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Thursday 15 August 2013

Ignou MBA Solved Assignment MS 05 2013 Capacity Planning Work Sampling Line Balancing Acceptance Sampling Waste Management


Question. 6)  Write short notes on:
a)      Capacity Planning
b)      Work Sampling
c)      Line Balancing
d)     Acceptance Sampling
e)      Waste Management

Ans :

a)      Capacity Planning

The production system design planning considers input requirements, conversion process and output. After considering the forecast and long-term planning organization should undertake capacity planning.
Capacity is defined as the ability to achieve, store or produce. For an organization, capacity would be the ability of a given system to produce output within the specific time period. In operations, management capacity is referred as an amount of the input resources available to produce relative output over period of time.
In general, terms capacity is referred as maximum production capacity, which can be attained within a normal working schedule.
Capacity planning is essential to be determining optimum utilization of resource and plays an important role decision-making process, for example, extension of existing operations, modification to product lines, starting new products, etc.

Strategic Capacity Planning
A technique used to identify and measure overall capacity of production is referred to as strategic capacity planning. Strategic capacity planning is utilized for capital intensive resource like plant, machinery, labor, etc.
Strategic capacity planning is essential as it helps the organization in meeting the future requirements of the organization. Planning ensures that operating cost are maintained at a minimum possible level without affecting the quality. It ensures the organization remain competitive and can achieve the long-term growth plan.
Capacity Planning Classification
Capacity planning based on the timeline is classified into three main categories long range, medium range and short range.
Long Term Capacity: Long range capacity of an organization is dependent on various other capacities like design capacity, production capacity, sustainable capacity and effective capacity. Design capacity is the maximum output possible as indicated by equipment manufacturer under ideal working condition.
Production capacity is the maximum output possible from equipment under normal working condition or day.
Sustainable capacity is the maximum production level achievable in realistic work condition and considering normal machine breakdown, maintenance, etc.
Effective capacity is the optimum production level under pre-defined job and work-schedules, normal machine breakdown, maintenance, etc.
Medium Term Capacity: The strategic capacity planning undertaken by organization for 2 to 3 years of a time frame is referred to as medium term capacity planning.
Short Term Capacity: The strategic planning undertaken by organization for a daily weekly or quarterly time frame is referred to as short term capacity planning.
Goal of Capacity Planning
The ultimate goal of capacity planning is to meet the current and future level of the requirement at a minimal wastage. The three types of capacity planning based on goal are lead capacity planning, lag strategy planning and match strategy planning.
Factors Affecting Capacity Planning
Effective capacity planning is dependent upon factors like production facility (layout, design, and location), product line or matrix, production technology, human capital (job design, compensation), operational structure (scheduling, quality assurance) and external structure ( policy, safety regulations)
Forecasting v/s Capacity Planning
There would be a scenario where capacity planning done on a basis of forecasting may not exactly match. For example, there could be a scenario where demand is more than production capacity; in this situation, a company needs to fulfill its requirement by buying from outside. If demand is equal to production capacity; company is in a position to use its production capacity to the fullest. If the demand is less than the production capacity, company can choose to reduce the production or share it output with other manufacturers.

b)     Work sampling

       Work sampling is a method of finding the percentage occurrence of a certain activity
by statistical sampling and random observations.In order to obtain a complete and
accurate picture of the productive time and idle time of the machines in a specific
production area, it would be necessary to observe continuously all the machines in that
area and to record when and why any of the machines were stopped. It would of course be
quite impossible to do this unless a large of workers spent the whole of their time on this
task alone – an unrealistic proposition.

     If it were possible to note at a glance of every machine, it may be found that, 80% of
machines are working and 20% were stopped. If this action was repeated 20 or more times
at different times of the day and if each time the proportion of machines working was
always 80%, it would be possible to say with confidence that at any given time there were
always 80% of the machines working.

   As it is not generally possible to do this either, the next best method has to be adopted;
that of making tours of the factory at random intervals, noting which machines are working
and which are stopped, an noting the cause of each stoppage. This data capturing method is
known as work sampling.

     The larger the size of the sample, the more accurate or representative it becomes with
respect to the original “population”, or group of items under consideration.


c) Line Balancing

       Line Balancing is leveling the workload across all processes in a cell or value
stream to remove bottlenecks and excess capacity. A constraint slows the process down and results if waiting for downstream operations and excess capacity results in waiting and absorption of fixed costs.
Objective
Match the production rate after all wastes have been removed to the takt time at each process of the value stream.

Here is a simple definition and example of line balancing :
Everyone is doing the same amount of work
Doing the same amount of work to customer requirement
Variation is 'smoothed'
No one overburdened
No one waiting
Everyone working together in a BALANCED fashion
Here we see operator number 1 over-producing, thus creating the other 6 wastes.

Takt Time & Standard Work
Takt Time :
Takt Time is the production "Drumbeat" based on customer demand


Whether you use Standard work combination tables, Standard work instruction sheets or any other Standard work documentation will depend upon the type of work involved

Standard Work instruction sheets provide a detailed description of HOW to do a particular step of a work operation


Takt time maximises the productivity due to:
· Easily managed processes
· Output of each process matches customer demand
Standard Operations provide:
· Capable and repeatable processes
· Process control at source
· Improves accuracy of planning
· Better adherence to plans
· A platform from which continuous improvement can be made
· Reduced costs
· Improved quality
· Basis for training

d)     Acceptance Sampling

     Acceptance sampling is an important field of statistical quality control that was
popularized by Dodge and Romig and originally applied by the U.S. military to the testing
of bullets during World War II. If every bullet was tested in advance, no bullets would be
left to ship. If, on the other hand, none were tested, malfunctions might occur in the field of
battle, with potentially disastrous results.

     Dodge reasoned that a sample should be picked at random from the lot, and on the basis
of information that was yielded by the sample, a decision should be made regarding the
disposition of the lot. In general, the decision is either to accept or reject the lot. This
process is called Lot Acceptance Sampling or just Acceptance Sampling.
    Acceptance sampling is "the middle of the road" approach between no inspection and
100% inspection. There are two major classifications of acceptance plans:
by attributes ("go, no-go") and by variables. The attribute case is the most common for
acceptance sampling, and will be assumed for the rest of this section.

A point to remember is that the main purpose of acceptance sampling is to decide whether
or not the lot is likely to be acceptable, not to estimate the quality of the lot.
Acceptance sampling is employed when one or several of the following hold: 
  • Testing is destructive
  • The cost of 100% inspection is very high
  • 100% inspection takes too long
It was pointed out by Harold Dodge in 1969 that Acceptance Quality Control is not the
same as Acceptance Sampling. The latter depends on specific sampling plans, which when
implemented indicate the conditions for acceptance or rejection of the immediate lot that is
being inspected. The former may be implemented in the form of an Acceptance Control
Chart. The control limits for the Acceptance Control Chart are computed using the
specification limits and the standard deviation of what is being monitored (see Ryan,
2000 for details).
In 1942, Dodge stated:
"....basically the "acceptance quality control" system that was developed encompasses the
concept of protecting the consumer from getting unacceptable defective product, and
encouraging the producer in the use of process quality control by: varying the quantity and
severity of acceptance inspections in direct relation to the importance of the characteristics
inspected, and in the inverse relation to the goodness of the quality level as indication by
those inspections."
To reiterate the difference in these two approaches: acceptance sampling plans are one-shot
deals, which essentially test short-run effects. Quality control is of the long-run variety, and
is part of a well-designed system for lot acceptance.
Schilling (1989) said:
"An individual sampling plan has much the effect of a lone sniper, while the sampling plan
scheme can provide a fusillade in the battle for quality improvement."

According to the ISO standard on acceptance control charts (ISO 7966, 1993), an
acceptance control chart combines consideration of control implications with elements of
acceptance sampling. It is an appropriate tool for helping to make decisions with respect to
process acceptance. The difference between acceptance sampling approaches and
acceptance control charts is the emphasis on process acceptability rather than on product
disposition decisions.

e)      Waste Management

Waste management and handling of waste materials has seen some dramatic changes over the past few decades. In years gone by we were all dependent on landfills for disposal of most waste materials, including garbage, discarded furniture and appliances, and even hazardous materials such as batteries and items that contained mercury. The planet definitely needed some sort of waste management system in order to remain healthy. Before it is too late we all must learn to:
Reduce the amount of waste materials we need to dispose of
Recycle as much as we can as often as possible
Reuse as much as we possibly can
Recover as much as possible from waste by making it a source of energy

Incineration
Incineration can remove waste and create an energy source at the same time. Burning waste materials converts waste into flue gases, particulates, incinerator bottom ash, and heat. This heat source can be used in turn as a generator of electric power. Flue gases and particulates are filtered free from pollutants before dispersed into the atmosphere. This form of waste to energy technology is “a win win” situation.
While incinerators are found to reduce the amount of original waste by eighty to eighty five percent, compared to compression (in garbage trucks) which is ninety five to ninety six percent, there is less overall to dispose of because it has been burned up and not merely compressed. Ultimately incineration reduces the volume of waste that would otherwise go into the landfill by some seventy percent.

Landfill

Waste disposal into a landfill (dump) entails burying the waste materials and this is still commonly practiced throughout the world. Many landfills were set up in previously unused or abandoned mines, quarries, or pits that had already been dug. When properly managed, a landfill can be an inexpensive and hygienic means of the disposal of waste materials. The majority of the materials buried will eventually break down into gases and dissipate into the atmosphere. Some gases may be pumped from landfills and burned in gas engines, creating electricity. This is cause for concern now days however; as there is concern the gases create greenhouse gas.

Recycling
For the past several decades recycling has come into vogue and is proving to be quite effective when practiced. The idea is to reuse as many items as possible either in their original form or transforming them into something equally useful. Paper products are a popular item to recycle and have proven a most effective means of preserving trees. Plastics and glass are effectively recycled, saving space at the local landfills. Oil used for cooking and frying can be used for a fuel source in many vehicles.

Waste Avoidance
Preventing waste materials from being created in abundance is important as a form of waste management. Reuse of second hand items, repairing instead of replacing with new, manufacturing longer lasting products (cotton bags instead of plastic bags for groceries, etc.), designing items that use less material (smaller, thinner). Less wastage created in food and food handling materials. All can be utilized to achieve less waste of many materials.
Composting (anaerobic digestion)
Many materials such as plant, food scraps, and various paper products can successfully be recycled or even eliminated through composting. An effective compost heap in ones back yard can be turned into mulch and feed for plants and grasses. This biological form of waste management can even be useful as an energy source when the gases (methane) are processed and used to generate electricity. Composting speeds up the process of decomposition of the organic matter.

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