CHAPTER 1 : PLANT LOCATION, LAYOUT AND FACILITIES

Meaning – Importance of Production and Operations Management, Scope of POM. Plant

Location - Factors Affecting Location - Steps in Location - Cost Factor in Location - Plant
Layout – Meaning – Types of Plant Layout – Space Requirement - Different Types of
Facilities - Organisation of Physical Facilities – Building, Sanitation, Lighting, Air
Conditioning, Safety etc.
CHAPTER 2 : MATERIALS MANAGEMENT

Scope – Objectives – Purchasing - Selection of Suppliers - Inventory Management - Material

Handling - Principles and Practices, Economic Consideration, Criteria for Selection of
Materials Handling Equipment, Stores Management, Inventory Control Techniques, Value
Analysis, Value Engineering and Ergonomics.
CHAPTER 3 : PRODUCTION PLANNING AND CONTROL

Meaning – Scope - Objectives and Concepts - Capacity Planning – PPC Process – Routing,
Scheduling, Dispatching, Follow-up, PERT/CPM, Concept of Work Study, Method Study,
Time and Motion Study.
CHAPTER 4 : QUALITY CONTROL
Organisation for Quality Control - Statistical Quality Control - Quality Management, -
Control Charts and Operating Characteristic Curves - Acceptance Sampling Procedures -
Quality Circles - Meaning of ISO Certification and TQM. Benchmarking and Six-Sigma
Concepts - Cost of Quality and Cost of Poor Quality
CHAPTER 5 : MAINTENANCE MANAGEMENT

Types of Maintenance - Break Down - Spares Planning and Control - Preventive

Maintenance – Routine Maintenance - Relative Advantages - Maintenance Scheduling -
Equipment Reliability and Modern Scientific Maintenance Methods
CHAPTER 6 : WASTE MANAGEMENT

Scrap and Surplus Disposal - Salvage and Recovery, Green Management Principles.
CHAPTER 7 : AUTOMATION

Meaning - Advantages and Problems – Automation and Mechanization

What is POM?
 Production is the creation of goods and services.
 Production and/or Operations are the activities that transform resources into goods
and services.
Production and Operations Management
Production: Application of resources such as people and machinery to convert materials into
finished goods and services.
Production and Operations Management: Managing people and machinery in converting
materials and resources into finished goods and services.

Production systems

 Production system – receives inputs in the form of materials, capital, utilities and
information.
 Conversion sub-system- conversion of inputs into desired output.
 Control sub system- controls the quality ,quantity and cost
INPUTS, TRANSFORMATION PROCESS, OUTPUTS
Inputs :
* Materials (processed/unprocessed)
* Labors
* Information
* Human Resources
* Equipment and facilities
* Technology
Conversion Process
• Physical (Manufacturing)
• Locational Services (Transportation)
• Storage Services (Warehousing)
• Government Services (State, Local)
Outputs of a Production System
Direct
- Products
- Services
- Indirect
- Waste
- Pollution
- Technological Advances
Production management- is the process of effectively planning and regulating the
operations of that part of an enterprise which is responsible for the actual transformation of
materials into finished products.
Production management is related with five P’s of PM- PRODUCT , PLANT, PROCESS,
PROGRAMS AND PEOPLE.
 THE PRODUCT –product is the visible entity of the interface between makers and
users.
 THE PLANT – products are to be made, to make a product, plant of some kind in
terms of buildings and equipment is warranted.
 THE PROCESS- a process is the sequence of operations that transforms the materials
form in to direct form.
 THE PROGRAMMES- a programme is the schedule of operations arrayed in order of
logical sequence. Production prog needs series of continuous activities and definite
time to move from one activity to another.
 THE PEOPLE- production as a creative act largely depends on the people.

Scope of POM
 Long term strategic decisions
 Short term strategic decisions
Long term strategic decisions-
1. Product selection and design –
2. Process selection and planning – selecting the right process that is economical, effective
and gives max output with a min of inputs.
3. Location facilities- location of manufacturing organization.( location of the operation or
production system)
location of any manufacturing plant is at that point where the per unit of production
and distribution is the lowest.
4. Layout and materials handling facilities-
plant layout is a plan or scheme of arranging the plant production facilities in a systematic
and schematic manner that provides economy, efficiency and comfort.
 That the, machines and the equipments are so arranged that guarantees smooth flow of
production.
 A material is the very basis of manufacturing line, material handling plays vital role.
 It is the department of material handling guarantees smooth flow of materials from
one machine to another.
5. Capacity planning - Capacity planning is something to do with the procurement of
production resources in a productive way.
capacity signifies the level of activity at which the conversion process is supposed to go
on over period of time might be a second, minute, hour, a day, month or a year.
Short term strategic decisions-
1. Production planning –
the short-term decisions are those which deals with short-term manufacturing activities
planning and control.
planning is the pre- planning activity. It aims at setting the goals and allocating the
existing resources.
2. Production control- control is the terminal function of PM. That aims at everything goes
on as per the plan or plans.
Production control includes five sub activities- planning- routing- scheduling and
dispatching, follow up.
3. Inventory control- inventories are the stocks held in the form of pure raw materials,
semi-finished goods and totally finished goods.
there is a close alliance between these inventories and production function.
4. Quality control – quality of product or products has been given top priority by society.
the quality specifications are described in terms of size, colour, shape, taste, smell, weight,
density and so on.
The quality control is the task of testing and inspection dept of a manufacturing
organisation.
5. Method study :- the conversion process – just does not take place in its own course.
standard methods are to be devised for performing the repetitive functions effectively,
efficiently and easily.
6. Maintenance and replacement :– up-keep, repairs, renewal and replacement of worn out
or damaged buildings, machinery and equipments.
7. Cost control and reduction: cost control is the function that converts the areas of costs,
quality, time and volume based on cost benefit analysis.
 The various cost control techniques are– standard costing, budgetory control, value
engineering.
 Reduction in cost is the proof of productivity improvement, competitive advantage.

Importance of POM
  It helps to understand and appreciate the role played by people in producing goods
and services. (managers, engineers, scientist, technicians, workers etc)
 To know clear picture about factory.
 Helps in selecting a career.
 Helps to understand how important it is to nation. It has been recognized that high
productivity has been one of the keys to the high standard of living.
 Productivity is the backbone of a nation’s economic progress.

Plant Location
 Plant location may be understood as the function of determining where the plant
should be located for its maximum operating economy and effectiveness.
 Location of an industry is an important management decision.
 It is a two-step decision: first, choice of general area or region and second, the choice
of site within the area selected.
 Location decision is based on the organisations long-term strategies such as
technological, marketing, resource availability and financial strategies.
 An ideal location may not, by itself, guarantee success; but it certainly contributes to
the smooth and efficient working of an organization.
 It is, therefore, very essential that utmost care should be exercised in the initial stages
to select a proper place.
 Once a mistake is made in locating a plant, it becomes extremely difficult and costly
to correct it, especially where large plants are concerned.

A selection on pure economic considerations will ensure an

 easy and regular supply of raw materials, labour force,
 efficient plant layout,
 proper utilization of production capacity,
 Reduced cost of production
Location theories
Alfred weber classified location factors into two broad categories -
1) primary 2) secondary
1. Primary factors- materials and labour constitute primary factors that contribute to
dispersal of industries over different regions.
  Industrial units are market - oriented when the cost of transporting - finished goods to
markets is higher.
 Industrial units are material oriented if their cost of transportation of raw material
to the manufacturing units is higher.
2. Secondary factors:- banking, credit, insurance, communication, rent rates etc., constitute
the secondary factors of location.
 some of these attract industries to certain areas from different places- agglomerating
factors.( secondary factors which attracts industry )
 some other contribute to their dispersal from original places- degglomerating factors.

Steps in Location
 Within the country or outside the country.
 Selection of the region.
 Selection of the locality or community.
 Selection of the exact site.

Deciding on domestic or international industrial location:

The first step in plant location is to decide whether the facility should be located domestically
or internationally.
If the management decides on foreign location, the next logical step would be to decide upon
a particular country for location.
The choice of a particular country depends on such factors as political stability, export and
import policy, currency exchange rates, economy, cultural factors.
Selection of the region
1) Availability of Raw materials
ii) Nearness to the market
iii) Availability of power:
iv) Transport facilities:
v)Suitable climate

1. Availability of Raw materials

- it is very essentials that plant should be located in a place where the supply of raw material
is assured at minimum transport cost.
Advantages are-
reduced cost of transportation of RM.
Regular and proper supply of materials.
Savings in the cost of storage of materials

There are two types of raw-materials –

1) weight losing or gross materials
Weight losing materials lose much of their weight in the process of manufacture.
The cost of transporting these raw materials from the source of supply to the place of
manufacture is more than the cost of transporting the finished products from the factory to the
market.
Example raw materials like iron, ore, sugarcane, timber, etc.
Industries using such materials should locate near to their sources of supply to save the cost
of transportation.

2) non-weight losing or pure materials

Non-weight losing materials as the long term itself implies to not lose their weight in the
process of manufacture. Instead, they gain in weight when they are converted into finished
products.
The cost of transporting the finished products therefore more than the cost of transporting the
raw materials e.g. cotton, woolen, etc.

ii)Nearness to the market:

 since goods are produced for sale, it is very essential that the factory should be located
near to the market.
 A reduction in the cost of transporting finished goods to the market.
 The ability to adjust the production programme to suit the likes and dislikes of
consumers.
 The ability to render prompt service to the consumers,
 Provide after sale- services
 Execute replacement orders without delay
iii)Availability of power:
 Power is essential to move the wheels of an industry.
 Coal, electricity, oil and natural gas are the sources of power.
 Industries using electricity have to be located at a place where electric power is
available regularly and at cheap rates.
iv)Transport facilities:
 while making a study of a location, an entrepreneur considers the question of the
availability of transport facilities.
 These are essential for bringing raw materials and men to the factory and for carrying
the finished products from the factory to the market. This is well connected by
railways, road and water transport is ideal for a plant location.
v)Suitable climate:
the climate has its own importance in the location of the plant, there are certain industries
which because of the nature of their production, require particular climatic conditions.

3. Selection of a community;
Selecting a particular locality or a community in a region is the third step in the plant
location. It is influenced by:
 Availability of labour: labour is an important factor in the production of goods. An
adequacy of labour supply at reasonable wages is very essential for the smooth and
successful working of an organization. The labour required may be skilled or
unskilled.
 Civic amenities for workers: besides good working conditions inside the factory, the
employees require certain facilities outside it recreation facilities, such as clubs,
theaters, parks, etc. they also require schools for their children.
 Finance and research facilities: adequate capital is required for the successful
working of any organization. A place where facilities for raising capital are available
attracts new industries.
 Local taxes and restrictions: local authorities collect charges for the supply of water,
electricity and other facilities. They also collect various taxes from industrial units.
 Personal factors: there are entrepreneurs, especially small industrialists, who locate
their plants purely on personal grounds disregarding economic considerations. Such
locations sometimes totally disprove the many current theories of plant location.
 Availability of water and fire- fighting facilities: fertilizer units, bleaching, dyeing
and screen-printing units requires plentiful supply of water.
 Existence of complementary and competing industries:The existence of
complementary industries is favorable to the location of industries because an
industrial unit, in association with other units ,can get the following benefits :
 an industrial unit, in collaboration with other similar units, can secure materials on
better terms
 The concentration of similar industries at one place improves the labour market , both
for the employer and the employees
 In specialized centers, banks become familiar with the requirements of the industry.
 A group of plants will attract a variety of repair plants, machine shops, tool makers
etc.,
4. Selection of the site;
The selection of the exact site in a chosen locality is the fourth step in the plant location. It is
influenced by:
 Soil, size and Topography: For factories producing engineering goods, the fertility or
otherwise of the soil may not be a factor influencing plant location. But for agro-
based industries, a fertile soil is necessary for plant location. The topography of the
place deserves consideration to some extent.
 Disposal of waste: the problem of the disposal of effluents is common to many
industries, particularly, chemical, sugar, steel, and leather industries and breweries. the
site selected for the location of the plant should have provision for the disposal of
waste. The site should be well connected by road, rail and, if possible, water transport.
There should be housing for the workers.
Plant Layout
 It is the question of the placement of
 machinery at different places,
 Location of stores,
 Inspection cabins,
 Tool rooms,
 Maintenance wings,
 Plating shops,
 Heat treatment chambers,
 Toilets, canteen, trolleys, cranes and other material handling equipments etc.,
receives priority consideration.
 This so because the efficiency of the production flow depend largely on how
well the various production facilities, machinery, and employee amenities are
located in a plant.
Plant layout is a “technique of locating different machines and plant services within the
factory so that the greatest possible output of high quality at the lowest possible total cost can
be available”.
A plant layout refers to the arrangement of
 machinery,
 equipment and
 other industrial facilities- such as receiving and shipping departments, tool rooms,
maintenance rooms, etc.
 for the purpose of achieving the quickest and smoothest production at the least cost.
Objectives of a good Plant Layout:
 Provide enough production capacity.
 Reduce material handling costs.
  Reduce congestion that impedes the movement of people or material.
 Reduce hazards to personnel.
 Utilize labor efficiently.
 Increase employee morale.
 Reduce accidents.
 Utilise available space efficiently and effectively.
 Provide ease of supervision.

Principles
1.The Principles of minimum travel:
men and materials should travel the shortest distance between operations so as to avoid
waste of labour movement and time and minimise the cost of material handling.
2. Principle of sequence:
machinery and operations should be arranged in a sequential order.
3. Principle of usage:
every foot of available space should be effectively utilised. One should take into account
the availability of 3- dimensional space. This principle should receive top consideration in
towns and cities where land is costly.
4. Principle of compactness:
there should be a harmonious fusion of all the relevant factors so that the final layout looks
well integrated and compact.
5. Principle of safety and satisfaction:
the layout should contain inbuilt provisions for safety for the workmen.
( comfort and convenience of the workmen)
6. Principle of flexibility:
The layout should permit revisions with least difficulty and at minimum cost.
7. Principle of minimum investment:

TYPES OF LAYOUT
There are 5 types of layout:
1. Process layout
2. Product layout
3. Fixed position layout
4. Cellular manufacturing layout
 5. Combined layout
1. Process layout
 It is also called as functional layout.
 It involves grouping or arrangement of machines performing similar functions in one
dept.
 Grouped machines are assigned in one area or department.
 They are grouped based on the operations they perform.
 Each area or dept. follow the product layout.
In a process layout, similar processes or processes with similar needs are located together
because:
• It is convenient to group them together or
• The utilization of the transforming resource is improved.
While grouping machines according to the process type following principles must be
followed:
The distance between departments should be short to avoid long distance movement of
materials
Convenience for inspection
Convenience for supervision
Advantages
Greater flexibility.
Better and efficient supervision.
Scope of expansion.
Optimum utilization of men and machines.
Easy to handle breakdown of equipment.
Full utilization of equipment.
Disadvantages
More floor space.
Difficulty in production planning and control.
Longer production cycle time.
Accumulation of work in progress.

2. PRODUCT LAYOUT
Product layout involves the arrangement of machines in one line, depending upon the
sequence of operations.
Materials are fed in the machine and finished goods travel automatically, from machine to
machine, output of one machine becoming the input of the next.
E.g in a paper mill, bamboos are fed into the machines at one end and paper comes out at the
other end.
It is also known as Line Layout or Straight-Line layout.
It is a kind of an arrangement of machines where machines are gathered and arranged
keeping PRODUCT as a focal Point.
The production department installs the machines in the sequence of operation as required in
case of production.

While grouping the machines, the following principles must be kept in mind
• All the machine tools or other items of equipment must be placed at the point demanded by
the sequence of operations.
• There should be no points where one line crosses another line.
• All the operations including assembly, testing & packing should be included in the line.
• Materials may be fed where they are required for assembly but not necessarily
all at one point.

Advantages
1. Uninterrupted output
2. Reduced amount of WIP
3. Encourages the use of automatic devices
4. Best use of floor space
5. This type of layout avoids production bottlenecks
6. Early detection of mistakes
7. Improved production control- predetermination of routes.

Disadvantages
1. Higher initial investment
2. Breakdown of equipment- disrupt the whole system
3. Expansion is costlier
4. Lack of flexibility
 5. Difficulty in supervision

PRODUCT LAYOUT e.g.(2) paper mills

Bamboo – Processing - Paper

3. FIXED POSITION LAYOUT

Ex: Ship building, dam and flyover construction.
This type of layout involves- Movement of men and machines to the product which remains
stationary.
In this type of layout, the material or major component remains in a fixed position or
location.
Tools, machinery and men as well as other pieces of material are brought to this location.
• Because Cost of moving them is cheaper compare to movement of product.
Ex: manufacture of bulky and heavy products, such as ships, generators etc.
Ex: Aircraft Assembly:
Raw material
Machine and Equipment
Labour
Finished Product (Aircraft)

4. Cellular manufacturing layouts

Cellular layout is one in which the Facilities are arranged so that equipment used to make
similar parts or families of part is grouped together.
Machines are grouped into cells and the cells function somewhat like a product layout or
process layout.
Each cell is formed to produce a single parts family- a few parts all with common
characteristics.

ADVANTAGES
 Reduced materials handling costs
 Shorter flow times in production
 Increased operators responsibilities
 Improved visual control
 Simplified production planning
DISADVANTAGES
 Costly to rearrange existing layout
 Need more plant and equipment
 Reduced manufacturing flexibility

5. COMBINED LAYOUT
A combination of process and product layout is known as combined layout.
Manufacturing concerns where several products are produced in repeated numbers with no
likelihood of continuous production, combined layout is followed.
Many situations call for a minute of the 3 main layouts types. These mixtures are commonly
called combination or hybrid layout.
E.g. one firm may utilize a process layout for the majority of its process along with an
assembly in one area. Alternatively, a firm may utilize a fixed position layout for the
assembly of its final product but use assembly lines to produce the components and
subassemblies that make up the final product.

Arrangement of other facilities

 A plant layout involves, besides the grouping of machinery, an arrangement for other
facilities as well. Such facilities include receiving and shipping points, inspection
facililities, employee facilities, storage etc.
 The requirements depend on the nature of the product which is manufactured in
particular plant

Location of receiving and shipping departments

 Receiving and shipping department represent the starting and finishing points
respectively in every manufacturing concern.
 The receiving department is the place where raw materials and other supplies are
received.
 The shipping department is the place where finished goods are delivered to customers

Storage
 A storeroom is a place where raw materials, spare-parts, lubricants, components,
semi-finished goods, supplies and finished goods are stored.
 A storeroom should be so located as to be close to the production, receiving and
shipping centers in order to minimize handling costs.
Inspection
  The layout plan must provide for inspection at various points in the plant and at
varying stages of manufacture.
 Inspection of purchased items comprising raw materials, parts and supplies.
 Inspection of work in process.
 Inspection of finished goods.
Maintenance
 The efficiency of machinery and equipments depends upon how well they are
maintained.
 Maintenance checks should be carried out regularly.
 In the large establishments, a separate department is constituted for the purpose.
 Maintenance functions include- maintenance of building, heating, ventilation and air-
conditioning, maintenance of material handling equipments etc.
Employee facilities:
 Employee facilities should find a proper place in any layout because they add to the
comfort and efficiency of workers.
 The Employee facilities include locker rooms, toilet facilities, drinking water facilities
etc.
Other facilities:
power generators, water filters, chilling plant, oil tankers etc.

Facility Design and the Servicescape

Designing Physical Surroundings to Affect Employee and Customer Behavior

Plant Layout for a Service Business

 Plant layout for an office:
 The material that flows among departments and workstations is basically
information. This can be done through:
 Individual conversations face to face.
 Individual conversations through telephone or computer.
 Mail and other physical documents.
 Electronic mail.
 Meetings and discussion groups.
  Interphones.
 The layout solution is dictated by workers and physical documentation
movements.
Types of Service Processes

Service Characteristic Management

Challenge
Process Example
Type

Project Consulting One-of-a-kind engagement Staffing and scheduling

Job Shop Hospital Many specialized Balancing utilization and

departments scheduling patients

Batch Airline Group of customers treated Pricing of perishable

simultaneously asset (seat inventory)

Flow Cafeteria Fixed sequence of operations Adjust staffing to

demand fluctuations

Continuous Electric Uninterrupted delivery Maintenance and

Utility capacity planning

Factory building
Once the location is decided upon, The management's next step or task is to raise a suitable
building for the plant.
the factory building should provide protection of men, machines, materials, products etc.
It has to serve as a part of the production facilities and as a factor to maximize economy and
efficiency in plant operations.

The important considerations:

The design of the building.
The types of materials for construction.
The types of building.
Building design
i) Functional smoothness of operations:
the design should ensure the functional smoothness of operations.
ii) Strong enough:
a) flexibility - building should provide greater operating efficiency even when processes and
technology change.
b) product and equipment - the type of product that is to be manufactured determines column-
spacing, type floor, ceiling height etc.
iii) Expandability -
• growth and expansion are natural to any manufacturing enterprise.
• expandability does not refer to the construction of a massive building in which major
portion of the space would be idle.
• an idle building not only locks up substantial working capital but adds to the maintenance
cost.
• The building must be adequate enough to accommodate the present manufacturing
programme and related activities, and provides for expansion as well.
Factors:
1. the area of the land which is to be acquired should be large enough to provide for the future
expansion needs of the firm and accommodate current needs.
2. the design of the building should be in a rectangular shape. Industrial buildings take the
shape of any of the letters U, E, H, I, L, T. of these, shape I is very
common
3. Rectangular shapes facilitate expansion on any side.
4. If vertical expansion is expected, strong foundation, supporters and columns must be
provided.
5. If horizontal expansion is expected, the side walls should be constructed with non-load
bearing materials –for easy removal.
iv) Employee facilities and service area:
employee facilities must find proper place in the building because it affects morale,
comfort and productivity.
the building plan should include facilities for lunch rooms, cafeteria, water coolers,
parking area. Etc.
service areas, such as the tool room, supervisor office, maintenance room, receiving and
shipping stations etc.
v) Materials handling:
ease in materials handling assists in the
 reduction of manufacturing cycle time,
 avoids bottle necks and
 reduces handling costs.
vi) Lighting, ventilation and air-conditioning
 adequate and good lighting is essential for higher employee efficiency and greater
output.
 Lighting may be natural or both.
 Ventilation refers to the provision of fresh air inside the building.- natural and
artificial.
 Air-conditioning promotes the comfort of the workers and safeguards the condition of
materials, products, equipment and the manufacturing process.
vii) protection of property and people
viii) security

Types of Building Materials

a) A Wood – frame building –
 construction is easy, cheap and quick.
 rapid depreciation, high insurance cost because it is least resistance to fire.
 Also known as match-box construction, the wood frame is used in temporary
building.
b) bricks-
 excessive strength is not required for the bricks.
 there are two types of bricks- mud bricks and cement bricks.
c) Slow burning type-
 In a slow-burning type of construction, bricks and heavy timber are used.
 a fire takes longer time to spread through the building because of the heavy timber.
d) steel-frame structure-
is made up of steel girders, columns, roof trusses, with space between columns are filled by
bricks, tiles or some other materials.
E) Reinforced Cement Concrete (RCC)- it is one of the most popular types of construction
today, particularly for multistorey buildings.
in this type, steel frame is encased in concrete, there by reinforcing it. Both the floors and
their supporting columns are made of concrete reinforced with steel.
f) Prestressed concrete-
is a method for overcoming concrete's natural weakness in tension. It can be used to produce
beams, floors or bridges with a longer span than is practical with ordinary reinforced
concrete.
Prestressing tendons (generally of high tensile steel cable or rods) are used to provide a
clamping load which produces a compressive stress that balances the tensile stress that the
concrete compression member would otherwise experience due to a bending load.
g) Lift slab construction
is a method of constructing concrete buildings by casting the floor or roof slab on top of
the previous slab and then raising (jacking) the slab up with hydraulic jacks, so being
cheaper and faster as not requiring boxing and supports for casting in .

Types of factory building

The decision on choosing a suitable type for a particular firm or structure depends upon-
• Manufacturing process, (product, equipment, machinery)
• The area of land,
• The cost of construction,
1. Single storey buildings
Most of the industrial buildings which are now designed and constructed are single storeyed,
particularly where the land is available at cheap rates:

ADVANTAGES
 There is a greater flexibility in layout and production routing;
 Truss construction ensures uninterrupted operating space.
 Vibration of machinery is less- The maintenance cost resulting from the vibration of
machinery is reduced considerably because of the placing of the machinery on the
ground floor.
 Space is not wasted on elevators, stairways and other service facilities which are
essential in multi-storey buildings.
 The expenditure on the running and maintenance of elevators is eliminated.
 Expansion is very easy.
  The cost of transportation of material is reduced.
 Effective supervision is possible.
 Greater floor load bearing capacity for heavy equipment is ensured.

Limitations:
• Cost of land is high- High cost of land, particularly in the city.
• High cost of transportation of men and materials.

2. High bay and monitor type of building

• this is a single-storey structure with the difference that the roof truss is surrounded by a
monitor.
• the building is designed to give maximum overhead space for a given floor area.
• The overhead space may be used to operate a crane and other over head facilities.
• The monitor offers good natural ventilation and lighting.

3. Multi-storey buildings.
• multi storey buildings are gradually becoming an exception for industrial purposes because
the trend now is for the construction of single storey structures.
Advantages:
• lower cost of ventilation.
• Reduced cost of materials handling- effective use of gravity force.
• Upper floors are more useful for specific lines- the upper floors are free from dust, dirt,
noise and fumes. in the manufacturing or assembly of watches ,computers, T.V)
• Greater degree of flexibility.

Disadvantages
• Material handling is slow and costly. A lot of time is wasted in moving them between floors.
• A lot of floor space is wasted on elvators, stairways.
• Floor load-bearing capacity is limited, unless special constructions is used, which is very
expensive.
• Up to a certain stage, say, up to four storey, the cost per sq.ft of floor area may be the
cheapest; but beyond that stage, the cost of construction rises rapidly.
• Difficulty in supervision.

4. Special type of buildings

• Some manufacturing processes require a particular type of building.
• The aircraft industry, for example, requires buildings with wide spans,
• The building for a saw mill is constructed without side walls so that saw dust does not
accumulate inside the plant.

Factory Lighting meaning

 As per All India General Standards :
 A minimum of 14 Lumens of general illumination is taken as adequate in any
manufacturing place.
 In terms of foot candles a lighting in terms of 20 foot candles has been accepted as
standard.
 Just as quantity of light is important, its quality is much more important which reflects
the aspects of its colour,direction,diffusion,steadiness and glare that it emits
 The factory lighting facilities are governed by the provisions of Factories Act Of
1948.
 Lighting is one of the physical facilities most required in a factory.
 Single most environmental factor contributing to worker satisfaction, comfort and
productivity.
 Necessary for a worker so that he/she may see minute details of his job with ease
and accuracy.
 It is good when free from glare and is properly diffused and its flow is direct and
steady.
 Excessive lighting is harmful to the eyes of workers and should therefore be avoided.

Good Lighting
 A good illumination or lighting has its own standards of quality in terms of elusion
of colour, direction, diffusion, brightness, steadiness and absence of glare.
Factory Act, 1984
 In every part of the factory where workers are working or passing, there shall be
provided and maintained sufficient and suitable lighting, natural or artificial or both.
  In every factory all gazed windows and skylights used for the lighting of the
workroom shall be kept clean on both inner and the outer surfaces and, so far as
compliance with provisions of any rules made under sub-section 930 of section 13
will allow, free obstruction.
In every factory effective provision shall, so far as is practicable, be made for the prevention
of-
a.) glare, either directly from the source of light or by reflection from a smooth or polished
surface.
b.) the formation of shadows to such an intent as to cause eye-strain or the risk of accident to
any worker.
The State Government may prescribe standards of sufficient and suitable lighting for factories
or for any manufacturing process.

Features
 Emission of adequate light
 Standard intensity of the light
 Correct diffusion
 Eradication of glare
 Direction and reliability
 Cool and soothing
 Economical
 Colour conditioning
1.Emission of adequate light – to see the objects very clearly without any strain.
2. Standard intensity of the light – intensity refers to lumen ,the unit used to measure the
intensity of light and lumen are per square foot being equal to foot candle.
the intensity of light varies from department to
department and operations to operations.

Standard Intensity of Light

 3. Correct diffusion- diffusion signifies an even spread of light over the work place or the
object.
4. Eradication of glare- glare is a condition of a brightness within the field of vision that
causes discomfort or eye fatigue.
good light is one which is free from the possible glares and dazzles.
direct light should be eradicated by mechanical devices and scientific light fixtures.
5.Direction and reliability – even spread of light or even distribution of light of light
naturally permits flexibility .
reliability in power supply-frequent power cuts or change in the voltage result in disrupting
the work resulting in reduced output, affects quality and even resulting into accidents.
6.Cool and soothing-
7.Economical
8. Colour conditioning

Importance of Lightning
 Clear Vision
 Reduced eye stress and strain
 Refined quality of work
 Multiplied Output
 Reduced accidents rate
 Good plant up-keep
 Improved employee morale
 Improved Supervision
 Meeting of legal implications
Ventilation and Air- Conditioning
Ventilation
Meaning:
Ventilation is the process of removing or supplying air by natural or mechanical or combined
means to and from factory building.
Aspects of Ventilation:
 Control of Ventilation
i. Remove excess of heat and noxious gases
ii. Cause ill health to workers.
iii. Reduce quality and quantity.
 Control of temperature
i. Direct bearing on quality and quantity of output
ii. Effective ventilation, construction of thick walls etc.
 Control of humidity
i. Impact on mental and physical working capacities.
ii. High degree= easy fatigue
iii. Low degree= discomfort

Significance of good ventilation

 It meets legal claws of laws.
 It provides adequate supply of fresh air.
 It reduces odours, impurities and noxious gases.
 It removes dust bacteria and suspending particles.
 It prevents excessive heat generation in premises.
 It maintains required degree of humidity.

Methods of artificial ventilation

1. Exhaust system
 Works on the principle of propellers.
 Exhaust fans
 Removing smoke, odours, fumes, dust etc.
 2. The supply System
 Means of fan
 Upwards or downwards
3. Balanced System
 Hybridization of both
 Fans = supply fresh air
 Exhaust = remove stale air.
 Provides full control
 Meets the requirement

Air Conditioning
Definition:
“Air conditioning is the simultaneous control of the temperature, humidity, motion and purity
of the atmosphere in a confined space.”
-Jordan and Priester
Significance of Air Conditioning
 Employee Comfort
 Employee Health
 Desirable Conditions of temperature
 Preservation and improvement of product quality
 Protection of Manufacturing Equipments
 Storage of inputs
1. Functional Air- Conditioning
1. Domestic Air- Conditioning
 Also known as “Comfort Air- Conditioning”
 Aims to provide comfortable weather condition

2. Industrial Air- Conditioning

 Mainly designed and operated to control the creation and maintenance and extension
suitably controlled atmospheric working condition

Technical Air- Conditioning

- Summer
- Winter
- Composite

System of Air Conditioning

 Central system
 Self- contained system
 Semi- contained system
Chapter 2

MEANING AND DEFINITION OF PURCHASING

The term “purchasing” refers merely to the act of buying an item at a price.
Purchasing function is one of the major functions of production management.
Purchasing the material of right quantity, right quality, at right cost, in right time, from right
source and right place is very important to bring down the cost of production.
Purchasing is a much broader concept than buying and covers wide range of managerial
functions right from participation in corporate planning and policing activities to product
improvement, working capital management and profit improvement.
For example, the research and development, coordination activities, development of proper
procedures, methods, etc.
PROCUREMENT is also used instead of purchasing. The term procurement is broad in its
meaning and covers the duties performed by purchasing as well as additional functions. The
purchasing department is often called the supply department.

Importance of Purchasing
- Purchasing function provides material to the factory.
- Concept of efficient buying.
- Purchasing manager is the custodian of his firm.
- Buying assumes significance.

Objectives of Purchasing
1.Continuous flow of material.
2. No excess investment in materials:
 the manufacturing house must purchase each item that is just sufficient.
 There is no point in un-necessarily blocking the valuable finance in excess materials.
 Over stocking results in capital lock up and material losses.
3.To develop satisfactory sources of supply.
4. To secure good vendor performance.
5. To locate new materials or products as required.
6.To develop new procedures, adequate controls and purchasing policy.
7.To implement programmes such as value analysis and cost analysis.
8.To secure high calibre personnel and to develop to its maximum ability.
9.To maintain as economical a department as is possible,commenstruate with good
performance.
10.To keep top management informed of material development.
11.To achieve high degree of cooperation and coordination with other departments in the
organisation.

Purchasing Cycle
The purchasing cycle consists of all the steps to be followed in order to perform the
purchasing functions.
The steps to be followed are:
 Recognition of needs
 Description of needs
 Selection of source
 Determination of price and availability
 Placing the order
 Order acknowledgement
 Follow up and expediting
 Checking the invoice and approval
The Purchasing Cycle
Conventional purchasing cycle

A. RECONITION OF NEEDS:
 The recognition of needs refers -to the means by which a needed item is officially
brought to the attention of the purchasing department.
 Two procedures are followed.
  One involves the issuance of requisitions or demand notes by the user department or
the stores department.
 The other involves issuance of a bill of materials.

B. DESCRIPTION OF NEEDS:
 The purchase requisition describes the required item.
 In order to assure complete and accurate information for ordering, the requisition
must include all necessary information in a form that can be readily checked and
verified.
 A buyer must check a requisition on the basis of his own knowledge of the item,
records of past purchase and vendor catalogues.

C. SELECTION OF SOURCE:
 The purchasing department proceeds to select the source of supply.
 Mostly the department knows from where to buy the materials.
 A regular list of approved suppliers, called ‘Register of Suppliers’ is maintained by
the purchasing department. Often, they advertise in the press inviting tenders.
 It is essential that a right source must be selected.
 A right supplier is one who delivers materials of the correct specifications on the
stipulated delivery dates.

Appraising Suppliers
 Indicators of likely ability to deliver
 Financial health
 Capacity and production facilities
 Human resources
 Quality
 Performance
 Other factors
 Reputation
 Environmental/ethical factors
 Ease of doing business
Getting Sourcing Information
 Through contacts
 Purchasing department
 Salespeople
 Trade associations
 Fellow professionals
 Information gathering
 Invitations to tender
 Advertisement
 Exhibitions
 From publications
 Catalogues
 Trade directories
 Web
 Yellow pages
 Databases
 Public and subscriber
 Trade journals
4. DETERMINATION OF PRICE AND AVAILABILITY:
The next step is to secure the price for the items to be purchased.
This maybe accomplished in three ways:
 For standard items, vendor’s catalogue and price lists are available.
 Negotiation is the second step which implies bargaining between buyer and seller.
 The third step is to invite tenders or quotations which is a must in government
undertakings.
5. PLACING THE ORDER:
The legal order is placed with the supplier on a form known as a purchase order. When an
order is placed by telephone or telegraph, it is the practice to confirm the order by sending the
supplier a regular purchase order.
6. ORDER ACKNOWLEDGEMENT:
Acknowledgement is to get a definite confirmation from the supplier about the supply of
items on time. Some companies insist on order acknowledgement from the supplier
acknowledging the receipt of purchase orders and agreeing to supply the items stated.
7. FOLLOW UP AND EXPEDITING:
Follow up is done to ensure that the items ordered are delivered by
the supplier on time.
8. CHECKING THE INVOICE AND APPROVAL:
The last step in the purchasing cycle is to check the invoice and
approve it for payment. Since the bill constitutes a definite claim
against the buyer, it needs to be handled with care.

BLANKET ORDERS :
This is a method wherein the buyer issues an order covering the requirement of a small item
for one year.
Whenever the stock of the item reaches low, the buyer simply telephones the supplier and
requests the item against the outstanding blanket order.
ADVANTAGES:
 Paper work is reduced
 Time of buyer is saved
 Facilitate price negotiation
 Facilitate inventory contract.

STOCKLESS BUYING:
Also called Systems Contracting, stockless buying is a special type of
Blanket order.
 The buyer places a Blanket order for a family of items at firm prices.
 On a telephone call from the buyer, supplier will deliver the items to the inventory
area set aside in the buyer’s plant. The items are still owned by the vendor.
 Buyer makes a single payment for all items used.
 Computer prepares a summary report, at regular predetermined intervals, showing the
items and quantity used, for both the buyer’s and vendor’s analysis, planning and
restocking.

FACTORS INFLUENCING PURCHASING POLICIES

1. ANCILLARY DEVELOPMENT:
 When a company decides to buy a part from outside suppliers, it is usually sub -
contracted.
 Sub – contractor - ancillary unit.
 Sub – contracting is the work of obtaining the prime manufacturer’s requirements,
mostly of fabricated parts and components, from outside sources in order to
manufacture a certain product in the prime manufacturer’s plant.
 Sub – contracting is being practised to a much greater degree now than in the past.
ADVANTAGES:
 Spread of entrepreneurial base.
 Promotes industrial development.
 Regular supply of right quality items is assured.
DISAVANTAGES:
  It is not suitable when the primary company embarks on major modification of the
existing product.
 Providing technical and managerial guidance and offering facilities for development
adds to the operational problems of the parent company.
 Undue favours are shown to the owners of ancillaries.
2. MAKE – OR – BUY:
This purchasing policy relates to the decision involving whether to buy a part or
component from outside or manufacture in own plant. In some cases the company may
be able to make a required component more economically than it can buy it. Deciding
whether a part must be manufactured or purchased is known in the industry as make – or –
buy problem.
Considerations which favour making the part:
 Desire to integrate plan operations.
 Productive use of excess plant capacity to help absorb fixed overheads.
 Need to exert direct control over production.
 Design secrecy.
 Unreliable suppliers.
 No suitable supplier quotation.
 Desire to maintain a stable workforce.
Considerations which favour Buying the Part:
 Cost consideration.
 Supplier’s research and specialised know how.
 Small volume requirements.
 Limited production facilities.
 Desire to maintain a stable workforce.
 Desire to maintain multiple source policy.
 Government policy favouring ancillarisation.
3. SPECULATIVE BUYING:
Speculative buying is conducted with the hope of making profit out of price changes. It is
of two types:
 Purchasing department buys certain items at low prices and sells the same when the
prices shoot up, thus making profit in the bargain.
  Materials are purchased in excess of foreseeable requirements in anticipation that the
need will arise for the material and that the firm will profit by making the purchase at
the current price.
If the firm wishes to engage in this type of speculation, it should be organised and
administered from the normal purchasing activity.
4. VENDOR RATING:
 The ability to select reliable vendors is a mark of successful purchasing action.
 It is not always easy to identify a good vendor; in many cases, purchasing department
is unjustly criticized because of poor performance.
 For this purpose vendor rating is carried out and the valuable in the hands of the buyer
in making his purchase decisions as also providing feedback to a suppliers with low
rating to encourage improvement in their performance.
 Many companies adopting a vendor rating plan which was developed for another
company when, obviously, each system must be listed to the specific requirements of
one particular organisation. No system can be if any value unless it results in better
vendor performance. Nor Can it work well unless the people involved understand it
and are convinced that is worthwhile.
5. ETHICS IN PURCHASING:

 The purchasing manager is the custodian of company funds, responsible for their
conservation and wise spending.
 Moreover through his contacts and dealing with vendors he is the custodian of the
company's reputation for courtesy and fair dealing.
 While carrying out these activities he must make sure that he follows certain ethics
and he eliminates all unethical behaviour.
 Buyers spend millions of dollars of their employer's money each year . As a result
they yield tremendous power and are the objects of considerable attention from
suppliers. They are in an excellent position to be dishonest if they want to. Buyers can
bluntly demand kickbacks. And other favours from suppliers.
6. GIFTS:
Gifts have become an established way of business life. But the purchase manager must
decide between ethical and unethical aspect of gifting.
DISADVANTAGE
 The borne of gifting falls on the buyer of the product as the selling price increases.
 Gift giving and gift receiving in industry is the course to which
such a practice frequently leads.
 The unbridled gift receive giving can lead to commercial bribery and its attendant
legal problems.

ADVANTAGES:
They enhance morale and contribute to better climate for business transactions.
 7. VALUE ANALYSIS:

Also called value engineering,

 it is an important activity that typically occurs jointly between purchasing and
methods engineering.
 This activity is aimed at modifying the specifications of materials , parts , and product
s to reduce their costs while reducing their original function.
 Focus is placed on the value of the product- what function is to be performed by the
product - and how that value can be achieved. At the lowest cost.
 Although value analysis is applied to all phases of the production process, primary
attention is devoted to the materials and components going into the product.
 A value analysis team or committee takes a product which has been designed or
produced and attempt stock define what function the product should fulfil.
 Once the function has been identified, the analysis committee examines the possible
ways of performing the function at the lowest cost.
8. RECIPROCITY:
Reciprocity refers to reciprocal buying. It is the practice of giving the preference in
buying to those who are customers of the buying company as opposed to the vendors who do
not buy from the company.
ADVANTAGES:
 Quality, price and service are assured.
 It adds to the sales of buying company.
 Creates better trade relations between the buyer and seller.
DISADVANTAGES:
 Formation of false markets as companies may later change their mind.
 Reciprocity does not follow sound principals of buying & selling.
 Companies may relax their competitive efforts, which may lead to decrease in quality
& increase in cost.
 Sales department may develop a false sense of security.
 Company reputation may be harmed due to bad publicity resulting from reciprocity.
 Difficulty in finding new customers

Industries which are highly affected by reciprocity are the steel, cement,
transportation and petroleum industry. Others like the electronics and defence
industries are not that responsive to reciprocity.
It is considered as an unethical practice and almost illegal one.
Materials Management
Material Handling
Definition of material handling:-
Materials handling is defined as the art and science of moving, packaging and storing of
materials in any form by means of gravity, manual effort or power actuated machinery .
Other definitions are:
 Movement and storage of material at the lowest possible cost through the use of
proper methods and equipments.
 Creation of time and place utility.
 Art and science of conveying , elevating , positioning, transporting , packaging and
storing of materials.
 Lifting , shifting and placing of material which effect a saving in money , time and
place .
Importance of Materials Handling
 Efficient materials handling is important to manufacturing operations.
 Materials sent by vendors must be unloaded, moved through inspections and
production operations to stores and finally to the shipping department.
 These movements do not add value to the product but they do add to the cost.
 Materials handling analysis is a subset of plant layout.
 A good plant layout enables an operation to use the most efficient handling method.
Efficient operation of appropriate materials handling methods reduces costs and
enables maximum capabilities to be derived from a given production facility.
Objectives:
Even though the best solution to the materials handling problem is no handling it is hardly
practicable in a manufacturing process. Hence the main objective of materials handling is to
 reduce the number of handlings as well as the overall cost of material handling
equipments and reducing the distances through which the materials are handled.
 Minimization of processing time.
 Reduction in manufacturing cycle time through faster movement of materials
and by reducing the distance through which the materials are moved.
 Minimization of material handling costs.
 Preventing damages to materials.
 Preventing accidents.
  Minimization of fatigue.
 Improves the productivity
 Elevated plant efficiency
 Greater utilization of material handling equipment.
 Better housekeeping
 Efficient store keeping
 Lower investment in work-in-progress
 Better planned layout.

PRINCIPLES OF MATERIAL HANDLING

A SET OF GUIDELINES WHICH HAVE BEEN SET BY EXPERIENCED PEOPLE
Planning principle :
 Material handling should be planned as well as integrated or synchronized with
production activity to obtain maximum over all operating efficiency .
a. Principle of plant layout-
b. Principle of delegation of responsibility –handling MH equipments responsibility
should be assigned to a separate department.
c. Principle of minimization of re-handling – re-handling adds to cost, increases spoilage
and leads to wasted movements.
d. Principle of space saving –
Operating principles
a. Principle of unit load handling- material handling cost is inversely proportional to the
size of the load or unit load. Materials should be handled in bulk or lots over the
distance.
b. Principle of Gravity-
c. Principle of flow of Material
Equipment Principles
a. Principle of Mechanization-
b. Principle of terminal time
c. Principle of dead weight
d. Principle of standardization
e. Principle of maintenance
 f. Principle of speed
g. Principle of versatility
Principle of Mechanization-
 Mechanization of material handling generally increases efficiency and
economy in handling.
 the use of mechanized equipment instead of man-power reduces
 handling cost,
 increases speed of handling,
 cuts down accidents,
 improves safety,
 reduces fatigue of workers and
 improves productivity.
Principle of terminal time-
 reduction in terminal time of handling equipment increases the efficiency and
economy of the equipment.
 Waiting time of the equipment at the pick up point and put down points should
be reduced to its minimum.
Principle of dead weight-
 weight of the equipment-
Principle of standardization-standardisation of MHE increases the efficiency and gives
economy in operation of the equipment.
Principle of maintenance
Principle of speed-
Principle of versatility
 Economy in MH is obtained by use of equipment that is capable of variety of
applicants.
Costing Principles

a. Principle of equipment selection-selection of the most flexible equipment increases

the efficiency
b. Principle of replacement- retaining an equipment beyond its economic period
increase repairs cost,breakdown is high
c. Principle of handling cost appraisal- of the equipment.
General Principle
a. Principle of safety
b. Principle of sound training
c. Principle of identification –
Materials must be kept identified by labeling on pallets and boxes – this avoids wrong and
unwanted movement of materials and equipments
d. Principle of location – location of MHE at right place and at the right time to avoid delay
and hunting in materials handling.
 Principle of material treatment – all types of materials should be treated as important
since MH costs are not related to the cost of the materials.

Factors Affecting the selection of Material Handling Equipment

The selection of materials handling equipment requires the attaining of proper balance
between the production problem, the capabilities of the equipment available, and the human
element involved. The ultimate aim is to arrive at the lowest cost per unit of material handled.
Equipment factors to be taken into consideration may well include the following:
 Adaptability: the load carrying and movement characteristics of the equipment
should fit the materials handling problem.
 Flexibility: Where possible the equipment should have flexibility to handle more than
one material, referring either to class or size.
 Load capacity: Equipment selected should have great enough load-carrying
characteristics to do the job effectively, yet should not be too large and result in
excessive operating costs.
 Power: Enough power should be available to do the job.
 Speed: Rapidity of movement of material, within the limits of the production process
or plant safety, should be considered.
 Space requirements: The space required to install or operate materials handling
equipment is an important factor in its selection.
 Supervision required: As applied to equipment selection, this refers to the degree of
automaticity designed into the equipment.
 Ease of maintenance: Equipment selected should be easily maintained at reasonable
cost. Environment: Equipment selected must conform to any environment regulations.
 Cost: The consideration of the cost of the equipment is an obvious factor in its
selection.
What factors are considered for selecting material handling equipment?
Space
 How much room do you have to house the equipment?
Functionality
 Exactly what do you need the equipment to do, and what might you want it to do in
the future?
Capacity
 What is a realistic and best case through-put?
Customisation
 Do you have any custom requirements?
Operator risk
 What are the safety risks associated with using the equipment and are there any
additional safety measures that need to be taken?
Maintenance
 How often will spare parts be required and what is the ongoing cost of maintenance?
Product
 What is the product exactly? How viscous is it? This is particularly important when it
comes to tippers and tilters.

PRODUCTION OPERATION AND MANAGEMENT

- INVENTORY CONTROL TECHNIQUES
- VALUE ANALYSIS
- VALUE ENGINEERING
- ERGONOMICS

INVENTORY CONTROL TECHNIQUES

Inventory control techniques are employed by the inventory control organization within the
frame work of one of the basic inventory models i.e.., fixed quantity system or fixed order
period system.
  Inventory control may define as the planning, ordering and scheduling of materials
used in the manufacturing process. It is possible to exercise control over the three
types of inventories as raw material, semi-finished and finished goods.
- L.V.FINE
1. ALWAYS BETTER CONTROL CLASSIFICATION (ABC)
Its is one of the widely used technique to identify various items of inventory which is very
useful for classifying and monitoring control of inventories.

 The firm shouldn’t keep same degree of control on all the items of inventory.
 It is based on Pareto’s Law.
 It is also known as selective inventory control.
 The firm should put maximum control on those items whose monetary value is the
highest.
 The higher value items are classified A items and would be under tight control.

A Items B Items C Items

  Tight controls  Moderate control  Ordinary control
measure
 Rigid estimates of  Purchase based on
requirements rigid requirements  Purchase based on
usage estimates
 Strict and close  Reasonably strict
watch watch and control  Controls exercises by
store keeper.
 Safety stocks should  Safety stocks
be low moderate  Safety stocks high
 Management of  Management be done  Management be done
items should be done at middle level at lower levels..
at top management
level.

BENEFITS OF ABC ANALYSIS

- Analyse Customer Demand for a Product
- Enables Negotiations with Suppliers
- Improvement in Customer Service
- Manufacturing of Goods
- Supply Chain Management & Warehouse Management

2. HIGH, MEDIUM AND LOW CLASSIFICATION (HML)

The high, medium and low classification follows the same procedure as adopted in ABC
classification. Only difference is that in HML unit value is the criterion and not the Annual
consumption value.
3. VITAL, ESSENTIAL AND DESIRABLE CLASSIFICATION(VED)
The VED analysis is done to determine the criticality of an item and its effect on production
and other services. It is specially used for classification of spare parts.
4. SCARCE, DIFFICULT AND EASY TO OBTAIN (SDE)
The SDE analysis is based upon the availability of items, on problems faced in procurement,
and is very useful in the context of scarcity of supply.
5. FAST MOVING, SLOW MOVING AND NON-MOVING (FSN)
The classification is based on the pattern of issues from stores and is useful in controlling
obsolescence.
6. SEASONAL-OFF SEASONAL CLASSIFICATION(S-OS)
S-OS analysis is based on the nature of supplies. The classification of items are done with the
objective of determining proper procurement strategies.
 S – stands for seasonal items and OS –stands for the off-seasonal items.
 Agri based industries need to design their procurement policies in such a way that
they procure their raw material during the harvesting season so that they get the best
quality in the reasonable price.
7. XYZ Analysis
 Based on closing inventory value of different items.
 Items with high inventory values are classified as X items.
 Items with low investment(with low inventory value) in them are termed as Z items.
 Items with neither too high nor too low inventory value are the Y items.
 Ready made garment industry can effectively use this analysis.
8. Government, Ordinary, Local and Foreign (GOLF) supplies Analysis
 Used to identify the stock in terms of Government supplies, ordinary supplies, local
supplies and foreign supplies.
 This analysis can be effectively used by industries in designing their procurement
strategies.

9. Economic Order Quantity (EOQ)

- Refers to that level of inventory at which the total cost of inventory is minimum.
  The total inventory cost comprising ordering and carrying costs.( storage costs are
excluded)
 EOQ is also known as Economic Lot Size (ELS).
Assumptions of EOQ model :
 Demand for the product is constant and uniform throughout the period.
 Lead time is constant.( time from ordering to receipt)
 Price per unit of product is constant.
 Inventory holding cost is based on average inventory.
 Ordering costs are constant
 Demand for the product will be satisfied.
EOQ Formula :

where; A= Annual usage

O= Ordering cost per order
CC= Carrying cost per unit
Limitations of EOQ:
 Constant Usage
 Faulty Basic Information
 Costly Calculations

10. Minimum-Maximum Technique

 Often used in connection with manual inventory control systems.
 Minimum quantity is established in the same way as any reorder point.
 Maximum= minimum quantity + optimum lot size.
  Order quantity= maximum – inventory status after withdrawal.
 The effectiveness of minimum-maximum system is determined by the method and
precision with which the minimum and maximum parameters are established.

11. Two Bin Technique

 Mainly adopted to control ‘C’ group inventories.
 Stock of each item is separated into two bins.
- one bin contains stock, just enough to last from the date a new order is placed until it is
received in inventory.
- the other bin contains a quantity of stock enough to satisfy probable demand during the
period of replenishment.
 This method is appropriate to ideal conditions in which rate of consumption is fairly
constant and for items lead time of which is fairly established and regular.
 The most desirable quantity to reorder is the EOQ.
Demerit :
 Requirement of additional storage facilities
 Some practical difficulty in keeping the two stocks properly separated.

12. Materials Requirement Planning (MRP)

 Material requirements planning (MRP) is a production planning, scheduling, and
inventory control system used to manage manufacturing processes.
 Most MRP systems are software-based, but it is possible to conduct MRP by hand as
well.
 An MRP system is intended to simultaneously meet three objectives:
 Ensure materials are available for production and products are available for delivery
to customers.
 Maintain the lowest possible material and product levels in store
 Plan manufacturing activities, delivery schedules and purchasing activities.
13. Just In Time (JIT)
 Highly discussed in materials management circles.
 JIT concept originated from the Motomachi plant of Toyota in Japan.
 This concept is alternatively known as
- ZIPS (zero inventory production system)
- MAN (Materials as needed)
- NOT (Nick of Time)
- ZIN (Zero Inventories)
 JIT means that virtually no inventories are held at any stage of production and that
exact number of units is brought to each successive stages of production at the right
time.
 Xerox and Maruti Udyog have implemented JIT concept.
 For its successful implementation:
- is a complete restructuring of the industry.
- is the introduction of redesigned cooling and auxiliaries.

VALUE ANALYSIS OR VALUE ENGINEERING…

- A task of finding a more economical way of making or buying a product.
- A systematic organised approach for attaining the same performance at lower cost
 - A cost reduction programme to improve value/cost ratio of a product or material.
- A method used to improve the product value.
- A process of substitution to achieve cost reduction incidentally

OBJECTIVES OF VALUE ANALYSIS

- To improve the company's competitive position.
- To ensure that every element of cost contribute
proportionately to the function of the product.
- To provide better value to a product / service.
Value engineering process
- It is a systematic and organized approach that
examines all aspects of a problem, employing a
questioning attitude.
- Thus, a formal approach has to be adopted for value
analysis process which is called VALUE
ENGINEERING JOB PLAN.
- These job plans have various steps with their
associated value engineering techniques at each
phase.
The seven steps involved are:
1. General phase
2. Information phase
3. Function phase
4. Creation phase
5. Evaluation Phase
6. Investigation Phase
7. Recommendation Phase
1. General phase:
 Use good human relations
 Inspire team work
 Work on specifics
 Overcome road blocks
 Apply good business judgement.
2. Information phase:
 Secure facts
  Determine costs
 Fix costs on specifications and requirements
3. Function phase:
 Define function
 Evaluate function relationship
4. Creation phase:
 Establish positive thinking
 Develop creative ideas
5. Evaluation phase:
 Refine and combine ideas
 Establish cost on all ideas
 Develop function alternatives
 Evaluate by comparison
6. Investigation phase:
 Use company and individual standards to the extent possible.
 Consult vendors and specialists to get cost reducing and quality improving ideas.
7. Recommendation phase:
 Present facts
 Motivate positive action

BENEFITS OF VALUE ANALYSIS

Value is the ratio of function to cost.
Value can be increased by either improving function or reducing cost.
 Better purchasing techniques
 Better suppliers
 Design re-evaluation and modification
 Lower operating cost
 Standardisation/substitution
 Better material handling
GUIDING PRINCIPLES FOR VALUE ANALYSIS
 Avoid accepting general negative statements
 Collect all the available cost data
 Use only the best source of information
 Screen data thoroughly
 Give importance to creativity
 Spot and remove obstacles
 Use specialists for advice
 Use available functional products
 Reward suppliers
 Apply specialised processes
 Utilise existing standards
 Evaluate your money spending in detail

TECHNIQUES OF VALUE ANALYSIS

Design Analysis
Brainstorming
Price Analysis

ERGONOMICS
Definition
Ergonomics is defined as the science related to man and his work, embodying the anatomic,
physiologic, and mechanical principles affecting the efficient use of human energy.
EXAMPLES-
Safe lifting techniques, proper posture, appropriate seating position, and adaptive equipment.
 Ergonomics is also known as bio-mechanics.
 Concerned with designing and shaping jobs.
 Health and productivity.
 Safety system, human work and effectiveness.
 Emerged from multiple disciplines.
Ergonomics and its sub-branches
HARDWARE ERGONOMICS
 Continuous use of keyboard
 Microsoft natural 4000 keyboard
ENVIRONMENTAL ERGONOMICS
 Interaction between the user and his physical environment .
 Addresses the problems of maintaining human comfort.
Climate:
People work most productively when they are in a comfortable climate.
The climate of your office either can have a positive or negative impact on workplace
productivity and comfort.
climate you perceive consists of three main components: air temperature, air humidity and air
movement.
Temperature:
The best air temperature depends on the season. A range of 68-75°F (20-24°C) generally is
preferable
b. Humidity:
An increased level of humidity tends to increase the level of perceived temperature.
c. Air movement :
Air movement typically is minimal in an office setting. The recommendation is to keep drafts
below 0.2m/s, which is equivalent to a light breeze
Noise
Unwanted sound may cause damage to the workers hearing
Workers should not be exposed to noise intensity above 90db.
Lightning
Good illumination
Color content of light and amount of glare is important.

SOFTWARE ERGONOMICS
 Software ergonomics is a subcategory of ergonomics that concerns the software
design, rather than the hardware design, of systems.
  Software ergonomics includes the determination of user needs, interface design, user
support and usability testing..
MACRO ERGONOMICS
 Also known as sociotechnical.
 Organizational design, job design, change management.
 To obtain harmonized work system.

APPLICATION OF ERGONOMICS
1.DESIGN OF PHYSICAL DEVICES OR EQUIPMENTS
2.THE WORK ENVIRNOMENT
a. Temperature
b. Noise
c. lightning

DESIGN OF PHYSICAL DEVICES OR EQUIPMENTS

 Machine-worker system
 Machine must be adapted to the worker
 Human capability and limitations
 Tabulation of worker-machine relationship
 ‘OFF’ direction of all the switches must be the same.

Chapter 3
PRODUCTION PLANNING & CONTOL
Production planning and control
Meaning of production planning and control-
PPC or OPC is the process of planning or deciding on the resources that the firm requires for
its further manufacturing operations and of the allocation of these resources to produce the
desired product or products in the required quantity, at the minimum cost of high level of
quality.

Definition of production planning and control-

 Production planning and control involves generally the organisation and planning of
manufacturing process.
 Specially, it consists of the planning of routing, scheduling, dispatching and
inspection, co-ordination and control of materials, methods, machines, tooling and
operating times.
 The ultimate objective is the organisation of the supply of materials and labour
machines utilization and related activities in order to bring about the desired
manufacturing results in terms of quantity, time and place.

Objectives of product planning and control

 It aims at planning the production systematically.
 To provide the M’s of operations to the management
 In scheduling the production programme
 To maintain coordination with the interdepartments.
 To meet the delivery commitments
 To inform well in advance the difficulties that might crop up.
COMPONENTS OF PPC
1.ROUTING
2.SCHEDULING
3.DISPACTING
4.FOLLOW-UP

ROUTING
Routing practice arises out the demand for a more systematic method of carrying out the
work in the workshop.
Routing is the starting point of production planning which include the activities namely,
 determining the quantity of the product,
 men, machines, materials, type, sequence and place require for manufacturing
activities.
“Routing includes the planning of where and by
whom work shall be done, the determination
of the path that work shall follow and the
necessary sequence of operations, it forms a
ground work for most of the scheduling and
dispatching of planning department.”

Objectives of routing
1. Routing sets path for each product for travel
2. It aims at selecting the most short and economic route
3. It ensures best utilisation of men and machines
4. It has impact on factory building and machines

Routing procedure
1. Decision as to make or buy
2. Determining the material required
3. Determining the manufacturing operations and sequences
4. Ascertaining lot sizes
5. Determining the scrap factors
6. Cost analysis of the product
7. Organizing production control forms

Scheduling
“Work scheduling consists of the assignment of starting and completion times for various
operation to be performed.”
 Scheduling is the process of arranging different operations involved in manufacturing
in order of priority, fixing the time and date when each operation starts and ends.
 It is to ensure maximum utilization of the plant at minimum cost, ensure that
requirements of man-power is optimum and is evenly distributed.

Inputs of scheduling
1. Performance standards-
2. Unit of measurement
3. Unit of loading and scheduling
4. Effective capacity per work centre
5. Extent of rush orders
6. Overlapping of operations
7. Individual job schedules
8. Loading charts
DISPATCHING
Dispatching is the routine of setting production activities in motion through the release of
orders and instructions, in accordance with preplanned time and sequences, embodied in
route sheets and schedule charts. That is real production starts when permission is granted to
commence according to plans already laid down.

Functions of Dispatching
 Release of manufacturing orders:
 Issue of stores- withdraw required quantity of materials from stores and deliver it to
the machine.
 Return of surplus material-
 Issue of tools
 Issue of inspection orders
 Co-ordination with scheduler
 Allocation of jobs to machines
 Sending finished goods to dispatch section

FOLLOW-UP

 Follow-up is concerned with actual comparison of planned and actual work.

 This is also called as expediting.
 The follow up function ensures that production proceeds along the expected lines.
 Expediting function consists of keeping a watch on the flow of materials, recognition
of delays and taking steps to rush up the remaining operations and communicating the
possible delays to the customers.
Program (Project) Management and Review Technique (PERT) is appropriate for the
projects where the time needed to complete different activities are not known.
Definition of PERT
 PERT is an acronym for Program (Project) Evaluation and Review Technique, in
which planning, scheduling, organizing, coordinating and controlling uncertain
activities take place.
 The technique studies and represents the tasks undertaken to complete a project, to
identify the least time for completing a task and the minimum time required to
complete the whole project.
 It was developed in the late 1950s. It is aimed to reduce the time and cost of the
project.
 PERT uses time as a variable which represents the planned resource application along
with performance specification.
 In this technique, first of all, the project is divided into activities and events.
 After that proper sequence is ascertained, and a network is constructed. After that time
needed in each activity is calculated and the critical path (longest path connecting all
the events) is determined.

Definition of CPM
 Developed in the late 1950s, Critical Path Method or CPM is an algorithm used for
planning, scheduling, coordination and control of activities in a project.
  Here, it is assumed that the activity duration is fixed and certain.
 CPM is used to compute the earliest and latest possible start time for each activity.
CPM
i. This technique was developed in connection with a construction & maintenance
project in which duration of each activity was known with certainty.
ii. CPM is suitable for establishing trade off for optimum balancing between
 schedule time & cost of the project.
i. CPM is used for completion of projects involving activities of repetitive
 nature.

 Time study is considered to be one of the widely used means of Work study. This was
proposed by Frederick Taylor.
 This technique is used for recording the times and rates of working for the elements of
a specified job carried out under specified conditions and for analyzing the data so as
to determine the time necessary for carrying out the job at the defined level of
performance

Key Differences Between PERT and CPM

 The most important differences between PERT and CPM are provided below:
1. PERT is a project management technique, whereby planning, scheduling, organising,
coordinating and controlling uncertain activities are done. CPM is a statistical
technique of project management in which planning, scheduling, organising,
coordination and control of well-defined activities take place.
2. PERT is a technique of planning and control of time. Unlike CPM, which is a method
to control costs and time.
3. While PERT is evolved as a research and development project, CPM evolved as a
construction project.
4. PERT is set according to events while CPM is aligned towards activities.
5. A deterministic model is used in CPM. Conversely, PERT uses a probabilistic model.
6. There are three times estimates in PERT, i.e. optimistic time (to), most likely time ™,
pessimistic time (tp). On the other hand, there is only one estimate in CPM.
7. PERT technique is best suited for a high precision time estimate, whereas CPM is
appropriate for a reasonable time estimate.
Chapter 4
Quality Control

INTRODUCTION
Those activities which assure that quality creation is performed in such a manner that the
resulting product will in fact perform its intended function in an efficient manner.

WHAT IS QUALITY CONTROL??

Meaning:
inserting check points at various stages of procurement, production, delivery and provision of
services and ensuring that results of check done are within the acceptable limits
Services
Products
This helps and ensures that services rendered and the end product delivered to customer is of
stated quality as per the standards laid down by the company

Quality control is a staff function concerned with prevention of defects in manufacturing so

that items may be made right the fir first time and not rejected later.
When errors or mistakes are suspected or discovered it is essential that the "Five Ws" are
trailed:
1. - what error was made?
- where was it made?
- when was it made?
- who made it?
- why was it made?

ORGANISATION FOR QUALITY CONTROL

 Incoming raw materials
 Manufacturing process
 Machines and equipment
 In process inspection
 Final inspection
 Testing for product performance
ORGANISATION FOR QUALITY CONTROL
 Level of quality control depends on number of factors
 Level of significance
 Complexity of manufacturing
 Policies used
QC not just the responsibility of the personnel in QC department but every one in the
organization

QUALITY CONTROL TECHNIQUES

1. JUST IN TIME
 JIT also known as Lean Production, Lean Systems
Philosophy
Getting the right quantity of goods at the right place at the right time.
Just-in-time (JIT) is an inventory strategy companies employ to increase efficiency and
decrease waste by receiving goods only as they are needed in the production process, thereby
reducing inventory costs. This method requires producers to forecast demand accurately.

 JIT has different interpretations. For some companies it, JIT is viewed as a technique
of quality control and is given different names in different companies.
 For some it is buying of materials on time, for some other companies it means
planning and controlling production on the shop floor
 others it is the philosophy of production that permits every facet of organization
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to comment ,vote and Subscribe).mp4
JIT helps achieve quality because it is a philosophy that seeks to constantly improve
production processes and methods. Specifically, JIT contributes to high product quality in the
following ways:
1. Production is highly standardised.
2. In-process inventories are drastically reduced by cutting lot sizes.
3. Suppliers of materials, under JIT system, supply materials of perfect quality.
4. JIT system envisages the use of automated equipments and robots in production
processes.
5. Workers are responsible for producing parts of perfect quality or with zero defects
before they are passes on to the next production operation.
2. QUALITY AT THE SOURCE
Quality at the source is where the workers are made responsible to produce parts of a perfect
quality before, they are passed on to the next operation, the concept of quality at the source
emerges.
Quality at the source is also an important technique of quality control and plays a significant
role in an organization.
The principles underlying quality at the source are as follows:
 Every worker’s job becomes a quality control station.
 Statistical quality control techniques are used to monitor the quality of parts produced
at each work station.
 Each worker is given the right to stop production line to avoid producing defective
parts.
 Workers and managers are organized into quality circles.

3. INSPECTION
What is inspection?
The act of determining conformance or non-conformance of the expected performance is the
function of inspection.
In other words, by inspection a manager seeks to determine the acceptability or non-
acceptability of the parts, products or services. The basis of inspection is usually a
specification which is called inspection standard.
When to inspect is the next relevant question.
Inspection is desired at:
 Finished products and parts to know that correct parts are to be assembled or
products are right when shipped before an expensive processing.
  The output of automatic machine periodically so that possible errors are confined to
small quantities.
 Before an operation that can’t be undone, for example in mixing paint.

4. STATISTICAL QUALITY CONTROL (SQC)

Application of statistical technique to accept or reject products already produced or to control

the process and therefore product quality while the part is being made.
 Process control
 Control during production
 Acceptance sampling
 Control after it is produced (Either accept or reject)
SQC for process control
 Control during production
 Based on sampling and probability theory
Process Variation

Statistical Process Control (SPC)

 Variations in size between .0995 and 1.005 with most measuring 1.000 are due to
chance causes
Chance causes are inherent and cannot be controlled
However if the size measures more than 1.005 and less than .0995 it is due to assignable
causes
Assignable causes can be controlled

Control Chart

Tracking Improvements
What can be controlled using SPC?
VARIABLES. ATTRIBUTES.

Variable Measures are those that can be Attributes are characteristics that are
measured on a continuous scale, for assessed by judgment and are dichotomous,
example length, time, weight.... i.e. have two states such as right or wrong,
looks OK or not OK.

ACCEPTANCE SAMPLING
What is acceptance sampling?
 Statistical quality control technique, where a random sample is taken from a lot, and
upon the results of the sample taken the lot will either be rejected or accepted.

Acceptance sampling method

Acceptance Sampling
Explained
 N
 Sample size taken for your sampling plan
 C
 Where rejections would occur when defects exceeds the acceptance quality
level (AQL) and lot tolerance percent defective (LTPD)
 Acceptable Quality levels(AQL)
 Number of defect percentage allowed in a lot which can still be considered
accepted(Type I error)
 Lot Tolerance Percent Defective(LTPD)
 Amount of defects that will come with a lot of goods(Type II error)
Producers risk
Risk associated with a lot of acceptable quality
rejected
ALPHA =PRODUCERS RISKS
 Type I error(Reject good lot )
 Rejecting lot at AQL
Consumers risk
Receive shipment, assume good quality, actually
bad quality
BETA=CONSUMER RISKS
 Type II error(Accept bad lot)
 Accepting lot at LTPD
Sampling Plan
-Forms after n and c values have been found

Operating characteristics curve(OC)

-It is a graph of the % defective in a lot vs. the probability that the sampling plan will
accept the lot.

ADVANTAGES
 Less time
 Less effort
 Less money
DISADVANTAGES
 Risk included in chance of bad lot “acceptance” and good lot “rejection”.
 Sample taken provides less information than 100% inspection
Types of sampling

DOUBLE SAMPLING
 Take small initial samples
 If defectives < lower
limit ,accept
 If defectives > upper
limit, reject
 If defectives between limits,
take second sample, accept or
reject a lot on the basis of 2
samples.
MULTIPLE SAMPLING
 Uses smaller sampling
sizes
 If defectives < lower
limit, accept
 If defectives > upper
limit, reject
 If defectives between
limits, resample.
Continue sampling until
accept or reject lot based
on all sample data.

SEQUENTIAL
SAMPLING
 The ultimate extension of multiple sampling
 Items are selected from a lot one at a time
 After inspection of each sample a decision is made to accept a lot, reject a lot or select
another item.

QUALITY CIRCLES
 Voluntary group of employees.
 Under the leadership of supervisor.
 Trained to identify, analyse and solve work related problems.
 They present the solutions to management.

Objectives of Quality Control

 Establishment of quality standard.
 Locating quality deviations.
 Evaluating methods and processes of production.
 Quick sale of quality goods.
 Production of standard quality goods.
 Improvement in quality.
Functions
 Quality improvement
 Improvement in productivity
 Cost reduction
 Increase safety
 Better communication
 Team work
 Sense of belongingness
 Better manual trust
 Development of participative culture

MEANING OF ISO AND CERTIFICATE OF TQM

 ISO stands for international organisation for standardization that relates to quality
management systems and is designed to help organizations ensure they meet the needs
of customers and other stakeholders.
  The standards are published by ISO, the International Organization for
Standardization, and available through National standards bodies.
 ISO 9000 deals with the fundamentals of quality management systems including the
eight management principles on which the family of standards is based.
 ISO 9001 deals with the requirements that organizations wishing to meet the standard
have to fulfill.

TOTAL QUALITY MANAGEMENT

 Total quality management or TQM is an integrative philosophy of management for
continuously improving the quality of products and processes.
 TQM capitalizes on the involvement of management, workforce, suppliers, and even
customers, in order to meet or exceed customer expectations.

TQM and Six Sigma

 The Six Sigma management strategy originated in 1986 from Motorola’s drive
towards reducing defects by minimizing variation in processes.
 The main difference between TQM and Six Sigma(a newer concept) is the approach.
At its core, Total Quality Management (TQM) is a management approach to long-
term success through customer satisfaction.
 In a TQM effort, all members of an organization participate in improving processes,
products, services and the culture in which they work.

QUALITY CIRCLES
Meaning
It is the small group of employees in same work area or doing similar type of work who
voluntarily meet regularly to identify, analyze & resolve work related problems not only to
improve the quality, productivity & performance in the organisation but also to enrich the
quality of work life of the employees.
Objectives
 To develop, enhance & utilize human resources effectively.
 To improve quality of products/services .
 To satisfy the workers psychological needs.
 To improve supervisory.
 To utilize individual innovative skills.
Structure of Quality Circles

1) NON-MEMBERS
These are the persons who have to help in implementing recommendations made by the QC
members. The non-members would become part of the structure in the process of QC
activities.
This would produce a catalytic effect on them & enthuse them either to become members of
existing circle or form new circles.

2) MEMBERS
Members are the part of the programme. Proper use of their brain power is the key to success.
Members in a circle should be from the same work place as they are familiar with the work &
meetings.
Activities include:
 Attending meetings without fail & participating actively.
 Contributing ideas/views in the problem identification & problem solving.
 Discussion & developing useful solutions to the problem.

3) LEADER /DEPUTY LEADER (quality leaders)

The leader is elected by the circle members. He is responsible for the operation of his circle
& activities. The line manager acts as a leader of the QC
Functions:
 Conducting meetings regularly.
 Acting as link between members & facilitator.
  Keeping meetings on right track.
 Training members in problem identification and solving technique.
 Preparing an effective presentation to management.

4) FACILITATOR
One facilitator assigned to several circles.
The facilitator is an important link between QC leader & steering committee. He has to
maintain sound inter personal relations in order to function as a social leader & act as a
coach, promoter, teacher & innovator.
Duties:
 Training members, leaders & management.
 They provide information to QC
 Providing feedback to the steering committee.
 Helping the QC in preparing presentations.
 Acting as an evaluator & reviewer of QC operation & programme.

5) STEERING COMMITTEE
It is an apex body at the highest level of the plant which is responsible for formulating the
objectives & for supplying the resources for QC activities. Structure of committee is made up
of the departmental heads like production, finance, material management, engineering headed
by the chief executive.
Functions:
 Providing guidance to QC.
 Suggest problem.
 Arrangement of meeting halls.
 Providing budget to QC activities.

6) TOP MANAGEMENT
Consists of chairman, managing director, directors, chief executives, general manager &
other top executives which helps to ensure the success of implementation of QC in the
organisation.

7) CO-ORDINATING AGENCY
They may be administrative officer who co-ordinates & supervises the work of the facilitators
& administers the programme.
Functions:
 Preparing agenda & conveying meeting to steering committee.
 Presenting the report of QC activities.
 Maintaining statistical operations of QC.
 Co-ordinating training programme & arranging seminars, workshops, etc.

Chapter 5
MAINTENANCE MANAGEMENT
MAINTENANCE
Maintenance of facilities & equipment in good working condition is to achieve specified
level of quality & reliability & efficient working. plant maintenance is an important service
function of an efficient production system. It helps in manufacturing & increasing the
operational efficiency of plant facilities & thus, contributes to revenue by reducing the
operating costs & increasing the effectiveness of production.

MAINTENANCE OBJECTIVES
 Maintenance is any activity is designed to keep the resources in good working
condition or restore them to operating status.
 The objective of plant maintenance are:
1. To increase functional reliability of production facilities.
2. To enable product to be achieved through correctly adjusted, serviced & operated
equipment.
3. To maximize the useful life of the equipment.
4. To minimize the total production or operating costs directly attributed to equipment
service & repair.
5. To maximize the production capacity from the given equipment resources.
6. To enhance the safety of manpower.

MAINTENANCE COSTS
Breakdown of equipment makes the workers & the machines idle resulting in loss of
production, delay in schedules & expensive emergency repairs. These downtime costs usually
exceed the preventive maintenance costs of inspection, service & scheduled repairs. Beyond
this optimal point an increasingly higher level of preventive maintenance is not economical
justified & is economical to adopt breakdown maintenance policy. The optimal level of
maintenance activity M,is easily identified on a theoretical basis, to do this the details of the
costs associated with breakdown & preventive maintenance must be known.
Costs associated with maintenance are:
1. Downtime (IDLE TIME COST) cost due to equipment breakdown.
2. Cost of spares or other material used for repairs.
3. Cost of maintenance labour and overheads of maintenance departments.
4. Losses due to inefficient operations of machines.
5. Capital requirements required for replacement of machines.

Benefits & Limitations of Failure Statistics

Benefits:
1. Helps to diagnose failure when they occur.
2. Provides a valuable information regarding the life & reliability of the equipment to the
design engineer.
3. Failure statistics helps to take maintenance policy decisions as to whether to opts for
repair or replacement options.
4. It is important information for spare parts management.
Limitations:
The wear out failure due to:
1. Failure based on inherent quality & reliability characteristics in design,
manufacturing.
2. Manufacturing defects.
3. The chance failure will occur due to operation included failures, damage of
equipments due to improper handling, accidents etc.
Failure Analysis
Types of Maintenance

1. Planned maintenance: It is an organized maintenance work carried out as per

recorded procedures having control.
 2. Breakdown maintenance: It is an emergency based policy in which the plant or
equipment is operated until it fails & then it is brought back into running condition by
repair. The maintenance staff locate any mechanical, electrical or any other fault to
correct it immediately.
The break down maintenance policy may wok good & feasible for small factories where,
a. There are few types of equipment.
b. Machines are simple & does not require any specialist.
c. Where sudden failure does not cause any serious financial loss.
3. Corrective maintenance: This is an organized maintenance work intended to restore
a failed unit. It includes different types of actions like typical adjustments to redesign
of equipments. It is a onetime job & each corrective maintenance activity undertaken
should be completed fully. Each corrective maintenance job may differ from the other.
The emphasis in corrective maintenance is on obtaining full information of all
breakdowns & their causes. Efforts are made to identify & eliminate the cause by
activities such as improving maintenance practices, changing frequency of
maintenance services & improving process control procedures.
4. Opportunistic maintenance: When an equipment or system is taken down for
maintenance of one or few worn out parts, the opportunity can be utilized for
changing other parts which are wearing out even though they have not yet failed. This
maintenance system is useful for non-monitored components.
5. Routine maintenance: It is the simplest form of planned maintenance which is very
essential. Routine maintenance means carrying out minor maintenance jobs at regular
intervals. It involves minor jobs such as cleaning, lubrication, inspection & minor
adjustments. Routine maintenance needs very little investment in time & money.
6. Preventive maintenance: Preventive maintenance is a planned maintenance of plants
& equipments in order to prevent or minimize the breakdown.
7. Predictive maintenance: Predictive maintenance as the name implies simply means
predicting the failure before it occurs, identifying the root causes for those failures
symptoms & eliminating those causes before they result in extensive damage of the
equipment.
8. Condition based maintenance: In this method, the condition of the equipment or
some critical parts of the equipment are continuously monitored using sophisticated
monitoring instruments so that the failure may be predicted well before it occurs &
corrective steps are taken to prevent failure.
9. Design out maintenance: It is a design oriented curative means aimed at rectifying a
design defect originated from improper method of installation or poor choice of
materials etc. It calls for the strong design & maintenance interface. Design our
maintenance aims to eliminate the cause of maintenance. It is suitable for items of
high maintenance cost.

PREVENTIVE MAINTENANCE SYSTEM

The preventive maintenance policy is a system of planned scheduled maintenance. The basic
principle involved in this system is “prevention is better than care". Preventive maintenance
includes:
1. Proper identification of all items, their documentation & coding.
2. Inspection of plant & equipment at regular interval
3. Proper cleaning, lubrication of equipment.
4. To upkeep the machine through minor repairs, major overhauls etc.
5. Failure analysis & planning for their elimination.
Preventive maintenance schedules are normally of two categories:
1. Fixed time maintenance(firm) schedule.
2. Condition based maintenance.

PREVENTIVE VERSUS BREAKDOWN MAINTENANCE

Preventive maintenance is the routine inspection & service activities designed to detect
potential failure conditions & make major adjustments or repairs that will help prevent major
operating problems where as, breakdown maintenance is the emergency repair & it involves
higher cost of facilities & equipments that have been used until they fail to operate.
An effective preventive maintenance program for equipments requires properly trained
personnel, regular inspection & service & should maintain regular records. It is planned in
such a way that it will not disturb the normal operations, hence no down time cost of
equipment. Breakdown maintenance stops the normal activities & the machine as well as the
operators is rendered ideal till the equipment is brought back to normal condition of working.

CONDITION BASED MAINTENANCE(CBM) SYSTEM

Predictive maintenance is more feasible today because of technology that available for
equipment surveillance & diagnose of problems while the machines are still operating. The
condition of a machine can be monitored by several means. Sensors may be instaled,or
periodic readings may be taken with portable units to measure vibration or temperature.
Vibration sensors & ultrasonic sensors are used to feed data in to a computer for analysis. The
deviation from the normal vibration pattern are recorded when the machine is running
properly are analyzed to determine where the problem is developing & when it will become
serious. A problem of this type prevents unplanned downtime that disrupts production
schedules.
The objectives of condition- based maintenance are:
To detect the failure before they occurs.
To carry out maintenance only when required.
To reduce the maintenance costs & downtime costs.
The methodology of C.B.M consists of following steps:
1. Proper identification & location of machines by codification.
2. Selection of critical machine 7 systems.
3. Identifying components.

1. Fixing condition parameters.

2. Monitoring techniques.
3. Monitoring schedule 7 frequency.
4. Trend monitoring.
5. Repair schedule & execution.
6. Follow up.
The conditioning monitoring techniques are broadly classified as :
 Visual
 Temperature
 Vibration
 Lubricant monitoring
 Leakages monitoring
 Noise & sound monitoring.
Benefits of condition monitoring
 Increased system availability.
 Improved plant operation & safety.
 Improved maintenance
 Improved product quality.

Maintenance planning & scheduling

Once the list of the defect is known & the type of the maintenance is decide, the next step is
to plan & schedule the maintenance jobs in order to execute the jobs properly & to get the
desired results. planning & scheduling of maintenance jobs are the important components of
maintenance functions.
Job planning
Maintenance planning basically deals with answering two questions “What "jobs to be done
& “how” these activities are done.
The various steps in job planning includes-
i. Knowledge about equipment job, available technique & facilities.
ii. Development of the repair plan- preparation of a step by step procedure which would
accomplish the work with the most economical use of time, manpower & material.
iii. Preparation of list of materials required
iv. Preparation of list special tools & equipments.
v. Estimation of the time required to accomplish the job or work.
vi. Provision of necessary safety devices & safety instructions.

JOB MANUALS
Job manuals are also permanent records about methodology, spares, tools & facilities etc. for
all maintenance jobs, which may have to be done for the future.
The following steps are generally involved in preparing the job manuals:
i. List of all majors & medium maintenance jobs of the plant are prepared & they are
property coded for identification.
ii. For each coded job, a separate job manual is to be prepared which includes the
following:
 Sequence wise break of the job in to activities with instructions to carry out
those jobs.
 List of tools, tackles, spares & consumables needed to perform the activity
 List of jigs & fixtures & handling for each activity
 Safety instructions
 Time estimation for the job activities.
iii. Make available the manuals to all the users & update the manuals as when needed.

JOB SCHEDULING
Scheduling of maintenance job basically deals with answering the two questions “who” &
“when” of the job that is who to do the job & when the job is to be started.
Realistic schedules are the functions of realistic thinking, availability of the data & records.
The scheduler should obtain knowledge about the following facts before starting his job.
 i. Availability of component manpower-by trade,location,shifts etc.
ii. Availability of equipments ,spares & paper tools where the work is to be carried out.
iii. Starting data for the job & past schedules & charts.
Scheduling techniques like bar charts & network techniques are used.
Systematic maintenance:
The various elements of systematic maintenance are:
 Codification & Cataloguing.
 Equipment history cards & sheets.
 Instructions manuals & operating manuals.
 Standard operating practices & work instructions.
 Maintenance time standards (MTS).
 Maintenance work order & work permit
 Job cards & job cards procedures
 Job execution, monitoring, feedback & control.
 Maintenance records & documentation.

BASIC MAINTENANCE DECISIONS

1. Centralized versus decentralized maintenance.
2. Contract versus in-house maintenance.
3. Repair versus replacement.
4. Individuals versus group replacement.
5. Standby equipments,
6. Amount of maintenance capacity.
7. Preventive versus predictive maintenance.

MAINTENANCE PERFORMANCE EVALUATION

The following criteria can be used for measuring the effectiveness of maintenance function.
1. Total plant maintenance productivity (TPMP)
TPMP= Plant output in the given period
Total maintenance cost in the given period
 2. Down time index = Down time hours * 100
Production hours
3. Maintenance cost index = Maintenance cost * 100
Capital cost
4. Equipment utilization = Total man hour actually worked on the job
Hours the equipment was available to run
at capacity during evaluation period.
5. Man power efficiency = Total man hour actually worked on the job
Total man hour scheduled for these jobs

A formal definition of maintenance is “that function of manufacturing management that is

concerned with day to day problem of keeping the physical plant in good operating
condition”
Objectives:
• Minimize loss of productive time
• Minimize repair time & cost
• Keep productive assets in working condition
• Minimize accidents
• Minimize total maintenance cost
• Improve quality of products

Importance:
• Dependability of service
• Assured quality
• Prevent equipment failure
• Cost control
• Huge investment in equipment

Areas of Maintenance:
1. Civil maintenance- Building construction and maintenance, maintaining service facilities
2. Mechanical Maintenance- Maintaining machines and equipments, transport vehicles,
compressors and furnaces.
3. Electrical Maintenance- Maintaining electrical equipments such as generators, transformer,
motors, telephone systems, lighting, fans, etc.

ORGANISATION MAY USE ANY OR ALL THE FIVE TYPES OF MAINTENANCE

• Breakdown maintenance or corrective maintenance
• Preventive maintenance
• Predictive maintenance
• Routine maintenance
• Planned maintenance

BREAKDOWN MAINTENANCE
• Occurs when there is a work stoppage due to machine breakdown
• Maintenance becomes repair work
• Seeks to get the equipment back into operation as quickly as possible
• To control the investment in replacement spare machines.

Preventive management
It is undertaken before the need arises and aims to minimize the possibility of un -anticipated
production interruption or major breakdowns.

Predictive maintenance:
In this, sensitive intruments (eg.vibration analysers, amplitude meters, audio gauges, optical
tooling and resistance gauges) are used to predict trouble. Conditions can be measured on a
continuous basis and this enables the maintenance people to plan for an overhaul.

Routine maintenance:
this includes activities such as periodic inspection, cleaning, lubrication and repair of
production equipments after their service life.
Planned maintenance:
it involves the inspection of all plant and equipments, machinery, buildings according to a
predetermined schedule in order to service overhaul, lubricate or repair, before actual break
down or deterioration in service occurs.

CONTROL OF MAINTENANCE
Authorized by an official Maintenance schedule Issue materials against proper authorization
Maintenance budgets Equipment records.

13. Issues:
• how much maintenance is needed?
• What size maintenance crews must be used?
• Can maintenance be sub-contracted?
• Should maintenance staff be covered by wage incentive schemes?
• Can effective use be made of computers for analyzing and scheduling activities?

14. Preventive Maintenance: Preventive maintenance is undertaken before the need arises
and aims to minimize the possibility of un-anticipated production interruptions or major
breakdowns.
15. It consists of:
• Proper design and installation of equipment
• Periodic inspection of plant and other equipments
• Repetitive servicing and overhaul of equipment
• Adequate lubrication, cleaning and painting

16. Benefits:
• Greater Safety
• Decreased Production Down Time
• Fewer large Scale & Repetitive Repairs
• Less Cost for Simple Repairs
• Less Standby Equipment Required
• Better Spare parts Control
• Proper Identification of Items

17. Maintenance Scheduling: Scheduling refers to timing and sequences of operations. It is

an important segment of the production planning & control activity as well as the service
operations like plant maintenance
18. Importance of scheduling:

• Facilitates optimum use of highly paid maintenance staff

• Equipments can be utilized effectively
• Eliminates undue interruptions in the production flow

19. Eliminates chances of sudden breakdown: Facilitates proper sequence in maintenance

service

20. Reliability:
• Component Reliability
• Product Reliability

21. Component Reliability Definition: It is the probability that a part or a component will
not fail in a given time period or number of trails under ordinary conditions of use.

AUTOMATION
Automation is the Formation of technology and its application to control and monitor the
production and delivery of various goods and services. Performs tasks that were previously
performed by humans. Automation is being used in many areas, such as manufacturing,
transportation, public services, defense, facilities, operations and, lately, information
technology.

 Industrial automation refers to a set of mechanical, electronic, and computer

technologies that result in the operation of machines and systems in the manufacturing
process without significant human intervention. It enables industrial systems to achieve
significantly better performance in power, precision, and speed of operation than manual
systems
 Automation is a process of doing something through the use of machines rather than
humans. There are many places that automation can help businesses, such as in
manufacturing. However, automation can also save time and money when it comes to
marketing by automating individual tasks. There are two types of automation: batch and
concurrent.
 Batch processing is where the same set of instructions are given at the same time to the
same set of resources. Concurrent processing is where multiple sets or instructions are
given to the system at the same time. Automation is usually used in manufacturing
because one robot can do the work of a large group of employees. In today’s world,
automation has become more important in the workplace. There are many manual tasks
that can be automated and made better than ever by using automation.
The automation strip is the area of your application under test that will run automatically. The
following points help to define the scope:
 A critical characteristic of the business
 Scenarios that contain a large amount of data
 Functions common to all applications
 Technical feasibility
 Scope of reuse of commercial components
 Complexity tests of business cases
 Possibility of using the same test cases for cross-browser tests
Advantages For Industrial Automation
1. Increased labor productivity: The rate of production and labor productivity increase
when a manufacturing operation is automated. This translates to more output per hour
of labor.
2. Reduced labor cost: The trend in the world’s industrialized societies has been and
continues to be ever-increasing labor costs. As a result, increased investment in
automation to replace manual operations has become economically justifiable.
Machines are increasingly being used to replace human lahar to reduce unit costs.
3. Migrate the effects of labor shortages: Many advanced countries are experiencing a
labor shortage, which has prompted the development of automated operations as a
labor replacement.
4. Reduce or eliminate routine manual and clerical tasks: There is social value in
automating routine, boring, fatiguing, and possibly annoying operations. Automating
such tasks serves to improve the general level of working conditions.
5. Improve worker safety: Automating the operations make the work much safer.
However, the workers get active participation in a supervisory role.
6. Improve product quality: Automation achieves higher production rates than manual
operations and greater uniformity and conformity to quality specifications in the
manufacturing process. One of the main advantages of automation is a lower rate of
attraction defects.
7. Reduce manufacturing lead time: Automation shortens the time between customer
order and product delivery, giving the manufacturer a competitive advantage for
future orders. The manufacturer reduces work-in-process inventory by reducing
manufacturing lead time.
8. Accomplish processes that cannot be done manually: Certain tasks are impossible
to complete without the assistance of a machine. Precision, miniaturization, or
geometry complexity are all requirements for these processes that cannot be met
manually. Some examples are integrated circuit fabrication operations, rapid
prototyping based on computer graphics (CAD) models, and computer numerical
control machining of complex, mathematically defined surfaces. Computer-controlled
systems can only carry out these processes.
 9. Avoid the high cost of not automating: Automating a manufacturing plant provides
a significant competitive advantage. The benefit is difficult to demonstrate on a
company’s project approval form. Automation’s advantages often manifest in
unexpected and intangible ways, such as improved quality, increased sales, improved
labor relations, and a better company image. Companies that do not automate are
likely to fall behind their competitors in terms of customers, employees, and the
general public.

Disadvantages Of Industrial Automation

1. Higher start-up and operation costs: Automated equipment often includes high
capital expenditures. The design, fabrication, and installation can cost millions of
dollars.
2. Higher cost of maintenance: When compared to a manually operated machine, a
higher level of maintenance is required in automation in terms of buying
electromechanical devices like electromechanical valves, sensory devices, and smart
devices. Spare parts for an automation system may be more expensive than manual
operation.
3. Obsolescence/depreciation cost: The gradual decrease in the value of physical assets
is known as obsolescence and depreciation. This is common with all physical assets,
such as equipment and machinery. It is unavoidable as a result of technological
advancement. Obsolescence or depreciation can be two types, namely:
1. Physical depreciation occurs due to physical damage of equipment or robots
in the form of damage, wear, and corrosion.
2. Depreciation of the functions means the changes in demand due to the
changes in the need for a piece of equipment, service, or inability to meet
demand.
 Unemployment: A disadvantage often associated with automation is worker
displacement. There is a mass lay-off because manual laborers are being replaced by
robots or other automated machinery. Many people are losing their jobs, especially
those who work in the manufacturing industry, such as a car factory.
 Large initial investment – automated machines can be one of the most costly
operating costs for a company. With automated machines running anywhere between
thousands and millions of dollars depending on the type and degree of automation.
 Increase in unemployment – by increasing the amount of automation, there are less
employees required causing high unemployment rates.
 Unpredictable costs – there can be several unpredictable costs that may exceed the
actual cost saved by the automation itself. Some of these costs could include research
and development costs of automating a process, preventative maintenance costs, and
the cost of training employees to operate automated machines.
Chapter 6
Waste Management
Waste management is the collection, processing or transport, disposal, managing and
monitoring of waste materials.
The term usually relates to materials produced by human activity, and the process undertaken
to reduce their effect is generally on health, the environment or aesthetics

The principal considerations in waste management:

i. evaluation on the type and nature of wastes;
ii. estimation of total volumes; and
iii. assessment of handling, storage, transportation and disposal methods to be adopted
and the potential environmental impacts.

Need of Waste Management:

 The most protection population important reason for waste collection of the environment
and the health is the of the population.
 Rubbish and waste can cause air and water pollution.
 Rotting garbage is also known to produce harmful gases that mix with the air and can
cause breathing problems in people.

Various Methods of Waste Disposal:

 Landfills
 Incineration/Combustion
 Recovery and Recycling
 Waste to Energy (Recover Energy)

Causes Of Wastage In Production:

 Poor Planning and Design
 Defective Purchasing Practices
  Transportation Wastage
 Storage Wastage
 Conversion Wastage
 Usage Wastage

Benefits of Proper Waste Management:

 Improved Health and Safety,
 Reduced Storage, Transport and Disposal
costs,
 Potential Generation of Revenue,
 Increased Efficiency,
 Enhancement of Company Reputation,

Challenges Involved in Waste Management:

 Improving safety performance,
 Overcoming poor-quality recyclables,
 Proper employee placement,
 Lack of industry expertise,
 Issues in Waste Transportation

CONCLUSION:
 Waste management is an important area of production management. Some wastes are
inevitable in any conversion process.
 Here, waste refers to all types of spoilage that do not add to value.
 Spoilage includes scrap materials, rejected items, by-products during production
process, obsolete, outdated or useless parts, damaged parts, etc.

Chapter 7
AUTOMATION
 Automation is the practice of utilizing technology to mechanize and streamline tasks and
processes that are conventionally performed by human beings.
 The automation tasks range from simple, repetitive tasks to complex operations, which
even require decision-making and problem-solving capabilities.

Pros of Automation
 Increased productivity: Through automation, we can significantly enhance
productivity by eliminating the need for manual labor and speeding up processes.
 Improved accuracy and quality: Automated systems are programmed to perform tasks
with precision and consistency.
 Enhanced efficiency and cost savings: Automation can optimize workflows, eliminate
bottlenecks, and reduce wastage of time and resources.
 Increased safety: Automation can be particularly beneficial in hazardous work
environments.

Cons of Automation:
 Job displacement and unemployment: Implementing automation to perform tasks and
processes results in the potential loss of jobs for human beings
 Initial implementation costs: While automation can lead to long-term cost savings, the
initial investment required to implement automated systems can be significant.
 Technical challenges and limitations: Automation relies heavily on technology and
complex systems.
 Reduced human interaction and customer experience: Automation can result in
reduced human interaction, which may negatively impact customer experience in
certain industries.
EXAMPLES OF AUTOMATION
1. Manufacturing:
Robotic arms and automated assembly lines are
used to streamline production processes,
increasing efficiency and reducing errors.
2. Logistics:
Automated warehouses and robotic systems are
employed for tasks such as sorting, picking, and
packing, improving speed and accuracy in
distribution centers.
3. Healthcare:
Automation is used in medical laboratories for
tasks like sample testing, medication dispensing,
and surgical procedures, ensuring precision and
reducing human error.
4. Customer service:
Chatbots and automated phone systems are utilized for handling customer inquiries and
providing basic assistance, improving response time and availability.
5. Banking:
Automated teller machines (atms) enable self-service transactions, reducing the need for
human tellers and providing 24/7 access to banking services.