Jonalyn R.

Bustamante

BSOA 4-1P

SAMPLE ACTIVITIES/ASSESSMENTS CHAPTER 1

1. Briefly explain the production system and its characteristics.

The production system of an organization is that part, which produces products

of an organization. Production system utilizes materials, funds, infrastructure, and

labour to produce the required output in form of goods.

Characteristics:

 Production is an organized activity, so every production system has an objective.

 The system transforms the various inputs to useful outputs.

 It does not operate in isolation from the other organization system.

 There exists a feedback about the activities, which is essential to control and

improve system performance.

2. What is job shop production? What are its characteristics, advantages and limitations?
Give an example.

Job shop production are characterized by manufacturing of one or few quantities of

products designed and produced as per the specification of customers within prefixed time and
cost. A job shop comprises of general purpose machines arranged into different departments.
Each job demands unique technological requirements, demands processing on machines in a
certain sequence.

Characteristics:

1. High variety of products and low volume.

2. Use of general purpose machines and facilities.

3. Highly skilled operators who can take up each job as a challenge because of uniqueness.
4. Large inventory of materials, tools, parts.

5. Detailed planning is essential for sequencing the requirements of each

product, capacities for each work center and order priorities.

Advantages:

1. Because of general purpose machines and facilities variety of products can be produced.

2. Operators will become more skilled and competent, as each job gives them learning
opportunities.

3. Full potential of operators can be utilized.

4. Opportunity exists for creative methods and innovative ideas.

Limitations:

1. Higher cost due to frequent set up changes.

2. Higher level of inventory at all levels and hence higher inventory cost.

3. Production planning is complicated.

4. Larger space requirements.

3. What is batch production? What are its characteristics, advantages and limitations? Cite
an example.

Batch production is a form of manufacturing in which the job passes through the

functional departments in lots or batches and each lot may have a different routing. It is

characterized by the manufacture of limited number of products produced at regular

intervals and stocked awaiting sales.

Characteristics:

1. When there are shorter production runs.

2. When plant and machinery are flexible.

3. When plant and machinery set up is used for the production of item in a batch and change of
set up is required for processing the next batch.

4. When manufacturing lead time and cost are lower as compared to job order production.

Advantages:

1. Better utilization of plant and machinery.

2. Promotes functional specialization.

3. Cost per unit is lower as compared to job order production.

4. Lower investment in plant and machinery.

5. Flexibility to accommodate and process number of products.

6. Job satisfaction exists for operators.

Limitations:

1. Material handling is complex because of irregular and longer flows.

2. Production planning and control is complex.

3. Work in process inventory is higher compared to continuous production.

4. Higher set up costs due to frequent changes in set up.

4. What is mass production? What are its characteristics, advantages andlimitations? Cite
an example.

Mass production is the manufacture of discrete parts or assemblies using a

continuous process. This production system is justified by very large volume of production. The
machines are arranged in a line or product layout. Product and process

standardization exists and all outputs follow the same path.

Characteristics:

1. Standardization of product and process sequence.

2. Dedicated special purpose machines having higher production capacities and output rates.

3. Large volume of products.

4. Shorter cycle time of production.

5. Lower in process inventory.

6. Perfectly balanced production lines.

7. Flow of materials, components and parts is continuous and without any back tracking.

8. Production planning and control is easy.

9. Material handling can be completely automatic.

Advantages:

1. Higher rate of production with reduced cycle time.

2. Higher capacity utilization due to line balancing.

3. Less skilled operators are required.

4. Low process inventory.

5. Manufacturing cost per unit is low.

Limitations:

1. Breakdown of one machine will stop an entire production line.

2. Line layout needs major change with the changes in the product design.

3. High investment in production facilities.

4. The cycle time is determined by the slowest operation.

5. What is continuous production? What are its characteristics, advantages and
limitations? Give an example.

Production facilities are arranged as per the sequence of production operations from the first
operations to the finished product. The items are made to flow through the sequence of
operations through material handling devices such as conveyors, transfer devices, etc.

Characteristics:

1. Dedicated plant and equipment with zero flexibility.

2. Material handling is fully automated.

3. Process follows a predetermined sequence of operations.

4. Component materials cannot be readily identified with final product.

5. Planning and scheduling is a routine action.

Advantages:

1. Standardization of product and process sequence.

2. Higher rate of production with reduced cycle time.

3. Higher capacity utilization due to line balancing.

4. Manpower is not required for material handling as it is completely automatic.

5. Person with limited skills can be used on the production line.

6. Unit cost is lower due to high volume of production.

Limitations:

1. Flexibility to accommodate and process number of products does not exist.

2. Very high investment for setting flow lines.

3. Product differentiation is limited.

6. Explain in brief the objectives of production management.

The objective of the production management is to produce goods services of right quality and
quantity at the right time and right manufacturing cost.

 Right Quality

- Determined by the cost of the product and the technical characteristics as suited to the specific
requirements

 Right Quantity

- Should produce the products in right number

 Right Time

-Timeliness of delivery is one of the important parameter to judge the effectiveness of production
department. So, the production department has to make the optimal utilization of input resources
to achieve itsobjective.

 Right Manufacturing Cost

-Manufacturing costs are established before the product is actually manufactured. Hence, all
attempts should be made to produce the products at pre-established cost, so as to reduce the
variation between actual and the standard (pre-established) cost.

7. Explain in brief the objectives of operations management. Objectives of operations

management can be categorized into customer service and resource utilization.

 Customer Service

- The first objective of operating systems is the customer service to the

satisfaction of customer wants. Customer Service’s objective is to provide

agreed/adequate levels of customer service (and hence customer satisfaction) by

providing goods or services with the right specification, at the right cost and at the

right time.
 Resource Utilization

- Another major objective of operating systems is to utilize resources for the

satisfaction of customer wants effectively. Resource Utilization’s objective is to

achieve adequate levels of resource utilization (or productivity) e.g., to achieve

agreed levels of utilization of materials, machines and labor.

8. Distinguish between manufacturing operations and service operations.

 Manufacturing operations is characterized by tangible outputs (products), outputs that

customers consume overtime, jobs that use less labor and more equipment, little customer
contact, no customer participation in the conversion process (in production), and sophisticated
methods for measuring production activities and resource consumption as product are made.

 Service operations is characterized by intangible outputs, outputs that customers consume

immediately, jobs that use more labor and less equipment, direct consumer contact, frequent
customer participation in the conversion process, and elementary methods for measuring
conversion activities and resource consumption. Some services are equipment based namely rail-
road services, telephone services and some are people based namely tax consultant services, hair
styling.

9. Explain the key issues to be considered for managing global operations.

 To acquire and properly utilize the following concepts and those related to global operations,
supply chain, logistics, etc.

 To associate global historical events to key drivers in global operations from different
perspectives.

 To develop criteria for conceptualization and evaluation of different global operations.

 To associate success and failure cases of global operations to political, social, economical and
technological environments.

 To envision trends in global operations.

 To develop an understanding of the world vision regardless of their country of origin,
residence or studies in a respectful way of perspectives of people from different races, studies,
preferences, religion, politic affiliation, place of origin, etc.

10. As BSOA students, why do you need to study Operations Management?

As BSOA students, we need to study Operations Management to learn and prepare for
our future scope of work. We need to learn how products/services are being produced or
executed and the processes involved to ensure a great quality of production. Understanding the
values and nature of Operations Management could help us become a great operations manager
someday. With the knowledge we will be getting through this course subject, we will be able to
understand how operations management works and we will be able to solve possible problems
we may encounter as we work in the future.