Code: 56016

2012-2013
MALLA REDDY ENGINEERING COLLEGE
(Autonomous)
III Year B.Tech. ME II-Sem

L T/P/D C
4

-/-/-

Industrial Management
UNIT I
INTRODUCTION TO MANAGEMENT: Entrepreneurship and organization-nature and importance of management, Functions of
management, Taylors scientific Management Theory, Fayols Principles of management. Maslows Theory of Human Needs, Douglas
McGregors Theory X and Theory Y,herzbergs Two-Factor Theory of Motivation, system Approach to Management, Leadership Styles,
Social responsibilities of Management.

UNIT II
Designing Organizational Structures: Departmentation and decentralization, Types of Organizational Structures-line Organization ,
Line and Staff Organization, functional Organization, committee Organization, matrix Organization, Virtual Organization, Cellular
Organization, Team structure, boundary less organization, inverted pyramid structure lean and flat organization structure and their merits,
demerits and suitability.

UNIT III
Operations Management: Principles and Types of Plant Layout-Methods of production (Job, batch and Mass production), Work Study
Basic procedure involved in Method Study and Work Measurement-Statistical
Quality Control: X chart, R chart, C chart, P chart, (simple problems), Acceptance Sampling, Demings contribution to quality,

UNIT IV
A)
B)

Material Management: Objectives, Need for Inventory Control, EOQ, ABC Analysis, Purchase procedure, Store Management
and Stores Records Supply Chain Management
Marketing: Functions of Marketing, Marketing Mix, Marketing Strategies based on Product life Cycle., Channels of
Distribution
UNIT V
Human Resource Management (HRM): Evolution of HRM, Concepts of HRM, Basic functions of HR Manager: Manpower Planning,
Recruitment, Selection, Training and Development, Placement, Wage and salary Administration, Promotion, Transfer, Separation,
Performance Appraisal, Grievance Handling and Welfare Administration, Job Evaluation and Merit Rating.

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1

UNIT VI
Project Management: (PERT/CPM): Network Analysis, Evaluation and Review Technique (PERT), Critical Path Method (CPM),
Identifying critical path, Probability of completing the project within given time, Project Cost Analysis, Project Crashing. (Simple
problems)

UNIT VII
Strategic Management: Mission, Goals, Objectives, Policy, Strategy, Programmes, Elements of corporate planning process,
Environmental Scanning, SWOT Analysis, Steps in Strategy Formulation and Implementation, generic Strategy Alternatives.
UNIT VIII
Contemporary Management Practices: Basic Concepts of Just -In-Time (JIT) systems, Total Quality Management (TQM), Six sigma
and capability maturity modal (CMM) levels, Value Chain Analysis, Entrepreneurship Resource Planning (ERP), Performance
Management, business process Outsourcing (BPO), Business process re-engineering 5s Model, Demings PDCA, Kaizen, Poka-Yoke,
Muda, Bench marking, Balanced Score Card.

TEXT BOOKS
1.

Aryasri: Management Science, TMH, New Delhi, 2009.

REFERENCE BOOKS

1.
2.
3.
6.
7.
8.
9.

Stoner, Management, Person, 2009.

Kotler philipand Keller Kevin Lane: Marketing Management PHI, 2009.
Koontz, Weihrich, and Aryasri: Principles of Management, TMH, 2009.
4. Thomas N.Duening & John M. Ivancevich Management, Principles and Guidelines, Cengeage, 2009.
5. Kaniska Bedi, Production and Operations management, Oxford University Press, 2009.
Memoria & S.V. Ganker, Personnel Management, Himalaya, 2009.
Schermerhon: Management, Wiley, 2009.
Parnell: Stragic Management, Biztantra, 2009.
L.S.Srinath: PERT/CPM, Affiliated East-West Press, 2009.
10. William J.Stevenson & Ceyehun Ozgur: Introduction to Management Science, TMH, 2007.

Page
2

OBJECTIVE & OUTCOMES:

OBJECTIVE: Be able to describe the most well-known theories and perspectives on management. Basic
understanding the relationship between organizational structure, technology and the conditions of the
organizational environment, contemporary organizational forms, Industrial Management revolves around
effective leadership of innovation, operations and marketing in existing and emerging industries. It also focuses
on the dominating theories on management and the organizing of industrial activities.
OUTCOMES : Student should be able to describe the role of the company in the society, the different business
cultures, and how companies are organized and managed from a business concept to ongoing operations with the
support of strategic planning, formulation of objectives and management control, central theories within the field
of industrial management, such as costing, investment analysis, the transactions of a company; how they are
accounted for, how information can be analyzed, and used for annual report and a fiscal declaration for a
company.

MALLA REDDY ENGINEERING COLLEGE

(AUTONOMOUS)
DEPARTMENT OF MECHANICAL ENGINEERING

LECTURE PLAN AND SCHEDULE

Name of the faculty member: M Prem Swarup

Branch: Mech. Engg.

Subject title: Industrial Management

Subject code: 56016

Number of periods per week: 5

Number of credits: 4

Academic year & semester: 2012 - 13 (III Year II semester)

Page
3

Page
4

Sl.No of
Lecture

Chapter/Unit as
per course
structure

Topic to be covered

Hours

Introduction of the
subject

Introduction to Management
Dept:
ME.

UNIT I

Entrepreneurship and organization-nature and

importance of management

3
4

Functions of management
Day/Period
I Year
II,III,IV
Years
M.Tech
MON
TUE
WED
THU
FRI
SAT

1
9.30-10.20
9.30-10.20

2
10.20-11.10
10.20-11.10

9.30-10.20

10.20-11.10
OTA

IM(B)
OTA

OTA

3 scientific
4 Management Theory,
4 or5
Taylors
Fayols 5 or 6
11.10-12.00 12.00-12.50
12.50-1.30
1.30-2.20
2.20-3.10
Principles of management
11.10-12.00

12.00-12.50

12.50-1.30

1.30-2.20

2.20-3.10

11.10-12.00

12.00-12.50

12.50-1.30

1.30-2.20

2.20-3.10

. Maslows Theory
IM(A)of HumanL Needs, Douglas
PT
Lab (S)- (B) Theory X and Theory
U
McGregors
Y OTA
N
C
H

IM(B)
EWS(M)- CE(A)

herzbergs Two-Factor Theory of

Approach to Management

IM(A)
PT Lab (S)- (B)

IM(A)
IM(A)
Motivation,

system

UNIT II
8

Departmentation and decentralization, Types of

Organizational Structures-line Organization

Line and Staff Organization, functional Organization

10

committee Organization, matrix Organization

11

Virtual Organization, Cellular Organization,

12

Team structure, boundary less organization

13

inverted pyramid structure lean and flat organization

structure and Page
their merits, demerits and suitability.
5

UNIT III
14

3.10-4.00
IM(B)
IM(B)
IM(A)
IM(B)

Leadership Styles, Social responsibilities of

Management.

Name
of the
Faculty: M.
Prem
Swaroop
(14+9=23)
6 or 7
3.10-4.00
3.10-4.00

Principles and Types of Plant Layout-Methods of

production (Job, batch and Mass production)

HOD, ME

INTRODUCTION TO THE SUBJECT

Industrial Management is the important field in the Industrial Engineering and is
an evergreen field expanding boundlessly . It has been the area of interest for many.,
more to engineering persons, with the growing number of multinationals operating in
various developing countries like India and their companies turning multinationals,
opportunities for the present generation are vast.
An Engineer with a management background is an demand al over. He is the
professional most sought after as he is the embodiment of right mix of the skills of
rationality and decision-making.
Everyone is a manager in one or the other way. We manage day to day works to
achieve our personal goals. The same management skills are applied in the
organizational context to achieve organizational goals. In this process, it is necessary to
co-ordinate men, material, money, and machines against in background of several
controllable factors such as technology, competition and so on. This makes management
a complex job and the primary key for such a complex job lies in careful understanding of
the basic concepts of management.

SUBJECTIVE AND TUTORIAL QUESTIONS

UNIT-I
DESCRIPTIVE TYPE QUESTIONS:
1. Explain the importance of management. Are management and administration are same?
Similar?
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6

2. Explain the nature and feature of management.

3. Why management is considered as both art and science?
4. What does a modern manager need to know, in the words of Tom Peters, for better
management?
5. Mention the different needs as identified by Abraham Maslow. Give examples.
6. What were the conclusions from Hawthorne experiments?
7. What are the assumptions of Douglas McGregor about the behavior of managers?
OBJECTIVE TYPE QUESTIONS:
1. The organization can consider the proposals for growth and diversification only
when their internal organization is strong and result oriented.
2. It needs organization to provide maximum freedom to enable them to be creative.
3. Management is necessary to ensure continuity in organizations.
4. One reason why management is important could be that enables organization to achieve
their goals.
5. The three strategies suggested by Tom Peters to deal with chaos are participation,
leadership, and control.
6. The guide like tool to explain how many positions are in the organization and at what
level is called organization structure.
7. Planning ends with decision-making.
8. The process of determining the course of action to achieve the goals is called planning.
9. The time horizon for the top management level is 5-10 years.
10. The father of scientific management is F.W. Tavlor.
11. vl 1. Theory X and Theory Y was contributed by Douglas McGregor.
12. Elton mayo is well known for his Hawthorne experiments.
13. Establishing vision triggers the kind of culture that the organization will develop towards
excellence.
14. The concept of Therblig is given by Gilbreth.
15. The scientific approach suggested by Taylor consists of four stages: observation,
management, experimentation, and inference.
16. Scientific management was the foundation for work study and other productivity related
techniques.
17. A flat organization is always associated with unitv of command span.

UNIT-II
DESCRIPTIVE TYPE QUESTIONS:
1.

Evaluate the, a. Line and staff and staff organization

b.
Matrix organization
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7

2.
3.
4.
5.
6.

c.
Flat organization
d.
Committee organization
What do understand by organizational hierarchy
Differentiate between flat and tall organizations
Explain the significance of informal organization
What you understand by Organizational manual.
Differentiate between organization and organizing.

OBJECTIVE TYPE QUESTIONS:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

A flat organization is always associated with unity of command span.

An organization governed by likes and dislikes of its members is called informal
organization.
The process of grouping the similar activities and assigning responsibility is called
organization.
The principle of 'one subordinate -one supervisor' is called unity of command.
One example for company-wide objective is to adapt to changing circumstances.
An object is defined as desired goal-a target or aim.
A flat organization is always associated with unity of command span.
Break even means total revenues=total costs.
It needs organization to provide maximum freedom to enable them to be creative.
UNIT-III
DESCRIPTIVE TYPE QUESTIONS:

1.
2.
3.
4.
5.

What is meant by Plant Layout ? Explain its systems and evaluate the same.
Explain in brief the factors determining the location of an industrial plant.
How the productivity effects with plant layout ? Discuss.
Write about the Factors affecting the plant location
compare the sites of rural and urban for plant layouts

OBJECTIVE TYPE QUESTIONS:

1.
2.
3.
4.
5.
6.
7.
8.
9.

Plant layout is a determinant of productivity and profitability.

The process of determining a spatial location for a collection of physical production
facilities is called plant layout.
In process layout the degree of flexibility is relatively very high.
The economics available to all the firms in an industrial belt or area are called
agglomeration economies.
Work sampling is used where the management wants to know the percentage of idle time
for workers.
Basic time is also called normal time.
Work sampling is also called activity sampling.
The chart which identifies the main events sequence-wise considering only operations and
inspections is called operation process.
The flow chart symbol to record transportation is ->
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8

10.

The basic unit of work activity in micro motion studies is called therblig.

11.

SIMO charts are used in micro motion studies \\hich are detailed studies of
repetitive work.
The ratio of the total number of defectives found and the total number of pieces
inspected is called p chart.
The difference between the minimum and maximum values of measurement of
units in a given sample is called range.
The risk involved in getting good units rejected is called producer's risk.
The control chart for sample means is called x-chart.

12.
13.
14.
15.
16.

UNIT-IV
DESCRIPTIVE TYPE QUESTIONS:
1.
2.
3.
4.
5.

6.

Write about t he benefits of work study

Define the method study. How do you carry it out?
What do you understand by work measurement ? Explain how do you determine standard
time?
Discuss any two techniques of recording the current method of doing the job.
A work sampling study was conducted for 200 hours in the machine shop to estimate
standard
time. The total number of observations record were 5000, out of which 4500 revealed
working
activity. The total number of articles produced during the given period was 500.
determine standard time considering
a_ an average performance rating of 1.6
b_ fatigue allowances of 20 per cent of nominal time.
UNIT-V
DESCRIPTIVE TYPE QUESTIONS:

1.
2.
3.
4.

What are the aims of the material management organization set-up. Explain its inter
relationship.
What is materials planning? Explain different techniques of material planning.
Explain the factors governing the material planning.
Explain the following :

5.
6.
7.
8.
9.
10.
11.

integrated material management

forecasting material requirement
material control
What is budgeting? Differentiate between budget and budgetary control.
Describe purchasing procedure to be adopted for a medium size industry.
Describe the system of purchase of equipment and stores in an industry
Explain different steps commonly used in purchasing

OBJECTIVE TYPE QUESTIONS:

Page
9

1.
2.
3.
4.
5.
6.
7.

Materials may consist of raw materials, work in progress and finished goods.
The process of recording stores balances after every receipt and issue is called
perpetual inventory control.
The statement just containing the quantity particulars of materials is called bin
card.
Economic order quantity is based on the aggregate of carrying cost and ordering
cost.
The quantity of order at which the total cost is minimum is called EOQ.
The time taken to replenish the stocks is called total cost.
The technique of reducing the costs analyzing the functional worth of a product
is called inventory control

UNIT-VI
DESCRIPTIVE TYPE QUESTIONS:
1.
Write the short notes on the following,
i)
Gantt chart
ii)
Milestone chart
iii)
Average time estimate
iv)
Critical path
v)
PERT verses CPM
vi)
Net work analysis
2.
Draw the network for the following project and number the events:
Event No.
Preceded by Event No.
Preceded by
A
Start Event G
E
B
A
H
G, E
C
B
J
D,F,H
D
B
K
C,J
E
D
L
K
F
B
M
J
3.
Draw a PERT network for the following project:
A is the first event and J the end event J is a successor event to F C and D are successor events to B D
is a predecessor event events to G E and F occur after event C E precedes F
C restrains the occurrence of G and G precedes H
H follows F
H precedes J.
v

4.
K>

Which of the following two time estimates are reliable?

*m
t

Estimate by P 18 22
Estimate by
Q

22
30

27 36

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10

6.

7.
8.
9.

In a construction company, the construction engineer spends on inspection different periods

of time at different sites. More often he inspects from ten minutes to one hour. Twenty
minute-inspection are more frequent than inspections of any other duration. If each
inspection were an activity in a PERT project.
what would be the expected duration of each inspection ?
what estimate would you give for its variance?
In scheduling the project, how much time would you allocate for the inspection?

OBJECTIVE TYPE QUESTIONS:

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.

The task or activity which does not consume resources, yet is shown to indicate a logical
sequence in a network, is called dummy activity.
PERT is event oriented.
An activity with a specific goal occupying a specific period of time is called
project.
In milestone chart, every bar shown in gantt chart is divided into certain
number of milestones.
A programme is called a project.
All such events carrying a zero slack or minimum slack fall under critical path.
In beta distribution, standard deviation is equal to optimistic time estimate.
The allowable delay for an event without causing delay of the project completion is
called slack.
The event which is not tied into the network is called dangler.
The time estimate which assumes no hindrances in its completion is called
1 1 . Cost slopes indicate the priorities for crashing.
The crashing of an activity may lead to a change in the critical path.
The additional cost per additional unit of time assuming a linear rate of
approximation is called cost slope.
Rent or advertisement is an example for indirect costs.
Direct costs are those, which vary with the number of activities in the project.
Total cost is the aggregate of direct, indirect costs.
Normal cost is the cost incurred if the project goes as per schedule.
Crash time is associated with the minimum possible time for an activity.
Indirect costs are always fixed per given unit of time in the sort run.
Direct cost change directly in proportion to the number of activities involved in the
project.

UNIT-VI I
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11

1.
2.
3.
4.
5.

Explain the concept of statistical quality control. Explain how you can construct control
charts
for the variables.
What do you understand by acceptance sampling? Explain the concepts of single and double
sampling plans.
What is Process control?
Write about R-charts.
Write about the following,
a). Acceptance sampling
b). Process capability
c). Sampling risks
d). Variables and attributes
UNIT-VIII
DESCRIPTIVE TYPE QUESTIONS:

1.
1.
2.
3.
4.
5.
6.
7.

Write short notes on

Name any four HRM activities in the Indian context.
What led to the development of HRM or HRD
Explain, in brief how globalization enhanced the need for the HRM function.
What is personnel management?
What you understand by grievance handling?
What are the traits observed in the process of merit rating?
Explain the need of for training in organization.

8.
9.
10.
11.

Explain any four advantages of job evaluation.

What is the link between job evaluation and wage and salary administration?
Differentiate personnel and industrial relations from HRM.
Define personnel management. Analyze how it continues to be an integral part of the
organization.

OBJECTIVE TYPE QUESTIONS:

1.
2.
3.
4.
5.
6.
7.
8.
9.

Personal manager is a line manager in the issues related to staff selection.

The guide to management action d HRM is business needs.
An organization is said to have an enabling culture when its employees innovate and
make thing happen.
The top management relies on personnel manager for developing vision and culture for
the organization.
Facilitation constitute prized management skills in HRM.
The key relation of labour management in personnel, according to storey, is pluralist in
personal to customer in HRM.
Manpower planning ends with feedback and control.
The decision-makers, to search for the optimum strategy use manpower plans.
Manpower plans have their deep roots in the corporate objectives.

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12

10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
17.
22.
23.

1.
2.
3.
4.
5.

One of the goals of manpower plans is to make best use of its manpower
*
resources.
The succession strategy identifies the career plans of the key positions in the
organization.
Staff development strategy addresses the training, development and progress
needs of the entire workforce in the organization.
Redundancy means separation or dismissal of the employee from the job.
The process of evaluating the relative merit of the persons on a given job is
Called management by objectives.
The type of person required to be selected for a given job is outlined by job
specification.
Job evaluation is the outcome of the sustained efforts of far-sighted,
progressive, and professional chief executives.
The results of proactive organization culture could be used as a basis for salary
fixation or promotion.
The technique of assessing systematically the relative worth of each ob is called
degrees.
The process of evaluating the relative merit of the persons on a given job is
called management by objectives.
Point rating method of job evaluation breaks the job down into factors, sub
factors, merit rating and points.
ASSIGNMENT QUESTIONS
III Year II semester
UNIT-I
Explain the importance of management. Are management and administration are same?
Similar?
Explain the nature and feature of management.
Why management is considered as both art and science?
What does a modern manager need to know, in the words of Tom Peters, for better
management?
Mention the different needs as identified by Abraham Maslow. Give examples.

UNIT-II
1.
Evaluate the, a. Line and staff and staff organization
b.
Matrix organization
c.
Flat organization
d.
Committee organization
2.
What do understand by organizational hierarchy
2.
Differentiate between flat and tall organizations '
3.
Explain the significance of informal organization
4.
What you understand by Organizational manual.
UNIT-II
Page
13

1.
2.
3.

What is meant by Plant Layout ? Explain its systems and evaluate the same
Explain in brief the factors determining the location of an industrial plant.
How the productivity effects with plant layout ? Discuss.

4.
5.

Write about the Factors affecting the plant location

compare the sites of rural and urban for plant layouts

1.
2.
3.
4.
5.

6.

1.
2.
3.
4.
5.
6.
6.

UNIT-IV
Write about t he benefits of work study
Define the method study. How do you carry it out?
What do you understand by work measurement ? Explain how do you determine standard
time?
Discuss any two techniques of recording the current method of doing the job.
A work sampling study was conducted for 200 hours in the machine shop to estimate
standard
time. The total number of observations record were 5000, out of which 4500 revealed
working
activity. The total number of articles produced during the given period was 500.
determine standard time considering
a_ an average performance rating of 1.6
b_ fatigue allowances of 20 per cent of nominal time.
UNIT-V
What are the aims of the material management organization set-up. Explain its interrelationship.
What is materials planning? Explain different techniques of material planning.
Explain the factors governing the material planning.
Explain the following :
integrated material management
forecasting material requirement
material control
What is budgeting? Differentiate between budget and budgetary control.
UNIT-VI

1.
i)
ii)
iii)
iv)
v)
vi)

Write the short notes on the following,

Gantt chart
Milestone chart
Average time estimate
Critical path
PERT verses CPM
Net work analysis

2.

Draw the network for the following project and number the events:
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14

Event No.
Preceded by Event No.
A
Start Event
G
E
B
A
H
G, E
C
B
J
D,F,H
D
B
K
C,J
E
D
L
K
F
B
M
Jv

Preceded by

3.
Draw a PERT network for the following project:
A is the first event and J the end event
J is a successor event to F
C and D are successor events to B
D is a predecessor event events to G
E and F occur after event C
E precedes F
C restrains the occurrence of G and G precedes H
H follows F
H precedes J.
5.

6.
7.
8.
1.
2.
3.
4.
5.
6.

In a construction company, the construction engineer spends on inspection different periods

of time at different sites. More often he inspects from ten minutes to one hour. Twenty
minute-inspection are more frequent than inspections of any other duration. If each
inspection were an activity in a PERT project.
what would be the expected duration of each inspection ?
what estimate would you give for its variance?
In scheduling the project, how much time would you allocate for the inspection?
UNIT-VII
Explain the concept of statistical quality control. Explain how you can construct control
charts
for the variables.
What do you understand by acceptance sampling? Explain the concepts of single and double
sampling plans.
What is Process control?
Write about R-charts.
Write about the following,
a). Acceptance sampling b). Process capability c). Sampling risks d). Variables and
attributes
UNIT-VIII

1.
2.
3.
4.
5.

Write short notes on

Name any four HRM activities in the Indian context.
What led to the development of HRM or HRD
Explain, in brief how globalization enhanced the need for the HRM function.
What is personnel management?
Page
15

6.
7.
8.

What you understand by grievance handling?

What are the traits observed in the process of merit rating?
Explain the need of for training in organization.

9.
10.
11.
12.

Explain any four advantages of job evaluation.

What is the link between job evaluation and wage and salary administration?
Differentiate personnel and industrial relations from HRM.
Define personnel management. Analyze how it continues to be an integral part of the
organization.

Page
16

Industrial Management- M.Prem Swarup

CONTENTS BEYOND THE SYLLABUS

Managerial Objectives
Social responsibility
Effect of plant lay out on production
Method study
Recording techniques
EOQ - Economic order quantity
Integrated material management
SWOT Analysis
Basic concepts of Corporate Planning
Productivity Vs Production - Factors affecting productivity.

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17