MBA (OPERATIONS MANAGEMENT) SEMESTER 3 OM 0013 ADVANCED PRODUCTION -4 CREDITS (BOOK ID B1235) ASSIGNMENT - 60 MARKS Note: Answer all

l questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Q1. What is Flexible Manufacturing System (FMS)? How does it help in improving the manufacturing process? (Definition of FMS - 1 mark; Characteristics- 2 marks; Explanation of system designed to produce components 3 marks; How there is flexibility in the manufacturing process 2 marks; Components of FMS 2 marks) 10 marks Answer. Definition of FMS- A system that consists of numerous programmable machine tools connected by an automated material handling system. A flexible manufacturing system (FMS) gives manufacturing firms an advantage in a quickly changing manufacturing environment. Characteristics of FMS- There are following characteristics of FMS as: It is an attempt to solve production problems of mid-volume and mid-variety parts. It is designed to process several parts in the given mix simultaneously. It is equipped with sophisticated flexible machine tools Faster, lower-cost changes from one part to another which will improve capital utilization Lower direct labor cost, due to the reduction in number of workers. Reduced inventory, due to the planning and programming precision

Explanation of system designed to produce components- A Flexible Manufacturing System is one that can be changed or adapted rapidly to manufacture different products or components at different volumes of production. Flexible manufacturing systems are usually seen at their most efficient when manufacturing components rather than finished products. Machine Flexibility: When machines are used to manufacture a variety of products/components this is called machine flexibility. A good example is a company that specializes in manufacturing injection molded components. The component design may change very quickly but as long as the mould is updated / modified the injection molding machine can still operate. Computers monitor the supply of materials; monitor the operating temperatures and quality control. Machines of this nature are adaptable and are ideal for FMS. Flexibility in the manufacturing process- Flexible manufacturing systems are being designed with other type of processing equipments including inspection stations, assembly works and sheet metal presses. Increasing manufacturing flexibility is a key strategy for efficiently improving market responsiveness in the face of uncertain future product demand. Components of FMS 1. Workstations: In present day application these workstations are typically computer numerical control (CNC) machine tools that perform machining operation on families of parts. The various workstations are Machining centers Load and unload stations Assembly work stations Sheet metal processing, etc.

2. Automated Material Handling and Storage system: The various functions of automated material handling and storage system are: Random and independent movement of work parts between workstations Handling of a variety of work part configurations Temporary storage

3. Computer Control System: It is used to coordinate the activities of the processing stations and the material handling system in the FMS. The various functions of computer control system are: Control of each work station Distribution of control instruction to work station Production control

Q2. What is Logical Process Modeling and give the comparison between Logical and Physical Modeling? (definition of logical process modeling- 1 mark; steps- 2 marks; explanation of Logical Process Model - 3 marks; logical modeling formats- 1 mark; Comparison Between Logical and Physical Modeling- 3 marks) 10 marks Answer. Logical process modeling- Logical Process Modeling is the representation of a business process, detailing all the activities in the process from gathering the initial data to reaching the desired outcome. Steps involve in logical process modeling- It includes following steps:

Purpose or mission. What motivates the need for change? This can also be expressed as the problems or opportunities that the program is addressing. Context or conditions. What is the climate in which change will take place? Inputs, or resources or infrastructure. Inputs can also include constraints on the program, such as regulations or funding gaps, which are barriers to your objectives. Activities or interventions. What will the initiative do with its resources to direct the course of change? Outputs. What evidence is there that the activities were performed as planned? Effects, or results, consequences, outcomes or impacts. What kinds of changes came about as a direct or indirect effect of the activities?

Putting these elements together graphically gives the following basic structure for a logic model. Logical Process Model- Some logic models also include assumptions, which are beliefs the prospective grantees have about the program, the people involved, and the context and the way the prospective grantees think the program will work, and external factors, consisting of the environment in which the program exists, including a variety of external factors that interact with and influence the program action. University Cooperative Extension Programs in the US have developed a more elaborate logic model, called the Program Action Logic Model, which includes following steps:

Inputs (what we invest)

Outputs Activities (the actual tasks we do) Participation (who we serve; customers & stakeholders) Outcomes/Impacts Short Term (learning: awareness, knowledge, skills, motivations) Medium Term (action: behavior, practice, decisions, policies) Long Term (consequences: social, economic, environmental etc.)

Logical modeling formats- A few of the logical modeling formats are given below a) Process Descriptions with task sequences and data addresses b) Flow Charts with various activities and relationships c) Flow Diagrams d) Function hierarchies e) Function dependency diagrams. Comparison between Logical and Physical ModelingThe differences between the logical model and the physical model are seen in the features and options available in the user interface, and the different editors you can use The differences between the logical model and the physical model can also be seen in the features and options available in the user interface and the editors, including:

Separate editors for the logical and physical model, which includes the ability to mark model objects logical only or physical only, based on your modeling specifications. Optional separate modeling notation for the logical and physical model, such as IDEF1X, IE, or DM. Different display levels and options for the logical and physical model. Different tools in the ERwin toolbox.

Q3. Write short notes of Risk management. (Meaning of Risk management risk 2 marks; management life cycle including diagram-3 marks; risk reduction by noting changes to existing risks and updating in the risk management mode- 3 marks; role or project risk manager and individuals in managing risk- 2 marks) 10 marks Answer. Risk management Risk management is 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. Management life cycle including diagram- Managing a risk undergoes following stages in its life cycle: 1. Risk Identification 2. Risk Analyses 3. Risk Response Planning

4. 5.

Risk Response Execution & Monitoring Execution Verification

The following diagram shows the flow of Risk Management life-cycle:

Risk reduction by noting changes to existing risks and updating in the risk management mode Take advantage of existing knowledge on risk reduction before you work like crazy to come up with strategies and tactics. Here are some ways you can do this: Research to find out what other groups with missions similar to your own have done A trip to the library or a web search can yield a wealth of results. Don't be afraid to just ask others what has worked for their own groups. Network, network, network! Get to know people who work with groups like yours. Finally, conduct your own research and see what original strategies you can come up with on your own . A little ingenuity goes a long way. While many great strategies can be borrowed from other sources, don't be afraid to alter them as much as you see fit, and feel free to create new strategies yourself. You know your community and probably have a good idea of what will work there and what won't. Role of the Project Manager and individual in Risk Management- While all stakeholders and project team members have a responsibility to identify project risks, the project manager has a number of responsibilities associated with project risk management. These responsibilities are as follows: a. b. c. d. e. Seeking advice on appropriate risk treatment strategies Management and maintenance of the project risk register Identifying potential risks in a timely manner throughout the project lifecycle Coordinating risk evaluation Coordination of the implementation of risk treatment strategies

Q4. List out the inventory decision rules for MRP and the benefits and drawbacks of MRP. (Inventory decision rules 6 marks; benefits 2 marks; drawbacks 2 marks) 10 marks Answer. Inventory decision rules for MRP Many decision rules (lot-sizing rules) can be employed for lot sizing under MRP,. Rule 1. Lot-size orderingminimum order quantity needed. Rule 2. Lot-for-lot (LFL) orderingordering the exact quantity to satisfy the requirements of each time period (usually a week). Rule 3. Period order quantities (P0Q)selection of a fixed time In-interval over which to purchase and determine requirements. Rule 4. Economic order quantityusing the standard EOQ formula. the annual usage in determined by proportioning. Rule 5. Least total cost methodattempts to select the quantity to order that balances the cost of possession and the cost of acquisition.

Additional rules can be used. including least unit COST. period order quantity and dynamic programming plus variations on these. Which is best is impossible to say because they all have the maim constraint of discontinuous Clumpy) demand for items. Benefits of MRP- An MRP system improves customer service by reducing the amount of late orders, creates

higher levels of productivity, and helps the company respond to changes in demand much quicker. If MRP is implemented correctly it has many benefits that will help improve productivity etc continuously. Here is a summary of the benefits below:

Reduced Inventory with fewer (none) shortages Improved Customer Service Improved Direct Labour Productivity Reduced Purchasing Cost Reduced Traffic Cost Reduced Obsolescence Reduced Overtime Having the numbers to run the business Having accountability throughout the organization Improved Quality of Life

Drawback of MRP MRP implementation requires information to be accurate. If poor quantity information is used in either the inventory area or the bill of material module, errors in automated planning processes will result. The planning modules use averages for length of time to purchase or manufacture and for quantities usually purchased on a purchase order or manufactured on a work order .

If there is variability in the actual lot sizes purchased or produced and the lead times then planning software will not produce plans that match what actually happens. Poor information and lack of understanding of the impact of average lot sizes and lead times can cause implementation failure and costly reimplementation.

Q5. The v4L learning principles are perfectly blended across all Toyota supply chain management processes to systematically concentrate on the v4L balance. Explain them. (Variety; Velocity; Variability; Visibility 10 i.e. 2.5 marks each)10 marks Summer 2013 Answer: The v4l. learning principles arc combined across all Toyota supply chain man-agement processes to systematically focus on the v4L balance: Variety is carefully chosen to balance market demands and operational efficiency. Awareness of the impact of variety on the market demand and on manufacturing and supply chain costs enables all the entities across the supply chain to be considered when decisions regarding variety arc being made. In one sense, variety represents a crucial supply chain design choice that has an impact across all supply chain participants. A key issue when variety is being chosen is the need to have feedback loops to ensure that the selected variety represents the best response to current market conditions. As we will discuss in each of the chapters. this is where the learning features of Toyota's process enable the constant loop of Plan, Do, Check. and Act (PDCA). Velocity of supply chain flows is the next key concept, and it manifests itself in all processes across the supply chain. A focus on maintaining a steady flow throughout the system enables capacity planning to be syn-chronized across the supply chain. The detailed process descriptions in the following chapters will highlight how a rate-based approach serves as a linchpin for the planning processes across the system. Variability of orders or deliveries across the supply chain is minimized by how the individual p rocesses arc executed. Reducing variability enables all of the supply chain flows to operate with low levels of inventory. It also enables quality improvement processes to operate without interrup-tion. thus enabling continuous cost reductions and quality improve-ments. Notice that variety. velocity, and variability all interact to stabilize supply chain performance. Visibility of all processes is ensured with use of the right metrics and the requirement that a consensus be reached before plans are changed. At toyota. performance metrics have a 50 percent weight for results and a 50 percent weight for process compliance. Toyota Supply Chain Management variety is synchronize to demand. and variability n minimized. Visibility enables continuous learning and feedback. thus guaranteeing that execution of process remains synchronized with market realities. We suggest that s4l. highlight the initiate balance of all supply chain process. How each of them is balanced by vehicle type or geography is a business choice that reflects Toyota's competitiveness in that market The choice of the v4l. and the actions required to implement these choices are guided by the learning print irks. All companies should be asking themselves how their cur. rent choices reflect the impact of the v4l . A way to remember this concept is to ask. is the supply chain's v41 engine at my company appropriately tuned lot competitive performance.

Q6. Explain the key elements of Just In Time.(Key elements 9 marks, i.e. 1 mark each; conclusion 1 mark)10 marks

Answer.

key elements of Just In Time - The JIT production system is the result of the mandate to eliminate waste. It is composed of the following elements: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Flexible resources Cellular layouts Pull production system Kanban production control Small-lot production Quick setups Uniform production levels Quality at the source Total productive maintenance Supplier networks

Let us explore each of these elements and determine how they work in concert. 1. Flexible Resources The concept of flexible resources, in the form of multifunctional workers and general-purpose machines, is recognized as a key element of JIT, but most people do not realize that it was one of the first elements to fall into place. 2. Cellular Layouts While it is true that Ohno first reorganized his shop into manufacturing cells to utilize labor more efficiently, the flexibility of the new layout proved to be fundamental to the effectiveness of JIT as a whole. 3. The Pull System A major problem in automobile manufacturing is coordinating the production and delivery of materials and parts with the production of subassemblies and the requirements of the final assembly line. It is a complicated process, not because of the technology, but because of the thousands of large and small components produced by thousands of workers for a single automobile. 4. Kanban Production Control System Kanban is the Japanese word for card. In the pull system, each kanban corresponds to a standard quantity of production or size of container. A kanban contains basic information such as part number, brief description, type of container, unit load (i.e., quantity per container), preceding station (where it came from), and subsequent station (where it goes to). 5. Small-Lot Production Small-lot production requires less space and capital investment than systems that incur large inventories. By producing small amounts at a time, processes can be physically moved closer together and transportation between stations can be simplified. In small-lot production, quality problems are easier to detect and workers show less tendency to let poor quality pass (as they might in a system that is producing huge amounts of an item anyway). 6. Quick Setups Several processes in automobile manufacturing defy production in small lots because of the enormous amount of time required to set up the machines. 7. Uniform Production Levels

In addition to eliminating waste, JIT systems attempt to maintain uniform production levels by smoothing the production requirements on the final assembly line. Changes in final assembly often have dramatic effects on component production upstream. 8. Quality at the Source For a JIT system to work well, quality has to be extremely high. There is no extra inventory to buffer against defective units. Producing poor-quality items and then having to rework or reject them is a waste that should be eliminated. Quality improvement efforts at Toyota accelerated as processes were being streamlined and the JIT system was formulated. 9. Total Productive Maintenance Machines cannot operate continuously without some attention. Maintenance activities can be performed when a machine breaks down to restore the machine to its original operating condition, or at different times during regular operation of the machine in an attempt to prevent a breakdown from occurring. 10. Supplier Networks A network of reliable suppliers is also essential to JIT. Toyota mastered this element by selecting a small number of suppliers and developing strong, long-term working relationships with them. Conclusion- Hence we can see that to have a Total JIT manufacturing system, a company-wide commitment, proper materials, quality, people and equipments must always be made available when needed. In addition; the policies and procedures developed for an internal JIT structure should also be extended into the company's supplier and customer base to establish the identification of duplication of effort and performance feedback review to continuously reduced wastage and improve quality.