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The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
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MS-53 Jan June 2017
1. Sample MS-53 Jan June 2017
Course Code MS - 53
Course Title Production/Operations Management
Assignment Code MS-53/TMA/SEM - I/2017
Assignment Coverage All Blocks
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School of Management Studies
INDIRA GANDHI NATIONAL OPEN UNIVERSITY
MAIDAN GARHI, NEW DELHI – 110 068
2. 1. A principle feature of JIT and TQM is large-scale employee involvement and employee
empowerment. What do these concepts mean? Explain with suitable examples.
Employee involvement is a vital -------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------- of various quality initiatives in different companies and organizations.
Problem-solving and process improvements are crucial to the company's quality initiatives, and demonstrate proactive
actions are being taken to prevent problems. Total Quality Management (TQM) is a ----------------------------------------------
-------------------------------------------------------------------------------------------------------------------------of the business. TQM
involves a number of concepts like "Just-In-Time", quality circles, employee involvement, continuous process improvement,
empowerment, and world-class quality. The -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------and thus enhance customer satisfaction.
EMPLOYEE INVOLVEMENT JIT AND TQM PROCESS
One of the important concepts of TQM is employee involvement. ----------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------just follow them to accomplish
their jobs. This top-down -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------times from quality control in manufacturing or other businesses for the
ever-changing needs of the customer.
Processes cannot be improved if employees are either not fully involved or fully empowered. Employee involvement means
each employee contributes toward achieving the -------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------involvement. Employee empowerment means
authorization of employees to identify and solve problems hindering quality efforts. Process owners need to be empowered
by the management to recognize and solve --------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------, the process owners must be empowered to use
organizational resources for eliminating such problems. Similarly -----------------------------------------------------------------------
-------------------------------------------------------------------- control tools being effectively used for quality improvement.
To facilitate employee involvement we need to ---------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------can initiate formal suggestion schemes which can
help them in listening to their employees. These --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------. Some ideas may not find approval for
implementation. However, it is important for the management to get back to the ------------------------------------------------------
------------------------------------------------------------------------------------ suggestions and getting back to them with a feedback
is a must for ensuring employee involvement.
Employee involvement also requires ---------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------their empowerment effectively. It is the management's
responsibility to define the common vision for the organization so that empowered employees know what their roles are in
achieving these objectives. Empowered employees must be ------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------to help them perform better. There could
be improvement concepts that cannot be approved by the management. In such cases the management must give reasons as
to why it cannot be implemented.
Thus employee involvement and --------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------and tapped for ensuring the success of continuous improvement
programs. Top management --------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------can take up greater responsibility.
Employee involvement is very -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------their work areas. These suggestions could relate to improvements in
the job, the product, the work atmosphere ---------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------and decision making processes.
Some of the most successful companies ------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------, continuous learning and flexibility.
3. EMPLOYEE EMPOWERMENT
In addition to employee involvement, employee empowerment is ----------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------decisions the "right" ones. When
done right, the results are heightened productivity and a better quality of work life.
While the actual practice -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------job enrichment. Job enlargement involves changing the scope of the job
to include a greater portion of the horizontal process. Job enrichment involves ------------------------------------------------------
-----------------------------------------------------------------------------------------------levels of the organization.
Benefits Employee Involvement & Empowerment
While both employee involvement and -------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------of employee involvement and empowerment are enhanced
morale, more productivity, healthier co-worker relationships and creative thinking.
1) Improved Morale. Involving employees in ----------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------morale at large. When employees are treated as an
asset and their input is given consideration, confidence increases among every team member, and the organization sees
significant gains in different facets such as --------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------, the more experienced they become. This makes them
mentors to new employees and therefore indispensable to managerial staff.
2) Increased Productivity. Both quality ----------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------, and foster a stronger work ethic. When employees are
given independence and expected to be more self-sufficient, they -----------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------staff for direction. This allows
managerial-----------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------minimizes productivity.
3) Team Cohesion. Employee -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------better working relationships. Each sees the other as mutually
benefiting from -----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------that reliance laterally to co-workers.
4) Innovation. Employee empowerment -----------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------obstacles arise. As the employee meets particular challenges
or finds improvements in policies, ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------solution not otherwise considered by staff.
Employee Involvement – Case Study Example at Columbia Aluminum
Structured employee involvement has the -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------pool of talent and insight that is an organization’s
internal human capital. Teams (often cross-------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------this article is to describe the role that employee
involvement played in resurrecting a large aluminum smelter in a rural town.
Background
Columbia Aluminum was situated on the ----------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------managerial practices it went through numerous owners and
was shut down until Ken Peterson reopened it. Peterson had an “------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------the same direction as with previous
owners. After deciding that external help would be needed, Peterson submitted a request for proposals and hired the
consulting firm Scontrino-Powell.
4. Path Forward
After conversations with Peterson -------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------implement a formal and structured employee involvement process
designed around the framework ---------------------------------------------------------------------------------------------------------------
---------------------------------------------------------- features of the approach Columbia Aluminum adopted.
First, they established a large steering committee of --------------------------------------------------------------------------------------
------------------------------------------------------------------------------------committee on Employee Involvement and Continuous
Process Improvement. After this base of knowledge was developed, it was important that the steering committee also get
firsthand exposure to the concepts ------------------------------------------------------------------------------------------------------------
------------------------------------------------------------and employee involvement.
After the site visits, the steering committee decided ----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------the training and site visits. The employee
involvement system included the following:
1. Training: Supervisors and managers participated in five days of training on Employee Involvement and Process
Improvement. The training increased buy-----------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------as they became involved in process
improvements.
2. Facilitation: Employee Facilitators -----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------with the right set of skills and experience
were selected and trained to become facilitators.
3. Problem-Solving Teams: These teams -------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------, and implement them.
Problem-Solving Teams
Problem-solving teams were the main vehicle through ------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------, problem-solving teams…
Were ---------------------------------------------------------------------------------------------------------line staff
Participated in 20 -------------------------------------------------------------------------------- based on Lean concepts
Had full union ----------------------------------------------------------------------- also union members)
Always had ------------------------------------------------------------------------------- to each problem-solving team)
Were ---------------------------------------------------------------------------------------------------------- members
Designed their own team names --------------------------------------------------------------------- logos and names)
Met ---------------------------------------------------------------------------------------------------------------- basis
Were given the ------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------taking on more challenging areas)
Focused their efforts on --------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------, and increase productivity
After designing ---------------------------------------------- (it took an average of 12 meetings to complete a project)
Were rewarded for the ---------------------------------------------------------------- as engraved pocket knives)
Were not formally evaluated on ---------------------------------------------------------------------------------- were formally
evaluated (this ----------------------------------------------------------------------- leadership accountability)
Results
The results were positive and dramatic. -----------------------------------------------------------------------------------------------------
-------------------------------------------------------result of their hard work, the following outcomes were achieved:
Productivity shot up 6% -------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------- and waste reduction)
Return on -------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------teams)
Product quality ------------------------------------------------------------------------------ than competitors
An employee stock ----------------------------------------------------------------- share in these gains
5. There was a ------------------------------------------------------------------------------ (fewer accidents)
Labor------------------------------------------------------------------------ dramatically
At Columbia --------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------guidance of the consultants. What could your organization
achieve if it really leveraged the insight and talent of its employees?
2. What are the various methods of judgmental forecasting? Comment on possible errors that are
associated with judgmental forecasting. Suggest some do’s and don’t for carrying out judgmental
forecasting.
Judgmental forecasting methods ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------data or during completely new and unique market conditions.
Judgemental (subjective) methods are those in which the process used to analyze the data has not been well specified. They
may use objective data or subjective ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------. Various methods of judgemental forecasting are listed below:
1) Personal -----------------------------------
In individual personal interviews, an interviewer talks with one user for 30 minutes to an hour. Individual interviews allow
you to probe their attitudes, beliefs, desires, and experiences to get a deeper understanding of the users who come to your
site. You can also ask them to rate or rank choices for site content. These interviews can take place face-to-face, by phone or
video conference, or via instant messaging system.
Ideally, interviews take place at the start of the development cycle while you are developing or reviewing the objectives and
goals of the site.
2) -----------------------------------------
A telephone interview is one of the -----------------------------------------------------------------------------------------------------------
-------------------------------------------------interviewers to contact and gather information from possible respondents.
The telephone judgemental forecasting approach is usually utilized when there is a need to collection information via public
opinion polling. In other words, ---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------in the sample once they agree to participate in the phone survey.
3) Traditional Meetings
Traditional meetings are an ---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------solutions regarding forecasting which help in taking decisions.
4) ------------------------- Meetings
Structured meetings are -------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------and enthrals judgemental forecasting.
5) Role Playing
Role-playing refers to the -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------of psychology, the term is used more loosely in four senses:
To refer to the playing of ----------------------------------------------------------------------------------------- setting;
To refer to ------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------genres of practice;
To refer to a wide --------------------------------------------------------------------------------------- and more;
To refer -------------------------------------------------------------------------------------------.
6) -------------------------------
6. You may also use mail --------------------------------------------------------------------------------------------------------------------------
---------------------------------------------you to probe for details and reasons behind answers that users give on a survey
7) Delphi
The RAND Corporation developed -----------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------and unaware of each other. The results of the first questionnaire
are compiled, and a second ---------------------------------------------------------------------------------------------------------------------
-----------------------------------------and requestioning continues until the researchers have a narrow range of opinions.
8) Cross- Impact Theory
Cross-Impact methods are standard tools ----------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------and are based on expert judgments about systemic
interactions. Cross-Impact methods are mostly used for analytical tasks which do not allow the use of theory-based -----------
------------------------------------------------------------------------------------------------------------------------------------------------------
------------------systems analysis.
The essentials of a new Cross-Impact --------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------discourses due to its transparent analytical logic. Due to its
mathematical qualities it is also particularly well suited for the analytical integration of calculable system parts. An
application of CIB to a project on the ---------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------the theory of dynamic systems, are discussed. This explicates
that CIB scenarios correspond to the solutions of slowly time-varying pair-force systems.
9) System Dynamics
“System dynamics is a perspective ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------that enables us to build formal computer simulations of complex
systems and use them to design more effective policies and ------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------slowed so we can experience the long-
term side effects of decisions, speed learning----------------------------------------------------- and strategies for greater success.”
The System Dynamics (SD) --------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------, and other discrete items are represented in SD models by their
quantities so they lose any individual properties, -------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------, you can always re-conceptualize all or part of your
model using Agent Based or Discrete ---------------------------------------------------------------- the AnyLogic environment.
Various types of errors are associated with judgemental forecasting. But the most serious ones are
1) Bias, and
2) Anchoring
Bias is caused by ---------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------from the situation, the most serious form of bias is caused by the judge. Judges
often mention what they hope should happen -----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------associated with judgemental forecasting.
Anchoring is the tendency to start -------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------for carrying out judgemental forecasting:
Do’s and don’ts for carrying out judgmental forecasting-
1) Don't use ---------------------------------------------------------------------------------------------------------- exercise.
2) decompose the problems whenever -------------------------------------------------------------- judges have different information.
3) Provide ------------------------------------------------------------------------------------------------------- to the judge.
4) People think in --------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------the exponential growth.
5) Present historical ----------------------------------------------------------------------------------------------- form.
7. 6) Include -----------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------else would react.
7) Use eclectic --------------------------------------------------------------------------------------- while attempting to make a forecast.
8) Assessment of uncertainty ------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------- different judgmental forecast
9) Bootstrapping ------------------------------------------------------------------------------------------------------------- of the judges.
These methods are of two types:
(i) Direct ---------------------------, and
(ii) Indirect -----------------------------------
Direct Bootstrapping ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------decisions. In such cases, the judges may be asked to think aloud us making the
forecast. The --------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------- that can be 'Yes' or 'No’.
In directed -----------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------have been found to be useful –
(a) For ------------------------------------------------------------- forecasts,
(b) As a first step --------------------------------------------------------------------- forecasting,
(c) As a quantitative model ----------------------------------------------------- data can be created, and
(d) As a tool to understand the rules that do judges is using so that prejudices if any can be highlighted.
3. Capacity will be modified in response to demand. Demand will be modified in response to capacity.
Which of these two statements is correct? Give reasons for your answer.
When an organization ---------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------supply and demand.
There are two general --------------------------------------------------------------------------- demand and capacity.
The first is to smooth the ----------------------------------------------------------------------------- existing supply.
The second general --------------------------------------------------------------------------- in demand.
Shifting ----------------------------- capacity
By shifting demand and capacity an ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------of slow demand. This may be possible for some customers but
not for others. For example, many business -------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------of their trips. Those who can’t shift and can’t
be accommodated will represent lost business for the firm.
Vary the service offering
One approach is to change the nature of the service offering, depending on the season of the year, day of the week, or time of
day. For example, Whistler --------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------snow skiing is not possible.
A hospital in the Los Angeles area rents -----------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------late in the year and until April 15. When federal taxes are
due in the United States. -------------------------------------------------------------------------------- and general consulting activities.
Air lines even change the configuration ------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------a large demand for first-class seating, a significant proportion of seats may be placed in first class.
8. Care should be exercised in --------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------, pricing and staffing to match the new offering. Unless these additional
mix variables are altered effectively to support the -----------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------the customers’ perspective or a loss of strategic
focus for the organization and its employees.
Communicate with customers
Another approach for shifting demand and --------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------alternative times and avoid crowding or delays. E.g signs
in banks and --------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------to another time if possible.
Forewarning customers about busy times and possible ------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------approximately how long it will be until they
are served. Those who don’t want to ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------hours were more satisfied. Even when they had to wait than
were customers who were not forewarned.
In addition to signage communicating --------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------- and slow periods. Advertising and sales messages can also
remind customers about peak demand times.
Modify ---------------------------------- of service delivery
Some firms adjust their hours and days of ---------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------weekday. Obviously these hours did not match the times
when most people preferred to do their -------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------- customer demand patterns.
Theatres also accommodate customer schedules --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------weekdays by business groups. It is an example of
varying the service offering during a period of low demand.
Differentiate on price
A common response during slow demand is -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------depends on solid understanding of customer price
sensitivity and demand curves. For example, business ---------------------------------------------------- travelling for pleasure.
For any hotel, airline, restaurant or ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------of capacity utilization without sacrificing profits.
Heavy use of price differentiation to ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------are well known in the airline industry. In this industry the total
industry profits suffered as a result of ------------------------------------------------------------ through price discounting.
Another risk of relying oh price is -------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------may not understand the reasons for the discounts. And they will
expect to pay the same during peak -----------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------ possibility of attracting undesired market segments.
Flexing ----------------------------------- demand
A second strategic approach to ----------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------demand. During periods of peak demand the organization seeks to
stretch or expand its capacity ------------------------------------------------------------------------- so as not to waste resources.
Stretch existing capacity
The existing capacity of service ---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------asked to work harder and longer to meet demand.
9. Stretch time: It may be possible to -------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------hours during the Christmas shopping season. And
accountants have extended appointment hours (evenings and Saturdays) before tax deadlines.
Stretch labor: In many service organizations, employees are asked to work longer and harder during periods of peak
demand. For example, consulting ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------projects and work longer hours. And front-line service personnel
in banks, tourist attractions, ---------------------------------------------------------- more customers per hour during busy times.
Stretch facilities: Theatres, restaurants, -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------. Or as in the case of a commuter train, a car can hold a
number of ------------------------------------------------------------------------------ by accommodating standing passengers.
Stretch equipment: Computers, ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------peak demand. In using these types of “stretch” strategies, the
organization needs to recognize the wear and -----------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------of the facilities and equipment.
Align ---------------------------------------- fluctuations
This basic strategy is sometimes ---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------capacity with customer demand patterns. Time, labor, facilities, and
equipment are again the focus, this ------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------. Specific actions might include the following:
Use part-time employees: In this case the ---------------------------------------------------------------- aligned with demand.
Retailers hire part-time employees during the holiday rush, tax --------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------work split shifts (work the lunch
shift, leave for a few hours------------------------------------------------------------- mealtime hours.
Outsourcing: Firms that find they have a temporary peak in demand for a service that they cannot perform themselves
may choose to outsource the entire service. For example, in recent ---------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------related services. Rather than try
to hire and -----------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------long-term) solution.
Rent or share facilities or equipment
For some organizations it is best to rent additional equipment or facilities during periods of peak demand. For example, ex
press mail delivery services rent or lease -----------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------with complementary demand patterns can share facilities.
An example is a church that shares -----------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------needs the facilities evenings and on the weekend.
Finally, we can say that both the statements are true. Capacity will be modified in response to demand. Demand will be
modified in response to capacity.
4. Discuss briefly the major differences between aggregate planning in manufacturing and aggregate
planning in services. Give suitable examples.
Aggregate planning is an "intermediate------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------at a minimum." Companies use aggregate planning to help
make decisions about ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------demand. This goal is achieved by taking into account a diverse amount of
factors such as: decisions on output rates, ----------------------------------------------------, back orders, and subcontracting work.
A more extensive form of ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------demand, integrating financial and operations planning". Sales and
operations planning decisions are made ------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------the supply chain.
10. In order to generate aggregate planning ------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------workforce size by hiring or layoffs, varying production rates
through over time or idle time, subcontracting, and using part time workers.
The demand options include: ----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------the best option or a
combination of options in order to satisfy demand in the intermediate future.
Both service operations and manufacturing --------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------creating customer value are very different, the essence of
planning is the same: Put the right things together ------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------movement and processing of material.
In manufacturing firms, operations managers -----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------After comparing the options operation managers
choose the approach with the least total cost. However it is suggested that operations managers take into account the ethical
consequences of each approach as well.
In service sector, demand management -------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------also use graphical or mathematical method to determine the
most efficient approach. However in service ---------------------------------------------------------------- production plans.
When generating an aggregate plan, it is -----------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------firms aim at production plans therefore capacity options
have more usage. For service ------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------combinations of capacity and demand options.
The techniques for aggregate ------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------demand for each period to be determined, followed by determining the
capacity for each period, which should match demand. Company, departmental or union policies that are pertinent are then
identified. Unit costs for the total number of units ------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------each are developed as a result. The
plan that best satisfies the business objectives is chose. This is normally the plan with the lowest cost.
Manufacturing
Aggregate planning in ---------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------. Manufacturing businesses use either the Chase Strategy or the Level
Strategy. The Chase Strategy involves matching --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------costs, labor union problems and utilization of plant
and equipment. The advantage -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------rate and a steady employment rate is maintained. The business can
then raise or lower inventory levels in anticipation of forecasted demand levels.
Services
Since services do not involve stockpiles -----------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------, services are considered “perishable,” where any capacity
that is unused is considered to be wasted.
For example, an empty hotel room -----------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------a good measure of capacity.
Differentiation
Aggregate planning in manufacturing --------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------because services cannot be inventoried. The demand for
services is much more difficult to -------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------generally the most constraining service resource.
11. Both service operations and manufacturing --------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------creating customer value are very different, the essence of
planning is the same: Put the right things ----------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------to the physical movement and processing of material.
Customer Demand
Both service and manufacturing ---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------management. Demand planning depends on some type of forecast;
in some industries, customers will partner with a company to ----------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------current and expected future conditions.
The goal of a forecast is to ---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------and customer dissatisfaction.
Resource Planning
Everything a customer pays for is the ---------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------sure all the necessary inputs are present at the right time so the
process that makes your company money can be completed. A good start for identifying the resources needed is a SIPOC
chart. SIPOC (supplier, input, ------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------the customer is -- all the way to the end customer.
Manufacturing Operations
Manufacturing organizations must plan to ---------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------of Manufacturing Resource Planning (MRP-II) software
to help schedule all the required resources at the --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------processing. Many physical processes have fixed
time and space requirements that can't be compressed.
An example of a completed informal --------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------constant while inventory is allowed to build up in earlier
periods only to be drawn back down in later -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------individual variables of the plan are as follows:
Output costs:
Regular ------------------------------------- per unit
Overtime = -----------------------------------------
Subcontracted = --------------------------------
Other costs:
Inventory carrying cost = $-------------------------------------- to average inventory
Backorders -------------------------------------------- per period
12. Cost of aggregate ----------------------------------------------- a level strategy:
Output costs:
Regular time = ---------------------------------------- = $7,500
Overtime = $----------------------------------
Subcontracted = ---------------------------- = 0
Other costs:
Inventory carrying cost = ------------------------- = $2,400
Backorders = $10 × 100 = -----------------------------
------------------------------- = $10,900
Service ---------------------------
While a service organization will --------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------it's an auto mechanic tuning an engine or an insurance agent
preparing an application for coverage, the constraint is the -------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------, as opposed to a mechanical process with
a fixed time or capacity constraint. As such, it usually requires less investment to add capacity to a service organization to
satisfy more customer demand.
Example-
Different type ---------------------------------------------------------------------------, the following are 5 different service scenarios.
1. RESTAURANTS
A business ----------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------of workers.
The basic model is to -------------------------------------------- but using the workforce to accommodate changes in demand.
2. HOSPITALS
Main problems are meeting --------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------capacity, investing in technology, R&D.
3. NATIONAL CHAINS OF SMALL SERVICE FIRMS
Examples: Funeral ---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------versus independent planning at each establishment.
Aggregate planning: Production and purchasing are centrally planned and equal for all stores. When demand
can be influenced through promotions. It reduces costs and manages cash flow.
Independent Planning: ---------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------vary.
5. Operations personnel usually have a large volume and variety of resources at their command- they
should endeavor to make effective and efficient use of these resources to achieve the largest outputs.
Comment! What are the approaches for enhancing the utilization of resources?
Operations management focuses on -----------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------, production and distribution. (These activities are also associated
with Product and Service Management.) Related activities include managing purchases, inventory control, quality control,
storage, logistics and evaluations of ----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------and analysis of internal processes. Ultimately, the nature of how
13. operations management is ----------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------organization, for example, on retail, manufacturing or wholesale.
Operations personnel usually have a large volume and variety of resources at their command - they should endeavour
to make effective and efficient use of these resources to achieve the target outputs. In general
Input= ---------------------------------------
Dividing --------------------------------------------. we obtain
= Productivity + Wastivity
There are two ----------------------------------------------- of resources viz.
a) Increasing -------------------------------
Productivity ------------------------------------------- output to input
This ratio can be ----------------------------------------------- ways:
Increasing --------------------------------------------- inputs constant
----------------------------------------------------- output constant
Increasing output in ------------------------ the increase in input.
b) Decreasing Wastivity
Reduction of waste or scrap is -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------best way to reduce wastivity is to minimize generation of waste at the
source itself. This is a whole new and --------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------at the source of generation of pollution rather than doing fire
fighting, control and management subsequently.
For example, emissions from -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------urgent need in cities like Delhi of combating and controlling air
pollution, the need of a long-term policy of switching -------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------- must appear to be the only sustainable
solution to this menacing problem on a long term basis.
There has been a sea-change in the scenario -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------the customer - orientation of production personnel.
Thanks to the primacy given to the customer focus, operations managers had to re-orient their thinking and learning the true
meaning of customizing their work processes. ----------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------as the vital link in the primary value chain of an
enterprise. The new focus is illustrated below:
14. In a generic way, ---------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------, location or time.
No job, thanks to increasing --------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------that he/she is assigned is not pure or single functional - in fact, richness
of the job is measured by the multidisciplinary ---------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------context we say, "people management is not one
department in the company, it is the function of --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------performed in the company.” or ‘What is the
organization without communication; communication is the life blood of organizations.”
Whereas there is an urgent need to transform -----------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------encouraging. There is an overabundance of technical
specialties or graduates of the University of -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------to reinforce, “this is the way things are done here”. Most
operations facilities are located in small town, away ---------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------work as against the general norm of 40 flours
approximately in commercial offices), commuting time and distances are longer and there is more regimentation
There is a higher premium on conformance, -------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------does not seem to attract them. Armed with a
postgraduate qualification. in management, -------------------------------------------------------------------------------, administrative
services etc in large number. It may not be --------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------other countries! Until and unless the society is able to
attract and retain their best human assets in operations management, creativity suffers.
We have two models ----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------to support and sustain excellence in all other functional areas and we have the
USA Model which always reinforced marketing --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------, in no case should we copy and adopt blindly, have
to derive and develop our own processes of management based on Indian, ethos and values.
6. Discuss the impact of new technologies on the role of an Operations Manager in an organization?
Give suitable examples.
Technological change will have an ------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------of decision making process that will not be accommodated by
existing organizational structures.
Over the years, advances in technology ------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------of service and production systems. Textbooks play an
integral role in documenting the transformational effects of technology in specific fields.
15. Advances in technology are affecting every aspect -----------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------the form of enterprise resource planning (ERP)
systems and the Internet, ------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------are being designed and managed.
Technology is only a tool, not an end in itself------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------its overall goals. Having said that, managers also need
to realize that there are times when only technology will provide the necessary means to meet their customers’ needs in
today’s highly competitive environment. -----------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------of the organization’s functional elements so that
information can be quickly and efficiently transmitted and shared with a minimum of errors.
The main field which operations management is --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------are in the form of people, materials, technologies
and information. They are combined together by a -----------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------ (resources) are by means of this process
transformed into outputs (products or services). The operations manager is responsible for managing the resources involved
in this process. ‘‘Operations management,’’ therefore, ------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------Below are the challenges faced by operations
managers in the manufacturing industry and the strategies adopted by them in order to meet these challenges.
Challenges faced by operations managers
There are many challenges ---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------across all the business function. Operation Managers need to understand
the whole business flows, the products, the customers, ------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------productivity and efficiency to the next level,
understand problem-solving from technical point of view and be able to discuss intellectually with technical parties for
various operation issues. Managing a service system has ----------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------. As a manufacturer today, the basic
approaches to managing operations are no longer sufficient to meet the difficult challenge of continuously achieving and
improving manufacturing excellence----------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------the warehouse, quality and material flow throughout the
production process and product supply network. Only then -------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------more challenging in view of the various
factors that will be explained further.
Technological advances have led to a vast array --------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------the way companies operate. Currently the following
technologies are under focus to support operations in the manufacturing sector: Robotics, Computer controlled
manufacturing, Biotechnology and global ---------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------changes in products and processes can have major
implications for production systems, ------------------------------------------------------------------- integrated into an existing
system, it can do more harm than good by raising costs------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------of the recent developments that have been
taking place in production. ---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------to constantly keep pace with new technology to ensure that the firm does
not lag behind with regards to the product being unique. ----------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------, people needs and technology.
Manufacturing industry such as ---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------to improve efficiency and effectiveness. New technologies also
provide opportunities to create more flexible work environments. For example, -----------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------equipment because
all equipment is mobile. This technology also ------------------------------------------------- fit particular work organizations.
The scope of Technology and operation management has evolved over a period of time and has moved from
development of products into design, management and improvement of operating system and processes.
16. Usage of technology in operation -------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------, thereby creating value for customers.
Integration of Technology with Production System
Technology drives efficiency in ---------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------and it needs to following steps:
Technology Acquisition: ----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------- elaborate cost-benefit analysis.
Technology Integration: ----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------- plan is required.
Technology Verification: once technology integrated, it is important to check whether technology is delivering operational
effectiveness and is been used to its fullest.
Technology in Manufacturing and Design
Technology is getting extensively -------------------------------------------------------------------------------------------------------------
---------------------------and services industry. Current techniques can be broadly classified into following categories:
Computer-Aided Design (CAD): CAD -----------------------------------------------------------------------------------------------------
------------------------------------------------------- at very high level of accuracy thus delivering higher productivity.
Computer-Aided ---------------------------------------------------------------------------------------------------------------------------
therefore, Computerized ------------------------------------------------------------------- highest level of accuracy.
Standard for the Exchange of Product Data: As the name ------------------------------------------------ among CAM and CAM
in three dimensions. Standard for The ---------------------------- of product life cycle and serves as neutral file exchange.
Software Systems in Manufacturing
There are various software ---------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------are Enterprise Resource Planning (ERP), Supply-Chain Management
(SCM), New-Product Development (NPD) and Customer Relationship Management (CRM).
Enterprises Resources ---------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------of the ERP solution are that it not only reduces database errors but also
delivers value to customer through faster delivery and order fulfillment.
Automation in Production and Operations
Automation reduces manual --------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------of automation also, such as unemployment, high breakdown cost and
initial ----------------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------is important.
Example-
Small producers of milk in the state of -------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------objective was the ensure that the small fragmented milk
producers received the maximum possible ---------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------suppliers and consumers was of great importance as well.
Operating Model
Amul has very ------------------------------------------------------------------------------------ its vision since its launch.
Supply Chain
Amul has effectively managed both upstream and downstream partners in establishing one of the most complex supply
chains across the globe. The -------------------------------------------------------------------------------------------------------------------
17. ----------------------------------------------------------------to wholesale distributors who then transport the milk to retailers in
specialised trucks.
All of these processes are -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------channel members before they are on-boarded to the network.
To the wholesalers and retailers, Amul -------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------arise from inexperienced sales partners. It also offers easy
repayment programs for capital investments in infrastructure (freezers etc) by the retailers.
Organisational Alignment
The heads of the village -------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------. This board appoints the chairman of Amul diary. This strategy has
effectively ensured that the management has “skin in the game”.
The incentive structure is -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------quantity of milk supplied.
Technology Initiatives
An automatic Milk Collection -----------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------cooperative each day and increased transparency.
Enterprise-wide Integrated Application ------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------. Cyber stores have been recently launched as well.
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