UNIT-2

First question on given pdf…………….

GANTT CHARTS
A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L.
Gantt, an American engineer and social scientist. Frequently used in project management, a Gantt
chart provides a graphical illustration of a schedule that can be used to plan, coordinate and track
tasks in a project.
History of the Gantt chart:
Karol Adamiecki, a Polish mechanical engineer and professor, is credited with devising what would
become the first Gantt chart in 1896. He developed the law of harmony in management. It emphasizes
the importance of good teams, scheduling and using compatible production tools.

Adamiecki created the harmonogram, a precursor of the Gantt chart. It was not published until 1931
and was only published in Polish.

In 1917, American engineer Henry L. Gantt used Adamiecki's harmonogram as inspiration for his
own chart. The Gantt chart became popular as a way to describe resource loading and production
planning in factories. It was also useful for gauging employee productivity.

Early Gantt charts were made of physical materials like paper and blocks. Some of the earliest ones
were used in World War I at munitions manufacturing plants to help manage the unprecedented
production requirements to support war efforts.

Until the 1980s, Gantt charts were limited in complexity and were hand-drawn. Computers enabled
more complex Gantt charts. They also made the charts easier to change and suitable for more
applications. Today, Gantt charts are widely used as part of project management software.

What are Gantt charts used for:

Gantt charts are one of the many project management tools. They present in one chart all the tasks in a
project. They show the order in which they tasks should be done and the time needed to complete
them. This is valuable information to have when managing projects for the following reasons :

 Progress monitoring. Project managers can see if individual tasks are completed on time
and adjust the project schedule. The charts also show which goals were met on schedule,
helping managers gauge employee productivity.
 Project planning. Managers can set deadlines, milestones and schedules for various project
components.
 Resource management. Project planners can coordinate resource allocation with the
project schedule. Managers can see the amount of time each process takes and designate
resources accordingly.

Both the Waterfall and Agile project management methodologies make use of Gantt charts. Because
they display project information linearly, they work particularly well with Waterfall, where customer
expectations are collected at the beginning of a project, and a linear plan is devised to meet them.

Project teams using the Agile approach set their own goals and use continuous customer feedback to
update their plan in real time. Gantt charts can be useful in Agile to compare an old plan to a proposed
change and to see what effect the change has on the overall plan.
What are the benefits of using a Gantt chart?

Some benefits of using a Gantt chart include the following:

 Efficiency. Gantt charts help project managers calculate realistic project completion times
and set goals based on available resources. Both of these advantages increase productivity.
 Teamwork. Team members have access to the same information, keeping everyone
informed of a project's progress. Because of this, it's possible to hold all team members,
including remote workers, accountable for their tasks. Team members can reference the chart
and establish roles and responsibilities.
 Tracking. Gantt charts allow project planners and team members to analyse workflows for
constraints and adjust their work accordingly. Gantt charts help project managers track
benchmarks and tasks throughout the project process. Team members can easily visualize
which elements may be missing from the Gantt chart.
 Versatility. Gantt charts help teams balance multiple projects at once. They prompt
managers to estimate which resources are needed when. They are also easy to change.
 Visualization. Gantt charts provide a project roadmap at a glance, allowing for easier
management, monitoring and organization of project components. The chart gives a holistic
view of the project timeline and tasks. It also provides high-level visibility into the who, what,
when and where of a project. Employees can quickly see the status of the project or a project
phase.

Gantt chart limitations

Gantt charts are useful project management tools, but they have flaws, such as the following:

 Lack of dependencies. Gantt charts don't indicate task dependencies or critical paths of
projects in detail. Users cannot tell how one task falling behind schedule affects other tasks.
The PERT chart, another popular project management method, is designed to do this.
 Lack of specificity. Gantt charts are good for providing a high-level view of project
workflows. However, they can leave some things to interpretation. This is especially true for
large-scale IT projects, such as DevOps Certain details about priorities, deadlines and
expectations may be left out of the high-level view of complex projects.
 Quantity of work. A third issue with Gantt charts is that the task bar doesn't show the
quantity of work each task requires. It may show a specific length of time, which roughly
implies a certain amount of resources. However, it does not designate the resources. That
creates ambiguity and can lead to resource contention.
 PPC IN MASS, BATCH, AND JOBSHOP MANUFACTURING

Manufacturing system:
There is no single concept of a manufacturing system covering all industries in every detail. It is
necessary to examine the fundamental properties and characteristics of a range of systems and to
consider the way they are synthesized and operated before consolidating general conclusions. What is
seen depends very much on the viewpoint and the narrowness of the focusing range. Nevertheless,
there is much to be gained from a fundamental study of-all aspects of manufacturing systems and their
interactions since there are opportunities for technology transfer between industries
Manufacturing systems must be designed by taking into account both steady state and-dynamic
performance, whilst ensuring there is an adequate number of controllable variables to compensate the
effects of uncontrolled disturbances. The technological process part of the manufacturing system is
synthesized from interacting unit- operation subsystems, and this itself is a subsystem of the overall
business system. The business system has a complex multivariate nature and for its effective control it
is important that information flows and plans or set points are well defined to allow people to be
effective controllers of the system.
**Types of Manufacturing Systems**
1. Custom Manufacturing Systems:
Custom manufacturing is by far the oldest and most popular type of manufacturing system in
existence. It also happens to be associated with both the highest-quality products and the lowest-
volume efficiency. In the custom manufacturing system, each item is produced by a single
craftsperson, who works solely by hand or with the help of a machine. When are used, they tend to be
highly specialized to their task and cannot produce more than one item at a time. This system will
tend to have the highest unit cost for the product manufactured. As a result, custom- manufactured
products are of the highest quality but are also the most expensive products in the market.
2. Intermittent Manufacturing Systems:
The intermittent manufacturing system allows companies to make different types of goods using the
same production line. Therefore, the manufacturing facility is designed to handle different product
sizes and requirements. Generally, the goods are processed in lots to fulfil orders. This system is
commonly referred to as a "job shop" due to its popularity in countries with relatively cheap labour
making products for multinationals-based thousands of miles away. The goods made using this
manufacturing method are produced in small quantities, so they may not be suitable for stock.
Customization is typically done post-purchase. This type of system is designed for production runs
that happen intermittently, hence the name, or products that don't require high volumes. It uses general
purpose machines and requires highly skilled labour.

3. Continuous Manufacturing Systems:

Continuous manufacturing systems are designed to enable the mass production of a single product.
The product goes through an assembly line with different stations where parts are added or worked on
a little further. This method first arose during the Industrial Revolution and is most closely associated
with the Ford Company, which employed the system to produce Model Ts in the 1920s.
This type of production system is ideal when a company has very high-volume targets since it reduces
the unit cost of the product. It does, however, require a massive capital injection at startup due to the
investment in equipment and labour required.
4. Flexible Manufacturing Systems:
Flexible manufacturing is a modern manufacturing system that has become very popular. It involves a
significant investment in machinery, although it reduces labor costs by implementing robots
eschewing human labor altogether. These machines can easily be reconfigured to manufacture
different products in different quantities, and the whole process is automatic.
This method is called flexible manufacturing due to the flexibility in the variety of high-volume goods
it can produce. Due to the automated process, quality control is a lot easier, and unit costs are low.
CLASSIFICATION OF PRODUCTION SYSTEMS:
1. 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:
• Standardization of product and process sequence
• Dedicated special purpose machines having higher production capacities and output rates.
• Large volume of products
• Shorter cycle time of production
• Lower in process inventory
• Perfectly balanced production lines
• Flow of materials, components and parts is continuous and without any back tracking
• Production planning and control is easy
• Material handling can be completely automatic
Advantages of Mass Production:
• Higher rate of production with reduced cycle time.
• Higher capacity utilization due to line balancing
• Higher capacity utilization due to line balancing
• Less skilled operators are required
• Low process inventory
• Manufacturing cost per unit is low
Limitations of Mass Production:
• Breakdown of one machine will stop an entire production line
• Line layout needs major change with the changes in the product design
• High investment in production facilities
• The cycle time is determined by the slowest operation
2. 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-
• Shorter production runs
• Plant and machinery are flexible
• 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
• Manufacturing lead-time and cost are lower as compared to job order production
Advantage of Batch Production:
• Better utilization of plant and machinery
• Promotes functional specialization
• Cost per unit is lower as compared to job order production
• Lower investment in plant and machinery
• Flexibility to accommodate and process number of products
• Job satisfaction exists for operators
Limitation of Batch Production:
• Material handling is complex because of irregular and longer flows
• Production planning and control is complex
• Work in process inventory is higher compared to continuous production
• Higher set up costs due to frequent changes in set up
3. 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:-
• High variety of products and low volume
• Use of general-purpose machines and facilities
• Highly skilled operators who can take up each job as a challenge because of uniqueness
• Large inventory of materials, tools, parts
• Detailed planning is essential for sequencing the requirements of each product, capacities for each
work centre and order priorities
Advantage of Job-shop Production:
• Because of general purpose machines and facilities variety of products can be produced
• Operators will become more skilled and competent, as each job gives them learning opportunities
• Full potential of operators can be utilized
• Opportunity exists for Creative methods and innovative ideas
Limitation of Job-shop Production:
• Higher cost due to frequent set up changes
• Higher level of inventory at all levels and hence higher inventory cost
• Production planning is complicated
• Larger space requirements
4. PROJECT PRODUCTION:
Project production is characterized by complex sets of activities that must be performed in a particular
order within the given period and within the estimated expenditure. Where output of a project is a
product, such products are characterized by immobility generally during transformation. Operations of
such products are carried out in "fixed position assembly type of layout" which can be observed in
production of ships, locomotive and aircraft, construction of roads, buildings, etc.
Characteristics of Project Production:
(i) Definite beginning and definite end
Each project has a definite beginning and a definite end.
(ii) "Fixed position" layout
Where the output of a project is a product, such products are generally characterized by immobility
during transformation. Operations on such products are carried out in "fixed position assembly type of
layout" which can be observed in production of ships, locomotive, construction of roads/buildings,
etc. aircraft, construction of roads/buildings, etc.
(iii) High-cost overruns
Often delays take place in the completion of the projects. Such delays are generally very expensive
due to escalation in the cost of factors of production and incident of penalties.
(iv) Personnel problems
Project production has many personnel related problems namely: -
• When there is a fast build up, staff is either borrowed from other departments or hired for short
duration. Therefore, personnel involved in the project have limited (or short lived) interest in the
project.
• Since each project has a limited duration, the staff starts spending more time forgetting prepared for
the next project.
• Site for the project may be in the underdeveloped region and it may change from project to project
which causes dislocation of the normal life.
Importance of Project Production:
(i) non-uniform requirement of resources:
Requirement of resources for project production is not uniform. At the end of the project, resources
from the project are redeployed elsewhere in other projects. Even during the life of the project,
requirement of resources is not uniform. Generally, resource requirement (men, materials, money,
etc.) in the beginning of the project is low which builds up fast with the progress of the project as
more and more resources are absorbed, and then it levels off until there is gradual cutback as the
project approaches completion.
(ii) Involvement of different agencies:
A project generally involves many tasks, each having its own specialization to be performed by
different agencies. The tasks generally have strict precedence (i.e. certain tasks must be completed
before the next begins) amid as such co-ordination between agencies is of utmost importance.
(iii) Scheduling and control:
Because of large number of activities, involvement of different agencies and strict precedence
requirements, scheduling and control assumes great importance. Some network planning techniques
like PERT and CPM have been found to be very useful to overcome the problems mentioned above.
AGGREGATE PLANNING AND MASTER SCHEDULING MRP, CRP
Aggregate Planning:
Aggregate planning involves planning the best quantity to produce during time periods in the
intermediate-range horizon (often 3 months to 1 year) and planning the lowest cost method of
providing the adjustable capacity to accommodate the production requirements. For manufacturing
operations, aggregate planning involves planning workforce size, production rate (work hours per
week) and inventory levels.
Environmental conditions and forecasts of future levels of demand are important inputs into long-term
strategic planning and into shorter-term plans and decisions. Companies need to make investment in
people, technology, research and development and capital assets in order to remain in business for the
long run. Strategic planning, therefore involves a long-term capacity plan that establishes some
expectation of capacity which will be available to meet future demand. A company's strategic success
depends on the amount and type of capacity it acquires and develops over time. Capacity affects the
company's ability to meet the market demands, the types of market it can enter and its ability to
compete in those markets.
 Aggregate planning is the process of developing analysing and maintaining a preliminary,
approximate Schedule of the overall operations of an o organization.
 Aggregate plan generally contains targeted Sales forecalls, production levels, inventory
Revels and customer back dogs.
Back Logs: Customer Back logs to manage quality project on time.
Long- term: Conceptual decision (2 to 4 years)
medium-term: planning Demand (Managerial (strategic Tactial decision) (Above 2 years)
short-term: (Below 1year)
Objectives of Aggregate Planning:
1. To develop plans that are:
(a) Feasible: The plans should provide for the portion of demand that the firm intends to meet and
should be within the financial and physical capacity of the firm.
(b) Optimal: The firm should aim for plans which will ensure that resources are used as wisely as
possible and costs kept as low as possible.
2. To increase the range of alternatives of capacity use, that can be considered by the management of
the firm.
5 Types of Aggregate Planning Strategies:
Businesses commonly utilize various aggregate planning strategies to align production with demand.
Below listed are the types of aggregate planning strategies:

Types of Aggregate Planning Strategies:

1. Chase Demand Strategy: Adjust production levels to match changes in demand. Suitable for
industries with flexible production capabilities.
2. Level Production Strategy: Maintain a steady production rate and use inventory to absorb demand
fluctuations. Suitable for industries with high setup costs or limited flexibility.
3. Hybrid Strategy: A combination of chase demand and level production strategies. Offers a balance
between adjusting production and maintaining a stable rate.
4. Backordering Strategy: Allow demand to exceed supply temporarily, fulfilling backlogged orders
later. Applicable when back-ordering is acceptable to customers.
5. Subcontracting Strategy: Outsource production to third-party suppliers during periods of high
demand. Useful for maintaining flexibility without expanding internal resources.
 Selecting the appropriate strategy of aggregate planning depends on factors such as industry
characteristics, production capabilities, and customer expectations. Businesses often employ a
mix of these strategies to effectively manage their aggregate planning processes.
Factors Affecting Aggregate Planning:
Several factors influence aggregate planning, impacting how businesses align production with
demand:
1. Demand Variability: Fluctuations in customer demand can significantly affect the production
planning process.
2. Production Flexibility: The adaptability of production processes to changes in volume or product
mix plays a vital role.
3. Lead Time: The time required to make adjustments in production levels or receive new inventory
influences planning.
4. Capacity Constraints: Limitations on resources, such as machinery, labour, or facilities, impact
overall production capabilities.
5. Inventory Levels: The amount of stock on hand affects the need for production adjustments.
6. Workforce Considerations: The availability, skills, and costs associated with the workforce
influence production planning.
7. Supply Chain Disruptions: External factors like raw material shortages or transportation issues
can disrupt planning.
8. Government Regulations: Compliance with regulations may impact production and inventory
decisions.
9. Cost Factors: Production, labour, and inventory costs play a significant role in planning
considerations.
10. Market Conditions: Changes in the market, including competition and pricing, can impact
planning strategies.
 Taking these factors into account enables businesses to develop effective aggregate planning
strategies that adapt to their operational and market realities.

MASTER SCHEDULING:
Master Production Scheduling (MPS) :
A master production schedule is a statement of what will be made, how many units will be made, and
when they will be made. It is a production plan, not a sales plan. The MPS considers the total demand
on a plant's resources, including finished product sale, spare (repair) part needs, and interplant needs.
The MPS must also consider the capacity of the plant and the requirements imposed on vendors.
Provisions are made in the overall plan for each manufacturing facility's operation. All planning for
materials, manpower, plant, equipment, financing for the facility is driven by the master production
schedule.
Master Production Schedule (MPS) is disaggregated from production plan. MPS is not a sales
forecast. Rather, it is the detailed production plan for the end item to be produced by the plant. It is
constrained the production plan.
At the master production planning stage, rough cut capacity planning is used to check the feasibility
of MPS. Rough cut capacity planning is medium-term capacity play the length of time ranges from
one week to three months, and depends on the company and the industry. If there is not enough
capacity, from one week to has to be pushed ahead or postponed.
Master production schedule is changed and updated more frequently than the production
plan. It is a detailed plan, and does not extend as far into the future as the production plan.
Therefore, it can be viewed as a contract among different functional areas within a company .
Master production scheduling is not a new concept. Earliest material control systems used a "quarterly
ordering system" to produce a Master Production Schedule (MPS) for plant production. This system
uses customer order backlogs to develop a production plan over a three-month period. The production
plan is then exploded manually to determine what parts must be purchased or manufactured at the
proper time. However, rapidly changing customer requirements and fluctuating lead times, combined
with a slow response to these changes, can result in the disruption of master production scheduling.
Objectives of Master Production Schedule:
Objectives of master production scheduling are:
1) To provide top management with a means to authorize, and control manpower levels, inventory
investment, and cashflow.
2) To coordinate marketing, manufacturing, engineering, and finance activities by a common
performance objective.
3) To reconcile marketing and manufacturing needs.
4) To provide an overall measure of performance.
5) To provide data for material and capacity planning.
The development of a master production schedule is a very important step in a planning cycle. Master
production schedules directly tie together personnel, materials, equipment, and facilities. Master
production schedules also identify key dates to the customer, should he wish to visit the contractor
during specific operational periods.
functions of Master Production Scheduling:
Master production scheduling's major functions are as follows:
1) To form the link between production planning and what manufacturing builds.
2) To plan capacity requirements. The master production schedule determines the capacity required. .
3) To plan material requirements. The MPS drives the material requirements plan
4) To keep priorities valid. The MPS is a priority plan for manufacturing.
5) To aid in making order promises. The MPS is a plan for what is to be produced and when. As such,
it tells sales and manufacturing when goods will be available for delivery.
6) To be a contract between marketing and manufacturing. It is an agreed-upon plan.
The MPS must be realistic and based on what production can and will do. If it is not, the results will
be as follows:
1) Overload or underload of plant resources.
2) Unreliable schedules resulting in poor delivery performance.
3) High levels of work-in-process (WIP) inventory.
4) Poor customer service.
5) Loss of credibility in the planning system.
Time Fences Used in Master Production Schedule:
A policy or guideline established to note where various restrictions or changes in operating procedures
take place. For example, changes to the master production schedule can be accomplished easily
beyond the cumulative lead time, while changes inside the cumulative lead time become increasingly
more difficult to a point where changes should be resisted. Time fences can be used to define these
points:
1)Demand Time Fence (DTF): It is a point in time inside of which the forecast is no longer included
in total demand and projected available inventory calculations; inside this point, only customer orders
are considered. Beyond this point, total demand is a combination of actual orders and forecasts,
depending on the forecast consumption technique chosen.
2) Planning Time Fence (PTF): It is a point in time denoted in the planning horizon of the master
scheduling process that marks a boundary inside of which changes to the schedule may adversely
affect component schedules, capacity plans, customer deliveries, and cost. Outside the planning time
fence, customer orders may be booked and changes to the master schedule can be made within the
constraints of the production plan. Changes inside the planning time fence must be made manually by
the master scheduler.

MRP
Material Requirements Planning (MRP) is a standard supply planning system to help businesses,
primarily product-based manufacturers, understand inventory requirements while balancing supply
and demand. Businesses use MRP systems, which are subsets of supply chain management systems,
to efficiently manage inventory, schedule production and deliver the right product—on time and at
optimal cost.

Why Is MRP important?

MRP gives businesses visibility into the inventory requirements needed to meet demand, helping your
business optimize inventory levels and production schedules. Without this insight, companies have
limited visibility and responsiveness, which can lead to:

 Ordering too much inventory, which increases carrying costs and ties up more cash in
inventory overhead that could be used elsewhere.
 Inability to meet demand because of insufficient raw materials, resulting in lost sales,
cancelled contracts and out-of-stocks.
 Disruptions in the production cycle, delaying sub-assembly builds that result in increased
production costs and decreased output.

Manufacturing companies rely heavily on MRP as the supply planning system to plan and control
inventory, scheduling and production, but MRP is also relevant in many other industries, from retail
to restaurants, to create balance between supply and demand.

MRP Steps and Processes: The MRP process can be broken down into four major steps:

1)Identifying requirements to meet demand:

The first step of the MRP process is identifying customer demand and the requirements needed to
meet it, which starts with inputting customer orders and sales forecasts. Using the bill of materials
required for production, MRP then disassembles demand into the individual components and raw
materials needed to complete the build while accounting for any required sub-assemblies.
2)Checking inventory and allocating resources:
Utilizing the MRP to check demand against inventory and allocating resources accordingly, you can
see both what items you have in stock and where they are—this is especially important if you have
inventory across several locations. This also lets you see the status of items, which gives visibility into
items that are already allocated to another build, as well as items not yet physically in the warehouse
that are in transit, or on order. The MRP then moves inventory into the proper locations and prompts
reorder recommendations.

3)Scheduling production.

Using the master production schedule, the system determines how much time and labour are required
to complete each step of each build and when they need to happen so that the production can occur
without delay. The production schedule also identifies what machinery and workstations are needed
for each step and generates the appropriate work orders, purchase orders and transfer orders. If the
build requires subassemblies, the system takes into account how much time each subassembly takes
and schedules them accordingly.
4)Identifying issues and making recommendations.
Finally, because the MRP links raw materials to work orders and customer orders, it can
automatically alert your team when items are delayed and make recommendations for
existing orders: automatically moving production in or out, performing what-if analyses, and
generating exception plans to complete the required builds.
MRP Inputs:
How well your MRP system works depends on the quality of the data you provide it. For an MRP
system to work efficiently, each input must be accurate and updated. Here are some of the inputs an
MRP depends on:
1)Demand: Including sales forecasts and customer orders. When working with predicted demand, a
system that is integrated with an enterprise-wide ERP system allows forecasting using historical sales
vs. just sales forecasts.

2)Bill of materials (BOM): Keeping a single updated version of the bill of materials is essential for
accurate supply forecasting and planning. A system that’s integrated into the enterprise-wide
inventory management system avoids version control issues and building against outdated bills, which
results in reworks and increased waste.

3)Inventory: It’s essential to have a real-time view of inventory across the organization to understand
what items you have on hand and which are en route or have purchase orders issued, where that
inventory is and what the inventory’s status is.

4)Master production schedule: The master production schedule takes all build requirements and
plans machinery usage, labour and workstations to account for all outstanding work orders to be
completed.

MRP Outputs: Using the provided inputs, the MRP calculates what materials are needed, how much
is needed to complete the build and when in the build process they are needed.

With this information defined, businesses can execute on just-in-time (JIT) production, scheduling
production based on material availability. This minimizes inventory levels and carrying costs, as
inventory is not stored in the warehouse for future production but arrives as needed. By scheduling
materials to arrive and production to begin soon after, businesses can move materials through the
workflow process without delay. The MRP lays out the plan of when materials should arrive, based
on when they’re needed in the production process, and when subassemblies should be scheduled.
Using a master production plan and taking into account subassembly build times minimizes materials
sitting on shelves and bottlenecks in the build process.

CRP

Capacity requirements planning: is the process of determining if the company’s production

capacity meets the production goals. It can also be referred to as CRP or capacity planning. This CRP
system first analyses the company’s planned manufacturing schedule. Later, this method examines if
the production schedule has the capability to meet the capacity in real.

If the company identifies the production capabilities to be insufficient, it will change its production
goals to align it with the capacity. In addition, capacity planning conjointly works with materials
requirement planning ensuring the company’s physical assets to meet manufacturing requirements.
Steps of Capacity Requirements Planning
An important point to note here is that capacity planning depends on the accuracy of the data that is
used for the planning process. If the company is still relying on spreadsheets or other disparate
systems for data, the information they garner may not be accurate or updated. These data will not be
of much use during the planning process.
On the contrary, if the company relies on automated software like an ERP system, accurate, relevant
and updated information can be acquired which will be very helpful for the planning process. The
software has the capability to extract data in real time.
When determining capacity requirements planning, the following steps must be followed–
1. Examine current capacity:
In this step, various aspects have to be considered. Information should be collected regarding time
studies. Further, live data should be collected regarding equipment capabilities. Other aspects like the
number of hours and available shifts, absenteeism and supply chain variables such as vendor
performance, lead times and inventory data should be analysed.
2. Create a robust demand plan:
The development of a demand plan is crucial for capacity planning. Relying on supply chain
management software will help in acquiring accurate data as it will allow aggregate demand planning,
based on production time to calculate work centre capacity, find out bottlenecks in advance, analyse
the what-if scenarios, master scheduling and others.
3. Decide on capacity modification requirements:
The first two steps give you a clear understanding of capacity and demand. This step allows you to
make adjustments in determining demand. Decide if additional shifts or overtime is needed. Analyse
if certain production aspects have to be outsourced. So if you find the demand to be consistent,
consider purchasing additional equipment.
Types of Capacity Requirements Planning:

1. Workforce Capacity Planning:

Workforce capacity planning pertains to the management of your human resources. In this type, the
total hours to work on a project per week has to be figured out. To calculate the number, multiply the
number of workers you have on the project by the number of hours they work per week.

Capacity planning for this can be computed using this formula:

(Workers) x (Shifts) x (Utilization) x (Efficiency)

2. Product Capacity Planning:

The product capacity planning type is used to find out production capacity to meet the fluctuations
regarding the demand for the product. This type of planning ensures that you have the right
materials/resources in hand to respond to market demands. Plus, production capacity planning allows
for any modifications when the demand changes.

3. Tool Capacity Planning:

Tool capacity planning is one of the important types of capacity planning. It helps to forecast the
resources required and assists with the allocation of resources at the right time. It means that this
capacity planning ensures that you have the right resources and the correct amount of tools to
complete your tasks. Tools used include assembly line parts, machinery etc.

Conclusion:

Finally, capacity planning deals with predicting the expected consumer demands and making sure that
the resources are available to meet those requirements. So as the business plans for capacity, it
ensures that the right amount of resources is available to meet the current and future demand. For
capacity management, inputs are taken from multiple roles of the business to develop an accurate
capacity plan.
 MAINTENANCE MANAGEMENT

Maintenance management is the systematic process of planning, organizing, and controlling

maintenance-related activities and upkeep of physical assets.

Maintenance management is an essential practice to ensure optimal performance of a company’s

equipment and infrastructure. It involves tracking the company’s assets and overseeing maintenance
operations. How? By repairing machines and utilizing procedures such as regular inspections and
cleaning. These actions help anticipate the end of the equipment’s lifecycle.

The primary objectives of maintenance management are

1. Optimizing maintenance costs,

2. Improving asset life cycles, and
3. Reducing unplanned equipment breakdowns.

5 types of maintenance:

1)Corrective Maintenance

Corrective maintenance involves repairing equipment after a breakdown has occurred. It is used when
a failure is unexpected or cannot be predicted in advance.

2)Systematic Preventive Maintenance:

Preventive maintenance involves performing regular maintenance tasks to reduce the risk of
equipment failure. It involves replacing components and parts regularly to improve machine
productivity. With regular inspections, technicians can effectively prevent breakdowns, failures, and
premature wear.

3)Conditional Preventive Maintenance:

Conditional maintenance involves performing maintenance tasks based on equipment conditions. This
type of maintenance is suitable for equipment that can be monitored through sensors. It helps to detect
problems before they become critical.

4)Predictive Maintenance:

Predictive maintenance involves using data and analysis to predict when a failure might occur. It
utilizes real-time monitoring techniques and data analysis to detect trends and anomalies that could
indicate an impending failure. This helps to reduce expenses caused by :
  unexpected breakdowns
 downtime
 troubleshooting operations

5)Curative Maintenance:

Curative maintenance is closely related to the end of a machine’s life. This method is used when
equipment breaks down and repair options are exhausted. Curative maintenance is a last-resort
approach when corrective and preventive maintenance have failed.

INDUSTRIAL SAFETY

Industrial safety and maintenance refer to protecting employees and assets by minimizing hazards,
risks, accidents and near misses through managing all operations and events within an industry.
Maintenance involves any actions necessary to keep equipment in a serviceable condition, including
servicing, repair, modification, overhaul, inspection and condition verification. Studying industrial
safety and maintenance is important for retaining equipment in an acceptable condition and protecting
employees through managing risks.

Industrial Safety:

 Industrial Safety is mainly concerned with minimizing hazard in the industries. Hazard is a
state physical or chemical having Potential to injure the person.
 Industrial safety refers to the safety management practices that applies to the industrial Sector.

Need for industrial Safety:-

 cost saving
 Increased productivity
 legal reasons.

Safety measures in factors :-

 proper protection against fire and explosion, hazard

 sufficient lighting, ventilation, drainage, escape ways etc.
 An effective lubrication schedule should be worked out and implemented...
 All hoisting devices must be equipped with fell Safety.
 while operating crane, the operators should be entirely guided by standard signal
 Objects which are wet or dry Should be completely wiped off dry before handling them.
 The unskilled industrial workers should be property trained.

What is Industrial Safety:

 The term “Industrial safety” is a set of safety protocols, policies and regulations to protect the
workers, workplace, work equipment and environment from hazards. It acts as a corrective
 measure that is reviewed and approved by safety experts periodically to ensure a safe
workplace and sustainable business operations.

Why Industrial Safety is necessary:

 With the alarming rate of industrial accidents happening every year, industrial safety is a
crucial step save human lives. Moreover, workers must be educated on how to handle the
equipment and basic safety procedures for adequate safety.

Let’s look at some main reasons why industrial safety is important,

1)Moral responsibility:

It is the duty of care of an employer to affirm the basic morale of a workplace as it costs lives, longer
recovery time, lost productivity and heavy personal inconvenience when injured. It is also the
responsibility of an employer to be ethical and create a safe working environment.

2)Legal responsibility

ILO standards on Occupational Health & Safety proffers essential tools for employers, workers, and
government in order to provide maximum safety at work. International Labour Organization (ILO)
defines the global standards of protecting human rights that include working duration, employee
welfare, safe practices, wages & compensation, labour requirements and other safety aspects which is
practised internationally.

The Factories Act 1948 (amended on 1987) formulated national policies in India specifically for
occupational safety health in factories & docks in India. It deals with the health, safety, efficiency &
well-being of workers at the workplace.

3)Financial Responsibility

It is a legal requirement for employers to have insurance and also to plan for uninsured costs with
their consequences. This will reduce the financial liability towards loss of property, equipment and
productivity.

4)Objectives of Industrial Safety

In any incident, industrial safety is the first discussion that is to be verified again to avoid future
accidents. Every hazardous work has its own unique set of safety regulations but it can be distilled
into a set of objectives that will assure the safety of any industry. The objectives are

 To achieve a safe and accident-free workplace

 To reduce the business’s cost to accident compensation and insurance claims related to
workplace accidents
 To ensure a high-morale work environment for a safer and smoother productivity
 To have competent supervision on the workers to maximize protection

Important considerations for Industrial Safety

Some of the important considerations for Industrial safety are listed below:

 Health & Safety Management Systems

  Managing Risk
 Risk Assessment
 Monitoring & measuring Health & Safety
 Manage workplace health & safety

Work activities that may lead to Accidents

 Fire & Electricity

 Equipment & machinery
 Work at height, confined space, lone working
 Hazardous substances
 Manual handling, load handling equipment
 Movement of people and vehicles in workplace
 Mental-ill health, substance abuse, violence at work
 Poor work environment

PLANT LOCATION

Plant location;

Plant location can be defined as the determination of that location which when considering all
factors of production will provide minimum cost delivered to the customer. Ideal location is the
best location which has the lowest cost of production per unit at the time of establishment. A plant
is a place where men, material, machine, money are brought together for the transformation
process. For a good plant location there should be a balance between various factors
affecting plant location.

PLANT LOCATION:

Location of facilities is a problem associated with the planning phase of a factory or even a service
sector. Small entrepreneur to big industrial houses, hospital to a fashion designer shop and school to a
five-star hotel start the first planning activity with questions: Where to locate the site so that no
change is needed for years to come. It is a very vital decision which has long term implications. This
type of decision is called as a strategic decision. The selection of location is a key-decision as large
investment is made in building plant and machinery. It is not very easy to answer a location problem.
The reasons are: (i) uncertainty in future, (ii) complexity and conflicting factors associated with the
site selection problem, (iii) constraints and limitation of resources to produce a site, etc.

Plant location or the facilities location problem is an important strategic level decision making for an
organization. One of the key features of a conversion process (manufacturing system) the efficiency
with which the products are transferred to the customers. This fact will include the determination of
where to place the plant or facility. The plant location should be based on the company's expansion
plan and policy, diversification plan for the products, changing market conditions, the changing
sources of raw materials and many other factors that influence the choice of the location decision. The
purpose of the location study is to find an optimum location that will result in the greatest advantage
to the organization.

 Holmes defines plant location problem as one determining "that location which,
consideration of all factors affecting products delivered-to-customers cost of products to be
manufactured, will afford the enterprise the greatest advantages obtained by virtue of
location". Plant location can be defined as the determination of that location which when
considering all factors of production will provide minimum cost delivered to the customer.
 Ideal location is the best location which has the lowest cost of production per unit at the time of
establishment. It is one which results in lowest production cost and least distribution per unit.
The selection of a site is a long term and almost a right line decision for the enterprise. A plant is
a place where men, material, machine, money are brought together for the transformation
process. For a good plant location there should be a balance between various factors affecting
plant location.

Definitions:

"Plant location is the function of determining where the plant should be located for maximum
operating economy and effectiveness."

- Prof. R.C. Davis

There are three phases in location:

1. Selection of a general territory or region - North / South, States

2. Selection of the community or locality - Urban, Rural, Suburban

3. Selection of the actual or specific site

1. Selection of region: This refers to the selection of particular geographical zone or state taking into
consideration such factors as nearness to market and sources of raw materials, basic infrastructure
facilities available, climatic conditions and taxation and laws.

2. Selection of a community: This refers to the selection of the specific locality within the selected
region. The factors that influence the selection of community are availability of labour, community
attitude, social structure and service facilities.
Generally, the following alternatives are available:
(1) Urban area.
(2) Rural area
(3) Semi-urban area near the urban area.

3. Selection of a particular site: This refers to the selection of specific site within the community.
The factors that influence the site selection are the cost of the land, availability and suitability of the
land. The type of manufacturing process may dictate the site selection.

LAYOUT PLANNING

OBJECTIVES:

 Importance of designing proper layout.

 Various characteristics of process and product layout
 Basic techniques of designing of process and product layout
 Other types of layouts

Layout planning involves decisions about the physical arrangement of economic activity centre within
a production or service facility. An economic activity centre could be a machine, a worker or group of
employees, a workstation etc. It is anything which occupies space and is used in production of an
output. Layout planning is an important decision for management as a proper layout has a direct effect
on the efficiency of production. The proper and effective arrangement of economic centres ensures the
smooth and rapid movement of material, from the raw material stage to the end product stage. Layout
planning involves decisions regarding following aspects:

 Determining type of centres: depends on type of jobs involved in production of a good or

service. For instance, a motorcycle service station should include specific service centre for
each motorcycle, tool station for each unit and a common tool centre used by all the units. It
should not include sitting space either for workers or for customers as it would hinder
working and decrease productivity. Similarly, a barber shop includes economic centres i.e.
centres which occupy space like sitting chair for customer, space for movement of workers,
common and special storage space for tools and a waiting area.
 Determining space and capacity for each centre: is very important for uninterrupted and
unhindered movement of man and material. For instance, in motorcycle service station and
barber shop example, there should be sufficient space in between each service centre as every
one of them is an independent economic centre so workers or employees engaged in activities
at these centres should have enough space to carry their activity unhindered. On other hand, in
some service centres such as banks and retail stores where movement of customers is part of
production process the layout design should involve space for movement of customers as
well.
 Placement of different service centres : An educational institution has various economic
centres in the form of teaching and non-teaching departments, library centre, canteens and
hostels. The placement of each service centre in relation to each other is an important aspect
of layout planning. Library should be placed near to teaching departments but away from
canteen and similar decisions have to be considered. In this context, placement of centres has
two aspects: relative location i.e. a particular space that a centre occupies relative to other
centres and absolute location i.e. particular space that a centre occupies within a facility. This
concept has been illustrated in educational institution example. Such institution might have
numerous departments. For instance, departments related to social sciences are grouped in
one centre whereas departments relating to sciences to some other centre. Relative location of
canteen w.r.t. teaching departments should be such that it does not disturb teaching function.

IMPLICATIONS OF LAYOUT PLANNING:

Plant layout is an important decision as it represents long-term commitment. Selection and designing
of a proper layout can help immensely in communicating company’s strategies. An effective layout
can help a company to achieve its competitive priorities as it would:

 Facilitate the flow of materials and information: for instance, a service station is designed
in such a manner that tools and material are placed at each service station to reduce
movement of workers. In a university a dean’s office is located close to Vice Chancellors’
office to facilitate easy flow of information.
 Efficient utilization of labour and equipment : As seen in retail example maximum
customers are attracted to grocery store so its utilization would be maximum. But an
electronic store might not attract customers all the time thereby reducing utilization of its
labour. So, to increase its utilization either space allocated to electronic store can be decrease
or a new store can be placed in against it. This can be done as electronic store has no linkage
with any other store. But, in car wash example as shown below situation is different.
FACTORS INFLUENCING PLANT LOCATION

1)Availability of Raw Materials:

As a manufacturing unit is engaged in the conversion of raw materials into finished products, it is
very essential that it should be located in a place where the supply of raw materials is assured at
minimum transport cost. The sugar industry, the paper industry, the iron and steel industry, industries
engaged in the solvent extraction of oil from rice bran, the China clay washery, factories
manufacturing low tension porcelain insulators, and the like should be located near the sources of
their raw materials. The heavy concentration of the sugar industry in Bihar and Uttar Pradesh is due to
the fact that these two States are the leading producers of sugarcane in the country. Similarly, the steel
industry is concentrated in Bihar, West Bengal, Orissa and Madhya Pradesh because of the availability
of raw materials in these states. The location of the paper mill at Dandeli, an iron and steel industry at
Bhadravathi, the sandalwood oil factory at Shimoga, the Vijayanagar Steel Plant at Donimalai, all in
Karnataka, are examples of factories located near the sources of their raw materials. Nearness to raw
materials offers such advantages as:

(i) Reduced cost of transportation;

(ii) Regular and proper supply of materials uninterrupted by transportation breakdowns; and

(iii) Savings in the cost of storage of materials.

Raw materials in this context may be classified into two types, viz., weight-losing or gross materials
and non-weight losing or pure materials. Weight-losing materials lose much of their weight in the
process of manufacture. The cost of transporting these raw materials from the source of supply to the
place of manufacture is more than the cost of transporting the finished products from the factory to the
market. Examples of these raw materials are iron ore, sugarcane, coal, timber and limestone.
Industries using such materials tend to be located near their sources of supply to save the cost of
transportation. Non-weight-losing materials, as the term itself implies, do not lose their weight in the
process of manufacture. Instead, they grow in weight when they are converted into finished products.
The cost of transporting the finished product is, therefore, more than the cost of transporting the raw
materials. Examples of non-weight-losing materials are cotton and woollen. These materials exercise
little influence on plant location.

2)Availability of Labour:

Despite the talk of mechanisation and automation, the importance of labour on the industrial side has
not been completely lost. Labour is an important factor in the production of goods. An adequacy of
labour supply at reasonable wages is very essential for the smooth and successful working of an
organisation. The development of the plantation industry in India has been due to, among other things,
the availability of adequate labour at cheap rates. The labour required may be skilled or unskilled. It is
skilled labour which influences plant location because unskilled labour is supposed to be available
everywhere, specially in our country. The location of the glass industry at Firozabad, the woollen
carpet industry at Mirzapur, the lock industry at Aligarh and the manufacture of silk sarees at
Dharmavaram and Kanjeevaram in the south, are examples of industries which are located near the
supply centres of skilled labour. But nowadays, the influence of skilled labour on plant location has
lost some of its significance because labour has become mobile.

Labour, however, may be a deterrent factor in the development of industries in a particular area. The
attitude of workers, union activities and industrial disputes drive away the existing factories and
discourage new industrialists from locating new factories in particular places. The exodus of
industrialists from Calcutta and Madras, now Chennai, in search of new locations in the past
illustrates this point.

3)Availability of Water:

Some industries require plentiful supply of water for their working. Some of these are: fertilizer units,
rayon manufacturing units, absorbent cotton manufacturing units, leather tanneries, bleaching, dyeing
and screen-printing units. These factories must be located in places where, water is available in
abundance. Water may be obtained from the local authority, from the canal, from a river or a lake, or
by sinking a borewell. In any case, the supply of water should be considered with respect to its
regularity, cost and purity.

4)Availability of Power:

Power is essential to move the wheels of an industry. Coal, electricity, oil and natural gas are the
sources of power. Where coal is the source of power, as in the case of the iron and steel industry, the
factory has to be located near the coal fields. Examples of such industries are: the iron and steel
industry in Germany, Pennsylvania, in the U.S.A. and Jamshedpur in India. Industries using electricity
have to be located at a place where electric power is available regularly and at cheap rates. The
aluminium extraction plant and a semi-mechanised bakery have to be located in places where electric
power is cheaply available and in plenty. Electricity as a source of power has become very significant
in modern industries because of ease in handling, its cleanliness, flexibility and cheapness. In fact, its
emergence as a source of power has reduced the importance of coal as a natural factor influencing
plant location. Similarly, huge pipelines traversing long distances have kept up oil supplies to
industries located in different regions.

5)Transport Facilities:

While making a study of a location, an entrepreneur considers the question of the availability of
transport facilities. Transport facilities are essential for bringing raw materials and men to the factory
and for carrying the finished products from the factory to the market. A place which is well connected
by rail, road and sea is ideal for a plant location. It may be said that industry follows transportation. In
other words, places with well-developed means of transport attract industries. In extreme cases,
transport may follow the industries. For instance, if a public sector unit is started in a remote place,
the Government will naturally provide transport facilities to cater to the requirements of the unit. But,
strategically speaking, a place with existing transport facilities is perfect for locating a plant.

6) Local laws and government policies:

The influence of Government policies and programmes on plant location is apparent in every country,
particularly in planned economies like ours. In the name of balanced regional development, many
backward regions in India have been selected for the location of new industries, which would generate
the region’s economy and on a larger canvas, the national economy. The establishments of textile
units in Rajasthan, Orissa, Assam and Punjab, sugar factories and distilleries in Andhra Pradesh, Tamil
Nadu, Karnataka and Maharashtra, steel rolling mills in Assam, Madhya Pradesh, Kerala and Bihar,
and a tyre and tube factory and electric lamps factory in Kerala are all instances which show that new
industries have been located in these economically backward states. The Government of India has
been influencing plant location in a number of ways. Some of these are:

 Licensing policy;
 Freight rate policy;
 Establishing a unit in the public sector in a remote area and developing it to attract
 other industries;
 Institutional finance and government subsidies.

The influence of government policies on plant location began to be felt only after Independence. But,
until Independence, purely commercial considerations decided industrial location. Such has been the
case with TISCO and IISCO. It was because there was no over- solicitous government which was
ready to come to the rescue of a sick unit to save it from bankruptcy, no ideologue anxious to give a
face-lift to the losing public sector concerns by allowing them to jack up prices, give protection and
capitalise losses by converting them into equity.

PLANT LAYOUT
Plant layout is companion problem to plant location. A layout is the physical configuration of
departments, workstations and equipment in the conversion process. It is the spatial arrangement of
physical resources used to create the product. Plant layout is the physical arrangement of buildings,
machines, materials and services required to facilitate efficient operation of the production system. It
is the configuration of departments, work centres and equipment in the conversion process. It is a
floor plan of the physical facilities, which are used in production. It refers to the physical arrangement
of production facilities. In short, it is the disposition of various facilities and services within the site or
location selected previously.

Definition: Plant layout: refers to the arrangement of physical facilities such as machines,
equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the lowest
cost and with the least amount of handling in processing the product from the receipt of raw material
to the delivery of the final product.

According to Moore "Plant layout is a plan of an optimum arrangement of facilities including

personnel, operating equipment, storage space, material handling equipment and all other supporting
services along with the design of best structure to contain all these facilities".

"The overall objective of plant layout is to design a physical arrangement most economically which
meets the required quantity and quality" -Riggs.
"Plant layout ideally involves the location of space and arrangement of equipment in such a manner
that overall operations costs be minimized". -J. Zundi

Costs associated with plant layout decision are:

1. Cost of space

2 Cost of production delays if any, which are indirect costs

3. Cost of spoilage of materials

4. Cost of movement of material from one work area to another

5. Cost of labour dissatisfaction and health risks

6. Cost of changes required, if operational conditions change in the future. This is a b Seres coat

7. Cost of customer dissatisfaction due to poor service (quality, delivery, flexibility, responsiveness
cost) which may be due to poor layout.

Importance of Layout Decisions:

Production managers are often questioned about the importance of a new or existing facilities layout.
In addition to the fact that production managers work for improvement towards design and effective
use of operation systems, they should also know the importance of layout decision in terms of money.
Some of these are: -

1. Layout decisions require substantial investments of money and effort.

2. Layout decisions involve long-term commitments.

3. Layout decisions have significant impact on cost and efficiency of short-term operations
The Need for Layout Decisions:

Production manager should be aware of the fact that the need for a proper and effective layout facility
is always there. The need for layout planning arises both in the process of designing new facilities and
in redesigning existing facilities. Some of the common reasons faced by the organization include:

1. In-efficient operations (high cost/bottlenecks that hamper true potential).

2. Accidents or safety hazards.

3. Changes in design of products or services.

4. Introduction of new products or services.

5. Changes in volume of output or mix of output.

6. Changes in methods or equipment.

7. Changes in environmental and legal requirements.

Objectives of Plant Layout:

The primary goal of the plant layout is to maximize the profit by arrangement of all the plant facilities
to the best advantage of total manufacturing of the product.

A well-designed plant layout is one that can be beneficial in achieving the following objectives:

 Minimizing material handling and material handling costs

 Facilitates the manufacturing process
 Minimize overall production time
 Efficient and optimum utilization of men, material and machines
 Proper and efficient utilization of the available floor space
 Flexibility with regard to changing production conditions. (Future changes in volume of
production, range of products, changes in processes etc.)
 Reduced congestion of men, materials and machines
 Effective supervision and control of operations.
 Improved work methods and reduced production cycle times
 Simple plant maintenance
 Increased productivity and reduced costs
 Minimize investment in equipment.
 Transportation of work from one point to another point without any delay
 Proper utilization of production capacity.

PRINCIPLES OF PLANT LAYOUT:

1. Principle of integration: A good layout is one that integrates men, materials, machines and
supporting services and others in order to get the optimum utilization of resources and maximum
effectiveness.

2. Principle of minimum distance: This principle is concerned with the minimum travel (or
movement) of men and materials. The facilities should be arranged such that, the total distance
travelled by the men and materials should be minimum and as far as possible straight-line movement
should be preferred.
3. Principle of cubic space utilization: The good layout is one that utilizes both horizontal and
vertical space. It is not only enough if only the floor space is utilized optimally but the third
dimension, i.e., the height is also to be utilized effectively.

4. Principle of flow: A good layout is one that makes the materials to move in forward direction
towards the completion stage, i.e., there should not be any backtracking

5. Principle of maximum flexibility: The good layout is one that can be altered without much cost
and time, i.e., future requirements should be taken into account while designing the present layout.

6. Principle of safety, security and satisfaction: A good layout is one that gives due consideration
to workers safety and satisfaction and safeguards the plant and machinery against fire, theft, etc.
7. Principle of minimum handling: A good layout is one that reduces the material handling to the
minimum.
Factors affecting Plant Layout:
➤ Nature of plant location - size, shape, available floor space and topography of the site affects plant
layout
➤ Nature of product - size, shape, characteristic features of the product, product variety affects plant
layout
➤ Nature of production system - manufacturing process
➤ Volume of production - large scale or small scale
➤ Nature of machines, equipment’s, materials and material handling systems (size, noise, vibration)
➤ Climatic conditions
➤ Managerial policies
➤ Human factor and working conditions - safety and employee facilities.
➤ Purchasing and inventory policy - storage
➤ Future requirements (possibility of future expansion)
➤ Storage of in process inventory
➤ Disposal of wastes
➤ Design of building
TYPES OF PLANT LAYOUTS
There are mainly five types of plant layout;
1)Product or line layout
2)Process or Functional layout
3)Fixed position or stationary layout
4)Cellular or Group Layout
5)Combination or Hyond Lay
1)Product or Line Layout

product layout various facilities, suds as machine, equipment, work force, etc., are located as per the
of operation. It is the arrangement of machines and equipment at sequence definite stage according to
the sequence of operations. The position and order in the sequence for a machine performing
particular function is fixed. Once a machine is in line, it can perform only the operation which is
present in the sequence. since the machines and equipment’s are arranged in one line depending upon
the sequence of operations required for the product, it is also called line layout.

The material moves to another machine sequentially without any backtracking or deviation the output
off same machine becomes spur of the cunt machine. Since there is continuous Bou of materials
during the production process from raw materials to finished products, the product layout is used for
continuous type of production systems, producing items of same continuously on large scale, it is used
for mass production of standardized products. Product layout is preferred when production is
continuous, part variety is less production volume is high and part demand is relatively stable.

Ex- Assembly line such as automobile factory. A typical prated layout is show in figure 2.4.
Characteristics
1. High volume of production
2 Low product variety
3. Steady demand in near future
4. Highly standardized products

Advantages:

 Ensures smooth and regular flow of raw materials and finished goods.
 Reduced material handling time and cost due to straight flow and short route absence of
backtracking
 Smooth and continuous operations
 Economy due to short processing time
 Economy in materials and labour by minimizing waste
 Simple and effective inspection of work
 Maximum utilization of available floor space
 Manufacturing costs are low and per unit cost decreases due to large scale and continuous
production.
 Compared to process layout, it requires less space for same volume of production.
 The through-put time (or product cycle time) is less as compared to process layout due to
fewer chances of congestion and less waiting time on machine.
 Easy production planning and control and better coordination of different activities may be
achieved.
 Perfect line balancing which eliminates bottlenecks and idle capacity.
 Manufacturing cycle is short due to uninterrupted flow of materials.

Disadvantages:

 Higher initial capital investment in special purpose machine (SPM). Comparatively high
investment in equipment’s is required (standby machines are required)
 High overhead charges
 Product layout is inflexible in nature. A change in product design may require major
alterations in the layout
 Product variety is very much limited
 Breakdown of one machine will disturb the production process. (stoppage of work due to
machine break down)
 Requires high capital investment
 Supervision is more difficult
 Since low job variety, lower job satisfaction and more boredom and monotony to the workers

(b) Process or Functional layout:

All machines performing similar type of operations are grouped at one location in the process layout.
Process layout is also called as functional layout since machines performing similar type of functions
are located in one department. For example, all milling operations are carried out at one place while
all lathes are kept at a separate location. Grinding or finishing operation is kept at a separate location.
This type of layout is preferred when the product is not standardized and the quantity produced is very
small.

The flow paths of material through the facilities from one functional area to another vary from
product to product. Usually, the paths are long and there will be possibility of backtracking. It is most
suitable for intermittent production system i.e., job-shop and batch type of manufacturing systems
where small quantities of variety of products are manufactured. This functional grouping of facilities
is useful for job production and non-repetitive manufacturing environment. Ex-Drilling machines are
grouped together in drilling section, milling machines in milling section, etc.

A typical process layout is shown in figure 2.5.

Characteristics:
➤ Low volume
➤ More product variety
➤ Demand is small
➤non-standardized product.
➤ High variety manufacturing environment
➤ Frequent change in product design
Advantages:
➤ More flexibility in production and scope for expansion (Greater flexibility of resource
➤A high degree of flexibility with regards to work distribution to machines and work
➤Lower initial capital investment is required on account of comparatively less number machines and
lower cost of general-purpose machines.
➤ Lower capital investment in machines.
➤ The overhead costs are relatively low
➤ Higher utilisation of production facilities.
➤ Machine break down does not disturb production schedules and operation (Breakdown of one
machine does not disturb the production process).
➤ In process layout machines are better utilized and fewer machines are required
➤ Effective supervision is possible. Specialized supervision of each section
➤High degree of variety in product is possible. Different product designs and varying production
volumes can be easily adopted.
➤Higher job satisfaction. The diversity of tasks and variety of job makes the job challenging and
interesting
Disadvantages:
➤More material handling time and cost and reduced material handling efficiency due to backtracking
and long movements
➤ Longer cycle time and processing time due to longer material flow and waiting is different
departments which increases the in-process inventory.
➤ Throughput (time gap between in and out in the process) time is longer.
➤Production planning and control becomes difficult
➤ Inspection is more frequent resulting in higher supervision costs.
➤ Requires more floor space.
➤ Require skilled workers to handle product variety and different design resulting higher labour cost
➤Result in large amount of work in process inventory and more storage area. Space and capital are
tied up by work-in-process
➤ Lowered productivity due to number of set-ups
c) Stationary or Fixed Position or Location Layout:
Fixed position layout involves the movement of manpower and machines to the product which
remains stationary. Here, men, machines and equipment are moved to the place where the material
remains in the fixed position and all the manufacturing activities are carried out. The movement of
men and machines is advisable as the cost of moving them would be lesser. This is also called the
project type of layout. Example of fixed position layout is shown in figure 2.6.
This type of layout is useful when the product being processed is very big, heavy or difficult to move.
When the size of the job is bulky and heavy and where the semi-finished goods and finished goods are
of such size and weight that their movement from one place to another is not possible then this type of
layout is preferred. Example of such type of layout is locomotives, boilers, generators, wagon
building, aircraft manufacturing, ship building, bridges, mines etc.

Advantages
➤ The investment on layout is very small.
➤ Lower labour cost and effective labour utilization.
➤ Lesser floor space and saving in time.
➤ Movement of material is minimum.
➤Layout is simple and flexible
➤Flexibility for change in design, operation sequence, labor availability, etc.,
exists in this layout.
➤Large project type of jobs such as construction are suited in this layout
➤Adjustments can be made to meet shortage of materials or absence of workers by changing the
sequence of operations.
➤Easy for products which are difficult to move.
➤This layout is very cost effective when many orders of similar type are existing in different stages of
progress.
➤Helps in job enlargement and upgrades the skills of the operators.
Disadvantages:
➤ Movement of machines and equipment to production centre is costly.
➤ Highly skilled workers are required.
➤ High capital investment due to long production period and long duration to complete
a product.
➤ Large space is required for storage of material and equipment near the product.
➤ As several operations are often carried out simultaneously, it requires careful project
planning and focused attention on critical activities. Otherwise, confusion, delay and conflict may
arise.
(d) Group or Cellular Layout (Group Technology also called Cellular Manufacturing
System):
Cellular layout is based on the group technology (GT) principle. The application of group technology
involves two basic steps; first step is to determine component families or groups. The second step in
applying group technology is to arrange the plants and equipment used to process a particular family
of components. Components that may be similar or dissimilar but which require similar
manufacturing processes and/or similar setups of the machine are grouped together and go through a
particular group of such machines which may be dissimilar. For ex-A turning machine, a drilling
machine and a polishing equipment may be put together as a group using which a group of
components may be manufactured.
This concept is called Group Technology and each of these groups of machines is called a 'cell'. A
cell, thus, consists of a group of machines and a 'family' of related parts being produced on each of
this group of machines. Each cell is capable of satisfying all the requirements of the component
family assigned to it. Since the manufacturing plant consists of several cells manufacturing using such
Group Technology is also called Cellular Manufacturing System (CMS) Cell is like a mini- factory
within the factory, which is managed by a cell team. It is a self-sufficient unit in which all operations
required to make the components can be carried out. CMS allows batch production to give
economical advantages similar to those of mass production with additional advantage of flexibility,
normally, associated with job shop production system.
In group technology layout the objective is to minimize the sum of cost of transportation and cost of
equipment. So, this is called as multi-objective layout. Thus, group is a combination of the product
layout and process layout since it possesses the or cellular layout 6 It combines the advantages of both
layout systems. Shorter processing times, better team attention to quality problems, reduction of work
in process, lower material handling costs and simpler scheduling can be achieved.

Advantages:
1)Processing times are reduced (Shorter processing time)
2)Less work - in - process inventory
3)Product variety is possible
4)Sudden orders can be met without much problem
5)Employees have more job satisfaction and sense of belonging in cell manufacturing.
6)Production control methods could be simpler
7)Quality can also improve because of reduced material handling and effective supervision of cell
team
8)Lower material handling time and costs
9)Simpler scheduling.
10)Increase in component standardization and rationalization.
11)Increase in reliability of estimates.
12)Increase in effective machine operation and productivity
Disadvantages:
1. Difficulty faced during initial planning and implementation.
2. High cost in layout.
3. Difficult to bring too many or too often changes.
4. Difficult to produce new part or non-standardized part.
5. Too much dependence on GT curtails flexibility of the cellular manufacturing system
6. This type of layout may not be feasible for all situations.
7. It is difficult to form cells if the product mix is completely dissimilar
8. Improper cell formation may turn out to be inefficient in terms of time, investment and humanistic
aspect
9. Inadequacies in employee training and involvement could come in the way of cell manufacturing.
5) Combination Layout
A combination of product and process layouts combines the advantages of both types of layouts.
Combination of product and process layout is known as combination or combined layout. A
combination layout is possible where items are being produced in different sizes and types. Here
machinery is arranged in a process layout but the process grouping is then arranged in a sequence to
manufacture various types and sizes of products. It is to be noted that the sequence of operations
remains same with the variety of products and sizes. Combined layout is followed in manufacturing
concerns where several products are produced in repeated numbers with no likelihood of continuous
production. Ex- Files, hack saws etc.
CAPACITY PLANNING
Capacity Planning: Facility planning includes determination of how much long-range production
capacity is needed, where additional capacity is needed, where production facilities should be located
And the layout and characteristics of the facilities.
Types of Capacity:
1. Fixed capacity: The capital assets (buildings and equipment’s) the company will have at a
particular time are known as the fixed capacity. They cannot be easily changed within the intermediate
range time horizon. Fixed capacity represents an upper limit to the internal capacity, that the company
concentrates can use in its efforts to meet demand.
2. Adjustable capacity: It is on and the size of the workforce, the number of hours per week they
work, the number of shifts and the extent of sub-contracting.
3. Design capacity: of a facility is the planned rate of output of goods or services under
normal or full-scale operating conditions. It is also known as installed capacity. It sets the
maximum limit to capacity and serves to judge the actual utilization of capacity.
4. System capacity is the maximum output of a specific product or product-mix that the system of
workers and machines i.e, the productive system is capable of producing as an integral whole. It is
less than or equal to the design capacity of the individual components because the system may be
limited by,
(a) the product-mix
(b) quality specifications and
(c) the current balance of equipment and labour
5. Potential capacity is that, which can be made available within the decision horizon of the top
management.
6. Immediate capacity is that, which can be made available within the current budgeted period.
7. Effective capacity is the capacity which is used within the current budget period. It's also known as
practical capacity or operating capacity.
8.Normal capacity be rated capacity: This is the estimated quantity of output or production, that
should be usually achieved as per the estimation done by industrial. Actual capacity is usually
expressed as a percentage of rated capacity. For example, capacity of a steel plant may be expressed
as 1 lakh tonnes of steel per month. this is also sometimes called as average capacity of the plant.
9. Actual or utilised capacity: This is the actual output achieved during a particular time period. The
actual output may be less than the rated output because of short-range factors such as actual demand.
OPTIMAL PRODUCTION STRATEGIES

Product optimization addresses these manufacturing problems:

 Slow production lines

 Long pending work in progress
 Separate workstations overwhelmed with work in progress
 Unnecessary space being utilized for storage
 Multiple errors that require reworking
 Bottlenecks at workstations
 Extended times for delivery
 Inconsistency in productivity
 Convoluted production process and management

With production optimization, a company is in a better position to understand and manage its
production processes and bottlenecks. Manufacturers optimize the system for productivity and
delivery times. As a result, sales increase, and the company can think about expansion plans for the
future.

Production optimization also monitors a range of performance through indicators, while encouraging
employees to be responsible for eliminating wasteful practices. Some other benefits are reduced
production times, improved productive capacity, and better quality--all at lower production costs.

How does production optimization work?

As with any process, production optimization works with the company first, identifying the main
issues it has in its production process. Once done, the organization needs to have proper goals put in
place, and a manager must be able to answer these questions:

1. Has the organization identified specific bottlenecks and ascertained the needed resources to
achieve production targets?
2. Can the organization provide precise, objective, and quantitative data to improve processes
and increase productivity?
3. What is the strategy of the company? How is it defining achievable goals?
4. Can the organization identify measurement, frequency, and calibration methods in its
production processes?
5. Can the organization identify and manage all possible hurdles to the optimization process
(such as insufficient staffing information, communication, or software)?
6. Can the organization modularize its activities and optimize every module?

Once all these questions are answered, the company needs to consider the various modeling,
simulation, optimization, and control methods it will use. What is the input to each of them?
Is it people or capital, natural resources, or return of investment issues? Is the organization
looking to compete with others in the market, address a new law that has come in, or simply
adapt to market demand? What are the variations the organization faces in each of these
factors and why are there variations? What are the optimal input parameters? How are these
optimal input parameters maintained? Are they always the same?

These considerations will continuously optimize and improve over time. Companies should
learn how they can find and update newer sets of optimal input parameters, especially
because products and raw materials change constantly. The optimal production criteria is
determined by:

 Price
 Quality
 Quicker and better deliveries
 Environment-safe products

Most production optimization methods make use of a major cost function analysis along with
numerous input parameters (factors that can be controlled or not).

Benefits of production optimization

Production optimization can change manufacturing operations and make it efficient on multiple
levels. There are a range of benefits that the organization can achieve if optimization is implemented
correctly:

 Improve the general efficacy of the equipment

 Reduce production delays
 Ensure a reduction in equipment breakdown
 Improve equipment effectiveness
 Monitor the availability of equipment and its performance regularly
 Boost quality and yield performance
 Predict production performance variations with the help of cloud-based ML to analyse
wastage and spot inefficiencies
 Reduce downtime or overtime and any unscheduled maintenance with AI to increase factory
transformation
 Optimize energy usage to save costs and the environment
 Analyse sources of scrap, waste, and any inefficiencies with AI

Production optimization techniques:

After setting the foundation for production optimization, businesses can use these methods to
implement optimization:

1)Forecast market expectations

Every manufacturing business must estimate needed production volumes. Unfortunately, most
organizations do not have estimates for future sales. Sales can be forecast by looking into historical
sales data and prevailing market trends. With advanced reporting tools in place, an organization can
access accurate insights into the company’s sales and inventory.

2)Manage inventory

A key tool to production planning and optimization is a quality inventory management process. This
process is difficult to manually accomplish and should be automated. Automating the inventory
management system will help a company view what resources it has on hand at any time. With a
quality inventory management system, production planners can track inventory levels and automate
stock replenishment. Automated systems can even forecast inventory requirements.

3)Prepare staff for production

Businesses should make sure both equipment and a workforce is available at all times. For good
production optimization, it is important to estimate how many employees are needed in the production
process and what their competency should be. Providing employees with the right tools and the
necessary training on advanced machinery is essential.

4)Standardize steps and time management

Every production process needs to know where and when each step occurs and how much time it
takes to complete. Keep in mind that not all stages occur in sequence--some occur in tandem, while
some others follow a set series. Once the process has been mapped, it becomes easier to understand
how long each process may take to be complete. For any repetitive activity, it is best to standardize
the process.

Also, documenting all similar activities in the manufacturing process sets a baseline for the future,
should there be a change in routes or timings of newer manufacturing processes. Creating a baseline
helps companies speed up the production planning process.

5)Identify possible issues

The best way to anticipate possible problems in the production process is to collect historical data on
similar jobs. With access to processing time, materials used, and failures, a company can apply the
failure mode and effects analysis technique to analyse risk possibilities and reduce the chances of
them occurring. With failure mode and effects analysis, a business will be able to study its processes
in-depth and find ways to reduce the impact of any potential issues in operations.

6)Communicate plans

Employees must be aware of all the plans to optimize production, which can be done via
manufacturing software. The plan, related work orders, and production schedules can be shared so
that employees are aware of their responsibilities at all times and can check on the production system
at any time.

Production optimization does what every business hopes to: constantly produce quality products in
optimal time, keeping with the demands of the market.

SCHEDULING AND SEQUENCING OF OPERATIONS

Scheduling and Sequencing in Operations:
Scheduling and sequencing are integral components of operations management that focus on the
systematic organization of tasks and activities within a production or service environment. These
processes involve creating timelines, allocating resources, and determining the optimal sequence of
activities to enhance efficiency, reduce lead times, and maximize overall productivity. Here, we
explore the key elements, methodologies, and significance of scheduling and sequencing in
operations.
1. Definition and Scope:
Scheduling Defined: Scheduling is the process of assigning resources, time, and dependencies to
tasks or activities. It involves creating a timetable that outlines when specific activities will take place.
Sequencing Defined: Sequencing, on the other hand, is the arrangement of tasks or activities in a
specific order. It determines the logical flow of operations to achieve maximum efficiency.

Scope of Scheduling and Sequencing: Both scheduling and sequencing extend across various
operational domains, including manufacturing, project management, and service delivery. These
processes are fundamental to ensuring that activities are executed in a coordinated and optimized
manner.
2. Objectives:
Optimizing Resource Utilization: The primary objective of scheduling and sequencing is to
optimize the use of resources, including human resources, machinery, and time. This involves
assigning tasks in a way that minimizes idle time and maximizes productivity.
Minimizing Lead Times: Scheduling and sequencing aim to reduce lead times by orchestrating
activities in a logical sequence. This ensures a smooth flow of operations and minimizes delays
between different stages of a process.
Enhancing Efficiency: Both processes contribute to overall operational efficiency by systematically
organizing tasks. This allows organizations to meet deadlines, improve throughput, and achieve better
overall performance.
3. Methods and Techniques:

Gantt Charts: Gantt charts are visual representations of schedules that show the timing and
duration of various tasks. They provide a clear overview of project timelines, dependencies, and
resource allocations.
Critical Path Method (CPM): CPM is a project management technique that identifies the critical
path—the sequence of tasks that determines the minimum time required for a project. It helps in
optimizing project schedules.
Heuristic Approaches: Heuristic approaches involve using rules of thumb or intuitive strategies to
create schedules. These approaches are often employed in scenarios where
Task Dependencies: Scheduling takes into account the dependencies between tasks, ensuring that
activities are sequenced logically and that the completion of one task sets the stage for the next.
Resource Constraints: Resource availability, including human resources, equipment, and
materials, is a crucial consideration in both scheduling and sequencing. Balancing resource
demands helps prevent bottlenecks and delays.
Deadlines and Priorities: Meeting deadlines and prioritizing tasks based on their importance are
key factors in creating effective schedules. This involves understanding the criticality of each task
to the overall project or operational objective.

WORK DESIGN

Introduction:
 Work Design is the study and design of a work system in an organizational context. Work to
begin with, was considered in technological terms. Social scientists later modified the concept
in favour of a behavioural angle. Technologically, work is viewed as tools, techniques and
methods used for production of finished goods. The economic concept of work is associated
with wages and employment. Work design seeks to increase productivity by seeking better
and less expensive ways to perform the functions/tasks. Benefits of improved productivity are
available to employees, managers, shareholders, consumers and people at large.
 In a production unit work exists and so do the work problems originating at individual work
stations. The man- material-machine combination is the focus of any work problem. This is a
part of the entire organization/work system. Work system is sub-system of a larger super
system. Work systems mostly are open, and there are actions-reactions in them, depending
upon the values associated with the work systems. Moreover, there is the work method which
is important for Work Design. Work design is a systematic investigation of desired and
present work systems to get the ideal work systems and methods.
 Figure 5.1 shows the various components of work design. As shown in figure 5.1, a good job
design requires the use of techniques such as job enlargement, rotation, and enrichment;
methods analysis; and principles of motion economy. Methods analysis can be performed
using tools such as the flow process chart, the employee- machine activity chart, and the
principles of motion economy. Work measurement can be done using techniques such as
stopwatch time study and work sampling. (Already discussed)
Assumptions of Work Design:

1) Work systems try to improve productivity and effectiveness.

2) Work systems are in the three states --- design, betterment, improvement.

3) Work design considers all aspects of the work 'system.

4)Work design integrates abilities and talents.

Objectives of Work Design:

The objectives of work design are as follows:

1) Effectiveness and Efficiency: The objective of balancing effectiveness and efficiency is just as
important in the design of the task as in the design of the operation as a whole, although the
consequences of a wrong decision are likely to be less damaging and more casily rectified. The task
must above all achieve the required output, thereafter it should be carried-out at minimum cost.

2) Utilization of Resources: The increasing rate of change due to technological development and
globalization has also increased the pressure to utilize all the resources of the organization fully and
labor flexibility can be seen as an important element of such developments as Kaizen.

3) Task according to Worker Competence: The task must, of course, be within the competence
of the operator, the equipment and the materials used, so the task design process, at its broadest,
involves product/service design, engineering, recruitment and training. In the case of service
operations, where the customer is expected to contribute to the process, it may also involve customer
selection through market segmentation and customer training.
4) Work Measurement: There is also a need for the measurement of work, usually in the form of
the time taken for a task.
METHOD STUDY
METHOD STUDY:
The means of improving ways and means of doing things is called method study. Method study is the
process of subjecting work to systematic, critical scrutiny to make it more effective and/or more
efficient. It helps in analysing the existing methods and to develop a more efficient method for future.
It is one of the keys to achieving productivity improvement. It was originally designed for the analysis
and improvement of repetitive manual work but it can be used for all types of activity at all levels of
an organization.
Method Study is the systematic recording, analysis and critical examination of existing methods
of doing a job in order to develop and install an easy, efficient, effective and less fatigue
procedure of doing the same job at lower costs. Thus, the systematic recording and critical
examination of ways of doing things in order to make improvements is known as method study.
Motion study is basically concerned with finding the best way of doing work. The study of methods
of accomplishing a job by the movement of human limbs and eyes etc is termed as motion study. This
is a part of method study.
Objectives of Method Study:
➤ To study the existing proposed method of doing any job, operation or activity
➤ To develop an improved method to improve productivity and to reduce operating costs
➤ To reduce excessive material handling or movement and thereby reduce fatigue to workmen
➤To improve utilization of resources
➤To eliminate wasteful and inefficient motions
➤To standardize work methods or processes, working conditions, machinery, equipment and tools.
Purpose of Method Study:
It may be noted that method study covers three broad areas:
1. It is a diagnostic tool (location of faults)
2. It is a remedial tool (improvement of situation)
3. It is a constructive tool (sets standard for control)
Benefits of Method Study:
1. Better utilization of manpower and other tangible resources
2. Elimination of unnecessary work
3. Reduction in unnecessary fatigue
4. Identification of bottleneck activities and initiative steps to minimize them
5. Improvement of processes and procedures
6. Improvement in layouts and methods of material handling
7. Improvement in working conditions
8. Improvement and simplification in design
9. Improvement and maintenance of quality
10. Improvement in the flow of production and processes
11. Establishing the standardization in methods
12. Improvement in safety standards
13. Establishing a better physical working environment.
Method-study is a well-established approach for systematic recording and critical examination of
existing and proposed ways of doing work, as a means of developing and applying easier are more
effective methods and reducing cost. Still, the greatest thing about this approach is flexibility with
which it may be used in different situations. Following sequence of steps are involved in it:
STEPS IN METHOD STUDY:
SREDIM
These six steps are adopted sequentially. The procedure used in method-study involves an approach
called SREDIM. The letters in SREDIM stand for a six activities or steps in method study. These
steps are:
1. Select
2. Record
3. Examine
4. Develop
5. Install
6. Maintain
Steps and Procedure to conduct Method Study:
1. Select the method to be studied.
2. Record includes direct observation, collection, recording and presentation of necessary
information and relevant facts of the present method.
3. Examine the recorded information and facts of the existing method critically in an orderly
sequence, using the techniques best suited to the purpose.
4. Develop the most practical, economic, effective and improved method of doing things. This is the
most important step in method study.
This can be done in four ways
✓Eliminating all unnecessary movements or activities.
✓Combine operations or elements.
✓ Change the sequence of operation so that the work delay is reduced.
✓ Simplify the necessary operations/ activity to reduce the work content or time consumption.
5. Install the new improved method as a standard practice.
6. Maintain that standard practice by regular routine checks.
WORK MEASUREMENT
Work Measurement (Time Study):
Once the method is established, the next thing to do would be to set the standard times for the work.
This aspect of work study is called the time study. In fact, work measurement is a pre- requisite to
method study. It is concerned with the determination of the amount of time required to perform a unit
of work.
Work measurement is the application of different techniques designed to measure and establish the
time required to complete a specific job by a qualified person at the defined level of performance. In
brief it is the technique for determining the limited time to perform a specific task.
Objectives / Purposes of Work Measurement:
➤ It determines the most efficient method which takes the least time besides the man power required
for the job
➤ It results in effective labour control
➤ Provides a basis for proper balancing of the work distribution
➤It helps in calculating delivery dates
➤ It helps to compare the work efficiency of different operators.
➤It provides basis for manpower planning.
➤ It is used for arriving at job schedules for production planning purposes
➤ It helps in dividing equipment
Work Measurement Procedure:
1.Select or identify the job to be timed.
2. Obtain all the necessary information
3.The whole job is broken down into smallest possible measurable elements
4. Time is determined for each of the elements using appropriate technique and recorded.
5. Provide allowance for relaxation, fatigue, personal and machine delay and other allowances.
6. Calculate the standard or allowed time
TECHNIQUES OF WORK MEASUREMENT:
For the purpose of work measurement, work can be regarded as:
1. Repetitive work: the type of work in which the main operation or group of operations repeat
continuously during the time spent at the job. These apply to work cycles of extremely short duration.
2. Non-repetitive work: It includes some type of maintenance and construction work, where the
work cycle itself is hardly ever repeated identically
The important techniques of work measurement are:
1.Time Study-The important time study equipment are

The observation and recording of time using stop watch can be either
 Continuous or non-fly back
 Fly back or snap back and
 Split hand or split second
B. Motion picture camera
C. 1. Machine using mixing tapes and disks
2. Synthesis from Standard Data
3. Predetermined Motion Time System (PMTS)
4. Analytical Estimating
5. Estimating
Of all these techniques time study and activity or work sampling are direct observation techniques
whereas the other techniques are indirect or pre-determined techniques which are data based and
analytical in nature
Techniques of Work Measurement:
1. Time Study:
Time study is a work measurement technique for recording the times and rates of working for the
elements of a specified job carried out under specified conditions, and for analysing the data so as to
determine the time necessary for carrying out job at a defined level of performance Time study was
developed by FW. Taylor and is also called stop watch time study as a stop watch is used for making
observations. Measuring time by stopwatch is a good old method and is adapted to measure time for
elements. Presently instead of mechanical watches, electronic watches are being used. Time study is
the original technique of work measurement and it is concerned with the direct observation of work
while it is being done,
Applications of Time Study:
Stop watch time is employed:
1. For checking time standards obtained by other methods.
2. For timing repetitive operations employed in manufacturing different jobs.
3. Where it becomes necessary to break down an activity (involving motions of head, leg, foot, trunk,
etc.) in detail and study.
4. For determining schedules and planning work.
5. For determining standards costs and preparing budgets.
6. For estimating the cost of a product before manufacturing it. Such information is of value in
preparing bids and in determining selling price.
7. For determining machine effectiveness, the number of machines which one person can operate, and
as an aid in balancing assembly lines.
8. For determining time and standards to be used as a basis for the payment of a wage incentive to
direct labour and indirect labour.
9. For determining time standards to be used as a basis for labour cost control
2. Synthesis from Standard Data:
A work measurement technique for building up the time for a job or parts of the job at a defined level
of performance by totalling elemental times obtained previously from time studies on other jobs
containing the elements concerned from synthetic data. It is estimating the standard time on the basis
of previous experience of similar jobs. In this method, work is subdivided into elements for which
standard times are available from previously established time studies and these predetermined
elements times are totaled with appropriate allowances to compute the standard time for the job as a
whole.
The steps involved in synthetic data:
1. Collect all the details about the job (dimensions, tools, methods, conditions.)
2. Analyse jobs into constituent elements (activity grouping to enable synthetic elements to be applied
if relevant)
3. Select appropriate basic times from synthetic data covering contingent factors.
4. Select and apply synthetic data covering contingent factors.
5. Verify details of elemental analysis for job method and condition.
6. Total the basic times, rating and allowances to compute standard time for the job.
Advantages of Synthetic Data:
Although synthesis was originally developed to establish the work content for short batch production
and jobbing work, it can be used to determine times for many other types of work Including repetitive
work provided necessary data is available. The main advantage of synthesis is the reduced cost of
application. By means of synthesis is possible to establish times, which are equally satisfactory for
purpose. planning and production control purpose.
3. Predetermined Motion Time System (PMTS)

A work measurement technique whereby times established for basic human motions, (classified
according to the nature of the motion and condition under which it is made)are used to build up the
time for a job at the defined level of performance. It is a technique where times for basic human
motion are used to compute the time for a job at a define level of performance.
A predetermined time system consists of a set of time data and a systematic procedure which analyses
and subdivides any manual operation of human task into motions, body motion or other elements of
human performance, and assigns to each the appropriate time value. Th system of time data was
originally developed from extensive studies of all aspects of human performance through
measurement, evaluation and validation procedures. The most commonly used PMTS is known as
Methods Time Measurement (MTM).
Advantages of PMTS:
1. Short cycle jobs can be timed accurately
2. Rating, the most difficult part of time study is not necessary.
3. The results obtained are consistent
4. A reasonable estimate of work content can be obtained before the task is actually carried out.
4. Analytical Estimating:
A work measurement technique, being a development of estimating, whereby the time required to
carry out elements of a job at a defined level of performance is estimated partly from knowledge and
practical experience of the elements concerned and partly from synthetic data.
5. Comparative Estimating:
It is a technique in which the time for a job is evaluated by comparing the work with the work in a
similar series of jobs or bench marks, the work content of which has been measured.
WORK SAMPLING
Work sampling was originally developed by L.H.C Tippett in Britain in 1934 for the British Cotton
Industry Research Board. Work sampling is a fact-finding tool. Work sampling is defined as: "a
technique, in which a statistically competent number of instantaneous observations are taken, over a
period of time, of a group of machines, processes of workers. Each observation recorded for a
particular activity or delay is a measure of the percentage of time observed by the occurrence"
It is a technique in which a large number of observations are made over a period of time of one or
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 that activities delay occurs. It is a statistical sampling method which
estimates the time devoted to a given type of activity over a certain period of time by means of a large
number of random spot observations. It provides an period of what proportion of a worker's time is
devoted to work activities. It also estimates the time the estimate worker or machine is idle. Thus, the
proportion of non-working time is calculated as a percentage of the total time.
UNIT – 3
INTRODUCTION:
Automation is a technology concerned with the application of mechanical, electronic, and computer-
based systems to operate and control production. This technology includes automatic machine tools to
process parts, automatic assembly machines, industrial robots, automatic material handling and
storage systems, automatic inspection systems for quality control, feedback control and computer
process control, computer systems for planning, data collection and decision-making to support
manufacturing activities.
TYPES OF AUTOMATION:
Automated production systems can be classified into three basic types:
1. Fixed automation,
2. Programmable automation, and
3. Flexible automation.
1) Fixed Automation

It is a system in which the sequence of processing (or assembly) operations is fixed by the equipment
configuration. The operations in the sequence are usually simple. It is the integration and coordination
of many such operations into one piece of equipment that makes the system complex. The typical
features of fixed automation are:

 High initial investment for custom-Engineered equipment;

 High production rates; and
 Relatively inflexible in accommodating product changes.

The economic justification for fixed automation is found in products with very high demand rates and
volumes. The high initial cost of the equipment can be spread over a very large number of units, thus
making the unit cost attractive compared to alternative methods of production. Examples of fixed
automation include mechanized assembly and machining transfer lines.
2) Programmable Automation:

In this the production equipment is designed with the capability to change the sequence of operations
to accommodate different product configurations. The operation sequence is controlled by a program,
which is a set of instructions coded so that the system can read and interpret them. New programs can
be prepared and entered into the equipment to produce new products. Some of the features that
characterise programmable automation are:

 High investment in general-purpose equipment;

 Low production rates relative to fixed automation;
 Flexibility to deal with changes in product configuration; and
 Most suitable for batch production.

Automated production systems that are programmable are used in low and medium volume
production. The parts or products are typically made in batches. To produce each new batch of a
different product, the system must be reprogrammed with the set of machine instructions that
correspond to the new product. The physical setup of the machine must also be changed over: Tools
must be loaded, fixtures must be attached to the machine table also be changed machine settings must
be entered. This changeover procedure takes time. Consequently, the typical cycle for given product
includes a period during which the setup and reprogramming takes place, followed by a period in
which the batch is produced. Examples of programmed automation include numerically controlled
machine tools and industrial robots.
3) Flexible Automation

It is an extension of programmable automation. A flexible automated system is one that is capable of

producing a variety of products (or parts) with virtually no time lost for changeovers from one product
to the next. There is no production time lost while reprogramming the system and altering the physical
setup (tooling, fixtures, and machine setting). Consequently, the system can produce various
combinations and schedules of products instead of requiring that they be made in separate batches.
The features of flexible automation can be summarized as follows:

 High investment for a custom-engineered system.

 Continuous production of variable mixtures of products.
 Medium production rates.
 Flexibility to deal with product design variations.

The essential features that distinguish flexible automation from programmable automation are: (1) the
capacity to change part programs with no lost production time; and (2) the capability to changeover
the physical setup, again with no lost production time. These features allow the automated production
system to continue production without the downtime between batches that is characteristic of
programmable automation. Changing the part programs is generally accomplished by preparing the
programs off-line on a computer system and electronically transmitting the programs to the automated
production system. Therefore, the time required to do the programming for the next job does not
interrupt production on the current job. Advances in computer systems technology are largely
responsible for this programming capability in flexible automation. Changing the physical setup
between parts is accomplished by making the changeover off-line and then moving it into place
simultaneously as the next part comes into position for processing. The use of pallet fixtures that hold
the parts and transfer into position at the workplace is one way of implementing this approach. For
these approaches to be successful; the variety of parts that can be made on a flexible automated
production system is usually more limited than a system controlled by programmable automation.

ADVANTAGES OF AUTOMATION:

Following are some of the advantages of automation:

 Automation is the key to the shorter workweek . Automation will allow the average number
of working hours per week to continue to decline, thereby allowing greater leisure hours and a
higher quality life.
 Automation brings safer working conditions for the worker . Since there is less direct
physical participation by the worker in the production process, there is less chance of personal
injury to the worker.
 Automated production results in lower prices and better products . It has been estimated
that the cost to machine one unit of product by conventional general-purpose machine tools
requiring human operators may be 100 times the cost of manufacturing the same unit using
automated mass-production techniques. The electronics industry offers many examples of
improvements in manufacturing technology that have significantly reduced costs while
increasing product value (e.g, colour TV sets, stereo equipment, calculators, and computers).
 The growth of the automation industry will itself provide employment opportunities .
This has been especially true in the computer industry, as the companies in this industry have
grown (IBM, Digital Equipment Corp., Honeywell, etc.), new jobs have been created. These
new jobs include not only workers directly employed by these companies, but also computer
programmers, systems engineers, and other needed to use and operate the computers.
 Automation is the only means of increasing standard of living . Only through productivity
increases brought about by new automated methods of production, it is possible to advance
standard of living. Granting wage increases without a commensurate increase in productivity
will results in inflation. To afford a better society, it is a must to increase productivity.
DISADVANTAGES OF AUTOMATION

Following are some of the disadvantages of automation:

1.Automation will result in the subjugation of the human being by a machine. Automation tends to
transfer the skill required to perform work from human operators to machines.

In so doing, it reduces the need for skilled labour. The manual work left by automation requires lower
skill levels and tends to involve rather menial tasks (e.g., loading and unloading work part, changing
tools, removing chips, etc.). In this sense, automation tends to downgrade factory work.

2.There will be a reduction in the labour force, with resulting unemployment. It is logical to argue that
the immediate effect of automation will be to reduce the need for human labour, thus displacing
workers.

3.Automation will reduce purchasing power. As machines replace workers and these workers join the
unemployment ranks, they will not receive the wages necessary to buy the products brought by
automation. Markets will become saturated with products that people cannot afford to purchase.
Inventories will grow. Production will stop. Unemployment will reach epidemic proportions and the
result will be a massive economic depression.

TECHNOLOGY MANAGEMENT

Technology management involves overseeing and controlling the technological aspects of a business
or organization. Here are some main
Types of technology management:
1)Product Technology Management: Focuses on the development, design, and management of new
products. This involves innovation, research and development (R&D), product lifecycle management,
and ensuring that new products meet market needs and quality standards.
2)Process Technology Management: Involves managing the processes that produce goods and
services. This includes optimizing manufacturing processes, improving efficiency, implementing new
production technologies, and ensuring that processes are cost-effective and environmentally
sustainable.
3)Information Technology Management: Deals with the use and management of information
systems and technologies within an organization. This includes managing IT infrastructure, software
applications, data security, network systems, and ensuring that the organization's IT resources align
with its strategic goals.
4)Project Technology Management: Focuses on managing specific technology-related projects. This
involves planning, executing, and closing projects, as well as managing resources, timelines, budgets,
and project teams.
5)Innovation Technology Management: Centres on fostering and managing innovation within an
organization. This includes developing new technologies, encouraging creative thinking, managing
intellectual property, and ensuring that innovations are successfully integrated into the business.
6)Operations Technology Management: Manages the day-to-day operations involving technology.
This includes maintaining equipment, managing supply chains, ensuring operational efficiency, and
troubleshooting technical issues.
7)Strategic Technology Management: Involves aligning technology initiatives with the overall
strategic goals of the organization. This includes long-term planning, technology forecasting,
competitive analysis, and making decisions on technology investments and partnerships.
8)Design techniques :
Design techniques are methods and approaches used by designers to solve problems, create products,
and develop systems. Here are some key design techniques:
Brainstorming: Generating a wide range of ideas in a group setting to solve a problem or create
something new. It encourages creative thinking and collaboration.
Sketching: Creating rough drawings to visualize ideas quickly. Sketching helps in exploring
concepts, refining designs, and communicating ideas to others.
Prototyping: Building a preliminary model of a product to test its functionality and design.
Prototypes can be physical or digital and are used to gather feedback and make improvements.
Wireframing: Creating a simplified visual guide that represents the skeletal framework of a digital
product, such as a website or app. Wireframes focus on layout and navigation without detailed
design elements.
ADVANTAGES OF TECHNOLOGY MANAGEMENT:

 Enhanced Productivity: Effective technology management ensures that the right

technologies are selected, implemented, and optimized for specific tasks. This optimization
leads to streamlined processes, reduced downtime, and improved workflow efficiency. By
automating repetitive tasks and integrating systems, productivity can be significantly
enhanced.

 Improved Machine Utilization: Technology management involves monitoring and

optimizing the utilization of machines and equipment. Through techniques such as predictive
maintenance and scheduling algorithms, downtime can be minimized, and machines can
operate at optimal levels for longer periods. This ensures that production capacity is
maximized without unnecessary interruptions.
 Cost Reduction: Efficient technology management helps in identifying cost-saving
opportunities across various aspects of production. This can include energy-efficient
technologies, waste reduction strategies, optimized supply chain management through digital
systems, and improved resource allocation. By reducing waste, energy consumption, and
improving overall efficiency, significant cost savings can be achieved.

 Quality Improvement: Technology management often includes quality control and

assurance mechanisms that help in maintaining and improving product quality. By integrating
quality management systems with production processes, defects can be minimized, and
consistency in product output can be ensured. This leads to higher customer satisfaction and
fewer returns or reworks.

 Innovation and Adaptability: Managing technology effectively allows companies to stay

competitive by adopting new technologies and innovations faster. This adaptability to
technological advancements enables businesses to respond quickly to market changes,
customer demands, and industry trends. It also fosters a culture of innovation within the
organization, driving continuous improvement in products and processes.

 Data-driven Decision Making: Technology management often involves implementing

data analytics and business intelligence tools. These tools provide valuable insights into
production metrics, performance trends, and operational efficiencies. Data-driven decision-
making helps in identifying areas for improvement, optimizing processes, and making
informed strategic decisions that contribute to overall cost reduction and productivity
improvement
WASTE MANAGEMENT
The industrial waste and scrap consist of spoiled raw-materials, rejected components, defective parts,
waste from production departments etc. involves some commercial values. They should be disposed
of periodically and proper credit of the amount should be taken in the books of accounts. Hence,
waste management places an important role in managing operations. Wastes can be categorised into
obsolete, surplus and scrap items.
Sources of waste management can be categorized into several main sectors:
1)Industrial Sector: This includes manufacturing, construction, mining, and other industries.
Industrial waste can be hazardous or non-hazardous and includes materials like chemicals, metal
scraps, ash, and manufacturing by-products.
2)Households: Residential waste generated by everyday activities in homes. This includes kitchen
waste, packaging materials, old clothes, broken electronics, and other domestic refuse.
3)Commercial Sector: Waste produced by businesses such as offices, restaurants, hotels, and retail
stores. This includes paper, cardboard, food waste, and other commercial by-products.
4)Agricultural Sector: Waste generated from farming activities, such as crop residues, manure,
pesticides, and fertilizers.
5)Healthcare Sector: Medical waste from hospitals, clinics, and laboratories, including used
syringes, bandages, pharmaceuticals, and other biohazardous materials.
6)Municipal Sector: Waste managed by local governments, including street sweepings, public park
refuse, and waste collected from public bins.
7)Construction and Demolition (C&D): Debris generated from building and demolishing structures,
including concrete, wood, metals, and plastics.
8)Nature: Natural waste generated by environmental processes, such as fallen leaves, dead plants,
and animal remains. This type of waste is typically biodegradable and contributes to natural cycles.
TYPES OF Waste management:
1)Wet Waste: Organic waste that is biodegradable, such as food scraps, garden waste, and other
compostable materials.
2)Dry Waste: Non-biodegradable waste that includes materials like plastic, paper, glass, and metals.
This type of waste can often be recycled.
3)Solid Waste: This is a broader category that includes both wet and dry waste. It covers all solid
materials discarded as garbage.
4)Liquid Waste: Waste in liquid form, such as wastewater, chemicals, oils, and other fluids. This type
of waste requires special treatment to avoid contamination of water sources.
5)E-Waste: Electronic waste, including discarded electronic devices like computers, phones, and
appliances. E-waste often contains hazardous materials and requires specialized recycling processes to
recover valuable components and safely dispose of harmful substances.
QUALITY ASSURANCE

Quality assurance (QA) in production operation and management is essential to ensure that products
meet the required standards of quality, reliability, and performance. It involves systematic activities
designed to provide confidence that a product or service will satisfy customer requirements.

Here are key aspects and strategies involved in quality assurance in production operation and
management:

1. Quality Planning: This involves setting quality objectives and determining the processes and
resources needed to fulfill these objectives. It includes defining quality standards,
specifications, and metrics against which products will be evaluated.

2. Quality Control: Quality control (QC) focuses on the operational techniques and activities
used to fulfill requirements for quality. It includes monitoring and inspection of raw materials,
in-process production, and finished products to ensure they meet specified requirements.
Statistical process control (SPC) techniques may be used to monitor production processes and
detect deviations from quality standards.

3. Process Improvement: Continuous improvement is a key principle of quality assurance. It

involves identifying opportunities for enhancing processes, reducing waste, and improving
efficiency. Techniques such as Lean manufacturing, Six Sigma, and Total Quality
Management (TQM) are commonly used to drive process improvements.

4. Training and Education: Ensuring that personnel are adequately trained and competent is
crucial for maintaining consistent quality. Training programs may cover quality standards,
operating procedures, use of equipment, and problem-solving techniques.
 5. Supplier Quality Management: Quality assurance extends to suppliers and vendors who
provide raw materials, components, or services. Establishing clear quality requirements and
conducting supplier audits and evaluations ensure that incoming materials meet specifications
and contribute to the overall quality of the final product.

6. Documentation and Record Keeping: Maintaining accurate records of quality inspections,

test results, and corrective actions is essential for traceability and accountability.
Documentation helps in identifying trends, root causes of defects, and implementing
preventive measures.

7. Customer Feedback and Satisfaction: Monitoring customer feedback and satisfaction levels
provides valuable insights into product performance and areas for improvement.
Incorporating customer requirements and expectations into quality planning helps in
delivering products that meet or exceed customer expectations.

8. Risk Management: Identifying and mitigating risks that could impact product quality is an
integral part of quality assurance. This may involve conducting risk assessments,
implementing preventive measures, and developing contingency plans to address potential
quality issues.

9. Certification and Compliance: Depending on the industry and market requirements,

achieving certifications such as ISO 9001 (Quality Management Systems) demonstrates
adherence to international standards for quality assurance. Compliance with regulatory
requirements ensures that products meet legal and safety standards.

10. Management Commitment and Leadership: Effective quality assurance requires

commitment and leadership from top management. Establishing a quality-focused culture
throughout the organization promotes accountability, continuous improvement, and a shared
responsibility for maintaining high standards of quality.

In conclusion, quality assurance in production operation and management encompasses a

comprehensive set of practices and activities aimed at ensuring consistent product quality, meeting
customer expectations, and driving continuous improvement across all aspects of production
processes.

QUALITY CIRCLES

It was quality circles which gave birth to TQM. A quality circle is a group of employees whose
assignment is to identify problems, formulate solutions, and present their results to the management
with suggestions for implementation.

The definition given by the Union of Japanese Scientists and Engineers (UJSE) is more revealing. To
quote the definition: "the QC is a small group that voluntarily performs quality control activities
within the shop, where its members work, the small group carrying out its work continuously as part
of a company-wide programme of quality control, self-development, mutual development, flow-
control and improvement within workshop. By engaging in QC activities, the circle members gain
valuable experience in communication with colleagues, working together to solve problems and
sharing their findings, not only among themselves but with other circles at other companies.

As in TQM, popular perception about QC is that, it deals with only product quality. Far from it, QC
also aims at individual and group development. In other words, QC has quality of life as its primary
objective. But in reality, QC is perceived to be an instrument to achieve high product quality.
Although simple in concept, successful implementation of quality circles programme requires a
massive effort on the part of management. The support structure usually consists of a steering
committee of top management officials, facilitators, circle leaders and circle members.

1)Steering Committee: Provide overall guidance, suggest problems for the circles to address receive
recommendations from the circles and follow up on implementation. The steering committee must
make sure that, the circles receive the support they need, to be effective.

2) Facilitators: One facilitator is assigned to several circles. They provide training for the leaders and
support the training programmes for the members. When the circle requests information, the
facilitator's responsibility is to provide it. A facilitator must be well connected in the organisation and
requires strong backing from the top management.

3)Circle Leaders: Often an area supervisor, a leader has responsibilities that include training the
circle members in problem identification and solution methods, and preparing an effective
presentation for the management. This is considered as an excellent preparation for someone, who is
likely to be promoted, since they become indoctrinated in the philosophy that a manager's function is
to facilitate the tasks of the workers.

4)Circle Members: These are volunteers from the regular work force. They are given one hour of
company time weekly to carry out their discussions and projects. Trained in techniques of brain-
storming and identifying causes, they keep the facilitator busy by requesting information about
various problems of their choice. Based on preliminary findings, the group focuses on a problem and
works out a solution and a strategy to implement it. If the recommendation is accepted by the steering
committee, the circle is kept posted on its progress. If the recommendation is rejected, it is the
responsibility of the steering committee to explain in detail why it was rejected.

 Formation and Structure: Quality circles typically consist of a small group of employees (usually
6-12 members) who work in the same or related areas of production. They are facilitated by a trained
team leader or coordinator, often from within the group but sometimes from management.

 Problem Identification: Quality circles focus on identifying specific problems or issues related to
quality, productivity, safety, or efficiency within their work area. These problems are often ones that
directly impact daily operations and can benefit from the knowledge and experience of the circle
members.

 Problem Analysis: Once a problem is identified, quality circle members analyses its root causes
using various problem-solving techniques such as brainstorming, cause-and-effect analysis, and data
collection. The emphasis is on understanding the underlying factors contributing to the problem.

 Generating Solutions: Quality circles then generate potential solutions or improvement ideas based
on their analysis. These solutions are typically practical, feasible, and within the circle’s scope of
influence. The aim is to find solutions that can be implemented quickly and effectively to address the
identified problem.

 Implementation: After evaluating potential solutions, quality circles develop action plans to
implement the chosen solution. This may involve testing the solution on a small scale, gathering
feedback, and refining the approach before full implementation.

 Review and Evaluation: Once implemented, quality circles monitor the results of their actions.
They assess whether the problem has been effectively addressed and whether there are any unintended
consequences. Continuous evaluation ensures that improvements are sustainable and contribute
positively to overall production operations.
 Continuous Improvement: Beyond solving specific problems, quality circles promote a culture of
continuous improvement. They encourage ongoing participation and engagement from employees at
all levels, fostering innovation and a sense of ownership in improving work processes and outcomes.

 Communication and Collaboration: Quality circles facilitate open communication and

collaboration among team members and between different departments or functions within the
organization. This cross-functional collaboration enhances understanding of interdependencies and
promotes integrated solutions to complex problems.

 Training and Development: Organizations often provide training and development opportunities
for quality circle members to enhance their problem-solving skills, teamwork abilities, and knowledge
of quality management principles. This investment in employee development strengthens the
effectiveness of quality circles.

 Management Support: Successful implementation of quality circles requires active support and
involvement from management. Management provides resources, removes obstacles, and recognizes
the achievements of quality circle teams, reinforcing their importance in achieving organizational
goals.

STATISTICAL QUALITY CONTROL

Introduction:

With the advent of industrial revolution in the 19th century, mass production replaced manufacturing
in small shops by skilled craftsman and artisans. While in the small shops the individual worker was
completely responsible for the quality of the work, this was no longer true n mass production where
each individual's contribution to for checking a 100 percent inspection of al an insignificant part in the
total process. The quality control by with the help of quality inspectors’ responsible important
characteristics.

The process of applying statistical principles to solve problem of controlling the quality of a product
or service is called SQC. Dr. Walter A. Shewhart, called the father of quality control analysis,
developed the concepts of statistical quality control. W.A.Shewart introduced the control charts in
1931 on the basis of statistical principles to determine how far the product confirms to the standard
quality and to what extent its quality deviates from the standard

Defining Statistical Quality Control (SQC): A quality control system performs inspection,
testing and analysis to conclude whether the quality of each product is as per laid quality standard or
not) When statistical techniques employed to control quality or to solve quality control problem, it is
called "Statistical Quality Control")SQC makes inspection more reliable and at the same time less
costly. SQC is the application of statistical methods to determine how far the product confirms to the
standard quality and to what extent its quality deviates from the standard. It is applied by taking
sample and drawing conclusions by means of mathematical analysis. Control charts are used to help
to achieve the objectives of SQC. Using SQC methods, it can be determined whether variations in
output are due to common causes or assignable causes. This technique was recognized in the industry
only during the Second World War.

 SQC is often viewed as a productivity improvement tool.

 It is an integral part of management control.

  The techniques of applying statistical methods is based upon the theory of probability to
quality control problems with the purpose of establishing quality standard and maintaining
adherence to those standards in the most economical manner.
Advantages / Benefits of SQC
➤ SQC helps to identify the causes for variations in quality and minimize the same
➤ SQC helps to control, maintain and improve quality standards
➤ It reduces the wastage, scrap, rework, cost per unit and inspection cost
➤ It gives accurate prediction
➤ It makes the employees become conscious and efficient
➤ It gives an early warning of defects
➤ It facilitates the producer to give guarantee for his products
➤ It guides the producer when to initiate changes in production settings
Techniques of SQC:
➤ Process control through control charts
➤ Acceptance sampling
(madam chepina charts, graphs)

QUALITY CONTROL

Quality control is the traditional way of managing quality. It is concerned with checking and
reviewing work that has been done. Quality control means adherence to a standard or prevention of a
change from the standard. It is the process of verification and correction in the quality of the product.
Quality control is mainly about "detecting" defective output - rather than preventing it. When the
deviations in the quality are found to be more than expected, it is through quality control that
measures are taken to see that defective items are not produced at all. Thus, quality control can be
defined as that Industrial Management technique by means of which products of uniform acceptable
quality are manufactured.

In brief Quality control means:

 Adherence to a standard or prevention of a change from the set standard.

 The process of verification and correction in the quality of the product.

 A preventive function to ensure that a product/service is fit for intended use and conform to
specifications.
Objectives of Quality Control:
(1) To decide about the standard of quality of a product that is easily acceptable to the customer.
(2) To check the variation during manufacturing.
(3) To prevent the poor quality products reaching to customer.
Benefits of Quality Control:
1. Reduction of scrap and wastages.
2. Reduction in inspection.
3. Less customer complaints.
4. Saving excess use of materials.
5. Generates confidence, good will and reputation to the company.
6. Better product design and product quality.
7. Increasing quality consciousness in the organization.
8. Good vendor-vendee relation
9. Customer satisfaction
10. Higher profits

CONTROL CHARTS FOR VARIABLES AVERAGE, RANGE

Control Charts for Variables (Measurement charts) Control charts for variables monitor characteristics
that can be measured and have a continuous scale, such as height, weight, volume, or width. When an
item is inspected, the variable being monitored is measured and recorded. When observed values go
outside the control limits, the process is assumed not to be in control. Production is stopped and
employees attempt to identify the cause of the problem and correct it.

X chart (Mean chart)

An X chart is used if the quality of the output is measured in terms of a variable such as length,
weight, temperature, and so on. X represents the mean value found in a sample of the output. A mean
control chart is often referred to as an x-bar chart. It is used to monitor changes in the mean of a
process. To construct a mean chart, it is first needed to construct the central line of the chart. To do
this take multiple samples and compute their means. Usually these samples are small, with about four
or five observations. Each sample has its own mean x. The centre line of the chart is then computed as
the mean of all X sample means, where X is the number of samples

Range chart:

In addition to the central tendency in a sample, it is also required to monitor the amount of variation
from sample to sample. A range chart shows the variation in the sample ranges. It is used to monitor
the range of the measurements in the sample. If the points representing the ranges fall between the
upper and the lower limits, it is concluded that the operation is in control. According to chance, about
997 times out of 1,000 the range of the samples will fall within the limits. If the range should fall
above the limits, it can be concluded that an assignable cause affected the operation and an adjustment
to the process is needed.

CONTROL CHART FOR ATTRIBUTES

Control chart for attributes:

There are two different types of control charts for attributes which are based on the distinction
between defectives and defects. There are two control charts for defectives, the p-chart, for the
proportion of defectives in the sample and np-chart for the no. of defectives. They are based on
binomial distribution. The c-chart is the control chart for no. of defects in a unit and is based on
poison distribution. Control charts for attributes are used to measure quality characteristics that are
counted rather than measured. That is, we observe the presence or absence of some attribute.
Attributes are discrete in nature and entail simple yes-or-no decisions. For example, this could be the
number of nonfunctioning light bulbs, the proportion of broken eggs in a carton, the number of rotten
apples, the number of scratches on a tile, or the number of complaints issued.

The Attribute Charts are

 The p chart the control chart for fraction rejected as non-confirming to specifications
proportion of defectives

 The np chart - the control chart for number of non-conforming items (number of defective)

 The C chart- the control chart for number of non-conformities (number of defects)

 The u chart - the control chart for number of non-conformities per unit.
A defective item is defined as one that fails to confirm to specifications in one or mor quality
characteristics. Defect is a failure of the item to confirm to one specification. A defective item may
contain only one defect or many defects.

p-charts:

P-charts are used to measure the proportion that is defective in a sample. If the item recorded is the
fraction of unacceptable parts made in a larger batch of parts, the appropriate control char is the
percent defective chart. The computation of the central line as well as the upper and lower control
limits is similar to the computation for the other kinds of control charts. This chart is based on the
binomial distribution and proportions. The central line is at P, the mean proportion defective The
central line is computed as the average proportion defective in the population. This is obtained by
taking a number of samples of observations at random and computing the average value of P across
all samples.
Use of p - charts
➤ When observations can be placed into two categories.
 Good or bad
 Pass or fail
 Operate or don't operate
➤ When the data consists of multiple samples of several observations each

UNIT – 4

BASIC CONCEPTS OF QUALITY

In production and operations management, quality refers to the degree to which a product or service
meets or exceeds customer expectations. It encompasses various dimensions that are crucial for
ensuring customer satisfaction and organizational success. Here are some basic concepts related to
quality in production and operations management:

1. Quality Standards: These are established criteria or specifications used to measure and
compare the characteristics of a product or service against defined benchmarks. Standards can
be internal (set by the organization) or external (set by regulatory bodies or industry
associations).

2. Quality Control: This involves activities and techniques used to monitor and regulate the
quality of processes and products to ensure they meet predefined standards. It focuses on
identifying defects or deviations from standards and taking corrective actions.

3. Quality Assurance: Quality assurance encompasses all planned and systematic activities
implemented within the quality system to provide confidence that a product or service will
fulfill quality requirements. It involves processes such as audits, inspections, and adherence to
standards.

4. Total Quality Management (TQM): TQM is a management approach that focuses on

continuous improvement of processes, products, and services to achieve and maintain
customer satisfaction. It involves all members of an organization in a concerted effort to
improve quality and eliminate waste.
 5. Six Sigma: Six Sigma is a data-driven methodology for eliminating defects and variation in
processes. It aims to achieve near-perfect quality by focusing on process improvement and
reducing variation using statistical methods and project management techniques.

6. Quality Costs: Quality costs refer to the costs associated with preventing, detecting, and
correcting defects in products or processes. These costs include prevention costs (costs of
quality planning and improvement), appraisal costs (costs of quality control and inspection),
and failure costs (costs of defects and warranty claims).

7. Customer Focus: Quality management emphasizes understanding and meeting customer

needs and expectations. Customer feedback and satisfaction are critical in determining and
improving product or service quality.

8. Continuous Improvement: Also known as Kaizen in Japanese management philosophy,

continuous improvement involves ongoing efforts to improve products, services, or processes.
It encourages small, incremental improvements over time rather than major changes.

9. Supplier Quality Management: Ensuring that suppliers provide materials, components, and
services that meet quality requirements is essential for maintaining overall product or service
quality. This involves supplier evaluation, audits, and collaboration for improvement.

10. Benchmarking: Benchmarking involves comparing an organization's processes, products, or

services against best practices or industry leaders. It helps identify areas for improvement and
implement strategies to achieve superior performance.

Understanding and implementing these concepts is crucial for organizations to consistently deliver
high-quality products and services, maintain customer satisfaction, and achieve competitive advantage
in the marketplace.

DIMENSIONS OF QUALITY

In production and operations management, quality is typically analyzed and measured across various
dimensions or aspects. These dimensions help in understanding the overall quality of a product or
service from different perspectives. The most commonly recognized dimensions of quality include:

1. Performance: Performance refers to the primary operating characteristics of a product or

service. It assesses how well the product or service performs its intended function or purpose.
For example, in a car, performance might include factors like speed, fuel efficiency, and
handling.
2. Features: Features are additional characteristics that enhance the appeal of a product or
service to the customer. These are considered beyond the basic function. For instance, in a
smartphone, features might include camera quality, storage capacity, and user interface.
3. Reliability: Reliability is the ability of a product or service to perform consistently over time
and under varying operating conditions without failure. It indicates the likelihood of a product
or service to operate without breakdowns or disruptions. For example, a reliable car starts
every time and requires minimal maintenance.
4. Conformance: Conformance refers to the degree to which a product or service meets
specified standards, requirements, or regulations. It assesses whether the product or service is
built or delivered according to agreed-upon specifications.
5. Durability: Durability measures the expected operational lifespan of a product or service
before it deteriorates or requires replacement or repair. Products with high durability are
perceived as higher quality because they offer longer-lasting value to the customer.
 6. Serviceability: Serviceability refers to the ease and speed with which a product can be
repaired or maintained. It includes factors like accessibility of repair parts, simplicity of repair
procedures, and availability of service personnel.
7. Aesthetics: Aesthetics refers to the sensory characteristics of a product or service, including
its appearance, feel, smell, taste, and sound. Aesthetics influence customer perception of
quality and can enhance user experience.
8. Perceived Quality: Perceived quality is the customer's subjective assessment of a product or
service based on their expectations, brand reputation, past experiences, and marketing
communications. It reflects how customers perceive the overall excellence or value of the
offering.
9. Safety: Safety refers to the extent to which a product or service minimizes risks or hazards to
users or the environment during its intended use. Safety is crucial in industries such as
automotive, pharmaceuticals, and food production.
10. Environmental Impact: In recent years, environmental impact has become an increasingly
important dimension of quality. It considers how a product or service affects the environment
throughout its lifecycle, including raw material sourcing, production, use, and disposal.
These dimensions of quality provide a comprehensive framework for assessing and improving the
overall quality of products and services in production and operations management. Organizations
often prioritize these dimensions based on customer expectations, industry standards, regulatory
requirements, and competitive positioning.

JURAN’S QUALITY TRILOGY

Joseph M. Juran's Quality Trilogy is a management approach that emphasizes three key processes for
achieving and maintaining high levels of quality in an organization. Juran, a pioneer in the field of
quality management, outlined these processes as essential components of a comprehensive quality
management system. Here's an overview of Juran's Quality Trilogy:
1. Quality Planning
Quality planning involves systematically identifying customer needs and translating them into
specific product or service requirements. The key steps in quality planning include:
 Identifying Customer Needs: Understanding the expectations and requirements of customers
regarding product features, performance, reliability, etc.
 Setting Quality Goals: Establishing clear quality objectives based on customer needs and
organizational priorities.
 Developing Processes: Designing and developing processes that will enable the organization
to meet quality goals consistently.
 Creating Quality Plans: Formulating detailed plans and procedures to ensure that quality
goals are achieved during production or service delivery.
The focus of quality planning is on prevention of defects rather than detection, aiming to build quality
into processes right from the start.
2. Quality Control
Quality control involves activities and techniques used to monitor and evaluate actual product or
service performance against quality standards. The main objectives of quality control include:
 Measuring Performance: Collecting data and metrics to assess the quality of products or
services at various stages of production or delivery.
 Comparing to Standards: Comparing actual performance against established quality
standards to identify any deviations or non-conformities.
 Taking Corrective Actions: Implementing corrective actions to address deviations from
standards and prevent recurrence of quality issues.
 Continuous Monitoring: Continuously monitoring processes to ensure that quality standards
are maintained over time.
Quality control techniques include statistical process control (SPC), inspections, testing, and other
methods to detect and correct defects during production or service delivery.
3. Quality Improvement
Quality improvement focuses on continuous improvement of processes, products, and services to
achieve and sustain higher levels of quality. The key aspects of quality improvement include:
 Identifying Opportunities: Identifying areas for improvement based on analysis of
performance data, customer feedback, and quality issues.
 Implementing Changes: Implementing changes and initiatives aimed at eliminating defects,
reducing waste, and enhancing overall process efficiency and effectiveness.
 Monitoring Results: Monitoring the results of improvement efforts to evaluate their impact
on quality and organizational performance.
 Institutionalizing Improvements: Embedding successful improvement practices into
standard operating procedures and organizational culture.
Juran emphasized that quality improvement is a continuous process that requires commitment from all
levels of the organization, from leadership to frontline employees.
Integration and Application:
Juran's Quality Trilogy provides a structured framework for organizations to systematically manage
and improve quality throughout their operations. By integrating quality planning, control, and
improvement into their management practices, organizations can enhance customer satisfaction,
reduce costs, and achieve sustainable business success. Juran's approach highlights the importance of
proactive quality management and continuous improvement as key drivers of organizational
excellence.
DEMING’S 14 PRINCIPLES
Dr. W. Edwards Deming is largely credited with the focus on quality within business to
achieve success. A statistician who went to Japan to help with the census after World War II,
Deming also taught statistical process control to leaders of prominent Japanese businesses.
His message was this: By improving quality, companies will decrease expenses as well as
increase productivity and market share.
After applying Deming's techniques, Japanese businesses like Toyota, Fuji, and Sony saw
great success. Their quality was far superior to that of their global competitors, and their
costs were lower. The demand for Japanese products soared – and by the 1970s, many of
these companies dominated the global market. American and European companies realized
that they could no longer ignore the quality revolution.
So, the business world developed a new appreciation for the effect of quality on production
and price. Although Deming didn't create the phrase "Total Quality Management," he's
credited with starting the movement. He didn't receive much recognition for his work until
1982, when he wrote the book now titled "Out of the Crisis," which summarized his famous
14-point management philosophy.
There's much to learn from these 14 points. Study after study of highly successful companies
shows that following the philosophy leads to significant improvements. That's why these 14
points have since become a standard reference for quality transformation.
Note:
Deming's points apply to any type and size of business. Service companies need to control quality just
as much as manufacturing companies. And the philosophy applies equally to large multinational
corporations, different divisions or departments within a company, or even single-person operations.

14 principles:
1) Create a constant purpose toward improvement.
 Plan for quality in the long term.
 Resist reacting with short-term solutions.
 Don't just do the same things better – find better things to do.
 Predict and prepare for future challenges, and always have the goal of getting better.
2) Adopt the new philosophy.
 Embrace quality throughout the organization.
 Put your customers' needs first, rather than react to competitive pressure – and design
products and services to meet those needs.
  Be prepared for a major change in the way business is done. It's about leading, not simply
managing.
 Create your quality vision, and implement it.
3) Stop depending on inspections.
 Inspections are costly and unreliable – and they don't improve quality, they merely find a lack
of quality.
 Build quality into the process from start to finish.
 Don't just find what you did wrong – eliminate the "wrongs" altogether.
 Use statistical control methods – not physical inspections alone – to prove that the process is
working.
4)Use a single supplier for any one item.
 Quality relies on consistency – the less variation you have in the input, the less variation
you'll have in the output.
 Look at suppliers as your partners in quality. Encourage them to spend time improving their
own quality – they shouldn't compete for your business based on price alone.
 Analyse the total cost to you, not just the initial cost of the product.
 Use quality statistics to ensure that suppliers meet your quality standards.
5)Improve constantly and forever.
Continuously improve your systems and processes. Deming promoted the Plan-Do-Check-Act
approach to process analysis and improvement.
 Emphasize training and education so everyone can do their jobs better.
 Use kaizen as a model to reduce waste and to improve productivity, effectiveness, and
safety.
6)Use training on the job.
 Train for consistency to help reduce variation.
 Build a foundation of common knowledge.
 Allow workers to understand their roles in the "big picture."
 Encourage staff to learn from one another, and provide a culture and environment for
effective teamwork.
7) Implement leadership.
 Expect your supervisors and managers to understand their workers and the processes they use.
 Don't simply supervise – provide support and resources so that each staff member can do his
or her best. Be a coach instead of a policeman.
 Figure out what each person actually needs to do his or her best.
 Emphasize the importance of participative management and transformational leadership.
 Find ways to reach full potential, and don't just focus on meeting targets and quotas .
8) Eliminate fear.
 Allow people to perform at their best by ensuring that they're not afraid to express ideas or
concerns.
 Let everyone know that the goal is to achieve high quality by doing more things right – and
that you're not interested in blaming people when mistakes happen.
 Make workers feel valued, and encourage them to look for better ways to do things.
 Ensure that your leaders are approachable and that they work with teams to act in the
company's best interests.
 Use open and honest communication to remove fear from the organization.
9) Break down barriers between departments.
 Build the "internal customer" concept – recognize that each department or function serves
other departments that use their output.
 Build a shared vision.
 Use cross-functional teamwork to build understanding and reduce adversarial relationships.
 Focus on collaboration and consensus instead of compromise.
10) Get rid of unclear slogans.
  Let people know exactly what you want – don't make them guess. "Excellence in
service" is short and memorable, but what does it mean? How is it achieved? The
message is clearer in a slogan like "You can do better if you try."
 Don't let words and nice-sounding phrases replace effective leadership. Outline your
expectations, and then praise people face-to-face for doing good work.
11)Eliminate management by objectives.
 Look at how the process is carried out, not just numerical targets. Deming said that
production targets encourage high output and low quality.
 Provide support and resources so that production levels and quality are high and achievable.
 Measure the process rather than the people behind the process.
12)Remove barriers to pride of workmanship.

 Allow everyone to take pride in their work without being rated or compared.
 Treat workers the same, and don't make them compete with other workers for monetary or
other rewards. Over time, the quality system will naturally raise the level of everyone's work
to an equally high level.
13)Implement education and self-improvement.
 Improve the current skills of workers.
 Encourage people to learn new skills to prepare for future changes and challenges.
 Build skills to make your workforce more adaptable to change, and better able to find and
achieve improvements.
14)Make "transformation" everyone's job.
 Improve your overall organization by having each person take a step toward quality.
 Analyse each small step, and understand how it fits into the larger picture.
 Use effective change management principles to introduce the new philosophy and ideas in
Deming's 14 points.

QUALITY IMPROVEMENT AND COST REDUCTION

Quality improvement and cost reduction are interconnected goals in production and operations
management. Achieving both simultaneously is crucial for enhancing competitiveness, profitability,
and customer satisfaction. Here are several strategies and approaches to achieve quality improvement
and cost reduction in production and operations management:

Quality Improvement Strategies:

1. Implement Total Quality Management (TQM):

o TQM emphasizes continuous improvement of processes, products, and services.
o It involves all employees in quality improvement efforts and fosters a culture of
quality throughout the organization.
o TQM principles include customer focus, process improvement, and employee
involvement.

2. Use Statistical Process Control (SPC):

o SPC involves monitoring and controlling production processes through statistical
techniques.
o It helps identify and eliminate variations that cause defects, thereby improving
product quality.
o By reducing variation, SPC enhances consistency and reliability in production.

3. Design for Six Sigma (DFSS):

o DFSS focuses on designing products and processes that meet customer requirements
and achieve Six Sigma quality levels.
 o It integrates statistical methods and tools to ensure that quality is built into the design
stage, minimizing defects and enhancing reliability.

4. Kaizen and Continuous Improvement:

o Kaizen, a Japanese term for continuous improvement, emphasizes making small,
incremental improvements to processes.
o It involves empowering employees to identify and implement improvements on a
daily basis.
o Continuous improvement initiatives help streamline operations, reduce waste, and
enhance overall efficiency.

5. Quality Function Deployment (QFD):

o QFD is a systematic approach to translate customer needs and expectations into
specific product or service requirements.
o It ensures that products are designed and produced with features that satisfy customer
preferences, thereby enhancing quality perception.

Cost Reduction Strategies:

1. Lean Manufacturing:
o Lean principles focus on eliminating waste and improving efficiency throughout the
production process.
o Techniques such as Just-in-Time (JIT) manufacturing, Kanban systems, and Value
Stream Mapping (VSM) help reduce lead times, inventory levels, and operational
costs.

2. Supply Chain Optimization:

o Optimizing the supply chain through effective supplier management, inventory
control, and logistics can reduce costs associated with sourcing materials and
delivering products.
o Collaborating closely with suppliers to improve quality and reduce lead times can
also lead to cost savings.

3. Process Optimization and Efficiency Improvement:

o Analysing and optimizing production processes to improve throughput, reduce cycle
times, and minimize resource usage.
o Automation and technology integration can streamline operations and reduce labor
costs while improving accuracy and consistency.

4. Quality Cost Analysis:

o Conducting quality cost analysis to identify and reduce costs associated with defects,
rework, and warranty claims.
o Investing in prevention activities and quality improvement initiatives can lead to
long-term cost savings by reducing the need for corrective actions.

5. Value Engineering and Design for Cost:

o Value engineering focuses on optimizing product designs to achieve desired functions
at the lowest possible cost.
o Designing for cost involves considering manufacturing processes, materials, and
components early in the design phase to minimize production costs.

Integration of Quality Improvement and Cost Reduction:

  Cross-functional Teams: Establish cross-functional teams to jointly focus on improving
quality and reducing costs. Collaboration between departments such as production,
engineering, quality assurance, and procurement is essential.

 Benchmarking: Benchmarking against industry leaders and best practices can provide
insights into opportunities for both quality improvement and cost reduction.

 Employee Involvement: Engage employees at all levels in identifying opportunities for

improvement. Empowered employees are more likely to contribute innovative ideas for both
quality enhancement and cost savings.

 Continuous Monitoring and Feedback: Implement systems for continuous monitoring

of quality metrics and cost performance indicators. Regular feedback loops enable timely
adjustments and improvements.

By implementing these strategies and fostering a culture of continuous improvement and cost
consciousness, organizations can achieve significant gains in both quality and operational
efficiency, leading to enhanced competitiveness and sustained profitability.