smu assignment solve production & operations management, fall 2011

7/30/2019 SMU Assignment Solve Production & Operations Management, Fall 2011

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Set - 1

1. Explain in brief the origins of Just In Time. Explain how JIT is implemented.Ans. Just in Time (JIT) is a management philosophy aimed at eliminating waste and continuously improving quality.Credit for developing JIT as a management strategy goes to Toyota. Toyota JIT manufacturing started in the aftermathof World War II. Although the history of JIT traces back to Henry Ford who applied Just in Time principles to manage

inventory in the Ford Automobile Company during the early part of the 20th Century, the origins of the JIT as amanagement strategy traces to TaiichiOnho of the Toyota Manufacturing Company. He developed Just in Timestrategy as a means of competitive advantage during the post World War II period in Japan. The post-World War IIJapanese automobile industry faced a crisis of existence, and companies such as Toyota looked to benchmark theirthriving American counterparts. The productivity of an American car worker was nine times that of a Japanese carworker at that time, and TaiichiOnho sought ways to reach such levels. Two pressing challenges however preventedToyota from adopting the American way:1. American car manufacturers made lots or a batch of a model or a component before switching over to a newmodel or component. This system was not suited to the Japanese conditions where a small market requiredmanufacturing in small quantities.2. The car pricing policy of US manufacturers was to charge a mark-up on the cost price. The low demand in Japanled to price resistance. The need of the hour was thus to reduce manufacturing costs to increase profits. To overcome

these two challenges; TaiichiOnho identified waste as the primary evil. The categories of waste identified included overproduction inventory or waste associated with keeping dead stock time spent by workers waiting for materials to appear in the assembly line time spend on transportation or movement workers spending more time than necessary processing an item waste associated with defective items

TaiichiOnho then sought to eliminate waste through the just-in-time philosophy, where items moved through theproduction system only as and when needed. The Toyota production system is a technology of comprehensiveproduction management the Japanese invented a hundred years after opening up to the modern world. The basic ideaof this system is to maintain a continuous flow of products in factories in order to flexibly adapt to demand changes.The realization of such production flow is called Just-in-time production, which means producing only necessary units

in a necessary quantity at a necessary time. As a result, the excess inventories and the excess work-force will benaturally diminished, thereby achieving the purposes of increased productivity and cost reduction. The basic principleof Just-in-time production is rational; that is, the Toyota production system has been developed by steadily pursuingthe orthodox way of production management. With the realization of this concept, unnecessary intermediate andfinished product inventories would be eliminated. However, although cost reduction is the systems most importantgoal, it must achieve three other sub-goals in order to achieve its primary objective. They include: Quantity control, which enables the system to adapt to daily and monthly fluctuations in demand in terms of

quantities and variety; Quality assurance, which assures that each process will supply only good units to the subsequent processes; Respect-for-humanity, which must be cultivated while the system utilizes the human resource to attain its cost

objectives.It should be emphasized here that these three goals cannot exist independently or be achieved independently withoutinfluencing each other or the primary goal of cost reduction. All goals are output of the same system; withproductivity as the ultimate purpose and guiding concept, the Toyota production system strives to realize each of thegoals for which it has been designed. Before discussing the contents of the Toyota production system in detail, anoverview of this system is in order. The outputs or result side as well as the inputs or constituent side of the productionsystem are depicted. A continuous flow of production, or adapting to demand changes in quantities and variety, iscreated by achieving two key concepts: Just-in-time and Autonamation. These two concepts are the pillars of theToyota production system. Just-in-time basically means to produce the necessary units in the necessary quantities atthe necessary time. Autonamation (Jidoka in Japanese) may be loosely interpreted as autonomous defects control. Itsupports Just-in-time by never allowing defective units from the preceding process to flow into and disrupt asubsequent process. Two concepts also key to the Toyota production system include Flexible work force (Shojinkain Japanese) which means varying the number of workers to demand changes, and Creative thinking or inventive ideas

(soikufu), or capitalizing on workers suggestions.To realize these four concepts, Toyota has established the following systems and methods: Kanban system to maintain Just-in-time production Production smoothing method to adapt to demand changes Shortening of set-up time for reducing the production lead time


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Standardization of operations to attain line balancing Machine layout and the multi-function worker for flexible work force Improvement activities by small groups and the suggestion system to reduce the work force and increase the

workers morale. Visual control system to achieve the Autonamation concept Functional Management system to promote company-wide quality control.

Implementation of JIT

JIT, Total Quality Management (TQM) and other developmental measures, are possible only with top managementcommitment and a learning culture in the organization. The main handicap to any program is the resistance by the

organizational members, even at the top, to make changes. This resistance may take the form of non-cooperation and

may enlarge to become sabotage. These usually show up at the implementation stage. So, communication of the goals

is to be realized and the objectives of each team are to be framed effectively. Initially, a milestone chart helps in

establishing various steps to be taken and correcting the activities as the process is on. This is the best way of ensuring

success. It is well to remind you at this stage that JIT is not a destination, but an ongoing continuous improvement

program in the process of achieving TQM.

Anode Electronics produces different kinds of electronic products like TVs and tape recorders. Since the world marketof electronics was moving towards high variety of products and the delivery of the orders was getting shorter, the topmanagers of Anode Electronics were under a great pressure to increase the competitive position of the company in the

market. One of the executive managers of Anode Electronics suggested implementing a system called JIT with thehope that inventory levels would be reduced and quality production would increase. The main aspect in introducingJIT manufacturing system in a company is to educate the staff about JIT. Four middle level managers were asked toattend a seminar conducted by a company called Electrode Combinations who have already implemented this system,so that they could explain the whole company about JIT manufacturing system. A group of managers, one from eachdepartment were a part of the team who discussed what is to be done and how to implement JIT in their company.According to their discussions, the following 5 activities were called the 5 JIT principles. Classify materials on the shop floor based on its usefulness Place the value-added materials in handy positions Clean up the non-value-added materials Maintain the factory in a good looking shape Let the employees in the company have good habits and follow the rules

With these activities, the working environment in Anode Electronics was improved and the safety, quality, andproductivity were increased. As the JIT system was newly implemented in Anode Electronics, the company startedcontinuously improving the quality of the products.The managers of each department formed an improvementcommittee to look after the implementation of JIT in different areas of the company, especially the shop floor. Allnecessary materials were posted with a red card and deposited for further rework. Thus all materials have beenidentified in terms of their names, places, quantities, and so on. The concept of visual management, which ismanagement simply by eye sight, has been strongly motivated and encouraged. Tremendous resistance from suppliersand workers was faced during the early stage of developing the JIT system. High level commitments of top manager,determination of pushing JIT system and suppliers involvement have helped to achieve JIT material flow. With this,the Anode Electronics Company has laid down a solid foundation for the JIT system so that the production system canbe operated smoothly to improve safety, quality, and productivity over the years. The quality and productivity

problems under the water have shown up and have been solved.A major success in the implementation of JITsystem showed the reduction in the amount of inventory and workers. Inventory level has reduced by 63%, partsinventory has reduced by 50%, and the number of workers has reduced from 1020 to 865 during the past four years.The growth rate of the company has increased by 5% every year.

2. Bring out the historical background of Value Engineering. Elucidate three companies whichhave incorporated VE with brief explanation.

Ans. Historical Background of Value EngineeringValue Engineering or Value Analysis is a methodology by which we try to find substitutes for a product or anoperation. It finds alternatives for increasing the functionality or reducing cost in terms of material, process, and time.The concept of value engineering originated during the Second World War. It was developed by the General ElectricCorporations (GEC) in 1947 when a substitute for asbestos for flooring had to be found. Specialized dealers couldprovide an equally good material at a lesser price. Initially, the practitioners were the people in charge of purchasingwho tried to locate substitute material which would be equally good, if not better, at a lower price. This is the first andbasic approach to value engineering. As the concept percolated to the manufacturing departments, engineers appliedthe same principles and found that, they could use alternate materials which were cheaper giving the same


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performance. It was also found that dimensions and tolerances could be altered without affecting the performance ofthe part or the product. The investigations took them on the path of eliminating some operations. The focus was on thevalue of each bit of material, each operation. This approach led to the design stage.Value Engineering has gained popularity due to its potential for gaining high Returns on Investment (ROI). Thismethodology is widely used in business re-engineering, government projects, automakers, transportation anddistribution, industrial equipment, construction, assembling and machining processes, health care and environmentalengineering, and many others. Value engineering process calls for a deep study of a product and the purpose for whichit is used, such as, the raw materials used; the processes of transformation; the equipment needed, and many others. It

also questions whether what is being used is the most appropriate and economical. This applies to all aspects of theproduct.

Companies having incorporated VE1. T.V. Sundaram Iyenger & Sons (TVS) Limited is one of the largest automobile distribution companies in

India. During the mid of 1940s to 1960s, TVS based in Madurai was ranked as the best bus transportationsystem in India. It could manage to run the fleets for about 96% of the time. TVS used the VE approach torestore the mobility of buses that had broken down. They stocked their garage with some critical assemblies ofa bus. Whenever, a part or an assembly failed of a bus, they replaced it immediately with a new one, thusrestoring mobility within a couple of hours. When compared to the traditional method, this approach hasgained much more benefits to the company. It helped to save time, reduce cost, efficient, quicker, andcompetitive.

2. 4 Hospital & Health Network in Pennsylvania approached Strategic Value Analysis (SVA) solutions to find aright solution in reducing their non salary expenses. Strategic Value Analysis in Healthcare (SVAH) took it asa challenge to determine any non salary opportunities of the Health Network system. SVAH with theirsystematic approach analyzed each and every part of the Hospital Network and came out with the solution.The solution was to implement teaching healthcare organizations and give advanced tools, training, strategies,and tactics. This solution was very helpful to manage and control 4 Hospital & Health Network non-salaryexpenses more successfully. 4 Hospital & Health Network were convinced with the solution and implementedSVAHs Strategic Value Analysis System and e-Value Analysis Software. To enhance the Health Networksvalue management, SVAH provided three months of consulting, coaching, and facilitation services. SVAHsStrategic Value Analysis System has improved the Health Networks strategic plan and trained the HealthNetworks value team leaders, team members, and coordinators. The e-value software helped to manage themembers and the process of the 4 Hospital & Health Network. Finally, after 3 months of successful

completion of the Health Networks value management program, 4 Hospital & Health Network could manageto save 2.3 million dollars in non salary expenses.

3. A cosmetic company came across the case of an empty packet of a cream tube. A customer raised a complainton that company, stating that there was no cream tube in the packed box. When the complaint came to thenotice of the company officials, the authorities isolated the problem to the assembly line engineers. Themanagement asked engineers to solve the problem. Engineers worked hard and found a solution for theproblem. They devised a high resolution X-ray machine which would help to monitor all the packed boxesthat pass through the assembly line. Though, the X-ray devise was costly, management compromised to buythe devise. Management felt that the devise would help them to avoid such unforeseen errors. Engineersordered the floor managers to fix the X-ray machines at the assembly line to ensure all packaged boxes havecream tube in it, before delivering to the delivery department. Also, two employees were appointed to checkthe flow line and to maintain the record of the empty boxes. When the two employees were working on it, oneof them got a better solution for the problem. He thought that his idea would solve the problem much betterand it involves less costly equipment. The idea was to place a strong industrial electric fan near to theassembly line, which would blow off the empty boxes passing through the line, if any, thereby ensuring zeroerrors. When his idea was placed in front of the management he was awarded for his intellectual skills.

3. Explain the key elements of Quantitative modeling. What is work study and motion study?Ans. Key Elements of Quantitative ModelingWhenever management has to take decisions which involve complex issues and complex decision makings skills thequantitative modeling approach is used. In this approach, the factors of different fields have different impacts on the

result. We try to quantify data, devise some models for predicting the likely consequences, and some techniques toarrive at decisions. Historical data guide us to formulate the relationships between the variables. Uncertainties aboutthe activities and results can be anticipated based on probabilities and choices made.


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Solving a problem using the quantitative approach involves three steps: defining the problem, constructing amathematical model, and testing the model and its solutions. Solving a problem using the quantitative approachinvolves three steps: defining the problem, constructing a mathematical model, and testing the model and its solutions.Defining the problemWhen a problem arises, we have to: Determine the purpose of studying the problem Consider the various factors such as Resources, Constraints, Uncertainties involving them, Costs involved,

Time available, and Issues that have utmost importance.

After considering these, we have to determine which problem needs our attention, the factors that affect it, and theinterrelationships between them.Constructing a mathematical modelFor constructing a mathematical model for the problem, we follow certain steps. Reformulate the physical problem into a form which can be analyzed. Convert it into a model. The models play a vital role in engineering, science, and business. Make models of dams, steel structure, chemical reactions, organization structure, graphs showing variation of

share prices and others. Many of these are capable of being expressed in terms of mathematical equations. Solve the mathematical equations for solving the problem. Equations can be solved, if the values of some

variables are known or presumed.Testing the model and its solutionIn business we do not have complete or reliable data most of the times. We have formulated the equations with

presumptions. So, we can verify whether the solution we have obtained is acceptable by testing the solutions with thehelp of some known outcomes for known variables. This tests the model, as well as the presumptions we might havemade. We may have to change the model or the presumptions if, the results obtained are not right.

Work StudyWork study is being conducted when analysis of work methods is conducted during the period when a job is done on amachine or equipment. The study helps in designing the optimum work method and standardization of the workmethod. This study enables the methods engineer to search for better methods for higher utilization of man andmachine and accomplishment of higher productivity. The study gives an opportunity to the workmen to learn theprocess of study thus making them able to offer suggestions for improved methods. This encourages workmenparticipation and they can be permitted to make changes and report the advantages that can be derived from those.This course is in alignment with the principle of continuous improvement and helps the organization in the long run.

Reward systems may be implemented for recognizing contributions from the workmen. Work study comprises ofwork measurement and method study. Work measurement focuses on the time element of work, while method studyfocuses on the methods deployed and development of better methods.

Methods Study or Motion StudyMethod study focus is on studying the method currently being used and developing a new method of performing thetask in a better way. Operation Flow charts, Motion Charts, Flow Process charts, which are the elements of the task,are studied to find the purpose of each activity, the sequence in which they are done, and the effect of these on thework. The study may help in changing some of them and even eliminate some of them to effect improvements. Thenew method should result in saving of time, reduced motions, and simpler activities.Steps in Method Study (SREDIM) Select

Select the work to be studied. It involves taking account of economic, technical and human considerations. Record

Record all the relevant facts of the present (or proposed) method by direct observation. Examine

Examine the facts critically in sequence, using special critical examination sheets. Develop

Develop the best method, i.e., the most practical, economic and effective method, under prevailingcircumstances.

InstallInstall that method as standard practice.

MaintainMaintain that standard practice by regular routine checks.


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4. What is Rapid Prototyping? Explain the difference between automated flow line andautomated assembly line with examples.

Ans. Prototyping is a process by which a new product is developed in small numbers.Prototyping is helpful to determine the suitability of the materials study the various methods of manufacture determine type of machinery required develop techniques to overcome problems that may be encountered when full scale manufacturing is

undertakenPrototypes do meet the specifications of the components that enter a product and performance can be measured onthose. It helps in confirming the design and any shortcomings can be rectified at low cost. If serious defects orproblems arise during manufacturing, a thorough change in design or even its replacement may be considered. Toarrive at decisions and to make use of the advantages stated above, it is important that the prototypes are made withinthe shortest possible time. Rapid prototyping facilitates this.Rapid prototyping uses virtual designs from Computer Aided Design (CAD) or animation modelling which transformsdimensional data to 3-dimensional views. The physical space of the product is amenable to have cross sections made.Cross sections taken at very close positions gives thin layers which enable the generation of a solid model of thedesigned product. The data that is created helps build a solid model exactly as per the drawings. Any shape can begenerated in this method. Some of the other advanced Rapid Prototype Modeling Processes are: Selective Laser Sintering (SLS) Stereo Lithography (SLA) Fused Deposition Modeling (FDM) Laminated Object Manufacture (LOM) Solid Ground Curing (SGC)

Since, the basis data about the product is already available in CAD; the above processes can produce models in amatter of a few days. Conventional machines like lathes, milling machines, grinding machines,Electro Discharge Machining (EDM) also helps in the production of prototypes. Due to their advantages, RapidPrototyping is being increasingly used. A bi-monthly magazineTCT Magazinecalling the Rapid Prototyping asTime Compressing Techniques is dedicated to the publication of latest developments in this field as researched anddeveloped by practitioners around the world.

Automated Flow LineWhen several automated machines are linked by a transfer system which moves the parts by using handling machineswhich are also automated, we have an automated flow line. After completing an operation on a machine, the semi-finished parts are moved to the next machine in the sequence determined by the process requirements and a flow lineis established. The parts at various stages from raw material to ready for fitment or assembly are processedcontinuously to attain the required shapes or acquire special properties to enable them to perform desired functions.The materials need to be moved, held, rotated, lifted, and positioned for completing different operations. Sometimes, afew of the operations can be done on a single machine with a number of attachments. They are moved further to othermachines for performing further operations. Human intervention may be needed to verify that the operations aretaking place according to standards. When these can be achieved with the help of automation and the processes areconducted with self regulation, we will have automated flow lines established.

Automated Assembly lineAll equipments needed to make a finished product are laid out in such a way as to follow the sequence in which theparts or sub-assemblies are put together and fitted. Usually, a frame, body, base will be the starting point of anassembly. The frame itself consists of a construction made up of several components and would have beenassembledor fabricated in a separate bay or plant and brought to the assembly line. All parts or sub-assemblies arefitted to enable the product to be in readiness to perform the function it was designed to. This process is calledassembly. Methodologies of achieving the final result may vary, but the basic principle is to fit all parts together andensure linkages so that their functions are integrated and give out the desired output.

5. List different methods for selecting a suitable plant location and explain any two.Ans. Different Methods for Selecting a Suitable Plant LocationGeneral factors or special factorseach factor has its own importance in determining the location of a plant.Therefore, ranking them and giving weight age for them is one of the ways of determining the location. The methodswhich determine the most likely location are:


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Rating plan method Factor rating method Point rating method Break-even analysis Centre of gravity method

Rating plan methodIn rating plan method, the various factors for locating a plant are given ratings depending upon the perception of the

management. The location which gets the maximum rating, considering all the factors, is chosen for locating the plant.Let us consider the following example:Pavan is planning to start an industry in India. He has four options to locate the plant, Chandigarh, Bhopal, Bangalore,and Cochin. He used rating plan method to select the best location suitable for his business needs. Pavan initially listedimportant factors of the business need (See column 1 of table 5.1). According to Rating plan method, in column 2 ofthe same table, he has given the proportional values for each factor in percentages. For example, the proportionatevalues given to the factors are 20%, 15%, 20%, 15% and so on. The total of the proportionate value is 100%.

Factors Proportional

value percentage

Chandigarh Bhopal Bangalore Cochin

Availability of labors 20 20 10 15 5

Raw material sources 15 15 10 15 10

Market proximity 20 20 20 15 10Site 15 10 10 15 10

Government policies 10 5 10 5 10

Infrastructure for employees 10 10 5 10 5

Scope for expansion 10 10 10 5 5

Total 100 90 85 80 55

When individual ratings are given to the factors for each city (Column 3, 4, 5 & 6 of above Table) it can be seen thatChandigarh has maximum rating (90 out of 100) and therefore, Pavan has chosen, Chandigarh for locating the plant.

Point rating methodIn point rating method, we apportion a fraction of a suitably selected total rating and see how many points we canallocate to the locations under consideration. You should compare the totaled ratings and decide the preference.Let us consider the data in the following table. In column 3, Max Points, if you decide to have 1000 points as themaximum possible score considering all factors, you can then evaluate each location and allocate points. Column 4, 5,6, & 7 indicates the maximum rating for each factor. By adding the given ratings for factors of each location, you get540 for Location A, 670 for Location B, 690 for Location C, and 745 for Location D. The location which gets themaximum rating would be chosen, that is, Location D is chosen.

Factors Max points Location

A

Location

B

Location

C

Location

D

Proximity to suppliers 250 150 120 200 175

Proximity to customers 350 200 300 250 250

Labor availability 200 100 150 150 175Educational facilities 100 60 60 30 70

Climate 100 30 40 60 75

Total 1000 540 670 690 745

6. Explain Jurans Quality Trilogy and Crosbys absolutes of quality. List out Demings14points.

Ans.Jurans Quality Trilogy

Juran uses his famous Universal Breakthrough Sequence to implement quality programs. The universal breakthroughsequences are:

Proof of needThere should be a compelling need to make changes.

Project identification


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Here what is to be changed is identified. Specific projects with time frames and the resource allocation are

decided.

Top management commitmentCommitment of the top management is to assign people and fix responsibilities to complete the project

Diagnostic journeyEach team will determine whether the problems result from systemic causes or are random or are deliberately

caused. Root causes are ascertained with utmost certainty.

Remedial actionThis is the stage when changes are introduced. Inspection, testing, and validation are also included at this

point.

Holding on to the gainsThe above steps result in beneficiary results. Having records or all actions and consequences will help in

further improvements. The actions that result in the benefits derived should be the norm for establishing

standards.

Jurans argument says that: Quality is the result of good planning considering the needs of both internal and external customers and

develops processes to meet them. The processes are also planned to meet them. Quality is built into the system of manufacture, inputs and processes that are on stream like raw material,

spare parts, labor, machine maintenance, training, warehousing, inspection procedures, packaging, and others.All these have to follow standards and control exercises to make sure that mistake do not occur often and thatif mistakes do occur then they are corrected at the source.

Quality improvement measures are essential to keep the quality culture alive. Newer methods will be found,some operations can be eliminated, improved technology available. In short, as experience is gained thingscan always be done better. It is for the management to take the initiative and encourage the employees to beon the lookout for opportunities for improvement.

Crosbys Absolutes of Quality

Like Deming, Crosby also lays emphasis on top management commitment and responsibility for designing the system

so that defects are not inevitable. He urged that there be no restriction on spending for achieving quality. In the long

run, maintaining quality is more economical than compromising on its achievement. His absolutes can be listedasunder:

Quality is conformance to requirements, not goodness Prevention, not appraisal, is the path to quality Quality is measured as the price paid for non-conformance and as indices Quality originates in all factions. There are no quality problems. It is the people, designs, and processes that

create problems.Crosby also has given 14 points similar to those of Deming. His approach emphasizes on measurement of quality,increasing awareness, corrective action, error cause removal and continuously reinforcing the system, so thatadvantages derived are not lost over time. He opined that the quality management regimen should improve the overallhealth of the organization and prescribed a vaccine. The ingredients are: Integrity

Honesty and commitment help in producing everything right first time, every time. Communication

Flow of information between departments, suppliers, customers helps in identifying opportunities. Systems and operations

These should bring in a quality environment so that nobody is comfortable with anything less than the best.

Demings Fourteen PointsDeming's TQM helps organizations to improve the quality of the products and services they offer . Demings approachis summarized in his 14 points.

1. Constancy of purpose for continuous improvement2. Adopt the TQM philosophy for economic purposes3. Do not depend on inspection to deliver quality4. Do not award any business based on price alone5. Improve the system of production and service constantly6. Conduct meaningful training on the job


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7. Adopt modern methods of supervision and leadership8. Remove fear from the minds of everyone connected with the organization9. Remove barriers between departments and people10.Do not exhort, repeat slogans, and put up posters11.Do not set-up numerical quotas and work standards12.Give pride of workmanship to the workmen13.Education and training to be given vigorously14.State and exhibit top managements commitment for quality and productivity

Using the above principles, Deming gave a four step approach to ensure a purposeful journey of TQM.


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Set2

1. Sketch the business process model and define the terms. Differentiate between ExplainLogical Process Modelling and Physical Process Modelling.

Ans. ElementsBPMN models consist of simple diagrams constructed from a limited set of graphical elements. For both businessusers and developers, they simplify understanding business activities' flow and process. BPMN's four basic element

categories are: Flow objects

Events, activities, gateways Connecting objects

Sequence flow, message flow, association Swim lanes

Pool, lane Artifacts

Data object, group, annotationThese four categories enable creation of simple business process diagrams (BPDs). BPDs also permit making newtypes of flow object or artifact, to make the diagram more understandable.Flow objects and connecting objects

Event

Activity

Gateway

Sequence Flow

Message Flow ------------------

Association ------------------

Flow objects are the main describing elements within BPMN, and consist of three core elements: events, activities,and gateways.EventAn Event is represented with a circle and denotes something that happens (compared with an activity, which issomething that is done). Icons within the circle denote the type of event (e.g., an envelope representing a message, or aclock representing time). Events are also classified as Catching (for example, if catching an incoming message starts aprocess) or Throwing (such as throwing a completion message when a process ends).Start eventActs as a process trigger; indicated by a single narrow border, and can only be Catch, so is shown with an open(outline) icon.End event

Represents the result of a process; indicated by a single thick or bold border, and can only throw, so is shown with asolid icon.
http://en.wikipedia.org/wiki/Swim_lanehttp://en.wikipedia.org/wiki/Swim_lane


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Intermediate eventRepresents something that happens between the start and end events; is indicated by a double border, andcan Throw or Catch (using solid or open icons as appropriate). For example, a task could flow to an event that throwsa message across to another pool, where a subsequent event waits to catch the response before continuing. ActivityAn activity represented with a rounded-corner rectangle and describes the kind of work which must be done.TaskA task represents a single unit of work that is not or cannot be broken down to a further level of business process

detail without diagramming the steps in a procedure (which is not the purpose of BPMN)Sub-processUsed to hide or reveal additional levels of business process detail. When collapsed, a sub-process is indicated by aplus sign against the bottom line of the rectangle; when expanded, the rounded rectangle expands to show all flowobjects, connecting objects, and artifacts; has its own self-contained start and end events; sequence flows fromthe parent process must not cross the boundary.TransactionA form of sub-process in which all contained activities must be treated as a whole; i.e., they must all be completed tomeet an objective, and if any one of them fails, they must all be compensated (undone). Transactions are differentiatedfrom expanded sub-processes by being surrounded by a double border.GatewayA gateway is represented with a diamond shape and determines forking and merging of paths, depending on the

conditions expressed.Flow objects are connected to each other using Connecting objects, which are of three types: sequences, messages,and associations.Sequence FlowA Sequence Flow is represented with a solid line and arrowhead, and shows in which order the activities areperformed. The sequence flow may also have a symbol at its start, a small diamond indicates one of a numberof conditional flows from an activity, while a diagonal slash indicates the default flow from a decision or activity withconditional flows.Message FlowA Message Flow is represented with a dashed line, an open circle at the start, and an open arrowhead at the end. It tellsus what messages flow across organizational boundaries (i.e., between pools). A message flow can never be used toconnect activities or events within the same pool.

AssociationAn Association is represented with a dotted line. It is used to associate an Artifact or text to a Flow Object, and canindicate some directionality using an open arrowhead (toward the artifact to represent a result, from the artifact torepresent an input, and both to indicate it is read and updated). No directionality is used when the Artifact or text isassociated with a sequence or message flow (as that flow already shows the direction).Swim lanes and artifacts

Swim lanes are a visual mechanism of organizing and categorizing activities, based on cross functional flowcharting,and in BPMN consist of two types:

PoolRepresents major participants in a process, typically separating different organizations. A pool contains one or morelanes (like a real swimming pool). A pool can be open (i.e., showing internal detail) when it is depicted as a largerectangle showing one or more lanes, or collapsed (i.e., hiding internal detail) when it is depicted as an emptyrectangle stretching the width or height of the diagram.LaneUsed to organize and categorize activities within a pool according to function or role, and depicted as a rectanglestretching the width or height of the pool. A lane contains the flow objects, connecting objects and artifacts.Artifacts allow developers to bring some more information into the model/diagram. In this way the model/diagrambecomes more readable. There are three pre-defined Artifacts and they are:Data objectsData objects show the reader which data is required or produced in an activity.GroupA Group is represented with a rounded-corner rectangle and dashed lines. The group is used to group differentactivities but does not affect the flow in the diagram.

AnnotationAn annotation is used to give the reader of the model/diagram an understandable impression.
http://en.wikipedia.org/wiki/Swim_lanehttp://en.wikipedia.org/wiki/Cross_functional_flowcharthttp://en.wikipedia.org/wiki/Cross_functional_flowcharthttp://en.wikipedia.org/wiki/Swim_lane


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Difference between Explain Logical Process Modelling and Physical Process ModellingLogical Process ModellingLogical modeling deals with gathering business requirements and converting those requirements into a model. Thelogical model revolves around the needs of the business, not the database, although the needs of the business are usedto establish the needs of the database. Logical modeling involves gathering information about business processes,business entities (categories of data), and organizational units. After this information is gathered, diagrams and reportsare produced including entity relationship diagrams, business process diagrams, and eventually process flow diagrams.The diagrams produced should show the processes and data that exists, as well as the relationships between business

processes and data. Logical modeling should accurately render a visual representation of the activities and datarelevant to a particular business. The diagrams and documentation generated during logical modeling is used todetermine whether the requirements of the business have been completely gathered. Management, developers, and endusers alike review these diagrams and documentation to determine if more work is required before physical modelingcommences.Physical Process ModellingPhysical modeling involves the actual design of a database according to the requirements that were established duringlogical modeling. Logical modeling mainly involves gathering the requirements of the business, with the latter part oflogical modeling directed toward the goals and requirements of the database. Physical modeling deals with theconversion of the logical or business model, into a relational database model. When physical modeling occurs, objectsare being defined at the schema level. A schema is a group of related objects in a database. A database design effort isnormally associated with one schema. During physical modeling, objects such as tables and columns are created based

on entities and attributes that were defined during logical modeling. Constraints are also defined, including primarykeys, foreign keys, other unique keys, and check constraints. Views can be created from database tables to summarizedata or to simply provide the user with another perspective of certain data. Other objects such as indexes andsnapshots can also be defined during physical modeling. Physical modeling is when all the pieces come together tocomplete the process of defining a database for a business. Physical modeling is database software specific, meaningthat the objects defined during physical modeling can vary depending on the relational database software being used.For example, most relational database systems have variations with the way data types are represented and the waydata is stored, although basic data types are conceptually the same among different implementations. Additionally,some database systems have objects that are not available in other database systems.

2. Explain project management life cycle and its phases. With an example of Work Break downStructure.

Ans. The Project Management Life Cycle represents the development phases that a project can go through. Phases of project management life cycleProject management life cycle has six phases:

1. Analysis and evaluation phase2. Marketing phase3. Design phase4. Execution phase5. Controlinspecting, testing, and delivery phase6. Closure and post completion analysis phase1. Analysis and evaluation phaseAnalysis and evaluation phase is the initial phase of any project. In this phase, information is collected from

the customer pertaining to the project. From the collected information, the requirements of the project areanalyzed. According to the customer requirement, the entire project is planned in a strategic manner. Theproject manager conducts the analysis of the problem and submits a detailed report to the top management.

2. Marketing phaseA project proposal is prepared by a group of people including the project manager. This proposal has tocontain the strategies adopted to market the product to the customers.

3. Design phaseDesign phase involves the study of inputs and outputs of the various project stagesInputs received consist of: project feasibility study, preliminary project evaluation details, project proposal,and customer interviews.

Outputs produced consist of: system design specifications, functional specifications of the project, designspecifications of the project, and project plan.

4. Execution phaseIn execution phase, the project manager and the team members work on the project objectives as per the plan.At every stage during the execution, reports are prepared.


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5. Controlinspecting, testing and delivery phaseDuring this phase, the project team works under the guidance of the project manager. The project manager hasto ensure that the team working under him is implementing the project designs accurately. The project has tobe tracked or monitored through its cost, manpower, and schedule. The project manager has to ensure ways ofmanaging the customer and marketing the future work, as well as ways to perform quality control work.

6. Closure and post completion analysis phaseUpon satisfactory completion and delivery of the intended product or service the staff performance has to beevaluated. The project manager has to document the lessons from the project. Reports on project feedback are

to be prepared and analyzed. A project execution report is to be prepared.

Example of Work Break Down Structure

Building a DeckSay a company plans to start building decks. To make the work go faster, company could assign teams to the differentaspects of deck building. This way, one team could work on purchasing the materials while another team prepare thesite.

Example of WBS

3. Define industries best practices. Explain any one popular industry best practice followed byall companies.

Ans. Each industry would have developed over years or decades. During this development materials would havechanged and processes would have changed. As all products or services are meant to serve needs of the customers,they undergo continuous changes both in shapes and features. Materials and methods go on improving incessantlybecause of the research that is conducted. The companies that were at the front innovate to stay in business as newentrants would be adopting the latest techniques that the pioneers had taken decades to establish. So, the various firmsin any industry would end up adopting almost similar methods of getting an output required. Such practices would getrefined to a great extent giving rise to what we call industry best practices. These tend to get stabilized or changedowing to the development of new equipments which are designed.

A manufacturer, with an eye on growing markets, demands for higher quality and reduced prices. Competitionbenefits those who can use all these to their advantage. Industry best practices open up the field for benchmarking by

companies which need to improve their performance.

Pragmatic bench marking


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Pragmatic bench marking is a method of measuring a companys processes, methods, and procedures; in a way that all functions in great detail. Benchmarking is used to understand how these got into the system and what circumstancesbrought them about. It is a learning process, with a view to find out whether some of the reasons have changed and tobring in new processes for improvement. The metrics that could be used are the: Number of pieces per hour Cost per unit Number of breakdowns per week Customer alienation during a week

Return on investment Number of returns from customers in a month Inventory turnover Many others

The figures obtained from the above determine the efficiency of the organization. To keep focused, many

organizations, especially the large ones, select a few processes for purposes of benchmarking. This helps in ensuring

constant and deep attention to those aspects which are to be dealt with. The following are the types of benchmarking

considered by various firms.

Process BenchmarkingBusiness Process Financial Benchmarking Performance Benchmarking Product Benchmarking Strategic Benchmarking Functional Benchmarking

Tools like Pareto Analysis are used to make the choice or choices from among many aspects in any one of the above

categories. Let us discuss in detail, about the steps which are necessary for conducting a benchmarking operation.

Planning

Planning determines the process, service or the product which is to be benchmarked and on which metrics is assigned

for collection of data.

AnalysisAnalyzed data gives inputs for comparison with the target companys performance on the parameter benchmark onwhich data was collected. Measuring gaps helps in identifying the process which should be improved for reaching thebenchmark.IntegrationResources are required across all functions to achieve the target needs. Integration involves putting together resourceslike people, equipments, and communication, so that, progress is unhindered and all activities reach their logicalconclusions without loss of initiative or time.Action

When changes are needed, actions have to be planned according to the steps earlier stated. Teams are provided with

necessary leadership, authority, and supporting facilities to enable them to complete all activities within the time

frame set for the purpose. Since benchmarking is done in specific areas, it is necessary to maintain the focus, and

implement actions without losing initiative, so that, results become demonstrable.

4. Explain PMIS. What is Key Success Factor (KSF), explain with example.Ans. PIMS

An information system is mainly aimed at providing the management at different levels with information related to thesystem of the organization. It helps in maintaining discipline in the system.An information system dealing with project management tasks is the project management information system. It helpsin decision making in arriving at optimum allocation of resources. The information system is based on a database ofthe organization. A project management information system also holds schedule, scope changes, risk assessment andactual results. The information is communicated to managers at different levels of the organization depending uponthe need. Let us find how a project management information system is used by different stakeholders. The four majoraspects of a PMIS are:1. Providing information to the major stakeholders

2. Assisting the team members, stakeholders, managers with necessary information and summary of the informationshared to the higher level managers

3. Assisting the managers in doing what if analyses about project staffing, proposed staffing changes and totalallocation of resources


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4. Helping organizational learning by helping the members of the organization learn about project management

Usually, the team members, and not the systems administrators of the company, develop a good PMIS. Organizations

tend to allocate such responsibility by rotation among members with a well designed and structured data entry and

analytical format.

Key Success Factory (KSF) With Example:

DefinitionThe factors that are necessary condition for success in a given market.

In order to provide complete stability to fulfillment of goals, a project manager needs to constantly evaluate the keysuccess factors from time to time. While doing so, he needs to keep the following aspects of KSFs in mind: The KSF should be evolved based on a basic consensus document (BCD). KSF will also provide an input to effective exit strategy (EES). Exit here does not mean exit from the project

but from any of the drilled down elemental activities which may prove to be hurdles rather than contributors. Broad level of KSF should be available at the conceptual stage and should be firmed up and detailed out

during the planning stage. The easiest way would be for the team to evaluate each step for chances of successon a scale of ten.

KSF should be available to the managementduly approved by the project managerbefore execution andcontrol stages.

KSF rides above normal consideration of time and cost at the levels encompassing client expectation andmanagement perceptiontime and cost come into play as subservient to these major goals.

Example

India may be a brain bank to the world. But it doesnt help if other countries cash in on this more frequentlythan India itself. The state of Indian higher education is the weak link in this chain its the reason why Indiansspend $3 billion annually seeking education abroad.

Those who study abroad tends to stay on abroad, while according to a NASSCOM-Mckinsey estimate only10-25 per cent of those earning a college degree in India are employable.

Now the National Knowledge Commission (NKC) has written to the Prime Minister stating that raising thenumber of Indian universities from 350 to 1,500 is critical ifIndias growth is to be sustained.

As NKC Chairman Sam Pitroda notes, only 7 per cent ofIndias population aged 18-24enters highereducation, which is half the Asian average. China has created 1,250 new universities within just the last threeyears.

Indias percentage of youth enrolled in college has to be brought up to at least Asian levels while at the sametime enhancing academic standards.

The only way such a sweeping revamp can be carried out is iftodays centrally managed education mono-poleis are dismantled, and education is depoliticized and de-bureaucratized.

5. Explain the seven principles of supply chain management. Take an example of any productin the market and explain Bullwhip effect.

Ans.Supply Chain Management (SCM) is considered by many experts worldwide as the ultimate solution towards

efficient enterprise management. Many management failures have been attributed to the lack of a system to bind

various sub-systems within a geographically widespread enterprise, which true to modern trends, also includes anumbrella of customers, suppliers and associates. Managers of tomorrow are therefore, expected to raise themselves

above the level of perpetual crisis management to one of proactive, predictive, and performance-oriented management.

SCM implementation involves the certain steps:

1. Study the strengths and weaknesses within the enterprise as well as of external agencies involved.

2. Understand the organization objectives.

3. Study the existing systems and identify the gaps and propose solutions to plug the loopholes.

4. Evolve consensus and test fire individual solutions

5. Integrate solutions which are adjudged successfully into the mainstream.

6. Study overall impact after all proposals in a section are implemented, review consensus.

7. Finalize SCM document, circulate, and implement the same


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Bullwhip Effect

An organization will always have ups and downs. It is necessary that the managers of the organization keep track ofthe market conditions and analyze the changes. They must take decisions on the resources and make necessarychanges within the organization to meet the market demands. Failing to do so may result in wild swings in the orders.This may adversely affect the functioning of the organisation resulting in lack of coordination and trust among supplychain members. The changes may affect the information and may lead to demand amplification in the supply chain.The Bullwhip effect is the uncertainty caused from distorted information flowing up and down the supply chain. Thishas its affect on almost all the industries, poses a risk to firms that experience large variations in demand, and also

those firms which are dependent on suppliers, distributors and retailers. A Bullwhip effect may arise because of: Increase in the lead time of the project due to increase in variability of demand Increase in the stocks to accommodate the increasing demand arising out of complicated demand models and

forecasting techniques Reduced service levels in the organization Inefficient allocation of resources Increased transportation cost

Bullwhip effect may be avoided by one or more of the following measures: Avoid multiple demand forecasting Breaking the single orders into number of batches of orders Stabilize the prices, avoid the risk involved in overstocking by maintaining a proper stock Reduce the variability and uncertainty in Point Of Sale (POS) and sharing information Reduce the lead time in the stages of the project Always keep analyzing the past figures and track current and future levels of requirements Enhance the operational efficiency and outsourcing logistics to a capable and efficient agency

Whirlpool in the year 2000 was widely expanded worldwide. Due to the expansion and acquisition, the company ledto high inventories and low customer satisfaction. The supply of the products was reduced to a greater extent. Alsoinventories began to rise. Companys supply systems such as, SAP ERP system was not well integrated. Whirlpoolfeel fine-gaining of the supply chain system was necessary. In 2001, Whirlpool implemented an Advanced Planningand Scheduling (APS) system. The suit consists of supply chain integration and optimization tools from i2 -- SupplyChain Planner for Master Scheduling, Deployment Planning and Inventory Planning. The three modules overhauledthe supply chain system.

6. Time taken by three machines on five jobs in a factory is tabulated below in table below.Find out the optimal sequence to be followed to minimize the idle time taken by the jobs onthe machines.

Job Machine 1 (M1) Machine 2 (M2) Machine 3 (M3)

A 6 8 7B 4 5 3

C 5 5 7D 3 4 6

E 4 3 4

Ans. Consider M1 and M3 ignoring M2.

Job Machine 1 (M1) Machine 3 (M3)

A 6 7

B 4 3

C 5 7

D 3 6E 4 4

Job: DECAB


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job M1 M2 M3

Time In Time Out Time In Time Out Time In Time Out

D 0 3 3 7 7 13

E 3 7 7 10 10 14

C 7 12 12 17 17 24

A 12 18 18 26 26 33

B 18 22 22 27 27 30

The time taken to complete the sequence obtained above is 30.Next let us combine M1+M2 and make it as one machine MX and combine M2+M3 and make it one as one machineMY.

Job M1+M2 M2+M3

A 14 15

B 9 8

C 10 12D 7 10

E 7 7

JobEDCAB

JOBDECAB

From the above tables we can say that the 5 jobs can be assigned to 3 machines in either EDCAB or DECAB patternand in both of the cases the time taken is 30.

job M1 M2 M3

Time In Time Out Time In Time Out Time In Time Out

E 0 4 4 7 7 11

D 4 7 7 11 11 17

C 7 12 12 17 17 24

A 12 18 18 26 26 33

B 18 22 22 27 27 30

smu assignment solve production & operations management, fall 2011

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