Production Management

UNIT-I

Meaning

Production management refers to the process of managing the activities of a business to

furnish desired outputs of products and services. It involves planning, executing, and
directing operations to convert raw materials into finished goods and services.

Definition

According to E.L. Brech: “Production Management is the process of effective planning and
regulating the operations of that section of an enterprise which is responsible for the actual
transformation of materials into finished products.”

E.S. Buffa defines production management as follows:

‘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 by
the schedule demanded and out of minimum cost’.

Functions of Production Management

 Selection of product and designing

 Selection of production process
 Estimation of right production capacity
 Production planning
 Production control
 Quality and cost control
 Inventory Control
 Maintenance and replacement of Machines
 Scheduling
1. Selection of Product and Design —
Selection of product and designing of the same plays a pivotal role in a business venture. It is
imperative for the company to approach the market with economical and valuable products
from time to time which shall ensure the success and progress of the company.

A product that is to be produced by the company must be selected and designed using value
engineering and value analysis. The product should be selected only after overall evaluation
and assessment, after selection of the product the selection of the design must follow.

2. Selection of Production Process —

The production process should be planned way before it actually starts. After the selection of
product is done and the design has been decided, thereafter comes the selection of the
production process. It is one of the important function of production management.

The right production system must be selected, the man power required to produce the same
shall be estimated and recruited, the type of technology that shall be used, the amount of
capital that shall be required must be decided. The machines that would be put into work, the
engineering, the material handling system, all shall be selected and prepared for a smooth and
successful work function.

3. Estimation of Right Production Capacity —

The selection of the right production capacity plays a huge role in production management.
For this, the right demand for the product shall be estimated, and then it must match with the
production capacity.

A wrongful estimation may affect the production of the product, as less or more capacity than
actually needed might create problems. The break-even analysis for planning the production
capacity may prove to be significant. The production management team must be prepared
with a planned layout for both long term and short term production.
4. Production Planning —

One major function in production management is to plan the production process. The
production management hereby must decide on the routing and scheduling.

Routing basically decides for the path of the production process, the sequential operation that
shall take place, whereas scheduling being the means to plan the whole production process, as
to when it shall be started, and when the production activity shall come to an end.

5. Production Control —

Controlling the production process is the next job of paramount importance, that the
production manager shall handle. The production planning and the actual process shall be
tallied and if any deviations from the actual planning are found, that must be met with
necessary steps for its correction.

6. Quality and Cost Control —

Quality and cost control plays a huge role in the company’s upliftment, the buyers want the
products to be of top-notch quality at fair and low prices. The production manager thus has to
try to maintain the quality of the product and should try to lower the production cost, as it
shall in turn lower the cost of the product.

7. Inventory Control —

Inventory control is also part of production management. The inventory level must be
monitored by the production manager. Overstocking and understocking of inventories are not
appropriate.

If there is an overabundance of materials, the working capital will be stifled, and the
materials can spoil, be wasted, or be misused. If there is a shortage of inventory,
manufacturing will be delayed, and deliveries will be disrupted. Thus, the production
manager shall effectively control the inventories.
8. Maintenance and replacement of Machines —

The production management ensures that machinery and equipment are properly maintained
and replaced. All the machinery that would be needed for the production shall be checked
prior to the actual production process.

The production manager must have a system in place for regular inspections, oiling, washing,
replacement, and repair of machines, machinery, and spare parts, among other things. This
helps to stop unforeseen technical breakdowns and production halts.

9. Scheduling —

When it comes to taking a manufacturing process to the next stage, production scheduling is
crucial. The allocation of raw materials, labour, and processes to manufacture goods for
customers is known as the production schedule.

The objective of production scheduling is to make the manufacturing process run as smoothly
as possible by matching the production requirements with the available resources in the most
cost-effective way possible.

Solid management combined with the right production planning and scheduling technique is
needed for the best production. Even the simplest business can be turned around without a
solid plan to handle and schedule production.

Importance of Production Management

1. The accomplishment of firm's objectives :

Production management helps the business firm to achieve all its objectives. It produces
products, which satisfy the customers' needs and wants. So, the firm will increase its sales.
This will help it to achieve its objectives.
2. Reputation, Goodwill and Image :
Production management helps the firm to satisfy its customers. This increases the firm's
reputation, goodwill, and image. A good image helps the firm to expand and grow.

3. Helps to introduce new products :

Production management helps to introduce new products in the market. It conducts research
and development (R&D). This helps the firm to develop newer and better quality products.
These products are successful in the market because they give full satisfaction to the
customers.

4. Supports other functional areas :

Production management supports other functional areas in an organization, such as
marketing, finance, and personnel. The marketing department will find it easier to sell good-
quality products, and the finance department will get more funds due to an increase in sales.

It will also get more loans and share capital for expansion and modernization. The personnel
department will be able to manage the human resources effectively due to the better
performance of the production department.

5. Helps to face competition :

Production management helps the firm to face competition in the market. This is because
production management produces products of the right quantity, right quality, right price, and
at the right time.

These products are delivered to the customers as per their requirements.

6. Optimum utilization of resources :

Production management facilitates the optimum utilization of resources such as manpower,
machines, etc. So, the firm can meet its capacity utilization objective. This will bring higher
returns to the organization.

Objectives of production management

1. RIGHT QUALITY

The quality of product is established based upon the customer’s needs. The right quality is
not necessarily best quality. It is determined by the cost of the product and the technical
characteristics as suited to the specific requirements.

2. RIGHT QUANTITY

The manufacturing organization should produce the products in right number. If they are
produced in excess of demand the capital will block up in the form of inventory and if the
quantity is produced in short of demand, leads to shortage of products.

3. RIGHT TIME

Timeliness of delivery is one of the important parameter to judge the effectiveness of

production department. So, the production department has to make the optimal utilization of
input resources to achieve its objective.

4. RIGHT MANUFACTURING COST

Manufacturing costs are established before the product is actually manufactured. Hence, all
attempts should be made to produce the products at pre-established cost, so as to reduce the
variation between actual and the standard (pre-established) cost.

Scope of Production Management.

1. Location of Facilities

The selection of location is a key decision as large investment is made in building, land, and
machinery.

2.Plant Layout & material handling

Plant layout refers to the physical arrangement of facilities. Material handling refers to the
moving of material from the storeroom to the machine & from machine to the next during the
process of manufacturing.

3.Product Design

Product design deals with the conversion of the ideas about the product into the reality

4.Process Design

It is the decision making on overall process route for converting the raw material into the
finished goods

5.Production Planning & Controlling ( P.P.C)

P.P .C can be defined as the process of planning the production in advance, setting the exact
route of each item, fixing the starting & finishing dates for each item to give production
orders to shops & to follow up the progress of products according to the orders.

6.Quality Control

Quality control may be defined as a system that is used to maintain a desired level of quality
in a product & service.

7.Material Handling

Material management is that aspect of management function which is primarily concern with
the acquisition control & use of the needed material.

8.Maintenance Management

Maintenance deal with taking care of factory layout, types of machinery. This is essential for
equipment & machinery which are a very important part of the total production process.
Production management relationship with other functional areas

Production and other Functions

Accountants have to understand the basic inventory management and capacity utilization.

Management Accountants must know process costing and variance analysis.

Financial Managers take capital budgeting decision, based on production requirements. Cash
flow statements and current asset management has to be examined in the light of production
decisions. Make-or-buy or plant expansion has financial implications.

Marketing Managers have to understand production schedules to meet their delivery

requirements. They should understand ho-w products can be customized. Production has a
great role to play in new product development. In service industries, marketing and operation
overlap each other.

Personnel department is interested in understanding job analysis, job descriptions, job

specifications and job evaluation. They develop compensation plans and incentive system,
keeping production requirements in mind.

MIS has to install suitable control systems for production control which takes inputs from
marketing information system and provides output to purchasing information system.

Entrepreneurs owe their success to successful production planning supported by working

capital management and inventory management.

Production Planning

Production planning is one part of production planning and control dealing with basic
concepts of what to produce, when to produce, how much to produce, etc. It involves taking a
long-term view at overall production planning. Therefore, objectives of production planning
are as follows:
 To ensure right quantity and quality of raw material, equipment, etc. are available
during times of production.
 To ensure capacity utilization is in tune with forecast demand at all the time.

A well thought production planning ensures that overall production process is streamlined
providing following benefits:

 Organization can deliver a product in a timely and regular manner.

 Supplier are informed will in advance for the requirement of raw materials.
 It reduces investment in inventory.
 It reduces overall production cost by driving in efficiency.

Production planning takes care of two basic strategies’ product planning and process
planning. Production planning is done at three different time dependent levels i.e. long-range
planning dealing with facility planning, capital investment, location planning, etc.; medium-
range planning deals with demand forecast and capacity planning and lastly short term
planning dealing with day to day operations.

Production Control

Production control looks to utilize different type of control techniques to achieve optimum
performance out of the production system as to achieve overall production planning targets.
Therefore, objectives of production control are as follows:

 Regulate inventory management

 Organize the production schedules
 Optimum utilization of resources and production process

The advantages of robust production control are as follows:

 Ensure a smooth flow of all production processes

 Ensure production cost savings thereby improving the bottom line
 Control wastage of resources
 It maintains standard of quality through the production life cycle.

Production control cannot be same across all the organization. Production control is
dependent upon the following factors:
 Nature of production( job oriented, service oriented, etc.)
 Nature of operation
 Size of operation
UNIT-II

Define Production System

Production system may be defined as, "The methods, procedure or arrangement which
includes all functions required to accumulate (gather) the inputs, process or reprocess
the inputs, and deliver the marketable output (goods)."

Meaning of Production system

The production system is an industrial system that supports manufacturing and logistics.
They also involve flows of raw materials, equipment, and event information, as there’s
usually paperwork involved. Also, The limits on a production system include its capacity and
the quality of the finished product.

Elements of Production System (or Components)

 Inputs: Inputs are the physical and human resources utilized in the production
process. Also, They consist of raw materials, parts, capital equipment, human efforts,
etc.
 Conversion Process: It refers to a series of operations that are performing on
materials and parts. Operations may be either manual or mechanical or chemical.
Also, Operations convert inputs into output. The conversion process also includes
supporting activities, which help the process of conversion. The supporting activities
include; production planning and control, purchase of raw materials, receipt, storage
and issue of materials, an inspection of parts and work-in-progress, testing of
products, quality control, warehousing of finished products, etc.
 Outputs: Outputs are the products or completed parts resulting from the conversion
process. The output generates revenue.
 Storage: Storage takes place after the receipt of inputs, between one operation and the
other, and after the output.
 Transportation: Inputs are transporting from one operation to another in the
production process.
 Information: It provides system control through measurement, comparison,
feedback, and corrective action.
Classification of Production System

 Job Production
 Batch Production
 Mass Production
 Continuous Production

Job-Shop Production

Job-shop production are characterized by manufacturing one or few quantity of products

designed and produced as per the specification of customers within prefixed time and
cost. The distinguishing feature of this is low volume and high variety of products. A job-
shop comprises of general-purpose machines arranged into different departments. Each
job demands unique technological requirements, demands processing on machines in a
certain sequence. Job-shop Production is characterized by:

1. High variety of products and low volume.

2. Use of general purpose machines and facilities.

3. Highly skilled operators who can take up each job as a challenge because of
uniqueness.

4. Large inventory of materials, tools, parts.

5. Detailed planning is essential for sequencing the requirements of each product,

capacities for each work centre and order priorities

Advantages Following are the advantages of Job-shop Production:

1. Because of general purpose machines and facilities variety of products can be

produced.

2. Operators will become more skilled and competent, as each job gives them learning
opportunities.

3. Full potential of operators can be utilized.

4. Opportunity exists for Creative methods and innovative idea

Limitations Following are the limitations of Job-shop Production:

1. Higher cost due to frequent set up changes.

2. Higher level of inventory at all levels and hence higher inventory cost.

3. Production planning is complicated.

4. Larger space requirements.

Batch Production

American Production and Inventory Control Society (APICS) defines Batch Production as a
form of manufacturing in which the job pass through the functional departments in lots or
batches and each lot may have a different routing. It is characterized by the manufacture of
limited number of products produced at regular intervals and stocked awaiting sales. Batch
Production is characterized by

1. Shorter production runs.

2. Plant and machinery are flexible.

3. Plant and machinery set up is used for the production of item in a batch and change of set
up is required for processing the next batch.

4. Manufacturing lead-time and cost are lower as compared to job order production.

Advantages Following are the advantages of Batch Production:

1. Better utilization of plant and machinery.

2. Promotes functional specialization.

3. Cost per unit is lower as compared to job order production.

4. Lower investment in plant and machinery.

5. Flexibility to accommodate and process number of products.

6. Job satisfaction exists for operators.

Limitations Following are the limitations of Batch Production:

1. Material handling is complex because of irregular and longer flows.

2. Production planning and control is complex

Mass Production

Manufacture of discrete parts or assemblies using a continuous process are called Mass
Production. This production system is justified by very large volume of production. The
machines are arranged in a line or product layout. Product and process standardization exists
and all outputs follow the same path. Mass Production is characterized by

1. Standardization of product and process sequence.

2. Dedicated special purpose machines having higher production capacities and output rates.

3. Large volume of products.

4. Shorter cycle time of production.

5. Lower in process inventory.

6. Perfectly balanced production lines.

7. Flow of materials, components and parts is continuous and without any back tracking.

8. Production planning and control is easy.

9. Material handling can be completely automatic.

Advantages Following are the advantages of Mass Production:

1. Higher rate of production with reduced cycle time.

2. Higher capacity utilization due to line balancing.

3. Less skilled operators are required.

4. Low process inventory.

5. Manufacturing cost per unit is low.

Limitations Following are the limitations of Mass Production:

1. Breakdown of one machine will stop an entire production line.

2. Line layout needs major change with the changes in the product design.

3. High investment in production facilities.

4. The cycle time is determined by the slowest operation

Continuous Production

Production facilities are arranged as per the sequence of production operations from the first
operations to the finished product. The items are made to flow through the sequence of
operations through material handling devices such as conveyors, transfer devices, etc.
Continuous Production is characterized by

1. Dedicated plant and equipment with zero flexibility

2.Material handling is fully automated.

3. Process follows a predetermined sequence of operations.

4. Component materials cannot be readily identified with final product.

5. Planning and scheduling is a routine action.

Advantages Following are the advantages of Continuous Production:

1. Standardization of product and process sequence.

2. Higher rate of production with reduced cycle time.

3. Higher capacity utilization due to line balancing.

4. Manpower is not required for material handling as it is completely automatic.

5. Person with limited skills can be used on the production line.

6. Unit cost is lower due to high volume of production.

Limitations Following are the limitations of Continuous Production:

1. Flexibility to accommodate and process number of products does not exist.

2. Very high investment for setting flow lines.

3. Product differentiation is limited

Types of System

1. Physical or abstract systems

2. Open or closed systems
3. Deterministic or probabilistic systems
4. Man-made information systems

Physical or Abstract Systems: Physical systems are tangible entities that may be static
or dynamic in operation. Abstract systems are conceptual or non-physical entities which
may be as straightforward as formulas of relationships among sets of variables or models
– the abstract conceptualization of physical situations.

Open or Closed Systems: An open system continually interacts with its environments. It
receives inputs from and delivers output to the outside. An information system belongs to
this category, since it must adapt to the changing demands of the user. In contrast, a
closed system is isolated from environmental influences. In reality completely closed
systems are rare.

Deterministic or Probabilistic Systems: A deterministic system is one in which the

occurrence of all events is perfectly predictable. If we get the description of the system
state at a particular time, the next state can be easily predicted. An example of such a
system is a numerically controlled machine tool. Probabilistic system is one in which the
occurrence of events cannot be perfectly predicted. An example of such a system is a
warehouse and its contents.

Man-made Information Systems: It is generally believed that information reduces

uncertainty about a state or event. For example, information that the wind is calm reduces
the uncertainty that a trip by boat will be enjoyable. An information system is the basis
for interaction between the user and the analyst. It determines the nature of relationship
among decision makers. In fact, it may be viewed as a decision centre for personnel at all
levels.
Production system VS Service system

Tangibility of Output

The key difference between service firms and manufacturers is the tangibility of their
output. The output of a service firm, such as consultancy, training or maintenance, for
example, is intangible. Manufacturers produce physical goods that customers can see and
touch.

Production on Demand

Service firms, unlike manufacturers, do not hold inventory; they create a service when a
client requires it. Manufacturers produce goods for stock, with inventory levels aligned to
forecasts of market demand. Some manufacturers maintain minimum stock levels, relying
on the accuracy of demand forecasts and their production capacity to meet demand on a
just-in-time basis. Inventory also represents a cost for a manufacturing organization.

Customer Specific Production

Service firms do not produce a service unless a customer requires it, although they design
and develop the scope and content of services in advance of any orders. Service firms
generally produce a service tailored to customers’ needs, such as 12 hours of consultancy,
plus 14 hours of design and 10 hours of installation. Manufacturers can produce goods
without a customer order or forecast of customer demand. However, producing goods that
do not meet market needs is a poor strategy.

Labor Requirements and Automated Processes

A service firm recruits people with specific knowledge and skills in the service disciplines
that it offers. Service delivery is labor intensive and cannot be easily automated, although
knowledge management systems enable a degree of knowledge capture and sharing.
Manufacturers can automate many of their production processes to reduce their labor
requirements, although some manufacturing organizations are labor intensive, particularly
in countries where labor costs are low.

Physical Production Location

Service firms do not require a physical production site. The people creating and delivering
the service can be located anywhere. For example, global firms such as consultants Deloitte
use communication networks to access the most appropriate service skills and knowledge
from offices around the world.

Manufacturers must have a physical location for their production and stock holding
operations. Production does not necessarily take place on the manufacturer's own site; it can
take place at any point in the supply chain.

Meaning of Work Study:

According to ILO — International Labour Organisation — work study is “a term used to
embrace the techniques of method study and work measurement which are employed to
ensure the best possible use of human and material resources in carrying out a specified
activity.” In other words, “work study is a tool or technique of management involving the
analytical study of a job or operation.” Work study helps to increase productivity.
Objectives of Work Study:
(i) Work study brings higher productivity;

(ii) Work study improves existing method of work for which cost becomes lower;

(iii) It eliminates wasteful elements;

(iv) It sets standard of performance;

(v) It helps to use plant and human more effectively;

Importance of Work study

1. Work study is a means of enhancing the production efficiency of the firm by
elimination of waste and unnecessary operations
2. It is a technique to identify non-value adding operations by investigation of all
the factors affecting the job.
3. It is the only accurate and systematic procedure oriented technique to establish
time standards
4. It is going to contribute to the profit as the saving will start immediately and
continue throughtout the life of the product
5. It has got universal application. It is a tool which can be applied everywhere. It
can be used with success wherever work is done or plant is operated .

Procedure for work study

1. Select the job or process to be suited

2. Record from direct observation everything tat happens in order to obtain data for
analysis
3. Exxaminie the recorded facts critically and challenges everything that is done
considering in turn the purpose of activity the place where it is
4. Performed the sequence in which the elements are performwed the person who is
doing it the means by which it is done
5. Develop the most economic methods taking into account all the circumstances
6. Measure the amount of work involved in the method used and calculate a standard
time for doing it
7. Define the new method and the related time
8. Install the new method and time as agreed standard practices
9. Maintain the new standard practice by proper control procedures.

Time Study
Time study is a structured process of directly observing and measuring human work using
a timing device to establish the time required for completion of the work by a qualified
worker when working at a defined level of performance.

Objectives of Time study

(1) Target time for each job can be scientifically estimated. With this estimate realistic
schedules and manpower requirements can be prepared.

(2) Sound comparison of alternative methods is possible by comparing their basic times.

(3) Useful wage incentive schemes can be formulated on the basis of target times.

(4) In can lead to proper balancing of the work distribution.

(5) It can help to analyse the activities for performing a job with the view to eliminate or
reduce unnecessary or repetitive operations so that human effort can be minimized.

(6) To standardise the efficient method of performing operations.

(7) To standardise conditions for efficient performance.

(8) To determine man and machines ratio for effective and efficient utilisation of both.

Procedure for Time Study:

1. Select the job for study and define the objective of the study. This needs statement of the
use of results, precision required and the desired level of confidence in the estimated time
standards.

2. Analyse the operation to determine if the standard method and conditions exist and the
worker is properly trained. The method study or training of operator should be completed
before starting time study if need be.

3. Select the operator to be studied if more than one can perform the task.

4. Record the information about the standard method, operator, operation, product machine,
quality required and working conditions.
5. Divide the operation into reasonably small elements.

6. Time the operator for each of the elements. Estimate the total number of observations to be
taken.

7. Collect and record the data of required number of cycles by way of timing and rating the
operator.

8. For each element of operation note the representative watch time and calculate the normal
time as follows: Normal Time = Observed time x Rating Factors

9. Calculate normal time for the whole job by adding normal time of various elements.

10.Determine standard time by adding allowances to normal time of operation. Some

allowances such as personal allowance (20%), fatigue allowance (5%) preparation allowance
(5%) are generally used or these can be taken from the company’s policy book or by
conducting an independent study.

Method Study

Method study is the process of subjecting work to systematic, critical scrutiny to

make it more effective and efficient. This involves the following sequence of steps:
Identify the work to be studied. This means finding the jobs that are most likely to yield a
high return on investment from having studied them.

Objectives of Method Study

 To improve the quality of learning

 To improve the usage of materials, books and other literature
 To develop a better physical working environment
 To achieve an economy in human efforts
 To reduce the unnecessary fatigue
 To improve the design and condition of the workspace
 To improve the workspace layout

Steps involved in Method Study in work Measurement

 Select (the work to be studied);
 Record (all relevant information about that work);
 Examine (the recorded information);
 Develop (an improved way of doing things);
 Install (the new method as standard practice);
 Maintain (the new standard proactive).
select
Work selected for method study may be an identified problem area or an identified
opportunity. It may be identified through a systematic review of available data, normal
monitoring or control processes, high levels of dissatisfaction and complaint or as part of a
change in management policy, practice, technology or location, and usually because it meets
certain conditions of urgency and/or priority.

Define
Before any method study investigation is begun, it is necessary to establish clear terms of
reference which define the aims, scale, scope and constraints of the investigation. This should
also include an identification of who "owns" the problem or situation and ways in which such
ownership is shared. This may lead to a debate on the aims of the project, on reporting
mechanisms and frequencies, and on the measures of success. This process is sometimes
introduced as a separate and distinct phase of method study, as the "Define" stage. It leads to
a plan for the investigation which identifies appropriate techniques, personnel, and timescale.

Record
The Record stage of method study involves gathering sufficient data (in terms of both quality
and quantity) to act as the basis of evaluation and examination. A wide range of techniques
are available for recording; the choice depends on the nature of the investigation; the work
being studied; and on the level of detail required. Many of the techniques are simple charts
and diagrams, but these may be supplemented by photographic and video recording, and by
computer based techniques.

Examine
The recorded data are subjected to examination and analysis; formalised versions of this
process are critical examination and systems analysis. The aim is to identify, often through a
structured, questioning process, those points of the overall system of work that require
improvements or offer opportunity for beneficial change.
Develop
The Examine stage merges into the Develop stage of the investigation as more thorough
analysis leads automatically to identified areas of change. The aim here is to identify possible
actions for improvement and to subject these to evaluation in order to develop a preferred
solution.

Sometimes it is necessary to identify short-term and long-term solutions so that

improvements can be made (relatively) immediately, while longer-term changes are
implemented and come to fruition.

Install
The success of any method study project is realised when actual change is made 'on the
ground' - change that meets the originally specified terms of reference for the project. Thus,
the Install phase is very important. Making theoretical change is easy; making real change
demands careful planning - and handling of the people involved in the situation under review.
They may need reassuring, retraining and supporting through the acquisition of new skills.
Install, in some cases ,will require a parallel running of old and new systems, in others, it may
need the build-up of buffer stocks, and other planning to manage the change. what matters is
that the introduction of new working methods is successful. There is often only one chance to
make change!

Maintain
Some time after the introduction of new working methods, it is necessary to check that the
new method is working, that it is being properly followed, and that it has brought about the
desired results. This is the Maintain phase. Method drift is common - when people either
revert to old ways of workin, or introduce new changes. Some of these may be helpful and
should formally be incorporated; others may be inefficient or unsafe. A methods audit can be
used to formally compare practice with the defined method and identify such irregularities.

Objectives of Work Measurement:

1. To compare the times of performance by alternative methods.

2. To enable realistic schedule of work to be prepared.

3. To arrive at a realistic and fair incentive scheme.

4. To analyse the activities for doing a job with the view to reduce or eliminate unnecessary
jobs.

5. To minimise the human effort.

6. To assist in the organisation of labour by daily comparing the actual time with that of
target time.

Techniques of Work measurement

.1. Time study

2. Activity sampling

3. Predetermined motion time systems

4. Synthesis from standard data

5. Estimating

6. Analytical estimating

7. Comparative estimating

Time study

Time Study consists of recording times and rates of work for elements of a specified job
carried out under specified conditions to obtain the time necessary to carry out a job at a
defined level of performance.

In this technique the job to be studied is timed with a stopwatch, rated, and the Basic Time
calculated.

Activity Sampling

Activity sampling is a technique in which a large number of instantaneous observations are

made over a period of time of a group of machines, processes or workers. Each observation
records what is happening at that instant and the percentage of observations recorded for a
particular activity or delay is a measure of the percentage of time during which the activity or
delay occurs.

The advantages of this method are that

It is capable of measuring many activities that are impractical or too costly to be measured by
time study. One observer can collect data concerning the simultaneous activities of a group.
Activity sampling can be interrupted at any time without effect. The disadvantages are that

It is quicker and cheaper to use time study on jobs of short duration. It does not provide
elemental detail. The type of information provided by an activity sampling study is:

Predetermined motion time system

A predetermined motion time system is a work measurement technique whereby times

established for basic human motions (classified according to the nature of the motion and the
conditions under which it is made) are used to build up the time for a job at a defined level of
performance.

The systems are based on the assumption that all manual tasks can be analysed into basic
motions of the body or body members. They were compiled as a result of a very large number
of studies of each movement, generally by a frame-by-frame analysis of films of a wide range
of subjects, men and women, performing a wide variety of tasks.

. Synthesis

Synthesis is a work measurement technique for building up the time for a job at a defined
level of performance by totaling element times obtained previously from time studies on
other jobs containing the elements concerned, or from synthetic data.

Synthetic data is the name given to tables and formulae derived from the analysis of
accumulated work measurement data, arranged in a form suitable for building up standard
times, machine process times, etc. by synthesis.

Estimating

The technique of estimating is the least refined of all those available to the work
measurement practitioner. It consists of an estimate of total job duration (or in common
practice, the job price or cost). This estimate is made by a craftsman or person familiar with
the craft. It normally embraces the total components of the job, including work content,
preparation and disposal time, any contingencies etc., all estimated in one gross amount.

Analytical estimating

This technique introduces work measurement concepts into estimating. In analytical

estimating the estimator is trained in elemental breakdown, and in the concept of standard
performance. The estimate is prepared by first breaking the work content of the job into
elements, and then utilising the experience of the estimator (normally a craftsman) the time
for each element of work is estimated – at standard performance. These estimated basic
minutes are totalled to give a total job time, in basic minutes. An allowance for relaxation and
any necessary contingency is then made, as in conventional time study, to give the standard
time.

Comparative estimating

This technique has been developed to permit speedy and reliable assessment of the duration
of variable and infrequent jobs, by estimating them within chosen time bands. Limits are set
within which the job under consideration will fall, rather than in terms of precise capital
standard or capital allowed minute values. It is applied by comparing the job to be estimated
with jobs of similar work content, and using these similar jobs as "bench marks" to locate the
new job in its relevant time band – known as Work Group.

Computation of Standard time

You compute the normal time for the work element by multiplying the mean observed time
by the performance rating factor. You find the standard time for each work element
by multiplying the normal time by the allowance factor.

Allowances
Allowances are the financial benefits that are provided to the employees by the
employers over their regular salary. While some allowances are taxable under the head
salaries, some are partly taxable or fully non-taxable.

Especially with "hard" (clearly defined) problems, method study often involves the
construction and analysis of models, from simple charts and diagrams used to record and
represent the situation to full, computerised simulations. Manipulation of and
experimentation on the models leads to ideas for development.

1. Taxable Allowances
2. Non – Taxable Allowances
3. Partially – Taxable Allowances
1. Taxable Allowances

Allowances which are treated as a part of the salary and which are not either fully or partially
exempted under any sections or provisions of the Income Tax Act are called taxable
allowances.

There are many different types of taxable allowances. Some of the major ones are as
follows:-

Dearness Allowance

Entertainment Allowance

Overtime Allowance

2. Non – Taxable Allowances

The allowances which are paid to the employees by employers forming a part of the salary
but are fully exempted from taxes are called non – taxable allowances. Such allowances are
mostly paid to the government employees.

The lists of non – taxable allowances are as follows:-

i. Allowances paid by the governments to its employees located abroad.
ii. Allowances paid to the UNO employees.
iii. Allowances paid to the judges of Supreme Court and High Court. These are
also called sumptuary allowances.
iv. Allowances paid to the Retired Chairman or Members of UPSC.
v. Compensatory allowances paid to the judges of Supreme Court and High
Court.
3. Partially Taxable Allowances

Allowances that can be exempted from tax up to a certain limit as per mentioned in the
Income Tax Act are called as partially taxable allowances. Only some part of these
allowances is taxable.

Some of the partially taxable allowances are as follows:-

House Rent Allowances

Conveyance Allowance

Special Allowances
UNIT - III

Plant location

Plant location refers to the choice of region and the selection of a particular site for
setting up a business or factory. But the choice is made only after considering cost and
benefits of different alternative sites. It is a strategic decision that cannot be changed once
taken.

Plant Layout

Plant layout is the arrangement of machines, work areas and service areas within a
factory. Plant layout involves the development of physical relationship among building,
equipment and production operations, which will enable the manufacturing process to be
carried on efficiently.

Plant Layout Definition

According to F G. Moore, “ A good layout is one which allows materials rapidly and directly
for processing. This reduces transport handling, clerical and other costs down per unit, space
requirements arc minimized and it reduces idle machine and idle man time.”

Objectives of Plant Layout

1. Minimization of material handling.

2. Elimination of bottlenecks through the balancing of plant capacities.

3. High material turnover through a shorter operating cycle.

4. Effective utilization of installed capacity so that the returns on the investments

may be maximized.

5. Effective utilization of cubic space in the factory area.

6. Effective utilization of manpower resources through the elimination of idle time.

7. Elimination, improvement or confinement of objectionable operations e.g.,
operations with bad odour, vibrating operations etc.

8. Elimination of physical efforts required by operative workers.

9. Avoidance of industrial accidents.

10. Better working conditions for the employees like lighting, ventilation, control of
noise and vibrations etc.
Factors Affecting the Plant Layout
1. Type of production: The layout for an engineering unit will be quite different from
that of a flour factory, similarly layout of a paper mill will be different from a tool
room and layout of an engine assembly line is different from the toy-making
facility.

2. Production System: The plant layout in a continuous production system will be

totally different from the intermitted production system.

3. Scale of Production: The plant layout and material handling equipment in the large
scale organization will be different from that in the small scale manufacturing
activity.

4. Type of Machines: The use of single-purpose and multipurpose machines

substantially affects the plant layout. Similarly, noisy and vibrating machines
require special attention in the plant layout decision.

5. Type of building facilities: The plant layout in a single storey building will be
different from that in a multi-storey building.

6. Availability of Total Floor Area: The allocation of space for machines,

workbenches sub stores, aisles, etc is made on the basis of the available floor area.
Use of overhead space is made in case of shortage of space.
7. Possibility of Future Expansion: Plant layout is mad in the light of the future
requirements and installation of additional facilities.

8. Arrangement of Material Handling Equipment: The plant layout and the material
handling services are closely related and the latter has a decisive effect on the
arrangement of the production process and plant services.
Type of Plant Layout
1. Process layout
2. Product layout
3. Combined layout
4. Project layout
5. Group Layout
Process Layout
This type of layout is also called functional layout. All machines performing a similar type of
operations are grouped at one location in the process layout e.g., all lathes, milling, machines,
cutting machines etc. in the engineering shop are clustered in their like groups. Thus all
forging will be done in one area and all the lathes will be placed in another area.

Product layout
In this type of layout, the machines are arranged in the sequence as required by the particular
product. All machines as required to balance the particular product line are arranged in a
sequential line but not necessarily in the straight line. It is also known as “ the product line
layout.”

Combined Layout
Generally pure process or pure product layout is not found in practice. Both process and
product layouts are mutually exclusive. Proper compromise reaping the benefits of both the
layouts is possible to some extent. So efforts are made to have the combined layout
incorporating the benefits of process and product layout.

Project Layout
The manufacturing operation require the movements of men, machines and materials.
Generally few inputs tend to be static while the others are moving.
In the product layout and process layout generally the machines have fixed installations and
the operators are static in terms of their specified work stations

Group Layout
Here an attempt is made to introduce some of the advantages of a line layout into a situation
where pure line layout is not practicable. Here machines are placed in groups.

Each machine group makes maximally of parts which require similar treatment. This layout
lies between process layout and line layout. It is easier to control than a strictly process layout
and has more flexibility into the manufacturing system as regards the batch size variations
and the differing operations sequences.

Need for Selecting a Suitable Location

I. When starting a new organization, i.e., location choice for the first time.
II. In case of existing organization.
III. In case of Global Location.
I. In Case of Location Choice for the First Time or New Organizations
Cost economies are always important while selecting a location for the first time, but
should keep in mind the cost of long-term business/ organizational objectives. The
following are the factors to be considered while selecting the location for the new
organizations:

II. Identification of region:

The organizational objectives along with the various long-term considerations
about marketing, technology, internal organizational strengths and weaknesses,
region-specific resources and business environment, legal-governmental
environment, social environment and geographical environment suggest a suitable
region for locating the operations facility.
III. Choice of a site within a region:
Once the suitable region is identified, the next step is choosing the best site from an
available set. Choice of a site is less dependent on the organization’s long-term
strategies. Evaluation of alternative sites for their tangible and intangible costs will
resolve facilities-location problem. The problem of location of a site within the
region can be approached with the following cost-oriented non-interactive
model, i.e., dimensional analysis.
IV. Dimensional analysis:
If all the costs were tangible and quantifiable, the comparison and selection of a site
is easy. The location with the least cost is selected. In most of the cases intangible
costs which are expressed in relative terms than in absolute terms. Their relative
merits and demerits of sites can also be compared easily. Since both tangible and
intangible costs need to be considered for a selection of a site, dimensional analysis
is used.
II. In Case of Location Choice for Existing Organization
In this case a manufacturing plant has to fit into a multi-plant operations strategy.
That is, additional plant location in the same premises and elsewhere under
following circumstances:

 Plant manufacturing distinct products.

 Manufacturing plant supplying to specific market area.
 Plant divided on the basis of the process or stages in manufacturing.
 Plants emphasizing flexibility.
III.In Case of Global Location
Because of globalization, multinational corporations are setting up their
organizations in India and Indian companies are extending their operations in other
countries. In case of global locations there is scope for virtual proximity and virtual
factory.

VIRTUALPROXIMITY
With the advance in telecommunications technology, a firm can be in virtual proximity to its
customers. For a software services firm much of its logistics is through the information/
communication pathway.
VIRTUALFACTORY
Many firms based in USA and UK in the service sector and in the manufacturing sector often
out sources part of their business processes to foreign locations such as India\
Plant Location Problems

 The problem of a nonrecoverable tools optimal system

 The standardization and unification problem
 The optimal parameter problem for the uniform technical system
 The location of bank accounts problem
 Warehouse location problem
 Uncapacitated facility location problem

Advantages and Dis Advantages of Urban Location

Advantages

 There are often roads of a better quality and well-built houses in urban areas.
 Transport facilities are highly developed and often receive regular funding for
updates. It can be faster to get from place to place in a city or town.
 Due to better public transport, you can save money on a car
 Most amenities and entertainments are easy to reach. Clubs, restaurants and
cinemas are more prolific in these busier areas and you often find new attractions
will open in a city before anywhere else.
 Hospitals and clinics are close by for easy access to healthcare or aid in an
emergency.
 Cities and towns tend to have a greater mix of cultures and ethnicities which can
help when making new friends and meeting people.
 There are a greater number of jobs available in urban areas. Starting a new career
could be far easier if you move to a town or city
Disadvantages

 Busy towns or cities can feel crowded and may mean you feel more stress or pressure.
You may also not be able to form such tight knit communities in urban areas.
 Urban areas tend to be more expensive to live in. Property prices are higher and so are
goods and services.
 Houses are more compact in urban areas. To maximise space, flats and smaller
apartments are built instead of houses with larger gardens.
 There are often fewer green spaces in a town or city. You may not always be able to
enjoy natural spaces.
 Public transport might not always be as reliable as you’d like, and many towns or
cities are restrictive with parking. If you prefer to drive, you may find it harder to
keep a car close to where you live unless it is at great expense.
 Because of larger populations, cities can have higher levels of pollution, including
noise pollution. This could be damaging to your health in the long-term.
 If you have pets you may find it harder to find a place to live that allows them. It may
also be harder to find a place to walk a dog or enjoy outdoor space with them.
Advantages and Dis Advantages of Rural Location

The land is generally cheap.

2. Further expansion is very easy.

3. Taxes are low.

4. Staff quarters can be constructed at a cheaper cost.

5. Pure water is available.

6. Easy disposal of waste materials is possible.

7. Dangers arising from fire and other hazards can be minimized.

8. Quick disposal of dangerous fumes and by-products is possible.

9. There is less labour problem.

10. Free from the restriction of the municipalities and other Government regulations.

11. Generally this is encouraged by the policies of the Government for economic
development.

DEMERITS OF A RURAL SITE

1. Skilled labour is very difficult to be obtained due to the lack of educational and amusement
facilities, and exposure in rural areas.

2. Provision of housing facilities to the labourers and educational facilities to the children of
the workers are really a difficult one.

3. Raw materials should be purchased and stored in large quantities, which result in locking
up of more capital.

4. There may be problems in availability of transport facilities.

5. There may not be quick and adequate repairing and maintenance facilities available in the
rural area.

Advantages of Semi-urban location

A sub-urban site enjoys the benefits of both the city and country sites, whereas it is free from
the evils of both. Besides, a sub-urban site has various other advantages also. Hence, a sub-
urban site is more suitable in most of the cases.

1. The land is relatively cheap.

2. Adequate area of land can be purchased and so future expansion is possible.

3. Better transportation and communication facilities are available.

System View of Location

system location means the approach to an Intersection where a Photographic Red Light
Traffic Signal Enforcement System or Photographic Stop Sign Traffic Enforcement System is
directed and in operation.

System location means the approach to an intersection or a street toward which a

photographic, video or electronic camera is directed and is in operation. It is the location
where the automated camera system is installed to monitor offenses under this section.

Factors influencing Plant Location

(i) Availability of Raw Materials

(ii) Proximity to Market

(iii) Infrastructural Facilities

iv) Government Policy

(v) Availability of Manpower

(vi) Local Laws, Regulations and Taxation

(vii) Ecological and Environmental Factors

(viii) Competition

(ix) Incentives, Land costs. Subsidies for Backward Areas

(x) Climatic Conditions

(xi) Political conditions.

(i) Availability of Raw Materials:
One of the most important considerations involved in selection of industrial location has been
the availability of raw materials required. The biggest advantage of availability of raw
material at the location of industry is that it involves less cost in terms of ‘transportation cost.

(ii) Proximity to Market:

If the proof of pudding lies in eating, the proof of production lies in consumption. Production
has no value without consumption. Consumption involves market that is, selling goods and
products to the consumers. Thus, an industry cannot be thought of without market.

(iii) Infrastructural Facilities:

Of course, the degree of dependency upon infrastructural facilities may vary from industry to
industry, yet there is no denying of the fact that availability of infrastructural facilities plays a
deciding role in the location selection of an industry. The infrastructural facilities include
power, transport and communication, water, banking, etc.

iv) Government Policy:

In order to promote the balanced regional development, the Government also offers several
incentives, concessions, tax holidays for number of years, cheaper power supply, factory
shed, etc., to attract the entrepreneurs to set up industries in less developed and backward
areas. Then, other factors being comparative, these factors become the most significant in
deciding the location of an industry.

v) Availability of Manpower:
Availability of required manpower skilled in specific trades may be yet another deciding
factor for the location of skill- intensive industries. As regards the availability of skilled
labour, the existence of technical training institutes in the area proves useful. Besides, an
entrepreneur should also study labour relations through turnover rates, absenteeism and
liveliness of trade unionism in the particular area.

(vi) Local Laws, Regulations and Taxes:

Laws prohibit the setting up of polluting industries in prone areas particularly which are
environmentally sensitive. Air (Prevention and Control of Pollution) Act, 1981 is a classical
example of such laws prohibiting putting up polluting industries in prone areas. Therefore, in
order to control industrial growth, laws are enforced to decongest some areas while
simultaneously encourage certain other areas.

(vii) Ecological and Environmental Factors:

In case of certain industries, the ecological and environmental factors like water and air
pollution may turn out to be negative factor in deciding enterprise location. For example,
manufacturing plants apart from producing solid waste can also pollute water and air.
Moreover, stringent waste disposal laws, in case of such industries, add to the manufacturing
cost to exorbitant limits.

(viii) Competition:
In case of some enterprises like retail stores where the revenue of a particular site depends on
the degree of competition from other competitors’ location nearby plays a crucial role in
selecting the location of an enterprise. The areas where there is more competition among
industries, the new units will not be established in these areas. On the other hand, the areas
where there is either no or very less competition, new enterprises will tend to be established
in such areas.

(ix) Incentives, Land Costs, Subsidies for Backward Areas:

With an objective to foster balanced economic development in the country, the Government
decentralizes industries to less developed and backward areas in the country. This is because
the progress made in islands only cannot sustain for long. The reason is not difficult to seek.

(x) Climatic Conditions:

Climatic conditions vary from place to place in any country including India. And, climatic
conditions affect both people and manufacturing activity. It affects human efficiency and
behaviour to a great extent. Wild and cold climate is conducive to higher productivity.
Likewise, certain industries require specific type of climatic conditions to produce their
goods. For example, jute and textiles manufacturing industries require high humidity.

(xi) Political Conditions:

Political stability is essential for industrial growth. That political stability fosters industrial
activity and political upheaval derails industrial initiates is duly confirmed by political
situations across the countries and regions within the same country. The reason is not difficult
to seek.
Problems of Plant layout

7 Major Problems of Plant Layout

 Policies of management:
 Plant location:
 Nature of the product:
 Volume of production:
 Availability of floor space:
 Nature of manufacturing process:
 Repairs and maintenance of equipment and machines:
Objectives of Plant Layout

i) Streamline flow of materials through the plant

(ii) Minimise material handling

(iii) Facilitate manufacturing progress by maintaining balance in the processes

(iv) Maintain flexibility of arrangements and of operation

(v) Maintaining high turnover of in-process inventory

(vi) Effective utilisation of men, equipment and space

(vii) Increase employee morale

(viii) Minimise interference (i.e. interruption) from machines

(ix) Reduce hazards affecting employees

(x) Hold down investment

Principles of Plant Layout:

(i) Principle of Minimum Movement:

Materials and labour should be moved over minimum distances; saving cost and time of
transportation and material handling.

(ii) Principle of Space Utilization:

All available cubic space should be effectively utilized – both horizontally and vertically.

(iii) Principle of Flexibility:

Layout should be flexible enough to be adaptable to changes required by expansion or
technological development.

(iv) Principle of Interdependence:

Interdependent operations and processes should be located in close proximity to each other;
to minimize product travel.

(v) Principle of Overall Integration:

All the plant facilities and services should be fully integrated into a single operating unit; to
minimize cost of production.

(vi) Principle of Safety:

There should be in-built provision in the design of layout, to provide for comfort and safety
of workers.

(vii) Principle of Smooth Flow:

The layout should be so designed as to reduce work bottlenecks and facilitate uninterrupted
flow of work throughout the plant.

(viii) Principle of Economy:

The layout should aim at effecting economy in terms of investment in fixed assets.
(ix) Principle of Supervision:
A good layout should facilitate effective supervision over workers.

(x) Principle of Satisfaction:

A good layout should boost up employee morale, by providing them with maximum work
satisfaction.

Types of Layouts

Process Layout

Process layout means the layout which group resources based on the similar processes or
functions. This type of layout can be found in companies that use intermittent processing
systems. A process layout is used in contexts where many different items are produced in
small quantities.

Product Layout

When all the processing equipment and machinery are positioned according to the product's
sequence of operations, this type of layout is known as product layout. The main focus of
product layout is the sequence of operations regarding the production or assembly needed for
a product or some of its parts manufacturing and assembling. Product layout is typically
advantageous for sectors that produce in large quantities or on a continuous basis, such as
automobile assembling, cement manufacturing, and oil refining.

Combination Layout

The advantages of both kinds of layouts are combined in a process and product layout. A
combination layout is possible when an item is manufactured in multiple types and sizes. The
machinery is grouped in a process layout, but the process grouping is then ordered in a
sequence to make a variety of goods of different types and sizes.
Fixed Layout

The fixed layout permits a product to maintain at a particular place, and the needed resources
like manpower, machinery, material, equipment, etc. are transported to the product's
location.

In other words, the place of the main element or the product section remains fixed because of
the larger size or substantial body.

Additionally, the expense of moving or transportation costs will be lesser on account of

moving assets when contrasted with the transportation cost associated with the movement of
the product.

Group Technology or Cellular Layout

Group technology or cellular technology is viewed as a strategy via which it is feasible to

recognize and group comparable or related parts elaborate in the production process to take
advantage of the inherent economy of flow production methods.

In other words, in group technology or cellular manufacturing layout, different machines are
grouped based on the process requirements for a similar set of products or groups of
comparable parts that require a comparable sort of processing. Groups that are formed in such
a manner are named cells.
Unit - IV

Process Planning

Meaning

Process planning is a preparatory step before manufacturing, which determines the

sequence of operations or processes needed to produce a part or an assembly. This step
is more important in job shops, where one-of-a-kind products are made or the same product is
made infrequently.

Objectives of process design

The overall goal of process design is to achieve performance consistency across a specific
business procedure. Brainstorming and recording the various steps in a particular process is a
highly effective way to map it, ensure coherent execution, and solidify results.

1. Normalize outcomes

Process design normalizes workflow outcomes by helping you identify individual tasks that
are integral to meeting a specific goal. Because of its structured approach, the design process
necessitates thorough research into any new procedure, resulting in a stripped down, stable,
and improved workflow.

2. Encourage efficiency

Process design lets you both build in and improve efficiencies across business procedures.
The faster it becomes for teams or individuals to work through a particular process, the more
time they’ll save. Process design also lets you maximize resource use so you can keep costs
to a minimum.

3. Avoid chaos

In larger companies especially, certain processes may be spread across multiple teams or
departments. Systematizing a repeated set of tasks through process design keeps a disjointed
approach from muddling day-to-day operations.

4. Ensure accountability

Whether a process is internal or external, building in accountability checkpoints at various

stages helps maintain a certain level of quality. Process design also results in more
professional interactions that ultimately boost client confidence.

5. Streamline collaboration

One of the most important objectives of process design – and one that’s often overlooked – is
the fostering of better communication and collaboration. Laying out a new workflow visually
inevitably makes it easier for everyone involved to contribute to its creation, put it to work,
and teach it to others when needed.

Principles of Process Planning

General principles for evaluating or enhancing processes are as follows:

1. First define the outputs, and then look toward the inputs needed to achieve those
outputs.
2. Describe the goals of the process, and assess them frequently to make sure they are
still appropriate. This would include specific measures like quality scores and
turnaround times.
3. When mapped, the process should appear as a logical flow, without loops back to
earlier steps or departments.
4. Any step executed needs to be included in the documentation. If not, it should be
eliminated or documented, depending on whether or not it's necessary to the
process.
5. People involved in the process should be consulted, as they often have the most
current information.

Process planning in manufacturing may include the following activities:

1. Selection of raw-stock,
2. Determination of machining methods,
3. Selection of machine tools,
4. Selection of cutting tools,
5. Selection or design of fixtures and jigs,
6. Determination of set-up,
7. Determination of machining sequences,
8. Calculations or determination of cutting conditions,
9. Calculation and planning of tool paths,
10. Processing the process plan

Types of Process Design

Analytical or Attribute Centered Design

Attributes of the objects required for the design are the primary point of consideration.
When all attributes desired are met, the objectives of this design type are considered
completed. For example, if a new process has a set of criteria, and the available resources
have a set of constraints, when the completed design meets both the criteria and constraint,
the design is considered adequate.

Procedural or Operation Centered Design

This design type focuses on changing a specific object or process to have a desired set of
traits or attributes. Review of what the process is currently capable of and what changes
need to be made to accommodate the new criteria is the primary focus. Specific procedures
or methods are applied to the addressing current deficiencies in the process and how
changes can be made. Process changes typically fall within this design type as they focus
on existing and implemented processes which can be altered to accommodate new
requirements, though design of new processes and systems may be an outcome of the
design process as the old processes may be determined to be inadequate.

Experimental Object or Search Centered Design

Experimental object design focuses on testing specific objects to determine suitability. This
type of design heavily focuses on experiments and outcomes. The list of possibilities are
captured up front, and each possibility (or object) is reviewed, tested, or prototyped to
determine which has the best set of attributes which meet the design needs.

Procedure for process planning

1. Selection of Process.

(i) A process is necessary in order toyshop, form, condition and joins materials and
components with the help of machines and labor in order to convert raw materials into a
finished product.
(ii) One should select most economical process and sequence tat satisfied the product
specifications.
(iii) The selection of process depends upon
(a) Current production commitments. If enough work has already been allocated to more
efficient equipments, the current work may have to be passed on to less efficient amines to
complete the same in time.
(b) Delivery data. An early delivery date may :-
(i) Forces the use of less efficient machines
(ii) Rule out the use of special tools and jigs as they will take time for design and
fabrication.
(c) Quantity to be produced:- Small quantity will not probably justifies the high cost of
preparation and efficient set-ups. Thus. quite possible they may have to be made on less
efficient machines and vice-versa.
(d) Quality standards. Quality standards may limit the choice of making the product on a
particular mince. etc.

2. Selection of Material.

(i) Material should be of right quality and chemical composition as per the product
specification.
(iii) Shape and size of material should restrict the scrap (i.e. material removed for getting
the product shape).

3. Selection of Jigs, Fixtures ,and other special Attachments-

There supporting devices are necessary

(i)to give higher production rate;
(ii) to reduce cost of production per place.

4. Selection of Cutting Tools and Inspection Garages.

They are necessary to

(i) Reduce production time
(ii) Inspect accurately and at a faster rate.

5. Make the process layout indicating every operation and the sequence in which each
operation sit to be carried out.

6. Find set-up time and standard time for each operation.

7. Manifest process planning by document such as operation and route sheets, which
summarize the operations required, the preferred sequence of operation, auxiliary tools
required, estimated operation times etc.

Factors affecting process design

1. The service itself,

2. Customer participation in the process,
3. Location of service delivery,
4. Level of customer contact,
5. Degree of Standardization,
6. Complexity of the service.
1. The Service itself
The importance of the actual process in service delivery is being recognized of late. By
employing some principles, the service and delivery process can be designed, implemented
and monitored. The service itself is dependent upon its process. Even intangible services such
as legal representation, equipment-based services (services through vending machines, ATM)
etc., are dependent upon their process. While designing a service, it is necessary for the
service provider to carefully understand the process on which the service is dependent.

2. Customer Participation in the Process

The presence of the customer is a must when some services are being performed. The
consumer is a part of the production process and there is a close interaction between the
service provider and the consumer.

3. Location of Service Delivery

The issues related to accessibility and availability of services are crucial. Priority must be
given in decisions about location of premises and services distribution. Provision of service
may take place at the service provider’s premises or at the customer’s home.

4. Level of Customer Contact

The physical presence of the customer in the system is called customer contact. The level of
customer contact can be calculated from the amount of time a customer spends in the system
compared to the total system.

The level of contact with customers largely depends upon the type of service received. From
this point of view, a service may be high-contact service or low-contact service. Where
performance of a service is fully based on equipment (automatic weighing machines, ATM,
public telephone), the level of contact between the customer and service provider is nil.
5. Degree of Standardization
The services may be standardized services or customized services. In case of standardized
services, services are delivered in a very standard format. A standardized service is generally,
designed for high volumes with a focused service.

6. Complexity of the service

Complexity refers to the amount of steps involved in delivering services to customers. So, the
degree of complexity can be measured on the basis of the number of activities which
contribute towards the service delivery. Some services are high in complexity as well as high
in divergence.

Flow Chart

A flowchart is a picture of the separate steps of a process in sequential order. It is a

generic tool that can be adapted for a wide variety of purposes, and can be used to describe
various processes, such as a manufacturing process, an administrative or service process, or a
project plan.

Most Common Flowchart Types

While the variations and versions of flowcharts are endless, there are four flowchart types
that are particularly popular and very versatile. These four common flowcharts are great for
describing business, manufacturing, or administrative processes, how an organization
functions, or how different departments work together.

1. The Process Flowchart or Communication Flow Chart

A process flowchart or process flow diagram is probably the most versatile of the four
commonly used flowchart types because it can be applied to virtually anything. Process
flowcharts or process mapping can help quickly explain how something gets done in your
organization. Sometimes, these types of flowcharts use a standard language or notation,
like Business Process Modeling and Notation. Use a process flow diagram to:

 Map out roles and responsibilities within an organization to gain clarity.

 Describe the manufacturing process or inputs that go into creating a finished product.
 Explain how information is communicated throughout an organization or process.
 Draw up a proposal for a new process or project to understand its scope and steps.
 Show the way you wake up in the morning, as shown below.
2. The Workflow Chart or Workflow Diagram

A workflow chart shows the way a business or process functions. The below example
illustrates the steps required for a potential customer to renew a policy through a company
website. This type of workflow diagram can be used to:

 train new employees

 discover potential problem areas
 create or organize your team around a new standard operating procedure
 clarify business operations by showing a high-level overview
3. The Swimlane Flowchart

The swimlane flowchart comes in handy when you need to show multiple flows of
information side by side. Swimlane diagrams might sound really similar to a workflow
diagram, but the key here is that it allows you to create different categories where activity
takes place.

A swimlane flowchart or diagram is great for documenting a whole process that interacts with
different segments of an organization or requires collaboration among different teams. The
below example illustrates the way an internal-facing department runs parallel with an
external-facing one and at what times in the process they interact with each other.

4. The Data Flowchart

A data flowchart or data flow diagram shows the way data is processed. It comes in handy
when you want to design or analyze a system. Although most often used for software
development and design, it can be used to analyze any type of information flow, like how
information moves through a business. The below example shows a typical sales funnel. In
this case the “data” is consumer behavior.

Benefits of Flow chart

 Visual Clarity.
 Instant Communication.
 Effective Coordination.
 Efficiency Increase.
 Effective Analysis.
 Problem-Solving.
 Proper Documentation.

Capacity planning
Capacity planning refers to the process of deciphering how much resource you’re going to
need to meet demand. This “demand” can be for any unit of time: the coming week, next
season, or even in a year’s time.

Some things that fall under capacity planning are:

 Employing staff to meet coming demand

 Having enough resources

 Securing everything needed to complete the work ahead

In short, capacity planning is all about preparing yourself and your business for the future,
whatever that looks like for you. With it, you’ll know how to scale, create better design, and
even identify bottlenecks in the supply chain before they happen.
Types of Capacity Planning

Capacity planning itself can be split into three types: workforce, product, and tool. Together
they ensure that you have the right amount of three main resources for the short- and long-
term.

Workforce Capacity Planning

This capacity planning strategy ensures that you have the workforce needed to meet demand.
It’s all about having the right number of workers and hours available to not just complete jobs
but complete them well. Should you need to hire more workers (or possibly downsize) you’ll
know how far in advance you need to start making changes to accommodate the length of the
recruiting and onboarding process.

Product Capacity Planning

This capacity strategy ensures that your business is equipped with the right number of
products or resources needed to fulfill deliverables. For example, a pet store needs things like
food, pet toys, and equipment like carriers, leashes, and cages. These are all things which are
required to fulfill demand.

Tool Capacity Planning

Finally, this type of capacity planning strategy ensures that your business is equipped with
the necessary tools. Such tools may include machinery, vehicles, assembly line parts, and
anything else needed to create and deliver your product or service in a timely manner.

Capacity Planning Benefits

Reduce Stock-Outs

Identify Inefficiencies in Your Business Process

Increase Delivery Capacity

Confirm Availability

UNIT – V

Maintenance Management

Maintenance management is the process of maintaining a company's assets and resources.

The purpose is to ensure that production proceeds efficiently and that resources are used
effectively. Maintenance management is one of those aspects of managing a company that is
usually not explored in depth.

Definition of Maintenance Management

Maintenance management is an important component of a well-functioning production. It

helps companies maintain their resources while controlling time and costs to ensure
maximum efficiency of the manufacturing process, the utilities and related facilities.

Objectives of Maintenance Management

Cost control/budgeting:

Maintenance management tools provide managers with the necessary information to

properly allocate funds from the budget. Cost control is important because some costs are a
better use of the company's funds than others. For instance, a maintenance manager might
need to buy a replacement part for an asset. She might have to choose between a cheaper part
that's less durable and a more expensive, longer-lasting part.

Scheduling work/allocating resources:

Scheduling work and allocating time and labor resources so they're at their most productive
plays a key role in efficiency. Maintenance management gives a manager an ultimate
understanding of the overall process to help decide priority levels of various activities.

Compliance and regulations:

Maintenance management tools help organizations comply with regulations at the local, state
and federal levels. For instance, it may seem like the cheaper option to assign one operator to
a particular asset, even though the law states two employees should be assigned for safety
reasons.

Minimize downtime/loss:

A good maintenance management program helps mitigate the loss of productive time due to
failure by establishing a planned maintenance program. Fewer production stoppages mean
less lost revenue.

Extend asset life:

Organizations invest heavily in machinery. Maintenance management programs help ensure

equipment and infrastructure are always in good condition. Regular maintenance extends the
useful life of machinery, facilities and other components by minimizing wear and tear.
Enhance equipment:

Spinning off the objective of extending the life of assets, maintenance management also
enhances existing equipment through modifications, extensions or new low-cost items.

Training:

Maintenance management programs should include training personnel in specific

maintenance skills, improving operational safety, advising on the acquisition, installation and
operation of machinery, and enhancing the quality of the finished

Uncover maintenance trends:

Looking into historical data helps managers get a clear picture of what exactly goes on during
day-to-day operations. CMMS software, for example, can uncover things like why an asset
seems to be consistently underperforming.

Functions of Maintenance Management

1. Policies, rules, and regulations must be developed to make maintenance work more
efficient and more effective.

2. The procedure of maintenance operation shall be done on time so that maintenance

work is not delayed.

3. Ensure that organization complies as per the rules, regulations, and policies.

4. Ensure maintenance is effective and cost-efficient as well.

5. One of the main functions of maintenance management is to make sure that facility
parts such as elevators, escalators, sewers, electric store, HVAC (Heating ventilation
air condition) work fine.

6. Document all the maintenance activities that are done on each day including their
expenses. Documentation can help in keeping track of maintenance work.

7. To deliver effective maintenance work, the maintenance team needs inventories.

Therefore, maintenance management needs to ensure that inventory is available for
the maintenance team.
8. Forecasting demands and planning for maintenance expenditure are also significant.

9. Keeping track of assets, equipment, and machines so that they are secured from theft.
Theft is a big problem in all organizations, especially small equipment. Therefore, it is
the duty of management so that their machines and assets are protected.

10. The most important above all is to make sure that equipment is not neglected and
provided maintenance on time.

Types of Maintenance Management

Breakdown(Reactive)Maintenance
Breakdown maintenance is basically the ‘run it till it breaks’ maintenance mode. No actions
or efforts are taken to maintain the equipment as the designer originally intended to ensure
design life is reached. Studies as recent indicate that, this is still the predominant mode of
maintenance.
Advantages to breakdown maintenance can be viewed as a double-edged sword. If we are
dealing with new equipment, we can expect minimal incidents of failure. If our maintenance
program is purely reactive, we will not expend manpower or incur capital cost until
something breaks. Since we do not see any associated maintenance cost, we could view this
period as saving money. In reality, during the time we believe we are saving maintenance and
capital cost, we are really spending more money than we would have under a different
maintenance approach. We are spending more money associated with capital cost because,
while waiting for the equipment to break, we are shortening the life of the equipment
resulting in more frequent replacement. We may incur cost upon failure of the primary device
associated with its failure causing the failure of a secondary device. This is an increased cost
we would not have experienced if our maintenance program was more proactive.

Advantages
1. Involves low cost investment for maintenance.
2. Less staff is required.
Disadvantages
1. Increased cost due to unplanned downtime of equipment.
2. Increased labor cost, especially if overtime is needed.
PreventiveMaintenance
Preventive maintenance can be defined as, “Actions performed on a time or machine-run-
based schedule that detect, preclude, or mitigate degradation of a component or system with
the aim of sustaining or extending its useful life through controlling degradation to an
acceptable level.” Preventive maintenance is a means to increase the reliability of their
equipment. By simply expending the necessary resources to conduct maintenance activities
intended by the equipment designer, equipment life is extended and its reliability is increased.
In addition to an increase in reliability, lot of amount will be saved over that of a program just
using reactive maintenance. Studies indicate that this savings can amount to as much as 12%
to 18% on the average.
Advantages
1. Cost effective in many capital intensive processes.
2. Flexibility allows for the adjustment of maintenance periodicity.
Disadvantages
1. Catastrophic failures still likely to occur.
2. Labor intensive.
PredictiveMaintenance
Predictive maintenance can be defined as “Measurements that detect the onset of a
degradation mechanism, thereby allowing causal stressors to be eliminated or controlled prior
to any significant deterioration in the component physical state. Results indicate current and
future functional capability”.
Basically, predictive maintenance differs from preventive maintenance by basing
maintenance need on the actual condition of the machine rather than on some preset schedule.
Preventive maintenance is time-based. Activities such as changing lubricant are based on
time, like calendar time or equipment run time. For example, most people change the oil in
their vehicles every 3,000 to 5,000 miles travelled. This is effectively basing the oil change
needs on equipment run time. No concern is given to the actual condition and performance
capability of the oil. It is changed because it is time. This methodology would be analogous
to a preventive maintenance task. If, on the other hand, the operator of the car discounted the
vehicle run time and had the oil analyzed at some periodicity to determine its actual condition
and lubrication properties, he may be able to extend the oil change until the vehicle had
travelled 10,000 miles. This is the fundamental difference between predictive maintenance
and preventive maintenance, whereby predictive maintenance is used to define needed
maintenance task based on quantified material/equipment condition.

Advantages
1. Increased component operational life/ availability.
2. Allows for pre-emptive corrective actions.
Disadvantages
1. Increased investment in diagnostic equipment.
2. Increased investment in staff training.
ConceptofReliabilityinMaintenance
Reliability is the probability of survival under a given operating environment. For example,
the time between consecutive failures of a refrigerator where continuous working is required
is a measure of its reliability. If this time is more, the product is said to have high reliability.
In a textile mill, generally the light is maintained at a minimum specified level. To achieve
this, let us assume that there are 100 bulbs in use and the guaranteed life time of these bulbs
is 5000 hours. If we collect statistics about the number of bulbs survived till 5000 hours, we
can compute the reliability of the bulbs. In this case,

3. Reliability =
4. Failurerate =

Maintenance Scheduling

Maintenance scheduling is the process of making sure planned work is carried out. It
involves bringing all the necessary resources together to make sure tasks are completed
correctly and on time. Tip: Maintenance scheduling is often confused with maintenance
planning.

purpose of maintenance scheduling

Prioritize the planner

If your planner is too busy doing maintenance work orders that could be done by other techs,
your planning gets behind. You should remove them from general tasks and get them
focusing on the schedule so they have enough time to complete it. Have general tasks
assigned to other members of the team.

Focus on the future

Your planner has to focus on future work. Do this by giving your maintenance department an
already planned week of backlogged work that your planner can use to help create schedules.
This week of planned backlogged work is beneficial for creating a well-rounded schedule
because the technicians that complete the job can give feedback to the planner to either make
changes, give ideas on how to improve the schedule, and bring up any problems that
occurred.

Use component-level files

Your planner’s files should not be system-level files, but individual, component-level files.
These can be maintained in a secure system based on equipment tag numbers. When there is
new machinery, your planner should create a new mini-file (component-level file) and give it
the same label as the other equipment so they can use it to improve future processes.

Trust your planner

Planners bring their own skills and experience to the job, which helps them in the creation of
work orders and scheduling because they know what is best for the equipment. They know
what makes things flow most efficiently and can determine how long specific tasks should
take.

To make these choices, planners use their best judgment based on technical, communication,
and organizational data. They can assign senior-level employees with the most skills to high-
priority work orders to minimize potential problems. Having an experienced technician
minimizes the amount of errors.

Recognize your technicians’ skills

Your technicians have the skills to get the job done correctly and on time. Your planner
should leverage these skills and work in tandem with the technicians to create the best, most
detailed procedures and checklists to increase efficiency.

When the planner is creating the maintenance schedule, ensure they’re scheduling the right
tasks to the right technicians. Don’t schedule a less skilled worker for a high-priority task,
and try not to use a highly skilled worker for a more basic task.
Use work sampling to measure performance

“Wrench time” is the amount of time technicians can work on tasks. Often technicians get
interrupted and are forced to work on emergency maintenance, or they encounter delays in
their work, like if they’re left waiting for clearance, a tool to arrive, or having to travel to
locations. Wrench time measures the time technicians actually get to work on their assigned
tasks.

Use schedule to create job plans

You need to know the details of a job to create the right schedule for its completion. To
schedule work, job plans should include:

 Number of available technicians

 Minimum skill level of technicians

 Work hours available per skill level

 Estimation of the required time

The planner needs to ask themselves questions about what all goes into the job. Does the job
require wiring? How long does it take before technicians can come in and finish the job?
Make sure all necessary people are on the schedule to complete the job efficiently.

Prioritize all the jobs

Having your team know what’s a priority every week and what is less pressing is the key to
completing important tasks quickly and increasing productivity. Weekly schedules are useful
for coordinating these tasks, and you can focus on the week’s priorities instead of backlogged
work.

benefits of scheduled maintenance

 Higher productivity
 Increased efficiency
 Decrease in spare parts
 Improved overall workflows
 Fewer injuries and less stress
 Reduced downtime
 Less resource movement
 Fewer and lower costs
Organisation for Maintenance

That maintenance that is the responsibility of and performed by a using organization on

its assigned equipment. Its phases normally consist of inspecting, servicing, lubricating, and
adjusting, as well as the replacing of parts, minor assemblies, and subassemblies.

Five Zero Concept

ZERO DEFECT - The product produced must have an irreproachable quality. The cost of
returning to the factory is excessively expensive depending on the type of product (for
example, returning vehicles from a large company to the factory due to a mechanical or
technical defect). The cost of customer dissatisfaction is also to be taken into account, since
an unsatisfied customer is a lost customer. In addition, quality controls must be rigorous and
carried out at each stage of the manufacturing process.

ZERO PAPER - Ecology is a growing concern worldwide. Today, this point is essential.
Indeed, respecting the zero paper rule not only generates savings on the purchase of
consumables, but also, this practice is ecological, because it saves thousands of trees by
eliminating the consumption of tons of paper. This rule is increasingly applied in the
production and / or order preparation processes by the use of RFID or RF guns or voice
preparation.

ZERO INVENTORY - Just-in-time strategy includes making the right products available at
the right time. The goal is to avoid unnecessary storage. The inventory immobilizes money
and space without generating added value to the products stored. In addition, the inventory
must be monitored, which constitutes a factor of additional expenditure (material and
human).

ZERO DELAY - Once the order has been issued by the customer, the preparation, packaging
and shipping processes must be carried out as quickly as possible and without downtime so
that the customer receives the order in a minimum delay. Each step must be optimized so that
there is never a break in the process.

ZERO BREAKDOWN - The best way to ensure reliable and continuous production and to
avoid time-consuming and costly downtime is to keep the production equipment running
smoothly. This involves maintenance, preventive maintenance, the use of the tool within the
framework provided for this purpose, etc.

The Principles of Zero Defects

1. Quality is a state of assurance to requirements. Therefore, zero defects in a project

mean fulfilling requirements at that point in time.

2. Right the first time. Quality should be integrated into the process from the
beginning, rather than solving problems at a later stage.

3. Quality is measured in financial terms. One needs to judge waste, production, and
revenue in terms of budgetary impact.

4. Performance should be judged by the accepted standards, as close to perfection as

possible.

Quality Control

Quality control is a process through which a business seeks to ensure that product
quality is maintained or improved and manufacturing errors are reduced or eliminated.
It requires the business to create an environment in which both management and employees
strive for perfection.

Quality Control Tools

 Checklists. At its most basic, quality control requires you to check off a list of items
that are imperative to manufacture and sell your product.
 Fishbone diagram. This visual is helpful for determining what causes a specific
problem, be it materials, machines, methods or manpower.
 Control chart. This helps you see how processes historically change using controls.
The chart helps you find and correct problems as they happen, predict a range of
outcomes and analyze variations.
 Stratification. Instead of looking at all factors together, stratification separates data
so you can identify patterns and specific problem areas.
 Pareto chart. This type of bar chart provides a visual analysis of problems and
causes so you can focus on the most significant issues.
 Histogram. A common graph that uses bars to identifies frequency distributions
that indicate how often defects occur.
 Scatter Diagram. Plotting information along two axes on this graph can help
visually identify relationships between variables.

Types of Inspection

Sample Checking
Sample checks involve selecting a small number of items from a bigger batch or lot to check
a range of their specifications such as appearance, workmanship, safety, functions, etc. prior
to mass production. Basically, a sample of the products are extracted from the bunch and
inspected for quality, rather than the whole lot.

Inspectors will be looking for potential defects and will compare the physical objects and
products to design plans and drawings to ensure the correct measurements have been met.
Style and color are other things which can be checked as well as shipping marks and
packaging.

Pre-Production Inspections (PPI)

As the name of this type of inspection suggests, pre-production inspections are carried out
before production begins to assess the quality and quantity of raw materials and components.
This type of inspection is great for when you begin a new relationship with a supplier. You
can ensure they are using the right type of materials for your production and implementing
the right processes to deliver the product you expect.

During Production Inspection (DPI)

During production inspections are also sometimes known as DUPRO and these are conducted
while the production is in progress. They are meant for products that are in continuous
production and have strict requirements for on-time shipments and as a follow-up when
quality issues are found prior to manufacturing during pre-production inspection.
Pre-Shipment Inspection (PSI)
In short, the meaning of a pre-shipment inspection is that it is a method for checking the
quality of goods before they are shipped. This type of inspection’s purpose is to check that a
production aligns with the specifications of the buyer or purchase order/letter of credit. But at
what point is a pre-shipment inspection conducted exactly?

Piece by Piece Inspection (or Sorting Inspection)

This kind of inspection involves thoroughly checking each and every item to evaluate a range
of variables. These can be things such as general appearance, workmanship, function, safety,
etc. and inspections can be done pre- or post-packaging. The Piece by Piece inspections are
carried out on 100% of goods. Upon completion, all products which pass inspection are then
sealed and certified with an HQTS sticker to ensure that every piece included in the shipment
meets your specified quality requirements.

Metal Detection
Needles being left in garments can be a serious issue if proper metal detection procedures
aren’t carried out. That’s why metal detection is an essential quality assurance requirement
for the garment industry. Sewn items could have needle fragments or undesirable metallic
substances embedded.

Textile accessories during the manufacturing and sewing process could be left in fabrics that
may cause injury or harm to end consumers. The application of metal detection and X-ray
detection systems are deployed at various points during the manufacturing and sewing
process, to ensure detection at all potential stages of the process.

Loading and unloading supervision

This kind of inspection is the process of monitoring the entire loading and unloading of goods
to ensure your products are handled professionally. Supervision of the whole container
loading and unloading process to your desired location can be arranged, wherever you’re
shipping to and from.
Centralised inspection

Centralized Inspection. Definition. Inspection is done at the place where the part is made
or assembled is called floor inspection. The inspection is done at aparticular centralized
place iscalled centralized inspection. Measuring instruments used.

Decentralised Inspection

Decentralized or “Point of Care” testing: Single sample or low volume testing that occurs
near the patient at collection of the sample. Tests are oftentimes conducted by a wider
variety of healthcare workers - not limited to lab professionals.

P-Chart

A p-chart is an attributes control chart used with data collected in subgroups of varying sizes.
Because the subgroup size can vary, it shows a proportion on nonconforming items rather
than the actual count. P-charts show how the process changes over time. The process attribute
(or characteristic) is always described in a yes/no, pass/fail, go/no go form. For example, use
a p-chart to plot the proportion of incomplete insurance claim forms received weekly. The
subgroup would vary, depending on the total number of claims each week. P-charts are used
to determine if the process is stable and predictable, as well as to monitor the effects of
process improvement theories. P-charts can be created using software programs
like SQCpack.

X-Chart

An x Chart is a control chart of individual measurement values, and has the different
factor to calculate control limit from that of x Chart ("E 2" is used instead of "A2"). Related
term: Control Chart. Traveling Inspection | Quality Control | x-R Chart.

TQM

Total Quality Management (TQM) is a management framework based on the belief that an
organization can build long-term success by having all its members, from low-level workers
to its highest ranking executives, focus on improving quality and, thus, delivering customer
satisfaction.