PRODUCTION, OPERATIONS & MATERIALS MANAGEMENT

SYLLABUS IN BRIEF 1. 2. 3. 4. 5. 6. HISTORY & DEVELOPMENT OF MANUFACTURING MANAGEMENT. NATURE, SCOPE & FUNCTION OF MANUFACTURING MANAGEMENT. MANUFACTURING SYSTEM. IMPORTANCE & FUNCTIONS OF FACILITY LOCATION. PRODUCTION PLANNING & CONTROL. PROGRAMME EVALUATION & REVIEW TECHNIQUES ( PERT ) & CRITICAL PATH METHOD ( CPM ). 7. MAINTENANCE MANAGEMENT. 8. INSPECTION & STASTICAL QUALITY CONTROL. 9. INTRODUCTION TO WORKS STUDY & INCENTIVE SCHEMES.

HISTORY & DEVELOPMENT OF MANUFACTURING MANAGEMENT

# MANUFACTURING MANAGEMENT ( MM ) WAS THE TERM COINED IN THE EIGHTEENTH CENTURY BY ADAM SMITH & CONTINUIED TILL 1930. THIS REFLECTED THE TRADITIONAL VIEW OF THE ACTIVITIES PERFORMED IN A FACTORY. # THE DEVELOPMENT OF SCIENTIFIC TOOLS & TECHNIQUES TO IMPROVISE FACTORY OPERATIONS LED TO THE SUBSTITUATION OF TERM MM BY PRODUCTION MANAGEMENT WHICH WAS MOST ACCEPTED TERM FROM 1930s TO 1970s. FROM 1970, SINCE SERVICE SECTOR BECAME PROMINENT, THE TERM OPERATIONS MANAGEMENT WAS USED IN PLACE OF PRODUCTION MANAGEMENT. # THUS MANUFACTURING MANAGEMENT, ALSO CALLED PRODUCTION MANAGEMENT & OPERATIONS MANAGEMENT CAN BE USED TO DESCRIBE BROADLY THE SAME GENERAL DISCIPLINE & WE SHALL BE USING THESE TERMINOLOGIES INTERCHANGABLY DURING OUR COURSE. HOWEVER TO BIGIN WITH WE MUST UNDERSTAND THESE TERMINOLOGIES.

# MANUFACTURING MANAGEMENT ( MM )--- IS THAT PORTION OF BUSINESS MANAGEMENT CONCERNED WITH THE PLANNING, DIRECTION & CONTROL OF PRODUCTION & ALLIED SERVICES PERFORMED IN THE MANUFACTURING INDUSTRY. SPECIFICALLY IT DEALS WITH THE FORMING, ASSEMBLING, FINISHING, PACKAGING & SHIPPING OF A PRODUCT. # IN TERMS OF OBJECTIVES, MM IS CHARGED WITH THE RESPONSIBILITY TO PRODUCE A PRODUCT OF SPECIFIED QUALITY AT A COMPETITIVE COST & TO MAKE IT AVAILABLE FOR DELIVERY TO THE CUSTOMER AT A TIME STIPULATED BY THE SALES DEPT.
# MM IS CONCERNED WITH THE PRODUCTION OF A PRODUCT WITHIN THE LIMITS OF COST, QUALITY & TIME ESTABLISHED BY MARKETING & FINANCIAL POLICIES OF THE TOTAL ORG. # PRODUCTION ----IT IS THE PROCESS OF TRANSFORMING RAW MATERIALS OR PURCHASED COMPONENTS INTO FINISHED PRODUCTS FOR SALE. # OPERATIONS MANAGEMENT--- IT IS RESPONSIBLE FOR ALL THE ACTIVITIES THAT ARE DIRECTLY CONCERNED WITH MAKING AN ORGANIZATIONS PRODUCTS. IT ORGANIZES THE PROCESS OF TAKING RAW MATERIALS & TURNING THEM INTO PRODUCTS THAT SATISFY CUSTOMER DEMAND. # AN OPERATION MAY BE DEFINED AS THE PROCESS OF CHANGING INPUTS INTO OUTPUTS THEREBY ADDING VALUE TO SOME ENTITY. # HAVING SEEN THE BASICS, LET US GO THROUGH THE HISTORY OF MM. HISTORY OF MM OR PRODUCTION OR OPERATIONAL MANAGEMENT # MM FINDS ITS ROOTS IN SCIENTIFIC MANAGEMENT & THE DIVISION OF LABOUR. SCIENTIFIC MANAGEMENT, INTRODUCED BY TAYLOR, IS CONCERNED WITH KNOWING EXACTLY WHAT YOU WANT MEN TO DO & THEN SEE IN THAT THEY DO IT IN THE BEST & CHEAPEST WAY. DIVISION OF WORK OR LABOUR, AS INTRODUCED BY FAYOL, ADVOCATES TO TAKE ADVANTAGE OF SPECIALISATION. # IN ITS EARLIEST FORM, MM WAS CONCERNED MAINLY WITH PRODUCTION. EGYPTIANS SYSTEMATICALLY ORGANIZED THE EFFORTS OF MANY PEOPLE IN PRODUCING GOODS. HOWEVER, IT WAS NOT UNTIL THE INDUSTRIAL REVOLUTION THAT THE PRODUCTIVE EFFORTS OF INDIVIDUALS WERE REGULARLY ORGANIZED IN FACTORIES. THE FACTORY SYSTEM WAS

DEVELOPED CONCURRENTLY WITH THE INTRODUCTION OF MACHINERY & CENTRALISED POWER SOURCES. # DURING THE YEARS PRIOR TO 1900, IT WAS COMMON TO FIND OWNER OF A COY SUBCONTRACTING THE PRODUCTION ACTIVITIES TO A SHOP SUPERINTENDENT. THIS SUPERINTENDENT HIRED & DIRECTED HIS OWN EMPLOYEES IN PROCESSING THE MATERIALS OF MANUFACTURE WHICH WERE GENERALLY SUPPLIED BY THE OWNER, ON THE OWNERS EQPT & IN THE OWNERS PLANT. AS PRODUCTION PROCESS GREW MORE COMPLEX, THE OWNER RETAINED GREATER CONTROL OVER PRODUCTION OPERATIONS---FINALLY EMPLOYING ENGINEERS & OTHER PRODUCTION EXPERTS TO MANAGE THE FUNCTION. # THE HISTORY COULD BE TABULATED AS FOLLOWS :-

SR YEAR 1. 1776 2. 3. 1883 18591915 1917 1913

ORIGINATOR Adam Smith CHARLES BABBAGE TAYLOR

CONCEPTS # SCIENTIFIC PRODUCTION MANAGEMENT. # DIVISION OF LABOUR # NEXT STEP TO DIVISION OF LABOUR IN THE FORM OF SPECIALISATION. # SCIENTIFIC MANAGEMENT

REMARKS FATHER OF PRODUCTION MANAGEMENT

4. 5.

6.

1913

7. 8. 9.

1913 1914 1924

F.B.GILBRETH WORK STUDY, MOTION STUDY & HUMAN FACTOR IN INDUSTRY HENRY FORD MASS PRODUCTION & ORGANISED WORK STATIONS INTO A CONVEYORISED ASSEMBLY LINE HENRY INTRODUCED VISUAL GANTT DIAGRAMMATIC TOOL-- GANTT CHART-- USED FOR CHARTING THE PRODUCTION SCHEDULES & MACHINE LOAD SCHEDULES. HARRINGTON EVOLVED EMERSON EFFICIENCY EMERSON PLAN---LABOUR EFFICIENCY AS A BASIS FOR PAYMENT OF WAGES. F.W. HARRIS DEVELOPED ECONOMIC LOT SIZE---USED IN SCIENTIFIC INVENTORY CONTROL SYSTEM. WALTER INTRODUCED THE CONCEPT OF

MORE DETAILS GIVEN BELOW SEPERATELY ---DO---

SHEWHART

10. 1931

F.H.DODGE, H.G. ROMING & W. SHEWHART

STATISTICAL QUALITY CONTROL. HE PIONEERED THE CONCEPT OF CONTROL CHARTS FOR MONITIRING THE QUALITY OF PRODUCTION PROCESS. CONCEPT OF SAMPLING INSPECTION & PUBLISHED STATISTICAL SAMPLING TABLES.

11. 1937------L.H.C. TIPPETT-----DEVELOPED THE CONCEPT OF WORK SAMPLING TO DETERMINE THE MACHINE & MANPOWER UTILISATION & FOR SETTING PERFORMANCE STANDARDS FOR LONG-CYCLE-JOBS, OPERATIONS INVOLVING TEAM WORKING & HETROGENEOUS ACTIVITIES.

12. BETWEEN 1940 TO 1980---------MAJOR DEVELOPMENTS ARE :(a) OPERATIONAL RESEARCH ( OR )---IT IS THE APPLICATION OF SCIENTIFIC METHODS TO STUDY & DEVICE SOLUTIONS TO MANAGERIAL PROBLEMS IN DECISION MAKING. USING MATHEMATICAL MODELS & THE SYSTEMS APPROACH OR HAS HELPED SOLVE RESOURCE ALLOCATION, SCHEDULING, PROCESSING, INVENTORY, LOCATION LAYOUT & CONTROL PROBLEMS. (b) VALUE ENGINEERING OR ANALYSIS----IT IS AN ORGANISED APPROACH TO IDENTIFY UNNECESSARY

COSTS OF PRODUCTS & SYSTEMS BY ANALYSIS OF FUNCTION & EFFICIENTLY ELIMINATING THEM ( UNNNECESSARY COSTS ) WITHOUT IMPARING THE QUALITY, RELIABILITY & ABILITY OF THE ITEM TO GIVE SERVICE. (c) COMPUTERISED APPLICATIONS OF INDUSTRIAL ENGINEERING & OR TECHNIQUES TO PRODUCTION MANAGEMENT PROBLEMS. (d) DEVELOPMENT IN MIS & DSS ( DECISION SUPPORT SYSTEM ) PROVIDED A FURTHER GROWTH TO THE DEVELOPMENT OF OPERATIONS MANAGEMENT. (e) CONCEPT OF CPM ( CRITICAL PATH METHOD ) & PERT ( POROGRAMME EVALUATION & REVIEW TECHNIQUE ) WERE DEVELOPED FOR ANALYSIS OF LARGE PROJECTS & SINCE THEN A NUMBER OF NETWORK BASED TECHNIQUES OF PROJECT MANAGEMENT HAVE BEEN DEVELOPED. (f) IN LATE 1950s THE TECHNIQUES OF PRODUCTION WERE EXTENDED TO OTHER PRODUCTION ORGS SUCH AS PETROLIUM, CHEMICAL & OTHER PROCESS INDUSTRIES WHICH LED TO THE EMERGENCE OF PRODUCTION

MANAGEMENT AS A FUNCTIONAL MANAGEMENT DISCIPLINE. (g) IN THE LATE 1960s THE CONCEPT OF PRODUCTION WAS AMPLIFIED TO INCLUDE A NUMBER OF SEEMINGLY NON-MANUFACTURING ORGS SUCH AS TRANSPORT, HOSPITALS, BANKS, AGRICULTURE, WAREHOUSES, EDUCATIONAL INSTITUTES etc. WHICH HAS LED TO THE ADOPTION OF OPERATIONS MANAGEMENT IN PLACE OF PRODUCTION MANAGEMENT SO AS TO INCLUDE BOTH THE PRODUCTION OF GOODS AS WELL AS SERVICES. # MORE RECENTLY THERE HAS BEEN A MAJOR THRUST ON THE ADOPTION OF JAPANESE MANAGEMENT TECHNIQUES LIKEJUST-IN-TIME ( JIT ) OR KANBAB SYSTEM. # F. W. TAYLOR ( 1859-1915 )----HE GAVE THE CONCEPT OF FUNCTIONAL MANAGEMENT. TAYOLR ADVOCATED FOUR DUTIES OF MANAGEMENT :1.

DEVELOPMENT OF SCIENCE FOR EACH ELEMENT OF MANS WORK TO REPLACE RULE-OF-THUMB METHODS. THIS CONCEPT SUBSEQUENTLY DEVELOPED INTO METHOD STUDY & WORK MEASUREMENT

2. SELECTION OF BEST WORKERS FOR EACH PARTICULAR TASK & THEN TRG & DEVELOPING THE WORKMEN ( IN PLACE OF OLD PRACTICE OF ALLOWING A WORKMAN TO CHOOSE HIS OWN WORK & GET HIMSELF TRAINED AS BEST AS HE COULD ) ON INDIVIDUAL BASIS. 3. THE PERFORMANCE OF WORK BY THE WORKMAN IN ACCORDANCE WITH THE SCIENTIFICALLY DEVISED METHODS BY THE MANAGEMENT & STRIVING FOR COOPERATION BETWEEN WORKMEN & MANAGEMENT TO OBTAIN BOTH MAXIMUM PRODUCTION & HIGHER WORKER WAGES. CONCEPTS AT Sr 2 & 3 GAVE RISE TO TRG, SELECTION & PLACEMENT & INDUSTRIAL RELATIONS. 4. THE DIVISION OF WORK BETWEEN WORKERS & MANAGERS, EACH GP TAKING OVER THE RESPONSIBILITY OF THE WORK FOR WHICH IT WAS BEST SUITED. THIS CONCEPT HAS BECOME INHERENT IN THE INDUSTRY WHEREIN TODAY MANAGEMENT TAKES THE FUNCTION OF PLANNING & CONTROL WHILE FIRST LINE SUPERVISORS & WORKMEN ARE LEFT TO CONCENTRATE ON EXECUTION OF PLANS. # TAYLOR ALSO DID REMARKABLE WORK OF DIRECT ADVANTAGE TO PRODUCTION

MANAGEMENT. HE ENVISIONED MOTION STUDY AS A COMPLEMENTARY TECHNIQUE OF TIME STUDY & DEVISED GROUND RULES FOR TIME STUDY WHICH ARE :1. THE TASK UNDER STUDY SHOULD BE ANALYSED PART BY PART, EACH PART BEING CALLED AN ELEMENT. 2. ELEMENTS SHOULD BE EXAMINED & THOSE WHICH DO NOT FORM PART OF THE WORK CYCLE SHOULD BE DROPPED. 3. ELEMENTS SHOULD BE TIMED ACCURATELY, USING STOP WATCH THAT IS TIME STUDY.
4. A SMALL ALLOWANCE OF TIME SHOULD BE ADDED TO THE TIME OF EACH ELEMENT TO COMPENSATE FOR THE UNFORESEEN CONTINGENCIES. AND 5. ELEMENTS SHOULD BE CLASSIFIED & CAREFULLY DEFINED TO ENABLE FUTURE REFERENCE. MOTION STUDY WAS EMPLOYED FOR THE ANALYSIS & IMPROVEMENT OF WORK METHODS. TIME STUDY IS USED TO DETERMINE THE STANDARD TIME FOR COMPLETING A JOB. FRANK B. GILBRETH ( 1917 )-----HE IS THE FOUNDER OF WORK STUDY OF WHICH MOTION STUDY IS A PART. HE EMPHASIZED THE IMPORTANCE OF RELATIONSHIP BETWEEN OPERATORS OUTPUT & HIS PHYSICAL EFFORT. # HE DEVISED A SYSTEM OF CLASSIFYING MOTIONS INTO 17 BASIC DIVISIONS WHICH HE CALLED, THERBLIGS ( FOUNDERS NAME GILBRETH SPELLED IN THE REVERSE ORDER ) & SUGGESTED USE OF A CHART CALLED SIMO CHART TO RECORD MOTIONS EMPLOYED BY THE WORKMAN TO PERFORM A TASK. # LILIAN, GILBRETHS WIFE & PSYCHOLOGIST BY PROFESSION, PIONEERED THE CONCEPT OF HUMAN FACTOR IN INDUSTRY. THEY EVOLVED SEVERAL LAWS AS PRINCIPLES OF MOTION ECONOMY TO PROVIDE GROUND RULES AROUND WHICH AN IDEAL METHOD COULD BE ESTABLISHED. # GILBRETHS CONTRIBUTION TO PRODUCTION MANAGEMENT ALSO INCLUDES THE CONCEPT OF MICRO-MOTION STUDIES ( MICRO-MOTION CAMERA STUDIES AS A SUBSTITUTE TO STOP WATCH STUDIES).

NATURE, SCOPE & FUNCTION OF MANUFACTURING MANAGEMENT

INTRODUCTION # THE PRODUCTION OR MANUFACTURING MANAGEMENT SINCE LONG HAS BEEN ASSOCIATED WITH A FACTORY WHERE GOODS ARE PRODUCED IN PHYSICAL SENSE. FACTORY HAS BEEN DEFINED AS : ANY PREMISES IN WHICH PERSONS ARE EMPLOYED FOR THE PURPOSE OF MAKING, ALTERING, REPAIRING, ORNAMENTING, FINISHING, CLEANING, WASHING, BREAKING,DEMOLISHING OR ADOPTING FOR SALE ANY ARTICLE. # THE ESSENTIAL FEATURE OF A PRODUCTION FUNCTION IS TO BRING TOGETHER PEOPLE, MACHINES & MATERIALS TO PROVIDE GOODS & SERVICES THEREBY SATISFYING THE WANTS OF PEOPLE. SINCE BOTH MANUFACTURING & SERVICE ORGS INVOLVE ABOVE MENTIONED FEATURES, THE TERM PRODUCTION MANAGEMENT IS GRADUALLY BEING REPLACED BY OPERATIONS MANAGEMENT. MEANING OF PRODUCTION MANAGEMENT # IT IS RESPONSIBLE FOR ALL THE ACTIVITIES THAT ARE DIRECTLY CONCERNED WITH MAKING AN ORGS PRODUCTS. IT ORGANIZES THE PROCESS OF TAKING RAW MATERIALS & TURNING THEM INTO PRODUCTS THAT SATISFY CUSTOMER DEMAND. # AN OPERATION MAY BE DEFINED AS THE PROCESS OF CHANGING INPUTS INTO OUTPUTS THEREBY ADDING VALUE TO SOME ENTITY. THE VALUE IS ADDED TO THE ENTITY BY ONE OR MORE OF THE FOLLOWING WAYS :1. ALTERATION---IT REFERS TO THE CHANGE IN FORM OR STATE OF INPUTS. SUCH A CHANGE MAY BE PHYSICAL , AS IN ANY MACHINE SHOP / PRESS SHOP / ASSEMBLY SHOP OPERATION OR PSYCHOLOGICAL AS THE FEELING OF COMFORT AFTER GETTING CURED FROM ILLNESS. 2. TRANSPORTATION-----REFERS TO THE MOVEMENT OF THE ENTITY FROM ONE PLACE TO ANOTHER. THE ENTITY HAS MORE VALUE IF IT IS LOCATED AT SOMEWHERE OTHER THAN WHERE IT CURRENTLY IS. 3. STORAGE-----REFERS TO THE PROCESS OF KEEPING AN ENTITY IN A PROTECTED ENVIRONMENT FOR SOME PERIOD OF TIME. 4. INSPECTION-----REFERS TO THE PROCESS OF VERIFICATION OF ENTITY FOR ITS PROPERTIES & THEREBY TAKING MORE INFORMED DECISIONS CONCERNING THEIR PURCHASE, USE, REPAIR etc. # SINCE ALTERNATION, TRANSPORTATION, STORAGE & INSPECTION ADD VALUE, ORGS SUCH AS MANUFACTURING, TRANSPORTATION, WAREHOUSING, HEALTH-

CARE, EDN, etc. COME WITHIN THE PREVIEW OF OPERATIONS ( OR PRODUCTION ) MANAGEMENT # OPERATIONS MANAGERS SEE EVERY ORG AS MAKING A PRODUCT. THIS PRODUCT CAN BE THE TANGIBLE GOODS MADE BY A MANUFACTURER OR THE INTANGIBLE SERVICES GIVEN BY A SERVICE COY. FROM AN OPERATIONS VIEWPOINT, THE INTANGIBLE SERVICES GIVEN BY AN INSURANCE COY ARE THEIR PRODUCTS, IN EXACTLY THE SAME WAY AS WASHING MACHINES ARE THE PRODUCTS OF OTHER COYS. # IN REALITY, ALMOST EVERY PRODUCT IS A COMBINATION OF GOODS & SERVICES. FORD IS CLEARLY A MANUFACTURER OF CARS, BUT ITS PRODUCTS INCLUDE WARRANTIES, FINANCE OPTIONS & A RANGE OF OTHER SERVICES. # OPERATIONS & PRODUCTS : AT THE HEART OF EVERY ORG ARE THE ACTVITIES THAT MAKE ITS PRODUCTS. THESE ACTIVITIES ARE THE OPERATIONS. OPERATIONS DESCRIBE WHAT THE ORG DOES. OPERATIONS AT DELL MAKE COMPUTERS, OPERATIONS AT AIR INDIA FLY PASSENGERS, AT TIMES OF INDIA THEY PUBLISH DAILIES & PERIODICALS etc. # A COMMON VIEW OF OPERATIONS IS THAT THEY TAKE A NUMBER OF INPUTS & TRASFORM THEM INTO PRODUCTS :[ INPUTS ]>>>>>>>>>>>>[ OPERATIONS ]>>>>>>>>>>>>>[ OUTPUTS ] PEOPLE FACILITIES MATERIALS EQUIPMENT INFORMATION CAPITAL MANAGEMENT MANUFACTURE CONVERSION PROCESS SERVICE SUPPLY TRANSPORT GOODS SERVICES SECONDARY OUTPUTS

# EVERY THAT YOU OWN, USE, BUY OR BORROW IS A PRODUCT OF SOME ORG & IT HAS BEEN MADE BY THE OPERATIONS. THESE OPERATIONS MANUFACTURE, SERVE, TRANSPORT, SELL & DO EVERYTHING NEEDED TO SUPPLY THE PRODUCTS. THE PEOPLE WHO ARE RESPONSIBLE FOR THESE OPERATIONS ARE THE OPERATIONS MANAGERS. THE TITLES VARY FROM ORG TO ORG. # WHEN TAKEN TOGETHER, ALL THE OPERATIONS THAT MAKE A PARTICULAR PRODUCT FORM ITS PROCESS. THE PROCESS STARTS WITH THE COLLECTION OF INPUTS FROM INITIAL SUPPLIERS & ENDS WITH THE DELIVERY OF FINISHED PRODUCTS TO CUSTOMERS. THIS CAN BE PRESENTED AS--CUSTOMER>>>>>>CREATE>>>>>DEMAND>>>WHICH PASSES TO >>>>>>OPERATIONS>>>>>WHO USE >>>>>PROCESS >>>>>TO MAKE>>>>>PRODUCTS>>>>>>TO SATISFY>>>CUSTOMER

# THE AIM OF EVERY ORG IS TO MAKE A PRODUCT THAT SATISFIES CUSTOMER DEMAND. TO BE SUCCESSFUL, A PRODUCT MUST HAVE FEATURES THAT CUSTOMERS PREFER SO THAT THEY BUY THIS PRODUCT IN PREFERENCE TO OTHERS. THE FEATURES OF A PRODUCT DEPEND ON THE PROCESS USED TO MAKE IT, SO THIS PROCESS MUST BE APPROPRIATE, EFFECTIVE & EFFICIENT. # THUS WE CAN SUMMERISE THIS VIEW OF OPERATIONS MANAGEMENT AS FOLLOWS :1. A PRODUCT IS ANY COMBINATION OF GOODS & SERVICES THAT AN ORG SUPPLIES. 2. THE AIM OF THE PRODUCT IS TO SATISFY CUSTOMER DEMAND. 3. TAKEN TOGETHER, THE OPERATIONS FORM A PROCESS THAT MAKES THE PRODUCT. 4. OPERATIONS MANAGERS ARE RESPONSIBLE FOR ALL ASPECTS OF THIS PROCESS. 5. OPERATIONS MANAGERS ORGANIZE RESOURCES SO THAT THE PROCESS IS AS EFFECTIVE & EFFICIENT AS POSSIBLE. FUNCTIONS OF PRODUCTION MANAGER # A PRODUCTION MANAGER WILL BE DISCHARGING HIS /HER DUTIES TO ACHIEVE ORG OBJECTIVE / S IN A MOST EFFICIENT & EFFECTIVE MANNER. THIS IS POSSIBLE IF WE HAVE GOOD ORG. WE, THEREFORE, NOW UNDERSTAND THE BASIC PRINCIPLES OF A GOOD ORG WHICH ARE :1. ORG SHOULD BE SETUP IN ACCORDANCE WITH THE OBJECTIVES IT HAS TO ACHIEVE. 2. ORG MUST HAVE DEPTS & STRUCTURAL ARRAANGEMENTS SET UP IN A LOGICL MANNER, THAT IS :(a) AL ACTIVITIES RELATED TO EACH OTHER SHOULD BE GROUPED TOGETHER UNDER ONE DEPT. (b) ACTIVITIES MAY BE GROUPED PRODUCT WISE, CUSTOMER WISE, FACILITIES WISE OR USING ANY OTHER CRITERION. (c) DEPTS SHOULD BE SEPERATED FROM EACH OTHER BASED ON THEIR NATURAL BREAK THAT IS CLEAR DEMARKATION OF ACTIVITIES. 3. A GP OF INTER-RELATED TASKS OR ACTIVITIES ( DEPTS ) MUST BE UNDER CONTROL OF ONE PERSON ONLY ( PRINCIPLE OF UNITY OF DIRECTION ) 4. EACH MEMBER OF AN ORG MUST RECEIVE DIRECTIONS, INSTRUCTIONS & ORDERS ONLY FROM ONE SUPERIOR & SHOULD BE ANSWERABLE TO ONE SUPERIOR ( PRINCIPLE OF UNITY OF COMMAND ). 5. AUTHORITY & RESPONSIBILITY MUST BE PROPERLY BALANCED & DELEGATED---- THAT IS IF AUTHORITY IS FAR GREATER THAN RESPONSIBILITY, IT IS LIKELY TO BE MISUSED BY THE CONCERNED. ALSO, IF RESPONSIBILITY IS FAR GREATER THAN THE AUTHRITY, THE MANAGER WILL NOT BE ABLE TO GET THE WORK DONE FROM HIS SUBORDINATES. BY DELEGATING AUTHORITY WE GENERATE EMPOWERMENT.

6. SPAN OF MANAGEMENT OR SPAN OF CONTROL OR SPAN OF SUPERVISION MUST BE APPROPRIATELY FIXED DEPENDING UPON THE NATURE OF WORK, TYPE OF PEOPLE & THE EXTENT TO WHICH WORK NEEDS TO BE SUPERVISED. # RESPONSIBILITIES OR FUNCTIONS OF PRODUCTION MANAGER -----1. TO FORECAST THE REQUIREMENTS OF FACTORS OF PRODUCTIONS TO MEET TARGET OF PRODUCTION e.g. QUANTITIES, PERIODICAL TARGETS, MATERIAL, HR, SUPPORT FROM OTHER DEPTS etc. 2. TO UTILISE THE FACTORS OF PRODUCTION IN THE MOST EFFICIENT MANNER. 3. TO REDUCE QUALITY COSTS BY PERIODICAL ANALYSIS OF NONCONFORMANCES & UNDERTAKING SUITABLE CORRECTIVE & PREVENTIVE ACTIONS. 4. TO REDUCE MATERIAL HANDLING COSTS BY USING EFFICIENT MATERIAL HANDLING SYSTEMS & CORRECTLY DEVELOPED PLANT LAYOUT. 5. TO DEVISE EFFICIENT METHODS OF MANUFACTURING BASED ON METHOD STUDY & OTHER ENGINEERING ECONOMIC PRINCIPLES. 6. TO CONTINUALLY IMPROVE LABOUR PRODUCTIVITY BY TRG OF WORKMEN & IMPLEMENTING PERFORMANCE STANDARDS DERIVED FROM WORK MEASUREMENT STUDIES etc. 7. TO MINIMISE THROUGHPUT TIME & WORK-IN-PROCESS INVENTORY BY SYSTEMATIC PLANNING OF PRODUCTION & EFFICIENT EXECUTION OF PLANS. 8. TO BUILD TEAM SPIRIT & MOTIVATE WORKMEN BY PERSONAL INVOLVEMENT & BY DESIGNING & IMPLEMENTING SUITABLE FINANCIAL INCENTIVE SCHEMES. 9. COORDINATION WITH OTHER DEPTS, BOTH VERTICALLY & HORIZONTALLY. # QUALITIES OF PRODUCTION MANAGERTHE FOLLOWING QUALITIES ARE DESIRED IN A GOOD PRODUCTION MANAGER :1. INTELLIGENCE---TO ENSURE OPTIMUM UTILISATION OF RESOURCES. 2. ENTHUSIASM & PERSEVERANCE ( MEANS TO CONTINUE IN A COURSE OF ACTION IN SPITE OF DIFFICULTY OR LACK OF SUCCESS. ) 3. IMAGINATION OR ANTICIPATION. 4. RESOURCEFULNESS. 5. SELF CONTROL 6. SYMPATHY. 7. COMMUNICATION ABILITY. 8. FLEXIBILITY 9. DECCISIVE 10. SHOULD MANAGE Jrs INSTEAD OF WORK. 11. EFFECTIVE COORDINATION 12. SHOULD BE ABLE TO PLAN & ORGANISE EFFECTIVELY. # MOST OF ORGS ACTUALLY FACE A RANGE OF PROBLEMS. THEY HAVE TO DESIGN PRODUCTS THAT CUSTOMERS WANT, FORECAST DEMAND FOR THESE

PRODUCTS, PLAN THEIR CAPACITY, CONTROL STOCKS, DISTRIBUTE PRODUCTS & SO ON. TYPICAL QUESTIONS FACED BY OPERATIONS MANAGERS INCLUDE :1. WHAT PRODUCTS DO WE WANT ? 2. WHAT TYPE OF PROCESS DO WE USE TO MAKE THEM ? 3. HOW CAN WE BEST ORGANIZE OUR RESOURCES IN THE PROCESS ? 4. HOW CAN WE FORECAST DEMAND & SET PRODUCTION LEVELS ? 5. HOW DO WE GUARANTEE HIGH QUALITY ? 6. WHERE DO WE LOCATE THE OPERATIONS ? 7. HOW DO WE ORGANIZE THE FLOW OF MATERIALS THROUGH THE PROCESS? 8. WHO DO WE EMPLOY & WHAT SKILLS DO THEY NEED ? 9. WHO ARE THE BEST SUPPLIERS FOR MATERIALS ? 10. HOW DO WE ORGANISE DISTRIBUTION TO CUSTOMERS ? # THE AIM OF OPERATIONS MANAGERS IS TO FIND THE BEST ANSWERS TO THESE & A RANGE OF RELATED QUESTIONS. OBJECTIVES OF PRODUCTION OR OPERATIONS MANAGEMENT # RIGHT QUALITY, RIGHT QUANTITY, RIGHT TIME & RIGHT PRICE ARE THE FOUR BASIC REQUIREMENTS OF THE CUSTOMERS & AS SUCH THEY DETERMINE THE EXTENT OF CUSTOMER SATISFACTION. AND IF THESE CAN BE PROVIDED AT A MINIMUM COST, THEN THE VALUE OF GOODS PRODUCED OR SERVICES RENDERED INCREASES. # THUS THE OBJECTIVES OF PRODUCTION MANAGEMENT ARE TO PRODUCE GOODS & SERVICES OF THE RIGHT QUALITY, IN THE RIGHT QUANTITIES, ACCORDING TO THE TIME SCHEDULE & AT A MINIMUM COST # OBJECTIVES OF PRODUCTION OR OPERATIONS MANAGEMENT MAY BE AMPLIFIED AS UNDER :1. EFFECTIVENESS OBJECTIVES---PRODUCING THE RIGHT KIND OF GOODS & SERVICES THAT SATISFY CUSTOMERS NEEDS. 2. EFFICIENCY OBJECTIVES-----MAXIMISING OUTPUT OF GOODS & SERVICES WITH MINIMUM RESOURCE INPUTS. 3. QUALITY OBJECTIVES-----ENSURING THAT GOODS & SERVICES PRODUCED CONFORM TO PRE-SET QUALITY SPECIFICATIONS. 4. LEAD TIME OBJECTIVES--- MINIMISING THROUGHPUT TIME---THE TIME THAT ELAPSES IN THE CONVERSION PROCESS, BY REDUCING DELAYS, WAITING TIME & IDLE TIME. 5. CAPACITY UTILISATION OBJECTIVES---MAXIMISING UTILISATION OF MANPOWER, MACHINES etc. AND 6. COST OBJECTIVEMINIMISING COST OF PRODUCING GOODS OR SERVICE. FUNCTIONS OF MANUFACTURING OR PRODUCTION OR OPERATIONS MANAGEMENT # FUNCTION CAN BE DEFINED AS THAT PROPERTY OF THE PRODUCTION WHICH MAKES IT WORK OR SELL.

# PRODUCTION OR OPERATIONS MANAGEMENT IS ESSENTIALLY PLANNING, ORGANISING & CONTROLLING OF PRODUCTION FUNCTION. MANAGEMENT OF PRODUCTION CAN BE DESCRIBED IN TERMS OF CERTAIN COMPONENTS AS UNDER :SR 1. ASPECTS OF MANAGEMENT PLANNINGPLANNING THE CONVERSION PROCESS &PLANNING THE USE OF CONVERSION PROCESS. COMPONENTS OF THE PRODUCTION FUNCTION # PRODUCT SELECTION & DESIGN. #PROCESS SELECTION & PLANNING # FACILITY LOCATION. #FACILITY LAYOUT & MATERIALS HANDLING. # CAPACITY PLANNING. # FORECASTING. & PRODUCTION PLANNING. # WORK STUDY & JOB DESIGN. # # # # # PRODUCTION CONTROL. INVENTORY ( OR STOCK ) CONTROL. QUALITY CONTROL. MAINTENANCE & REPLACEMENT. AND COST REDUCTION & COST CONTROL.

2. 3.

ORGANISING---ORGANISING FOR CONVERSION. CONTROLLING--CONTROLLING THE CONVERSION PROCESS.

# PRODUCT SELECTION & DESIGN---THE RIGHT KIND OF PRODUCT & GOOD DESIGN OF THE PRODUCTS ARE CRUCIAL FOR THE SUCCESS OF AN ORG. PRODUCTS / SERVICES, THEREFORE, MUST BE CHOSEN AFTER DETAILED EVALUATION OF THE PRODUCT / SERVICES ALTERNATIVES IN CONFORMITY WITH THE ORGS OBJECTIVES. TECHNIQUES LIKE VALUE ENGINEERING MAY BE EMPLOYED IN CREATING ALTERNATE DESIGNS WHICH ARE FREE FROM UNNECESSARY FEATURES AT THE LOWEST COST. # VALUE ENGINEERING ALSO KNOWN AS VALUE ANALYSIS IS AN EFFECTIVE COST-REDUCTION DISCIPLINE IN DEFENCE, SPACE & CONSUMER PRODUCTS INDUSTRIES. VALUE ENGINEERING IS DEFINED AS, AN ORGANISED EFFORT DIRECTED AT ANALYSING THE FUNCTIONS OF GOODS OR SERVICES FOR THE PURPOSE OF ACHIEVING THE NECESSARY FUNCTIONS & ESSENTIAL CHARACTERISTICS AT THE LOWEST COST, CONSISTENT WITH THE BUSINESS OBJECTIVES. # PROCESS SELECTION & PLANNING--- THE PROCESS CONSISTS OF ALL THE OPERATIONS USED TO MAKE A PRODUCT. IT IS THE SET OF RELATED ACTIVITIES THAT COMBINE TO GIVE A SPECIFIC RESULT THAT CUSTOMERS WANT. THE STRUCTURE OF THE PROCESS DESCRIBES THE RELATION BETWEEN DIFFERENT OPERATIONS. # PROCESS SELECTION DECISIONS INCLUDE DECISIONS CONCERNING CHOICE OF TECHNOLOGY, EQUIPMENT, MACHINES, MATERIAL HANDLING SYSTEMS, MECHANISATION & AUTOMATION.

# PROCESS PLANNING ENSURES THAT THE BEST PROCESS IS USED, & THAT IT IS ORGANISED AS EFFECTIVELY & EFFICIENTLY AS POSSIBLE. PROCESS PLANNING INVOLVES DETAILING PROCESS OF RESOURCE CONVERSION REQUIRED & THEIR SEQUENCE. # FACILITY LOCATION -----OR PLANT LOCATION DECISIONS ARE STRATEGIC DECISIONS & ONCE PLANT IS SET UP AT A LOCATION, IT IS COMPARATIVELY IMMOBILE & CAN BE SHIFTED LATER ONLY AT A CONSIDERABLE COST & INTERRUPTION OF PRODUCTION. HENCE THE IMPORTANCE OF AVALABILITY OF ESSENTIAL INFRASTRUCTURE TO LOCATE A PLANT OR FACILITY. THIS REQUIRES COORDINATION BY OWNERS, LOCALS, GOVT & OTHER INTERESTED PARTIES. # FACILITIES ( PLANT ) LAYOUT & MATERIALS HANDLING--- ---FACILITY LAYOUT IS THE PHYSICAL ARRANGEMENT OF EQUIPMENT, OFFICES, ROOMS, & OTHER RESOURCES WITHIN AN ORG. IT DESCRIBES THE LOCATION OF RESOURCES & THEIR RELATIONSHIP TO EACH OTHER. LAYOUT PLANNING AIMS TO ORGANISE THE PHYSICAL ARRANGEMENT OF FACILITIES SO THAT OPERATIONS RUN AS EFFICIENTLY AS POSSIBLE. # A GOOD LAYOUT REDUCES MATERIAL HANDLING COST, ELIMINATES DELAYS & CONGESTION, IMPROVES CO-ORDINATION, PROVIDES GOOD HOUSEKEEPING etc. # CAPACITY PLANNING----THE CAPACITY OF A PROCESS SETS THE MAX AMOUNT OF A PRODUCT THAT CAN BE MADE IN A GIVEN TIME. THE AIM OF CAPACITY PLANNING IS TO MAKE SURE THAT THERE IS ENOUGH USABLE CAPACITY TO MEET DEMAND OVER THE LONG, MEDIUM & SHORT TERM. # CAPACITY PLANNING CONCERNS DETERMINATION & ACQUISITION OF PRODUCTIVE RESOURCES TO ENSURE THAT THEIR AVAILABILITY MATCHES THE DEMAND. EXCESS CAPACITY RESULTS IN LOW RESOURCE PRODUCTIVITY WHILE INADEQUATE CAPACITY LEADS TO POOR CUSTOMER SERVICE. # PRODUCTION PLANNING & CONTROL ( PPC )-----IT IS A BROAD TERM USED TO DESCRIBE THE MANAGEMENT FUNCTION OF ESTABLISHING LEVELS OR LIMITS OF MANUFACTURING OPERATIONS APPLICABLE TO SOME FUTURE TIME PERIOD. MANUFACTURING RESOURCE PLANNING IS A NEWER TERM. # PRODUCTION PLANNING IS THE SYSTEM FOR SPECIFYING THE PRODUCTION PROCEDURE TO OBTAIN THE DESIRED OUTPUT IN A GIVEN TIME AT OPTIMUM COST IN CONFORMANCE WITH SPECIFIED STANDARD OF QUALITY. HERE CONTROL IS ESSENTIAL TO ENSURE THAT MANUFACTURING TAKES PLACE IN THE MANNER STATED IN THE PLAN.

# PRODUCTION PLANNING IS A PRE-PRODUCTION ACTIVITY ASSOCIATED WITH :-

1. 2. 3. 4. 5.

TO DETERMINE OPTIMAL PRODUCTION SCHEDULE. SEQUENCE OF OPERATIONS. ECONOMIC BATCH QUANTITY. OPTIMAL JOB MACHINE ASSIGNMENT. AND DESPATCHING PRIORITIES FOR SEQUENCING OF JOBS.

# PRODUCTION CONTROL IS A COMPLEMENTARY ACTIVITY TO PRODUCTION PLANNING & IT INVOLVES KEEPING TRACK OF WHAT IS HAPPENING & TAKING REMEDIAL ACTION WHEN THE PROGRESS IS BEHIND SCHEDULE. # PRODUCTION CONTROL IS THE PURPOSEFUL CONCENTRATION OF RESPONSIBILITY & AUTHORITY FOR THE CONTROL OF ALL ACTIVITY LEADING UP TO THE PRODUCTION & EVENTUAL SHIPMENT OF THE FINISHED PRODUCT. # INVENTORY CONTROL--- AN INVENTORY IS ACTUALLY A LIST OF ITEMS HELD IN STOCK. INVENTORY CONTROL DEALS WITH DETERMINATION OF OPTIMAL INVENTORY LEVELS OF RAW MATERIALS, COMPONENTS, PARTS, TOOLS, FINISHED GOODS & SUPPLIES TO ENSURE THEIR AVAILABILITY WITH MINIMUM CAPITAL LOCK UP. MATERIAL REQUIREMENT PLANNING ( MRP ) & JUST-IN-TIME (JIT ) ARE THE LATEST TECHNIQUES THAT CAN HELP THE FIRM TO REDUCE INVENTORY. # QUALITY ASSURANCE & CONTROL-----THE OXFORD DICTIONARY DEFINITION OF QUALITY IS, DEGREE OF EXCELLENCE, RELATIVE NATURE OR KIND OR CHARACTER, GENERAL EXCELLENCE. QUALITY IS MEETING THE NEGOTIATED REQUIREMENTS & EXPECTATIONS OF THE CUSTOMER. # QUALITY MUST ENSURE THAT SERVICES & PRODUCTS PRODUCED BY THE COY CONFORM TO THE DECLARED QUALITY STANDARDS AT THE MINIMUM COST. A QUALITY ASSURANCE SYSTEM INCLUDES SUCH ASPECTS AS SETTING STANDARDS OF QUALITY, INSPECTION OF PURCHASED & SUB-CONTRATED PARTS, CONTROL OF QUALITY DURING MANUFACTURE & INSPECTION OF FINISHED PRODUCT INCLUDING PERFORMANCE TESTING etc. # WORK STUDY & JOB DESIGN-----WORK STUDY, ALSO CALLED TIME & MOTION STUDY, IS CONCERNED WITH IMPROVEMENT OF PRODUCTIVITY IN THE EXISTING JOBS & THE MAXIMINATION OF PRODUCTIVITY IN THE DESIGN OF NEW JOBS. METHOD STUDY & WORK MEASUREMENT ARE THE TWO PRINCIPAL COMPONENTS OF WORK STUDY. # METHOD STUDY----- IT HAS BEEN DEFINED ( BS 3138 ) AS THE SYSTEMATIC RECORDING & CRITICAL EXAMINATION OF THE EXISTING & PROPOSED WAYS OF DOING WORK, AS A MEANS OF DEVELOPING & APPLYING EASIER & MORE EFFECTIVE METHODS & REDUCING COSTS. METHOD STUDY WHEN APPLIED TO PRODUCTION METHODS YIELDS ONE OR MORE OF THE FOLLOWING BENEFITS :1. IMPROVED WORK ENVIRONMENT. 2. IMPROVED FACILITY LAYOUT.

3. 4. 5. 6. 7. 8.

BETTER UTILISATION OF FACILITIES. GREATER SAFETY. LESSER MATERIALS HANDLING. SMOOTH PRODUCTION FLOW. LOWER WORK-IN-PROCESS. AND HIGHER EARNINGS FOR THE WORKMEN.

# WORK MEASUREMENT---- IT IS DEFINED ( BS 3138 ) AS THE APPLICATION OF TECHNIQUES DESIGNED TO ESTABLISH THE TIME FOR A QUALIFIED WORKER TO CARRY OUT A SPECIFIED JOB UNDER SPECIFIED CONDITIONS & AT A DEFINED LEVEL OF PERFORMANCE. SINCE THE CORRECT STANDARDS OF PERFORMANCE CAN BE SET APPROPRIATELY ONLY AFTER THE WORK METHOD HAS BEEN STANDARDISED, METHOD STUDY SHOULD PRECEED WORK MEASUREMENT THAT IS WORK MEASUREMENT FOLLOWS METHOD STUDY. SCIENTIFIC WORK MEASUREMENTS HAVE MANY USES, SOME OF WHICH ARE :1. 2. 3. 4. 5. 6. 7. MANPOWER PLANNING. PRODUCTION SCHEDULING. COST ESTIMATING. COST REDUCTION & COST CONTROL. FINANCIAL INCENTIVES. MANUFACTURING PROCESS SELECTION. AND MEASURING EMPLOYEES PROGRESS.

# MAINTENANCE & REPLACEMENT----- THIS INVOLVES SELECTION OF OPTIMAL MAINTENANCE ( PREVENTIVE & OR BREAKDOWN ) POLICY TO ENSURE HIGHER EQPT AVAILABILITY AT MINIMUM MAINTENANCE & REPAIR COST. # REPLACEMENT DECISIONS CONCERNING MACHINES ARE BASICALLY FINANCIAL INVESTMENT DECISIONS BUT HAVE A MAJOR INFLUENCE ON THE EFFICIENCY OF THE PRODUCTION SYSTEM. OTHER TYPES OF REPLACEMENT DECISIONS CONCERN PARTS OF MACHINES & MOST COMMON PROBLEM IS TO DECIDE BETWEEN THEIR INDIVIDUAL REPLACEMENT & GP REPLACEMENT # COST REDUCTION & COST CONTROL------EFFECTIVE PRODUCTION MANAGEMENT MUST ENSURE MINIMUM COST OF PRODUCTION & IN THIS CONTEXT COST REDUCTION & COST CONTROL ACQQUIRES SIGNIFICANT IMPORTANCE. SUMMARY 1. HISTORY & DEVELOPMENT OF MANUFACTURING MANAGEMENT IN GENERAL. 2. CONTRIBUTIONS TOWARDS MM. 3. CONTRIBUTIONS BY F.W. TAYLOR & GILBRETHS. 4.NATURE, SCOPE & FUNCTIONS OF MM. 6. OBJECTIVES OF PRODUCTION MANAGEMENT AND 7. FUNCTIONS OF PM /OM.

TYPES OF PRODUCTION SYSTEMS

# PRODUCTION IS A CONVERSION FUNCTION BY WHICH GOODS & SERVICES ARE PRODUCED---THAT IS A PRODUCTION SYATEM COMPRISES OF THREE MAIN COMPONENTS--1. INPUTS----HR, MATERIALS, MACHINES, INSTRUCTIONS, DRAWINGS etc. 2. TRANSFORMATION PROCESS----OPERATIONS, MECHANICAL OR CHEMICAL, TO CHANGE / CONVERT INPUTS INTO OUTPUTS. IT INCLUDES ACTIVITIES THAT ASSIST CONVERSION. SUCH AS ---(a) PLANNING & CONTROL OF FACTORS OF PRODUCTION. (b) PROCUREMENT OF MATERIALS. (c) RECEIPT, STORAGE & ISSUE OF MATERIALS. (d) MATERIAL HANDLING THAT IS TO MOVE MATERIALS TO THE POINT OF USE. (e) INSPECTION OF IN-PROCESS & PARTS. (f) ASSEMBLY & TESTING OF PRODUCTS. (g) STORAGE OF FINISHED GOODS. (h) INSTRUCTIONS, AUTHORISATION, INSPECTION, INFO, STORAGE / RETRIEVEL etc. 3. OUTPUTS----GOODS & SERVICES # THE COMBINATION OF OPERATIONS & ACTIVITIES EMPLOYED TO CREATE GOODS & SERVICES IS KNOWN AS MANUFACTURING OR PRODUCTION SYSTEM OR METHOD. THE SELECTION OF THESE SYSTEMS IS A STRATEGIC DECISION FOR MOST ORGS AS CHANGES ARE CONTINIOUS. IT IS, THEREFORE, VERY ESSENTIAL THE SYSTEM /S SELECTED SHOULD BE SUCH THAT FUTURE NEEDS ARE TAKEN INTO ACCOUNT. # FACTORS INFLUENCING CHOICE OF PRODUCTION SYSTEM ARE :1. EFFECT OF VOLUME / VARIETY.----MANY PRODUCTS IN ONE OR FEW NUMBERS AND ONE OR FEW PRODUCTS IN LARGE VOLUME. 2.CAPACITY OF THE PLANT. 3.FLEXIBILITYIT IMPLIES THE ABILITY OF THE COY TO SATISFY VARIED CUSTOMERS REQUIREMENTS. 4. LEAD TIME 5. EFFICIENCY. 6. ENVIRONMENT -----NEW TECHNOLOGIES, MATERIALS, MARKET, COMPETITION. TYPES OF PRODUCTION SYSTEMS # THESE SYATEMS CAN BASICALLY BE CLASSIFIED INTO FIVE SYSTEMS :1. PROJECT PRODUCTION. 2. JOBBING PRODUCTION. 3. BATCH PRODUCTION. 4. MASS & FLOW PRODUCTION. AND 5. PROCESS PRODUCTION. PROJECT PRODUCTION

# PROJECT PRODUCTION IS CHARACTERISED BY SETS OF ACTIVITIES THAT MUST BE PERFORMED IN A PARTICULAR ORDER WITHIN THE GIVEN PERIOD & WITHIN THE ESTIMATED EXPENDURE. OUTPUT OF A PROJECT IS A PRODUCT & SUCH PRODUCTS ARE GENERALLY CHARACTERISED BY IMMOBILITY DURING TRANSFORMATION. OPERATIONS OF SUCH NATURE ARE CARRIED OUT IN FIXED POSITION ASSEMBLY TYPE OF LAYOUT WHICH CAN BE OBSERVED IN PRODUCTION OF SHIPS, LOCOMOTIVES & AIRCRAFTS, CONSTRUCTION OF ROADS, BUOLDINGS etc. # CHARACTERISTICS OF PROJECT PRODUCTION :1. DEFINITE BEGINNING & DEFINITE END. 2. NON-UNIFORM REQUIREMENTS OF RESOURCES. 3. INVOLVEMENT OF DIFFERENT AGENCIES. 4. FIXED POSITION LAYOUT. 5. HIGH COST OVERRUNSDUE TO DELAYS, ESCALATION OF PRICES LEADING TO PENALITIES. 6. PERSONNEL PROBLEMS---EMPLOYMENT FOR THE PROJECT & HENCE WORRY FOR THE FUTURE, LOCATION OF THE PROJECT, COMMITMENT OF EMPLOYEES etc. 7. SCHEDULING & CONTROLLING---BECAUSE OF LARGE NUMBER OF ACTIVITIES, DIFFERENT AGENCIES & INTERFACING OF ACTIVITIES WITHIN A SUB-PROJECT. JOB PRODUCTION # A JOB CONSISTS OF A RELATED SET OF TASKS THAT ARE CARRIED OUT BY A PERSON TO FULFIL A PURPOSE. IT CAN BE REGARDED AS A UNIT IN AN ORG STRUCTURE THAT REMAINS UNCHANGED WHOEVER IS IN THE JOB. # JOBBING PRODUCTION IS CHARACTERISED BY THE MANUFACTURE OF ONE OR FEW NUMBERS OF A SINGLE PRODUCT DESIGNED & MANUFACTURED STRICTLY TO CUSTOMERS SPECIFICATION, WITHIN THE GIVEN PERIOD & WITHIN THE PRICE FIXED PRIOR TO THE CONTRACT. # CHARACTERISTICS OF JOBBING PRODUCTION :1. 2. 3. 4. 5. 6. 7. 8. SMALL PRODUCTION RUNS. DISCONTINUOUS FLOW OF MATERIALS. DISAPPROPRIATE MANUFACTURING CYCLE TIME. GENERAL PURPOSE MACHINES & PROCESS LAYOUT. HIGHLY SKILLED LABOUR. HIGHLY COMPETENT KNOWLEGEABLE SURPERVISION. LARGE WORK IN PROGRESS. LIMITED FUNCTIONS OF PRODUCTION PLANNING & CONTROL.

BATCH PRODUCTION

# BATCH PRODUCTION IS CHARACTERISED BY THE MANUFACTURE OF A LIMITED NUMBER OF A PRODUCT ( BUT MANY SUCH QUANTITIES OF DIFFERENT PRODUCTS ) PRODUCED AT PERIODICAL INTERVALS & STOCKED IN WAREHOUSES AS FINISHED GOODS OR FINISHED PARTS AWAITING SALES OR WITHDRAWAL FOR ASSEMBLY. EXAMPLES---PAINTS, CHEMICALS, ELECTIC MOTORS, SWITCH GEARS, MOTOR VEHS, READY MADE GARMENTS eyc. # CHARACTERISTICS OF BATCH PRODUCTION--1. SHORT RUNS----SHORT PRODUCTION RUNS THAT IS ACTIVITIES ARE LIMITED & FOR SMALL PERIOD AS FREQUENT CHANGES OF SET UP TAKE PLACE. 2. SKILLED LABOUR IN SPECIFIC TRADES----THE LABOUR FORCE IS EXPECTED TO POSSESS SKILL IN ONE SPECIFIC MANUFACTURING PROCESS LIKE TURNING, MILLING, WELDING etc. 3. SUPERVISOR TO POSSESS KNOWLEDGE OF A SPECIFIC PROCESS. 4. LIMITED SPAN OF CONTROL----AS THE PRODUCTION IS IN SMALLER LOTS, IT REQUIRES SUPERVISORS TO SPEND MORE TIME IN ALLOCATING NEW WORK, GIVING INSTRUCTIONS, FOLLOW UP ON THE SHOP FLOOR etc. 5. GENERAL PURPOSE MACHINES & PROCESS TYPE OF LAYOUT----SIMILAR MACHINES CAPABLE OF DOING SIMILAR TYPES OF OPERATIONS ARE GROUPED TOGETHER & KEPT AT ONE PLACE. EACH GP OF MACHINES IS USUALLY DESIGNATED AS A WORK CENTRE OR A SECTION OR A SHOP. GENERAL PURPOSE MACHINES & HANDLING EQPT ARE THOSE WHICH PERFORM VARIETY OF OPERATIONS WITH MINIMUM SET-UP TIMES. 6. MANUAL MATERIALS HANDLING----MATERIAL BEING SMALL, DONE MANUALLY. 7. MANUFACTURING CYCLE TIME AFFECTED DUE TO QUEUES---DUE TO DIFFERENT CYCLE TIMES, BATCH SIZES & SEQUENCE OF OPERATIONS. 8. LARGE WORK-IN-PROGRESS-----DUE TO DIFFERENT COMPONENTS, IMBALANCES IN MANUFACTURING TIMES, QUEUEING BETWEEN MACHINES. 9. FLEXIBILITY OF PRODUCTION SCHEDULETO CATER FOR MACHINE BREAKDOWNS OR ABSENTEEISM. 10. NEED TO HAVE PRODUCTION PLANNING & CONTROL TO AVOID LIMITATIONS OF THE SYSTEM. MASS & FLOW PRODUCTION # THIS IS CHARACTERISED BY THE MANUFACTURE OF A SEVERAL NUMBER OF A STANDARD PRODUCTS PRODUCED & STOCKED IN THE WAREHOUSES AS FINISHED GOODS AWAITING SALES. # THE GOODS UNDER MASS PRODUCTION ARE MANUFACTURED EITHER AT A SINGLE OPERATION OR A SERIES OF OPERATIONS ON ONE MACHINE. # GOODS UNDER FLOW PRODUCTION ARE MANUFACTURED BY A SERIES OF OPERATIONS ON DIFFERENT MACHINES, ARRANGED AS PER SEQUENCE OF OPERATIONS. # CHARACTERSTICS OF MASS & FLOW PRODUCTION :-

1. CONTNUOUS FLOW OF MATERIAL.---NO QUEUING 2. SPECIAL PURPOSE MACHINES & PRODUCT TYPE LAYOUT---LAY OUT BY SEQUENCE. 3. MECHANISED MATERIAL HANDLING 4. LOW SKILLED LABOUR---REPEATATION OF PRODUCT. 5. SHORT MANUFACTURING CYLCE TIME. 6. EASY SUPERVISION. 7. LIMITED WORK-IN-PROGRESS. 8. LESSER FLEXIBILITY IN PRODUCTION SCHEDULES.----INTERRUPTIONS DUE TO BREAKDOWNS & ABSENTEEISM SERIOUSLY AFFECT PRODUCTION AS STOPPAGE OF ONE MACHINE USUALLY DISTURBS THE WORKING OF OTHER MACHINES HENCE HIGH DEGREE OF MAINTENANCE. PROCESS PRODUCTION # THIS IS CHARACTERISED BY THE MANUFACTURE OF A SINGLE PRODUCT PRODUCED & STOCKED IN THE WAREHOUSE AWAITING SALES. THE FLEXIBILITY OF SUCH PLANTS IS ALMOST ZERO AS ONLY ONE TYPE OF PRODUCT CAN BE PRODUCED IN SUCH PLANTS----SUGAR, CEMENT, PAPER, COKE etc. # CHARACTRISTICS OF PROCESS PRODUCTION :1. 2. 3. 4. 5. 6. 7. 8. SPECIAL PURPOSE MACHINES WITH BUILT-IN CONTROLS. HIGHLY MECHANISED MATERIALS HANDLING. VIRTUALLY ZERO MANUFACTURING CYCLE TIME. LOW SKILLED LABOUR. SUPERVISORS TO BE PROCESS SPECIALIST. NEGLIGIBLE WORK-IN PROGRESS. LIMITED PRODUCTION PLANNING & CONTROL FUNCTIONS HIGH DEGREE OF PREVENTIVE MAINTENANCE & SAFETY.

# SELECTION OF MANUFACTURING SYSTEM----VERY FEW ORGS USE ONLY ONE OF THESE SYSTEMS IN ITS PURE FORM. MOST ORGS COMBINE TWO OR MORE OF THESE BASIC FORMS TO PRODUCE COMPONENTS & THE FINAL PRODUCT.. # A MANUFCTURING PROCESS LIKE A PRODUCT ALSO HAS A LIFE CYCLE ; 1. PROJECT FORMWHEN A PRODUCT IS INTRODUCED IT IS MADE IN SMALL VOLUME IN AN INEFFICIENT MANNER. 2. BATCH PRODUCTION FORM---- AS DEMAND GROWS IT IS PRODUCED IN SMALL BATCHES. 3. FLOW PRODUCTION FORM----AS OUTPUT INCREASES SUBSTANTIALLY DUE TO GROWTH PHASE, MORE & MORE SUB-PROCESSES ARE DESIGNED. 4. FINALLY, SINCE IN THE MATURITY PHASE, THE PRODUCT COMPETES MOSTLY ON PRICE & VOLUMES ARE HIGH, HIGHLY COST-EFFECTIVE METHODS ARE REQUIRED TO PRODUCE THE PRODUCT AT A LOW COST. THE FLOW PRODUCTION FORM IS THEN THE MOST SUITABLE FORM OF PROCESSING. # BREAK-EVEN-ANALYSIS IS MOST SUITABLE FOR SELECTING THE OPTIMAL MANUFACTURING SYSTEM. BREAK-EVEN-ANLYSIS IS A METHOD FOR

IDENTIFYING THE RELATIONSHIP BETWEEN COSTS, VOLUME OF OUTPUT & PROFIT. IT INDICATES THE BREAK-EVEN POINT, THE POINT WHERE SALES REVENUE EQUALS TOTAL COST ( THE SUM OF FIXED & VARIABLE COSTS ) & THERE IS NEITHER PROFIT OR LOSS. PROFITS ARE MADE IF REVENUE EXCEEDS THIS POINT, WHILE A LOSS IS INCURRED IF REVENUE FALLS BELOW IT.

IMPORTANCE & FUNCTIONS OF FACILITY LOCATION

INTRODUCTIONFACILITY LOCATION # FACILITY LOCATION ( PLANT LOCATION ) FINDS THE BEST POSSIBLE GEOGRAPHICAL LOCATION FOR AN ORGS OPERATIONS. PLANT LOCATION DECISIONS CONCERN BOTH MANUFACTURING & ASSEMBLY UNITS AS WELL AS SERVICE ORGS. # PLANT LOCATION DECISIONS BEING STRTEGIC, LONG TERM & NON-REPETITIVE REQUIRE DETAILED ANALYSIS OF LONG TERM CONSEQUENCES BECAUSE :1. POOR LOCATION OF PLANT CAN BE CONSTANT SOURCE OF HIGHER COST, DIFFICULT MARKETING & TRANSPORTATION, DISSATISFACTION AMONG THE EMPLOYEES & CUSTOMERS, FREQUENT DISTURBANCES IN PRODUCTION, SUBSTANDARD QUALITY, COMPETITIVE DISADVANTAGE etc. 2. ONCE PLANT IS SET UP AT A PARTICULAR LOCATION, IT IS COMPARATIVELY IMMOBILE & CAN BE SHIFTED LATER ONLY AT A CONSIDERABLE COST & INTERRUPTION OF PRODUCTION. 3. THE INVESTMENT IN LAND & BUILDINGS IS LARGE & ECONOMICS OF ONE LOCATION AGAINST ANOTHER NEEDS TO BE EVALUATED CAREFULLY TO ENSURE FAIR RETURN ON SUCH INVESTMENT 4. AVAILABILITY OF ESSENTIAL INFRASTRUCTURE AT STARTING TIME & FOR FUTURE. REASONS FOR LOCATION # LOCATION DECISIONS ARISE WHEN :1. A NEW MANUFACTURING OR SERVICING UNIT IS TO BE SET UP. 2. EXISTING PLANT OPERATIONS ARE DIFFICULT TO EXPAND DUE TO POOR SELECTION OF THE SITE EARLIER. 3. THE GROWTH OF THE BUSINESS MAKES IT ADVISABLE TO ESTABLISH ADDITIONAL FACILITIES IN NEW TERRITORIES. 4. THERE IS EMERGENCE OF NEW SOCIAL ( CHRONIC LABOUR PROBLEMS ), POLITICAL OR ECONOMIC CONDITIONS WHICH SUGGEST A CHANGE IN THE LOCATION OF THE EXISTING PLANT. 5. THE CHANGES IN THE INDUSTRIAL POLICY OF THE GOVT, FAVOURING DECENTRALISATION & DISPERSAL OF INDUSTRIES TO ACHIEVE OVERALL DEVELOPMENT OF THE COUNTRY, DO NOT PERMIT EXPANSION OF EXISTING PLANT.

6. END OF A LEASE ON THE EXISTING PREMISES. 7. DESIRE TO EXPAND INTO NEW GEOGRAPHICAL AREAS. 8. CHANGES IN THE LOCATION OF CUSTOMERS OR SUPPLIERS. 9. AVAILABILITY OF ESSENTIAL & WOULD BE INFRASTRUCTURE. 10. DESIRE TO BECOME INTERNATIONAL OR GLOBAL COY. # CRITERIA THAT INFLUENCE MANUFACTURING PLANT & WAREHOUSE LOCATION PLANNING / FACTORS GOVERNING PLANT LOCATION COULD BE :1. PROXIMITY OF CUSTOMERS / MARKET---THIS HELPS TO ENSURE THAT CUSTOMER NEEDS ARE INCORPORATED INTO PRODUCTS BEING DEVELOPED & BUILT. 2. BUSINESS CLIMATE----A FAVORABLE BUSINESS CLIMATE CAN INCLUDE THE PRESENCE OF SIMILAR-SIZED BUSINESESS, THE PRESENCE OF COYS IN THE SAME INDUSTRY & IN THE CASE OF INTERNATIONAL LOCATIONS, THE PRESENCE OF OTHER FOREIGN COYS. PROBUSINESS GOVT LEGISLATION & LOCAL GOVT INTERVENTION TO FACILITATE BUSINESSES LOCATING IN AN AREA VIA SUBSIDIES, TAX ABATEMENTS & OTHER SUPPORT FACTORS. 3. TOTAL COSTS----THE OBJECTIVE IS TO SELECT A SITE WITH THE LOWEST TOTAL COST. THIS INCLUDES REGIONAL COSTS, INBOUND & OUTBOUND DISTRIBUTION COSTS. LAND, CONSTRUCTION, LABOUR, TAXES & ENERGY COSTS MAKE UP THE REGIONAL COSTS. IN ADDITION, THERE ARE HIDDEN COSTS THAT ARE DIFFICULT TO MEASURE. THESE INVOLVE----EXCESSIVE MOVING OF PREPRODUCTION MATERIAL BETWEEN LOCATIONS BEFORE FINAL DELIVERY TO THE CUSTOMERS & LOSS OF CUSTOMER RESPONSINESS ARISING FROM LOCATING AWAY FROM THE MAIN CUSTOMER BASE. 4. INFRASTRUCTURE----ADEQUATE ROAD, RAIL, AIR & SEA TRANSPORTATION ARE VITAL. ENERGY & TELECOMMUNICATIONS REQUIREMENTS ALSO MUST BE MET. IN ADDITION, THE LOCAL GOVTS WLLINGNESS TO INVEST IN UPGRADING ONFRASTUCTURE TO THE LEVELS REQUIRED MAY BE AN INCENTIVE TO SELECT A SPECOFIC LOCATION. 5. QUALITY OF LABOUR---THE EDUCATIONAL & SKILL LEVELS OF THE LABOUR POOL MUST MATCH THE COYS NEEDS. EVEN MORE IMPORTANT ARE THE WLLLINGNESS & ABILITY TO LEARN. 6. SUPPLIERS---A HIGH QUALITY & COMPETITIVE SUPPLIER BASE MAKES A GIVEN LOCATION SUITABLE. THE PROXIMITY OF IMPORTANT SUPPLIERS PLANTS ALSO SUPPORTS PRODUCTION METHODS. 7. PROXIMITY OF RAW MATERIALS. 8. LABOUR 9. INDUSTRIAL & LABOUR ATTITUDES. 10. WASTE DISPOSAL. # A CHECK LIST FOR SITE OR LOCATION SELECTION------A CHECK LIST AS PROVIDED CAN BE USED TO CARRY OUT THE SWOT ANALYSIS OF VARIOUS LOCATIONS TO HOME ON TO A FINAL DECISION. ALL OR SOME OF THE ITEMS IN THE CHECK LIST COULD BE USED TO CARRY OUT THE ANALYSIS. ( REF. THE ENCYCLOPEDIA OF MANAGEMENT; PLANT LOCATION )

# ALTERNATIVES TO LOCATING NEW FACILITIES--- NEW FACILITIES ARE INEVITABLY EXPENSIVE & MANY ORGS PREFER TO LOOK FOR ALTERNATIVES. SOME OF THE ALTERNATIVES COULD BE :1. LICENSING / FRANCHISINGLOCAL OPERATORS MAKE & SUPPLY THE COYS PRODUCTS IN TURN FOR A SHARE OF THE PROFITS. 2. EXPORTING---THE COY MAKES THE PRODUCT IN ITS EXISTING FACILITIES & SELLS IT TO A DISTRIBUTOR OPERATING IN THE NEW MARKET. 3. LOCAL WAREHOUSING & SALES---THE COY MAKES THE PRODUCT IN ITS EXISTING FACILITIES, BUT SETS UP OWN WAREHOUSES & SALES FORCE TO HANDLE DISTRIBUTION IN THE NEW MARKET. 4. LOCAL ASSEMBLY / FINISHING---THE COY MAKES MOST OF THE PRODUCT IN ITS EXISTING FACILITIES, BUT OPENS LIMITED FACILITIES IN THE NEW MARKET TO FINISH OR ASSEMBLE THE FINAL PRODUCT. 5. FULL LOCAL PRODUCTION---THE COY OPENS COMPLETE FACILITIES IN THE NEW MARKET. # APPROACHES TO FINDING THE BEST SITE----- THERE ARE MAINLY TWO APPROACHES---THE FEASIBLE SET APPROACH & INFINITE SET APPROACH. (a) THE FEASIBLE SET APPROACH------MORE EASIER & MORE REALISTIC. IT LOOKS AT A SMALL NUMBER OF FEASIBLE SITES & FINDS WHICH OF THESE IS THE BEST. HERE WE LOOK AT TOTAL COST OF EACH SITE. (b) THE INFINITE SET APPROACH--- IT USES GEOMETRIC ARGUMENTS TO SHOW WHERE THE BEST SITE WOULD BE IF THERE WERE NO RESTRICTIONS ON SITE AVAILABILITY. LOCATION ANALYSIS # GENERALLY PLANT OR LOCATION ANALYSIS IS CONDUCTED IN THREE PHASES; GENERAL TERRITORY SELECTION, COMMUNITY SELECTION & SITE SELECTION. WITH REFERENCE TO THESE PHASES WE CARRY OUT LOCATION ANALYSIS & CONSIDER FOLLOWING FACTORS :SR 1. 2. 3. 4. 5. 6. 7. 8. LOCATION FACTOR PROXIMITY TO MARKET PROXIMITY TO RAW MATERIALS INFRASTRUCTURAL FACILITIES TRANSPORTATION FACILITIES LABOUR & WAGES LEGISLATION & TAXATION CLIMATIC CONDITIONS INDUSTRIAL & LABOUR ATTITUDES TERRITORY SELECTION * * * * * * * * COMMUNITY SELECTION SITE SELECTION

* * * * * *

9. 10. 11. 12. 13. 14. 15.

SAFETY REQUIREMENTS COMMUNITY FACILITIES COMMUNITY ATTITUDES SUPPORTING INDUSTRIES & SERVICES. WASTE DISPOSAL AVAILABILITY & COST OF LAND FOR PRESENT & FUTURE. SUITABILITY OF THE LAND

* * * * * * * * * *

# A COMPARISON OF URBAN ( RELATING TO TOWN OR CITY ) AND RURAL ( RELATING TO COUNTRYSIDE RATHER THAN TOWN ) SITE LOCATION WILL PROVIDE YOU WITH SOME INPUTS FOR CARRYING OUT THE ANALYSIS. CONCLUSION # PLANT OR FACILITY LOCATION DECISIONS ARE IMPORTANT STRATEGIC, LONG TERM & NON-REPETATIVE DECISIONS. POOR LOCATION OF THE PLANT RESULTS IN HIGHER COST OF PRODUCTION, DIFFICULT MARKETING & TRANSPORTATION, DISSATISFACTION AMONG THE EMPLOYEES & CUSTOMERS, FREQUENT DISTURBANCES IN PRODUCTION & EVEN COMPETATIVE DISADVANTAGES. # PLANT LOCATION DEPENDS ON A LARGE NUMBER OF FACTORS, SOME CONCERN WITH GENERAL TERRITORY SELECTION WHEREAS SOME FACTORS ARE RELEVENT FOR COMMUNITY SELECTION & / OR FOR SITE SELECTION. LOCATION DECISIONS SHOULD ALSO TAKE INTO ACCOUNT THE MERITS & DEMERITS OF URBAN & RURAL AREAS. FACILITY LAYOUT OR PLANT LAYOUT INTRODUCTION # IT FOLLOWS THE PLANT LOCATION. FACILITY LAYOUT IS THE PHYSICAL ARRANGEMENT OF EQPT, OFFICES, ROOMS, & OTHER RESOURCES WITHIN AN ORG. IT DESCRIBES THE LOCATION OF RESOURCES & THEIR RELATIONSHIPS TO EACH OTHER. LAYOUT PLANNING AIMS TO ORGANISE THE PHYSICAL ARRANGEMENT OF FACILITIES SO THAT OPERATIONS RUN AS EFFICIENTLY AS POSSIBLE. # PLANT LAYOUT IS THE DISPOSITION OF THE VARIOUS FACILITIES & SERVICES OF THE PLANT WITHIN THE AREA OF THE SITE SELECTED PREVIOUSLY. THE WORK OF PLANT LAYOUT BEGINS WITH THE LOCATION OF THE WORK CENTRES. PLANT LAYOUT THUS INVOLVES DETERMINATION OF SPACE REQUIREMENT FOR THE FACILITIES & ARRANGING THEM IN A MANNER THAT ENSURES STEADY FLOW WITH MINIMUM OVERALL COST.

DEFINITIONS OF FACILITY LAYOUT # MOORE HAS DEFINED FACILITY LAYOUT AS, PLANT LAYOUT IS THE PLAN OF OR THE ACT OF PLANNING, AN OPTIMUM ARRANGEMENT OF FACILITIES, INCLUDING PERSONNEL, OPERATING EQIPMENT, STORAGE SPACE, MATERIALS HANDLING EQPT & ALL OTHER SUPPORTING SERVICES ALONG WITH THE DESIGN OF THE BEST STRCTURE TO CONTAIN THESE FACILITIES. # ANOTHER DEFINITION---PLANT LAYOUT IS THE PLACING OF RIGHT EQPT, COUPLED WITH RIGHT METHOD, IN THE RIGHT PLACE TO PERMIT THE PROCESSING OF A PRODUCT IN THE MOST EFFECTIVE MANNER THROUGH THE SHORTEST POSSIBLE DISTANCE & THROUGH THE SHORTEST POSSIBLE TIME. # A GOOD LAYOUT RESULTS IN COMFORTS, CONVENIENCE, APPEARANCE, SAFETY, EFFICIENCY & PROFIT WHILE A POOR LAYOUT CAUSES CONGESTION, DISRUPTION IN MATERIAL FLOW, UNNECESSARY MATERIAL HANDLING, MORE SCRAP & REWORK, HIGHER THROUGHPUT TIME, WASTED MOVEMENTS, FRUSTATION & INEFFICIENCY. FACTORS CREATING LAYOUT PROBLEMS # THE LAYOUT PROBLEMS OCCUR BECAUSE OF ONE OR MORE OF THE FOLLOWING DEVELOPMENTS :1. DECISION TO BUILD A NEW PLANT. 2. RELAYOUT OF FACILITIES TO MEET CHANGES IN DEMAND ( ADDITIONAL MACHINES ) 3. INTRODUCTION OF NEW PRODUCT. 4. WITHDRAWAL OF OBSOLETE ( MEANS NO LONGER PRODUCED OR USED; OUT OF DATE, OUTDATED ) 5. CHANGES IN PRODUCT DESIGN. 6. TENDENCY OF ADHOC PLANNING. 7. ADOPTION OF NEW SAFETY STANDARDS. 8. OVERCOMING THE DEFICIENCIES OF THE EXISTING LAYOUT. 9. WASTE DISPOASL. 10. ENVIRONMENTAL MANAGEMENT 11. SOCIAL REQUIREMENTS & CHANGES THERETO. 12. NON-AVAILABILITY OF MATCHING INFRASTRURE. OBJECTIVES OF PLANT LAYOUT # ONLY THROUGH AN EFFICIENT LAYOUT, THE ORG CAN ATTAIN THE FOLLOWING OBJECTIVES :(1)ECONOMY IN HANDLING OF MATERIALS, WORK-IN-PROCESS & FINISHED GOODS. (2) MINIMISATION OF PRODUCTION DELAYS. (3) LASSER WORK-IN-PROCESS & MINI MANUFACTURING CYCLE TIME. (4) EFFICIENT UTILISATION OF AVAILABLE SPACE ( 5 ) EASY SUPERVISION & BETTER PRODUCTION CONTROL. (6)GREATER FLEXIBILITY FOR CHANGES IN PRODUCT DESIGN & FOR FUTURE EXPANSION. ( 7 ) BETTER WORKING CONDITIONS BY ELIMINATING CAUSES OF EXCESSIVE NOISE, OBJECTIONABLE ODOUR, SMOKING & PROPER SAFETY.

PRINCIPLES OF A GOOD LAYOUT # NO LAYOUT CAN SATISFY EACH & EVERY PRINCIPLE OF A GOOD LAYOUT. SOME CRITERION MAY CONFLIT WITH SOME OTHER CRIRERION & AS A RESULT NO LAYOUT CAN BE IDEAL. IT IS TO ONTEGRATE ALL FACTORS INTO THE BEST POSSIBLE COMPROMISE. THE PRINCIPLES OF A GOOD LAYOUT OF A PLANT OR FACILITY, THEREFORE, COULD BE :1. OVERALL INTEGRATION OF FACTORS------A GOOD LAYOUT IS ONE THAT INTEGRATES MEN, MATERIALS, MACHINES, SUPPORTING ACTIVITIES & OTHERS IN A WAY THAT THE BEST COMPROMISE IS OBTAINED. 2. MINIMUM MOVEMENT--------A GOOD LAYOUT IS ONE THAT PERMITS MINIMUM ,OVEMENT BETWEEN THE OPERATIONS & HENCE IS DECTETED BY THE TYPE OF LAYOUT WE ADOPT. 3. UNI-DIRECTIONAL FLOW----A GOOD LAYOUT IS ONE THAT MAKES THE MATERIALS MOVE ONLY IN THE FORWARD DIRECTION, TOWARDS STAGE OF COMPLETION, WITHOUT ANY BACKTRACKING. 4. EFFECTIVE USE OF AVAILABLE SPACE----BOTH HORIZONTAL & VERTICAL SPACE. 5. MAXIMUM VISIBILITY---A GOOD LAYOUT IS ONE THAT MAKES MEN, MACHINES & MATERIALS READILY OBSERVABLE AT ALL TIMES. 6. MAXIMUM ACCESSIBILITY---ALL SERVICING, MAINTENANCE POINTS READILY ACCESIBLE. 7. MINIMUM HANDLING---MINIMUM MATERIALS HANDLING ACTIVITIES. 8. INHERENT SAFETY 9. SAFE & IMPROVED ENVIRONMENT 10. MAXIMUM FLEXIBILITY. 11. MAXIMUM SECURITY TYPES OF LAYOUTS # LAYOUTS ARE OF THREE TYPES :1. PROCESS OR FUNCTIONAL LAYOUT. 2. PRODUCT OR LINE LAYOUT. AND 3. PROJECT OR FIXED POSITION LAYOUT. # PROCESS OR FUNCTIONAL LAYOUT :- ALL MACHINES PERFORMING SIMILAR TYPE OF OPERATIONS ARE GROUPED AT ONE LOCATION. THE SEQUENTIAL ARRANGEMENT OF THE MACHINE GP IS GENARALLY, BUT NOT NECESSARILY MADE ON THE BASIS OF LABOUR OPERATIONS. IN THIS TYPE OF LAYOUT, THE PROCESS RATHER THAN THE PRODUCT HAS A DOMINATING ROLE. # PROCESS LAYOUT, ALSO CALLED, LAYOUT BY FUNCTION IS GENERALLY ASSOCIATED WITH BATCH PRODUCTION [ BATCH PRODUCTION IS THE MANUFACTURE OF A LIMITED NUMBER OF A PRODUCT ( BUT MANY SUCH QUANTITIES OF DIFFERENT PRODUCTS ) PRODUCED AT PERIODIC INTERVALS & STOCKED IN WAREHOUSES AS FINISHED GOODS AWAITING SALES; LIKE PAINTS,

PHARMACEUTICALS, CHEMICALS etc.] THE FACTORY IS DIVIDED INTO PROCESS UNITS & WITHIN THESE PROCESS UNITS ALL SIMILAR FACILITIES ARE GROUPED TOGETHER; PRESSES, MILLING DRILLING, LATHES, GRINDING, GEAR SHAPER, DEBURRING, WELDING, HEAT TREATMENT etc. MACHINES ( DEBURR MEANS TO SMOOTH THE ROUGH EDGES ). # A SIMPLE SKETCH OF A PROCESS LAYOUT COULD BE---# PROCESS TYPE LAYOUT IS SUITABLE WHEN :(a) THE PRODUCTS ARE NON-STANDARD & THEIR QUANTITIES ARE SMALL. (b) THERE IS WIDE VARIATIONS IN THE PROCESSING TIMES OF INDIVIDUAL OPERATIONS. # ADVANTAGES OF PROCESS LAYOUT :1. IT ELIMINATES THE DUPLICATION OF MACHINES & ENABLES THE OPTIMUM USE OF INSTALLED CAPACITY. 2. DIFFERENT PRODUCTS CAN BE MADE WITHOUT THE CHANGES IN THE ARRANGEMENT OF MACHINES. 3. BREAKDOWN OF ONE MACHINE DOES NOT INTERRUPT THE ENTIRE PRODUCTION FLOW. 4. SPECIALIZATION IN SUPERVISION BECOMES POSSIBLE. 5. INDIVIDUAL INCENTIVE SCHEMES CAN BE DEVELOPED. 6. WORKERS ATTAIN GREATER SKILLS SINCE THEY HAVE TO ATTEND TO ONE TYPE OF MACHINES & OPERATIONS. 7. VARIETY OF THE JOBS MAKE THE WORK INTERESTING TO THE WORKMEN. # DISADVANTAGES OF PROCESS LAYOUT :1. DUE TO LACK OF STRAIGHT LINE SEQUENCE OF PRODUCTION, BOTTLENECK & WAITING & IDLE CAPACITY ARISE. 2. THE COST OF MATERIAL HANDLING INCREASES DUE TO LONG-ROUTING & BACK-TRACKING BETWEEN THE PROCESSES. 3. INSPECTION REQUIRES TO BE DONE AFTER EACH OPERATION AS MATERIAL PASSES TO THE NEXT DEPT. THIS CAUSES DELAYS & RESULTS IN HIGHER COST OF INSPECTION. 4. SETUP COSTS ARE HIGH BECAUSE OF FREQUENT CHANGES OF JOBS. 5. THE COST OF SUPERVISION INCREASES DUE TO SPECIALIST SUPERVISORS & MORE NUMBER OF SUPERVISORS ARE REQUIRED AT EACH PROCESS UNIT. 6. WORK-IN-PROCESS INVENTORY IS HIGHER SINCE JOBS HAVE TO QUEUE UP FOR EACH OPERATION. # PRODUCT OR LINE LAYOUT :- IT IS ALSO CALLED, LAYOUT BY SEQUENCE. THE LAYOUT OF PLANT, SHAPE & SIZE OF ITS BUILDINGS, LOCATION OF SERVICES & STORAGE YARDS, POSITION OF MATERIALS HANDLING EQPT IS SUCH THAT MATERIAL FLOWS IN ONE DIRECTION & AT STEADY RATE. THE EQPT OR MACHINERY, IF NECESSARY, IS DUPLICATED TO AVOID

BACKTRACKING & TO ENSURE THAT MATERIALS ALWAYS FLOW IN THE FORWARD DIRECTION TOWARDS STAGE OF COMPLETION. # SUITABILITY----PRODUCT TYPE LAYOUT IS SUITABLE WHEN :1. THE PRODUCTS ARE STANDARD & REQUIRE TO BE PRODUCED IN LARGE QUANTITIES. 2. THE PRODUCTS HAVE REASONABLY STABLE DEMAND. 3. THE PROCESSING TIMES OF INDIVIDUAL OPERATIONS IS MORE OR LESS EQUAL. 4. UNINTERRUPTED SUPPLY OF MATERIALS CAN BE MAINTAINED. # EXAMPLES OF PRODUCT LAYOUT ARE---AUTOMOBILES, REFRIGERATORS, TVs etc. CONTINUOUS OR PROCESS PRODUCTION UNITS, CHARACTERISED BY THE MANUFACTURE OF SINGLE PRODUCT, SUCH AS SUGAR, STEEL, CEMENT, PAPER etc. ALSO HAVE PRODUCT TYPE OF LAYOUT. # ADVANTAGES OF PRODUCT LAYOUT :1. MANUFACTURING CYCLE IS SMALL WHICH REDUCES WORK-IN-PROCESS. 2. MATERIAL HANDLING IS MINIMUM & AUTOMATIC. 3. SPACE REQUIRED IS SMALL AS THE USE OF CONVEYORS & GRAVITY FOR MATERIALS HANDLING REDUCES THE NEED FOR AISLES. 4. THE WORK IS SIMPLIFIED BY BREAKING INTO ELEMENTAL TASKS WHICH ARE MECHNISED WHEREVER POSSIBLE LEADING TO LOWER LABOUR COSTS. 5. QC IS EASY TO EXERICISE & MORE EFFECTIVE. SQC PRACTICES CAN BE USED TO CONTROL QUALITY OF THE PROCESSES. 6. PRODUCTION CONTROL IS SIMPLIFIED DUE TO LOWER PRODUCT VARIETY, SIMPLER ROUTINGS, EASIER PROGRESSING & LOWER WORK-IN-PROCESS. 7. DELIVERY COMMITMENTS TO CUSTOMERS ARE MORE RELIABLE & EASY TO ADHERE TO. 8. MATERIAL REQUIREMENTS CAN BE SCHEDULED EASILY & MORE ACCURATELY. 9. IT FACILITATES THE IMPLEMENTATION OF THE GP INCENTIVE SCHEMES FOR THE WORKERS 10. IT IS RELATIVELY EASY TO CONTROL. # DISADVANTAGES OF PRODUCT LAYOUT :1. THE CHANGES IN PRODUCTS & THEIR WORK CONTENT NECESSITATE THE CHANGE IN THE LAYOUT OF THE MACINERY. 2. ALL MACHINES MAY NOT BE USED TO THEIR FULL CAPACITY. 3. MANUFACTRING COST IS HEAVILY DEPENDENT UPON VOLUME OF PRODUCTION. 4. BREAKDOWN OF ANY ONE OF THE MACHINES IN THE LINE RENDERS OTHER MACHINES IDLE TILL IT IS REPAIRED. 5. EXPANSION OF THE CAPACITY BY ADDITION OF FEW MACHINES IS NOT POSSBLE. 6. SPECIALISATION CREATES MONOTOMY.

7. 11. 15. 19. 23. 27. 31. 35. 39. 43. 47. 51. 55. 59. 63. 67. 71. 75.

8. 12. 16. 20. 24. 28. 32. 36. 40. 44. 48. 52. 56. 60. 64. 68. 72. 76.

9. 13. 17. 21. 25. 29. 33. 37. 41. 45. 49. 53. 57. 61. 65. 69. 73. 77.

10. 14. 18. 22. 26. 30. 34. 38. 42. 46. 50. 54. 58. 62. 66. 70. 74. 78.

79. PRODUCT & PROCESS LAYOUT COMPARISON SR 1. DETAILS WHAT IT IS PROCESS LAYOUT PRODUCT LAYOUT ALL MACHINES # LAYOUT BY SEQUENCE PERFORMING SIMILAR TYPE # MATERIAL FLOWS IN ONE OF OPERATIONS ARE DIRECTION TOWARDS GROUPED AT ONE COMPLETION. LOCATION. FOR PROCESS FOR PRODUCT BATCH PRODUCTION # MASS & FLOW PRODUCTION # NON-STANDARD PRODUCTS WITH SMALL QUANTITIES. # WIDE VARIATIONS IN THE PROCESSING TIMES OF INDIVIDUAL OPERATIONS # PRODUCTS ARE STANDARD. #PRODUCTS HAVE REASONABLY STEADY DEMAND. #THE PROCESSING TIMES OF INDIVIDUAL OPS IS MORE OR LESS EQUAL. # UNINTERRUPTED SUPPLY OF MATERIALS CAN BE MAINTAINED. ANY CHANGE IN PRODUCT WILL ASK FOR CHANGE IN LAYOUT OF MACHINES. CAUSES DELAYS DUE TO INERRUPTIONS IN THE PRODUCTION FLOW.

2. 3. 4.

IMPORTANCE ASSOCIATED WITH SUITABILITY

5.

LAYOUT OF MACHINES BREAKDOWNS IN MACHINES

6.

DIFFERENT PRODUCTS CAN BE MADE WITHOUT CHANGING MACHINE LAYOUTS. DOES NOT INTERRUPT THE PRODUCTION FLOW

7. 8. 9. 10. 11. 12. 13.

FLOW OF MATERIAL MATERIALS HANDLING INSPECTION SETUP COST WORK-INPROCESS DELIVERY TIME CONTROL

ZIG-ZAGMORE TIME COSUMING HIGH COST AFTER EACH OPERATION, TIME CONSUMING, COSTLY HIGH HIGH REQUIRE STRICT COMPLIANCE SPREAD OVER CLUSTERS & HENCE CONTROL IS REQUIRED TO BE COORDINATED. SPECILIZATION MUST ON INDIVIDUAL BASIS GREATER SKILLS FOR WORKERS VARIETY OF JOBS GENERATES INTERESTS

STRAIGHT-LINE MINIMUM, AUTOMATIC & HENCE LOW COST EASY & MORE EFFECTIVE. SQC PRACTICES COULD BE USED. LOW LOW MORE RELIABLE EASY & HAS UNITY OF COMMAND & DIRECTION MORE DIVERSE ON GP BASIS REPETATIVE SKILLS. LIKELY TO LEAD TO MONOTONY

14. 15. 16. 17.

SUPERVISORS INCENTIVE SCHEMES SKILLS JOB SATISFACTION

NOTE---PROVIDE DIGRAMS & SOME EXAMPLES OF THESE TWO LAYOUTS. # PROJECT OR FIXED POSITION LAYOUT-----IN THIS TYPE OF LAYOUTS THE PRODUCT STAYS STILL & OPERATIONS ARE ALL DONE ON THE SAME SITE. THIS USUALYY HAPPENS WHEN A PRODUCT IS TOO BIG OR HEAVY TO MOVE, LIKE SHIP CONSTRUCTION, AEROPLANES, LOCOMOTIVES, LARGE TURBINES, PRESSURE VESSELS etc. HEAVY MATERIALS, COMPONENTS OR SUB-ASSEMBLIES UNDER THIS LAYOUT REMAIN FIXED AT ONE PLACE. MEN, MACHINES & TOOLS ARE BROUGHT TO THE LOCATION TO COMPLETE THE JOB. MINOR COMPONENTS & SUB-ASSEMBLIES ARE ALSO BROUGHT TO THE SITE FOR ASSEMBLY. # FIXED POSITION LAYOUTS HAVE SEVERAL DISADVANTAGES :1. ALL MEN, MATERIALS & COMPONENTS HAVE TO MOVE TO THE SITE. 2. THERE IS OFTEN LIMITED SPACE AT THE SITE. 3. THERE MUST BE A RELIABLE SCHEDULE OF ACTIVITIES THAT IS PLANNING & CONTROL. 4. DISRUPTIONS TO THIS SCHEDULE MIGHT CAUSE DELAYS IN COMPLETION THERE BY ADDING TO THE COST. 5. EXTERNAL FACTORS, SUCH AS WEATHER CONDITIONS, MAY AFFECT OPERATIONS. # BECAUSE OF THESE DISADVANTAGES, FIXED-POSITION LAYOUTS ARE ONLY USED WHEN IT IS IMPOSSIBLE OR VERY DIFFICULT TO MOVE THE PRODUCT.

ONE WAY OF PARTIALLY AVOIDING THESE DISADVANTAGES IS TO DO AS MUCH OF THE WORK AS POSSIBLE OFF SITE. A ROAD BRIDGE MAY BE PREFABRICATED OFF SITE & MOVED TO THE SITE FOR ERRECTION. FACTORS GOVERNING PLANT LAYOUT # THE DESIGN OF ANY LAYOUT IS GOVERNED BY LARGE NUMBER OF FACTORS & THE BEST LAYOUT IS EXPECTED TO OPTIMISE ALL THESE FACTORS. MUTHER HAS CATEGORISED THE FACTORS INTO FOLLOWING EIGHT GPS :1. THE MATERIAL FACTORTO INCLUDE PRODUCTS, VARIETY, QUANTITY, CONVERSION OPRATIONS & THEIR SEQUENCE, PHYSICAL & CHEMICAL CHARACTERISTICS OF MATERIALS etc. 2. THE MACHINERY FACTOR---TO INCLUDE PRODUCTION METHODS, PRODUCING EQPT & TOOLS, PHYSICAL CHARACTERISTICS OF THE EQPT ( SHAPE, HEIGHT, WT, OVERHANG etc.), EXPECTED UTILISATION etc. 3. THE MAN FACTOR--- TO INCLUDE NUMBER OF DIRECT & INDIRECT WORKMEN,SUPERVISORY & SERVICE STAFF, SAFETY, WORK ENVIRONMENT etc. 4. THE MOVEMENT FACTOR---TO INCLUDE FLOW PATTERNS, INTER & INTRADEPARTMENTAL TRANSPORT & HANDLING AT VARIOUS OPERATIONS, STORAGE & INSPECTIONS, SPACE FOR MOVEMENTS, MATERIALS HANDLING EQPTS etc. 5. THE WAITING FACTOR---TO INCLUDE NUMBER OF TEMPORARY & PERMANENT STORAGES, LOCATION OF STORAGE AREAS, EXTENT OF DELAYS etc. 6. THE SERVICE FACTOR ---TO INCLUDE PROVISIONS FOR EMPLOYEE FACILITIES LIKE PARKING LOT, LOCKER ROOMS, TOILETS, WAITING ROOMS etc, SIZE & LOCATION OF SERVICE DEPTS LIKE PRODUCTION CONTROL, MAINT, MATERIALS HANDLING, TOOL CRIB etc. 7. THE BUILDING FACTOR---TO INCLUDE NUMBER OF STOREYS OF THE BUILDING, OUTSIDE & INSIDE BUILDING FEATURES, LOAD BEARING CAPACITY OF THE FLOORS, UTILITY DISTRIBUTION & EQPT. 8. THE CHANGE FACTOR----TO INCLUDE VERSATALITY, FLEXIBILITY, FUTURE EXPANSION etc. ( VERSATALITY MEANS ABLE TO ADAPT TO MANY DIFFERENT FUNCTIONS OR ACTVITIES AND FLEXIBLE MEANS ABLE TO CHANGE OR BE CHANGED TO RESPOND TO DIFFERENT CIRCUMSTANCES. SPACE DETERMINATION & AREA ALLOCATION # SPACE DETERMINATION & SPACE ALLOCATION TO DIFFERENT ACTIVITIES IS AN IMPORTANT STEP IN THE LAYOUT PLANNING. SPACE IS REQUIRED FOR WORKERS, MACHINES, MATERIAL MOVEMENT & SUCH OTHER ITEMS GIVE BELOW :1. SPACE FOR THE MACHINE TAKING INTO CONSIDERATION THE OVERHANG, PROJECTION OR OVERTRAVEL OF THE MACHINE PARTS LIKE TABLE OF A MILLING MACHINE OR A PLANER. 2. SPACE FOR THE WORKMEN TO STAND OR SIT OR TURN TO OERATE THE MACHINE.

3. SPACE FOR THE WORK IF IT HAS TO PROJECT OUT OF THE MACHINE LIKE LONG BAR FEED OF A LATHE. 4. SPACE FOR MACHINE ACCESSORIES, JIGS & FIXTURES, ATTACHMENTS etc. JIG MEANS ADEVICE THAT GUIDES TOOLS & HOLDS MATERIALS OR PARTS SECURELY. FIXTURE IS A PIECE OF EQPT WHICH IS FIXED IN POSITION ON A MACHINE. 5. SPACE FOR NECESSARY TOOLS & SUPPLIES REQUIRED BY THE WORKER. 6. SPACE FOR BINS TO STORE INCOMING MATERIALS. BIN IS A CONTAINER FOR STORING A MATERIAL. 7. SPACE FOR THE MOVEMENT OF MATERIALS HANDLING EQPT. 8. SPACE FOR INSPECTION, LUBRICATION, MAINT & REPAIRS OF THE MACHINES. 9. SPACE FOR AISEL BETWEEN ONE MACHINE & THE NEXT. SUMMARY 1. INTRODUCTION 2. CONCEPT OF A FACILITY. 3. REASONS FOR LOCATION. 4. FACTORS RESPONSIBLE FOR PLANT LOCATION. 5. LOCATION ANALYSIS. 6. FACILITY LAYOUT. 7. FACTORS CREATING LAYOUT PROBLEMS. 8. OBJECTIVES OF LAYOUTS. 9. TYPES OF LAYOUTS. 10. FLOW PATTERN. 11. FACTORS GOVERNING PLANT LAYOUT. 12. PRODUCT & PROCESS LAYOUT COMPARISON.

PRODUCTION PLANNING & CONTROL

INTRODUCTION # PRODUCTION PLANNING, PRODUCTION CONTROL & INVENTORY MANAGEMENT ARE COMPLEMENTORY FUNCTIONS. GENERALLY & APPROXIMATELY ONE-THIRD OF THE ASSETS OF AN AVERAGE MANUFACTURING COY ARE INVESTED IN INVENTORIES WHICH ARE CONTROLLED BY PRODUCTION & INVENTORY MANAGERS. INVENTORY IS A LIST OF ITEMS HELD IN STOCK. # PRODUCTION & INVENTORY MANAGEMENT ENCOMPASSES A WIDE RANGE OF FUNCTIONS WHICH ARE COMMONLY DIFFERENTIATED BY THE TERMS--PRODUCTION PLANNING, PRODUCTION CONTROL & INVENTORY CONTROL. INVENTORY CONTROL IS A BACKBONE OF MATERIAL MANAGEMENT WHICH SHALL BE COVERED IN THAT SUBJECT. # WE NOW, THEREFORE, CONCENTRATE ON PRODUCTION PLANNING & CONTROL. WE WILL FIRST UNDERSTAND BOTHH TERMINOLOGIES & THEN GET INTO DETAILS. WHAT IS PRODUCTION PLANNING & CONTROL ( PPC ) ? # PRODUCTION PLANNING :- IT IS THE FUNCTION OF SETTING THE LIMITS OR LEVELS OF MANUFACTURING / PRODUCTION / OPERATIONS IN THE FUTURE, CONSIDERATION BEING GIVEN TO SALES FORECASTS & THE REQUIREMENTS & AVAILABILITY OF MEN, MACHINES, MATERIALS & MONEY. # IT IS THE COORDINATION OR BALANCING OF ALL CONTRIBUTIONS TO PRODUCTION THROUGHOUT THE ENTIRE ORG. SUCH PLANNING IS IN REFERENCE NOT ONLY TO EXISTING PRODUCTS OF THE COY, BUT TO NEW PRODUCTS AS WELL. # PRODUCTION PLANNING IS OF SEVERAL TYPES, DISTINGUISHABLE BY HOW FAR INTO FUTURE THE PRODUCTION ( AND INVENTORY ) PLAN IS PROJECTED. SUCH PLANS INCLUDE SHORT & LONG-TERM PRODUCTION PROGRAMMES & CURRENT MASTER SCHEDULES OF PRODUCTION. MASTER SCHEDULE GIVES A DETAILED TIME TABLE FOR MAKING INDIVIDUAL PRODUCTS. IT SHOWS HOW THE AGGREGATE PLAN WILL BE ACHIEVED AS EFFICIENTLY AS POSSIBLE. MASTER SCHEDULE GOVERN THE RELEASE OF PRODUCTION ORDERS TO PRODUCTION CONTROL DEPT. # PRODUCTION CONTROL :- IT IS THE FUNCTION OF DIRECTING OR REGULATING THE ORDERLY MOVEMENT OF GOODS THROUGH THE ENTIRE MANUFACTURING CYCLE, FROM THE REQUISITIONING OF RAW MATERIALS TO THE DELIVERY OF THE FINISHED PRODUCT, TO MEET THE OBJECTIVES OF CUSTOMER SERVICE, MINIMUM INVENTORY INVESTMENT & MAXIMUM MANUFACTURING EFFICIENCY.

# PPC--- THE PURPOSE OF PRODUCTION PLANNING IS TO SET THE REQUIREMENTS FOR PRODUCTION, THE PURPOSE OF PRODUCTION CONTROL IS TO KEEP PRODUCTION WITHIN THESE REQUIREMENTS. FOR PRODUCTION THE TERM PLANNING IS USED IN THE DETERMINATIVE SENSE WHERE AS FOR CONTROL IT IS USED IN THE REGULATIVE SENSE. ( DETERMINATE MEANS FIXED OR DEFINITE LIMITS OR NATURE; REGULATE MEANS SUPERVISE BY MEANS OF RULES & REGULATIONS ). # PLANNING FOR CONTROL INCLUDES NOT ONLY THE MAINTENANCE OF PRODUCTION IN ACCORDANCE WITH PREDETERMINED QUANTITATIVE & OVERALL TIME LIMITS BUT ALSO THE DEPARTMENTAL ROUTING & SCHEDULING OF SPECIFIC PRODUCTION ORDERS IN ACCORDANCE WITH PREDETERMINED PROCESS SPECIFICATIONS. PRODUCTION CONTROL IS PRIMARILY A MATTER OF DETAILED SCHEDULING ( THE BREAKDOWN OF MASTER SCHEDULES ) AND THE PREPARATION OF FACTORY DIRECTIVES ( SUBSIDIARY PRODUCTION ORDERS ). DISPATCHING & THE FOLLOW-UP OR EXPEDITING OF THESE PRODUCTION ORDERS ARE THE ACTION PHASE OF PRODUCTION CONTROL. DEFINITIONS , MEANING & SCOPE OF PPC # PRODUCTION IS DEFINED AS THE MANUFACTURING OF GOODS & SERVICES AND PLANNIG IS DEFINED AS THE SERIES OF RELATED & COORDINATED ACTIVITIESMATERIALS CONTROL, PROCESS PLANNING, SCHEDULING etc.--DESIGNED TO SYSTEMATISE IN ADVANCE THE MANUFACTURING EFFORTS. # PRODUCTION PLANNING, THEREFORE, IS THE PRE-DETERMINATION OF MANUFACTURING REQUIREMENTS SUCH AS MEN, MATERIALS, MACHINES, MANUFACTURING PROCESS, MONEY, TIME, ORDER PRIORITY etc. FOR THE PRODUCTION OF GOODS OF RIGHT QUALITY IN RIGHT QUANTITIES & RIGHT TIME. # PRODUCTION PLANNING IS THE DETERMINATION, ACQUISITION & ARRANGEMENT OF ALL FACILITIES NECESSARY FOR FUTURE PRODUCTION ITEMS. IN OTHER WORDS PRODUCTION PLANNING IS ESSENTIALLY A PREPRODUCTION ACTIVITY, ASSOCIATED WITH THE DESIGN OF THE PRODUCTION SYSTEM. THE PRODUCTION SYSTEM IS CONSIDERED TO INCORPORATE AN ORGANISATIONAL ELEMENT IN ADDITION TO PHYSICAL FACILITIES & PRODUCTION PLANNING IS CONCERNED WITH ORGANISING THE PRODUCTION OF AN ITEM PRIOR TO THE COMMENCEMENT OF PRODUCTION----BY RAY WILD # PRODUCTION CONTROL IS THE COROLLARY TO SHORT TERM PRODUCTION PLANNING OR SCHEDULING & IS QUITE SIMPLY CONCERNED WITH THE IMPLEMENTATION OF PRODUCTION SCHEDULES. PRODUCTION CONTROL GOES ON DURING PRODUCTION & CONSISTS ESSENTIALLY OF THE FOLLOWING STEPS : 1. INITIATING PRODUCTION. 2. DISPATCHING OF ITEMSTHAT IS ESTABLISHING PRIORITIES BETWEEN ITEMS COMPETING FOR TIME ON THE SAME FACILITY. 3. PROGRESSING. AND 4. REPORTING BACK TO PRODUCTION PLANNING & SALES / MARKETING.

# THE TABLE BELOW PROVIDES US WITH WHAT PRODUCTION PLANNING & PRODUCTION CONTROL ACHIEVE FOR THE ORG & THE LINE OF DEMARKATION BETWEEN THE TWO :SR 1. PLANNING ( PLANNING OF WORK ) PLANNING INVOLVES COLLECTION & MAINTAINANCE OF DATA REGARDING TIME STANDARDS, MATERIALS & THEIR SPECIFICATIONS, MACHINES THEIR QUANTIES & SPECIFICATION, TOOLS & THEIR PROCESS CAPABILITIES, DRAWINGS & OPERATIONAL LAYOUTS etc. PLANNING IS SEEING THAT REQUIREMENTS, LIKE TOOLS, MACHINES, MEN, INSTRUCTIONS & LIKE WISE, WILL BE AVAILABLE AT THE RIGHT TIME, RIGHR QUANTITY & QUALITY. PLANNING INVOLVES PREPARATION OF LOAD CHARTS & FITTING WORK ORDERS INTO UNCOMMITTED TIME AVAILABLE ON THE COYS FACILITIESMEN OR MACHINES. PLANNING INVOLVES PREPARATION OF ALL NECESSARY FORMS & PAPER WORK. PLANNING INVOLVES DESIGNING SUITABLE FEED BACK AS TO WHAT MAY HAPPEN. PLANNING INVOLVES FORWARD THINKING REGARDING THE REMEDIAL ACTION TO BE TAKEN IF THE JOB FALLS BEHIND SCHEDULE. CONTROL ( WORKING OF THE PLAN ) CONTROL INVOLVES DISSEMINATION OF DATA, PREPARATION OF REPORTS REGARDING OUTPUTS, MACHINE & LABOUR EFFICIENCY, PERCENTAGE DEFECTIVES etc.

2.

CONTROL IS ENSURING THAT THE REQUIREMENTS ARE ACTUALLY MADE AVAILABLE AT THE RIGHT PLACE & IN THE RIGHT QUANTITIES.

3.

CONTROL INVOLVES ACTUAL ENSURING THAT THE JOBS ARE STARTED & COMPLETED AS PER SCHEDULE PREPARED BY THE SCHEDULING CELL OF PPC. CONTROL IS ISSUE OF THESE FORMS.

4.

5.

CONTROL INVOLVES KEEPING TRACK OF WHAT IS HAPPENING & COLLECTING INFO AS TO WHAT HAS HAPPENED. CONTROL INVOLVES SUGGESTING REMEDIAL ACTION WHEN THE JOB IS FALLING BEHIND SCHEDULE.

6.

# FUNCTIONS & RESPONSIBILITIES OF PRODUCTION PLANNING :CENTRALIZATION OF PRODUCTION PLANNING FACILITATES A COORDINATED & PROPERLY EXECUTED PLANNING ACTIVITY WHICH GENERALLY IS THE TREND IN MANY INDUSTRIES.

# THE FUNCTIONAL DUTIES OF PRODUCTION PLANNING WILL GENERALLY INCLUDE :1. SALES FORECASTING---TO INCLUDE (a) CYCLICAL PATTERNS OR GENERAL BUSINESS CONDITIONS & THE GENERAL ECONOMIC CLIMATE THAT IS ANTICIPATED. (b) SECULAR ( MEANS NOT SUBJECT TO OR BOUND BY RELIGIOUS RULES) TRENDS OF PRODUCTS & COMPETING COMMODITIES. (c) SEASONAL PATTERNS. (d) SHORT-RANGE OR IRREGULAR INFLUENCES INCLUDING PRICE CHANGES OR ADJUSTMENTS, LABOUR NEGOTIATIONS, PROMOTIONAL CAMPAIGNS etc. (e) DISTRIBUTION OR WHOLESALERS INVENTORY POSITIONS OF THE PRODUCT. 2. THE DETERMINATION OF PRODUCTION REQUIREMENTS TO ACCOMPLISH THE SALES FORECAST 3. THE DETERMINATION OF RAW MATERIAL REQUIREMENTS. 4. INVENTORY MANAGEMENT, BOTH RAW MATERIALS & FINISHED STOCK. 5. ESTABLISHMENT OR ASSISTING IN THE ESTABLISHMENT OF LABOUR REQUIREMENTS BASED ON PLANNED OPERATING LEVELS. 6. CUSTOMER ORDER PROCESSING. 7. ORDER PROMISING. 8. THE ISSUE OF PRODUCTION ORDERS TO PRODUCTION DEPT. AND 9. THE RELEASING OF SHIPMENTS TO CUSTOMERS. OBJECTIVES OF PPC 1. TO PLAN SYSTEMATICALLY PRODUCTION RELATED ACTIVITIES TO MEET TARGETS OF PRODUCTION WITH THE AVAILABLE RESOURCES OF THE FIRM. 2.TO PROVIDE FOR MANUFACTURING REQUIREMENTS SUCH AS MEN, MACHINES, MATERIALS etc. OF THE RIGHT QUALITY, IN THE RIGHT QUANTIES & AT THE RIGHT TIME. 3. TO SCHEDULE PRODUCTION FACILITIES IN THE OPTIMUM MANNER. 4. TO COORDINATE THE ACTIVITIES OF VARIOUS DEPTS RELATING TO PRODUCTION TO ACHIEVE REGULAR, STEADY & BALANCED FLOW OF PRODUCTION. 5. TO ENSURE CONFORMANCE TO DELIVERY COMMITMENTS & TO INFORM SALES DEPT REGARDING DIFFICULITIES, IF ANY, & PROVIDE FEEDBACK. 6. TO INFORM MANAGEMENT BEFORE HAND OF THE DIFFICULTIES WHICH MAY CROP UP LATER IN ACHIEVING PRODUCTION TARGETS.

FUNCTIONS OF PPC # GENERALLY THERE ARE TWO SETS OF FUNCTIONS--1. REGULAR FUNCTIONS----ARE THOSE WHICH ARE GENERALLY ASSIGNED TO PPC IN MOST OF THE ORGS, THOUGH THE IMPORTANCE OF THE FUNCTION MAY VARY FROM INDUSTRY TO INDUSTRY. 2. OPTIONAL FUNCTIONS-----ARE THOSE WHICH MAY BE ASSIGNED TO PPC DEPENDING UPON POLICY OF THE MANAGEMENT OF THE FIRM. # THE DETAILS OF BOTH TYPES OF FUNCTIONS ARE TABULATED BELOW :SR 1. 2 3. 4. 5. 6. 7. 8. REGULAR OR COMMON FUNCTIONS ORDER PREPARATION MATERIALS CONTROL PROCESS PLANNING TOOLS CONTROL SCHEDULING DISPATCHING PROGRESSING EXPEDITING OPTIONAL FUNCTIONS COST ESTIMATION ( COSTING DEPT ) WORK MEASUREMENT ( IE ) SUB-CONTRACT CAPACITY PLANNING DEMAND FORECASTING

ORG OF PPC DEPT # SETTING UP OF PPC DEPT NECESSITATES DECISIONS AS TO ITS STATUS IN THE COY, DEGREE OF CENTRALISATION DESIRABLE & THE MOST SUITABLE COMPOSITION OF THE INTERNAL STRUCTURE. # COYS MANUFACTURING PROCESS WILL DECTATE THE EXISTANCE OF PPC DEPT WHICH COULD BE ANALYSED AS :1. IF THE WORK IS HIGHLY REPETITIVE & THE NUMBER OF WORKMEN IS NOT VERY LARGE, THE WORK PLANNING MAY BE PERFORMED DIRECTLY BY THE LINE MANAGER /S, THERE BEING THUS NO FORMAL PPC DEPT IN THE COY. 2. IN MANUFACTURING UNITS WHERE PLANT & MACHINERY IS LAID OUT AS PER SEQUENCE OF OPERATIONS & THERE IS LITTLE DIFFERENCE IN MACHINE CAPACITY FOR DIFFERENT PRODUCTS, THE PPC MAY BE SUBDIVISION OF MANUFACTURING DEPT. 3. IN FIRMS, PPC SHOULD BE SET-UP AS AN INDEPENDENT DEPT--(a) WHERE EITHER THE PRODUCT VARIETY IS VERY LARGE OR (b) WHERE MACHINE CAPACITIES ARE DIFFERENT FOR DIFFERENT PRODUCTS OR (c) WHERE PLANT & MACHINERY IS LAID OUT AS PER FUNCTION IN DIFFERENT DEPTS NOT RELATED TO EACH OTHER # HERE THE IN-CHARGE OF PPC DEPT WOULD BE RESPONSIBLE TO THE MD, GM OR WORKS MANAGER DEPENDING UPON THE MAGNITUDE & COMPLEXITY OF THE PLANNING FUNCTIONS & THE SIZE OF THE FIRM.

# PLANNING ACTIVITIES COULD BE CENTRALISED OR DECENTRALISED :1. CENTRALISED PLANNING WHERE THE FUNCTIONS OF PRODUCTION PLANNING ARE CONTROLLED CENTRALLY BY STAFF SPECIALIST /S. 2. DECENTRALISED PLANNING WHERE PLANNING IS CARRIED OUT BY LINE STAFF, LIKE FOREMAN OR SUPERVISOR, WHO DIRECT NORMAL WORK IN THEIR RESPECTIVE DEPTS. # CENTRALISED PLANNING :1. IF THE PRODUCT AS WELL AS THE NUMBER OF SUB-ASSEMBLIES BEFORE GETTING THE END PRODUCT IS LARGE, WE GENERALLY ADOPT TO CENTRALISED PLANNING. 2. GREATER DEGREE OF CENTRALISATION IS RECOMMENDED IF THE NUMBER OF WORKMEN IS LARGE. 3. CENTRALISATION IS RECOMMENDED IF THE WORK PERFORMED ON MACHINES HAVE DIFFERENT CAPACITIES FOR DIFFERENT PRODUCTS. 4. THE CENTRALISED PLANNING TAKES AWAY THE BURDEN OF PLANNING FROM THE LINE STAFF WHICH LEAVES THEM FREE TO HANDLE MEN & MACHINES MORE EFFECTIVELY. # DECENTRALISED PLANNING :1. IT IS DESIRABLE WHEN THERE ARE NUMBER OF ULTIMATE PARTS & SUBASSEMBLIES IN THE END PRODUCT. 2. WHEN WORK IS CARRIED OUT BY A SMALL GP OF OPERATORS ENGAGED ON MACHINES & IN DEPTS WHICH ARE RELATED TO EACH OTHER. 3. IT GIVES LINE STAFF A SENSE OF PARTICIPATION & OPPORTUNITY TO USE THEIR EXPERIENCE. 4. IT TAKES AWAY LOT OF THEIR VALUABLE TIME IN PERFORMING PLANNING FUNCTIONS. STRCTURE OF PRODUCTION DEPT # THE FUNCTIONS TO BE DISCHARGED BY A DEPT DECTATES THE STRUCTURE OF THAT DEPT. THIS DEPENDS ON THE NATURE OF INDUSTRY, SIZE OF THE COY & THE MANAGEMENTS POLICIES. # IT IS A COMMON PRACTICE TO ASSIGN FOLLOWING FUNCTIONS TO PRODUCTION DEPT :1. ORDER PREPARATION 4. PROCESS PLANNING. 7. PROGRESSING 2. MATERIALS CONTROL. 5. SCHEDULING. 8. EXPEDITING. 3 TOOLS CONTROL 6. DISPATCHING.

# FEW COYS ASSIGN FOLLOWING FUNCTIONS ALSO TO PRODUCTION DEPT----1. COST ESTIMATION. 2. WORK MEASUREMENT. 3. DEMAND FORECASTING. 5. SUB-CONTRACTING. 5. CAPACITY PLANNING.

# MORE COMMON FUNCTIONS ALLOTED TO PRODUCTION DEPT COULD BE:1. MATERIALS CONTROL CELL. PLANNING CELL. 2. TOOLS CONTROL CELL. 3. PROCESS 5. DISPATCHING CELL.

4. SCHEDULING CELL.

6. PROGRESSING CELL.

7. COST ESTIMATION CELL. 8. SUB-CONTRACT CELL.

9.WORK MEASUREMENT CELL. # A REPRESENTATIVE PRODUCTION / OPERATIONS DEPT OF A COY COULD BE:DIRECTOR ( OPERATIONS ) | | | DEVELOPMENT DEPT FACTORY PRODUCTION PPC>>>>>>>>>>>>>>>>>>>>>>>>>>> ORDER PREPARATION MATERIAL CONTROL PROCESS PLANNING INSPECTION & QC TOOLS CONTROL. SCHEDULING PLANT MAINTENANCE DESPATCHING PROGRESSING.

CONCLUSION # PRODUCTION PLANNING IS THE DETERMINATION, ACQUISITION & ARRANGEMENT OF ALL FACILITIES NECESSARY FOR FUTURE PRODUCTION. PRODUCTION CONTROL CONCERNS WITH THE IMPLEMENTATION OF THE DECISIONS OF PRODUCTION PLANNING. # PRODUCTION PLANNING INCLUDES FUNCTIONS SUCH AS MATERIALS CONTROL, TOOLS CONTROL, PROCESS PLANNING & SCHEDULING. PRODUCTION CONTROL COVERS FUNCTIONS SUCH AS DISPATCHING, PROGRESSING & EXPEDITING. # MAJOR BENEFITS OF A GOOD PRODUCTION PLANNING & CONTROL ARE :1. 2. 3. 4. HIGHER EFFICIENCY OF PRODUCING SECTIONS. LOWER COST OF PRODUCTION, TIMELY DELIVERIES TO THE CUSTOMERS. LOWER INVENTORY INVESTMENTS.

# IN DICHARGING ITS PLANNING, CO-ORDINATING & CONTROL RESPONSIBILITIES, PPC DEPT NEEDS ACTIVE CO-OPERATION OF ALL DEPTS OF THE COY. THE ORGANISATION OF PPC / PRODUCTION / OPERATIONS DEPT IS TO BE TAILORE MADE FOR EVERY COY. SUMMARY----------PPC 1. 2. 3. 4. 5. 6. 7. 8. INTRODUCTION. WHAT IS PPC ? DEFINITIONS, MEANING & SCOPE OF PPC. FUNCTIONS & RESPONSIBILITIES OF PRODUCTION PLANNING. OBJECTIVES OF PPC. FUNCTIONS OF PPC. OGR OF PPC / PRODUCTION /OPERATIONS DEPT. CONCLUSION.

PROGRAMME EVALUATION & REVIEW TECHNIQUES ( PERT ) / CRITICAL PATH METHOD ( CPM )
INTRODUCTION # PERT & CPM ARE THE TWO TECHNIQUES USED FOR PPC & PROJECT MANAGEMENT. # PROJECT MANAGEMENT IS A UNIQUE JOB THAT MAKES A ONE-OFF PRODUCT. IT HAS A DISTINCT START & FINISH & ALL OPERATIONS MUST BE COORDINATED WITHIN THIS TIME FRAME. PROJECT MANAGEMENT DEALS WITH ALL ASPECTS OF PLANNING, ORGANISING, STAFFING & CONTROLLING A PROJECT. # THIS PLANNING & CONTROL IS ACHIEVED BY DRAWING VARIOUS NETWORK ANALYSIS. PERT & CPM ARE TWO OF MAIN NETWORK ANALYSIS TECHNIQUES. # CPM WAS FIRST USED IN 1957 BY E. I. du Pont de Nemours & Co. TO IMPROVE THE PLANNING, SCHEDULING & COORDINATION OF ITS NEW-PLANT CONSTRUCTION EFFORT. # THE SPECIAL PROJECT OFFICE OF THE U.S. NAVY, CONCERNED WITH PERFORMANCE TRENDS ON LARGE MILITARY DEVELOPMENT PROGRAMMES, INTRODUCED PERT ON ITS POLARIS WEAPON SYSTEM IN 1958. # THOUGH THE TWO TECHNIQUES WERE DEVELOPED INDEPENDENTLY, THEY ARE ONLY SUPERFICIALLY DIFFERENT. THE TWO METHODS HAVE MANY FEATURES IN COMMON & ARE NOW COMBINED INTO A TECHNIQUE CALLED CRITICAL PATH ANALYSIS ( CPA ) OR NETWORK ANALYSIS. NETWORK ANALYSIS # NETWORK ANALYSIS IS A TECHNIQUE FOR PLANNING & CONTROLLING COMPLEX PROJECTS & FOR SCHEDULING THE RESOURCES REQUIRED ON SUCH PROJECTS. IT ACHIEVES THIS AIM BY ANALYSING THE COMPONENT PARTS OF A PROJECT & ASSESSING THE SEQUENTIAL RELATIONSHIPS BETWEEN EACH EVENT. THE RESULTS OF THIS ANALYSIS ARE REPRESENTED DIAGRAMMATICALLY AS A NETWORK OF INTERRELATED ACTIVITIES. # WHAT CAN CPA OR NETWORK ANALYSIS GIVE ? :- OFFERS SEVERAL ADVANTAGES AS FOLLOWS :1. FORCES A THOROUGH PRE-PLANNING. EACH & EVERY ACTIVITY COMPRISING THE PROJECT IS IDENTIFIED & RECORDED. NOTHING IS LEFT TO MEMORY OR CHANCE WHICH PREVENTS CRISES IN SCHEDULING. 2. INCREASES COORDINATION OF TASKS AS TECHNOLOGICAL RELATIONSHIPS BETWEEN THE ACTIVITIES SUGGEST WHICH ACTIVITIES CAN RUN SIMULTANEOUSLY & WHICH SHOULD SUCCEED OTHERS.

3. HELPS COMPUTATION OF DIFFERENT PROJECT DURATIONS FOR DIFFERENT LEVEL OF RESOURCES & THEREBY SELECT A PLAN THAT MINIMISES TOTAL PROJECT COST. ( COMPUTATION IS MATHEMATICAL CACULATION ). 4. INDICATES OPTIMAL START & FINISH TIMES OF EACH ACTIVITY OF THE PROJECT. 5. DEFINES AREAS OF RESPONSIBILITY OF DIFFERENT DEPARTMENTAL HEADS FOR TIMELY EXECUTION OF THE PROJECT. 6. FACILITATES PROGRESS REPORTING & LIMITS UNNECCESSARY DISCUSSION AT THE PROGRESS MEETINGS TO MINIMUM.. 7. IDENTIFIES TROUBLE SPOTS OFTEN IN ADVANCE & APPLY REMEDIAL MEASURES. 8. ENABLES THE PLAN TO BE REVISED IN ACCORDANCE WITH CHANGES / CHANGING CIRCUMSTANCES. AND 9. HELPS TO EXERCISE CONTROL BY EXCEPTION & PREVENT COST OVERRUNS. NETWORK LOGIC # A NETWORK IS A GRAPHICAL REPRESENTATION OF THE PROJECT & IS COMPOSED AS SERIES OF CONNECTED ARROWS & CIRCLES TO DESCRIBE THE INTER-RELATIONSHIP OF THE ACTIVITIES INVOLVED. # THE NETWORK IS CONSTRUCTED FROM THE FOLLOWING ELEMENTS :# ACTIVITY----AN ACTIVITY REPRESENTS A TASK WHICH HAS A DEFINITE BEGINNNING & DEFINITE END. AN ACTIVITY IS REPRESENTED BY AN ARROW ( ). THE DESCRIPTION OF THE ACTVITY IS WRITTEN ABOVE THE ARROW & THE TIME IT CONSUMES IS WRITTEN BELOW THE ARROW DESIGN 4 WEEKS

# WORDS LIKE DESIGN, CAST, MACHINE, DEVELOP etc ARE USED TO DESCRIBE ACTIVITIES. # GENERAL COVENTIONS CONCERNING ACTIVITIES ARE :1. ACTIVITIES PROCEED FROM LEFT TO RIGHT. THE TAIL OF THE ARROW REPRESENTS THE START OF AN ACTIVITY & HEAD OF THE ARROW REPRESENTS THE COMPLETION OF THE ACTIVITY. 2. THE LENGTH OF THE ARROW IS NOT IMPORTANT. THAT IS THERE IS NO RELATIONSHIP BETWEEN THE DURATION OF AN ACTIVITY & THE LENGTH OF THE ARROW. 3. ARROWS DO NOT NEED TO BE ONLY IN THE HORIZONTAL PLANE. VERTICAL PLANE CAN ALSO BE USED ( THAT IS ARROWS MAY BE STRAIGHT, VERTICAL OR BENT BUT NOT BROKEN ) 4. ACTIVITIES ARE PROPERLY IDENTIFIED USING ANY ONE OF THE METHODS GIVEN BELOW :-

(a) SHORTENED DESCRIPTIONS LIKE DESIGN, DRAFT, PAINT WALL, FIX DOOR etc. (b) ALPHABETICAL CODES LIKE A, D, a, h etc (c) PAIRS OF NUMBER OF THE EVENTS LINKED BY THE ACTIVITY LIKE 1-2, 2-4, 3-7 etc. 5. DURATION FOR THE ACTIVITIES ARE WRITTEN BELOW THEIR CORRESPONDING ARROWS & THEY HAVE COMMON UNIT THAT IS HOURS, DAYS, WEEKS etc. # EVENTS :- EVENTS REPRESENT START OR FINISH POINTS OF ACTIVITIES. THEY ARE USUALLY REPRESENTED BY CIRCLES & THEY ARE NUMBERED. SINCE EACH ACTIVITY HAS A DEFINITE BEGINNING & DEFINITE END, EACH ARROW REPRESENTING THE ACTIVITY IS BOUNDED BY TWO EVENTS THAT IS CIRCLES.

ACTIVITY

STARTING EVENT

COMPLETION OF EVENT

# EVENTS ARE DESCRIBED BY WORDS LIKE DESIGNED, STARTED, ISSUED, APPROVED, TESTED etc. # METHODS OF REPRESENTING ACTIVITIES & EVENTS :-

INCORRECT

A E ACTIVITY CORRECT

B ACTIVITY

MERGE EVENT

BURST EVENT

---------------------------------------------------------------------------------------------------------------------A C COMBINATION OF MERGE & BURST EVENT D B

# ACTIVITY RELATIONSHIP : A PROJECT IS MADE OF VARIOUS ACTIVITIES WHICH ARE INTERRELATED ( PROJECTS ARE LARGE NON-REPETITIVE TASKS ). TO CONSTRUCT A NETWORK, THE PROJECT IS FIRST TORN INTO ITS ACTIVITIES & THEN TECHNOLOGICAL RELATIONSHIPS BETWEEN THE ACTIVITIES ARE ESTABLISHED. THERE COULD BE THREE POSSIBLE RELATIONSHIPS :1. CONCURRENT ACTIVITIES---ACTIVITIES WHICH ARE PERFORMED SIMULTANEOUSLY. 2. SUCCEEDING ACTIVITIES-----THESE ARE THOSE ACTIVITIES WHICH MUST FOLLOW OTHERS. AND 3. PRECEDING ACTIVITIES---THESE ARE THOSE ACTIVITIES WHICH PRECEDE OTHERS. # FEW ILLUSTRATIONS ARE GIVEN BELOW :ACTIVITY B CANNOT START UNTIL ACTIVITY A IS COMPLETED. A IS PRECEDING ACTIVITY & B IS SUCCEEDING ACTIVITY # FOR MORE ACTIVITY RELATIONSHIPS, REFER APPX A A B

# DUMMY ACTIVITIES :- IT REQUIRES NEITHER TIME NOR RESOURCES. THEY ARE USED EITHER TO SIGNIFY A CONSTRAINT OR TO AVOID AMBIGUITIES OR ILL-LOGICALITIES. DUMMY ACTIVITIES ARE INDICATED BY DOTTED LINES. ----REF APPX B # IT FOLLOWS THE GENERAL RULE---TWO ACTIVITIES CANNOT HAVE COMMON START AS WELL AS COMMON FINISH POINTS. THEY CAN HAVE EITHER COMMON START OR FINISH, BUT NOT BOTH.. PROCEDURAL STEPS FOR CPM 1.ACTIVITY IDENTIFICATION----- BREAK DOWN A PROJECT INTO A SET OF IDENTIFIABLE ACTIVITIES. 2.ACTIVITY RELATIONSHIP---ESTABLISH TECHNOLOGICAL RELATIONSHIPS BETWEEN THE ACTVITIES. 3.NETWORK CONSTRUCTION-----CONSTRUCT AN ARROW DIAGRAM CALLED NETWORK 4. NODE LABELLING-----NUMBER THE EVENTS USING FULKERSONS RULE OF NUMBERING. 5. ACTIVITY TIME ESTIMATION------ESTIMATE TIME DURATION OF EACH ACTIVITY OF THE PROJECT.

6. NETWORK TIME ANALYSIS & ACTIVITY FLOAT ANALYSIS----IDENTIFY CRITICAL PATH, CRITICAL ACTVITIES & SLACK OF NON-CRITICAL ACTIVITIES. 7. PROBABILITY ASPECTS OF PROJECT PLANNING----IF THE ACTIVITY TIMES ARE DETERMINISTIC, FIND THE EXPECTED DURATION OF THE PROJECT. IF NO, FIND THE EXPECTED DURATION OF THE PROJECT & PROBABILITY OF COMPLETING THE PROJECT BY A TARGET DATE. 8. PROJECT CRASHING---COLLECT ACTIVITY TIME COST DATA. 9. RESOURCE ALLOCATION & RESOURCE LEVELLING-----REVIEW RESOURCE REQUIREMENTS & ENSURE THAT RESOURCE REQUIREMENTS OF ALL ACTIVITIES DO NOT EXCEED RESOURCE AVAILABILITY & REQUIREMENT OF THE RESOURCE DURING THE DURATION OF THE PROJECT IS AS UNIFORM AS POSSIBLE. 10. PROJECT SCHEDULING-----PREPARE A TIME SCHEDULE FOR THE ACTIVITIES OF THE PROJECT. AND 11. PROJACT MONITORING-----REVIEW PROGRESS PERIODICALLY & EXPEDITE, IF REQUIRED. # ACTIVITY IDENTIFICATION---A PROJECT COMPRISES OF A SERIES OF ACTIVITIES & IDENTIFICATION OF THE INDIVIDUAL ACTIVITIES REQUIRES KNOWLEDGE & EXPERIENCE OF THE MEN RESPONSIBLE FOR THE PLANNING OF THE PROJECT. EVEN THE PRELIMINARIES----THAT IS MERE LISTING OF THE ACTIVITIES ---MAKE THE OPERATING PERSONNEL :1. THINK OF DETAILS ABOUT THE PROJECT WELL IN ADVANCE. 2. OBSERVE CRITICALLY THE WAY IN WHICH THE VARIOUS ACTIVITIES INTERACT OR COMPETE FOR SCARCE RESOURCES. 3. IMPROVE UPON ORIGINAL PLANS BEFORE NETWORK IS FORMALLY DRAWN & ANALYSED. # A PROJECT, THEREFORE, MUST BE DEVIDED INTO A SET OF IDENTIFIABLE ACTIVITIES. THERE ARE NO SET RULES BUT GENERAL GUIDELINES ARE AS UNDER :1. AN ACTIVITY SHOULD REPRESENT THE SMALLEST UNIT OF THE OPERATION OR SET OF OPERATIONS OVER WHICH MANAGEMENT DESIRES CONTROL. 2. AN ACTIVITY SHOULD REPRESENT AN OPERATION OR SET OF OPERATIONS WHICH CAN BE PERFORMED USING A PARTICULAR KIND OF EQPT OR SPECIAL SKILL. EXAMPLE---- IN CONSTRUCTION PROJECT, PLUMBING IS CONSIDERED AS ONE ACTIVITY WHILE WIRING CAN BE CONSIDERED AS ANOTHER ACTIVITY SINCE THE FIRST ACTIVITY REQUIRES PLUMBERS & THE SECOND ACTIVITY NEEDS ELECTRICIANS. 3. THE NUMBER OF ACTVITIES SHOULD BE LIMITED OTHERWISE THE NETWORK MAY BECOME VERY COMPLEX TO BE HANDLED. # ACTVITY RELATIONSHIP------AFTER THE PROJECT HAS BEEN BROKEN INTO ACTIVITIES, THE NEXT LOGICAL STEP IS TO ESTABLISH TECHNOLOGICAL RELATIONSHIPS. ACTIVITIES MAY BE CLASSIFIED AS INITIAL ACTIVITIES, CONCURRENT ACTIVITIES, PRECEDING ACTIVITIES, SUCCEEDING ACTIVITIES & END ACTIVITIES. 1. INITIAL ACTIVITIES ARE THOSE WHICH CAN START AT THE OUTSET OF THE PROJECT.

2. CONCURRENT ACTIVITIES ARE THOSE WHICH CAN BE PERFORMED SIMULTANEOUSLY. 3. SUCEEDING ACTIVITIES ARE THOSE WHICH DEPEND ON OTHERS. 4. PRECEDING ACTIVITIES ARE THOSE ON WHICH SUCCEEDING ACTIVITIES DEPEND. AND 5. END ACTIVITIES ARE THOSE WHICH ARE THE LAST ONES IN THE PROJECT. NETWORK CONSTRUCTION # REFER TO APPX C ACTIVITY TIME ESTIMATION # ONE OF THE MAJOR REQUIREMENTS OF THE PROJECT MANAGEMENT IS THE PREPARATION OF THE FEASIBLE TIME SCHEDULE FOR THE VARIOUS ACTIVITIES COMPRISING THE PROJECT. FEASIBILITY OF TIME SCHEDULE REQUIRES THAT AN ACTIVITY BE SCHEDULED ONLY WHEN ALL ITS PREDECESSORS ARE SCHEDULED. FOR PREPARING SUCH A SCHEDULE, INFO IS NEEDED ABOUT THE DURATION IN WHICH VARIOUS ACTIVITIES CAN BE COMPLETED. THE DURATION OF EACH ACTIVITY IS REFERRED TO AS ACTIVITY TIME. # ACTIVITY TIME ESTIMATES IS AN IMPORTANT TASK. SUCCESS IN TIMELY COMPLETION OF THE PROJECT LARGELY DEPENDS ON THE ACCURACY OF ACTIVITY TIMES. ACTIVITY TIMES MAY BE ESTABLISHED FROM HISTIRICAL DATA, PAST EXPERIENCE, JUDGEMENT etc. # FEW IMPORTANT CONSIDERATIONS CONCERNING ACTIVITY TIMES ARE GIVEN BELOW :1. ACTIVITY TIME SHOULD BE OBTAINED FROM THE PERSON RESPONSIBLE FOR THE COMPLETION OF THE ACTIVITY. 2. ACTIVITY TIME MUST BE INDEPENDENT OF ANY INFLUENCE WHICH THE PRECEDING OR SUCCEEDING ACTIVITY MAY HAVE ON IT. 3. ACTIVITY TIME SHOULD BE BASED ON THE ASSUMPTION THAT RESOURCES REQUIRED TO CARRY OUT THE ACTIVITY ARE AVAILABLE. 4. ACTIVITY TIME MAY ASSUME THAT JUST THE NORMAL QUANTITY OF RESOURCES REQUIRED TO CARRY OUT THE ACTIVITY ARE AVAILABLE. 5. ACTIVITY TIME SHOULD INCLUDE ONLY THE NORMAL DELAYS & INTERRUPTIONS DUE TO BREAKDOWNS, ABSENTEEISM & SHOP EFFICIENCY , TIME FOR MAINT etc. THE EFFECT OF UNFORESEEN CONTINGENCIES SUCH AS FIRES, STRIKES, FLOODS etc. SHOULD NOT BE CONSIDERED. AND 6. ACTIVITY TIME MAY BE BASED ON SINGLE TIME ESTIMATE OR THREE TIME ESTIMATE DEPENDING UPON WHETHER THE ACTIVITY TIMES ARE DETERMINISTIC OR PROBABILISTIC.

PERT CONCEPT OF MULTIPLE TIMES # ONE MAJOR DIFFERENCE BETWEEN PERT & CPM IS THE ADAPTABILITY BY PERT FOR THE PROJECTS WHERE HIGH DEGREE OF UNCERTAINTY PREVAILS & ACTIVITY TIMES DURING PERFORMANCE ARE EXPECTED TO VARY COSIDERABLY FOR CERTAIN ACTIVITIES. # THE CONCEPT OF MULTIPLE TIMES ( THREE TIME ESTIMATES ) WAS EVOLVED IN PERT TO REDUCE THE INCIDENCE OF UNCERTAINTY IN PROJECT PLANNING. THE THREE TIME ESTIMATES ARE :1. OPTIMISTIC TIME ( a )---THIS INDICATES THE MINI TIME THAT AN ACTIVITY CAN TAKE IF EVERYTHING GOES SMOOTHLY WITHOUT ANY INTERRUPTIONS. THE CHANCES THAT SUCH A TIME COULD EVEN BE SHORTER SHOULD BE ONE IN HUNDRED OR LESS. THE OPTIMISTIC TIME IS REPRESENTED BY a. 2. PESSIMISTIC TIME ( b )------THIS INDICATES THE MAX TIME AN ACTIVITY CAN TAKE UNDER ADVERSE CONDITIONS. THE CHANCES THAT THIS TIME COULD EVEN BE LONGER SHOULD BE IN HUNDRED OR LESS. THE PESSIMISTIC TIME IS DENOTED BY b. 3. MOST LIKELY TIME ( m )------THIS INDICATES THE TIME AN ACTIVITY CAN TAKE MOST OFTEN IF IT IS REPEATED AGAIN & AGAIN UNDER THE SAME CONDITIONS. MOST LIKELY TIME IS DENOTED BY m. # THREE TIME ESTIMATES ARE NOT DIRECTLY ENTERED INTO THE NETWORK. THEY ARE TRANSFORMED INTO AN EXPECTED TIME ( te ) USING THE STATISTICAL RELATION GIVEN BELOW :te = a + 4m + b / b NETWORK TIME ANALYSIS ( CRITICAL PATH ) # MEANING OF CRITICAL PATH---- A NETWORK CONSISTS OF CHAINS OF ACTIVITIES CALLED PATHS OF NETWORK. ADDITION OF DURATIONS OF ACTIVITIES ON ANY PATH GIVES THE DURATION OF THAT PATH. THE COMPARISON OF DURATIONS OF THE PATHS IDENTIFIES A PATH WHOSE DURATION IS THE LONGEST. IT IS THIS PATH, THE PATH WITH THE LONGEST DURATION, WHICH SETS THE OVERALL DURATION OF THE PROJECT IS CALLED CRITICAL PATH. AND THE ACTVITIES ON THE CRITICAL PATH ARE KNOWN AS CRITICAL ACTIVITIES.

# AN ILLUSTRATION ON IDENTIFICATION OF THE CRITICAL PATH :-

O
4 2

O
7

O
7

O
7

O
5 7 7

O
2

O
( a ) PATH----7 + 7+2 + 4 + & + 2 =29 DAYS ( b) PATH---------7 + 7 +5 + 2 = 21 DAYS ( c ) PATH------- 7 + 7 + 7 + 7 + 2 = 30 DAYS----CRITICAL PATH AS IT REQUIRES THE LONGEST TIME. FOR COMPLETION OF THE PROJECT. # CRITICAL PATH IS SHOWN IN THE NETWORK BY EITHER RED LINE OR BY DOUBLE LINE OR BY THICK LINE. NON-CRITICAL PATHS & FLOAT TIMES # ALL ACTIVITY CHAINS WHICH DO NOT LIE ON THE CRITICAL PATH ARE CALLED NON-CRITICAL PATHS & THE ACTIVITIES ALONG THESE PATHS ARE CALLED NON-CRITICAL ACTIVITIES. LOGICALLY, IT WOULD NOT AFFECT THE PROJECT COMPLETION TIME IF SUCH ACTIVITIES TAKE LITTLE LONGER TIME THAN PLANNED BUT CERTAINLY LESS THAN TIME TAKEN BY CRITICAL PATH. # ALTHOUGH NON-CRITICAL ACTIVITIES CAN SAFELY BE ALLOWED TO TAKE LONGER THAN PLANNED YET IT IS IMPORTANT THAT THE EXTENDED TIME SHOULD NOT RESULT IN TOTAL CHAIN TIME OF ACTIVITIES TO EXCEED TIME ALONG THE PARALLEL CRITICAL PATH. # THE SPARE TIME WHICH IS CALLED FLOAT OR SLACK CAN BE OBTAINED BY SUBTRACTING THE NON-CRITICAL PATH TIME FROM THE PARALLEL CRITICAL PATH TIME. FOR EXAMPLE : (a ) 14- ( 2 + 4 + 7 ) = 1 DAY FLOAT TIME ( b ) 14 5 = 9 DAYS FLOAT TIME

FORWARD PASS COMPUTATION ( EARLIEST EVENT TIMES ) # EARLIEST EVENT TIME REPRESENTS THE EARLIEST POSSIBLE OCCURRENCE TIME OF EVENT WHICH GIVES THE EARLIEST POSSIBLE START TIME OF THE ACTIVITY ( IES ) EMANATING FROM THE EVENT. # THE FOLLOWING BASIC RULES GOVERN THE COMPUTATION OF THE EARLIEST EVENT TIMES :1. THE FIRST ACTIVITY OF THE PROJECT CAN BE STARTED AS SOON AS THE PROJECT IS UNDERTAKEN WHICH IMPLIES THAT THE EARLIEST EVENT TIME OF THE INITIAL EVENT IS ZERO. 2. EACH ACTIVITY OF THE NETWORK STARTS AS SOON AS THE ACTIVITY PRECEDING TO IT IS COMPLETED. THIS IMPLIES THAT THE EARLIEST EVENT TIME OF A PLAIN EVENT EQUALS TO THE PRECEDING EVENT PLUS DURATION OF ACTIVITY EMANATING FROM THE PRECEDING EVENT. BACKWARD PASS COMPUTATION ( LATEST ALLOWABLE EVENT TIMES ) # LATEST EVENT TIME REPRESENTS THE LATEST OCCURRENCE TIME OF THE EVENT. ACTIVITY FLOAT ANALYSIS # FLOAT IS AN IMPORTANT CONCEPT IN PROJECT PLANNING. IT ALLOWS PLANNERS TO :1. DECIDE PRIORITIES IN ALLOCATIO OF RESOURCES. 2. TRANSFER RESOURCES FROM LESS PRESSING AREAS TO MORE PRESSING AREAS. 3. MINIMISE REQUIREMENTS OF RESOURCE. AND 4. PREVENT PEAKS & VALLEYS IN REQUIREMENTS OF A RESOURCE. # FLOAT OF AN ACTIVITY REPRESENTS THE EXCESS OF AVAILABLE TIME OVER ITS DURATION. FLOAT, THEREFORE, IS THE LEEWAY AVAILABLE TO THE PROJECT PLANNER FOR HIS SCHEDULING ACTIVITY. # TYPES OF FLOATS TWO TYPES---TOTAL FLOAT & FREE FLOAT. # TOTAL FLOAT ( Ft )---IT SIGNIFIES THE MAX DELAY THAT CAN BE PERMITTED IN THE COMPLETION OF THE ACTIVITY WITHOUT AFFECTING THE PROJECT COMPLETION. TOTAL FLOAT CAN BE INTERPRETED IN TWO WAYS :1. THE MAX TIME AVAILABLE TO DELAY THE COMMENCEMENT OF AN ACTVITY. 2. THE MAX EXPANSION IN THE DURATION OF THE ACTIVITY. AND 3. SOME COMBINATION OF ONE & TWO ABOVE. # IF TOTAL FLOAT IS USED UP IN AN ACTIVITY, THAT ACTIVITY & SUBSEQUENT ACTIVITIES IN THE CHAIN BECOME CRITICAL.

TOTAL FLOAT=LATEST OCCURANCE TIME OF THE SUCCEEDING EVENT MINUS EARLIEST OCCURANCE TIME OF THE PRECEDING EVENT MINUS DURATION OF THE ACTVITY # FREE FLOAT ( Fr )-----FREE FLOAT IS THE AMOUNT OF TIME AN ACTVITY CAN BE DELAYED WITHOUT AFFECTING THE COMMENCEMENT OF A SUCCEEDING ACTIVITY AT ITS EARLIEST START TIME BUT MAY AFFECT THE FLOAT OF PREVIOUS ACTIVITY. FREE FLOAT RESULTS WHEN ALL PRECEDING ACTIVITIES OCCUR AT THE EARLIEST EVENT TIMES & ALL SUCCEEDING ACTIVITIES ALSO OCCUR AT THE EARLIEST EVENT TIMES. FREE FLOAT = EARLIEST OCCURANCE TIME OF THE SUCCEEDING EVENT MINUS EARLIEST OCCURANCE TIME OF THE PRECEDING EVENT MINUS DURATION OF THE ACTVITY # THE CONVENTIONS USED IN RECORDING OF EVENTS & TIMES IS GIVEN BELOW

EARLIEST EVENT TIME ( TE )

EVENT No

LATEST EVENT TIME ( TL )

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