ANSWER KEY

PRODUCTION AND OPERATIONS MANAGEMENT

UNIT – I
Part - A
1. What is Production?
Production is a process of combining various material inputs and immaterial inputs (plans,
know-how) in order to make something for consumption (the output). It is the act of
creating output, a good or service which has value and contributes to the utility of
individuals.
2. Define Production Management.
E.S. Buffa defines production management as, “Production management deals with
decision making related to production processes so that the resulting goods or services are
produced according to specifications, in the amount and by the schedule demanded and out
of minimum cost.”
3. What do you mean by productivity?
Productivity describes various measures of the efficiency of production. A productivity
measure is expressed as the ratio of output to inputs used in a production process, i.e.
output per unit of input. Productivity is a crucial factor in production performance of
firms
4. State any two objectives of Production Management.
 To maintain inventory at such levels that there may not be the blockage of working
capital due to excessive stock and the production may not hamper due to
unavailability of stock.
 To ensure uninterrupted supply of goods and services in right quantity at right time
and at right place.
5. Write short notes on the scope of Production Management
The scope of production management based on the interrelationship of 2 aspects
 Structural Aspects
 Functional Aspects
6. What is Routing?
Routing means deciding the path of work and the sequence of operations. The main
objective of routing is to find out the best and most economical sequence of operations to
be followed in the manufacturing process. Routing ensures a smooth flow of work.
7. What is Scheduling?
Scheduling means to decide when to start and when to complete a particular production
activity
8. Give brief notes on Production Planning.
Production planning is the planning of production and manufacturing modules in a
company or industry. It utilizes the resource allocation of activities of employees,
materials and production capacity, in order to serve different customers.
9. What is Inventory Control?
The fact or process of ensuring that appropriate amounts of stock are maintained by a
business, so as to be able to meet customer demand without delay while keeping the costs
associated with holding stock to a minimum
10. What do you mean by Batch Production?
A manufacturing process in which components or goods are produced in groups (batches)
and not in a continuous stream.
11. Give notes on Flow production
Flow production (often known as mass production) involves the use of production lines
such as in a car manufacturer where doors, engines, bonnets and wheels are added to a
chassis as it moves along the assembly line. It is appropriate when firms are looking to
produce a high volume of similar items.
12. What do you mean by Quality and Cost Control?
Customers all over the world want good-quality products at cheapest prices. To satisfy this
demand of consumers, the production manager must continuously improve the quality of
his products. Along with this, he must also take essential steps to reduce the cost of his
products.
13. What is Job Production?
Job production, sometimes called jobbing or one-off production, involves producing
custom work, such as a one-off product for a specific customer or a small batch of work in
quantities usually less than those of mass-market products.
14. How Production is related with Marketing?
The object of production activity is to provide inputs which include raw material men,
machine, operating supplies, semi-finished products, water, power and place etc., the inputs
are assembled and changed to finished goods thereby creating value. The finished products
and services are available so that the marketing functions can be utilized to provide sell
and distribute them. Thus production and marketing are spate yet interdependent functions
in business
15. How Production is related with HR?
The human resource function in any business organization is mainly concerned with all
matters related to manpower as an input system of business organization.

Part – B

16. Describe the Objectives of Production Management.

 To produce the goods as per the quality demanded by the customers - (3)
 To sustain as well as to increase the level of customer satisfaction. - (3)
 To make improvement in existing goods and services by regular innovations. - (3)
 To maintain inventory - (3)
 To produce the goods as per market demand. - (2)
 To keep proper maintenance of plant and machinery - (2)

17. Elaborate the Functions of Production Management.

 Selection of Product and Design, - (2)
 Selection of Production Process, - (2)
 Selecting Right Production Capacity, - (2)
 Production Planning, - (2)
  Production Control, - (2)
 Quality and Cost Control, - (2)
 Inventory Control, - (2)
 Maintenance and Replacement of Machines- (2)

18. Describe the Relationship of Production with other Functional areas.

 Finance and Production – (4)
 Marketing and Production – (4)
 HR and Production – (4)
 MIS and Production – (4)

19. Describe the Process of Production.

 Job production. – (5)
 Batch production. – (5)
 Flow production. – (5)
Diagram – (1)
20. Illustrate the Concept of Production.
 Introduction - (1)
 Input - (4)
 Transformation - (4)
 Output - (4)
 Diagram - (3)
21. Discuss the scope of Production Management with suitable examples.

 Location of Facilities - (2)

 Plant Layout & material handling - (2)
 Product Design - (2)
 Process Design. - (2)
 Production Planning & Controlling ( P.P.C) - (2)
 Quality Control - (2)
 Material Handling - (2)
 Maintenance Management - (2)

UNIT – II
Part - A
1. What is Plant Location?
Plant location refers to the choice of the region where men, materials, money, machinery
and equipment are brought together for setting up a business or factory. A plant is a place
where the cost of the product is kept to low in order to maximize gains.
2. What do you mean by Virtual Factory?
Many firms based in USA and UK in the service sector and in the manufacturing sector
often out sources part of their business processes to foreign locations such as India. Thus,
instead of one’s own operations, a firm could use its business associates’ operations
facilities. The Indian BPO firm is a foreign-based company’s ‘virtual service factory’.
3. What do you mean by Virtual Proximity?
With the advance in telecommunications technology, a firm can be in virtual proximity to
its customers. For a software services firm much of its logistics is through the information
/ communication pathway. Many firms use the communications highway for conducting a
large portion of their business transactions.
4. State any two Advantages of Urban Location.
  Well connected by rail, road and communication network such as internet, fax,
email, telephone line etc.
 It is easy to locate and retain professional manager and engineer.
5. State any two Advantages of Rural Location.
 Cheaper and ample availability of site
 Less turnover of labour because of limited mobility.
 Scope for expansion and diversification.
6. State any two Advantages of Sub - Urban Location.
 Land available at cheaper rate compared to urban location
 Infrastructure facilities are developed by promotional agencies
 Because of nearness to city availability of skilled manpower
7. What is need for Global Location?
Because of globalization, multinational corporations are setting up their organizations in
India and Indian companies are extending their operations in other countries.
8. Write any five factors influencing the Plant Location.
 Availability of Raw materials
 Proximity to market
 Availability of Infrastructure facilities
 Availability of Skilled Work force
 Nearness to supporting Industries
9. What are the problems faced while selecting the plant lactation?
 Business Climate
 Total Cost
 Quality of Labour
 Suppliers
 Political Risk
 Environmental Regulations
10. What is Plant Layout?
Plant layout is a mechanism which involves knowledge of the space requirements for the
facilities and also involves their proper arrangement so that continuous and steady
movement of the production cycle takes place
11. Write any five factors influencing the Plant Layout.
 Policies of Management
 Plant Location
 Nature of the Product
 Volume of Production
 Availability of Floor Space
12. State any two principles of Plant Layout
 A plant layout is the one which is able to integrate its workmen, materials
machines in the best possible way.
 A plant layout is the one which sees very little or minimum possible movement of
materials during the operations
13. Write any two objectives of Good Plant Layout?
 Providing comfort to the workers and catering to workers taste and liking
 Giving good and improved working conditions
14. State the types of Plant Layout?
 Product / Line Layout
 Process / Functional Layout
 Fixed Position Layout
15. What is syntactic process?
Under this process two or more materials are mixed to get a product. For example, in the
manufacture of cement, lime stone and clay are mixed.

Part – B

16. Elaborate the factors influencing Plant Location.

 Availability of Raw materials – (2)
  Proximity to market – (2)
 Availability of Infrastructure facilities – (2)
 Availability of Skilled Work force – (2)
 Nearness to supporting Industries – (2)
 Investor friendly attitude – (2)
 Good Industrial Relation – (2)
 Social Infrastructure – (2)

17. Describe the need for selecting a suitable Plant Location.

 While Starting a new Organization - (5)
- Identification of region
- Choice of a site within a region
 In case of Location choice for existing organization - (6)
- Plant manufacturing distinct products
- Manufacturing plants suppling to a specific market area
- Plant divided on the basis of process or stages in manufacturing
- Plant emphasizing flexibility
 In case of Global Location - (5)
- Virtual Proximity
- Virtual Factory

18. Describe the advantages of Urban, Semi Urban and Rural Location.
 Advantages of Urban Location - (6)
 Advantages of Semi – Urban Location - (4)
 Advantages of Rural Location - (6)

19. Elaborate the factors influencing Plant Layout.

 Policies of Management - (2)
 Plant Location - (2)
 Nature of the Product - (2)
  Volume of Production - (3)
 Availability of Floor Space - (2)
 Nature of Manufacturing Process - (3)
 Repairs and Maintenance of Equipment’s and Machines - (2)

20. Expalin the Types of Layout.

 Product / Line Layout - (4)
- Diagram - (2)
 Process / Functional Layout - (4)
- Diagram - (2)
 Fixed Position Layout - (4)

21. What is process Layout? What are the advantages and limitations of Process Layout?
Process Layout - (3)

Advantages of Process Layout

1. Lesser Investment in Machines and Equipment -(1)

2. Lower Overhead Costs -(1)

3. Effective Supervision -(1)

4. Maximum Use of Machines -(1)

5. Greater Flexibility -(1)

6. Less interruption in Work Schedules -(1)

7. Possibility of Division of Labour and Specialization -(1)

Disadvantages of Process Layout

1. Larger Floor Area -(1)

2. High Costs of Handling -(1)

3. More Accumulation of Work -(1)

 4. Longer Time for Processing -(1)

5. Frequency of Inspection -(1)

6. Difficulty in Production Control -(1)

UNIT – III
Part - A
1. What is Production Planning?
Production planning is the planning of production and manufacturing modules in a
company or industry. It utilizes the resource allocation of activities of employees, materials
and production capacity, in order to serve different customers.
2. What do you mean by Dispatching?
Dispatching is the transition from planning phase to action phase. In this phase, the worker
is ordered to start manufacturing the product. Dispatching involves the actual granting of
permission to proceed according to the plans already laid down. Dispatching is an
important step as it translates production plants in to actual production.
3. What do you mean by Maintenance Management?
Maintenance Management shall be defined as the collection of activities which coordinate,
direct, and track the functions that maintain the equipment, tools and related assets to
ensure their availability for manufacturing and ensure scheduling for reactive, periodic,
preventive, or proactive maintenance.
4. Write brief notes on Maintenance Scheduling.
Maintenance Scheduling is a list of predetermined maintenance actions, carried out at
regular time interval, aimed at the prevention of breakdowns. It has been proven again
and again that periodic ongoing repair leads to asset deterioration.
5. List the types of Maintenance.
 Corrective Maintenance
 Preventive maintenance
 Predictive maintenance
 Zero Hours maintenance
 Periodic Maintenance
6. What is Zero Hour Maintenance?
The set of tasks whose goal is to review the equipment at scheduled intervals before
appearing any failure, either when the reliability of the equipment has decreased
considerably so it is risky to make forecasts of production capacity. This review is based
on leaving the equipment to zero hours of operation, that is, as if the equipment were new.
These reviews will replace or repair all items subject to wear. The aim is to ensure, with
high probability, a good working time fixed in advance.
7. State any two benefits of Production Planning.
 Organization can deliver a product in a timely and regular manner
 Supplier are informed well in advance for the requirement of raw materials
8. Write the factors affecting production planning and control.
 Market Forecast
 Sales order
 Standard Process Sheet
 Load Chart
 Project Planning Method
9. What is Market forecast?
Market Forecast indicate future trends in demand for manufacture and products. Work
shifts policies, plans for an increase or decrease in manufacturing activity are based upon
the market forecast and in turn affect the production planning and control
10. What is Routing?
Routing lays down the flow of work in the plant. Taking from raw material to the finished
product, routing decides the path and sequence of operations to be performed on the job
from one machine to another.
11. What do you mean by Index Method?
Index method is used for the purpose of the loading and also for allocating the different
jobs to the different machines. Generally, orders are assigned on the basis of the “first
come first assigned” method.
12. List the types of Scheduling.
 Forward operations Scheduling
 Backward operations Scheduling
13. Write brief notes on Bill of Materials?
After proper analysis of the product the quality and quantity of materials required is
determined. From this proforma the quantity of material required for each part is known
and accordingly can be procured. Some firms prepare separate lists for finished
components and raw materials. To know-how much material is to be purchased or procured
the amount of materials in the stores should be known.
14. State the objectives of Production Control.
 It regulates inventory management
 Organize the production schedules
 Optimum utilization of resources and production process
15. What is Critical Path Analysis?
The critical path method, or critical path analysis, is an algorithm for scheduling a set of
project activities. It is commonly used in conjunction with the program evaluation and
review technique.

Part – B

16. Describe the Types of Maintenance Management

Introduction - (1)
 Corrective Maintenance - (3)
 Preventive maintenance - (3)
 Predictive maintenance - (3)
 Zero Hours maintenance - (3)
 Periodic Maintenance - (3)

17. Elaborate the Preventive measures for Breakdown

Break Down Introduction - (1)
- Regular Maintenance - (3)
- Avoid overworking of machines and equipment’s - (3)
- Storage and Cleaning - (3)
 - Through knowledge on operator’s manual - (3)
- Always Prepared - (3)

18. Describe the Factors affecting Production Planning Control

Introduction to Production Planning and Control - (1)
- Market Forecast - (3)
- Sales order - (3)
- Standard Process Sheet - (3)
- Load Chart - (3)
- Project Planning Method - (3)

19. Describe the Routing Procedure.

- Make or Buy Decision - (3)
- Bill of Material - (2)
Diagram - (1)
- Prepare Operation Sheet and Route Sheet - (2)
Diagram - (1)
- Determining Lot size - (3)
- Describing Standard Scrap - (3)
- To Provide necessary information - (1)

20. Describe the methods used for the operations Scheduling.

- Johnsons two machine algorithm - (4)
- Index method - (4)
- Critical path analysis - (4)
- Critical ratio Scheduling - (4)

21. Explain the various types of Scheduling with suitable example.

Introduction - (1)
 Long-term Scheduling - (3)
 Medium-term Scheduling - (3)
  Short-term Scheduling - (3)
 Non - Preemptive Scheduling - (3)
 Preemptive Scheduling - (3)

UNIT – IV
Part - A
1. What is Work Study?
Work study is a means of enhancing the production efficiency (productivity) of the firm by
elimination of waste and unnecessary operations. It is a technique to identify non-value
adding operations by investigation of all the factors affecting the job.
2. What do you mean by Productivity?
Productivity is the quantitative relation between what we produce and we use as a resource
to produce them, i.e., arithmetic ratio of amount produced (output) to the amount of
resources (input).
3. List any three advantages of Work Study.
 It helps to achieve the smooth production flow with minimum interruptions.
 It helps to reduce the cost of the product by eliminating waste and unnecessary
operations.
 Better worker-management relations.
4. Write brief notes on Method study.z
Method study enables the industrial engineer to subject each operation to systematic
analysis. The main purpose of method study is to eliminate the unnecessary operations and
to achieve the best method of performing the operation
5. List the Objectives of Method Study.
 Present and analyse true facts concerning the situation.
 To examine those facts critically
 To develop the best answer possible under given circumstances based on critical
examination of facts.
6. State any two Scope of Method Study.
 To smoothen material flow with minimum of back tracking and to improve layout
 To improve the working conditions and hence to improve labour efficiency.
7. What is Work Measurement?
Work measurement is also called by the name ‘time study’. Work measurement is
absolutely essential for both the planning and control of operations. Without measurement
data, we cannot determine the capacity of facilities or it is not possible to quote delivery
dates or costs.
8. How do you ascertain Productivity?
Productivity can be ascertaining by:
Productivity = Output / Input
9. What do you mean by total productivity measure?
It is based on all the inputs. The model can be applied to any manufacturing organization
or service company.
Total tangible Output
Total Productivity =
Total tangible Input

10. What do you mean by partial productivity measure?

Depending upon the individual input partial productivity measures are expressed as:
Total Output
Partial Productivity =
Individual Input

11. What is micro motion study?

Micro-motion study provides a technique for recording and timing an activity. It is a set of
techniques intended to divide the human activities in a groups of movements or micro-
motions and the study of such movements helps to find for an operator one best pattern of
movements that consumes less time and requires less effort to accomplish the task.
12. What is Time Study?
Work measurement technique for recording the times and rates of working for the elements
of a specified job carried out under specified conditions and for analyzing the data so as to
determine the time necessary for carrying out the job at the defined level of performance.
In other words, measuring the time through stop watch is called time study.
13. What is Work Sampling?
A technique in which a large number of observations are made over a period of time of one
or group of machines, processes or workers. Each observation records what is happening
at that instant and the percentage of observations recorded for a particular activity, or delay,
is a measure of the percentage of time during which that activities delay occurs.
14. What do you mean by PMTS?
A work measurement technique whereby times established for basic human motions
(classified according to the nature of the motion and conditions under which it is made)
are used to build up the time for a job at the defined level of performance. The most
commonly used PMTS is known as Methods Time Measurement (MTM).
15. What is Syntactic Data?
A work measurement technique for building up the time for a job or pans of the job at a
defined level of performance by totaling element times obtained previously from time
studies on other jobs containing the elements concerned or from synthetic data.

Part – B

1. Discuss the steps involved in method study.

- Select - (2)
- Record - (2)
- Examine - (2)
- Develop - (2)
- Evaluate - (2)
- Define - (2)
- Install - (2)
- Maintain - (2)

2. Discuss the principles of motion study.

Motion Study Introduction - (1)
- Use of Human Body - (5)
 - Arrangement of Work Space - (5)
- Design of tools and Equipment’s - (5)

3. Discuss the steps in making time study.

- Select - (2)
- Define - (2)
- Obtain and Record - (2)
- Extend - (2)
- Measure - (2)
- Compute - (2)
- Determine - (2)
Chart – Diagram - (2)

4. Discuss the various techniques of work measurement.

Introduction Work Measurement - (1)
- Time study (stop watch technique), - (3)
- Synthesis, - (3)
- Work sampling, - (3)
- Predetermined motion and time study, - (3)
- Analytical estimating. - (3)

5. Discuss different types of charts and diagrams used in methods study.

Charts - (10)
 Macro Motion Chart - (8)
o Operation Process chart
o Flow Process Chart
o Two handed process chart
o Multiple activity chart
 Micro Motion Chart - (2)

Diagrams - (6)
  Flow Diagram - (3)
 String Diagram - (3)

6. Explain the selection of the job for Method Study.

The job should be selected for the method study based upon the following considerations

Introduction -(1)

1. Economical Aspect - (5)

2. Technical Aspect - (5)
3. Human Aspect - (5)

UNIT – V
Part - A
1. What is Operations Management?
Operations management is an area of management concerned with designing and
controlling the process of production and redesigning business operations in the production
of goods or services.
2. Write the Objectives of Operations Management?
 Producing the right kind of goods and services that satisfy customers’ needs
(effectiveness objective).
 Maximizing output of goods and services with minimum resource inputs
(efficiency objective).
 Ensuring that goods and services produced conform to pre-set quality specifications
(quality objective).
3. List the Scope of OM
The scope of operations management based on the interrelationship of three aspects,
namely:
 Structural aspects, in the form of input that will be transformed according to criteria of
the desired products, machinery, equipment, formulas and models.
  Functional aspects, namely the link between the component input, with inter
relationship of the planning, implementation, control, and improvements to obtain
optimum performance, so that operations can be run continuously.
 Environmental aspects, is the tendency that occurs outside the system, such as
community, government, technology, economics, political, social, cultural,
demonstrated ability to adapt.
4. What do you mean by Product?
A product is anything that can be offered to a market that might satisfy a want or need. In
manufacturing, products are bought as raw materials and sold as finished goods.
5. What is Service?
Operations management for services has the functional responsibility for producing the
services of an organization and providing them directly to its customers. It specifically deals
with decisions required by operations managers for simultaneous production and
consumption of an intangible product
6. State the difference between Product and Service.

Product Service

A product is tangible, it is physical and can A service is intangible, can only be felt and
be held, seen and movable not touched

Value of service is offered by the service

Product value is derived by the customer
provider

Customer care forms critical component of

Customer care of the product is limited
marketing a service

A service is perishable and cannot be

A product can be stored for future use
stored for later use or sale

7. What is TQM?
Total quality management consists of organization-wide efforts to install and make
permanent a climate where employees continuously improve their ability to provide on
demand products and services that customers will find of particular value.
8. Give any three factors influencing TQM.
  Quality Improvement Culture
 Continuous Improvement in Process
 Effective Control
9. What is Quality Circle?
A quality circle or quality control circle is a group of workers who do the same or similar
work, who meet regularly to identify, analyze and solve work-related problems.
10. What is Quality Control?
Quality control, or QC for short, is a process by which entities review the quality of all
factors involved in production. ISO 9000 defines quality control as "A part of quality
management focused on fulfilling quality requirements"
11. What is Quality Assurance?
Quality assurance (QA) is a way of preventing mistakes and defects in manufactured
products and avoiding problems when delivering solutions or services to customers; which
ISO 9000 defines as "part of quality management focused on providing confidence that
quality requirements will be fulfilled".
12. State any two functions of OM
 Product selection and design
 Process selection and planning

13. What is Cost Reduction?

Cost reduction is the process used by companies to reduce their costs and increase their
profits. Depending on a company’s services or product, the strategies can vary. Every
decision in the product development process affects cost
14. What is Cost Control?
Cost control is the practice of identifying and reducing business expenses to increase
profits, and it starts with the budgeting process. A business owner compares actual results
with the budgeted expectations, and if actual costs are higher than planned, management
takes action.
15. What do you mean by Capacity Planning?
Capacity planning is the process of determining the production capacity needed by an
organization to meet changing demands for its products.
 Part – B

16. Describe the Functions of Operations Management.

Inroduction - (2)
 Product selection and design - (2)
 Process selection and planning - (2)
 Facilities (Plant) location - (2)
 Facilities (Plant) layout and materials handling - (2)
 Capacity Planning - (1)
 Production Planning and Control (PPC) - (1)
 Inventory control - (1)
 Quality assurance and control: - (1)
 Work-study and job design - (1)
 Maintenance and replacement - (1)

17. Describe the Factors influencing TQM.

Introduction - (1)
 Commitment and Understanding from Employees - (3)
 Quality Improvement Culture - (3)
 Continuous Improvement in Process - (3)
 Focus on Customer Requirements - (3)
 Effective Control - (3)

18. Describe the Scope and Importance of OM.

Importance of operations management - (10)

Operation management is a process that involves planning, organizing, managing, controlling

and supervising the production and manufacturing processes. The major aim of an operation
manager is to ensure timely delivery of the products and to successfully turn the raw materials
into the finished products (input to output). Operations Management plays a vital role to run any
project successfully. Its benefits include:

 Operation management involves similar management for every industry or business

irrespective of their nature of the operation. Planning, organizing, staffing, monitoring
controlling, directing and motivating are its significant elements. Operation management
is obligatory for organizations to manage the daily activities seamlessly. With its help, an
organization is able to make good use of its resources like labor, raw material, money and
other resources.
 Operation Management is important to improve the overall productivity. The ratio of
input to output is termed as productivity. It gives a measure of the efficiency of the manager
as well as the employees. Since the discipline focuses on using the available resources in
the best possible way to achieve end goals, so it improves the overall productivity.
 Operation management is the management of the various business activities that take
place within an organization and contributes in making the products to align with
customer’s requirements. Operation management is the heart of an organization as it
controls the entire operation If the products are made catering to the needs of the customers
then, they’ll be sold at a rapid rate.
 Under operation management, there is the optimum utilization of resources leading to
enormous profits of the organization. The efforts of the employees and the various raw
materials are efficiently utilized and converted into the services and goods required by the
organization. Operation management plays a crucial role in an organization as it handles
issues like design, operations, and maintenance of the system used for the production of
goods.
 Earlier everyone believed that the operation management was not that important for the
organization, but later on, it was discovered that it is actually important for the functioning
of the organization. It was found that the manufacturing of raw materials to make the goods
and selling them along with management of sales is necessary, and this is done efficiently
by managing the operations.
Scope - (6)

1. Structural aspects, in the form of input that will be transformed according to criteria of the
desired products, machinery, equipment, formulas and models.
2. Functional aspects, namely the link between the component input, with inter relationship
of the planning, implementation, control, and improvements to obtain optimum
performance, so that operations can be run continuously.
3. Environmental aspects, is the tendency that occurs outside the system, such as community,
government, technology, economics, political, social, cultural, demonstrated ability to
adapt.

19. Elaborate the purpose of Quality Control.

 Encourages quality consciousness - (2)
 Satisfaction of consumers - (2)
 Reduction in production cost - (2)
 Most effective utilisation of resources - (2)
 Reduction in inspection costs - (1)
 Increased goodwill - (1)
 Higher morale of employees - (1)
 Improved employer-employee relations - (1)
 Improved techniques and methods of production - (1)
 Effective advertisement - (1)
 Facilitates price fixation - (1)
 Increased sales - (1)

20. Elaborate the Historical Evolution of OM

 Pre-Industrial Revolution - (4)

 Post-Industrial Revolution - (4)
 Post-World War II - (4)
 Modern Day - (4)
21. Distinguish between Manufacturing operation and Service Operation.
Introduction - (3)
Points (13*1) - (13)
 Manufacturing operations convert inputs like materials, labour etc. into tangible
outputs. Service Operations also transform inputs into outputs but outputs are
intangible.
 Manufacturing Operation allow Separation between Production and Consumption.
Customer receive service as it is performed. Thus, there is production as well as
consumption of service at the same time.
 Productivity is easily measured in manufacturing operations because manufacturing
operations produce tangible products. Productivity is not easily measured in service
operations because the outputs of service operations are intangible.
 Expenses required for material handling is more in manufacturing operations. Expenses
required for material handling are less as compared to manufacturing operations
 Customers have less contact with people who provide manufacturing operations.
Customers have more contact with persons who provide services.
 Quality standards are relatively simple and easy to establish in manufacturing
operations. Quality standards are difficult to establish and product quality is difficult to
evaluate in service operations.
 Manufacturing operations depend on maintenance and repair work. Service operations
do not depend on maintenance and repair work.
 Manufacturing operations are flexible in manufacturing work, methods, scheduling
work. Service operations are inflexible because services are in direct contact with
customers and customers are part of service system.
 Manufacturing operations can standardized and less customized. Service operations
cannot produce outputs that can be stored.
 Higher amounts are required to be invested an assets like equipment , building, etc.
High amounts are not required to invested since most of they are labour performance.
 Quality assurance is relatively easy and controllable variation. In inputs can be
controlled and defects can be rectified in output before they reach the customer. Quality
assurance in services is challenging. There is high level of variation in input in case of
services. This affects service quality.
 Manufacturing operations usually are larger in size and operation. Service operations
meet direct contact with customer and hence they are relatively smaller in size and
operation.