Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

0

Share

Download to read offline

Mb0044

Download to read offline

Master of Business Administration- MBA Semester 2
MB0044 – Production and Operations Management

Sikkim manipal fall assignment

Related Books

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

Mb0044

  1. 1. Q1. What is productivity? Write a brief note on capital productivity A.1 Productivity is a measure of the efficiency of production. Productivity is a ratio of production output to what is required to produce it (inputs). The measure of productivity is defined as a total output per one unit of a total input. A production model is a numerical expression of the production process that is based on production data, i.e. measured data in the form of prices and quantities of inputs and outputs. Productivity is necessary to identify the entity it belongs to. Such an entity is defined as production process. It goes without saying that productivity is a critical factor of production process in one way or another. To define the way is the object of this article. The benefits of high productivity are manifold. At the national level, productivity growth raises living standards because more real income improves people's ability to purchase goods and services, enjoy leisure, improve housing and education and contribute to social and environmental programs. Productivity growth is important to the firm because more real income means that the firm can meet its (perhaps growing) obligations to customers, suppliers, workers, shareholders, and governments (taxes and regulation), and still remain competitive or even improve its competitiveness in the market place. CAPITAL PRODUCTIVITY Capital productivity characterizes the efficiency with which fixed capital stock is used. It is commonly employed in economic analysis and in the formulation of production plans and plans for capital expenditures, both for the national
  2. 2. economy as a whole and for individual sectors, production associations, and enterprises. Data on the gross social product and on national income (from productive activities) are used in calculating capital productivity for the national economy as a whole; for calculating the productivity of individual sectors, data on gross (commodity) or net output are used. In sectors where the output is homogeneous (petroleum, coal, cement), physical units are sometimes used in the calculations. Capital productivity is calculated on the basis of the balance valuation of the fixed production assets (depreciation costs included), using either the average value over the year or the value as of the end of the year. Capital productivity is the reciprocal of the capital-output ratio. Capital productivity differs from one branch of material production to another. Thus, the national income produced in current prices per ruble of fixed production assets in the USSR in 1975 amounted to 45 kopeks in the national economy as a whole, 50 kopeks in industry, 36 kopeks in agriculture, 13.4 kopeks in transport and communications, and 1.18 rubles in construction. Productivity is influenced by a number of factors. Its growth depends primarily on the level of technology, the organizational and technical measures employed in managing production capacities, and the proportion of capital investment earmarked for reconstruction and retooling. Many factors act to lower productivity. For example, the accelerated development of industrial branches with relatively low capital productivities may lower productivity for industry as a whole. The expansion of production in the country’s eastern and northern regions has the same effect because the cost of fixed capital stock is between 30 and 50 percent higher there than in the European part of the USSR. Various purification
  3. 3. facilities included in industrial projects which do not directly influence the volume of production nevertheless raise the total cost of the fixed capital stock, thereby lowering capital productivity. The working of mineral deposits at greater depths requires additional expenditures in fixed capital, again leading to lower productivity. The level of capital productivity and the pattern of changes in productivity depend in large measure on technical and economic indicators describing the utilization of machinery and equipment and especially on increases in the equipment shift index. Capital productivity has fluctuated over the years because it is simultaneously influenced by a variety of factors. Thus, capital productivity in industry in the USSR rose through the 1950’s and declined between 1961 and 1965. During the eighth five- year plan (1966–70), productivity showed no change with regard to gross output but increased with regard to net output. During the ninth five-year plan, there was a slight decline (by 3 percent), caused primarily by construction programs launched in the country’s eastern and northern regions, by the deterioration of geological and mining conditions in the existing mineral deposits, and by difficulties encountered in supplying light industry and the food processing industry with agricultural raw materials because of extremely adverse weather conditions over a number of years. Improved use of fixed capital stock is reflected not only in higher capital productivity but also in higher labor productivity, lower production costs, and improved product quality. Thus, if outlays for additional fixed capital stock can be recouped in the period prescribed by norms, the investment is economically warranted even if capital productivity is slightly lowered. The raising of capital productivity leads to increased efficiency of production. Five-
  4. 4. year plans make provision for better use of fixed capital stock and for the development and implementation of programs to raise capital productivity in various sectors of the national economy, at enterprises, and in organizations Q2. Describe briefly the automated flow lines. A2. When several automated machines are linked by a transfer system which moves the parts by using handling machines which are also automated, we have an automated flow line. After completing an operation on a machine, the semi-finished parts are moved to the next machine in the sequence determined bythe process requirements a flow line is established. The parts at various stages from raw material to ready for fitment or assembly are processed continuously to attain the required shapes or acquire special properties to enable them to perform desired functions. The materials need to be moved, held, rotated, lifted, positioned etc. for completing different operations. Sometimes, a few of the operations can be done on a single machine with a number of attachments. They are moved further to other machines for performing further operations. Human intervention may be needed to verify that the operations are taking place according to standards. When these can be achieved with the help of automation and the processes are conducted with self regulation, we will have automated flow lines established. One important consideration is to balance times that different machines take to complete the operations assigned to them. It is necessary to design the machines in such a way that
  5. 5. the operation times are the same throughout the sequence in the flow of martial.In fixed automation or hard automation, where one component is manufactured using several operations and machines it is possible to achieve this condition-or very nearly.we assume that product life cycles are sufficiently stable to invest heavily on the automated flow lines to achieve reduced cost per unit. The global trends are favouring flexibility in the manufacturing systems. The costs involved in changing the setup of automated flow linesare high. So,automated flow lines are considered only when the product is required to be made in high volumes over a relatively long period. Designers now incorporate flexibility in the machines which will take care of small changes in dimensions by making adjustments or minor changes in the existing machine or layout. The change in movements needed can be achieved by programming the machines Provision for extra pallets or tool holders or conveyors are made in the original design to accommodate anticipated changes. It is not possible to think of inventories in a flow line. Bottlenecks cannot be permitted. By necessity, every bottleneck gets focussed upon and solutions found to ease them. Production managers see bottleneck as an opportunity to hasten the flow and reduce inventories. However, it is important to note that setting up automated flow lines will not be suitable for many industries. Q3. What are the factors that influence the plant location? A.3 There a huge number of factors that influence the location of plant, such as:
  6. 6. 1. Local Government Grants to tempt companies to move to deprived areas; 2. Location near Customer or Supplier Bases or Natural Resources; 3. Location near local talent and expertise (employees); 4. Local Infrastructure (roads/rail/airports); 5. Location near Cultural Centres (Cities, Museums, Nightlife, Restaurants etc); 6. Location near areas of natural beauty; 7. Location near good schools (education); 8. In certain instances, locations not near residential areas; 9. The impact/disruption to the locals, by bringing the new business to the area; 10. The benefits to the employees (e.g. sport centre membership etc) Q4. Describe the seven basic quality control tools. A.4 The seven basic quality control tools are as below : 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. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes.
  7. 7. Control charts: Graphs used to study how a process changes over time. Histogram: The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. Pareto chart: Shows on a bar graph which factors are more significant. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a relationship. 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”). Q5. Define project management. Describe the five dimensions of project management. A.5 Project management is the discipline of planning, organizing, securing, managing, leading, and controlling resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time- constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations), which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different,
  8. 8. and as such requires the development of distinct technical skills and management strategies. The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. Typical constraints are scope, time, and budget.[1] The secondary—and more ambitious—challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives. Project management can be considered to have five dimensions which are necessary to be managed. The dimensions are Features, Quality, Cost, Schedule, and Staff. The five dimensions of project management are dependent of one another. For example, if you add staff, the schedule may shorten and the cost might increase. The trade-offs among the five dimensions of project management are not linear. For each project, you need to decide which dimensions are critical and how to balance the others so as to achieve the key project objectives. Each of the five dimensions can take one of three roles on any given project: 1. Drive: A driver is a key objective of the project. It has low flexibility towards the project team. 2. Constraint: A constraint is the limiting factor beyond the control of project team. It gives the project team virtually no flexibility.
  9. 9. 3. Degree of Freedom (DoF): Any project dimension that is neither a driver nor a constraint becomes a degree of freedom. A degree of freedom provides wider latitude towards the project team for balancing that dimension against the other four. Q6. Write a brief note on Just-In-Time (JIT).Answer: A.6 Just-In-Time (JIT) manufacturing is a process by which companies don't keep lots of excess inventory; instead, theymanufacture a product as an order comes in. It is a management philosophy of continuous and forced problem solving.The objective of JIT manufacturing system is to: Eliminate waste that is, minimise the amount of equipment, materials, parts, space, and worker’s time, which adds a great value to the product Increase productivityJIT means making what the market demands when it is in need. It is the most popular systems that incorporate the genericelements of lean systems. Lean production supplies customers with exactly what the customer wants, when the customerwants, without waste, through continuous improvement.Deploying JIT results in decrease of inventories and increases the overall efficiencies. Decreasing inventory allows reducingwastes which in turn results in saving lots of money. There are many advantages of JIT. JIT:
  10. 10. Increases the work productivity Reduces operating costs Improves performance and throughput Improves quality Improves deliveries Increases flexibility and innovativeness For industrial organisations to remain competitive, cost efficiencies have become compulsory. JIT helps in this process. It isextended to the shop floor and also the inventory systems of the vendors. JIT has been extended to mean continuousimprovement. These principles are being applied to the fields of Engineering, Purchasing, Accounting, and Data processing.However, for organizations to completely implement JIT manufacturing system, they need to have a proper commitmentalong with the following basic facilities - proper material, quality, equipment, and people involvement. Q6. What is value engineering? Explain its significance.Answer: A.6 Value Engineering (VE) or Value Analysis is a methodology by which we try to find substitutes for a product or anoperation.The concept of value engineering originated during the Second World War. It was developed by the General ElectricCorporations (GEC). Value Engineering has gained popularity due to its potential for gaining high Returns on Investment (ROI).This methodology is widely used in business re-engineering, government projects, automakers, transportation anddistribution, industrial equipment, construction, assembling and machining processes, health care and environmentalengineering, and many others. Value
  11. 11. engineering process calls for a deep study of a product and the purpose for which it isused, such as, the raw materials used; the processes of transformation; the equipment needed, and many others. It alsoquestions whether what is being used is the most appropriate and economical. This applies to all aspects of the product. Value Engineering helps your organization in: Lowering O & M costs Improving quality management Improving resource efficiency Simplifying procedures Minimizing paperwork Lowering staff costs Increasing procedural efficiency Optimizing construction expenditures Developing value attitudes in staff Competing more successfully in marketplace Value Engineering helps you to learn how to: Improve your career skills Separate "Symptoms" from "problems" Solve "root cause" problems and capture opportunities Become more competitive by improving "benchmarking" process Take command of a powerful problem solving methodology to use in any situation.

Master of Business Administration- MBA Semester 2 MB0044 – Production and Operations Management Sikkim manipal fall assignment

Views

Total views

336

On Slideshare

0

From embeds

0

Number of embeds

1

Actions

Downloads

3

Shares

0

Comments

0

Likes

0

×