ASSIGNMENTS

MBA – 2nd SEM

Subject Code – MB0044
Book ID – B1133
PRODUCTION & OPERATIONS MANAGEMENT
Set – 2
Q1. Explain Logical Process Modelling and Physical Process Modelling. What are
the
ingredients of business process?

Ans.
Logical Process Modelling
Logical Process Modeling is the representation of putting together all the
activities of
business process in details and making a representation of them.
The initial data collected need to be arrange in a logical manner so that, links are
made between
nodes for making for the workflow smooth. The steps to be followed to make the
work smoother
are given below:
1. Capture relevant data in detail to be acted upon.
2. Establish controls and limit access to the data during processes execution
3. Determine which task in the process is to be done and also the subsequent
task in that
process.
4. Make sure that all the relevant data is available for all the tasks.
5. Make the relevant and appropriate data available for that task.
6. Establish a mechanism to indicate acceptance of the results after every task or
process. This
is to have an assurance that flow is going ahead with accomplishments in the
desired path.
Some of these activities may occur in a sequential order whereas, some of them
run parallel.
There may even be circular paths, like re-work loops. Complexities arise when
the processes
activities are not connected together.
Logical processes model consists of only the business activities and shows the
connectivity
among them. The process model is a representation of the business activities
different from the
technology dependent ones. Thus, we have a model that is singularly structured
only for business
activities. Computer programmes are also present in the total system. This allows
the business
oriented executives to be in control of the inputs, processes and outputs. The
logical process model improves, control on the access to data. It also indentifies,
who is in possession of data at different
nodes in the dataflow network that has been structured.
A few of the logical modeling formats are given below.
1. Process Descriptions with task sequences and data addresses.
2. Flow chart with various activities and relationships
3. Flow diagrams
4. Function hierarchies
5. Function dependency diagram
Every business activity, when considered as a logical process model, can be
represented by a
diagram, it can be decomposed and meaningful names can be given to the
details. Verb and noun
form combinations can be used to describe at each level. Nouns give the name
of the activity
uniquely and are used for the entire model meaning the same activity.
PHYSICAL PROCESS MODELLING
Physical process modeling is concerned with the actual design of data base
meeting the
requirement of the business.
Physical modeling deals with the conversion of the logical model into a relation
model.
Object gets defined at the schema level. The objects here are tables created on
the basis of entities
and attributes. A database is defined for the business. All the information is put
together to make
the database software specific. This means that the objects during physical
modeling vary on the
database software being used. The outcomes are server model diagrams
showing tables and
relationships with a database.
BELOW ARE THE INGREDIENTS OF BUSINESS PROCESS.
The ingredients that might be used in a business process can be briefly outlined
as shown below.
 The data which accomplishes the desired business objective.
 Acquisition, storage, distribution, and control of data which undertakes the
process across
tasks.
 Persons, teams, and organizational units which helps to perform and achieve
the tasks.
 Decision which enhances the value of data during the process.
Q.2 Explain Project Management Knowledge Areas. With an example explain work
breakdown structure.

Ans. The knowledge areas of project management are the following:

 Project integration management, cost management, communications
management.
 Project scope management, quality management, risk management.
 Project time management, human management, procurement management.
 For a project to be successful, it is necessary to understand its relationship
with other
management disciplines. Other management supporting disciplines are business
legal issues,
strategic planning, logistics, human resource management, and domain
knowledge.

WORK BREAK DOWN STRUCTURE.

The entire process of a project may be considered to be made up on number of
sub process
placed in different stage called the work breakdown structure (WBS).
WBS is the technique to analysis the content of work and cost by breaking it
down into its
component parts. Projects key stages from the highest level of the WBS, which is
then used to show
the details at the lower levels of the project. Each key stage comprises many
tasks identified at the
start of planning and later this list will have to be validated.
PROJECT
MANAGEMENT
PROJECT
INTERGRATION
MANAGEMENT
PROJECT COST
MANAGEMENT
PROJECT
COMMUNICATION
PROJECT SCOPE
MANAGEMENT
PROJECT QUALITY
MANAGEMENT
PROJECT RISK
MANAGEMENT
PROJECT TIME
MANAGEMENT
PROJECT HR
MANAGEMENT
EXECUTING
PROCESSESWBS is produced by indentifying the key elements, breaking each
element down into
component parts and continuing to breakdown until manageable work packages
have indentified.
These can then be allocated to the appropriate person. The WBS does not
shown dependencies
other than a grouping under the key stages. It is not time based- there is no
timescale on the
drawing. Chart showing the example of work break down structure.
A Work Breakdown Structure is a results-oriented family tree that captures all the
work of a project
in an organized way. It is often portrayed graphically as a hierarchical tree,
however, it can also be a tabular
list of "element" categories and tasks or the indented task list that appears in
your Gantt chart schedule. As a
very simple example, Figure 1 shows a WBS for a hypothetical banquet.
EXAMPLE 1.EXAMPLE -2

Q.3 Take an example of any product or project and explain project management
life cycle.

Ans. A life cycle of a project consists of the following steps.

 Understanding the scope of the project.
 Establishing objectives of the projects
 Formulating and planning various activities.
 Executing the project
 Monitoring and controlling the project resources.
 Closing and post completion analysisPhases of Project Management Life
Cylce.
Project management life cycle has six phases:
1. Analysis and evaluation phase.
2. Marketing phase
3. Design phase
4. Execution phase
5. Control-inspecting, testing, and delivery phase
6. Closure and post completion analysis phase.
1. Analysis And Evaluation Phase: Analysis and evaluation phase is the initial
phase of any
project. In this phase, information is collected from the customer pertaining to the
project.
From the collected information, the requirements of the project are analyzed.
According to
the customer requirement, the entire project is planned in a strategic manner.
The project
manager conducts the analysis of the problem and submits a detailed report to
the top
management.
2. Marketing Phase: A project proposal is prepared by a group of people
including the project
manager. This proposal has to contain the strategic adopted to market the
product to the
customer.
3. Design Phase: Design phase involves the study of inputs and outputs of the
various project
stages.
a. Inputs received consist of project feasibility study, preliminary project
evaluation
details, project proposal, and customer interviews.
b. Outputs produced consist of system design specifications, functional
specifications
of the project, design specifications of the project and project plan.
4. Execution Phase: In execution phase, the project manager and the term
members work on
the project objectives as per the plan. At every stage during the execution,
reports are
prepared.
5. Control- Inspecting Testing and Delivery Phase: During this phase, the project
teams
works under the guidance of the project manager. The project manager has to
ensure that the
team working under him is implementing the project designs accurately. The
project has to
be tracked or monitored through its cost, manpower, and schedule. The project
manager has to ensure ways of managing the customer and marketing the future
work, as well as ways to
perform quality control work
6. Closure and Post Completion Analysis Phase: Upon satisfactory completion
and delivery
of the intended product or service the staff performance has to be evaluated. The
project
manager has to document the lessons from the project. Reports on project
feedback are to be
prepared and analyzed. A project execution report is to be prepared.
Let us have a quick recap of what is involved in the above phases
a. Analysis and evaluation phase: The preparation stage involves the preparation
and
approval of project outline, project plan, and project budget.
b. Assigning task to the team members: The next stage involves selecting and
briefing
the project team about the proposals, followed by discussions on the roles and
responsibilities of the project member and the organization.
c. Feasibility study: The feasibility or research stage establishes whether the
project is
feasible or not and establishes the risk factors likely to be faced during the
course of
the project execution and the related key factors to overcome the problem
d. Execution phase: A detailed definition and plan for the project and its
execution is
prepared by the team and coordinated by the project manager.
e. Implementation stage: The implementation stage involves the execution of the
project as per the plan, this also involves careful monitoring of the project
progress
and managing the changes, if any, within the scope of the project framework.
7. Closure and post completion analysis phase: The final stage involves
satisfactory delivery
of the product/service to the customers. Upon completion, a project review is to
be
conducted by the project manager along with team member, sponsors, and
customer. A
project review process involves discussions about the progress, performance,
hurdles that
were overcome and problems faced, so that, such instances could be avoided in
future
projects.Example No.1
Example No.2Example No.3

Q.4 Explain PMIS. What Is Difference Between Key Success Factor (Ksf) And
Knowledge (K) Factor ?
Explain With Examples
.
Ans.
PMIS (Project Management Information System)
An information system is mainly aimed at providing the management at different
levels with
information related to the system of the organization. It helps in maintaining
discipline in the
system.
An information system dealing with project management tasks is the project
management
information system. It helps in decision making in arriving at optimum allocation
of resources. The
information system is based on a database of the organization. A project
management information
system also holds schedule, scope changes, risk assessment and actual
results.The information is communicated to managers at different levels of the
organization
depending upon the need. Let us find how a project management information
system is used by
different stakeholders.
WHO NEEDS INFORMATION AND WHY?
Upper managers To know information on all project regarding
progress, problem, resource usage, costs and project
goals. This information helps them take decisions on
the projects. They should review the projects at each
milestone and arrive at appropriate decision.
Project manager and
department managers
To see each project schedule, priority and use of
resources to determine the most efficient use across
the organization.
Project team members To see schedule, task lists and specification so that
they know what needs to be done next.
The four majors aspects of a PMIS are:
1. Providing information to the major stakeholder.
2. Assisting the team members, stakeholders, managers with necessary
information and
summary of the information shared to the higher level managers.
3. Assisting the manager in doing what if analysis about project staffing,
proposed staffing
changes and total allocation of resources.
4. Helping organizational learning by helping the members of the organizations
lean about
project management.
Usually, the team members, and not the systems administrators of the company,
develop a good
PMIS. Organisations tend to allocate such responsibility by rotation among
members with a well
designed and structured data entry and analytical format.Different Between Key
Success Factors (KSF) And Knowledge (K) Factor
Key success factors (KSF) Knowledge (k) factor
The KSF should be evolved based on a
basic consensus document (BCD)
Knowledge is the most powerful mover of the
wheels of progress
KSF will also provide an input to effective
exit strategy (EES)
Knowledge (k) factor is an index of the extent
to which one can manager today with
yesterday’s knowledge content and also the
extent to which today’s knowledge will be used
tomorrow.
Broad level of KSF should be available at
the conceptual stage and should be firmed
up and detailed out during the planning
stage. The easiest way would be for the
team to evaluate each step for chances of
success on a scale of ten.
K factor would render the development process
more productive. The k factor of course,
undergoes correction through obsolescence,
since changes are now phenomenal.
KSF should be available to the
management, duly approved by the project
manager before execution and control
stages.
Leaders should recognize the knowledge
potential of the younger managers. Seniority is
no more an automate scale for knowledge. It is
equally important for younger member not
suppress their knowledge potential from its
application.
KSF rides normal consideration of time and
cost- at the levels encompassing client
expectation and management perceptiontime and cost come into play as
subservient
to these major goal.
Here time and cost does not matter, knowledge
is to be updated time to time to get better
results.
In order to provide complete stability to
fulfillment of goals, a project manager
needs to constantly evaluate the key success
factor from time to time.
As age and experience advance wisdom gains,
but knowledge should always be updated and
utilized. It is the task of every team members to
maximize the k factor in all directions.
Example of Key success factor
According to TeachMeFinance.com, a turnkey project is "a project in which a
builder/developer
contracts to construct a completed facility that includes all items necessary for
use and occupancy."
Unfortunately, many turnkey businesses never capture the interest of the
buyers. Whether you're
building in brick and mortar or building in computer code, there are several
factors critical to the
success of your turnkey project.Know the Business
Several businesses can be set up as turnkey businesses, from food service to
copy
management to telemarketing and sales. Whichever you decide, it is important to
have an intimate
knowledge of the business you are building. One key factor in a successful
turnkey business is
being able to anticipate the needs and desires of the potential owners before
they are brought on
board. A salesman, for example, looking to purchase a turnkey sales business
will need an office as
a base of operations; but since so much of the sales process is done through
phones, computers and
other electronic devices, the turnkey developer may want to include additional
power outlets in the
construction of the building, or desks with onboard power strips and surge
protectors. These small
additions can make a turnkey project a success.
Know the Area
Internet businesses often have nationwide access to clientele, but brick-and-
mortar turnkey
operations sometimes run into trouble in areas poorly suited to the service they
offer. For example,
an outdoor food service stand opening in Wilkes-Barre, Pennsylvania, will not do
as much business
(at least during the winter months) as one opening in an Orlando, Florida, theme
park. Knowing the
area where you are constructing your turnkey business includes knowing the
weather conditions,
the dominant demographic, the current popularity and number of businesses like
the one you are
creating and the average income of the public. Planning a turnkey business that
uses these factors to
its advantage will make the business more readily sellable.
Make Connections
Turnkey businesses are designed to be ready to operate as soon as the buyer
takes
ownership. Still, once they are sold, many businesses of this type run into
problems when it comes
to resupplying, logistics and advertising. Because of this, many buyers are wary
of turnkey
operations. One way to quell any "down the road" fears is to have this part of the
infrastructure
accounted for. Make contact with businesses which help advertise businesses,
ship products, supply
copy paper and any other stock the owner might require. Obtain discounts from
as many as possibleExample of Knowledge (k) factor
ABSTRACT
Most organisations are aware that in today’s highly competitive environment
managing
effectively their knowledge is the only way to achieve a sustainable competitive
advantage. One of
the primary areas to which knowledge management can be applied is the field of
project
management. An increasing number of business sectors are adopting a project
approach to carry out
a range of essential activities where valuable knowledge is gained. Knowledge
from projects is an
important resource for further projects, because projects solve innovative and
interdisciplinary
tasks. However, the majority of organisations do not manage the information
gained through past
projects. Failure to transfer knowledge from past to future projects leads to
wasted activity and
unnecessary expenses by ‘reinventing the wheel’. Therefore, knowledge
management is a critical
success factor for many projects.
The purpose of this Management Report is to approach knowledge management
from the
perspective of project management. The main objective is to define how
knowledge management
can be enhanced within a project by analysing suitable tools and relevant
theories. The research is
based on the high-speed train project XY of the company XXX. This project is an
important
milestone for XXX to improve its market position in Spain. The knowledge gained
through the XY
project will be the key factor for the success of the further high-speed train
projects.
The main finding of the case study highlights that there is a lack of formal
knowledge
management activities at the project. The project team focuses mainly on
personal interaction for
transferring knowledge and information technology is not used to its full potential.
A hybrid
approach to knowledge management for project environments is suggested,
taking into account
technical as well as human-specific aspects. The main recommendation is to
determine a knowledge
management strategy, which preferably focuses on transferring tacit knowledge
and gives
information technology a support function. Other areas of improvement are
creating an open and
constructive project culture, including knowledge initiatives in reward systems
and fostering
documented project review sessions. Finally, general conclusions are provided to
answer the main
research question of this management report

.Q.5 Explain the seven principal of supply chain management. Take an example of
any
product in the market and explain the scenario of Bullwhip effect.

Ans:
Seven Principles Of SCM are:
1. Group customer by needs: Effective SCM groups customers by distinct service
needs,
regardless of industry and then tailors services to those particular segments.
2. Customize the logistics networks: In designing their logistic network,
companies need to
focus on the service requirement and profit potential of the customer segments
identified.
3. Listen to signals of market demand and plan accordingly: sales and operations
planners
must monitor the entire supply chain to detect early warning signals of changing
customers
demand and needs. This demand driven approach leads to more consistent
forecast and
optimal resource allocation.
4. Differentiate the product closer to the customer: companies today no longer
can afford to
stockpile inventory to compensate for possible forecasting errors. Instead, they
need to
postpone product differentiation in the manufacturing process closer to actual
consumer
demand. This strategy allows the supply chain to respond quickly and cost
effectively to
changes in customer needs.
5. Strategically manage the sources of supply: By working closely with their key
suppliers to
reduce the overall costs of owning materials and services, SCM maximizes profit
margins
both for themselves and their suppliers.
6. Develop a supply chain wide technology strategy: As one of the cornerstones
of successful
SCM, information technology must be able to support multiple levels of decisions
making.
It also should afford a clear view and ability to measure the flow of products,
services and
information.
7. Adopt channel spanning performance measures: Excellent supply chain
performance
measurement systems do more than just monitor internal functions. They apply
performance
criteria to every link in the supply chain-criteria that both service and financial
metrics.
BULLWHIP EFFECT IN SCM
An organization will always have up and downs. It is necessary that the
managers of the
organization keep track of the market conditions and analyze the changes. They
must take
decisions on the resources and make necessary changes within the organization
to meet the
market demands. Failing to do so may results in wild swings in the orders. This
may adversely affect the functioning of the organization resulting in lack of
coordination and trust among
supply chain members. The changes may affect the information and may led to
demand
amplification in the supply chain. The Bullwhip effect is the uncertainty caused
from distorted
information flowing up and down the supply chain. This has its affect on almost
all the
industries, poses a risk to firms that experience large variations in demand, and
also those firm
which are dependent on suppliers, distributors and retailers. A bullwhip effect
may arise
because of:
 Increase in the lead time of the project due to increase in variability of demand
 Increase in the stocks to accommodate the increase demand arising out of
complicated
demand models and forecasting techniques.
 Reduced service levels in the organization.
 Inefficient allocation of resources.
 Increased transportation cost.
How to prevent it ?
Bullwhip effect may be avoided by one or more of the following measures:
 Avoid multiple demand forecasting.
 Breaking the single order into number of batches of orders.
 Stabilize the prices, avoid the risk involved in overstocking by maintaining a
proper stock
 Reduce the variability and uncertainty in point of sale (POS) and sharing
information
 Reduce the lead time in the stages of the project
 Always keep analyzing the past figures and track current and future levels of
requirement.
 Enhance the operational efficiency and outsourcing logistics to a capable and
efficient
agency
Example of one product the effect Bullwhip theory.
The beer game was developed at MIT by the Systems Dynamic Group in the
1960s. The
game involves a simple production/distribution system for a single brand of beer.
There are three
players in the game including a retailer, a wholesaler, and a marketing director at
the brewery.
Each player's goal is to maximize profit.A truck driver delivers beer once each
week to the retailer. Then the retailer places an order
with the trucker who returns the order to the wholesaler. There's a four week lag
between ordering
and receiving the beer.
The retailer and wholesaler do not communicate directly. The retailer sells
hundreds of
products and the wholesaler distributes many products to a large number of
customers.
The following represents the results of a typical beer game:-
3.1 The Retailer
Week 1: Lover's Beer is not very popular but the retailer sells four cases per
week on average.
Because the lead time is four weeks, the retailer attempts to keep twelve cases
in the store by
ordering four cases each Monday when the trucker makes a delivery.
Week 2: The retailer's sales of Lover's beer doubles to eight cases, so on
Monday, he orders 8 cases.
Week 3: The retailer sells 8 cases. The trucker delivers four cases. To be safe,
the retailer decides to
order 12 cases of Lover's beer.
Week 4: The retailer learns from some of his younger customers that a music
video appearing on
TV shows a group singing "I'll take on last sip of Lover's beer and run into the
sun." The retailer
assumes that this explains the increased demand for the product. The trucker
delivers 5 cases. The
retailer is nearly sold out, so he orders 16 cases.
Week 5: The retailer sells the last case, but receives 7 cases. All 7 cases are
sold by the end of the
week. So again on Monday the retailer orders 16 cases.
Week 6: Customers are looking for Lover's beer. Some put their names on a list
to be called when
the beer comes in. The trucker delivers only 6 cases and all are sold by the
weekend. The retailer
orders another 16 cases.
Week 7: The trucker delivers 7 cases. The retailer is frustrated, but orders
another 16 cases.
Week 8: The trucker delivers 5 cases and tells the retailer the beer is
backlogged. The retailer is
really getting irritated with the wholesaler, but orders 24 cases.
3.2 The Wholesaler
The wholesaler distributes many brands of beer to a large number of retailers,
but he is the
only distributor of Lover's beer. The wholesaler orders 4 truckloads from the
brewery truck driver
each week and receives the beer after a 4 week lag. The wholesaler's policy is to
keep 12 truckloads
in inventory on a continuous basis.
Week 6: By week 6 the wholesaler is out of Lover's beer and responds by
ordering 30 truckloads
from the brewery.Week 8: By the 8th week most stores are ordering 3 or 4 times
more Lovers' beer than their regular
amounts.
Week 9: The wholesaler orders more Lover's beer, but gets only 6 truckloads.
Week 10: Only 8 truckloads are delivered, so the wholesaler orders 40.
Week 11: Only 12 truckloads are received, and there are 77 truckloads in
backlog, so the wholesaler
orders 40 more truckloads.
Week 12: The wholesaler orders 60 more truckloads of Lover's beer. It appears
that the beer is
becoming more popular from week to week.
Week 13: There is still a huge backlog.
Weeks 14-15: The wholesaler receives larger shipments from the brewery, but
orders from retailers
begin to drop off.
Week 16: The trucker delivers 55 truckloads from the brewery, but the wholesaler
gets zero orders
from retailers. So he stops ordering from the brewery.
Week 17: The wholesaler receives another 60 truckloads. Retailers order zero.
The wholesaler
orders zero.
The brewery keeps sending beer.
3.3 The Brewery
The brewery is small but has a reputation for producing high quality beer. Lover's
beer is
only one of several products produced at the brewery.
Week 6: New orders come in for 40 gross. It takes two weeks to brew the beer.
Week 14: Orders continue to come in and the brewery has not been able to catch
up on the
backlogged orders. The marketing manager begins to wonder how much bonus
he will get for
increasing sales so dramatically.
Week 16: The brewery catches up on the backlog, but orders begin to drop off.
Week 18: By week 18 there are no new orders for Lover's beer.
Week 19: The brewery has 100 gross of Lover's beer in stock, but no orders. So
the brewery stops
producing Lover's beer.
Weeks 20-23. No orders.
At this point all the players blame each other for the excess inventory.
Conversations with
wholesale and retailer reveal an inventory of 93 cases at the retailer and 220
truckloads at the
wholesaler. The marketing manager figures it will take the wholesaler a year to
sell the Lover's beer
he has in stock. The retailers must be the problem. The retailer explains that
demand increased from 4 cases per week to 8 cases. The wholesaler and
marketing manager think demand mushroomed
after that, and then fell off, but the retailer explains that didn't happen.
Demand stayed at 8 cases per week. Since he didn't get the beer he ordered, he
kept ordering
more in an attempt to keep up with the demand. The marketing manager plans
his resignation.
3.4 Lessons from the Beer Game
1. The structure of a system influences behavior. Systems cause their own
problems, not external
forces or individual errors.
2. Human systems include the way in which people make decisions.
3. People tend to focus on their own decisions and ignore how these decisions
affect others.
3.5 Lessons Related to the Learning Disabilities
1. People do not understand how their actions affect others.
2. So they tend to blame each other for problems.
3. Becoming proactive causes more problems.
4. The problems build gradually, so people don't realize there is a problem until
it’s too late.
5. People don't learn from their experience because the effects of their actions
occur somewhere
else in the system.
Stock variability amplification in a supply chain due to Bullwhip EffectQ6. Time
taken by three machines on five jobs in a factory is tabulated below in table
below.
Find out the optimal sequence to be followed to minimize the idle time taken by
the jobs
on the machines.

Ans. Consider M1 and M3

Job Machine 1 (M1) Machine 3 (M3)
A 6 7
B 4 3
C 5 7
D 3 6
E 4 4
JOB = D E C A B