MB0044-Production and Operation Management

Winter-2015

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Master of Business Administration - MBA Semester 2

MB0044-Production and Operation Management-4 Credits

(Book ID: B1627)

Assignment (60 Marks)

Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10 marks 6 X 10=60.

Q1. What is value engineering? List the main benefits of value engineering?

Ø  Definition and explanation of Value Engineering (VE)

Ø  Listing of the main benefits (any four)

Answer. The concept of value engineering originated during the Second World War was developed by the General Electric Corporations (GEC). Value Engineering has gained popularity due to its potential for gaining high Returns on Investment (ROI). This methodology is widely used in business re-engineering, government projects, automakers, transportation and distribution, industrial equipment, construction, assembling and machining processes, health care and environmental engineering, and many others. Value engineering process calls for a deep study of a product and the purpose for which it is used, such as, the raw materials used; the processes of transformation;

Q2. Case study: SABMiller revamps supply chain management

SABMiller, the $24bn global brewing giant, is revamping its supply chain management system to reduce stock-outs caused by an increasingly complex and hard to predict market. The firm is developing and testing the new system in South Africa with an eye on rolling it out to group companies worldwide, says SABMiller programme manager Rudi van Schoor.

"Our brands are the same as any other brand, especially those at the luxury end," says Van Schoor. "If the customer comes into the shop and can't find our product, he or she has the disposable income and self-confidence to substitute our brand for our competitors'. That's dangerous."

Van Scoor says the group has an average stock availability target of 98%. "But for some premium brands the target is 100%," he says. That means it will live with excess stocks of some products, just to ensure that a thirsty customer can get his or her favourite drink, every time.

 (Source:http://www.computerweekly.com/feature/Case-study-SABMiller-revamps-supply-chainmanagement)

Why did SABMiller revamp its supply chain? Describe the domain application used for SCM integration?

Ø  Analysis of the major and minor issues for revamping the supply chain with evidence

Ø  Description of the SAP system, why it was used and the benefits from using the system

Answer. Revamping:-

Q3. Write short notes on:

Ø  Ingredients of a business process

Ø  Acceptance sampling

Ø  Work Breakdown Structure

Ø  Productivity

Answer. a. Ingredients of a business process: - The ingredients that might be used in a business process can be briefly outlined as follows.

Q4. Collaborative Forecasting Running Smoothly at Brooks Sports designs and develops high-performance running footwear, apparel and accessories which are sold in 80 countries worldwide. In 2001, when the company shifted from a broad product line to focus on high-performance products targeted at serious runners, it was clear that the forecasting process needed to change to support the strategic direction of the company. The existing forecasting process, based entirely on the judgment of the sales team, was limiting the company’s ability to grow.

The strategy shift created a number of forecasting challenges for Brooks including:

♦ Inconsistent style growth: the new line of products experience growth rates anywhere from 0 to 50 percent annually.

♦ Long production planning horizon coupled with short product life: production and capacity decisions are typically made 18 months before a style is launched, average lead time for a style is 6 months and the product life of Brooks’ styles range from 6 to 24 months. This means that planners must sometimes set the entire demand plan for a style prior to ever receiving a customer order, underscoring the importance of accurate forecasts.

♦ Increasing “at-once” orders: “at once” orders, which are placed for immediate shipment, historically accounted for less than 20 percent of total sales. Since 2001, however, “at once” orders have increased to nearly 50 percent of total sales.

♦ Evolving size curves: with its new focus on serious runners, the standard footwear size curve would not adequately reflect distribution of sales by sizes.

♦ No exposure to retail sell-through: the high-performance products are sold primarily through independent specialty stores who don’t have the capability to share sales data with vendors.

What is the main issue of the case study? Analyse the forecasting solution.

Ø  Description of the main issue(forecasting process needed to change), forecasting challenges

Ø  Evaluation of the collaborative forecasting process

Ø  Conclusion on whether the solution could be improved or not

Answer. Issues:-

Q5. Explain the risk management and its various components.

Ø  Definition of risk management and what it entails

Ø  Description of the four components of risk management

a.     Risk assessment

b.     Risk control

c.      Risk prioritising

d.     Risk mitigation

Answer. Risk Management

Risks are those events or conditions that may occur and whose occurrence has a harmful or negative impact on a project. Risk management aims to identify the risks and then take actions to minimise

Q6. Why redesign of layouts may be necessary? List the differences between product and process layout.

Ø  Listing of reasons why redesigning of existing layout is required

Ø  Listing of any five differences

Answer. Most Common reasons for redesigns:-

1. Inefficient Operations.

2. Accident or safety hazards.

Winter-2015

Get solved assignments at nominal price of Rs.125 each.

Mail us at: subjects4u@gmail.com or contact at

09882243490