INDUSTRIAL MANAGEMENT
BY: MAYANK PANDEY
ASSISTANT PROFESSOR
NIET BUSINESS SHOOL
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UNIT-2
• Management
Function:
Principles
of
Management.
• Management Tools: time and motion study,
work simplification- process charts and flow
diagrams, Production Planning, Specification
of Production requirements.
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Fayol’s General Principles of
Management
1.
2.
3.
4.
5.
6.
Division of Work
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual
interest to general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of personnel tenure
13. Initiative
14.
Esprit de corps
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Production Planning and Control
• Production planning and control can facilitate
the small entrepreneur in the following ways.
Optimum Utilization of Capacity
Inventory control
Economy in production time
Ensure quality
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Steps of Production Planning and Control
Production Planning and Control
Production Planning
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Production Control
Planning
Dispatching
Routing
Following up
Scheduling
Inspection
Loading
Corrective
Measures
• Aggregate Planning: The objective of aggregate
planning is to find out the most economical
method of using production resources to meet
fluctuating demands of production output
• Routing: Routing procedure involves following
different activities.
1. The operations to be carried out on a job.
2. The machine or work centre to be used.
3. The details of operations to be performed.
4. The sequence of operations from raw
material to finished product.
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• Scheduling: Working out of time that should be
required to perform each operation and also the time
necessary to perform the entire series as routed,
making allowances for all factors concerned.
– Master Schedule: Scheduling usually starts with
preparation of master schedule which is weekly or
monthly break-down of the production requirement for
each product for a definite time period.
– Production schedule: It takes into account following
factors.
• 1. Physical plant facilities
• 2. Personnel who possess the desired skills and experience
• 3. Necessary materials and purchased parts.
• Loading: Loading determines who will do the work as
routing determines where and scheduling determines
when it shall be done.
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Production Control
Dispatching: Dispatching involves issue of
production orders for starting the operations.
Necessary authority and conformation is given
for:
1. Movement of materials to different workstations.
2. Movement of tools and fixtures necessary for each
operation.
3. Beginning of work on each operation.
4.Recording of time and cost involved in each operation.
5. Movement of work from one operation to another in
accordance with the route sheet.
6. Inspecting or supervision of work.
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• Follow up: All problems or deviations are
investigated and remedial measures are
undertaken to ensure the completion of work by
the planned date.
• Inspection: This is mainly to ensure the quality of
goods. It can be required as effective agency of
production control.
• Corrective measures: Corrective action may
involve any of those activities of adjusting the
route, rescheduling of work changing the
workloads, repairs and maintenance of
machinery or equipment.
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SPECIFICATION OF PRODUCTION
REQUIREMENT
1. Part Drawing
(Production
Drawing)
2. Machining Detailed
and Sequences
3. Materials &
components
4. Quality level
required
5. Production Quantity
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WORK STUDY
• Work Study implies the study of human work.
Work study investigates the work done in
organization and it aims at finding the best
and most efficient way of using available
resources men, material, machine and money.
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Work Study & Productivity
WORK STUDY
METHOD STUDY
WORK MEASUREMENT
Choose & evaluate
one best standard
Method
Choose and evaluate
one best standard
time
Standard Time & Standard Method
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Rise in Productivity
Objectives of Work Study
 Improved working
process and
standardized.
 Less fatigue to the
operator.
 Efficient utilization of
men material.
 To evaluate human work.
 To reduce ineffective
time due to management
& workers.
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Benefits of Work Study
 Improved Productivity.
 Higher efficiency in
productivity.
 Manufacturing cost is
reduced.
 Quicker and accurate
delivery dates.
 Good employeeemployer relationship.
 Job satisfaction to
workers.
 Higher wages and
incentives to workers.
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Method Study or (Motion Study)
• Method study is systematic recording and
critical examination of existing and proposed
ways of doing work, as a means of developing
and applying easier and more effective
methods and reducing costs.
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Objectives of Method Study
The improvement of process
and procedures.
The improvement of factory,
shop and workplace layout
and of the design of plant and
equipment.
Economy in human efforts
and reduction of unnecessary
fatigue.
Improvement in use of
materials,
machines
&
manpower
To find out the best way of
doing a job.
To standardize the best
method.
Effective material handling
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Various Considerations
Economic Consideration
Technical Consideration
1. Operation involving
great deal of manpower
condition
1.Bottlenecks holding
production
2. Highly fatigued work
2. Movement of material 2. Reduce the efforts and
over long distances
fatigue of workers
between shops
3. Operations involving
repetitive work
3. Inconsistency in
quality
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Human Reactions
1. More acceptable if it
can Improve working
Method Study
Select the subject to be studied
Record facts relating to existing method
Diagram
Charts
Model
Examine all relevant facts critically
Purpose
Place
Sequence
Develop alternative to existing methods
Install the new method
Plan-arrange-implement
Maintain new method
Verify its implications at regular intervals
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Higher Productivity
Person
Means
Work Measurement
• Work measurement is concerned with
elimination of ineffective time and
establishment of time standards for a job.
• “Work measurement is a technique to
establish the time for a qualified worker to
carryout a specified job at a definite level of
performance.”
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Uses of Work Measurement
1. To reveal the existence of ineffective time.
2. To compare the efficiency of alternative
method.
3. To determine with the help of man machine
chart the number of machine an operator
can run.
4. To set the time standard for carrying out the
work.
5. As a basis for realistic and fair incentive
scheme.
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Time Study
• Time study is a work measurement technique
for recording the times performing a certain
specific job or its elements carried out under
specified conditions, and for analyzing the
data so as to obtain the time necessary for an
operator to carry it out at a defined rate of
performance.
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Time Study Equipments
1. Stop Watch
A fly back decimal- minute
stopwatch is most commonly used stop watch.
2. The Study Board Time study board is flat board ,
of plywood or plastic sheet, having fittings to
hold stop watch and time study forms.
3. Time Study Forms Time study forms are printed
forms of standard size constant information like
product name, operation number, description of
operation, time study observer’s name etc are
preprinted on the top of the sheet14-03-2014 00:44:00
Time Study Form
Time Study Form
Product-------Operation No----------Description of Operation -------------------No. of Cycles 5(say)
Standard time found------
Element Description
Observed time
1
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Time Study ------------Observer
Date-------------------
2
3
4
Average
observed Time
5
Rating
factor
Normal
Time
All
Std.
Time
Procedure for Collecting Time Study Data
•
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
The following are the procedural steps in stop Watch time study:Identify the operation to be studied
Obtain the improved procedure from method study departments.
Collect and check necessary equipment
Select the worker to be observed for Time Study
Explain the worker the objective of Time Study
Explain the worker the improved procedure.
Break the operation into small elements.
Determine the number of observations to be timed for each element.
Conduct the observation and record them on time study form
Rate also the performance of the worker during step.
Calculate normal time from observed time by using performance rating factor
Observed time X Rating factor
Normal time=________________________________
100
13. Add process allowance, rest and personal allowance and special allowances to normal time
in order to obtain standard time.
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Conversion of observed Time to Standard Time
Observed Time
Apply Performance Rating Factor
Normal Time
Add allowances like personal
allowance, process allowance
Standard Time
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Advantages of Time Study
1. Standard labour cost per unit of product can
be calculated.
2. Comparisons of actual and standard
production.
3. Enable further improvement in work
methods, training necessity and better
workplace layout.
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Limitations of Time Study
1. Not suitable for non- repetitive jobs.
2. Not suitable for highly automated work place
3.May affect operator’s morale if output
standard is not attained.
4. While rating a worker error may come due to
subjectivity involved in it.
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Feel Free to ask your queries on mayankkumarpandey@gmail.com
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