ASSIGNMENT

Name : P. Vaishnavi.

Course Code : MS – 05

Course Title : Management of Machines and Materials

Assignment Code : MS-05/SEM-I/2011

Coverage : All Blocks

Date of Submission : 26/04/2011.

Q1. Elaborate the concept of Systems Life-Cycle in Operations
Management.
Solution:

Systems Life Cycle (SLC) is a process used by a systems analyst to develop an information
system, including requirements, validation, training, and user (stakeholder) ownership. Any
SLC should result in a high quality system that meets or exceeds customer expectations,
reaches completion within time and cost estimates, works effectively and efficiently in the
current and planned Information Technology infrastructure, and is inexpensive to maintain
and cost-effective to enhance. Computer systems are complex and often (especially with the
recent rise of Service-Oriented Architecture) link multiple traditional systems potentially
supplied by different software vendors. To manage this level of complexity, a number of
SLC models have been created: "waterfall"; "fountain"; "spiral"; "build and fix"; "rapid
prototyping"; "incremental"; and "synchronize and stabilize".

In project management a project can be defined both with a project life cycle (PLC) and an
SLC, during which slightly different activities occur. According to Taylor (2004) "the project
life cycle encompasses all the activities of the project, while the systems life cycle focuses
on realizing the product requirements.

The Systems Life Cycle (SLC) phases serve as a programmatic guide to project activity and
provide a flexible but consistent way to conduct projects to a depth matching the scope of the
project. Each of the SLC phase objectives are described in this section with key deliverables,
a description of recommended tasks, and a summary of related control objectives for
effective management. It is critical for the project manager to establish and monitor control
objectives during each SLC phase while executing projects. Control objectives help to
provide a clear statement of the desired result or purpose and should be used throughout the
entire SLC process. Control objectives can be grouped into major categories (Domains), and
relate to the SLC phases as shown in the figure.
To manage and control any SLC initiative, each project will be required to establish some
degree of a Work Breakdown Structure (WBS) to capture and schedule the work necessary to
complete the project. The WBS and all programmatic material should be kept in the “Project
Description” section of the project notebook. The WBS format is mostly left to the project
manager to establish in a way that best describes the project work. There are some key areas
that must be defined in the WBS as part of the SLC policy. The following diagram describes
three key areas that will be addressed in the WBS in a manner established by the project
manager.

Work breakdown structured organization

The upper section of the Work Breakdown Structure (WBS) should identify the major phases
and milestones of the project in a summary fashion. In addition, the upper section should
provide an overview of the full scope and timeline of the project and will be part of the initial
project description effort leading to project approval. The middle section of the WBS is
based on the seven Systems Life Cycle (SLC) phases as a guide for WBS task . The WBS
elements should consist of milestones and “tasks” as opposed to “activities” and have a
definitive period (usually two weeks or more). Each task must have a measurable output (e.x.
document, decision, or analysis). A WBS task may rely on one or more activities (e.g.
software engineering, systems engineering) and may require close coordination with other
tasks, either internal or external to the project. Any part of the project needing support from
contractors should have a Statement of work (SOW) written to include the appropriate tasks
from the SLC phases. The SOW does not occur during a specific phase of SLC but is
developed to include the work from the SLC process that may be conducted by external
resources such as contractor.
Q2.Define work measurement. What are the various methods of
work measurement? Discuss work sampling.
Solution:

The purpose of work measurement is to determine the time it ought to take to do a job. The
problem is in the definition of "ought to." Work measurement analyst define this as the time
it should take an experienced and well-trained operator to perform the job in a specific and
well-defined method at a speed that can be maintained all day, day after day, without undue
fatigue. This time, called standard time, can be divided into several parts: the actual elements
used to perform the job; the rating factor used to determine the "normal" pace of these
elements (the method used to determine the "ought to" time); and an allowance for personal
time, unavoidable delays, and slowing due to fatigue.

There are four main systems of work measurement.

First, and most used, is time study, specifically, stop-watch time study. Motion picture and
video cameras, computers, and various production timing devices can also be used in the
place of, and in conjunction with, the stop watch.

The second system, work sampling, is a statistical procedure for measuring work and
requires an understanding of the techniques of statistics and probability.

The third system, predetermined time systems (PDT), uses sets of tables of basic motions
that have already been "normalized" by experts. Thus, PDT systems do not require the
analyst to "rate" or "level" the measurement.

The fourth, there is the standard data system of work measurement which, strictly speaking,
is not a measurement technique at all. Here similar elements made up of similar groups of
motions from the other measurement systems are tabled and then reused as needed for
subsequent products and standards.

Uses of Work Measurement:

Work measurement is used to determine standards against which comparisons can be made
for a variety of purposes.

1. Wage incentives. If workers are to be paid in accordance with the amount of work
accomplished rather than the amount of time expended (hourly), some means of determining
an acceptable, or fair, amount of work is needed. The payment for work accomplished could
be based on sales price and profits, but a fairer method is to establish a standard and pay in
accordance to that standard.

2. Schedules. In order to schedule work effectively and keep things running smoothly and
orderly, a knowledge of expected working times is an absolute necessity.
3. Budgets. Budgets provide needed control over funds. One of their more important inputs
is operating costs. Standards provide the expected operating times from which these costs are
computed.

4. Labor cost: control.Labor cost is usually a very significant percentage of the total
manufacturing cost (normally from 10 to 40 percent). To control these costs, the actual costs
must be compared to a standard and any deviation corrected, especially if the actual is greater
than the standard.

5. Downtime studies. Properly developed standards include reasonable allowances (extra

time) for personal time, unavoidable delays, and fatigue. Both time study and work sampling
can be used to determine these allowances. They can also be used on a continuing basis
(daily or weekly) to measure actual downtime and personal time when definitive production
records are not kept and standards are not used.

Work Sampling:
Work Sampling is the statistical technique for determining the proportion of time spent by
workers in various defined categories of activity (e.g. setting up a machine, assembling two
parts, idle). It is as important as all other statistical techniques because it permits quick
analysis, recognition, and enhancement of job responsibilities, tasks, performance
competencies, and organizational work flows. Other names used for it are 'activity sampling',
'occurrence sampling', and 'ratio delay study.
In a work sampling study, a large number of observations are made of the workers over an
extended period of time. For statistical accuracy, the observations must be taken at random
times during the period of study, and the period must be representative of the types of
activities performed by the subjects.
One important usage of the work sampling technique is the determination of the standard
time for a manual manufacturing task. Similar techniques for calculating the standard time
are time study, standard data, and predetermined motion time systems.
Q3. What are the objectives of Value Engineering? Discuss how
to organize VE/VA function in a tractor manufacturing firm.

Solution:

Value Engineering (VE) is an organized effort directed at optimizing a product’s relationship

between its functional need and the cost to meet that need while meeting or exceeding quality
requirements. It is a formal attempt to assure the highest value of a product by delivering all
required functions at the lowest overall cost. Through the selection of the most appropriate
product for analysis and a creative team, Value Engineering projects on average yield a 10-
20% reduction in cost without a quality sacrifice.

Value engineering emerged into prominence after World War II. Basic ideas related to it
were developed by Lowrence D.Miles in 1947. The industrial situation during that period
was so, that there was overall recession. Material was in short supply. Trained and skill
manpower was insufficient. Therefore, manufacturing technologies were looking for
alternative material, improved processing requirements, better designs, low cost operation,
and efficient system. Foundation of value engineering got its root during this period to
achieve some of these objectives. The major focus, however, was to cut down cost while
retaining the desired function of the product.

The objective of value engineering is the systematic application of recognized techniques to

identify the function of a product or service; establish norms for the function; and provide the
necessary function related to these at lowest cost.

IMEC works with clients in providing a Value Engineering cost-reduction workshop that
challenges and utilizes a select cross-functional team of inter-company employees working in
a dynamic team environment. IMEC’s experienced VE facilitators lead the team through the
use of proven techniques such as teamwork, functional analysis, creativity, cost-worth, and
others that are guided by the VE project objectives and implementation plan.

Objectives of Value Engineering Value:

1. Selection. IMEC staff works with the client to select the product to benefit from the Value
Engineering process. Selection also includes identifying the team to participate in the
workshop.

2. Investigation. During the investigation phase, the team is trained to understand and
implement the basic tools of the VE process. The team will then investigate all of the current
product and process information including performance requirements. The entire process will
be investigated from raw materials to finished goods. All functions will be investigated at
their most basic level and assigned a cost value at that level.
3. Speculation. This phase requires the team to apply brainstorming techniques to generate a
large list of potential alternatives to the current product and manufacturing process.

4. Evaluation. Evaluation is the process by which the team refines ideas evaluating the
advantages and disadvantages of each alternative. The team will build cost models and
estimate the resources required to implement the best alternatives.

5. Completion. This requires the team to further define and validate the best alternatives
utilizing sketches, testing, and other technical work. Typically action items are assigned to
confirm feasibility and can require up to several weeks to complete.

6. Presentation. Following the completion of the action items, the VE team reconvenes to
finalize and present their recommendations to the executive staff.

7. Implementation. IMEC works with executive staff to assign the appropriate action items to
ensure recommendations are implemented.

8. Audits. IMEC works with the VE team leader to audit progress and update the executive
staff measuring actual savings versus estimates.

Benefits of Value Engineering

Value Engineering is a powerful, proven methodology used to define the basic value added
functions of a product while improving quality, performance, and eliminating unnecessary
costs.

Value Analysis:
Value Engineering is often done by systematically following a multi-stage Job Plan. IT is a
8-step procedure , called the Value Analysis Job Plan. Others have varied the Job Plan to fit
their constraints. One modern version has the following eight steps:
• PREPARATION
• INFORMATION
• ANALYSIS
• CREATION
• EVALUATION
• DEVELOPMENT
• PRESENTATION
• FOLLOW-UP
Four basic steps in the VALUE ANALYSIS Job Plan are:
• Information gathering - This asks what the requirements are for the object. Function
analysis, an important technique in value engineering, is usually done in this initial
stage. It tries to determine what functions or performance characteristics are
 important. It asks questions like; What does the object do? What must it do? What
should it do? What could it do? What must it not do?
• Alternative generation (Creation) - In this stage value engineers ask; What are the
various alternative ways of meeting requirements? What else will perform the desired
function?
• Evaluation - In this stage all the alternatives are assessed by evaluating how well
they meet the required functions and how great will the cost savings be.
• Presentation - In the final stage, the best alternative will be chosen and presented to
the client for final decision.

Value Engineering can be applied to a Tractor Manufactureing firm in the

following areas:

1.TRACTOR DESIGN
-make the design simple
- easy to use
-reduce COMPLICATED / expensive parts.

2. TRACTORS RAW MATERIAL / PARTS PROCUREMENT

-establish the demand planning system [reduce the fluctuations in production]
-establish the inventories of raw materials [reduce the cost of stock holding]
-establish the economic order quantity

3. TRACTORS PRODUCTION PLANNING

-establish an effective / efficient production planning system [cost savings]

4. TRACTORS PRODUCTION
-establish a lean production [cost effective]

5. TRACTORS TOTAL QUALITY ASSURANCE.

-set up quality assurance system to reduce quality problems/ rejections
[cost savings ]

6. TRACTORS FINISHED GOOD INVENTORY

-match the finished stock inventory to market demand / sales requirements]
[cost saving in stock holding ]

7. TRACTORS CUSTOMER SERVICE

-provide effective customer order processing/order service/
Timely dispatch to customers.
[adds value to customers / reduces distribution cost]

8. TRACTORS AFTER SALES SERVICE

-offer warranty/ after sales service to customers
Q4. Write an essay on Statistical Quality Control.
Solution:
Statistical Quality control is the application of statistical methods to the monitoring and
control of a Quality to ensure that it operates at its full potential to produce conforming
product. Under SQC, a Quality behaves predictably to produce as much conforming product
as possible with the least possible waste. While SQC has been applied most frequently to
controlling manufacturing lines, it applies equally well to any Quality with a measurable
output. Key tools in SQC are control charts, a focus on continuous improvement and
designed experiments.

Much of the power of SQC lies in the ability to examine a Quality and the sources of
variation in that Quality using tools that give weight to objective analysis over subjective
opinions and that allow the strength of each source to be determined numerically. Variations
in the Quality that may affect the quality of the end product or service can be detected and
corrected, thus reducing waste as well as the likelihood that problems will be passed on to the
customer. With its emphasis on early detection and prevention of problems, SQC has a
distinct advantage over other quality methods, such as inspection, that apply resources to
detecting and correcting problems after they have occurred.

In addition to reducing waste, SQC can lead to a reduction in the time required to produce the
product or service from end to end. This is partially due to a diminished likelihood that the
final product will have to be reworked, but it may also result from using SQC data to identify
bottlenecks, wait times, and other sources of delays within the Quality. Quality cycle time
reductions coupled with improvements in yield have made SQC a valuable tool from both a
cost reduction and a customer satisfaction standpoint.

Statistical Quality Control may be broadly broken down into three sets of activities:
understanding the Quality; understanding the causes of variation; and elimination of the
sources of special cause variation.

In understanding a Quality, the Quality is typically mapped out and the Quality is monitored
using control charts. Control charts are used to identify variation that may be due to special
causes, and to free the user from concern over variation due to common causes. This is a
continuous, ongoing activity. When a Quality is stable and does not trigger any of the
detection rules for a control chart, a Quality capability analysis may also be performed to
predict the ability of the current Quality to produce conforming (i.e. within specification)
product in the future.

When excessive variation is identified by the control chart detection rules, or the Quality
capability is found lacking, additional effort is exerted to determine causes of that variance.
The tools used include Ishikawa diagrams, designed experiments and Pareto charts. Designed
experiments are critical to this phase of SQC, as they are the only means of objectively
quantifying the relative importance of the many potential causes of variation.
Once the causes of variation have been quantified, effort is spent in eliminating those causes
that are both statistically and practically significant (i.e. a cause that has only a small but
statistically significant effect may not be considered cost-effective to fix; however, a cause
that is not statistically significant can never be considered practically significant). Generally,
this includes of standard work, error-proofing and training. Additional Quality changes may
be required to reduce variation or align the Quality with the desired target, especially if there
is a problem with Quality capability.

In practice, most people (in a manufacturing environment) will think of SQC as a set of rules
and a control chart (paper and / or digital). SQC ought to be a QUALITY, that is, when
conditions change such 'rules' should be re-evaluated and possibly updated. This does not,
alas, take place usually; as a result the set of rules known as "the Western Electric rules" can
be, with minor variations, found in a great many different environs (for which they are very
rarely actually suitable).

For digital SQC charts, so-called SQC rules usually come with some rule specific logic that
determines a 'derived value' that is to be used as the basis for some (setting) correction. One
example of such a derived value would be (for the common N numbers in a row ranging up
or down 'rule'); derived value = last value + average difference between the last N numbers
(which would, in effect, be extending the row with the to be expected next value).
Q5. Discuss the various vendor evaluation and rating.
Solution:

As a consumer, when you want to purchase an item, whether it is a new car or a flat screen
television, you will most likely do some research on the prices of your local stores or from
vendors on the internet. When you have narrowed your search you then look at other criteria
that may be important to you, like warranty or availability. Lastly you will look at other less
tangible criteria such as your previous experiences with the vendor and how their customer
service was. This behavior is exactly the same for companies when they want to evaluate the
vendors in their supply chain.

Unless your company only uses one vendor for each item they purchase, there will enviably
be occasion when a decision has to be made as to which vendor gets your business. There are
a number of different scenarios when this will occur, for example when the item is purchased
for the first time and when an item is no longer single sourced.
Purchasing an Item For The First Time

When a decision has to be made between vendors, the purchasing department will use some
vendor evaluation method to be their tool in the decision. If the item is to be bought for the
first time, the purchasing department may have contacted a number of vendors and sent them
a Request for Quotation (RFQ). Each vendor would then complete the RDQ with the
information that was required, normally price and terms. The purchasing department would
then use these completed quotations, in conjunction with other information they have
collected on the vendors, to make short list for further evaluation or make a final selection.
The purchasing department would evaluate the vendors based on a number of criteria they
had decided upon which may include objective criteria such as price and warranty and
subjective data which would include past experience with the vendor. Based on the weighting
given to these criteria the purchasing department would be able to fairly evaluate each
vendor.

Choosing Between Vendor

If the sourcing of an item has been from a single vendor but another vendor has been
approved to supply the same item, a decision would need to be made on vendor selection
when a requisition has been received by the purchasing department. Many companies use a
vendor evaluation tool that allows transaction data to be analyzed to give a comparison
between vendors. The vendor evaluation uses criteria that have been determined by the
purchasing department to compare vendors such as price, delivery reliability, delivery date
adherence and quality of the item. There are any numbers of criteria that can be used in a
comparison and these are usually weighted so that important criteria are given more
credence. For example, a company may decide that quality of the items it receives from
vendors is more important than price, which in turn is more important that delivery
reliability. The company would then weight these criteria so that the overall score reflects
that requirement.
Vendor evaluation is important as it can reduce supply chain costs and improve the quality
and timeliness of the delivery of items to your company. The skill in evaluating vendors is to
determine which criteria are important and the weighting that these criteria are given. It is
important to remember that these criteria may be different for each item you are sourcing and
possibly different between regions or countries. Objective data is useful to compare the
information that you can obtain from each purchase order and goods receipt, but sometimes
the subjective data that your purchasing agents can provide such as customer service and the
willingness of the vendor to accommodate your requirements, is as or more important in a
vendor evaluation.

Various vendors rating:

Vendor rating is the result of a formal vendor evaluation system. Vendors or suppliers are
given standing, status, or title according to their attainment of some level of performance,
such as delivery, lead time, quality, price, or some combination of variables. The motivation
for the establishment of such a rating system is part of the effort of manufacturers and service
firms to ensure that the desired characteristics of a purchased product or service is built in
and not determined later by some after-the-fact indicator. The vendor rating may take the
form of a hierarchical ranking from poor to excellent and whatever rankings the firm chooses
to insert in between the two. For some firms, the vendor rating may come in the form of
some sort of award system or as some variation of certification. Much of this attention to
vender rating is a direct result of the widespread implementation of the just-in-time concept
in the United States and its focus on the critical role of the buyer-supplier relationship.

Most firms want vendors that will produce all of the products and services defect-free and
deliver them just in time (or as close to this ideal as reasonably possible). Some type of
vehicle is needed to determine which supplying firms are capable of coming satisfactorily
close to this and thus to be retained as current suppliers. One such vehicle is the vendor
rating.

In order to accomplish the rating of vendors, some sort of review process must take place.
The process begins with the identification of vendors who not only can supply the needed
product or service but is a strategic match for the buying firm. Then important factors to be
used as criteria for vendor evaluation are determined. These are usually variables that add
value to the process through increased service or decreased cost. After determining which
factors are critical, a method is devised that allows the vendor to be judged or rated on each
individual factor.

It could be numeric rating or a Likert-scale ranking. The individual ratings can then be
weighted according to importance, and pooled to arrive at an overall vendor rating. The
process can be somewhat complex in that many factors can be complementary or conflicting.
The process is further complicated by fact that some factors are quantitatively measured and
others subjectively.

Once established, the rating system must be introduced to the supplying firm through some
sort of formal education process. Once the buying firm is assured that the vendor understands
what is expected and is able and willing to participate, the evaluation process can begin. The
evaluation could be an ongoing process or it could occur within a predetermined time frame,
such as quarterly. Of course the rating must be conveyed to the participating vendor with
some firms actually publishing overall vendor standings. If problems are exposed, the vendor
should formally present an action plan designed to overcome any problems that may have
surfaced. Many buying firms require the vendor to show continuing improvement in
predetermined critical areas.
Q6. Explain how you would proceed in designing a waste
disposal system for a steel plant.
Solution:

The world steel industry produces about 780 Mt of crude steel and simultaneously
approximately 300 Mt of solid wastes products are also produced. Thus an average of about
400 Kg of solid by products is generated in the steel industry per tonne of crude steel. Major
share of this (70-80%) consists of Blast Furnace Slag and basic Oxygen Furnace Slag. These
wastes are an ecological hazard. The total steel production in India is about 25 million tones
and the waste generated annually is around 8 million tones (considerably higher than the
world average). Though the report has highlighted the associated ecological problems and
suggested management, the main purpose of the report is to highlight the business
opportunities available in utilization of the generated wastes into commercial products.
Technologies have been developed in most the developed nations of the world for utilization
of the generated wastes. and there are nations, which have total utilization of the wastes. In
India though utilization of wastes have begun it is still quite some time before there is total
utilization. The report has focused on the wastes generated – quality and quantity- by
integrated steel plants, secondary steel sector and electric arc furnaces in India. Technologies
developed for utilization of the generated wastes into useful products have been covered
along with the technology sources, in India and abroad, and estimated project costs. The
report has also presented a plan for zero waste programmers

One of the major concerns of world steel industry is the disposal of wastes generated at
various stages of processing. The global emphasis on stringent legislation for environmental
protection has changed the scenario of waste dumping into waste management. Because of
natural drive to be cost-effective, there is a growing trend of adopting such waste
management measures as would convert wastes into wealth, thereby treating wastes as by-
products. This has led to aiming at of zero-waste technologies. The technologies developed
to economically convert wastes of steel plants into wealth provide new business opportunities
for prospective entrepreneurs. Such technologies which have been identified in the report
through adequate deliberations are indicated below in two categories, namely technologies
for gainful utilization of wastes in manufacture of conventional products and those for
gainful conversion of wastes into altogether new products

Ecological problems and their management

The major solid wastes of steel plants that are dumped namely, BF sludge, spent refractories
and fly ash, pose ecological problem and parallel initiatives are required for eco-friendly
management of solid wastes. The following two ways have been identified and dealt with in
this chapter for management of ecological problems.

* Plantation for green cover

* Plantation of flowering and tree species.

There are conflicting reports of effects of soil amended by fly ash on vegetables. Pending
confirmation and reconfirmation of no harmful effects on vegetables, fly ash is prohibited in
production of vegetables or food grains. Therefore, fly ash may be used for plantation of
flowering plants and tree species’.

Practices and technologies of steel plant solid waste management have been classified into
three groups as follows.

• Minimization of wastes
• Recycling of wastes
• Reuse ( including sale to outside parties) of wastes

For minimization of wastes, minimization measures have been indicated. For recycling /
reuse, the technologies have been briefly described with the name of the developing agency
and the commercial status in this chapter. Cost data for implementation of the technologies
could not be made available, because, normally, foreign parties reply only to queries about
specific projects. It is suggested that research proposals may be made for the technology
packages involved for indigenous through technology absorption and commercialisation, end
then exemplary facilities based on cost-effective technologies may be set up for other
entrepreneurs to follow suit. Problems and prospects of managing key by-products which are
substantially dumped at present like steelmaking slag, BOF dust/sludge, fly ash and spent
refractories have been dealt with at length.

Plan for zero waste program

It is emphasized that all the industries, including the steel industry, are to be committed to
‘sustainable ’. Therefore, steel plants have no option but to plan immediately for a zero waste
program and implement the same. Aim of zero waste programed is make the total dumped
quantity and so the individual waste quantities dumped to zero or near zero, or in other
words, to produce 100% or almost 100% products. Wastes generated in all the model plants
have been analyzed and measures have been suggested to eliminate or minimize dumping.
The chapter solicits initiatives from Govt. of India for creation of community cement plant
to be built, owned and operated by a third party to take care of EAF slag’s and community 2-
stage Waelz kiln of adequate capacity to take care of zinc-rich EAF dust from a cluster of
SSPs (EAF). To achieve the goal of zero waste program on national basis as a part of
‘sustainable ’ initiative from Govt. of India is necessary to provide community ferruginous
waste processing plants based on technologies like REDSMELT, FASTMET, ROMELT,
Hamborn Shaft Furnace or process developed by RDCIS for utilization of ferruginous
wastes, to be built, owned and operated by third parties