Module – 1 To workers:-

Introduction to Industrial Engineering & Production  A worker gets higher wages and more
Planning & Control production bonus.

INDUSTRY:-  A higher standard of living is attained.

The term industry refers to the part of business  Job security and satisfaction
activity which concern itself with the raising production,
processing or fabrication of products. For Customers:- Article available at reduced price.

The industries may be broadly divided into 4 types To the Government:-

 Extractive industry  Higher profit earned by the factories will bring

more revenue by Tax.
 Generic industry
Methods of increasing productivity (Steps to increase
 Construction industry the Productivity)

 Manufacturing industry  Productivity can be increased by reducing the

inputs for the same level of output or by
PRODUCTION & PRODUCTIVITY increasing the output with the same level of
 Production is a process or procedure developed input.
to transform a set of inputs like men,  Better planning and training of employees and
materials, capital information and energy into effective management through CPM/PERT
a specified set of outputs like finished methods.
products and services in proper quantity and
quality.  Motivating workers through the introduction of
incentive schemes and other benefits.

 Keeping equipment and machinery in good

 Productivity is the ratio of what is produced working order and by reducing down time of
(output) to what is required to produce (input) maintenance.
it.
 Men Material and Machinery are effectively
 Productivity is a measure of efficiency of used.
production system.
PRODUCTION, PLANNING & CONTROL (PPC)
 It is the determinant of the efficiency of an
enterprise to convert its variable resources into  Products are manufactured in factories by the
useful finished goods and services. transformation of raw materials into finished
goods, this process is called production.
 It is the reduction in wastage of resources like
men, machines, material, power, space, time etc.  Planning anticipates future difficulties and
decides in advance as to how the production is
Use or Purposes to increase Productivity carried out efficiently.
For Management:-  The control makes sure that the programmed
 To produce good profits because of the production is constantly maintained.
reduction in costs.

 To clear the debts or loans required from

different sources.
Function of PPC  Corrective action:- Follow up the activities. It is the
most important step in production control. If the
 The functions of PPC can be broadly categorized progress report indicates any deviation of the plan
as Planning phase, Action phase and Control from the original set targets it should be eliminated
phase. and corrective action is to be taken.
Fore casting
Order writing
Types of Production
Production Design
Process planning & Production is an organized activity which
Routing consists of a sequence of operations that transforms the
Material control given material into desired product.
Tool control
Loading  Job Production
Scheduling
 Batch Production

 Mass and Flow production

 Process Production

 One time large Production

1. Job Order Production

 Forecasting:- Estimation of quantity and quality of
future work in advance before action begins.  The production is made on the basis of customers’
orders.
 Order writing:- Giving authority to one or more
persons to undertake a particular job.  The item or items are made in accordance with the
specifications and requirements of the customer.
 Product design:- Collection of information about
specifications, bill of material, drawings etc.  Each job order is of different nature regarding its
specifications and manufacturing procedure.
 Process planning & routing:- Finding the most
economical process of doing a work and then  Products like special purpose equipment, an
deciding how and where the work will be done. uncommon material handling device, a large turbo
generator etc. are job order productions.
 Material control:- This determines the requirements
about materials and their control.  Schedule is prepared for each job giving the
commencement and completion time and dates.
 Tool control:- It involves determining the
requirements and control of tools used. 2. Batch Production

 Loading: - Assignment of work to the men and  Products are manufactured in batches according to
machines etc. the order procured.

 Scheduling:- It is the time phase of loading and  Both job production & Batch production are similar
determining when and in what sequence the work in nature except that quantity of product is large in
will be carried out. It fixes the starting and ending batch production.
time of the job.  Both general purpose machines and special purpose
 Dispatching:- It is starting of action phase. In this machines are used.
phase the worker is ordered to start actual work.  Process and product planning is done for each batch.
 Progress reporting:- Data regarding the job
progress is collected and it is interpreted by
comparison with the pre-set level of performance.
 3. Mass & Flow Production  The difference between job production and one time
large production is of scale and complexity of the
 It is a large scale production manufacturing product.
standardized parts or components.
 Eg:- Fabrication of ships, Space vehicle, Erection of
 It involves continuous flow of material employing bridge etc.
specialized machines and processes.
Characteristics:
 Electronics, electrical equipments, steel mill, sugar
mill etc.  One large product is manufactured at a time.

Characteristics:  In job shop, the job moves one place to another, but
in one time large projects the product is very bulky,
 Building and machinery is laid as per production the material & other major components remain at a
schedule. fixed place, where as workers, tools portable
 Special types of tools, jigs and fixtures, feeders can equipments are brought to the place.
be designed and used. PROCESS PLANNING
 Material handling can be completely automatic.  Process planning is the systematic determination of
method or process by which the product is to be
 Standardization of product and process sequence.
manufactured economically and competitively
 Perfectly balanced production lines. with in the limits of design, specification laid down.

 Supervision is easy because only few instructions  The final shape of the product is determined after
are necessary. considering several designs and preparation of
assembly drawings, working drawings with
4. Process Production complete specifications.
 It is an extended form of mass production.  The process planning then starts at the release of
working drawings from the product design
 The production is carried out continuously through a
department.
uniform and standardized sequence of operations.
 A process is required to manufacture a product and
 This system is useful where the product is consumed
therefore it is necessary to plan the product.
fast.
 The process planning has been decided as what is to
 Eg:- Electricity, Petrol, Chemicals etc.
be made and develops the broad plan of manufacture
Characteristics: for the product.

 All products undergo the same process. Raw Process planning Procedure:
material enter at one point and leaves as finished
1. Selection of process:- Select most economical
product at another.
method of performing an operation.
 Both type of semi skilled and skilled workers are
2. Selection of Material
used.
3. Selection of jigs & fixtures and other special
 Machines and equipment are arranged according to
attachments.
product layout.
4. Selection of cutting tools and inspection gauges.
5. One time Large Production
5. Determine the sequence of operations
 It produces a product as per the requirements of the
customers. 6. Inspection:- To determine the stages of inspection.

7. Make or Buy decision

8. Labour requirements  Total cost increases with increase in volume of
production. Total cost is the sum of fixed cost and
9. Time standards:- Find setup time and standard time variable cost.
for each operation.
 The analysis is concerned with finding the point at
10. Cost of Production which revenue and costs agree exactly termed as
11. Prepare the operation sheet and the route sheet.:- break even point.
The operation sheet shows every thing about the  This point indicates that, there is no profit, no loss
operations like description of operation, their situation for a given volume.
sequence, type machinery, tools and equipments
used, setup and operation times, speeds and feeds, FORECASTING
depth of cut.
 Forecasting is the process of making predictions of
BREAK EVEN ANALYSIS the future based on past and present data and most
commonly by analysis of trends.
 A break even chart is a graphical representation of
the relationship between costs and revenue at a given  It is the first major activity in the planning.
time.
Sales Forecasting:- It is an estimate of the amount of
 It is a graphic device to determine the break even sales for specified future period under a proposed
point and profit potential under varying conditions marketing plan or programme.
of output and costs.
Purpose of Sales Forecasting:-
 The cost are classified into two elements
 It helps to estimate the volume of production and
1. Fixed cost 2. Variable cost product rate.

 Fixed Cost: Fixed cost do not change as a function  It suggest the need for plant expansion.
of increased volume of production. Which remain
unaffected by either increase or decrease of volume  It suggest the need for research development.
of production.  It decides about the advertising, and-product
Examples:- Administrative staff salary, machinery, distribution requirements.
building etc.
PLANT LOCATION
 Variable cost: Which are proportional to the  Plant is a place where men, material, money
variation in the volume of production.
equipment, machinery etc. are brought together for
Examples:- Direct material cost, Direct labour costs. manufacturing products.

Factors to be considered in locating Industrial

Plants:-

 Availability of raw material

 Transport and communication facilities.

 Nearness to market

 Availability of labour

 Availability of power and fuel

 Climatic conditions
 Fixed cost line indicates that fixed charges do not
change as a function of increased volume of  Availability of water
production.
 PLANT LAYOUT Advantages:-

 A plant layout is an arrangement of facilities and  Initial investment is low for process layout.
services in the plant.
 Better utilization of available equipment.
 The best layout helps reducing the material handling
time, keeping neat and clean and sufficient moving  Easy maintenance. Breakdown of one machine may
place, economical use of floor area in laying in the not result in total stoppage of production.
machine etc.
Disadvantages:-
Factors to be considered in locating Industrial  Handling of material is more hence it takes more
Plants:- time for production.
 Nature of product  Inspection in various departments cause delay in
 Volume of production production.

 Type of equipment 2.Product layout or line layout

 Type of building

 Material handling equipment

 Possibility to future expansion

Types of Plant Layout

 Process layout or Functional layout

 Product layout or line layout  The machines and auxiliary services are arranged in
line according to the sequence of operations to be
 Mixed layout or combined layout performed on the work.

 Static layout or fixed position layout  The raw material enters in the line at one end, the
operations are carried out in succession in a smooth
1. Process layout or Functional layout flow & the finished product delivered at the other
end of the line.

 It is suitable for continues production.

Advantages:-

 Layout corresponds to sequence of operations

resulting in smooth and balanced flow line.

 Material handling time and movement cost is

less.

 All similar machines are grouped together.  Total production time per unit is less.

 Eg:- All lathes are grouped togather in turning Disadvantages:-

section.
 If the product design changes, for the fresh
 This type of layout is used in job and batch sequence of operations the entire setup should be
production. changed.

 This type is used when part and products designs are  Breakdown of machines may lead to a complete
not stable or the volume of production is small. stoppage of the line.
 3. Mixed layout or combined layout  Routing means determination of most advantageous
path to be followed from department to department
 Both process and product layout advantages are and machine to machine.
taken in to account.
Objectives:-
 The production shop may be arranged by process
layout, while the assembly is arranged on line  To set the path over which the product has to be
layout. travelled.

 Combination layout is possible where an item is  To select best and cheapest way to perform the job.
being made in different types and sizes.
 To utilize men and machines to the optimum
4. Static layout or fixed position layout capacity.

 This type of layout is adopted when work piece is Route Sheet

very big or too heavy to move from one position to
the other and there by fixed at one place.

 This type of layout is useful in construction work,

ship building, fabrication of large tank, locomotives
etc.

Advantages:-

 Material movement is reduced.

 Capital investment is less.

 Different projects can be taken up with the same

layout.

Disadvantages:- SCHEDULING

 Highly skilled workers are required  Scheduling may be defined as the determination of
time, that should be required to perform each
 Machine and tools etc take more time to reach the operation and also time necessary to perform, the
place of work.
entire series as routed.
PRODUCTION CONTROL  The purpose of scheduling is to prepare a time-table
The production control is applied in different phases. indicating the time and rate of production as
indicated by starting and finishing time of each
 Routing – Determination of manufacturing path activity.

 Scheduling – Decide the time sequence Factors Affecting Scheduling

 Dispatching – Issuance of the orders and work External Factors:-

 Follow up – Expediting the flow of work on the set  Customer’s demand

of manufacturing path.
 Stock of goods already lying with dealers and
ROUTING retailers.

 Routing may be defined as the selection of the path, Internal Factors:-

with each part of the product will follow, while
being transferred from raw material to finished  Stock of finished goods with firm.
products.  Availability of machines, manpower, materials.
 Time interval to process finished goods from raw  Tool & Gauge Ticket (To issue gauges or special
material. tools)

DISPATCHING FOLLOW – UP

 It is an authorization to start production.  It is the final stage of production planning and

control.
 The production activity starts on the shop floor
release of orders and instructions.  Follow-up or expediting is checking production
activities systematically, so that production may be
 Dispatching involve, the meeting of schedules by carried out according to plan.
proper utilization of machines, work places,
materials and workers, as designated by the routing.  The duty of the follow-up section is to report the
daily progress work in each shop or department in a
 Dispatching is a process of translating production Performa and to find out the cause of delay.
plan in to out put, as the orders are issued for the
movement of material, parts, and tools to the work  This section keeps a strict watch on production and
centers, and it also includes instructions for the monitor production process for further improvement.
inspection and recording of the work.
Functions of Follow-up
Activities or Functions of Dispatching
 Watching progress of production process.
 Move orders are issued to the personnel giving
instructions regarding movement of raw material  Identification of delays, disruptions and deviations.
from store to floor or from machine to machine.  Assistance in removing problems when deviates
 Tool orders are issued to the tool department to found.
collect and make ready tools, jigs and fixtures.  Prepare list of materials parts and tools etc which are
 Job orders are issued to the operators or job foremen in short supply.
for starting the work.  Report any other production related problems, which
 Orders are issued to the store to supply the raw need immediate attention.
material against the proper authorization.
VALUE ENGINEERING
 Informing the updating progress report and keeping  It is a systematic approach of identifying
records for reference. unnecessary costs in products or processes, to
Common Forms used in dispatching eliminate them.

 Work order operation ticket (To start work on  Value engineering is a systematic method to
certain material) improve the "value" of goods or products and
services by using an examination of function.
 Machine load chart (To know actual progress of
work)  Value is the required or needed performance at
minimum cost. The needed performance is what the
 Material requisition form (Material required for the customer expects.
scheduled job)
 The value is the ratio of function and cost,
 Inspection card (To report the quantity of parts
passed and rejected) Value =

 Move ticket (Moves with job from operation to Function is expressed as units of performance.
operation)
Cost is expressed as a monetary unit in rupees.
 Labour cards (To record the report about time
performing of an operator)
 The value of product can be increased either by Factors to be considered in Material Handling
increasing the function (or utility) with the same
cost.  Building construction

MATERIAL HANDLING & PLANT  Lay out

MAINTENANCE  Production process and equipment's
Material Handling  The existing material handling equipment
 Starting from the point, the raw material enters the
 Production, planning and control.
factory gate and goes out the factory in the form of
finished products.  Nature of materials and products to be handled

 The material handling may be defined as the Types of Material Handling Devices
handling of raw materials, semi-finished parts and
finished products, mechanically or manually through Lifting and lowering devices (Vertical movement):-
the production as well as through storage areas.
Block and tackle Hand and power winches
Functions of Material Handling
Hoists Elevators
 The movement and positioning of purchased
Pillar crane Over head crane
materials, tools, spares etc. for the purpose of
storage. Transport devices:-

 The internal transportation of materials from stores Wheel barrows Hand and power trucks
to shopes or departments.
Industrial narrow railways Tractors and trailers
 The material movement with in the department from
one machine to another while processing. Pipe lines Pumps

 The movement and positioning of finished products Aerial tram ways

for the purpose of stocking or sale.
Devices which lift and transport:-
 Raw materials unloading from trucks or some other
Chutes Different types of conveyors
transport.
Hoists with trolleys running on overhead rails
 Loading packed materials on trucks or other
transport. Spiral chutes Fork lift truck
Principles of Material Handling Spiral roller Crane trucks
 Reduction in handling Cranes
 Safety Plant Maintenance
 Reduction in time  Plant maintenance is defined as a set of activities
that are necessary to keep machinery, parts & types
 Principle of ‘unit load’
of equipment in good operating conditions to avoid
 Use of gravity production stoppage and loss.

 Use of containers Objectives of maintenance management:-

 Stand by facility  Minimizing the loss of production time due to

equipment failure
 Periodical check up
 To reduce loss due to the production stoppage.
 Avoid interference with production line
 To keep all productive assets in good working  Scheduled maintenance is a stich-in-time procedure
conditions aimed at avoiding break downs.

 Improve the quality of the product and to improve Preventive maintenance

productivity
In contrast to corrective maintenance, preventive
 Helps to reduce the total maintenance cost of repair, maintenance is undertaken before the need arises and
preventive maintenance & inventory carrying a cost aims to minimize the possibility of un-anticipated
due to a spare part inventory. production interruptions or a major breakdown,
preventive maintenance consists of,
Advantages of Maintenance
a) Proper design and installation of equipment.
 Reduction in production down time.
b) Periodic inspection of plant & equipment.
 Over time payments for maintenance staff is less
c) Repetitive servicing of types of machinery.
 Expenses towards repair are less
d) Adequate lubrication, cleaning, and painting of the
 Greater safety to employees because of reduced building.
breakdown.
Elements or procedure of Preventive maintenance
 The stand by equipment requirements are less.
 Inspection
Types of Maintenance
 Lubrications
 Corrective or Breakdown maintenance
 Planning and scheduling
 Scheduled maintenance
 Records and analysis
 Preventive maintenance
 Training of maintenance staff
 Predictive maintenance
 Storage of spare parts.
Corrective or Breakdown maintenance
Predictive maintenance
 In this repairs are carried out after the equipment
goes out of order and is unable to perform its normal  One of the new type of maintenance that may be
function. anticipated to gain increasing attention. In this
sensitive instrument are used to predicting trouble
 Eg: Electric motor will not start, a belt is Brocken. conditions can be measured on a continuous basis
 In such conditions production department calls on and this enables the maintenance of people to plan
the maintenance department to rectify the defect. for an overhaul.

 This type of maintenance is used in small factories.  Unusual sounds coming out of rotating equipment
Where down time repair costs are less compare to predict a trouble.
any other type of maintenance.  In this maintenance, equipment conditions are
measured periodically or on a continuous basis and
Scheduled maintenance
this enables maintenance men to take timely action.
 Scheduled maintenance system provides for
inspection, overhaul lubrication, and servicing of
certain machines at predetermined dates.

 Overhauling of machines, cleaning of tanks and

white washing of buildings is normally done in this
manner.