KNOWLEDGE BUSINESS SCHOOL, SALEM

BA5206-OPERATIONS MANAGEMENT

(KEYWORD ANSWERS)

2 MARKS QUESTIONS AND ANSWERS

UNIT-1

1. Define Production Management

Systematic way of applying management principles for converting input into output to
achieve profit.

2. What is operations management?

Operation management is the set of activities that creates values in the form of goods and
services by transforming inputs into out puts.
3. List out the factors of production?

a) Men b) Machine c) Materials d) Methods e) Money f) Management

4. Differentiate between product and services?

Sl.No Product Services

1 Tangible Intangible

2 Perishable Non-Perishable

3 Minimum contact with High contact with customers

customers

5. Differentiate between strategy and tactics?

Sl.No Strategy Tactics

1 Advanced plan Action or operations

2 Formulation process Implementation process

6. What is production sharing?

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 An agreement between two parties to share production activities is called production
sharing

7. What is production system?

A System is a whole which helps to carry out the activities which is necessary to create
products and services.

8. What is operating system?

It is collection of action plan require to execute the functions of operations to create

products and services

9. List out few service sector industry?

a) Hospital b) Hotel c) Educational Institutions d) Tourism e) Telecommunication

10. List out few manufacturing organization?

a) Honda b) Ford c) TVS d) TNPL e) Hyundai f) MRF g) BHEL h) SAIL

11. What is the difference between production and operations?

Sl.No Production Operations

1 Manufacturing process Both mainly services oriented process

2 Systematic plan and principles Systematic action or execution

12. What is competitive advantage?

An organization having superior advantages or superiority over its competitors

13. What is competitive positioning?

Create the value about the product or services in the mind of customers to attain good
position in the competitive market.

A production will be carried out on irregular basic based on customer order. Example:
Goldsmith and Tailor shop

14. Define productivity

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 Creating goods and services with minimum inputs and expenses to achieve maximum
output with higher profits.

UNIT-2

15. What is competitive priority?

A capability of firm to manage their operations to meet competitors in the market

16. Define Value Engineering

Value engineering (VE) is a systematic method to improve the "value" of goods or

products and services by using an examination of function.

Value Engineering is a technique applied to identifying optimum value solutions during new
product development.

17. What is Value Analysis?

Value analysis is a technique applied to improving existing products, processes

or services. The objective is usually to reduce cost, but may equally or simultaneously be to
improve performance or quality.-LD Miles

18. State any two differences between Value analysis and Value Engineering?

Sl.No Value Engineering Value Analysis

1 Techniques apply for new products Techniques apply for Engineering products

2 Done on the prevailing systems and Done after the planned system is installed/
process to identify scope for final product developed to analyze the
improvisation and optimization benefits.

19. What is Group Technology?

Group Technology or GT is a manufacturing technique in which the parts having similarities

in Geometry, manufacturing process and/or functions are assembled together.

20. Define Design for Manufacturability

DFM is the general engineering art of designing products in such a way that they are easy to
manufacture.

21. What is line balancing

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A production strategy that involves setting an intended rate of production for required materials
to be fabricated within a particular time frame. In addition, effective line balancing requires
assuring that every line segment's production quota can be met within the time frame using the
available production capacity.

22. Define CRP.

CRP- Capacity Requirement Planning, facility planning includes determination of how

much long range production capacity is needed, where production should be located and
layout and characteristics of the facilities

23. What is aggregate planning?

Aggregate planning is a medium range forecast that is carried out just after the capacity
planning to have a plan of workforce size; Production rate levels at different time periods.

24. Define MRP.

Material Requirements Planning (MRP) is a software based production planning and

inventory control system used to manage manufacturing processes. Although it is not
common nowadays, it is possible to conduct MRP by hand as well.

25. Define MRP- II

Manufacturing Resource Planning (MRP II) is defined by (APICS American Production and
Inventory Control Society) as a method for the effective planning of all resources of a
manufacturing company. Ideally, it addresses operational planning in units, financial
planning in dollars, and has a simulation capability to answer "what-if" questions and
extension of closed-loop MRP.

26. What is ERP?

ERP is Enterprise Resource Planning a software package developed for optimum use of
resources of an enterprise in a planned manner. ERP integrates the entire enterprise starting
from the supplier to the customer, covering logistics, financial and human resources. This
will enable the enterprise to increase productivity by reducing costs. ERP is a package for
cost saving.

27. Distinguish between “Design capacity” and “System capacity”.

Design capacity: the maximum output that can possibly be attained.

Effective (or) system capacity: the maximum possible output given a product mix,
scheduling difficulty, machine maintenance, quality factors, and so on.

28. Define MPS

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 A Master Production Schedule or MPS is the plan that a company develops for production,
inventory, staffing, etc. It sets the quantity of each end item to be completed in each week
of the planning horizon. It is the plan for all future production of end items.

29. What is rough cut plan?

 A high-level capacity planning system. It Checks the critical resources and verifies
the feasibility of MPS and sales and operations plan.
 RCCP verifies that sufficient capacity available to meet the capacity requirements for
MPS.
30. Define BOM?

BOM contains the information to identify each item and the quantity used per unit of the
item of which it is a part. It contains not only complet e product script ions, listings,
materials, parts and components but also the sequence in which the product is created.

UNIT-3

31. What is Product focused Strategy?

Product-Focused Strategy is a facility organized around products, a product oriented,

high-volume low variety process.

Examples of Product-Focused strategy: Soft Drinks (Continuous, then Discrete), Paper

(Continuous), Light Bulbs (Discrete), and Mass Flu Shots (Discrete)

32. What is Process focused Strategy?

A process strategy is an organization’s approach to transforms resources into goods and

services

33. What is Repetitive focused Strategy?

A repetitive process is a product oriented production process that uses modules. It falls
between product focus and process focus. It uses modules which are parts or components
prepared often in a continuous or mass production process.

34. What is Product Innovation?

Development of new products, changes in design of established Products or use of new

materials or components in manufacture of established products.

35. What is Service innovation?

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 "Service innovation" is a broad term that has to do with making changes in the direction,

organization and even the product line of a business in order to anticipate demand and keep the
company in the forefront of an industry.

36. List out the sources of Product Innovation?

a) Industry and market structure

b) New knowledge

c) Changes in perception

d) Process needs

37. What is Design for ease of Production?

A design engineer will create a model or design and send it to manufacturing for review and
invite feedback. This process is called a design review.

The process of designing products to optimize the manufacturing process while assuring
the product's highest quality, performance, and reliability for the price

38. What is designing for quality?

Building product quality into the product design is the first step in producing products of
superior quality.

UNIT-4

39. Define Material Management.

Material management is an approach for planning, organizing, and controlling all those activities
principally concerned with the flow of materials into an organization.

40. What is EOQ?

EOQ is the acronym for economic order quantity. The economic order quantity is the optimum quantity
of goods to be purchased at one time in order to minimize the annual total costs of ordering and carrying
or holding items in inventory. EOQ is also referred to as the optimum lot size.

41. Write Short note on ABC Analysis.

In materials management, the ABC analysis (or Selective Inventory Control) is an inventory categorization
technique. ... Thus, the inventory is grouped into three categories (A, B, and C) in order of their
estimated importance. 'A' items are very important for an organization.

42. What are the reasons for stocking items in Inventory?

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 a) Safety stock protects against unforeseen variation in supply and/or demand
b) To compensate forecast inaccuracies (only in case demand is bigger than the forecast)
c) Its purpose is to prevent disruptions in manufacturing or deliveries
d) Avoid stock outs to keep customer service and satisfaction levels high

43. What is the objective of JIT?

(i) Zero inventories
(ii) Zero breakdowns
(iii) 100% on time delivery service
(iv) Elimination of non-value added activities

44. Give example of JIT in an Organization.

a) Toyota
b) Dell

45. Define JIT.

Just-In-Time (JIT) is a purchasing and inventory control method in which materials are obtained just-in-
time for production to provide finished goods just-in-time for sale.

46. What is meant by selective control inventory?

Selective Inventory Control is an essential part of Materials Management. Selective control is emphasizes
on variations in methods of control from item to item based on selective basis.

47. State any two objectives of materials management.

a) Low Prices
b) Low Inventories
c) Reduction in Real Costs
d) Regular Supply
e) Procurement of Quality Materials
f) Make or Buy Decisions

48. What is Budgeting?

Budgeting is the process of creating a plan to spend your money. This spending plan is called a
budget. Creating this spending plan allows you to determine in advance whether you will have
enough money to do the things you need to do or would like to do.

49. Define Purchasing.

Purchasing is the first phase of Materials Management. Purchasing means procurement of goods
and services from some external agencies.

50. Who is Vendor?

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A vendor, also known as a supplier, is an individual or company that sells goods or services to
someone else in the economic production chain.

51. What do you meant by Vendor Rating?

Vendor Rating (also called: supplier rating) is a system used by buying organizations or industry analysts
to record, analyze, rank and report the performance of a supplier in terms of a range of predefined
criteria, which may include such things as: Quality of the product or service.

52. What is store management?

Store is an important component of material management since it is a place that keeps the
materials in a way by which the materials are well accounted for, are maintained safe, and are
available at the time of requirement.

53. List out the different types of Stores.

a) Supermarket
b) Grocery store
c) Drugstore
d) Hardware store
e) Convenience store
f) Warehouse store

54. What do you meant by Inventory?

Inventory is the raw materials, work-in-process products and finished goods that are considered
to be the portion of a business's assets that are ready or will be ready for sale.

55. Define Cost.

In production, research, retail, and accounting, a cost is the value of money that has been used up to
produce something or deliver a service, and hence is not available for use anymore.

56. List out types of Cost.

a) Fixed Cost
b) Variable Cost
c) Marginal Cost
d) Opportunity Cost
e) Total Cost
57. Objectives of Purchasing Management.

a) To purchase the required material at minimum possible price by following the company policies.

b) To keep department expenses low.

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 c) Development of good & new vendors ﾧ (suppliers).

d) Development of good relation with the existing supplier

UNIT-5

58. What is scheduling?

Assigning an appropriate number of workers to the jobs during each day of work.

59. What is Project Management?

Project management is the process by which a proposed project is developed within a

rigorous framework.

60. What is Project Scheduling?

Project scheduling is concerned with the techniques that can be employed to manage the
activities that need to be undertaken during the development of a project

61. What is crashing?

Reducing the completion time of a project by sharply increasing manpower and/or other
expenses

62. What is sequencing?

A sequence is an ordered list. Like a set, it contains members (also called elements, or
terms). The number of ordered elements (possibly infinite) is called the length of the
sequence.

63. List out types of scheduling?

a) Long term scheduling

b) Medium term scheduling

c) Short term scheduling

64. What is resource allocation?

Resource allocation is used to assign the available resources in an economic way. It is

part of resource management. In project management, resource allocation is the scheduling
of activities and the resources required by those activities while taking into consideration
both the resource availability and the project time

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 65. What is resource leveling?

"Technique in which start and finish dates are adjusted based on resource constraints with
the goal of balancing demand for resources with the available supply"

66. What is PERT?

The Program (or Project) Evaluation and Review Technique, commonly abbreviated PERT, is

a statistical tool, used in project management, that is designed to analyze and

represent the tasks involved in completing a given project.

67. What is CPM?

The critical path method (CPM) is an algorithm for scheduling a set of project activities

68. What is the difference between CPM and PERT?

CPM PERT
CPM uses activity oriented network. PERT uses event oriented Network.
Durations of activity may be estimated with a fair Estimate of time for activities are not so
degree of accuracy. accurate and definite.
It is used extensively in construction projects. It is used mostly in research and development
projects, particularly projects of non-repetitive
nature.
Deterministic concept is used. Probabilistic model concept is used.
CPM can control both time and cost when planning. PERT is basically a tool for planning.
In CPM, cost optimization is given prime importance. In PERT, it is assumed that cost varies directly
The time for the completion of the project depends with time. Attention is therefore given to
upon cost optimization. The cost is not directly minimize the time so that minimum cost
proportioned to time. Thus, cost is the controlling results. Thus in PERT, time is the controlling
factor. factor.

13 MARKS AND 15 MARKS

UNIT-1

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1. Describe the basic models of production systems?

2. Elaborate the recent trends in production and operations management?

a) Global Competition
b) Operations Strategy
c) Flexibility Cycle
d) Time Reduction
e) Business Process Re-engineering
f) Supply Chain Management
g) Workers Involvement TQM
h) Lean Manufacturing
i) Technology
j) Worker involvement
k) Environmental issues
l) Corporate downsizing
m) Re-engineering

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3. Discuss in details different types of manufacturing process with examples or different
types of production systems?

A) Intermittent production Systems B) Continuous production systems

i. Project production flow i. Mass production flow

ii. Job shop production ii. Process production flow

iii. Batch production flow

4. Explain the factors affecting today’s operations management?

a) Global competition b) technology c) Patent d) resources e) methods f) management g)

supply chain management i) quality j) growth of service sectors k) scarcity of
resources l) issues of corporate social responsibility.

5. Describe competitive positioning of products and services?

Factors deciding competitive positioning of products and services

 Products and Services features

 Products and services performance

 Reliability

 Durability

 Value of products or services

 Post sales services

 Warranty and Guarantee

 Differentiation

 Cost Leadership

 Product and service design

 Location

 Quality

 Quick response

 Flexibility

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  Inventory management

 Supply chain management

 Good Service

UNIT-2

6. What are the factors determining / affecting the Demand? Explain.

There are many economic, social and political factors or determinants which greatly
influence the demand for a commodity. Some of these factors are as noted below

1. Price of a Commodity
2. Price of Related Goods
3. Income of the Consumer
4. Distribution of Wealth
5. Tastes and Preferences
6. Government Policy
7. State of Business and
8. Population Growth

These will be discussed one by one in detail.

1. Price of a commodity
The foremost significant factor which influences the demand is the price of the
commodity. As the price of a commodity changes, it causes an inverse change in the demand for
commodity, ceteris paribus.

2. Price of Related Goods

Demand for commodity is also influenced by the change in the price of related
goods. These goods are two types viz. substitute goods or complementary goods. Substitute
goods are those which can replace each other in use like tea and coffee while the complementary
goods are those which are jointly demanded as petrol and car etc. if the price of the car increases,
demand for car will fall, along with it the demand for petrol will also fall and vice-versa.

3. Income of the Consumer

Income of the consumer is another factor influences the demand. Generally, there
is direct relation between income of the consumer and his demand. The demand for normal
goods rises, with an increase in income and falls with a fall in income. In the case of inferior
goods, the demand falls with an increase in income and rises with decrease in income.

4. Distribution of Wealth
The amount demanded of a commodity is also influenced by the distribution of
wealth in the society. If there is an equal distribution of income in the society, the demand will be
higher and in case of inequality demand will be less.
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 5. Tastes and Preferences
Tastes and preferences of the consumer also influence the demand to a great
extent. They include fashion, habits, customs, advertisement, climate, new inventions etc. other
things being equal, as the taste of the commodity goes up, demand will also increase. On the
other hand, demand for the commodity goes down, if the consumers have no taste of the
commodity.

6. Government Policy
Government policy is also responsible to influence the demand for the
commodity. The government imposes taxes on various commodities which lead to an increase in
the price of the commodities. As a result demand goes down.

7. State of Business
The demand for commodities also depends on conditions prevailing in the country
or region. If the country is passing through the period of boom, there will be an increase in the
market demand. During the period of depression, the market demand will be on the lower side.

8. Population Growth
The growth of population is another determinant to influence the demand of a
commodity. Increase in population leads to an increase in demand for all types of goods whereas
decrease in population means less demand for such commodities. Moreover, composition of
population also affects the demand.

7.Explain types of Demand with Suitable Examples in detail

1) Demand for consumer goods

Consumer goods are those goods that are purchased for final consumption Eg: Food
products, Soap, Colgate, all FMCG Products, etc

2) Demand for producers’ goods

Producers’ goods are those goods that are used for further production. These are also
known as capital goods. Eg: Tyres, Glass, Yarn, and Machinery, Semi finished Raw
Materials, All OEM (Original Equipment Manufacturers) Products’

3) Autonomous demand

Autonomous demands are independent demand. These demands are in no way linked
with the demand for any other commodities. Any Product directly can consume without
help of any other Product is called Autonomous Demand Eg: Food items, Cloths etc
rived demand

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 Derived demand is defined as when they want for one good or service happens because
of the want for another good or service. An example of derived demand is an increase
in the need for wood because of the increase in the need for furniture.

4) Individual demand

The quantity of a commodity demanded by an individual at a particular price during a

given period is known as individual demand Eg: 1 Kg of Orange demanded by
Mr. Venkatesh only when the price was Rs.60 Per kg

5) Market demand

Market demand is the estimates of quantity demanded of the commodity per time period
at various alternate prices by all the individual households in the market. Eg: Quantity
demanded for Orange for the month of December at various price by all the
individuals in Particular Market.

6) Company demand

The term company demand denotes the demand for a particular product of a particular
firm. Eg: The demand for motor bikes of Bajaj Ltd in the market.

7) Industry demand

Industry demand refers to the total demand for the product of a particular industry. Eg:
Demand for Car from Automobile Industry

8) Short run demand

Short run demand refers to existing demand with its immediate reaction to price changes,
income fluctuation etc.Example: Helmet, Contractual wage rates

9) Long run demand

Long-run demand is that which will ultimately exist as a result of changes in pricing,
promotion or product improvement, after enough time has elapsed to let the market adjust
itself to the new situation. All inputs variable, firms can enter and exit the market
place.Examples: Capital Stock, Share Market

10) Demand for durable goods

Durable goods are those goods that are having a longer life span or that are purchased for
longer use. Eg: Television, All Electronics items

11) Demand for perishable goods

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 Perishable goods are those goods which disappear on consumption. These are also termed
as single use goods. Eg: Food products, Vegetables, Flowers, etc..,

12) Joint demand

When two or more goods are demanded to satisfy the same want, it is called joint
demand. Eg: Demand for Car and Petrol

13) Composite demand

When a particular product is demanded to be put to multiple uses, it is called composite

demand. Eg: Demand for milk as it is used to make tea, ice-cream, butter etc

8. Methods of Demand Forecasting

Survey

Methods

1. Survey of Buyer’s Intention : the consumers are contacted personally to disclose their
future purchase plans.

A. Census Method: All consumers are contacted to know their preferences for the
products in future.

B. Sample Method: method a sample of consumers is selected for interview.

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 2. Survey of Sales Forces : The company elicits the opinion of its sales force regarding the
future demand for the product given an outline of its features and prices

 Collective Opinion Techniques

 Delphi Techniques

Statistical Techniques Methods

1. Trend Projection Method: Based on analysis of past sales patterns. These method
dispense with the need for costly market research because the necessary information is
often already available in the company (Last Five months data to determine)

2. Barometric Technique : one set of data is used to predict another set. A relevant
indicator is used as a barometer of future demand.

3. Simultaneous Equations Method : All the variables are simultaneously considered as it

is assumed that every variable influences the other variables in an economic environment

4. Correlation and Regression Method: Which speak about the nature of relationship and
extent of relationship respectively between two given variables, one is dependent and the
other one is independent.

Other Methods

1. Expert Opinion: An Expert, who is associated with the insights of the industry as a
whole, is invited to suggest about the future of a particular product or services.

2. Test Marketing: Releasing the product on a test basis in a well chosen, limited, but
representative market.

3. Controlled Experiments: The company can experiment different homogeneous markets

releasing its product with different types of appeal as different prices, packaging, models
and so on

4. Judgment Approach: to use one’s judgments, where none of the above methods are
suitable to assess demand for a particular product or service.

9. Describe Value engineering Methods or Techniques?

i. Selection Phase (Occurs before the formal value study)

ii. Information Phase (Beginning of formal value study)

iii. Creativity Phase

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 iv. Analysis Phase

v. Development Phase

vi. Presentation Phase (Ends the formal value study part)

vii. Implementation Phase

viii. Verification Phase

10. Discuss in detail what are the steps involved in selection of best location

a) Deciding on domestic or international location

b) Selection of region

 Availability of raw materials

 Nearness to the market
 Availability of power
 Transport facilities
 Suitability of climate
 Government policy
 Competition between states
c) Selection of community

 Availability of labour
 Civic amenities for worker
 Existence of complementary and competing industries
 Finance and research facilities
 Availability of water and fire-fighting facilities
 Local taxes and restrictions
 Momentum of an early start
 Personal factors
d) Selection of the site

 Soil, size and topography

 Disposal of waste
11.Discuss in detail Types of Layout with examples and also discuss the advantages and
disadvantages of layout.
There are mainly four types of plant layout:

(a) Product or line layout

(b) Process or functional layout

(c) Fixed position or location layout

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(d) Combined or group layout or Cell Layout

12. What are the factors influencing effective capacity and what are all the factors favoring
overcapacity and under capacity? Discuss.
i. Facilities factor
ii. Product/service factor
iii. Process factors
iv. Human resource factor
v. Operational factor
vi. External factor
UNIT-3

13. Discuss in detail types of process design with examples

I. Product-Focused

II. Process-Focused

III. Group Technology/Cellular Manufacturing

I. Product-Focused

Processes (conversions) are arranged based on the sequence of operations required to

produce a product or provide a service

Also called “production line,” “assembly line,” and flow line

i. Two general forms

a. Discrete unit – automobiles, dishwashers

b. Process (Continuous) – petrochemicals, paper

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 i. Advantages

a. Lower labor-skill requirements

b. Reduced worker training

c. Reduced supervision

d. Ease of planning and controlling production

ii. Disadvantages

a. Higher initial investment level

b. Relatively low product flexibility

II. Process-Focused

Processes (conversions) are arranged based on the type of process, i.e., similar processes are
grouped together

Products/services (jobs) move from department (process group) to department based on that
particular job’s processing requirements

Also called “job shop” or “intermittent production”

1. Examples

a. Machine shop

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 b. Auto body repair

c. Custom woodworking shop

i. Advantages

a. High product flexibility

b. Lower initial investment level

ii. Disadvantages

a. Higher labor-skill requirements

b. More worker training

c. More supervision

d. More complex production planning and controlling

III. Group Technology/Cellular Manufacturing

Group Technology

a) Each part produced receives a multi-digit code that describes the physical
characteristics of the part.

b) Parts with similar characteristics are grouped into part families

c) Parts in a part family are typically made on the same machines with similar tooling
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 Cellular Manufacturing

a) Some part families (those requiring significant batch sizes) can be assigned to
manufacturing cells.

b) The organization of the shop floor into cells is referred to as cellular manufacturing.

c) Flow of parts within cells tend to be more like product-focused systems

Advantages (relative to a job shop)

a. Process changeovers simplified

b. Variability of tasks reduced (less training needed)

c. More direct routes through the system

d. Quality control is improved

e. Production planning and control simpler

f. Automation simpler

Disadvantages

a. Duplication of equipment

b. Under-utilization of facilities
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 c. Processing of items that do not fit into a family may be inefficient

14. Discuss the information flow for planning and control with MRP.

15. With a
detailed sketch
explain the
evolution of ERP
from MRP.

Timeline System
1960 Inventory Management and Control
1970 Material Requirement Planning ( MRP)
1980 Material Resource Planning(MRP II)
1990 Enterprise Resource Planning(ERP)
2000 Web – Enabled ERP

UNIT-4
16. Types and Objectives of Inventory
Types
a) Raw Materials
b) Work-in-Progress
c) Semi-finished goods
d) Equipment’s
e) Finished Goods
Objectives
a) Economies of purchasing
b) Economies of production
c) Transportation savings
d) Hedge against future
e) Unplanned shocks (labor strikes, natural disasters, surges in demand, etc.)
f) To maintain independence of supply chain
17. Discuss in detail Basic Elements of Just in Time
a) Flow Lay out
b) Smoothed Build up rate
c) Mixed model scheduling
d) Small lots and minimum set up time
e) Buffer stock removal
f) Kanban card
g) Quality
h) Product and process simplification
i) Standard container
j) Preventive maintenance
18. Explain about Inventory Control Techniques
a) Determination of various levels of materials
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 b) Economic Order Quantity
c) ABC Analysis
d) Perpetual Inventory System
e) VED Analysis
f) FSN Analysis
19. Describe the role of Gantt chart for the stores managers
a) When each task begins and ends
b) How long each task is scheduled to last
c) Where tasks overlap, and by how much
d) The start and end date of the whole project
e) Task dependencies and the project critical path
f) All the associated tasks
20. Discuss in detail Vendor Rating Method with suitable examples
a) Categorical Plan
b) Weighted point method
c) Cost ratio method
d) Evanston’s Vendor Selection
e) Forced Decision Matrix
f) Service Cost Ratio
g) Bell Quality Rating System
h) IBM Quality Rating System

21. Briefly discuss the functions of Purchasing.

a) Receiving indents
b) Assessment of demand or description of need
c) Selection of sources of supply
d) Receiving of quotation
e) Placing order
f) Making delivery at the proper time by following up the orders.
g) Verification of invoices
h) Inspection of incoming materials
i) Meeting transport requirements of incoming and outgoing materials
j) Maintaining purchasing records and files
k) Reporting to top management
l) Developing coordination among other departments
m) Creating goodwill of the organization in the eyes of the suppliers.
22. Explain the basic Principles of JIT Manufacturing System.
a) The Seven Common Types Of Waste Identified By JIT Include:
b) Processing Waste
c) Waste Due To Idling Time Of Machinery
d) Waste Due To Product Defects
e) Waste Of Motion Or Faulty Working Techniques
f) Waste Related To Transportation
g) Waste From Overproduction
h) Inventory Waste
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 23. Discuss in detail about the nature and classification of the stores management.
a) Functional Stores
b) Physical Stores
c) Raw materials store
d) Production Store
e) General Store
f) Salvage Store
g) Packing store
h) Spare parts store
i) Receipt Store
j) Quarantine Store
k) Finished Goods store
l) Work-in-progress Store
m) Central store
UNIT-5
24. Explain the Crashing in Project Network. Differentiate between Resource Leveling and
Resource Allocation.
Under Project time management knowledge area there is a specific process called Develop
Project schedule. Under this process, we have Resource Optimization Techniques and these are
resource leveling and resource smoothing. Today we are discussing differences between resource
leveling and resource smoothing

Resource leveling
“A technique in which start and finish dates are adjusted based on resource constraints with the
goal of balancing demand for resources with the available supply.” – PMBOK® Guide Sixth
Edition.

Resource Smoothing
“A technique that adjusts the activities of a schedule model such that the requirements for
resources on the project do not exceed certain predefined resource limits.”– PMBOK® Guide
Sixth Edition.

Resource leveling Resource Smoothing

We apply resource smoothing after doing resource leveling and

It applies the resource constraints to the project and may we make use of slack, and will not result in change of project
result in change in project duration. duration.

Resource smoothing is more to do with desired limits, like we

Resource Leveling is primarily driven by resource constraints, do have 45 hours available for given resource but we wish that
like you do not have more than 45 hours of the given resource we allocate 38 hours per week so we have some breathing
for a week. space.

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 Resource leveling Resource Smoothing

The allocation limits identified in resource leveling must be The desired limit identified in resource smoothing may not be
applied. applied in some cases, if we do not have slack.

The resource leveling is done first and then we do the resource

smoothing. Since we need to first accommodate the resource
constraints before we can optimize it. We apply resource smoothing after applying resource leveling.

25.Explain in detail about the scheduling techniques in project management with suitable
examples.
i. GANTT chart. This is a horizontal bar chart plotted over time (e.g. days, weeks or months). ...
ii. Schedule Network Analysis. ...
iii. Critical Path Method. ...
iv. PERT (Program Evaluation and Review Technique) ...
v. Schedule Compression. ...
vi. Risk multipliers. ...
vii. Resource tools and techniques. ...
viii. Additional resources.

26. Describe in detail about the personnel scheduling in services.

Employee scheduling requires determining when staff members will work and when you need part-
time, full-time, and freelance workers to work. This may sound simple, but you may have staff
who cannot work certain days, who need time off for health or family reasons, or who request to
work certain times. Couple that with unexpected time off such as sick time, and employee
scheduling quickly can become a nightmare. It is best for you to have a policy in place so that
employees are required to give a certain amount of advance notice for time off, especially for
vacations and surgery.

 Increasing operational efficiency, as the scheduling and planning software solution saves
time and improves work methods by automating the process
Increasing management control, as supervisors and managers have the ability to monitor
resources in real time with complete visibility into the employees’ arrival times, departure times,
tasks completed, and more
Increasing satisfaction, as workers provide a quick response to customer calls, and staff enjoys
the benefits of a schedule the accommodates the work load and fairly divides holidays,
weekends, and other less desirable shifts
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Employee shift planning may seem like a daunting task, especially for enterprises and those
within the mobile workforce industry, but with the right employee scheduling and planning
software, you will increase efficiency, productivity, and satisfaction across the board.
27. Explain the trade-off in network crashing.
In any project network, the first stage is to determine critical path with normal activity
timings. The execution of various activities can be expedited if necessary. This is called
crashing of activity timings.
Draw the network diagram with normal activity
 Duration of the activity
 Early and late events times for each node
 Free float for each activity

 Compression Limit
 Crashing of network can be classified into two types

28. Distinguish Between PERT and CPM.

CPM PERT
CPM uses activity oriented network. PERT uses event oriented Network.
Durations of activity may be estimated with a fair Estimate of time for activities are not so
degree of accuracy. accurate and definite.
It is used extensively in construction projects. It is used mostly in research and development
projects, particularly projects of non-repetitive
nature.
Deterministic concept is used. Probabilistic model concept is used.
CPM can control both time and cost when planning. PERT is basically a tool for planning.
In CPM, cost optimization is given prime importance. In PERT, it is assumed that cost varies directly
The time for the completion of the project dependswith time. Attention is therefore given to
upon cost optimization. The cost is not directlyminimize the time so that minimum cost
proportioned to time. Thus, cost is the controllingresults. Thus in PERT, time is the controlling
factor. factor.

29. Distinguish Between Gantt Load Chart and Gantt Scheduling Chart.

Gantt Chart Flow Chart

A bar chart to project the relation

A diagram that depicts the nature and flow of
Definition between the task and the time
steps involved in a process
associated with it

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 Various geometrical symbols like rectangles, oval,
Graphic symbols Horizontal bars
etc

designing and documenting complex processes in

Usage Mainly in project management
any field

Excellent tool for depicting milestones
and resources scheduled to time, used
Advantages
in status reporting, simple presentation
format
Promote process understanding, Provide tool for
training, Identify problem areas and improvement,
opportunities, Depict customer-supplier
relationships

Focus Area Time taken to complete a task Sequencing of tasks or processes

Can have parallel or interconnecting networks of

Representation Linear
tasks

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