Assignment 1:

Name Registration / Roll No. Course (MBA) Subject

PRIYA V SHIRODKAR 511023888 Master of Business Administration

Semester Module No. Date of submission Marks Awarded

Semester 2 MB0044 20/11/2010

Directory of Distance Education Sikkim Manipal University II Floor, Syndicate House, Manipal 576 104

________________ ___________________ Signature of Coordinator Signature of Eval

_________________ Signature of Center

1. What are the components of systems productivity? Explain how CAD and CIM help in improving productivity.

Productivity is generally expressed as the ratio of outputs to inputs. Production management encompasses all activities which go into conversion of a sate of inputs into outputs which are useful to meet human needs. It involves the identification of the perquisite materials, knowledge of the processes, and installation of equipments necessary to convert or transform the materials to products. System productivity is generally expressed as the ratio of outputs to inputs. Productivity can be calculated for a single operation, a functional unit, a department division or a plant. It is a measure of the efficiency of the system and looks at the economies achieved during the processes. Every process will have number of contributors-people machines, facilitating goods, ancillary equipments, technology, etc. Which help in achieving maximum productivity - each element attempting to enhance the contribution of other elements? Enhancement of productivity is achieved by either reducing the inputs for the same output or increasing the output by using the same input. Opportunities exist at all stages of the workflow. The entire system of introduce measures for increasing productivity. However in actual manufacturing situations, the inefficiencies will have cascading effect in hampering productivity. Communication, effective review processes and innovative methods will ensure optimization of resources. Capital productivity: Capital deployed in plant, machinery, buildings and the distribution system as well as working capital are components of the oust of manufacture and need to be productive. Demand fluctuations, uncertainties of production owing to breakdowns and inventories being crated drag the productivity down. Therefore, strategies are needed to maximize the utilization of the funds allotted towards capital. Adapting to new technologies, outsourcing and balancing of the workstations to reduce the proportion of idle times on equipments. Importance of CAD and CIM in improving productivity: Computers in design and manufacturing applications make it possible to remove much of the tedium and manual labor involved. For example, the many design specifications, blueprints, material lists, and other documents needed to build complex machines can require

thousands of highly technical and accurate drawings and charts. If the engineers decide structural components need to be changed, all of these plans and drawings must be changed. Prior to CAD/CAM, human designers and draftspersons had to change them manually, a time consuming and error-prone process. When a CAD system is used, the computer can automatically evaluate and change all corresponding documents instantly. In addition, by using interactive graphics workstations, designers, engineers, and architects can create models or drawings, increase or decrease sizes, rotate or change them at will, and see results instantly on screen. CAD is particularly valuable in space programs, where many unknown design variables are involved. Previously, engineers depended upon trial-and-error testing and modification, a time consuming and possibly life-threatening process. However, when aided by computer simulation and testing, a great deal of time, money, and possibly lives can be saved. Besides its use in the military, CAD is also used in civil aeronautics, automotive, and data processing industries.

CAM, commonly utilized in conjunction with CAD, uses computers to communicate instructions to automated machinery. CAM techniques are especially suited for manufacturing plants, where tasks are repetitive, tedious, or dangerous for human workers. Computer integrated manufacturing (CIM), a term popularized by Joseph Harrington in 1975, is also known as Autofacturing. CIM is a programmable manufacturing method designed to link CAD, CAM, industrial robotics, and machine manufacturing using unattended processing workstations. CIM offers uninterrupted operation from raw materials to finished product, with the added benefits of quality assurance and automated assembly. When it comes to production, CIMs are included in different areas of production process such as in engineering design, production planning, shop control, order processing, material control, distribution and many other areas. Information flow across all the functions takes place with the help of

computers. Transmission, processing, distribution, and feedback happen almost in real time so that intended activities are conducted rapidly.

CIM process helps in rapid production and also reduces indirect costs. CIM uses computers to control the entire production process. This integration allows the processes to exchange information with each other and thus they become capable of initiating actions. As response times decrease, customer satisfaction increases resulting in better business. CIM helps in avoiding accumulation of materials resulting in better throughput and better utilization of space. Bar coded labels that accompany materials contain instructions for processing them which are read by sensing devices and display the status on monitors. This information is available to all concerned personnel responsible in planning, marketing and other activities so that they will be aware of the status of any order. If expediting is needed to meet deadlines, they will be able to seek intervention. Identifying shortages and ensuring faster deliveries become easy with CIM.

2. What do you understand by industry best practice? Briefly explain different types of Benchmarking.

Industry best practice: Each industry would have developed over years or decades. Materials would have changed, processes would have changed. As all products or services are meant to serve needs of the customers, they undergo continuous changes both in shapes and features. Because of research that is conducted, materials and methods go on improve necessarily. The companies that were at the force innovate to stay in business as new entrants would be adopting the latest techniques that the pioneers had taken decades to establish. So the practices adopted by various firms in any industry would end up adopting almost similar methods of getting an output required. Such practices would get refined to great extent giving rise what we call industry best practices. These tend to get stabilized or changed owning to the development of new equipments which are designed and manufacturers of those with an eye on growing markets which demand higher quality and reduced prices. Competition benefits those who can use all these to their advantage. Industry best practices open up the field for benchmarking by companies which need to improve their performance. Bench Marking: It is a method of measuring a companys processes, methods, procedures and in a way all functions in great detail. Benchmarking is used to understand how these got into the system and what circumstances brought them about. It is a learning process with a few to find out whether some of the reasons have changed and bring in new processes for improvement.. The metrics that could be used are number of pieces per hour, cost per unit, number of breakdowns per week, customer alienation during a week, return on investment, number of returns from customers in a month, inventory turnover, and many others. As can be seen the figures as found above determine the efficiency of the organization. To keep focused, many organizations, especially the large ones, select a few processes for purposes of benchmarking. This helps in ensuring constant and deep attention to those aspects which are to be dealt with. The following are the types of benchmarking firms consider. Types of benchmarking:

Benchmarking is used to understand how these got into the system and what circumstances brought them about. It is a learning process, with a view to find out whether some of the reasons have changed and to bring in new processes for improvement.

Process benchmarking - the initiating firm focuses its observation and investigation of business processes with a goal of identifying and observing the best practices from one or more benchmark firms. Activity analysis will be required where the objective is to benchmark cost and efficiency; increasingly applied to back-office processes where outsourcing may be a consideration. Financial benchmarking - performing a financial analysis and comparing the results in an effort to assess your overall competitiveness and productivity. Benchmarking from an investor perspective- extending the benchmarking universe to also compare to peer companies that can be considered alternative investment opportunities from the perspective of an investor. Performance benchmarking - allows the initiator firm to assess their competitive position by comparing products and services with those of target firms. Product benchmarking - the process of designing new products or upgrades to current ones. This process can sometimes involve reverse engineering which is taking apart competitors products to find strengths and weaknesses. Strategic benchmarking - involves observing how others compete. This type is usually not industry specific, meaning it is best to look at other industries. Functional benchmarking - a company will focus its benchmarking on a single function to improve the operation of that particular function. Complex functions such as Human Resources, Finance and Accounting and Information and Communication Technology are unlikely to be directly comparable in cost and efficiency terms and may need to be disaggregated into processes to make valid comparison.

Best-in-class benchmarking - involves studying the leading competitor or the company that best carries out a specific function. Operational benchmarking - embraces everything from staffing and productivity to office flow and analysis of procedures performed.

Many times benchmarking is done internally. When an enterprise has a number of plants, and some of them adopt similar processes, it is likely that one group may have developed techniques and methodologies of doing them better than others. Internal benchmarking is resorted to as a measure of identifying strengths in the organization. By internal benchmarking, knowledge, and skills are shared and complemented taking the organization to a leadership position.
3. List out the various automated systems for transfer of materials in the production plant. What do you understand by Line Balancing? Explain with an example.

The various automated systems are: 1. Automated Storage and Retrieval Systems (ASRS): receive orders for materials from anywhere in the production area, collect materials and delivers materials to the workstations. 2. Automated Guided Vehicle systems (AGVS): like pallet trucks and unit load carriers follow embedded guide wires or paint stripes to reach destinations as programmed. About the automated flow lines we can say it is a machine which is linked by a transfer system which moves the parts by using handling machines which are also automated, we have an automated flow line. Human intervention ma is needed to verify that the operations ate 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. In fixed automation or hard automation, where one component is manufactured using services operations and machines it is possible to achieve this condition. We assume that product life cycles are sufficiently stable to interest heavily on the automate flow lines to achieve reduces cast per unit. Product layouts ate designed so that the assembly tasks are performed in the sequence they are designed at

each station continuously. The finished item came out at the end of the line. In automated assembly lines the moving pallets move the materials from station to station and moving arms pick up parts, place them at specified place and system them by perusing, riveting, & crewing or even welding. Sensors will keep track of their activities and move the assembles to the next stage. The machines are arranged in a sequence to perform operations according to the technical requirements. The tools are loaded, movements are effected, speeds controlled automatically without the need for workers involvement. The flexibility leads to better utilization of the equipments. It reduces the numbers of systems and rids in reduction of investment as well as a space needed to install them. One of the major cancers of modern manufacturing systems is to be able to respond to market demands which have uncertainties. Prototyping is a process by which a new product is developed in small number so as to determine the suitability of the materials, study the various methods of manufactured, type of machinery required and develop techniques to over come problems that my be encountered when full scale manufacture is undertaken. Prototypes do meet the specification of the component that enters a product and performance can be measured on these. It helps in con be reforming the design and any shortcomings can be rectified at low cost. Flexibility has three dimensions in the manufacturing field. They are variety, volume and time. There demands will have to be satisfied. In that sense they become constraints which restrict the maximization of productivity. Every business will have to meet the market demands of its various products in variety volumes of different time. Flexibility is also needed to be able to develop new products or make improvements in the products fast enough to cater to shifting marker needs. Manufacturing systems have flexibility built into them to enable organization meet global demand. You have understood how the latest trends in manufacturing when implemented help firms to stay a head in business. Line Balancing:

Line balancing and line of balance are two more tools to ensure that machining centres are loaded, as uniformly as possible to prevent build up stocks at intermediate stages. Simulation models are used to predict utilization of machines, and production levels. Various inventory models help us to determine when to order, and how many to order. It also gives us an insight to the risks and opportunities that come up for our consideration Assembly lines are best suited for the study and analysis of the line balancing problem, called Assembly Line Balancing (ALB). Ghosh and Gagnon categorised the ALB problems into four categories Single Model Deterministic, Single Model Stochastic, Multi/Mixed Model Deterministic, and Multi/Mixed Model Stochastic.

4. Explain the different types of Quality Control Tools with examples? How do Crosbys absolutes of quality differ from Demings principles?

Quality Control (QC) is a system of routine technical activities, to measure and control the quality of the inventory as it is being developed. The QC system is designed to Provide routine and consistent checks to ensure data integrity, correctness, and completeness; Identify and address errors and omissions; Document and archive inventory material and record all QC activities. The following seven are considered basic tools for achieving quality. Flow Chart Check sheet Histogram Pareto Analysis Scatter Diagram Control Chart Cause and Effect Diagram

Flow Chart It is a visual representation of process showing the various steps. It helps in locating the points at which a problem exists or an improvement is possible. Detailed data can be collected, analyzed and methods for correction can be developed. A sample is shown below lists out the various steps or activities in a particular job. It classifies them as a procedure or a decision. Each decision point generates alternatives. Criteria and Consequences that go with decision are amenable to evaluation for purposes of assessing quality. The flow chart helps in pin-pointing the exact at which errors have crept in. A simple chart is shown below.

Check Sheet These are used to record the number of defects, types of defects, locations at which they are occurring, times at which they are occurring, workmen by whom they are occurring. It keeps a record of the frequencies of occurrence with reference to possible defect causing parameter. It helps to implement a corrective procedure at the point where the frequencies are more, so that the benefit of correct will be maximum. A sample sheet is shown below.

Histogram Histograms are graphical representations of distribution of data. They are generally used to record huge volumes of data about a process. They reveal whether the pattern of distribution whether there is a single peak, or many peak and also the extent of variation around the peak value. This helps in identifying whether the problem is serious. When used in conjunction with comparable parameters, the visual patterns help us to identify the problem which should be attended to.

Pareto Analysis This is a tool for classifying problem areas according to the degree of importance and attending to the most important. Pareto principle, also called 80-20 rule, states that 80 percent of the problems that we encounter arise out of 20 percent of items. If we find that, in a day, we have 184 assemblies have given problems and there are 11 possible causes, it is observed that 80 per cent of them i.e. 147 of them have been caused by just 2 or 3 of them. It will be easy to focus on these 2 or three and reduce the number of defects to a great extent. When the cause of these defects have been attended, we will observe that some other defect

Scatter Diagram These are used when we have two variables and want to know the degree of relationship between them. We can determine if there is cause and effect relationship between and its extent over a range of values. Sometimes, we can observe that there is no relationship, in which we can change one parameter being sure that it has no effect on the other parameter.

Control Charts These are used to verify whether a process is under control. Variables when they remain within a range will render the product maintain the specifications. This is the quality of conformance. The range of permitted deviations is determined by design parameters. Samples are taken and the mean and range of the variable of each sample (subgroup) is recorded. The mean of the means of the samples gives the control lines. Assuming normal distribution, we expect 99.97 per cent of all values to lie within the UCL when we take 3 standard deviations Upper Control Limit and LCL Lower Control Limit. The graphical representation of data helps in changing settings to bring back the process closer to the target. Cause and Effect Diagram This is a diagram in which all possible causes are classified on quality characteristics which lead to a defect. These are arranged in such a way that different branches the causes are leading the stem in the direction of the discovery of the problem. When each of them is investigated thoroughly we will be able to pinpoint some factors which cause the problem. We will also observe that a few of them will have cumulative effect or even a cascading effect.

Deming Wheel Demings approach is summarized in his 14 points. Constancy of purpose for continuous improvement Adopt the TQM philosophy for economic purposes Do not depend on inspection to deliver quality Do not award any business based on price alone Improve the system of production and service constantly Conduct meaningful training on the job Adopt modern methods of supervision and leadership Remove fear from the minds of everyone connected with the organization Remove barriers between departments and people Do not exhort, repeat slogans and put up posters. Do not set up numerical quotas and work standards give pride of workmanship to the workmen Education and training to be given vigorously State and exhibit top managements commitment for quality and productivity

Using the above principles, Deming gave a four step approach to ensure a purposeful journey of TQM. The slope is shown to indicate that if efforts are let up the program will roll back: Plan means that a problem is identified, processes are determined and relevant theories are checked out. Do means that the plan is implemented on a trial basis. All inputs are correctly measured and recorded. Check/Study/Analyze means that the trials taken according to the plan are in accordance with the expected results. Act When all the above steps are satisfactory regular production is started so that quality outcomes are assured Crosbys Absolutes of Quality Like Deming, he also lays emphasis on top management commitment and responsibility for designing the system so that defects are not inevitable. He urged that there be no restriction on spending for achieving quality. In the long run, maintaining quality is more economical rather than compromising on its achievement. His absolutes can be listed as under. Quality is conformance to requirements not goodness. Prevention, not appraisal, is the path to quality. Quality is measured as the price paid for non-conformance and as indexes. Quality originates in all factions not quality department. There are no quality problems people, design, process create problems. Crosby also has given 14 points similar to those of Deming. His approach emphasizes on measurement of quality, increasing awareness, corrective action, error cause removal and continuously reinforcing the system, so that advantages derived are not lost over time. He desires that the quality management regimen should improve the overall health of the organization and prescribed a vaccine. The ingredients are: Integrity honesty and commitment to produce everything right first time, every time. Communication Flow of information between departments, suppliers, customers helps in identifying opportunities. Systems and operations These should bring in a quality environment so that nobody is comfortable with anything less than the best.

5. Define project cycle, project management, and scope of project. List the various project management knowledge areas? What are the reasons for failure of a project?

Project Cycle A project cycle basically consists of the various activities of operations, resources and the limitations imposed on them. Definition of Project Management It is the practice of controlling the use of resources, such as cost, time, manpower, hardware and software involved in a project, that start with a problem statement and end with delivery of a complete product. Project management involves understanding its scope and various processes in the project cycle.

Project Management Definition As per PMBOK (Project Management Body of Knowledge, defined by PMI Project Management Institute) : Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. As per DIN 69901 (German Organization for Standardization): Project management is the complete set of tasks, techniques, tools applied during project execution Scope It refers to the various parameters that affect the project in its planning, formulation and executions, Like:The range of one's perceptions, thoughts, or actions. Breadth or opportunity to function. See Synonyms at room. The area covered by a given activity or subject. See Synonyms at range. The length or sweep of a mooring cable. Informal A viewing instrument such as a periscope, microscope, or telescope.

Project management knowledge areas The knowledge areas of project management are the following: (See below figure Project integration management, cost management, communications management Project scope management, quality management, risk management Project time management management, human management, procurement

For a project to be successful, it is necessary to understand its relationship with other management disciplines. Other management supporting disciplines are business legal issues, strategic planning, logistics, human resource management, and domain knowledge.

Before knowing the reasons of failure we have to know about project. Project is a set of activities which are networked in order and aimed towards achieving goal of a project. Now, the reasons are project failures are: Incidence of Project failure Projects being initiated of random at all levels Project objective not in line with business objective Project management not observed Project manager with no prior experience in the related project Non- dedicated team Lack of complete support from clients Factors contributing to project success not emphasized: Project objective in alignment with business objective Working within the framework of project management methodology Effective scoping planning, estimation, execution, controls and reviews, project bottlenecks Communication and managing expectations effectively with clients, team merits and stake holders Prior expectance of PM in a similar project Overview of information and communication Technologies (ICT) project: i) Involve information and communication technologies such as the word wide web, e-mail, fiber-optics satellites. ii)Enable societies to produce, access, adapt and apply information in greater amount, more rapidly and at reduce casts. iii) Offer enormous opportunities for enhancing business and economic viability. iv) Common problems encountered during projects. v) No prioritization of project activity from an organizational position. vi) One or more of the stages in the project mishandled. vii) Less qualified non-dedicated manpower. viii) Absence of smooth flow of communication between the involved parties.

These basic reasons lead a project to failures. In the project failures business management and project management is directly involved. From the management point of view it is basic things to care above topics to success of a project. Project is the core business of a company.

6. Explain the various phases in project management life cycle. Explain the necessity and objectives of SCM.

This is the initial phase of any project. In this phase information is collected from the customer pertaining to the project and the requirements are analyzed. The entire project has to be planned and it should be done in a strategic manner. The project manager conducts the analysis of the problem and submits a detailed report to the top project justification, details on what the problem is a method of solving the problem, list of the objectives to be achieved, project budget and the success rate of completing the project. The report must also contain information and the project feasibility, and the risks involved in the project. Project management life cycle is the integrated part of management. It is attach with project responsibility or failure of a project. The important tasks of this phase are as follows: Specification Requirements Analysis (SRA): It has to be conducted to determine the essential requirements of a project in order to achieve the target. Feasibility study: To analyze whether the project is technically, economically and practically feasible to be undertaken. Trade off analysis: To understand and examine the various alternatives which could be considered. Estimation: To estimate the project cost, effort requires for the project and functionality of various process in the project. System design: Choose a general design that can fusil the requirements. Project evolution: Evaluate the project in terms of expected profit, cost and risks involved marketing phase. A project proposal is prepared by a group of people including the project manager. This proposal has to contain the strategies adopted to market the product to the customers. Design phase: This phase involves the study of inputs and outputs of the various project stages. Execution phase: In this phase the project manager and the teams members work on the project objectives as per the plan. At every stage during the execution reports are prepared. Control: Inspecting, Testing and Delivery phase during this phase. The project team works under the guidance of the

project manager. The project manager has to ensure that the team working under his, implements the project designs accurately, the project manager has to ensure ways of managing the customer, perform quality control work. Closure and post completion analysis phase upon satisfactory completion and delivery of the intended product or service the staff performance has to be evaluated. Document the lessons from the project. Prepare the reports on project feedback analysis followed by the project execution report. The phase which involve in the above are: The preparation stage involves the preparation and approval of project outline, project plan and project budget. The next stage involves selecting and briefing the project team about the proposals followed by discussions on the roles and responsibility of the project member and the organization. The project management life cycle: A Life cycle of a project consists of the following: Understanding the scope of the project Establishing objectives of the project Formulating and planning various activities Project execution and Monitor and control the project resources. Risk Management:Risk is defined in ISO 31000 as the effect of uncertainty on objectives (whether positive or negative). Risk management can therefore be considered the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from uncertainty in financial markets, project failures, legal liabilities, credit risk, accidents, natural causes and disasters as well as deliberate attacks from an adversary. Several risk management standards have been developed including the Project Management Institute, the National Institute of Science and Technology, actuarial societies, and ISO standards. Methods, definitions and goals vary widely according to whether the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety.

The strategies to manage risk include transferring the risk to another party, avoiding the risk, reducing the negative effect of the risk, and accepting some or all of the consequences of a particular risk. Certain aspects of many of the risk management standards have come under criticism for having no measurable improvement on risk even though the confidence in estimates and decisions increase. Necessity and objectives of SCM:SCM is the abbreviation of supply chain Management. It is considered by many express worldwide as the ultimate solution towards efficient enterprise management. SCM is required by and enterprise as a tow to enhance management effectiveness with a following organizational objective: Reduction of inventory:-Enactment in functional effectiveness of existing systems like ERP, Accounting. Software and Documentation like financial reports statements ISO 9000 Documents etc. Enhancement of participation level and empowerment level:Effective integration of multiple systems like ERP, communication systems, documentation system and secure, Design R&D systems etc. Better utilization of resources- men, material, equipment and money. Optimization of money flow cycle within the organization as well as to and from external agencies. Enhancement of value of products, operations and services and consequently, enhancements of profitability. Enhancement of satisfaction level of customer and clients, supporting institutions, statutory control agencies, supporting institutions, statutory control agencies, suppliers and vendors, employees and executives . Enhancement of flexibility in the organization to help in easy implementation of schemes involving modernization, expansion and divestment, merges and acquisitions Enhancement of coverage and accuracy of management information systems. With the objectives of SCM its implementation are required. Implementation is in the form of various functional blocks of an organization interpenetrated through which a smooth flow of the product development is possible.

A relatively new SCM option involves web based software with a browser interface. Several electronic marketplaces for buying and selling goods and materials. Steps involved in the implementation of SCM:There is many steps which involved in SCM implementation areBusiness Process, sales and marketing. Logistics, costing, demand planning, trade- off analysis, environmental requirement, process stability, integrated supply, supplier management, product design, suppliers, customers, material specifications, etc. Some important aspect of SCMThe level of competition existing in the market and the impact of competitive forces on the product development. Designing and working on a strategic logic for better growth through value invention. Working out new value curve in the product development along with necessary break point. Using it to analyze markets and the economies in product design. Time, customer, quality of product and the concept of survival of fittest. Steps of SCM principals: Group customer by need: Effective SCM groups, customer by tie tinct service meets those particular segment. Customize the logistics networks: In designing their logistics network, companies need to focus on the service requirement and profit potential of the customer segments identified. Listen to signals of market demand and plan accordingly- sales and operations planners must monitor the entire supply chain to detect early warning signals of changing customer demand and needs. Differentiate the product closer to the customer: companies today no longer can afford to stock pile inventory to compensate for possible forecasting errors, instead, they need to postpone product differentiation in the manufacturing. Process closer to actual customer demand. Strategically manage the source of supply: by working closely with their key suppliers to reduce the overall casts of owning materials and services; SCM maximizes profit margins both for themselves, and their supplies.

Develop a supply chain wide technology strategy: as one of the cornerstones of successful SCM information technology must be able to support multiple levels of decision making. Adopt channel spanning performance measures- Excellent supply performance measurement systems do more than just monitor internal functions. They apply performance criteria that embrace bathe service and financial metrics, including as such as each accounts true profitability.

Assignment 2:
Name Registration / Roll No. Course (MBA) Subject
MANAGEMENT

PRIYA V SHIRODKAR 511023888 Master of Business Administration

Semester Module No. Date of submission Marks Awarded

Semester 2 MB0044 20/11/2010

Directory of Distance Education Sikkim Manipal University II Floor, Syndicate House, Manipal 576 104

________________ ___________________ Signature of Coordinator Signature of Eval

_________________ Signature of Center

[Link] an example of any product or service industry and explain the factors considered while taking the decision on plant location. Ans: Factors influencing Plant Location can be broadly divided into two types namely: General factors and special factors (See below Figure)

General factors The general factors that influence the plant location are listed below (See Figure) 1. Availability of land: Availability of land plays an important role in determining the plant location. Many-a-time, our plans, calculations and forecasts suggest a particular area as the best to start an organization. However, availability of land may be in question. In such cases, we will have to choose the second best location. 2. Availability of inputs: While choosing a plant location, it is very important for the organization to get the labor at the right time and raw materials at good qualities. The plant should be located: Near to the raw material source when there is no loss of weight At the market place when there is a loss of weight in the material Close to the market when universally available, so as to minimize the transportation cost

Figure General factors influencing plant location 3. Closeness to market places: Organizations can choose to locate the plant near to the customers market or far from them, depending upon the product they produce. It is advisable to locate the plant near to the market place, when: The projection life of the product is low The transportation cost is high The products are delicate and susceptible to spoilage After sales services are promptly required very often The advantages of locating the plant near to the market place are: Consistent supply of goods to the customers Reduction of the cost of transportation 4. Communication facilities: Communication facility is also an important factor which influences the location of a plant. Regions with good communication facilities viz. Postal and Tele communication links should be given priority for the selection of sites. 5. Infrastructure: Infrastructure plays a prominent role in deciding the location. The basic infrastructures needed in any organisation are: Power: For example, industries which run day and night require continuous power supply. So they should be located near to the power stations and should ensure continuous power supply throughout the year.

 Water: For example, process industries such as, paper, chemical, and cement, requires continuous water supply in large amount. So, such process industries need to be located near to the water. Waste disposal: For example, for process industries such as, paper and sugarcane industries facility for disposal of waste is the key factor. 6. Transport: Transport facility is a must for facility location and layout of location of the plant. Timely supply of raw materials to the company and supply of finished goods to the customers is an important factor. The basic modes of transportation are by Air, Road, Rail, Water, and Pipeline. The choice of location should be made depending on these basic modes. Cost of transportation is also an important criterion for plant location. 7. Government support: The factors that demand additional attention for plant location are the policies of the state governments and local bodies concerning labor laws, building codes, and safety. 8. Housing and recreation: Housing and recreation factors also influence the plant location. Locating a plant with the facilities of good schools, housing and recreation for employees will have a greater impact on the organization. These factor seems to be unimportant, but have a difference as they motivate the employees and hence the location decisions. Special factors The special factors that influence the plant location are: 1. Economic stability outside investments 2. Cultural factors 3. Wages 4. Joint ventures support of big time players

Q2) What is Business Process? Explain with an example as to why a business process is to be modeled. Ans: Business Process is a total response that a business undertakes utilizing the resources and delivering the outputs that create a value for the customer. The business process: Has a goal Uses specific inputs Delivers specific outputs Collects resources Performs a number of activities in some order Creates value for the customer Business Process Modeling refers to a set of activities undertaken to optimize the business process. The reasons for optimizing the business process is to: (See figure) Improve the performance of the process Deliver better value for the customer Maximize the earnings of the organization Keep its head above competition from outsiders

The business system contains a combination of people and the applications organized to meet the business objectives. The applications are automated timely and efficiently to enable information and reporting system to be accurate. To meet the business objectives: Designers and programmers: The designers and programmers of the modeling process, together: Put together the data and processes to provide optimum benefits Put in place the architecture which is capable of addressing these needs Architecture: The architecture should be flexible to adapt new methods, processes, and business plans. All the elements of the business process have to be structured and controlled for the purpose of analysis, evaluation, modification, implementation, and correction. Some of the elements are activities, parts, products, data, people, processes, software tools, delivery systems, and performance measurement. This is all what we are going to study under BPM. It is synonymously used even for the software tools, because of the extensive use of various software programmes for all the activities seen above. Business Process Modeling Business Process Modeling can be categorized into two parts Logical Processing Modeling and Physical Process Modeling. (See figure Types of modeling)

Types of modeling 1. Logical process modeling Logical process modeling is the representation of putting together all the activities of business process in detail and making a representation of them. The initial data collected need to be arrange in a logical manner so that, links are made between nodes for making the workflow smooth. The steps to be followed to make the work smoother are given below: 1. Capture relevant data in detail to be acted upon

2. Establish controls and limit access to the data during process execution 3. Determine which task in the process is to be done and also the subsequent tasks in that process 4. Make sure that all relevant data is available for all the tasks 5. Make the relevant and appropriate data available for that task 6. Establish a mechanism to indicate acceptance of the results after every task or process. This is to have an assurance that flow is going ahead with accomplishments in the desired path Logical process model consists of only the business activities and shows the connectivity among them. The process model is a representation of the business activities different from the technology dependent ones. Thus, we have a model that is singularly structured only for business activities. Computer programmers are also present in the total system. This allows the business oriented executives to be in control of the inputs, processes and outputs. The Logical Process Model improves, control on the access to data. It also identifies, who is in possession of data at different nodes in the dataflow network that has been structured. A few of the logical modeling formats are given below: 1. Process Descriptions with task sequences and data addresses 2. Flow Charts with various activities and relationships 3. Flow Diagrams 4. Function hierarchies 5. Function dependency diagrams Every business activity, when considered as a logical process model, can be represented by a diagram. It can be decomposed and meaningful names can be given to the details. Verb and Noun form combinations can be used to describe at each level. Nouns give the name of the activity uniquely and are used for the entire model meaning the same activity.

Physical process modeling Physical process modeling is concerned with the actual design of data base meeting the requirements of the business. Physical modeling deals with the conversion of the logical model into a relational model. Objects get defined at the schema level. The objects here are tables created on the basis of entities and attributes. A database is defined for the business. All the information is put together to make the database software specific. This means that the objects during physical modeling vary on the database software being used. The outcomes are server model diagrams showing tables and relationships with a database.

Example: Adding value for customers, whether internal or external customers, is at the centre of a Business Process Model. It starts with a customer need and ends with the satisfaction of that need. Unlike a workflow diagram, which is generally focused on departmental activities, a BPM spans departments and the whole organization. Staffs are among the internal customers of modern right-minded organizations. If you approach Business Process Modeling purely from a systems and 'things' viewpoint with a fixation on costs and profitability, and squeezing every activity to its theoretical optimum, then people (notably staff) tend to get squeezed too. Organizations work well when people enjoy and support the processes that they are required to perform, and you will only add sustainable value for your customers, when you also add value for your staff too. An example could be the actions involved in processing a customer order from an internet-based mail order company. Starting with a customer placing an order (the customer need)

Send IT-based information to the warehouse Stock picking packing and recording Sending the appropriate IT-based information to the distribution hub Sending IT-based information to the accounts department Generation of an invoice Allocation and organization of shipment for the vehicle drivers Delivery of the item and invoicing (the customer need fulfilled).

Q3)What is Value Engineering? Explain briefly its origins and objectives. Ans: Value Engineering (VE) or Value Analysis is a methodology by which we try to find substitutes for a product or an operation. The concept of value engineering originated during the Second World War. It was developed by the General Electric Corporations (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 and distribution, industrial equipment, construction, assembling and machining processes, health care and environmental engineering, and many others. Value engineering process calls for a deep study of a product and the purpose for which it is used, such as, the raw materials used; the processes of transformation; the equipment needed, and many others. It also questions whether what is being used is the most appropriate and economical. This applies to all aspects of the product.

For the above example, studies can be conducted to verify whether any operation can be eliminated. Simplification of processes reduces the cost of manufacturing. Every piece of material and the process should add value to the product so as to render the best performance. Thus, there is an opportunity at every stage of the manufacturing and delivery process to find alternatives which will increase the functionality or reduce cost in terms of material, process, and time. The different aspects of value engineering can be encapsulated into a sequence of steps known as a Job Plan. Value engineering in organizations helps to identify: The problem or situation that needs to be changed/improved All that is good about the existing situation The improvements required in the situation The functions to be performed The ways of performing each function

 The best ways among the selected functions The steps to be followed to implement the function The person who executes the function It should be remembered that we are not seeking a cost reduction sacrificing quality. It has been found that there will be an improvement in quality when systematic value analysis principles are employed. Now-a-days, the principles of value engineering starts at the product concept and design and is carried down the value chain. The aim of value engineering is to effect economies by investigating every opportunity and discovering new materials, methods to achieve high quality performance. The aims of value engineering can be listed as: 1. Product simplification 2. Better and less costly materials 3. Improved product design 4. High efficiency in the processes 5. Economy in all activities The main benefits of the application of VE are: 1. Cost reduction 2. Overall cost consciousness 3. A culture of effecting saving across organization 4. Streamlining of administration and creation of transparency in all dealings even with outsiders 5. Development of reliable suppliers

Q4) Discuss the difference between work study and motion study. Explain with an example. Ans: Work study We say that work study is being conducted when analysis of work methods is conducted during the period when a job is done on a machine or equipment. The study helps in designing the optimum work method and standardization of the work method. This study enables the methods engineer to search for better methods for higher utilization of man and machine and accomplishment of higher productivity. The study gives an opportunity to the workmen to learn the process of study thus making them able to offer suggestions for improved methods. This encourages workmen participation and they can be permitted to make changes and report the advantages that can be derived from those. This course is in alignment with the principle of continuous improvement and helps the organization in the long run. Reward systems may be implemented for recognizing contributions from the workmen. Work study comprises of work measurement and method study. Work measurement focuses on the time element of work, while method study focuses on the methods deployed and development of better methods. Work measurement Work measurement can be defined as a systematic application of various techniques that are designed to establish the content of work involved in performing a specific task. The task is performed by a qualified worker. With this we arrive at the standard time for a task. This will be used to fix performance rating of other workers. It forms the basis of incentives, promotion, and training for workmen and assessment of capacity for the plant. Hence, training the workers is very important. (See figure) ILO defines a qualified worker as one who is accepted as having the necessary physical attributes, possessing the required intelligence and education, and having acquired the necessary skill and knowledge to carry out the work in hand to satisfactory standards of safety, quantity, and quality.

Training workers

Methods study Method study focus is on studying the method currently being used and developing a new method of performing the task in a better way. Operation Flow charts, Motion Charts, Flow Process charts, which are the elements of the task, are studied to find the purpose of each activity, the sequence in which they are done, and the effect of these on the work. The study may help in changing some of them and even eliminate some of them to effect improvements. The new method should result in saving of time, reduced motions, and simpler activities. Machine worker interaction Machine worker interaction study consists of studying the amount of time an operator spends on the machine before it is activated and the time he has nothing to do. In many modern manufacturing centers, where we have automated systems of manufacturing, the role of the worker is limited to, observing various screens, dials, indicator lamps to see that the process is going on smoothly. In some cases, his job may be to load the jobs on the machines and check the settings. What is of concern to us, is to see whether the operations permit for enabling an operator to look after two or three machines, without affecting of the performance of the machine or man.

Q5) Time taken by three machines on five jobs in a factory is tabulated below in table below. Find out the optimal sequence to be followed to minimise the idle time taken by the jobs on the machines.

Ans: Steps taken to solve the above problem: 1. Take M1, M3 call it as MA. Find the sequence Job A B C D E MA=A C D E B Time taken by sequence MA Job A C D E B Process time M1 M2 Time in Time out Time in 0 6 6 6 11 14 11 14 19 14 18 23 18 22 26 M3 Time out 14 19 23 26 31 Time in 14 23 30 36 40 Time out 21 30 36 40 43 M1 6 4 5 3 4 M3 7 3 7 6 4

Time taken for MA=43 Time taken by sequence MB: M1+M2 M2+M3

Job A B C D E MB=A C D E B

M1+M2 14 9 10 7 7

M2+M3 15 8 12 10 7

MIN 14 8 10 7 7

SEQUENCE A C D E B

Time taken by sequence MB: Job A C D E B Process time M1 M2 Time in Time out Time in 0 6 6 6 11 14 11 14 19 14 18 23 18 22 26 M3 Time out 14 19 23 26 31 Time in 14 23 30 36 40 Time out 21 30 36 40 43

Time taken for MB=43

Sequence of MC: M1+M2 &M3

Job A B C D E MC=E D C B A

M1+M2 14 9 10 7 7

M3 7 3 7 6 4

MIN 7 3 7 6 4

SEQUENCE E D C B A

Time taken by sequence MC: Job E D C B A Process time M1 M2 Time in Time out Time in 0 4 4 4 7 12 7 12 16 12 16 22 16 22 27 M3 Time out 7 16 21 27 35 Time in 7 21 27 35 38 Time out 11 27 34 38 45

Time taken for MC=45 Sequence of MD: M1 and M2+M3 Job A B C D E MD=D E B C A Time taken by sequence MD M1 6 4 5 3 4 M2+M3 15 8 12 10 7 MIN 6 4 5 3 4 SEQUENCE D E B C A

Job D E B C A

Process time M1 M2 Time in Time out Time in 0 3 3 3 7 11 7 11 16 11 16 22 16 22 27

M3 Time out 7 14 21 27 35 Time in 7 21 27 35 42 Time out 13 25 30 42 49

Time taken for MD=49 Thus we get Time taken for A=43

Time taken for B=43 Time taken for C=45 Time taken for D=49 Therefore the optical sequence for given 5 jobs under 3 machines A C D E B

Q6) List the seven principles of SCM. Discuss Bullwhip effect, its effects and countermeasures. Ans:Seven Principles of SCM are: 1. Group customer by needs: Effective SCM groups customers by distinct service needs, regardless of industry and then tailors services to those particular segments 2. Customize the logistics network: In designing their logistics network, companies need to focus on the service requirement and profit potential of the customer segments identified 3. Listen to signals of market demand and plan accordingly: Sales and operations planners must monitor the entire supply chain to detect early warning signals of changing customer demand and needs. This demand driven approach leads to more consistent forecast and optimal resource allocation 4. Differentiate the product closer to the customer: Companies today no longer can afford to stockpile inventory to compensate for possible forecasting errors. Instead, they need to postpone product differentiation in the manufacturing process closer to actual consumer demand. This strategy allows the supply chain to respond quickly and cost effectively to changes in customer needs 5. Strategically manage the sources of supply: By working closely with their key suppliers to reduce the overall costs of owning materials and services, SCM maximizes profit margins both for themselves and their suppliers 6. Develop a supply chain wide technology strategy: As one of the cornerstones of successful SCM, information technology must be able to support multiple levels of decision making. It also should afford a clear view and ability to measure the flow of products, services, and information 7. Adopt channel spanning performance measures: Excellent supply chain performance measurement systems do more than just monitor internal functions. They apply performance criteria to every link in the supply chain criteria that embrace both service and financial metrics

Bullwhip Effect in SCM An organization will always have ups and downs. It is necessary that the managers of the organization keep track of the market conditions and analyze the changes. They must take decisions on the resources and make necessary changes within the organization to meet the market demands. Failing to do so may result in wild swings in the orders. This may adversely affect the functioning of the organization resulting in lack of coordination and trust among supply chain members. The changes may affect the information and may lead to demand amplification in the supply chain. The Bullwhip effect is the uncertainty caused

from distorted information flowing up and down the supply chain. This has its affect on almost all the industries, poses a risk to firms that experience large variations in demand, and also those firms which are dependent on suppliers, distributors and retailers. A Bullwhip effect may arise because of: Increase in the lead time of the project due to increase in variability of demand Increase in the stocks to accommodate the increasing demand arising out of complicated demand models and forecasting techniques Reduced service levels in the organization Inefficient allocation of resources Increased transportation cost How to prevent it? Bullwhip effect may be avoided by one or more of the following measures: Avoid multiple demand forecasting Breaking the single orders into number of batches of orders Stabilize the prices; avoid the risk involved in overstocking by maintaining a proper stock Reduce the variability and uncertainty in Point Of Sale (POS) and sharing information Reduce the lead time in the stages of the project Always keep analyzing the past figures and track current and future levels of requirements Enhance the operational efficiency and outsourcing logistics to a capable and efficient agency