AMITY MBA 3 SEMESTER MAJOR OPERATION

Production and Operations Management

(EDL 323)-Semester III

 

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1st Module assessment

Case Study

DSM and 3Dmouthguard develops instantly printed mouthguards

Royal DSM, a global science-based company with interest in health, nutrition, and materials establishes a partnership with 3Dmouthguard to develop custom-made and instantly printed 3D mouthguards to protect teeth and mouth injuries in any type of sport that involves bats, balls, sticks or person-to-person contact.     The companies have developed a new technology in association with Carestream Dental and NHL Stenden Hogeschool to print custom-made mouthguards in 3D on the spot.

Fused filament technology can print a perfectly fitted mouthguard on the spot by scanning the upper jaw with video technology and capturing all curves and shapes of mouth and teeth digitally. The new additive manufacturing (AM) process, combined with the 3D filament material characteristics, completely automates and digitizes the process of producing customized mouthguards and prints them instantly.

“We are pleased that our materials and AM/3D knowledge can help to transform the mouthguard market by making the production of high quality mouth protectors fast and easy, helping prevent oral injuries. Providing the right material and the right platform for specific applications is key to accelerating the adoption of 3D printing into real manufacturing”, said, Hugo Ferreira da Silva, Vice-President at DSM Additive Manufacturing. He added, “Collaboration in the industry will allow more applications to benefit from the great advantages of additive manufacturing, at an affordable cost.”

Arno Hermans, CEO of 3Dmouthguard, said, “We believe that in a few years from now, 3D printed mouthguard machines will be a must have in every sports facility around the world. For us the technology is also a start of a whole field of new applications. It enables us to learn, develop and explore new products like shinguards, helmets, and elbow protection, and it can benefit markets beyond sports such as healthcare.”

Question 1. Fused filament technology can print a perfectly fitted mouthguard at what time?

a. At a later date

b. After 2 hours

c. On the spot

d. On a specific day of the week.

 

2. In what way the materials of DSM and AM/3D knowledge can help to transform the mouthgaurd market?

a. Production of high quality mouth protectors becomes fast.

b. Production of high poor quality mouth protectors becomes easy.

c. Help oral injuries.

d. Production of high quality mouth protectors becomes slow.

 

3. In which area Royal DSM has interest?

a. Health

b. Nutrition

c. Material

d. Material handling systems

 

4. What benefit will be possible by collaboration in the industry?

a. Additive manufacturing will become costly.

b. Additive manufacturing will become very low.

c. Additive manufacturing will become affordable.

d. No effect.

 

5. What can be done by filament technology?

a. Can print a perfectly fitted mouthgaurd on the spot.

b. Can print a perfectly fitted mouthgaurd only at a later time..

c. Cannot print a perfectly fitted mouthgaurd on the spot.

d. Can never print a perfectly fitted mouthgaurd on the spot.

 

6. What is result of the partnership of Royal DSM and 3Dmouthgaurd?

a. Development of custom-made and instantly printed 3D mouthguards to protect teeth and mouth injuries in a few type of sport

b. Development of custom-made and instantly printed 3D mouthguards to protect teeth and mouth injuries in any type of sport

c. Development of custom-made and instantly printed 3D mouthguards to hurt teeth in some type of sports

d. Development of custom-made and instantly printed 3D mouthguards to damage teeth and mouth in any type of sport

 

7. What is the effect of the new additive manufacturing (AM) process, combined with the 3D filament material characteristics on the process of producing customized mouthguards?

a. automates the process

b. make the process manual

c. does not digitizes the process

d. does not automates and digitizes the process

 

8. What slows down adoption of 3D printing into real manufacturing

a. Provide the right material.

b. Provide the right platform for specific application.

c. Provide the right material and right platform for specific application.

d. None of the three.

 

9. Who is Arno Hermans?

a. Vice-President at DSM Additive Manufacturing

b. Vice-President of 3Dmouthgaurd

c. CEO of DSM Additive Manufacturing

d. CEO of 3Dmouth guard.

 

10. With whom Royal DSM has established partnership?

a. Dell company

b. Microsoft

c. 3D Mouthguard

d. Google

 

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2nd Module assessment

Case Study

The case of Chevrolet Spark Capacity Planning                                                                                                                                               When General Motors India Private Ltd.(GMI) launched its small car 'Chevrolet Spark' on April 17, 2007, it intensified the price war in the small car segment. GMI, the Indian subsidiary of one of the world's largest car manufacturers General Motors Company, priced the basic model at Rs.2 309,000, nearly Rs.12,000 less than the Zen Estilo from its closest competitor, Maruti Suzuki3. However, despite a sparkling debut, a major campaign, and the media glitz that was planned to last a year, the Spark failed to ignite GMI's fortunes. Prior to this launch, the company was way down in terms of media voice, market share, product line up, and capacity constraints, and was badly affected by the phase-out of its once popular Opel brand.   

 

Moreover, due to capacity constraints, Spark was offered only in the northern and western parts of the country. While GMI hoped to increase its revenues with the launch of the Spark, its sales failed to live up to expectations. However, it managed to bag some prestigious awards like the J.D. Power Initial Quality Study (IQS) Award for four consecutive years from 2007 for its top quality features. The Spark also began receiving rave reviews from auto experts and consumers for its comfort and performance and GMrecorded an annual growth of 68% in 2007. To overcome the existing capacity constraints, the company had built a facility at Talegaon in Maharashtra by 2009. As a result, there was a reversal of the situation and the company had excess production capacity. With excess capacity, GMI planned to extend its portfolio. However, during 2010-2011, its production facilities in Gujarat faced labor unrest and the company was left with production losses. GMI, therefore, proposed to lay off some of its employees at its plants. With such problems surfacing, industry observers feared that GMI might again face capacity constraints.

 

Question 1. For how many years did the car won the prestigious J.D.P. Power Initial ' Quality Study (IQS) awards?

a. 1 year

b. 2 years

c. 3 years

d. 4 years

 

2. What action was taken by GMI to overcome the existing capacity constraints?

a. Reduced the production targets

b. Built a facility at Talegaon in Maharashtra.

c. Expanded the capacity of the operating plant.

d. None of the three.

 

3. What strategy was adopted by GMI at the time of launching its small car 'Chevrolet Spark'?

a. Introduced the car at a very high price than competitors

b. Introduced the car at a lower price

c. Introduced the car in all parts of India

d. Did not do major campaign

 

4. What types of reviews were received for car from auto experts and customers?

a. Poor reviews

b. Satisfactory reviews

c. Very bad

d. Rave reviews

 

5. What was the impact of capacity on the company's once popular 'Opel' brand?

a. Extra capacity increased the sale of 'Opel' brand.

b. Capacity constraints increased the demand of the car.

c. Capacity constraints phased out the once popular Opel car.

d. All the three.

 

6. What was the impact of launch of the Chevrolet Spark on the sales of GMI in India?

a. Sales increased

b. Sales remained at the same level.

c. Sales failed

d. All the three.

 

7. What was the impact of the new car on the sales in 2007?

a. Sales were lower by 50%

b. Sales were higher by 50%

c. Sales were higher by 68%

d. Sales were higher by 78%

 

8. What was the market situation of GMI prior to the launch of the Chevrolet Spark?

a. Low market voice

b. High market share

c. HIGH product line up.

d. Availability of excess production capacity.

 

9. What was the result of the labor unrest faced by the GMI in its facility in Gujrat?

a. The capacity of the facility was left with production losses.

b. GMI proposed to recruit more employees at its plants.

c. Industry observers felt that company will com out of the capacity constraints.

d. Industry observers felt that company will be having extra capacity to expand its portfolio.

 

10. Which car was the closest competitor of GMI's car?

a. Honda

b. BMW

c. Maruti Suzuki

d. None of the three.

 

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3^rd Module assessment

 

Case Study

 

Implementation of Operations Management II REDUCED SETUP TIME IN BRAKES INDIA PRIVATE LIMITED

Brakes India Private Limited (BIL), established in 1962, is the largest brake system manufacturer in India. Its oldest unit is located at Padi in Chennai of Tamilnadu state and has about 2840 employees. It is a TPM awarded and ISO 14001 certified company, and its products include brake actuation, clutch actuation, foundation brakes, hoses and brake fluid that are used in all types of vehicles including cars, LCV, HCV, tractors, two wheelers etc. Besides its unit at Padi, it has six more plants across the country. Its Gurgaon plant was opened in 1986 and it is relatively smaller as compared to its main units located in Tamilnadu. The Gurgaon unit is ISO 14001 certified and its main products include front disc brakes, rear drum brakes and The company is among the early adopters of JIT techniques in the country. It has adopted focused manufacturing to improve quality, cost and delivery. It constantly endeavours to improve and update the existing processes and technologies keeping in mind the basic principles of Kaizen. It uses international quality standards such as ISO 9000 and QS 9000 to produce high quality products that are supplied to about 70 leading automobile customers. It has adopted cellular manufacturing and has drastically reduced the setup time for six machines in a cell that initially varied between 4 to 16 hours. The high setup time that was found to be because of poor planning and improper procedures used in the plant used to prevent the company to bring variety of its products in the market. With reduced setup time the company was able to increase its production from 24000 to 29000 pieces per month in the cell. The use of cellular manufacturing provided increased flexibility and the plant has become more productive. Simultaneously now it has reduced lot size, reduced level of work-in-process (WIP) inventory, faster feedback on operating performance and increased quality level. It believes in imparting regular training to its workers to make them well conversant with the latest trend in technology. Its multifunctional and multi-skilled workers ensure balanced workstations, hence utilizing machines to their fullest capacity and simultaneously reducing lead time. It ensures total customer satisfaction through its JIT deliveries.

 

 

1. Where is the main unit of BIL located?

 

 

• Tamil Nadu

 

• Haryana

 

• Andhra Pradesh

 

• Maharashtra

 

2. How many units of BIL are there in India?

 

 

• 1

 

• 4

 

• 6

 

• 7

 

3. In which year the Gurugram plant was established?

 

 

• 1962

 

• 1972

 

• 1986

 

• 2000

 

4. Which are the main products of BIL?

 

 

• Front disk brakes

 

• lighting fixtures

 

• Electronic Cards

 

• Car batteries

 

5. Which are not the main products of BIL?

 

 

• Hoses

 

• Brake fluid

 

• Tires

 

• Hand gloves

 

6. Which quality standards are used by BIL?

 

 

• ISO 9000

 

• ISO 14001

 

• QS900

 

• None of the three

 

7. How many customers in automobile sectors were served by BIL?

 

 

• 50

 

• 60

 

• 70

 

• 80

 

8. What is the status of use of JIT technique in BIL?

 

 

• BIL is yet to adopt JIT.

 

• BIL has already adopted JIT.

 

• BIL is late starter of JIT.

 

• BIL is not convinced to use JIT.

 

9. What was the effect of adopting cellular production by BIL?

 

 

• Company was able to increase its production from 24000 to 29000 pieces per month in the cell.

 

• BIL increased the lot size.

 

• Set up time was increased

 

• Increase in work-in-process

 

10. Why did BIL employed multi-functional and multi-skill workers?

 

 

• BIL was able to increase the lead time.

 

• BIL was able to balance the work-load in work-stations.

 

• BIL was unable to use the capacity.

 

• BIL was able to provide the customer satisfaction with delayed deliveries.

.

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4^th Module assessment

 

Case Study

 

Case study on ABC Analysis in Hospitality Industry

Implementation of ABC analysis involves: 1. Preparation of list of items and their annual consumption value. 2. Arrangement of the items in the descending order of their annual usage in value. 3. Calculation of the percentage of the share of each item. 4. Separation of items into A, B, and C categories.

Method of data collection: i. The relevant data needed for the analysis was obtained by the sales reports; purchasing reports generated by the finance department of the company collected using the SAP SE (System Analyses and Program) software. The data was extracted from the SAP SE software by suing certain T-codes for the different materials. ii. Interviews with the personnel in the stores, and the managers in the purchase and finance departments iii. Background knowledge information was obtained by review of the related literature on the ABC analysis.

CASE ILLUSTRATION

The inventory is bifurcated into 5 types: 1. Liquor 2. Food 3. Soft beverages 4. Tobacco 5. General and stationery items

We have considered only the “liquor”, “soft beverages” and the “tobacco” inventory data. The following details were obtained: a) The lead time of the stocks is highly variable according to the demand but to be on a safer side, this is assumed to be 7 days for all the stocks except for imported liquor which has the lead time at 15 days. b) No theft of stock is possible due to the stringent policies of the XYZ hotel including periodic tracking of the items present in the inventory owing to the use of fully automated inventory system and perpetual inventory. c) Possibility of a stock out is nil on the account of the use of the software SAP which alerts the operator if the minimum stock level is breached

 

CONCLUSIONS

The inventory of liquor is higher than the minimum level that should be maintained. Brand strength of liquor is high and no new brand introduction is necessary. After the ABC analysis

of the data obtained, it was found that the Hotel maintained the required inventory for the class „A‟ items. However, the level of inventory of the class „C‟ items is higher than the optimum level for the same category. Steps have been taken to reduce the class „C‟ item stock in the inventory by moving the class „C‟ items by giving it away in complementary or in hampers. In order to push the recognized items, promotional events and activities can be conducted.

 

 

1. Which is used in carrying out ABC analysis?

 

 

• Daily consumption value.

 

• Weekly consumption value.

 

• Monthly consumption value.

 

• Yearly consumption value.

 

2. Which software was used by the company in this case study?

 

 

• Software was not used in this case.

 

• SAP-SE software was used.

 

• Several softwares were used in this case.

 

• None of the three

 

3. Which code was used by the software for doing the ABC analysis to extract data?

 

 

• A-Code

 

• B-Code

 

• C-Code

 

• M-Code

 

4. Who was not interviewed for collecting the data for ABC analysis?

 

 

• Personnels from stores.

 

• Purchase Manager

 

• Production Manager

 

• Finance Manager

 

5. Which items were not considered by the ABC team for doing ABC analysis?

 

 

• Liquor

 

• Food

 

• Soft Beverage

 

• Tobacco

 

6. Which of the stock item had 15 days stock?

 

 

• Imported Liquor

 

• Soft beverages

 

• Tobacco

 

• General and stationery items

 

7. What possibility of stock-out was considered in doing the ABC analysis in the present case.

 

 

• High possibilities of stock-out.

 

• Medium possibilities of stock-out.

 

• Low possibilities of stock-out.

 

• No possibility of stock out.

 

8. What was the finding of the ABC analysis?

 

 

• Hotel maintained the required inventory for 'A' items.

 

• Level of the class C items was lower than the optimum level for the category.

 

• Level of the class C items was at the correct optimum level for the category.

 

• All the three

 

9. 'Define Category 'A' item.

 

 

• A category items are the items received first during the day.

 

• A items are the items that has highest annual consumption in quantity.

 

• A items are the items that has highest annual consumption value

 

• A items are the items that has the high cost.

 

 

10. What action was taken by the company to reduce the level of C category item?

 

 

• Increased the purchased quantity of C category item.

 

• C category items were given as complementary items to customers.

 

• C category items were categorized as A category items

 

• Purchase of C category items was stopped for some time.

 

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5^th Module assessment

 

Case Study

 

CPM as a management methodology has been used from the mid-50s. The main objective of the implementation of the CPM is to determine the best way to reduce the time required to perform routine tasks and repetitive required to support an organization. This methodology was originally identified to perform routine tasks such as crop improvement, maintenance and construction. Critical path analysis is an extension of the bar chart. CPM using the work breakdown structure in which all of the project is divided into tasks or activities of the individual. For each project there is a sequence of events that must be done. Some tasks may depend on the completion of the previous tasks while others may be independent of the task ahead and can be done at a certain time. Periods of work and completion time is also significantly different. CP helps decision- makers and members of the project to identify the best estimate (based on accurate information) from the time required to complete the project.

Advantages

In the age where tools available to management are constantly changing and improving the ability of CPM to still command respect among the project teams and managers is testimony to the fact that this tools has proved very valuable and beneficial. Listed below are some of the major reasons why CPM is still used in organizations today:

1. CPM encourage managers and members of the project to draw graphics and identify the various activities undertaken for the project this step to encourage all members of the project team to evaluate and identify the requirements of the project in time critical and logical.

2. Also offers a network diagram project completion time prediction and how to assist in the planning and scheduling is required for completion of the project Identify the critical path for the project is the stage of the analysis of the network diagram.

Disadvantages

Disadvantages of Critical Path Management CPM has the advantage and has been able to provide companies use reasonable estimate of the time required for completion of the project. The main drawback of the critical path method listed below. Many losses are as a result of technical and conceptual factors involved in the analysis process:

1. The CPA (Critical Path Analysis) process can become complicated as the scope and extent of the project increases.

2. CPA (Critical Path Analysis) process can be complicated depending on the basic concept that the managers involved in the project team who is experienced with a variety of activities.

 

 

1. What is the main objective of implementation of CPM?

 

 

• To determine the cheapest way of performing the routine tasks.

 

• To identify the most costly way of doing a routine task.

 

• To determine the best way to reduce the time required to perform the job.

 

• To determine the best way of performing the repetitive task.

 

2. What is the full form of CPM

 

 

• Critical project management

 

• Critical Path Management

 

• Critical Path Method

 

• Critical Performance Measurement

 

3. In which task, CPM is not used?

 

 

• Crop improvement

 

• Maintenance tasks

 

• Construction projects

 

• Watching TV

 

4. Which is the incorrect statement about the Break Down Statement (WBS)?

 

 

• A project is divided into tasks.

 

• In a project, there a sequence of activities that are to be done.

 

• In a work breakdown structure, various tasks are of the project are combined into a bigger task.

 

• WBS (Work Breakdown Structure) can be prepared for any project.

 

5. Which is the incorrect statement about the Critical Path Method (CPM)?

 

 

• CPM encourages Managers and members of the project to draw graphics for the project.

 

• CPM helps to determine the Early Start Time (EST) of the activities.

 

• CPM helps to determine the Early Finish Time (EFT) of the activities.

 

• CPM does not help to determine the Latest Start Time (LST) of the activities.

 

6. Which is the incorrect statement about the Critical Path Method (CPM)?

 

 

• CPM considers all the activities of the project.

 

• CPM consider only few of the activities of the project.

 

• CPM considers only costly activities of the project.

 

• CPM considers only critical activities of the project.

 

7. Which statement is incorrect about network diagram?

 

 

• Network diagram shows the completion time of the project.

 

• Network diagram shows the critical path for completion of the project.

 

• Network diagram shows the critical path for completion of the project. Wrong Shows the preceding activity (activities) for each activity.

 

• Does not show the sequence of activities in completion of the project.

 

8. What is critical path?

 

 

• Critical path is the sequence of activities and events where there is no slack.

 

• Critical path is the sequence of activities and events where there is maximum slack.

 

• Critical path is the longest path through the project and takes infite completion time

 

• Critical path is the longest path through the project and takes maximum completion time

 

9. What is the effect of increase in the scope of project?

 

 

• Critical path analysis becomes simple.

 

• Additional resources will be required to complete the revised project scope.

 

• No effect on the critical path due to change of scope of the project.

 

• Increased scope of work will reduce the project duration.

 

10. What is crashing the project duration?

 

 

• Increasing the project duration is known as crashing the duration.

 

• Decreasing the project duration is known as crashing the duration.

 

• Crashing does not change the duration of the project.

 

• None of the three.

 

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Assignment 2

 

Case Study

 

PLANT LOCATION PROBLEMS

Location of a plant has direct relevance to raw materials, market, human resources, civic amenities, transportation etc. However, in some countries the problem becomes complicated due to (i) Inter-State competitions and tussles, (ii) Regional development and (iii) Political pressures and biased decision. Around1970, Government of India mooted the idea of expanding steel production under public sector units to be established at suitable locations. A committee of eminent personalities was formed to go through claims of (i) Vijaynagar Steel plant near Bellary in Karnataka, (ii) Salem Steel in TN and (iii)Vishakapatam steel plant in A.P. Since it was under PSU the political pressure was going on and if it was under private sector, there would not have been any kind of political pressure. The most important inputs for steel plant are iron ore, power and coal. Again in iron ore the iron percentage should be preferably more than 60% and ash content in coal should be less than 30%. These factors enable production of iron and steel at competitive price. From experts’ reports the following brief was available:(a)Vizag–The Iron ore is rich with 65% Iron and coal can be arranged from MP and Bihar and Vizag is well connected by broad gauge railway line to all important cities and the place has sea port and airport. Hence this place has more natural advantage than other cities.

(b)

Salem – Iron ore was having 60 to 65%. Iron content and hence be economically exploited. The coal is in lignite form which is low quality coal. Hence this needs to be converted as coke for use. The place has broad gauge line and Madras sea port and airport are nearby. This place wasconsidered second preference.(c)Vijaynagar – Bellary belt has Iron ore of 60% iron but coal has to come from AP (Singareni Colliery). The place had meter gauge railway line and hence not well connected to all India network. The seaport and airports were far away and hence this place was not found suitable. As per the expert committee report steel plant work started Vizag and Salem and these plants came up as per the plan and are doing well. However, to everyone’s surprise the them PM, Smt. Indira Gandhi, did foundation stone laying in 1971 at Toranagallu in Bellary district for Vijaynagar steel plant also. This ultimately proved to be an election gimmick to please the votes, though the PSU unit did not come up there at all. This is a clear example how politicians try to fool gulliable voters by way of inaugurations/foundation stone laying. Steel plants are quite huge with township having about 50,000 to 1,00,000 people. Hence requirements of housing, electricity, water, hospitals, education, institutions, entertainment facilities are very essential. The investment is huge and this helps to develop the surrounding area quite well and there is abundant scope for ancillary units, engineering services and employment inside and outside the steel plant. Both Vizag and Salem got these advantages and production standard as per the plan and these industries continue to run profitably. The expert committee had made comment on Vijaynagar proposal that, the unit can be viable if it uses latest foreign technology.

 

1. In which year Government of India mooted the idea of expanding production of steel under public sector?

 

 

• 1951

 

• 1965

 

• 1970

 

• 1980

 

2. Which site was not to be examined by the Committee of Expert set up by the Government for expansion of production of steel?

 

 

• Vijaynagar Steel Plant near Bellary in Karnataka

 

• Salem Steel Plant in Tamil Nadu

 

• Visakhapatnam in A.P.

 

• Jamshedpur Steel Plant

 

3. Which is the least important input for steel plant?

 

 

• Iron ore

 

• Power

 

• Limestone

 

• Coal

 

4. What percentage of iron in iron ore is not suitable for production of steel?

 

 

• More than 65%

 

• Less than 40%

 

• More than 75%

 

• More than 85%

 

5. Which statement is correct about Vizag Steel Plant?

 

 

• Iron ore has 45% iron

 

• Coal be arranged from MP and Bihar

 

• Vizag is not adequately connected with rail line

 

• Place has no airport and seaport

 

6. Is lignite coal available at Salem Steel Plant suitable for steel production?

 

 

• Lignite is a high quality coal suitable for production of steel.

 

• Lignite is a low quality coal suitable for production of steel.

 

• Lignite is a low quality coal and can be made suitable for production of steel by converting it into coke.

 

• Lignite is not available at Salem.

 

7. When was the foundation stone laid for setting up of the steel plant at Torangallu in Bellary district?

 

 

• 1951

 

• 1965

 

• 1971

 

• 1980

 

8. What is usually the population range of a steel plant township?

 

 

• 10000 - 20000

 

• 20000 -30000

 

• 30000 - 45000

 

• 50000 - 100000

 

9. Which is not linked in making a decision on the location of a plant?

 

 

• Raw materials

 

• Transportation

 

• Availability of library

 

• Availability of human resources

 

10. Which factor is not an important factor in deciding the location of the plant?

 

 

• Inter-state competition and tussles.

 

• Regional development

 

• Political pressures