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Write any three benefits of JIT (just in time) inventory system?
Reduced inventory levels
High quality
Flexibility
Reduced lead times
Increased productivity
What is scheduling? Scheduling services
Scheduling is an important tool for manufacturing and service industries where it
can have a ma or impact on the productivity of a process. In manufacturing, the
purpose of scheduling is to minimize the production time and costs, by telling a
equipment. Similarly, scheduling in service industries, such as airlines and public
transport, aim to maximize the efficiency of the operation and reduce costs.
Scheduling
Benefits of e-Purchasing
• Meets immediate requirements
• Next day delivery
• Right goods, first time is essential
• Ideal for low cost, high volume transactions
How services contribute in the growth of an economy?
Service enterprises are organizations that facilitate the production and distribution of
goods, support other firms in meeting their goals, and add value to our personal lives.
Role of Services in an Economy
What is queuing analysis? And what are its uses for waiting lines?
Waiting Lines
Queuing theory: Mathematical approach to the analysis of waiting lines.
1. Goal of queuing analysis is to minimize the sum of two costs Customer waiting costs
production facility what to make, when, with which staff, and on which
What are the Benefits of electronic purchasing?
• Enables fast time to market ethos
and
Service capacity costs.
2. Waiting lines are non-value added occurrences
Just-in-time (JIT): At the intra organization level, JIT forms a healthy alliance between
the management and the workforce; all this contributes in elimination of waste. JIT A
highly coordinated processing system in which goods move through the system, and
services are performed, just as they are needed. As operations managers we should
remember this point onwards that
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C j
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1. JIT is also known as lean production
2. JIT is the true pull (demand) system
3. JIT operates with very little “fat”
6. Types of Inventories (5 or 3 Marks)
The five common types of inventories are:
1. Raw materials & purchased parts.
2. Partially completed goods called
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Types of inventories
Importance of Supply Chain Management
Supply Chain: The sequence of organization’s facilities, functions, and activities that are
involved in producing and delivering a product or service.
Need for Supply Chain Management
1. Improve operations
2. Increasing levels of outsourcing
3. Increasing transportation costs
4. Competitive pressures
5. Increasing globalization
6. Increasing importance of e-commerce
7. Complexity of supply chains
8. Manage inventories
Benefits of Supply Chain Management
1. Lower inventories
2. Higher productivity
3. Greater agility
4. Shorter lead times
5. Higher profits
6. Greater customer loyalty
Project Management
Responsibilities of operation manager 3 marks
Operation manager is the person who is responsible for the complete operation in the
company and accountable for the performance. Operation manager should have complete
control over the operation he performs and he is accountable and must report mostly to
the president of the company.
Responsibilities of Operation Manager
Each operation manager has got a performance goal, his responsibility to do end to end
planning and objective is to achieve performance goal and to develop productivity and
improve quality standards for the company.
1. Should have skills to train the associates, staffs and make sure they are executing
the plan properly.
2. Make sure to deliver higher quality standards by planning and execution.
3. Responsibility of an operation manager to analyze sales and plan the deliverables
according to it
4. He/she must travel frequently and meet clients.
5. Reporting must be done on a frequent basis.
6. Responsibility to have higher level of communication and ensure the team is
performing level in the operation.
7. Skills required
8. Just an bachelor’s degree is enough for this job. To work in a big company at least
he/she must need 3 years or above experience. Good analytical and problem
solving skills are very necessary for this job. Excellent leadership skills are
required for this job. Ability to work under deadlines is a must for this job.
Reorder determinist 3 marks
When to Reorder with EOQ Ordering
Reorder Point - When the quantity on hand of an item drops to this amount, the item is
reordered.
Safety Stock - Stock that is held in excess of expected demand due to variable demand
rate and/or lead time.
Service Level - Probability that demand will not exceed supply during lead time.
Waiting lines, FCFS and EDD with examples 5 marks
Waiting Line (Queuing) Models have been used extensively in service operations
scheduling because:
--demand patterns are irregular or random
--service times vary among customers
--managers try to strike a balance between efficiently utilizing resources and keeping
customer satisfaction high.
First-come, first-served (FCFS) rule: The customer who arrives first and is at the head of
the line has the highest priority. Other possible rules are shortest processing time (SPT)
and earliest due date (EDD): Jobs are processed according to due date, earliest due date
first.
FCFS is perceived as being fair by all parties, a preemptive discipline is also perceived as
reasonable if the priority nature of the later arrival is understood by all parties. Earliest
due-date rule minimizes the number of late customers.
Application of lean manufacturing 3 marks
Applications of Lean Manufacturing
1. Lean Healthcare Systems
2. Lean Software Manufacturing
3. Systems Engineering
4. Lean Systems in Defense Industry
Important of layouts decision:
Operations Managers are often questioned about the importance of a new or existing
facilities layout. In addition to the fact that operations manager work for improvement
towards design and effect use of operation systems, they should also know the
importance of layout decision in terms of money. Some of these are:-
1. Layout decisions require substantial investments of money and effort.
2. Layout decisions involve long-term commitments.
3. Layout decisions have significant impact on cost and efficiency of short-term
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Question No: 57 ( Marks: 3 )
Explain the basic purpose of acceptance sampling?
Acceptance sampling is an important form of inspection applied to lots or batches of
items before or after a process, to judge conformance with predetermined standards.
A point to remember is that the main purpose of acceptance sampling is to decide
whether or not the lot is likely to be acceptable, not to estimate the quality of the lot.
Question No: 58 ( Marks: 3 )
Briefly discuss Part-Period Model with the help of an example?
Part-Period Model represents an attempt to balance set up and holding costs.
The part period term refers to holding part or parts over a number of periods, e.g. if a
business holds 20 parts for 3 periods this would be a 20 X 3= 60 parts period.
Question No: 59 ( Marks: 3 )
Compute slack time for each of the following activities in the following table:
Activity Schedule
LS ES Slack
1-2 0 0 0
1-3 6 0 6
2-4 10 8 2
Slack Time = LS-ES
Question No: 60 ( Marks: 3)
For what purpose the transportation method is used?
Transportation Method is a quantitative approach that can help solve multiple facility
location problems.
It is used to determine the allocation pattern that can be used to minimize the cost of
shipping products from two or more plants or sources of supply to two or more
warehouses or destinations.
C Based on Linear Programming.
C It does not solve all the problems of the multiple facility location.
C It only finds the best shipping pattern between plants and warehouses for a particular
set of plant locations with a given capacity.
C The Operations manager or logistics analyst must try a variety of location-capacity
combinations and use this to find the optimal distribution for each alternative.
C Distribution costs (variable shipping and possible variable production costs) are
important inputs in evaluating a particular location allocation combination.
C Investments costs and other fixed costs are also considered.
C Qualitative factors (like land and construction cost against annual profits) are also
included in the analysis for each location capacity combination.
Question No: 61 (Marks: 5)
You are employed as an operations manager in ABC Company. At some stage you
make an analysis of the changes in product design. What analysis you carry out to
feel this change? Also elaborate its different procedures
Methods analysis deals with analyzing how a job gets done, begins with overall analysis
and then moves to specific details like changes in tools and equipment, Changes in
product design or new products, Changes in materials or procedures and other factors
(e.g. accidents, quality problems)
Methods Analysis Procedure is simple and effective and does the following
C identifies the operation to be studied
C Gets employee input
C Studies and documents the current method
C analyzes the job
C proposes new methods
C installs new methods
C Follow-ups to ensure improvements have been achieved
Q
uestion No: 62 ( Marks: 5 )
As operations of a manufacturing concern, you are required to carry out aggregate
planning. What inputs you require for aggregate planning?
Aggregate Planning Inputs
I Resources
1. Workforce
2. Facilities
I Demand forecast
I Policies
1. Subcontracting
2. Overtime
3. Inventory levels
4. Back orders
I Costs
1. Inventory carrying
2. Back orders
3. Hiring/firing
4. Overtime
5. Inventory changes
6. Subcontracting
MGT613 Current papers
Solve by admin dua waqar
Question No: 63 ( Marks: 5 )
EDI is beneficial for organization. Elaborate some of the rewards of EDI to an
organization.
Electronic data interchange (EDI) is the structured transmission of data between
organizations by electronic means. It is used to transfer electronic documents or business
data from one computer system to another computer system, i.e. from one trading partner
to another trading partner without human intervention.
Electronic Data Interchange gives an organization the following benefits and advantages.
1. Increased productivity
2. Reduction of paperwork
3. Lead time and inventory reduction
4. Facilitation of just-in-time systems
5. Electronic transfer of funds
6. Improved control of operations
7. Reduction in clerical labor
8. Increased accuracy
Question No: 64 ( Marks:5)
What are the various assumptions an operations manager needs to consider for
implementing priority rules? Deterministic
Assumptions to Priority Rules
1. The set of jobs is known, no new jobs arrive after processing begins and no jobs are
cancelled.
2. Setup time is deterministic
3. Processing times are deterministic rather than variables.
4. There will be no interruptions in processing such as machine breakdowns, accidents or
worker illnesses.
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1-anual ordering cost
Ordering costs: Costs of ordering and receiving Inventory, these are the actual costs that
vary with the actual placement of the order.
2-Cmpnies cost reduction activities
Cost reduction can be achieved through reduction, elimination, modification of
manufacturing activity. Through in depth analysis the best and least cost path is adopted
for each activity.
Focuses on in-house procedures and processes at this stage, the company will do a
functional analysis of every department to determine where efficiencies can be improved.
In a manufacturing plant the cost of production will be evaluated. In a non-profit, the
value of service offered will be compared to the cost of the service to determine if it
should be continued. Purchasing departments will evaluate inventory levels. The cost of
selling will be broken down into activities.
3-Expectd time or standard deviation
4-MRP
5-quening for waiting customer
Queuing theory: Mathematical approach to the analysis of waiting lines.
1. Goal of queuing analysis is to minimize the sum of two costs Customer waiting costs
and
Service capacity costs.
2. Waiting lines are non-value added occurrences
Implications of Waiting Lines
1. Cost to provide waiting space
2. Loss of business
a. Customers leaving
b. Customers refusing to wait
3. Loss of goodwill
4. Reduction in customer satisfaction
5. Congestion may disrupt other business operations
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MGT613 CURRENT FINAL TERM PAPER 15/07/2011
bookworms paper
aoa, i attempted my mgt613 ppr. ppr was too lengthy & tough also. 50% mcq were new. subjective portion which i remember is as follows:
effectiveness of MRP 3
role of internet in increasing productivity. 3
role of inventory file records in MRP 3
what is loading & ideal characteristics of loading 3
bills of material diagram was given & we had to ascertain inventory requirements 5 (tough)
overtime & slack is better than lay-off explain 5
My Today MGT613 17 july 2011
MCQS are mostly new...only 10 to 12 from past papers
Q: Standardization role in Product Design? (5)
Q: Advantages of Scheduling? (5)
Q: Components of MRP? (5)
Q: Output of Aggregate Planning? (5)
Q: JIT is a true Pull System, Explain? (3)
Q: Problems in supply chain management? (3)
Q: Find EOQ, if Annual demand = 200, Ordering Cost = 10, Carrying Cost = 6 (3)
Q: Activities performed by R & D in an organization? (3)
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How internet is useful for the productivity of organization. Marks:3
what are the factors of Quality assurance sampling ? Marks:3
What do you know about single card in Kanban system? Marks:3
Write capacity planning inputs and outputs. Marks:5
Write Characteristics of Finite source in queing model Marks:5
Find Estimated time and standard deviation from the activity table. Marks:5 (answer: handsout page
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