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UNIT-I
According to the institute of industrial and systems engineers, they create engineering
processes and systems that improve quality and productivity.
The American Institute of Industrial Engineers (A.I.I.E) has defined the special field of
Industrial Engineering as –
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Industrial Engineering & Management
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MANAGEMENT
Management is the dynamic, life giving element in every business. As Peter drucker
has observed without management our resources of production remain resources and never
become production. By bringing together the four factors of production (viz.,, men, money,
material and machine) management enables society to get better and increased the supply of
goods.
Management has become a part and parcel in everyday life, be it at home, office,
factory, government, or in any other organization where a group of human beings assemble
for a common purpose. Management principles come in to play through their various facets
like management of time, resources, personnel, material, machine, finance, planning,
priorities, policies and practice.
Management is a systematic way of doing all activities in any field of human efforts.
It is about keeping oneself engaged in interactive relationship with other human beings in the
course of performing one’s duty. Its task is to make people capable of joint performance, to
make their weakness irrelevant. So says the management guru Peter Drucker.
“Management is the art of getting things done through and with the people in formally
organized groups”.
“Management is defined for conceptual, theoretical and analytical purposes as that process by
which managers create, direct, maintain, and operate purposive organization through
systematic, co-ordinated co-operative human effort”.
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This definition calls attention to the fundamental difference between a manager and
other personnel of an organization. Manager is one who contributes to the organization’s
goals indirectly by directing the efforts of others not by performing the tasks himself. On the
other hand, a person who is not a manager makes his contribution to the organization’s goals
directly by performing the task himself.
Some times, however, a person in an organization may play both these roles
simultaneously.
For example, a sales manager is performing a managerial role when he is directing his sales
force to meet the organization’s goals, but when he himself is contacting a large customer and
negotiating a deal, he is performing a non-managerial role. In the former role, he is directing
the efforts of others and is contributing to the organization’s goals indirectly; in the later role,
he directly utilizing his skills as a sales-man to meet the organization’s objectives.
NATURE OF MANAGEMENT
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PRINCIPLES OF MANAGEMENT
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career progress are assured to them. An insecure tenure and a high rate of
employee turnover will affect the organization adversely.
13. Initiative. Allowing all personnel to show their initiative in some way is a source
of strength for the organization. Even though it may well involve a sacrifice of
‘personal vanity’ on the part of many managers.
14. Team Spirit (Esprit de Corps). Management must foster the morale of its
employees. He further suggests that: “real talent is needed to coordinate effort,
encourage keenness, use each person’s abilities, and reward each one’s merit
without arousing possible jealousies and disturbing harmonious relations.”
Management process suggests that all the managers in the organization perform
certain functions to get the things done by others.
planning
Controlling Organising
Directing Staffing
Organizing :- It is the process of dividing work into convenient tasks or duties, grouping of
such duties in the form of positions, grouping of various positions into departments and
sections, assigning duties to individual positions, and delegating authority to each position so
that the work is carried out as planned.
Staffing :- Staffing involves filling the various positions created by the organization process.
It includes preparing inventory of personnel available and identifying gap between man
power required and available; identifying the sources from where people will be selected,
selecting people, training and developing them, fixing financial compensation.
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Directing :- When people are available in the organization, they must know what they are
expected to do in the organization. Superior managers fulfill this requirement by
communicating to subordinates about their expected behavior. In the process of directing his
subordinates, a manager takes active steps to ensure that employees accomplish their tasks
according to the established plans.
Fredrick Winslow Taylor ( March 20, 1856 - March 21, 1915) commonly known as ’Father
of Scientific Management’ started his career as an operator and rose to the position of chief
engineer. He conducted various experiments during this process which forms the basis of
scientific management. It implies application of scientific principles for studying &
identifying management problems.
According to Taylor, “Scientific Management is an art of knowing exactly what you want
your men to do and seeing that they do it in the best and cheapest way”. In Taylors view, if a
work is analyzed scientifically it will be possible to find one best way to do it.
Hence scientific management is a thoughtful, organized, dual approach towards the job of
management against hit or miss or Rule of Thumb.
According to Drucker, “The cost of scientific management is the organized study of work, the
analysis of work into simplest element & systematic management of worker’s performance of
each element”.
This principle says that we should not get stuck in a set routine with the old techniques of
doing work, rather we should be constantly experimenting to develop new techniques which
make the work much simpler, easier and quicker.
As per this principle, such an atmosphere should be created in the organisation that labour
(the major factor of production) and management consider each other indispensable.
Taylor has referred to such a situation as a ‘Mental Revolution’. Taylor firmly believed that
the occurrence of a mental revolution would end all conflicts between the two parties and
would be beneficial to both of them.
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According to this principle, all the activities done by different people must be carried on with
a spirit of mutual cooperation. Taylor has suggested that the manager and the workers should
jointly determine standards. This increases involvement and thus, in turn, increases
responsibility. In this way we can expect miraculous results.
(4) Development of Each and Every Person to His / Her Greatest Efficiency and
Prosperity:
According to this principle, the efficiency of each and every person should be taken care of
right from his selection. A proper arrangement of everybody’s training should be made.
It should also be taken care that each individual should be allotted work according to his
ability and interest. Such a caring attitude would create a sense of enthusiasm among the
employees and a feeling of belongingness too.
The eminent psychologist Douglas McGregor has given his theory of motivation
called Theory X and Theory Y. He first presented his theory in a classic article titled 'The
Human Side of Enterprise'. He treated traditional approach to management as 'Theory X' and
the professional approach to management as 'Theory Y'. His theory refers to two sets
of employees based on the perception of human nature. Here, theory X and theory Y are two
sets of assumptions about the nature of employees. His theory is based on human behavior.
Theory X.
Theory X is based on traditional assumptions about people (employees). Here, the
conventional approach of management is used as a base. It suggests the following features of
an average human being/employee (assumptions about human nature):
Assumptions of Theory X.
1. The average human being is inherently lazy by nature and desires to work as little as
possible. He dislikes the work and will like to avoid it, if he can.
2. He avoids accepting responsibility and prefers to be led or directed by some other.
3. He is self-centered and indifferent to organizational needs.
4. He has little ambition, dislikes responsibility, prefers to be led but wants security.
5. He is not very intelligent and lacks creativity in solving organizational problems.
6. He by nature resists to change of any type.
Theory Y.
Theory Y is based on modern or progressive or professional approach. Here, the
assumptions about people i.e. employees are quite different.
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Assumptions of Theory Y.
Work is as natural as play, provided the work environment is favorable. Work may act as a
source of satisfaction or punishment. An average man is not really against doing work.
1. People can be self-directed and creative at work if they are motivated properly.
2. Self-control on the part of people is useful for achieving organizational goal. External
control and threats of punishment alone do not bring out efforts towards organizational
objectives.
3. People have capacity to exercise imagination and creativity.
4. People are not by nature passive or resistant to organizational needs. They have become so
as a result of experience in organisations.
5. An average human being learns under proper conditions. He is also willing to accept
responsibility.
6. The intellectual capacity of an average human being is utilised partially under the
conditions of modern industrial life.
UNIT-II
PLANT LOCATION
Plant location refers to the choice of region and the selection of a particular site for
setting up a business or factory. But the choice is made only after considering cost and
benefits of different alternative sites. It is a strategic decision that cannot be changed once
taken. If at all changed only at considerable loss, the location should be selected as per its
own requirements and circumstances. Each individual plant is a case in itself. Businessman
should try to make an attempt for optimum or ideal location.
Primary factors
Availability of raw materials :- Availability of raw materials is the most important factor in
plant location decisions. Usually, manufacturing units where there is the conversion of raw
materials into finished goods is the main task then such organizations should be located in a
place where the raw materials availability is maximum and cheap.
Nearness to the market :-Nearness of market for the finished goods not only reduces the
transportation costs, but it can render quick services to the customers. If the plant is located
far away from the markets then the chances of spoiling and breakage become high during
transport. If the industry is nearer to the market then it can grasp the market share by offering
quick services.
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Availability of labor :- Another most important factor which influences the plant location
decisions is the availability of labor. The combination of the adequate number of labor with
suitable skills and reasonable labor wages can highly benefit the firm. However, labor-
intensive firms should select the plant location which is nearer to the source of manpower.
Transport facilities :- In order to bring the raw materials to the firm or to carrying the
finished goods to the market, transport facilities are very important. Depending on the size of
the finished goods or raw materials a suitable transportation is necessary such as roads, water,
rail, and air. Here the transportation costs highly increase the cost of production, such
organizations can not complete with the rival firms. Here the point considered is
transportation costs must be kept low.
Availability of fuel and power :- Unavailability of fuel and power is the major drawback in
selecting a location for firms. Fuel and power are necessary for all most all the manufacturing
units, so locating firms nearer to the coal beds and power industries can highly reduce the
wastage of efforts, money and time due to the unavailability of fuel and power.
Availability of water :- Depending on the nature of the plant firms should give importance
to the locations where water is available.
For example, power plants where use water to produce power should be located near the
water bodies.
Secondary factors
Availability of finance :-Finance is the most important factor for the smooth running of any
business; it should not be far away from the plant location. However, in the case of decisions
regarding plant location, it is the secondary important factor because financial needs can be
fulfilled easily if the firm is running smoothly. But it should be located nearer to the areas to
get the working capital and other financial needs easily.
Competition between states :- In order to attract the investment and large scale industries
various states offer subsidies, benefits, and sales tax exemptions to the new units. However,
the incentives may not be big but it can help the firms during its startup stages.
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Disposal of waste :-Disposal of waste is a major problem particularly for industries such as
chemical, sugar, and leather, etc. So that the selected plant location should have provision for
the disposal of waste.
PLANT LAYOUT
Definition:
Plant layout refers to the arrangement of physical facilities such as machines,
equipment, tools, furniture etc. in such a manner so as to have quickest flow of material at the
lowest cost and with the least amount of handling in processing the product from the receipt
of raw material to the delivery of the final product.
TYPES OF LAYOUT:
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PROCESS LAYOUT:
In this type of layout the machines of a similar type are arranged together at one place. This
type of layout is used for batch production. It is preferred when the product is not
standardized and the quantity produced is very small.
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COMBINED LAYOUT:
RAW
MATERIAL
LABOUR
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MAINTENANCE MANAGEMENT
The term ‘maintenance’ means to keep the equipment in operational condition or repair it to
its operational mode. Main objective of the maintenance is to have increased availability of
production systems, with increased safety and optimized cost. Maintenance management
involves managing the functions of maintenance. Maintaining equipment in the field has been
a challenging task since the beginning of industrial revolution. Since then, a significant of
progress has been made to maintain equipment effectively in the field. As the engineering
equipment becomes sophisticated and expensive to produce and maintain, maintenance
management has to face even more challenging situations to maintain effectively such
equipments in industrial environment. This brief lecture on maintenance management
includes maintenance strategies, functions of maintenance department, maintenance
organization and elements of maintenance management.
The equipment under breakdown maintenance is allowed to run until it breaks down and then
repairing it and putting back to operation. This strategy is suitable for equipments that are not
critical and have spare capacity or redundancy available. In preventive or scheduled
Maintenance, maintenance actions such as inspection, lubrication, cleaning, adjustment and
replacement are undertaken at fixed intervals of numbers of hours or Kilometers. An effective
PM program does help in avoidance of accidents. Condition monitoring (CM) detects and
diagnoses faults and it helps in planned maintenance based on equipment condition. This
condition based maintenance strategy or predictive maintenance is preferred for critical
systems and for such systems breakdown maintenance is to be avoided. A number of CM
techniques such as vibration, temperature, oil analysis, etc. have been developed, which guide
the users in planned maintenance [2]. In opportunity maintenance, timing of maintenance is
determined by the procedure adopted for some other item in the same unit or plant. In design
out maintenance, the aim is to minimize the effect of failures and in fact eliminates the cause
of maintenance. Although it is an engineering design problem, yet it is often a responsibility
of maintenance department. This is opted for items of high maintenance cost that are due to
poor maintenance, poor design or poor design outside design specifications. It may be
mentioned that a best maintenance strategy for each item should be selected by considering
its maintenance characteristics, cost and safety.
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In addition to the above, new strategies concepts such as Proactive Maintenance, Reliability
Centred Maintenance (RCM), Total Productive Maintenance (TPM), etc. have recently been
evolved to look it from different perspectives and this has helped in developing effective
maintenance. In proactive maintenance, the aim is identify what can go wrong, i.e. by
monitoring of parameters that can cause failures. In RCM, the type of maintenance is chosen
with reliability of the system in consideration, i.e. system functions, failures relating to those
functions and effects of the dominant functional system failures. This strategy in the
beginning was applied to critical systems such as aircrafts, nuclear and space applications. At
present, this is being extended to critical systems in the plant. TPM, a Japanese concept,
involves total participation of all concerned. The aim is to have overall effectiveness of the
equipment with participation of all concerned using productive maintenance system.
MAINTENANCE ORGANIZATION
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