Q.1 What is the purpose of planning?

How does the planning process to be

organized for achieving the process? Show any three key activities in the planning
process.
Answer:
Planning involves defining the organizations goals, establishing strategies for
achieving those goals, and developing plans to integrate and coordinate work
activities. There are at least four purposes of planning. First, planning provides
direction to managers and non managers alike. Next, planning reduces uncertainty
by forcing managers to look ahead, anticipate change, consider the impact of
change, and develop appropriate responses. In addition, planning minimizes waste
and redundancy. When work activities are coordinated around plans, inefficiencies
become obvious and can be corrected or eliminated. Finally, planning establishes
the goals or standards used in controlling. Three key activities in the planning
process are:
1. Choosing a destination
2. Evaluating alternative routes
3. Deciding the specific course of your plan.
Q.2 Highlight the importance of master production schedule (MPS) in an MRP
system.
Answer:
Material Requirements Planning (MRP) is a computer-based production
planning and inventory control system. MRP is concerned with both production
scheduling and inventory control. It is a material control system that attempts to keep
adequate inventory levels to assure that required materials are available when
needed. MRP systems were developed to cope better with dependent demand
items. The three major inputs of an MRP system are the master production
schedule, the product structure records, and the inventory status records. Without
these basic inputs the MRP system cannot function.
The demand for end items is scheduled over a number of time periods and
recorded on a master production schedule (MPS). The master production
schedule expresses how much of each item is wanted and when it is wanted. The
MPS is developed from forecasts and firm customer orders for end items, safety
stock requirements, and internal orders. MRP takes the master schedule for end
items and translates it into individual time-phased component requirements.
Q.3 Elucidate the merits and limitations of trait based and object based appraisal
systems.
Answer:
Performance appraisals are carried out by the HR department of any
company in order to evaluate the performances of its employees and to bring about
improvement in them. Trait based performance appraisal is based upon certain
traits of the employees like employee motivation, attitude, flexibility, quality of work,
quantity of work, cooperativeness, participation in team work and so on. Every
employee is graded on each of these traits. Usually, it is done objectively by yes/no
or satisfactory/unsatisfactory check boxes. The limitation of this performance
appraisal process is that there is no specific definition for any given trait. Evaluation
of a particular trait often varies from one person to the other. This may create
confusion among the employees and gives rise to tension between the employee
and the employer. Also a lot of subjectivity is involved in identifying and evaluating
personality traits, and your appraisal can be tainted by how much you like an
employee. In addition, you may accept substandard performance because an
employee fits in well and exhibits the traits you value.
In object based appraisal system, certain goals and objectives are set by
the employer after discussing them with the employees. The performance of the
employees is evaluated periodically after they submit their status report from time to
time. When there is a specific set of goals, the employee feels motivated and puts in
the best possible efforts to achieve the goals. This method often helps in obtaining
higher levels of performances from the employees. The disadvantage of this process
is that in a way, every employee starts to outperform the other which may result in a
non-cooperative atmosphere in the work place and in turn affecting the productivity.

Q.4 What do you mean by Enterprise Resource Planning (ERP)? Explain the
statement that ERP is a business solution.
Answer:
Enterprise resource planning (ERP) is business process management
software that allows an organization to use a system of integrated applications to
manage the business and automate back office functions. ERP software integrates
all facets of an operation, including product planning, development, manufacturing
processes, sales and marketing. Enterprise Resource Planning is a software solution
that tackles the needs of an organization, taking into account the process view to
meet an organization's goals while incorporating all the functions of an organization.
Its purpose is to make easy the information flow between all business functions
within the boundaries of the organization and manage the organization's connections
with its outside stakeholders.
Organizations consider the ERP system a vital organizational tool because it
integrates varied organizational systems and facilitates error-free transactions and
production. However, ERP system development is different from traditional systems
development. ERP systems run on a variety of computer hardware and network
configurations, typically using a database as an information repository.
Q.5 How is a formal organization different from an informal one?
Answer:
Formal Organization is formed when two or more persons come together.
They have a common objective or goal. They are willing to work together to achieve
this similar objective. A formal organization is formed by the top level management.
Formal Organization has its own rules and regulation. These rules must be followed
by the members (employees and managers). A formal organization has a system of
coordination. It also has a system of authority. It has a clear superior-subordinate
relationship. In a formal organization, the objectives are specific and well-defined. All
the members are given specific duties and responsibilities. Examples of formal
organization are: a company, a school, a college, a bank, etc.

Informal Organization exists within the formal organization. An informal
organization is a network of personal and social relationships. People working in a
formal organization meet and interact regularly. They work, travel, and eat together.
Therefore, they become good friends and companions. There are many groups of
friends in a formal organization. These groups are called informal organization.
An informal organization does not have its own rules and regulation. It has no
system of co-ordination and authority. It doesn't have any superior-subordinate
relationship nor any specific and well-defined objectives. Here in informal
organization, communication is done through the grapevine.
Q.6 Distinguish between industrial goods and consumer goods.
Answer:
Industrial and consumer goods are both classified as products, but their
difference lies in their distinct role in the production process. Industrial goods,
otherwise called capital goods, are used during the production process, while
consumer -- or final -- goods are actually its result. Therefore, these two types of
goods feature distinct characteristics and appeal to different potential buyers. The
goods which are bought for household use, personal use, or family use from retail
stores are called consumer goods. The consumers have certain buying habits, and
based on these habits the consumer goods are divided into three different
subcategories: shopping goods, specialty goods, and convenience goods.
Industrial goods are those which are bought by companies to produce other products
which are sold later are called industrial goods. These goods can be directly or
indirectly used in the production of goods which are sold at retail. Industrial goods
are classified according to their usage instead of consumer habits. The durable
goods are called capital items as they are of very high values, and non-durable
goods are called expense items and are usually used within a year. They have
been categorized into five subcategories: industrial supplies, installations, fabricated
materials and parts, accessory equipment, and raw materials.


Q.7 What do you mean by leadership and motivation? Explain the Herzbergs two
factor model of motivation.
Answer:
"Leadership is the ability of a manager to induce subordinates (followers) to work
with confidence and zeal."
Leadership involves directing, influencing and motivating employees to perform
essential tasks. Every manager has to act as a leader in his area of operation. This
means he has to guide, instruct, lead and motivate his subordinates so as to use
their skills, efficiency, capacity etc. for the benefit of his organization.
"Motivation is the act of stimulating someone or oneself to get a desired course of
action, to push the right button to get desired results."
Managers can motivate their subordinates while guiding them. Motivating means
encouraging people to take more initiative and interest in the work assigned.
Motivation avoids clashes and non-cooperation and brings harmony, unity and co-
operative outlook among employees.
Frederick Herzberg Two Factor Theory of Motivation
This theory states that the attitude of a worker towards work depends on two sets of
factors namely hygiene factors and the motivating factors.
Hygiene Factors: According to Frederick Herzberg, the Hygiene Factors do little
contribution to provide job satisfaction. He called them "dis-satisfiers' as their
absence cause dissatisfaction but their presence is not motivating but only prevent
dissatisfaction. Hygiene factors are company's policies and administration,
supervision, working conditions, salary, job security, status etc.
Motivating Factors: Motivating Factors act as forces of job satisfaction. Motivation
factors are also called 'Satisfiers'. They make people happy with their jobs.
Motivating factors motivate subordinates to take more interest in the work. They
raise efficiency and productivity of employees. Achievement, Recognition for
Accomplishment, Increased Responsibility, Opportunity for Growth and
Development, and Creative and Challenging Work are motivating factors.
Q.8 What is a layout planning? Based on the firms flow strategy, how many basic
types of layout are possible? How do you design for a process layout?
Answer:
The basic objective of layout is to ensure a smooth flow of work, material, and
information through the system. In designing a process layout, we want to minimize
material handling costs, which are a function of the amount of material moved times
the distance it is moved. Basic types:
1) Process 2) Product 3) Fixed-position
Process Layout: A layout that groups similar activities together in departments of
work centers according to the process or function that they perform.
Two techniques used to design process layouts, block diagramming and relationship
diagramming, are based on logic and the visual representation of data.
Block Diagramming: We begin with data on historical or predicted movement of
material between departments in the existing or proposed facility. The next step in
designing the layout is to calculate the composite movements between departments
and rank them from most movement to least movement. Finally, trial layouts are
placed on a grid that graphically represents the relative distances between
departments in the form of uniform blocks. The objective is to assign each
department to a block on the grid so that nonadjacent loads are minimized.
Relationship Diagramming: The preceding solution procedure is appropriate for
designing process layouts when quantitative data are available. However, in
situations for which quantitative data are difficult to obtain or do not adequately
address the layout problem, the load summary chart can be replaced with subjective
input from analysts or managers. Richard Muther developed a format for displaying
manager preferences for departmental locations, known as Muther grid. The
preference information is coded into six categories associated with the five vowels,
A, E, I, O, and U, plus the letter X. The vowels match the first letter of the closeness
rating for locating two departments next to each other. The diamond-shaped grid is
read similar to mileage charts on a road map.

Q.9 What are the elements of a successful project? What tools are available for
scheduling and controlling projects?
Answer:
These elements are:
Delivered as promised Project produced all the stated deliverables.
Completed on time Project completed within the approved schedule.
Completed within budget Project completed under the approved budget.
Delivered quality Project deliverables met all functional, performance, quality
specifications.
Achieved original purpose The project achieved its original goals, objectives,
purpose.
Met all stakeholder expectations The complete expectations of each key
stakeholder were met, including all client acceptance criteria, and each key
stakeholder accepts the project results without reservation.
Tools are available for scheduling and controlling projects. These are PERT and
CPM.
Q.10 Find the expected time and variance of each activity. Find the critical path. How
long will it take to complete this project?
Answer:
Activity Expected Time Variance
A 8 1.78
B 10 0.44
C 3 0.11
D 7 0.11
E 6.33 0.44
F 7 0.44
G 6 0.44
H 3.17 0.03