Operations Management Key

7/30/2019 Operations Management Key

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Operations Management Key

Unit I

1. Define Productions system. Explain how the concept of production system helps in

understanding of production and operations management. - JUNE 2010Or

Explain the system concept of production - JUNE 2011

OrDiscuss the design issues under which the operations system function.NOVEMBER/DECEMBER 2010

Production System

Conversion System

Control Sub-system

2. Discuss the organization of production function. - JUNE 2011

OrWhat are the various functions of operations? How are they linked to other parts of an

organization? NOVEMBER/DECEMBER 2010

It defines the relationship between various positions, departments and persons.

Position of Various Production Related Functions

1. Product Engineering


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2. Production Engineering

3. Plant Maintenance

4. Production planning and control

5. Purchasing

6. Research and Development

7. Marketing Division

8. Finance and Accounting

9. Information Systems

10. Personnel and Industrial Administration

3. Explain the recent trends in production and operations management. - JUNE 2011Or

With illustrations from Indian and International context enumerate the recent trends in

production and operations management. May/June 2012

a. Global Market Place:b. Production/Operations Strategy:

c. Total Quality Management:

d. Flexibility

e. Time Reductionf. Technology

g. Worker Involvement

h. Re-engineeringi. Environmental Issues

j. Corporate Downsizing (Right Sizing)

k. Supply Chain Managementl. Lean Production

4. Discuss the need and scope of strategic operations management. (8) - JUNE 2011

Need of Strategic Operations Management

Strategic Direction is futuristic

Strategies have multifunctional and Multi-business effects Allocation of Resources and improve co-ordination

Framework for operational planning

Clarity in direction of activities

Scope of Strategic Operations Management

Product Portfolio


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Process Design

Capacity and Facilities

Supply Chain

Technology

Quality

Sourcing

5. In todays global environmental scenario the nature of operations management in any

country is similar to International Operations Management Comment. Take a stand and

substantiate your views. May/June 20121. Sourcing and vertical Integration Arguments to Make and to Buy (Outsourcing)

2. Facility Location

3. Standardization of Production Functions

4. Contract Manufacturing5. Supply Chain Management

6. Managing Service Operations

7. International Quality Standards8. Internationalization of R & D9. Managing technology transfers

Facilities Location

Country Factor

ResourcesAvailability,

Infrastructure,Community, Culture

Product Factors Value to weightratio, Suitability touniversal needs

Organization Issues

Business strategy,Organization

Structure, Inventorymanagement

Technological Factors FeasibilitySetup cost

Govt. Policies-Incentives and Subsidiaries,

Import restrictions,Environment regulations,

Labour legislations, Politicalrisk


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Supplier

Supplier

Supplier

Supplier

Supplier

Storage Manufacturing Storage Distribution

Retailer

CustomerServiceStorage

Customer

6. What are the steps involved in strategic-formulation process? How does themanufacturing technology provide unique advantages to organization in providingproducts and services to customers? (10) NOVEMBER/DECEMBER 2010

Strategy formulation refers to the process of choosing the most appropriate course ofaction for the realization of organizational goals and objectives and thereby achieving the

organizational vision. The process of strategy formulation basically involves six main

steps. Though these steps do not follow a rigid chronological order, however they arevery rational and can be easily followed in this order.

Setting Organizations objectives

Evaluating the Organizational

Setting Quantitative

Aiming in context with the divisional plans

Performance Analysis

Choice of Strategy

7. Describe the elements of operation strategy.

1. Positioning the production systemProduct Focused

Process Focused2. Product/Service design and development.

3. Technology selection and process development4. Allocation of resources to strategic alternatives

5. Facility planning.

8. Enumerate the Competitive Priorities in operations strategy


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1. Product and service design

2. Cost3. Location

4. Quality

5. Quick response

6. Flexibility7. Inventory management

8. Supply chain management

9. Service

Unit II

1. Explain the activities involved in long range capacity planning decision. (8) - JUNE 2010 Assessing existing capacity

Forecasting future capacity needs

Identifying alternative ways to modify capacity

Evaluating financial, economical and technological capacity alternatives

Selecting a capacity alternative most suited to achieve the strategic mission of the firm

2. Discuss the information flow for planning and control with MRP. (8) - JUNE 2010Information flow of planning and controlling with MRP

Business Plan

Production Plan

Rough cut Capacity checkTentative MPS

Master Schedule

MRP Program Product Structure fileInventory status file

Purchase Order

CRP

Detailed Production Plans

Production Activity Control

Forecast

Currentconditions

Buy items

Vendor

feed-back

Make items


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3. Write about the aggregate planning methods, advantages and their limitation.(8)

NOVEMBER/DECEMBER 2010

Varying workforce size by hiring and lay off

Varying production rate by use of overtime or idle time

Level production and use of inventory built up, in periods of high demand

Subcontracting to meet the excess demand which is more that the normal capacity

available in-house

Capacity utilization, according to the demand to be metChase approach

capacities (workforce levels, production schedules, output rates, etc.) are adjusted to

match demand requirements over the planning horizon.Advantages:

anticipation inventory is not required, and investment in inventory is low

labour utilization is kept high

Disadvantages:

expense of adjusting output rates and/or workforce levels

alienation of workforce

Level Approach

Capacities (workforce levels, production schedules, output rates, etc.) are kept constantover the planning horizon.

Advantages:

stable output rates and workforce levels

Disadvantages:

greater inventory investment is required

increased overtime and idle time

resource utilizations vary over time

Aggregate Planning Methods: Intuitive Methods

Intuitive methods use management intuition, experience, and rules-of-thumb, frequently

accompanied by graphical and/or spreadsheet analysis.

Advantage:easy to use and explain

Disadvantage:

many solutions are possible, most of which are not optimal

4. What are the factors influencing effective capacity and what are all the factors favoring

overcapacity and under capacity? Discuss. (8) - NOVEMBER/DECEMBER 2010

Facilities factor

Product/service factor

Process factors

Human resource factor

Operational factor

External factor

5. Describe the importance and functions of capacity requirement planning for a

manufacturing operation. (8) - JUNE 2011


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Importance:

To estimate the demand

Helps organization to identify and plan to meet customer demand

Helps to find optimal capacity

Helps initial investment low

If helps to satisfy the future demand

Functions

Enable the firm to flow smoothly without either backlog of orders or a build-up ofstock

To stock prior to the demand

Safeguards against low supplies

Use to determine in detail labour, material and machine resource required

Considering the lead time

6. Discuss how aggregate production planning is related to master production schedule. (8) -JUNE 2011

DemandManagement

AggregatePlanning

ResourcePlanning

What If-Analysis

Final AssemblySchedule

MPS Rough-cut CapacityPlanning

MRP CRP

Vendor Follow-up System

ProductionActivity Control

OperationsSequencing

7. With a detailed sketch explain the evolution of ERP from MRP. - May/June 2012

Timeline System

1960 Inventory Management and Control

1970 Material Requirement Planning ( MRP)

1980 Material Resource Planning(MRP II)

1990 Enterprise Resource Planning(ERP)

2000 Web Enabled ERP


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8. List the various types of demand forecasting and explain in detail any two qualitative andquantitative methods of demand forecasting. - May/June 2012

Technological forecasts

Economic forecasts

Demand forecasts

1. Qualitative methods consist mainly of subjective inputs, often of non-numericaldescription.

Jury of executive opinion method involves taking opinion of a small group of high-level

managers and results in a group estimate of demand.

Salesforce compositemethod is based on estimate of expected sales by sales persons.

Market research method or consumer survey method determines consumer interest

in a product or service by means of a consumer survey.

Delphi method is a judgemental method which uses a group process that allows experts

to make forecasts.

2. Quantitative methods involve either projection of historical data or the

development of association models which attempt to use causal variables to

arrive at the forecasts Time series models

Moving Average Simple moving average, weighted moving average, exponential

smoothening

Regression and Correlation Methods

9. Developing capacity alternatives:

Design flexibility into systems

Differentiate between new and mature products or services

Take a big picture approach to capacity changes.

Prepare to deal with capacity chunks

Attempt to smooth out capacity requirements.

Identify the optimal operating level.

10. List the various types of demand forecasting and explain in detail any two qualitative andquantitative methods of demand forecasting. - May/June 2012

Technological forecasts

Economic forecasts

Demand forecasts

Qualitative methods Jury of executive opinion

Salesforce composite method

Market research method or consumer survey method

Delphi method

Quantitative methods

Time series models


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Moving Average Simple moving average, weighted moving average, exponential

smoothening

Regression and Correlation Methods

11. Over view of MRP (or) Information Flow in Planning and controlling with MRP.

MRP - It is a technique for determining the quantity and timing for the acquisition ofdependent demand items needed to satisfy MPS

Information flow of planning and controlling with MRP

Business Plan

Production Plan

Rough cut Capacity checkTentative MPS

Master Schedule

MRP Program Product Structure fileInventory status file

Purchase Order

CRP

Detailed Production Plans

Production Activity Control

Forecast

Current

conditions

Buy items

Vendor

feed-back

Make items

12. Operation of MRP System

Operation of MRP System

Input Processing Output

Inventory statusfile

MPS File

BOM File

MRP Systems

Exception reports

Planned orderschedule

InventoryTransaction data


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13. Computational procedure of MRP

The MRP Computational Procedure

MPS File

BOM FileMRP ProcessingLogic

Inventory StatusFile

Order release

requirements

( orders to be

released now)

Order rescheduling

( expedite, de-

expedite or cancel

open order)

Planned order

(future)

(a) BOM - A listing of all of the raw materials, parts, subassemblies, and assemblies

needed to produce one unit of a product

(b) Inventory status file It contains important information such as what itemsshould be ordered and when orders should be released

(c) Gross Requirements Project the use of the items

(d) Schedule receipts indicates when the previously released orders if any arescheduled to be received and available for use

(e) On hand inventory It indicate the number of units projected to be available at

the end of each time period.

(f) Net requirement Calculated by subtracting from the gross requirements for thatperiod.

(g) Planned order release - It indicate when orders should be placed ot meet the

requirements for the item.

14. Issues in MRP

a. Lot Sizingb. Safety Stock

c. Scrap allowance

d. Pegginge. Cycle counting

f. Updatingg. Time fence


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15. Lot- Sizing Rules

1. Fixed Order Quantity (FOQ)

A rule that maintain the same order quantity each time an order is issued

Formula:

(Projected On-hand inventory balance at end of week t) =

(Inventory on hand at end of week t-1) + (Scheduled (or) planned receipts in week t)

Gross requirement in week t)

2. Periodic Order Quantity (POQ)-

A rule that allows a different order quantity for each order issued but tends to issue

the order at predetermined time intervals.

Formula:

(POQ lot size to arrive in week t) =

(Total gross requirements for P weeks, including week t ) (Projected on-hand

inventory balance at end of week t-1)

3. Lot for lot (L4L)

A rule under which the lot size ordered covers the gross requirement of a single week.

Formula:

(L4L lot size) =

(Gross requirement in week t) (Projected on-hand inventory balance at the end of

week t-1)

Documents

Operations Management Key