Summer 2011, MBA-II SemesterMB0044: Production & Operations Management SMU Roll No. XXXXXXXMB0044: Production & Operations Management Assignment Set – I Note: Each question carries 10 Marks. Answer all the questions. Q1. Explain Quality Circles and its importance? Explain how CAD and CIM aid in reducing the concept to market time. Answer: Quality Circles : Kaoru Ishikawa is generally considered to have promoted the concept of Quality Circles. It is well known that he is the originator of fishbone diagrams to identify the root cause of any problem. The causes for the existence of a problem are classified as pertaining to the material, processes or method or any factor that goes into production. The matter is further investigated and pursued till the exact cause is determined. Quality circles use these principles in solving problems. The teams select projects selected on the above basis and implement actions to achieve improvement in the processes with a view to improve quality. Since these activities are carried out without affecting the regular day to day work and involve little involvement of the managers, team work gets reinforced and results in continuous improvement in methods and quality. The capital deployed is minimal, if at all, and therefore productivity is enhanced. Quality circles are very efficient in incorporating low cost and nonintrusive methods of improving productivity and quality throughout the organisation. They seek to involve all persons who are actually involved in the production system and the information they elicit and bring about improvements highly cost effective. They unveil creativity and encourage team work and bring about improvements almost on a day to day basis. They do not bring about dramatic changes, but continuous incremental changes in a harmonious way. They also tend to encourage identification of possible failures and seek methods of preventing things going wrong. Designers of products are increasingly depending on Computer Aided Design. The software aids in creating or modifying an existing design. The images can be maneuvered on the screen. Images of different components can be seen as ‘assembled’; sections taken and relative positions can be checked to great accuracies. Views can bee made seen from different angles and positions, so that the visualization process of the designed component/product helps the designer to suggest alternatives to the customer and the production department. The drawings can be sent via intranet or internet to the concerned persons and their opinions taken. Corrections and incorporations can be made very quickly. The database can be prepared, updated continuously and their access to executive. The efficiency of designers increases by nearly 5 times The software can generate the volume, weights of components as also other engineering parameters like centre of gravity, deflections under estimated loads, and various other design parameters on complicate forms – either single components or assemblies Laborious mechanical drawings need not be drawn. nor complicated calculations done. This aids in reducing the time required to make a design or modify a product and thus concept market period gets drastically cut. Integration occurs when a broad range of manufacturing and supporting activities are linked. Activities include engineering design, production planning, shop control, order processing, material control, distribution etc. Information flow across all functions takes place with the help of computers. Transmission, processing, distribution and feed back happen almost in real time so that intended activities are conducted rapidly. This process helps in rapid production and also reduce indirect costs. As response times decrease, customer satisfaction increases resulting in better business. CIM helps in avoiding accumulation of
MB0044: Production & Operations Management SMU Roll No. XXXXXXX
MB0044: Production & Operations Management
Assignment Set – I
Note: Each question carries 10 Marks. Answer all the questions.
Q1. Explain Quality Circles and its importance? Explain how CAD and CIM aid inreducing the concept to market time.
Answer: Quality Circles : Kaoru Ishikawa is generally considered to have promoted theconcept of Quality Circles. It is well known that he is the originator of fishbone diagrams toidentify the root cause of any problem. The causes for the existence of a problem areclassified as pertaining to the material, processes or method or any factor that goes intoproduction. The matter is further investigated and pursued till the exact cause is determined.Quality circles use these principles in solving problems. The teams select projects selectedon the above basis and implement actions to achieve improvement in the processes with aview to improve quality. Since these activities are carried out without affecting the regular
day to day work and involve little involvement of the managers, team work gets reinforcedand results in continuous improvement in methods and quality. The capital deployed isminimal, if at all, and therefore productivity is enhanced.
Quality circles are very efficient in incorporating low cost and nonintrusive methods ofimproving productivity and quality throughout the organisation. They seek to involve allpersons who are actually involved in the production system and the information they elicitand bring about improvements highly cost effective. They unveil creativity and encourageteam work and bring about improvements almost on a day to day basis. They do not bringabout dramatic changes, but continuous incremental changes in a harmonious way. Theyalso tend to encourage identification of possible failures and seek methods of preventingthings going wrong.
Designers of products are increasingly depending on Computer Aided Design. The softwareaids in creating or modifying an existing design. The images can be maneuvered on thescreen. Images of different components can be seen as ‘assembled’; sections taken andrelative positions can be checked to great accuracies. Views can bee made seen fromdifferent angles and positions, so that the visualization process of the designedcomponent/product helps the designer to suggest alternatives to the customer and theproduction department. The drawings can be sent via intranet or internet to the concernedpersons and their opinions taken. Corrections and incorporations can be made very quickly.The database can be prepared, updated continuously and their access to executive. Theefficiency of designers increases by nearly 5 times The software can generate the volume,weights of components as also other engineering parameters like centre of gravity,deflections under estimated loads, and various other design parameters on complicate forms
– either single components or assemblies Laborious mechanical drawings need not bedrawn. nor complicated calculations done. This aids in reducing the time required to make adesign or modify a product and thus concept market period gets drastically cut. Integrationoccurs when a broad range of manufacturing and supporting activities are linked.Activities include engineering design, production planning, shop control, order processing,material control, distribution etc. Information flow across all functions takes place with thehelp of computers. Transmission, processing, distribution and feed back happen almost inreal time so that intended activities are conducted rapidly. This process helps in rapidproduction and also reduce indirect costs. As response times decrease, customersatisfaction increases resulting in better business. CIM helps in avoiding accumulation of
MB0044: Production & Operations Management SMU Roll No. XXXXXXX
materials resulting in better throughput and better utilization of space. Bar coded labels thataccompany materials contain instructions for processing them which are read by sensingdevices and display the status on monitors. This information is available to all concernedpersonnel responsible in planning, marketing etc. so that they will be aware of the status ofany order and if expediting is needed to meet deadlines, they will be able to seekintervention. Identifying shortages, ensuring faster deliveries becomes easy with CIM.
MB0044: Production & Operations Management SMU Roll No. XXXXXXX
Q2. What is Differentiation Strategies? Briefly explain tools used for implementationof Operations.
Differentiation strategies rely on some basis of product differentiation such as flexibility,specific features, service, time and availability, low maintenance, etc. as the basis forcompetition. Product development and market research are generally necessarycomponents of a differentiation strategy. Generally, a successful differentiation strategyallows a firm to charge a higher price for its product. Organizations generally need strong R& D departments with strong coordination between R & D and marketing departments.Human Resource strategies must place emphasis maintaining a competitive skill base andmotivating employees toward the basis for differentiation.
Tools for Implementation of Operations
All functions in the organisation including administration, finance, materials, purchase,marketing, production, logistics, communication and others, can be considered operations.The reason is all of them use some inputs like materials or information either on a person toperson basis or through a flow line. They are required to use some process and convert
them into outputs usable in the next stage of the value chain. For example, when an invoiceis received for payment, it contains information about the following:
• Material or a service
• Person who needed the invoice
• Price to be paid
• Supplier
• Transportation
• Insurance
• Quantity
• Tax to be paid
• Others
The bills payable section will have to verify data regarding the above, seek inspectionreports from the quality control department/user. Before actual payment is made, verificationsuch as, the terms of payment and availability of funds are done. Verification will help you tonotice the following:
• Information is sought or given
• Materials received and transferred
• Papers/instructions are received/issued for initiating activities
All these are also operations. However, for our study we will limit our focus to operationsinvolving manufacturing. We identify a set of specialised techniques. We call them toolswhich can be standardised for ease of implementation and control.
Implementation of operations
Implementation is the process of executing the planned operations. When planning and controlling functions are put together, we call it as Implementation of Operations.
MB0044: Production & Operations Management SMU Roll No. XXXXXXX
The planning is the process of estimating, routing, and scheduling. The controlling functionsare conducted while the manufacturing is going on, like dispatching and expediting.
Implementation of operations
• Estimating: Estimating gives the quantities to be made at each workstationdepending on the Sales forecast, Provision for buffer stock, Quantities bought out,Services outsourced, Likely shortfalls, and Others. It is made on the basis ofcapacity.
• Routing : Routing, determines the sequence of operations and the machines that dothem, so that work flow, as determined by the processes, is smooth resulting inminimum inventory.
• Scheduling : Scheduling is mainly concerned with allocating time slots for different jobs. It specifies as to when jobs start and end at particular workstations. Thepurpose is to prevent imbalances among work centers and to utilise labour hours insuch a way that established lead times are maintained.
• Dispatching : Dispatching is concerned with moving of the materials with tools, jigs,and fixtures to specific machines along with drawings and ensuring inspections atspecific nodes, so that the materials move in the supply chain
• Expediting : Expediting ensures that all the above are being done properly. Reports
are generated and any bottleneck that gets created is removed.
Tools for implementation
GANTT charts are used to record progress, comparing the actual against the plannedactivities, and to keep track of the flow of the material. Line balancing and line of balance aretwo more tools to ensure that machining centres are loaded, as uniformly as possible toprevent build up stocks at intermediate stages.
MB0044: Production & Operations Management SMU Roll No. XXXXXXX
Simulation models are used to predict utilisation of machines, and production levels. Variousinventory models help us to determine when to order, and how many to order. It also givesus an insight to the risks and opportunities that come up for our consideration.Proper maintenance and analysis of records help us to see the gaps that have crept into theoperations system. Learning that happens across functions will make the tools being usedmore realistically and increase efficiency. ERP software, especially SAP, have manymodules that store, sort, and analyse data, and make them available to the staff across theglobe in many plants enabling managers to streamline their operations. Software specific tofunctions, applications or organisation can be obtained. Microsoft Operations Manager 2005is a useful tool in this regard.
