Production and Operations Management
Skill development questions
1. Visit any industry and list out the stages of its automation and artificial intelligence
with as many details as possible.
Solution: Stages of Automation and Artificial Intelligence
To study an industry, the stages of automation and artificial intelligence (AI) can be classified
as follows:
1. Manual Operations
Description: All tasks are performed manually by humans without the aid of
machines.
Example: Workers assembling products by hand or using simple tools like
screwdrivers.
2. Basic Automation
Description: Use of simple machines or tools to assist humans in repetitive tasks.
These machines lack decision-making capabilities.
Example: Conveyor belts, automated packing machines, or mechanical stamping
tools.
3. Intermediate Automation
Description: Systems that automate specific processes and include limited decision-
making based on predefined rules.
Key Technologies: Programmable Logic Controllers (PLCs), sensors, and basic
software algorithms.
Example: Automatic sorting machines, assembly line robots with fixed routines.
4. Advanced Automation
Description: Fully automated systems capable of performing complex tasks with
minimal human intervention.
Key Technologies: Industrial robots, Internet of Things (IoT) devices, and real-time
monitoring systems.
Example: Robotics in car manufacturing, automated warehouses (e.g., Amazon’s
fulfilment centres).
5. Artificial Intelligence Integration
Description: Systems use AI to analyse data, learn from it, and make intelligent
decisions. These systems improve efficiency and adapt over time.
Key Technologies: Machine learning, computer vision, natural language processing,
and predictive analytics.
Example: Predictive maintenance systems, AI-powered quality control, autonomous
vehicles, and demand forecasting.
2. List out the factors which are important while selecting a plant layout and draw a
chart on plant layout.
Factors to Consider While Selecting a Plant Layout
1. Nature of the Product:
o Size, shape, and type of product influence the layout.
o Example: Heavy machinery requires spacious layouts.
2. Production Process:
o The sequence of operations determines the layout type (e.g., line, functional).
3. Volume of Production:
o High-volume production favors assembly line layouts, while low-volume suits
flexible layouts.
4. Space Availability:
o Proper utilization of available space ensures smooth workflow and reduces
congestion.
5. Material Handling:
o Efficient material movement with minimal effort and cost is crucial.
6. Future Expansion:
o Layout should allow flexibility for expansion or modifications.
7. Cost of Layout:
o The cost of installation, maintenance, and operation should be economical.
8. Safety and Working Conditions:
o Ensure a safe, comfortable environment for workers.
9. Management Policies:
Policies on centralization, workflow control, and employee movement affect layout
design.
[Link] quality control charts
4. list out the functions of inventory management in an organisation.
Functions of Inventory Management in an Organization
1. Demand Forecasting:
o Predicts future inventory needs based on market trends, sales data, and
production schedules to avoid overstocking or stockouts.
2. Stock Level Optimization:
o Maintains appropriate levels of inventory, including minimum, maximum, and
reorder levels, to ensure smooth operations.
3. Procurement and Replenishment:
o Ensures timely purchase and restocking of raw materials, components, or
finished goods to prevent disruptions.
4. Storage and Handling:
o Organizes and manages inventory in warehouses to maximize space utilization
and minimize handling costs.
5. Inventory Control and Monitoring:
o Tracks inventory through regular audits and modern systems (e.g., ERP
software) to reduce wastage, theft, and obsolescence.
6. Cost Control:
o Minimizes carrying costs, ordering costs, and stockout costs to improve
profitability.
7. Product Quality Management:
o Monitors stored items to prevent degradation, especially for perishable or
sensitive products.
8. Supporting Production:
o Ensures the availability of raw materials and components to avoid delays in
production schedules.
These functions ensure efficient resource utilization, customer satisfaction, and cost-effective
operations.
