Assignment 1 opm
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  • 1. Institute of Business & Management UET lhrAssignment#1 Operations ManagementSubmitted by: Muhammad Akmal Roll #: EX/ SPR 11003Answer to Q#1Processes for the Production of AutomobileCompany Millat Tractors Limited 1. Vendor Selection 2. Order Placing 3. Material receiving from vendors 4. Machining 5. Quality Inspection 6. Segregation of material 7. Cycle wise issuance of material on lines 8. Assembling 9. Painting 10. Quality checking 11. Assembling 12. Quality assurance on lines 13. Pre –Delivery inspection of final product 14. Handing over to Marketing Department
  • 2. Inputs Value Outputs Addition 1. Machining 1. Tractors 1. Human resource 2. Assembling 2. Fork lifters 2. Raw material 3. Painting 3. Prime 3. Machines/presses 4. Functionality movers 4. SOPs/Work testing 4. Generators Instructions 5. Tools & Equipment 6. Financial resourcesAnswer to Q#2The Critical Decision areas in my company for operationsManager How much to plan? How much inventory to be acquired? How much workforce is required for certain production target? How to handle Labor issues? Who to downsize if required
  • 3. Processes Decisions RequiredForecasting How much need to be produced in a particular Year & Month (Master Scheduling)Vendor Selection Which vendor has capacity to meet the industrial Requirements? Who can produce Quality components?Order Placing for Raw- How much material need tomaterial be purchased for particular time period to keep the optimum inventory levelMachining Which machinery is required to meet critical specifications? How to control the Errors or failure rateQuality Inspection Which components need to be rejected and which to be selected, How much sampling size should be? What should be the Quality acceptance level
  • 4. Answer to Q#3: Position in terms of Cost:Lot of cost is involved in manufacturing of the product. Whichcannot be controlled but cost associated with failures andmishandling can be controlled which is high Position in terms of speed: Delivery time is 2 to 3 Months Position in terms of Quality: Better than local competitors but not good in comparison with the international competitors. Also warranty claims are too high which shows the poor quality. Position in terms of Flexibility: Highly flexible in terms of changing the production requirements