MBA 206 – POM Exam Notes | Unit 1 & 2
📚 MBA 206 — PRODUCTION & OPERATION MANAGEMENT — UNIT 1 & 2 EXAM NOTES
EXAM READY NOTES

Production & Operation Management
Complete Notes — Unit 1 & Unit 2

Simple language • Indian examples • Solved numericals • Exam tips

MBA 206 | Sem II DSC Course 4 Credits Ref: N.G. Nair | Martand Telsang | Gopalakrishnan | S.N. Chary

UNIT 1 — Introduction to Production Management

Fundamentals • Production System • Types of Production • Operations Mgmt • Plant Location & Layout • Production Planning • Process Planning

1
📌 1. Production Management — Meaning, Scope & Decisions ▾
Definition (Simple) Production = Converting inputs (raw materials + labour + machines + energy) into outputs (goods/services) that satisfy human needs.
Definition by E.S. Buffa "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 schedule demanded and at minimum cost."
Input (Raw Materials + Labour + Machines + Energy) → PRODUCTION PROCESS → Output (Goods / Services)

Scope of Production Management

📐 Product Design

What to produce & how to design it

📍 Plant Location

Where to set up the factory

🏭 Plant Layout

How to arrange machines inside factory

📋 PPC

Planning & controlling production

📦 Materials Mgmt

Purchase, storage & use of raw materials

✅ Quality Control

Ensuring products meet standards

🔧 Maintenance

Keeping machines working

💰 Cost Control

Minimising production costs

Types of Decisions in Production Management

🎯 Strategic (Long-term)

What to make? Where to build factory? What technology? (1-5 years)

📊 Tactical (Medium-term)

How many workers? Which supplier? Next month's output? (Weeks to months)

⚙️ Operational (Daily)

Which job first today? Handle machine breakdown? Overtime needed?

Benefits / Importance of Production Management

  • Right Product at Right Time — customer satisfaction
  • Cost Reduction — less waste, efficient machines
  • Better Quality — consistent output every time
  • Better Resource Utilization — no idle machines or wasted labour
  • Higher Productivity — more output with same inputs
  • Competitive Advantage — produce more, faster, cheaper than rivals
Learn scope as: Product Design → Plant Location → Plant Layout → PPC → Materials → Quality → Work Study → Maintenance → Cost Control → Inventory
🏗️ 2. Production System & Types of Production ▾
Production System A production system is the framework where inputs (materials, labour, energy, machines) are transformed into outputs (goods/services) through a conversion process, with feedback to improve the system.
Think of a restaurant kitchen: Vegetables + Chef + Gas = Cooking Process → Meals served to customers. Customer reviews (feedback) help improve future meals.

Components of a Production System

1
InputsRaw materials, labour, machines, energy, capital, information
2
Transformation ProcessPhysical/chemical change, assembly, service delivery
3
OutputFinished goods or services
4
FeedbackInformation about output sent back to improve the process
5
ControlEnsures production stays on track with planned targets

Types of Production (Most Important for Exam!)

TypeMeaningVolumeExampleCost/Unit
Job ProductionEach product made individually as per customer specVery Low (1 unit)Custom wedding suit, Bridge constructionVery High
Batch ProductionProducts made in groups/batchesMediumBakery (200 chocolate cakes, then 150 vanilla), Pharma medicinesModerate
Mass ProductionLarge identical quantities continuouslyVery HighMaruti Suzuki Alto, Coca-Cola bottlesVery Low
Continuous/ProcessProduction never stops, runs 24x7Extremely HighOil refinery, Steel plant, Cement factoryLowest
Remember the trend: Job → Batch → Mass → Process = Volume INCREASES, Flexibility DECREASES, Cost/unit DECREASES

Types of Manufacturing Systems

Fixed Position Layout

Product stays, workers come to it. Example: Shipbuilding, Aircraft manufacturing

Process Layout (Functional)

Similar machines grouped together. Example: Engineering workshop (all lathes together, all drills together)

Product Layout (Assembly Line)

Machines in sequence of operations. Example: Car assembly line, Biscuit factory

Cellular Manufacturing

Group of machines make a family of similar products. Example: CNC machining centres

Flexible Manufacturing (FMS)

Computer-controlled, easily reprogrammed. Example: Modern auto engine plants

Computer Integrated (CIM)

Fully automated, minimal human. Example: Apple supplier factories
🌐 3. Operations Management ▾
Operations Management (OM) The discipline that deals with the design, planning, control, and improvement of processes that produce goods OR deliver services. It is BROADER than Production Management.

Production Management

  • Focuses on manufacturing goods
  • Subset of Operations Management
  • Physical products only

Operations Management

  • Covers goods AND services
  • Includes supply chain, logistics, customer service
  • Broader scope
Domino's Pizza: Ordering raw materials (dough, cheese) → Pizza making → Delivery logistics → Customer service = ALL of this is Operations Management

5 Rights of Operations Management

✅ Right Quality 📦 Right Quantity ⏰ Right Time 💰 Right Cost 📍 Right Place

Challenges in Operations Management

  • Globalization — competing with China, Bangladesh
  • Technology Change — AI, robotics, 3D printing
  • Customer Expectations — more customization, faster, cheaper
  • Supply Chain Disruptions — COVID-19, floods, political issues
  • Sustainability — reducing carbon footprint and waste
📍 4. Plant Location — Factors & Break-Even Analysis ▾
Plant Location Selecting the most suitable geographical location for setting up a factory. This is a long-term strategic decision — very difficult and expensive to change later.

Factors Affecting Plant Location (10 Key Factors)

1. Raw Materials

Factory near raw material source saves transport cost. Sugar mills near sugarcane fields in Maharashtra, UP

2. Market (Customers)

Perishable/fragile goods factory near customers. Bakeries near cities

3. Labour

Skilled labour availability. IT companies in Bengaluru, Hyderabad

4. Power / Energy

Reliable, cheap electricity. Aluminium plants near hydroelectric dams

5. Transportation

Roads, railways, ports. Export industries near Mumbai/Chennai ports

6. Water

Textile, chemical, food industries need water. Textile mills near rivers

7. Government Policies

Tax holidays, SEZs, subsidies. Gujarat & Telangana investor-friendly policies

8. Land Cost

Cheaper in semi-urban/rural areas

9. Climate

Specific products need specific climate. Tea plantations in Assam, Darjeeling

10. Local Laws

Environmental, labour, zoning regulations

🔢 Break-Even Analysis for Location Selection (Exam Numerical!)

Total Cost = Fixed Cost + (Variable Cost per unit × Number of Units)

✅ Solved Problem — From Your Class!

Three locations for producing telecommunication sets. Selling price = Rs. 90. Volume = 1850 units/year.

LocationFixed Cost (Rs.)Variable Cost/unit (Rs.)Total Cost = FC + (VC × 1850)
Chennai20,0005020,000 + (50×1850) = 20,000 + 92,500 = ₹1,12,500
Coimbatore40,0003040,000 + (30×1850) = 40,000 + 55,500 = ₹95,500
Madurai80,0001080,000 + (10×1850) = 80,000 + 18,500 = ₹98,500

Revenue = 90 × 1850 = ₹1,66,500

🏆 Best Location = COIMBATORE (₹95,500 — Lowest Total Cost | Profit = ₹71,000)
🏭 5. Plant Layout — Types & Objectives ▾
Plant Layout Physical arrangement of machines, equipment, workstations, and facilities INSIDE the factory. Goal: smooth material flow, minimum handling, maximum efficiency.
Like a kitchen — if stove, fridge, sink are well-placed, you cook faster. A well-arranged factory reduces movement and saves time.

Objectives of Good Plant Layout

  • Minimize material handling and movement
  • Use space efficiently (floor + height)
  • Ensure smooth, uninterrupted production flow
  • Provide safe and comfortable working conditions
  • Allow flexibility for future expansion
  • Reduce manufacturing time and cost

Types of Plant Layout

TypeDescriptionBest ForExampleAdvantageDisadvantage
Product LayoutMachines in sequence of operationsMass productionBiscuit factory: Mix→Knead→Cut→Bake→PackLow material handling, easy supervisionInflexible; one breakdown stops all
Process LayoutSimilar machines grouped in departmentsJob/Batch productionWorkshop: Lathe dept, Drilling dept, Welding deptVery flexible, handles varietyHigh material handling, complex scheduling
Fixed Position LayoutProduct stays, everything comes to itLarge, heavy productsShipbuilding, Aircraft, Bridge constructionMinimal product movementHigh equipment handling, difficult coordination
Combination LayoutMix of above typesModern factoriesCar factory: Product layout for assembly + Process layout for engine deptBest of all worldsComplex to design
📋 6. Production Planning System & Process Planning ▾
Production Planning Deciding in advance: WHAT to produce, HOW MUCH, WHEN, and WITH WHAT RESOURCES. It is the roadmap for the entire production process.
Amazon India plans inventory before Diwali sale — pre-stocking warehouses, arranging logistics, scaling website capacity — weeks in advance. This is Production Planning in e-commerce.

Levels of Production Planning

🎯 Strategic (1-5 years)

Capacity planning, product development, plant expansion. EV factory decision by Tata Motors

📊 Aggregate (3-18 months)

Workforce planning, material procurement. Hiring plan for next 6 months

⚙️ Operational (1 day to 3 months)

Daily/weekly schedules, job assignments. Which orders to complete today

Steps in Production Planning

1
Forecasting DemandEstimate how much customers will need using past data, market research
2
Capacity PlanningDo we have enough machines & workers to meet demand?
3
Material Planning (MRP)What raw materials needed, in what quantity, by when?
4
RoutingSequence of operations and machines each product will go through
5
SchedulingAssign specific time slots to each operation
6
DispatchingRelease production order to shop floor — START signal
7
Expediting/Follow-upMonitor actual vs plan and take corrective action

Process Planning

Process Planning (Manufacturing Planning) Systematic determination of the best manufacturing process to convert raw material into finished product. It bridges product design and actual production.
Making a bolt: Steel rod → Cut to length → Heat treat → Machine threads → Inspect → Pack. Each step, the machine needed, tools required, and time taken is decided in Process Planning.

Activities in Process Planning

  • Reading Design — understanding dimensions, material, tolerances
  • Selecting Process — casting? forging? machining?
  • Selecting Machine & Tools — which machine, which cutting tool
  • Determining Operation Sequence — order of operations
  • Estimating Time Standards — how long each operation takes
  • Preparing Route Sheet — the product's "passport" through the factory
Process Planning → makes Route Sheet. Production Planning uses Route Sheet for Scheduling and Dispatching. These are linked!

⚡ UNIT 1 — QUICK REVISION FLASHCARD

  • Production: Input → Transformation → Output
  • Production Mgmt: Planning + Organizing + Directing + Controlling production
  • Scope: Design, Location, Layout, PPC, Materials, Quality, Work Study, Maintenance, Cost, Inventory
  • Types of Production: Job (custom) → Batch (groups) → Mass (identical, high volume) → Continuous (24x7)
  • Ops Mgmt: Broader than Production Mgmt; covers goods AND services; 5 Rights
  • Plant Location Factors: Raw materials, Market, Labour, Power, Transport, Water, Govt, Land, Climate, Laws
  • Break-Even Formula: TC = FC + (VC × Units); choose location with lowest TC
  • Plant Layout Types: Product (line), Process (functional), Fixed Position, Combination
  • Production Planning Steps: Forecast → Capacity → MRP → Routing → Scheduling → Dispatching → Expediting
  • Process Planning: How to make a product step-by-step; outputs Route Sheet

📝 Unit 1 — Important Exam Questions

Short Answer (5 marks):

  1. Define Production Management. Explain its scope.
  2. What is a Production System? Explain its components.
  3. Differentiate between Job, Batch, and Mass Production with examples.
  4. What are the factors affecting plant location? Explain any five.
  5. Write a note on Process Planning and its importance.

Long Answer (10 marks):

  1. Explain the scope, objectives, and decisions in Production Management.
  2. Explain the different types of production systems with advantages and disadvantages.
  3. Discuss the factors influencing plant location with Indian examples.
  4. Explain types of Plant Layout. Which is best for mass production and why?
  5. What is Production Planning? Explain the steps involved.

UNIT 2 — Operations Decisions: Production Planning & Control

PPC Objectives • Characteristics • Stages • Functions • Challenges • MPC System • Scheduling • Job Assignment • Job Sequencing

2
🎯 1. Introduction to PPC — Meaning & Definition ▾
PPC Definition — Martand Telsang (S. Chand) "Production Planning and Control may be defined as the direction and coordination of the firm's material and physical facilities towards the attainment of pre-specified production goals in the most efficient and economical manner."
PPC Definition — N.G. Nair (Tata McGraw Hill) "PPC is the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency."
PPC is like a GPS for a factory. Before the journey starts (production begins), you enter the destination (production target). GPS (PPC) plans the best route, warns of traffic (bottlenecks), and corrects wrong turns (deviations from plan).

Production

Creating goods/services

Planning

Deciding in advance — what, how much, when, how

Control

Monitor actual vs plan & correct deviations
🎯 2. Objectives & Characteristics of PPC ▾

8 Objectives of PPC

1. Steady Production Flow

Production runs without interruptions. Tata Steel blast furnace never stops

2. Optimum Resource Use

All machines, workers, materials used to max capacity. All looms running in textile mill

3. Better Quality

Standard process ensures consistent quality. Sun Pharma — every tablet same composition

4. Minimum Idle Time

No machine waiting for material; no worker waiting for machine

5. On-Time Delivery

Customer orders completed on schedule. Flipkart 1-2 day delivery promise

6. Inventory Management

Right stock levels — not too much, not too little. Maruti JIT system

7. Departmental Coordination

Bridges Sales, Purchase, Production, Quality, Dispatch

8. Cost Reduction

Eliminate waste, idle time, use resources efficiently

8 Characteristics of PPC

  • Continuous Process — never stops as long as factory runs
  • Integrated Activity — links all departments
  • Planning + Control together — planning without control is useless
  • Future-Oriented but Flexible — plans ahead but adapts to changes
  • Information-Based — depends on accurate, timely data
  • Deals with Uncertainty — machine breakdowns, demand changes
  • Customer-Driven — all planning starts from customer orders
  • Multi-level — strategic, tactical, and operational levels
Objectives = WHY PPC exists. Characteristics = HOW PPC works. Don't mix them up!
🔄 3. Stages & Functions of PPC ▾

Stages of PPC — 3 Main Stages

🅐 PLANNING STAGE (Before Production)

1
Estimating / ForecastingHow much to produce? Based on past sales, market research. Amul estimates ice cream demand for summer
2
RoutingWhich machine does which operation, in what sequence? Output = Route Sheet (product's passport). Gear: Lathe→Hobbing→Furnace→Grinder→Inspection
3
SchedulingAssign start/finish time to each operation on each machine. Tools: Gantt Chart, CPM/PERT
4
LoadingAssign jobs to machines & check no machine is overloaded. Balance the workload like distributing bags among porters

🅑 ACTION STAGE (During Production)

5
DispatchingOfficial START signal. Issue: Job Card (work order) + Material Requisition + Tool Requisition + Drawing. Furniture factory: carpenter gets Work Order, store gets Material Req

🅒 CONTROL STAGE (After Production)

6
Expediting / Follow-upMonitor actual vs plan, clear bottlenecks. Like traffic police clearing jams. Newspaper press: backup press if main breaks at 10 PM
7
InspectionCheck output against quality standards. Bajaj checks every bike before dispatch
8
FeedbackLearn from what happened → improve future plans
PPC is like a cricket match: Pre-production = team selection & strategy. Production = the actual match. Post-production = post-match analysis to improve.

Functions of PPC (3 Phases)

PhaseFunction
Pre-ProductionDemand Forecasting, Capacity Planning, MRP, Process Planning, Routing, Scheduling, Loading
During ProductionDispatching, Expediting, Schedule Updates
Post-ProductionQuality Inspection, Updating Records, Performance Analysis, Feedback to Planning
⚠️ 4. Challenges in PPC & MPC System ▾

10 Challenges in PPC

1. Demand Uncertainty

Demand never perfectly predictable. COVID-19 = masks demand 10x overnight

2. Machine Breakdowns

Disrupts entire schedule. Newspaper press breaks at 10 PM

3. Raw Material Shortages

Supplier delays stop production. 2021-22 semiconductor chip shortage halted car production worldwide

4. Labour Absenteeism

Skilled operator absent = machine idle

5. Changing Customer Requirements

Last-minute order changes disrupt schedule

6. Production Complexity

Hundreds of products, thousands of components simultaneously

7. Poor Information Flow

Wrong data = wrong plan. Garbage in = Garbage out

8. Quality Problems

Failed inspection = rework = schedule disruption

9. Efficiency vs Flexibility

Mass production = efficient but inflexible; Job = flexible but inefficient

10. Technology Changes

New robotics, AI require constant adaptation

Manufacturing Planning & Control (MPC) System

MPC System A comprehensive system managing coordination between customers, suppliers, internal processes, and resources to efficiently produce right products at right time. Implemented through ERP systems like SAP.

🔝 FRONT END (Top Level)

  • Demand Management — forecasting, customer orders
  • Master Production Schedule (MPS) — heart of MPC. What to produce, when, how many
  • Resource Planning — enough capacity?
Hero MotoCorp MPS: Week 1 = 5000 Splendor + 2000 Passion Pro

⚙️ ENGINE (Middle Level)

  • MRP — Material Requirements Planning. Explodes MPS into material needs
  • CRP — Capacity Requirements Planning. Enough machine/labour capacity?
MRP Logic: 100 bikes × 2 tyres = order 200 tyres in Week 2 (for Week 4 assembly)

🏭 BACK END (Bottom Level)

  • Shop Floor Control — monitoring actual production, dispatching, expediting
  • Supplier Management — purchase orders, follow-up on deliveries
Tata Motors uses SAP ERP — dealer books car in Delhi → SAP issues work order to plant automatically
📅 5. Production Scheduling — Types & Tools ▾
Production Scheduling Allocating manufacturing resources (machines, workers, time) to production tasks in a planned sequence to achieve production targets. Routing tells the PATH; Scheduling tells the TIMING.

Types of Scheduling

⏩ Forward Scheduling

Start from TODAY → schedule forward → find EARLIEST completion date

Order comes Monday. Material ready Tuesday. Work takes 3 days → Earliest delivery: Thursday.
  • ✅ Minimizes delay risk, starts ASAP
  • ❌ May cause early completion + inventory buildup

⏪ Backward Scheduling

Start from DELIVERY DEADLINE → work backwards → find when to START

Need 500 units by Friday. Packaging takes 1 day → start Thursday. Assembly takes 2 days → start Tuesday.
  • ✅ Minimizes work-in-progress
  • ❌ No buffer for unexpected delays

Scheduling Tools

📊 Gantt Chart

Horizontal bar chart. X-axis = time. Each row = job or machine. Bars show when each job is processed.

  • ✅ Easy to read, visual
  • ✅ Spot idle time at a glance
  • ❌ Cluttered with many jobs
  • ❌ Doesn't show dependencies
Invented by Henry Gantt — still widely used today!

🕸️ CPM / PERT

Network diagrams for complex projects with many interdependent activities.

  • CPM — activity times known with certainty. Finds Critical Path (longest path = project duration)
  • PERT — activity times uncertain. Uses 3 estimates: Optimistic (O), Most likely (M), Pessimistic (P)
PERT Expected Time = (O + 4M + P) / 6
Gantt Chart = for simple scheduling. CPM/PERT = for complex projects (shipbuilding, construction, new product launch).
🔢 6. Job Assignment — Hungarian Method (Numerical!) ▾
Assignment Problem Assign n jobs to n machines (or workers) such that each job goes to exactly one machine and total cost/time is MINIMIZED. Solved using the Hungarian Method.

Steps of Hungarian Method

1
Row ReductionSubtract the SMALLEST value in each row from every element in that row
2
Column ReductionSubtract the SMALLEST value in each column from every element in that column
3
Cover ZerosDraw MINIMUM number of lines (horizontal/vertical) to cover ALL zeros
4
Check OptimalityIf number of lines = n (number of jobs), optimal assignment exists. If not, go to Step 5.
5
Revise MatrixFind smallest UNCOVERED value. Subtract from uncovered elements, ADD to elements covered by 2 lines. Repeat from Step 3.
6
Make AssignmentAssign starting from rows/columns with only ONE zero

✅ Fully Solved Example — 3 Workers, 3 Jobs

Time matrix (hours):

Job XJob YJob Z
Worker A231
Worker B548
Worker C363

Step 1 — Row Reduction: Subtract row min (A=1, B=4, C=3)

Job XJob YJob Z
A120
B104
C030

Step 2 — Column Reduction: Col minimums are all 0 → No change

Step 3 — Cover zeros: 3 lines cover all zeros (= n=3) ✅ Optimal!

Step 4 — Assign:

  • Row B has only one zero → B → Job Y
  • Row A zero at Z → A → Job Z
  • Row C: Z taken → C → Job X
🏆 Optimal: A→Z (1hr) + B→Y (4hrs) + C→X (3hrs) = 8 hours TOTAL (Minimum possible)
For MAXIMIZATION problems: Subtract all values from the MAXIMUM value in the matrix, then apply Hungarian Method as usual.
🔀 7. Job Sequencing — Rules & Johnson's Algorithm (Numerical!) ▾
Job Sequencing Determining the ORDER in which multiple jobs should be processed on machines to optimize a criterion (minimize time, meet due dates, etc.). Assignment asks "WHICH machine?"; Sequencing asks "IN WHAT ORDER?"

Sequencing Priority Rules

RuleDescriptionOptimizesExample Use
FCFSFirst Come First Served — process in arrival orderFairnessBanks, hospitals, restaurants
SPTShortest Processing Time firstAverage flow time & waiting time (BEST for throughput)Manufacturing, when quick turnaround needed
EDDEarliest Due Date firstMaximum lateness (meeting deadlines)When customer delivery promises are critical
LPTLongest Processing Time firstMachine utilizationLess common; keeps machines busy
Critical RatioCR = Time Remaining ÷ Processing Time RemainingDynamic priority (recalculated constantly)CR<1 = urgent; CR=1 = on track; CR>1 = ahead

Johnson's Algorithm — n Jobs on 2 Machines (Most Important!)

Purpose: Find OPTIMAL sequence for n jobs on 2 machines (all jobs go through M1 first, then M2) to MINIMIZE total elapsed time (makespan).

Rules:

1
List processing times for all jobs on M1 and M2
2
Find the SMALLEST time among ALL jobs and BOTH machines
3
If smallest is on M1 → place that job FIRST (from left/beginning)
4
If smallest is on M2 → place that job LAST (from right/end)
5
Remove scheduled job from list. Repeat for remaining jobs.

✅ Fully Solved Example — 5 Jobs, 2 Machines

JobM1 (Cutting) hrsM2 (Finishing) hrs
A36
B122
C514
D27
E94

Applying Johnson's Algorithm:

  1. Smallest = 2 → Job D on M1 → Place FIRST: [D, _, _, _, _]
  2. Next smallest = 2 → Job B on M2 → Place LAST: [D, _, _, _, B]
  3. Next smallest = 3 → Job A on M1 → Place FIRST (next available): [D, A, _, _, B]
  4. Next smallest = 4 → Job E on M2 → Place LAST (next available): [D, A, _, E, B]
  5. Only C left → Position 3: [D, A, C, E, B]

Optimal Sequence: D → A → C → E → B

Makespan Calculation:

JobM1 StartM1 EndM2 StartM2 End
D0229
A25915
C5101529
E10192933
B19313335
🏆 Total Makespan = 35 hours (Optimal — minimum possible!)
Key trick: M1 smallest → place FIRST (beginning). M2 smallest → place LAST (end). This is the core rule you MUST remember!
M2 Start = MAX(M1 End of current job, M2 End of previous job). M2 cannot start before M1 finishes, and cannot start before previous job finishes on M2.

⚡ UNIT 2 — QUICK REVISION FLASHCARD

  • PPC: Integrated Planning + Control of production. GPS analogy.
  • Objectives (8): Steady flow, Optimum resources, Quality, Min idle time, On-time delivery, Inventory mgmt, Coordination, Cost reduction
  • Characteristics (8): Continuous, Integrated, Planning+Control, Flexible, Info-based, Uncertainty, Customer-driven, Multi-level
  • Stages: Planning (Estimating→Routing→Scheduling→Loading) → Action (Dispatching) → Control (Expediting→Inspection→Feedback)
  • Challenges (10): Demand uncertainty, Machine breakdown, Material shortage, Labour, Customer changes, Complexity, Info flow, Quality, Efficiency-flexibility balance, Technology
  • MPC System: Front End (Demand Mgmt + MPS) → Engine (MRP + CRP) → Back End (Shop Floor + Purchasing)
  • Scheduling Types: Forward (start now, find earliest end) vs Backward (start from deadline, work backwards)
  • Scheduling Tools: Gantt Chart (simple, visual) | CPM (known times) | PERT (uncertain times, formula: O+4M+P/6)
  • Hungarian Method: Row reduction → Column reduction → Cover zeros → Check (lines=n?) → Assign
  • Johnson's Algorithm: M1 smallest → place FIRST | M2 smallest → place LAST | Minimizes makespan
  • Sequencing Rules: FCFS (fair) | SPT (avg flow time) | EDD (max lateness) | CR (dynamic)

📝 Unit 2 — Important Exam Questions

Short Answer (5 marks):

  1. Define PPC. State its objectives.
  2. What are the characteristics of a good PPC system?
  3. Explain the stages of PPC with a flowchart description.
  4. What is Production Scheduling? Explain forward and backward scheduling.
  5. What is a Gantt Chart? State its advantages and limitations.
  6. Solve a simple 3×3 assignment problem using the Hungarian Method.
  7. Explain Johnson's Algorithm with a solved example.
  8. Differentiate between Routing and Scheduling in PPC.

Long Answer (10 marks):

  1. Explain in detail the objectives, characteristics, and functions/scope of PPC.
  2. "PPC is the nerve center of a manufacturing organization." Analyze this statement with PPC's role in coordinating departments.
  3. Explain the MPC system in detail. How does ERP support MPC?
  4. Explain types of scheduling and scheduling tools. Explain Johnson's Algorithm with a solved numerical example.
  5. Discuss various sequencing rules (priority rules). What are the advantages and limitations of each?
  6. Solve a given 4×4 or 5×5 assignment problem using Hungarian Method.

MBA 206 — Production & Operation Management | Unit 1 & Unit 2 Exam Notes

Compiled from: N.G. Nair (Tata McGraw Hill) | Martand Telsang (S. Chand) | P. Gopalakrishnan (McGraw Hill) | S.N. Chary (McGraw Hill)

🎯 All the Best for Your Exam Tomorrow!

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