mb0028 set 2

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1 Joshi Tarunkumar Bhupenrakumar : MBA – SEM 2 – MB0028- SET 2

Question 1. Explain how material flow information helps in work

centre decision. Consider the example of a shopping centre to

illustrate your answer.

Answer :

The decision which involves during uses of material flow information has

below-

A work center is a production facility comprising of one or more machinesand one or more workmen considered as a single unit for purposes of

estimation of capacity. This unit may have a single operation or a number

of them conducted on the input items. In the pipeline of production, each

work center’s contribution is vital as materials are scheduled, routed and

loads to be sent to it.

In most organization, they are even considered as cash centers. Location

trust means relative position of different centers so as to minimize the

movement of materials, meet technological sequences, to reduce

congestion, maximize throughput, improve part tracking ability and avoid

repetitive movements. In addition another consideration is to provide for

expansion of production.

Each work center receives information along with material that enter it the

material also leaves the word center with information. The route sheetcontains information about the material, process, quantities, and inspection

procedures. Etc. the drawings or instructions tell the condition of the

malarial of entry and the required condition at exit.

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In this sense every operation consists of material transformation occurring

on the basis of information. Activities conducted are on the basis of

information that flows with material. Different locations have to

accommodate the constraints of the basis of darning maximums benefit of the information that is available. Basically, each location is determined on

the basis of from and to: where does it receive material goes. Some

centers have to close as a matter of necessity, some need not to be and

some need to be as for away as possible.

This aspect has been given a rating scale in terms of alphabets as under:

Absolutely necessary to be close

Essential to be close

Ordinary closeness

Ordinary closeness

Unimportant that they are close or not

Not desirable that the centers are close

It can be seen that this is only a guide for Indian location as the work

centers as there will many competing factors that have to be

accommodated.

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Question 2. What are the reasons for failure of a project? Give

suitable examples.

Answer:

Before knowing the reasons of failure we have to know about project.

Project is a set of activities which are networked in order and aimed

towards achieving goal of a project.

Now, the reasons are project failure:

Incidence of Project failure

Projects being initiated of random at all levels

Project objective not in line with business objective

Project management not observed

Project manager with no prior experience in the related project

Non- dedicated team

Lack of complete support from clients

Factors contributing to project success not emphasized:

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Project objective in alignment with business objective

Working within the framework of project management methodology

Effective scoping planning, estimation, execution, controls and reviews,

project bottlenecks

Communication and managing expectations effectively with clients, team

merits and stake holders

Prior expectance of PM in a similar project

Overview of information and communication Technologies (ICT) project:

Involve information and communication technologies such as the word

wide web, e-mail, fiber-optics satellites

Enable societies to produce, access, adapt and apply information in greateramount, more rapidly and at reduce casts

Offer enormous opportunities for enhancing business and economic

viability

Common problems encountered during projects

No prioritization of project activity from an organizational position

One or more of the stages in the project mishandled

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Less qualified non-dedicated manpower

Absence of smooth flow of communication between the involved parties

These basic reasons lead a project to failures. In the project failures

business management and project management is directly involved. From

the management point of view it is basic things to care above topics to

success of a project. Project is the core business of a company. In the MBA

assignment its role has been defined from the management prospective

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Qustion 3. Explain the various phases in project management

life cycle ?

Answer:

This is the initial phase of any project. In this phase information

is collected from the customer pertaining to the project and the

requirements are analyzed. The entire project has to be planned and

it should be done in a strategic manner. The project manager

conducts the analysis of the problem and submits a detailed report to

the top project justification, details on what the problem is a method

of solving the problem, list of the objectives to be achieved, projectbudget and the success rate of completing the project. The report

must also contain information and the project feasibility, and the risks

involved in the project.

Project management life cycle is the integrated part of management.

It is attach with project responsibility or failure of a project. For the

MBA assignments it is the most valuable chapter in production

management.

The important tasks of this phase are as follows:

Specification Requirements Analysis (SRA): It has to be conducted to

determine the essential requirements of a project in order to achieve

the target.

Feasibility study: To analyze whether the project is technically,

economically and practically feasible to be undertaken.

Trade off analysis: To understand and examine the various

alternatives which could be considered.

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Estimation: To estimate the project cost, effort requires for the

project and functionality of various process in the project.

System design: Choose a general design that can fusil the

requirements.

Project evolution: Evaluate the project in terms of expected profit,

cost and risks involved marketing phase.

A project proposal is prepared by a group of people including the

project manager. This proposal has to contain the strategies adoptedto market the product to the customers.

Design phase: This phase involves the study of inputs and outputs of

the various project stages.

Execution phase: In this phase the project manager and the teams

members work on the project objectives as per the plan. At every

stage during the execution reports are prepared.

Control – Inspecting, Testing and Delivery phase during this phase.

The project team works under the guidance of the project manager.

The project manager has to ensure that the team working under his,

implements the project designs accurately, the project manager has

to ensure ways of managing the customer, perform quality control

work.

Closure and post completion analysis phase upon satisfactory

completion and delivery of the intended product or service the staff

performance has to be evaluated. Document the lessons from the

project. Prepare the reports on project feedback analysis followed by

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the project execution report. The phase which involve in the above

are:

The preparation stage involves the preparation and approval of project outline, project plan and project budget.

The next stage involves selecting and briefing the project team about

the proposals followed by discussions on the roles and responsibility

of the project member and the organization.

The project management life cycle:

A Life cycle of a project consists of the following:

Understanding the scope of the project

Establishing objectives of the project Formulating and planning

various activities Project execution and

Monitor and control the project resources

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Question 4. What are the seven principles of SCM?

Answer :

Seven principles of SCM are:

Group customer by needs- Effective SCM groups, customer by distinct

service needs, regardless of industry and then tailors services to this

particular segment.

Customize the logistic network- In designing their logistics network;companies need to focus on the service requirement and profit of the

customer segments identified.

Listen to signals of market demand and plan accordingly- Sales and

operations planners must monitor the entire supply chain to detect early

warning signals of changing customer demand and needs. This demand

driven approach leads to more consistent forecast and optimal resource

allocation.

Differentiate the product closer to the customer- companies today no

longer can afford to stock pile inventory to compensate for possible

forecasting errors. Instead, they need to postpone product differentiation

in the manufacturing process closer to actual consumer demand. This

strategy allows the supply chain to respond quickly and cost effectively to

change in customer needs.

Strategically manage the sources of supply- by working closely with their

key suppliers to reduce the overall costs of owning materials and services;

SCM maximizes profit margins both for themselves and their suppliers.

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Develop a supply chain wide technology strategy- as one of the

cornerstones of successful SCM information technology must be able to

support multiple levels of decision making. It also should afford a clear

view and ability to measure the flow of products, services and information.

Adopt channel spanning chain performance measures- Excellent supply

chain performance measurement system do more than just monitor

internal functions. They apply performance criteria to every link in the

supply chain-criteria that embrace both service and financial metrics

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Question 5. Explain what is meant by bullwhip effect and how it

could be prevented?

Answer:

An organization will always have ups and downs. It is necessary that the

managers of the organization keep track of the market conditions and

analyze the changes. They must take decisions on the organization to meet

the market demands. Failing to do so may adversely affect the functioning

of the organization resulting in lack of coordination and trust among supply

chain members. The changes may effect the information and may lead to

demand amplification in the supply chain. The bullwhip effect is the

uncertainty caused from distorted information flowing up and down the

supply chain. This has its affect on almost all the industries, poses a risk to

firms that experience large variations in demand. And also these firms

which are dependent on suppliers, distributors and retailers.

A bullwhip effect may arises because of-

Increase in the lead time of the project due to increase in variability of

demand

Increase in the stock to stock to accommodate the increasing demand

arising out of complicated demands models and forecasting techniques

Reduced service levels in the organization

Inefficient allocation of resources

Increased transportation cast

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How to prevent it?

Bullwhip effect may be avoided by one or more of the following measures-

Avoid multiple demand forecasting

Breading the single orders into number of batches of orders

Stabilize the prices avoid the risk involved in overstocking by maintaining a

proper stock

Reduce the variability and uncertainty in paint of sale (POS) and shavinginformation

Reduce the lead time in the stages of the project

Always keep analyzing the past figures and track current and future levels

of requirements

Enhance the operational efficient and outsourcing logistics to capable and

efficient agency

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Question 6. What do you understand by Line Balancing? What is

the importance of order picking in material handling? Give

suitable examples.

Answer:

Production lines have a number of work centers in a particular

sequence so that the material that gets proceed has to move further

without encountering any bottlenecks. The quantities produced the rate of

production at each center, the number of operations and the total

production required are factors taken into account.

The purpose of taking place between work centers and minimum inventory

gets created. We use the principles of JIT and lean Manufacturing to

achieve these. Linear programming, Dynamic programming and other

mathematical models are used to study these problems.

In order picking important pants are:

Order picking is a process by which items of products for supply is to bemade haves to be retrieved from specific storage location. It is found to

take 60% of labour activities in the warehouse. Since it is critical to the

business to meet customer’s demand expeditiously and accurately, lot of

attention is being given to this aspect of operations. In the manufacturing

arena, we desire to move towards small lot sizes and cycle time reductions.

Efficient order picking is necessary for being competitive. In the supply

chain Storage, retrieval and delivery do not add value to the product, but

are necessary.

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Material Handling:

The purpose is to take the job through the technological steps in which the

processing needs to be done for the transformation that is to be effectedon the material that is getting processed. The major concerns are about

the quantities that need to be processed and the time that the different

operations required. In case the product has to enter assembly, along with

other parts that are being manufactured parallel, will all the required parts

arrive at that point at the same time. Some components may be

outsourced. To handle different parts, we have material handling

equipments such as cranes lifting forks, trucks etc.

The problem for the manager is the limited supply of these equipments and

the need to optimize utilization of the equipment and see that the

manufacturing line has smooth flow. Our concern is to reduced inventory,

minimums movement and timely availability.

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