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Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
Prod. & operation mgt.
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Prod. & operation mgt.

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PRODUCTION & OPERATIONS MGT.... SMU ASSIGNMENT.. SEM --2... BY ROHIT MISHRA

PRODUCTION & OPERATIONS MGT.... SMU ASSIGNMENT.. SEM --2... BY ROHIT MISHRA

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  • 1. Master of Business Administration Semester II MB0044 – Production & Operations Management Assignment Set- 1 Q1. Explain in brief the origins of Just In Time. Explain the different types of wastes thatcan be eliminated using JIT.Ans. Just-in-time (JIT)Just-in-time (JIT) is easy to grasp conceptually, everything happens just-in-time. For exampleconsider my journey to work this morning, I could have left my house, just-in-time to catch a busto the train station, just-in-time to catch the train, just-in-time to arrive at my office, just-in-timeto pick up my lecture notes, just-in-time to walk into this lecture theatre to start the lecture.Conceptually there is no problem about this; however achieving it in practice is likely to bedifficult!So too in a manufacturing operation component parts could conceptually arrive just-in-time to bepicked up by a worker and used. So we would at a stroke eliminate any inventory of parts, theywould simply arrive just-in-time! Similarly we could produce finished goods just-in-time to behanded to a customer who wants them. So, at a conceptual extreme, JIT has no need forinventory or stock, either of raw materials or work in progress or finished goods.Obviously any sensible person will appreciate that achieving the conceptual extreme outlinedabove might well be difficult, or impossible, or extremely expensive, in real-life. However thatextreme does illustrate that, perhaps, we could move an existing system towards a system withmore of a JIT element than it currently contains. For example, consider a manufacturing process- whilst we might not be able to have a JIT process in terms of handing finished goods tocustomers, so we would still need some inventory of finished goods, perhaps it might be possible
  • 2. to arrange raw material deliveries so that, for example, materials needed for one days productionarrive at the start of the day and are consumed during the day - effectively reducing/eliminatingraw material inventory.JIT originated in Japan. Its introduction as a recognised technique/philosophy/way of workingis generally associated with the Toyota motor company, JIT being initially known as the "ToyotaProduction System". Note the emphasis here - JIT is very much a mindset/way of looking at aproduction system that is distinctly different from what (traditionally) had been done previous toits conception.Within Toyota Taiichi Ohno is most commonly credited as the father/originator of this way ofworking. The beginnings of this production system are rooted in the historical situation thatToyota faced. After the Second World War the president of Toyota said "Catch up with Americain three years, otherwise the automobile industry of Japan will not survive". At that time oneAmerican car worker produced approximately nine times as much as a Japanese car worker.Taiichi Ohno examined the American industry and found that American manufacturers madegreat use of economic order quantities - the traditional idea that it is best to make a "lot" or"batch" of an item (such as a particular model of car or a particular component) before switchingto a new item. They also made use of economic order quantities in terms of ordering andstocking the many parts needed to assemble a car.Ohno felt that such methods would not work in Japan - total domestic demand was low and thedomestic marketplace demanded production of small quantities of many different models.Accordingly Ohno devised a new system of production based on the elimination of waste. In hissystem waste was eliminated by: just-in-time - items only move through the production system as and when they are needed autonomation - (spelt correctly in case you have never met the word before) - automating the production system so as to include inspection - human attention only being needed when a defect is automatically detected whereupon the system will stop and not proceed until the problem has been solvedIn this system inventory (stock) is regarded as an unnecessary waste as too is having to deal withdefects.Ohno regarded waste as a general term including time and resources as well as materials. Heidentified a number of sources of waste that he felt should be eliminated: overproduction - waste from producing more than is needed time spent waiting - waste such as that associated with a worker being idle whilst waiting for another worker to pass him an item he needs (e.g. such as may occur in a sequential line production process) transportation/movement - waste such as that associated with transporting/moving items around a factory
  • 3. processing time - waste such as that associated with spending more time than is necessary processing an item on a machine inventory - waste associated with keeping stocks defects - waste associated with defective itemsAt the time car prices in the USA were typically set using selling price = cost plus profit mark-up. However in Japan low demand meant that manufacturers faced price resistance, so if theselling price is fixed how can one increase the profit mark-up? Obviously by reducing costs andhence a large focus of the system that Toyota implemented was to do with cost reduction.To aid in cost reduction Toyota instituted production levelling - eliminating unevenness in theflow of items. So if a component which required assembly had an associated requirement of 100during a 25 day working month then four were assembled per day, one every two hours in aneight hour working day. Levelling was also applied to the flow of finished goods out of thefactory and to the flow of raw materials into the factory.Toyota changed their factory layout. Previously all machines of the same type, e.g. presses, weretogether in the same area of the factory. This meant that items had to be transported back andforth as they needed processing on different machines. To eliminate this transportation differentmachines were clustered together so items could move smoothly from one machine to another asthey were processed. This meant that workers had to become skilled on more than one machine -previously workers were skilled at operating just one type of machine. Although this initially metresistance from the workforce it was eventually overcome.Whilst we may think today that Japan has harmonious industrial relations with management andworkers working together for the common good the fact is that, in the past, this has not been true.In the immediate post Second World War period, for example, Japan had one of the worse strikerecords in the world. Toyota had a strike in 1950 for example. In 1953 the car maker Nissansuffered a four month strike - involving a lockout and barbed wire barricades to prevent workersreturning to work. That dispute ended with the formation of a company backed union, formedinitially by members of the Nissan accounting department. Striking workers who joined this newunion received payment for the time spent on strike, a powerful financial inventive to leave theirold union during such a long dispute. The slogan of this new union was "Those who truly lovetheir union love their company".In order to help the workforce to adapt to what was a very different production environmentOhno introduced the analogy of teamwork in a baton relay race. As you are probably awaretypically in such races four runners pass a baton between themselves and the winning team is theone that crosses the finishing line first carrying the baton and having made valid baton exchangesbetween runners. Within the newly rearranged factory floor workers were encouraged to think ofthemselves as members of a team - passing the baton (processed items) between themselves withthe goal of reaching the finishing line appropriately. If one worker flagged (e.g. had an off day)then the other workers could help him, perhaps setting up a machine for him so that the teamoutput was unaffected.
  • 4. In order to have a method of controlling production (the flow of items) in this new environmentToyota introduced the kanban. The kanban is essentially information as to what has to be done.Within Toyota the most common form of kanban was a rectangular piece of paper within atransparent vinyl envelope. The information listed on the paper basically tells a worker what todo - which items to collect or which items to produce. In Toyota two types of kanban aredistinguished for controlling the flow of items: a withdrawal kanban - which details the items which should be withdrawn from the preceding step in the process a production ordering kanban - which details the items to be producedAll movement throughout the factory is controlled by these kanbans - in addition since thekanbans specify item quantities precisely no defects can be tolerated - e.g. if a defectivecomponent is found when processing a production ordering kanban then obviously the quantityspecified on the kanban cannot be produced. Hence the importance of autonomation (as referredto above) - the system must detect and highlight defective items so that the problem that causedthe defect to occur can be resolved.
  • 5. Q2. What is Value Engineering or Value Analysis? Elucidate five companies which haveincorporated VE with brief explanation.Ans. Value engineeringValue engineering (VE) is a systematic method to improve the "value" of goods or products andservices by using an examination of function. Value, as defined, is the ratio of function to cost.Value can therefore be increased by either improving the function or reducing the cost. It is aprimary tenet of value engineering that basic functions be preserved and not be reduced as aconsequence of pursuing value improvements.In the United States, value engineering is specifically spelled out in Public Law 104-106, whichstates ―Each executive agency shall establish and maintain cost-effective value engineeringprocedures and processes."Value engineering is sometimes taught within the project management or industrial engineeringbody of knowledge as a technique in which the value of a system‘s outputs is optimized bycrafting a mix of performance (function) and costs. In most cases this practice identifies andremoves unnecessary expenditures, thereby increasing the value for the manufacturer and/or theircustomers.VE follows a structured thought process that is based exclusively on "function", i.e. whatsomething "does" not what it is. For example a screw driver that is being used to stir a can ofpaint has a "function" of mixing the contents of a paint can and not the original connotation ofsecuring a screw into a screw-hole. In value engineering "functions" are always described in atwo word abridgment consisting of an active verb and measurable noun (what is being done - theverb - and what it is being done to - the noun) and to do so in the most non-prescriptive waypossible. In the screw driver and can of paint example, the most basic function would be "blendliquid" which is less prescriptive than "stir paint" which can be seen to limit the action (bystirring) and to limit the application (only considers paint.) This is the basis of what valueengineering refers to as "function analysis".Value engineering uses rational logic (a unique "how" - "why" questioning technique) and theanalysis of function to identify relationships that increase value. It is considered a quantitativemethod similar to the scientific method, which focuses on hypothesis-conclusion approaches totest relationships, and operations research, which uses model building to identify predictiverelationships.Value engineering is also referred to as "value management" or "value methodology" (VM), and"value analysis" (VA). VE is above all a structured problem solving process based on functionanalysis—understanding something with such clarity that it can be described in two words, theactive verb and measurable noun abridgement. For example, the function of a pencil is to "make
  • 6. marks". This then facilitates considering what else can make marks. From a spray can, lipstick, adiamond on glass to a stick in the sand, one can then clearly decide upon which alternativesolution is most appropriate.The Job PlanValue engineering is often done by systematically following a multi-stage job plan. Larry Milesoriginal system was a six-step procedure which he called the "value analysis job plan." Othershave varied the job plan to fit their constraints. Depending on the application, there may be four,five, six, or more stages. One modern version has the following eight steps: 1. Preparation 2. Information 3. Analysis 4. Creation 5. Evaluation 6. Development 7. Presentation 8. Follow-upFour basic steps in the job plan are: Information gathering - This asks what the requirements are for the object. Function analysis, an important technique in value engineering, is usually done in this initial stage. It tries to determine what functions or performance characteristics are important. It asks questions like; What does the object do? What must it do? What should it do? What could it do? What must it not do? Alternative generation (creation) - In this stage value engineers ask; What are the various alternative ways of meeting requirements? What else will perform the desired function? Evaluation - In this stage all the alternatives are assessed by evaluating how well they meet the required functions and how great will the cost savings be. Presentation - In the final stage, the best alternative will be chosen and presented to the client for final decision.How it worksVE follows a structured thought process to evaluate options as follows.
  • 7. Gather information1. What is being done now?Who is doing it?What could it do?What must it not do?Measure2. How will the alternatives be measured?What are the alternate ways of meeting requirements?What else can perform the desired function?Analyze3. What must be done?What does it cost?Generate4. What else will do the job?Evaluate5. Which Ideas are the best?6. Develop and expand ideasWhat are the impacts?What is the cost?What is the performance?7. Present ideas
  • 8. Q3. Explain different types of Quantitative models. Differentiate between work study andmotion study.Ans. Quantitative models of the action potentialIn neurophysiology, several mathematical models of the action potential have been developed,which fall into two basic types. The first type seeks to model the experimental dataquantitatively,i.e., to reproduce the measurements of current and voltage exactly. The renowned Hodgkin-Huxley model of the axon from the Lolling squid exemplifies such models.Althoughqualitatively correct, the H-H model does not describe every type of excitablemembrane accurately, since it considers only two ions (sodium and potassium), each with onlyone type of voltage-sensitive channel. However, other ions such as calcium may be importantand there is a great diversity of channels for all ions. As an example, the cardiac action potentialillustrates how differently shaped action potentials can be generated on membranes with voltage-sensitive calcium channels and different types of sodium/potassium channels. The second type ofmathematical model is a simplification of the first type; the goal is not to reproduce theexperimental data, but to understand qualitatively the role of action potentials in neural circuits.For such a purpose, detailed physiological models may be unnecessarily complicated and mayobscure the "forest for the trees". The Fitzhugh-Nagumo model is typical of this class, which isoften studied for its entrainment behavior. Entrainment is commonly observed in nature, forexample in the synchronized lighting of fireflies, which is coordinated by a burst of actionpotentials; entrainment can also be observed in individual neurons. Both types of models may beused to understand the behavior of small biological neural networks, such as the central patterngenerators responsible for some automatic reflex actions. Such networks can generate a complextemporal pattern of action potentials that is used to coordinate muscular contractions, such asthose involved in breathing or fast swimming to escape a predator.
  • 9. Hodgkin-Huxley modelEquivalent electrical circuit for the Hodgkin-Huxley model of the action potential. Im and Vmrepresent the current through, and the voltage across, a small patch of membrane, respectively.The Cm represents the capacitance of the membrane patch, whereas the four gs represent theconductances of four types of ions. The two conductances on the left, for potassium (K) andsodium (Na), are shown with arrows to indicate that they can vary with the applied voltage,corresponding to the voltage-sensitive ion channels.In 1952 Alan Lloyd Hodgkin and Andrew Huxley developed a set of equations to fit theirexperimental voltage-clamp data on the axonal membrane. The model assumes that themembrane capacitance C is constant; thus, the transmembrane voltage V changes with the totaltransmembrane current Itot according to the equationwhere INa, IK, and IL are currents conveyed through the local sodium channels, potassiumchannels, and "leakage" channels (a catch-all), respectively. The initial term Iext represents thecurrent arriving from external sources, such as excitatory postsynaptic potentials from thedendrites or a scientists electrode.The model further assumes that a given ion channel is either fully open or closed; if closed, itsconductance is zero, whereas if open, its conductance is some constant value g. Hence, the netcurrent through an ion channel depends on two variables: the probability popen of the channelbeing open, and the difference in voltage from that ions equilibrium voltage, V − Veq. Forexample, the current through the potassium channel may be written as
  • 10. which is equivalent to Ohms law. By definition, no net current flows (IK = 0) when thetransmembrane voltage equals the equilibrium voltage of that ion (when V = EK).To fit their data accurately, Hodgkin and Huxley assumed that each type of ion channel hadmultiple "gates", so that the channel was open only if all the gates were open and closedotherwise. They also assumed that the probability of a gate being open was independent of theother gates being open; this assumption was later validated for the inactivation gate. Hodgkin andHuxley modeled the voltage-sensitive potassium channel as having four gates; letting pn denotethe probability of a single such gate being open, the probability of the whole channel being openis the product of four such probabilities, i.e., popen, K = n4. Similarly, the probability of thevoltage-sensitive sodium channel was modeled to have three similar gates of probability m and afourth gate, associated with inactivation, of probability h; thus, popen, Na = m3h. The probabilitiesfor each gate are assumed to obey first-order kineticswhere both the equilibrium value meq and the relaxation time constant τm depend on theinstantaneous voltage V across the membrane. If V changes on a time-scale more slowly than τm,the m probability will always roughly equal its equilibrium value meq; however, if V changesmore quickly, then m will lag behind meq. By fitting their voltage-clamp data, Hodgkin andHuxley were able to model how these equilibrium values and time constants varied withtemperature and transmembrane voltage. The formulae are complex and depend exponentiallyon the voltage and temperature. For example, the time constant for sodium-channel activationprobability h varies as 3(θ−6.3)/10 with the Celsius temperature θ, and with voltage V asIn summary, the Hodgkin-Huxley equations are complex, non-linear ordinary differentialequations in four independent variables: the transmembrane voltage V, and the probabilities m, hand n. No general solution of these equations has been discovered. A less ambitious but generallyapplicable method for studying such non-linear dynamical systems is to consider their behaviorin the vicinity of a fixed point. This analysis shows that the Hodgkin-Huxley system undergoes atransition from stable quiescence to bursting oscillations as the stimulating current Iext isgradually increased; remarkably, the axon becomes stably quiescent again as the stimulatingcurrent is increased further still. A more general study of the types of qualitative behavior ofaxons predicted by the Hodgkin-Huxley equations has also been carried out.
  • 11. Fitzhugh-Nagumo modelFigure FHN: To mimick the action potential, the Fitzhugh-Nagumo model and its relatives use afunction g(V) with negative differential resistance (a negative slope on the I vs. V plot). Forcomparison, a normal resistor would have a positive slope, by Ohms law I = GV, where theconductance G is the inverse of resistance G=1/R.Because of the complexity of the Hodgkin-Huxley equations, various simplifications have beendeveloped that exhibit qualitatively similar behavior. The Fitzhugh-Nagumo model is a typicalexample of such a simplified system. Based on the tunnel diode, the FHN model has only twoindependent variables, but exhibits a similar stability behavior to the full Hodgkin-Huxleyequations. The equations arewhere g(V) is a function of the voltage V that has a region of negative slope in the middle,flanked by one maximum and one minimum (Figure FHN). A much-studied simple case of theFitzhugh-Nagumo model is the Bonhoeffer-van der Pol nerve model, which is described by theequations
  • 12. where the coefficient ε is assumed to be small. These equations can be combined into a second-order differential equationThis van der Pol equation has stimulated much research in the mathematics of nonlineardynamical systems. Op-amp circuits that realize the FHN and van der Pol models of the actionpotential have been developed by Keener.A hybrid of the Hodgkin-Huxley and FitzHugh-Nagumo models was developed by Morris andLecar in 1981, and applied to the muscle fiber of barnacles. True to the barnacles physiology,the Morris-Lecar model replaces the voltage-gated sodium current of the Hodgkin-Huxley modelwith a voltage-dependent calcium current. There is no inactivation (no h variable) and thecalcium current equilibrates instantaneously, so that again, there are only two time-dependentvariables: the transmembrane voltage V and the potassium gate probability n. The bursting,entrainment and other mathematical properties of this model have been studied in detail.The simplest models of the action potential are the "flush and fill" models (also called "integrate-and-fire" models), in which the input signal is summed (the "fill" phase) until it reaches athreshold, firing a pulse and resetting the summation to zero (the "flush" phase). All of thesemodels are capable of exhibiting entrainment, which is commonly observed in nervous systems..
  • 13. Q4. What is Rapid Prototyping? Explain the difference between Automated flow line andAutomated assembly line with examples.Ans. Rapid prototypingRapid prototyping is the automatic construction of physical objects using additivemanufacturing technology. The first techniques for rapid prototyping became available in the late1980s and were used to produce models and prototype parts. Today, they are used for a muchwider range of applications and are even used to manufacture production-quality parts inrelatively small numbers. Some sculptors use the technology to produce exhibitions.The use of additive manufacturing for rapid prototyping takes virtual designs from computeraided design (CAD) or animation modeling software, transforms them into thin, virtual,horizontal cross-sections and then creates successive layers until the model is complete. It is aWYSIWYG process where the virtual model and the physical model are almost identical.With additive manufacturing, the machine reads in data from a CAD drawing and lays downsuccessive layers of liquid, powder, or sheet material, and in this way builds up the model from aseries of cross sections. These layers, which correspond to the virtual cross section from theCAD model, are joined together or fused automatically to create the final shape. The primaryadvantage to additive fabrication is its ability to create almost any shape or geometric feature.The standard data interface between CAD software and the machines is the STL file format. AnSTL file approximates the shape of a part or assembly using triangular facets. Smaller facetsproduce a higher quality surface. VRML (or WRL) files are often used as input for 3D printingtechnologies that are able to print in full color.The word "rapid" is relative: construction of a model with contemporary methods can take fromseveral hours to several days, depending on the method used and the size and complexity of themodel. Additive systems for rapid prototyping can typically produce models in a few hours,although it can vary widely depending on the type of machine being used and the size andnumber of models being produced simultaneously.Some solid freeform fabrication techniques use two materials in the course of constructing parts.The first material is the part material and the second is the support material (to supportoverhanging features during construction). The support material is later removed by heat ordissolved away with a solvent or water.Traditional injection molding can be less expensive for manufacturing polymer products in highquantities, but additive fabrication can be faster and less expensive when producing relativelysmall quantities of parts. 3D printers give designers and concept development teams the ability toproduce parts and concept models using a desktop size printer.
  • 14. Rapid prototyping is now entering the field of rapid manufacturing and it is believed by manyexperts that this is a "next level" technology.Industrial KUKA robot for wood processing and rapid prototypingA large number of competing technologies are available in the marketplace. As all are additivetechnologies, their main differences are found in the way layers are built to create parts. Someare melting or softening material to produce the layers (SLS, FDM) where others are layingliquid materials thermosets that are cured with different technologies. In the case of laminationsystems, thin layers are cut to shape and joined together.As of 2005, conventional rapid prototype machines cost around £25,000.Prototyping technologies Base materialsSelective laser sintering (SLS) Thermoplastics, metals powdersDirect metal laser sintering (DMLS) Almost any alloy metalFused deposition modeling (FDM) Thermoplastics, eutectic metalsStereolithography (SLA) photopolymerLaminated object manufacturing (LOM) PaperElectron beam melting (EBM) Titanium alloys3D printing (3DP) Various materials
  • 15. Q5. Explain Break Even Analysis and Centre of Gravity methods. Explain Productlayout and process layout with examples.Ans.BREAK EVEN ANALYSIS & CENTER OF GRAVITY METHODThis article is about Break-even (economics). For other uses, see Break-even (disambiguation).The Break-Even PointIn economics & business, specifically cost accounting, the break-even point (BEP) is the pointat which cost or expenses and revenue are equal: there is no net loss or gain, and one has "brokeneven". A profit or a loss has not been made, although opportunity costs have been "paid", andcapital has received the risk-adjusted, expected return.For example, if a business sells fewer than 200 tables each month, it will make a loss, if it sellsmore, it will be a profit. With this information, the business managers will then need to see ifthey expect to be able to make and sell 200 tables per month.If they think they cannot sell that many, to ensure viability they could: 1. Try to reduce the fixed costs (by renegotiating rent for example, or keeping better control of telephone bills or other costs) 2. Try to reduce variable costs (the price it pays for the tables by finding a new supplier) 3. Increase the selling price of their tables.Any of these would reduce the break even point. In other words, the business would not need tosell so many tables to make sure it could pay its fixed costs.
  • 16. Margin of SafetyMargin of safety represents the strength of the business. It enables a business to know what is theexact amount it has gained or lost and whether they are over or below the break even point.margin of safety = (current output - breakeven output)margin of safety% = (current output - breakeven output)/current output x 100When dealing with budgets you would instead replace "Current output" with "Budgeted output".If P/V ratio is given then profit/ PV ratioIn unitBreak Even =where FC is Fixed Cost, SP is Selling Price and VC is Variable CostBreak Even AnalysisBy inserting different prices into the formula, you will obtain a number of break even points, onefor each possible price charged. If the firm changes the selling price for its product, from $2 to$2.30, in the example above, then it would have to sell only (1000/(2.3 - 0.6))= 589 units tobreak even, rather than 715.To make the results clearer, they can be graphed. To do this, you draw the total cost curve (TC inthe diagram) which shows the total cost associated with each possible level of output, the fixed
  • 17. cost curve (FC) which shows the costs that do not vary with output level, and finally the varioustotal revenue lines (R1, R2, and R3) which show the total amount of revenue received at eachoutput level, given the price you will be charging.The break even points (A,B,C) are the points of intersection between the total cost curve (TC)and a total revenue curve (R1, R2, or R3). The break even quantity at each selling price can beread off the horizontal axis and the break even price at each selling price can be read off thevertical axis. The total cost, total revenue, and fixed cost curves can each be constructed withsimple formulae. For example, the total revenue curve is simply the product of selling pricetimes quantity for each output quantity. The data used in these formulae come either fromaccounting records or from various estimation techniques such as regression analysis.ApplicationThe break-even point is one of the simplest yet least used analytical tools in management. Ithelps to provide a dynamic view of the relationships between sales, costs and profits. A betterunderstanding of break-even, for example, is expressing break-even sales as a percentage ofactual sales—can give managers a chance to understand when to expect to break even (bylinking the percent to when in the week/month this percent of sales might occur).The break-even point is a special case of Target Income Sales, where Target Income is 0(breaking even). This is very important for financial analysis.Limitations Break-even analysis is only a supply side (i.e. costs only) analysis, as it tells you nothing about what sales are actually likely to be for the product at these various prices. It assumes that fixed costs (FC) are constant. Although this is true in the short run, an increase in the scale of production is likely to cause fixed costs to rise. It assumes average variable costs are constant per unit of output, at least in the range of likely quantities of sales. (i.e. linearity) It assumes that the quantity of goods produced is equal to the quantity of goods sold (i.e., there is no change in the quantity of goods held in inventory at the beginning of the period and the quantity of goods held in inventory at the end of the period). In multi-product companies, it assumes that the relative proportions of each product sold and produced are constant (i.e., the sales mix is constant).
  • 18. Center of Gravity calculations.Introduction One of the problems that arises when building a model aircraft is the correctplacement of the Center of Gravity. When assembling an ARTF or scratch building from a Planthe problem does not arise, as the designer should give full details on the plan or in the kit.However, when you are building to your own design you may need to work out where the C of Gis located. This is not a problem with a "normal" model, but what about Biplanes, a BeechStaggerwing, Deltas, Canards & other odd layouts. Full size designers have powerful computersand wind tunnels but we must get it right for that first flight. Once in the air you are fullycommitted and an error will almost certainly cause a crash or at best a very twitchy flight. Thereis little point going into computational details here as there are one or two good programs on theInternet that will do most of the work for you. You will find links below to the ones I havelocated as they are quite hard to find and suggest you try these out, they all give more or less thecorrect answer. In the good old free flight days, test glides were the norm, trimming out a modelinto long grass until the model flew straight and level just off the stall. Test glides of heavy fastradio models are not possible so we need to get the C of G correct for that first flight. If in doubtuse the old rule of thumb "1/4 of the wing chord back" This is generally not far out. See also the"model of a model" method.Calculation Problems There are however a couple of problems. Most of the calculationsinvolve an element of guesswork so the final result can only be at best described as a veryaccurate guess. For example tailplane efficiency varies between 30 and 100% and you need tomake an educated guess as to the value you use in your calculations. A tailplane close to thewings trailing edge and in the wake vortex will come out as low as 30%, a "normal" location60% whilst a canard (foreplane) is in the 95-100% range as it operates in "clean" air. A high set"Tee" tail will be closer to 90%. Do not bother with lifting tailplanes. A flat plate or thinsymmetrical type is just as efficient. Secondly the C of G needs to be in front of the NeutralPoint, but how far? Again a degree of intelligent guess work is required. The accepted figure isbetween 5 & 20%, 15% is a good compromised for first flights. See note below. Once you have amodel that flies, at least well enough to land in one piece, you can then adjust the C of G basedon the results of the first flight. Some links are given below where you can find Nomograms etc.to do most of the calculations for you and I will add others as I find them.Fly by Wire Fighters Variously known as CCV (Control Configured Vehicles) or ACT (ActiveControl Technology) these aircraft are designed to be unstable and only fly under the full controlof high speed computers, with minimum input from the pilot, where the roll and pitch sensorsinput to the control surfaces at 100 x per second. Not quite as fast as our 2.4GHz ! Some verysuccessful large turbine models of full size CCV aircraft have been built and fly very well. Theonly difference being in the location of the C of G. CCV aircraft have this AFT of the NPwhereas models should have this in front of the NP or Neutral Point. (or Center of Pressure CP)It should be noted that CCV aircraft have a tailplane significantly SMALLER than would beconsidered normal. This should be taken into account when designing a MODEL otherwise itmay not be large enough for normal control. The WWII Spitfire has a very small tailplane toreduce drag and increase manoevreability.
  • 19. Terminology There is a lot of confusing terminology regarding this subject and an attempt hasbeen had to clarify these in the notes at the end. Please read these first. In most engineeringcalculations weights & pressures are assumed to act a one point ie. at the C of G. We know thisis not exactly the case as the weight of any object is spread over its entire volume/area, notalways evenly, but spread nevertheless. Concentrating this mass or weight at one (imaginary)point makes meaningful calculations possible.Biplanes and other multi-wing aircraft. I came across these diagrams in an old copy of theAviation Handbook - Johnson - 1931 and it does seem to be a very authoritative method ofdetermining the location of the MAC in the Z axis for a Biplane. Johnson further states in hisbook that the Upper Wing carries approx. 58% of the load and the Lower Wing approx. 41%. Avery small amount comes from the Fuselage, Struts etc. The C of G should be located at approx.30% of the mean chord. Optimum range 28% - 33%. The Fig D-1 allows you to compute thelocation plane of the MAC (in the Z axis) between the Upper and Lower Wing and Fig D-2provides a solution for value K in D1. Fig A is a repeat of the graphical method of determiningthe MAC. Fig B is the same but for more complicated wing planforms and Fig C shows thelimits for the C of G on various wing positions. Note that you will still need to compute thelocation of the C of G in the X & Y axis using other sections of this page. D-1 only shows 3Gap/Chord ratios. Extrapolate for others.This article is reproduced with the kind permission of Alasdair Sutherland and should enable anymodeller to determine the MAC on any BiplaneDetermining the C of G by the use of a Model By building an accurate small scale model ofyour new model it is possible to determine very accurately where the C of G lies. Make a model(say 1/4) the size of your model as accurately as possible c/w with profile fuselage, tailplane andfin. Make the wings and tail in sheet balsa and round the LE/TE. Test glide the scale model untila nice flat glide results. Remove nose weight until a very slight stall results. This is the AFTposition. Now add weight until the glide is unacceptable. This is the most FORWARD position.Check the location on the test model and set the C of G on your full size model somewhere inbetween these two extremes. At least it should fly with reasonable safety and is better thannothing for very unorthodox or hard to compute models, such as Rear Swept Biplanes orCanards.Flying Wings & Deltas Use the calculators given below but put in very low values (0.01 forexample) for the (non existant) Tailplane. Some of the calculators will not accept zero as a value.The results are confirmed by the positions on models that fly well. Zagis, Ripmax Rapier, Delta363 etc.Gordon Whitehead - Winning Formula This article appeared in the May issue of RadioModeller 1994 and is a very comprehensive look at Center of Gravity calculations. Interestinglyit covers a wide variety of Multi Wing Aircraft as mentioned above. It probably gives the bestmethod of calculating Centres of Gravity you are likely to find with an accuracy way aboveanything modellers are likely to require.
  • 20. Rene Jassien Looking through some old Model Aircraft Magazines (circa 1983) I came acrossan article by Rene Jassien a well known and very successful competition flyer in the 1980s Thisarticle gives a multi-factor method of calculating the Center of Gravity to very precise limits.Specifically designed for competition use where the C of G may be set back as much as 75%from the leading edge of the wings mean chord, or may be even BEHIND the trailing edge. Thisis due mainly by the use of lifting tailplanes set a long way back from the wings trailing edge. Asyou can see the theoretical values matched very precisely the actual settings on real welldesigned and successful models.Surprisingly when the dimensions of a Frontier Basic Trainer were fed in the solution was 24%,much in line with what one would use for such a model. To make the calculation very simple Ihave produced an Excel spreadsheet, just feed in the numbers and out pops the solution. Pleasenote that this formula and the models it was designed for are 25 years old and model design andtechnology may have moved on. Presumably the way aircraft fly has not, so the solutions maystill have real value.Barnaby Wainfan is not an author/designer who springs to mind but he has produced anexcellent book on "Airfoil Selection" and he has also produced some foils of his own, these arehard to find and may be listed as BW types or as Wainfan. The book can be obtained fromhttp://www.aircraftspruce.com navigate to Books/Videos then Books then Design. The AircraftSpruce Company site is a mine of information for modellers & full size builders/flyers alike.Well worth a visit.Model Aircraft Aerodynamics by Martin Simons is one of the best books on the subject.Motorbooks International Wisconsin USA ISBN 0-85242-915-0
  • 21. Q6. Explain Juran’s Quality Trilogy and Crosby’s absolutes of quality. List out thepillars of Total Productive Maintenance.Ans. Juran’s quality triologyJuran uses his famous Universal Breakthrough Sequence to implement quality programmes. Theuniversal breakthrough sequences are: 1. Proof of need: There should be a compelling need to make changes. 2. Project identification: Here what is to be changed is identified. Specific projects with time frames and the resource allocation are decided. 3. Top management commitment: Commitment of the top management is to assign people and fix responsibilities to complete the project 4. Diagnostic journey: Each team will determine whether the problems result from systemic causes or are random or are deliberately caused. Root causes are ascertained with utmost certainty. 5. Remedial action: This is the stage when changes are introduced. Inspection, testing, and validation are also included at this point. 6. Holding on to the gains: The above steps result in beneficiary results. Having records or all actions and consequences will help in further improvements. The actions that result in the benefits derived should be the norm for establishing standards.Juran has categorised cost of quality into four categories:1. Failure costs – Internal: These are costs of rejections, repairs in terms of materials, labour,machine time and loss of morale.2. Failure costs – External: These are costs of replacement, on-site rework including spare partsand expenses of the personnel, warranty costs and loss of goodwill.3. Appraisal costs: These are costs of inspection, including maintenance of records, certification,segregation costs, and others.4. Prevention costs: Prevention cost is the sequence of three sets of activities, Quality Planning,Quality Control, and Quality Improvement, forming the triology to achieve Total QualityManagement.
  • 22. Crosby‘s absolutes of quality:-Like Deming, Crosby also lays emphasis on top management commitment and responsibility fordesigning the system so that defects are not inevitable. He urged that there be no restriction onspending for achieving quality. In the long run, maintaining quality is more economical thancompromising on its achievement. His absolutes can be listed as under: 1. Quality is conformance to requirements, not ‗goodness‘ 2. Prevention, not appraisal, is the path to quality 3. Quality is measured as the price paid for non-conformance and as indices 4. Quality originates in all factions. There are no quality problems. It is the people, designs, and processes that create problemsCrosby also has given 14 points similar to those of Deming. His approach emphasises onmeasurement of quality, increasing awareness, corrective action, error cause removal andcontinuously reinforcing the system, so that advantages derived are not lost over time. He opinedthat the quality management regimen should improve the overall health of the organisation andprescribed a vaccine. The ingredients are:1) Integrity: Honesty and commitment help in producing everything right first time, every time2) Communication: Flow of information between departments, suppliers, customers helps inidentifying opportunities3) Systems and operations: These should bring in a quality environment so that nobody iscomfortable with anything less than the best.Quality Tools:- 1. Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible causes for an effect or problem and sorts ideas into useful categories. 2. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes. 3. Control charts: Graphs used to study how a process changes over time. 4. Histogram: The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. 5. Pareto chart: Shows on a bar graph which factors are more significant. 6. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a relationship. 7. Stratification: A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace ―stratification‖ with ―flowchart‖ or ―run chart‖).
  • 23. ASSIGNMENT 2Q1. Explain Logical Process Modelling and Physical Process Modelling. What are theingredients of Business Process?Ans. Logical Process ModelingLogical Process Modeling is the representation of a business process, detailing all the activitiesin the process from gathering the initial data to reaching the desired outcome. These are the kindsof activities described in a logical process model: Gathering the data to be acted upon Controlling access to the data during the process execution Determining which work task in the process should be accomplished next Delivering the appropriate subset of the data to the corresponding work task Assuring that all necessary data exists and all required actions have been performed at each task Providing a mechanism to indicate acceptance of the results of the process, such as, electronic "signatures"All business processes are made up of these actions. The most complex of processes can bebroken down into these concepts. The complexity comes in the manner in which the processactivities are connected together. Some activities may occur in sequential order, while some maybe performed in parallel. There may be circular paths in the process (a re-work loop, forexample). It is likely there will be some combination of these.The movement of data and the decisions made determining the paths the data follow during theprocess comprise the process model. The contains only business activities, uses businessterminology (not software acronyms, technical jargon, etc.…), completely describes the activitiesof the business area being modeled, and is independent of any individual or position working inthe organization. Like its sibling, Logical Data Modeling, Logical Process Modeling does notinclude redundant activities, technology dependent activities, physical limitations orrequirements or current systems limitations or requirements. The process model is arepresentation of the business view of the set of activities under analysis.Heretofore, many applications and systems were built without a logical process model or arigorous examination of the processes needed to accomplish the business goals. This resulted inapplications that did not meet the needs of the users and / or were difficult to maintain andenhance.
  • 24. Problems with an unmodeled system include the following: Not knowing who is in possession of the data at any point in time Lack of control over access to the data at any point in the process Inability to determine quickly where in the process the data resides and how long it has been there Difficulties in making adjustments to a specific execution of a business process Inconsistent process executionLogical Process Modeling PrimerModeling methods can be grouped into Logical and Physical types. Using a combination of thesemethodologies can produce the most complete model, and no single method is sufficient toadequately define your processes.Logical Process ModelingLogical process modeling methods provide a description of the logical flow of data through abusiness process. They do not necessarily provide details about how decisions are made or howtasks are chosen during the process execution. They may be either manual or electronic, or acombination of methods. Some of the logical modeling formats are: Written process descriptions Flow charts Data flow diagrams Function hierarchies Real-time models or state machines Functional dependency diagramsA function is a high-level activity of an organization; a process is an activity of a business area; asequential process is the lowest-level activity. Therefore:Functions consist of Processes. Functions are usually identified at the planning stage ofdevelopment, and can be decomposed into other functions or into processes. Some examples ofFunctions would include: Human Resource Management, Marketing, Claims ProcessingProcesses consist of Sequential Processes. Processes are activities that have a beginning and anend; they transform data and are more detailed than functions. They can be decomposed intoother processes or into Sequential Processes. Some examples of Processes would be: MakePayment, Produce Statement of Account, Verify EmploymentSequential Processes are specific tasks performed by the business area, and, like a process,transform data. They cannot be further decomposed. Examples of Sequential Processes are:Record Customer Information, Validate Social Security Number, Calculate Amount DueEach business activity in a logical process model is included in a decomposition diagram, given ameaningful name and described in detail with text. As in Logical Data Modeling, namingconventions are quite important in process modeling. Names for processes begin with a verb and
  • 25. should be as unique as possible while retaining meaning to the business users. Nouns used in theactivity name should be defined and used consistently. In a decomposition diagram, each levelcompletely describes the level above it and should be understandable to all appropriate businessusers. Physical Process ModelingPhysical modeling methods specify the topology (connectivity), data, roles, and rules of abusiness process. This model describes items such as: Work tasks to be completed during the process The order in which the tasks should be executed Data needed to start the process execution Data required to start and finish each work task Rules needed to determine routing through the process Exception handling techniques At least one defined business outcome Roles and permissions of each process participantThe physical model may not closely resemble the logical model, but they produce the sameoutcomes.Data-Driven Approach to Process DefinitionThis approach, most commonly used in relational and object-oriented analysis efforts, analyzesthe life cycle of each major data entity type. The approach defines a process for each phase orchange the data undergoes, the method by which the data is created, the reasons for the changeand the event that causes the data to achieve its terminal state. This method assures that all dataactions are accounted for and that there are meaningful associations between the data and itsprocesses. However, in a data-driven method, the logical data model must be completed beforethe process modeling and analysis can begin.Major points of interest in constructing a Logical Process Model are: The purpose of the process. Writing the purpose and referring to it frequently enables the analyst to recognize a step in the process that does not make sense in the context of the process. Who will participate in the process. The participants may be people, groups of people, or electronic applications. The order in which the steps of the process are done. The data you expect to be included in the process. There is an initial set of expected data, plus you should know what data you expect to be modified or added during the process. Part of this step is deciding which subset of the data is appropriate at each task in the process.
  • 26. Decisions that will be made during the execution of the process. These include decisions about which path the process should take, and whether all the required data is present at any given point in the process. The rules you will use to define the various parts of the process. Also, note any naming conventions that are important for the business. The disposition of the data at the end of the process. That is, will the data be retained or deleted? If you plan to store the data, where and in what form will the data be kept? Do future process-related reports need to access the data?There may be other elements in the business processes that need to be included in the model. Themore complete the model, the easier it will be to implement the software, and the moresuccessful the processes will be in producing the desired output.Process definition also helps you know when a process should be broken into smaller, sequentialprocesses. If the definition of a process is ambiguous or lengthy, it is usually a candidate fordecomposing into sequential processes. All functions are decomposed to processes, and allprocesses are ultimately decomposed into sequential processes.Constructing the Process Model DiagramsOnce the functions, processes and sequential processes have been identified and defined, theanalyst uses process modeling software to construct a set of diagrams to graphically represent thebusiness processes under scrutiny.In drawing the diagrams, consider including the following items: The starting point of the process. There could be more than one starting point, depending on the purpose and the operation of the process. If a process contains more than one starting point, include all of them. All tasks to be performed during the execution of the process. The order in which the tasks should be accomplished, including any tasks that may be performed in parallel. All decision points, both those having to do with choosing a path through the process and those that determine whether or not the process should continue. Any points at which the process path may split or merge. The completion point of the process. As a process may have multiple starting points, it can also have multiple completion points.You should also develop a means of identifying the data you expect at each point in the process.Be mindful of areas in the process where more than one task may be performed simultaneously.In these areas, you may need to show data being shared among participants, or different subsetsof the data being made available to each participant.Finally, include the ending point(s) of the process. This indicates that the process has beencompleted and that all the data generated by the process can be identified.
  • 27. Q2. Explain Project Management Knowledge Areas. With an example explain WorkBreakdown Structure.Ans. Project Management Body of KnowledgeA Guide to the Project Management Body of Knowledge (PMBOK Guide) is a book whichpresents a set of standard terminology and guidelines for project management. The FourthEdition (2008) was recognized by the American National Standards Institute (ANSI) as anAmerican National Standard (ANSI/PMI 99-001-2008) and by the Institute of Electrical andElectronics Engineers — IEEE 1490-2011.A Guide to the Project Management Body of Knowledge (PMBOK Guide) was first publishedby the Project Management Institute (PMI) as a white paper in 1987 in an attempt to documentand standardize generally accepted project management information and practices. The firstedition was published in 1996 followed by the second edition in 2000.[2]In 2004, the PMBOK Guide — Third Edition was published with major changes from theprevious editions. The latest English-language PMBOK Guide — Fourth Edition was releasedon December 31, 2008.Work on the Fifth Edition is in development. On February 17 2012 an Exposure Draft of thePMBOK Guide Fifth Edition was made available for review and comment[3]. The final version isexpected to be published in 2012/2013.The PMBOK Guide is process-based, meaning it describes work as being accomplished byprocesses. This approach is consistent with other management standards such as ISO 9000 andthe Software Engineering Institutes CMMI. Processes overlap and interact throughout a projector its various phases. Processes are described in terms of:Inputs (documents, plans, designs, etc.)Tools and Techniques (mechanisms applied to inputs)Outputs (documents, products, etc.)
  • 28. The Guide recognizes 42 processes that fall into five basic process groups and nine knowledgeareas that are typical of almost all projects.The five process groups are:InitiatingPlanningExecutingMonitoring and ControllingClosingThe nine knowledge areas are:Project Integration ManagementProject Scope ManagementProject Time ManagementProject Cost ManagementProject Quality ManagementProject Human Resource ManagementProject Communications ManagementProject Risk ManagementProject Procurement ManagementEach of the nine knowledge areas contains the processes that need to be accomplished within itsdiscipline in order to achieve an effective project management program. Each of these processesalso falls into one of the five basic process groups, creating a matrix structure such that everyprocess can be related to one knowledge area and one process group.The PMBOK Guide is meant to offer a general guide to manage most projects most of the time.There are currently two extensions to the PMBOK Guide: the Construction Extension to thePMBOK Guide applies to construction projects, while the Government Extension to the PMBOKGuide applies to government projects.
  • 29. Q3. Take an example of any product or project and explain Project Management LifeCycle.Ans. Product lifecycle managementIn industry, product lifecycle management (PLM) is the process of managing the entirelifecycle of a product from its conception, through design and manufacture, to service anddisposal. PLM integrates people, data, processes and business systems and provides a productinformation backbone for companies and their extended enterprise.PLM systems help organizations in coping with the increasing complexity and engineeringchallenges of developing new products for the global competitive markets.Product lifecycle management (PLM) should be distinguished from Product life cyclemanagement (marketing) (PLCM). PLM describes the engineering aspect of a product, frommanaging descriptions and properties of a product through its development and useful life;whereas, PLCM refers to the commercial management of life of a product in the business marketwith respect to costs and sales measures.Product lifecycle management is one of the four cornerstones of a corporations informationtechnology structure. All companies need to manage communications and information with theircustomers (CRM-customer relationship management), their suppliers (SCM-supply chainmanagement), their resources within the enterprise (ERP-enterprise resource planning) and theirplanning (SDLC-systems development life cycle). In addition, manufacturing engineeringcompanies must also develop, describe, manage and communicate information about theirproducts.One form of PLM is called people-centric PLM. While traditional PLM tools have beendeployed only on release or during the release phase, people-centric PLM targets the designphase.As of 2009, ICT development (EU-funded PROMISE project 2004–2008) has allowed PLM toextend beyond traditional PLM and integrate sensor data and real time lifecycle event data intoPLM, as well as allowing this information to be made available to different players in the totallifecycle of an individual product (closing the information loop). This has resulted in theextension of PLM into closed-loop lifecycle management (CL2M).
  • 30. Areas of PLMWithin PLM there are five primary areas; 1. Systems engineering (SE) 2. Product and portfolio management (PPM) 3. Product design (CAx) 4. Manufacturing process management (MPM) 5. Product Data Management (PDM)Systems engineering is focused on meeting all requirements, primary meeting customer needs,and coordinating the systems design process by involving all relevant disciplines. Product andportfolio management is focused on managing resource allocation, tracking progress vs. plan forprojects in the new product development projects that are in process (or in a holding status).Portfolio management is a tool that assists management in tracking progress on new products andmaking trade-off decisions when allocating scarce resources. Product data management isfocused on capturing and maintaining information on products and/or services through theirdevelopment and useful life.Introduction to development processThe core of PLM (product lifecycle management) is in the creations and central management ofall product data and the technology used to access this information and knowledge. PLM as adiscipline emerged from tools such as CAD, CAM and PDM, but can be viewed as theintegration of these tools with methods, people and the processes through all stages of aproduct‘s life. It is not just about software technology but is also a business strategy.
  • 31. For simplicity the stages described are shown in a traditional sequential engineering workflow.The exact order of event and tasks will vary according to the product and industry in question butthe main processes are:The reality is however more complex, people and departments cannot perform their tasks inisolation and one activity cannot simply finish and the next activity start. Design is an iterativeprocess, often designs need to be modified due to manufacturing constraints or conflictingrequirements. Where a customer order fits into the time line depends on the industry type andwhether the products are for example, built to order, engineered to order, or assembled to order.Phases of product lifecycle and corresponding technologiesMany software solutions have developed to organize and integrate the different phases of aproduct‘s lifecycle. PLM should not be seen as a single software product but a collection ofsoftware tools and working methods integrated together to address either single stages of thelifecycle or connect different tasks or manage the whole process. Some software providers coverthe whole PLM range while others a single niche application. Some applications can span manyfields of PLM with different modules within the same data model. An overview of the fieldswithin PLM is covered here. It should be noted however that the simple classifications do notalways fit exactly, many areas overlap and many software products cover more than one area ordo not fit easily into one category. It should also not be forgotten that one of the main goals ofPLM is to collect knowledge that can be reused for other projects and to coordinate simultaneousconcurrent development of many products. It is about business processes, people and methods asmuch as software application solutions. Although PLM is mainly associated with engineeringtasks it also involves marketing activities such as product portfolio management (PPM),particularly with regards to new product development (NPD). There are several life-cycle modelsin industry to consider, but most are rather similar. What follows below is one possible life-cyclemodel; while it emphasizes hardware-oriented products, similar phases would describe any formof product or service, including non-technical or software-based products:Phase 1: ConceiveImagine, specify, plan, innovateThe first stage in idea is the definition of its requirements based on customer, company, marketand regulatory bodies‘ viewpoints. From this specification of the products major technicalparameters can be defined. Parallel to the requirements specification the initial concept designwork is carried out defining the aesthetics of the product together with its main functionalaspects. For the industrial design, Styling, work many different media are used from pencil andpaper, clay models to 3D CAID computer-aided industrial design software.
  • 32. In some concepts, the investment of resources into research or analysis-of-options may beincluded in the conception phase – e.g. bringing the technology to a level of maturity sufficent tomove to the next phase. However, life-cycle engineering is iterative. It is always possible thatsomething doesnt work well in any phase enough to back up into a prior phase – perhaps all theway back to conception or research. There are many examples to draw from.Phase 2: DesignDescribe, define, develop, test, analyze and validateThis is where the detailed design and development of the product‘s form starts, progressing toprototype testing, through pilot release to full product launch. It can also involve redesign andramp for improvement to existing products as well as planned obsolescence. The main tool usedfor design and development is CAD. This can be simple 2D drawing / drafting or 3D parametricfeature based solid/surface modeling. Such software includes technology such as HybridModeling, Reverse Engineering, KBE (knowledge-based engineering), NDT (Nondestructivetesting), Assembly construction.This step covers many engineering disciplines including: mechanical, electrical, electronic,software (embedded), and domain-specific, such as architectural, aerospace, automotive, ...Along with the actual creation of geometry there is the analysis of the components and productassemblies. Simulation, validation and optimization tasks are carried out using CAE (computer-aided engineering) software either integrated in the CAD package or stand-alone. These are usedto perform tasks such as:- Stress analysis, FEA (finite element analysis); kinematics;computational fluid dynamics (CFD); and mechanical event simulation (MES). CAQ (computer-aided quality) is used for tasks such as Dimensional tolerance (engineering) analysis. Anothertask performed at this stage is the sourcing of bought out components, possibly with the aid ofprocurement systems.Phase 3: RealizeManufacture, make, build, procure, produce, sell and deliverOnce the design of the product‘s components is complete the method of manufacturing isdefined. This includes CAD tasks such as tool design; creation of CNC Machining instructionsfor the product‘s parts as well as tools to manufacture those parts, using integrated or separateCAM computer-aided manufacturing software. This will also involve analysis tools for processsimulation for operations such as casting, molding, and die press forming. Once themanufacturing method has been identified CPM comes into play. This involves CAPE(computer-aided production engineering) or CAP/CAPP – (production planning) tools forcarrying out factory, plant and facility layout and production simulation. For example: press-linesimulation; and industrial ergonomics; as well as tool selection management. Once componentsare manufactured their geometrical form and size can be checked against the original CAD datawith the use of computer-aided inspection equipment and software. Parallel to the engineering
  • 33. tasks, sales product configuration and marketing documentation work will be taking place. Thiscould include transferring engineering data (geometry and part list data) to a web based salesconfigurator and other desktop publishing systems.Phase 4: ServiceUse, operate, maintain, support, sustain, phase-out, retire, recycle and disposalThe final phase of the lifecycle involves managing of in service information. Providingcustomers and service engineers with support information for repair and maintenance, as well aswaste management/recycling information. This involves using tools such as Maintenance, Repairand Operations Management (MRO) software.There is an end-of-life to every product. Whether it be disposal or destruction of material objectsor information, this needs to be considered since it may not be free from ramifications.All phases: product lifecycleCommunicate, manage and collaborateNone of the above phases can be seen in isolation. In reality a project does not run sequentiallyor in isolation of other product development projects. Information is flowing between differentpeople and systems. A major part of PLM is the co-ordination of and management of productdefinition data. This includes managing engineering changes and release status of components;configuration product variations; document management; planning project resources andtimescale and risk assessment.For these tasks graphical, text and metadata such as product bills of materials (BOMs) needs tobe managed. At the engineering departments level this is the domain of PDM – (product datamanagement) software, at the corporate level EDM (enterprise data management) software, thesetwo definitions tend to blur however but it is typical to see two or more data managementsystems within an organization. These systems are also linked to other corporate systems such asSCM, CRM, and ERP. Associated with these system are project management Systems forproject/program planning.This central role is covered by numerous collaborative product development tools which runthroughout the whole lifecycle and across organizations. This requires many technology tools inthe areas of conferencing, data sharing and data translation. The field being product visualizationwhich includes technologies such as DMU (digital mock-up), immersive virtual digitalprototyping (virtual reality), and photo-realistic imaging.Product and process lifecycle management (PPLM)Product and process lifecycle management (PPLM) is an alternate genre of PLM in which theprocess by which the product is made is just as important as the product itself. Typically, this isthe life sciences and advanced specialty chemicals markets. The process behind the manufacture
  • 34. of a given compound is a key element of the regulatory filing for a new drug application. Assuch, PPLM seeks to manage information around the development of the process in a similarfashion that baseline PLM talks about managing information around development of the product.
  • 35. Q4. Explain PMIS. What is the difference between Key Success Factor (KSF) andKnowledge (K) Factor? Explain with example.Ans. PMIS Project management information systemA project management information system (PMIS) is a part of management information systems(MIS) and manages information of a project centric organization. These electronic systems "help[to] plan, execute, and close project management goals." PMIS systems differ in scope, designand features depending upon an organisations operational requirements. Key Success FactorsA key success factor is a performance area of critical importance in achieving consistently highproductivity. There are at least 2 broad categories of key success factors that are common tovirtually all organizations: business processes and human processes. Both are crucial to buildinggreat companies. Our focus is primarily on the human processes.To some extent, every human process is a key success factor. We talk about organizationalperformance, but in truth, its people who produce results. Human processes are constantlyevolving to fit new technologies and changing circumstances, but every once in a while, majorshifts occur that dramatically change whats required in each of the key success areas. We‘reexperiencing such a shift right now—moving from the industrial age to a knowledge-basedeconomy in a global marketplace.Globalization and information technology are placing different, challenging demands on leadersand organizations in virtually every key success area. Here are some highlights of these changes:Leadership"Command and control" leadership carried many organizations to very high levels of financialperformance during periods when competition was not so great and things didnt change veryfast, but its time has passed. The demands on the total organization are too great for a few peopleat the top to call all the shots.
  • 36. VisionA compelling vision is one of a companys greatest assets. It can be a magnet for attractingtalented people. It can serve as a beacon when people temporarily lose their way. It can be asource of energy and inspiration when people are encountering difficult obstacles. The CEO hasa primary responsibility to shape, communicate and sustain the vision, but this need not be asolitary task. In fact the more people who can be involved in shaping the vision, the better.CommunicationIn most organizations, there have been 3 pervasive patterns that will no longer work inknowledge-based organizations: (1) the primary flow of information was vertical—withindepartmental walls that were often impermeable, (2) information was hoarded and used as asource of power over others, and (3) people at the top often withheld crucial strategicinformation from those lower in the organization in the belief they couldnt handle it.TeamworkTeamwork is more crucial to producing results today than ever before, and at the same time, thevery nature of teams and their functions are changing rapidly. In the past it was typical to go forlong periods—even an entire career—as the member of one functional team. Today, membershipon more than one team is the norm, and it is unlikely that anyone entering the work force willremain on the first team they join for more than a year at most.Strategic AlignmentProcess reengineering and systems thinking are moving strategic alignment back to the top ofmany corporate agendas. It has become crystal clear that many of the greatest opportunities forproductivity improvement lie at the interfaces of the processes used to produce products andserve customers—and it is fruitless to excel in one process while lagging in others. In fact, itscounterproductive.Conflict ResolutionThe new economy increases the potential for conflict in virtually every area of organizationallife. Stakeholders are more informed and frequently more demanding. Employees are beingasked to do more with less—without the promise of job security that existed in the past. Aligningself-interests with corporate interests is not as simple as it used to be. Alliances, mergers, andacquisitions bring together different cultures and set the stage for major internal conflicts andpower struggles. Developing good conflict skills needs to be high on everyones personal andcorporate agendas.Embracing ChangeIndividuals and organizations that change before they have to will be the winners in globalcompetition. People vary a lot in their tolerance of change and in the degree to which theyactively seek change in their lives. It is difficult to grasp the potential for the continuingacceleration of change on a global scale. With more people having more access to moreinformation, it is reasonable to expect more innovation and more competition on a daily basis.Merely accepting change and learning to tolerate it will not be enough to successfully compete inthe next century. We must welcome change as our friend.
  • 37. Learning OrganizationLeaders and managers have always given lip service to the notion of people being their mostimportant asset and to the need for continuous training and development. In most companies,however, it has been no more than a notion. Most have not been consistent in this crucial area.The same company that will spend $5,000 a year to maintain a machine will not spend $500 todevelop an employee. Of all the key success areas, this one is changing the most. The futurebelongs to learners—to individuals that take responsibility for updating their skills andknowledge, to teams that consciously develop the deep dialogue that enables team members tolearn from one another, and to organizations that continuously improve their ability to transformdata into value-added, actionable information to serve customers.
  • 38. Q5. Explain the seven principles of supply chain management. Take an example of anyproduct in the market and explain the scenario of Bullwhip effect.Ans. The Seven principles of Supply Chain Management1. Segment customers based on their service needs:This is about getting to know how to best, most profitably service the key types of customers ofyour product and service offering.2. Customise your logistics network:Following on from determining which customer segments are most important to you, you willneed to customise the logistics network to the service requirements and profitability for each ofthem.3. Drive operations from demand:Listen to market signals and align demand planning to ensure optimal resource allocation.4. Differentiate product closer to the customer:Differentiate product and services closer to the customer to speed conversion across the supplychain.5. Source strategically:Manage sources of supply strategically to reduce the total cost of acquiring and owningmaterials and services.6. Develop a supply chain-wide technology strategy:Support multiple levels of decision-making and give a clear view of the flow of products,services and information.7. Use supply chain spanning performance measures:Gauge collective (that is, together with your trading partners) success in reaching the end-usereffectively and efficiently.
  • 39. Extremely important it is to know what your customers really need and – more importantly -what they are willing to pay for. This information allows you to separate them into distinctcategories in terms of their demand patterns and service requirements, and then build yoursupply chain strategy according to their real needs. This principle, customer segmentation, is thefirst step in creating an efficient supply chain for your organisation. Getting to work with theseven principles of Supply Chain Management By Barry Elliott, partner, Oliver Wight AsiaPacific Customise your logistics network So, the next challenge is to use this newfoundinformation to create an efficient and complete fulfillment process, starting from the time of aclient‘s query and continuing through to the final collection of payment for a purchase.It seems to us that the most obvious place to concentrate is on configuring your logisticsnetwork for the segments that you have identified. The range of possibilities is as varied as thetypes of businesses that exist, as shown by the following examples of three very differentsegments:• Sophisticated organisation with high- volume, high frequency of order and delivery,reasonably few products, and little in the way of value added services required; example: thepackaging purchases by bottlers of soft drinks• Smaller organisations, low-volume, low frequency of order and delivery, probably a widerange of products, and these customers may find value added services (like Vendor ManagedInventory) appealing; example: pharmaceutical purchases by a small clinic• Firms who run very, very large but infrequent major events; example: brewers who supply toclients in the sports or entertainment industry It becomes quite obvious that these three kinds ofcustomers need to be serviced in very different ways, for both their benefit and yours. Since it isquite likely that you cannot afford to set up whole, independent supply chains for each of them,how can your same facilities, procedures, people, and systems deal really effectively andefficiently with such extremes?The options for creating effective fulfillment are often a continuation of the workingrelationship you have with the customer, where dialogue helps create a win-win situation.Here are the key foundations that would lead your organisation to excel in the fulfillmentprocess:• Manufacturing: manufacturing is driven by time, efficiency, and customer needs. Smallproduction volumes can be produced at low cost, provided that manufacturing options areunderstood and kept opened and flexible with in-house or outsourcing. Continuous monitoringof the marketplace allows you to select the best option that suits your environment the most• Inventory: implementation of a joint manufacturer/customer policy for inventory such as JustIn Time (JIT) or Vendor Managed Inventory (VMI) is encouraged. Inventory should bemanaged in real time and known at all times
  • 40. • Warehousing: the warehousing network is fully aligned to meeting customer needs at thelowest delivered cost and customers can select their own delivery options on each order• Transportation: proactive management of mixed-mode transportation (air, ship, road) withtradeoffs in inventory, freight costs and customer service should be fully understood.Transportation costs are optimised across the entire supply chain. Delivery across suppliers,manufacturers and distributors are coordinated andleveraged. Customer orders from different divisions are merged efficiently. Warehouse cross-docks are used. Use of the third party logistics providers allows full truckload economicscompared with less-than-truckload (LTL) from individual manufacturers• Performance monitoring: perfect order metrics are used and monitored. Delivery/orderaccuracy are recorded and used proactively by customer service personnel. Orders are generatedcentrally by the manufacturer and reviewed by the customer as part of the Vendor ManagedInventory Flexibility and responsiveness to the specific needs of the client of yourmanufacturing system, inventory management, and logistics network are the key drivers of theefficient fulfillment process. With these indispensable factors, you can have ―virtual‖ separatesupply chains for your customers in all different segments. Drive operations from demandLooking at this next principle, the obvious question is ―what do we mean by driving operationby demand - isn‘t that what everybody normally does? What else could be used to plan thewhole business if not needs from the customers?‖ While most companies think that they areplanning and driving their business from customer demand, it is more likely that it is actuallythe demand ‗forecast‘ that is being used; and there is one thing about the demand forecast thatholds steady – it is always wrong, either by a few degrees or by leaps and bounds. So, how wellcould we operate the business or allocate our resources if we use the demand forecast figure, thealways-wrong figure, instead of using the real demand? How would you know if you currentlyplan your operation based on the forecast? Following are a few key things that you may haveexperienced; these are NOT good things:• There is a supply chain for each business unit. Supply chain units within the company planand forecast independently• Sales forecasting is based on historical customer sales and spreadsheet analysis. Manyforecasts are developed by the different groups in the supply chain - there is no one commonforecast that drives all supply chain functions• Salespeople are responsible for developing the sales forecasts but they are rewarded on theirability to exceed the forecast• Understanding of customer markets is predominantly based on sales history and generalmacro-economic measures• Production overstretches to respond to every order. Emergency orders become normalpractice. A ‗big-brain planner uses experience to plan manually. In times of shortage, customerorders are allocated on a ‗first come, first served‘ basis with some prioritisation of key accountsAll of us know that, if we could, we should respond immediately to customer demand and usethat information to trigger our planning process, sourcing process, and resource allocation, backalong our supply chain.
  • 41. THANK YOU

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