1-a)
The main points of distinction are
1.Goods are tangible in nature; they have physical
parameters. in nature i.e. they can be seen and touched. 1.Services are non-tangible in nature i.e. they can neither be seen nor be touched. They are
just ideas, concepts or information
2.Goods can be created, put away and used when required. according to the demand since
the value is stored in the product according to request subsequent to the worth is put away in the item
2.Services can't be delivered in advance, put away or transported. Quality is passed on as utilized.
3.Goods are produced in a manufacturing plant
environment, generally far from the customer 3.Services are created in a business sector
environment as a team with the customer.
However, goods alone are not adequate to satisfy our needs. We need the services of different people for different jobs. For instance we require, a specialist to cure us, a tailor to line our garments. Both goods and services fulfill human needs.
1-b)
The basic elements of strategic plans are as follows:
1. Market environment: The main component is the current business sector and the demand of the product or services that we need to deliver or produce. We need to analyze and break down the market environment and pattern of demand
2. Expertise and resources: The accessible monetary support, product design, labor, plant and machinery and ability for outline and manufacturing facility must be evaluated. The assets can be procured alternately bought by the management.
3. Strategic policy: The arranging of operational methodology and execution is
the innate job to be finished by the management
4. Design and development: The operations administration likewise incorporates the product design, setting up of the plant for creation, change of design and promoting. The organization's development relies on hard work, right choice making, up dated date framework and advancement. The core interest on cutting edge and advanced worldwide patterns would likewise add to the general development of the endeavor by enhancing the product and service gauges.
1-c)
Importance of Forecasting
Sales forecasting is the expectation of future execution in light of accessible data about past execution. Devoting resources to in-depth sales forecasting permits you to get ready for the forthcoming needs of your business and improves the probability of accomplishment paying little mind to external circumstances.
Cash Flow-Having a detailed business forecast gives you a premise for settling on financially capable choices about your cash flow.By considering your past execution, you're better prepared to make informed decisions about what's to come. For instance, in the event that you have justifiable reason to believe demand will far exceed your production capacity based on your forecasting research, you can plan to make money accessible for generation extension, instead of attempting to play make up for lost time while different organizations gobble up your potential client base.
Cost of Sales-Cost of sales alludes to the amount you are spending on items or segments for every deal you make. By foreseeing sales patterns, you can all the more precisely plan for what products or components you require. one would never want to miss an open door by coming up short on materials amid an occupied season and needing to scramble or pay additional to order what you need. also would prefer not to overload and have products turn bad or need to recover your costs over a long, drawn-out period. Sales forecasting permits you to make informed decisions about what you need, how much you need.
Staffing-Sales forecasting assists you with dealing with your staffing needs, keep scheduling in order and maintain a transparent dialog with your representatives. By making forecasts about the amount of business one will be doing at any given time, and would be better ready to foresee the amount of assist you require. This permits one to be more sorted out and minimize time spent on planning.
Strategic Advertising- Powerful, targeted advertising is crucial to a little business. Detailed sales forecasting ought to assist one with adding to the strategy and character of advertising. A sales forecast will show you how much revenue you can expect and what sort of cash is accessible for ones advertising budget. It helps one to track and predict the behavior of consumers, which is the premise for effective advertising.
2-a
The nine Characteristics of a Good Design are-
1. Functionality
2. Reliability
3. Productivity
4. Quality
5. Standardization
6. Maintainability
7. Cost-effectiveness
8. Standardization and simplification
9. Research and development
2-b
Design in a production system intends to accomplish the right blend of changing extents of three components: Information Transformation and Output While planning a product, different variables must be viewed as, for example, product execution in economic situations, possible assembling of a product and the highlights that would fulfill consumer needs.An organization's production system may be extremely proficient and successful yet there may not be sufficient interest in the commercial center for its products. In this way, it is essential for products to be well designed. The qualities of a decent item plan are as per the following:
(i) Functionality
Products are designed with a perspective to addressing customer's needs. Thus, if the product does not meet such issues, the reason for presenting another or altering an
existing product is not accomplished.
(ii) Reliability
Reliability of the product can likewise be called dependability in light of the execution of the product for a particular time frame, without bringing any changes in the product's nature. While designing a product, the life of the product is a matter of first importance thought.
(iii) Productivity
Another imperative part of the configuration of an item is profitability, which can be characterized as the 'likelihood of delivering the item under thought in the
required amount, at an attainable expense'. An item that is exceptionally very much composed in wording of its appearance and usefulness yet totally does not have the component of profitability can't be presented in the business sector regardless of the possibility that it is at the assessed cost.
(iv) Quality
A good design guarantees the required nature of the product. Planning of the product remembering the attributes of a decent design guarantees the quality of the product. The procedure ought to be equipped with producing the desired quantity with reliable quality.
(v) Standardization
It is important to consider the options of standardization in terms of the parts in use and the common manufacturing facilities for optimum utilization.Today, manufacturers need to provide customers with a wide variety of products with different options to survive in the market Standardization increases the possibility of achieving the advantages of economies of scale. Thus a necessity which leads to producing various types of products and adding to the cost of production, maintaining inventories and providing the manufacturing facility for the production
of different types of products.
.
(vi) Maintainability
The product should be designed in such a manner that its maintenance i.e the repair or replacement of defective parts should be simple and economical. Maintenance could either be preventive i.e checking the deterioration of the product or it could be corrective, meaning thereby to correct the defects that may occur in the product.
(vii) Cost-effectiveness
At the designing stage, the choice of input materials influence the cost of production. The cost of a product involves the fixed cost as well as the variable cost. A product with a higher fixed cost can be made profitable by increasing the volume of production and sales. Since the fixed cost is divided over the number of units, higher volumes of production result in lower per unit cost, which is not possible in case a product is not profitable because of a higher variable cost.
(viii) Standardization and simplification
Standardization is the process of establishing standards or units of measure by
which the product's quality, quantity, value, performance, etc., may be compared
and measured. With the help of market research, forecast, sales statistics, etc., about
future sales one can Identify a range of products from a variety of products and select the minimum variety of components which match the manufacturing range. Also one can introduce new materials components, etc., if required. An approach to standardization requires the classification of materials and component parts. The aim of classification is to systematically group together items, based on their common features and sub-dividing them further by their special features. A system of classification and codification is important for the design of new
products within the defined range. Thus, Less specifications, drawings and part lists have to be prepared and issued. 'the quality of product is improved, Unit cost decreases, profit margin increases. Quantity discounts are presented to the customers as raw materials are
purchased in large volume.
(ix) Research and development
Research and development or R&D simply refers to a specific group of activities
within a business. The R&D activities differ from company to company, but
there are two primary models. In the first model, the main function of an R&D
group is to develop or create new products; and in the second model, the primary
function of an R&D group is to discover and create new knowledge about topics
like science and technology for the purpose of showing and enabling development
of valuable new products, processes, and services.
3-a
Production Control
Following are the two types of production control:
1 Input control
2 Output control
planned work info to a work focus ought to never surpass the planned work output. At the point when the info surpasses the yield, backlogs develop at the work centre,
blockage happens, handling gets to be wasteful, and the stream of work to
downstream work focuses gets to be sporadic''
(i) Shop-floor control
The major functions of shop floor control are:
''Assigning priority of each shop request
'' Keeping up work-in-procedure data
'' Keeping up shop-request status data
'' Giving genuine output information to limit control purposes
'' Giving data for inventory and accounting purposes
''Measuring efficiency, usage and profitability of labor and machines.
(ii) Assembly line balancing
The target of assembly line balancing is to sub-isolate the system into a few sub-systems (stations) without damaging the priority connections and distributing operations to every station without surpassing the process duration ensuring
production of the specified volume of products. At an interval equivalent to the cycle time, a completed assembly is discharged from the sequential construction system.
3-b
Subcontract Purchasing
It is the procedure of utilizing another firm to perform some of the manufacturing
operations or to provide certain parts and sub-gatherings that are required to
be consolidated into the buyer's end product. These are of three sorts:
when an organization gets a major request, it may be possible that is produces some amount At the point when an organization gets a major request, it may be possible that is produces some quantity
of the final product and purchases the staying from different purchasers in light of the fact that it may not be workable for it to finish the request inside of the characterized time of agreement.
At times, the company produces certain items of the assembly and buys other items
from other buyers.
In some cases, when a organization does not have the required manufacturing facilities, it completes certain operations by different firms.
3-c
Supply Alliances
Value chain activities are encouraged by support activities. Porter identified four
industry- specific categories of support activities:
Procurement: It is the function of procuring the crude materials and other inputs required for the value creating activities.
Technology Development: It incorporates innovative work, process automation, and other technology development required to support the value-chain activities.
Human Resource Management: It incorporates activities associated with enrollment, development, and pay of workers.
Firm Infrastructure: Activities such as account, legal, quality management, etc., are a part of it.
10.3.4 Limitations of CPM and PERT
CPM and PERT have been criticized in the past for the following reasons:
In specific sorts of undertakings, it is not possible to sequence all the activities according to precedence requirements. for instance, in the development of a street, the different exercises are performed in a foreordained arrangement. Each portion of the road requires some or all
of these activities. The critical path focuses only on control of the length of time of the venture. There may also be certain non-critical paths, which can become critical when some of the activities get delayed. It is hard to recognize the different exercises in complex undertakings, i.e., to define clearly, the start and end points of activities, is sometimes not very easy.
11.3 Layout Planning
We can define layout as, 'The physical location of the various departments/
units of a facility within the premises of the facility.'
The departments must be located based on some consideration. The
common considerations are:
1. Logical sequence of processing operation
2. Direction of material flow and material handling
3. Aesthetic considerations
4. Government regulations
5. Special requirements
The entrance and exit gates are usually critical in the layout planning of facilities. The general principles of plant layout are as follows:
A decent format must satisfy the requirement for space accessibility, size of work area, machinery and other utility requirements, flow direction, stream heading, sort and number of developments of the material, workforce in the plant, and expected future changes. Integrating all these aspects is the main principle of layout. There should be least movement of material. The work area must have enough conformity with the flow of materials from raw stage to finished goods within the
plant. Sufficient security and happy with working conditions ought to be accommodated the representatives at the format. A good layout should consider all three space dimensions available, also the vertical space along with floor space should also be considered while designing the work areas. The design ought to have the capacity to suit developments and plausible future changes. It is not easy to lay down the maintenance practices for an organization.
Some of the problems that are faced by organizations while laying down a
maintenance policy are as follows:
1. Machine failure is often unpredictable and random.
2. Maintenance process varies from machine to machine and cannot be
generalized.
3. Very often, maintenance requires replacement of parts of the machine. If
the machine has been imported, either the parts need to be imported or
they have to be produced indigenously. Both are difficult.
Work Measurement is a technique to find out the time required to do any activity
at a predetermined level of performance by a qualified worker. In other words, it
is a technique to develop time standards for the performing jobs.
To establish usable standards, the operation must first be trained to do a
particular job. These methods analysis and study should provide work
measurement.
13.4.2 Techniques of Work Measurement
There are several techniques for measuring work. The most common are:
'Time study
''Work sampling
''Standard data
''Predetermined Motion Time Studies (PMTS)
(i) Time study
This method of work measurement is generally used when the work is repetitive.
It is a sampling process in which a couple of perceptions are taken. The
Inferences drawn from the study of the sample are utilized to focus the time
required for the execution of the ensuing cycles by the laborer.
First, the job or task selected for time studies is split or broken down into
activities. Every action ought to be of brief length of time, however in the meantime sufficiently long for it to be timed with a stopwatch. The activities of the operator and activities of the machinery should be distinguished. Both should be timed separately.
Several readings need to be taken for every movement. The average of these
readings will give the average time for an activity. The average time for each
activity of a job is added to get the average time for a job.
The time in this manner got must be "standardized" to make it usable for all the
laborers. So a rating factor is used to give the normal time.
. To take an example,
if an operator completes a task in two minutes and it is estimated that he is
performing 20 per cent faster than normal, then the performance rating of the
operator is said to be 1.2 times or 120 per cent of the normal.
The Normal Time for the task will be 2 minutes '' 1.2 = 2.4 minutes.
So Normal Time (NT) = observed performance time per unit '' Performance
rating.
When an operator is observed for a period of time during which he
produces a number of units, then the Normal Time is given as:
NT =
Time worked ''Performance rating
No. of units produced '(13.1)
Standard time is calculated by adding allowances for personal needs
(such as breaks for freshening up or for drinking tea), inevitable work delays
(such as lack of material or breakdown of machinery), and worker fatigue (physical
or mental), to the normal time.Standard time (ST) = Normal Time (NT) + (Allowances x Normal Time) … (13.2)
Note: Allowances may be given in minutes or as a percentage of the normal time
ST = NT (1+ Allowances) … (13.3)
(ii) Work sampling
This is another procedure for measuring an action. This strategy is like
Time Study where we watch a bit or test of the work action. Derivations are drawn taking into account the discoveries in this specimen and connected for the action in general. In work inspecting, the specimen's extent is a noteworthy issue. The level of statistical confidence desired in the results is considered before deciding the sample size.The record of perceptions required in a work examining study can be genuinely substantial, depending on
the activity and level of accuracy required.
The three essential applications for work examining are:
-To focus the normal time that the machine and work are labour are idle or
running. This is also called 'activity time' for work force and machinery.
-To add to an execution record for workers. These execution measures help in execution assessment of the workers, settling of pay,
bonus, penalities, and so forth.
-To fix time guidelines, that is, the standard time required for a task.
Taking after is the arrangement of exercises in performing a work testing study: –
-Identify the movement for which the study is to be finished.
-Estimate the rate of time the selected activity takes, to the aggregate time (e.g. the machine is working 80 for every penny of the time). These appraisals are made by the investigator from existing information, guesswork or a pilot work
sampling study.
(iii) Standard data
For occupations in which there are countless operations with comparable qualities, companies often develop standard data through time studies or predetermined data. The upside of having standard information is that every employment need not experience a period study.
Standard data is used in the following manner
:
Example: In a warehouse the standard time required to unload 10 kg boxes
from a truck is 2 minutes per box. Due to increasing allowances for fatigue,
suppose this goes up by 0.10 minutes for each additional 2 kgs. The standard
time for a box of weight 'b' is 2 + 0.10/2 (b ' 10) minutes.
Therefore, if 50 boxes, each weighing 18 kgs are to be unloaded, the
standard time required is 50 {2 + .05 (18 ' 10)} = 50 '' 2.4 = 120 minutes, or 2
hours. Having an adequate data base of standard data makes such calculations
easy to compute.
(iv) Predetermined Motion Time Studies (PMTS)
An alternative to time study is the utilization of standard times for work components that have been predetermined from long periods of observation and analysis. The real favorable position of this strategy is that just movement designs must be known; options may be assessed before really giving them a shot. In order for such a system to be universally applied, it is important to characterize an essential arrangement of movements into which any undertaking can be split into.
(7) New seven management tools
There are a number of other tools that can be used for quality planning, and the
one that is gaining popularity is 'The New Seven Management and Planning
Tools'. The 'New Seven Tools' are:
(a) Affinity diagram:
It is a system of social occasion and sorting out vast number of data or ideas, opinion and facts relating to a problem or project, and to recognize normal examples or groupings in the data.
(b) Interrelationship digraphs:
This is a system where a focal issue is picked and after that sensible or successive connections are created among related classification of issues, keeping in mind the end goal to get an unmistakable thought regarding what prompts the focal issue.
(c) Tree diagram:
This is an analytical planning tool That is utilized as a part of breaking
down issues and thoughts until noteworthy things and focuses are recognized. In
this connection, readers are referred to 'Fault Tree Analysis', which is a variant
of tree diagram for decision-making'also known as 'Decision Tree'.
(d) Matrix diagram:
It is a technique for graphically showing relationship between characteristics, functions and tasks to establish a logical
connecting point between the factors being considered.The point of this
system is to help distinguishing the features of a product or service that
would fulfill the function and task at the field of applications, and utilize that data for quality planning and improvement
(e) Matrix data analysis: It is a measurements based 'factor analysis' technique.The procedure takes information from matrix diagrams and then attempts to arrange it quantitatively to show the level of relationship among the variables. For every day work, this system is excessively quantitative hence,
prioritization matrix is favored by some to simplify the issue and to apply in every day work
(f) Process Decision Programme Chart (PDPC):
The PDPC is a management and planning tool that is utilized to make a point by point detailed implementation plan by including every single conceivable issue and unfavorable occasions that may happen amid the usage
(7) Arrow diagram:
This includes planning and constructing the essential ventures all the way of a project or problem solution, where the strides are associated by bolts to demonstrate the stream of occasions or exercises. This method has been broadly utilized as a part of the type of CPM or PERT.