ASSIGNMENT 01 Name Registration Number Learning Center Learning Center Code Course Subject Semester Module No.

. Date of submission Marks Awarded : : : : : : : : : : Dr. Supriya M H 511224766 KiPS Institute of Technology and Management 00102 Master of Business Administration Production and Operations Management Second
MB0044

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

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1.

Explain briefly the Computer Integrated Manufacturing

Integration occurs when a broad range of manufacturing and supporting activities are linked. CIM is the complete automation of a manufacturing plant, with all processes functioning under computer control and digital information tying them together. The three major functions in manufacturing are production, design, and management function. Production function converts resources into products. The design function transforms customer specifications into design. Finally the management functions plan and control production activities. The three computer aids in CIM are: production function (automated flow of materials) Computer aid to the

Computer aid to the design function (automated

flow of technological information) Computer aid to the management function (automated flow of managerial information) 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. (See Figure 2.2 for CIM related activities

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 utilisation 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 is automation? What are the kinds of automation?

Automation is the use of scientific and technological principles in the manufacture of machines that take over work normally done by humans.

For services, automation usually means increase in quality and productivity using labour saving devices. Automation is ideal when the service provided or the product manufactured is highly standardised. Some extent of automation can be designed even with customisation, that is, product or services meant to produce or deliver low volumes specific to a requirement. The cost per unit determines the extent of automation required. Automation systems cost huge sums of money and therefore, a deep analysis of the various factors has to be done. The advantage of automation is that it has low variability and will be more consistent on a repetitive basis. On the shop floor variability causes loss of quality. There are three kinds of automation: fixed, programmable, and flexible. 1. Fixed: By its very nature, fixed automation is rigid. They are designed for high volume production and their rigidity ensures less variability. They are not amenable to change in product or process. They need minimal human intervention. Examples: Oil refineries and chemical processing units. 2. Programmable: Programming devices enable machines to operate automatically. The machines have sensing and control devices that enable this. The simplest of them called machine attachments

replace human effort. They guide, locate, move, and achieve relative positions by means of cams, optical sensing, and load sensing mechanisms and activate the controls to remove human intervention. Numerically controlled machines read instructions and convert them to machine operations. Computers are used for controlling one machine or a number of them and they have programmes written into them for operations. They are Computer Numerically Controlled or, for short, CNC machines. 3. Flexible: Robots are higher in the order of automation as they perform a variety of tasks. They are designed to move materials by holding them in their arms and making precise movements according to programmes written into the computers that reside in them. They simulate human actions. They can grip and hold tools with the help of sensors. These sensors are sensitive to touch and force to know that the material is to be held with the requisite pressure for the conduct of operations. Vision sensors are used for inspection, identification and guidance. They use optics based instruments to gather data and feed them to the computers for activating the other parts of the robot. With the help of automation, 100% inspection of components can be done which ensures highest quality. Identification and movement of materials are helped by bar codes which are read and fed into the system for monitoring quantity, location, and movement. They help the automated systems to sort information and provide information for effecting any changes necessary.

3.

What are the factors that influence the plant location?

Facilities management is an important strategic level decision taken by an organisation. It involves planning and management of the plant location and layout. A plant location cannot be changed frequently since a large capital needs to be invested to build the plant and machinery in the selected area. Therefore, before selecting a plant location, a long range forecasting is to be made to foresee the future needs of the company. Location decisions are made on the basis of parameters which make it suitable for various considerations of suppliers and markets. Factors influencing Plant Location can be broadly divided into two types namely: general factors and special factors 5.2.1.1 General factors The general factors that influence the plant location are listed below (See Figure 5.2 General factors influencing plant location). 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 organisation. 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 organisation to get the labour at the right time and raw materials at good qualities. The plant should be located: there is no loss of weight the transportation cost Closeness to market places: Organisations 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:

very often The advantages of locating the plant near to the market place are: goods to the customers 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. Infrastructure: Infrastructure plays a prominent role in deciding the location. The basic infrastructure needed in any organisation are: ries 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. 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. 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 labour 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 organisation. These factor seems to be unimportant, but have a difference as they motivate the employees and hence the location decisions. 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

4.

Describe the seven basic quality control tools.

Flow Chart, Check sheet, Histogram, Pareto Analysis, Scatter Diagram, Control Chart, and Cause and Effect Diagram are the basic seven control tools considered for achieving quality. Flow Chart: Flow chart 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, analysed, and methods for correction can be developed using flow charts. The various steps include: the various steps or activities in a particular job Each

decision point generates alternatives. Criteria and consequences that go with decisions are amenable to evaluation for purposes of assessing quality. The flow chart helps in pin-pointing the exact points at which errors have crept in. Check Sheet: Check sheets are used to record the number of defects, types of defects, locations at which they are occurring, times at which they are occurring, and workmen by whom they are occurring. The sheet keeps a record of the frequencies of occurrence with reference to

possible defect causing parameters. It helps to implement a corrective procedure at the point where the frequencies are more. The table shows that the number of defects 1 and 5 are not many as compared to defect no 2 which increased over the days and appears to be stabilising at the higher side and therefore needs to be attended immediately. The column which shows days can be changed to observed by the hour, if need be. Histogram Histograms are graphical representations of distribution of data (See
Figure 6.4 for Sample histogram chart). They are generally used to record huge volumes of data about a

process. They reveal whether the pattern of distribution has a single peak, or many peaks 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. The values shown are the number of observations made regarding a parameter. Sometimes, the percentages are shown to demonstrate the relative contribution of each of the parameters. Pareto Analysis: Pareto analysis 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 having problems and there are 11 possible causes, it is observed that 80 percent of them, that is, 147 of them have been caused by just 2 or 3 of them. It will be easy to focus on these 2 or 3 and reduce the number of defects to a great extent. When the cause of these defects has been attended, we will observe that some other defect becomes predominantly observed and if the process is continued, we are marching toward zero defects. Scatter Diagram: Scatter diagram is used when we have two variables and want to know the degree of relationship between them (See Figure 6.5 for Sample scatter diagram). We can determine if there is cause and effect relationship between the variables and the degree of extent over a range of values of the variables. 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. We can see that the change in variable 2 does not have much effect on variable 1. The other interpretation can be that for a small change in variable 1, the effect on variable 2 is more. Control Charts: Control charts are used to verify whether a process is under control. Variables, when they remain within a range, will render the product and maintain the specifications. This is called 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 percent of all values to lie within the Upper Control Limit (UCL) and Lower Control Limit (LCL) of data helps in changing settings to bring back the process closer to the target. Cause and Effect Diagram: Cause and effect diagram represents all the possible causes which lead to a defect on quality characteristics. These are arranged in such a way that different branches representing causes connect the stem in the direction of the discovery of the problem (See Figure 6.6 for Sample cause and effect

diagram). When each of them is investigated thoroughly we will be able to pin-point some factors

which cause the problem. We will also observe that a few of them can have cumulative effect or even a cascading effect. When we observe that we have excessive defects from a machine, we try to identify all possible sources of the causes of defects. We make a study of each of them and try to correct it.

5.

Define project management. Describe the five dimensions of project management

Managing a project is the practice of controlling the use of resources, such as cost, time, manpower, hardware, and software involved in the project. It usually starts with a problem statement and ends with delivery of a complete product (See Figure 8.1 Project management). Project management involves understanding the scope and various processes in a project cycle. Project management can be

considered to have five dimensions which are necessary to be managed. The dimensions are Features, Quality, Cost, Schedule, and Staff. The five dimensions of project management are dependent of one another. For example, if you add staff, the schedule may shorten and the cost might increase. The trade-offs among the five dimensions of project management are not linear. For each project, you need to decide which dimensions are critical and how to balance the others so as to achieve the key project objectives. Each of the five dimensions can take one of three roles on any given project: 1. Drive: A driver is a key objective of the project. It has low flexibility towards the project team. 2. Constraint: A constraint is the limiting factor beyond the control of project team. It gives the project team virtually no flexibility. 3. Degree of Freedom (DoF): Any project dimension that is neither a driver nor a constraint becomes a degree of freedom. A degree of freedom provides wider latitude towards the project team for balancing that dimension against the other four. An important aspect of this model is not which of the five dimensions turn out to be drivers or constraints on any given project, but that the relative priorities of the dimensions be negotiated in advance by the project team, customers, and management. A graphical way to depict these points is to use a Kiviat diagram. (See Figure 8.3
Kiviat graphical representation) A Kiviat diagram is a graph which allows us to plot several values of a

project. The Kiviat graph is a useful tool in project management to compare the relative flexibility of the parameters considered. In this case, the five parameters (features, quality, cost, schedule, and staff) of project management can be graphically represented as an irregularly shaped polygon on a set of normalised axes. The position of each point on its axis indicates the relative degree of flexibility of that dimension for a particular project. It is plotted on an arbitrary scale of 0 10. completely constrained 10 would indicate - completely flexible

6.

What is meant by Supply Chain Management (SCM)? What are the objectives of SCM?
Supply Chain Management (SCM) is considered by many experts worldwide as the ultimate solution towards efficient enterprise management. Many management failures have been attributed to the lack of a system to bind various sub-systems within a geographically widespread enterprise, which true to modern trends, also includes an umbrella of customers, suppliers and associates. Managers of

tomorrow are therefore, expected to raise themselves above the level of perpetual crisis management to one of proactive, predictive, and performance-oriented management.

Need and objectives SCM is required by an enterprise as a tool to enhance management effectiveness with the following organisational objectives: Reduction of inventory Enhancement of participation level and empowerment level Increase in functional effectiveness of existing systems like Enterprise Resource Planning (ERP), Accounting Software, and Documentation such as Financial reports/

Statements/ISO 9000 Documents Effective integration of multiple systems like ERP, communication systems,

documentation system and security Better utilisation of resources like men, material, equipment, and money Optimisation of money flow cycle within the organisation as well as from external agencies Enhancement of value of products, operations, and services. These enhancements will consequently enhance the profitability of organisation of customers and clients, supporting institutions, statutory control agencies, suppliers and vendors, employees and executives Enhancement of flexibility in the organisation to help in easy implementation of schemes involving modernisation, expansion and diversification even divestments, mergers and acquisitions

Enhancement of coverage and accuracy of management information systems