PRODUCTION AND OPERATIONS

MANAGEMENT
ASSIGNMENT 1

By

Bavya.R
19epmb013
 Production And Operations Management
1. Define production and operation management?
Production and operation management is about the transformation of production and
operational inputs into outputs that, when distributed, meet the needs of customer.
2. Define operation management?
Operations management is the process in which resources/inputs are converted into more
useful products.The process whereby resources,within a defined system are combined
and transformed in an accordance with policies communicated by the management.
3. What are the basic management functions?
 Planning
 Orgsnising
 Staffing
 Leading
 Controlling
4. Importance of operations management?
 Helps to achieve the objectives
 Improves the productivity of employees
 Improves goodwill
 Able to utilize resources
 Presence of the organization
 Improves the motivation of employees
5. What is product?
A product is a tangible item that is put on the market for acquisition,attention,or
consumption.
6. What is service?
A service is an intangible item,which arises from the output of one or more individuals.
7. Differentiate product and service?

PRODUCTS SERVICES
It is tangible It is intangible
Quality standard can be attained It is very difficult to attain quality standards
Physical possession is possible Physical possession is not posible
It can be stored It cannot be stored
It can be transported It cannot be transported

8. Define productivity?
It is a relationship between the output and the input of business system.It is comput by
dividing average output per period by the total costs incurred or resources consumed in
that period.
Productivity=output/input
9. What are the factors affecting global business operation condition?
 Growth opportunities
 Cost factors
 Profit advantage
 Strategic vision
 Competition
10. Types of production system?

Intermittent production system

i) Project production system

ii) Jobbing production system
iii) Batch production system

Continuos production system

i) Mass production system

ii) Process production system
11. Define assembly line balancing?
It is also defined as assigning proper number of workers or machines for each operatios
of an assembly line so as to meet required production rate with minimum or zero ideal
time.
12. What are the principles of layout?
 The principle of minimum travel
 Principle of sequence
 Principle of usage
 Principle of compactness
 Principle of flexibility
 Principle of minimum investment
13. What is plant layout?
It refers to the arrangement of machinery,equipment and other industrial facilities for
achieving quickest and smooth production.
14. What are the types of process design?
  Product focused
 Process focused
 Group technology/cellular manufacturing
15. Design and development of new services?
Service design practice is the specification and construction of processes that delivers
valuable capacities foraction to a particular customer.It is a practice for both tangible and
intangible and it can involve artifacts or other elements such as
communication,environment and behaviours.
16. What are the product development process?
 Idea generation
 Idea screening
 Concept development and testing
 Marketing strategy and development
 Business analysis
 Product development
 Test marketing
 Commercialization
17. Define aggregate planning?
Aggregate planning is an operational activity critical to the organization as it looks to
balance long-term strategic planning with short term production success.
18. What is master production schedule?
Master Production Scheduling is the process that helps manufacturers plan which
products and related quantities to produce during certain periods. MPS is proactive in that
it drives the production process in terms of what is manufactured and what materials are
procured.
19. Fuctions of master production scheduling?

The MPS strives to form a detailed plan that fulfils the following objectives:

 Achieve desired customer service levels

 Make the most efficient use of resources
 Maintain a desirable level of inventory
20. What is material requirement planning?
Material requirements planning (MRP) is a system for calculating the materials and
components needed to manufacture a product. It consists of three primary steps: taking
inventory of the materials and components on hand, identifying which additional ones are
needed and then scheduling their production or purchase.
21. Elements of material requirement planning?
 MRP Information Sources
 Case Studies
 Problems That are Unavoidable
22. What is sizing in MRP?
 Base on the requirements of product, MRP refers to the net requirements of parts or
materials. But these requirements without any change may be unsuitable for placing an
order or manufacturing. Lot sizing is to unify the calculated net requirements by a certain
unit considering cost reduction and work efficiency.
23. What is capacity planning techniques?
Capacity is defined as the ability to achieve, store or produce. For an organization,
capacity would be the ability of a given system to produce output within the specific time
period.
 Long Term Capacity
 Medium Term Capacity
 Short Term Capacity
24. Define material planning?
Material planning is a scientific way of determining the requirements starting with raw
materials, consumables, spare parts and all other materials that are required to meet the
given production plan for a certain period.
25. Define Purchase functions?
Purchasing is an important function of materials management. In any industry purchase
means buying of equipments, materials, tools, parts etc. required for industry. The
importance of the purchase function varies with nature and size of industry. In small
industry, this function is performed by works manager and in large manufacturing
concern; this function is done by a separate department. The moment a buyer places an
order he commits a substantial portion of the finance of the corporation which affects the
working capital and cash flow position. He is a highly responsible person who meets
various salesmen and thus can be considered to have been contributing to the public
relations efforts of the company. Thus, the buyer can make or mar the company’s image
by his excellent or poor relations with the vendors.
26. Procedure for purchase ?
 To avail the materials, suppliers and equipments at the minimum possible costs
 To ensure the continuous flow of production
 To increase the asset turnover
 To develop an alternative source of supply
 To establish and maintain the good relations with the supplier
 To achieve maximum integration with other department of the company
 To train and develop the personnel
 Efficient record keeping and management reporting
27. Types of inventory?

Raw materials inventory – Raw materials inventory are raw materials that your business
changes to produce its goods and/or services. For example, if you manage an ice cream
business, raw materials inventory could include milk you use to make ice cream.

Work-in-process inventory – Work-in-process inventory is any unfinished goods that

your business has made. If your business makes and sells chairs, work-in-process
inventory would include any unfinished chairs on hand that your business has made.
 Finished goods inventory – Finished goods inventory includes any finished goods that
are ready to sell. If you have a retail business that buys and sells toys, the toys you buy would
be finished goods inventory.

28. What is inventory costs?

Inventory costs are the costs associated with the procurement, storage and management
of inventory. It includes costs like ordering costs, carrying costs and shortage / stock out
costs.
29. What is inventory control?
Inventory control, also referred to as stock control, is so broad and incorporates so many
functions that it is difficult to describe in a limited definition, but we like how this
Inc.com entry puts it: Inventory control refers to “all aspects of managing a company’s
inventories: purchasing, shipping, receiving, tracking, warehousing and storage, turnover,
and reordering.” Inventory control is such a critical piece of an organization’s operations
and bottom line that it is too important to leave to human error or antiquated systems.
30. What is safety stock?
Safety stock is an additional quantity of an item held by a company in inventory in order
to reduce the risk that the item will be out of stock. Safety stock acts as a buffer in case
the sales of an item are greater than planned and/or the company's supplier is unable to
deliver additional units at the expected time. If the company is a manufacturer, a safety
stock of materials could minimize the risk of production being disrupted.
31. What is selective inventory control?
To ensure optimum level of inventory, several classifications are employed to render
selective treatment to different types of retail goods/items each classification emphasize
on a particular aspect. The right choice of a method depends upon several factors like
price of the item, criticality, consumption, lead time, procurement difficulties, etc.

32. What is order point?

 The order point depends on the expected level of sales.
 At what reorder point should I place an order if my goal is
to minimize the sum of annual holding, ordering, and shortage costs?
33. What is lead time?
LeadPoint, Inc. is a software and information technology services company for the lead
generation industry located in Los Angeles, California. The company operates a business-
to-business exchange for data and voice leads in numerous verticals including: consumer
lending, consumer credit, and education Leadpoint UK declared bankruptcy in November
2013.
34. What is EOQ?
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to
minimize inventory costs such as holding costs, shortage costs, and order costs. This
production-scheduling model was developed in 1913 by Ford W. Harris and has been
refined over time. The formula assumes that demand, ordering, and holding costs all
remain constant.
35. What is inventory control systems?
An inventory control system is a system the encompasses all aspects of managing a
company's inventories; purchasing, shipping, receiving, tracking, warehousing and
storage, turnover, and reordering. In different firms the activities associated with each of
these areas may not be strictly contained within separate subsystems, but these functions
must be performed in sequence in order to have a well-run inventory control system.
Computerized inventory control systems make it possible to integrate the various
functional subsystems that are a part of the inventory management into a single cohesive
system.