Solutions to Assignment 1 - Principles of Management (POM)
1. Importance of Productivity, Efficiency, and Effectiveness
Productivity measures the output per unit of input, helping businesses reduce costs and
improve profitability. Efficiency ensures optimal resource use, minimizing waste.
Effectiveness ensures that business goals and customer needs are met successfully.
2. Difference Between Goods and Services
Goods are tangible, can be stored and resold (e.g., a car), while services are intangible and
produced-consumed simultaneously (e.g., a haircut). Durable goods last long (e.g.,
appliances), whereas non-durable goods are consumed quickly (e.g., food).
3. Types of Facility Layouts
- Product Layout: Sequential production line (e.g., car assembly).
- Process Layout: Groups similar processes together (e.g., hospital departments).
- Fixed-Position Layout: Used for large items (e.g., shipbuilding).
- Combination Layout: Mix of layouts (e.g., large supermarkets).
4. Operations Strategy & Corporate Strategy
Operations Strategy aligns production and business operations with corporate goals,
whereas Corporate Strategy defines the overall business direction.
5. Strategic Planning Process
A good strategic planning process includes vision, mission, environmental analysis, goal
setting, and strategy formulation. It should involve stakeholder alignment and adaptability.
6. Design of Goods and Services
Similarities: Both require customer analysis, quality assurance, and cost control.
Differences: Goods require physical design, while services require customer interaction
design.
7. Objectives of Facility & Work Design
The objectives include improving efficiency, reducing costs, enhancing safety, and
supporting strategic goals.
8. Key Issues in Designing a Layout for Services
Service layout design must consider customer interaction, flexibility, waiting time
reduction, and efficient workflow management.
9. Difference Between Theoretical and Effective Capacity
Theoretical capacity is the maximum possible output, assuming no disruptions. Effective
capacity accounts for real-world constraints such as maintenance and worker availability.
Safety capacity helps manage demand fluctuations and unexpected disruptions.
10. Centre of Gravity Method for Plant Location
The best location is determined by finding the weighted average coordinates based on
demand volumes and distances.
11. Johnson’s Two-Machine Algorithm
Used for scheduling jobs on two machines to minimize total run time. The method follows:
1. Identify the shortest processing time.
2. If it belongs to Machine 1, schedule it as early as possible; if Machine 2, schedule it last.
3. Repeat until all jobs are scheduled.
12. Critical Path Method for Project Completion
The critical path is the longest duration path through a project network, determining the
minimum completion time.
13. Probability of Completing a Project in Given Days
Calculated using the project completion time distribution and standard deviation of activity
times.
14. Efficiency of a Line Balancing Problem
Efficiency = (Total Work Time / (Number of Workstations × Cycle Time)) × 100%.
15. Construction of a p-Chart
A p-chart plots the proportion of defects over time and helps monitor process control.
16. Upper and Lower Control Limits in a Control Chart
UCL = p̄ + 3√(p̄ (1-p̄ )/n), LCL = p̄ - 3√(p̄ (1-p̄ )/n), where p̄ is the average defect rate.
17. Finding Critical Path and Slack Time
Slack = Latest Start Time - Earliest Start Time. Activities with zero slack belong to the
critical path.
18. TE and TL for Each Event in a Project Network
TE (Earliest Time) and TL (Latest Time) are calculated through forward and backward pass
methods.
19. Expected Task Time and Variance
Expected Time = (Optimistic + 4 × Most Likely + Pessimistic) / 6.
Variance = ((Pessimistic - Optimistic) / 6)^2.
20. Network Diagram and Float Calculation
A network diagram visually represents project tasks and dependencies. Float = Latest Finish
- Earliest Start - Duration.
