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Operation Management

Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0015 —Maintenance Management- 4 Credits
(Book ID: B1340)
Assignment – Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. Briefly explain the maintenance systems that are practiced in production/service units by providing few examples.

Maintenance Management Systems
Maintenance activity is defined and managed as a process in order to achieve maximum pay off. Hence there is a need to identify a maintenance management system that helps the organisation to work within an integral ‘Life cycle management model’ covering all the machineries and equipments.
Optimum performance of the maintenance management system and process will happen when the organisation encourages a close working between the production and maintenance department. It also makes these departments jointly responsible for achieving success in their business plans.
There are many critical areas and factors contributing for realising the best performance and some of them are listed below:
– The valuable assets of the company must be maintained with a focus on the importance of their functions, as these leads to the desired performance target.
– The effective maintenance is to preserve the asset for its high rate of performance and not just preserving for the function alone.
– Process need to be established in order to efficiently manage maintenance activity and then to evaluate the performance against targets. For this, the maintenance department has to evolve a suitable maintenance system and processes that ensures continuous improvements in the performance. This process evolved will act as a model and is useful throughout the asset life cycle of the machinery or equipment. This type of model is explained as “Life cycle management system’, under section 2.3.

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– Maintenance crew and the supervisory personnel in the maintenance department need to know their roles, responsibilities, and goals to be achieved, using system as means to achieve them. This concept of combining asset life with the management processes is also termed as ‘Asset Management’.
– A systematic program evolved by the maintenance management will increase the efficiency of the personnel working, resulting in the increased life of the machineries and hence the profitability. There must be a synergy in total operations. The following factors contributes to the synergy:
– There must be fixed goals for the use and care of the productive assets.
– Both maintenance and production should work together and develop systems and procedures for effective performance
– As profitability is the criteria, both performance and durability targets should become the drivers
– All resources must be utilised optimally to achieve success in the process.
– Resource management or asset management requires sound decision making by the respective authority for working effectively in the system. There must be opportunities in the system to constantly improve upon and obtain the best business value for the organisation
After learning about the maintenance management system and realising the critical areas and factors for obtaining best performance, let us now get a brief description on the asset life cycle management.

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Q2. What are the three stages in the lifecycle management of any machinery? Explain in brief the Life cycle management system?

Q3. Explain briefly the metrics that can be developed by the maintenance department to identify the gap and take action to achieving the desired level of performance

Q4. Distinguish between preventive and breakdown maintenance citing examples.
Q5. “Organisations normally adopt a combination of one or more of the above methods. And these options are justified if the resultant savings are more than the total costs associated with any one of these methods” —Substantiate this statement.
Cost implications of maintenance practices

Q6. A valuable tool for improving maintenance effectiveness is to use fault tree analysis. What does this tree means and how it is used as a valuable tool for electrical, hydraulic and other complex systems in isolating physical components using circuits and attends to the problem?

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Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0015 —Maintenance Management- 4 Credits
(Book ID: B1340)
Assignment – Set- 2 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. What are the maintenance planning principles? How they contribute to the success of planning?

Planning Principles
There are six principles of planning and these are:
1. Organising planning functions with separate responsibility and identity.
2. Making planners to concentrate on future works as one of their primary tasks.
3. Asking planners to maintain simple base files as part of their work systems.
4. Training planners to expertise their job and dictate the job requirements through their dedicated work plans.
5. Helping planners to recognise the skill of the crafts required and arrange.
6. Organising planners to work sample their tasks while execution and hence measure the planning effectiveness.
Let us look into each of these in detail:
1. Organising planning functions with separate responsibility and identity
In this principle, the planning function is organised as a separate function. Personnel who are most experienced and having expertise as craft maintenance crew are selected and assigned to the planning section. This type of selecting within the department and assigning a separate function will further facilitate specialisation not only in planning processes, but also focuses on the future works to be executed.
It is better that these identified Planners report to a different supervisor who will be responsible to providing direction and has an obligation to complete the assigned work in an expeditious manner, with a minimal interruptions.

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The planners should engage in preparatory works. Planning activities must flow smoothly across the maintenance department. Planners need to work closely with the maintenance crew for proper execution of work with consistency. The crew members will focus exclusively on executing assigned work, and gain advantageous position as all the preparatory works involved is accomplished by concerned planner.
Planning contributes to scheduling also. This scheduling is done in such a manner that the maintenance department will utilise all their resources optimally. The lack of planning effort may decrease the number of work assignments to crew members.
2. Making planners to concentrate on future works as one of their primary tasks
Principle of planning is forward thinking with a foresight. By preparing jobs in advance, the planning facilitates improvement in labor productivity and allows the maintenance crew to start their assigned job without waiting for any resources or with blockages.
After assigned job is completed, the lead technicians or the supervisor gives feedback to the Planning section. The feedback consists of any problems the crew faced while executing the work, any changes they did in the original plan during the execution, and any other information for the planner to use in preparing future plans and schedules. The planners ensure that they will use this feedback in their future planning to improve the overall effectiveness. This valid feedback information as a record is filed separately for their future reference and use.

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3. Asking planners to maintain simple base files as part of their work systems
Planning maintains a simple and secured file system, with the file code numbers indicated on it. A separate file is created for each equipment or machinery that is available in production shops and those within the purview of the planning section. Each file will have proper indications of the specific tag number of such machines. This type of file system enables planners to utilise the equipment data and the experience of the previous work. It also helps planners to prepare and improve the future work plans. The cost incurred for each of the previous tasks is also recorded in these equipment files.
In case any decision was taken to replace the equipment or its costly parts, the same is also recorded. As the majority of the maintenance tasks are repetitive in nature over a period of time, this type of maintaining exclusive files with information of work plans, cost and so on, will help assists planners or plant engineers to take suitable decisions on the repair or replacement. All concerned are duly trained on how to use the information from these file for decision making.

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4. Training planners to expertise their job and dictate job requirements through their dedicated work plans
Planners use their personal experience and the information available in the file system, as explained above, to develop work plans. Primary responsibility of planners is to avoid anticipated work delays through their plans that include the requirements of quality and safety. To prepare such job plans, which improves the overall productivity, planners will rely greatly on their personal skills and experience, apart from using the existing data or information in the equipment files. In case of any unusual maintenance tasks must be carried out and earlier such issues have not propped up, the planners will then consult and take necessary help from Plant Engineering or Production departments.
5. Helping planners to recognise skills of the crafts required and arrange
The Planning section should recognise skills of the crafts required when firming up the scope of the maintenance work. Planners obtain clarifications from the indenting section as to what skills they propose to have in the person for such maintenance jobs. They also ask the intending sections for suggestions, which will help in having a better coordination. The planners then evolve the general strategy for the work to be done such as repair or replace, preventive or breakdown policy. In case procedures for carrying out a job are not specified in the system file, the planners must also evolve a strategy to lay out the procedures for carrying out that job.

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This principle dictates that planners calls for a minimum craft skill in the job plan and hence, it depends on the available workforce being sufficiently skilled to execute the job. Accordingly, the craft technicians will use their expertise to make the specified repair or replacement.
Here again the planners and technicians work together over repeated jobs to develop better procedures and checklists. Supervisors must train technicians, wherever applicable and give proper support and guidance. Technicians must execute the job as planned without much deviation. Any deviations from the job plan is required, there must be an approval from the planner before proceeding.
Planners give information required for supervisor to schedule the job and control required while executing. Skilled technicians give the feedback on the executed job plans, thus contributing additional information for future plans.
6. Organising planners to work sample their tasks while execution and hence measure the planning effectiveness

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Q2. Explain briefly the ABC classification and reasons behind recommending ABC and VED classifications for managing inventory of spare parts for maintenance?
Classification of Inventories

Q3. Explain briefly how the principles of scheduling, when followed, will improve the effectiveness and efficiency of the maintenance management?

.

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Q4. Explain briefly the five levels of data developed in UMS

Q5. Explain briefly the importance of ‘Depreciation’ and its disposition while calculating the capital expenditure of the equipment to be replaced. What are the depreciation methods that are normally used in an organisation?

Q6. What are the ranges that we can normally expect for each of the OCE factors? Explain how an improvement in 10 % of wrench time will offer 25% improvement in utilisation of the crew and hence the OCE

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Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0016 —Quality Management – 4 Credits
(Book ID: B1341)
Assignment – Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. Elucidate a relationship between strategy and data quality.

Correlation Between Strategy and Data Quality
Organisations are turning to be more dependent on data; nearly every modern organisation depends upon data and creates huge quantities of data. So, to meet the requirements of the organisation, a comprehensive data management program is necessary. But data is distinctive from other resources and requires diverse management techniques.
Organisational framework required to tackle the above concerns often does not exist. Hence, it is necessary to develop a comprehensive data quality strategy that can address many of these issues. For example, as with many organisations, formal data quality strategy was not documented for the New Zealand Ministry of Health. A planned data quality framework was later introduced which informed the overall development of a data quality strategy for the Ministry of Health. All results of the development of the strategy were documented for each collection of data. And it enabled internal members to access all the information about data collection. The documents are:
– Guidelines for the usage of data and original purpose for the collection
– Roles and responsibilities
– Results of assessment of collection using data quality framework
– Action plan for quality improvement
– Current and previous data quality initiatives
The data was available both on paper and Web.

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As defined by Joseph Juran[3], “Data are of high quality, if they are fit for their intended uses in operations, decision-making and planning. Data are fit for use if they are free of defects and possess desired features”. Hence, a data quality strategy in an organisation is a must to define the level of quality required to make the data useful. The data quality strategy also needs to look forward to the future potential uses of the data.

Q2. Briefly describe Deming’s 14 points philosophy. Elucidate Juran’s trilogy in brief.

Q3. Describe the evolution of Six Sigma in General Electric. Explain the advantages and disadvantages of Six Sigma in brief.
The Evolution of Six Sigma
Q4. What were the improvements made to QMS? Why do think management responsibility is an essential requirement of QMS?
Improvements made to Quality Management Systems
Q5. Explain the goals and programs of strategic plan. What are the reasons of failure of the strategic plans?

Q6. What are the characteristics of Ideal indicator? What are the two Six Sigma models undertaken for Quality improvement?

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Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0016 —Quality Management – 4 Credits
(Book ID: B1341)
Assignment – Set- 2 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. What are the different types of Reliability estimates? What are the important components of retest reliability?

Reliability Estimations
A major part of any quality program is the assurance that the products are in accordance with the performance objectives. Reliability can be estimated through a number of methods that are grouped into two types: single-administration and multiple-administration.
Multiple-administration methods require two assessments. In the test-retest method, reliability is estimated as the correlation of the Pearson product-moment coefficient between two administrations of the same measure. In the alternate forms method, reliability is estimated by the correlation of the Pearson product-moment coefficient between two different forms of a measure administrated together. The idea behind test/retest is that one should get the same score on test 1 as well as in the test 2.
The three main components to this method are as follows:
1. Apply the measurement instrument at two separate times for each subject.
2. Calculate the correlation between the two separate measurements.
3. Assume there is no change in the underlying condition between test 1 and 2.

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Single-administration methods include the split-half and internal consistency reliability methods. The split-half method considers the two halves of a measure as alternate forms. This “halves reliability” estimate is then moved to the full test length using the Spearman-Brown prediction formula. Internal consistency estimate groups questions in a questionnaire to estimate reliability. For example, one could write two sets of four questions that measure the same concept (example, class performance) and after collecting the responses, run a correlation between those two groups of four questions to decide if the instrument is consistently measuring the concept. The most common internal consistency estimate is Cronbach’s alpha, which is usually interpreted as the mean of all possible split-half coefficients.
Clarity of expression (for written assessments), increasing the measure and informal means help to improve reliability. However, item analysis, a formal psychometric is considered the most effective way to increase reliability. This analysis is a combination of computation of item difficulties and item discrimination indices. The latter index involving calculation of correlations between the items and sum of the item scores of the complete test. If too difficult, too easy, and/or near-zero or negative discrimination items are replaced with better items, the reliability of the measure will increase.[3]

(where λ is the failure rate)
Measures of Reliability

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Most common form of reliability is the retest reliability, which refers to the reproducibility of values of a variable when the measurement is done more than once on the same product. Here, we take the example of 10 people weighed twice with a gap of two weeks between tests. This example is used to explain the three important components of retest reliability: change in the mean — typical error, retest correlation — kappa coefficient and alpha reliability.
1. Change in the Mean
The difference between the two tests conducted is the change in the mean. The change

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consists of two components: a random change and a systematic change.
Random change in the mean is due to the sampling error. This kind of change arises from the typical error, which is like a randomly selected number added to or subtracted from the true value every time the measurement is conducted.
Systematic change in the mean is a systematic change in the value between two measures. This variation in the mean value is an important issue when subjects perform a series of trials as part of a tracking the program. The subjects are usually tracked to determine the effects of an intervention (example, a change in diet or training), so it is important to perform trials to make learning effects or other systematic changes insignificant before applying the intervention.
Typical Error of Measurement
In the above example, the first few weights show a slight trend downwards —it shows that the subjects lose a bit of weight, so there is a random variation of about a kilogram. This random variation is the typical error. It is quantified as the standard deviation in each subject’s measurements between tests, after any shifts in the mean have been taken into account. The variation/error is also known as the within-subject standard deviation, or the standard error of measurement.
Coefficient of variation is an important form of typical error. This is the typical error is expressed as a percentage of the subject’s mean score. Another form of within-subject variation is reliability limits of agreement, which represent the 95% likely range for the difference between a subject’s scores in two tests[4].
2. Retest Correlation
When the test and retest values are determined, it is obvious that the closer the values are to the true value, the higher is the reliability. Therefore, a retest correlation is one way to quantify reliability. A correlation of 1.00 represents perfect agreement between tests, whereas 0.00 represents no agreement whatever. In our example the correlation is 0.95, which represents very high reliability.

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Kappa Coefficient: Reliability of Nominal Variables
Reliability can also be defined for supposed variables, to represent the constancy with which something is classified on several occasions. The best measure is something called the kappa coefficient. It is equivalent to a correlation coefficient and has the same range of values (-1 to +1).
3. Alpha Reliability
The alpha reliability of the variable is derived by assuming that each item represents a retest of a single item. For example, if there are five items, it is as though the five scores are the retest scores for one item. But reliability is calculated such that it represents the reliability of the mean of the items and not the reliability of any single item. Hence, the alpha reliability of 10 items would be higher than that of 5 similar items.[5]
Alpha reliability is regarded as a measure of internal consistency of the mean of the items at the time of supervision of the questionnaire. It refers to the ability to reproduce the results whenever it is required. This is essentially enhances faith in the statistical analysis and the results obtained.

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Q2. What are the different types of Quality Costs? What is the relevance of Cost and Schedule Information in an organisation?

Q3. What are the basic steps involved in audit reporting? Explain. What is the purpose of product auditing?

Q4. What is quality culture? Explain the five key drivers that are essential for developing quality culture.

Q5. For modern products, explain the concepts on what on which design reviews are based.

Q6. What are the five dimensions of the quality that were identified by the SERVQUAL model?

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Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0017 —Advanced Production Planning and Control – 4 Credits
(Book ID: B1342)
Assignment – Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. Explain briefly the main tasks of dispatching, inspecting, expediting, evaluating and controlling inventory and so on by production controls department.

Tasks and control activities of production control
The Control stage functions/tasks are:
– Dispatching.
– Expediting.
– Inspecting.
– Evaluating.
– Controlling inventories, controlling scrap and analysis of work progress and controlling transportation used for production activities.
Dispatching: Dispatching involves setting production activities in motion by releasing work orders. These work orders are invariably accompanied by process/instruction sheets. In other words, the process of dispatching authorises the start of the production operations.
Dispatching also involves collecting and moving the materials from stores, collecting and issuing tools, fixtures, drawings and specification sheets. It also includes route cards, inspection schedules, and internal material handling to machines. In addition, it includes the returning jigs, fixtures, moving special tools back to stores, and then moving the accepted materials to the next stage of operation or to stores.
It is found that in large production units, centralised dispatching has more advantages as compared to decentralised dispatching.

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Expediting or Progressing: Expediting is a tool, which works as an executive arm that checks the progress of the work. Expediting is also a logical step after the dispatching function. Expediting maintains and ensures the successful completion of the job. This function has to keep a close liaison with scheduling, in order to provide efficient feedback and prompt review of targets and schedules.
The Need for expediting arises because of the following reasons:
– Delay in supply of raw materials.
– Higher absenteeism of labour.
– Frequent changes in specifications and route cards.
– Changes required in delivery schedule.
– Breakdown of machines.
– Improper coordination and communications between the departments and so on.
Inspecting: Inspection is a major control function. Its findings and criticisms are of great significance in the execution of current plans and in the future planning stages especially when the limitation of processes, methods, and manpower is known. This is also essential to improve production methods and cost implications of quality at the design stage. The need for inspection arises due to the following reasons:
– Delay in supply of materials.
– Excessive absenteeism in any section.
– Changes in design specifications.
– Changes in delivery schedules.
– Machines under breakdown/periodical maintenance.
– Errors in design drawings and hence rejections/reworks.
Evaluating: Evaluating is the assessment of the performance effectiveness with the help of a link between control and future planning process. A feedback mechanism here will help in the long run, as the evaluated past experience will help to improve methods and utilisation of facilities.
Controlling Inventories and Scrap, Analysing Work Progress: Other additional responsibilities for the dependent functions like control of inventories, control of scrap, control of transportation and so on are integrated with the Control section of the PPC. This is because many organisations feel that this type of integrated control department is an essential link and will help achieve maximum results.

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Q2. Explain briefly the functions of planning in “Facility Planning” for production activities?

Q3. What are the merits and demerits of batch production? Briefly explain the salient features of PPC for Job production.

Q4. How do you classify forecasts? Explain Time Series Methods.

Classification of Forecasting Methods

Q5. Explain inventory Management and Control. List the benefits of inventory control.
Inventory Management and Control

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Q6. Define deterministic model of inventory control. Explain how economic order quantity can be calculated by model 1.

Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0017 —Advanced Production Planning and Control – 4 Credits
(Book ID: B1342)
Assignment – Set- 2 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. Write a note on: a) Lean Manufacturing,b) Agile Manufacturing, c) CIM

Lean Manufacturing
Lean manufacturing is an organised approach in identifying and eliminating waste through continuous development of manufacturing the product at the demand of the customer. In other words, lean manufacturing is a scheme that looks to produce a high level of output with a minimum of inventory.
From the time when Henry Ford invented the assembly line, industrial trendsetters have continuously focused on enhancement through a variety of different manufacturing techniques and this is where the lean manufacturing was successful.
In the earlier days, lean manufacturing centres focused on placing small stocks of inventory in planned locations around the assembly line, instead of a centralised warehouse. These small stocks are known as kanban[2]. The usage of the kanban considerably minimises waste and improves productivity on the factory floor.
In addition to removal of waste, lean manufacturing looks to provide the finest and optimum quality with the help of a method where every part is tested and examined soon after its manufacturing is done. In the process of testing, if there is any defect, the manufacturing line stops the production in order to detect the problem or defect at the earliest stage. There are a lot of similarities between lean manufacturing and the Total Quality Management techniques. Both of these techniques provide authorisation to the workers at the assembly line with the confidence that those close to the manufacturing have superior knowledge on how the manufacturing or the production system should work.
Under the lean manufacturing technique, suppliers deliver small amounts of materials on a daily basis. In addition, the machines may not respond to their full capacity. As you already know, the main objective of lean manufacturing is to eliminate waste, which means anything which does not add value to the end product is eliminated. With reference to this, large inventories are seen as a type of waste, which carry a huge cost. Another major focus under lean manufacturing is the process of allowing the workers to make the manufacturing decisions at the lowest level possible.

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One more aspect, which is important to know, is that the supply chain management’s partnership with suppliers matters a lot in lean manufacturing. This facilitates a swift flow of parts and products to the retail shop floor.
Let us discuss about the implementation of lean manufacturing technique. Well, in order to implement the lean manufacturing process, it is important that each employee or worker is provided with significant training or has a required competency. After this training, implementing the following steps will help in implementation of successful lean manufacturing.

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– Deciding which characteristics of lean manufacturing apply to your organisation and prioritising according to your requirements and capabilities.
– Classifying your workers into groups according to similar training requirements.
– Recognising your production programs and making a matrix, or a chart.
– Making a decision, whether you will hire an external consultant or take the suggestions of internal employees.
– Planning a time frame or listing according to work area or personnel.
– Setting up an immediate schedule and beginning the task according to the schedule.
Thus, it ends the discussion on lean manufacturing techniques.
Agile Manufacturing
In the previous section, we explained about lean manufacturing. Now, you will be introduced to the agile manufacturing techniques, but first let us understand the term Agility. Agility is defined as the capacity of changing quickly or adapting to change quickly. The production technology used by the manufacturing units decides the capability of designers, marketers and production personnel to share the common database of parts and products. This is a major and one of the vital contributing factors, which a manufacturer must posses in order to be an agile manufacturer.
Therefore, the agile manufacturing technique can be explained as the ability of surviving and flourishing in a competitive atmosphere of constant and unpredictable change by reacting swiftly and effectively to changing markets, driven by customer-designed products, demands, and services.
The organisations or the companies, which have implemented agile manufacturing techniques, always have a very strong bonding or network with the vendors, suppliers, and other related companies. In addition, the companies also have a strong network with many other supportive teams that work together with the same organisation with reference to the manufacturing of a quality product. The organisation can retool facilities swiftly, discuss upon new agreements with suppliers and other partners with reference to the changing market, and take other initiative steps to fulfil customer demands. This means that the organisation can increase manufacturing of products with a high consumer demand as well as redesign products to respond to issues that have emerged in the open market.
As you all know, markets can change very swiftly, especially in the global economy. An organisation, which cannot adapt swiftly to change, will find itself left behind, and once an organisation starts to lose its market share, it can succumb to a complete loss rapidly. The primary goal of agile manufacturing is to keep the company always ahead of the competition, so that consumers think of that company first, which continues innovating and introducing new products. The main reason behind this is the strong financial stability and a strong customer support base.

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In the case, where an organisation or a company plans to shift to agile manufacturing technique, the companies can always take advantage of specialists, who provide solutions to companies and who help in improving or converting the existing manufacturing techniques into agile manufacturing. These specialists can offer a tailored solution with reference to the type of sector that a company is involved in. The specialists make a company to be competitive as quickly as possible with their tested agile manufacturing techniques.
It will also be useful for you to know that there are some key issues in agile manufacturing. The key issues in agile manufacturing are:
– The “I am a Horse” Syndrome.
– The Existing Culture of Manufacturing.
The “I am a Horse” syndrome: You must be aware of an old saying where it states that hanging a sign on a cow which states “I am a horse” does not really make a cow, a horse. Similarly, there is an absolute danger that agile manufacturing can be a victim to the unlucky tendency in manufacturing circles to follow the trend and to re-label everything with a new fashionable name. The danger is divided into two fold. First, it will offer agile manufacturing a bad reputation and second, the management will only get a superficial understanding, which leaves them helpless to those competitors that take agile manufacturing seriously.

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The existing culture of manufacturing: The most vital thing which will hold an organisation or a company back from making a quantum leap forward to explore agile manufacturing, is the traditions and the accepted beliefs and values of the organisations. Without any doubt, the key success factor is the skill to dominate both the hard and soft issues in change management. Nevertheless, if an organisation wants to achieve agility in the manufacturing enterprises, then it should first try to completely understand the nature of its existing values, traditions, and cultures. An organisation needs to realise this understanding as there is a need to come to terms with the fact that much of what everyone in an organisation have taken for granted probably no longer applies in the world of agile manufacturing. Accomplishing this understanding is the first step in facing the pain with the existing culture to the historically redundant ideas.
Computer Integrated Manufacturing
In this section, we will discuss about Computer Integrated Manufacturing (CIM). Computer Integrated Manufacturing can be defined as the utilisation of computers in management and control of manufacturing processes, such as cutting and forming machines, automatically coordinating the operations of conveyor systems and riveting and welding machines. In other words, it can be defined as a manufacturing approach that uses computers to control the entire manufacturing process.
The CIM was promoted in the 1980’s by the machine tool manufacturers and the Society for Manufacturing Industries (SME). Some of the procedures involved in the CIM are:
– Computer Aided Design (CAD).
– Computer Aided Manufacturing (CAM).
– Computer Aided Process Planning (CAPP).
– Computer Numerical Control Machine Tools (CNC).
– Flexible Machining Systems (FMS).
It is very important to know that the heart of Computer Integrated Manufacturing is the Computer Aided Design (CAD) and Computer Aided Manufacturing (CAM).
Computer Aided Manufacturing (CAM) and Computer Aided Design (CAD) systems are very important to an organisation, as they reduce the production or the manufacturing durations. Computer Aided Manufacturing and Computer Aided Design is a high end integrating technology tool between manufacturing and design. Computer Aided Design techniques make use of group expertise to produce similar techniques for swift recovery, where the drawing boards are replaced by electronic files. Computer Aided Design and Computer Aided Manufacturing incorporated systems offer design, drafting, scheduling, and production capabilities. Computer Aided Manufacturing offers the provision for instrument path cutters to take on the raw material and Computer Aided Design offers electronic part images.

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The images or the computer graphics offered by the Computer Aided Design permits the designers to produce electronic images. These images can be depicted in two dimensions, or as a three dimensional (3D) solid component or assembly, which can be rotated as it is viewed. The superior software programs can test and analyse designs before the production of a prototype. Finite element analysis programs permits engineers to forecast the effects of loading and stress points on a part.
When the designing of a part is complete, the created graphics can be used to program the instrument path with the machine part. When incorporated with an NC postprocessor[3], the NC program that can be used in a Computer Numerical Control Machine Tools (CNC) machine is created. The designed graphics can also be used to produce or design fixtures and tools. In addition, it can also be used for inspection by coordinate measuring machines. It is observed that the more downstream use is made of Computer Aided Design, the more time is saved in the overall process.
Process planning translates design information into the process steps and instructions to efficiently and effectively manufacture product. As the design process is supported by many computer-aided tools, computer-aided process planning (CAPP) has evolved to simplify and improve process planning and achieve more effective use of manufacturing resources.
The other important system is the Flexible Machining Systems (FMS). It is the additional concept of cellular manufacturing and group technology concepts. Using incorporated Computer Aided Design and Computer Aided Manufacturing many parts can be programmed and designed in half the time it would normally take at the time of actual engineering task. The elements of a program can be downloaded to a Computer Numerical Control Machine centre under the control of a Flexible Machining System’s host computer. The Flexible Machining Systems host can program the Computer Numerical Control Machine Tools and the parts necessary to execute the task.
Therefore, it is understood that computer integrated manufacturing can include different combinations of the tools listed above.

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Q2. Differentiate between forward and backward scheduling. Explain automation and the drawbacks associated with automation
Q3. Explain in brief about Priority Rules for Scheduling?
Following four jobs are at a machine with its due dates of delivery mentioned. Today being 20th determine the critical ratio for each job and assign the priority ranking.
Job Due date Remaining processing time
P 26 8
Q 24 2
R 22 2
S 29 13
a) No of working days left =

Q4. Bring out the differences between productivity and flexibility. And is productivity compromised by introducing flexibility in the manufacturing process? Comment

Q5. Explain in brief the Goldratt’s “Theory of constraint” and the five focussed steps of TOC recommended for solving the constraints/ problems.

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Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0018 — Technology Management – 4 Credits
(Book ID: B1343)
Assignment – Set- 1 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. Define the term technology. Write a short note on evolution and growth of technology.

Technology
Technology is derived from the Greek word “technologia” in which “techne” means craft and “logia” means saying. On the whole, technology means having the knowledge of making something.
Evolution and Growth of Technology
The history of technology dates back to the time when humans were able to prepare some simple tools with easily available natural resources. History indicates that the advancement in technology had a major leap with the invention of the wheel. From the invention of the wheel, much usage of the technology has started. The technology in all the fields has grown to a larger extent and now we can see the technology involved in almost all the things we use in our daily life.
We know that there are some advanced technologies at present which include the printing press, telephone and Internet which have helped us to communicate all over the globe.
Till now we have mainly concentrated on technology management in general. Now let us learn about technology management in India.
Technology management in India
The Government of India is mainly focussing on the development of science and technology in the present world. The Indian industries are operating under the controlled and regulated economy. The technology management is generally lacking at the enterprise level except a few enterprises. There are many Indian companies which are able to develop and produce the internationally competitive products. The companies which use different kinds of technologies, and are excelling today, in India are the Punjab tractors, tata automobiles, amul food and certain drug and chemical industries. In the same way, there are many Research and Development (R&D) institutions which have developed and commercialised the technologies in the areas of drugs, chemicals, food technology, and computer software.
The productivity of the Indian industries largely depends on the technologies that are imported. Most of the technologies that are used in the Indian industries are cost effective.
In July 1991, government of India introduced the new industrial policy that mainly focussed on international competitiveness, quality, efficiency and exports. This helped in the change in operating environment of the Indian industry. Because of this, very well planned technologies were developed at the enterprise level.
These days, the companies are paying more attention on technology in order to be more competitive in the business market. It is not only the large scale industries that require the technology management; even the small scale industries also need a technology management to face the competitive world of today.

Q2. Citing an example, state and explain the reasons that compel a company to go for the new technology.

Q3. Describe some characteristics of technology forecasting. Explain in brief about the six phases in technology forecasting process.

Q4. Write a short note on technology strategy. Explain in brief about the innovation management.

Q5. What is the importance of technology diffusion? What are the benefits of technology absorption?

Q6. Explain the implementation of new technology. Briefly describe the automation decisions.

Summer 2011- May drive

Master of Business Administration – MBA Semester IV
OM0018 — Technology Management – 4 Credits
(Book ID: B1343)
Assignment – Set- 2 (60 Marks)
Note: Each Question carries 10 marks. Answer all the questions.
Q1. Explain Technology Generation. Explain Technology Development. Discuss the importance Technology Generation and Development.

Technology Generation
We will start our discussion with the meaning of ‘technology generation’.
Technology generation and development is often identical with the term “Research and Development (R&D)”. However, technology generation involves R&D efforts, while technology development involves further stages of translating R&D efforts into marketable products, processes and services. Basically, we can consider the R&D process as having four distinct stages as shown in figure 8.1.

Figure 8.1: Stages of R & D Process
As per the figure 8.1, the recognition of a need for innovation is one of the inspirations for R&D. A “Research” on existing knowledge for satisfying identified need helps in idea generation-this is the” need push” which is shown in the figure 8.1. The other primary motivation for R&D is to find potential applications for advances in knowledge. “Research” on existing activity for introducing new knowledge also helps in idea generation-this is the “technology push” as shown in the figure 8.1. The “development” includes creation, design and production and marketing of the generated idea. Through the entire process, its ideas and knowledge which are being followed, and the process is not complete, until the new idea is converted into a marketable product or service, which can be a hardware or software intensive technology.
Let us understand the objectives of Corporate R & D and R&D Projects.
Corporate research and development is the principal corporate asset for long-term technological competitiveness. We can classify corporate research activities by the purpose of the research:
– To support current businesses.
– To provide new business enterprise.
– To explore possible new technology basis.
The R&D projects tend to go through the following stages:
– Basic research and invention.
– Applied research and functional prototype.
– Engineering prototype and testing.
– Production prototype and pilot production.
– Product testing and modification.
– Initial production and sales.
The first three stages are usually called “research”, while stages four to six are called “development’; hence, the term “research and development (R&D)”. Each stage of innovating a new product is expensive, with the expense increasing by an order of magnitude at each stage. The management decisions to continue from research to development are therefore very important. Overall, the expenses of modern industry for R&D were considerable. The major purpose of research is to reduce technical risk before production-scale investment is committed. It is generally reported that at each stage, the cost rises by orders of magnitudes in the ratio 1:10. It is precisely this reason, that technology generation and development is costlier than basic R&D, and hence all countries or all enterprises are not able to pursue these activities at similar levels.
Technology Development
In-house R&D: Technology development activities are generally carried out through setting up of separate in-house R&D units within the business, managed and headed by a well-qualified and experienced chief, directly reporting to the top management. However, this unit has close interactions with other departments within the company and there could even be exchange of personnel among different departments. The strength and facilities in the in-house R&D unit would depend upon the technology policy of the company and the nature of the business. In large companies, there are sometime R&D labs for each department and a central R&D lab for major R&D projects. Industrial R&D is mostly product or process oriented with specific objectives and time schedule; and not basic research. Incremental developmental efforts or import substitution efforts are generally common in most of the industries in developing countries including India, while emphasis is on new technologies or new applications of technologies in advanced countries.
– Co-operative R&D: A group of companies in a particular industrial sector promotes an R&D centre as a society or a non-profit making company. The R&D is funded by the participating companies and the government. This R&D centre undertakes R&D as per the requirements of the companies in their larger interest, and sets up expertise and facilities of common nature and which are usually expensive. A company can also support specific projects to this centre. Cooperative research facilities are normally utilised for the projects which are not of cautious nature from the business point of view. Otherwise, most important part of the R&D can be done at the centre and the remaining part involving finer details or critical technological aspects affecting the competitiveness is done at the in-house R&D division of the company.
– Contract research: A company may contract components of technology development to suitable R&D organisations, academic institutions, or consultants or experts. The in-house R&D unit may coordinate the progress of the activities, to develop the desired technologies. This approach usually requires considerable internal technological and managerial capabilities coupled with a strong Science and Technology (S&T) information base.
– R&D collaboration: A company may collaborate with another company in areas of common interest, if costs of development are high. Such inter-firm collaborative R&D efforts are becoming common in developed countries mainly due to high costs and shorter technology life cycles. It is found in areas such as micro-electronics, materials, information technologies, bio-technologies, and so on. A firm may also collaborate with the public funded or privately funded R&D institutions on case-to-case basis, where R&D results are shared mutually, and so are the expenses. A company in India may even collaborate with another company or R&D institution abroad, on mutually agreed terms.

Q2. Explain the dimensions of technology transfer and features of technology package.

Q3. Briefly describe the concept of technology choice. List and explain the steps involved in technology assessment process.

Q4. Briefly explain the factors influencing the high performance innovative technology based organisations.

Q5. What is Research and Development (R&D), and how is it managed? Explain the different categories of Intellectual Property Management.

Q6. Discuss the technology assessment and environmental impact analysis.

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