by the manufacturers personnel improve the perception of quality. 4. After Sales Service: There are so many reasons why products do not function to the expected levels. It may be improper use, unexpected or additional demands, improper assembly or even manufacturing defects. There is a need to rectify these and make products or services perform up to the expected standard. The firm should put in place a system by which these possibilities are anticipated and attended to give customer satisfaction. This is an important, but often neglected dimension of quality.

Quality Control Techniques Quality control techniques are specific activities and procedures adopted using data for determining a particular aspect of quality for arriving at decisions which are conclusive. Each technique though developed and tested by senior personnel or consultants will be simple enough to be understood, implemented, and interpreted by the personnel for their immediate use. The techniques to be used, the criteria to be adopted and the way of interpreting data are handed over to them for use. Some of the quality control techniques are:

6.3.1 Quality at the source The concept of quality makes the production worker responsible for inspecting his own work and for taking corrective actions. Since inspection is done immediately after a job is done, finding the cause of the error with clarity aids in faster rectification. Often, some fundamental processing mistakes get identified and their analysis improves the quality in the long run. Every worker has the authority to stop production, if he finds some serious defect. This puts responsibility for quality on the workers and gives them pride in their work. Help should always be available from the Quality Control personnel to help workers understand the implications of the above actions. This brings in cooperation and improves the achievement of quality. The information generated may be used to effect improvements at the suppliers end also. The entire process brings in openness, commitment, and participation and helps in achieving quality. 6.3.2 Quality control tools Flow Chart, Check sheet, Histogram, Pareto Analysis, Scatter Diagram, Control Chart, and Cause and Effect Diagram are the basic seven control tools considered for achieving quality. (See Figure 6.2 for Quality control
tools)

a) Flow Chart: Flow chart is a visual representation of process showing the various steps. It helps in locating the points at which a problem exists or an improvement is possible. Detailed data can be collected, analysed, and methods for correction can be developed using flow charts. The various steps include:

Each decision point generates alternatives. Criteria and consequences that go with decisions are amenable to evaluation for purposes of assessing quality. The flow chart helps in pin-pointing the exact points at which errors have crept in. (See Figure 6.3 for Sample flow chart) b) Check Sheet: Check sheets are used to record the number of defects, types of defects, locations at which they are occurring, times at which they are occurring, and workmen by whom they are occurring. The sheet keeps a record of the frequencies of occurrence with reference to possible defect causing parameters. It helps to implement a corrective procedure at the point where the frequencies are more. (See Table 61. for Sample check sheet) The table shows that the number of defects 1 and 5 are not many as compared to defect no 2 which increased over the days and appears to be stabilising at the higher side and therefore needs to be attended immediately. The column which shows days can be changed to observed by the hour, if need be. c) Histogram Histograms are graphical representations of distribution of data (See Figure 6.4 for Sample histogram chart). They are generally used to record huge volumes of data about a process. They reveal whether the pattern of distribution has a single peak, or many peaks and also the extent of variation around the peak value. This helps in identifying whether the problem is serious. When used in conjunction with comparable parameters, the visual patterns help us to identify the problem which should be attended to. The values shown are the number of observations made regarding a parameter. Sometimes, the percentages are shown to demonstrate the relative contribution of each of the parameters. d) Pareto Analysis: Pareto analysis is a tool for classifying problem areas according to the degree of importance and attending to the most important. Pareto principle, also called 80-20 rule, states that 80 percent of the problems that we encounter arise out of 20 percent of items. If we find that, in a day, we have 184 assemblies having problems and there are 11 possible causes, it is observed that 80 percent of them, that is, 147 of them have been caused by just 2 or 3 of them. It will be easy to focus on these 2 or 3 and reduce the number of defects to a great extent. When the cause of these defects has been attended, we will observe that some other defect becomes predominantly observed and if the process is continued, we are marching toward zero defects. e) Scatter Diagram: Scatter diagram is used when we have two variables and want to know the degree of relationship between them (See Figure 6.5 for Sample scatter diagram). We can determine if there is cause and effect relationship between the variables and the degree of extent over a range of values of the variables. Sometimes, we can observe that there is no relationship, in which we can change one parameter being sure that it has no effect on the other parameter.

We can see that the change in variable 2 does not have much effect on variable 1. The other interpretation can be that for a small change in variable 1, the effect on variable 2 is more.

f) Control Charts: Control charts are used to verify whether a process is under control. Variables, when they remain within a range, will render the product and maintain the specifications. This is called the quality of conformance. The range of permitted deviations is determined by design parameters. Samples are taken and the mean and range of the variable of each sample (subgroup) is recorded. The mean of the means of the samples gives the control lines. Assuming normal distribution, we expect 99.97 percent of all values to lie within the Upper Control Limit (UCL) and Lower Control Limit (LCL) representation of data helps in changing settings to bring back the process closer to the target.

Q.3 What are the objectives of layout? Explain the classification of layouts.

Q.4 List the benefits of forecasting. Discuss the role of forecasting in modern business context.

Q.5 Mention the significance of plant location decision. Explain the location decision sequence.

plant location Planning is the most important function of management. It is important especially, when we have to deal with lands, buildings, and machineries. Lands, buildings and machineries are costly and once fixed cannot be moved easily. Planning, therefore, requires a lot of thought, data gathering, and estimates for the future. These considerations are vital for the success of any firm. Now to deeply understand the importance of planning in operations management Factors influencing Plant Location can be broadly divided into two types namely: general factors and special factors

In this section, let us know in detail about the factors influencing plant location. 5.2.1.1 General factors The general factors that influence the plant location are listed below (See Figure 5.2 General factors influencing plant location). 1. Availability of land: Availability of land plays an important role in determining the plant location. Many-a-time, our plans, calculations and forecasts suggest a particular area as the best to start an organisation. However, availability of land may be in question. In such cases, we will have to choose the second best location. 2. Availability of inputs: While choosing a plant location, it is very important for the organisation to get the labour at the right time and raw materials at good qualities. The plant should be located: Near to the raw material source when there is no loss of weight At the market place when there is a loss of weight in the material Close to the market when universally available, so as to minimise the transportation cost

3. Closeness to market places: Organisations can choose to locate the plant near to the customers market or far from them, depending upon the product they produce. It is advisable to locate the plant near to the market place, when: The projection life of the product is low The transportation cost is high The products are delicate and susceptible to spoilage After sales services are promptly required very often The advantages of locating the plant near to the market place are: Consistent supply of goods to the customers Reduction of the cost of transportation 4. Communication facilities: Communication facility is also an important factor which influences the location of a plant. Regions with good communication facilities viz. Postal and Tele communication links should be given priority for the selection of sites. 5. Infrastructure: Infrastructure plays a prominent role in deciding the location. The basic infrastructure needed in any organisation are: Power: For example, industries which run day and night require continuous power supply. So they should be located near to the power stations and should ensure continuous power supply throughout the year. Water: For example, process industries such as, paper, chemical, and cement, requires continuous water supply in large amount. So, such process industries need to be located near to the water. Waste disposal: For example, for process industries such as, paper and sugarcane industries facility for disposal of waste is the key factor.

6. Transport: Transport facility is a must for facility location and layout of location of the plant. Timely supply of raw materials to the company and supply of finished goods to the customers is an important factor. The basic modes of transportation are by Air, Road, Rail, Water, and Pipeline. The choice of location should be made depending on these basic modes. Cost of transportation is also an important criterion for plant location. 7. Government support: The factors that demand additional attention for plant location are the policies of the state governments and local bodies concerning labour laws, building codes, and safety. 8. Housing and recreation: Housing and recreation factors also influence the plant location. Locating a plant with the facilities of good schools, housing and recreation for employees will have a greater impact on the organisation. These factor seems to be unimportant, but have a difference as they motivate the employees and hence the location decisions. 5.2.1.2 Special factors The special factors that influence the plant location are: 1. Economic stability outside investments 2. Cultural factors 3. Wages 4. Joint ventures support of big time players 5.2.1.3 Rating methods General factors or special factors each factor has its own importance in determining the location of a plant. Therefore, ranking them and giving weightage for them is one of the ways of determining the location. The methods which determine the most likely location are: 1. Rating plan method 2. Factor rating method 3. Point rating method 4. Break-even analysis 5. Centre of gravity method In this section, you will study in detail the methods to determine the most likely location. 5.2.1.3.1 Rating plan method In rating plan method, the various factors for locating a plant are given ratings depending upon the perception of the management. The location which gets the maximum rating, considering all the factors, is chosen for locating the plant.

Q.6 What is meant by business process? Explain logical process modelling?

A business process is a process designed to achieve a particular business objective. It refers to the techniques and activities used as part of Business Process Management discipline. Management process gets exhibited in corporate governance and strategic management. The operational component of Management consists of workflow across the functions which realise the objectives of the business. In this context, modelling acts as a guide for identifying the gaps in the processes and thus undertakes measures to align them. Processes have a tendency of deviating because of the dynamics of the business. Models act as anchors to stabilise the responses to keep the processes on track. Business Process Modelling is a change process. In this unit, we will see the role of Business Process Modelling (BPM) in achieving the overall business objectives Logical process modelling Logical process modelling is the representation of putting together all the activities of business process in detail and making a representation of them. The initial data collected need to be arrange in a logical manner so that, links are made between nodes for making the workflow smooth. The steps to be followed to make the work smoother are given below: 1. Capture relevant data in detail to be acted upon 2. Establish controls and limit access to the data during process execution 3. Determine which task in the process is to be done and also the subsequent tasks in that process 4. Make sure that all relevant data is available for all the tasks 5. Make the relevant and appropriate data available for that task

6. Establish a mechanism to indicate acceptance of the results after every task or process. This is to have an assurance that flow is going ahead with accomplishments in the desired path Some of these activities may occur in a sequential order whereas; some of them may run parallel. There may even be circular paths, like re-work loops. Complexities arise when the process activities are not connected together. Logical process model consists of only the business activities and shows the connectivity among them. The process model is a representation of the business activities different from the technology dependent ones. Thus, we have a model that is singularly structured only for business activities. Computer programmes are also present in the total system. This allows the business oriented executives to be in control of the inputs, processes and outputs. The Logical Process Model improves, control on the access to data. It also identifies, who is in possession of data at different nodes in the dataflow network that has been structured. A few of the logical modelling formats (See figure 7.3 Ways of representing logical process modelling) are given below: 1. Process Descriptions with task sequences and data addresses 2. Flow Charts with various activities and relationships 3. Flow Diagrams 4. Function hierarchies 5. Function dependency diagrams Every business activity, when considered as a logical process model, can be represented by a diagram. It can be decomposed and meaningful names can be given to the details. Verb and Noun form combinations can be used to describe at each level. Nouns give the name of the activity uniquely and are used for the entire model meaning the same activity.