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Q1. Explain briefly the Computer Integrated Manufacturing.
A.1 Computer-integrated manufacturing (CIM) is the manufacturing approach of using
computers to control the entire productionprocess. This integration allows individual processes to
exchange information with each other and initiate actions. Through the integration of computers,
manufacturing can be faster and less error-prone, although the main advantage is the ability to
create automated manufacturing processes. Typically CIM relies on closed-loop control
processes, based on real-time input from sensors. It is also known as flexible design and
manufacturing.
The term "computer-integrated manufacturing" is both a method of manufacturing and the name
of a computer-automated system in which individual engineering, production, marketing, and
support functions of a manufacturing enterprise are organized. In a CIM system functional areas
such as design, analysis, planning, purchasing, cost accounting, inventory control, and
distribution are linked through the computer with factory floor functions such as materials
handling and management, providing direct control and monitoring of all the operations.
As a method of manufacturing, three components distinguish CIM from other manufacturing
methodologies:
 Means for data storage, retrieval, manipulation and presentation;
 Mechanisms for sensing state and modifying processes;
 Algorithms for uniting the data processing component with the sensor/modification component.
CIM is an example of the implementation of information and communication technologies
(ICTs) in manufacturing.
CIM implies that there are at least two computers exchanging information, e.g. the controller of
an arm robot and a micro-controller of a CNC machine.
Some factors involved when considering a CIM implementation are the production volume, the
experience of the company or personnel to make the integration, the level of the integration into
the product itself and the integration of the production processes. CIM is most useful where a
high level of ICT is used in the company or facility, such as CAD/CAM systems, the availability
of process planning and its data.
A computer-integrated manufacturing system is not the same as a "lights-out" factory, which
would run completely independent of human intervention, although it is a big step in that
direction. Part of the system involves flexible manufacturing, where the factory can be quickly
modified to produce different products, or where the volume of products can be changed quickly
with the aid of computers. Some or all of the following subsystems may be found in a CIM
operation:
Computer-aided techniques:
 CAD (computer-aided design)
 CAE (computer-aided engineering)
 CAM (computer-aided manufacturing)
 CAPP (computer-aided process planning)
 CAQ (computer-aided quality assurance)
 PPC (production planning and control)
 ERP (enterprise resource planning)
 A business system integrated by a common database.
Devices and equipment required:
 CNC, Computer numerical controlled machine tools
 DNC, Direct numerical control machine tools
 PLCs, Programmable logic controllers
 Robotics
 Computers
 Software
 Controllers
 Networks
 Interfacing
 Monitoring equipment Technologies:
 FMS, (flexible manufacturing system)
 ASRS, automated storage and retrieval system
 AGV, automated guided vehicle
 Robotics
 Automated conveyance systems
Q2. What is automation? What are the kinds of automation?
A.2 Automation is the use of machines, control systems and information technologies to
optimize productivity in the production of goods and delivery services. The correct incentive for
applying automation is to increase productivity, and/or quality beyond that possible with current
human labor levels so as to realize economies of scale, and/or realize predictable quality levels.
The incorrect application of automation, which occurs most often, is an effort to eliminate or
replace human labor. Simply put, whereas correct application of automation can net as much as 3
to 4 times original output with no increase in current human labor costs. Incorrect application of
automation can only save a fraction of current labor level costs. In the scope of industrialisation,
automation is a step beyond mechanisation. Whereas mechanisation provides human operators
with machinery to assist them with the muscular requirements of work. Automation greatly
decreases the need for human sensory and mental requirements while increasing load capacity,
speed, and repeatability. Automation plays an increasingly important role in the world economy
and in daily experience.
Automation has had a notable impact in a wide range of industries beyond manufacturing (where
it began). Once-ubiquitous telephone operators have been replaced largely by automated
telephone switchboards and answering machines. Medical processes such as primary screening
in electrocardiography or radiography and laboratory analysis of human genes, sera, cells, and
tissues are carried out at much greater speed and accuracy by automated systems. Automated
teller machines have reduced the need for bank visits to obtain cash and carry out transactions. In
general, automation has been responsible for the shift in the world economy from industrial jobs
to service jobs in the 20th and 21st centuries.
The term automation, inspired by the earlier word automatic (coming from automaton), was not
widely used before 1947, when General Motors established the automation department. At that
time automation technologies were electrical, mechanical, hydraulic and pneumatic. Between
1957 and 1964 factory output nearly doubled while the number of blue collar workers started to
decline.
Different kinds of automation are :-
 Support Automation
 Run-Book-Automation
 Policy-Based Automation
 IT-Workload Automation
 Data Center Automation
Q3. What are the factors that influence the plant location?
A.3 There a huge number of factors that influence the location of plant, such as:
1. Local Government Grants to tempt companies to move to deprived areas;
2. Location near Customer or Supplier Bases or Natural Resources;
3. Location near local talent and expertise (employees);
4. Local Infrastructure (roads/rail/airports);
5. Location near Cultural Centres (Cities, Museums, Nightlife, Restaurants etc);
6. Location near areas of natural beauty;
7. Location near good schools (education);
8. In certain instances, locations not near residential areas;
9. The impact/disruption to the locals, by bringing the new business to the area;
10. The benefits to the employees (e.g. sport centre membership etc)
Q4. Describe the seven basic quality control tools.
A.4 The seven basic quality control tools are as below :
Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible
causes for an effect or problem and sorts ideas into useful categories.
Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that
can be adapted for a wide variety of purposes.
Control charts: Graphs used to study how a process changes over time.
Histogram: The most commonly used graph for showing frequency distributions, or how often
each different value in a set of data occurs.
Pareto chart: Shows on a bar graph which factors are more significant.
Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a
relationship.
Stratification: A technique that separates data gathered from a variety of sources so that patterns
can be seen (some lists replace “stratification” with “flowchart” or “run chart”).
Q5. Define project management. Describe the five dimensions of project management.
A.5 Project management is the discipline of planning, organizing, securing, managing, leading,
and controlling resources to achieve specific goals. A project is a temporary endeavor with a
defined beginning and end (usually time-constrained, and often constrained by funding or
deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial
change or added value. The temporary nature of projects stands in contrast with business as usual
(or operations), which are repetitive, permanent, or semi-permanent functional activities to
produce products or services. In practice, the management of these two systems is often quite
different, and as such requires the development of distinct technical skills and management
strategies.
The primary challenge of project management is to achieve all of the project goals and objectives
while honoring the preconceived constraints. Typical constraints are scope, time, and budget.[1]
The secondary—and more ambitious—challenge is to optimize the allocation of necessary inputs
and integrate them to meet pre-defined objectives.
Project management can be considered to have five dimensions which are necessary to be
managed. The dimensions are Features, Quality, Cost, Schedule, and Staff.
The five dimensions of project management are dependent of one another. For example, if you add staff, the
schedule may shorten and the cost might increase. The trade-offs among the five dimensions of project management
are not linear. For each project, you need to decide which dimensions are critical and how to balance the others so as
to achieve the key project objectives.
Each of the five dimensions can take one of three roles on any given project:
1. Drive: A driver is a key objective of the project. It has low flexibility towards the project team.
2. Constraint: A constraint is the limiting factor beyond the control of project team. It gives the project team virtually
no flexibility.
3. Degree of Freedom (DoF): Any project dimension that is neither a driver nor a constraint becomes a degree of
freedom. A degree of freedom provides wider latitude towards the project team for balancing that dimension against
the other four.
Q6. What is meant by Supply Chain Management (SCM)? What are the objectives of
SCM?
A.6 Supply chain management (SCM) is the management of a network of interconnected
businesses involved in the provision of product and service packages required by the end
customers in a supply chain. Supply chain management spans all movement and storage of raw
materials, work-in-process inventory, and finished goods from point of origin to point of
consumption.
Another definition is provided by the APICS Dictionary when it defines SCM as the "design,
planning, execution, control, and monitoring of supply chain activities with the objective of
creating net value, building a competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance globally."
The objectives of SCM are :
 Enhancing Customer Service
 Expanding Sales Revenue
 Reducing Inventory Cost
 Improving On-Time Delivery
 Reducing Order to Delivery Cycle Time
 Reducing Lead Time
 Reducing Transportation Cost
 Reducing Warehouse Cost
 Reducing / Rationalize Supplier Base
 Expanding Width / Depth of Distribution

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44 2 Master of Business Administration- MBA Semester 2 MB0044 – Production and Operations Management

  • 1. Q1. Explain briefly the Computer Integrated Manufacturing. A.1 Computer-integrated manufacturing (CIM) is the manufacturing approach of using computers to control the entire productionprocess. This integration allows individual processes to exchange information with each other and initiate actions. Through the integration of computers, manufacturing can be faster and less error-prone, although the main advantage is the ability to create automated manufacturing processes. Typically CIM relies on closed-loop control processes, based on real-time input from sensors. It is also known as flexible design and manufacturing. The term "computer-integrated manufacturing" is both a method of manufacturing and the name of a computer-automated system in which individual engineering, production, marketing, and support functions of a manufacturing enterprise are organized. In a CIM system functional areas such as design, analysis, planning, purchasing, cost accounting, inventory control, and distribution are linked through the computer with factory floor functions such as materials handling and management, providing direct control and monitoring of all the operations. As a method of manufacturing, three components distinguish CIM from other manufacturing methodologies:  Means for data storage, retrieval, manipulation and presentation;  Mechanisms for sensing state and modifying processes;  Algorithms for uniting the data processing component with the sensor/modification component. CIM is an example of the implementation of information and communication technologies (ICTs) in manufacturing. CIM implies that there are at least two computers exchanging information, e.g. the controller of an arm robot and a micro-controller of a CNC machine. Some factors involved when considering a CIM implementation are the production volume, the experience of the company or personnel to make the integration, the level of the integration into the product itself and the integration of the production processes. CIM is most useful where a high level of ICT is used in the company or facility, such as CAD/CAM systems, the availability of process planning and its data. A computer-integrated manufacturing system is not the same as a "lights-out" factory, which would run completely independent of human intervention, although it is a big step in that direction. Part of the system involves flexible manufacturing, where the factory can be quickly modified to produce different products, or where the volume of products can be changed quickly with the aid of computers. Some or all of the following subsystems may be found in a CIM operation: Computer-aided techniques:  CAD (computer-aided design)  CAE (computer-aided engineering)  CAM (computer-aided manufacturing)
  • 2.  CAPP (computer-aided process planning)  CAQ (computer-aided quality assurance)  PPC (production planning and control)  ERP (enterprise resource planning)  A business system integrated by a common database. Devices and equipment required:  CNC, Computer numerical controlled machine tools  DNC, Direct numerical control machine tools  PLCs, Programmable logic controllers  Robotics  Computers  Software  Controllers  Networks  Interfacing  Monitoring equipment Technologies:  FMS, (flexible manufacturing system)  ASRS, automated storage and retrieval system  AGV, automated guided vehicle  Robotics  Automated conveyance systems Q2. What is automation? What are the kinds of automation? A.2 Automation is the use of machines, control systems and information technologies to optimize productivity in the production of goods and delivery services. The correct incentive for applying automation is to increase productivity, and/or quality beyond that possible with current human labor levels so as to realize economies of scale, and/or realize predictable quality levels. The incorrect application of automation, which occurs most often, is an effort to eliminate or replace human labor. Simply put, whereas correct application of automation can net as much as 3 to 4 times original output with no increase in current human labor costs. Incorrect application of automation can only save a fraction of current labor level costs. In the scope of industrialisation, automation is a step beyond mechanisation. Whereas mechanisation provides human operators with machinery to assist them with the muscular requirements of work. Automation greatly decreases the need for human sensory and mental requirements while increasing load capacity, speed, and repeatability. Automation plays an increasingly important role in the world economy and in daily experience.
  • 3. Automation has had a notable impact in a wide range of industries beyond manufacturing (where it began). Once-ubiquitous telephone operators have been replaced largely by automated telephone switchboards and answering machines. Medical processes such as primary screening in electrocardiography or radiography and laboratory analysis of human genes, sera, cells, and tissues are carried out at much greater speed and accuracy by automated systems. Automated teller machines have reduced the need for bank visits to obtain cash and carry out transactions. In general, automation has been responsible for the shift in the world economy from industrial jobs to service jobs in the 20th and 21st centuries. The term automation, inspired by the earlier word automatic (coming from automaton), was not widely used before 1947, when General Motors established the automation department. At that time automation technologies were electrical, mechanical, hydraulic and pneumatic. Between 1957 and 1964 factory output nearly doubled while the number of blue collar workers started to decline. Different kinds of automation are :-  Support Automation  Run-Book-Automation  Policy-Based Automation  IT-Workload Automation  Data Center Automation Q3. What are the factors that influence the plant location? A.3 There a huge number of factors that influence the location of plant, such as: 1. Local Government Grants to tempt companies to move to deprived areas; 2. Location near Customer or Supplier Bases or Natural Resources; 3. Location near local talent and expertise (employees); 4. Local Infrastructure (roads/rail/airports); 5. Location near Cultural Centres (Cities, Museums, Nightlife, Restaurants etc); 6. Location near areas of natural beauty; 7. Location near good schools (education); 8. In certain instances, locations not near residential areas; 9. The impact/disruption to the locals, by bringing the new business to the area; 10. The benefits to the employees (e.g. sport centre membership etc) Q4. Describe the seven basic quality control tools.
  • 4. A.4 The seven basic quality control tools are as below : Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible causes for an effect or problem and sorts ideas into useful categories. Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes. Control charts: Graphs used to study how a process changes over time. Histogram: The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs. Pareto chart: Shows on a bar graph which factors are more significant. Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a relationship. Stratification: A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace “stratification” with “flowchart” or “run chart”). Q5. Define project management. Describe the five dimensions of project management. A.5 Project management is the discipline of planning, organizing, securing, managing, leading, and controlling resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations), which are repetitive, permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies. The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. Typical constraints are scope, time, and budget.[1] The secondary—and more ambitious—challenge is to optimize the allocation of necessary inputs and integrate them to meet pre-defined objectives. Project management can be considered to have five dimensions which are necessary to be managed. The dimensions are Features, Quality, Cost, Schedule, and Staff. The five dimensions of project management are dependent of one another. For example, if you add staff, the schedule may shorten and the cost might increase. The trade-offs among the five dimensions of project management
  • 5. are not linear. For each project, you need to decide which dimensions are critical and how to balance the others so as to achieve the key project objectives. Each of the five dimensions can take one of three roles on any given project: 1. Drive: A driver is a key objective of the project. It has low flexibility towards the project team. 2. Constraint: A constraint is the limiting factor beyond the control of project team. It gives the project team virtually no flexibility. 3. Degree of Freedom (DoF): Any project dimension that is neither a driver nor a constraint becomes a degree of freedom. A degree of freedom provides wider latitude towards the project team for balancing that dimension against the other four. Q6. What is meant by Supply Chain Management (SCM)? What are the objectives of SCM? A.6 Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally." The objectives of SCM are :  Enhancing Customer Service  Expanding Sales Revenue  Reducing Inventory Cost  Improving On-Time Delivery  Reducing Order to Delivery Cycle Time  Reducing Lead Time  Reducing Transportation Cost  Reducing Warehouse Cost  Reducing / Rationalize Supplier Base  Expanding Width / Depth of Distribution