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(Spring/Feb 2013)
Master of Business Administration - MBA Semester 2

MB 0044 - Production and Operation Management (4 credits)
(Book ID: B1627)
ASSIGNMENT- Set 1

Q1. State the important considerations for locating an automobile plant. Answer: - Important considerations planning the location of the plant The various factors that affect the economics of competing locations which helps in choosing the most optimal location, Factors influencing plant location can be broadly divided into two types. 1. General factors

2. Special factors
1. General Factors Influencing Plant Location as under:-

Availability of land – Availability of land plays an important role in determining the plant location. On several occasions, our plans, calculations and forecasts suggest a particular area as the best to start an organisation. However, availability of land may be in question. In such cases, need to choose the second best location. Availability of inputs – While choosing a plant location, it is very important for the organisation to get the labour at the right time and good quality raw materials. The plant should be located: Near to the raw material source At the market place Close to the market when universally available, so as to minimise the transportation cost. Closeness to market places – Organisations can choose to locate the plant near to the customers’ market or far from them, depending upon the product they produce. It is advisable to locate the plant near to the market place, when: The projected life of the product is low

The transportation cost is high
The products are delicate and susceptible to spoilage
After sales services have to be prompt
The advantages of locating the plant near to the market place are: Consistent supply of goods to the customers
Reduction of the cost of transportation
Communication facilities – Communication facility is also an important factor which influences the location of a plant. Regions with good communication facilities namely postal and tele communication links should be given priority for the selection of sites. Infrastructure – Infrastructure plays a prominent role in deciding the location. The basic infrastructure needed in any organisation is as under: Power – industries which run day and night require continuous power supply. So, they should be located near the power stations and should ensure continuous power supply throughout the year. Water – process industries such as, paper, chemical, and cement, require continuous water supply in large cesses and structure.

c) Information sharing: Information is power. Information is the master key to today’s business. Information sharing is an important characteristic of the project mindset today. A seamless flow of information is the key to build a healthy mindset among various stakeholders in a project. d) Processes: Project mindset lays emphasis on flexible processes. The major difference in a process and a system is in its capabilities of providing flexibility to different situational encounters. Flexible processes greater capabilities of adaptability. e) Structured planning: Structured planning based on project management life cycle enables one to easily and conveniently work according to the plan. It also enables efficient use of project resources and prioritisation of the activities based on resource planning. Hence, having a right mindset and flexible processes in place is very important for sound project management.

Q3. Several different strategies have been employed to assist in aggregate planning. Explain these in brief. Answer: - Aggregate Planning Strategies
Several different strategies have been employed to assist in aggregate planning. The strategies are divided into two groups namely ‘pure strategies’ and ‘mixed strategies’. The pure strategies involve taking up only one type of approach and the production is obtained when only one of...
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