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BA 9221 Operation Management

Two Mark Question Bank

1. What is the importance of Operations Management in any business organisation?Reduce costsIncrease revenueReduce the amount of investmentProvide the basis for future innovationMore profitability

2. What major functions of any organisations are directly involved under OperationsManagement?

3 core functions:

Marketing function (communicating) Product/service development function (creating) Operations function (fulfilling)Support functions: The accounting and finance function The human resources function

3. What do you understand by Strategy?future, strategy is more about a set of options ("strategic choices") than a fixed plan A

strategy is a plan of action designed to achieve a vision. Strategy is all about gaining (or being

prepared to gain)a position of advantage over adversaries or best exploiting emerging

possibilities. As there is always an element of uncertainty about.

4. What are major sources of Competitive Advantage, an organisation may look at?Cost advantage

Differentiation advantage.

5. List any three models of potential Competitive Advantages?Cost advantagethe firm is able to deliver the same benefits as compared to the

competitors but at lower cost.

Differentiation advantagedeliver benefits that exceeds the competitors product.

6. Define Product.In general, the product is defined as a "thing produced by labor or effort" or the

"result of an act or a process", PRODUCT' can be classified as tangible orintangible.

A tangible product is a physical object that can be perceived by touch such as a

house, automobile, computer, pencil. An intangible product is a product that can only

be perceived indirectly such as an insurance policy.

7. Suggest two Critical Contributing Organisation Functions responsible for the Success of aNew Product

In business and engineering,new product development (NPD) is the term used to

describe the complete process of bringing a new product to market. A product is a set

of benefits offered for exchange and can be tangible (that is, something physical you

can touch) or intangible (like a service, experience, or belief). There are two parallel

paths involved in the NPD process: one involves the idea generation, product design

and detail engineering; the other involves market research and marketing analysis.

Companies typically see new product development as the first stage in generating and

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commercializing new products within the overall strategic process ofproduct life

cycle management used to maintain or grow their market share.

8. List three critical factors for success of New Product in the Market.There are several critical factors to consider when marketing a new product, including

the competition, the ideal customer, the unique selling proposition (USP), testing,

media campaigns and understanding the life cycle of the product. By understanding

these factors, you can create a marketing plan that helps your company achieve

success when introducing a new product. Without addressing these items, it may

doom your new product launch before it has a chance.

9. List two items of importance for Product Design.Most product designs fall under one of two categories: demand-pull innovation or

invention-push innovation. Demand-pull happens when there is an opportunity in the

market to be explored by the design of a product. This product design attempts to

solve a design problem. The design solution may be the development of a new

product or developing a product that's already on the market, such as developing anexisting invention for another purpose. Invention-push innovation happens when

there is an advancement in intelligence. This can occur through research or it can

occur when the product designer comes up with a new product design idea.

10.What are the key Characteristics of Product Design?A Key Characteristic (KC) is a feature of a material, process, or part (includes

assemblies) whose variation within the specified tolerance has a significant influence on

product fit, performance, service life, or manufacturability.

11.List major stages in Product Design processThe stages of design:

Concept generation: A stage in the product and service design process that formalizesthe underlying idea behind a product or service.

Screening Evaluation and improvement Prototyping and final design

12.What do you understand as Breakeven Volume for any product/service.Number ofunits sold at which sales revenue equals total costs.

13. Illustrate common trends in Product Life Cycle.Introduction, growth, maturity, decline

14.What are the types of production system?- Job shop production system- Batch production system- Continuous production system- Mass production system

15.Define Capacity - Differentiate between Design and Effective CapacityDesign capacity is what the engineers have designed a plant to operate at. Effective capacity

is what the plant actually runs at.

16.What are the Goals we focus while undertaking facility planning?

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OBJECTIVE OF GOOD FACILITY LAYOUT

The objectives of good facility layout are as follows:

[A] Objectives related to material

(i) Less material handling and minimum transportation cost

(ii) Less waiting time for in-process inventory .

(iii) Fast travel of material inside the factory without congestion or bottleneck.

[B] Objectives related to workplace

(i) Suitable design of work-stations and their proper placement

(ii) Maintaining the sequence of operations of parts by adjacently locating the succeedingfacilities

(iii) Safe working conditions from the point of ventilation, lighting, etc.

(iv) Minimum movement of workers

(v) Least chances of accidents, fire, etc.

(vi) Proper space for machines, worker, tools, etc.

(vii) Utilization of vertical height available in the plant.

[C] Performance related objectives

(i) Simpler plant maintenance

(ii) Increased productivity, better product quality, and reduced cost

(iii) Least set-up cost and minimal chan and minimal change-over

(iv) Exploitation of buffer capacity, common workers for different machines, etc.

[D] Objective related to flexibility

(i) Scope for future expansion

(ii) Considerations for varied product mix

17.List down steps in the process of selection of site/facility using Factor Rating Method List relevant factors Assign importance weight to each factor (0 - 1)

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Develop scale for each factor (1 - 100) Score each location using factor scale Multiply scores by weights for each factor & total

Select location with maximum total score18.Steps in selection of facility location using Cost-Profit-Volume process.19.Define Plant Layout

Plant layout refers to the arrangement of physical facilities such as machines,

equipment, tools, furniture etc. in such a manner so as to have quickest flow of

material at the lowest cost and with the least amount of handling in processing the

product from the receipt of raw material to the delivery of the final product.

20.Purpose of Plant layoutProviding enough production capacity by better implementation of:

a) machinaries through suitable locating of them regarding the nature of job

b) labour force by reduction of movement , easing job and better psycological condition(increased safity and better working environment )

c) material by reduction of wastage throug smooth handling

d) land by maximum usage of space

21.List types of Plant Layouts, with one example for each(1) Process layout (2) Product layout (3) Combined layout (4) Static product layout or Project

layout (5) Cellular layout (6) Job Shop layout.

22.Why do we explore Combine Layout for some requirements?A combination of process & product layout is known as combined layout.

Manufacturing concerns where several products are produced in repeated numbers with no

likelihood of continuous production, combined layout is followed

23.List 4 symptoms of Bad Layout Long material and zigzag flow lines and backtracking. Poor utilisation of space Congestion of material movements Excessive handling of materials Large amount of work in process Long production cycles More frequent accidents Difficult to supervise and control

24.Define role of Production Planning and Control in a manufacturing set up1. To determine capacity of all manufacturing departments and to plan systematically

coordinated and related production activities within the scope of the enterprise tomeet sales requirements.

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2. To translate orders received from sales department into orders on the worksdepartment and to ensure steady plans of production activities.

3. To find ways and means through which product manufacturing requirements such asmaterials and their necessary constituents such may be available in right quality and

quantity at the right time.

4. To coordinate a number of different department groups so that a fine balance ofactivities may be maintained.

5. To promote fuller utilization of plants.6. To assist labour towards right and greater earnings7. To train staff in the effective performance of their duties.

25.What is Aggregate planning?Aggregate planning is an operational activity that does an aggregate plan for the

productionprocess, in advance of 2 to 18 months, to give an idea to management as

to what quantity of materials and otherresources are to be procured and when, so that

the total cost of operations of the organization is kept to the minimum over that

period..26.What are three Horizons of Planning?

Extend and defend core businesses Build emerging businesses Create viable options

27.What are major inputs for Long Range Planning?28. In a systematic Aggregate planning process, what are 4 possible potential responses to

catering to fluctuating demand?

29.List major functions of Production planning and control.Materials : This function is concerned with ensuring that the Raw material, standard

finished parts, finished parts of products must be available while starting theoperation within the time.

Methods : This function is concerned with the analysis of all methods of

manufacturing and selecting the best appropriate method according to the given set of

circumstances and facilities.

Machines and Equipments: It is important that methods of manufacturing should to

be related to the available production facilities coupled with a detail study of

equipment replacement policy. This function is concerned with the detailed analysis

of the production facilities, maintenance procedures and equipment policy.

Routing: It refers to the flow of sequence of operation and processes to be followed in

producing a particular finish product. It determines manufacturing operation and their

sequence.

Estimating: This function is concerned with estimation of operations time. The

operation time can be worked Out once the overall method and sequence of operation

is fixed and process sheet for each operation is available.

Loading & Scheduling: It is important that machine should be loaded according to

their capabilities performance the given and according to the capacity. It is concerned

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with preparation of machine loads and fixation of starting and completion dates for a

particular operation.

Dispatching: It means the assignment of work to different machines or work places

which involve authorities to start of production activities in order of their priority as

determined by scheduling.

Expediting: It is also called Follow Up or Progress. Follow up which regulates the

progress of materials and parts through the production process. It is closely

interrelated with activities of dispatching.

Inspection : It is an important control tool. Its assessment is important in the

execution of current program and planning stage of undertaking when the limitations

of the processor, method and manpower are known. It forms a basis for future

investigations with respect to method, process etc. which is useful for evaluation

phase.

Evaluating : This is the integral part of control function. The evaluating function is

concerned with providing a feedback mechanism on the long term basis so that the

past experience can be evaluated with the aim of improving utilization of method and

facilities.

30.What is the role of Evaluating Function in Production Planning and Control?Evaluating : This is the integral part of control function. The evaluating function is

concerned with providing a feedback mechanism on the long term basis so that the past

experience can be evaluated with the aim of improving utilization of method and facilities.

31.Why do you think JIT is important for an organisation?

JIT manufacturing is a philosophy by which an organization seeks continually to

improve its products and processes by eliminating waste (Ptak, 1997). It is a systems

approach to reduce stock and eliminate waste, thus to produces only necessary items

in necessary quantities at necessary times. It has been widely implemented in

manufacturing industries as a survival strategy against global market competition.

32.Prerequisites for success of JIT.The corporate commitment to developing the internal structures and the customer and

supplier bases to support JIT manufacturing is the primary requirement for developing aviable JIT system. To be able to establish a JIT manufacturing system, every departmentshould have some commitment to align with a common goal. This goal must also be

supported by the company's top management in order to have resources and time allocated todeveloping the necessary systems and procedures.

A significant financial commitment is necessary during the early stages ofdevelopment and implementation to change over to a JIT system. This system, however,needs to be methodically developed on a scale that is within the employer's means from botha financial and an applications standpoint. Ultimately, the operation of a JIT system willrequire the unwavering support and commitment of the entire company.

Management needs to come with grips during the early transition phase ofimplementing JIT. The prospect must be faced of some production loss and changes tomanagement procedures and operation policies while existing operations and manufacturingproblems are being concurrently resolved. Just-in-Time will require every department in acompany to contribute to the overall success of the system and patience is required as results

are not instantaneous. In the long term, the rewards are worth the initial setbacks.

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33.Define Schedulingentering/drawing up a timetable for the completion of various stages of a complex project; thecoordination of multiple related actions/tasks into a single time sequence; a list of items to

schedule (courses, events, meetings); a list of items that cannot be scheduled but may relate to

calendaring (memos, address books, phone logs).

34.List objectives of Scheduling Fairness to all processes Be predictable Minimise overhead Balance available resources Enforcement of priorities Achieve balance between response and utilisation Maximise throughput Avoid indefinite postponement and starvation Favour processes exhibiting desirable behaviour Degrade gracefully under heavy load

35.List 2 possible forms of Scheduling in a Manufacturing plant with brief description of one ofthese

Cyclical scheduling

Multiple resource scheduling.

36.List two major and common problems in Scheduling. One of the main causes for problems with schedules is having the wrong

person doing the job.

Another cause of problems is not having correct policies37.List two applications of PERT/CPM as Scheduling Techniques

Use of CPMconstruction projectsinstalling and debugging a computer systema turn around in an oil refinery other maintenance projectsplanning and launching a new product

Use of PERTscheduling ship construction and repairsmanufacture and assembly of large or job-lot operationsmissile countdown procedures

end-of-the month closing of accounting recordsresearch and development projects

38.Define Critical path in PERT/CPMLongest sequence ofactivities in a project plan which must be completed on time for the

project to complete on due date. An activity on the critical path cannot be started until its

predecessor activity is complete; if it is delayed for a day, the entire project will be delayed

for a day unless the activity following the delayed activity is completed a day earlier.

39.List basic concept and coverage under MRPEnsure materials are available forproduction and products are available fordelivery to

customers.Maintain the lowest possible material and product levels in store Planmanufacturing activities, delivery schedules and purchasing activities.

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40.How ERP is different compared to MRP?Industries

MRP is usually a part, or a subset, of ERP, depending on the industry. MRP typically isused in manufacturing companies. ERP can apply to any company.

Business Processes

ERP and manufacturing resource planning can apply to all business processes in acompany, including manufacturing, planning, finance, order management,inventory, distribution and purchasing. Material requirements planning usuallyrefers to the material planning processes in a manufacturing company.

Technology

ERP can include supporting technology such as networks, databases and hardware; it isoften viewed as a backbone system that supports other systems or technology. Materialrequirements planning, usually refers to business process-enabling software.

Project Scope

Implementations involving ERP are broader in scope and impact on processes andpeople than MRP. Material requirements planning is often referred to as a modulewithin either manufacturing resource planning or ERP.

41.List 3 significant benefits for organisation implementing ERPTangible benefits:

Improves the productivity of process and personnel Lowering the cost of products and services purchased Paper and postage cost reductions Inventory reduction Lead time reduction Reduced stock obsolescence Faster product / service look-up and ordering saving time and money Automated ordering and payment, lowering payment processing and paper costs

Intangible benefits:

Increases organizational transparency and responsibility Accurate and faster access to data for timely decisions Can reach more vendors, producing more competitive bids ; Improved customer response Saves enormous time and effort in data entry ; More controls thereby lowering the risk of mis-utilization of resources Facilitates strategic planning Uniform reporting according to global standards

42.What major 3 issues are generally faced by organisations implementing ERP Customization is problematic.

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Reengineering business processes to fit the ERP system may damagecompetitiveness and/or divert focus from other critical activities

ERP can cost more than less integrated and/or less comprehensive solutions. High switching costs associated with ERP can increase the ERP vendor's negotiating

power which can result in higher support, maintenance, and upgrade expenses.

Overcoming resistance to sharing sensitive information between departments candivert management attention.

Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations. Due to ERP's architecture (OLTP, On-Line Transaction Processing) ERP systems are

not well suited for production planning and supply chain management (SCM)

43.What is bill of materials?A bill of materials (sometimes bill of material orBOM) is a list of the raw

materials, sub-assemblies, intermediate assemblies, sub-components, components,

parts and the quantities of each needed to manufacture an end product. No physical

dimension is described in a BOM44.List major functions of Works Study.

To analyse the present metod of doing a job. To measure the work content of the job Increase the productivity by ensuring the best possible use of human, machine and

material sources

45.Why do we need to undertake Method Study?It may be noted that method-study covers three broad areas:

1. It is a diagnostic tool (location of faults)

2. It is a remedial tool (improvement of situation)It is a constructive tool (sets standard for control)

46.Significance of carrying out Time and Motion Study in a manufacturing plant.Method for establishing employee productivity standards in which (1) a

complex task is broken into small, simple steps, (2) the sequence of movements

taken by the employee in performing those steps is carefully observed to detect and

eliminate redundant or wasteful motion, and (3) precise time taken for each correct

movement is measured. From these measurements production and delivery times and

prices can be computed and incentive schemes can be devised.

47.List the Steps followed for conducting Time and Motion Study Establish the standard job Breakdown the job in to elements Study the job Rate the workers performance Compute the average time Compute the normal time

Compute the standard time

Motion study

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Method for establishing employee productivity standards in which (1) a

complex task is broken into small, simple steps, (2) the sequence of

movements taken by the employee in performing those steps is carefully

observed to detect and eliminate redundant or wasteful motion, and (3)

precise time taken for each correct movement is measured. From these

measurements production and delivery times and prices can be computed and

incentive schemes can be devised.

48.Need to compute Standard Time for activities/Tasks Staffing (or workforce planning): the number of workers required cannot accurately

be determined unless the time required to process the existing work is known.

Line balancing (or production leveling): the correct number of workstations foroptimum work flow depends on the processing time, or standard, at each workstation.

Materials requirement planning (MRP): MRP systems cannot operate properlywithout accurate work standards.

System simulation: simulation models cannot accurately simulate operation unlesstimes for all operations are known.

Wage payment: comparing expected performance with actual performance requiresthe use of work standards.

Cost accounting: work standards are necessary for determining not only the laborcomponent of costs, but also the correct allocation of production costs to specificproducts.

Employee evaluation: in order to assess whether individual employees are performingas well as they should, a performance standard is necessary against which to measurethe level of performance.

49.Why we need to provide for allowances in Standard Time computation.In industrial engineering, the standard time is the time required by an average

skilled operator, working at a normal pace, to perform a specified task using aprescribed method. It includes appropriate allowances to allow the person to

recover from fatigue and, where necessary, an additional allowance to cover

contingent elements which may occur but have not been observed.

50.What is standard time?In industrial engineering, the standard time is the time required by an average

skilled operator, working at a normal pace, to perform a specified task using a

prescribed method[1]

. It includes appropriate allowances to allow the person to

recover from fatigue and, where necessary, an additional allowance to cover

contingent elements which may occur but have not been observed.

51.Objectives of Value Analysis.The basic reason as to why the process of value analysis is done is to

Maximize the usage of the product And minimize the waste of the product

52.Why do we need to go for Value analysis The true nature of the product and be fully understood The product and be used to the maximum extent to get the desired quality

results. Wastage can be reduced to a greater extent.

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The organization can branch out by producing various products and byproducts.

Total value for the money invested can be gained back within a very shortspan of time.

53.Factors commonly considered as part of Service Quality.o Reality of global Competition.o Quality, Customer Service and cost challenges.o Rapid expansion of advanced technologies.o Continued growth of the service sector.o Scarcity of operations resources.

o Social responsibility issues54.What is the importance of Inventory in any organisation?

Reduce your cost of inventory obsolescence

Become truly responsive to your customers real needs

Make your scheduling and shop loading more efficient

Narrow the gap between sales and stock replacement

Fine-tune your record-keeping accuracy for better inventory management

Determine your exact material status and inventory dollar burden

55.List types of inventories Raw material inventory Work in process inventory Finished goods inventory

56.Why do we segregate inventory in A,B,C Category?The ABC analysis is a business term used to define an inventory categorization techniqueoften used in materials management. It is also known as Selective Inventory Control. Policies

based on ABC analysis:

A ITEMS: very tight control and accurate records B ITEMS: less tightly controlled and good records C ITEMS: simplest controls possible and minimal records

'A'items are very important for an organization. Because of the high value of these A

items, frequent value analysis is required. In addition to that, an organization needs to

choose an appropriate order pattern (e.g. Just- in- time) to avoid excess capacity.'B'items are important, but of course less important, than A items and more important

than C items. Therefore B items are intergroup items.

'C' items are marginally important.

57.What is an operations system?System which converts input into outputs.

production sharing refers to the combined efforts of capital and labor between two

countries. Generally, production sharing will be between one country that is developed and one

less developed country.

58.What do you understand by Delphi technique?

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The Delphi Method is a tool for increasing consensus within a large group of people

... writing it down in a clear way that is easy to understand. ...You can also make responding

easier by putting the items in a table with space for the score.

59.What is capacity requirement planning?Capacity requirement planning first assesses the schedule of production that has been planned

upon by the company. Then it analyzes the company's actual production capacity and weighs the two

against each other to see if the schedule can be completed with the current production capacity.

Computerized technique for projecting resource requirements for critical work stations.

Inputs: :

Planned order releasesPlanned order releases

Routing fileRouting file

Open orders fileOpen orders file

Outputs:Outputs:

Load Profile for each work center60.What do you mean by simultaneous engineering?

Simultaneous engineering involves research and development and organising product

development so that the different stages are carried out in conjunction with each other instead

of in sequence. This can shorten production and new product development times.

simultaneous engineering reduces lead times, which will help to maximise customer

satisfaction and hence adding to customer projections on customer service. Simultaneous

engineering also helps to reduce costs.

61.What is SIMO chart?A basic motion-time chart used to show the simultaneous nature of motions;

commonly a therblig chart for two-hand work with motion symbols plotted vertically with

respect to time, showing the therblig abbreviation and a brief description for each activity,

and individual times values and body-member detail. Also known as simultaneous motion-

cycle chart.

62.What do you understand by materials management manual?Materials Management is a function for the co-ordination of materials planning,

purchasing, storing and distributing materials to provide service at a minimum cost.

The functions can be divided into three categories: -

- Materials Planning and Control- Purchasing- Stores & Inventory Control

63.Define the term reorder point.Minimum level ofinventory at which a new order must be placed. The reorder point

considers the time delay in receiving new inventory, the typical rate of inventory

consumption, and the stockout cost. Inventory level of an item which signals the need for

placement of a replenishment order, taking into account the consumption of the item during

order lead time and the quantity required for the safety stock. Also called reorder level,

reorder quantity, orreplenishment order quantity.

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64.Mention the objectives of facility layout.Maximum flexibility, Maximum coordination, maximum use of volume, maximum

visibility, maximum accessibility, minimum handling, minimum distance, minimum

discomfort, efficient peocess flow, safety aspects.

65.What are the tasks that the team MUST PERFORM BEFORE THE PROJECTBEGINS?

66.What is an operations system?Inputs ( sucha s material labour, machine facilities and energy) are transformed into outputs

(products and services).

67.What are the five basic elements of operational excellence?Six Sigma and its elements VOC (Voice of the Customer), DMAIC (Define, Measure,

Analyze, Improve, Control ) and DOE (Design of Experiments);

Lean, with its elements 5 S (the Japanese concept of housekeeping) and value stream

mapping;

Key Performance Indicators (KPIs);

Footprint Rationalization;

Premier Resource Management.

68.What do you mean by regression and correlation analysis?

In statistics,regression analysis includes any techniques for modeling and analyzing

several variables, when the focus is on the relationship between a dependent variable and one

or more independent variables. More specifically, regression analysis helps one understand

how the typical value of the dependent variable changes when any one of the independent

variables is varied, while the other independent variables are held fixed. Most commonly,

regression analysis estimates the conditional expectation of the dependent variable given the

independent variablesthat is, the average value of the dependent variable when the

independent variables are held fixed.

a statistical relation between two or more variables such that systematic changes in

the value of one variable are accompanied by systematic changes in the other.

69.Write down the functions of master production schedule.- The sizing and timing of production orders for specific items.- The sequencing of individual jobs- The short term allocation of resources to individual activities and operation

70.Define the term backordering.A customer orderthat cannot be filled when presented, and for which the customeris

prepared to wait for some time. The percentage of items backordered and the number of

backorderdays are important measures of the quality of a company's customer service and the

effectiveness of its inventory management. An order for a good or service that cannot be

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filled at the current time due to a lack of available supply. The higher the number of items

backordered, the higher the demand for the item.

71.What are the steps involved in value analysis?This is also called the VE job plan. In the beginning, whenMiles proposed VE job

plan, it was simply the modified form of the steps involved in work study. There are three

different techniques for VE program:1. Job Plan due to Mudge.2. DARSIRI Method (D-Data collection, A-Analysis, R-Record of ideas, S-Speculation, I-In-

vestigation, R-Recommendation, I-Implementation).3. FAST (Function Analysis System Technique).In this section we will deal with the very well recognized Job Plan due to Mudge technique.

The seven phases of Job Plan are:1. General phase

2. Information phase3. Function phase4. Creation phase5. Evaluation phase6. Investigation phase7. Recommendation phase

72.Write about cyclegraph and chronocycleraph.In graph theory, a cycle graph orcircular graph is a graph that consists of a single cycle, or

in other words, some number of vertices connected in a closed chain.

A chart for examining fine details of movement over time, such as the hand movements of an

assembly worker. It shows the movements of (such as) hands with notations to indicate how longeach movement and pause takes. It can be used for such as optimal placement of components and

tools to minimize arm movement and hence speed and ease manual work.The same approach can

be used for any movements, which could be parts of a machine, movement of trucks, etc.It

originated from Work Study, the old 'Time and Motion' approach to improving assembly-line

efficiency.

73.What are the factors that influence product design?Raw materials used, machines and work methods, easy of use for operator (or)user,

cost of production, cost of production, process capability, quality of product, existing

products effect, customer requirement, competitors product, market trend.

74.Why is break even analysis done in facility location?- To compare several potential location on an economic basis.

75.What is the need for production and operations management?Production/operation management is the process, which combines and transforms

various resources used in the production/operations subsystem of the organization into value

added product/services in a controlled manner as per the policies of the organization.

Therefore it is that part of an organization, which is concerned with the transformation of a

range of inputs into the required having the requisite quality level.

76.Explain the importance of global operations.- Products with high quality.- Products at competitive price.- Products with several enhanced features.

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- Products in a wider variety- Products delivered with in short lead time

77.Explain the kanban system.Kanban (kahn-bahn) is a Japanese word that when translated literally means visible

record or visible part. In general context, it refers to a signal of some kind. Thus, in the

manufacturing environment, kanbans are signals used to replenish the inventory of items used

repetitively within a facility. The kanban system is based on a customer of a part pulling the

part from the supplier of that part. The customer of the part can be an actual consumer of a

finished product (external) or the production personnel at the succeeding station in a

manufacturing facility (internal). Likewise, the supplier could be the person at the preceding

station in a manufacturing facility. The premise of kanbans is that material will not be

produced or moved until a customer sends the signal to do so.

78.What do you understand by quantity discount model?- Reduced prices are often available when larger quantities are purchased.- Trade off is between reduced product cost and increased holding cost.

79.Differentiate strategic and tactical planning.S.NO Strategic Planning Tactical Planning

1. macro-oriented emphasis on the big

picture and your long term goals

and objectives, usually in 3 to 5

year increments

micro-oriented and focused your short term

S.M.A.R.T. goals.

2. It is focuses on thecore ofWho

(you are), What(you want toaccomplish)and Why(do you want

to accomplish the what) of

organizations and people.

The focus is on operations, which includes

creating and executing effective, efficient

action plans.

3. Strategic planning includes (i)

business market share;

(ii) professional career path;

(iii) life and/or business vision; (iv)

investment goals; (v) personal

and/or professional opportunity

costs; (vi) mission; and (v)

the allocation of resources

tactical planning include (i) monthly orquarterly sales goals; (ii) improving customerservice in specific areas, (iii) reducing the

number of your outside commitments so thatyou can simplify your life and (iv)creating action plans for your strategic (bigpicture) objectives.

80.What are the advantage of standardization?- Strategic Significance- Potential Competitive Advantage- Cost Reduction- Supplier/Client Relationship- Formation of Strategic Alliances- R&D

81.Explain the use of gantt chart.A Gantt chart is a type ofbar chart that illustrates a project schedule. Gantt charts

illustrate the start and finish dates of the terminal elements and summary elements of a

project. Terminal elements and summary elements comprise the work breakdown structure of

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the project. Some Gantt charts also show the dependency (i.e., precedence network)

relationships between activities

82.What factors are to be considered while selecting a region for facility location?- Availability of land- Availability of inputs such as labor, raw materials, etc.- Closeness to the market places- Stability of demand.- Availability of communication facilities.Cont refer R.Pannerselvam page no 95

83.Distinguish between production management and operations management.Operations Management is about the administration and planning of the business

operations in the production as well as the service of goods, Product Management is the

organizational life cycle procedure inside a company that is concerned with the prediction,

planning and marketing goods at all phases of the life cycle of that particular product or

products.84.What is ROL? How will you determine the ROL of deterministic system?

ROLRe order Level.(defn)

Demand during lead time in deterministic model (write formula)

85.What is capacity planning?It is the process of determining the production capacity needed by an organization to

meet the changing demands for its products. Capacity is the maximum amount of work that

an organization is capable of completing in a given period of time.

86.What is group technology?Manufacturing technique in which functionally-grouped machines (producing parts or

products with similarcharacteristics) are organized into cells to achieve high repeatabilitylevels.

87.Distinguish between CPM and PERT.S.NO PERT CPM

1. Project evaluation review technique Critical Path method

2. Probablistic model Deterministic Model.

88.What is flow shop scheduling?A manufacturing facility in which machine tools and robots are employed in the same manneron all jobs.

89.What is work sampling?Statistical technique used for predicting the total time consumed by an activity, in

processes ranging from customer service and manufacturing to telemarketing. It relies on the

observations made over a period to record what is happening at that instant, and the frequency

at which one or more activities are being performed. Also called work sampling.

90.List the components of MRP.Input : Master Production Schedule, Bill of Material, Inventory status record.

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Output : Recommendation of planned order release, rescheduling notices changing

open order due dates, Notices to cancel (or) suspend open orders, Item-status analysis

backup data, future planned order schedules.

91.Why do we require safety stock?We require a safety stock to meet fluctuations in demand during lead time and review

period.

92.List at least any two tools to evaluate forecasting model.MSE,

MAPE,

MFE,

MAD,

93.How do you prepare a gantt chart?Gantt charts are a project planning tool that can be used to represent the timing of

tasks required to complete a project. Because Gantt charts are simple to understand and easy

to construct, they are used by most project managers for all but the most complex projects.

In a Gantt chart, each task takes up on row. Dates run along the top in increments ofdays, weeks or months, depending on the total length of the project. The expected time for

each task is represented by a horizontal bar whose left end marks the expected beginning of

the task and whose right end marks the expected completion date. Tasks may run

sequentially, in parallel or overlapping.

94.What is fixed order inventory model?Inventory control system in which the quantity oramount of every item is monitored

continuously (not at fixed intervals), and whenever it fallsbelow a certain level, an orderto

replenish it to the required level is placed.

95.What is MRP II?

MRP II is an extended from the closed loop MRP that incorporates strategies

planning processes, business planning, and a number of other business function such as

human resource planning, profit calculation and cash flow analysis.

96.What is a dummy activity?An activity of zero duration used to show a logical relationship in the arrow

diagramming method. Dummy activities are used when logical relationships cannot be

completely or correctly described with regular activity arrows.

Dummies are shown graphically as a dashed line headed by an arrow.

97.Define productivity.Productivity is a measure of output from a production process, per unit of input.

98.How are service system are classified? Give example for each.- Service factory (Airlines, trucking)- Service Shop ( Hospital, Auto repair)- Mass Service (Retailing, Wholesaling)- Professional Service ( Physicians, Lawyers)

99.What are the components of integrated material management system?- Material planning.- Inventory control.- Stores management.- Purchase management.

100. What are the basic inputs for an MRP system?Master production schedule, bill of material, inventory status records.

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101. What are the methods to solve aggregate planning problems?

Solution

Requirement

Cost Behavior

Linear Non Linear

Optimal Linear Programming

- Transportaiton model- Simplex method

Linear decision

rule

Dynamic

Programming

Non-Optimal Trial and Error Method Heuristic method

Computer

research

102. List any two qualitative methods of forecasting.Executive opinion,

Delphi technique,

consumer surveys.

103. Identify a set of decision that operation managers make?- Strategic decisionlong term (product, process, location)- Operating decision(meeting demand, hiring firing outsourcing)- Control decision- (cost of production, quality,quantity).

104.

Explain the various measure of forecast error.MSE,

MAPE,

MFE,

MAD,

Tracking signal.

105. Distinguish between independent and dependent demand.Inventory control classification foritems the demand for which has no relationship

with the demand for any other item.

Demand for item (called lowerlevel orchild item) that does not occur until there is a

demand for another item (called higher level or parent item). Also, where demand for the

higher level or parent item can be satisfied only if the lower level or child items are available.

106. How aggregate plans relate to a firms long term and short term plans?- Pure strategy- Mixed strategy

107. What are the four basic type of layout?Product (or) line layout,

functional (or) process layout,

stationary layout,

combined (or) mixed layout.

108. Write the steps in new product development.Idea Generation

Idea Screening

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Concept Development and Testing

Business Analysis

Beta Testing and Market Testing

Technical Implementation

Commercialization

New Product Pricing

109. What factor influence process selection?Market condition, capital requirements, labor, management skills, raw materials,

technology.

110. What are aggregate planning strategies?- varying the inventory levels- varying the size of the workforce- overtime utilization- subcontracting.