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Title Name Amity Solved Assignment PGDM BM for Production and Operations Management
University AMITY
Service Type Assignment
Course PGDM-(Business-Management)
Semister Semester-II Cource: PGDM-(Business-Management)
Short Name or Subject Code Production & Operations Management
Commerce line item Type Semester-II Cource: PGDM-(Business-Management)
Product Assignment of PGDM-(Business-Management) Semester-II (AMITY)

Solved Assignment


  Questions :-

                                                                                                                                Production & Operations Management

Assignment A

Q-1 (a) Define production operations management. What are its objectives and functions?

Q1 (b) What are the operations management strategies?

Q-2 (a) Explain the concept of product design and development?

Q2 (b) What are the various production systems?

 3 (a) what is capacity planning? Explain the various methods of altering capacity?

Q3. (b) What are the factors affecting facility location? What are the techniques for facility location?

Q3 (c) What are the various facility layouts? Enumerate the advantages and disadvantages.

Q.4. (a) what is meant by master production schedule?

Q4 (b) Explain the activities involved in production planning and control.

Q4(c) Discuss MRP. What are the inputs and outputs of an MRP system?

Q.5. (a) Explain JIT manufacturing:

Q5 (b) Explain acceptance sampling

Q5 (c) What do you understand by maintenance policy? Explain various categories of spares. 

 

 

 

Assignment - B

Q1a) what is economic order quantity? What are the assumptions of EOQ?

Q1b) If the annual demand for a product is 3, 50,000 units. The annual carrying cost rate is 25 percent of the cost of the unit the product costs Rs 14.75 per unit to purchase, and each time the product is ordered the related ordering cost is Rs 53.00.

Q.2. a) Operations scheduling is one of the most important function of production planning and control. Discuss.

Q 2. b) Seven jobs are to be carried out on three machines M1, M2, M3 in the order of M1, M2, M3. The processing time in hours of various jobs are tabulated below.

Job

M1

M2

M3

A

1

7

8

B

3

3

1

C

7

8

8

D

9

2

11

E

4

8

9

F

5

6

14

G

2

1

12

Case Study: -

Case Detail: 

Please read the two case studies given below and answer questions given at the end :

  1. a) An electronic goods company produces radios and calculators. The radios generates a profit of Rs10/- per unit while calculators generates a profit of Rs 15/- per unit. Each radio requires four diodes and four resistors, while each calculator requires ten diodes and two resistors. The radio takes 12 minutes and calculators take 9,6 minutes on the testing machine.

The production manager estimates that 160 hours of testing time are available. The firm has 8000 diodes and 3000 resistors in stock.

Question

Formulate the linear programming problem and solve it graphically.

  1. b) Systems Software (P) Ltd. is planning to develop new software. It has identified the activities in the table below for this software development project and has calculated three time estimates in days for each of the activity.
  1. Draw the network diagram; find out the critical path and the expected duration of the project.
  2. Calculate the slack time for each of the activities.
  3. Calculate the probability of completing the project in 30 days.

 

 

 

 

ASSIGNMENT - C

Pick up the right answer from the multiple choices

1.Organizations that produce something other than physical products are called

a) Transformation organizations

b) Data transfer groups

c) Service organizations

d) Cultural organizations

  1. Which of the following is NOT a characteristic of service operations?

a) Intangible output

b) Perishable products

c) Labour intensive

d) Low customer contact

  1. Decisions that tend to focus on the entire organization, cutting across

a) Departmental

b) Tactical

c) Strategic

d) Routine

  1. Competing on differentiation is

a) Concerned with uniqueness

b) Based on cost leadership

c) Based on flexibility

d) Reliability of scheduling

 

  1. Which of the following is NOT important in globalization?

a) Product design

b) Culture and ethics

c) Facility location

d) Facility lay out

  1. Which of the following conditions are NOT generally associated with job process?

a) Work force with highly specialized skills

b) Low product volume

c) Relatively high customization

d) High resource flexibility

  1. Low volume, high variety production is best suited for

a) Process focus

b) Repetitive focus

c) Product focus

d) Mass customization

  1. Which of the following automatically place parts into a warehouse

a) ASRS

b) AGV

c) FMS

d) SGV

  1. The planning and scheduling of production only against specific production order is

a) Make-to-Stock

b) Make to-Order

c) Assemble-to-Order

d) Mass Customization

  1. Which of the following is NOT a characteristic during the introductory phase of the product life cycle?

a) Research

b) Process modification

c) Supplier development

d) Capacity utilization

  1. Which of the following is a characteristic of the maturity phase?

a) Products are ʹline tunedʺ

b) Product designs begin to stabiliz

c) Competitors are well-established

d) Products are considered for termination

  1. Benefits of design for manufacturability and value engineering include all of the following accept

a) Reduced complexity of the product

b) Additional standardization of the components

c) Improved job design and safety

d) Compromise quality

  1. Modular design

a) Offers flexibility to both production and marketing

b) Means that small variations in production do not adversely affect the product

c) Uses computers to interactively design the products

d) Are environmentally friendly

  1. Which of the following is NOT a concept of green manufacturing?

a) Make products recyclable

b) Standardization of components

c) Use less harmful ingredients

d) Use lighter components

  1. Design effectiveness is NOT measured by

a) Percentage of standard parts & processes

b) Number of revisions in the design

c) Cost of field repairs

d) Time taken from concept to market

  1. Which of the following is NOT a benefit of concurrent engineering?

a) Enables early supplier involvement

b) Promotes consensus decision making

c) Reduces developmental lead-time

d) Eliminates design changes after product introduction

  1. Which of the following is NOT a method for evaluating location alternatives,

a) The transportation model

b) Factor rating

c) Centre of gravity method

  1. Which of the following is NOT a mathematical technique used for finding the point that services several stores or areas

a) Factor rating .

b) Center of gravity

c) Transportation model

d) Hungarian method

  1. The system that has the highest equipment flexibility is

a) Job shop

b) Batch

c) Repetitive production

d) Continuous processing

Solve by www.solvezone.in

  1. In a product layout the process of deciding how to assign tasks to work stations is referred to as:

a) Process balancing

b) Task allocation

c) Line balancing

d) Factor rating

  1. The advantages NOT associated with a U shaped assembly line over a straight one are

a) Fewer workers are needed

b) Workers can reach more of the work area

c) Work area can be efficiently balanced

d) Automated material handling

 

  1. All of the following statements about using the transportation model to true EXCEPT

a) The least expensive alternatives often are those in which the output is produced and sold in the same period

b) It is possible to disallow backorders by making the back-order cost an impossibly high number

c) The transportation model is less useful for chase strategies

d) A periodʹs overtime capacity is generally a percentage of its regular time capacity

  1. Which of the following statements about a linear programming model is NOT true

a) An optimal production planis desired

b) The values of decision variables are fractional

c) A set of linear constraints might be defined

d) Cross-product relationships exist between two or more decision variables

  1. The limitations that restrict the permissible choices for decision variables are called

a) Parameters

b) Objective function

c) Decision variables

d) Constraints

  1. The total cost for a continuous review system with uncertain demand excludes consideration of

a) Cycle inventory holding cost

b) Product cost

c) Ordering cost

d) Safety stock holding cost

  1. Select the characteristic that is not indicative of a job shop environment

a) Low to medium volume production

b) Job or batch processes

c) Consistent, sequential process flow

d) Continual introduction of new jobs to be processed

  1. The priority -sequencing rule for job shop scheduling that relies ieast on time based data is

a) Critical ratio

b) Earliest due date

c) First come, first served

d) Shortest processing time

  1. Which statement about capacity requirements planning (CRP) is not true -

a) CRP systems adjust the order release time to prevent a workstation for exceeding its capacity?

b) CRP systems access inventory records to determine when planned orders or scheduled receipts will reacr a workstation

c) CRP systems enable the identification of critical workstations

d) The purpose if CRP is to match the material requirements plan with the plant’s production capacity

  1. Materials handling includes all of the following activities except

a) Moving an assembly

b) Drilling a hole

c) Storing a product

d) Handling materials

  1. The work measurement method that is not usually used for setting standards for repetitive, well defined jobs is

a) The elemental standard data approach

b) The work sampling method

c) The time study method

d) The predetermined data approach

  1. Attribute inspection measures

a) The range of a characteristic

b) If product responsiveness is adequate

c) If cause and effect are present

d) If the product is good or bad

  1. One hundred percent Inspection

a) Will always catch all of the defective parts

b) Means that only good parts will be shipped to the customer

c) Is always practical and generally a good idea

d) Means that every part is checked to see whether or not it is defective

33.Process capability

a) Means that the natural variation of the process must be small enough to produce products that meet the standards

b) Exists when Cpk is less than 1

c) Exists when the process is perfectly centered

d) Cannot be measured

34.The R-chart

a) Is used to measure changes in the central tendency

b) Is always in control if the X-bar chart is in control

c) Generally uses control limits set at plus or minus 2 standard deviations of the distribution, rather than plus or minus 3 which is commonly used on the X-bar char

d) Is used to indicate gains or losses in uniformity

35.A customer service hotline has received an average of 7 complaints adayforthelast25 chart should be used to monitor this hotline

a) C-chart

b) P-chart

c) X-bar chart

d) no-chart

  1. The maximum output of a system in a given period is called the

a) Break-even point

b) Design capacity

c) Effective capacity

d) Efficiency

37.Methods analysis focuses on

a) The design of the machines used to perform a task

b) Howa task is accomplished

c) The raw materials that are consumed in performing a task

d) Reducing the number of steps required to perform a task

  1. Which of the following doesn’t relate to work scheduled?

a) Flex time

b) Flexible

c) Work week

d) Part time system

e) Ergonomics

39.A good maintenance facility should have on the following except

a) Well train personnel

b) Availability to identify the cause of break down

c) Availability to extend MTBF

d) Availability to increase MTTR

40.The process that is intended to find potential failure and make change or repair is known as

a) Break down maintenance

b) Failure maintenance

c) Preventive maintenance

d) Reactive maintenance

  Answers :-

                                                                                  Production & Operations Management 

Assignment A

Q-1 (a) Define production operations management. What are its objectives and functions?

Ans:

Definition: -

Production and Operations Management ("POM") is about the conversion of production and operational inputs into "outputs" that meet the needs of customers.

It is the process of planning, coordination and controlling of an organization´s resources to facilitate the production.

Objectives & Functions: -

The objective of production management is ‘to produce goods services of right quality and quantity at the right time and right manufacturing cost’.

1.1 Right Quality:

The quality of product should be based upon the customers’ needs.

1.2 Right Quantity:

The manufacturing organization should produce the products in right number.

1.3 Right Time:

Timeliness of delivery of your product is another important factor in POM.

1.4 Right Manufacturing Cost:

Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the products at pre-established cost, so as to reduce the variation between actual and the standard (pre-established) cost.

 

 

Q1 (b) What are the operations management strategies?

Ans:

Production/Operation Management Strategies:

  1. Aggregate planning techniques
  2. Just-in-time systems
  3. Purchasing management procedure
  4. Inventory management systems
  5. Materials requirement planning techniques
  6. Short-term scheduling techniques
  7. Project management procedures
  8. Maintenance management

Current Production/Operations Strategies:

  1. Integrated manufacturing
  2. Advanced manufacturing technology
  3. Total quality management
  4. Just-in-time inventory control

 

 

Q-2 (a) Explain the concept of product design and development?

Ans:

The concept of Product Design and Development (PDD) is defined as the design of the all the goods and services that involve the process through which a good or a service is created. It incorporates not only the design of the product itself, but also the design of new technologies used in the manufacturing processes

The development of an idea or concept into a tangible product involves review by personnel disciplined in sales, chemistry, product engineering, cost analysis, process, ergonomics, manufacturing, quality, logistics and program management. The successful launch and production of a product involves the use of tool sets, including:

  1. Focus Group Analysis
  2. Competitive Design Reviews
  3. Design and Process Failure Mode and Effects Analysis
  4. Error Proofing
  5. Finite Element Analysis
  6. Design of Experiments; Full and Partial Factorial
  7. Prototype Development
  8. Design Verification and Validation through Environmental, Accelerated Testing

Communication with the customer from concept to production in order to create drawings, resolve questions and provide answers, establish control plans and develop quality expectations helps a concept or idea become reality.

Product development is the process of creating a new product to be sold by a business or enterprise to its customers. Design refers to those activities involved in creating the look and feel of the product, its mechanical architecture, selecting materials and processes, and engineering the various components necessary to make the product work. Development refers collectively to the entire process of identifying a market opportunity, creating a product to appeal to the identified market, and finally, testing, modifying and refining the product until it is ready for production.

The process of developing new products varies between companies, and even between products within the same company. Regardless of organizational differences, a good new product is the result a methodical development effort with well-defined product specifications and project goals. 

Concept of Design & Development:

Good concept of product design and development is crucial. It includes the following:

  1. The needs of target market are identified
  2. Competitive products are reviewed
  3. Product specifications are defined
  4. A product concept is selected
  5. An economic analysis is done
  6. The development project is outlined.

This stage provides the foundation for the development effort, and if poorly done can undermine the entire effort.

Identify Customer Needs:

Researchers identify customer needs through interview with potential users, focus groups, by observing similar products in use. The list of needs will include hidden needs, needs that customers may not be aware of or problems they simply accept without question, as well as explicit needs, or needs that will most likely be reported by potential purchasers. Customer needs and product specifications are organized into a hierarchical list with a relative rating value given to each need and specification.

Establish Target Specifications:

The team establishes the target specifications of new product based on customers’ need and reviews about proposed product. While the process of identifying customer needs is entirely a function of marketing, designers and engineers become involved in establishing target specifications. Target specifications are essentially a wish-list tempered by known technical constraints.

Analyse Competitive Products:

Analysing competitive products can help orient designers and provide a starting point for design efforts. Rather than beginning from scratch and re-inventing the wheel with each new project, traditionally, the evolution of design builds on the successes and failures of prior work.

Generate Product Concepts:

Designers and engineers develop a number of product concepts to illustrate what types of products are both technically feasible and would best meets the requirements of the target specifications.

Select a Product Concept:

Through the process of evaluation and trade-offs between attributes, a final concept is selected. The selection process may be confined to the team and key executives within the company, or customers may be polled for their input. Candidate appearance models are often used for additional market research; to obtain feedback from certain key customers, or as a centrepiece of focus groups.

Refine Product Specifications:

In this stage, product specifications are refined on the basis of input from the foregoing activities. Final specifications are the result of trade-offs made between technical feasibility, expected service life, projected selling price, and the financial limitations of the development project.

Perform Economic Analysis:

Throughout the foregoing activities, important economic implications regarding development expenses, manufacturing costs, and selling price have been estimated. A thorough economic analysis of the product and the required development effort is necessary in order to define the remainder of the development project.

The process of developing new products varies between companies, and even between products within the same company. Regardless of organizational differences, a good new product is the result a methodical development effort with well-defined product specifications and project goals

 

 

Q2 (b) What are the various production systems?

Ans:

Production systems are computer programs typically used to provide some form of artificial intelligence, which consists primarily of a set of rules about behaviour. These rules, termed productions, are a basic representation found useful in AI planning, expert systems and action selection. A production system provides the mechanism necessary to execute productions in order to achieve some goal for the system.

Various types of production systems are as follow:

  1. JIC (Just-in-case) system:

In JIC, manufacturers need to maintain large inventories of supplies, parts, warehousing resources, and extra workers to meet production contingencies. These contingencies, more common in less industrialized countries, can be poor transportation, poor quality control, other suppliers production problems, and environmental.

  1. Japanese JIT (Just-in-time) system: -

Just-in-time (JIT) is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated carrying costs. In order to achieve JIT the process must have signals of what is going on elsewhere within the process.

  1. Latest OPT (Optimized-Production-Technology) system: -

Optimized production technology is proprietary scheduling system using, computer software which was originally developed by Dr. Eliyahu Galodratt and colleagues who recognized that one of the most complex problems facing manufacturing organizations was that of shop floor scheduling.

 

 

  1. 3 (a) what is capacity planning? Explain the various methods of altering capacity?

Ans:

Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. In the context of capacity planning, "capacity" is the maximum amount of work that an organization is capable of completing in a given period of time.

Capacity is calculated: (number of machines or workers) × (number of shifts) × (utilization) × (efficiency).

The broad classes of capacity planning are lead strategy, lag strategy, and match strategy.

  1. Lead strategy:

It is adding capacity in anticipation of an increase in demand. Lead strategy is an aggressive strategy with the goal of luring customers away from the company´s competitors. The possible disadvantage to this strategy is that it often results in excess inventory, which is costly and often wasteful.

  1. Lag strategy:

It refers to adding capacity only after the organization is running at full capacity or beyond due to increase in demand. This is a more conservative strategy. It decreases the risk of waste, but it may result in the loss of possible customers.

  1. Match strategy:

It demands adding capacity in small amounts in response to changing demand in the market. This is more moderate strategy.

Altering Capacity Methods:

The ways of altering capacity methods are as follow:

Production rate changes:

It includes planned overtime and subcontracting.

Workforce changes:

It contains the hiring and layoffs method & part time employees.

Inventory smoothing:

It controls anticipation inventory and mix seasonal item.

Demand shifting:

It has pricing strategies, coupons and advertising.

 

 

Q3. (b) What are the factors affecting facility location? What are the techniques for facility location?

Ans:

There are two (2) important factors in affecting facility location economic and non-economic.

They are described as follow:

  1. Economic:
  2. Site acquisition, preparation and construction costs
  3. Labour costs, skills and availability
  4. Utilities costs and availability
  5. Transportation costs
  6. Taxes

 

  1. Non-economic:
  2. Labour attitudes and traditions
  3. Training and employment services
  4. Community’s attitude
  5. Schools and churches
  6. Recreation and cultural attractions
  7. Amount and type of housing available

 

Techniques to help a location decision--the location rating factor, the centre-of-gravity technique, and the load-distance technique. The location factor rating mathematically evaluates location factors, such as those identified in the previous section. The centre-of-gravity and load-distance techniques are quantitative models that centrally locate a proposed facility among existing facilities.

 

 

Q3 (c) What are the various facility layouts? Enumerate the advantages and disadvantages.

Ans:

The current choices of layouts are as follow:

Dynamic facility layout:

This model takes into consideration material handling cost as well as cost of relocating machines from one period to the next. Heuristic procedure for the dynamic layout problem can be found in a number of research papers, it is assumed that a goal layout for the last of several pre-specified planning periods can be provided by the designer. A model which uses this goal layout as an input and provides intermediate layouts for the intermediate planning periods is developed. A limitation of this approach is that the relative positions of departments are fixed over all the planning periods - only the sizes and shapes are allowed to vary.

They formulate a stochastic dynamic layout problem under the assumption that the following are known a priori:

  1. Material flows between departments for each of several pre-specified planning periods.
  2. The probability of transitioning from one flow matrix to another.

Functional layout:

When product variety is high and/or production volumes are small, a functional layout, where all resources of the same type share the same location, offers the greatest flexibility.

However, a functional layout is notorious for its material handling inefficiency and scheduling complexity. In turn, this often results in long lead times, poor resource utilization and limited throughput rates.

Cellular layout:

An alternative to the functional organization of job shops is a cellular configuration, where the factory is partitioned into cells. Although cellular factories can be quite effective in simplifying workflow and reducing material handling, they can be highly inflexible since they are generally designed with a fixed set of part families in mind.

The demand levels are assumed to be stable and their life cycles considered sufficiently long. In fact, once a cell is formed, it is usually dedicated to a single part family with limited allowance for inter cell flows.

Such organization may be adequate when part families are clearly identifiable and demand volumes stable, they become inefficient in the presence of significant fluctuations in the demand of existing products or with the frequent introduction of new ones.

Distributed layout:

In order to address the limitations that come from fixed department locations, several authors have recently proposed that functional departments should be duplicated and strategically distributed throughout the plant floor.

Maximally distributed, or holographic, layout where functional departments are fully disaggregated into individual machines which are then placed as far from each other as possible to maximize coverage.

Distributed layouts can be used to form virtual cells that are temporarily dedicated to a particular job order.

Reconfigurable layout:

A shortcoming with several of the above approaches is that they assume production data, including the products to be produced, their routings, type and number of each production resource are known for future planning periods.

Advances taking place in materials and mechanical process engineering, for example, lighter composite materials, nano-technology and laser cutting, will allow companies to reconfigure machines rather easily on a frequent basis.

Modular layout:

The focus of this approach is on design of customized layouts for facilities with multiple products. Let consider a novel approach based on the idea that layouts can be constructed as a network of basic modules. Here at least in the short term, the product mix is known and demand is relatively stable. As the product mix evolves and demand changes, certain layout modules will be eliminated and others added. The use of modules is motivated by the fact that none of the prevailing layout configurations (functional, flow line, and cellular) can individually describe the complex material flow network in a multi-product manufacturing facility.

A common observation was made that dissimilar product routings often had common substrings of operations that could be aggregated into layout modules.

Agile layout:

A common observation was made that dissimilar product routings often had common substrings of operations that could be aggregated into layout modules. But they do not adequately address the above needs because they tend to be designed for a specific product mix and production volume, both assumed to last for a sufficiently long period. The design criterion routinely used in most layout design procedures - a measure of long-term material handling efficiency, fails to capture the priorities of the flexible factory (e.g., scope is more important than scale, responsiveness is more important than cost, and re-configurability is more important than efficiency). As a result, layout performance tends to deteriorate significantly with fluctuation in product volumes, mix, or routings.

 

 

Q.4. (a) what is meant by master production schedule?

Ans:

The master production schedule (also commonly referred to as the MPS) is effectively the plan that the company has developed for production, staffing, inventory, etc.

It has as input a variety of data, e.g. forecast demand, production costs, inventory costs, etc and as output a production plan detailing amounts to be produced, staffing levels, etc for each of a number of time periods.

It represents what the company plans to produce expressed in specific configurations, quantities, and Dates. The Master Production Schedule must take into account the forecast, the production plan, and other important considerations such as backlog, availability of material, availability of capacity, and management policies and goals. Syn. Master Schedule

The master schedule is a presentation of demand, forecast, backlog, the MPS, the projected on hand inventory, the available-to-promise quantity.

MPS has the following characteristics:

  1. Operates at an aggregate level:
  2. Cost driven, that is it attempts to meet the specified requirements at minimum cost.

 

 

Q4 (b) Explain the activities involved in production planning and control.

Ans:

  1. Breaks down, or disaggregates, the production plan into product families:

The production plan is broken into product families for the Master Production Schedule and Production is planned based on demand forecasts provided by marketing.

  1. Promotes valid order promises:

Order promises can be made against planned production. This job falls to marketing and is referred to as “consuming” the Inventory.

  1. Provides a communication medium between Marketing/Sales and Operations.

When more product has been promised than will be produced, marketing and operations must work together to develop a strategy to meet customer requirements. This can take the form of many options including; subcontract, allow overtime, increase capacity through equipment acquisition, expand facilities, increasing staffing levels, improve processes, etc.…

  1. Proactively control ability to deliver goods to customers:

The MPS allows for better understanding of capacity and gives visibility to capacity shortfalls. This allows action to be taken to meet demand or prioritize customer orders ahead of time.

  1. Resource availability control:

Understanding future capacity shortfalls creates the ability to plan the best uses of resources or increase resources if needed.

  1. Proactively control inventory levels:

MPS gives a firm the ability to not rely on safety stock or “reactive” EOQ models.

  1. The Sales and Operations Plan is broken into smaller product families:

An example would be an automaker breaking their auto mobile production down into small cars, trucks, etc…

  1. Promotes valid order promises:

By validating the capacity for the MPS through rough cut capacity planning, alterative plans can be made when there are more orders than production. Management has several options and implement something before customer orders are late or missed.

  1. Marketing communicates demand through customer orders and forecasts:

Marketing researches and monitors data to provide input on actual customer demand and forecasted customer demand to the Operations department

  1. Operations communicates capacity through inventory levels and constraints:

Operations researches and monitors data to provide input on capacity, inventory levels, and production constraints.

  1. Production shortfalls will be known ahead of time and alternative plans can be made:

Based on the sales forecast and capacity review, a firm will know when they will not be able to meet forecasted demand and will be able to make alternative plans to wither increase capacity in some manner or subcontract.

  1. Proactively control ability to deliver goods to customers:

Management will be able to proactively manage customer relations by deciding how to handle production shortfalls in advance.

  1. Proactive approach to inventory control:

By planning out the production based on demand, inventory can be delivered as it is needed. This helps to lower the cost of carrying goods that are not currently needed.

 

 

Q4(c) Discuss MRP. What are the inputs and outputs of an MRP system?

Answer:

Material requirements planning is a backward scheduling system driven by due dates for final products or customers’ orders. An MRP system is intended to simultaneously meet three objectives:

  1. Ensure materials and products are available for production and delivery to customers.
  2. Maintain the lowest possible level of inventory.
  3. Plan manufacturing activities, delivery schedules and purchasing activities.

Inputs to the MRP system: Inputs are as follow:

  1. Bill of material
  2. Definition of the number and type of components needed.
  3. Master production schedule
  4. It is the final product requirements by time period.
  5. Shelf life of stored materials.
  6. Planned lead times
  7. Accurate on-hand inventory status
  8. Records of net materials available for use already in stock (on hand) and materials on order from suppliers.
  9. Accurate information on all outstanding orders

 

Outputs to the MRP system:

There are two outputs and a variety of messages/reports:

  1. Recommended Production Schedule:

It lays out a detailed schedule of the required minimum start and completion dates, with quantities, for each step of the Routing and Bill of Material required to satisfy the demand from the Master Production Schedule (MPS).

  1. Recommended Purchasing Schedule:

This lays out both the dates that the purchased items should be received into the facility and the dates that the Purchase orders or Blanket Order Release should occur to match the production schedules.

 

 

Q.5. (a) Explain JIT manufacturing:

Answer:

Production processes based on JIT inventory system which allows faster response to customer demands without large finished goods or goods-in-process inventories. JIT manufacturing has the following features:

  1. JIT philosophy means getting the right quantity of goods at the right place and the right time
  2. JIT exceeds the concept of inventory reduction
  3. JIT is an all-encompassing philosophy found on eliminating waste
  4. Waste is anything that does not add value
  5. A broad JIT view is one that encompasses the entire organization
  6. All waste must be eliminated
  7. Broad view that entire organization must focus on the same goal - serving customers
  8. JIT is built on simplicity- the simpler the better
  9. Focuses on improving every operation- Continuous improvement - Kaizen
  10. Visibility – all problems must be visible to be identified and solved
  11. Flexibility to produce different models/features

 

 

Q5 (b) Explain acceptance sampling

Answer:

Acceptance sampling is a form of testing that involves taking random samples of “heaps,” or batches, of finished products and measuring them against predetermined standards.

Or

A statistical procedure for accepting or rejecting a batch of merchandise or documents; involves determining the maximum number of defects discovered in a sample before the entire batch is rejected.

 

 

Q5 (c) What do you understand by maintenance policy? Explain various categories of spares.

Answer:

A Maintenance Policy is a statement of principle used to guide Maintenance Management decision making.

IT is proactive maintenance operation employing planned and scheduled maintenance activities

through total productive maintenance (TPM) practices using maintenance strategies developed through application of reliability centered maintenance (RCM) decision logic and practiced by empowered (self-directed) action teams using the 5S process, weekly Kaizen improvement events, and autonomous maintenance together with multi-skilled, maintenance technician-performed maintenance through the committed use of their work order system and their computer managed maintenance system (CMMS) or enterprise asset management (EAM) system. They are supported by a distributed, lean maintenance/MRO storeroom that provides parts and materials on a just-in-time (JIT) basis and backed by maintenance and reliability engineering group that performs root cause failure analysis (RCFA), failed part analysis, maintenance procedure effectiveness analysis, predictive maintenance (PdM) analysis, and trending and analysis of condition monitoring results.

Categories of spares:

The spare parts can be categorized in various ways: By the speed of use: fast, slow non-moving

By importance to plant: essential, vital, important, and normal. By value: high, medium, low value items

By availability: scares, easily available, difficult to get, seasonal, off seasonal. By numbers required: large quantity, small quantity.

By controls: government control, foreign purchase, local purchase.

 

 

 

 

Assignment - B

Q1a) what is economic order quantity? What are the assumptions of EOQ?

Answer:

EOQ, or Economic Order Quantity, is defined as the optimal quantity of orders that minimizes total variable costs required to order and hold inventory.

EOQ determines the optimum order quantity that a company should hold in its inventory given a set cost of production, demand rate and other variables. This is done to minimize variable inventory costs. The full equation is as follows:

√2SO/CP

Where:

O = Setup costs S = Demand rate

P = Production cost

C= Interest rate (considered an opportunity cost, so the risk-free rate can be used)

 

 

Q1b) If the annual demand for a product is 3, 50,000 units. The annual carrying cost rate is 25 percent of the cost of the unit the product costs Rs 14.75 per unit to purchase, and each time the product is ordered the related ordering cost is Rs 53.00.

Answer:

(i) What is EOQ?

Annual Demand of production = S=3, 50,000 units

Setup cost = O = 53.00

Cost per rate = C = 25%

Product cost = 14.75

EOQ = √2SO/CP

EOQ = √2 (350000) (53)/ (0.25) (14.75)

         =√37100000/3.6875

  = √100610169491

  = 3171.91

 

 

(ii)What is total cost at EOQ?

Total Cost = Purchase Cost + Order Cost + Holding Cost

= 14.75            +          53        +          25%

= Rs.68

 

 

(iii)How much would be the total cost if the order quantity is 2500 units

Annual Demand of production = S=2500 units

Setup cost = O = 53.00

Cost per rate = C = 25%

Product cost = 14.75

EOQ = √2SO/CP

EOQ = 268.07

 

 

Q.2. a) Operations scheduling is one of the most important function of production planning and control. Discuss.

Answer:

Scheduling pertains to establishing both the timing and use of resources within an organization. Under the operations function (both manufacturing and services), scheduling relates to use of equipment and facilities, the scheduling of human activities, and receipt of materials.

While issues relating to facility location and plant and equipment acquisition are considered long term and aggregate planning is considered intermediate term, operations scheduling is considered to be a short-term issue. As such, in the decision-making hierarchy, scheduling is usually the final step in the transformation process before the actual output (e.g., finished goods) is produced. Consequently, scheduling decisions are made within the constraints established by these longer-term decisions. Generally, scheduling objectives deals with trade-offs among conflicting goals for efficient utilization of labour and equipment, lead time, inventory levels, and processing times.

There are two general approaches to scheduling: Forward scheduling and backward scheduling. As long as the concepts are applied properly, the choice of methods is not significant. In fact, if process lead times (move, queue and setup times) add to the job lead time and process time is assumed to occur at the end of process time, then forward scheduling and backward scheduling yield the same result. With forward scheduling, the scheduler selects a planned order release date and schedules all activities from this point forward in time.

With backward scheduling, the scheduler begins with a planned receipt date or due date and moves backward in time, according to the required processing times, until he or she reaches the point where the order will be released.

 

 

Q 2. b) Seven jobs are to be carried out on three machines M1, M2, M3 in the order of M1, M2, M3. The processing time in hours of various jobs are tabulated below.

Job

M1

M2

M3

A

1

7

8

B

3

3

1

C

7

8

8

D

9

2

11

E

4

8

9

F

5

6

14

G

2

1

12

 

 

  1. i) What are the conditions for using Johnson’s rule to sequence jobs on three machines?

Answer.

(i) Working Sequence using Johnson’s rule: -

 

 

  1. ii) What is the make span for these jobs?

Answer.

Making Span: -

Total making span = 71 Hrs.

 

 

 

Case Study: -

Case Detail: 

Please read the two case studies given below and answer questions given at the end :

  1. a) An electronic goods company produces radios and calculators. The radios generates a profit of Rs10/- per unit while calculators generates a profit of Rs 15/- per unit. Each radio requires four diodes and four resistors, while each calculator requires ten diodes and two resistors. The radio takes 12 minutes and calculators take 9,6 minutes on the testing machine.

The production manager estimates that 160 hours of testing time are available. The firm has 8000 diodes and 3000 resistors in stock.

Question

Formulate the linear programming problem and solve it graphically.

  1. b) Systems Software (P) Ltd. is planning to develop new software. It has identified the activities in the table below for this software development project and has calculated three time estimates in days for each of the activity.

 

 

  1. Draw the network diagram; find out the critical path and the expected duration of the project.

Answer.

Optimized Timings:

                              Network Diagram with Duration & Critical Path added

Expected Duration of project:

LFT of last activity= 18 days

 

 

 

  1. Calculate the slack time for each of the activities.

Answer.

  1. ii) Slack time for each of the activities:

Activity

EST

EFT

LST

LFT

SLACK

LST-EST

CRITICAL

A

0

1

0

1

0

Yes

B

1

4

4

7

3

No

C

1

7

1

7

0

Yes

D

1

5

3

7

2

No

E

7

15

7

15

0

Yes

G

15

17

15

17

0

Yes

H

17

18

17

18

0

Yes

 

Most-Likely Timings:

Network Diagram with Durations & Critical Path added

Expected Duration of Project:

LFT of last activity= 28 days

Activity

EST

EFT

LST

LFT

SLACK

LST-EST

CRITICAL

A

0

2

0

2

0

Yes

B

2

7

7

12

5

No

C

2

12

2

12

0

Yes

D

2

8

6

12

4

No

E

12

21

12

21

0

Yes

F

21

25

21

25

0

Yes

G

25

28

25

28

0

Yes

 

 

  1. Calculate the probability of completing the project in 30 days.

Answer.

Activity

Optimistic

Pessimistic

Variance

[(b-a)/5]2

Total Variance

 

Standard

Deviation

A

1

3

 

0.16

 

5.44

2.33

B

3

7

0.64

C

6

14

2.56

D

4

8

0.64

E

8

10

0.16

G

2

6

0.64

H

1

5

0.64

               

 

 

 

Target Time     = 30

Expected Time = 28 

Probability       = Z = (Target Time) – (Expected Time) 2.33

= [30‐28]/2.33 = 0.86

So it means there is 86% probability of completing project within 30 days.

 

 

 

 

ASSIGNMENT - C

Pick up the right answer from the multiple choices

1.Organizations that produce something other than physical products are called

a) Transformation organizations

b) Data transfer groups

c) Service organizations

d) Cultural organizations

 

  1. Which of the following is NOT a characteristic of service operations?

a) Intangible output

b) Perishable products

c) Labour intensive

d) Low customer contact

 

  1. Decisions that tend to focus on the entire organization, cutting across

a) Departmental

b) Tactical

c) Strategic

d) Routine

 

  1. Competing on differentiation is

a) Concerned with uniqueness

b) Based on cost leadership

c) Based on flexibility

d) Reliability of scheduling

 

  1. Which of the following is NOT important in globalization?

a) Product design

b) Culture and ethics

c) Facility location

d) Facility lay out

 

  1. Which of the following conditions are NOT generally associated with job process?

a) Work force with highly specialized skills

b) Low product volume

c) Relatively high customization

d) High resource flexibility

 

  1. Low volume, high variety production is best suited for

a) Process focus

b) Repetitive focus

c) Product focus

d) Mass customization

 

  1. Which of the following automatically place parts into a warehouse

a) ASRS

b) AGV

c) FMS

d) SGV

 

  1. The planning and scheduling of production only against specific production order is

a) Make-to-Stock

b) Make to-Order

c) Assemble-to-Order

d) Mass Customization

 

  1. Which of the following is NOT a characteristic during the introductory phase of the product life cycle?

a) Research

b) Process modification

c) Supplier development

d) Capacity utilization

 

  1. Which of the following is a characteristic of the maturity phase?

a) Products are ʹline tunedʺ

b) Product designs begin to stabiliz

c) Competitors are well-established

d) Products are considered for termination

 

  1. Benefits of design for manufacturability and value engineering include all of the following accept

a) Reduced complexity of the product

b) Additional standardization of the components

c) Improved job design and safety

d) Compromise quality

 

  1. Modular design

a) Offers flexibility to both production and marketing

b) Means that small variations in production do not adversely affect the product

c) Uses computers to interactively design the products

d) Are environmentally friendly

 

  1. Which of the following is NOT a concept of green manufacturing?

a) Make products recyclable

b) Standardization of components

c) Use less harmful ingredients

d) Use lighter components

 

  1. Design effectiveness is NOT measured by

a) Percentage of standard parts & processes

b) Number of revisions in the design

c) Cost of field repairs

d) Time taken from concept to market

 

  1. Which of the following is NOT a benefit of concurrent engineering?

a) Enables early supplier involvement

b) Promotes consensus decision making

c) Reduces developmental lead-time

d) Eliminates design changes after product introduction

 

  1. Which of the following is NOT a method for evaluating location alternatives,

a) The transportation model

b) Factor rating

c) Centre of gravity method

 

  1. Which of the following is NOT a mathematical technique used for finding the point that services several stores or areas

a) Factor rating .

b) Center of gravity

c) Transportation model

d) Hungarian method

 

  1. The system that has the highest equipment flexibility is

a) Job shop

b) Batch

c) Repetitive production

d) Continuous processing

 

Solve by www.solvezone.in

 

  1. In a product layout the process of deciding how to assign tasks to work stations is referred to as:

a) Process balancing

b) Task allocation

c) Line balancing

d) Factor rating

 

  1. The advantages NOT associated with a U shaped assembly line over a straight one are

a) Fewer workers are needed

b) Workers can reach more of the work area

c) Work area can be efficiently balanced

d) Automated material handling

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