Ques-1 (a) Explain the functions of Production Planning and Control

(b)What is meant by Differentiation Strategy? Explain briefly.

Ans-1
 Production Planning

Estimating: Estimating entails determining the labor, equipment capacity, and materials needed
to reach the intended production objectives.
The process of routing: The process of determining the order of operations is known as routing.
It addresses the issue of transferring supplies to work centers in precise phases. It monitors the
completion of activities according to requirements, ensures that inspections have been performed
at each stage, and informs about the next operation.
Scheduling: Scheduling fixes the priorities for various jobs and is mainly concerned with the
completion of jobs at pre-set times. This helpsin balancing loads on work centers as well as
utilizing the labor time. This function is important for ensuring delivery as per schedule and
achieving cost effectiveness.
 Control Planning

Dispatching: Dispatching is involved with starting up industrial activity. Production tasks

involve issuing material release instructions and transporting items from work centre to work
centre while following routing and timing criteria. This involves operations such as releasing the
essential tools and equipment, instruments, and inspection devices for manufacturing. Even
machine configurations will be offered.

Expediting: The Expediting function guarantees that progress is adequate, that the production
process route is free of limitations, and that the workflow is seamless. It is useful when out-of-
turn deliveries are necessary to fulfill market needs. It may also be required to expedite the
process by providing more resources to fulfill the deadlines.
 Differentiation Strategy
A differentiation strategy is a method used by organizations to attract and retain consumers by
providing them with a one-of-a-kind product or service. This strategy's primary purpose is to get
a competitive edge. To get to this differential, businesses do a SWOT (strengths, weaknesses,
opportunities, and threats) study and understand their consumers' demands. Most businesses
struggle to distinguish because they only talk about their core product or service. This is
frequently the same as what their competition provides. To differentiate yourself from the
competition, you must clearly express the distinct value proposition you provide to the consumer.
 There are two kinds of differentiation strategies:

1. Broad Differentiation Strategy: When a corporation wants to attract a large number of

consumers, it offers a superior product with more features. They reach a larger market with
comparable demands. Nat Habit, for example, is a brand that produces fresh, natural skin and
hair care products.
2. Focused Differentiation Strategy: When an organization targets a specialized or niche
market sector, it generates distinct goods for each of those segments or niches. Nat Habit
provides various items to meet its customers' demands of items to meet the demands of its
customers. For example, the firm makes many types of hair masks for various requirements, such
as hair fall management, dandruff control, and grey hair control.

 Benefits Of Strategy

1. Reduced Price Competition: Companies frequently engage in pricing wars with competitors.
You may compete on grounds other than price by distinguishing your product or service. If the
quality of your product is unrivaled, rivals will struggle to compete even if their pricing
is cheaper. This is one of the most significant benefits of a differentiation approach.
2. Unrivaled items and Services: as previously said, if you have unique items, your competition
will take some time to match up. Meanwhile, you have the potential to apply cutting-edge
marketing and promotion tactics to put your product in a class of its own.

Ques-2 (a) Discuss Strategic Importance of Forecasting

(b)Why redesign of existing layout may be necessary?

Ans-2 (a) The prediction is critical for all sorts of industrial activities, as well as industries
exclusively in the service sector, such as healthcare and education. Good projections are crucial
in every facet of a business: Until actual demand is known, the forecast is the sole estimate of
demand. Forecasting is therefore believed to drive decisions in various commercial domains.
Forecasting has an impact on three important actions. They are as follows:
 Human resources
 The capacity
 Supply chain administration

Human Capital
Typically, the amount of people needed is a function of product output, which is
dependent on demand predictions. As a result, hiring, training, and laying off employees
are all dependent on the projected demand. When new employees are employed in
anticipation of a surge in demand, it is believed that they will be able to rapidly transition
into the appropriate position. Apart from creating solid relationships with current
employees, training is essential. Similarly, removing staff creates a demoralising
atmosphere. Furthermore, the fired employees will spread the word, and the industry will
suffer as a result of its negative reputation and image.

Capacity
Capacity refers to the company's capacity to satisfy demand in terms of resources and
readiness. When the demand pattern is well understood and predicts an increase, capacity
build-up occurs, ensuring that no sales are lost due to a lack of a product. If, on the other
side, demand falls, it indicates a drop in capacity. As a result, no needless investments are
made. Demand forecasting is essential for both capacity-led and capacity-lag choices.

Supply chain administration

Supply chain management encompasses all of the actions that enable the correct product
to be delivered to the right place at the right time. As a result, demand forecasting must
be done with extreme caution in order to discover vendors, pricing possibilities, and
material options. When demand is adequately projected, it is simple to arrange for
suppliers, logistics, and other intermediates to assure product delivery on time.

(b) A current layout may need to be redesigned for a number of reasons. These are listed
below:
 Building not appropriate for needs
 Modifications to processes or products without corresponding changes to the
layout
 The addition of new equipment without taking into account how it may affect the
current flow pattern
 Unexpected delays and downtime
 Stock management issues
 A reduction in productivity in a region
 Crowded surroundings
 Materials are being moved by a large number of persons.
 Turning around
 Abundant short-term storage
 Barriers to the movement of materials
  Issues with scheduling
 Inefficient use of space
 Idle workers and equipment
 Long processing times
 Sloppy housekeeping

Ques-3 (a) Describe the general factors that influence the plant location decision.
(b)State the elements of operations strategy.
Ans-3
(A) General variables that affect the choice of the plant site.

1. Proximity to the Raw Material

The cost of transporting raw materials from the vendor's end to the plant will be lessened if the
raw material is accessible close to the plant. The location of facilities that use raw materials in
large quantities or that need heavy raw materials yet lose a significant quantity of material during
processing is particularly important.
2. Transportation resources
One thing to keep in mind is that the shipping cost should be minimal in comparison to the
overall cost. A appropriate mode of transportation, such as roadways, rail, sea, or air is chosen,
and the site location is determined accordingly, depending on the size of the raw materials and
final items.
3. Proximity to the market
It lowers the price of transportation and lessens the possibility that the completed product would
be harmed or ruined during transit. If the industry is close to the consumer, it may capture a
significant portion of the market by providing prompt services.
4. The labour force's accessibility
The availability of workers is a significant element that affects decisions on where to locate
plants. A sufficient pool of skilled workers combined with fair remuneration can be very
advantageous to the company. However, businesses that require a lot of workers should locate
their plants closer to the source of employment.
5. Accessibility to fuel and electricity
In the majority of situations, the location of a plant is no longer determined by the availability of
fuel due to the widespread usage of electric power. Even yet, steel production facilities are
situated close to fuel sources to cut down on fuel transportation expenses.
6. Water availability
For processing, drinking, and hygienic purposes, water is used. Water should be accessible in an
appropriate quantity and quality depending on the type of plant.
7. The weather situation
For many sectors, the region's development of heating, ventilation, and air conditioning does not
create many challenges. However, climate has an impact on some businesses, like agricultural,
leather, textile, and others. Extremely dry or humid environments are unsuitable for such
businesses' plant locations.
8. The financial aspect
Various states provide loans, subsidies, bonuses, and sales tax exemptions to the new units in
order to entice investment and large-scale companies. Therefore, selecting the state is crucial for
developing new industries.

(B) The operational strategy has five components.

1. Production system: How resources are transformed into marketable goods and services is
decided upon by an organization's production system. Clear processes, quality control
benchmarks, and supply chain management techniques are all components of a complete
production system.
2. Facilities: The size and number of a company's manufacturing facilities have an impact on its
operating capabilities. Achieving production targets, defining safety protocols, and implementing
inventory management systems are necessary for some facilities to operate properly.
3. A good or service: The management of a product's or service's quality is one of the most
crucial components of any operations plan. In order to forecast market trends, modify their
product or service, and devote resources to new service and product development, businesses
examine the lifespan of their goods and services.
4. Technology: New technical advancements like machine learning, manufacturing line
automation, real-time measurements, and market forecasting tools are becoming more and more
important to operations strategy.
5. Resources: A thorough overall plan for operations considers all of an organization's
operational resources, including physical, technological, and human resources.

ASSIGNMENT SET 2

Ques-4 Briefly describes various approaches to TQM.

Ans-4 (A) Deming wheel, first

The American who introduced quality improvement to the Japanese is widely recognized as
being Edward Deming. Deming's concept aids businesses in enhance the caliber of the goods and
services they provide. 14 points serve as a summary of Deming's strategy:
1. Persistence in goal-setting for ongoing progress
2. Adopt the principle of overall quality management for economic gains.
3. Don't rely just on quality assurance inspections; 4. Never choose a vendor solely on the basis
of pricing.
5. Constantly enhance the manufacturing and service system
6. Implement effective training on the job
7. Adopt contemporary management and leadership techniques
8. Banish fear from everyone involved with the business
B) The excellent Juran trilogy
Like Edward Deming, Joseph Juran is recognized as a renowned quality guru and a supporter of
the culture of comprehensive quality management. "Fitness for use" is the definition of quality,
according to Juran, and is thought to be the most appropriate. To develop top-notch
programming, Juran employs his well-known universal breakthrough sequence. The sequences
for universal breakthroughs are:
 Proof of need - There should be a strong need to change.
 Project identification- Is the process of determining what needs to be altered.
Determination of specific projects, their timetables, and resource allocation.

C) Crosby's standards of excellence

The "Zero Defects" quality idea is well recognized around the world thanks to Philip Crosby.
Like Deming, Crosby emphasizes the need of top management commitment and accountability
for system design, which prevents faults from being unavoidable. He argued that there should be
no cap on how much is spent to produce quality. Long-term, preserving quality is more cost-
effective than sacrificing its attainment. The following is a list of his absolutes:
 Quality is not 'goodness'; it is compliance to criteria.
 The way to quality is via prevention, not evaluation.

Crosby has added 14 points that are comparable to Deming's. In order to prevent the benefits
gained from being lost over time, his approach places a strong focus on quality monitoring,
raising awareness, correcting action, removing errors that caused the error, and constantly
strengthening the system. He said that the quality management programme should boost the
organization's general health and recommend vaccination. Ingredients include:
 Integrity is important because it allows people to do things correctly the first time, every
time.
 The exchange of information among departments, vendors, and consumers facilitates the
identification of opportunities.

(D) The Taguchi quality loss function

Japanese quality expert Genichi Taguchi, in contrast to other authorities, views quality from the
standpoint of loss. He opposes just meeting with the requirements, but maintains that the quality
attributes should constantly be within a certain distance of the nominal or goal value. According
to Taguchi, quality is a result of design. He promoted the extensive use of experiment design to
test various hypotheses and provide specifications that will lead to high-quality output. It aids in
bringing forth quality changes that are affordable. He thought designers needed to create strong
designs so that their goods could survive variability that tended to be persistent and provide
quality for extended periods of time. He uses the loss function to achieve the following goals
ensure manufacturers understand that the specification's goal value, not the allowed variations,
should be attempted to be accomplished. The loss is equal to the square of the deviation times a
cost factor.
Where,
Total loss: L
C = Constant Cost
X = The quality characteristic's average value
T = The characteristic's target value
As long as the product is in use, both the makers and the consumers in society will have to bear
the costs of diminished performance, according to Taguchi, who also discusses losses to society
as a result of a blemish in quality.

Ques-5 (a) What are the objectives and tasks involved in scoping?
(b) What is Bullwhip Effect in Supply Chain Management and how can it be
prevented?
Ans-5 (A) Scoping’s primary goal is to:
 Set the project's parameters.
 List the goals the initiative will address.
 Give the project instructions and make it possible to evaluate the quality of the finished
items.
The project manager may create an overview of the project plan thanks to scoping.

A general project plan:

It is best practice to create a project overview before beginning any project work. The project
preparation is organized according to the outline. It includes the following features:

 The project's context is as follows: Describe the business context's pertinent economic,
technological, and political factors. Also, provide a description of the project's business
strategy, objectives, difficulties, and problems.
 Project aims and purpose: The project's goals and purpose describe why the project is
being undertaken as well as its advantages and other components of the agreement. The
project's goals are the cruel actions that will be taken to accomplish its aim.
 Tasks, milestones, and deliverables: The project manager selects the project's tasks,
milestones, and deliverables. He or she would create a list of all the project-related tasks,
designating who was responsible for each, the length of each work, and the anticipated
completion date for each such task.
Activities related to scoping

The following is a list of the tasks that the project manager will need to complete during project
scoping. He or she must:

 Set project goals that might be determined by customers through workshops and
interviews. This will guarantee that the project will follow the organization's strategic
business plan. Project goals may include
 Define the scope of the study in order to ascertain the project's dimensions and to decide
any restrictions, particular restrictions, or exclusions that may apply. Any assumptions
used to define the scope should be noted.
 Determine the initial requirements, then compare them to the project objective(s).
 Determine the standards by which the success of the finished project and the
creative process will be measured.

Bullwhip Effect in Supply Chain Management

An company experiences ups and downs over time. It is essential that the organization's
managers monitor market circumstances and assess developments. To fulfill market needs, they
must decide how to allocate resources and make the appropriate adjustments inside the business.
Failure to do so might cause the orders to swing wildly. This might have a negative impact on
how the organization runs, leading to a lack of communication and trust between supply chain
participants. Changes might impact information and impact the supply chain by amplifying
demand. The uncertainty brought on by skewed information that moves up and down the supply
chain is known as the bullwhip effect. Nearly all industries are impacted, and businesses that
face significant demand fluctuations as well as those that depend on suppliers, distributors, and
retailers are at danger. The following elements might result in a bullwhip effect:

 Extension of the project's lead time as a result of increased demand fluctuation

 Stocks are increased to meet the rising demand as a result of complex demand models
and forecasting methods.

How can it be avoided?

One or more of the following actions may prevent the bullwhip effect:
 Prevent using multiple demand forecasts
 Dividing single orders into a number of order batches
 Maintaining a sufficient stock will help to stabilize the pricing and reduce the risk
associated with overstocking.
 Lower the variability and uncertainty in information sharing and point of sale (POS)
systems
  Shorten the lead time during the project's stages Continue to analyze historical data and
monitor current and future need levels
 Increase operational effectiveness by outsourcing logistics to a qualified organization.

Ques-6 (A) What are the various steps in project monitoring and controlling? Explain briefly.
(B)What are the types of wastes to be eliminated?
Ans-6
Initial work:
The team members must be familiar with the project plans, stage schedule, progress controls,
monitoring schedules, cost breakdowns, and spreadsheets that are connected. Every member is
required to be aware of the tolerances for any modification and to keep a change control log.
They must recognize the value of quality, for which they must adhere rigidly to a timetable for
quality reviews and constantly discuss quality agendas. The stage status reports, stage end
reports, and stage end approval reports must be understood by them.

Project progress: The team members are responsible for monitoring the project's progress and
communicating it to other relevant team members. They must employ frequent checkpoints,
quality charts, and statistics tables to monitor and manage project progress. The members must
take action to manage the quality elements that are likely to differ from the predicted values
since any variation might cause the stage schedule to alter. The project manager arranges review
meetings with the project management team and makes sure these modifications are
implemented without incident. As a result, everyone is constantly informed of the project's
status. This enables them to prepare in advance for any emergency brought on by a change in the
anticipated timeline.

Stage control: A project checkpoint cycle has to be established by the project manager. The
appropriate stage version control mechanisms may be used for this. The information must be
recorded in stages. Project files must be regularly updated, given a proper version control
number, and should keep revision status for each modification. At various stages of the project,
team members who will exercise controls are identified.

Resources: The project manager must schedule the resources needed at different project phases.
The project team and the essential resources must be informed on the goals of each stage, the
planned actions, the products, the organizational KPIs, and the project controls. This improves
project performance visibility, allowing for the implementation of quality control. The efficiency
and efficacy of the resource are considerably increased when it is allocated at the appropriate
time and location.

Quality assurance: In each project, quality assurance is crucial. If the project participants
adhere to the quality charts and guidelines properly, quality control is achievable.

Project progress control may be attained by taking into account the following factors.
Approvals: In order for a project to succeed, senior management or the project's sponsors must
be confident in every part of it. The senior management analyses the choices made and the
planned activities at this project stage and gives their approval. The objectives of this type of
assessment are to increase productivity and quality by identifying flaws in a timely, cost-
effective way. A group review meeting's overview, planning, preparation, recommendations for
revision and various more steps make up the process.
Transportation is the needless movement of goods, people, and machinery that frequently wastes
time and might cause harm.

The types of wastes to be eliminated

Inventory: An excessive amount of inventory that locks up capital funds, consumes precious
space, and needs management resources.

Motion: Unnecessary and risky movement that might hurt people, damage property, or result in
a defective product. This is distinct from transportation because when it comes to humans, we are
discussing ergonomic concerns rather than just moving them.

Waiting: Wasting time while you wait for supplies, personnel, tools, and information to arrive so
you may complete your task.
Overproduction: When you produce more than what your process or customers want, you incur
excess inventory as well as all the costs listed under inventory.

Over processing: Performing more services than the client desires, requires, or is prepared to
pay for.

Defects: If a product is produced or a service is provided and it is defective, it must either be

reworked or scraped. Both services won't be paid for by the client.