ADMAS UNIVERSITY

SCHOOL OF POSTGRADUATE STUDIES

MASTERS OF BUSINESS ADMINISTRATION

Title: ASSIGNMENT ON OPERATION MANAGEMENT

AN INDIVIDUAL ASSIGNMENT SUBMITTED FOR THE PARTIAL FULFILLMENT

OF THE COURSE OPERATION MANAGEMENT

Prepared by

XXXXXXXXXXXXXX
Instruction: Review the following questions in detail
1. Explain Operation Design
1.1. Modular design
1.2. Design for Disassembly
1.3. Robust design
2. Agile manufacturing? Compare with lean manufacturing and their strategic orientation
3. Why are services typically more difficult to standardize, automate, and make efficient?
4. Sara has a part-time "cottage industry" producing seasonal plywood yard ornaments for
resale at local craft fairs and bazaars. She currently works 8 hours per day to produce 16
ornaments.
A. What is her productivity?
B. She thinks that by redesigning the ornaments and switching from use of a wood glue
to a hot-glue gun she can increase her total production to 20 ornaments per day. What
is her new productivity?
C. What is her percentage increase in productivity?
5. Explain the difference between value analysis and value engineering
6. Six Sigma Quality
A. Six Sigma Methodology
B. Analytical Tools of Six Sigma and Continuous Improvement
C. Six Sigma Roles and Responsibilities
7. How is break-even analysis useful in the study of the capacity decision? What limitations
does this analytical tool have in this application?
8. An executive conference center has the physical ability to handle 1,100 participants.
However, conference management personnel believe that only 1,000 participants can be
handled effectively for most events. The last event, although forecasted to have 1,000
participants, resulted in the attendance of only 950 participants. What are the utilization
and efficiency of the conference facility?
9. Environmental Glass Products, Inc. wants to build a new centralized facility to receive
household, commercial, and industrial glass for recycling. This center will be supplied by
trucks coming from four "collection points," where recyclable glass is dropped off by
individuals and businesses. The volume and the map coordinates for the four collection
centers are shown below. Where should the collection center be located?

Collection point Load (X,Y) Coordinates

A 9,000 (4,8)

B 4,000 (7,2)

C 2,000 (4,1)

D 5,000 (7,3)

10. What design guidelines help retail layouts to maximize customer exposure to products?
11. What is cross-docking? Why is it appropriate for some forms of warehouse layout?
12. What is the basic objective of a process control system?
13. What are the three possible results (or findings) from the use of control charts?
14. Solve the following aggregate planning question
1.Operational design is the job of commanders with the support of their strategists and
staffs. Planning and design are closely interrelated, since planners take the commander's
overarching design concept and intent to create detailed COAs, plans, and orders for operations

Operational design focuses on how the enterprise actually works. This is more detailed than
the management-level, conceptual model represented with VDML. The enterprise is a network
of collaborations. Many of those are ad hoc and should be recognized for support and
participation.

What is Operational Design?

Operational Design is about Integrating a new plant or process into an existing site and
supply chain. This allows a new asset to operate efficiently and may be expected to
deliver operational improvements and savings to the business wider than the specific
bottom line benefit of the newplant.

Operational Design is about thinking beyond the box when

it comes to designing a new plant.
By considering the Operational Design or Philosophy (such as campaign or batch sizes,
production planning philosophy, changeover times, frequency of deliveries, single piece
flow) at the design stage there may be significant opportunities to:

 Reduce production lead times

 Increase capacity for a given cost
 Cut inventory
 Increase On Time In Full (OTIF) deliveries
 Reduce plant footprint
 Increase production flexibility
 Make new plant resilient to breakdowns and outages
 Cut capital costs

Operational Design is the natural evolution of many

aspects of Lean tools and techniques.
This can be applied at any point in a plant’s life cycle, and some of the examples below
are from applications to mature plants. However, doing so at the initial design stages
increases the number and size of opportunities for a lower cost.
Part of the approach is creating a Capacity Model. This will inform design decisions and
assess the impact of different Operational Philosophies and other variables such as
reliability, changeover times and Overall Equipment Performance (OEE). Design
criteria, specifications and design assumptions can be tested for their impact on
ongoing operational costs versus initial capital costs.

1.1 Modular design is basically to decompose complex systems into simple modules in
order to more efficiently organize complex designs and processes. The concept was
first introduced by Star (1965), in which the use of modular product in production was
proposed as a new concept to develop variety
A modular design is an approach for product designing which is used to produce a complete product
by integrating or combining smaller parts that are independent of each other. With the modular design
approach, a complex product (for example, a car) can be broken down or divided into smaller and
simpler components that are independently designed and manufactured. Each of these individual
components is then integrated (or assembled) together to form the final product.

1.2 What is DfD ? DfD is a building design process that allows for the easy recovery of
products, parts and materials when a building is disassembled or renovated. The process
is intended to maximize economic value and minimize environmental impacts through reuse,
repair, remanufacture and recycling.

Design for disassembly (DfD)

What is DfD?
DfD is a building design process that allows for the easy recovery of products, parts and
materials when a building is disassembled or renovated. The process is intended to
maximize economic value and minimize environmental impacts through reuse, repair,
remanufacture and recycling. A DfD process involves developing the assemblies,
components, materials, construction techniques, and information and management
systems to accomplish this goal.
DfD is a growing phenomenon within manufacturing industries as greater attention is
devoted to the management of the end-of-life of products. The effort is driven by the
increasing disposal of large amounts of consumer goods, and the resulting pollution and
the loss of materials and energy that these products contain.
The DfD building design process also addresses energy recovery from materials and
safe bio-degradation. DfD enables flexibility, convertibility, addition, and subtraction of
whole-buildings. In this manner DfD may help avoid the removal of buildings
altogether.
1.3 Robust Design is the designing of products, devices and production equipment so that their
performance and function is insensitive to the numerous sources of variation such as production
and assembly tolerances, ambient use conditions, or degradation over time.
What do you mean by robust design?
Robust product design is a concept from the teachings of Dr. Genichi Taguchi. It is
defined as reducing variation in a product without eliminating the causes of the
variation. In other words, making the product or process insensitive to variation.

Robust design processes include concept design, parameter design, and tolerance design.
Taguchi's robust design method uses parameter design to place the design in a position where
random “noise” does not cause failure and to determine the proper design parameters and their
levels.

2) What is Agile Manufacturing? While lean manufacturing focuses on removing waste and
'dropping weight', agile is more focused at using the current resources intelligently and that the
organization has the right data to implement changes in manufacturing. Accurate data is vital to
making changes in manufacturing.

What are the similarities and differences between Lean and agile approaches?
While both Lean and Agile approaches aim to get the product out as quickly as
possible, their time frames differ. Agile teams work in short cycles to complete
projects more quickly. Cycles and sprints typically last for 2-4 weeks each. Lean teams
reduce the length of their project schedule by optimizing process flow

How can you compare the attributes of Lean versus agile supply chain strategies?
The difference between lean and agile is the fluidity with the response to the market.
A lean supply chain focuses on cutting costs by producing high volumes of products
with low variability. An agile supply chain focuses on responding to the market demand
with smaller, customizable batches of items.

What is the difference between Lean and agile strategies?

Approach to speed and iteration

The difference is that in Lean thinking, teams increase speed by managing flow
(usually by limiting work-in-process), whereas in Agile, teams emphasize small
batch sizes to deliver quickly (often in sprints).

3) Why are services typically more difficult to standardize, automate, and make
efficient? Services typically require customer interaction, which makes it difficult to
standardize, automate, and make efficient.

4.

5. Value engineering relates closely to target costing as it is cost avoidance or cost reduction
before production. Value analysis is cost avoidance or cost reduction of a product already in
production; both adopt the same approach (details below) i.e. a complete audit of the product.
What is the difference between value analysis and value engineering?

While value engineering is the technique often used before a product has been
fabricated, value analysis is the technique used to analyze an existing product. The goal
of value analysis is often to review an existing set of costs and benefits with the intention of
enhancing its value.

BASIS FOR
VALUE ANALYSIS VALUE ENGINEERING
COMPARISON

Meaning Value Analysis is a cost Value Engineering is a

reduction technique technique used before the
applied to the existing product gets approval for
product with the aim of fabrication.
enhancing its worth.

Nature of Remedial Process Preventive Process

Process

Applied when After the product is At the design stage

introduced.

Objective To get better optimized To get better engineering

commercial output. results.

Worked Out With the help of knowledge With the help of specific
and experience. technical knowledge.

Ensures Elimination of unnecessary Prevention of

cost unnecessary cost

Change May change the existing Changes made by value

stage of the product or engineering are
operation implemented at initial
stages only.
 6. "Six Sigma quality" is a term generally used to indicate a process is well
controlled (within process limits ±3s from the center line in a control chart, and
requirements/tolerance limits ±6s from the center line).

What is 6 sigma in quality?

Six Sigma is a quality management methodology used to help businesses improve

current processes, products or services by discovering and eliminating defects.
The goal is to streamline quality control in manufacturing or business processes so
there is little to no variance throughout.

A . Six Sigma is a method that provides organizations tools to improve the capability of
their business processes. This increase in performance and decrease in process variation
helps lead to defect reduction and improvement in profits, employee morale, and quality of
products or services.

what are the steps of Six Sigma methodology?

What are 5 steps for Six Sigma?

1. Define the problem. Craft a problem statement, goal statement, project charter,
customer requirement, and process map.
2. Measure the current process. Collect data on current performance and issues. ...
3. Analyze the cause of issues. ...
4. Improve the process. ...
5. Control.
There are many examples of this, using inexpensive and handy day-to-day materials,
recycling of the materials, increasing the speed of each cycle, reducing and then
eliminating of factory defects. Six Sigma will overall increase customer satisfaction and
customer service as the product quality will enhance drastically.

B . What is analytical tools of Six Sigma and continuous improvement?

4. Which of the following is an analytical tool used in Six Sigma quality improvement?
The analytical tools that are used for quality improvement are check sheets,
histograms, control charts, cause and effect diagrams, and Pareto diagrams.
Six sigma is the goal of improving the quality of a product
or process. Six sigma uses a repeating cycle of improving
the process, monitoring it, and then finding another factor
 or aspect to improve. Six sigma analytical tools identify
areas that require improvement, prioritize them, and help
monitor progress toward the new quality standard. The
simplest six sigma analytical tools can be broken down into
check sheets, charts and diagrams.
C. They are responsible for scoping the projects, leading the project team, calling for help
when needed, managing interfaces with business leaders, and ensuring sustainable
results. The goal of GB's is to translate the value of Six Sigma to the specific work environment
and problems.

What are 4 of 5 key roles in Six Sigma?

Six Sigma Team Member Roles
 Team Leader: Responsible for getting the team to go. ...
 Facilitator: Usually a Black Belt or Master Black Belt. ...
 Scribe: Records the team activities.
 Sponsor: Business leader who sponsors the Six Sigma project. ...
 Champion: Executive who sponsors a specific Six Sigma project.

Six Sigma Roles and

Responsibilities
Six Sigma roles are primarily divided into two segments:

1. Initiative Leadership
2. Project Leadership

Apart from the above two segments, the overall Six Sigma methodology require the
following roles:

1. Six Sigma Deployment Leader

2. Six Sigma Champion
3. Six Sigma Master Black Belt (MBB)
4. Six Sigma Black Belt (BB)
5. Six Sigma Green Belt (GB)
6. Six Sigma Yellow Belt (YB)
7. The break-even analysis establishes what level of sales is required to cover the
company's total fixed expenses by analyzing various pricing levels in relation to various
levels of demand. A demand-side study would provide a seller with a lot of information about
their selling ability

How is break-even analysis useful in the study of the capacity decision?

Break-even analysis is useful in determining the level of production or a targeted
desired sales mix. The study is for a company's management's use only, as the metric
and calculations are not used by external parties, such as investors, regulators, or
financial institutions.

8. An executive conference center has the physical ability to handle

1,100 participants. However, conference management personnel
believe that only 1,000 participants can be handled effectively
for most events. The last event, although forecasted to have
1,000 participants, resulted in the attendance of only 950
participants. What is the conference facility’s capacity
utilization relative to its design capacity?
A. 100%
B. 86.4% (Effective capacity = 1000; design capacity = 1100;
actual output = 950; Utilization(Design)=950/1100)
C. 95%
D. 110%
E. 90.9%
9.