(a) Discuss briefly capacity planning. Explain various kinds of capacity planning. 15 marks (b) Discuss in brief various phases…

(a) Capacity planning. Capacity planning is the systematic estimation of the production, service or facility capacity needed to meet forecast demand over a chosen horizon, while balancing capital cost, flexibility and service level. It links demand forecasting, product mix, technology and labour availability to plant size, shifts and equipment. It is strategic: under-capacity causes lost sales and overtime; over-capacity raises idle costs and debt. A capacity cushion — the reserve kept to absorb demand variability — is the key planning variable, its size depending on demand uncertainty, capital intensity and the cost of lost sales, and the horizon may be long-term (plant size, technology) or short-term (shifts, overtime, subcontracting). The main strategies are lead, lag and match. Lead capacity is added before demand rises, improving responsiveness but risking idle assets; lag capacity is added after demand is proven, reducing risk but limiting growth; match capacity adds small increments continuously, balancing risk and flexibility. Capacity has three levels: design capacity is the maximum theoretical output under ideal conditions; effective capacity is the realistic output after planned downtime, maintenance and quality losses; actual capacity is the output achieved. Planning uses forecasting techniques such as moving averages, exponential smoothing and regression, and project scheduling tools such as CPM/PERT for capacity expansion projects.

(b) Quality management. Quality management has evolved from inspection, where defects were detected after production, to statistical quality control, where Shewhart control charts and Deming’s statistical methods reduced variation during production. This moved into quality assurance, which builds quality into processes, suppliers and systems (design-stage prevention, ISO 9000 certification), and then into total quality management, where every function and employee is involved in customer-focused continuous improvement. Six Sigma adds disciplined DMAIC/DFSS problem solving and defect reduction. Deming’s PDCA cycle—plan, do, check, act—provides the iterative improvement loop, while Juran’s trilogy of quality planning, control and improvement gives the managerial framework; Crosby’s ‘zero defects’ and Feigenbaum’s company-wide quality complete the guru framework. In India, Tata Motors’ journey from inspection to TQM and Six Sigma, and Maruti Suzuki’s line balancing and supplier quality, show how quality systems become competitive assets.

(c) Job sequencing. For the two-machine problem, Johnson’s rule is applied. For each job, the smaller processing time is identified: if it is on Machine-1, the job is placed as early as possible; if on Machine-2, as late as possible. The minimum times are C=1.1 on M1, F=1.25 on M1, D=2.25 on M1, B=2.0 on M2, E=1.8 on M2 and A=1.5 on M2. Sorting the M1 jobs in ascending order (C, F, D) and the M2 jobs in descending order (B, E, A) gives the loading sequence on both machines: C–F–D–B–E–A. The schedule (hours) is:

• C: M1 0–1.10; M2 1.10–4.35
• F: M1 1.10–2.35; M2 4.35–8.35
• D: M1 2.35–4.60; M2 8.35–11.10
• B: M1 4.60–8.20; M2 11.10–13.10
• E: M1 8.20–11.95; M2 13.10–14.90
• A: M1 11.95–14.45; M2 14.90–16.40

The total elapsed time, or makespan, is 16.40 hours. Machine-1 works for 14.45 hours, so its idle time is 1.95 hours; Machine-2 works for 15.30 hours, so its idle time is 1.10 hours. The total idle time is 3.05 hours. The Gantt chart shows that Machine-2 is idle only for the first 1.10 hours, while C is on Machine-1, and that Machine-1 is idle for the final 1.95 hours while Machine-2 completes A. This sequence balances the line by keeping both machines loaded as continuously as possible and minimising the overall completion time.