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Master of Business Administration- MBA Semester 4
OM0017-Advanced Production and Planning Control
(Book ID: B2010)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10
marks 6 X 10=60.
Q1. Explain Descriptive and Normative Theories of production planning and control.
Answer. The scope of production planning and control is extended to almost all the operations in the
production process. Its scope is discussed as follows:
Liaison with purchase department for efficient and effective procurement of inputs
Liason with marketing department to determine the nature and magnitude of the output
To plan the layout of the operations, indicating in detail the places/points in the system where
various production activities/operations are to be performed
Establishment of time schedules for various stages/levels of production by setting up necessary
Q2. Explain the concept of Master Schedule. Also define Time Horizon of Master Schedule.
Answer. Master schedule is the presentation of the production schedule at the summary level, depicting
various key elements, resulting from the process of master scheduling. In simple words, it can also be said
that the master schedule is a plan or format that integrates and relates other production processes such as
demand management, inventory planning and capacity planning. It is presented in the form of master
schedule grid.
Q3. Write short notes on the following:
a. Hybrid system.
b. What-if stimulation.
c. Turnkey or off-the-shelf solutions.
2. d. Management by Objectives (MOB).
Answer. a. The two types of systems to develop production planning and control process are push or pull.
MRP (Material Requirements Planning) is a type of push system and kanban is a type of pull system. In
simple words, push and pull can be described as the movement of a product in the system. Push defines
production on the basis of forecasted demand, while pull depends upon actual demand.
Q4. Define Production planning. Briefly explain various levels of Production Planning.
Answer. Alford and Beatty define production planning as “The Technique of foreseeing or picturing ahead,
every step in a long series of separate operations, each step to be taken in the right place, of the right
degree and at the right time and each operation to be done at maximum efficiency”. Production planning
is a pre-operation activity. Production planning is basically about making managerial decisions on
resources and operations to meet the desired organisational goals, whereas production control is all about
Q5. Differentiate between Mass Production and Batch Production.
Answer. Mass Production
A term sometimes used in the popular press for a line process that uses the make-to-stock strategy. Mass
production is the process of producing similar types of goods in large numbers. It often uses assembly line
technology for production. Mass production is a low-cost, time-saving process and produces standardised
products. In addition, mass production allows a manufacturer to produce a larger quantity using lesser
workforce, so that the goods can be bought at lower costs. Mass production takes advantage of both
highly-skilled and un-skilled labour. Highly-skilled labour usually design a product along with setting up a
Q6. Write short notes on the following:
a. Benchmarking
b. Budgeting
c. Target Costing
d. Kaizen Costing
e. Cost Centre
Answer. a. Benchmarking can be defined as the process of identifying certain practices or standards within
and outside the organisation. These set practices or standards are referred as benchmarks and are used
for comparison of on-going business activities and costs. The comparison with past figures helps in keeping
check on various processes that affect and influence different costs.
b. In simple words, budgeting can be defined as the process of implementing the budget. For a business,
budgeting is about spending less than what is being earned as profit. To control cost, it is essential for an
3. organisation to have a budget and its successful implementation. Budgeting helps a business in managing
both short-term and long-term processes, preventing crisis, earning maximum profits and planning major
Spring-2016
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