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Index
Chapter 1- Introduction ............................................................................. 3
What is Operations Management .................................................................... 3
What is Supply Chain Management?................................................................ 4
Difference between Supply Chain Management and Operations Management.5
Chapter 2- Technical Concepts and Terminologies .................................. 7
MTO, ATO, MTS, ETO ................................................................................. 7
Lean methodology .......................................................................................... 8
Six Sigma .........................................................................................................8
FIFO ............................................................................................................... 9
LIFO ............................................................................................................... 9
Just in Time… ........................................................................................................................ 9
Total Quality Management ..............................................................................9
Inventory Management ................................................................................... 9
Hub and Spoke Model ................................................................................... 10
National Logistics Policy ............................................................................... 10
Dark Stores in Q-Commerce… ........................................................................................10
Demand Forecasting ........................................................................................................... 11
Bill of Materials…................................................................................................................. 11
Chapter 3- Commonly Asked Questions in Interviews ............................ 12

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 Chapter 1- Introduction
What is Operations Management?

Operations management (OM) is the planning and scheduling of activities, responsible for creating value in
the form of goods and services by transforming inputs into outputs. It deals with the design and
management of products, processes, services, and supply chains. Some of the activities included in
operation management are organizing work, selecting processes, arranging facilities, data analysis,
performance measurement, controlling quality managing inventory and planning production.

INPUTS TRANSFORMATION Outputs

PROCESS

FEEDBACK REQUIREMENTS

Operations management is the heart of any organization as it plays a pivotal role in supplying goods to
customers by taking inputs from most of the major departments in the company

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A critical function of operations management relates to the management of inventory through the supply
chain. This process is known as operations and supply chain management (OSCM). Another large facet of
operations management involves the delivery of goods to customers. This includes ensuring that products
are delivered within the agreed time commitment. Operations management also typically follows up with
customers to ensure that the products meet quality and functionality needs. The combination of
understanding and coordinating the work of a company are central to becoming a successful operations
manager.

What is Supply Chain Management?

Supply chain management in simple terms is managing the flow of goods and services. It involves
procurement of raw materials, manufacturing and distribution management of finished goods. Importantly,
it also includes coordination and collaboration with channel partners, which can be suppliers,
intermediaries, third-party service providers, and customers. Supply Chain Management basically functions
on the principles of providing the Right Product, At the Right Time, Right Place and at the Right Cost for
the customer.

The 5 components of Supply chain Management are

Planning: This phase includes creating a plan to manage the raw materials required to meet
customer demands. It also includes determining metrics to measure whether the supply chain is
efficient, effective, delivers value to customers and meets company goals.

Sourcing: This phase includes the choosing of suppliers who will provide the required goods and
services. Some of the key activities include establishing and monitoring supplier relationships,
ordering, receiving, managing inventory and authorizing supplier payments.

Manufacturing: This phase includes first accepting the raw materials received, manufacturing the
raw material into final products, testing the quality of products produced, packaging and shipping.

Delivery and Logistics: This phase includes the dispatching of the products produced and
coordinating with customers as to when and where to deliver the products. It also includes receiving
payments from customers.

Returning: This phase includes establishing a mechanism to take back defective or unwanted
products.

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Supply chain management is not just limited to managing the flow of goods and services and logistics. It
also includes maximizing the productivity and efficiency of processes which can go straight to the bottom
line of a company. It has been seen throughout the world that the management of supply chains can make
or break a company

Some of the common types of Supply chain management include

A. Continuous Flow Model: Manufactures produce the same good over and over again expecting
little customer variation

B. Agile Model: This approach promotes adaptability and emphasizes that a particular demand
of the business at any given time must change accordingly. Model works best for companies
where demand is unpredictable

C. Fast Model: This model focuses on the quick turnover of products with a short life cycle

D. Flexible Model: This model is incorporated in companies where demand fluctuates. This
model helps quickly setup and set down the manufacturing processes.

The Difference between Supply Chain and Operations Management

The basic difference between supply chain and operations management are explained in the figures below.

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 Chapter 2 - Technical Concepts and
Terminologies
1. Make to Order (MTO): This process typically allows consumers to purchase products that
are customized to their specifications. It is a manufacturing process in which the production of an
item begins only after a confirmed customer order is received. It is also known as mass
customization.

2. Assemble to Order (ATO): It is a business production strategy where products that are
ordered by customers are produced quickly and are customizable to a certain extent. It typically
requires that the basic parts of the product are already manufactured but not yet assembled. Once
an order is received, the parts are assembled quickly and the final product is sent to the customer.

3. Make to Stock (MTS): MTS is a manufacturing strategy in which production planning and
production scheduling are based on forecasted product demand. Products made during one
production period are used to fulfill orders made in the next production period. This means that in
make-to-stock production planning, production is triggered prior to and independent of specific
customer orders.

4. Engineer to Order (ETO): ETO is a type of manufacturing where a product is engineered

and produced after an order has been received. Using the ETO method, a manufacturer can meet
the exact specifications of their customer. ETO is ideally suited to manufacturers of highly
configurable products and often demands close customer engagement throughout the design and
manufacturing phases.

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 5. Lean Methodology: Lean methodology originally sprouted in Japan at Toyota Production
System. Fundamentally, the method emphasizes the idea of “continuous improvement.” Lean
thinkers who brought the methodology from Japan to the West (specifically James Womack and
Daniel Jones) specified five core principles:

• Value: Understand what customers value in a product or service

• Value Stream: What goes into maximizing value and eliminating waste throughout the
entire process from design to production

• Flow: All product processes flow and synchronizes seamlessly with each other

• Pull: Flow is made possible by “pull,” or the idea that nothing is made before it is needed,
thereby creating shorter delivery cycles

• Perfection: Relentlessly pursue perfection by constantly engaging the problem- solving process

6. Six Sigma: Six Sigma is a method that provides organizations tools to improve the capability of
their business processes. This increase in performance and decrease in process variation helps lead
to defect reduction and improvement in profits, employee morale, and quality of products or
services. The Six Sigma expert uses qualitative and quantitative techniques or tools to drive process
improvement. Such tools include statistical process control (SPC), control charts, failure mode and
effects analysis (FMEA), and process mapping. Six Sigma professionals do not totally agree as to
exactly which tools constitute the set.

7. FIFO: FIFO stands for first in, first out, an easy-to-understand inventory valuation method that
assumes that goods purchased or produced first are sold first. In theory, this means the oldest
inventory gets shipped out to customers before newer inventory.

8. LIFO: The LIFO method is based on the idea that the most recent products in your inventory will
be sold first.

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 9. Just In Time (JIT): Just-in-time, or JIT, is an inventory management method in which goods
are received from suppliers only as they are needed. The main objective of this method is to
reduce inventory holding costs and increase inventory turnover. It helps to reduce inventory
waste, decrease warehouse holding cost, gives the manufacturer more control and encourages local
sourcing.

10. Total Quality Management: TQM is a structured approach to overall organizational

management. The focus of the process is to improve the quality of an organization's outputs,
including goods and services, through the continual improvement of internal practices. The
standards set as part of the TQM approach can reflect both internal priorities and any industry
standards currently in place. Industry standards can be defined at multiple levels and may include
adherence to various laws and regulations governing the operation of a particular business. Industry
standards can also include the production of items to an understood norm, even if the norm is not
backed by official regulations.

11. Inventory Management: It refers to the process of ordering, storing, using, and selling a
company's inventory. This includes the management of raw materials, components, and finished
products, as well as warehousing and processing of such items. There are different types of
inventory management, each with its pros and cons, depending on a company’s needs. These
techniques are described in brief

a. ABC Analysis (Category A, B and C based on the revenue generated and volume
occupied)
b. FSN Analysis (Fast-moving, Slow-moving and Non-moving goods based on their
consumption)
c. VED Analysis (Valuable, Essential and Desirable products based on their value)
d. SDE Analysis (Scarce, Difficult and Easy resources based on their availability)

12. Hub and Spoke Model: The hub and spoke model refers to a distribution method in which a
centralized hub exists. Everything either originates in the hub or is sent to the hub for distribution
to consumers. From the hub, goods travel outward to smaller locations owned by the company,
called spokes, for further processing and distribution. It is usually more cost effective than the
point-to-point method of distribution.

13. National Logistics Policy: The goal of the National Logistics Policy is to lower the cost of
logistics from its current 14% of GDP to less than 10% by 2022 despite the highly fragmented
nature of India’s logistics industry. The policy aims to make Indian goods more competitive while
also promoting economic growth and expanding job possibilities. They plan to achieve these goals
by using an integrated logistics system, standardization of physical assets, Capacity building, Service
Improvement Frameworks, Facilitation of the development of Logistics Park, etc.

14. Dark Stores in Q-Commerce: A dark store is a brick-and-mortar location that has been
shut down and turned into a center for fulfilment operations. These distribution outlets are not
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 open to visitors, which allows more space for store inventory and the opportunity to quickly and
accurately fulfil orders. Dark stores provide shoppers with resources and options like purchasing
products online, same-day delivery, or pickup in-store.

15. Demand forecasting: It is known as the process of making future estimations in relation to
customer demand over a specific period. Generally, demand forecasting will consider historical
data and other analytical information to produce the most accurate predictions. More specifically,
the methods of demand forecasting entails using predictive analytics of historical data to
understand and predict customer demand in order to understand key economic conditions and
assist in making crucial supply decisions to optimize business profitability. There are many
qualitative (like Delphi technique) and quantitative (like Time Series Analysis) techniques to
measure demand.

16. Bill of Materials (BOM): BOM is an extensive list of raw materials, components, and
instructions required to construct, manufacture, or repair a product or service. A bill of materials
usually appears in a hierarchical format, with the highest level displaying the finished product and
the bottom level showing individual components and materials. There are different types of bills of
materials specific to engineering used in the design process; they're also specific to the
manufacturing used in the assembly process.

17. Economic Order Quantity (EOQ): A type of fixed-order-quantity model that determines
the amount of an item to be purchased or manufactured at one time.

18. Forecasting: The business function that attempts to predict sales and use of products so they
can be purchased or manufactured in appropriate quantities in advance.

19. Distribution requirements planning (DRP): The function of determining the need to
replenish inventory at branch warehouses A time phased order point approach is used where the
planned orders at the branch warehouse level is “exploded” via MRP logic to become gross
requirements on the supplying source. In the case of multilevel distribution networks, this
explosion process can continue down through the various levels of regional warehouses (master
warehouse, factory warehouse, etc.) and become input to the master production schedule.

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 20. Cross docking: A logistics activity that attempts to reduce costs and total lead time by breaking
down received items on the loading dock and immediately matching them with outgoing shipment
requirements, instead of stocking the items in warehouse locations and returning to pick for orders
at a later time.

21. Cycle time: The total time required to complete a transformation from one status to another.
Total cycle time is composed of many elements, often broken into active (running or operating) time
and idle (queue or wait) time

22. VMI: The process by which the vendor manages the inventory of its products in its distribution
centre is called as VMI. The vendor receives stock information from the customer and then
calculates what should be shipped to maintain adequate inventory levels at the retailer's facility. It is
the preferred method by which customers dump their inventory woes on vendors.

23. CPFR: Collaborative Planning, Forecasting, and Replenishment (CPFR) is the sharing of forecast
and related business information among business partners in the supply chain to enable automatic
product replenishment.

24. Bull whip effect: Bullwhip is a pervasive supply chain problem whereby order variability grows
as demand signals propagate upstream. Essentially, demand spikes as orders flow back from retailer
to distributor to original equipment manufacturers to tier-one suppliers, and so on.

25. Inventory Pull System: System whereby a firm waits to produce product until customers
demand it.

26. Inventory Push System: System whereby a firm produces then pushes product through the
channel without orders in hand. Here, production and inventory levels are guided by forecasted or
anticipated sales to customers.

27. Manufacturing Resource Planning: MRP-II A method for the effective planning of a
manufacturing company, being a direct out- growth and extension of MRP-I.

28. 5S: Sort, straighten, shine, standardize, sustain

29. Kanban: It helps in identifying reordering point, card system

30. Kaizen: Continuous improvement in manufacturing, engineering, and business improvement

31. Cycle time reduction is a vital element of process enhancement, and there are two
methodologies in Six Sigma that are utilized to achieve this objective: DMAIC (Define, Measure,
Analyze, Improve, Control) and DMAV (Define, Measure, Analyze, Verify). Let's delve into
each methodology and understand when they can be applied.

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 32. DMAIC (Define, Measure, Analyze, Improve, Control):

Applicability: DMAIC is commonly employed for existing processes that require improvement
or optimization. It offers a structured approach to problem-solving and process enhancement.

Process:

Define: Clearly define the issue at hand along with project goals and scope.

Measure: Assess the current performance by gathering pertinent data.

Analyse: Scrutinize the data to identify the underlying causes of the problem.

Improve: Implement solutions to address these root causes.

Control: Establish measures to sustain improvements while monitoring the overall process.

Use Case: If you have an established process that exhibits identified issues or inefficiencies then
employing DMAIC would be fitting. This methodology aids in systematically identifying and
eliminating root causes so as to reduce cycle time.

33. DMAV (Define, Measure, Analyze, Verify) is a methodology closely related to DMAIC
and is specifically utilized for handling new processes or significant process redesigns. The
primary focus of DMAV is to ensure that the newly designed process effectively meets the
desired performance standards.

The DMAV process consists of four distinct steps. To begin with, it is crucial to clearly define
the goals and scope of the new process. This step sets a solid foundation for subsequent actions
by providing clarity on what needs to be achieved. Following this, baseline metrics are
established in order to measure and assess the performance of the new process accurately.

Once baseline metrics are determined, data analysis takes place alongside designing the new
process in accordance with identified patterns and insights. This phase involves careful
examination of data points gathered during measurement as well as conceptualizing an improved
approach that aligns with desired outcomes.

The final step entails verifying whether or not the newly designed process successfully meets all
predetermined goals and criteria previously defined during initial stages. Verification ensures
that any potential issues or inconsistencies are detected early on so they can be addressed
promptly before full implementation.

In practical terms, when introducing a completely novel procedure or making substantial

modifications to an existing one, utilizing DMAV proves beneficial due to its ability to guarantee
optimal performance aligned with objectives such as cycle time reduction.

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 However, if you find yourself dealing with an existing procedure that requires improvement
rather than complete overhaul from scratch, then employing DMAIC would be more suitable.
The DMAIC approach facilitates systematic resolution of current issues while simultaneously
optimizing overall performance levels.

Ultimately though, DMAV serves as an invaluable tool for ensuring success when embarking
upon uncharted territory by implementing brand-new processes or undertaking major redesign
projects from start-to-finish while adhering strictly to predefined goals and criteria set forth at
inception stage. Therefore, it remains essential to choose wisely between these two
methodologies based on their respective applications within specific contexts.

Both methodologies emphasize data-driven decision-making and continuous improvement, but

their focus on existing processes (DMAIC) and new processes or redesigns (DMAV)
differentiates them based on the specific needs of the situation.

34. 7 Types of Waste –

▪ Transportation - This waste refers to any unnecessary transportation, such as that commonly
associated with the transit of materials or parts. Transportation is not a value-add activity as it
does not help transform the product into the customer requirement and can add further problems
through delays, damage or items being lost.

▪ Inventory - Any parts or materials that are not immediately required are considered waste –
Inventory is one of the seven wastes that is most easy to spot in that it is easy to physically see
around the business. Inventory is waste as it ties up resources to manage it for example storage
space, personnel, capital outlay and processing.

▪ Motion - An effective working environment can help reduce motion for a given process. This
may entail providing tools and equipment at point of use or making material handling processes
more efficient. A common tool used to analyse motion is the spaghetti diagram which can be
very effective at highlighting issues.

▪ Waiting Time - Several causes can result in waiting, where the equipment is not in use, thus
reducing the utilization and the effective capacity of the process.

▪ Over processing - Over processing is typified by carrying out more work on a product than is
required – this might be using more precision tools than are required through to, in the example
of office activity, bureaucratic approval systems for documents requiring multiple signatories or
reviews. Removing over processing requires careful consideration to ascertain the actual
requirement and ensuring that the process is engineered to meet this without any further burden.

▪ Overproduction - Producing more of something than is required by the customer is waste – close
attention to batch sizes and change over times can be imperative in not over producing. The
impact of overproducing can be considerable – not only is extra-material consumed but extra

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 processing and storage requirements add to the problem causing another of the seven wastes –
inventory.

▪ Defects - Getting it wrong results in waste – whether that is manufacturing faulty parts that
require rework or at worst being scrapped or documents that are incorrectly completed which can
result in confusion or mistakes. Defects have a very real impact on the bottom line of your
business and can be one of the key contributors to inefficiency.

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 Chapter 3- GD/WAT/FAQs in Interviews
▪ GD/WAT Topics

▪ ChatGPT – Advantages & Disadvantages

▪ Digital Rupee

▪ Impact Of AI On Jobs

▪ Can Electric Cars Succeed in India?

▪ Impact Of Social Media on Psychology and Society

▪ The Menace of Fake News and Paid News

▪ Metaverse

▪ Will TV Broadcast/ Cable TV Survive the Onslaught of Netflix, Hotstar & Prime?

▪ India Middle East Europe Economic Corridor

▪ Is It the time to Implement Uniform Civil Code in India?

▪ Aatmanirbhar Bharat Abhiyan

▪ A 70-Hour Workweek: Is It Feasible?

▪ Dedollarization: A New Trend for The Future?

▪ ISRO & India’s Moon Mission

▪ Riots In Manipur

▪ Should Sedition Law Be Repealed?

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Interview Questions – Engineering Related
✓ How is production engineering different from mechanical engineering?
✓ What is Six Sigma, Process Capability and Process Capability Index.
✓ Difference between PERT and CPM.
✓ Which one among PERT and CPM is probabilistic?
✓ What is Gemba kaizen?
✓ What is lean manufacturing?
✓ What is Kanban?
✓ What is bullwhip effect?
✓ What is EOQ? What is the formula for EOQ?
✓ Why do you want to pursue a career in operations?
✓ What, according to you, are the roles and responsibilities of an operations manager?
✓ Discuss an instance in which one of your ideas has helped to improve operations
✓ What do you do when facing a small budget or lack of resources? Have you faced this challenge in the
past
✓ What is one example of a project you oversaw that involved multiple teams? How did you manage
that situation, and what was the result?
✓ As operations manager, what is your process for identifying and overcoming bottlenecks in your
projects?
✓ Define Mean, Median and Mode
✓ What will be the slope of this curve? (Drew a diagram)
✓ What is linear programming? Are all problems linear in nature?
✓ What do you know about Industrial Automation 4.0? What is your opinion on Industry 5.0 approaching
✓ What is ABS in automobiles?
✓ What is the meant by destructive and non-destructive testing?
✓ Driverless cars and their fallacies?
✓ What are your views on hydrogen fuelled cars?
✓ What are your views on electric cars and vehicles?
✓ What is ergonomics?
✓ What is the difference between the Petrol Engine and Diesel Engine?
✓ What is a carburettor? What is Multi-point Fuel Injection?
✓ Can you give any instance where you have used principles of operation and or supply chain management
in daily life other than professional field
✓ What do you think must be the skills required by the lean professionals today?
✓ What skills are required today by the supply chain managers?
✓ Company which introduced world to hub and spoke model?
✓ Questions about Sustainability, CSR etc.
✓ In which case will you use the following inventory management method:

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 1.⁠ ⁠ABC
2.⁠ ⁠FSN
3.⁠ ⁠VED
4.⁠ ⁠SDE

Skills required to be an efficient operations manager

✓ Ability to manage the organization

✓ Technical Proficiency

✓ Data processing skills

✓ Optimize the solution proposed

✓ Establishing Quality Standards in the tasks undertaken

✓ Monitoring Budget Constraints

✓ Motivational skills

✓ Communication Skills

✓ Maximizing staff utilization

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About Opsession – The Operations and Supply Chain
Management Club of MDI Gurgaon
Opsession, the Operations and Supply Chain Management Club at MDI Gurgaon, is a
student-run organization dedicated to connecting students interested in Operations and
Supply Chain Management domain Our mission is to close the knowledge gap between the
classroom and real-world applications by promoting learning through contests, case studies,
conferences, Live Projects, and magazines in Operations Management, Supply chain, and
Logistics We strive to engage students through innovative events, workshops, and
publications at both national and campus levels Our activities, promote knowledge growth
and foster innovation.

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