Operations Management
Assignment A
1. Why are plant location decisions important? Name and
discuss the factors which need to be considered to arrive at the ideal location
of a plant?
2. “Effective
planning and control guarantees better utilization of machines and labour.”
Discuss.
3. What do you mean by plant layout? What are various tools
and techniques for layout analysis?
Assignment B
1. What are various aspects which a manager should consider
before making a decision to make or buy the product?
2. “Two basic aspects of the function of plant of plant
maintenance are: preventive maintenance and corrective maintenance.” What are
they? How do they differ from each other? What activities are considered under
each of them?
3. Explain the concept of Total Quality Management.
CASE STUDY
The Blue Powder Company produces
powder for shotgun shells in its only plant, which is in Cleveland, Ohio.
The plant was originally built in 1861, but with the growing environmental
pressures from being located in a large city, the company is considering three
new location alternatives for its central offices and manufacturing plant: Las Vegas, Santa Fe, and Yuma. The production
processes at Blue Powder require about 300 production workers and 200
engineering and management personnel, large amounts of water and other
utilities, large expanses of land, large volumes of materials to be shipped in
and out of the plant, and fire and explosion-tolerant areas.
The three locations under
consideration have been analyzed by the company's staff, and these operating
costs have been developed for each location:
(in$)
|
|
Las Vegas
|
Santa Fe
|
Yuma
|
|
Annual fixed cost
|
3000000
|
2700000
|
2200000
|
|
Variable cost/ pound
|
0.0500
|
0.0700
|
0.1100
|
These costs reflect all
relocation costs, production costs, overhead costs, transportation costs, and
so on. The company has produced 100 million pounds of powder this year, and
sales are expected to increase by about 10 million pounds per year. The company
does not think that sales volume or sales price will be affected by the
location of the plant.
Assignment
1. What major factors should be
considered in choosing one of the three location alternatives?
2. How would you weight the
factors that you developed in No.1 for Blue Powder's plant? Which ones are more
important and which ones should not be weighted heavily? Discuss and defend
your answer.
3. Analyze the factors listed in
No.1, and recommend a course of action for Blue Powder.
Assignment C
1. Jobbing production is characterized by short run
production runs.
(a)Yes
(b) No
2. One of the following is a site factor for plant location:
(a) Nearness to transport facilities
(b) Entertainment facilities
(c) Suitability of land
(d) Climate conditions
3. One of the following is a major reason for change in
layout:
(a) Improve customer relation
(b) Increases company image
(c) Improve quality
(d) Introduction of new product
4. Work in progress in jobbing production is low as few
pieces are produced at a time.
(a) Yes
(b) No
5. Plant and machinery in jobbing as well as batch
production is arranged to give product type of layout.
(a) Yes
(b) No
6. Need for location decision occurs when:
(a) Space at existing units is inadequate for expansion
(b) A new manufacturing unit is being set up
(c) Growth of business necessitates expansion
(d) All of above
7. Following are the objectives of good layout:
(a) Economy in material handling
(b) Efficient utilization of available space
(c) Minimize production holding
(d) All of above
8. One of the critical factors for location of plant is
climate conditions
(a) Yes
(b) No
9. The structure of the transportation cost depends on
characteristics of the commodity and mode of payment.
(a) Yes
(b) No
10. Time required to design the product in jobbing
production at times exceeds its manufacturing time.
(a) Yes
(b) No
11. Mass and flow production is characterized by the
manufacture of a large number of pieces of standard products.
(a) Yes
(b) No
12. Materials handling in batch production as compared to
jobbing production is large.
(a) Yes
(b) No
13. Product design is of ________types.
(a) One
(b) Two
(c) Three
(d) Four
14. The types of policies relating to finished goods
inventory includes:
(a) Product to stock policy
(b) Produce to order policy
(c) Both a and b
(d) None of above
15. Special purpose machines are employed and the plant
assembly stages are laid out on the basis of product layout in mass and flow
production.
(a) Yes
(b) No
16. Components of Production Management include
a) Capacity
Planning
b) Job
Design
c) Production
Planning
d) All
of the above
17. Any premise in which persons are employed for purpose of
making any product/s is called ______________________.
a) Factory
b) Warehouse
c) Education
institution
d) Bank
18. Taxes / duties levied is one of the important
determinant for location decision as taxes/duties substantially influence_____________________________.
(a)Product cost
(b)Product sales
©Product innovation
(d) Product marketing
19. Process production is characterized by the manufacture
of a single product.
(a) Yes
(b) No
20. Which of the following factors play important role while
selecting or rejecting a particular site from legislation and taxation point of
view?
(a)Labour laws
(b)Building codes
©Policies regarding issue of license
(d)All of above
21. Process layout is also
called:
(a) Functional layout
(b) Job shop layout
© Both of above
22. Various types of layout are:
(a) Process layout
(b) Product layout
(c)Grouping technology layout
(d) All of above
23. Network planning techniques like PERT/ CPM have been
found suitable in ___________________
(a) Jobbing production
(b) Batch production
(c) Project scheduling
(d) None of above
24. ______________________ is characterized by manufacture
of one or few pieces of a product at a time under a separate contract.
(a) Project production
(b)Batch production
(c) Mass production
(d) Jobbing production
25. Material movement in a process production unit is
usually done by conveyors and automatic machine transfer.
(a) Yes
(b) No
26. Functions of PPC includes:
(a) Regular functions
(b) Optional functions
(c) Both a and b
(d) None of above
27. ________________ concerns preparation of pre production
cost estimates.
(a) Regular functions
(b) Optional functions
(c) Both a and b
28. Options for
situations in which demand needs to be increased in order to match capacity
include:
(a) Pricing
(b) Promotion
(c) Back
ordering
(d) All of above
29. Materials
include:
(a) Current
machine
(b) Product
design changes
(c) New products
(d) Storage
capacity
30. CIF includes:
(a) Cost
(b) Insurance
(c) Freight
(d) All of above
31. _______________ is given for prompt and full payment.
(a) Quantity discount
(b) Seasonal discount
(c) Cash discount
(d) Trade discount
32. The main task of the _______________ department is to
acquire the required materials in the right quantity, of the right quality,
from the right source, at the right time and at the least possible cost.
(a) Marketing
(b) Sales
(c) Purchase
(d) Production
33. The
inventory control function is represented in three departments:
(a)Raw
materials inventory department
(b)Production
department and
(c)Finished
goods inventory department.
(d) All of the above
34. _____________ are influenced by the products that an
organization plans to manufacture and the markets it intends to cater to.
(a) Technology
(b) Capacity decisions
(c) Innovation
(d) Integration
35. Work in progress in a continuous production unit is
almost zero.
(a) Yes
(b) No
36. It is the system of tools and techniques by which products
are made to comply with specifications at minimum cost to the firm.
(a) Total quality management
(b) Control charts
(c) Quality control
(d) Quality specifications
37. ___________________
refers to verification that every quality characteristic or product to meet a
pre-determined performance standard at each stage in the manufacturing cycle.
(a) Preventive function
(b) Assurance function
(c) Corrective function
(d) Maintenance function
38. One of key decision area is the type of ______________(a
wholly-owned joint venture, or alliance) to be used to set up operations at a
new location.
(a) Entry method
(b) Exit method
(c) Sustainable method
(d) Declining stage
39. Initial planning in jobbing production is more important
than in flow production.
(a) Yes
(b) No
40. The manufacturing cycle time in batch production is
comparatively smaller than jobbing production but is longer than in mass and
flow production.
(a) Yes
(b) No
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