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SECTION 1: Introduction to Industrial Management 1. Define Organization. Difference between "Strike" & "Lockout"? Difference between Industrial Management & Product Management? Difference between "Line organization" & "Functional organization"? State the process of creating an organization? (10 Marks) A. Definition of Organization An Organization is a social unit of people systematically structured and managed to meet a need or to pursue collective goals on a continuing basis. It is a group of individuals working together under a common leadership towards a common goal. B. Difference between "Strike" & "Lockout" Feature Strike Lockout Definition A temporary cessation of work by a body of persons employed in any industry, acting in combination. The temporary closing of a place of employment or the suspension of work, or the refusal by an employer to continue to employ any number of persons. Initiated by Employees (Workers). Employer (Management). Purpose To enforce demands regarding wages, working conditions, or other grievances. To enforce terms and conditions of employment or to resist demands of the workers. C. Difference between Industrial Management & Product Management Feature Industrial Management Product Management Focus Efficient management of industrial operations, production processes, resources (man, machine, material), and overall organizational efficiency. Strategic management of a product throughout its lifecycle, from conception to launch and growth, focusing on customer needs and market success. Scope Internal operations, efficiency, cost control, and resource utilization within the factory/industry. External market, customer, business strategy, and product features/value proposition. Goal Optimize production, minimize waste, and maximize operational efficiency. Maximize product value, market share, and revenue. D. Difference between "Line organization" & "Functional organization" Feature Line Organization Functional Organization Authority Direct vertical flow of authority from top to bottom (Chain of Command). Authority flows from functional specialists to subordinates in different departments. Specialization Low specialization; managers are generalists. High specialization; managers are functional experts. Unity of Command Strict adherence to the principle (one boss). Violation of the principle (multiple bosses for a single worker). Suitability Small, simple organizations. Large, complex organizations requiring high specialization. E. Process of Creating an Organization The process of creating an organization (Organizing Function) involves the following steps: Identification and Division of Work: The total work is identified and divided into manageable activities. Grouping of Jobs (Departmentalization): Similar jobs are grouped together to form departments (e.g., functional, divisional). Assignment of Duties: The work is assigned to individuals based on their skills and competence. Establishing Reporting Relationships: Defining the structure by establishing who reports to whom (authority-responsibility relationships). 2. Explain organizational culture & climate in details? What is system? Explain its classification? What is organization structure? Describe the types & advantage & disadvantages? (10 Marks) A. Organizational Culture & Climate (Detailed) Organizational Culture: The shared values, beliefs, assumptions, and norms that influence the way employees think, feel, and behave. It is the "personality" of the organization, often unwritten and deeply ingrained. It is stable and difficult to change. Organizational Climate: The shared perceptions and attitudes of employees about the organization's policies, practices, and procedures. It is the "mood" or "atmosphere" of the workplace, often influenced by current management practices and leadership style. It is more temporary and easier to change than culture. B. Concept of System and Classification System: A set of interrelated and interdependent parts (subsystems) arranged in a manner that produces a unified whole. Every system has inputs, a process (transformation), and outputs. Classification of Systems: Open System: Interacts with its environment, exchanging inputs (resources) and outputs (products/services). Most organizations are open systems. Closed System: Does not interact with its environment. Theoretical concept, rarely exists in reality. Deterministic System: The output can be perfectly predicted from the input (e.g., a machine). Probabilistic System: The output can only be predicted with a certain probability (e.g., human behavior in an organization). C. Organizational Structure and Types Organizational Structure: The formal framework by which job tasks are divided, grouped, and coordinated. It defines the hierarchy, roles, and reporting relationships. Types of Organizational Structures, Advantages & Disadvantages Structure Type Description Advantages Disadvantages Line Organization Direct vertical flow of authority from top to bottom. Simple chain of command. Simple, clear authority, fast decision-making, strict discipline. Lack of specialization, overloads top management, less flexibility. Functional Organization Authority flows from functional specialists. Workers report to multiple managers based on function. High specialization, increased efficiency, better utilization of experts. Violation of unity of command, complex, potential for conflicts, slow decision-making. Line and Staff Organization Combines line authority (command) with staff authority (advice, support). Staff departments advise line managers. Specialized advice, better decision-making, relief to line executives. Conflict between line and staff, staff may lack authority, expensive. Divisional Organization Structure based on product, geography, or customer. Each division is a self-contained unit. Focus on specific products/markets, faster response to change, clear accountability. Duplication of resources, potential for inter-divisional conflicts, higher costs. Matrix Organization Dual reporting relationships. Employees report to both a functional manager and a project/product manager. Efficient resource utilization, flexibility, better communication, enhanced employee skills. Confusion and ambiguity, power struggles, stress on employees, high administrative cost. 3. What do you mean by management? Write down the main functions of management? Highlight the basic elements of management? (5 Marks) A. Management Definition Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims. B. Main Functions of Management The five core functions are: Planning, Organizing, Staffing, Directing (Leading), and Controlling. C. Basic Elements of Management Goals/Objectives: The desired future state or results the organization seeks to achieve. Resources: The inputs required, categorized as Man, Money, Material, Machine, Methods, and Market (6 M’s). Process: The systematic way of doing things (the functions of management). Effectiveness: Achieving the stated goals (doing the right things). Efficiency: Achieving the goals with minimum resource cost (doing things right). 4. State the concept of "Delegation of Authority"? State the difference between authority & responsibility? State the factors affecting industrial relations? Define the concept of industrial relations? (10 Marks) A. Delegation of Authority Delegation of Authority is the process of entrusting authority and responsibility to a subordinate and creating accountability for the results. It is the downward transfer of authority from a superior to a subordinate. B. Difference between Authority & Responsibility Feature Authority Responsibility Definition The right to command and take action. The obligation to perform the assigned task. Source Formal position in the organization. Delegation of work/task. Flow Flows downward (Superior to Subordinate). Flows upward (Subordinate to Superior). Can be Delegated? Can be delegated. Cannot be fully delegated. C. Industrial Relations (IR) Definition: Industrial Relations is the relationship between management and employees (or trade unions) in an industry. It is concerned with the regulation of employment conditions and the resolution of industrial disputes. Factors Affecting IR: Economic Factors: Wages, working conditions, and benefits. Institutional Factors: Trade unions, employer associations, and labor laws. Technological Factors: Automation, job displacement, and skill requirements. Social/Psychological Factors: Employee morale, job satisfaction, and organizational culture. Political Factors: Government policies and political stability. 5. State the types of formal organization? Write a short note on informal organization? (5 Marks) A. Types of Formal Organization Line Organization: Direct vertical flow of authority. Simple and fast decision-making. Functional Organization: Authority flows from functional experts. High specialization. Line and Staff Organization: Combines line authority (command) with staff authority (advice/support). Matrix Organization: Dual reporting structure (functional and project). B. Informal Organization (Short Note) An Informal Organization is the network of personal and social relationships that spontaneously arises among employees who work together. It is not established by management but by the common interests, friendships, and shared values of the members. Characteristics: Unofficial, based on emotion and personal relationships, has its own communication channels (the grapevine). Importance: It satisfies the social and psychological needs of employees, provides a fast channel of communication, and can influence the formal organization's effectiveness (positively or negatively). 6. How can we describe the concept of job satisfaction? Why is satisfaction of employees so important to an organization? Mention a few factors which can affect the satisfaction of employees regarding their job? What is job evaluation? State its importance and advantages & limitations of job evaluation? (10 Marks) A. Job Satisfaction Job Satisfaction is the pleasurable emotional state resulting from the appraisal of one's job or job experiences. It is the extent to which people like (or dislike) their jobs. B. Importance of Employee Satisfaction Increased Productivity: Satisfied employees are generally more motivated and productive. Lower Absenteeism and Turnover: High satisfaction leads to fewer unplanned absences and a lower rate of employees leaving the organization. Improved Quality: Satisfied workers are more committed to producing high-quality work. Better Industrial Relations: High satisfaction reduces grievances and conflicts, leading to harmonious relations. C. Factors Affecting Job Satisfaction Work Itself: The degree of challenge, interest, and variety in the job. Pay and Benefits: The amount of compensation and its perceived fairness. Supervision: The technical and human skills of the immediate supervisor. Working Conditions: Physical environment, safety, and comfort. Co-workers: The quality of social interaction with colleagues. Promotion Opportunities: Perceived fairness and availability of career advancement. D. Job Evaluation Definition: Job Evaluation is a systematic process of determining the relative worth of a job in an organization. It is concerned with the job, not the person doing the job. Importance: It provides a rational basis for developing a fair and equitable wage and salary structure. Advantages: Fair Wage Structure: Ensures equal pay for jobs of equal worth. Reduces Disputes: Minimizes wage-related grievances and conflicts. Simplifies Recruitment: Provides clear job descriptions and specifications. Limitations: Subjectivity: The process can be subjective, as it relies on human judgment to assign weights to factors. Costly and Time-Consuming: Requires specialized expertise and significant time investment. Resistance: Employees and unions may resist changes to the existing wage structure. SECTION 2: CPM & PERT 1. Which type of organization is temporary by nature? What is PERT analysis? What is Master Scheduling? Define critical path in network diagram? (5 Marks) A. Temporary Organization The Matrix Organization structure is often temporary by nature, as it is frequently used for specific projects, after which the project team is disbanded. The Project Organization structure is also inherently temporary. B. PERT Analysis PERT (Program Evaluation and Review Technique) is a project management tool used to analyze and represent the tasks involved in completing a given project. It is a probabilistic model that uses three time estimates (optimistic, pessimistic, most likely) for each activity to account for uncertainty, typically used for R&D or non-repetitive projects. C. Master Scheduling Master Scheduling (or Master Production Schedule - MPS) is a plan for individual commodities to be produced in each time period. It specifies what is to be produced, when , and in what quantity . It is a key input to the Materials Requirement Planning (MRP) system. D. Critical Path The Critical Path is the longest sequence of activities in a project network diagram, from the start event to the end event. It determines the minimum time required to complete the entire project. Any delay in an activity on the critical path will delay the entire project. 2. List, in order, the six steps basic to both PERT & CPM? Distinguish PERT & CPM? Define the term: (i) Events (ii) Activity (iii) Critical activity (iv) Non-critical activity (v) Dummy activity (10 Marks) A. Six Basic Steps to both PERT & CPM Define the Project and all its Activities/Tasks. Establish the Sequence/Precedence Relationships among the activities. Draw the Network Diagram (Activity-on-Arrow or Activity-on-Node). Estimate the Time required for each activity (single time for CPM, three times for PERT). Determine the Critical Path and the project duration. Monitor, Evaluate, and Control the project progress. B. Distinction between PERT & CPM Feature PERT (Program Evaluation and Review Technique) CPM (Critical Path Method) Time Estimate Probabilistic (3 time estimates). Deterministic (Single time estimate). Focus Time uncertainty; used for R&D projects. Time-Cost trade-off; used for construction/repetitive projects. Model Uses statistical methods (Beta distribution, Z-score). Uses simple arithmetic. Activity Type Events are the main focus (Event-Oriented). Activities are the main focus (Activity-Oriented). C. Definitions (i) Events (Node): A point in time that represents the start or completion of one or more activities. It consumes no time or resources. (ii) Activity (Arrow): A task or work element that consumes time and resources. (iii) Critical Activity: An activity that lies on the critical path. It has zero total float, meaning any delay in its completion will delay the entire project. (iv) Non-Critical Activity: An activity that does not lie on the critical path. It has a positive total float, meaning it can be delayed up to a certain limit without affecting the project completion time. (v) Dummy Activity: A theoretical activity that consumes no time or resources, represented by a dashed line. It is used to maintain the correct logical or precedence relationships in the network diagram. 3. Briefly describe the determination of project duration using CPM & PERT? What are the utility of PERT chart? In a network of a project, what does crashing & updating mean? (10 Marks) A. Determination of Project Duration Using CPM (Deterministic): A single time estimate is used for each activity. The duration of every possible path from the start to the end event is calculated by summing the activity times. The Critical Path is the path with the maximum duration, and this duration is the Project Duration . Using PERT (Probabilistic): The Expected Time ($t_e$) for each activity is calculated using the formula: $t_e = (t_o + 4t_m + t_p)/6$. The duration of the critical path is calculated by summing the expected times ($t_e$) of all activities on that path. This sum is the Expected Project Duration ($T_e$). The probability of completing the project by a scheduled time ($T_s$) is then determined using the Z-score and the variance of the critical path. B. Utility of PERT Chart Time Estimation: Provides a statistical estimate of the project completion time, including the probability of meeting deadlines. Risk Assessment: Helps in identifying activities with high variance (high risk) that require closer monitoring. Resource Allocation: Guides management to focus resources on critical activities to ensure timely completion. Communication: Clearly communicates the project plan, dependencies, and expected timeline to all stakeholders. C. Crashing & Updating Crashing: The process of accelerating a project by reducing the duration of one or more critical activities, usually by injecting additional resources (e.g., overtime, extra equipment) at an increased cost. The goal is to reduce the project duration to meet a deadline or minimize total project cost (direct cost + indirect cost). Updating: The process of revising the project network diagram and schedule based on the actual progress achieved up to a certain point in time. This involves replacing planned times with actual times, recalculating the critical path, and adjusting future schedules to reflect the current status. 4. State the uses of Cost-Volume-Profit (CVP) analysis? Write a short note on Gantt chart? Explain when & why you will use PERT charts and when & why you will use Gantt charts while you are a project manager? (10 Marks) A. Uses of Cost-Volume-Profit (CVP) Analysis CVP Analysis is a management accounting tool that examines the relationship between total revenue, total costs, and profit at various levels of activity (volume). Break-Even Analysis: Determines the sales volume (units or revenue) required to cover all costs (where profit is zero). Pricing Decisions: Helps in setting the selling price to achieve a desired profit margin. Product Mix Decisions: Guides management in choosing which products to prioritize based on their contribution margin. Target Profit Planning: Calculates the sales volume needed to achieve a specific target profit. Cost Control: Helps in understanding the impact of changes in fixed and variable costs on profitability. B. Gantt Chart (Short Note) A Gantt Chart is a project management tool that provides a visual representation of a project schedule. It is a horizontal bar chart where the activities are listed vertically, and the time scale is shown horizontally. The length of the bar indicates the duration of the activity. It is excellent for tracking progress and communicating the schedule to stakeholders. C. When and Why to Use PERT vs. Gantt Charts Chart Type When to Use Why to Use PERT Chart Early Stages of a project, especially for R&D, novel, or non-routine projects where activity times are highly uncertain. To determine the most likely project duration and the probability of meeting deadlines, and to identify critical dependencies and high-risk activities. Gantt Chart Execution and Monitoring Stages of a project, especially for routine, repetitive, or smaller projects where activity times are relatively certain. To visually track progress against the schedule, communicate the timeline clearly to the team, and manage resource allocation on a day-to-day basis. SECTION 3: Materials Management 1. What is Material Management? State its objectives? What is Materials handling? (5 Marks) A. Material Management Material Management is an organizational function responsible for the planning, organizing, and control of the flow of materials from their initial purchase through internal operations to the service or product delivery. It encompasses all activities related to the acquisition, storage, and movement of materials. B. Objectives of Material Management Minimize Material Cost: Procuring materials at the lowest possible total cost, considering quality and delivery. Ensure Continuous Supply: Avoiding stock-outs to prevent production stoppages. Reduce Inventory Investment: Maintaining optimal inventory levels to minimize carrying costs. Maintain Quality: Ensuring that the right quality materials are procured and stored. Develop Good Supplier Relations: Establishing long-term, mutually beneficial relationships with reliable suppliers. C. Materials Handling Materials Handling refers to the movement, protection, storage, and control of materials and products throughout the process of manufacturing, distribution, consumption, and disposal. It involves the use of equipment like conveyors, forklifts, cranes, and automated guided vehicles (AGVs). 2. Math on Minimum stock level, maximum stock level, & reordering level. (5 Marks) These levels are crucial for inventory control, especially under conditions of uncertainty (fluctuating demand and lead time). Reordering Level (ROL): The level of stock at which a new order must be placed. $ROL = (\text{Maximum Consumption Rate} \times \text{Maximum Lead Time})$ Minimum Stock Level (Safety Stock): The lowest level of stock that must be maintained to prevent stock-outs. $Minimum Stock Level = ROL - (\text{Average Consumption Rate} \times \text{Average Lead Time})$ Maximum Stock Level: The highest level of stock that should be held at any time. $Maximum Stock Level = ROL + \text{Reorder Quantity (EOQ)} - (\text{Minimum Consumption Rate} \times \text{Minimum Lead Time})$ 3. What is EOQ? Derive an expression of EOQ stating the assumptions made. Mention at least two examples, the cost that are sought to be optimized in the EOQ model. Explain the concept of EOQ mathematically & graphically. Maths on EOQ. (10 Marks) A. Economic Order Quantity (EOQ) EOQ is the optimal order quantity that minimizes the total annual inventory costs, which are the sum of Ordering Costs and Carrying Costs . B. Assumptions of the EOQ Model Constant Demand: The rate of demand is known and constant throughout the year. Constant Lead Time: The time between placing an order and receiving it is fixed. Instantaneous Replenishment: The entire order quantity is received at once. Constant Costs: Ordering cost and carrying cost per unit are constant. No Stock-outs: Stock-outs are not allowed or the cost of stock-out is infinite. C. Costs Optimized in EOQ Model The two costs sought to be optimized are: Annual Ordering Cost: Cost of placing orders (e.g., administrative cost, transportation cost). Annual Carrying Cost: Cost of holding inventory (e.g., storage rent, insurance, obsolescence cost). D. Mathematical Derivation of EOQ Let: $A = \text{Annual Demand (units)}$ $O = \text{Ordering Cost per order}$ $C = \text{Carrying Cost per unit per year}$ $Q = \text{Order Quantity (EOQ)}$ Annual Ordering Cost ($C_o$): $C_o = \frac{A}{Q} \times O$ Annual Carrying Cost ($C_c$): $C_c = \frac{Q}{2} \times C$ Total Annual Inventory Cost (TC): $TC = C_o + C_c = \frac{A}{Q} \times O + \frac{Q}{2} \times C$ Minimizing TC (Derivation): To find the minimum cost, we take the derivative of TC with respect to Q and set it to zero: $\frac{dTC}{dQ} = -\frac{AO}{Q^2} + \frac{C}{2} = 0 \Rightarrow \frac{AO}{Q^2} = \frac{C}{2} \Rightarrow Q^2 = \frac{2AO}{C}$ $EOQ(Q^*) = \sqrt{\frac{2AO}{C}}$ E. Graphical Explanation (A graphical explanation would show two curves: the Annual Ordering Cost curve (decreasing with Q) and the Annual Carrying Cost curve (increasing with Q). The Total Cost curve is U-shaped, and the EOQ is the point where the Total Cost is minimum, which is also the point where the Annual Ordering Cost curve intersects the Annual Carrying Cost curve.) 4. What is MRP? How does MRP work? Explain the benefits & drawbacks of MRP? Explain briefly what you understand by MRP1 & MRP2? (10 Marks) A. Materials Requirement Planning (MRP) MRP is a computer-based inventory management system designed to manage dependent demand inventory. It calculates the precise quantities of materials needed and the exact time they are required to meet the Master Production Schedule (MPS). B. How MRP Works (Brief Steps) MRP uses three primary inputs to generate its output: Master Production Schedule (MPS): Specifies what final products are to be produced and when. Bill of Materials (BOM): A list of all raw materials, sub-assemblies, and components required to build one unit of the final product. Inventory Records File (IRF): Contains data on current inventory levels, lead times, and safety stock for every item. Process: Gross Requirements: MRP explodes the MPS using the BOM to determine the total (gross) quantity of each component needed. Net Requirements: It subtracts the available inventory (from IRF) from the gross requirements to find the net quantity that needs to be ordered or produced. Planned Order Releases: Using the lead time (from IRF), it offsets the net requirements to determine the exact time an order must be released to ensure the material arrives when needed. C. Benefits & Drawbacks of MRP Feature Benefits Drawbacks Inventory Reduced inventory levels and carrying costs. Requires accurate data (BOM, IRF); “Garbage In, Garbage Out." Scheduling Improved production scheduling and on-time delivery. Highly dependent on the accuracy of the Master Production Schedule (MPS). Efficiency Better utilization of resources and reduced idle time. Initial implementation is complex, time-consuming, and expensive. D. MRP I vs. MRP II MRP I (Materials Requirement Planning): The original system, focused solely on materials and inventory planning. It answers the question: What materials are needed, and when? MRP II (Manufacturing Resource Planning): An extension of MRP I that integrates all aspects of the manufacturing process, including finance, marketing, and human resources . It is a closed-loop system that also includes capacity planning and financial planning. It answers the question: What resources (materials, capacity, money) are needed, and when? 5. What is the importance of Inventory control system? What is inventory control? Discuss two models of inventory control that are widely used. Write a short note on ABC system of inventory control. Write a short note on Selective inventory control. (10 Marks) A. Inventory Control Inventory Control is the process of ensuring that the right quantity of supplies are maintained in stock at the right time and place, and at the right cost. B. Importance of Inventory Control Prevents Stock-outs: Ensures continuous production and sales, leading to customer satisfaction. Minimizes Investment: Reduces the capital tied up in inventory, improving cash flow. Reduces Obsolescence/Deterioration: Prevents losses due to materials becoming outdated or damaged. Achieves Economies of Scale: Allows for bulk purchasing to secure discounts. C. Two Widely Used Inventory Control Models Fixed Order Quantity System (Q-System): An order for a fixed quantity (EOQ) is placed whenever the inventory level drops to the Reorder Level (ROL). Review Period: Continuous (inventory is monitored constantly). Order Quantity: Fixed (EOQ). Fixed Order Period System (P-System): Inventory is reviewed at fixed, periodic intervals (e.g., every month). The order quantity varies, calculated as: Order Quantity = Target Inventory Level – Current Inventory Level. Review Period: Fixed (Periodic). Order Quantity: Variable. D. ABC System of Inventory Control (Short Note) ABC Analysis classifies inventory items into three categories (A, B, and C) based on their annual consumption value. This allows management to apply differentiated control measures: A-Items (High Value): Tight control, frequent review, accurate records. B-Items (Medium Value): Moderate control, periodic review. C-Items (Low Value): Loose control, large stock, simple records. E. Selective Inventory Control (Short Note) Selective Inventory Control (SIC) is the principle of applying different inventory control techniques to different items based on their importance, value, or criticality. ABC analysis is one form of SIC. Other forms include: VED Analysis: Classifying items as Vital, Essential, or Desirable based on their criticality to production. FSN Analysis: Classifying items as Fast-moving, Slow-moving, or Non-moving based on their consumption rate. 6. Distinguish between Bin card & Stores Ledger? Discuss two bin model of inventory management? (5 Marks) A. Distinction between Bin Card & Stores Ledger Feature Bin Card Stores Ledger Location Maintained by the storekeeper at the bin or storage location. Maintained by the cost accounting department in the office. Recording Records only quantity (receipts, issues, balance). Records both quantity and value (receipts, issues, balance). Purpose Physical control and verification of stock. Financial control and cost accounting. Verification Used to check against the Stores Ledger. Used to check against the Bin Card. B. Two-Bin Model of Inventory Management Concept: A simple, visual inventory control system primarily used for low-value 'C' category items. Mechanism: Inventory is stored in two bins. The first bin holds the stock for current use, and the second bin holds the safety stock. When the first bin is empty, it triggers a reorder, and consumption starts from the second bin. The new order is expected to arrive before the second bin is empty. Advantage: Simple, inexpensive, and requires minimal record keeping. 7. What are the benefits of scientific store-keeping? What is store-keeping? Write down the main functions of store-keeping? What is centralized & decentralized storing? What are the advantages of centralized & decentralized storing? (10 Marks) A. Store-Keeping and Functions Store-Keeping: The function of receiving, storing, and issuing materials and other items required for the operation of the organization. Main Functions: Receipt: Checking and accepting incoming materials. Storage: Safekeeping and preservation of materials. Issue: Supplying materials to user departments based on requisitions. Record Keeping: Maintaining accurate records (Bin Cards, Stores Ledger). Stock Verification: Physical counting and reconciliation with records. B. Benefits of Scientific Store-Keeping Minimizes Wastage: Proper storage conditions prevent deterioration, damage, and obsolescence. Reduces Pilferage: Enhanced security and control measures reduce theft. Efficient Space Utilization: Scientific layout and storage equipment maximize the use of available space. Facilitates Quick Retrieval: Proper indexing and location systems ensure materials are found and issued quickly. C. Centralized vs. Decentralized Storing Feature Centralized Storing Decentralized Storing Definition All materials are kept in one main store. Materials are kept in multiple small stores located near the user departments. Advantage Better control, lower operating cost, and better space utilization. Faster access to materials, reduced internal transport cost/time. Disadvantage Increased internal transport cost/time, potential for congestion. Difficult to maintain uniform control, duplication of staff and equipment. 8. What is codification? Write down the advantages of codification? Write down the three basic steps of scientific codification? Write down the basic system of codification? Write down the process of codification? What is the Kodak system? (10 Marks) A. Codification Codification is the process of assigning a unique identification code (numerical, alphabetical, or alphanumeric) to each item of material in the inventory. B. Advantages of Codification Eliminates Ambiguity: Prevents confusion between similar items and reduces the chance of ordering the wrong material. Facilitates Standardization: Encourages the use of standard items and reduces variety. Aids Computerization: Essential for efficient data processing, inventory management software (MRP/ERP), and automation. Reduces Inventory: By identifying and eliminating duplicate items. C. Three Basic Steps of Scientific Codification (Process) Simplification: Reducing the number of varieties of materials to the minimum necessary (e.g., reducing the number of different types of bolts used). Standardization: Establishing standards for the simplified items (e.g., defining the exact specification, quality, and size for each item). Codification: Assigning a unique code to each standardized item. D. Basic System of Codification Numerical System: Uses only numbers (e.g., 10-digit code where the first two digits represent the material type, the next two the size, etc.). Alphabetical System: Uses only letters (e.g., BR for Brass, ST for Steel). Alphanumeric System: Uses a combination of letters and numbers (most common and flexible). E. Kodak System (Short Note) The Kodak System (or Kodak Classification System) is a widely recognized method of codification. It is a numerical system that uses a block of numbers to classify items based on their nature, form, and use. It is highly systematic and hierarchical, allowing for easy expansion and classification of new items. 9. Write a short note on VED analysis & FSN analysis. (5 Marks) A. VED Analysis (Short Note) VED Analysis is a selective inventory control technique based on the criticality of the item to production. V (Vital): Items whose stock-out would immediately stop production or cause severe damage (e.g., critical spare parts). These require the highest level of control. E (Essential): Items whose stock-out would temporarily affect production or cause minor delays (e.g., important components). These require moderate control. D (Desirable): Items whose stock-out would not immediately stop production (e.g., low-cost consumables). These require minimal control. B. FSN Analysis (Short Note) FSN Analysis is a selective inventory control technique based on the consumption rate or movement of the item. F (Fast-moving): Items that are consumed quickly (high turnover). These require continuous monitoring and accurate forecasting. S (Slow-moving): Items that are consumed slowly (low turnover). These require periodic review to avoid overstocking. N (Non-moving): Items that have not been consumed for a long period (obsolete or surplus). These require immediate disposal action to free up capital and space. SECTION 4: Production Planning & Control (PPC) 1. What is GOLF analysis? Who is the head of the production department? What is function cost matrix? (5 Marks) A. GOLF Analysis GOLF Analysis is a technique used in Value Analysis (VA) to classify the functions of a product or service. It stands for: Good: Functions that are essential and provide good value. OK: Functions that are acceptable but could be improved. Low: Functions that provide low value and should be simplified or eliminated. Faulty: Functions that are unnecessary or poorly performed. B. Head of the Production Department The head of the production department is typically the Production Manager or Vice President of Operations/Manufacturing . C. Function Cost Matrix A Function Cost Matrix is a tool used in Value Analysis to relate the functions of a product to the cost of the components that perform those functions. Rows: List the functions (e.g., “Transmit Power,” “Provide Support”). Columns: List the components/parts (e.g., “Shaft,” “Bearing,” “Housing”). Cells: Contain the cost of the component that contributes to performing that specific function. Purpose: It visually highlights which functions are costing the most and helps identify areas where the cost is disproportionate to the function's worth. 2. What is value analysis (VA)? Explain the process of VA. State the advantages of value analysis. Write a short note on Value engineering. Write a short note on Test for value analysis. Write a short note on stages in value analysis. State the types of values. What is unnecessary cost in VA? State the condition in which VA must be applied. (10 Marks) A. Value Analysis (VA) Value Analysis (VA) is an organized, systematic study of the functions of a product or service with the aim of achieving the required function at the lowest total cost without reducing quality, reliability, or customer satisfaction. B. Process/Stages in Value Analysis (Job Plan) The VA process typically follows a structured job plan: Information Phase: Gather all facts about the product (cost, specifications, quantity, etc.). Function Analysis Phase: Define the basic and secondary functions using the verb-noun technique. Creative Phase: Brainstorm alternative ways to perform the basic function. Evaluation Phase: Analyze and select the most promising alternatives based on cost and feasibility. Recommendation Phase: Prepare a proposal for management. Implementation and Follow-up Phase: Implement the changes and verify the savings. C. Advantages of Value Analysis Cost Reduction: The primary advantage is the elimination of unnecessary costs. Product Improvement: Leads to simplification, standardization, and better material selection. Improved Profitability: Lower costs directly increase profit margins. Enhanced Creativity: Encourages a creative, cross-functional approach to problem-solving. D. Value Engineering (Short Note) Value Engineering (VE) is the application of the Value Analysis methodology to new products during the design and development stage. The goal is to prevent unnecessary costs from being built into the product in the first place, making it a proactive approach. E. Test for Value Analysis (Short Note) The Test for Value is a simple comparison used to identify potential areas for VA study: $Value = \frac{\text{Worth}}{\text{Cost}}$. If the Cost is significantly higher than the Worth (i.e., Value < 1), the item is a candidate for VA. The test involves asking critical questions like: What is it? What does it do? What does it cost? What else will do the job? What does that alternative cost? F. Types of Values Cost Value: The sum of all costs incurred to produce the product (material, labor, overhead). Exchange Value: The price the customer is willing to pay for the product. Use Value: The properties and qualities that make the product perform its function. Esteem Value: The properties and qualities that make the product desirable or attractive (e.g., brand name, aesthetics). G. Unnecessary Cost in VA Unnecessary Cost is the cost incurred for features, materials, or processes that do not contribute to the use value or exchange value of the product. It is the difference between the actual cost and the worth of the function. H. Condition in which VA must be applied VA should be applied when: The product cost is disproportionately high compared to its function (low value). The product is complex or uses non-standard materials. The product is experiencing high rejection rates or quality issues. The product is facing stiff competition in the market. 3. Define ERP. Draw and explain the ERP cycle. State its merits & demerits. (10 Marks) A. Enterprise Resource Planning (ERP) ERP is a business process management software that integrates all facets of an operation, including product planning, development, manufacturing, sales, and marketing, in a single database, facility, and user interface. B. ERP Cycle (Simplified Explanation) The ERP cycle represents the flow of information and processes across the integrated modules: Order Entry (Sales & Marketing): Customer places an order, which is entered into the system. Production Planning (Manufacturing): The system checks inventory and capacity, then generates a production plan (e.g., Master Production Schedule). Materials Requirement (Inventory/Purchasing): The system checks the Bill of Materials (BOM) and inventory to determine what needs to be purchased or produced. Procurement (Purchasing): Purchase orders are generated and sent to suppliers. Production Execution (Manufacturing): The production plan is executed, and work orders are tracked. Shipping & Invoicing (Logistics/Finance): Finished goods are shipped, and the invoice is automatically generated. Payment (Finance): The financial module records the transaction and updates the general ledger. Key Feature: All steps use and update the centralized database in real-time. C. Merits (Advantages) & Demerits (Disadvantages) of ERP Merits (Advantages) Demerits (Disadvantages) Integration: Seamless flow of information across all departments. High Cost: Initial cost of software, hardware, and consulting is very high. Real-Time Data: Provides accurate, up-to-date information for better decision-making. Implementation Time: Can take years to fully implement and stabilize. Standardization: Forces the organization to adopt industry best practices. Resistance to Change: Employees often resist new processes and system usage. Improved Customer Service: Faster response to customer queries and on-time delivery. Complexity: The system is highly complex and requires specialized IT staff. 4. What are the phases of PPC? What are the main elements of production planning & control? How does production planning differ from production control? What are the different types of production system? State the functions of production planning. (10 Marks) A. Phases of PPC PPC is divided into three main phases: Planning Phase (What, How, When): Determining the resources, methods, and sequence of operations (e.g., Routing, Scheduling). Action Phase (Doing): Putting the plan into effect (e.g., Dispatching). Control Phase (Checking): Monitoring performance and taking corrective action (e.g., Expediting/Follow-up). B. Main Elements of Production Planning & Control The main elements are the functions themselves: Routing, Loading, Scheduling, Dispatching, and Expediting (Follow-up) . C. Production Planning vs. Production Control Feature Production Planning Production Control Focus Future-oriented; deciding in advance what to produce, how, and when. Present and Past-oriented; ensuring the plan is executed and taking corrective action. Nature Mental/Intellectual activity (thinking). Executive/Action activity (doing and checking). Goal To establish the sequence and timing of operations. To ensure the production is carried out according to the plan. D. Different Types of Production System Based on Flow: Continuous Production: Mass production of standardized products (e.g., oil refining, car assembly). Intermittent Production: Production based on specific customer orders or batches (e.g., job shop, batch production). Based on Volume/Variety: Job, Batch, and Mass Production (as discussed in the previous solution). E. Functions of Production Planning Forecasting: Estimating future demand for products. Product Design: Specifying the product's features and components. Process Planning (Routing): Determining the sequence of operations. Capacity Planning: Determining the required capacity of machines and labor. Scheduling: Fixing the start and finish times for operations. 5. What is Job shop production? (5 Marks) Job Shop Production is a type of intermittent production system characterized by the manufacture of a variety of products in small quantities, each requiring a different sequence of operations. Key Features: High Variety, Low Volume: Products are custom-made to customer specifications. General Purpose Machines: Machines are flexible and can handle a variety of tasks. Functional Layout: Machines of the same type are grouped together (e.g., all lathes in one area). Skilled Labor: Requires highly skilled workers to handle diverse tasks. Example: Custom printing, specialized machine tool manufacturing. 6. What is the difference between production management & operation management? How is continuous production different from intermittent production system? State the objective of production management. Write a short note on batch production, mass production & flow production. Write a short note on product & process layout. What are the types of production? (10 Marks) A. Production Management vs. Operations Management Feature Production Management Operations Management Scope Narrower; primarily focused on the physical manufacturing of goods. Broader; covers both goods and services (e.g., banking, healthcare, manufacturing). Focus Efficiency in converting raw materials into finished goods. Effectiveness and efficiency in managing the entire transformation process. B. Continuous vs. Intermittent Production Feature Continuous Production Intermittent Production Product Standardized, uniform product. Diverse, custom-made products. Volume High volume. Low to medium volume. Flow Continuous, uninterrupted flow. Interrupted flow, based on specific orders. Layout Product Layout (Flow Line). Process Layout (Functional Layout). C. Objective of Production Management The main objective is to produce goods and services of the right quality, in the right quantity, at the right time, and at the minimum cost . D. Batch, Mass, and Flow Production (Short Note) Batch Production: Manufacturing products in batches or lots. Used when demand is moderate and products are somewhat standardized but require different operations (e.g., bakery). Mass Production: High-volume production of a single, standardized product using specialized equipment and assembly lines (e.g., car manufacturing). Flow Production: Synonymous with Mass Production or Continuous Production, characterized by a continuous, uninterrupted flow of materials through the production process. E. Product Layout vs. Process Layout (Short Note) Feature Product Layout (Flow Layout) Process Layout (Functional Layout) Arrangement Machines are arranged in the sequence of operations. Machines of the same type are grouped together. Product Type Standardized products (Mass/Continuous Production). Diverse products (Job/Batch Production). Flexibility Low flexibility. High flexibility. F. Types of Production Job, Batch, and Mass Production (as covered previously). 7. Explain the difference between production & productivity. What are the different methods of increasing productivity? (5 Marks) A. Production vs. Productivity Feature Production Productivity Definition The process of creating goods and services (Output). The ratio of output to input (Efficiency). Formula Total Output (e.g., 100 units). Output / Input (e.g., 10 units per hour). Focus Volume of goods produced. Efficiency of resource utilization. B. Methods of Increasing Productivity Technological Upgradation: Using advanced machinery, automation, and IT (e.g., ERP, CAD/CAM). Improved Methods and Processes: Implementing techniques like Value Analysis, JIT, and Lean Manufacturing to eliminate waste. Better Manpower Management: Training, motivation, job enrichment, and improving working conditions. Standardization and Simplification: Reducing variety and complexity in products and processes. Effective Materials Management: Minimizing inventory and ensuring timely supply of materials. 8. Define Scheduling. Explain critical ratio method of scheduling. (5 Marks) A. Scheduling Scheduling is the function of Production Planning and Control (PPC) that fixes the time and date when each operation is to be started and completed. It is the time-phasing of the production plan. B. Critical Ratio Method of Scheduling Concept: A dynamic scheduling technique used to determine the priority of jobs in a job shop environment. It is dynamic because the priority changes as the due date approaches or delays occur. Formula: $Critical Ratio (CR) = \frac{\text{Time Remaining until Due Date}}{\text{Work Remaining (Processing Time)}}$ Priority Rule: The job with the lowest Critical Ratio is the most critical and should be processed first. Interpretation: $CR $CR = 1$: Job is exactly on schedule. $CR > 1$: Job is ahead of schedule. 9. Define Bottlenecking. How it affects a production process & how we can remove bottlenecks from a production process? (5 Marks) A. Bottlenecking Bottlenecking refers to the situation where a specific resource (machine, work center, or labor) limits the throughput of the entire production system because its capacity is lower than the demand placed upon it. B. Effects on Production Process Increased WIP Inventory: Work-in-progress piles up before the bottleneck. Delayed Deliveries: The overall production rate is limited by the bottleneck's capacity. Reduced Throughput: The system's output rate is constrained. Increased Costs: Due to idle time at non-bottleneck stations and potential overtime at the bottleneck. C. Methods to Remove Bottlenecks Increase Capacity: The most direct solution (e.g., adding more shifts, purchasing a new machine). Process Improvement: Applying VA or Lean techniques to improve the efficiency of the bottleneck operation. Offload Work: Divert some of the bottleneck's work to other, non-bottleneck resources. Quality Control Before Bottleneck: Ensure that only high-quality work reaches the bottleneck to avoid wasting its limited capacity on defective parts. SECTION 5: Value Analysis & Cost Control 1. Discuss Kaizen 5S model in an industrial context? (5 Marks) A. Kaizen and 5S Kaizen: A Japanese term meaning “change for the better” or continuous improvement . It is a philosophy that involves all employees, from top management to the shop floor, in making small, incremental improvements on a continuous basis. 5S Model: A systematic methodology for workplace organization and standardization, which is a fundamental tool for implementing Kaizen. B. 5S Model in Industrial Context Japanese Term English Term Meaning in Industrial Context Seiri Sort Eliminate unnecessary items from the work area. Seiton Set in Order Organize the remaining items for easy access and retrieval. (A place for everything and everything in its place). Seiso Shine Clean the work area and equipment thoroughly. Seiketsu Standardize Establish procedures and schedules to maintain the first three S's. Shitsuke Sustain Make 5S a habit and a part of the organizational culture. C. Industrial Context Importance of 5S The 5S model leads to a safer, cleaner, and more efficient workplace, which reduces waste (especially Motion and Waiting) and is a prerequisite for advanced systems like JIT. 2. Define cost control in a production context? Discuss its importance & methods of cost control? (5 Marks) A. Cost Control in Production Context Cost Control is the practice of keeping the actual costs of production within the predetermined standards or budgets. It involves a continuous process of setting targets, measuring actual performance, comparing the two, and taking corrective action for any significant deviations (variances). B. Importance of Cost Control Profit Maximization: By minimizing costs, the profit margin on products is increased. Competitive Pricing: Allows the company to offer products at competitive prices without sacrificing profitability. Efficiency Measurement: Provides a benchmark for measuring the efficiency of various departments and processes. Informed Decision Making: Provides reliable cost data for decisions like pricing, make-or-buy, and product mix. C. Methods of Cost Control Budgetary Control: Establishing budgets for all activities and comparing actual expenditure against the budget. Standard Costing: Predetermining the cost of a product and analyzing the variances between standard and actual costs. Inventory Control: Using techniques like EOQ and ABC analysis to minimize inventory carrying and ordering costs. Cost Audit: Independent verification of cost accounting records to ensure accuracy and adherence to policy. Value Analysis/Engineering: Eliminating unnecessary costs from the product design or manufacturing process. 3. Explain the DARSIRT method of value analysis. (5 Marks) The DARSIRT method is a structured, seven-step approach to conducting a Value Analysis study: Data Collection: Gather all facts (cost, quantity, specifications, drawings) about the product or service. Analysis of Function: Define the basic and secondary functions using the verb-noun technique. Review of Alternatives: Brainstorm and generate creative alternatives to achieve the basic function. Selection of Alternatives: Evaluate the alternatives based on technical feasibility and cost, and select the best one. Implementation: Develop a plan to implement the selected alternative. Report: Document the findings, recommendations, and expected savings. Test/Follow-up: Monitor the implemented changes to ensure the expected value is realized and the quality is maintained. 4. Discuss MUDA management. Mention its type, cause, and elimination techniques. (5 Marks) MUDA is a Japanese term meaning waste or any activity that consumes resources without adding value to the customer. MUDA Management is the process of identifying and systematically eliminating these non-value-adding activities, which is the core principle of Lean Manufacturing. Types of MUDA (The 7 Wastes) Type of Waste Description Cause Elimination Technique Defects Errors requiring rework or scrap. Poor process control, lack of training. TQM, Poka-Yoke (Mistake-Proofing). Overproduction Producing more than is needed. Push system, inaccurate forecasts. JIT, Kanban (Pull System). Waiting Idle time for people or machines. Unbalanced line, poor scheduling. Line Balancing, Bottleneck Management. Non-utilized Talent Underutilizing employee skills. Poor management, lack of empowerment. Employee Involvement, Training. Transportation Unnecessary movement of materials. Poor plant layout. Cellular Layout, Optimized Layout. Inventory Excess raw materials, WIP, or finished goods. Large batch sizes, poor forecasting. JIT, EOQ, ABC Analysis. Motion Unnecessary movement by people. Poor workplace organization. 5S Methodology. Extra Processing Doing more work than required by the customer. Poor design, unclear specifications. Value Analysis, Process Simplification. SECTION 6: Recent Trends in Industrial Management 1. What is Supply chain management? Explain its characteristics. Why logistic is fundamental to successful supply chain management? (5 Marks) A. Supply Chain Management (SCM) SCM is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by the end customer. It involves coordinating and integrating the flow of materials, information, and finance both within and across companies. B. Characteristics of SCM Integration: Seamless integration of processes across multiple organizations (suppliers, manufacturers, distributors, retailers). Customer Focus: The entire chain is driven by the final customer's demand (pull system). Information Sharing: Reliance on accurate and timely sharing of information (e.g., demand forecasts, inventory levels). Long-Term Relationships: Focus on building collaborative, long-term relationships with key partners. C. Logistics as Fundamental to SCM Logistics (the movement and storage of goods) is fundamental because it is the physical mechanism that executes the SCM strategy. Execution: SCM plans the strategy; Logistics executes the delivery, warehousing, and transportation. Cost: Logistics costs (transportation and inventory) are a major component of the total supply chain cost. Efficient logistics is essential for achieving the cost reduction goals of SCM. Customer Service: The final delivery (the moment of truth for the customer) is a logistics function. 2. State the benefits & demerits of JIT production system. Define SMED. Discuss the importance of SMED in JIT system. State the latest concept of JIT technique of purchasing. Explain its scope & opportunities in Indian situation. (10 Marks) A. Benefits & Demerits of JIT Benefits (Merits) Demerits (Drawbacks) Reduced Inventory: Lower carrying costs and obsolescence risk. High Risk of Stock-out: No buffer stock means any disruption can halt production. Improved Quality: Low inventory exposes quality problems immediately. High Dependency on Suppliers: Requires highly reliable and geographically close suppliers. Reduced Space: Less space needed for storage. Increased Transportation Cost: Frequent, small deliveries can increase transport costs. Increased Flexibility: Quicker response to changes in demand. Requires Cultural Change: Needs total employee commitment and TQM implementation. B. SMED Definition and Importance SMED (Single-Minute Exchange of Die): A Lean manufacturing methodology for reducing the time it takes to complete equipment changeovers (setups). "Single-minute" refers to a setup time of less than 10 minutes. Importance in JIT: JIT requires production in small batches to minimize inventory. Small batches are only economical if the time and cost of changing over the equipment (setup time) are minimal. SMED is the enabler of small-batch production, which is the foundation of JIT. C. Latest Concept of JIT Technique of Purchasing The latest concept is Supplier Partnership/Strategic Sourcing . Focus: Moving away from transactional, price-based purchasing to collaborative, long-term relationships with a few certified suppliers. Key Features: Single sourcing, co-design/co-development, electronic data interchange (EDI), and frequent, small deliveries directly to the point of use. D. Scope & Opportunities in Indian Situation (JIT) Scope: High potential, especially in the automotive, electronics, and fast-moving consumer goods (FMCG) sectors, where global competition is intense. Opportunities: Cost Reduction: Significant opportunity to reduce high inventory carrying costs typical in Indian industries. Quality Improvement: JIT forces a focus on TQM, which is crucial for global competitiveness. Supply Chain Development: Encourages the development of a strong, reliable local supplier base. Challenges: Poor infrastructure (roads, ports) and unreliable power supply can disrupt the JIT flow. 3. What are the features of MS Project? (5 Marks) MS Project is a project management software program. Its key features include: Gantt Charts: Visual representation of the project schedule. Critical Path Method (CPM): Automatic calculation and display of the critical path. Resource Management: Tools for assigning resources (people, equipment) to tasks and managing resource allocation/leveling. Task Dependencies: Ability to link tasks (e.g., Finish-to-Start) to define the project logic. Baseline Management: Saving the original plan (baseline) for comparison with actual progress. Reporting: Generating various reports on project status, cost, and resource utilization. 4. Compare between ERP & SCM. (5 Marks) Feature ERP (Enterprise Resource Planning) SCM (Supply Chain Management) Scope Internal Focus; integrates all functions within the four walls of the enterprise. External Focus; integrates processes across multiple enterprises (suppliers, customers). Goal Optimize internal operations, data consistency, and resource utilization. Optimize the flow of goods and information across the entire supply chain. Data Single, centralized database for internal data. Requires data sharing and collaboration with external partners. Relationship SCM often relies on ERP data (e.g., inventory, production schedule) to function effectively. ERP is a foundational system; SCM is a strategic extension of ERP. 200+ IMPORTANT SHORT ANSWER QUESTIONS (SAQ) SECTION 1: Introduction & Management Fundamentals (SAQ 1-50) No. Question Answer 1 Define Organization. A social unit of people structured and managed to meet a need or pursue collective goals. 2 What is the difference between Strike and Lockout? Strike is initiated by employees; Lockout is initiated by the employer. 3 What is the primary focus of Industrial Management? Operational efficiency, production, and resource utilization within the industry. 4 What is the primary focus of Product Management? Strategic management of a product throughout its lifecycle, focusing on market success. 5 What is the main characteristic of a Line Organization? Direct vertical flow of authority (Chain of Command). 6 What is the main characteristic of a Functional Organization? Authority flows from functional specialists; high specialization. 7 Name the four steps in the process of creating an organization. Identification of work, Departmentalization, Assignment of Duties, Establishing Reporting Relationships. 8 Define Organizational Culture. The shared values, beliefs, and norms that govern behavior (the “personality"). 9 Define Organizational Climate. The shared perceptions and attitudes of employees about the organization (the "mood"). 10 Which is more stable: Culture or Climate? Organizational Culture. 11 What is a System in the context of IM? A set of interrelated and interdependent parts arranged to produce a unified whole. 12 What is an Open System? A system that interacts with its environment, exchanging inputs and outputs. 13 Define Management. The process of planning, organizing, leading, and controlling resources to achieve organizational goals. 14 Name the five main functions of management. Planning, Organizing, Staffing, Directing (Leading), Controlling. 15 What is the basic element of management related to resource utilization? Efficiency (doing things right). 16 What is the basic element of management related to goal achievement? Effectiveness (doing the right things). 17 Define Delegation of Authority. The downward transfer of authority from a superior to a subordinate. 18 What is the source of Authority? Formal position in the organization. 19 What is the source of Responsibility? Delegation of work/task. 20 In which direction does Authority flow? Downward (Superior to Subordinate). 21 In which direction does Responsibility flow? Upward (Subordinate to Superior). 22 Define Industrial Relations. The relationship between management and employees (or trade unions) in an industry. 23 Name one economic factor affecting Industrial Relations. Wages, benefits, or working conditions. 24 What is a Formal Organization? An organization established by management with defined roles and reporting relationships. 25 What is an Informal Organization? A network of personal and social relationships that arises spontaneously among employees. 26 What is the communication channel of the informal organization called? The Grapevine. 27 Define Job Satisfaction. The pleasurable emotional state resulting from the appraisal of one's job or job experiences. 28 Name one benefit of high employee satisfaction. Increased productivity, lower turnover, or lower absenteeism. 29 Define Job Evaluation. A systematic process of determining the relative worth of a job in an organization. 30 What is the main purpose of Job Evaluation? To establish a fair and equitable wage and salary structure. 31 Name one limitation of Job Evaluation. Subjectivity or high cost/time consumption. 32 Who is the Father of Scientific Management? F.W. Taylor. 33 What is the principle of ‘Unity of Command'? An employee should receive orders from only one superior. 34 What is the 'Scalar Chain'? The formal line of authority from the highest to the lowest rank. 35 What is 'Esprit de Corps'? Promoting team spirit and unity among employees. 36 What is MBO? Management by Objectives (Goal setting). 37 What is MBE? Management by Exceptions (Focus on deviations). 38 What is the main disadvantage of a Matrix Organization? Dual authority and potential conflict. 39 What is the main disadvantage of a Functional Structure? Functional silos and poor cross-functional coordination. 40 What is the role of Middle Management? Executing the plans and policies formulated by the top level. 41 What is the difference between a Line and a Staff function? Line functions directly contribute to the goal; Staff functions advise and support. 42 What is the 'Gantt Chart'? A horizontal bar chart used to visually represent a project schedule. 43 What is the main focus of the Classical Theories of Management? Efficiency and productivity. 44 What is the 'Gang Plank' concept? Direct communication between employees at the same level in emergencies (Fayol). 45 What is the purpose of the 'Controlling' function? To measure performance against standards and take corrective action. 46 What is a 'Divisional Organization'? Grouping activities based on product, customer, or geography. 47 What is the main factor affecting job satisfaction related to compensation? Pay and Benefits. 48 What is the term for the total time required to complete a job from start to finish? Lead Time or Throughput Time. 49 What is the main goal of the 'Organizing' function? To establish authority-responsibility relationships and structure. 50 What is the main purpose of a 'Dummy Activity' in a network diagram? To maintain the correct logical relationship between activities. SECTION 2: CPM & PERT (SAQ 51-80) No. Question Answer 51 What does PERT stand for? Program Evaluation and Review Technique. 52 What does CPM stand for? Critical Path Method. 53 Which network technique is probabilistic? PERT. 54 Which network technique is deterministic? CPM. 55 Define Critical Path. The longest sequence of activities in the network, determining the minimum project duration. 56 What is the Float (Slack) of an activity? The amount of time an activity can be delayed without delaying the entire project. 57 What is the float for activities on the Critical Path? Zero. 58 Name the three time estimates used in PERT. Optimistic ($t_o$), Pessimistic ($t_p$), and Most Likely ($t_m$). 59 Write the formula for Expected Time ($t_e$) in PERT. $t_e = (t_o + 4t_m + t_p)/6$. 60 What is 'Crashing' in project management? Shortening the project duration by injecting extra resources at an increased cost. 61 What is 'Cost Slope'? The cost incurred per unit of time saved by crashing an activity. 62 What is 'Updating' in a network? Revising the network and schedule based on actual progress. 63 What is an 'Event' (Node)? A point in time that marks the start or end of an activity, consuming no time. 64 What is an 'Activity' (Arrow)? A task or work element that consumes time and resources. 65 What is a Critical Activity? An activity that lies on the critical path (zero float). 66 What is a Non-Critical Activity? An activity that does not lie on the critical path (positive float). 67 What is the Z-score used for in PERT? To calculate the probability of completing the project by a specific scheduled time. 68 What is the 'Forward Pass' calculation used to determine? Earliest Start (ES) and Earliest Finish (EF) times. 69 What is the 'Backward Pass' calculation used to determine? Latest Start (LS) and Latest Finish (LF) times. 70 What is the main focus of CPM? Time-Cost Trade-off. 71 What is the main focus of PERT? Time uncertainty. 72 What is the main limitation of the basic CPM model? It assumes activity times are known with certainty (deterministic). 73 What is the significance of a negative float? It indicates that the project is already behind schedule. 74 What is the purpose of CVP Analysis? To examine the relationship between cost, volume, and profit. 75 What is the break-even point in CVP analysis? The sales volume where total revenue equals total cost (Profit = 0). 76 When should a Project Manager use a PERT chart? For novel, non-routine projects with uncertain activity times. 77 When should a Project Manager use a Gantt chart? For monitoring and tracking progress of routine projects. 78 What is Master Scheduling (MPS)? A plan specifying what final products are to be produced, when, and in what quantity. 79 Name one step basic to both PERT and CPM. Define activities, Establish sequence, Draw network, Estimate time, Determine critical path, or Control. 80 What is the formula for Variance ($\sigma^2$) in PERT? $\sigma^2 = ((t_p - t_o)/6)^2$. SECTION 3: Materials Management (SAQ 81-130) No. Question Answer 81 Define Material Management. Planning, organizing, and controlling the flow of materials from purchase to consumption. 82 Name two objectives of Material Management. Minimize material cost and ensure continuous supply. 83 Define Materials Handling. The movement, protection, storage, and control of materials throughout the process. 84 Write the formula for Reordering Level (ROL). $ROL = \text{Max Consumption} \times \text{Max Lead Time}$. 85 Write the formula for Minimum Stock Level. $ROL - (\text{Avg Consumption} \times \text{Avg Lead Time})$. 86 What does EOQ stand for? Economic Order Quantity. 87 What two costs does the EOQ model minimize? Ordering Cost and Carrying Cost (Holding Cost). 88 Write the EOQ formula. $EOQ = \sqrt{\frac{2AO}{C}}$. 89 Name one assumption of the EOQ model. Constant demand, constant lead time, or instantaneous replenishment. 90 What is 'Carrying Cost'? The cost of holding inventory (e.g., storage, insurance). 91 What is 'Ordering Cost'? The cost associated with placing a single order (e.g., administrative cost). 92 What is 'Safety Stock'? The minimum level of inventory held to guard against uncertainties. 93 What does MRP stand for? Materials Requirement Planning. 94 Name one input to the MRP system. Master Production Schedule (MPS), Bill of Materials (BOM), or Inventory Records File (IRF). 95 What is the main focus of MRP I? Materials and inventory planning (What materials are needed?). 96 What is the main focus of MRP II? Manufacturing resource planning (integrates capacity, finance, etc.). 97 Name one benefit of MRP. Reduced inventory levels or improved production scheduling. 98 Define Inventory Control. Ensuring the right quantity of supplies are maintained at the right time and cost. 99 What is the principle behind ABC Analysis? The Pareto Principle (70-80% value in 10-20% items). 100 What type of control is applied to 'A' category items? Tight control (frequent review). 101 What is the Fixed Order Quantity System (Q-System)? An order for a fixed quantity (EOQ) is placed when stock reaches ROL. 102 What is the Fixed Order Period System (P-System)? Inventory is reviewed at fixed intervals; order quantity varies. 103 Where is a Bin Card maintained? By the storekeeper at the storage location (bin). 104 Where is a Stores Ledger maintained? By the cost accounting department in the office. 105 What does a Bin Card record? Only quantity (receipts, issues, balance). 106 What does a Stores Ledger record? Both quantity and value. 107 What is the Two-Bin Model used for? Simple, visual inventory control for low-value items. 108 Define Store-Keeping. The function of receiving, storing, and issuing materials. 109 Name one function of store-keeping. Receipt, Storage, Issue, or Record Keeping. 110 What is the main advantage of Centralized Storing? Better control and lower operating costs. 111 What is the main advantage of Decentralized Storing? Faster access to materials by user departments. 112 Define Codification. Assigning a unique identification code to each item of material. 113 Name one advantage of Codification. Eliminates ambiguity or facilitates standardization. 114 Name the three basic steps of scientific codification. Simplification, Standardization, and Codification. 115 What is the Kodak System of codification? A numerical, hierarchical system of codification. 116 What does VED Analysis classify items based on? Criticality (Vital, Essential, Desirable). 117 What does FSN Analysis classify items based on? Consumption rate (Fast, Slow, Non-moving). 118 What is a Purchase Requisition (PR)? A formal request from a user department to the purchasing department. 119 What is a Purchase Order (PO)? A legal document issued by the buyer to the seller confirming the order details. 120 What is a Goods Received Note (GRN)? A document confirming the receipt and acceptance of materials. 121 What is the relationship between EOQ and total annual cost? At EOQ, Annual Ordering Cost = Annual Carrying Cost. 122 What is the main drawback of the Two-Bin System? Not suitable for high-value items or fluctuating demand. 123 What is Selective Inventory Control? Applying different control techniques to different items based on their importance. 124 What is the purpose of 'Simplification' in codification? Reducing the number of varieties of materials to the minimum necessary. 125 What is the main objective of inventory control regarding capital? To minimize the capital investment in inventory. 126 What is the formula for Average Inventory (with safety stock)? $(\text{EOQ}/2) + \text{Safety Stock}$. 127 What is the term for the cost of placing orders? Ordering Cost. 128 What is the term for the cost of storing inventory? Carrying Cost or Holding Cost. 129 What is the input to MRP that lists all components of a product? Bill of Materials (BOM). 130 What is the main benefit of scientific store-keeping? Minimizes wastage and reduces pilferage. SECTION 4: Production Planning & Control (SAQ 131-170) No. Question Answer 131 What does GOLF Analysis stand for? Good, OK, Low, Faulty (used in Value Analysis). 132 What is a Function Cost Matrix? A tool relating product functions to the cost of components performing them. 133 Define Value Analysis (VA). Systematic study to achieve the required function at the lowest total cost. 134 What is the formula for Value? Value = Function/Cost. 135 What is 'Worth' in VA? The lowest possible cost to reliably accomplish the required function. 136 What is Value Engineering (VE)? Applying VA principles to new products during the design stage. 137 Name one type of value. Cost Value, Exchange Value, Use Value, or Esteem Value. 138 What is 'Unnecessary Cost' in VA? Cost incurred for features that do not contribute to use or exchange value. 139 What does ERP stand for? Enterprise Resource Planning. 140 Name one merit of ERP. Integration or Real-Time Data. 141 Name one demerit of ERP. High Cost or Long Implementation Time. 142 Name the three phases of PPC. Planning, Action, and Control. 143 Name the four main elements (functions) of PPC. Routing, Loading, Scheduling, and Dispatching. 144 What is 'Routing' in PPC? Determining the path and sequence of operations for a product. 145 What is ‘Loading' in PPC? Assigning work to specific machines or work centers. 146 What is 'Scheduling' in PPC? Fixing the time and date when each operation is to be started and completed. 147 What is 'Dispatching' in PPC? The physical start of the production process (issuing orders). 148 What is the difference between Production Planning and Production Control? Planning is future-oriented (deciding); Control is present-oriented (checking). 149 What is Job Shop Production? Manufacturing custom-made products in low volume and high variety. 150 What is Batch Production? Manufacturing products in lots or groups (medium volume/variety). 151 What is Mass Production? Manufacturing standardized products in high volume and low variety. 152 What is the main difference between Production Management and Operations Management? Production Management focuses on goods; Operations Management covers goods and services. 153 What is Continuous Production? Uninterrupted flow of materials for standardized products. 154 What is Intermittent Production? Production based on specific customer orders or batches. 155 What is the main objective of Production Management? To produce goods of the right quality, quantity, time, and cost. 156 What is a Product Layout? Machines are arranged in the sequence of operations (Flow Layout). 157 What is a Process Layout? Machines of the same type are grouped together (Functional Layout). 158 Define Productivity. The ratio of output to input (Efficiency). 159 Name one method of increasing productivity. Technological Upgradation or Improved Methods/Processes. 160 What is the Critical Ratio formula? Time Remaining until Due Date / Work Remaining. 161 What does a Critical Ratio (CR) less than 1 indicate? The job is behind schedule and should be prioritized. 162 Define Bottlenecking. A resource that limits the throughput of the entire production system. 163 Name one effect of a bottleneck. Increased Work-In-Progress (WIP) inventory or delayed deliveries. 164 Name one way to remove a bottleneck. Increase capacity or offload work. 165 What is the DARSIRT method used for? Structured process for Value Analysis. 166 What is the primary purpose of the 'Creative Phase' in VA? Brainstorming alternative ways to perform the basic function. 167 What is the main goal of Cost Control? To keep actual costs within predetermined standards or budgets. 168 What is 'Standard Costing'? Predetermining the cost of a single unit for variance analysis. 169 What is 'Budgetary Control'? Comparing actual expenditure against established budgets. 170 What is the waste related to unnecessary movement by people? Motion (one of the 7 Wastes). SECTION 5: Value Analysis, Cost Control & Recent Trends (SAQ 171-205) No. Question Answer 171 What is Kaizen? A Japanese term meaning continuous improvement. 172 Name the five S's of the 5S model. Seiri, Seiton, Seiso, Seiketsu, Shitsuke (Sort, Set in Order, Shine, Standardize, Sustain). 173 What is the purpose of 'Seiri' (Sort)? Eliminate unnecessary items from the work area. 174 What is the purpose of ‘Seiton'(Set in Order)? Organize items for easy access and retrieval. 175 What is MUDA? A Japanese term for waste (non-value-adding activity). 176 Name two of the 7 Wastes (MUDA). Overproduction, Waiting, Defects, Inventory, Motion, Transportation, Extra Processing. 177 What is the waste of 'Overproduction'? Producing more than is immediately needed or demanded. 178 Define Supply Chain Management (SCM). Management of the network of businesses involved in providing a product/service to the end customer. 179 Name one characteristic of SCM. Integration, Customer Focus, or Information Sharing. 180 Why is Logistics fundamental to SCM? Logistics is the physical mechanism that executes the SCM strategy (movement and storage). 181 What does JIT stand for? Just-In-Time. 182 What is the core idea of JIT production? Producing or procuring items only when they are needed (pull system). 183 Name one benefit of JIT. Reduced inventory costs or improved quality. 184 Name one demerit of JIT. High risk of stock-out or high dependency on suppliers. 185 What does SMED stand for? Single-Minute Exchange of Die. 186 What is the importance of SMED in JIT? It enables small-batch production by minimizing setup time. 187 What is the latest concept of JIT purchasing? Supplier Partnership/Strategic Sourcing. 188 What is a 'Kanban' system? A signaling system used in JIT to authorize production or movement of materials. 189 What is MS Project? A project management software used for scheduling and resource allocation. 190 Name one feature of MS Project. Gantt Charts, CPM calculation, or Resource Management. 191 What is the difference in scope between ERP and SCM? ERP is internal; SCM is external (across multiple enterprises). 192 What is the relationship between ERP and SCM? SCM is a strategic extension that relies on ERP data. 193 What is the main purpose of the 'Plan' element of SCM? Developing a strategy for managing all resources to meet customer demand. 194 What is the 'Return' element of SCM? Managing the reverse flow of defective or excess products. 195 What is the main benefit of ERP's 'Real-Time Operation'? Provides management with current information for timely decision-making. 196 What is the term for the process of reducing the time required to change over machines? Setup Time Reduction (SMED). 197 What is the main risk mitigated by efficient SCM? Supply disruptions and quality issues. 198 What is the main drawback of a traditional 'Push System'? High inventory levels based on forecasts. 199 What is the main advantage of a 'Pull System' (JIT)? Production is driven by actual demand, minimizing inventory. 200 What is the waste related to unnecessary movement of materials? Transportation. 201 What is the primary purpose of the 'Evaluation Phase' in VA? To analyze and select the most promising alternatives based on cost and feasibility. 202 What is the main purpose of 'Baseline Setting' in MS Project? Saving the original project plan to compare against actual progress. 203 What is the main challenge for JIT implementation in India? Poor infrastructure and unreliable power supply. 204 What is the key feature of ERP that forces organizations to streamline processes? Built-in industry best practices. 205 What is the main goal of the 'Implementation Phase' in VA? To put the selected cost-saving changes into effect.