MGMT 610- OPERATIONS MANAGEMENT

Ans 1: Job enlargement is a technique in which the new tasks are added to the previous job, which requires the same level of skill to perform the job. It is also known as horizontal enlargement In this new duties and responsibilities are added. Benefit: The employees dont get bored doing monotonous task. They feel more valuable Job rotation: is a technique in which the responsibilities of the employees are changed, which helps in improving themselves doing another job. Benefit: Employees will learn more and increase their knowledge doing another job. They will better understand the functions of the company. Job enrichment: is a technique in which more duties and responsibilities are added. It is also called as vertical expansion. Benefit: Employee feel that he is more important to company than before.

Ans 2: Critical Path Method: is an important technique used in project management, it is a mathematical technique in which algorithm is used to schedule particular activities in a project. There is just one time factor for every single activity when CPM is used in project. CPM helps project manager to make schedule, monitor activities, control and have an idea about the project such as how much project is completed and how much do we need to complete at the given time

Program Evaluation and Review Technique: PERT is an another important technique used in project Management, it is a tool that analyze and represents the mission which helps in completion of project There are three type of time estimates 1. Optimistic 2. Pessimistic 3. Time. In comparison between PERT and CPM, PERT is more reliable technique than CPM as it gives more accurate results

Ans 3. CAD: stands for Computer Aided Design it is used to design and make engineering tools with the help of computers. CAM: stands for Computer Aided Manufacturing, it is used for controlling manufacturing machineries. Robot: A robot is a mechanical intelligent device, which can perform certain tasks on its own, or with guidance. It is an electro-mechanical machine, which is guided by computer and electronic programming FMS: Flexible Manufacturing System is a manufacturing system in which the computer gives instructions to every job station and to material-managing tool. In this there is some degree of flexibility which allows the system to make changes. AVG: Automated Guided Vehicle is a form of mobile robot that is controlled and guided by electrical signal to carry parts. CIM: Computer Integrated Manufacturing is a computer-based tool used for manufacturing

Answer 4. 1. Engineering Drawing is a type of technical drawing, that is used to fully and clearly define requirements for engineered items. 2. Bill of Materials: is a list of the raw materials, sub-assemblies, intermediate assemblies, components, parts and the quantities of each needed to manufacture an end product. 3. Assembly Drawing is an exploded view of the product, usually via a 3D or isometric drawing; 4. Work Order: An instruction to make a given quantity of a particular item, usually to a given schedule; 5. Engineering Change Notice: It is a document, which records a change in design. A correction or modification of an engineering drawing or bill of material.

Ans 5. Job Shop is typically small manufacturing operations that handle specialized manufacturing processes. Job shops moves to different jobs on the completion of one. In this one workstation does one job at a time. Assembly Line is a manufacturing process in which parts are added to a product in a sequential manner to create a finished product much faster than with handcrafting-type methods. Enhances quality, reduces flow time, slashes inventory levels and cuts space requirements. Inventory: Job shops have high level of inventories, whereas an Assembly line has low level of inventories. Machines: Job shops require small machines to produce last product, Assembly line needs big machinery to manufacture product. Worker Skills: In Job shop the employees have different skills to perform different tasks. In assembly line the workers need to in one specific area.

Ans 6. Material Requirements planning: is a system, which is used to manage inventory system. MRP systems are software based, it can also be used manually. MRP help in maintaining inventory level by improving customer-service levels. Operation manager uses this technique to schedule and refill stock on a need-to-order.

Ans 7. Total Quality Management: is a system of management in which every staff member must be committed to maintain high standards of work in every aspect of a company's operations. TQM asks should we be doing this anytime (at all)?. If the answer is yes, then it questions How can we do it inexpensive, better or faster? Major Principles: 1. Continuous improvement (unending development): Continuous improvement contain supplier, people, parts, equipments, and procedures; 2. Six Sigma 6 Sigma is an approach to provide more quality, cut costs and finish works in short time 3. Employee Empowerment: It is a technique, which gives more responsibilities to workers. It makes employees feel more valuable.

4. Benchmarking: It is a technique, which Companies use to measure their performance by comparing other companies in same market. 5. Just in Time (JIT): is a philosophy of unending improvement and enforced problem solving. JIT is designed to manufacture or deliver goods just as they are needed. JIT reduces the costs of quality by keeping low-level inventory. 6. TQM Tools:

Check paper(sheet) Scatter charts(diagram) Cause and effect diagram Pareto graphics(charts)

Ans 8. Inspection is a technique which ensure that an operation is manufacturing at the expected level of quality. Inspection involves measurement, tasting, touching, weighing, or testing of the product. Inspection only finds deficiencies and defects but cannot correct them. 100% inspection is very difficult for measuring quality level. It is very expensive and time consuming. There is not enough time to inspect all products that are produced. In Inspection process, products should be randomly selected and inspected. NO, Deming does not support 100% inspection.

Ans 9.Breakeven charts: is a chart which contains fixed cost, variable cost, total cost and total revenue. Break-even analysis shows the point where costs of product are equal to revenues which is showed in currency and units, Breakeven analysis helps the managers to determine at what production level. Crossover chart: A chart that is used by technical analyst which help in forecasting the future movements in stock prices. Fixed Costs: is a type of cost that is not dependent on the volume of production. It stays the same when the production increases. Variable Costs: is a type of cost, which depends on the volume of manufacturing. The major components of V.C are labor and raw material cost.

Ans 10. Product Life Cycle: PLC shows the life cycle of the product. The life of the product starts from initial production design and ends at the withdrawal from the market. It consist of 4 stage which are classified below: Introduction (birth) Growth (youth) Maturity (adult) Decline (death) Analysis of stages: Introduction: In this stage, R&D cost is so high. Still, the product has been developed. The amount of sales is low. There is little or no competition, Company does not make money at this stage. Growth : Company reach to economies of scales. Volume of sales increases, The Company begin to profit, Public awareness increases. The cost of production is getting low. Maturity : There are so many competitors in market. The sales are on peak level and are on saturation level The industrial profits get low. Decline: This stage companys sales volume goes down. The price of the product is low.

Ans 11. Learning Curve: The basis that organizations and employees get better at duties which they are responsible for as the tasks are performed over and over again, this curve is also called as experience curve. Average cost reduces as the production experience builds up. Managers use learning curve when they are making production plan. At the beginning of the organization, they hire more employees. Then, they fire the number of employees. Also, they use when they calculate the cost like AV, VC.

Ans 12: Economic Order Quantity It is technique that is used to control and manage the inventory and minimize Total Variable Cost of factory. This technique tells us when to order and what to order. Some assumptions for EOQ are below: 1. Demand is known and it is constant 5

2. Lead time of orders is known and is constant 3. The receipt of the order occurs in a single instant and immediately after ordering it 4. Discounts are not considered. 5. Setup cost is known.

JIT: Just in time is a philosophy of continuous improvement and forced problem solving. JIT is designed to manufacture or deliver goods just as they are needed. It reduces the costs by keeping low-level inventory.

Ans 13. Supply chain management: it is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Benefits of SCM: 1. Increase firms competitiveness via customization of product, high quality, cost reductions, and speed-to-market; . Maximizes value to final customer, i.e giving best product at best possible price.

Who Benefits from SCM? Everybody benefits from SCM. Customers get good service and product at low price. Company gets customer to sell their products. Also, it helps in cutting the cost.

Ans 14. JIT: Just in Time is an ever-going process of improvement and enforced problem solving. JIT is designed to manufacture or deliver goods as per the need. Maintaining low level of inventory reduces the cost of quality. Advantages in JIT application Production Setup time is reduced Supplier qualifications are increased. Scheduler is better than before

Efficiency of employees increases

Disadvantages in JIT application

There is no room for mistake/ faults in production as minimum stock is held.

Production depends entirely on suppliers. Production can stop if the stock is not received at a particular time.

Ans 15: Differentiation: Differentiation means to provide service or product in market differently, Achieve a competitive advantages by making goods and services differently that adds value according to customers expectations Cost-Leadership: Companies can gain cost leadership by offering lowest price than the competitors. Wal-Mart business model mainly aims at lower cost design, thus it achieve top value as perceived by its customers. Response: Another way to gain competitive advantage in the market is by response. The company should be flexible and should respond quickly. The company should respond quickly with customers query. Examples: Hewlett-Packard is good example of response strategy.

Ans 16.Mass production manufacturing The main focus of the managers is on production in factory and distribution. They try to achieve continuous progress and quality in production. Managers try to achieve economies of scales by having high volume production. Operations are divided into small elements. Outputs can be named, as inventories are a little constant. Hence, JIT is easy to implement.

Large repair/ service business: Service is similar to people. Every individual is different from one other. Services have same attribute. Every service is unique. The output of service sector is intangible that means one cannot touch or hold it. The perception of customers is like quality of service. Service requires knowledge. So, it needs talented, skilled employee. There are limitations due to geographical boundaries. For instance, a customer who lives in India cannot use At&t. As, all customers are separated from each other. Therefore, all services are separated from each other because service are depends on customer.

Ans 17: Advantages of manufacturing overseas: There are certain advantages when a company decided to go Internationally or Globally. The company can cut its cost by hiring cheaper labor in another country, Can save lot of money by paying less taxes and avoiding tariffs. The company can have better supply chains, as they get closer to raw materials. Companies can produce better product for international customers by keeping in touch every time as they could reduce the response time. They can learn about more opportunities and learn how to do things in a better and efficient manner. Disadvantages of manufacturing overseas: To do business internationally involves high level of risk because company does not know much about that country. Companies wont have same controlling power. Its hard for the companies to find skilled workers. The companies cannot find latest technology in the developing countries and they have to bring technology from their own country which involve high cost also they can face problem with the barriers to entry. Logistics could also be a problem. They have to do business in the competitive market which already exits.

Ans 18. When designing a new factory with a vision of future, we should establish some guiding principles to be to use in future: Roadmap focus: What is level of progress we shall consider to guarantee production that will cater the future demand? The factory should be organized for processed to produce low level production and different types of production. Repetitive focus: product focused production should use modules. According to product focus, plant should be arranged around product high-level production, lowlevel difference process. Mass customization focus: It should be rapid and adapt according to customer needs. Analysis & design of process: every stage of the process should add value to product and be worthwhile; Selection of equipment and technology: There should be enough flexibility. Flexible tools and machinery should be used that keep up with time, cost effective.

Ans 19: Planning: It is the first step of the management process. Manager set policies, goals, target, objectives and procedures to layout the perfect course of activity for work to be done. Organizing: In this stage the management distributes responsibilities between people or teams. They design the structure of organization Staffing: At this stage skilled people are hired. Leading: In this stage managers motivate and lead their employees to gain their objectives. Controlling: In this phase management monitors and correct the activities if the employees. The managers get feedback and results of the activities and evaluate the performance of the employees.

Ans 20: Adam Smith gave new ideas to study of management like job and labor specialization. This helped in reducing the cost of labor. Frederick Taylor is called as Father of Management Science. He separated planning and scheduling process from each other. He brought new belief for staff selection and work system. He believed in motivation of employees. He said that employees should work under hygienic conditions Eli Whitney studied on standardization of parts and quality control. Scientists believe that he is an inventor of American manufacturing of American manufacturing system on power machinery, interchangeable parts, and labor separation. Henry Ford was the founder of the assembly line production. It gets easier to produce product, which consist of so many parts.

Ans 21: W. Edwards Deming studied on quality and reducing cost subject. He said that Company should teach its workers to eradicate the failures before they occur this is related to design stages. He says that each department is the client of the one before each department must implement the quality standards desired by its clienteles

Crosby believes that company should work aggressively towards the quality. He claims quality is free, but not a gift. Juran was a legend who taught Japanese how to implove quality. He believed that top level managers are highly responsible for quality. They should continuously encourage and engage in quality effort. Ans 22: These are techniques of how to sequence jobs in work centers, i.e., determine the order in which jobs should be completed. Priority rules are rules that are used to determine the sequence. FCFS: first come, first served jobs are completed in the order they arrived SPT: shortest processing time: the shortest jobs are processed first EDD: earliest due date: the job with the earliest due date is selected first LPT: longest processing time: the longer jobs are often very important and are selected first.

Ans 23: Control charts: are the charts that are used for statistical presentation and graphic demonstrations of data over time. It present upper, lower limits for the progress that we want to control. Control charts are designed in manner that new data can be measured fast in comparison to earlier performance data. Performance Evaluation and Control: We take the samples of the process output and plot the average of samples on a chart that has up and low limits. The upper and lower limits could be something like Pressure, weights, and temperature.

Ans 24: Six Sigma is program of Total Quality Management. It is an efficiency increasing technique that focuses on customer satisfaction and data analysis in order to remove excessive cost. It reduces the no. of defects. It is a quality process that gives 99.9997% accurate products and services.

Ans 25: Critical path method helps us determining how long will the process take to complete it. The critical path is the longest path through the process network. In order to find critical path, we compute two different starting and ending times for each activity. Earliest Start: It is the earliest starting time for an activity

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Earliest Finish:It is the earliest finishing time for an activity

Latest start: It is the latest starting time for activity Latest finish: It is latest finishing time for activity

Crash a specific task:

1. 2.

When project is running behind schedule. When the scheduled project finish time is moved forward

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