INDUSTRIAL MANAGEMENT

BY: MAYANK PANDEY

ASSISTANT PROFESSOR

NIET BUSINESS SHOOL14-03-2014 00:43:54

UNIT-2• Management Function: Principles of

Management.

• Management Tools: time and motion study,work simplification- process charts and flowdiagrams, Production Planning, Specificationof Production requirements.

14-03-2014 00:44:00

Fayol’s General Principles of Management

1. Division of Work

2. Authority

3. Discipline

4. Unity of command

5. Unity of direction

6. Subordination of individualinterest to general interest

7. Remuneration

8. Centralization

9. Scalar chain

10. Order

11. Equity

12. Stability of personnel tenure

13. Initiative

14. Esprit de corps14-03-2014 00:44:00

Production Planning and Control

• Production planning and control can facilitate the small entrepreneur in the following ways.

Optimum Utilization of Capacity

Inventory control

Economy in production time

Ensure quality

14-03-2014 00:44:00

Steps of Production Planning and Control

Production Planning and Control

Production PlanningProduction Control

Planning

Routing

Scheduling

Loading

Dispatching

Following up

Inspection

Corrective Measures

14-03-2014 00:44:00

• Aggregate Planning: The objective of aggregateplanning is to find out the most economicalmethod of using production resources to meetfluctuating demands of production output

• Routing: Routing procedure involves followingdifferent activities.

1. The operations to be carried out on a job.

2. The machine or work centre to be used.

3. The details of operations to be performed.

4. The sequence of operations from rawmaterial to finished product.

14-03-2014 00:44:00

• Scheduling: Working out of time that should berequired to perform each operation and also the timenecessary to perform the entire series as routed,making allowances for all factors concerned.– Master Schedule: Scheduling usually starts with

preparation of master schedule which is weekly ormonthly break-down of the production requirement foreach product for a definite time period.

– Production schedule: It takes into account followingfactors.• 1. Physical plant facilities• 2. Personnel who possess the desired skills and experience• 3. Necessary materials and purchased parts.

• Loading: Loading determines who will do the work asrouting determines where and scheduling determineswhen it shall be done.

14-03-2014 00:44:00

Production Control

Dispatching: Dispatching involves issue ofproduction orders for starting the operations.Necessary authority and conformation is givenfor:1. Movement of materials to different workstations.

2. Movement of tools and fixtures necessary for eachoperation.

3. Beginning of work on each operation.

4.Recording of time and cost involved in each operation.

5. Movement of work from one operation to another inaccordance with the route sheet.

6. Inspecting or supervision of work.14-03-2014 00:44:00

• Follow up: All problems or deviations areinvestigated and remedial measures areundertaken to ensure the completion of work bythe planned date.

• Inspection: This is mainly to ensure the quality ofgoods. It can be required as effective agency ofproduction control.

• Corrective measures: Corrective action mayinvolve any of those activities of adjusting theroute, rescheduling of work changing theworkloads, repairs and maintenance ofmachinery or equipment.

14-03-2014 00:44:00

SPECIFICATION OF PRODUCTION REQUIREMENT

1. Part Drawing (Production Drawing)

2. Machining Detailed and Sequences

3. Materials & components

4. Quality level required

5. Production Quantity14-03-2014 00:44:00

WORK STUDY

• Work Study implies the study of human work.Work study investigates the work done inorganization and it aims at finding the bestand most efficient way of using availableresources men, material, machine and money.

14-03-2014 00:44:00

Work Study & Productivity

WORK STUDY

METHOD STUDY WORK MEASUREMENT

Choose & evaluate one best standard

Method

Choose and evaluate one best standard

time

Standard Time & Standard Method

Rise in Productivity14-03-2014 00:44:00

Objectives of Work Study

Improved working process and standardized.

Less fatigue to the operator.

Efficient utilization of men material.

To evaluate human work.

To reduce ineffective time due to management & workers.

14-03-2014 00:44:00

Benefits of Work Study

Improved Productivity.

Higher efficiency in productivity.

Manufacturing cost is reduced.

Quicker and accurate delivery dates.

Good employee-employer relationship.

Job satisfaction to workers.

Higher wages and incentives to workers.

14-03-2014 00:44:00

Method Study or (Motion Study)

• Method study is systematic recording andcritical examination of existing and proposedways of doing work, as a means of developingand applying easier and more effectivemethods and reducing costs.

14-03-2014 00:44:00

Objectives of Method Study

The improvement of processand procedures.The improvement of factory,shop and workplace layoutand of the design of plant andequipment.Economy in human effortsand reduction of unnecessaryfatigue.Improvement in use ofmaterials, machines &manpowerTo find out the best way ofdoing a job.To standardize the bestmethod.Effective material handling

14-03-2014 00:44:00

Various Considerations

14-03-2014 00:44:00

Economic Consideration Technical Consideration Human Reactions

1. Operation involvinggreat deal of manpower condition

1.Bottlenecks holding production

1. More acceptable if it can Improve working

2. Highly fatigued work 2. Movement of material over long distances between shops

2. Reduce the efforts and fatigue of workers

3. Operations involvingrepetitive work

3. Inconsistency in quality

14-03-2014 00:44:00

Method Study

Select the subject to be studied

Record facts relating to existing method

Diagram Charts Model

Examine all relevant facts critically

Purpose Place Sequence Person Means

Develop alternative to existing methods

Install the new method

Plan-arrange-implement

Maintain new method

Verify its implications at regular intervals

Higher Productivity

Work Measurement

• Work measurement is concerned withelimination of ineffective time andestablishment of time standards for a job.

• “Work measurement is a technique toestablish the time for a qualified worker tocarryout a specified job at a definite level ofperformance.”

14-03-2014 00:44:00

Uses of Work Measurement

1. To reveal the existence of ineffective time.

2. To compare the efficiency of alternativemethod.

3. To determine with the help of man machinechart the number of machine an operatorcan run.

4. To set the time standard for carrying out thework.

5. As a basis for realistic and fair incentivescheme.

14-03-2014 00:44:00

Time Study

• Time study is a work measurement techniquefor recording the times performing a certainspecific job or its elements carried out underspecified conditions, and for analyzing thedata so as to obtain the time necessary for anoperator to carry it out at a defined rate ofperformance.

14-03-2014 00:44:00

Time Study Equipments

1. Stop Watch A fly back decimal- minutestopwatch is most commonly used stop watch.

2. The Study Board Time study board is flat board ,of plywood or plastic sheet, having fittings tohold stop watch and time study forms.

3. Time Study Forms Time study forms are printedforms of standard size constant information likeproduct name, operation number, description ofoperation, time study observer’s name etc arepreprinted on the top of the sheet-

14-03-2014 00:44:00

Time Study Form

14-03-2014 00:44:01

Time Study Form

Product-------- Time Study -------------

Operation No----------- Observer

Description of Operation -------------------- Date-------------------

No. of Cycles 5(say)

Standard time found------

Element Description Observed time Average

observed Time

Rating

factor

Normal

Time

All Std.

Time

1 2 3 4 5

Procedure for Collecting Time Study Data • The following are the procedural steps in stop Watch time study:-

1. Identify the operation to be studied

2. Obtain the improved procedure from method study departments.

3. Collect and check necessary equipment

4. Select the worker to be observed for Time Study

5. Explain the worker the objective of Time Study

6. Explain the worker the improved procedure.

7. Break the operation into small elements.

8. Determine the number of observations to be timed for each element.

9. Conduct the observation and record them on time study form

10. Rate also the performance of the worker during step.

11. Calculate normal time from observed time by using performance rating factor

Observed time X Rating factor

Normal time=________________________________

100

13. Add process allowance, rest and personal allowance and special allowances to normal time in order to obtain standard time.

14-03-2014 00:44:01

Conversion of observed Time to Standard Time

14-03-2014 00:44:01

Observed Time

Normal Time

Standard Time

Apply Performance Rating Factor

Add allowances like personal allowance, process allowance

Advantages of Time Study

1. Standard labour cost per unit of product can be calculated.

2. Comparisons of actual and standard production.

3. Enable further improvement in work methods, training necessity and better workplace layout.

14-03-2014 00:44:01

Limitations of Time Study

1. Not suitable for non- repetitive jobs.

2. Not suitable for highly automated work place

3.May affect operator’s morale if outputstandard is not attained.

4. While rating a worker error may come due tosubjectivity involved in it.

14-03-2014 00:44:01

14-03-2014 00:44:01

Feel Free to ask your queries on mayankkumarpandey@gmail.com