Q1) What do you mean by the term Production And

Production management?
State Objectives and Scope of POM.
State and explain the functions of Production Manager.

Ans:
Production: The processes and methods used to transform tangible inputs (raw materials,
semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into
goods or services. Resources are used in this process to create an output that is suitable for use
or has exchange value.

Production Management: Production management is ‘a

process of planning, organizing, directing and controlling the
activities of the production function. It combines and
transforms various resources used in the production
subsystem of the organization into value added product in a
controlled manner as per the policies of the organization’
Objectives:
a) RIGHT QUALITY The quality of product is established
based upon the customer’s needs. The right quality is
not necessarily best quality. It is determined by the cost
of the product and the technical characteristics as suited
to the specific requirements.
b) RIGHT QUANTITY The manufacturing organization
should produce the products in right number. If they are
produced in excess of demand the capital will block up
in the form of inventory and if the quantity is produced
in short of demand, leads to shortage of products.
 c) RIGHT TIME Timeliness of delivery is one of the
important parameter to judge the effectiveness of
production department. So, the production department
has to make the optimal utilization of input resources to
achieve its objective.

d) RIGHT MANUFACTURING COST Manufacturing costs are

established before the product is actually manufactured.
Hence, all attempts should be made to produce the
products at pre-established cost, so as to reduce the
variation between actual and the standard (pre-
established) cost.

Scope:
a) LOCATION OF FACILITIES
Location of facilities for operations is a long-term capacity decision
which involves a long term commitment about the geographically static
factors that affect a business organization. It is an important strategic
level decision-making for an organization. It deals with the questions
such as ‘where our main operations should be based?’
b) PLANT LAYOUT AND MATERIAL HANDLING
Plant layout refers to the physical arrangement of facilities. It is the
configuration of departments, work centers and equipment in the
conversion process. The overall objective of the plant layout is to
design a physical arrangement that meets the required output quality
and quantity most economically.
 ‘Material Handling’ refers to the ‘moving of materials from the store
room to the machine and from one machine to the next during the
process of manufacture. plants.

c) PRODUCT DESIGN
Product design deals with conversion of ideas into reality. Every
business organization has to design, develop and introduce new
products as a survival and growth strategy.
d) PROCESS DESIGN
Process design is a macroscopic decision-making of an overall process
route for converting the raw material into finished goods. These
decisions encompass the selection of a process, choice of technology,
process flow analysis and layout of the facilities..
e) QUALITY CONTROL
Quality Control (QC) may be defined as ‘a system that is used to
maintain a desired level of quality in a product or service’. It is a
systematic control of various factors that affect the quality of the
product. Quality control aims at prevention of defects at the source,
relies on effective feed back system and corrective action procedure.
f) MATERIALS MANAGEMENT
Materials management is that aspect of management function which is
primarily concerned with the acquisition, control and use of materials
needed and flow of goods and services connected with the production
process having some predetermined objectives in view.
g) MAINTENANCE MANAGEMENT
In modern industry, equipment and machinery are a very important
part of the total productive effort. Therefore, their idleness or downtime
becomes are very expensive. Hence, it is very important that the plant
machinery should be properly maintained.

Functions of Production manager

a) Production Control –Here the manager supervisesand
directs the production process. He or she also must find
out and ensure the right production plan is followed
 during the production process. If there are deviations,
the production manager has to take the right steps to
correct them.
b) Scheduling –This function is critical in every
organization. It has to do with planning when the actual
production would begin and end.
c) Cost and Quality Control –Every company knows how
essential quality control and price are. Customers are
not just looking for the best products. But they also
want to have them at the lowest possible price. Quality
control is an essential duty the production manager has
to perform. It entails multiple checks performed on the
product to ensure quality is intact.
d) Maintenance of Machines –Production management
also entails making sure that instruments used are in
good working condition. And that means replacing the
ones that are underperforming or changing damaged
parts to enable the machine to function optimally.
e)Plant layout:
Plant layout is primarily concerned with the internal
set up of an enterprise in a proper manner. It is
related to orderly and proper arrangement and use of
available resources viz., men, money, machines,
materials and methods of production inside the
factory. In other words it is concerned with maximum
and effective utilisation of available resources at
minimum operating costs.

f) Inventory control:
The next important function to be carried by a production
manager is to exercise proper control over the inventory.
He should determine economic order size, maximum,
minimum, average and danger levels of materials so that
problems of overstocking and understocking do not arise.
This also helps in minimising wastages of materials.

Q2) What are different types of Production/Manufacturing

system?
Give suitable example for each type.

Ans:
There are 4 different types of productions which are most commonly
used.

1) Unit or Job type of production

This type of production is most commonly observed when you

produce one single unit of a product. A typical example of the same
will be tailored outfits which are made just for you or a cake which is
made just like you want it.

Example of Unit type of production

It is one of the most common types of products used because it is

generally used by small businesses like
restaurants, individual products providers or individual services
providers.

Eg. Harley Davidson, Dell

Features
 Depends a lot on skill
 Dependency is more on manual work than mechanical work
 Customer service and customer management plays and important role

2) Batch type of Production

It is one of the types of production most commonly used in consumer

durables, FMCG or other such industries where there are large variety
of products with variable demands. Batch production takes place in
batches. The manufacturer already knows the number of units
he needs to a manufacture and they are manufactured in one batch.

Eg. LG has many different types of home appliance products. If there

is shortage of Product X and 100 units of this product is consumed in
one month, then the manufacturer can give orders for batch
production of 100 units of Product X.

Features

 Production is done in batches

 The total number of units required is decided before the batch production
starts
 Once a batch production starts, stopping it midway may cost a huge
amount to the company.
 Demand plays a major role in a batch production. Example – seasonality
of products.

3) Mass Production or Flow production

Mass production is also known as flow production or assembly line

production. It is one of the most common types of products used in
the automobile industry. An Assembly line or mass production plant
typically focus on specialization. There are multiple workstations
installed and the assembly line goes through all the workstations turn
by turn. The work is done in a specialized manner and each
workstation is responsible for one single type of work.

Eg. Ford
Features

 Mass production is generally used to dole out huge volumes of the

product
 It is used only if the product is standardized
 Demand does not play a major role in a Mass production. However,
production capacity determines the success of a mass production.
 Mass production requires huge initial investment and the working capital
demand is huge too.

4) Continuous production or Process production

In Mass production, both machines and humans work in tandem.

However, in continuous production, most of the work is done by
machines rather than humans. In continuous production, the
production is continuous,24×7 hours, all days in a year.

A good example of the Continous production is brewing. There is a

continuous input of raw materials such as malt or water, and there is
continuous output in the form of beer or other alcoholic drink.

Features

 Majority of the work is done by machines rather than humans

 Work is continuous in nature. Once production starts, it cannot be
stopped otherwise it will cause huge loss.
 A very controlled environment is required for continuous production.
Q3) What is layout? What are the factors affecting layout?
Explain different types of layouts with suitable examples.

Ans:
Plant layout is the most effective physical arrangement,
either existing or in plans of industrial facilities i.e.
arrangement of machines, processing equipment and
service departments to achieve greatest co-ordination and
efficiency of 4 M’s (Men, Materials, Machines and
Methods) in a plant.

Factors Affecting:
(1) Policies of management:
It is important to keep in mind various managerial policies
and plans before deciding plant layout.

Various managerial policies relate to future volume of

production and expansion, size of the plant, integration of
production processes; facilities to employees, sales and
marketing policies and purchasing policies etc. These
policies and plans have positive impact in deciding plant
layout.

(2) Plant location:

Location of a plant greatly influences the layout of the
plant. Topography, shape, climate conditions, and size of
the site selected will influence the general arrangement of
the layout and the flow of work in and out of the building.
(3) Nature of the product:
Nature of the commodity or article to be produced greatly
affects the type of layout to be adopted. In case of process
industries, where the production is carried in a sequence,
product layout is suitable.

Production of heavy and bulky items need different layout

as compared to small and light items. Similarly products
with complex and dangerous operations would require
isolation instead of integration of processes.

(4) Volume of production:

Plant layout is generally determined by taking into
consideration the quantum of production to be produced.

(5) Availability of floor space:

Availability of floor space can be other decisive factor in
adopting a particular mode of layout. If there is a scarcity
of space, product layout may be undertaken. On the other
hand more space may lead to the adoption of process
layout.

(6) Nature of manufacturing process:

The type of manufacturing process undertaken by a
business enterprise will greatly affect the type of layout to
be undertaken.

(7) Repairs and maintenance of equipment and

machines:
The plant layout should be designed in such a manner as
to take proper care with regard to repairs and
maintenance of different types of machines and equipment
being used in the industry. The machines should not be
installed so closely that it may create the problems of their
maintenance and repairs.

Different types of layout: Assignment

Q4) What are the differences between services and

manufacturing industry?

Ans:
 UNIT 2
Q1) State meaning and importance of product design. What
role does R & D department play in the process of product
design? Give examples.

Ans:
Product Design: Product design is the process of creating a
new product to be sold by a business to its customers. A very
broad concept, it is essentially the efficient and effective
generation and development of ideas through a process that
leads to new products.
According to C.S.Deverell-Product design in its broadest
sense includes the whole development of the product thru all
the preliminary stages, until actual manufacturing begins.

Importance:
To meet ever changing customer needs and requirements.
 To meet stringent quality and reliability expectations of all
customers.
 To create brand equity.
 To create competitive edge in the market
 To sustain and grow profitably, in the long run.
 To retain and/or enlarge existing customer base with focus
on customer delight and loyalty.
 To attain leadership position, in the product category.
 To create great quality products at a reasonable prices.
 To meet demands of aggressive customers, who will change
the brands, if not satisfied.

Role of R & D
Research is a deliberate attempt and planned effort to
discover new ideas, techniques, systems, applications etc.
Development is improvement of existing
product/system/technique/applications/features etc.
Product design involves both R AND D
It involves development of drawings, diagrams, defining
features/benefits, weight, size, dimensions, form, visual
appeal/aesthetics ,material specifications, use of
standardized parts/components, preparation of BOM,
Prototype, quality definition and control mechanism and
testing etc.
Thus RND is an important vehicle/entity to pursue and
execute company’s product development and design
initiatives, which helps the company to retain/grow it’s
market share and continue to sustain profitably within an
intense competitive environment.
The RND department along with manufacturing, creates the
prototypes, which are tested rigorously to reduce/eliminate
design deficiencies and refine the final design, after
successful lab or field trials. 
The RND along with Engineering department, releases the
final design documents, which helps the manufacturing to set
up necessary tools/fixtures/machines and start procurement
of parts/components, as per the BOM released by RND.
Q2) Describe factors affecting product design. Explain
difference between form and functional design.
Ans:
FACTORS AFFECTING:
Utility: The product's human interfaces should be safe, easy
to use, and intuitive. Each feature should be shaped so that it
communicates its function to the user.
 Appearance: Form, line, proportion, and color are used to
integrate the product into a pleasing whole.
 Ease of Maintenance: Products must also be designed to
communicate how they are to be maintained and repaired.
 Low Costs: Form and features have a large impact on
tooling and production costs, so they must be considered
jointly by the team.
 Communication: Product designs should communicate the
corporate design philosophy and mission through the visual
qualities of the products.
Cost price ratio- Competitive pricing/budget, impacts
designer's freedom.
 Break even analysis-To optimize fixed and variable cost, for
a particular batch size. This analysis helps to plan investments
in relation to returns and payback period.
 Quality policy-Product quality can be built thru design
excellence, to meet/exceed customer needs, well known
quality standards, defining all possible product quality
parameters etc.
Process capability-Availability of plant, machinery and
technology to produce required quality and meet/exceed
customer needs.
 Effect on other products-May cannibalize sales of existing
products, making them redundant/obsolete. Advantage of
using existing P&M Capacity, technology and skills, can use
existing sales and distribution network.
 Packaging-Good packaging is an essential part of a good
design, which protects the product, makes it easily
transportable and creates brand image.
ASSIGNMENT

Q3) What is meant by standardization of product? Explain

with examples standardized products in area of your choice.
Give drawbacks of standardization.

Ans: Product standardization refers to the process of maintaining

uniformity and consistency among the different iterations of a
particular good or service that are available in different markets. It is a
process of marketing a good or service without making any changes
to it. If a product is changed at all, it is only changed superficially.
Otherwise, the characteristics of the good or service remain uniform. It
is made using the same materials and processes, has the same
packaging and is marketed under the same name.

Examples:
 a) Many fast food chains, such as McDonald’s, have certain fixed
procedures when it comes to preparing food, so that regardless of
which outlet the consumer is visiting, the product they order always
tastes the same.
b) Items like screwdrivers and nuts and bolts are also made according to
specifications because their use is often very specific.

Drawbacks:
 Stagnation: There is always a possibility of stagnation when it comes to
product standardization. Innovation may not be easy to achieve if
uniform, identical products has been made the norm. The producer may
suffer in the face of competitors. Too much emphasis on consistency of
products may become a roadblock to creativity, leaving to producer
unable to adapt to changing demands from consumers. Failure to
innovate in such a situation would be highly disadvantageous to the
producer.
 Failure to communicate: If the demands of the consumer change and
the industry or organization is too committed to maintaining consistency
of products to realize this and respond accordingly then the consumers
will cease to purchase the product and the producer will not be able to
create a new product to meet the changing demands. This will lead to
the industry or organization being surpassed by competitors who are
more in touch with the consumers and their desires.
 Differences in equipment: While products may be standardized across
markets without consideration for geographical boundaries, different
countries may have different systems when it comes to electronics. Thus
technological devices may be produced according to standardized
specifications, but they cannot be used in every country. In India, the
current supply is 220 V while the frequency is 50 Hz. In the United
States, current supply is 110-120 V and the frequency is 60 Hz.
Therefore, adapters are required to use technological devices made in
one country in the other. Similar arrangements are required to
accommodate similar differences.
 Cultural differences: Even in the age of globalization differences based
on culture do exist. Religion is a very important factor as well, that affects
the lives of many across the world. For example, a fast-food chain
specializing in non-vegetarian food would have to adapt to the local
market before it could make a significant profit in India. But if the chain
remained focused on its non-vegetarian food and replicating its
production process in India then it’s revenue would suffer. A failure to
take the specific details of the local market into consideration and
 adapting products accordingly might spell disaster for an industry or
organization.

Q4) What is concept of VAVE? Explain it in context of

production/operation.

Ans:
VAVE: Value Analysis/Value Engineering is a systematic and
organized procedural decision-making process. It has been
used in almost any kind of application. It helps people
creatively generate alternatives to secure essential functions
at the greatest worth as opposed to costs. This is referred to
as value. It is also known as Value Analysis, Value
Management, Value Planning, and a host of other names.
 It answers 3 big questions: What must the item do? What
does the item cost? What is the item worth?
VA is an organized procedure for identifying unnecessary
costs.
 VA is study of the relationship of design, function and cost
of any product, material or service, with an objective of cost
reduction, by modification in design, material specifications,
efficient process or elimination of waste.
Value Engineering is a systematic team approach used to
analyze and improve value in a product, facility, system or
service. It focuses on the functions of the "thing" in question.
 The Value Method is much quicker and less expensive than
the standard trial and error approach that most people take
by default.

Typical Benefits of a VA/VE Project

 Reduce piece cost and total cost —up to 26% across the
board savings
 Improve operational performance 40-50%
 Improve product quality between 30-50%
 Reduce the manufacturing costs up to 30%
 Improved customer-supplier relations
 Cost avoidance on future programs
 Reduction in product variations

Q5) Short notes:

a) Product Simplification
Ans:
The concept of simplification is closely related to standardization.
Simplification is the process of reducing the variety of products
manufactured. Simplification is concerned with the reduction of product
range, assemblies, parts, materials and design.

Advantages of Simplification
Following are the advantages of simplification:
1. Simplification involves fewer, parts, varieties and changes in products;
this reduces manufacturing operations and risk of obsolescence.
2. Simplification reduces variety; volume of remaining products may be
increased.
3. Simplification provides quick delivery and better after-sales services.
4. Simplification reduces inventory and thus results in better inventory
control.
5. Simplification lowers the production costs.
6. Simplification reduces price of a product.
7. Simplification improves product quality.

b) Product Design
Ans: Product design consists in imagining and
creating objects meant for mass production. The
definition encompasses the physical aspects as
well as the functionalities products should
possess.

Designing a new product goes through an analytical process and relies on a

problem-solving approach to improve the quality of life of the end user and his or her
interaction with the environment. It is about problem-solving, about visualizing the
needs of the user and bringing a solution.

Product designers also work with other professionals such as engineers and
marketers. While not in charge of designing the purely mechanical and technological
aspects of the product, they are however concerned with usability.

Product design has many fields of application: medical devices, tableware, jewelry,
sports and leisure, food preservation appliances, furniture, etc.

It takes into consideration also the production cost, the manufacturing processes and
the regulations

examples such as the Coca-Cola bottle, the IPod, or the Vespa.

c) Product development process

Ans: New product development is a process of taking a product or service from conception to
market.

The process sets out a series of stages that new products typically go through, beginning with
ideation and concept generation, and ending with the product's introduction to the market.

The process involves eight key stages:

 1. Idea generation –generating ideas for new products and services.
2. Idea evaluation - filtering out any ideas not worth taking forward.
3. Concept definition - considering specifications such as technical feasibility, product
design and market potential.
4. Strategic analysis - ensuring your ideas fit into your business' strategic plans and
determining the demand, the costs and the profit margin.
5. Product development and testing - creating a prototype product or pilot service.
6. Market testing - modifying the product or service according to customer, manufacturer and
support organisations' feedback. This involves deciding the best timing and process for
piloting your new product or service.
7. Commercialisation – determining the pricing for your product or service and finalising
marketing plans.
8. Product launch – a detailed launch plan can help ensure smooth introduction to market.

d) Product Specialization
Ans: Product specialization is one strategy a company
can use to target specific customer market segments.
This approach works for companies that specialize in a
high-quality product and have the ability to customize it
to fit the specific needs of different segments.
Specializing and diverting your resources to one or two of your best products offer you many
benefits.

The advantage of this pattern is that when the marketer caters to different segments, with a single
product or varying forms of the same product, he can develop specialization and reputation in that
product line

 Product specialization allows you to concentrate on the 1 or 2 market(s) and follow the
trends and demands.
 Reduces the competition
 Allows you to serve good products to good customers.
 Enhances after-sale services
 Allows you to design and implement effective and specific marketing campaigns
 Reduces the employee needs and working capital

Example: Gillette.

e) Production Standardization
Ans: Product standardization refers to the process of maintaining
uniformity and consistency among the different iterations of a
particular good or service that are available in different markets. It is a
process of marketing a good or service without making any changes
to it. If a product is changed at all, it is only changed superficially.
Otherwise, the characteristics of the good or service remain uniform. It
is made using the same materials and processes, has the same
packaging and is marketed under the same name.
Manufactures:

 Rationalize different varieties of products.

 Decrease the volume of products in the store and also the manufacturer cost.
 Improve the management and design.
 Speed up the management of orders.
 Facilitate the exportation and marketing of products.
 Simplify purchasing management.

Consumer:

 Establish quality and safety level to the service and products.

 Inform to the characteristic of the products.
 Make easier the comparison between the different offers

Public service:

 Simplify the production of legal text.

 Establish quality, environmental and safety policies.
 Help to the economical development.
 Facilitate the business.

Q6) Explain concept of product development with respect to

any product in the automobile sector.

Ans: PDF

UNIT 3
Q1) Define the term Production Planning and control.
What are the objectives of production planning and control.

Ans:
Production planning is pre determination of manufacturing
requirements such as men, material, machines,
manufacturing processes, money, order priority etc. for the
production of right quality, in right quantities and at the right
time.
 Control is to review the progress, compare and make
corrections wherever required thereby programmed
production takes place.
PPC thus is the process of planning production, in advance,
setting rate of each item, fixing starting and end dates for
each item, authorising shop activity by release of production
orders, follow up the progress of products and expediting
wherever required.
It is thus a pre-production activity, associated with design of
production system.
 Production control, is monitoring and controlling the
implementation of production schedule.
OBJECTIVES:
1. To plan systematically production related activities to meet
targets of production with the available resources of the firm.
2. To provide the manufacturing requirements such as men,
machines, materials etc. of right quality, in the right
quantities and at the right time.
3. To schedule production facilities in the optimum manner
4. To co-ordinate the activities of different dept. relating to
production to achieve regular, steady and balance flow of
production.
5. To ensure conformance to delivery commitments and to
inform sales department regarding difficulties (if any).
6. To inform management before hand of the difficulties
which may crop up later in the production targets.

Q2) Explain ordering, scheduling, Routing and dispatching

from PPC, in detail.

Ans:
Ordering: The production order in a jobbing order is
accompanied by the drawings of each part assembly. The
production order in a batch production is accompanied by
process sheets of route sheets. The production order in a
mass production is accompanied by process sheets of each
part & detailed operational layout.
The production order in a continuous production is not
accompanied by any document. Material order are prepared
to procure non stock items. Inspection orders are raised to
prepare and perform inspection orders. Move orders are
prepared to instruct issue department to transport material
to required work center.

Scheduling: Scheduling is the process of fitting a shop order

into a group of machines required to manufacture the item
within total time which is no greater than the promised
delivery period.
It is a objective to fulfill – to confirm the delivery date
promised in the original quotation.
ADVANTAGES:
Optimizes the production cost.
 Reduces investment in material in process
 Meets and/or enhances customer satisfaction
 No underutilization or over utilization of men and
machines.
 Assists production control
 Improves Employee morale and satisfaction
 Sustainable growth and enhancement of company
profitability and goodwill.

Routing: Routing can be defined as the process of deciding

the path (route) of work and the sequence of operations.
Routing fixes in advance: The quantity and quality of the
product.  The men, machines, materials, etc. to be used. 
The type, number and sequence of manufacturing
operations, and  The place of production.
In short, routing determines „What‟, „How much‟, „with
which‟, „How‟ and „Where‟ to produce.
 Routing may be either very simple or complex. This
depends upon the nature of production. In a continuous
production, it is automatic, i.e. it is very simple. However, in a
job order, it is very complex.
 Routing is affected by the human factor. It is also affected
by plant layout, characteristics of the equipment, etc.
 The main objective of routing is to determine (fix) the best
and cheapest sequence of operations and to ensure that this
sequence is followed in the factory.

Dispatching: Dispatching starts with input as route sheet and

schedule chart. It concerns itself with starting the processes
and operation of production. It triggers the starting of the
production activity on the shop-floor through the release of
orders and instructions, that are based on pre-planned times
and sequences contained in route sheets and schedule charts
ADVANTAGES
Issues authorization to start work in accordance with the
predetermined date/time
  Obtains inspection schedules and issues those to the
inspection section.
 Distributes machine loading and schedule charts, route
sheets, identification tags, etc., to each production and
inspection stage.
 Informing and updating progress report and keeping
records for reference.
 At the end of the production, ensures that all the drawings,
tools, etc., reach at the proper place

Q3) What is new product development? Explain the process

of new product development.
Ans:
New product development (NPD) is the process of bringing a new product to the
marketplace. Businesses may need to engage in this process due to changes in consumer
preferences, increasing competition and advances in technology or to capitalise on a new
opportunity. Innovative businesses thrive by understanding what their market wants, making
smart product improvements, and developing new products that meet and exceed their
customers' expectations.

Idea Generation
The first stage of the New Product Development is the idea
generation. Ideas come from everywhere, can be of any form, and
can be numerous. This stage involves creating a large pool of ideas
from various sources, which include

 Internal sources – many companies give incentives to their

employees to come up with workable ideas.
 SWOT analysis – Company may review its strength, weakness,
opportunities and threats and come up with a good feasible idea.
 Market research – Companies constantly reviews the changing
needs, wants, and trends in the market.
 Customers – Sometimes reviews and feedbacks from the
customers or even their ideas can help companies generate new
product ideas.
 Competition – Competitors SWOT analysis can help the
company generate ideas.
Idea Screening
Ideas can be many, but good ideas are few. This second step of new
product development involves finding those good and feasible ideas
and discarding those which aren’t. Many factors play a part here,
these include –

 Company’s strength,
 Company’s weakness,
 Customer needs,
 Ongoing trends,
 Expected ROI,
 Affordability, etc.
Concept Development & Testing
The third step of the new product development includes concept
development and testing. A concept is a detailed strategy or
blueprint version of the idea. Basically, when an idea is developed in
every aspect so as to make it presentable, it is called a concept.
All the ideas that pass the screening stage are turned into concepts
for testing purpose. You wouldn’t want to launch a product without
its concept being tested.

Business Strategy Analysis &

Development
The testing results help the business in coming up with the final
concept to be developed into a product.

Estimated product profitability, marketing mix, and other product

strategies are decided for the product.
Other important analytics includes

 Competition of the product

 Costs involved
 Pricing strategies
 Breakeven point, etc.
Product Development
Once all the strategies are approved, the product concept is
transformed into an actual tangible product. This development stage
of new product development results in building up of a prototype or
a limited production model. All the branding and other strategies
decided previously are tested and applied in this stage.

Test Marketing
Unlike concept testing, the prototype is introduced for research and
feedback in the test marketing phase. Customers feedback are
taken and further changes, if required, are made to the product. This
process is of utmost importance as it validates the whole
concept and makes the company ready for the launch.
Commercialization
The product is ready, so should be the marketing strategies. The
marketing mix is now put to use. The final decisions are to be made.
Markets are decided for the product to launch in. This stage involves
briefing different departments about the duties and targets. Every
minor and major decision is made before the final introduction stage
of the new product development.

Introduction
This stage involves the final introduction of the product in the
market. This stage is the initial stage of the actual product life cycle.

Q4) Short notes:

a) Push VS Pull Manufacturing
Ans:
A pull production system is one where production, and
shipping are initiated by downstream customer demand.
 A Push System is one where parts are routed to
downstream operations by upstream suppliers based on a
forecast or schedule from a centralized planning and control
system. A department that completes a batch, sends it
downstream, regardless of demand.
"Push type" means Make to Stock in which the
production is not based on actual demand. "Pull type"
means Make To Order in which the production is based
on actual demand. In supply chain management, it is
important to carry out processes halfway between push
type and pull type or by a combination of push type
and pull type.

b) Lean Manufacturing
Ans:
Lean is an Operational Excellence Strategy that enable you to
change for the better. The core idea of lean manufacturing is
actually to relentlessly work on eliminating waste from the
manufacturing process.
The waste refers to any activity that’s done, but add no real value
to the product or service.

Lean Tools
5 “S”
Visual control
Standardize work
Total productive maintenance

Key Principals of Lean Thinking

Value - what customers are willing to pay for;
Value Stream – the steps are delivered value;
Flow – organizing Value Stream to be continuous;
Polls – responding to downstream customer demand;
Perfection – relentless continuous improvement
OBJECTIVES
The key is understanding the customer and delivering his
requirements;
 Improves business performance using simple practical
tools and techniques to enhance quality, cost, delivery and
people contribution
 Exposes the wastes in the system.
 Respect for people
 High Quality and Stable Processes
 At all level there is a strong desire to be better

c) Kanban
Ans: The Kanban system is an information system that
controls the right parts in the right quantities within the right
time. Toyota introduced and refined the use of kanban in a relay system
to standardize the flow of parts in their just-in-time (JIT) production lines in
the 1950s.
In manufacturing, Kanban starts with the customer’s order and follows
production downstream. At its simplest, kanban is a card with an inventory
number that’s attached to a part. Right before the part is installed, the
kanban card is detached and sent up the supply chain as a request for
another part. In a lean productionenvironment, a part is only manufactured
(or ordered) if there is a kanban card for it. Because all requests for parts
are pulled from the order, kanban is sometimes referred to as a "pull
system."

Principles:

 Visual work
 Limit work in progress
 Focus on flow
 Continuous improvement
 Implement Feedback Loops
 Make Process Policies Explicit
 Unit 4
Q1. State meaning and importance of Productivity. Why is it
critical for management to measure Productivity.
Ans: PRODUCTIVITY = OUTPUT/ INPUT
Productivity is the volume of output attained in a given
period of time in relation to the sum of direct & indirect
efforts expended in its production. Productivity is the value
added per employee.

Importance:
Customer Benefit

Productivity in the workplace will often translate into good customer service and interaction. This total
client experience is the key to satisfying customers and clients, and almost all highly productive
companies use this to gain customer loyalty. When a customer is loyal to your business, they will
share their experience with others, which is a marketing advantage coming out of high levels of
productivity.

The Company

The employees themselves are an investment, and like any investment, they should yield a healthy or
worthwhile return to the company. Therefore, when employees are highly productive the company
achieves its goals of investing in them in the first place. Productivity also helps to motivate the
workplace culture and boost moral, producing an even better company environment.

The Work Force

More often than not, when a firm is highly productive, it eventually becomes successful, and because
of this, incentives are bound to be made available to the employees. These include pay raises,
bonuses, medical insurance and so on. This will also motivate employees and gives them more job
opportunities as the company grows. Productivity in the workplace is an important aspect of every
company and when top management understands this concept, success is just around the corner.
However, if your company doesn’t give you the incentive to increase productivity, you may want to
start looking for another job because the lifeblood of your company is running out.

Why to measure productivity..

Productivity metrics can help with Performance
management.Feedback backed up by data is an easy
way to show an employee their own personal strengths
and where they need to get better.

Planning is another reason for having productivity

metrics to hand. Knowing when and what deadlines are
coming up and who might have resource/ time
available is important for planning upcoming projects
and work allocation.

Demonstrating productivity to parent company/

partner businesses. Data-backed productivity analyses
are consistently requested from parent companies or in
the event of new partnerships/ mergers. If your
business is considering a long term partnership, having
this data to hand to show not just how well you
performed in the last quarter but the how and why can
help further discussions.

Increasing efficiency. An obvious benefit to

measuring productivity is knowing where and how you
can eliminate wastage. If your company is spending a
lot on flowers for client x every week, your productivity
measurement should be able to show you where your
costs are high, why and if you should take action.
(Perhaps company x would be happy with a box of
chocolates instead).

Better client relations. Metrics are a great tool for

getting your client to understand exactly what a
project or engagement costs your company. It also
increases transparency and confidence in them
knowing you are able to show and prove everything
you bill them for.
Q2. What is Ergonomics?
State Objectives of Ergonomics and Components of
Ergonomics.

Ans: PICTURES

Q3. Explain the following terms of Breakdown and

Preventive Maintenance, MTTR and MTBF.

Ans: Preventive maintenance and breakdown maintenance both seek to

maintain and repair equipment, but they have very different ways of doing this.

Preventive maintenance operates based on a schedule, where maintenance

tasks are completed at specific intervals prior to downtime events. This is
because the goal of preventive maintenance is to maximize the lifespan and
runtime of equipment.

On the other hand, breakdown maintenance works by running equipment until it

breaks down, in which case repairs and maintenance are performed. In some
ways, it is the opposite of preventive maintenance because maintenance work
doesn’t occur until a downtime event happens

Breakdown maintenance is somewhat specific because it’s not applicable to

many pieces of equipment. However, it works well with things that are designed
to be used until they’re inoperable. This can include everything from light bulbs to
residential water heaters.
Preventive maintenance, on the other hand, is a solid maintenance plan for
almost all pieces of equipment in a factory setting.

MTTR: Mean time to repair (MTTR) is the average time required to troubleshoot and repair
failed equipment and return it to normal operating conditions. It is a basic technical measure
of the maintainability of equipment and repairable parts. Maintenance time is defined as the
time between the start of the incident and the moment the system is returned to production
(i.e. how long the equipment is out of production). This includes notification time, diagnostic
time, fix time, wait time (cool down), reassembly, alignment, calibration, test time, back to
production, etc. It generally does not take into account lead-time for parts. Mean time to
repair ultimately reflects how well an organization can respond to a problem and repair it.

MTBF: The mean time between fail is an important metric where the failure rate of assets
needs to be managed. It is the average time lapsed between breakdowns of a system. In
other words, it is the average time the system or component functions between breakdowns.
For mission critical or complex repairable assets such as generators, tankers or airplanes,
mean time between fail becomes an important indicator of expected performance. It has also
become a fundamental component in the design of safe systems and equipment. Mean time
between fail does not take into account any scheduled maintenance such as recalibration,
lubrications or preventive parts replacements. Whereas MTTR affects availability, mean
time between fail affects availability and reliability.

Q4. Write short notes:

a) Lean manufacturing
Ans:
Lean is an Operational Excellence Strategy that enable you to
change for the better. The core idea of lean manufacturing is
actually to relentlessly work on eliminating waste from the
manufacturing process.
The waste refers to any activity that’s done, but add no real value
to the product or service.

Lean Tools
5 “S”
Visual control
Standardize work
Total productive maintenance

Key Principals of Lean Thinking

Value - what customers are willing to pay for;
Value Stream – the steps are delivered value;
Flow – organizing Value Stream to be continuous;
Polls – responding to downstream customer demand;
Perfection – relentless continuous improvement
OBJECTIVES
The key is understanding the customer and delivering his
requirements;
 Improves business performance using simple practical
tools and techniques to enhance quality, cost, delivery and
people contribution
 Exposes the wastes in the system.
 Respect for people
 High Quality and Stable Processes
 At all level there is a strong desire to be better
 b) Factors Affecting Ergonomic Design
Ans:
 Human Body Structure
Since individual differ in their physical dimensions, the data
on the body frame work must be taken in to account while
designing work place layout. Anthropometrics data is useful
in the design of personnel equipment, work place seating,
work bench layout, visual display and controls.
 Manual Material Handling
Weight demand of the job are the primary sources of
stresses and are present in the task involving manual
handling of materials. Too heavy loads, jerky loads and
incorrect body posture during the handling of heavy weight
can cause serious damages in the workers.
 Posture
Equally important consideration in the design of the work
place is that posture that a workman needs to adopt to
perform the task. Incorrect posture can cause strain in back,
waist, legs and hands. A considerable research has been
conducted and a lot of published data is available on
ergonomic design of seats.
 Visual Displays
Visual displays are the means to convey the observers, the
information concerning to the value of the quality
characteristics being measured. Visual displays are of several
forms namely analogue, digital meter, indicator devices,
graphic displays etc.
 Work Environment
The work environment refers to the conditions which
surrounds the work place where the workers performs his
work. Some of the important environmental factors to be
looked into are:
A. Light: Productivity of a workmen to a great extent is
influenced by the extent to which his eyes able to perform
the work comfortably.
B. Noise: It may be defined as unwanted sound. Researcher
have concluded that in qualitative form intermittent noise of
medium and higher intensity affects digestion,hear rate and
bowel activities of those who are exposed to such noise
regularly.
C. Heat: Human physiology needs a condition of constant
temperature. Poor heat and humidity conditions produce
thermal stresses in the employees which affect their
efficiency, power to concentrate and manual dexterity of the
members of the body.

c) Factors Affecting Productivity

Ans:
 Equipment and Machines:
The number of machine tools, their capacity and
accessories required, replacement policy of the
organization and maintenance schedules etc.

 Finance:
Finance is required to maintain all the above
requirements. The management should be for minimum
rather optimum finance.

 Movement of Man and Materials:

i. The required motion of manpower within the plant

ii. The motion of raw material semi finished and finished

products/items within the plant.

 Floor Area or Space:

i. Total area covered by the administrative block,
production shop and inspection & quality control
departments etc.

ii. Location of different departments and shops etc.

 Input Materials:
i. Appropriate quality of materials

ii. Material requirement planning (M.R.P.)

iii. Substitute of materials being used

iv. Inspection of input materials at various points

v. Cost of materials procurement and handling up to
stores.

 Power or Energy:
i. Maintenance of equipment for saving energy

ii. Use of renewable energy devices

iii. Use of biogas, photovoltaic cells, solar energy and

other non conventional techniques.

 Time

i. Inspection of input materials i.e. raw material and semi

finished or finished items required for assembly.

ii. Time for inspection of finished products.

iii. Production time (total time of manufacturing).

iv. Time for repair and maintenance of machines and

equipment.
 Unit 5
Q1. Define the term Six Sigma. Explain steps in
implementing Six Sigma.
Ans: Six sigma is a way of thinking and the results of the
approach can yield a spectrum of improvement choices
based on the balance of values and risk. Six σ is an
internationally recognized management process focused on
producing high quality products or services to meet the
customer’s need and satisfaction. It represents a philosophy
to reduce variation continuously and create a win situation
for all the partners in and around the business or services.
Six Sigma is a process oriented methodology improving
specific areas of strategic business processes. There are 2
different methodologies.
 DMAIC
 IDOV
DMAIC phases:
IDOV phases:
Q2. What is ISO 9000? Discuss essential steps in
implementing ISO.
Ans:
ISO 9000 is defined as a set of international standards on quality management and quality
assurance developed to help companies effectively document the quality system elements
needed to maintain an efficient quality system. They are not specific to any one industry and can
be applied to organizations of any size.

ISO 9000 can help a company satisfy its customers, meet regulatory requirements, and achieve
continual improvement. It should be considered to be a first step or the base level of a quality
system

STEPS:
Four essential steps for becoming an ISO-certified business.

1. Develop your management system

 Identify your core or business processes.
 Document processes with the involvement of employees.
 Review, approve and distribute the documents to those who need access to
the information.

2. Implement your system

 Ensure procedures are being performed as they are described in your
documentation.
 Ensure employees are trained properly for the tasks they are
performing.
 Create effective reporting systems to cover inspection, testing,
corrective actions, preventive actions, management review meetings,
monitoring of objectives, statistical techniques and so on.
 Monitor the effectiveness of your processes through the use of
measurable data, where possible.
 Review and take action to improve in the areas required.

3. Verify that your system is effective

 Conduct the audit and review the processes and system for compliance
and effectiveness. Observe, interview people and look at sample
records.
 Identify and report strengths and weaknesses of the management
system.
 Take corrective or preventive action as required.
4. Register your system
 Select the appropriate auditing body for external registration.
 Submit your management system documentation for review to ensure
it complies with the applicable standard.
 Prepare for review by an external auditor to confirm that the system’s
requirements are being satisfied and that the management system is
implemented effectively.

Q3. Explain the principles and importance of TQM. What

are Objectives of TQM?
Ans: Total Quality Management (TQM) describes a
management approach to long-term success through
customer satisfaction.
●It is the continual process of detecting and reducing or
eliminating errors in manufacturing, improving the customer
experience, and ensuring that employees are up to speed
with their training

OBJECTIVES:
• The primary objective is meeting the customer
requirements and it is the key to organizational survival and
growth.
• Continuous improvement of quality. The management
should stimulate the employees to be increasingly competent
and also creative.
• Developing the relationship of openness and trust among
the employees at all the levels of the organization.

PRINCIPLES:
●Customer Focus: Organisations should be consumer
focused by understanding their needs and meeting their
requirements.
●Leadership: Strong leadership should ensure the
organisation understands its purpose and direction. Ensures
that the organization has a clear goal.
●People Involvement: People at all levels should be involved
in the quality process for the organisation to reap the
greatest benefit.
●Process It focuses on the link between the process input
and process quality. TQM supports process approach by
addressing every element of the Plan-Do Check-Act cycle.
●Systematic approach to management: TQM focuses on the
connection between different functions and process areas
into an integrated system as a whole.
●Continual Development: Organisations should strive for
continual improvement.
●Factual Approach to Decision Making: Decisions should be
based on factual information.
●Mutually beneficial supplier relationship: The company and
the supplier are interdependent on each other and they
should work together to create a win-win situation.
IMPORTANCE:
Assures better quality performance in every sphere of
activity.
● Maintains the reputation of the organization.
● Cost reduction: When applied consistently over time, TQM
can reduce costs throughout an organization.
 Defect reduction: TQM has a strong emphasis on improving
quality within a process, rather than inspecting quality into a
process. This not only reduces the time needed to fix errors,
but makes it less necessary to employ a team of quality
assurance personnel.
● It helps in developing an adequate system of
communication: TQM techniques bind together members of
various related sections, departments and levels of
management for effective communication and interaction.
 Continuous review of progress: QM helps to review the
process needed to develop the strategy of never ending
improvement. Quality improvement efforts have to be
undertaken continuously to meet the dynamic challenges.
From the above, it can be concluded that TQM results in both
tangible and intangible gains.
 Morale: The ongoing and proven success of TQM, and in
particular the participation of employees in that success can
lead to a noticeable improvement in employee morale, which
in turn reduces employee turnover, and therefore reduces
the cost of hiring and training new employees.
● Customer satisfaction: Since the company has better
products and services, and its interactions with customers
are relatively error-free, there should be fewer customer
complaints. Fewer complaints may also mean that the
resources devoted to customer service can be reduced. A
higher level of customer satisfaction may also lead to
increased market share, as existing customers act on the
company's behalf to bring in more customers.

Q4. What is JIT? Explain Benefits and basic elements of JIT.

Ans: JIT, Just-in-time is a set of techniques to increase,
productivity, improve quality, and reduce cost of an
operations
 It is a management philosophy to promote elimination of
waste and continuous improvement of productivity.
ELEMENTS:
 Elimination of waste
 Quality at the source: Employee empowerment,
prevention orientation, automatic detection of defects etc.
 Balanced and flexible work flow: set-up time reduction,
stable production schedule, teamwork etc.
 Respect for people: Encouraging, safe work environment,
cross training opportunities etc.
 Continuous improvement (Kaizen)
 Simplification and visual control
 Focus on customer needs
 Partnerships with key suppliers: reduced no. of suppliers,
long term contracts, improve communication etc.
BENEFITS:
To the organisation
a) Improve – employee & employer relationship.
b) Develop – participative culture & team spirit.
c) Reduce – work related errors & cost.
d) Increase – productivity.
e) Improve – quality of the goods & services.
f) Leads – towards the better efficiency.
g) Catalyze – attitudinal change.
h) Save – amount of time.

To the employees
a) Provide- job interest
b) Give – sense of participation.
c) Develop – latent problem solving capabilities.
d) Improve – individual communication capability.
e) Advances – employee career & personal development.
f) Involve – worker in decision making.
g) Remove – frustration.
h) Encourage – employee to get involve with common goal
of the org.

Q5. What is Lean Manufacturing? Explain the concepts

Kanban and Takttime.
Ans:
Lean is an Operational Excellence Strategy that enable you to
change for the better. The core idea of lean manufacturing is
actually to relentlessly work on eliminating waste from the
manufacturing process.
The waste refers to any activity that’s done, but add no real value
to the product or service.

Lean Tools
5 “S”
Visual control
Standardize work
Total productive maintenance
Key Principals of Lean Thinking
Value - what customers are willing to pay for;
Value Stream – the steps are delivered value;
Flow – organizing Value Stream to be continuous;
Polls – responding to downstream customer demand;
Perfection – relentless continuous improvement
OBJECTIVES
The key is understanding the customer and delivering his
requirements;
 Improves business performance using simple practical
tools and techniques to enhance quality, cost, delivery and
people contribution
 Exposes the wastes in the system.
 Respect for people
 High Quality and Stable Processes
 At all level there is a strong desire to be better
KANBAN
The Kanban system is an information system that controls
the right parts in the right quantities within the right time.
Toyota introduced and refined the use of kanban in a relay system to
standardize the flow of parts in their just-in-time (JIT) production lines in the
1950s.
In manufacturing, Kanban starts with the customer’s order and follows
production downstream. At its simplest, kanban is a card with an inventory
number that’s attached to a part. Right before the part is installed, the
kanban card is detached and sent up the supply chain as a request for
another part. In a lean productionenvironment, a part is only manufactured
(or ordered) if there is a kanban card for it. Because all requests for parts
are pulled from the order, kanban is sometimes referred to as a "pull
system."

Principles:

 Visual work
 Limit work in progress
 Focus on flow
 Continuous improvement
 Implement Feedback Loops
 Make Process Policies Explicit

TAKTTIME
Takt time is the maximum amount of time in which a product needs to be
produced in order to satisfy customer demand. The term comes from the
German word "takt," which means "baton." Set by customer demand, takt
creates the pulse or rhythm across all processes in a business to ensure
continuous flow and utilization of capacities (e.g., man and machine).
Formula: Available Operating Time / Customer Demand
Calculation Example
Total Time: 8 Hours X 60 Minutes = 480 Minutes
Breaks: 50 Minutes
Time Available : 430 Minutes
Customer Demand in 8 Hours: 100 Pcs
Takt Time: 430 / 100 = 4.3 Minutes = 258 Seconds

This example shows that the customer will need one pcs every 258 seconds. However, you
might like to produce a single pcs in little less than 258 seconds in order to accommodate any
variation in process steps, breakdowns, quality issues, etc. It’s therefore essential that before you
implement takt, you ensure that your processes are dependable and can deliver good quality,
and that your machine has a very high uptime.
Q6. Short notes: ·
ISO 9000
Ans: Assignment + Factors required for iso 9000
The company meets its own requirements;
 The company meets its customer requirements and
statutory and regulatory requirements;
 The company maintains documentation of its
performance.

Kaizen 5 S
Ans:
SEIRI (Sort Out):
This means sorting and organizing the items as critical,
important, frequently used items, useless, or items that are
not need as of now. Important items should be kept for use
nearby and items that are not be used in near future, should
be stored in some place.
 SEITION (Organize): Each item has its own fixed place and
should be placed back after usage at the same place.
 SEISO (Shine the Workplace):This involves cleaning the
work place. It also takes care of the inspection required of
the work place to make sure everything is as desired.
SEIKETSU (Standardization):Employees have to discuss and
decide on standards for keeping the work place / Machines /
pathways neat and clean. These standards are implemented
for whole organization and are tested / inspected randomly.
 SHITSUKE (Self Discipline):Considering 5S as a way of life
and bring about self-discipline among the employees of the
organization. This includes wearing badges, following work
procedures, punctuality, dedication to the organization etc

Six Sigma ·
Ans: Six sigma is a way of thinking and the results of the
approach can yield a spectrum of improvement choices
based on the balance of values and risk. Six σ is an
internationally recognized management process focused on
producing high quality products or services to meet the
customer’s need and satisfaction. It represents a philosophy
to reduce variation continuously and create a win situation
for all the partners in and around the business or services.
Six Sigma is a process oriented methodology improving
specific areas of strategic business processes.
OBJECTIVES
To reduce variation.
 To solving the problems in scientific manner.
 Six Sigma places an emphasis on the DMAIC approach
(define, measure, analyze, improve, and control) to problem
solving.
 To develop the bottom line responsibilities towards
continuous improvement.
 Organizations using Six Sigma often utilize teams that are
assigned well-defined projects with a direct impact on the
bottom line.

Quality Circle
Ans: Assignment + assumptions
1. Every job is capable of being improved.
2. People do not resist change, they resist being externally
changed.
3. Every employee is capable of attaining excellence in his
work & the basic ability to improve the job.
4. People like to improve their job and derive satisfaction out
of it, if there is recognition & reward for work.
5. People are trustworthy
6. People like to participate in groups and crave for attention.
7. People have integrity and can be highly creative.
8. A man who does the job knows best about the job at least
they know the problems of the job.

TQM
Ans: Total Quality Management (TQM) describes a
management approach to long-term success through
customer satisfaction.
It is the continual process of detecting and reducing or
eliminating errors in manufacturing, improving the customer
experience, and ensuring that employees are up to speed
with their training.
It aims to hold all all members of an organization participate
in the production process accountable for the overall quality
of the final product or service.
Ensures that the management adopts the strategic overview
of the quality and focuses on prevention rather than
inspection.
OBJECTIVES:
The primary objective is meeting the customer requirements
and it is the key to organizational survival and growth.
•Continuous improvement of quality. The management
should stimulate the employees to be increasingly competent
and also creative.
• Developing the relationship of openness and trust among
the employees at all the levels of the organization.