Operation Management
CASE STUDY
The Indian
Electric company manufactures two popular brand of ceiling fans, Cool home and
A1 Bahar. Each fan is processed through two main departments: machine shop,
assembly and testing shop which have respectively 1200 machine hours and 1600
man hours of available capacity per day. Each cool home fan requires 3 hours of
capacity of machine shop and one hour capacity of assembly and testing shop.
Similarly each A1 bahar fan requires 2 hours of machine shop and assembly shor
capacity. The market for the two models has been surveyed recently which
suggests that a maximum of 250 nos of Cool Home and 200 nos of Al Bahar can be
sold per day.
Answer the following question.
Q1. If the profit of fans is rs. 60 on a Cool home and rs. 80 on
A1 Bahar, what quantity of each fan be produced to
maximise profit using simplex method
Q2. How and where the simplex method is used
CASE STUDY
A company
is planning to manufacture tennis rackets and has to decide location of the
plant. The locations being considered are: Mysore, Bangalore and Hosour. The
fixed costs located at these three locations are estimated to be rs. 30 lacs,
rs. 50 lacs and rs. 25 lacs per annum respectively. The variable costs are rs.
300, rs. 200 and rs. 350 per unit respectively. The expected sales price of a
tennis racket is rs. 700 per unit.
Answer the following question.
Q1. What are the benefits that accrue due to a good plant layout?
Q2. Mention the guiding principles in designing a layout of
production facilities .
CASE STUDY
For a
given item there is constant demand rate of 6000 units per annum. The price of
the unit is rs. 60 per unit., the ordering cost is rs. 150 per order and the
inventory carrying cost is 20%
Answer the following question.
Q1. What is the optimal order quantity?
Q2. The manufacturer of item offers a 1% discount if 1200 units
are ordered. Should the discount be taken?
CASE STUDY
Winning
firms nurture human capital, cherish customers and build mutually beneficial
relationships with suppliers. They have the abiliy to do better and better by
making the right moves at right time. Companies such as Walmart, southwest airlines,
FedEx, Glaxo, intel have proved this beyond doubt again and again by delivering
outstanding value to customers at a reasonable price. Sony and APPle have
endlessly identified new and surprising fields to enter—from the Walkman and
Playstation to the iPod(iPad also) and the iMac. Jeff Bezos at Amazon saw in
1994 that the internet could become a powerful platform vehicle for ecommerce
and that selling books online would work particularly well. Further down the
line, Amazon concentrated consistently on changes that would make it
easier to
buy books, from reviews and suggestions on other purchases to Iclick ordering.
Almost every change was introduced keepingthe unique requirements of the
customers in mind. Dell hs shown PC buyers that they do naot have to sacrifice
quality or state of the art technology to buy personal computerseasily and
inexpensively. In the mid1980s,
while
Compaq focused attention on making its PCs cheaper and faster than IBMs college
student Michael Dell saw a chance to outdo both companies by concentrating not
on the product but on the delivery system.he realized that he could outsell
others by eleiminating middlemen.
Answer the following question.
Q1. Give an overview of the case..
Q2. What are the benefits of
eliminating middlemen?
Operations
Management
Q1. What is the logic of Taguchi methods?
Q2. Describe briefly the “Delphi Method”.
Q3. Describe total quality management (TQM)
Q4. Contrast the world class view with the traditional view in
quality control.
Q5. Explain the difference between total and partial productivity.
Q6. What are the major decision areas in P/OM?
Q7. What is production/operations?’
Q8. List the types of quality costs.
SUBJECT : OPERATIONS MANAGEMENT
Total
Marks : 80
CASE-1 (16
Marks)
Bloomsday Outfitters produces T-shirts for road races. They need to
acquire some new stamping machines to produce 30,000 good T-shirts per month.
Their plant operates 200 hours per month, but the new machines will be used for
T-shirts only 60 percent of the time and the output usually includes 5 percent
that are "seconds" and unusable. The stamping operation takes 1
minute per T-shirt, and the stamping machines are expected to have 90 percent
efficiency considering adjustments, changeover of patterns, and unavoidable
downtime. How many stamping machines are required?
CASE-2 (16
Marks)
In the table given below the Distribution Manager is expected to
service these DCs as per the demands placed. If the actual sales after
completing week one is as follows, what would be the quantities that would need
amendment as far as Distribution Manager is concerned to service for week two
and onwards?
After week one the actual sales to Forecasted sales for week one
ratio is as under: Mumbai did 80 % of forecast , Lucknow did 75 % of forecast
Kolkata did 60 % of week one forecast Chennai did 125 % of forecast and Delhi
did 150 % of week one forecast
Note : Kolkata will receive transit stocks in week 2 .
CASE-3 (16
Marks)
After working for 30 years, Ramjee Somjee Dutt opted for VRS and
started a courier company and did very well in the first four years. He was now
looking for expansion of his business and decided to venture into Road
transportation business between Chennai and Mumbai and Mumbai and Delhi as he
felt that he could do well on this line. However before taking a final decision
he hires your Management Consultant firm formed by yourself. He has requested
you to work out the Price to quote his clients for these two routes considering
the costs involved. He expects to earn a minimum profit of Rs 1000 per day per
truck after meeting all expenses. Your analysis of market conditions tell you
the following:
Vehicle cost Rs 7 lacs Depreciation 15 % Maintenance costs per day
Rs 150 Drivers monthly Salary Rs 5000 : Attendants monthly salary Rs 3000 .
Misc expenses Rs 200 per day. Driver allowance is Rs 125 per day and attendant
gets Rs 75. Diesel cost per liter is Rs 25 and the vehicle gives an average
mileage of 4 km to a liter. The Financial institutions offer loans at 10 %
interest pa, which Ramjee has been negotiating. It has been observed that on an
average the vehicle covers 400 km per day. The distance between Mumbai to Delhi
is 1500 km and Mumbai to Chennai is 1350 km. The driver gets rest day in Mumbai
only for one day after they return from any trip.
CASE-4 (16
Marks)
A company is operating in two unrelated businesses. The first one
is making common salt, which is sold in one-kilogram consumer packs. The second
business is making readymade garments. The owner of the businesses has decided
to implement Materials Requirement Planning (MRP) in one of the two businesses,
which is likely to give him greater benefit. Assuming that the current turnover
and profits of both the units are comparable, compare the relative benefits and
limitations of Materials Requirement Planning (MRP) for these two businesses.
A Manufacturer of motorcycles buys spark plugs at Rs.15 each. Now
he wishes to manufacture the plugs in his own factory. The estimated cost for
the manufacture of spark plugs is around Rs.50,000=00 and the variable cost
comes to Rs.5 per spark plug. The Production Manager advises the Manufacturer
that the factory should go for manufacturing instead of procuring them from the
open market.
List out reasons for the decision of the Production Manager backed
up by the necessary data.
Subject : Operations
Management
Q1. Describe briefly the steps to develop a
forecasting system.
Q2. Describe briefly the “Delphi Method”.
Q3. What is continuous improvement (CI)? What are
the major tools for this philosophy?
Q4. How does productivity measurement differ between
manufacturing and service operations?
Q5. Contrast the world class view with the
traditional view in quality control.
Q6. What is ISO9000 Series Standards? List key
quality awards.
Q7. How are the location decisions for service
operations and manufacturing operations similar, and how are they different?
Q8. Describe the steps involved in considering a
time study and discuss any difficulties you might envision at various steps?
SUBJECT: OPERATIONS MANAGEMENT
Total Marks : 80
NB.1) All questions carry equal
marks. 2) All questions are compulsory. 3} read questions carefully.
4} Figures to the right indicate full marks.
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Q1)
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Explain the concept Six Sigma. Bring out the significance
of Six Sigma in Quality
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(10 Marks)
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Management?
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Q2)
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Define Project Management and explain its nature and
features?
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(10 Marks)
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Q3)
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What is Process Analysis? Explain the steps in
Manufacturing Process Selection
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(10Marks)
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and Design?
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Q4)
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Enumerate and explain the Theory of Constraints?
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(10 Marks)
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Q5)
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Write short notes (any two)
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(10 Marks)
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a) Inventory Control
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b) Operations Scheduling
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c) Aggregate Sales and Operations Planning
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Q6)
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Explain the following concept (any two)
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(10 Marks)
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1) Product Design
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2) Strategic Capacity Management
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3) Lean Productions
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Q7)
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Define Material Requirements Planning. Discuss its various
components?
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(10 Marks)
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Q8)
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What is Supply Chain Strategy? Discuss its
characteristics?
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(10 Marks)
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SUB : OPERATIONS MANAGEMENT
Total Marks: 80
Note : All Questions are Compulsory
Each Question Carries Equal
Marks 10 Marks
1. What is continuous improvement (CI)? What are
the major tools for this philosophy?
2. What is the
logic of Taguchi methods?
3. Describe
briefly the steps to develop a forecasting system.
4. Regression
and correlation are both termed “causal” methods of forecasting. Explain how
they are similar in this respect and also how they are different.
5. Define the
terms “Qualitative Methods”, “Trend Analysis Method (Time Series Method), and “Causal
Forecast”. Describe the uses of them.
6.
What do you see as the main problem with qualitative
(judgmental) forecasts? Are they ever better than “objective” methods?
7.
Describe total quality management
(TQM).
8.
Explain the process of collaborative planning? How is
available to promise involved?
SUBJECT:- OPERATIONS
MANAGEMENT
Total Marks—100
9.
All Questions Carry equal Marks.
10.
All Questions are Compulsory.
Q.1) Write Short Notes :
(30 Marks)
a)
Lean
Production
b)
Global
Strategies fir Hospitality services
c)
Material
Requirements Planning
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Q.2)
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Explain Briefly the process Analysis of Manufacturing
Process Selection and
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Design?
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(10
Marks)
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Q.3)
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Define Supply Chain Strategy and Explain its feature and
nature?
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(10
Marks)
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Q.4)
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Distinguish between goods and services. What are the
challenges faced by
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Services marketers?
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(10
Marks)
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Q.5)
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Discuss the features and nature of Project Management?
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(10 Marks)
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Q.6)
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Explain in brief the Synchronous Manufacturing and Theory
of Constraints?
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(10
Marks)
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Q.7)
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Discuss the essence Quality Management in Focus On six
Sigma?
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(10
Marks)
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Q.8)
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What is Aggregate Sales and Operations Planning?
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(10 Marks)
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Operations Management
Q1.
Describe the steps involved in considering a time study and discuss any
difficulties you might envision at various
steps?
Q2.
What is ISO-9000 Series Standards? List key quality awards.
Q3.
Contrast the world class view with the traditional view in quality control.
Q4.
How does productivity measurement differ between manufacturing and service
operations?
Q5.
What is continuous improvement (CI)? What are the major tools for this
philosophy?
Q6.
What are the major components of a production system? Give two examples.
Q7.
Describe briefly the “Delphi Method”.
Q8.
Describe briefly the steps to develop a forecasting system.
Operations Management
Case
study (20 Marks)
This case deals with General
Motors Company, one of the world's largest car and truck manufacturers. General
Motors began its Indian operations in 1928, assembling Chevrolet cars, trucks,
and buses. However, in 1954, the corporation ceased its assembly operations.
After the liberalization of the Indian economy, if formed a 50:50 joint venture
with Hindustan Motors, and produced and sold Opel branded vehicles at its Halol
manufacturing facility in Gujarat. In 1999, GM acquired the complete stake in
Hindustan Motors and General Motors India Pvt. Ltd. -GMIPL (GMI) became a
wholly-owned subsidiary of GM. As of 2011, GMI held the fifth position in the
country. On April 17, 2007, it launched its small car, the 'Chevrolet Spark',
which intensified the price war in the small car segment. Despite a major
campaign and the media coverage, Spark failed to ignite GMI's fortunes, as due
to capacity constraints, the Spark was offered initially only in the northern
and western parts of the country. By the end of 2007, GM had recorded an annual
growth of 68%, though capacity constraints still remained. To overcome the capacity
constraints, the company built a facility at Talegaon in Maharashtra which
became operational in 2009. As a result, the company not only overcame its
capacity constraint but had excess production capacity. However, during
2010-2011, its production facilities in Gujarat were faced with labor unrest,
which led to production losses. As the company faced these problems, industry
observers feared that GMI may once again face capacity constraints..
Answer
the following question.
Q1.
Discuss the issues and challenges in capacity planning.
Q2.
Describe the determinants of effective capacity.
Case study (20 Marks)
With revenues of Rs 16.65 billion
for 2001-02, Philips India Ltd (PIL) had established itself as a leading
manufacturer of consumer electronics and electrical goods in India. A
subsidiary of the Holland-based Philips NV, PIL has dominated the Indian
consumer electronics and lighting industry for more than six decades. PIL, with
a product portfolio of audio systems, color televisions (CTVs), loudspeakers,
printed circuit boards, various kinds of lamps, electronic components and
electro-medical apparatus, had acquired considerable popularity and loyalty
among Indian customers. PIL was established as Philips Electricals Co. (India)
Ltd. in 1930 by Philips NV as a wholly-owned subsidiary. The company's name was
changed to PIL in September 1956 and it was converted into a public limited
company in October 1957. After being initially involved only in trading, PIL
set up manufacturing facilities in several product lines. PIL commenced lamp
manufacturing in 1938 in Kolkata and followed it up by establishing a radio
factory in 1948. It set up an electronics components unit at Loni, near Pune,
Maharashtra in 1959. It began producing electronic measuring equipment’s at the
Kalwa factory in Maharashtra in 1963. The company subsequently ventured into
telecommunication equipment manufacturing at a unit in Kolkata. During the
1980s, Foreign Exchange Regulation Act (FERA) regulations forced PIL to bring
down the foreign shareholding to 40%. Philips NV directed PIL to change its
name to Peico Electronics & Electricals (Peico). However, Peico was allowed
to sell its products under the 'Philips' brand. In May 1982, Peico acquired the
Kolkata-based Electric Light Manufacturing
Industries (ELMI) and made it a
100% subsidiary. In 1988-89, Peico recorded its first ever pre-tax loss of Rs
170 million, largely due to poor management and overstaffing. However, cost
cutting, organizational restructuring and sale of real estate enabled it to
post profits in the next two years. In 1993, its foreign equity stake was
raised to 51% and the name was changed back to PIL. PIL benefited in many ways
from the revamped SCM practices. Transit time was reduced to 7 days and goods
were handled only 5 times. As against a first quarter working capital of Rs 500
million for 2000, the figure was only Rs 200 million in 2001. Significantly,
supply chain costs were reduced by 26% in 2001. A majority of these savings
were due to the savings in transportation and warehousing. PIL could reduce
warehousing costs because of the direct dispatch model, in which there were no
grouping centers. Philips India Ltd (PIL) explored the company's efforts to
enhance its operational efficiency by restructuring its supply chain and other
measures. The case examines the initiatives taken by Indian consumer
electronics major Philips India to maintain profitability and market share
despite adverse industry and market conditions. It explores the company's
efforts to enhance its operational efficiency by restructuring its supply chain
and other measures. The case also briefly discusses the concept of supply chain
management and the benefits of revamping the SCM practices.
Answer
the following question.
Q1. How Philips India Ltd (PIL)
reaped the benefits by revamping the Supply Chain Management (SCM) practices.
Discuss.
Case study (20 Marks)
Outsourcing is a business model
that reduces operating costs and boosts profit margins while maintaining a high
quality of customer service. The model allows companies to adjust their
resource allocation. Many companies opt for out-of-country outsourcing, which
is divided into two categories - near shoring and offshoring. Near shoring is
transfer of work within the region whereas offshoring is relocation of work to
more distant locations. Softtek was a global provider of process-driven IT
solutions. The Mexican company founded in 1982, coined the term "Near
shore" in 1997. It first offered IT and ITES services to US companies.
Over the years, since the development of the 'Nears shoring' concept, Softtek
had added value to the process. The process had evolved in terms of offering
greater value proposition to its clients. First, the idea behind the concept
was to leverage on the aspect of proximity and to fill in the gap left by the
India-centric global service delivery. This aspect remained a strong differentiator
for Softtek to fight competition from distant offshoring destinations like
India. The geographic proximity offered similar time-zones which made it
convenient for Softtek's associates to work simultaneously with their clients.
It also allowed the company to have increased communication and face-to-face
interaction if needed, allowing more complex projects to be carried out
efficiently. Moreover, the near shore locations offered Softtek a closer
cultural affinity to the primary markets. For instance, a Softtek delivery
center in Mexico would be familiar with and would be able to understand the
lifestyles, customs, and working and communication styles of the US better than
an offshore delivery center in a destination like India. The company later
began deriving benefits from its outsourcing services by working in close
proximity to its clients' location, thereby easing the process and making it
cost effective both for itself and its clients. Though the company succeeded in
implementing its concept and gained a global presence across 20 countries, it
faced many challenges - including challenges from its local government and in
gaining a talent pool. There was apprehension that these factors could hinder
its future growth. This case is meant for MBA students as a part of the
Operations Management/ Logistics and Supply Chain Management course.
Answer
the following question.
Q1.
Discuss the concept of near shoring
Q2.
Explain the advantages and disadvantages of near shoring compared to offshoring
Q3.
How Softtek started the near shore concept and achieved success in the global
outsourcing market
Q4.
Discuss the challenges faced by Softtek
Case study (20 Marks)
The case study is about JCPenney
Corporation, Inc. (JCP), a leading retail chain in the US. JCP used
cross-docking to reduce materials handling and transportation cost.
Cross-docking is the practice of expediting the flow of product from receiving
to shipping with a minimum of handling in between. Cross-docking strategy is
one of the three distribution strategies usually employed by a retailer; the
other two being the warehouses strategy in which inventory is kept at the
warehouses, and direct shipment strategy in which inventory is directly shipped
JCP used the Cross-docking operations at the JCP's Lathrop, California, Retail
Logistics Center, the sixth cross-dock facility of the company that was opened
in July 2007. The use of cross-docking helped JCP reduce materials handling and
made its 3 logistics more efficient. The case also highlights how the use of
energy-efficient technologies and processes and proper site selection helped
JCP reduce costs and mitigate supply chain risk.
Answer
the following question.
Q1. Discuss the issues and
challenges in employing cross-docking and how it compared to other commonly
used distribution strategies.
Q2. Explain how materials handling and
transportation cost is reduced through cross docking.
Operations Management
Q1. What factors
distinguish between production and service operations?
Q2.
State functions of the EXIM bank of India.
Q3.
How are the location decisions for service operations and manufacturing
operations similar, and how are they different?
Q4.
Contrast the world class view with the traditional view in quality control.
Q5.
How does productivity measurement differ between manufacturing and service
operations?
Q6.
What are the major components of a production system? Give two examples.
Q7.
Describe briefly the “Delphi Method”.
Q8. What
is production/operations?
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