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VIII SEMESTER
INDUSTRIAL MANAGEMENT, ELECTRICAL ESTIMATION &
ECONOMICS
Subject Code : 06EE81 IA Marks : 25
No. of Lecture Hrs. /
Week
: 04 Exam
Hours
: 03
Total No. of Lecture
Hrs.
: 52 Exam
Marks
: 100
PART - A
UNIT - 1
PERSONAL MANAGEMENT: Recruitment and selection, training of personal employer and
employee relationship, causes andsettlement of disputes. 5 Hours
UNIT - 2
PRODUCTION MANAGEMENT: Plant location, plant lay-out, CPM and PERT strategies, line
balancing, automation, statistical qualitycontrol, control chart, motion study. 7 Hours
UNIT 3
Economics of power factor improvement, Definitionof power factor, Factorsaff ecting power f actor,Disadvantages of low power factor, Causesof low power factor, Advantagesof high power f actor,
Avoidances of low power factor, Methodsof improving power factor, Relative merits and demerits
of static and synchronous condensers, Economics of power f actor improvement, Advantages of
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INDEX
Sl.no Contents Page no
UNIT-1
x PERSONAL MANAGEMENT: Recruitment andselection training of personal employer
5-18 x employee relationship causes
x settlement of disputes
UNIT - 2
x PRODUCTION MANAGEMENT : Plant location
19-50
x plant lay-out, CPM and PERT strategies
x line balancing, automation, statistical qualitycontrol
x control chart, motion study
UNIT 3
x Economics of power factor improvement
51-59
x Definition of power factor, Factors aff ecting power
factor, Disadvantages of low power f actor
x Causes of low power factor, Advantagesof high power
factor, Avoidances of low power f actor
x Methods of improving power factor, Relative merits
and demerits of static and synchronous condensers,
Economics of power factor improvement
x Advantages of static condensers, Advantages and
disadvantages of synchronous condenser, workedexamples.
UNIT - 4 x TARIFFS : Aim and ob jectives of Tariff s 60-74
x factors governing the Tariffs, componentsof Tariff s
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x Choiceof electrical power supply, Workedexamples
UNIT 5 x Choiceof plants and economic selection
75-86 x Factors to be considered in selecting equipment x Methodsof selection, Worked examples.
UNIT 6 x INTERIOR WIRING SYSTEM : Wiring system 87-101
x earthing, and estimation of wiringinstallation
UNIT - 7
x POWER INSTALLATION: Load calculation
87-101 x wire size selection, wiring materials for power circuits
estimate for motor installation
x pumpset, workshop, theater etc.,
UNIT - 8
x Depreciation and valuation of machinery
102-123 x Inventory, Economic orderquantity
x B reak-even analysis.
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UNIT - 1
PERSONAL MANAGEMENT
Recruitment and selection, Trainingof personal employer and employee relationship Causes andsettlement of disputes.
The aims of training a supervisor are:
x To develop leadership qualities in him.
x To develop in him the necessaryskill so that, the same may beimparted to theworkers
x To impart knowledge about managementprinciples to effectivelyinteract with the workers.
x To develop the skills to improve upon theexistingmethodof work.x To provide him adequate knowledge about labour problems and legislations.
x To make him qualifyfor promotions.
x To develop in him the ability to plan,coordinate, control and build up an efficient team.
x To train him about safetyrules and practices to be followed in his section.
Methods of training supervisors (lowerlevel managementtraining)
The various methodsof training supervisors are:
Induction and orientation
Lecture method
Conferences
Written instructional methodand
Training withinthe industry (TWI)
Induction and orientation: This training is given to newemployees appointed as supervisor.
x To familiarize him with the organization he has joined, its history its structure and the
products that arebeing manuf actured.
x To give inf ormation about theauthorities and responsibilitiesassigned to him.
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x To familiarizethe proper useof tools and equipments and
x To explain the personal policies like disciplinary rules, conditions of employment etc.
Lecture method : Lectures are arrangedby experts within or outside the company aboutthe important topics such as techniques and responsibilities of shop management, company
policies, production planning methods, methods of training workers, job evaluation
techniques, merit rating, safety policies, time and motion study etc. The experts usemodern
methodsof teaching using audio- visual aids such as OHP, slides, technical films, LCD
pro jection etc. so that thelearning process becomeseasier.
Conferences: During a conf erence, a homogeneous groupof people join together todiscuss
about particular sub ject matterof their choice, suchas how tocontrol absenteeism, how to
reduce scrapetc. A conference helps in exchanging ideas and experience of diff erent people.
As arrived at. Participation in the conf erences, changes their attitudes, analytical and
questioning abilities aredeveloped and finally helps in solving a particular problem.
Written instruction method: In this method, written instructions are given to the super
visors on standardpractices to be followed for immediate or future use as to how various
jobs have to be perf ormed, which formsa permanentrecord.
Training within the industry (TWI): This method of training is used to impart civilian
supervisory skills and is arranged on thebasis of group conference attendedby supervisors
on a part time basis. The super visors meet informally in a session and discuss about the
basic principles of their own jobs and learn from each otherexperience. The TWI method
imparts training to the supervisors which gives them the ability to give clear instructions to the workers to develop leadership qualities, the ability to analyze and handle labour
problems, to improve the skills of applying new improved methodsof doing the job and how
to prevent accidents create safety conditions and awareness among the workers aboutthe
hazards of accidents.
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Training of executives (managerial training)
The training of executives is an attempt toimprove their managerial skills througha planned
and deliberate process, which develops certain attitudes, skills and knowledge for the
eff icient running and to increase the eff ectiveness of the organization. The efficiency of
the organization directly depends on howwell the managers aretrained to plan and execute
the plans eff ectively.
The basic aims of training the executives are:
i.
ii.iii.
iv.
v.
The self development of the executives so that, they acquire the personnel drive, initiative,
inner motivation and abilities to run the organization eff ectively.
For improving the aptitude of the executives. For educating them to develop a broader outlook about the people working with them, to
improve their capacityof judgment and decision making abilities.
To provide an effective organizational climate and
To effectively use the human resources and to exploit their talents and potentials fully so
that, they becomeeligible forhigher positions.
Methods of training executives
The methodsof training the executives maybe broadly divided into two types:
i)
ii)
On-the- job training and
Off -the- job training
i) On-the-job training method: The various methods of on the job training of the
executives
enlargement
are (a) understudies (b) membership of the committee (c) job rotation (d) job
and job enrichment (e) management byob jectives.
a. Understudies: In this method, the trainee is appointed as an assistant to some senior
manager. The trainee, while working as an assistant learns the ways of working from his
superior under whom heis appointed. This methodis used for the training of new andyoung
managersfor general managementpositions.
b. Membership of the committee: In this method of training, the trainee is appointed as a
member of a committee consisting of the executives of various departments. The trainee
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develops the required skills for solving problems in a group discussion with executives,who
have lot of experience in solving suchproblems.
c. Job rotation: In this method, the trainee is shif ted from one job to another periodically, this
exposes theemployee to diff erent type of experiences and broadenshis knowledge and skills
about diff erent types of jobs he may berequired to plan and execute.
d. Job enlargement and job enrichment : Job enlargement is a horizontal expansion of the job.
New tasks will be added to the already existing job without increasing the level at
responsibility. Job enrichment is the vertical expansion of the job. This increases the level of
the responsibilityof the executives.
e. Management by objectives (MBO): MBO is a processof setting up of the ob jectives jointly
with the trainee and his superior. This type of goal setting f acilitates the learning through
interaction between thelearner and his superior. II . Off-the-job training: The various methodsof off -the- job training are (a) lecture method(b)
case study method(c) business games(d) role playing and(e) conf erences.
a. Lecture method: as explained in previous section
Case study method: In this methodof training, a real life or hypothetical problem is given
to a small of trainees for analyzing theproblem and tofind out thesolution throughproblem
analysis by discussion and participation. This method is best suited for a small group of
twenty or less trainees. The trainees mainly learn from their mutual discussion and the trainer
plays a passive role. The trainer assists the group through theuse of questions, directs the
guides the line of thinking about the problem. He helps in sharpening their analytical abilityto
enlarge their capacity to take a broader look at the problem in arriving at a solution. The
trainee analyze the problem objectivelydiscuss aboutalternate solutions, and ultimately come
out with the best solution. This method of training helps the trainees to develop analytical
thinking, to get problem solving ability,to broaden their outlook and to look at the problem
from diff erent angles and to develop decision making skills, verbal
inter-personal relation skills.
communication skills and
b. Business games: In this method, the trainees are formed into several groups. The trainees in
each group may be from diff erent departments of the same organization or from diff erent
organizations. Each group discusses about sub ject like production planning, research and
development, cost control, inventory control, sales f orecasting etc. The managementprovides
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with the relevant data pertaining to thesub ject of discussion and the trainer provides them with
a simulated data regarding results arising out of decisions made by them, whichin turn leads to
fresh decisions at the end of the business game. This method of training it develops the
decision making abilities, teamwork and develops interaction betweendiff erent groups. The
trainees develop the talents to deal with deal with the real life situations. They learn from the
experience of othersabilities toanticipate problems in advance and tosolve them.
c. Role playing; this type of training helps the trainees to develop leadership qualities and
human relations. The trainers are given either oral or written descriptions of a situation and
the role they are required to play in the situation. Two or more trainees are assigned certain
roles to be played. The trainees are required to play their role spontaneously before theother
participants, who watch, analyze, and criticize thebehavior of the role players. This type of
training is called as f ish bowl exercise because, the participants are in the centerof the areaand the others areobserving their perf ormance.
The typical examples of role playing are: manager conduction an interview, a salesman
promoting sales, an engineer explaining a new methodof working etc. The advantageof this
methodof training are: (i) it generatesenthusiasm and interaction amongparticipants (ii) the
trainees get a chance to observe the performancesof others (iii) it develops humanrelations
skills and brings aboutattitudinal change.
d. Conference: explained in previous section
Employer and employee relationship
The concept of industrial relations means the relationship between the employees and the
managementin the day-to-day working of the industry. The major parties in the industrial
relations are: the employees, employee representatives, employers, associations of employers,
the government, courts and tribunals. The best way of increasing the productivity of an
industry is by maintaining good relations between the employers and the employees.
Industrial relations exist in various stages such as (i) between government andindustry (ii)
between the management and the managers (iii) between the managers and workers. The
government exerts its influence on industrialrelations throughits labour policy, implementing
labour laws, the processof conciliation and ad judication by playing the role of mediator. It
tries to regulate the activities and behavior of both employees organizations and employers
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organizations. The relationship between theemployers i.e. managers and theemployees i.e
the workers arevital forthe successfulrunning of an industry.
Employer is a crucial factor in industrial relations. He employs the worker, pays the wages
and various allowances, and regulates the working relations through various rules and regulations and by enf orcing labour laws. He expects the workers to follow the rules,
regulations and thelaws. He further expects them towork hard and putin their best effortsto
maximize production.
very important.
For this, maintaining good working relations with the employees in
In the early days, the relationship between theemployer and the employee was governedby
the assumption that the employers were like kings and were free to offer any terms of
employment and treat their employees in any way they wanted. There were few laws andprotections available for the employees that would practices and demanded that employees
are also protectedby various labour laws of the government. There has been a phenomenal
growth in employment, wages, benef its, working conditions, statusof the workers andvarious
facilities areprovided to them.
Objectives of good industrial relations
The main ob jectives of good industrialrelations are:
i)
ii)
iii)
iv)
To maintain congenial relations betweenemployees and theemployer.
To promote anddevelop congenial labour managementrelations.
To enhance theeconomic statusof the workerby improving wagesand otherbenef its.
To minimize industrial conflictsand toregulate production.
v) To provide an opportunity to the workers to have a say in the management and decision
vi)
vii)
viii)
management.
To solve the problems of the workers throughmutual negotiations and consultation with the
management. To encourage thedevelop tradeunions in order toimprove the workers strength.
To maintain democratic approachin solving the problems of the workers.
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Code of industrial relations
The management and the tradeunions f ormulate a code of industrial relations in a numberof
industries. The codesof industrialrelations are:
i) ii)
iii)
iv)
v)
The managementshould have a positive attitude towards trade unions and employees.The tradeunions and employees must have a positive attitude towards themanagements.
The attitude of the employees towards the trade unions must bepositive.
Managementshould not influence theemployees regarding joining or withdrawing fromtrade
unions.
The managementshould not encourage the workers to formrival unions.
vi) All the collective bargaining agreements should be implemented in good faith as early as
possible.
vii) The employees and the trade unions should co-operate in implementing the company
viii)
ix)
strategies.
All the employees must attend the training programs when they are asked to doso.
All employees must accept the transfer orders made by themanagement.
x) Employees and trade unions must be allowed to participate in decision making and
xi)
implementation at diff erent levels of the company.
The employees should go on strike only as a last resort and must doso by giving at least one
weeks prior notice. xii) The management should use the lock-out technique only as a last resort and must give a
notice to the tradeunions at least one weekin advance.
Industrial peace
Permanent industrial peace is required for the growthof the industry, which can be ensured
through thefollowingmeasures.
There must be aneffective machineryto preventstrikes and their settlement.
The government mustbe vested with the authority to settle disputes between
and tradeunions.
management
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There must be provision to form bipartite and tripartite committees to draftpersonal policies,
codeof conduct, codeof disciplineetc. for the employees.
There must be provision to form various committees to implement and evaluate the collective
bargaining agreements, court orders and judgments, awards of voluntaryarbitration etc.
Industrial disputes
Disputes are commonin industries. They manif est in the form of strikes, bundhs and lock-
outs. The consequencesof disputes are loss of production, loss of profit, loss of market and
even theclosure of the plant.
According to the Industrial Disputes Act 1947,
industrial dispute means, any dispute or diff erence between employers and employees, or between employers and workmen, or
between workmen and workmen, which is connected with the employment or non-
employment or terms of employment or with the conditions of labour of any person . In
practice, a dispute mainly relates to the diff erence betweenemployers and employees.
Causes of disputes
The causes of industrial disputes are many andvaried.The ma jor causes are:
i)
ii)
iii)
iv)
v)
Wage demands
Union rivalry
Politicalinterf erence
Unfair labour practices and
Multiplicityof labour laws.
i) Wage demands: One of the mostimportant causes for industrial disputes is the demandby
the employees for morewages. High inflation whichincreases the costof living results in the never ending demandby the tradeunions for the increase in the salaries, bonus, incentivesand
otherallowancesof the employees.
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Normally, the tradeunions and the managementwith have a wage agreementvalid for three
years. Each new agreementis the outcomeof a prolonged battle between themanagement
and trade unions, of ten resulting in strikes and lockouts. Any agreement reached in one
company will inspire trade unions in other companies nearby to go on strike for demanding
morewages.
ii) Union rivalry : In most of the organizations, there are multiple unions, which lead to inter-
union rivalries. During the settlement of disputes, if the union agrees for the settlement,
another union will opposeit. This results in never ending disputes in the industry. Multiplicity
of unions results in peculiar problems to the managers. One such problem is the authenticity
of memberships. Unions declare the numberof membersin their unions and
when ultimately the added up memberswill be more than theactual numberof employees.
Another problem will be the selection of a bargainer in the process of settlement Union
rivalry often may lead to large scale violencealso.
iii) Political interference : Major trade unions are affiliated to politicalparties to derive strength
from their political clout. When theunions get politicized, theideological issues divide and
f ragment unions on party lines. When unions multiply because of diff erent political
affiliation inter union rivalry erupts andsettlements become difficult. Anotherproblem is,even when thesettlement is f avorable to all the workers, certain unions refuse tosign the
agreement becauseof their political ideologies, thus keeping the dispute alive. The various
trade unions supportedby ma jor political parties in our country are: CITU affiliated tothe Communist Party of India, INTUC affiliated to the congress partyof India. Every political party somehow manages to engineer strikes, gheraos and bundhs to
demonstratetheir political clout.Invariably, the political party whichis in power favours the
union which is affiliated to it.
disputes.
Politicization of trade unions results in endless industrial
iv) Unfair labour practices: Most of the disputes in the industries is becauseof the attitude of
the management towards the employees. The following are the unfair, labour practices
adopted bymanagements.
a) The managementgenerally do not want to talk to the employees or trade unions about the
disputes, even when they arewilling to talk, whichenrages theworkers.
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b) The management does not want torecognize a particular trade union and createsrivalry by
supporting other union which is likely to fall in line withthe policies of the management.
c) During negotiations for the settlement of a dispute, the representatives of the employers always take the side of the management; createtensions which ultimatelylead to strikes and
lockouts.
d) The managements unwillingness to promote workers with merit but always help yes
masters tohigher positions.
e) The managementalways trying torestrain workers from f orming trade unions with threatsof
dismissal or lockouts,if tradeunions are formed.
f) The managements attitude to victimize the workers evenfor minor mistakes in their work
or misconduct and awarding disproportionate punishment.
g) Transferring workers fromone place to the other, even when it is not required.
h) When the workers are on strike, the managementinsisting on each worker tosign a good
conduct bond asa precondition to allow him to resumework.
i) Indulging in acts of force and violence against workers and failure to honour thesettlement
or agreement.
v) Multiplicity of labour laws: In almost all the countries in the world, labour laws have been
enacted to create conditions for the protection of the labour from unfair employment
practices by the managements and to provide a legal framework to ensure the safetyand
securityof the workers. Labour legislation is regarded as the mostdynamic institution.
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In our country, there are about 180 acts, both central and state, earning our country the
dubious distinction of being one of the few highly labour legislated countries in the world.
The result of so many acts is endless confusion, industrialdisharmony, loss of production
and exploitation of labour by the management and the management by thelabour.
Judiciaryalso has notplayed a positive role in solving theproblems of the labour. By giving
conf licting decisions, the judiciary has aggravated indiscipline among workers. The
judiciaryhas gone to the extentof saying that even an illegal strike is justif ied . The result
is that, the indiscipline in the industry has spread like wild fire and very badly aff ected
productivityand national growth.
Settlement of disputes:
The important methodsof resolving disputes are:
i)
ii)
iii)
iv)
Collectivebargaining
Conciliation
Adjudicationand
Voluntary arbitration
i) Collective bargaining: Collective bargaining is a process of discussion and negotiation
between twoparties to resolve a dispute on mutual consent. It is a collective bargaining
between employers and a group of employees, who agree upon the conditions of work.
Collective bargaining f ormulates the terms and conditions under which labour and
management may cooperate and work together over a certain period. In collective
bargaining, the employer does not deal with the workers directly butdeals with unions of
workers.
The collective bargaining processinvolves six ma jor steps: (a) preparation of negotiations
(b) identifying bargaining issues (c) negotiation (d) reaching the agreement andratif icationand (d) administration of the agreement.
a) Preparations for negotiations: Careful advance preparations are required from bothsides
becauseof the complexity of the issues and wide range of topics to be discussed during
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negotiations. Each side should presentits case in an orderly way with facts and f igures for
discussion during negotiation.
b) Identifying bargaining issues: Normally, the major issues discussed in collective
bargaining fall under thefollowing categories:
i. Wage related issues which include basic wage rates, wage diff erentials, overtime rates,
allowancesetc.
ii. Supplementary economic benef its which include issues such as pension plains, paid
vacations, health issues etc.
iii. Institutional issues such as rights and duties of the employees, trade unions and quality of
life programs.
iv. Administrativeissues such as seniority, discipline,health and safetyof the employees etc.
c) Negotiation: During negotiation each side will presentits initial demands. The negotiation
goes on for days till the final agreement is reached. Negotiation is an art. Successful
negotiations depend on the knowledge and skill of the negotiators. A good negotiator must
know the technique of listening skills and theability tocommunicate clearly.
d) Reaching the agreement andratif ication: After the initialagreement, the twosides returnto
their respective groups to find out whether the agreement is acceptable to them. The
negotiating team explains the points of agreement and places the agreement bef ore the
membersfor a vote. If voted, this agreementis formalized into a contract. The contracthas
to be clear and precise and thereshould not be any ambiguity in the interpretation of the
points in the agreement. The contract is signed by both parties af ter ratif ication by the
membersof both thegroups.
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e) Administration of the agreement: Signing the agreementis not the end of collective
bargaining, rather thebeginning of the process. The agreement mustbe implemented in
the letter and spirit o the provisions of the agreement. Violation of any provision leads to
disputes again. The managementis primarily responsible for implementing the agreement.
H.R.D managerplays a crucial role in the day-to-day administration of the contract. He or
she works with the management and the employees to establish a good working
relationship
spirit.
between them to implement the provisions of the agreement in letter and
ii) Conciliation: Conciliation is a processby which representatives of both themanagement
and workers are brought together beforea third party with the purposeof persuading them
to arrive at an agreement by mutual discussion between them. As per the Industrial
Disputes Act, 1947 the governmentis authorized to appoint conciliators to mediate andpromote thesettlement of industrial disputes. A conciliator appointed by the government
tries to bring about an agreement between the twodisputed parties, but ultimately the final
decision rests with the parties themselves. The conciliator can only offer a solution
acceptable to both the parties. The parties may accepthis recommending or re ject it all
together.
iii) Adjudication: If conciliation f ails, the dispute may be settled by a compulsory
ad judication which the parties have no otherchoice than to acceptit. Adjudicationmeansa
mandatory settlement of industrial disputes by labour courts, industrial tribunals or
national tribunals under a industrial disputes act. Once a dispute is ref erred for
ad judication, the awardof settlement by a labour court or tribunal is binding on both the
parties. The system of ad judication is the mostsignificantmethodof resolving disputes but
is oftencriticized forthe delay in dissolvingthe conf licts.
iv) Voluntary arbitration : V oluntary arbitration is one of the most recognized and
democratic ways of settling industrialdisputes. It is the best methodof resolving industrial
disputes when conciliation methodfails. In this method, a neutral third party studies the dispute, listens to both the parties, gathers the inf ormation and then makes the
recommendations that are binding on both the parties. In this type of settlement, the
agreement must bein writing anda reference to voluntary arbitration must be madebefore
the dispute is referred tolabour court or a tribunal. The arbitrators shall investigate the
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dispute and submit the award of arbitration to the government with the signature of the
arbitrators.
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UNIT 2
PRODUCTION MANAGEMENT
Plant location,plant lay-out CPM and PERT strategies line balancing, automation Statistical quality control, control chart, motion study.
Introduction:
Among all the functional areas of management, production is very crucial in any industrial
organization. Production is the process by which, raw materials and other inputs are
convertedinto useful finished products. Manuf acturing is another word synonymous with
the production.
Manuf acturing normally refers to a process of producing only tangible goods, where as
production includes the creation of tangible goods aswell as intangible services.
Production management refers to the application of managementprinciples to the production
f unction in a f actory. It involves the application of planning, organizing, directing and
controlling of the production process. The standardof living of the people in any nation
depends on the quality of the goods produced. Production creates national wealth. High
productivity is the backboneof a nations economic progress. The production management covers such activities as the location of the plant, acquisition of the land, plant layout,
construction of building, procuring and installing of machinery, purchasing and storing of
materials and converting them into salable products.
Plant location
The selection of a place for the location of a plant is one of the important problems faced by
an entrepreneur while launching a new enterprise. The important considerations in the
location of a plant are:
i)
ii)
iii)
iv)
Easy and regular supply of raw materials
Availability of skilled labour force
Sufficientspacefor efficient plant layout
Proper utilizationof production capacity
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v)
vi)
Reduced cost of production and
Feasibilityof marketing the products
Even though the location of the plant itself can not guarantee the success of the plant, however an ideal location helps in the smooth and eff icient working of the plant. A bad location of plant forms a severe handicap and ultimately may lead to bankruptcy. Therefore,utmost care must be takenin selecting a proper location of the plant. If the mistake is done inlocating the plant, it becomesextremely difficultand costly to relocate it.
Need for plant location:
The need for thelocation of a plant becomes necessary under thefollowing conditions:-
i)
ii)
iii)
iv)
v)
When thebusiness has to be startednewly
When the existing business has outgrown its existing facilities andexpansion is not possible
in the presentlocation.
When thevolume of business increases, it may be necessary to start new branches atdiff erent
places.
When thelease of the land expires and theland lord does not agree to renew thelease.
Other social or economic reasonssuch as inadequate labour supply, shifting of the market,
etc. The selection of the location of the plant must be made afterconsidering all the economic
factors. However, itmay not be possible to find a particular location which satisfies all the
requirements to start an industry. The guiding principle in selecting a plant ultimately mustbe
made for a place where the costof the raw material, its fabrication, costof production and
marketing is minimum, so that the product is highly competitive with similar products
produced by othercompanies.
Web er s theory of plant location:
According to Albert Webers theory of plant location, the locational f actors are broadly
divided into two categories: (i) primary factors(ii) secondary f actors.
Materials andlabour constitute the primary factors which influence thedispersal of industries
over diff erent regions. Industrial units are materials-oriented, depending on the availability of
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raw materials and the costof transportation. They become marketoriented, depending on the
cost of transportation of the final products. They becomelabour-oriented, depending on the
availabilityof skilledand cheaplabour.
Bank credit, insurance, communication, cost of land and rentconstitute the secondaryf actors of location. Some of these f actors, which attracts the location of industries in a place are
called agglomerating factors and someof these which contribute to the moving away of the
industries are called as deglomerating f actor. Though, Weber told his theory in1909, it is
relevant even today.
Errors in location:
Some of the common errorsin the selection of a site for plant location are:
1. Absence of properinvestigation and consideration of various factorsinvolved.
2. Personal likes and dislikes of owners or executives in taking into consideration the impartially
established f acts.
3. The reluctance of the executives to move from traditional home ground to better newlocation.
4. Trying to move to thealready congested orover industrializedareas.
5. Trying to acquire an existing structurewhich is not located in a proper area andwhich is not
designed for efficient production.
6. Choice of backward area towhich key administrative and technical personnel are notwillingto move andtrying to seek employment elsewhere.
In order to see thata wrong site is not located for the plant, a selection committee comprising
people with knowledge of facts and factors, who are in responsible position in the operation
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of the plant, has to beconstitute. The committee must tourplaces, select two or threelocations
and ultimately select the best one for thelocation of the plant.
Steps in plant location
The entrepreneur has tofollow a systematic procedure, step by step in selecting a suitable sitefor plant location.The various steps to befollowedare:
x Deciding ondomestic or international location
x Selectionof the region
x Selectionof the localityand
x Selectionof the exactsite
x Deciding on demand or international location: Due to liberalization, the business is
internationalized. The first step in the location of the plant is to decide whether, the plant hasto be located domestically or internationally.If the management decides on f oreign location,
the next logical step would be to decide upon a particular country. In recent times, countries
are vying with each other to attract f oreign investments. The choice of a particular country
mainly depends on the political stability, export and import regulations, currency and
exchange rates, culturaland economic conditions, availabilityof natural resources, etc.
x Selection of a region: The selection of a particular region in a country is the second step to
be followed in the location of a plant. The following factors influence the selection of a
region
.
i) Availability of raw material: The plant must be located in place where thesupply of raw
materials is plenty and available at reasonable cost. Nearness to raw materials has the
advantagesof reduced costof transportation, regular and propersupply of raw materials and
savings in the costof storageof materials.
ii) Nearness to the market: The goods producedby the plant have to besold in the marketand
hence it is better that the marketis also nearby. Nearness to the market has the advantagesof
transporting the finished goods atlow cost, ad justing the production programme according to
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the requirements of the consumers, ability to render prompt service to the consumers,
providing af ter-sales services,executing replacement orderswithout delay.
iii) Availability of power: Power is an absolute requirement for production in any industry. Coal,electricity, oil and natural gas are the sourcesof power. Industries requiring coal such as iron
and steel industries have to be located near coal fields. Theref ore, most of the modern
industries rely on electricity as the sourceof power. Hence such industries have to be setup
where electrical poweris available in plenty at lower cost.
iv) Transport facilities: T ransport facilities arerequired for bringing raw materials and workers
to the factory andfor carryingthe finishedproducts from factory to themarket. A place whichis well connectedby rail, road and seais ideal for plant location.
v) Suitability of climate: There are certain industries which require particular climatic
conditions becauseof the typeof production and they have tobe located in regions of such
climate. For Ex: cotton textiles and jute industries requires humid climatic conditions. Even
though, artif icially, any climatic conditions can be created, it is very costly. It is always
advisable for an entrepreneur tolocate his industry where suitable natural climatic conditionsexist.The adverse climatic conditions affect labour efficiencyalso.
vi) Incentive and policies of the government: To expand the industrial base and to provide
employment to the people, many statesoffer incentives suchas land at cheaprate, investment
subsides and tax exemptions to new industries, which is very lucrative to start medium-sized
plants. The policies of the governmentsuch as licensing policy, f reight rate policy etc. also
influence the location of plants in the region.
x Selection of locality: Selection of a particular localityis the third step in plant location. The
various factorsthat influence the selection of a locality forplant location are:
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i) Availability of labour: Labour is an important factor in the production of goods. Availability
of enough workers at reasonable wages is very essential for the successf ul working of an
industry. Unskilledlabour can be foundin any locality. It is the availability of skilled labour
which influences the location of the plant. However, theattitude of workers, union activities
and industrial disputes may drive away the existing f actories and discourage new
entrepreneurs fromlocating their plants in such localities.
ii) Civic amenities for workers: The workers must be provided with not only good working
conditions inside the factory, but also other facilities suchas clubs, theatres, parks andgood
schools for their children mustbe available forthe employees, outside the industry.
iii) Availability of water and fire fighting facilities: Some industries require plenty of water for
their working. Hence, such industries must be located where water is available in plenty.
Water may be obtained from the local authority from the canal, from a river or lake or by
sinking borewells. Industrial units are exposed tofire hazards. Hence, adequatefire f ighting
facilitiesmust beavailable.
iv) Finance and research facilities: In the developed countries, the wealth is uniformly distributed but in developing countries, capital is not available uniformly throughout the
country. Hence in such countries, places where f acilities for raising capital are available,
attract new industries.
During the courseof working, a factory may encountera numberof problems. There mustbe
facilities toexamine and find solutions for such problems. If the problems. If the factoryhas
to be dynamic, it should always adopt new technologies and hence research facilities alsomust beavailable in the locality.
x Selection of the size: The selection of an exact site in a chosen locality is inf luenced by the
following considerations.
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x Soil, size and topography : The quality of the soil does notinfluence the selection of size for
plant location, if the factoryis producing engineering goods. However, fertilesoil in the size
is necessary for agro basedindustries. The size of the site is also important becauseit should
not only accommodate theexisting manuf acturing facilities,but thereshould also be scopefor
future expansion.
Proper considerations must also be given to the topographyof the site. A hilly, rocky and
roughterrain is unsuitable for plant location because, lot of money has to be spent tolevel the
site.
Plant Layout
A plant layout is the arrangement of machinery equipments and other industrial f acilities
when a new plant is erected. The efficiency of the production flow mainly depends on the
proper layout of the plant. In the plant layout, importance is given to the placement of
machinery at diff erent places, the location of stores, inspection cabins, tool rooms, and
maintenance wings, plating shops, heat treatmentchambers, toilets, canteens, trolleys, cranes
and otherequipments. However, there is no set patternof layout for all plants. It differs from
plant to plant, from location to location and fromindustry to industry. The best layout is the
one in which the flow of the raw material is quick and the amountof handling is less in
processing the product,
product.
from the receipt of raw materials to the f ormation of the finished
Objectives of a good layout
A good layout of a plant must serve thefollowingob jectives.
1. It should provide enoughcapacity for production.
2. It should reducematerial handling costs.
3. There should not be anycongestion for the movementof materials or workers.
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4. There should not be any hazards to theworkers.
5. The workers should be usedefficientlyand their morale has to beincreased.
6. Utilize availablespaceefficientlyand eff ectively.
7. Provide space for proper supervision.
8. Conductiveatmosphere for safety and health of the workers.
9. provision for the improvement of productivityand
10. Allowance for easymaintenance.
Factors influencing plant layout
The types of layouts are diff erent for diff erent types of plants. The selection of a particularlayout depends onseveral factors.They are:
i) Materials: In the layout there mustbe provision for the storage and proper movementof the
raw materials in the plant until they are convertedinto finished products. There must be proper
storage roomsfor materials and materials handling equipments such as cranes, trolleys, pipe
lines etc. The typeof storagemainlydepends on the typeof material stored i.e. solid or liquid,
light or heavy, small or large. Flow charts have to be drawn tovisualize the pathof materials
flow during various stages of production and care must be taken to see that there are no
crossover, long distances and back tracking. The best pathis thus determined and accordingly
the layout is planned.
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ii) Product: A plant layout must express its product. Any layout of a plant is drawn with the
ultimate purposeof producing a product. The type of product, whether it is solid or liquid,light
or heavy, big or small dictates the layout of the plant. The requirements of a layout meant for a
heavy product is diff erent from therequirements of a layout for a light product. The demandfor
the sales of the product also influences the type of layout. The sales demandfor a productalso
inf luences the type of layout. The sales demand for a product determines the volume of
production and therefore the quality and size of the equipment, the areaof the storagespace
and otherfacilities, whichin turndetermines the typeof layout.
iii) Workers: The type of workers, their positions and their requirements must be taken into
consideration in designing the layout of a plant. If women workers are employed, their
requirements must be kept in mind, whether the workers remain stationary or moving also
influence the layout. Employees facilities such as health and related services, locker rooms,
public facilitiesalso influence the layout.
iv) Machinery: The size and typeof machinery used in the plant depends on the typeof product,
the volume of its production, the typeof process and themanagements policies, whichin turn
influences the plant layout. Production is the combination and manipulation of men, materials
and machines. T hese elements may be combined in various ratios and in various ways during
the course of production activity. Theref ore it is necessary to draw the layout taking into
consideration the stationary or fixed positions of these elements.
v) Type of industry: The type of industry and the methodmanuf acturing significantlyinfluence
the plant layout. All types of industries may be classified basically into two types (a)
intermittent industries and (b) continuous industries. Intermittent industries manuf acture
diff erent components on diff erent machines and assemble them to get the end products.
Continuous industries produce one or two productsof standardized nature. Hence, the layout of
the plant designer must take the methodof manufacture processinto consideration during the
processof planning a layout.
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vi) Location: The site selected for the location of the plant influences its layout in several ways.
The size and the terrain of the site determine the typeof building and modeof transportation
which inf luences the layout. The mode of transportation may be rail roads or by trucks by
which the raw materials and finished products aretransported. The plant layout must also take
into consideration the fuel requirements and its transportation. The type of layout plan also
depends on whether theplant is located in a village or in urban area. If it is in a village, the
expansion may be aff ected by adding one more wing to the existing single-storeys to the
construction. If the plant is in urban area, the expansion may be aff ected by adding more
storeys to the existing buildings. Thus the plant layout must also take into consideration any
demand for futureexpansion.
vii) Managerial policies: Any plant layout is basically decided by the policies of the top
management and the layout engineer must have a clear understanding of these policies and
accordingly design the plant layout. The various management policies which inf luence the
plant layout are
a. The volume of production and provision forexpansion.
b. The extentof automation
c. Desire forprompt andrapid deliveryof goods toconsumers.
d. Purchasing policies.
e. Personnel policies.
Principles of layout:
While designing a particular layout of a plant, the engineer should be guided by certain
principles.They are:
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x The principle of minimum travel: The movement of men and material must be minimum
betweenvarious operations of production to avoid waste of man-hours and tominimize thecost
of materials handling.
x Principle of sequence: The operations on various machines should be arrangedin a sequential
order so that there is continuity in the process of producing the final product from the raw
material.
x Principle of usage: The entire spaceof the site must be effectively utilized, especially whenthe
plant is located in urban areas where theland is costly.
x Principles of compactness: There should be a harmonious fusion of all the relevant factors so
that thefinal layout looks well integrated and compact.
x Principles of safety and satisfaction : The plant layout should contain all built in provision for
the safetyof the workers andprovide comfort andconvenience to them so thatthey feel satisf ied.
x Principle of flexibility: The plant layout should have provision for any changes with minimum
effort andcost.
x Principle of minimum investment : The layout should be such that thecapital investment must
be minimum by an intensive use of available f acilities but not sacrificing the necessary requirements.
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Importance of plant layout:
An ideally laid plant layout reduces manuf acturing costs and helps in smooth and eff icient
running of the plant. Some of the advantagesof a good plant layout are:
x The materials handling cost is reducedby avoiding long distance movements, therebyreducingthe manuf acturing costs.
x The entire site area is effectivelyused for the location of equipments so that, the labour force is
effectivelyused.
x Results in promptexecution of orders andeliminates delays, which helps in the satisf action of
consumers.
x Provides for inspection at diff erent stages og manufacture and ensure quality control of the
productproduced.
x Investment
location.
on equipment is minimized by proper balance in machine procurement and
x The bottlenecks due to slow production,. Inadequate use of space, machines capacities,
accidents and wastageof floor area areavoided.
x Helps in the production of right typeof product at theright time and atreasonable cost.
x Provides for better supervision of the workersby providing a full view of the entire department
for the supervisor.
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x Helps in the effective utilizationof labour by paying ways on hourlybasis.
x Improves employees morale by providing better working conditions, better f acilities and
increased earnings to theworkers.
Types of layouts:
Plant layouts may beclassifiedas
i) Process layout or functional layout
ii) Product layout or line layout
iii) Static layout or fixed position layout and
iv) Mixed layout or hybrid layout
Process layout or functional layout: The processlayout involves thegrouping togetherof likemachines in one department. For example, drillingmachines are installed in drillingdepartments,
all lathes are grouped together in turning section, milling machines are grouped in milling
section etc. There will be diff erent departmentsfor doing diff erent jobs. The fig. 2.1 shows the
processlayout in which the machines in each department attend toany product thatis taken to
them. The flow of the raw material from stores to thefinishedproductis shown by dotted lines in
which the raw material is moved from department to department for diff erent operations in
sequence. This typeof layout is best suited for intermittent typeof production
.
The advantages of process layout are:
x Reduced investment on machines as mostof them aregeneral purposemachines.
x Greater f lexibility in the production.
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x Greater scope for expansion as thecapacities of diff erent departments can beeasilyincreased.
x Results in betterutilizationof men andmachines.
x Easier to handle the breakdownof any equipment by transf erring the work to anothermachine.
x Eff icient supervision is possible throughspecialization.
The disadvantages are:
x There is difficultyin the movementof the materials.
x Requires morefloor space
x There is difficultyin production control
x Production time is moreas the work-in- progress has totravel from place to place in search of
machines.
x There is accumulation of work-in-progress at diff erent places.
i) Product layout or line layout: Product layout involves the arrangementof machines in one
line, depending on the sequenceof operations. Raw materials are fedinto the first machine and
finished products from machine to machine. The output of one becoming the input to the next
machine. For Ex: Sugarcane is fed at one end and sugar comes out at the other endin a sugar
factory. In paper mills, bamboos are fed to themachine at one end and paper comes out at the
otherend.
The advantages of product layout are :
x Handling of materials is automatic and hence thereis reduction in material handling etc.
x There is saving in manuf acturing time.
x Less floor area is required for production.
x Little skill is required for supervision as the processis automatic.
x The mistakes in production can be detectedearly.
The disadvantages are:
x There is no scope for f lexibility of operations. A change in product design may need major
alterations in the layout.
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x The break-down of one machine leads to thecomplete stoppageof that line of production.
x Comparatively,
breakdowns.
high investment is required as standby machines are required during
x Expansion is difficult.
x The paceof production is determined by the slowest machine and hencemachines have excess
idle time.
ii) Static layout or fixed position layout : Static layout involves the movement of men and
machines to the productwhich is stationary. In this typeof layout, the work piece remains in a
fixed position and tools, machinery and men are moved to this position. This type of layout isfollowed in the manufactureof bulky and heavy products suchas locomotives, ships,boilers,
aircrafts,generatorsetc.
The advantages of this type of layout are:
x The high cost anddifficultyof transporting a bulkyproductis avoided.
x The investment on layout is small.
x The workers identif y themselves with the work and takes pride in the completion of the
product.
x A numberof diff erent pro jects can be taken upin the samelayout.
The disadvantages are:
x Highly skilled workers arerequired.
x Machines and tools take moretime to reach theplace.
x Under utilizationof labour and equipments.
iii) Mixed layout or hybrid layout: Mixed layout is the combination of both processlayout andproductlayout, whichis suitable for most of the industrial establishments. This typeof layout is
suitable when the manufactured goodsare somewhat similar and are not complex. In plants
which involve both f abrication and assembly, the f abrication part employs processlayout and
the assembly part employs the productprocess.
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PERT and CPM:
An industrialpro ject consists of a numberof activities involvinglabour, time, materials,money
etc. Many of these activities areinterdependent and the rest can becarried out independently in
order toachieve the desire objectives. The pro ject managementshould not only plan, schedule,
coordinate and optimize the activities but also should identify and watch closely the critical
activities which must be completed within the allotted time. To deal with large and complex
pro jects, a number of management techniques known as network techniques have been
developed. They are:
x PERT
x CPM
x RAMS
x PEP
: Program Evaluation and Review Technique.
: Critical Path Method
: Resource Allocationand Multi pro ject Scheduling
: Program Evaluation Procedure
x COPAC
x MAP
x RPSM
x LCS
x PCS
x GERT
: Critical Operating Production AllocationControl
: Manpower AllocationProcedure
:Resource Planning andScheduling Method
: L east Cost Scheduling
: Project CostSystem
: GraphicalEvaluation Review Technique
The most convenient and commonly used networktechniques are PERT and CPM. PERT and
CPM are thescheduling techniques used to plan, schedule and control a pro ject consisting of a
numberof inter-related activities. T hese techniques provide a frame which def ines the jobs to
be done integrates them in a logical sequence and provides a system of control over the
progressof the plan.
Objectives of PERT and CPM
The ob jectives of PERT and CPM are:
a) To plan, schedule and control the pro ject consisting of a numberof inter-related activities.
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b) To def ine and integrate the tasksin a logical sequence.
c) To show the precedencerelationship between thevarious activitiesof the pro ject.
d) To give guidance about the proper sequenceof operations.
e) To draw the attention on the most critical activities for which the time schedules have toobestrictlyfollowed.
f) To know the progressof the work as related to thescheduled time.
g) To maximizethe useof resources to achieve the ob jective within time and costlimitations.
h) Provides basis for determining the requirements of manpower, material and money.
i) Helps in designing, planning, coordinating, controlling and decision making in order to
accomplish the pro ject mosteconomicallyand in the minimum possible time, with the available
limited resources.
Terms related with PERT and CPM
1 Event: An event is a specific instant of time which indicates the beginning or end of the
activity.Even is also known as a junction. It is representedby a circle and the even t numberis
representedwith in the circle. An event consumes neither time nr resources. For ex: Start the
motor, loan approvedetc.
2. Activity: Every pro ject consists of a number of operations or tasks which are called as
activities.An activityis time consuming or resource consuming part of the pro ject which hasa
def inable start andfinish. It may be a processlike moldings, a material handling or machine
procurement
activities.
process. For Ex: Install machinery, arrange f oreign exchange is examples of
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An activity is representedby an arrow in the networkdiagram. It begins in start event(or tail
event) and endson completion event (or head event). An activity is normally given a name
such as A, B, Cetc. which is marked below the arrow and theestimated time to accomplish the
activityis marked above thearrow.
Tail eventmeans: startmachine installation
Activity A means: machine installation
Head eventmeans: complexityof machine installation.
3. Represents the time required for installation which maybe in hours ordays.
The activities are classifiedas:
x Critical activities
x Non critical activitiesand
x Dummy activities
1. Critical activities : In a pro ject, critical activities are those which have to be completed
within the stipulated time. If they consume moretime than the estimated time, the pro ject
will be delayed. Hence, moreattention must bepaid to the critical activities.Any delay evenin the completion of one critical activity, thepro ject can not be completed in time. In the
network diagram, the critical activityis marked by a thick arrow or a double line arrow to
distinguish it from non-criticalactivity.
2. Non-critical activities: These are such activities in the pro ject, even if they aredelayed over
and above the estimated time, the pro ject as a whole will not be delayed. Hence such
activitieswill have a provision of f loat or stack.
3. Dummy activities: A dummy activity in an artificial activityintroduced in a network, to
maintain a unique numbering system for the diff erent activities andalso to keep thelogical
sequence of activities and their inter-relationships correctly. A dummy activity does not
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consumetime or resources. In the network, it is representedby a dotted arrow. In Fig 2.4, F
representsa dummy activity.
4. Critical path: It is that sequence of activities which decide the total pro ject duration.
Critical path is followed by critical activities.In f igure 2.4, the path 1-2-4-5is the critical
path. Critical path consumes maximum resources. It is the longest path and consumes
maximum time. A critical pathhas zero float. Even if one critical activity is delayed, the
pro ject cannot be completed in time. A critical path indicates that these activities must be
completed by hook or crook, if the pro ject schedule has to bemaintained.
5. Duration: It is estimated or the actual time required to complete a task or activity.
6. Total project time: It is the time taken tocomplete a pro ject and is found from thesequence
of the critical activities.In otherwords, it is the duration of the criticalpath.
7. Earliest start time (EST): It is the earliest possible time by which the activityis started.
8. Earliest finish time (EFT): It is the earliest possible time by which an activity can be
finishedEFT= EST+ duration of that activity
9. Latest start time (LST): It is the latest possible time by which an activity can startwithout
delaying the dateof completion of the pro ject. LST= LFT- duration of that activity.
10. Latest finish time (LFT); it is the latest time by which the activity must be completed so
that thescheduled date for the completion of the pro ject is not delayed. It is calculated bymoving backwards from the last event to the networkdiagram.
11. Float or slack: Float or slack means a margin of extra time over and above its duration
which a critical activitycan consume without delaying the dateof completion of the pro ject.
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Float is usedwith respect to anactivity andslack is used with respect to an eventi.e. f loat is
used in CPM and slack is used in PERT. However, in general, they can be used
interchangeably.
Float orslack = (LST EST) or (LFT EFT )
Network diagram or arrow diagram:
A network diagram is the basic featureof network planning. It is a diagram which represents
all the events and activities in a sequence in which they are required to be performedto
complete the pro ject along with their inter-relation and inter-dependencies. Arrow diagram
is the visual representation of the complete activities representedby meansof arrows. It is
the mostf requently used formof network diagram, where every activityis representedby an
arrow and the activity sequences areindicated by the direction of the arrows. Complete. F is
a dummy activity representedby a dotted arrow and shows thatactivities. A and B finish at
the same time i.e. t1 = t2 and C and D start at the same time. There are two paths to
complete the pro ject. They are 1-2-4-5 and 1-3-4-5. In an arrow diagram, the length and
inclination of an arrow does not haveany significance. Arrow diagrams are very useful as
they provide detailed inf ormation for making decisions in connections with large and
complex pro jects.
PERT (Project Evaluation and Review Techniques)
PERT is atechnique used for planning, scheduling and controlling the industrial pro jects. It
is used in programmes, where the activities are sub ject to considerable degreeof uncertainly
in performance time. It is very essential for timely execution of the pro jects. it is used for
large and complex pro jects. Because of the uncertainty of activity timings. PERT is a
probabilistic model. It uses linear programming and probability concepts for planning and
controlling the activities. PERT is mainly concerned with events and is thus an event
oriented system. The basic tool used in PERT technique is the network diagram which consists of a series of related events and activities.
The various steps followed in PERT planning techniques are:
x The pro ject is brokeninto diff erent activities systematically.
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x The activitiesare arrangedin a logical sequence.
x The network diagram is drawn. The events and activities are marked on the network
diagram.
x Using threetimes estimate, the expectedtime for each activity is calculated.
x The standarddeviation and variance for each activity is computed.
x ESTs and LFT s are calculated.
x Expected time, earliest starting time and latest finishing times are marked on the network
diagram.
x The slack is calculated.
x Critical path is identif ied and marked on the networkdiagram.
x The length of the criticalpath ortotal pro ject duration is foundout.
x Lastly, the probabilitythat the pro ject will finishat due dateis calculated.
CPM (Critical Path Method)
CPM is a technical used for planning and controlling the most logical and economic
sequenceof operations for accomplishing a pro ject. It is widely recognized and is the most
versatile and potent management technique. CPM is applicable to both small and big
pro jects. The
Project is analyzed into diff erent activities, whoserelationships are expressedin the network
diagram. The network is then utilized for optimizing the resources, progressand control.
CPM employs the followingtechniques for accomplishing the pro ject planning.
x The pro ject is brokeninto various activitiessystematically.
x All the activities are arrangedin a logical sequence.
x The arrow diagram is constructed. x All the events andactivities arelabeled.
x The time required for each activity is found and markedin the arrowdiagram.
x ESTs and LST s are calculated and markedin the arrowdiagram.
x The f loat for each activity is calculated.
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Applications of network techniques
Network techniques find wide range of applications in planning and controlling various
processes are:
1. The detailed and thoughtf ul planning provides betteranalysisand logical thinking. 2. Identif ies critical activitiesso that more attention can begiven to them.
3. Helps in f orecasting the pro ject durations more accurately.
4. The resources areoptimized by using the conceptof slack.
5. Scientificallymonitor the slippages and controls them.
6. Helps in bettercoordination among therelated activities.
The limitations of networks techniques are:
1. Network technique is only a tool to help the management andhence, its eff ectiveness mainly
depends on howwell it is used by themanagement.
2. Its accuracy depends on theestimation of the data usedin the network.
3. It is useful onlyif it is updatedregularlyand corrective actions are takenin time.
Line balancing:
In an industry, line balancing means thebalancing of the production line or an assembly line.The main ob jective of line balancing is to distribute the tasks over thework stations so as to
minimize the idle time of men andmachines. Line balancing is done by grouping the tasks
and workers in order to obtain an optimum balance of the capacities and flow of production of
assembly processes. The main aim of layout planning is to find out the minimum number of
workers required and assigning tasks to each oneof them sothat, the desired level of outputis
achieved. If the line balancing of any product layout is not proper, it means that the utilization
of machinery and men is poor and the idle time is more. L ine balancing is the arrangementof
a production line such that, there is an even flow production from onework station that will
leave the next work station with idle time.The main problem in line balancing is to assign the
task to the workers at work stations so that the perf ormance times are made as equal as
possible. This problem can besolved to a great extentby followingthe steps given below.
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x The task is def ined i.e. task is the smallest grouping of work that can be assigned to a work
station.
x The tasks are properly sequenced. For this the predecessorand successor tasks are to be
properly identif ied.
x The minimum numberof work stations required to producea desired outputis calculated.
x Tasks are assigned to each station. For this, several combinations are possible. Normally
heuristicmethod(i.e. T humb rules, logical analysis,commonsense, and pastexperience) are
normallyused.
x The efficiency and eff ectiveness of the line balance is evaluated. If it yields the desired
output, it is effective, efficientand minimizes idletime.
x The line balancing of the layout may beimproved by trial and error method.
Methods of line balancing
The various methodsof line balancing are:
x Heuristicmethod
x Linear programming method
x Dynamicprogramming method
x Computer basedsampling techniques.
Heuristic and computer based techniques are widely used for solving large scale line
balancing problems. We will discuss only about the Heuristic method of line balancing.
Heuristic method is a thumb rule method which gives almost a satisf actory but not
optimized solution to the line balancing problem. Heuristic methods are acceptable whenoptimizing solutions are not f easible and are too costly to apply. Heuristic method of line
balancing is a trial and error technique in which work elements are grouped suchthat, the
cycle time is not violated and the procedurediagram is made useof to group theactivities as
per the sequenceof operations.
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Automation:
Automation is def ined as the processof moving materials and partsin and outof machines
and operating the machines automatically without any human control. It requires that
machines, tools and othermechanical handling devices are so integrated that all these act
like a continuous machine without any human intervention. Automation is not just
mechanization but something more than that. Mechanization means doing something by
machines what previously was done by men. It requires human watching, thinking and
reacting for routine machines operations. But in automation, machine operators are no
longer required to load, put the machine through its cycle, unload, inspect, make any
machine corrections and send the parton its way to the nextoperation. All these stepsare
performedby instruments, mechanical and electronic devices and other meansof controls,
f eed, operator andlink machines togetherinto an automatic process.
Types of automation:
There are three typesof automation. They are:
1. Continuous automation
2. Segmented automation and
3. Non-manuf acturing automation x Continuous automation: This type of automation is used in industries like chemical plants,
oil ref ineries etc, where homogenous materials such as liquid, gases and pulverized
substances will be conveyed throughout the whole process. The operations are done by
control boards and pushbuttons. The instruments measure, record andcontrol volumes, weight
flow, pressure, humidity, temperature etc and takecorrective measures when something starts
going out of control.
x Segmented automation: This type of automation is intermittent automation of a part of the
whole process, such as f abrication or assembly with intervals between automation
equipments. This typeof automation is used whereit is not practically possible to automation
the whole processof f abrication or assembly.
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x Non-manuf acturing automation: This type of automation is used in office automation,
automatic elevators, transportation ticket selling equipments etc. in which no manuf acturing
processis involved.
Advantages of automation
The various advantagesof automation are:
x Greater output per unit labour
x Greater output per unit investment
x Lesser floor spacerequired
x Increased safety to theoperators
x Automatic production schedules
x Uniform qualityof products x High rate of production due to transferof knowledge of efforts from man tomachine.
x Less scrap
x Less inventories
x Requires less expert staffand restsemi-skilledworkers.
The various disadvantages are:
x Requiresgreatercapital investment x Less manuf acturing f lexibility
x Increased unemployment
x Failureof one part mayresult in the shut down thewhole process
x During lessdemand, the automated plant can not be usedfor any other purpose.
Applications of automation.
Automation of plants is not economical, if the volume of production is small or where a
great variety of products are to be manuf actured, in the plant. Automated plants are employed in the following cases:
x Where a product design is stable for a long time, so that the cost of automation can be
sustained.
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x Where thevolume of continuous manufacture is adequate and steadyfor a long time so that,
the plant installation becomes economical, prof itable and permit the use of single purpose
equipment.
x Where themanuf acturing method requires more manual work and automation helps in cost
saving.
x Where machines are complex or work at such a high speed that it is not possible to work
efficientlyusing manpower.
x Where the productis so hazardous that it can not be controlled by manual methods suchas
radioactive materials.
Statistical Quality Control
Before understanding the meaning of statistical quality control, it is better to know the meaning of the three words statistics, quality and control. Statistics means data required to
obtain reliable results. Qualityis a relative term which describes the f itness of the product
for a particular purpose. Control means measuring and checking. It speaks about, when to
inspect, how often toinspect and how much toinspect. Hence statistical qualitycontrol may
be def ined as a quality control system employing the statistical techniques to control the
quality of the productby perf orming inspection, testing and analysis to find out whetherthe
quality of the productis as per thelaid quality standards. S.Q.C relies on probabilitytheory to evaluate the batch quality and controls the quality of the processes and products.
Statistical quality control involves the statistical analysis of the inspection data obtained
from thesamples. The f undamental basis of S.Q.C is the theoryis probability. Accordingto
the theoryof probability, thedimensions of the components made on the samemachine in a
batch, vary slightly from component to component due to the inherent machine
characteristics and environmental conditions. The chance thata sample will representthe
entire batch of component is developed from the theory of probability. S.Q .C evaluates
batchquality andcontrols the quality of the processes and products using the followingthree
techniques.
x Samplinginspection
x Control chartsand
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x Analysis of data
When large numberof similarcomponentsis manuf actured, it is impossible to inspect all the
componentsindividually as it is very tiring and costly. This continuous process becomes
monotonous and chancesof errors in inspection increases. On the other hand, if a random
sample is selected from a lot and inspected using probability concepts, assuming that this
sample represents thelot, there will be much saving in cost andlabor involved in inspection.
In certain cases such as f atigue testing, analyzing the chemical composition of an alloy,
sampling test is the only methodof inspection. Sampling plans control of the averagequality
of the outgoing components. The results are analyzed by determining the mean, range,
standarddeviation and the control limits for fixed levels of conf idence. S.Q.C also decides
about the shape andsize of the sample and its reliability.
Advantages of S.Q.C
S.Q .C is one of the tools of scientific management and has the following advantagesas
compared to 100%inspection.
x Reduction in c