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Production Management: Question Bank
1. Explain production system model as on today & from organization point
of view?
Answer:
Production System Today :
Machine
MenControl
Raw Material
Labor
Availability
MachineAvailability
Money
EconomicClimate
Social
Channel
Capital
INPUT OUT PUT
Product / Service
Trade Union
Material supply
Bank
Competition
Customer
Demand
Government
Production System
Plan
Policy
Mission
Production System in Organization :
Mission is what co. want to
achieve Or Purpose of companies
existence
Amul Taste of India
Glaxo Better India Healthier India
L&T - We will do the things India
will proud of
Vision : Companies
achievement in near future
Mahindra Tractors : We
will be largest tractormanufacturer in the
world by 2009
Plan of Glaxo :
We will be life saving
drug import substitute
Production System : Is a vehicle through which organization achieves its vision /Mission written by the company
As effectiveness of production system can affect vision & mission statement of Co.
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2. Discuss interaction of production with other functions of organization?
Answer:
Interaction with other functions :
PRODUCTION
Marketing
Finance
Accounting
Industrial Engg.
Procurement
PersonnelResearch & Development
Marketing :1. Customer Quality requirement
2. New product & processes3. Customer feedback on products & services
Finance :
1. Budgetary information
2. The analysis of investment3. Provision of money for improvement
4. Provision of information on general condition of firm
Accounts :1. Data including cost of material ,direct labor & Over head items
2. Release of special reports on operation of the production system
,includes scrap, rework ,overtime etc.
3. Providing data to data processing services
Procurement :
1. The determination of items to be purchased
2. The determination of delivery schedule3. The discovery of new product / process / material4. Inventory control
Personal :
1. Retirement of people2. Training of people
3. Labor relations
4. Safety
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R&D : Of New ideas ,products ,processes etc.
Industrial Engineering :1. Method analysis information
2. Work measurement information
3. Plant layout & Material handling information
4. Plant maintenance information
3. Explain Continuous & Intermittent production system?Answer: From Text Book Page No.:226-227
4. What is plant layout & factors to be considered in development of plant
layout?
Answer: Layout is a Fundamental of every organization and enterprise Kitchen, Retailers, offices, service organization and all the enterprises
have a specific layout A Simple situation with few items to arrange have many alternatives
Previously Layouts were based on intuition, experience and judgment
With the complexities and competition now scientific methods are
used
The Layout comes in picture after the location has been finalized
Development of good layout depends on decisions already taken on
location, capacity, facility, manufacturing method and material
handling techniques
Efficiency and performance of machines and production is the focus
area for this
Plant layout begins with plant location and continues through 3 further
levels,1. Layout of department within site
2. Layout of items within the department3. Layout of individual work places
Factors Influencing Layouts
1. Factory Building : The nature & size of building determines the floor
space available for layout . While designing the special requirements i.e.Air conditioning, dust control , Humidity control ,Noise proofing etc must
be kept in mind
2. Nature of product : Product layout is suitable for uniform products
Process layout is suitable for custom made products
3. Production process : In assembly line industries product layout is better
In job order or intermittent manufacturing process layout is desirable
4. Types of machinery : General purpose machines are arranged as per
process layout, Special purpose machines are arranged as per product layout
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5. Repairs & Maintenance : Machines / Equipments must be arranged
keeping in mind the movement of operators & maintenance tools
6. Human Needs: Adequate arrangement should be made for Wash rooms,
drinking water / Canteen & other employee facilities
7. Plant Environment: Heat / Noise / Light / Ventilation & other aspectsshould be duly considered e.g. Pint shop / Fabrication / Plating section should
be located separately to protect employees from harmful fumes etc. Adequatesafety arrangement should be made
To conclude
The plant layout should be conducive to health & safety of employees It should ensure free & efficient flow of employees & materials
Future expansion & diversification may also be considered while
planning factory layout
5. Explain objective of plat layout & compare good & poor layout?
Answer:
Objectives of Plant Layout Economies of materials, facilitation of manufacturing and handling of goods
Proper and efficient use of floor space
Ensure proper flow of goods and processes without any delay Provision for supervision and control
Careful planning to avoid changes and re-layout of a plant Provision of safety to workers
Meet quality and capacity requirement in the most economical manner Provision of adequate medical facilities and refreshment facilities
Have enough of material handling spaces
Features Of A Good Layout Sufficient space for worker and machine to perform their tasks
Must have adequate safety and security to workers against accidents. For eg.
Provision of first aid box, fire ex.,etc
Sufficient gang-way space for raw materials, workers and semi finished goods
Arrangement of machines and equipment in such a way that it minimizes
material handling and costs
Stores for in-process material should be near to processing machines
Supervision, co-ordination and control should be easily and effectively carried
Scope for further adjustments and extensions should be sufficient enough
Symptoms of Poor Layout
A good layout results in Comfort,
Convenience, Safety,
Efficiency, Compactness And
Finally In Profits To The Organization
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A poor layout results in
Congestion,
Wastes,
Frustration,
Inefficiency And
Finally A Lower Profit Or A Loss To An Organization
6. What is material handling? Explain any 10 principles of material
handling?Answer: Materials handling
The loading, moving, and unloading of materials
The hundreds of different ways of handling materials are generally
classified according to the type of equipment used.For example, the International Materials Management Society has classified
equipment as(1) Conveyor
(2) Cranes, elevators, and hoists(3) Positioning, weighing, and control equipment
(4) Industrial vehicles(5) Motor vehicles
(6) Railroad car
(7) Marine carriers
(8) Aircraft
(9) Containers and supports
Principles of Material Handling
1. Orientation Principle
Study the system relationships thoroughly prior to preliminary planning in order toidentify existing methods and problems, physical and economic constraints, and to
establish future requirements and goals2. Planning Principle
Establish a plan to include basic requirements, desirable options, and theconsideration of contingencies for all material handling and storage activities
3. Systems Principle
Integrate those handling and storage activities which are economically viable into acoordinated system of operation including receiving, inspection, storage, production,
assembly, packaging, warehousing, shipping and transportation
4. Unit Load PrincipleHandle product in as large a unit load as practical
5. Space Utilization Principle
Make effective utilization of all cubic space
6. Standardization PrincipleStandardize handling methods and equipment wherever possible ( pallet truck)
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7. Ergonomic PrincipleRecognize human capabilities and limitations by designing material handling
equipment and procedures for effective interaction with the people using the system
(Diesel Forklift drivers)
8. Energy Principle
Include energy consumption of the material handling systems and material handlingprocedures when making comparisons or preparing economic justifications ( Ex :
Diesel fork lift Vs Electrical)
9. Ecology PrincipleMinimize adverse effects on the environment when selecting material handling
equipment and procedures
10. Mechanization PrincipleMechanize the handling process where feasible to increase efficiency and economy in
the handling of materials.
11. Flexibility PrincipleUse methods and equipment which can perform a variety of tasks under a variety of
operating conditions
12. Simplification PrincipleSimplify handling by eliminating, reducing, or combining unnecessary movements
and/or equipment
7. Explain need & nature of location decisions? Discuss various Factorsinfluencing location decisions?
Answer:
Need for Location Decisions
Marketing Strategy
Cost of Doing Business
Growth
Depletion of Resources
Nature of Location Decisions
Strategic Importance Long term commitment / costs
Impact on investments, revenues, and operations
Supply chains
Objectives Profit potential
No single location may be better than others Identify several locations from which to choose
Options Expand existing facilities
Add new facilities Move
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Decide on the criteria
Identify the important factors
Develop location alternatives
Evaluate the alternatives
Make selection
Factors Influencing Location Decisions
Customer response time and local presence Operating costs
Technological, Availability and economies of scale (fixed operational costs):
Semiconductor manufacturing takes place only in 5-6 countriesworldwide
Infrastructure, electricity, phone lines, suppliers
Macroeconomic: Tariffs, exchange rate volatility, economic volatility
Economic communities: NAFTA (North American Free Trade
Agreement), EU (European Union), PACIFIC RIM (The Pacific Rim refers
to the countries and cities located around the edge of the Pacific Ocean),EFTA (European free trade association)
Political stability
Logistics and facility costs
Competition Positive externalities : Nissan in India develops car suppliers which can also
supply Suzuki in India
Toyota City
Shopping Malls
Negative externalities,
Pollution (Ex: factories burn fuel for production. Production will result inprofit but gases produced are harmful to the environment, people etc.)
Location Decision Factors
Regional Factors
Site-related FactorsMultiple PlantStrategies
Community Considerations
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Regional Factors
Location of raw materials
Location of markets
Labor factors
Climate and taxes
Community Considerations
Quality of life
Services Attitudes
Taxes Environmental regulations
Utilities
Developer support
Site Related Factors
Land
Transportation
Environmental
Legal
Multiple Plant Strategies
Product plant strategy Market area plant strategy
Process plant strategy
8. Explain factors to be considered while selecting location for servicefunction & manufacturing function?
Answer:Comparison of Service and Manufacturing Considerations
Manufacturing / Distribution Service / Retail
Cost Focus Revenue focus
Transportation modes / costs Demographics : age,income,etc
Energy availability, costs Population / area
Labor cost / availability / skills Competition
Building / leasing costs Traffic volume / patterns
Customer access/parking
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9. Selection of location by using ROI Method? ( Numerical Example from
class PPT)
Answer: Transportation Model : Decision based on movement costs of raw materials
or finished goods
Factor Rating: Decision based on quantitative and qualitative inputs
Center of Gravity Method: Decision based on minimum distribution costsFactor affecting location,
Physical Factors Qualitative : Measurement in terms of criteria like Adequate /
Good / Significant etc Quantitative: Measurement in terms of some cost Labor /
Material / Housing / Land / Transport
Evaluating Locations (Ex)
A manufacturing co. is in situation to decide a suitable location for new plant. Three
probable locations are short listed namely X102 , Y102 , Z102, Relevant data is as
mentioned in the table given below. Use ROI method to Finalize the location
Proposed Locations
Sr.No Data X 102 Y 102 Z 103
1 Salaries & Wages 25000 25000 25000
2 Water & Power Expenses 25000 35000 30000
3
Raw material & otherexpenses 85000 80000 65000
4 Total Initial Investment 200000 300000 250000
5 Distribution Expenses 55000 45000 65000
6 Miscellaneous Expenses 45000 25000 35000
7
Expected Sales(Rs)per
anum 225000 250000 225000
Solution:
Proposed Locations
Data X 102 Y 102 Z 103
Sales Revenue 225000 250000 225000
Total Expenses 235000 210000 220000
Profit -10000 40000 5000Initial Investment 200000 300000 250000
% Return on investment
(ROI)
ROI = Profit / InitialInvestment -5 13 2
Conclusion: Based on ROI criteria location Y 102 is the best.
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10. What is inventory management? Discuss types of inventories?
Answer:
Inventory Definition: It consist of material Raw / in process / Finished goods,
Goods purchased for resale Also tangible assets which can be seen, measured &
counted
Types of Inventory Management Systems:
Production Inventories ---Raw material / parts & components whichenters the company product in production process
1. Special items as per company specifications2. Off The Shelf industrial items
MRO Inventories --- Maintenance Repair & Operating Supplies whichget Consumed during production
In- process inventories ---- Semi finished products
Finished goods inventories --- Complete products ready for shipment
11. What is inventory control? Explain any two selective inventory control
methods?
Answer: Text Book No. 285 and 290
12. What is MRP in production management? Explain in detail.
Answer: Text Book No. 282 and 283
13. Discuss important types of plant maintenance & scope of maintenancefunction?
Answer: Function Of The Manufacturing Management Concerned With The Day- To-
Day Problem Of Keeping The Physical Plant In Good Health An Essential Activity In Every Manufacturing Establishment
Needed To Ensure Availability Of The Machines, Buildings &
Services
Needed By Other Parts Of The Organization For The Performance Of
their Functions At An Optimum Return On The Investment, Whether
This Is In Machines, Materials Or Employees
Types Of Maintenance Break Down Or Corrective
Preventive
Predictive
Routine
PlannedBREAK DOWN MAINTENANCE
Maintenance Done After A Breakdown Occurs A Passive Role Aimed At
Getting The Equipment Back Into Operation As Soon AsPossible
Control Cost Of Repairs Control Cost In Replacement Of Spare Machines
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PREVENTIVE MAINTENANCE Undertaken Before The Need Arises & Aims To Minimize The
Un-anticipated Or Major Break Downs
Proper Identification Of Equipment
Adequate Record Of Work, Costs Etc
Inspection Schedule
Inspection Check Lists Well Qualified Inspectors
Use Of Repair Budgets For Major Equipment Administration Procedures For Follow Up Program
PREDICTIVE MAINTENANCE
Maintenance Based On The Condition Of Equipment Sensitive Instruments Used For Predicting Trouble
Extension Of Service Life Without Fear Of Failure
ROUTINE MAINTENANCE Periodic Inspection, Cleaning , Lubrication & Repair Of
Production Equipment Can Be On-line Or Off-line
PLANNED MAINTENANCE INSPECTION OF ALL PLANT & MACHINERY ACCORDING
TO PRE-DETERMINED SCHEDULE
TO SERVICE , OVERHAUL, LUBRICATE OR REPAIR
BEFORE ACTUAL BREAKDOWN OR
DETERIORATION OCCURS AIMS TO REDUCE MACHINE STOPPAGE DUE TO
SUDDEN BREAK DOWN REDUCES MACHINE BREAK DOWN TIME , COST OF
MAINTENANCE AND INCREASES PRODUCTIVITY
SCOPE
Primary Function Maintenance Of Existing Plant & Machinery, Buildings &
Ground
Equipment Inspection & Lubrication
Utilities Generation & Distribution
Alteration To Existing Equipment & Buildings
New Installation Of Equipment And Building
Secondary Function Store Keeping- Stock Of Spare Parts
Plant Protection Including Fire Safety Waste Disposal
Salvage
Insurance Administration
Pollution & Noise Control
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14. What is TPM & explain specific actions of TPM?
Answer:
TOTAL PRODUCTIVE MAINTENANCE (TPM) Originally Developed In Japan
An Approach Bringing Total Quality Management Concepts To The
Practice Of Preventive Maintenance
Involves The Concept Of Reducing Variability Through EmployeeInvolvement And Excellent Maintenance Records
Method Designed To Eliminate The Loses
Caused By Break-down Of Machines And Equipments By Identifying And Attacking All Causes Of Equipment
Break-downs And System Down Time
SPECIFIC ACTIONS OF TPM Restoring Equipment To A Like-new Condition
Having Operators Involved In The Maintenance
Improving Maintenance Efficiency And Effectiveness
Training The Labor Force To Improve Their Job Skills Minimize Maintenance Efforts
Effective Use Of Preventive And Predictive Maintenance
Technology
MAINTENANCE
MODIFICATION
RETROFIT
REDSIGN
CHANGE ORDER
CONDITION,
SELF
SCHEDULED,
MACHINE
CONTROL
LIMITS
CONDITION,
MONITOR,
STATISTICAL,
PREDICTIVE,
TREND,
ANALYSIS
SCHEDULED,
PERIODIC,
FIXED
INTERVAL,
SPECIFIC
TIME
UNSCHEDULED,
BREAKDOWN,
EMERGENCY,
REPAIR,
REMEDIAL
IMPROVEMENT
MAINTENANCEPREVENTIVE
MAINTENANCE
CORRECTIVE
MAINTENANCE
STRUCTURE OF
TOTAL Productive MAINTENANCE (TPM)
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15. What are the types of production variation? Explain different sources of
variation?
Answer: Types of production Part / Piece Variation
Within Piece Variation
Piece to Piece Variation
Time to time Variation
Sources of Variation ---1st--Equipment
Sources of Variation----2nd---- Material
Sources of Variation----3rd-----Environment
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Sources of Variation----4th------ Operator
Sources of Variation- continue
16. What is principle of control chart? Explain use of control chart?
Answer:
Control Charts
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Control Chart METHOD
Short Notes:
17 .Network analysis
18. Break even analysis19. Fault Tree analysis
20. Reliability
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21. JIT
Answer: 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 This means that the process is often driven by a series of signals, which
can be Kanban), that tell production processes when to make the next part.Kanban are usually 'tickets' but can be simple visual signals, such as the
presence or absence of a part on a shelf When implemented correctly, JIT can lead to dramatic improvements in a
manufacturing organization's return on investment, quality, and efficiency. Quick communication of the consumption of old stock which triggers new
stock to be ordered is key to JIT and inventory reduction.
This saves warehouse space and costs
However since stock levels are determined by historical demand, any
sudden demand rises above the historical average demand, the firm will
deplete inventory faster than usual and cause customer service issues In recent years manufacturers have touted a trailing 13 week average as a
better predictor for JIT planning than most forecasters could provide
Transaction cost approach JIT reduces inventory in a firm. However, unless it is used throughout the
supply chain, it can be hypothesized that firms are simply outsourcing their
input inventory to suppliers
This effect was investigated by Newman (1993), who found, on average,suppliers in Japan charged JIT customers a 5% price premium
Environmental concerns
During the birth of JIT, multiple daily deliveries were often made by bicycle with increases in scale has come the adoption of vans and lorries
(trucks) for these deliveries
Three JIT wastes: Time: wasted in traffic jams
Inventory: specifically pipeline (in transport) inventory and
Scrap: with respect to petrol or diesel burned while not physically moving
Benefits1. Set up times are significantly reduced in the factory: This allows the reduction
or elimination of the inventory held to cover the "changeover" time, the toolused here is SMED (Single Minute Exchange of Die). The phrase "single
minute" does not mean that all changeovers and startups should take only one
minute, but that they should take less than 10 minutes
2. The flows of goods from warehouse to shelves are improved.
3. Better consistency of scheduling and consistency of employee work hours4. Increased emphasis on supplier relationships
5. Supplies continue around the clock keeping workers productive and businessesfocused on turnover
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22. Robotics:Answer: ROBOTS are Human like machines that perform production tasks
1. Robots can be programmed to perform a set of moves
2. Program storage & control is in micro computer with set of
predetermined operation
3. Robots replace human beings for Dangerous / hazardous (lifting
hot components, continuous welding etc ),Heavy , Dirty,Unpleasant or monotonous tasks
Robotics: It is the science of selecting robots for various applications &knowing when not uses them is ROBOTICS
Advantages:
1. Consistency in performance2. No mental or Physical fatigue
3. Production of better quality products
Disadvantages:
1. High initial investment
2. No value addition due to experience
3. High maintenance cost
23. Computer integrated manufacturing
Answer:
Future of Manufacturing Stress on high product6 quality
Flexible manufacturing system Fast execution & customer order delivery
CAD / CAM will be basis for product design & production planning
Digital computer will be driving force (known as CIMComputer IntegratedManufacturing). Digital computer will provide shared data base for four primary
manufacturing functions
1. Engineering design
2. Manufacturing Engineering
3. Factory production
4. Information management
The database stores all products & process related information required to produce
a component or a product
It also contains information about machines, tools, materials, manufacturing steps,
quantity required & vendor /supplier database