2.25 PROD. MGT

8/7/2019 2.25 PROD. MGT

1/40

8/7/2019 2.25 PROD. MGT

2/40

PRODUCTION MANAGEMENT NOTES MBA 2ND SEM NOTES

Production Management Functions:-

MARKETING

HRM

FINANCEMANAGEMEN

T

MATERIAL

MGT.

PRODUCTION

MANAGEMENT

3. Controlling

1. Planning

2. Organizing

8/7/2019 2.25 PROD. MGT

3/40


8/7/2019 2.25 PROD. MGT

4/40


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 PlanningDesigning Conversion Process

In Fact Planning phase is divided in to two sub parts

PLAANNING

Pre- Planning

Actual- Planning(i) Product Planning ( i )

Material Planning

(ii) Process Design (ii)

Methods Planning

(iii) Sales forecasting (iii)

Manpower Planning(iv) Plant Location (iv)

Money (Fund)

(v) Plants Layout

(vi)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 goodsAssigning 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

8/7/2019 2.25 PROD. MGT

5/40

8/7/2019 2.25 PROD. MGT

6/40


Scope of production management

Activities related to Designing & Activities related to

analysis &

Formulation of Production System Control ofProduction 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 plansDesigning tools Plant layoutDevelopment & Material handling

system

Installation of equipment R & D activities

(2) PRODUCTION PLANNING:-

It involves various activities like

Short term production schedulePlan 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

8/7/2019 2.25 PROD. MGT

7/40


(3)PRODUCTION CONTROL:-It involves various activities like

Regulate work assignments

Service work program

Remove discrepancies

Control inventoryControl work progressControl 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.

8/7/2019 2.25 PROD. MGT

8/40


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 largeQuantities 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 atdifferent stage of production process.

Example:- (a) Crude oil refinery->kerosene, gasoline etc.

(b) Alloy /steel manufacturing

Advantages of continuous system:-

Reduced labour cost

High accuracy, better quality and increased production

Educed material handling

Minimum wastage because of standardization

Better method of material/inventory control

Better ROI (return on investment)

Disadvantages of continuous systems:-

Strict maintenance becomes necessary to avoid productions hold ups

Adjustment to new situations and specifications becomes difficult particularly in

present days where stock demands causing huge losses.

ILINTERMITTENT PRODUCTION SYSTEM

Goods are manufactured specifically to fulfill orders by customer rather thanproducing against stock.

Machine and equipment laid are as per processes

Flow of material is intermittent. (not continuous)

Production facilities are flexible

8/7/2019 2.25 PROD. MGT

9/40


Handle wide variety of products and size (eg:-switch gear industry)

Considerable storage between operations is required so that individuals

cooperation can be carried out independently for further utilization of man and

machines

Product manufactured in small quantity

Job production:- Production of single complete unit by one operator or group of operatiors e.g.

pridge/Dam construction, ship construction.

Whole project is considered one operation

Work is complete on each project before passing on to next.

Each product is a class itself and requires a distinct and separate job for

production.

Project involves high capital investment.

Highly skilled labour is required (with versatile qualities)

Batch Production:- Items are processed in lots or batches.

A new batch is undertaken for production only when the production of existing is

completed

It is extension of job processing

Example: chemical industry- Different medicines are produced in batches. Printing

press

Advantages of intermittent production system:-

Can adjust to next situation and specification

Items can be manufactured according to order

Fluctuation in demand can easily be taken care off.

Disadvantages of intermittent production system:

As production is in small quantity so C.O.P is high.

Because skilled labour is needed so security and associated cost of HR pushes

overall cost.

Initial heavy investment

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

8/7/2019 2.25 PROD. MGT

10/40


1. Fully customized product strategies:

Separate product for separate customer according to its requirement

No inventory

Uniqueness

Emphasis is on time delivery quality and flexibility Example Dress designed for particular customer

Production in small lots according to customer needs

2. Mixed product strategies

Sensitive to variety

Some flexibility

Moderate cost

Dependability of supply

Quality of products is important

Multiple sizes and types of products are there

Offshore and by order both the aspects are important on the enterprisesstrategy

3. Fully standardized product strategies

Same product for every customer

Off shelf availability (inventory)

Emphasis is on minimizing cost

Increasing availability

Example sugar gasoline steel and aluminum products

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 location:-

Relocation: a location that is good for particular firm today may not be good tomorrow.

8/7/2019 2.25 PROD. MGT

11/40


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 materialsChanges in pricing policy

Expansion decision/ diversification / modernizationUndesirable labour situations (unavailability of skilled labour. rise in labour cost

need of changed skills etc).

Relocation of various associated industries plants.

Government regulationsMain 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 availabilityExample: automobile plants, steel mills, oil refineries.

2. Light manufacturing:-

Proximity to customer (most important)

Labour poolSkilled 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 PROCESSThis 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.

8/7/2019 2.25 PROD. MGT

12/40


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 problemRegular 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 costExample: 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)

8/7/2019 2.25 PROD. MGT

13/40


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 atcheaper 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 greatsignificance.

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 housingTheater

Shopping complex

Local passenger transport

Proper drainage

Disposal of waste etc

9. Government regulations:-Example: Delhi authority decision

10. Safety RequirementsIf it is nuclear, power plant or chemical industry must not be in residential

area.

8/7/2019 2.25 PROD. MGT

14/40


11. Other FactorsSpecial grant, political stability, low rental etc

Economic stability

Available technology

CultureConstruction & 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 & othersupporting activities

Means:-

Placing right equipment

Coupled with right method

In right place

Processing of products in most effective method, through shortest possibledistance & time.

Results in:-

Proper material handling

Reduce transportation cost

Maximize utilization of floor space

Material movement at desired speed at low costLess working progress & less need of supervision

FACTORS CONSIDERED FOR LAYOUT1 Organization

2 Location of department

3 Type of product, method if production, production process.

4 Production capacity

5 Type of industry.

6 Grouping of machine7 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.

8/7/2019 2.25 PROD. MGT

15/40


OBJECTIVE OF PLANT LAYOUT1. 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 employees 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 LAYOUT1. 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 LAYOUTFor efficient material handling careful analysis & evaluation of the entire

operation with the objective of implementing a well planned material flowpattern by means of appropriate method & equipment

Procedure for this is1. 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.

8/7/2019 2.25 PROD. MGT

16/40


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 discussion13. 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 ofoperation 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

8/7/2019 2.25 PROD. MGT

17/40


Waiting cars

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 itfrom 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 functionbasis------

Suitability-for intermittent production system

Example wareeeehouse.hospital, university, medical

P1 P1

Hot wazarspray Top wash

& spray Side washFinalrinse Cleanout &

hand wipe Car exit

Cardiac Laboratory

8/7/2019 2.25 PROD. MGT

18/40


P2 p2

p2

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 itis 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 tounpredictable behavior, there are fluctuations in demands,

supply. Inventory absorbs these fluctuations. Inventory for

organizations is a necessary evil.

ReceptionX-ray

Surgery

Physician

Chemist

8/7/2019 2.25 PROD. MGT

19/40

8/7/2019 2.25 PROD. MGT

20/40


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 costsare 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 statesthat 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 6month

Weekly control statements Monthly control reports Quarterly control an

analysisAccurate 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

8/7/2019 2.25 PROD. MGT

21/40


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 noeffect 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 itemIf 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 asstore 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 toprovide these service promptiy and at least cost.

8/7/2019 2.25 PROD. MGT

22/40


Types of store 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.

StoresArea 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

deliveredOnly by authorized document. To the respective deptt

Closed system

Storessystem

Open

system

8/7/2019 2.25 PROD. MGT

23/40


To expedite the

production

Activity

Maximum physical security High chances of pilferage

Tight accounting control of inventory material less emphasis on accountingcontrol of material

FUNCTION OF STORES SYSTEM

1) RECEIPTReceiving of material is an important function of stores system. The receiving involves

much of paper work and it varies from firm to firm.

8/7/2019 2.25 PROD. MGT

24/40


RECEIPT

COORDINATION&

COOPERATION STORAGE

RECORDS

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 therequisition.

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.

FUNCTION OF

STORES

8/7/2019 2.25 PROD. MGT

25/40


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 & COOPERATIONTo interface with production and inspection department

WORKING OF STORES DEPARTMENT

8/7/2019 2.25 PROD. MGT

26/40


Stock order

Stock reservation

Work

Stores & account

section

Stores section

Stock delivery report Material

Receiving

reportMaterial

Stores issuingsection

Stores receiving

section

Production

8/7/2019 2.25 PROD. MGT

27/40


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 theirlocation is easily identified at time of issues. The stores in charge receive the materialsfrom stores receiving section along with goods inward note (goods receiving report)

i) STORE ISSUE SECTIONThe section handles the issue of material when required by some departments of theenterprise, 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 SECTIONThe 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. Maintainedfor 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 receiverequired material, they start work.

Q=7:- Write a note on work study?

ANS. WORK STUDYWork 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

8/7/2019 2.25 PROD. MGT

28/40


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

workerDevelop 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 workmeasurement 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.

8/7/2019 2.25 PROD. MGT

29/40


M ETHOD STUDY

Method study Work Measurement

Results in more effectiveuse of material, plan,and manpower.

Making possibleplanning & control,manning.

Higher productivity

WORK STUDY

8/7/2019 2.25 PROD. MGT

30/40


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- DevelopI- 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 Gilberts later development inmotion study technique. Later in 1947 the American society of mechanical engineers

reduced the

No. symbols and standardized the technique.

PROCESS CHARTSCharts in witch a sequence of portrayed diagrammatically by means of a set of the

process chart symbols.

8/7/2019 2.25 PROD. MGT

31/40


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 CHARTSIs 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

STANDARD

SYMBOL

NAME OF ACTIVITY DEFINITION OF ACTIVITY

OPERATION

Modification of an object at one

work place object may be changed in

any of its physical or chemical

characteristics

TRANSPORTATION

OR MOVEMENT

Change in location of an object from

one place to another

INSPECTION Examination of an object to check on

quality or quantity characteristics.

DELAY /

TEMPOARYSTORAGE

Retention of an object in a location

awaiting next activity.

STORAGE Retention of an object in location in

Storage which is protected against

unauthorized removal.

8/7/2019 2.25 PROD. MGT

32/40


] 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 1st published in 1987 & subsequently revised in 1994.

In India:- ISO 9000British:- 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 topquality 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:

8/7/2019 2.25 PROD. MGT

33/40


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 verifywhether 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.

8/7/2019 2.25 PROD. MGT

34/40


Aim & objective of ISI:- 9000 series

1 Increase customers 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 view5 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

8/7/2019 2.25 PROD. MGT

35/40


Q.9 Write a note on PPC (production planning and control) in mass .batch & jobproduction?

Conversion process

Door Shop Job shop

Project

Same operation variety of jobs in it is a

unique one

Repetitively small batches shot affairconsist

Performed in sequence of many non

repetitive

Activities which

consume

Time & resources

It is for mass production

8/7/2019 2.25 PROD. MGT

36/40


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 average rate

Example: automobile, computers, toys assembly

DIGRAM OF ASSEMBLIES:

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

WS

B

WS

N

INPUT

WS

A

8/7/2019 2.25 PROD. MGT

37/40


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 possibleduplication 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 lineProbabilistic balancing method used in this

2. Break down at WS3. 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 modulesthese 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 productionof 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.

8/7/2019 2.25 PROD. MGT

38/40


PPC IN BATCH PRODUCTIONBatch 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.

8/7/2019 2.25 PROD. MGT

39/40


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:- PURCHASINGPurchasing 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.

8/7/2019 2.25 PROD. MGT

40/40


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 materialsThe 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.

CRITICAL FACTORS OF THE PURCHASE MANAGEMENTPrice if the material

Date post:	08-Apr-2018
Category:	Documents
Upload:	karantandon62
View:	216 times
Download:	0 times

2.25 PROD. MGT

Documents