Production Management

Production Management VIMAL JOSHI
Quest- 1 What is Production Management and its objectives? Explain Scope and
function of Production Management?
Ans:- Production is basically defend as conversion of Inputs into output through

transformation process . Input include 5m,s i.e. man , machinery , money , material
methods &output is final goods.
CONVERSION
PROCESS
INPUT
OUTPUT
MAN
GOODS
MACHINERY
AND
MATERIAL
PRODUCTION PROCESS SERVICES
METHODS
MONEY
FEEDBACK
Examples:-
Produc tion system Input Conversion Output
Hospital Patients Health Cured

Patients
Oil Refinery Crude Oil Chemical Process Gasoline oil

Natural Gas
Fast Food Buns, Potatoes Cutting, Frying Burgar
Production Management
It is process in which performance of management activities are done with regards to

selecting designing operating controlling and finally updating production system.
Production as Heant of Organization:-
As every department as its own importance, but till the time production departments at
produce products how these can be marked for what purpose the funds and man power
may be needed and there would be no need of material management without the existence
of production
MARKETING FINANCE
MANAGEMENT
PRODUCTION
MANAGEMENT
MATERIAL
HRM
MGT.
Production Management Functions:-
1. Planning
2. Organizing
3. Controlling
1 PLANNING:-
Planning involve all the activities that establish a future course of action. These action
guides for decision making it involves.
Production Planning
Facilities Planning
Designing Conversion Process
In Fact Planning phase is divided in to two sub parts
PLAANNING
Pre- Planning
Actual- Planning
(i) Product Planning
(ii) Material Planning
(iii) Process Design
(iv) Methods Planning
(v) Sales forecasting
(vi) Manpower Planning
(vii) Plant Location
(viii) Money (Fund)
(ix) Plants Layout
(x)Equipment Decision
1. ORGANISING:-
Organizing involve activities that establishes of tasks for (organization structure

are) and authority. It establishes structure of roles and flow of information with in
production System.
Determination activities required to achieve
Production on rule system goods
Assigning authority and responsibility for cawing them out
3. CONTROLLING:-
It involves all the activities that assure that actual performance is in

adivadance with the planned performance.
This is done by developing standard initially
Measuring actual performance
Finally comparing standard initially
Activities involved in controlling

Routing
Estimation
Scheduling
Dispatching
Inspection
Evaluating
OBJECTIVES OF PRODUCTION MANAGEMENT
To produce quality goods & services

Increase profitability through higher efficiency production by improving quality.
To give customer more confidence by providing quality products at right price & at
right time
Optimal use of resources
Maximizing use of manpower, Material, Machinery by minimizing Wastage of material
Ensuring quality at minimum cost Outstanding Quality Customer Satisfaction
Profitability Minimal Cost
Right Product at Higher

Efficiency
Right Time
Optimal use off her

Productivity
Resources
Reduction in Wastage
Scope of production management
Activities related to Designing & Activities related to analysis &

Formulation of Production System Control of Production system
(1) Production Engineering

(2) Production Planning
(3) Production
Control
(1) PRODUCTION ENGINEERING:-
It involves various activities like Product designing Selection & operation of size of
firm Process designing Location plans Designing tools
Plant layout Development & Material handling system Installation of equipment
R & D activities
(2) PRODUCTION PLANNING:-

It involves various activities like
Short term production schedule
Plan of maintaining records of new material, semi finished, and finished
products
How to maintaining records of raw material, semi finished and finished
product.
How to optimally utilize resources of concern over future time in accordance
to demand forecast.
Material planning
(3) PRODUCTION CONTROL:-

It involves various activities like
Regulate work assignments
Service work program
Remove discrepancies
Control inventory
Control work progress
Control of quality
Quen:- 2 What do mean by production system ? Explain in detail different types of

Production system along with their relative advantages & disadvantages?
Summarize different product strategies
Ans:- Production system:-

The frame work with in which conversion process occurs that is called as process
system input and output are connected by certain operations or cases which imposed
input & termed as production system.
BASIC PRODUCTION SYSTEM

Continuous Intermittent
Production system Production system
Mass prod Process Prod Job Prod Batch Prod
(1) Continuous Production system

Its characteristic is follows
1. Continuous physical flow of material.
2. Modurit having large clement throughout year.
3. Modrit having large clamand throughout year.
4. Production is done for stacks.
5. Standardized inputs & standardized requere a appear
6. Division of labour is done more efficient.
7. Material handling is minimized.
8. Balanced flow of work is ensured.
9. Less supervision is ensured.
10. Small work in progress.
11. Use of productive technique is possible , raised possibly of enjoying low cost of
production by (By enjoying economics of scale)
12. Possibility of rigid quality control
13. Preventive maintenance system (PMS) can be easily opera table
Example:- cement , sugar , steel , fertilizer production .
(A) Mass production
Only one of product or maximum 2,3 types of products are manufactured in large
Quantities much emphasis is not given on retail consumer orders.
(B) Process production:-

System used for production of those items whose demand is continuous or high .
Here single raw material can be transformed in to different kinds of products at
different stage of production process.
Example:- (a) Crude oil refinery->kerosene, gasoline etc.
(b) Alloy /steel manufacturing
Advantages of continuous system:-

Ø Reduced labour cost
Ø High accuracy, better quality and increased production
Ø Educed material handling
Ø Minimum wastage because of standardization
Ø Better method of material/inventory control
Ø Better ROI (return on investment)
Disadvantages of continuous systems:-

Ø Strict maintenance becomes necessary to avoid productions hold ups
Ø Adjustment to new situations and specifications becomes difficult particularly in
present days where stock demands causing huge losses.
ILINTERMITTENT PRODUCTION SYSTEM

Ø Goods are manufactured specifically to fulfill orders by customer rather than
producing against stock.
Ø Machine and e quipment laid are as per processes
Ø Flow of material is intermittent. (not continuous)
Ø Production facilities are flexible
Ø Handle wide variety of products and size (eg:-switch gear industry)
Ø Considerable storage between operations is required so that individuals
cooperation can be carried out independently for further utilization of man and
machines
Ø Product manufactured in small quantity
Job production:-
Ø Production of single complete unit by one operator or group of operatiors e.g.
pridge/Dam construction, ship construction.
Ø Whole project is considered one operation
Ø Work is complete on each project before passing on to next.
Ø Each product is a class itself and requires a distinct and separate job for
production.
Ø Project involves high capital investment.
Ø Highly skilled labour is required (with versatile qualities)
Batch Production:-
Ø Items are processed in lots or batches.
Ø A new batch is undertaken for production only when the production of existing is
completed
Ø It is extension of job processing
Ø Example: chemical industry- Different medicines are produced in batches. Printing
press
Advantages of intermittent production system:-

Ø Can adjust to next situation and specification
Ø Items can be manufactured according to order
Ø Fluctuation in demand can easily be taken care off.
Disadvantages of intermittent production system:

Ø As production is in small quantity so C.O.P is high.
Ø Because skilled labour is needed so security and associated cost of HR pushes
overall cost.
Ø Initial heavy investment
Ø More inventory so large space required.
Product strategies:-
Product occurs in great diversity. We may classify them on basis of some criteria into
various categories
PRODUCT STRATEGIES
FULLY COUSTOMIZED MIXED PRODUCT

STANDARADISED
1. Fully customized product strategies:

Ø Separate product for separate customer according to its requirement
Ø No inventory
Ø Uniqueness
Ø Emphasis is on time delivery quality and flexibility
Ø Example Dress designed for particular customer
Ø Production in s mall lots according to customer needs
2. Mixed product strategies
Ø Sensitive to variety
Ø Some flexibility
Ø Moderate cost
Ø Dependability of supply
Ø Quality of products is important
Ø Multiple sizes and types of products are there

Ø Offshore and by order both the aspects are important on the enterprises
strategy
3. Fully standardized product strategies
Ø Same product for every customer
Ø Off shelf availability (inventory)
Ø Emphasis is on minimizing cost
Ø Increasing availability
Ø Example sugar gasoline steel and aluminum products
Ø Production in large volume
Q:- 3 What do you mean by facility location ? How his decision is important for any
organization. What are various factors affecting location?
Ans:
FACILITIES LOCATION:-
It is defined as selection of suitable location or site for place where the factory or plant to
be installed where plant will start its functioning.
Significance \ important of plant location:-
Location is critical element in determining fixed and variable cost.
Depending up on the product production system transformation cost along can total as
much as 25% of selling price.(it means % of total revenue of firm is needed to just our
freight the expenses of raw material coming in & finished product going out).
Choice of location can alter 10% of total production & distribution cost.
Examples -: new factory location region with high energy cost, even good mangt.
Location fix sum of physical factors of overall plant design like heating & of labour,
taxes land, construction fuel etc.
Dynamic nature of plant locati on:-

Relocation: a location that is good for particular firm today may not be good tomorrow.
It means that it is not having a static (consistent nature).But it is dynamic in nature. The
shift of location of plant to some other place is relocation. This is necessary because of
following reasons:
Shifting from one market to another
Changes in nature & availability of materials
Changes in pricing policy
Expansion decision/ diversification / modernization
Undesirable labour situations (unavailability of skilled labour. rise in labour cost
need of changed skills etc).
Relocation of various associated industries plants.
Government regulations
Main focus is on minimizing the cost
Maximizing the speed of firm by taking optimal location decision
Types of Facilities:-
(1) Heavy manufacturing
(2) Light manufacturing
(3) Warehouse manufacturing
1 heavy manufacturing:
Construction cost (large plants)
Modes of transport
Raw material availability
Example: automobile plants, steel mills, oil refineries.
2. Light manufacturing:-
Proximity to customer (most important)
Labour pool
Skilled labour
Government regulations
Example: stereo, TV computer etc.
3. Ware house and Distribution center

Receive handle, ship product.
Transportation and shipping cost.
Proximity to consumer
SITE EVALUATION PROCESS

This process is conducted by either company individuals or by specified hired
agencies (consulting firm)
Evaluation process requires large amount of data & information relative to
different location factor.
Cost data alone for different factor such as construction land, labour &
transportation is voluminous
Government agencies also publish numerous documents with data &
information about potential business sites so as to attract business.
Data collection Analysis of data evaluation of data on

About various bases of various factors final
Sales
decision
Factors responsible for plant location:-

1 availability of raw Material:-

Adequate raw material
Minimum technical & delivery problem
Regular supply
Minimum per unit cost of procuring raw material.
Example: - Industry location

Textile Bombay and Ahemadabad
Jute Calcutta
Iron Jamshedpur
Steel Jamshedpur
2. Nearness to potential markets :-

Mgt. may have close touch to changes in market environment. So as to
formulate production policy acc
As the distance between market & plant increases It directly increases
transportation cost
Example: glass, chemical & drug factory are mainly affected by this
consideration.
. 3. Near to source of operating power:-

As in some industry continuous supply of power is important factor. E.g.:-
nylon fiber plant
Cheap electricity (plant near to hydel power station)
Example: - paper and pulp mills, flour mills etc.
4. Supply of labour:-
Important input
Regular & cheap supply
Labour availability with required skills.
If required labour will be available near plant then it will be available at
cheaper rates.
Examples all bangles industry in Jodhpur
5. Transportation & communication:-

Transportation for all is req. raw material, work in progress, and finished
goods.
Plant must be well connected with rail, road water & air transport.
Good communication like postal, telecommunications links is of great
significance.
6. Inteqration of other group of companies:-

If other concerned group of company will be near so they may enjoy some
economies.
7. Suitability of Land & Climate:-

Climate condition like humidity, temp other atmospheric condition should
be favorable.
8. Availability of housing & other amenities:-

Good housing
Theater
Shopping complex
Local passenger transport
Proper drainage
Disposal of waste etc
9. Government regulations:-
Example: Delhi authority decision
10. Safety Requirements

If it is nuclear, power plant or chemical industry must not be in residential
area.
11. Other Factors

Special grant, political stability, low rental etc
Economic stability
Available technology
Culture
Construction & leasing cost
Q= 4. What is plant layout? Explain different kinds of layouts? What are the
characteristics of a good layout? How layout is designed?
-
Ans. PLANT LAYOUT
Physical arrangement industrial facility, storage, labour, adjustment & other
supporting activities
Means:-
Placing right equipment
Coupled with right method
In right place
Processing of products in most effective method, through shortest possible
distance & time.
Results in:-
Proper material handling
Reduce transportation cost
Maximize utilization of floor space
Material movement at desired speed at low cost
Less working progress & less need of supervision
FACTORS CONSIDERED FOR LAYOUT

1 Organization
2 Location of department
3 Type of product, method if production, production process.
4 Production capacity
5 Type of industry.
6 Grouping of machine
7 Material flow pattern
8 Space req. for machine, work area storage etc.
9 Safety factor
10 Health & other factors like ventilation light etc.
11 Provisions for future expansion , diversification
12 Storage system i.e. centralized & decentralized.
OBJECTIVE OF PLANT LAYOUT

1. minimum material handling & internal transportation
Automatic handling
Better control
Large unit loads
Movement of goods at desired speed at low cost
2. Facilitate manufacturing process.
3. Flexibility of arrangements.
4. Maxi. Utilization of equipment & floor area
5. Care for employee’s safety & convenience.
6. Minimization of worker movement.
7. Better facility of maintenance & inspection.
8. space for future expansion
9. Design layout in such a way that there is mini. Chances of accident.
CHARACTERISTICS OF GOOD LAYOUT

1. Mini. Handling between the operations.
2. Mini. Handling distance.
3. Mini. Back tracking
4. Mini. Goods in process
5. Planned material flow pattern
6. Layout adaptable to changing conditions
7. Proper location of services
8. Maxi. Automatic handling
9. Control over noise, dust, humidity temperature etc.
10. Mini. Handling by skilled workers
DESIGNINGTHE HANDLING SYSTEM TO THE LAYOUT

For efficient material handling careful analysis & evaluation of the entire
operation with the objective of implementing a well planned material flow
pattern by means of appropriate method & equipment
Procedure for this is

1. Understand entire system including production system, handling
system, equipment machinery.
2. Examine the system design criteria, like productivity, cost reduction
safety, flexibility, quality, working conditions, order flow, optimum
space etc.
3. collect data & analyze it
4. developed flow pattern
5. identify activities & their interrelationship
6. Identify movement requirements i.e. path flow org.
7. Analysis material characteristics like quantity, type properties ,unit
weight.
8. Establish building characteristics.
9. Feasibility of mechanization
10. Select preliminary handling system & equipments types.
11. Evaluate the alternative.

12. Arrive at discussion
13. Check the selection for compatibility
14. Install the system i.e. implementation.
Types of Layouts:-
1. line layout ( product layout)
2. functional layout( process layout )
LINE PRODUCT LAYOUT:-
All the equipment required for one part or product together in one deptt. In sequence of
operation performed, So that part is completed there and does not have to moved from
one department to the other for processing.
Example:-
Car washes, Cafeterias.

Automobile maker, Beverages bottles usually line layout so normally it is S. U. L. N. O.
shaped.
PRODUCT \ LINE LAYOUT
Layout is popular in mass production continuous (Suitability of this method)

One product or one type product is an operating area.
Product must be standardized and manufactured in high quality.
Machines are arranged in a way in which they are used. So operations are performed in
sequence.
All parts, sub-assembling etc. started at right time so as to be ready a the required time &
kept moving until the finished product is available at end of assembly line.
DIGRAM OF LINE LAYOUT OF CAR WASHES
Waiting cars
Hot wazar
spray Top wash Final
& spray Side wash rinse Cleanout &
hand wipe Car exit
ADVANTAGES:
>It lowers the overall production time as operation without any handling.
>Less space is needed for placing machine.
>Minimum handling & transportation.
>Less work in process.
>Higher rate of output because no interpretatrens.
>Low cost of manufacturing.
>Simple production planning less inspection/supervison.
>Better labour & machine utilization.
DISADNABTGES
>No variety is possible.
>No flexible with regard to design changes.
>Very high stoppage costs as lines are highly integrated one part of line
stops entire line is affected.
>High maintenance cost ,capital cost & investment
>Less job satisfaction
>More coordination required between material production job shop.
2.Process functional layout
This department is made up of machine .equipment or process that fell into

one category, according to the function performed.the product is fabricated by moving it
from department to department according to sequence of operation to be performed on to
So each department is responsible for carring out 2 particular processes and not a
particular product machine in this type of layout are generally arranged on function basis-
-----
Suitability-for intermittent production system
Example wareeeehouse.hospital, university, medical
P1 P1
Cardiac Laboratory
P2 p2
Reception
X-ray
Physician p2
Surgery
Chemist p2
Patient 1 patient 2
Q. 5 Write a note on inventory management along with derivation of

economic order quantity (EOQ)?
Ans:- Inventory :- Inventory is defined as a usable resource, which is physical and

tangible such as material. In the sense, our stock is our inventory, but even then
the term inventory is more comprehensive . Though inventory is usable resource it
is also an idle resource, unless it is managed efficiently and effectively.
Or
Inventory means all the material parts, supply, expense, tools and in process or
finished products recorded on books by an organization and kept in its stocks,
warehouses or plant for some period of time.
INVENTORY MANAGEMENT:-
It is handling inventory in a proper way. Inventory management boils down to
maintain an adequate supply of something to meet the expected demand pattern
subject to budgeting considerations. Effectiveness of the material and production
functions depands to a large extent on inventory management.
Inventory turnover ratio= Annual demand\ Average inventory.
(ITOR)
I. T. O. R. is index of business performance. Sound management
gives a high inventory turnover ratio.
CHARACTERISTICS OF INVENTORY:-
1. Inventory serves as a cushion to absorb shocks. An organization

has to deal with several customers and vendors. But due to
unpredictable behavior, there are fluctuations in demands,
supply. Inventory absorbs these fluctuations. Inventory for

organizations is a necessary evil.
2. Inventory requires valuable space and consumes taxation and

insurance charges. This leads to considerable investment and cause
considerable opportunity loss.
This capital invested in inventories remains idle till all items
present in stocks are not used. On the other hand no organization can
work without maintaining some inventory i.e. it is an necessity cost
of not having inventories are usually greater than cost of having
them.
2. Inventories are the result of many interrelated decision and

policies within an organization.
3. Inventories provide production economies.
Costs incurred in inventory
Inventory carrying cost Shortage cost

Ordering cost
a) Inventory carrying cost:-

Total cost in curred after purchase it includes interest of capital blocked in inventory
storage cost
Of space required, insurance cost wages paid to the stored department cost of absolute
items.dameged, ceterioration, telephone charges etc.
b) Ordering cost:- Total cost for purchase department, wages and salary to purchase
department, telephone, equipment, calculator, computer, stationery uses draft charges etc.
C) Shortage cost :- (absence of inventory)

To back orders /cancellation of orders/direct penalty indirect cost in form of lost goodwill
total % of the cost of any product is due to inventory cost.
INVENTORY CONTROL TECHNIQUES
1. E.O.Q.(economic order quantity)

Inventory control deals with 2 basic issues (1) when to order (2) how much to order .The
problem of when to order is decided by prescribing the recording level of each of
inventory item. The problem of how much to order i.e. what should be size of each order.
The issue of how much to order is decided on the basis of economic order quanity
(E.O.Q.)
E.O.Q. is an important technique of inventory controls.EOQ prescribes the size of order
at which ordering cost and inventory carrying cost will be minimum .As both these costs
are mutually exclusive, the total of both cost will be minimum at a point where ordering
equates carrying cost.
2. ABC Analysis: (Always Better Control)

ABC analysis is a basis analytical management tool, which enables top
management to place the efforts where the results will be greatest. The technique
analyses the distribution of any characteristic by money value of the importance in order
to determine priority.
Quite a No. of management remembering this simple 20\80-law probability
known as patreo,s law of cause and effect can successfully solve problems. The law states
that only 20% of effect.
ABS analysis underlines an important principle vital few trivial many. There is a division
of items. These few items called a items hold the key to business. The B and C items are
numerous in number, but their contribution is less than 10% of total number account for a
substantial portion of about 75% of total consumption value & such vital few items are
called A items, which need careful attention of material managers. Similarly a large no.
of bottom items over 70% of total consumption of units are called trivial many account
only for about 10% consumption value are known as C class. The items lie between top
& bottom is called B category items.
A ITEM B ITEM C ITEM
High consumption value Moderate value Low consumption value

Very strict control Moderate control Low control
No safety stock Low safety stock High safety stock
Frequent control once in three weeks Bulk ordering once in 6
month
Weekly control statements Monthly control reports Quarterly control an
analysis
Accurate forecast in material Estimate based on past data Rough estimate for
planning
on present plans
Minimization of waste, Quarterly control over surplus Annual review surplus
&
Obsolete & surplus & obsolete & surplus obsolete items
3. Sed- Vital Essential Desirable
All items those, if they are required & but not present in store & production stops.
Essential items are those, if they are required & not present , then production
efficiency
Decreases
Desirable: Those items are those if they are required & not present, there is no
effect on production.
4. FNSD Analysis :
F fast moving
N normal moving
S slow moving
D Dead items
On the basis of criteria co. select which are slow moving items and which are non-
moving items and which are non-moving items so that they may concentrate more
on fast moving items it helps in
In controlling obsolete items

Decided on issue of item
If zero issue of item
If zero issue-dead item
Q = 6 What is store management? What are the types of store management?

Explain function& working of store system?
Ans: Stores:
Those items which are not in use for some specific duration E.g. spare parts & raw
material these are not for some specific duration. E.g. spare parts & raw material
these are called stores and the building space where these are kept is known as
store room.
Storekeeping is the aspect of material control which is concerned with the physical
storage of goods, storekeeping includes:-
Receiving material
Protection of material
Issue of material in the right quality, at right time, right place to
provide these service promptiy and at least cost.
Types of store system
Stores
system
Open system
Closed system
CLOSED STORAS SYSTEM:-
It is the type in which all which all material are stored in a closed or controlled
area, for example-chemical, cement, milk etc.
OPEN STORES SYSTEM:-
In open stores system there is no specific storage area. In open store system, there
are high chances of pilferage. For eg:- bricks, sand etc.
STORES SYSTEM
CLOSED SYSTEM OPEN SYSTEM
All material are stored in closed or There is no specific storage area.

Stores
Area are maintained in the form of
Suitable convenient location
No other person than stores personnel every individual has access to any
Is permitted in the area storage facility
Material can leave or enter the storage area after the receipt of material it is
delivered
Only by authorized document. To the respective deptt
To expedite the
production
Activity
Maximum physical security High chances of pilferage
Tight accounting control of inventory material less emphasis on accounting
control of material
FUNCTION OF STORES SYSTEM
1) RECEIPT
Receiving of material is an important function of stores system. The receiving involves
much of paper work and it varies from firm to firm.
RECEIPT
COORDINATION&
COOPERATION STORAGE
RECORDS
FUNCTION OF
STORES
RETRWAL
VERIFICATION ISSUE
HOUSEKEEPING
2) STORAGE
It stores and preserves the inventories protecting them from pifferage & deterioration.
3) RETRIVAL
It helps easy accessibility to material and ensures optimum space utilization. Material
can be located and retrieved with ease.
4) ISSUE
It satisfies the demands of consuming deptts proper issue of inventories on receiving the
requisition.
5) RECCORDS
The keeps proper records of issue and receipt.
6) HOUSEKEEPING
The space is kept neat and clean so that material handling, preservation, storage issue
and receipt is done satisfactorily.
7) SURPLUS STOCK
Scrap and surplus disposal management is function of stores.
8) VERIFICATION
Physical verification and purchase initiation to avoid stock outs.
9) COORDINATION & COOPERATION

To interface with production and inspection department
WORKING OF STORES DEPARTMENT

Production
Stock order
Stock reservation
Work
Stores section
Stores & account
section
Receiving Material
Stock delivery report Material report
Stores receiving
Stores issuing section
section
EXPLANATION OF WORKING OF STORES DEPARTMENT
Item are ordered by purchase department for production. When a purchase order (stock
order) is place, a copy of it is sent to the stores deptt. Indicating quantity and delivery
date.
Stores section is a place where all material received by stores deptt are kept with
protection against deterioration and pilferage. They are stores in such a way that their
location is easily identified at time of issues. The stores in charge receive the materials
from stores receiving section along with goods inward note (goods receiving report)
i) STORE ISSUE SECTION
The section handles the issue of material when required by some departments of the
enterprise, a storeroom does not always issue a material in the same units in which it is
purchased in gross and issued in dozen.
ii) ACCOUNTING SECTION
The stores accounting deptt has to maintain up-to-date account value of items in stock,
so that correct price is charged at the time of issuing the material. When material is issued
to the concerned deptts, stock delivery report is sent to stores account section. Maintained
for all arrivals, making the receipt triplicate, a copy of which is sent to the account
section and other to store section.
Stock delivery report is also sent to the purchase deptt. When concerned deptt receive
required material, they start work.
Q=7:- Write a note on work study?
ANS. WORK STUDY

Work study is a technique that embraces method study and measurement which are
employed to ensure the best possible use of human and work measurement which are
employed to ensure the best possible use of human and material resources in carrying out
the specific activity.
WORK STUDY
Method Study Work measurement
Systematic recording and critical examination of Application of techniques designed to

Existing & proposed viays of doing work as to establish the time for a qualified
worker
Develop more effective reduce cost. To carry out a specific job at a

defined
level of performance.
PURPOSE OF WORK STUDY
To assist management to obtain optimum use of human & material resources

Most effective use of resources
Evaluation of human work
Work study is not limited to shop floor, nor even to manufacturing industry. It can be
used in any situation where human work is performed.
Work study can also be defined as (BY British glossary)
A Management service based on those techniques, particularly method study, a work
measurement which are used in examination of human work in all context and which
affects efficiency of the situations being reviewed in order to effect improvement.
WORK STUDY
Method study Work Measurement
Making possible
Results in more planning & control,
effective use of material, manning.
plan, and manpower.
Higher productivity
M ETHOD STUDY
The systematic recording and critical examination of factors & resources involved in
deploying and applying easier and more effective methods and reducing costs. Procedure
is S- Select
R- Record
D- Develop
I- Install
M- Maintain
PROCESS CHARTING
The job or process under investigation often consists of a no. of activities. It is to use
them conveniently. We use symbols.
The modern system of process charity is due to Gilbert’s later development in
motion study technique. Later in 1947 the American society of mechanical engineers
reduced the
No. symbols and standardized the technique.
PROCESS CHARTS
Charts in witch a sequence of portrayed diagrammatically by means of a set of the
process chart symbols.
STANDARD NAME OF ACTIVITY DEFINITION OF ACTIVITY

SYMBOL
Modification of an object at one
OPERATION work place object may be changed in
any of its physical or chemical
characteristics
TRANSPORTATION Change in location of an object from
OR MOVEMENT one place to another
INSPECTION Examination of an object to check on

quality or quantity characteristics.
DELAY / Retention of an object in a location

TEMPOARY awaiting next activity.
STORAGE
STORAGE Retention of an object in location in

Storage which is protected against
unauthorized removal.
Types of process
OUTLINE PROCESS CHARTS
An out line chart records an overall picture of process & records only main events.
Sequence wise. It considers only the main operations & inspections.
E.g. reconditioning of broken shoes
FLOW PROCESS CHARTS

Is geographic representation of sequence of all operations, transportation, inspection.
Delay 7& storage occurring during a process & procedure & include information.
Consider describe for analysis such as a time required & distance moved.
TWO HANDED PROCESS CHART

In this chart activities of a worker or operators both hands & limbs are recorded
Chronologically. The symbol implies hold instead of storage.
MULTIPLE ACTIVITY CHART

] in this chart the activities of more than one subject are recorded on a common time scale
to flow their inter relationship.
E.g. reading in a desk of card reader
FLOW DIAGRAM
The flow is a drawing or a diagram drawn to scale to show the relative position of a
machine or equipment jigs & fixtures gangways.
Aisles & show the path followed by machine.
Three dimensional diagram:- where a subject covers several floor levels as well as
different parts of the factory a 3 dimensional flow diagram is useful.
Q.8. what do mean by ISO, explain, in detail the concept of ISO?

Ans: ISO (INTERNATIONAL STANDARD ORGANISATIO)
ISO: 9000 is the series of international standards for quality system. It is practical
standard
Applicable to both manufacturing as well as service industry
The standards were 1 st published in 1987 & subsequently revised in 1994.
In India:- ISO 9000
British:- BS : 5750
European:- EN:29000
ISO 9000 set out that company could establish document & maintain an effective and
economic quality system, which will demonstrate to the company is committed top
quality and is able to meet this quality need.
ISO 9000: what is quality mgt.?
Flow process charts are of three types:-
1 material or product type
2 man type
3 Machinery or equipment type
To run up a quality assurance system
ISO 9001: there system (9001-9003) described about quality aspects covered.
ISO 9002: And know as module 1, 2 & 3 respt.
ISO 9003
ISO 9004 what cost of quality operation is appropriate to a project.
There standards have been splits in to 20 sections called element to enable the users to
implement it easy, effectively & efficiently..
Salient Features ISO 9000:
1. a company adopting ISO must identify an assign responsibility for all factors that
effect quality.
2. The supplier shall establish and maintain documentary quality system means of
ensuring that product confirm to the specified requirement.
(a) Preparation of document quality system procedures, instruction in accordance with

the international standards.
(b) Effective implementation documented quality system, procedures & instructions.
3 Supplier shall establish & maintain procedure to control all the document & dates
that relate to the requirement.
4 The supplier shall ensure that purchase product confirm to the specified req.
5 Supplier shall establish & maintain procedure for verification, storage &
maintenance of purchase supplier product.
6 Supplier shall ensure that all the process is carried out under control conditions.
Process control:-
(a) The incoming product is not use or process until the same has been inspected or
verified.
(b) The product is being inspected & tested as per quality planned during all the stage
of production (testing & inspection).
(c) Carrying out all final inspection is accordance with quality plans or documented
producers. .
7 control of non confirming products :-the supplier shall maintain & establish
procedures to
Ensure that the product which does not confirms the specified require ments is
prevented from installation or use.
8 corrective action :-the supplier document & maintain procedure for investigating
the care of non confirming product & corrective actions leaded to present
reoccurrence should be takes all necessary measures to rectify procedure should
not be taken care off.
9 Documentation:- the supplier shall document & maintain procedure for pending
storage purchasing & delivery of product .
10 Quality records:- the supplier shall maintain records for identification , collection,
filling , storage , maintenance extra .
11 Internal quality audits :- the supplier shall carry out quality audits to verify
whether quality activities comply with plan mgt. & to determine the effectiveness
of quality system
12 Training:- the supplier shall establish & maintain procedures for identifying the
training of all personal activities effecting quality during production & installation
.
13 Statistical techniques:- where appropriate the supplier shall establish procedures of
identifying statistical technique req. for verifying the acceptability of process &
product char.
Aim & objective of ISI:- 9000 series

1 Increase customer’s confidence in company
2 A shift from system of inspection to quality mgt
3 Gaining mgt. commitment
4 looking quality from art consciousness point of view
5 Giving customer what they need & want
6 Removing the need for multiple assessment of supplier
Steps for ISO:- 9000 implementations:

1. understand the standards system & its implementation
2. conduct the necessary training program
3. Line managers should generate documentation outside consultant may be
appointed for the purpose
4. it takes a year or a year & a half concerted efforts to achieve ISO:-9000
registration.
The control of all documents related to quality is an important req. of ISO:-9000 it covers
all rules as drawing, blue prints, work instructions, test procedures, inspection record
Calibrates data & quality art records. ISO needs top mgt. commitment & quality policy
spelling out intension & direction of an organization as regards quality as formality
expressed by top mgt.
ISO & TQM total quality mgt. is a mechanism to change a company culture to reach its
goal.
ISO facilitate this change. ISO is a subset of TQM. It is just a banging of TQM process.
TQM process is much more comprehensive. it looks for quality in for dimension .
1. Customer requirement.
2. Mgt. commitment.
3. Total company wide participation (integration).
4. Systematic analysis of quality products.
Customer requirements
Management Integration
Commitment
Systematic analysis
Q.9 Write a note on PPC (production planning and control) in mass .batch & job
production?
Conversion process
Door Shop Job shop

Project
Same operation variety of jobs in it is a
unique one
Repetitively small batches shot affair
consist
Performed in sequence of many non
repetitive
Activities which
consume
Time & resources
It is for mass production
PPC IN MASS PRODUCTION
Mass production believes in break up of task in to its simplest possible element. These
are then grouped as per production norms. Assembly line consists of the work station
(WS) in sequence. At each work station carefully designed portion of work is done.
Assembly lines are interchangeable and replaceable
Continuous movement \ flow of the material at uniform ave rage rate
Example: automobile, computers, toys assembly
DIGRAM OF ASSEMBLIES:
WS
A
INPUT
WS
WS N
B
WS A = WORK STATION A
WS B = WORK STATION B
WS N = NTH WORK STATION
Large quantity production with standardized products range less variety
Ideally it is single product (standard) manufactured on continuous basis for longer period
of time.
A main factor which helps in deciding to go for either mass\ batch is demand. If demand
is high for longer period then to go for continuous otherwise for batch production
Smooth flow of material from one WS to other workstation in straight line L. U shape.
Small WIP (work in progress) as output of one become input bof other less storage space.
Production time \ unit as whole in short.
Closely spaced WS reduce material handling.
No expertise is necessary to operate systematically.
PPC is very simple
DEMERITS \ PROBLEMS PPC:-
One machine failure results in stoppage of the work of other. Challenging maintenance
Lack of flexibility Great changes if products design changed.
Production speed is determined by slowest machine line. Balancing is difficult
It requires general supervision rather then special type of machine and their possible
duplication along the line
Grouping of task for WS (work station)
Line efficiency = (total station time \ CT No. Of WS) * 100
(LE)
Balance delay = (total idle time of all station \ total available working time) * 100
(BD)
BD in other words is (100-LE) as a percentage

CT = Cycle time ST = Does not exceed CT
ST = Station time
PROBLEMS AND PROSPECTS OF MASS PRODUCTION:
1. Variable work element times: Work elements vary randomly. The reason
for this human element which is variable, fatigue factor and negligence of
operator. It may result in
Great idle time at some WS
Reduction in average production rate of the line
Probabilistic balancing method used in this
2. Break down at WS
3. Multi-product production is not feasible because of luck of flexibility
4. Modular production:-
To introduce variety in production system this approach is used where
minimum number of parts or operation is designed developed. These are called modules
these can be combined in a number of ways to offer wide variety of products.
5. GROUP TECHNOLOGY:-
Here there is specialization in familiar of the similar parts. Parts requiring
particular operations are assigned to different groups technology machines
are arranged here in such away that each machine is assigned to production
of one of parts. It affects component manufacturer only.
6. Automatic:-
Automation work piece indexing
Transfer of work pieces from one WS to other
7. Robotics:-
Electronics give numerically controlled machines (NCs) and computer
numerically controlled machines.
PPC IN BATCH PRODUCTION

Batch production
Varieties of production are there:-
Volume of production is not large enough
Machines are used to make different products.
Flow of material is more complex.
Planning of material and logistics play important role then controlling part, as flow of
material is more complex so layout is planning keeping in view the volume, flow and
variety.
In this, there is continuous demand.
Here is process layout (functional layout)
Similar machines since machines utilization is better.
Specialized supervision is required.
Not so capital intensive.
DEMERITS:-
Material handling is complex and costly also since flow of component is irregular and
longer distance is there.
PPC is elaborate, longer production time.
WIP ties up larger capital & space.
PROBLEM AND PROSPECTS:-

As WIP (work is process) & lead-time is large. Requirement planning is tool to solve this
problem (MRP) Another way of reduce WIPPPPP & lead-time is using shorter
production run.
FMS:- Flexible manufacturing system is also a tool to overcome problem of batch
production. These machines though general purpose are versatile enough to perform
different operations which are linked by (MMS computerized MMS)
Its decreases WIP and increases machine utilization in small batch manufacturing.
PPC IN JOB PRODUCTION:-

Manufacturing of products to specific customer requirement, small quantity production
e.g. engines, boilers, steam engines, ship building.
THERE TYPES OF JOB PRODUCTION
Small products Small no. of products Small no.

products
Produced only once produces intermittently produced
periodically
PPC IS Relatively difficult as every job order is of different nature and have different
sequence
Specific job orders are is of different WS as per availability of capacity.
Production schedule drawn depend on relative priority assigned to various jobs.
Scheduling is dependent on assessment of production time.
Q=10. What is purchasing? Explain important factors for purchasing. Explain

purchase procedure?
Ans:- PURCHASING
Purchasing is a part of material management purchasing means procurement of
goods & service from external agencies. The main objective of purchase department is to
arrange the supply of material, spare parts & services or semi-finished goods required by
the organization.
Objectives of purchasing:
1. Purchase of satisfactory material:

The main objective of purchasing is to arrange materials which are most
appropriate to the product & are supplied in right quantity & quantity, at
right time & right price.
2. To control the quantity of material:

To control the quantity of material should be adequate. It should not be too
much quantity may unnecessary block the capital whereas too little quantity may affect
may the regular supply of production.
3. Proper Negotiation with Suppliers

Purchasing includes search foe potential supplier. This ensures timely supply of the
material in the most economic manner. Purchase dept. creates goodwill & enhances the
reputation of the enterprise.
4. Control proper use of materials
The purchase dept. avoids duplication, waste and obsolescence of material and
equipments thus it enhances proper use of the material.
5. Co-ordination of different depts.

The purchase dept. should develop full co-ordination & maintain close relationship b\w
various dept. of organization.
6. Maintenance of organization goodwill:

The purchase dept. maintains the quality STDs of the material. Thus, purchasing
activity generates the confidence of consumer in the product of the company.

Production Management

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Production Management VIMAL JOSHI

Ans:- Production is basically defend as conversion of Inputs into output through

Produc tion system Input Conversion Output

Hospital Patients Health Cured

Oil Refinery Crude Oil Chemical Process Gasoline oil

Fast Food Buns, Potatoes Cutting, Frying Burgar

It is process in which performance of management activities are done with regards to

Production Management Functions:-

In Fact Planning phase is divided in to two sub parts

Organizing involve activities that establishes of tasks for (organization structure

It involves all the activities that assure that actual performance is in

Activities involved in controlling

OBJECTIVES OF PRODUCTION MANAGEMENT

To produce quality goods & services

Right Product at Higher

Optimal use off her

Scope of production management

Activities related to Designing & Activities related to analysis &

(1) Production Engineering

(1) PRODUCTION ENGINEERING:-

(2) PRODUCTION PLANNING:-

(3) PRODUCTION CONTROL:-

Quen:- 2 What do mean by production system ? Explain in detail different types of

Ans:- Production system:-

BASIC PRODUCTION SYSTEM

Mass prod Process Prod Job Prod Batch Prod

(1) Continuous Production system

(B) Process production:-

Advantages of continuous system:-

Disadvantages of continuous systems:-

ILINTERMITTENT PRODUCTION SYSTEM

Advantages of intermittent production system:-

Disadvantages of intermittent production system:

FULLY COUSTOMIZED MIXED PRODUCT

1. Fully customized product strategies:

Ø Multiple sizes and types of products are there

Dynamic nature of plant locati on:-

3. Ware house and Distribution center

SITE EVALUATION PROCESS

Data collection Analysis of data evaluation of data on

Factors responsible for plant location:-

1 availability of raw Material:-

Example: - Industry location

2. Nearness to potential markets :-

. 3. Near to source of operating power:-

5. Transportation & communication:-

6. Inteqration of other group of companies:-

7. Suitability of Land & Climate:-

8. Availability of housing & other amenities:-

10. Safety Requirements

11. Other Factors

FACTORS CONSIDERED FOR LAYOUT

OBJECTIVE OF PLANT LAYOUT

CHARACTERISTICS OF GOOD LAYOUT

DESIGNINGTHE HANDLING SYSTEM TO THE LAYOUT

Procedure for this is

11. Evaluate the alternative.

LINE PRODUCT LAYOUT:-

Car washes, Cafeterias.

PRODUCT \ LINE LAYOUT

Layout is popular in mass production continuous (Suitability of this method)

DIGRAM OF LINE LAYOUT OF CAR WASHES

2.Process functional layout

This department is made up of machine .equipment or process that fell into