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DRIVE-FALL 2013
PROGRAM-MBADS / MBAN2 / MBAHCSN3 / PGDBAN2 / MBAFLEX
SEMESTER-II
SUBJECT CODE & NAME-MB 0044 - PRODUCTION AND OPERATION MANAGEMENT
Q1. State the important considerations for locating an automobile plant.( General factors(including importance
and advantages), Special factors((including importance and advantages) )8,2
Answer:
General factors
The general factors that influence the plant location are listed as follows:
Availability of land – Availability of land plays an important role in determining the plant location. On several
occasions, our plans, calculations and forecasts suggest a particular area as the best to start an organization. However,
availability of land may be in question. In such cases, we will have to choose the second best location.
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Q2. Explain essentials of Project Management Philosophy (Characteristics of project mindset, Project
evaluation and selection criteria, Typical characteristics of a project ,Project parameters for negotiation, Value
addition of project management, Project management players, their roles and responsibilities )
Answer:
Essentials of Project Management Philosophy
Characteristics of project mindset
Project management is all about the mindset. Figure 2 depicts all the major characteristics of a project mindset.
Figure 2- Project Characteristics
a) Time: It is an important parameter in framing the right mindset. It is possible to improve the pace of the project by
reducing the time frame of the process. The mindset is normally to work out a comfort mode by stretching the time
limits.
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Q3. Several different strategies have been employed to assist in aggregate planning. Explain these in brief.
(Explanation of 3 types of pure strategies(Chase demand, level production, stable work force), and their
features Mixed strategies ) 8,2
Answer:
Pure strategies
Three focused or pure strategies are:
Vary production to match demand by changes in employment (Chase demand strategy): This strategy permits hiring
and layoff of workers as required. When the output is to be increased more workers are added and when the output is to
be decreased, workers are removed.
Produce at a constant rate and use inventories (Level production strategy): This strategy retains a stable work force
producing at a constant output rate. Inventory can be accumulated to satisfy peak demands. Promotional programs may
also be used to shift demand. However, by producing at a constant rate, it is possible that the entire demand is not met
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Q4. Illustrate the different methods by which quality is sought to be achieved using various tools and
techniques. (Quality at the source, Quality control tools ,Acceptance sampling) 2,6,2
Answer:
Quality Control Techniques
Quality control techniques are specific activities and procedures adopted using data, for determining a particular aspect
of quality to arrive at decisions which are conclusive. Each technique developed and tested by senior personnel or
consultants will be simple enough to be understood, implemented, and interpreted by the personnel for their immediate
use. The techniques to be used, the criteria to be adopted and the way of interpreting data are handed over to them for
use. Some of the quality control techniques are:
 Quality at the source
 Quality control tools
 Acceptance sampling
Quality at the source
The concept of quality makes the production worker responsible for inspecting his/her own work and for taking
corrective actions. Since inspection is done immediately after a job is done, finding the cause of the error with clarity
aids in faster rectification. Every worker has the authority to stop production, if he/she finds some serious defect. This
puts responsibility for quality on the workers and gives them pride in their work. Help should always be available from
the quality control personnel to help workers understand the implications of the above actions. This brings in
cooperation and improves the achievement of quality. The information generated may be used to effect improvements
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Q5. Explain the basic competitive priorities considered while formulating operations strategy by a firm? (Cost,
Quality,Time , Flexibility ) 2.5
Answer:
Operations Management and Strategy
Operations management is one of the major functions of any business organization. Marketing discovers the
destination for the product or service that is produced. Operations provide the deliverables by utilising the resources
and producing the same. All equipments, facilities, technology, information, human resources, and finance should be
tuned to make operations most efficient to derive the maximum advantage and be competitive. Operations function
should, therefore, be guided by strategies which are consistent with the organization strategy. For example, Intel
Corporation, USA, has superior computer chip design. This is because of its technological expertise in producing
microchip. Walmart emphasises on “everyday low prices” and thus focuses on inexpensive outsourcing for products.
price/cost-A firm competing on a price/cost basis is able to provide consumers with an in-demand product at a price
that is competitively lower than that offered by firms producing the same or similar good/service. In order to compete
on a price basis, the firm must be able to produce the product at a lesser cost or be willing to accept a smaller profit
margin.
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Q6. Explain briefly the four classification of scheduling strategies? ( Detailed scheduling , Cumulative
scheduling , Cumulative-detailed scheduling , Priority decision rules )
Answer:
Scheduling Strategies
Scheduling strategy differs from organization to organization as it depends on the quantum of production, size and type
of production, company’s policy, priorities, etc. Most of these strategies are concerned with job shop production since
the problems encountered is more when more than one product is produced in the same plant.
Following are the classifications:
 Detailed scheduling
 Cumulative scheduling
 Cumulative-detailed scheduling
 Priority decision rules

.
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