ADL 14: Production and operation management Assignment A

Q. NO. 1. (a) Define production management and discuss its scope and functions. Ans. Production an operations management deals with the conversion of inputs into outputs, using physical resources, so as to provide to desired utility/utilities of form place possession or state or a combination there of to the customer while meeting the other organizational objectives of effectiveness, efficiency and adaptability. The production management can be briefly understood by the following diagram. Transformation process: Inputs --Transformation process --- outputs The input and /or output could also be non physical such as information, but the conversion process uses physical resources in addition to other non physical resources. The management for the use of physical resources for the conversion process is the distinguishes production and operation management from other functional disciplines. Often, production and operations management systems are described as providing physical goods or services. Thus we may also say that the actual production and operations management systems are quite complex involving multiple utilities to be provided to the customer, with mix of physical and non physical inputs and outputs and perhaps with a multiplicity of customers. Today our customers not only are outsiders but also our own inside staff. In spite of these variations in production and operations management distinguishes itself in terms of conversion effected by the use of physical resources such as man material and machinery. Scope and function of production management: The production and operations management function can be broadly divided into the following four areas:Technology selection and management: - This is primarily an aspect pertaining to the long term decision with some spill over into the intermediate region. It is a decision that will have a significant bearing on the management of manpower, machinery and materials , capacity of the operations system and also on the type of disturbances it can create within and outside the system a technology decision closely linked with the capacity and system maintenance

Q. NO. 1. (b) Production Management deals with decision- making related to production process so that the resulting goods or services are produced according to the specifications, in the amounts and by the schedules demanded and at a minimum cost Discuss? Ans. Production management deals with decision making related to production process so that the resulting goods or services are produced according to the specification, in the amounts and by the schedules demanded and at a minimum cost. This can be discussed with the help of following points. 1. Production management provides goods or services according to specification: The specification or technology selection is not connected with day to day sort term decision handled in plans. It is an important problem to be addressed in the age of spectacular technological advances, so that an appropriate choice is made by a particular organization to suit its objectives. Production process results in schedules: - Scheduling is an important decision area of production. Management which deals with the timing of various activities time phasing of the filling of the demands. It is evident that as the span of fluctuation in variety and volume gets wider. The scheduling decisions are very important which determine the system effectiveness e.g. customer delivery as well as the system efficiency. i.e. productive use of machinery and labour at minimum cost. We can also say that the need for system effectiveness coupled with system efficiencies determine the system structure and the importance of schedules.

2.

Conclusion: - The recent philosophy is that the technology is subordinate to the customer requirements dictate the technology generation and use. It may be noted that a distinction need to be made between scientific research and technology. Thus form the above study we come to the conclusion that the above quotation is rightly says that production management deals with decision making related to production process so that the resulting goods or services are produced according to the specification in the amounts and by the schedules demanded and at a minimum cost.

Ques 2 (a) Compare and contrast the continuous and Intermittent Production systems? Answer. The comparison between continuous and intermittent production system is made as follows: Continuous Production System 1. Volume of production is increased. 2. Service orientation an thus ensuring that the customer gets value. Intermittent Production System 1. Production is done in batches. 2. Service orientation but some time can not provide different output due to much demand. 3. Competitiveness and efficiency. 3. Competitiveness s and efficiency also in intermitted system. 4. The amount of products demanded 4. Amount of products are produced are use of regular use. according to specific demand. 5. Capacity: Maximum quantity of 5. Capacity: Products are produced products that can be produced for the according to specific demand. planned duration. 6. Inventory space: Maximum storage 6. Much of storage capacity is not capacity of the firm for the duration required, as products are produced as planned required. per demand. 7. Decisions are well planned and any 7. Decisions variable and may be change in production plan takes a long changed according to the type of time. product with little variation if possible. 8. For continuous production maximum 8. In intermitted production limited resources available such as personnel, resources required but some time material, machine utilities, cash floor unique resources may be required. space. 9. Maintenance is not done up to 9. Maintenance of high quality is standard. achieved. 10. Flexibilities in production not 10. Flexible facilities and multi-skilled possible. work force required.

Q. NO. 2 (b) What do you understood by the term Flexible manufacturing system? Do you think it necessary for our country; discuss high lighting the examples from our industries? Ans. Flexible Manufacturing system (FMS): Once a Group Technology (GT) for the parts and products is available, a computer can be used to design the production operations, control the parts flow and control the machine tools in a small batch type of production situation. Such Computer Aided Manufacturing (CAM) is very useful for small lot production. If m the machine tools feature NC or CNC technology, it gives tremendous flexibility to the operations and

numerous parts in the family can be addressed with no change-over. For an efficient and flexible manufacturing system (which could address a diverse requirement efficiently) the availability of a suitable material handling system is very important. When the material handling function between machines in such GT cell is brought under computer control, we have a Flexible manufacturing system (FMS). Thus FMS generally has the following three components: (i) CNC machine tools; (ii) Computer controlled material handling system; (iii) Supervisory computer control network. FMS systems are generally very useful for production involving an intermediate range of variety and intermediate amount volume. FMS could be very flexible and effective within the range that it is designed for. But it is limited to the range tasks and flexibility that it is designed /programmed for. Machines, including robots which are described next have this inherent inflexibility. Human beings can have flexibility of the other kind: they cab be trained for a broader variety of tasks and they cab be deployed at different places as they cab cross trained. Care should be taken while designing an FMS that it provides the needed qualitative and quantitative gains to the production facility and also that it needs minimal human intervention in its operation. A well- designed, well planned FMS would be a valuable strategic asset to the company. FMS Necessity to our Country. Our economy and industrial development has by and large crossed the developing stage and we are in a consolidating stage. Again as a one of the largest software industries in the world, we have an advantage to adopt the FMS production system. We have also been increasingly realizing the importance of time as a dominant dimension of global competition. It will have also competitiveness in keeping the prices lower & quality- product and at the same time factor is also maintained. 1. Dabur group Foods Division is the brightest example of adopting the system thereby it introduced a new band on every successive Monday during a span of six weeks. 2. Also Coates, an ink-making company has set up an online computerized system linking every point from which information originates within the value chain: sales offices, depots, factories, transportations hubs and major supplies. Q. NO. 3. (a) What is production planning and Control ? Ans. Planning and control are two important components of the management process. Planning involves the consideration of all input variables to achieve defined output goals. Control involves the corrective actions taken when the actual output varies from the desired one by bringing the actual output in line with the planned out put.

Production planning , in particular, would therefore consist mainly of the evaluation an determination of production-inputs such as labour (manpower), machinery and equipment , materials, and utilities to achieve the desired goals. The definition of the goals is also, of course, a part of the production planning process. Q. NO.3. (b) State main elements or functions of PPC? Ans. The main functions of PPC are as follow:1. 2. 3. 4. 5. 6. 7. materials and Procurement Planning Manpower Planning Finance & Investment Planning. Engineering and Maintenance Planning Quality Planning Marketing Planning Distributions Planning

Q. NO. 3 (c) Define aggregate planning and state its importance. Ans. Production planning in the intermediate range of time is termed as aggregated planning. It is thus called because the demand on facilities and available capacities is specified in aggregated qualities e.g. aggregate quantities of thousand of litres of paints or number of automobiles etc. This mean that the total demand (expected) is measured without regard the product mix that makes up the figure. The average plan defines the best combination of work force level , inventory on hand and production rate that matches the companys resources to the market demand. Importance of Aggregate Planning: 1. It helps in how resources can be best employed to meet market demand for a given product. 2. It helps in minimizing production cost by making appropriate changes in productions rates and work force levels 3. It helps improve profit, customers services and utilization of resources.

Ques No. 4 For different types of manufacturing systems, we definitely have different production planning & control (PPC). Do you agree with the statement? Explain your viewpoint. Also explain the PPC for Intermittent & Continuous manufacturing systems. Ans. Different types of manufacturing systems have different production planning and control, this is a oblivious right statement. As different types of products needs various sub- assemblies and so as this need different PPC? This also includes consideration oaf all input variables to achieve a definite output goal. Again, control needs the corrective actions taken when the actual out put varies from the desired one by bringing the actual output in line with the planned output. There are mainly three types of production, such as- continuous, intermittent and flexible manufacturing production. Planning and strategy for a particular product has to adopted differently considering various other factors. Intermittent and continuous manufacturing systems largely varies for their respective nature as explained below:: Continuous Production System Intermittent Production System

1. Volume of production is increased. 1. Production is done in batches. 2. Service orientation an thus ensuring 2. Service orientation but some time that the customer gets value. can not provide different output due to much demand. 3. Competitiveness and efficiency. 3. Competitiveness s and efficiency also in intermitted system. 4. The amount of products demanded 4. Amount of products are produced are use of regular use. according to specific demand. 5. Capacity: Maximum quantity of 5. Capacity: Products are produced products that can be produced for the according to specific demand. planned duration. 6. Inventory space: Maximum storage 6. Much of storage capacity is not capacity of the firm for the duration required, as products are produced as planned required. per demand. 7. Decisions are well planned and any 7. Decisions variable and may be change in production plan takes a long changed according to the type of time. product with little variation if possible. 8. For continuous production maximum 8. In intermitted production limited resources available such as personnel, resources required but some time material, machine utilities, cash floor unique resources may be required. space. 9. Maintenance is not done up to 9. Maintenance of high quality is

standard. 10. Flexibilities possible.

in

production

achieved. not 10. Flexible facilities and multi-skilled work force required.

Ques 5 (a) Plant layout is the physical arrangement whether existing or in plans, of industrial facilities. In the light of above statement discuss various types of layouts commonly found in different industries. Ans. There are three basic types of plant lay outs , largely depending upon the method of production: 1. Process Layout or Layout by Function. This is a job-shop type of production where the equipment performing similar operations is grouped together. For a an example , grinding machines could be grouped together to form a work area, milling machines could be grouped together, drilling machines could be grouped together. Etc. It is particularly used where the volume of manufacture is low and the variety of jobs is great. 2. Product Layout or Line Production. Here the equipment laid out according to the sequence in which it is used for making the product. Product layout is usually suitable for assembling operations, for example in the automobile industry, the number of equipment in a Product layout is much more as compared to the Process layout. Therefore, the utilization of the equipment has to be sufficiently high to justify the higher level of capital investment necessary in a product layout. This means, the volume of production should be large and the variety of products should be low so that there is very little time ]lost in setting up the machinery. Each line lay out caters only to one product. 3. Fixed position Lay out In this layout, the material remains in a fixed position, but the , machinery, tools, workmen etc are brought to the material. Such a layout may be preferred when the equipment and the machinery is small in number & size and where the workmen are highly skilled to perform the various small jobs on the product. For instance, making of automotive batteries where 20-30 battery case are fixed in position and the workman keeps moving from one battery to another, each time fixing certain components such as the electrodes, the chemicals, etc into the main Skelton of the battery.

Q5. (b)

What are the benefits that accrue due to a good plant layout ?

Ans; The main benefits that accrue due a good plant layout are: 1. 2. 3. 4. 5. 6. Q NO.5(C) facilities . Ease of Working. maximum safety & minimum health hazards for people. Minimum handling of materials. Minimum damage of and spoilage of materials. Reduced congestion of materials, machinery and men. Flexibility with regard to changing production conditions. Mention the guiding principles in designing a layout of production

Ans: The guiding principles in designing a layout of production facilities are as follows: 1. 2. 3. 4. The total movement of materials should be minimum. The arrangement of the work area should have as much congruence as possible with the flow of materials within the plant (from the stage of raw material to the stage of finished goods). . The layout should ensure adequate safety and healthy working conditions for the employees. A good layout should take into consideration all the three dimensions of space available. In addition to the floor space, the vertical space available should also be taken into account while designing the work areas. The lay out should be adaptable or flexible enough so as to allow for probable changes in the future as all systems should anticipate changes in the future. A good lay out has to satisfy the availability of space , the fix and the work area requirements of machinery an other utilities , the follow direction, type and number of movement s of the materiel , workers and also the future anticipated changes.

5. 6.

ADL -14: Production an Operation Management Assignment B Q. NO. 1. (a) Explain how work study (work Measurement & Method study) leads to higher productivity? Ans. The work study (work measurement and method study) leads to the higher productivity by adopting various techniques of work measurement and methods of study. This cab be understood by the following explanation. Method Study To improve methods Of Production SLECT Work to be studied ---- Work Study ---- Work Measurement to assess human effectiveness SLECT work to be measured.

RECORD DEFINE Present method to limit of detail economically, method to be used. Justifying use of : CHARTS DIAGRAM AND MODEL MEASURE MEANS Examine quantity of work involved in that The facts critically considering in turn method PURPOSE-PLACE-SEQUENCEdirect pre-determination PERSON MEANS observation using: DEVELOP Best methods under prevailing circumstance II II V INSTAL MAINTAIN Defined and measured method II II II II V To achieve improved factory and TIME SYNTHESIS ANALYTICAL STUDY ESTIMATING: I I Apply relaxation allowances OBTAIN work unit value Add other justifiable allowances. ESTABLISH target time for defined method II V to achieve a basis of comparison

Work place lay out. Improved design of equipment. Better working environment. Reduction of fatigue resulting in improved use of material. Plant and Equipment Man-power.

Of alternative methods. Correct initial meaning. Continuous economy of man-power. Effective planning of production. Realistic labour costing. Basis for sound incentive schemes.

Q. NO. 1. (b) How Standard Time per unit is calculated? Calculate the standard Time per piece in the following case. Calculation of Standard time per unit price: Element& Observation Timing (0.7) minutes Desscription 1 2 3 4 5 1. Clean 0.09 1.00 1.02 1.02 1.01 machine 2. Load 2.01 2.02 2.0 1.95 1.97 machine 3.Cut 2.80 2.99 2.79 2.80 2.80 (auto) 4. Unload 0.06 0.07 .07 -0.05 piece Ans.

6 1.00 2.0 2.80 0.06

7 1.02 2.02 2.81 0.06

8 1.01 -2.81 0.07

9 1.0 1 2.0 1 2.8 0 0.0 7

10 1.00 2.0 2.80 0.80

Normal time for element 1 = Arithmetical average of observation time x Performance rating expressed In percent 100% =.918 x 110 / 100 = 1.0098. Normal time for element 2 = Arithmetical average of observation time x Performance rating expressed in percentage with 100% as the accepted performance. = 1.798 x 110 / 100 = 1.9778. Normal time for element 3 = Arithmetical average x percentage / 100 = 2.820 x 110 / 100 = 3.1020. Normal time for element 4 = .257 x 110 / 100 =0.2827 Total normal time for elements (minutes) = 1.0098 + 1.9778+ 3.1020+ .2827 =6.3723 Standard time = 6.3723 / (1-.15) = 7.4968 minutes.

Q. NO. 2 (a) Solve the following transportation problem and find the minimum transportation cost? Ans. Customer Factory I II III Penalties D! 5 4 2 02 D2 7 6 6 01 D3 3 9 4 01 D4 8 5 5 03 Avbl qty 300 500 200 1000 Penalties 02 01 02

Option I: Step 2. We observed that column 4 has highest penalties and cell no 24 has the lowest cost in that column. We assign the largest possible quantity to the cell which will be 500. Total Cost =5 x 500 = Rs. 2500/-

Step 3. After having the made assignment crossed out, column no. 4. Option no. II. Repeated the Steps. 1 to 3 for the remaining rows and columns. We observed that column 1 has highest penalties and cell no. 31 has the lowest cost. We assigned the largest possible quantity to this cell which will be 200. Total Cost =2 x 200 = Rs. 400/-

Option III. Repeated the steps 1 to 3 for the remaining rows and columns. We observed that row 1 has the largest penalties and cell no. 12 has the lowest cost in that row. We assign largest quantity that will be 300. Total Cost = 3 x 300 = Rs. 900/-

Thus by comparing the all three options, we found that option no. 2 is optimal.

Q. NO. 2 (b) A company makes two kinds of leather belts. Belt A is a high quality belt, and B is of lower quality. The respective profits are Rs.40 and Rs. 30 per belt. Each belt of type A requires twice as much time as a belt of type B, and if all belts were of type B, the company could make 1000 per day. The supply of leather is sufficient for only 800 belts per day (both A and B combined) Belt A requires a fancy buckle, and only 400 per day are available. There are only 700 buckles a day available for belt B. Set up the linear programming equations for the problem and use graphical method for solving the same.

Ans.

The objective function is give by maximum profit and contribution.

P = 40A + 30B -- (i) Subject to constraints: 100A +700B < than 800 1 (constraint for raw material, 700 buckle for type B belt) 400A + 400B < than 800 2 (constraint for raw material, and 400 buckle for type A belt.) We can convert equation no. 2 to 100A + 100B < than 200 2 -100A +-700B -< than 800 --1 By subtracting equation 1 from equation 2 we will get; 600B < than 600 B = 100 Putting the value of B in to equation no 2 we get, A=1 So company can make equal no of belts of type A and type B , that is 400 no of belt of A and 400 no. of belt of type of B. Graphical representation: P =40A+30B Lets take the value of P =800, if A =2 then B = 24. (i) 800 = 40 2 + 30B; B= 24. (ii) If P = 700 and & putting the value of A = 1, B = 22 700 = 40A + 30B; 700 =40 + 30B B = 22 (iii) If P = 600 and putting the value of A = 4, then value of B will be 16. 600 = 40 x 4 + 30B; 30B = 480 B = 16 Q. NO. 2 (c) The workmen in an Engineering company are expected to work for 400minutes in a shift of 8 hrs. The remaining time is meant for rest and personal needs. I. Determine the Standard Time per piece of a job whose normal time is 2 minutes. II. Calculate the no. of pieces to be produced per day. III. If the workmen engaged on the above job produce 180 pieces in the shift, what is their efficiency? Ans. I. Total minutes in a shift Expected to work =8 x 60 = 480 minutes = 400 minutes.

II. III.

Remaining time (Allowance) = 80 minutes. Allowance % = 100 x 80 / 400 = 20 % Standard time per price = Normal time / average fraction of time. = 2 minutes / 1 -.10 = 200/80 = 2.5 minutes. No of pieces to be produced per day =40000/125 = 160 piece pr day. Efficiency increased by 12.5 %.

Q. NO. 3 (a) What is material requirement planning? Describe briefly the MRP process. (Preferably diagrammatically) Ans. Materials Requirement Planning is a special technique to plan the requirements of materials for production. It is a simple system of calculating (arithmetically) the requirement of the input materials at different points of time based on the plan or schedule for production of the final products. Such a system will work well for materials that have no direct demand of their own, but have only a derived demand. It is not uncommon for the practicing production managers to come across a situation where out of 10 raw materials needed at a point of time to run a particular product-line , excepting for one raw material, all the rest (nine) are available . And for want of one, the production of the product line cannot be undertaken.

The process of MRP can be represented by the following diagram:-

Firm Order

Master Schedule For production

Forecast s

Revise the master production schedule

Inventor y Status

Materials Requirement Plan

Capacity Adequate?
Manufacturing & Procurement Lead time

Info on Product Design, Structure

Final master Production Schedule & MRP

CASE STUDY Q. NO. (a). Estimate the relevant cost of producing of 2, 50, 000 MCBs every month. Take initial inventory as 30,000 and MCBs. Ans. Initial inventory cost = Rs. 30, 000 x 40 = Rs. 120, 0000 Production cost of producing of 2, 50,000 MCBs will be = Rs. 2, 50,000 x 40 = Rs. 10000000 Total relevant Cost = Rs. 1, 12, 00000

Q. NO. (b) If the production is carried out @ 2, 00,000 MCBs per month for Jan, Feb, March, April, @ 2, 00,000 MCBs per month for May , June, July & Aug and @ 3,00,000 MCBs per month for Sept , Oct , Nov, Dec. Calculate the total costs for this alternative plan. Assume cost of producing in over-time costs @ Rs. 6 per MCB and Rs. 5 per MCB being the set-up cost (cost of changing production rate) Compare the two plans and find the better one.

ADL 14: Production and Operation Management Assignment C Q. NO. 1. The transportation cost and labour cost are the two most important factors in determining the site location. Ans. (a) True. Q. NO. 2. Location break-even analysis cab be employed for determining the site location design. Ans. (b) False. Q. NO.3. Brown and Gibsons Model for location measure has nothing to do with annual turnover. Ans. (a) True. Q. NO.4. The continuous production system is that where facilities are standardized as to routing and flow. Ans. (a) True. Q. NO. 5. Ans. Q. NO. 6. Ans. The mass production is one in which large variety of products are produced. (b) False. The intermittent process is based on functional type of layout. (a) True.

Q. NO. 7. The fixed type of layout is one where all facilities like manpower, equipment and materials are brought to the place of working. Ans. (a) True. Q. NO. 8. Ans. Q. NO. 9. Ans. FMS sands for Flexible Manufacturing System. (a) True. Batch production is an example of Continuous Production System. (b) False.

Q. NO. 10. The Continuous Production System employs General Purpose Machines and intermittent production System purpose Machines. Ans. (a) True. Q. NO. 11. Fredrick Taylor is called the father of motion studies and B. Gilbreth is called the father of scientific management. Ans. (b) False. Q. NO. 12. Ans. Wilson gave formula for determining the Economic order Quantity. (a) True.

Q. NO. 13. Ans.

In case of components in series, the Economic order Quantity. (b) False.

Q. NO. 14. If F (t1) and F (t2) are the probability of failures of two components in the parallel system, then the reliability of the system is given by 1- (1-F (t1)) x (1-F (t2)). Ans. (a) True. Q. NO. 15. In ABC analysis A items are those which consume 70% by value and are hardly 10% of the total items whereas C items are those which consume 10% by value and are more than 70% of total items. Ans. (a) True. Q. NO. 16. A quality circle is a small group of employees in a company who discuss and try to improve the quality of the output and other work related matters.? Ans. (a) True Q. NO. 17. P system of inventory control is basically Fixed Order Quantity System and Q system of inventory control is Fixed Periodical Review System. Ans. (b) False. Q. NO. 18. In P type of inventory control system the average inventory is more than Q type of inventory control system. Ans. (a) True. Q. NO. 19. Integrated approach towards material management is not necessary for inventory control. Ans. (b) False. Q. NO. 20. A good management is one which starts on Incentive Scheme right from the start of the factory. Ans. (a) True. Q. NO. 21. Ans. Q. NO. 22. Ans. Q. NO. 23. Ans. Q. NO. 24. machinery. Ans. Q. NO. 25. A forklift can be used for horizontal as well as vertical movements (a) True. Mobile cranes cannot move from one place to another. (b)False. Hand trolleys are used for handling larger loads over small distances. (b) False. Line layouts generally involve low investments by way of equipment and (b) False. Plant layout and material handling are closely inter-related.

Ans. Q. NO. 26. Ans. Q. NO. 27. Ans.

(b) False. Material handling cost is directly proportion to the size of unit load. (a) True. EOQ strikes a balance between inventory carrying cost and ordering costs. (a) True.

Q. NO. 28. Measure of Central tendency is a data set refers to the extent to which the observations are scattered. Ans. (a) True. Q. NO. 29. The value of all observations in the data set is taken into account when we calculate its mean. Ans. (a) True. Q. NO. 30. If the curve of a certain distribution tails off towards the right end of the measuring scale on the horizontal axis, the distribution is said to be positively skewed. Ans. (a) True. Q. NO. 31. Ans. Extreme values in a data have a strong effect upon the Mode. (a) True.

Q. NO. 32. If the value of mean = 35.4 and value of median =35 the shape of curve skewed is right Ans. (a) True. Q. NO. 33. Ans. It gives equal weightage to all previous months. (a) Exponential Smoothing.