Notes Industrial Managment

Industrial Management (MGT-427)
For B.Tech (Civil, Electrical)

INDUSTRIAL ENGINEERING - HISTORICAL DEVELOPMENT
Industry is a synonymous term often used for plant, firm, company or organization with more or
less the same sense. Industry as understood by many people is a place where certain inputs are
converted into desired outputs through a well-defined process.
Engineering is the word associated with the technological sequence and methods of execution in
the process of transformation or conversion or inputs into outputs.
INDUSTRIAL ENGINEERING
Industrial engineering is the science and art of exploring the best methods and optimal sequences in
operations of the conversion process of the inputs into the desired outputs. It may also be defined
as, Industrial engineering is an art as well as science for creating the most effective system
composed of people, matters, energy, and information by which a specific goal in industrial, social,
and economic activities will be achieved with predetermined probabilities and accuracy
In short, industrial engineering is concerned with methods management in bringing effectiveness
and efficiency to a system or improving the productivity of a system. This is possible when and
only when industrial engineer has broad knowledge of all the fields or areas of various departments
of the industry. Cost effectiveness, time study and method study are the main tools of an industrial
engineer.
HISTORY AND DEVELOPMENT
It is very difficult to say when industrial engineering began because the basic 5W, 1H (what, who,
why, where, when, and how) of production analysis are the core concepts of industrial engineering
which are prevailing from centuries. Therefore, it is not wrong to say that industrial engineering
started with Adam (A.S) and first Industrial Engineer must be Adam (A.S) only.
However, for the ease of discussion, the development of industrial engineering and productivity
management is classified into the following five stages:
Handicraft era (14th to 18th century)
Although Adam is believed to be the first man in industrial engineering field, it was Adam Smith
who had first seeded in the development of this field. The Wealth of Nations by Adam Smith, in
1776, was one of the first works in promoting specialization of labour as an effort toward the
improvement of productivity. The advantages of the division of labour, skill development, time
saving, and the use of specialized machines were the major points of discussion in the publication.
The concept of planning and designing a process for efficient and effective use of the workforce
took birth during this era.
1.
During the handicraft era, the business used to be under the handicraft system. The tradesmen were
divided into certain groups, such as blacksmith, goldsmith, carpenter, etc. to do certain type of
work. There existed small privately-owned shops. Products such as furniture and household items
were made up of leather, metals, wood, clay, sand, and stone.
Industrial Revolution era (18th to 19th Century)
During this period, an increasing number of mechanical improvements were making a considerable
effect on productivity. This period is popularly known as the Industrial Revolution period. During
2.
Aftab Alam MBA.(Hrm)

this period, numerous inventions and discoveries of various machinery and mechanisms freed
humans and animals as sources of power/energy in industry. The factory system began to develop in
the early 1800s, which could be called the start of the Industrial Revolution era. In 1832, Charles
Babbage, a mathematician, suggested division of labour for productivity improvement. In 1830, the
discovery and expansion of railroad generated new demands for steel and industrial products, and
placed heavy demands on capital too.
Scientific management era
The factory system was well introduced by the early 1900s. Frederick Winslow Taylor began his
career in the late 1800s as a labourer with Midvale Steel Company. In a short period he advanced
through the ranks of foreman, master mechanic, and chief engineer. His experience through various
stages gave him a thorough understanding of various inefficiencies that existed in his company.
Taylor could not digest such practices. Fortunately, he was promoted to a position where he could
conduct some experiments on his ideas to improvement. Believing in the scientific approach to
management to improve labour efficiency, he proposed certain principles. His book Principles of
Scientific Management published in 1915. He was given the title, Father of Scientific
Management.
3.
His tasks in the fields of metal cutting, shovelling, handling of pig iron, analysis of work
requirements/specifications (work design and method study), determining the amount of time (work
measurement and time study), piece rate system, scientific management, etc. are noteworthy.
Taylors work had influenced many thinkers of whom Frank .B. Gilbreth and Lillian Gilbreth
(husband and wife) stand at the forefront. They studied the motions of parts of human body,
particularly, hands, legs, eyes, and trunk/body (which they named Therbligs) even at the micro
level. Their studies are known as motions economy, motion study, and micro motion studies.
Gilbreths Therbligs have occupied a significant position in the field of industrial engineering.
Further, the work was carried out by their associates, such as H.L. Gantt, who is best known today
for a type of chart used for scheduling. He also developed wage incentive plans.
4.
Operation research era
Operation research is the subject evolved during the days of World War II and it involves decision
making by arriving at solutions to problems using quantitative techniques in a systematic way.
During World War II battle problems and risk situations such as transporting troops necessitated a
careful analysis for which researchers employed mathematical equations and analytical methods for
analysing the effects of various warfare decision strategies. Later on, these techniques of
competitive analysis were successfully applied to problems in the business world. The operation
research techniques such as linear programming, transportation problems, inventory control models,
and waiting line etc. helped the industrial engineers a lot to analyse and take decision to improve the
productivity.
5.
Computerized systems era
Todays manufacturing sector is undergoing nothing short of an electronic revolution. It is started
with microprocessors, which are known as chips or processing elements used in computers. These
microprocessor and computers are being installed in virtually every type of material handling and
processing equipment.

The data processing and problem-solving functions of computer are well-familiar to any engineer
today. Computers are ruling the industries with their use in every field from computer aided process
planning (CAPP) to computer aided design and computer aided manufacturing (CAD/CAM).
Another revolutionary change in industrial engineering field in computer era is the invention and
use of robots. Nowadays robots are freeing the man and machine from doing much of the boring,
dirty, and possibly dangerous work.
OBJECTIVES OF INDUSTRIAL ENGINEERING
Following are the objective of methods management (industrial engineering):
1. To define the tasks and specify the jobs.
2. To examine and improve methods or working processes.
3. To standardize the procedures.
4. To find the ways and means for effective utilization of resources.
5. To minimize the movements thorough motion economics.
6. To measure the work content of various tasks/jobs.
7. To fix the wages and decide the incentive policy based on work measurement.
8. To achieve betterment in work culture and working environment with the help of ergonomic
studies.
9. To investigate and eliminate the unnecessary work elements so as to increase productivity.
10. To increase productivity by discovering the easy methods of working by motion study and
micro-motion study.
11. To make an effective layout of workplace so as to reduce the number of movements.
12. To evolve best possible flow lines for the efficient and fast material handling.
13. To obtain and effective control system.
14. To enable a good judgment on manpower requirements, etc.
ACTIVITIES OF METHOD MANAGEMENT
(INDUSTRIAL ENGINEERING FUNCTIONS)
The activities of methods management (industrial engineering functions), in fact, started before the
actual industry was established. The major functions are those which come before and after the
establishment. The following are the functions of industrial engineering, classified under three head:
before, during, and after the establishment.
1)
a)
b)
c)
d)
e)
f)
g)
2)
Before the establishment of Industry

Facility location planning:
Facility layout planning
Flow pattern decisions and material handling planning
Job specification and job evaluation
Capacity requirement planning
Resource requirement matching
Laying down policies and strategies
During the establishment of Industry

a) Work measurement
b) Method establishment

c)
d)
e)
f)
g)
3)
a)
b)
c)
e)
f)
g)
Wage and wage incentive fixation

Finding the ways and means to increase the efficiency or ease in performing a job
To enhance productivity through the motion economy
To conduct micromotion studies to eliminate waste movements
To design the process in accordance with ergonomics principles
After the establishment of Industry
Idea management
To lay down the procedure and systems
To monitor the methods and systems, and modification when technological change occur d)
Modernization and standardization
Codification and work simplification
Formulation for incentive fixation
Job evaluation and merit rating
PRODUCTION SYSTEMS
Production can be defined as the process of converting certain inputs in the form of goods or
services into outputs within the stipulated cost and time at a predetermined quality level. Production
is a process whereby raw material is converted into semi-finished products. Production function
comprises the activities of procurement, allocation and utilization of resources.
PRODUCATION MANAGEMENT
Growth and competitiveness of an organization largely depends on effective utilization of resources
and careful planning. Thus, production management becomes central to almost every area of an
industry, such as design, product development, manufacturing, distribution, marketing, sales, and so
forth. Issues related to these areas are addressed in production management, which deals with
the management of the transformation process from the raw form of materials to the finished form
with certain value addition. It includes organizing the work, job design and evaluation, selecting the
process, product, machinery and facilities, and so forth. Production management can be better
understood by studying it under the following heads:
1.
2.
3.
4.
5.
6.
7.
Production systems (or types of production),

Process/Product/Production planning and control,
Facility management and location planning,
Plant layout and maintenance management,
Methods management and work measurement,
Purchase/stores/material management and
Quality management

PRODUCTION SYSTEM
Production system is the process by which goods and services are created. Production system is a
system whose function is to convert a set of inputs into a set of desired outputs. A typical production
system is shown below:
According to the volume of production, i.e., the quantities of finished products and regularity of
manufacture, the production system can be broadly grouped into two categories:
1. Intermittent production system
2. Continuous production system
Intermittent production system if further subdivided into three type as project, job, and batch
production, while continuous production is subdivided into two categories, i.e., mass and flow
production as shown below:
Production
Stem
Project Production
Intermittent
Production
Contineous
Production
Job Production
Batch
Production
Flow Production
Mass Production
INTERMITTENT PRODUCTION SYSTEM

In this system, goods are manufactured according to the orders made be customers. In this system,
the production facilities are flexible enough to handle a wide variety of products and sizes, and can
be used to manufacture those products where the basic nature of inputs changes with the change in
the design and sizes of the products. The intermittent system of production is found in welding
shops, machine, shops, hospitals, general offices, etc. Intermittent production can be classified
into following categories:
a) Project Production
Project production is usually the production of a single complete unit by one operator or a group of
operators. For example, house construction, railway coach building, bridge or dam construction etc.
Here, the total work is considered as one unit. Sometimes, this unit may consist of several products
or activities also.

b) Job Order production
Job order production is also the production of products to meet specific customer requirements. The
quantity involved is small, usually once or a few. This type of production is mainly concerned with
special small projects. For example, printing of pamphlets, stitching of dresses by a tailor etc. c)
Batch Production
Batch production is the manufacture of a number of similar products either to meet a specific order
or to satisfy continuous demand for a period. When the production of a batch is terminated, the
plant and equipment are available for the production of similar or other products.
CONTINUOUS PRODUCTION SYSTEM

Continuous production is the specialized manufacturing of identical products on which the
equipment is fully engaged. This type of production is normally associated with large quantities and
high rate of demands. Continuous production can be classified into following categories: a) Mass
production
In mass production, a large number of identical products are manufactured. However, despite
advance mechanization and tooling, the machinery need not be specially designed for this type of
product only. This means that both plant and equipment are flexible to manufacture other products
involving same or similar processes. For example, a shop producing plastic bottles on a large scale
by injection molding process is mass production. Although, the equipment is continuously engaged
in the production of, say, a certain type of water bottle, it can be switched over to the production of
oil cans or plate or similar product by changing the mold or die.
b) Flow production
In flow production, the plant, equipment, and layout are basically designed to manufacture the
products in queue. Flexibility in the selection of products for manufacture is limited to minor
modification in the layout or the design of models. A decision to switch over to a different type of
product may even demand basic changes in the layout and the equipment policy in addition to
extensive tooling. Some examples of the flow-type production bottling units of beverages,
automobiles, engines, telephone industry, electricity production etc.
PRODUCTION PLANNING AND CONTROL

Production can be defined as a means of converting inputs into (in the form of goods or services or
information or a combination of these) into useful value added outputs (in the form of goods or
services or information or a combination of these) by performing a set of manufacturing operations
in a predetermined sequence within a stipulated time, with desired quality level at a predetermined
cost.
Production
Production means conversion of inputs in the form of goods or services or information into useful
value added outputs in the form of products, service, or information through certain defined
transformation process.

Planning
Planning means predetermination of a scheme of future achievements to meet the desired
objectives. It starts with an analysis of the data of the firms resources and the desired targets
(objective). In fact, planning sets up the standards of performance.
Control
Control means supervision of all the relevant operations with the help of control mechanism that
regulates the progress of the work. Controlling is done by comparing the actual performance with
the standards or the plan, and an analysis is done if any deviations occur.
PRODUCTION PLANNING
Production planning and control can be defined as directing and coordinating materials and physical
facilities toward the attainment of predetermined production goals in the most efficient and
economical manner.
FUNCTIONS OF PRODUCTION PLANNING AND CONTROL
The various functions of production planning and control can be classified into three main
categories or phases as follows:
a)
Pre-planning phase
Prior planning is done to frame the courses of action in advance. The whole activity must be
planned to exist on paper before the very first action takes place. This phase consists of
forecasting, setting objectives and budgeting.
b)
Active planning phase
This phase consists of planning, routing and scheduling, loading and scheduling. c)
Post-planning phase
The post-planning activities include controlling and corrective actions.
PRE-PLANNING
Prior planning is done to frame the courses of action in advance. The whole activity must be
planned to exist on paper before the very first action takes place.
Forecasting (estimating of future work): Forecasting is defined as the estimation of type, quantity,
time, and cost of future work. These estimates from the ground for establishing the future needs for
men, materials, machines, time, and money.
Orders (preparation of job authorization): To have control on job, it must be authorized with a
specific document. Thus, order means giving authority to one or more persons to do a particular job.
Job design (preparation of specification): After job authorization is given, the necessary
information is collected to describe the job in details. This includes drawings, list of specification,
bill of material, and so forth.

Production design (designing methodology and type of product): The next step in the
preplanning stage is to determine the type of process or production, such as job/batch/mass/flow,
and the required technology for the job.
Facility location and layout planning (decision of location and type of layout): This function is
generally a one-time activity and starts with the selection of site and location and planning or
providing the required facilities.
ACTIVE PLANNING
In any type of work activity, following steps are necessary for planning details of the work to be
done.
Planning:
Production Planning: The determination of how and how much production is to be done.
Product Planning: the type of product and model, its specification, and quantity to be
manufactured is to be done.
Process Planning: The determination of most economical method of performing an activity, all
actors being considered.
Capacity Planning: This refers to the available capacity to manufacture the planned quantity, and
any adjustments or subcontracting if required.
Human Resource Planning: This is the plan regarding manpower and its requirement for
accomplishing a task in time.
Material Planning and Control: determination of material requirements and control of material
(Inventory Control).
POST-PLANNING
The post-planning activities include controlling and corrective actions. Various sub-functions under
this head are briefed out below:
Controlling: This function is about regulating and monitoring the work so that it doesnt go wrong
with reference to the plans for design specification.
Corrective action: This function deals with the rectification of any mistakes or errors or deviation
from the plans.
Chase planning: It is a plan to speed up the job so as to complete it at the earliest.
Backlog Planning or backtracking: This is plan to complete the left out (which could not be
accomplishment in time), postponed job. However, this plan should be so scheduled that it does not
interfere with nor disturb the regular work.
Follow up: This function is to remind workmen their job and see that the work is carried out in
time.

Expediting: This function is to include urgent or important jobs that may rise up from time to time
during the regular work.
Aggregate planning: It is a plan that deals with the adjustment or modification of resources such as
manpower, machinery, material, etc. so as to accomplish the work.
Feedback: This function is to collect and bring out the factual information to the notice of the
planning department about the work to see if it is going as per plan.
Replanting: This function is to plan again, with modification or rectification in the original plans,
based on the feedback information.
ROUTING
Routing is defined as the selection of the path through which each part of the product will go
through while being transformed from raw material to finished products. The path of the product is
often termed as sequence of operations adopted while manufacturing.
Routing has to consider layout, temporary storage of in-process inventory, and material handling.
Further, routing has a direct bearing on the time as well as the cost of operations.
SCHEDULING
Scheduling may be defined as the assignment of work to facility with the specification of times and
the sequence in which the work is to be done. Scheduling is actually time phasing of loading. The
facility may be manpower, machine, or both. Scheduling deals with orders and machines; it
determines which orders will be taken up, on which machine, in which department, at what time
and by which operator.
LOADING
Loading gives complete and correct information regarding the available number of machines and
their operating characteristics, such as capacity, capability, and speed rate. This information can be
used to calculate the variation between workload and actual capacity and thence to determine if
customers orders can be accomplished within due date. These are also used to optimize the
allocation of work. In short loading determines who will do the work as routing determines where
and scheduling determines when it shall be done.
DISPATCHING
The dispatching function is the execution of the planning function. It is concerned with getting the
work started. Dispatching ensures proper implementation of plans. The dispatching function
authorizes the workers to do the work.
CONTOL PHASE:
Production control is one of the most important and basic functions of an industry. Its main
objective is to ensure the predetermined output level of a specified quality at the prescribed time in
the most optimal way to meet the market requirements. Production control directs and regulates all
the activities of a production process by verifying if the activities are in accordance with the
production plan. It is a dynamic activity, tracking the production cycle to ensure that facilities and

personnel are optimally utilized so that the products are manufactured within a minimum feasible
time and economically.
FOLLOW-UP:
Once the job is started, it is essential to review the progress continuously as per the plan so that
deviations or errors can be detected and rectified at an early stage. Follow-up phase accordingly
consists of the following two parts:
a)
Feedback and progress report: One of the principles of a good production control system
is that it must furnish timely, adequate, and accurate information about the actual progress of the
work, including delays, interruption, bottlenecks, and under-loading or over-loading. The PPC
function becomes complete if it has a right feedback and reporting system by which one can get
an early warning of when the actual production deviates from the planned production and thus
enables taking corrective action. The feedback system uncovers causes for delay that result in
uneconomical lot sizes, overloading or under-loading, unmatched material, tools and manpower,
disqualified products, and errors in processing and inspection.
b)
Corrective action: When the data collected from the production unit show significant
deviation from the plan, and if the plan cannot be changed, then a suitable reviving action is
needed for getting back on the plan. This action is usually named as expediting which
included speeding up, gap planning, follow-up, chase planning, and backlog planning. When the
actual performance significantly deviates from the plan, or if there is a sudden increase or
decrease in the demand, it is necessary to change the plan or re-adjust the resources.

FACILITY PLANNING
The facility planning and plant layout problem is an area of arranging facilities such as equipment
on a shop floor and department or section inside the plant or workplace. It is one of the most critical
strategic decisions.
Facility location decisions are strategic, long term, and non-repetitive in nature. Without a sound
and careful location planning in the beginning itself, the new facility may pose continuous operating
disadvantageous for the future operations. Location decisions are affected by many factors, both
internal and external to the organization. Internal factors include the technology used; the capacity;
and political, economic, and social conditions in the various localities.
CLASSIFICATION OF FACILITY PLANNING:
In fact, the facility planning is composed of two important decisions. Firstly, it involves the
selection of a place or location, which has maximum facilities. Then, the second decision is
involved in optimizing the facilities and converting them into utilities or amenities. In other
words, it is to decide how to and where to
General Territory
arrange/position them. Facility planning is
Selection
Facility Location
Planning
carried out in two phases namely:
Exact site/community
Phase I: facility location study and
Phase II: facility layout study
Facility
Planning
selection
product layout
Porcess layout
Plantl layout study
Fixed position layout
Facility layout study Horizontal flow pattern

Cellular or Group layout
Vertical flow pattern
PHASE I: FACILITY LOCATION STUDY

The location of facilities is a problem associated with the planning phase of a factory or even a
service sector. Whether it is a small entrepreneur or a big industrial estate; a hospital or a fashion
designer shop; a school or a five star hotel, one has to start first with the planning activity with first
and foremost question as:
Where should we locate the site so that no changes are needed for years to come?
Consideration in Plant Location
There is hardly any plant on this globe that is located at a place which fulfils all the criteria of a
perfect location. Some factors are compromised to take the advantage of other factors.
In general, the following considerations are needed in a plant location decision:
By: Gohar Ali (SPCT

Swat)
48
Cheap availability of land

Availability of water
Nearness to raw material sources
Nearness to market or consumer
Good transportation facility
Availability of fuel and power
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6.
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7. Suitable climate conditions
8. Availability of labour at a comparative wages
9. Construction cost
10. Taxes and waste disposal
Steps in Facility Location Study
Location studies are usually made in two steps. There are as follow:
1)
Territory/Region Selection
2)
Site/Community Selection
TERRITORY SELECTION
In Phase I, for the general territory/region/area selection, the following are some of the important
factors that influence the selection decision:
Markets: There has to be some customer/market for the product/service. The market growth
potential and the location of competitors are important factors that can influence the location.
Locating a plant or facility nearer to the market is preferred if the promptness of service is required,
if the product is fragile, or is susceptible to spoilage.
Raw material and supplies: Sometimes, accessibility to suppliers of raw materials, parts supplies,
tools, equipment etc. may very important. The issue here is the promptness and regularity of
delivery and inward freight cost minimization. If the raw material is bulky then location near raw
materials sources is important.
Transportation facility: Adequate transportation facilities are essential for the economics operation
of a production system. For companies that produce or buy heavy, bulky, and low value per ton
commodities, water transportation could be an important factor in locating plants.
Manpower supply: The availability of skilled manpower, the prevailing wage pattern, living costs,
and the industrial relations situation influence the location.
Legislation and taxation: Factors such as financial and other incentives for new industries in
backward areas, exemption from certain and state and local taxes etc. are important.
Climate: Climate factors can dictate the location of certain types of industries, such as textile
industry which requires high humidity (moisture) zone.
SITE/COMMUNITY SELECTION
Having selected the general territory/region, next we have to go for the site/community selection. In
addition to the factors in common consideration there are some more factor that influence the site
selection decisions.
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Community facilities: These involves factors such as quality of life which turn depends on the
availability of facilities such as school, places of worship, medical services, police and fire stations,
cultural, social and recreation opportunities etc.
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Waste disposal: The facilities required for disposal of process waste including solid, liquid, and
gaseous wastes need to be considered. The plant should be positioned such that prevailing winds
carry any fumes away from populated areas.
Geography: the geography, soil structure, and drainage must be suitable. If considerable land
improvement is required, low priced land might turn out to be expensive.
Transportation facilities: the site should be accessible by road and rail preferably. The
dependability of available transport carriers is also worth considering.
PLANT LAYOUT
Definition: Plant layout refers to the arrangement of physical facilities such as machinery,
equipment, furniture etc. within the factory building in such a manner so as to have quickest flow of
material at the lowest cost and with the least amount of handling in processing the product from the
receipt of material to the shipment of the finished product.
Importance: Plant layout is an important decision. An ideal plant layout should provide the best
relationship among output, floor area and manufacturing process. It facilitates the production
process, minimizes material handling, time and cost, and allows flexibility of operations, easy
production flow, makes economic use of the building, promotes effective utilization of manpower,
and provides for employees convenience, safety, comfort at work, maximum exposure to natural
light and ventilation. It is also important because it affects the flow of material and processes,
labour efficiency, supervision and control, use of space and expansion possibilities etc.
An efficient plant layout is one that can be helpful in achieving the following objectives:
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TYPES OF LAYOUT
48
(a) Proper and efficient utilization of available floor space

(b) To ensure that work proceeds from one point to another point without any delay (c)
Provide enough production capacity.
(d) Reduce material handling costs
(e) Reduce threats to personnel
(f) Utilize labour efficiently
(g) Increase employee morale
(h) Reduce accidents
(i) Provide for volume and product flexibility
(j) Provide ease of supervision and control
(k) Provide for employee safety and health
(l) Allow ease of maintenance
(m) Allow high machine or equipment utilization
(n) Improve productivity

As discussed so far the plant layout facilitates the arrangement of machines, equipment and other
physical facilities in a planned manner within the factory premises. An entrepreneur must possess
an expertise to lay down a proper layout for new or existing plants. It differs from plant to plant,
from location to location and from industry to industry. But the basic principles governing plant
layout are more or less same.
Commonly the layouts are of the following types:
(a)
Product or line layout: Under this, machines and equipment are arranged in one line
depending upon the sequence of operations required for the product. The materials move from one
workstation to another sequentially without any backtracking or deviation. Under this, machines are
grouped in one sequence. Therefore materials are fed into the first machine and finished goods
travel automatically from machine to machine, the output of one machine becoming input of the
next.
(b)
Process layout: In this type of layout machines of a similar type are arranged together at
one place. e.g. Machines performing drilling operations are arranged in the drilling department.
Therefore the machines are installed in the plants, which follow the process layout. Hence, such
layouts typically have drilling department, milling department, welding department, heating
department and painting department etc. The work has to be allocated to each department in such a
way that no machines are chosen to do as many different job as possible i.e. the emphasis is on
general purpose machine. The work, which has to be done, is allocated to the machines according to
loading schedules with the object of ensuring that each machine is fully loaded.
(c)
Fixed Position or Location Layout: In this type of layout, the major product being
produced is fixed at one location. Equipment, labour and components are moved to that location.
All facilities are brought and arranged around one work center. This type of layout is not relevant
for small scale entrepreneur.
(d)
Combined layout: Certain manufacturing units may require all three processes namely
intermittent process (job shops), the continuous process (mass production shops) and the
representative process combined process [i.e. Miscellaneous shops]. In most of industries, only a
product layout or process layout or fixed location layout does not exist. Thus, in manufacturing
concerns where several products are produced in repeated numbers with no likelihood of
continuous production, combined layout is followed. Generally, a combination of the product and
process layout or other combination are found, in practice, e.g. for industries involving the
fabrication of parts and assembly, fabrication tends to employ the process layout, while the
assembly areas often employ the product layout. In soap, manufacturing plant, the machinery
manufacturing soap is arranged on the product line principle, but additional services such as
heating, the manufacturing of glycerin, the power house, the water treatment plant etc. are arranged
on a functional basis.
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While deciding factory or unit or establishment or store, a small-scale businessman should

keep the following factors in mind:
48
FACTORS INFLUENCING LAYOUT

(a)
(b)
(c)
(d)
(e)
(f)
(g)
Factory building: The nature and size of the building determines the floor space available
for layout. While designing the special requirements, e.g. air conditioning, dust control,
moistness control etc. must be kept in mind.
Nature of product: Product layout is suitable for uniform products whereas process layout
is more appropriate for custom-made products.
Production process: In assembly line industries, product layout is better. In job order or
intermittent manufacturing on the other hand, process layout is desirable.
Type of machinery: General purpose machines are often arranged as per process layout
while special purpose machines are arranged according to product layout
Repairs and maintenance: Machines should be so arranged that adequate space is
available between them for movement of equipment and people required for repairing the
machines.
Human needs: Adequate arrangement should be made for washroom, lockers, drinking
water, toilets and other employee facilities, proper provision should be made for disposal of
wastes, if any.
Plant environment: Heat, light, noise, ventilation and other aspects should be duly
considered, e.g. paint shops and coating section should be located in another hall so that
dangerous fumes can be removed through proper ventilation etc. Adequate safety arrangement
should also be made.
Thus, the layout should be favorable to health and safety of employees. It should ensure free and
efficient flow of men and materials. Future expansion and diversification may also be considered
while planning factory layout.
INDUSTRIAL ENGINEERING AND METHODS MANAGEMENT

INTRODUCTION
Modern industry has been constantly in search of better methods that can make jobs easy and
economic. For this purpose, most of the companies have started assigning some engineering/
scientific management groups for work study and job evaluation, ergonomic study, and other
methods of achieving reduced costs of manufacturing their products.
METHOD MANAGEMENT
Industrial engineering is concerned with methods management in bringing effectiveness and
efficiency to a system or improving the productivity of a system. This is possible when and only
when the industrial engineer has a broad knowledge of all the fields or areas of various departments
of the industry. Cost effectiveness, time study and method study are the main tools of an industrial
engineer.
OBJECTIVES OF METHODS MANAGEMENT
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1. To define the tasks and specify the jobs.

2. To examine and improve methods and working processes.
3. To standardize the procedures.
48
The following are some important objectives of methods Management (Industrial Engineering):

4.
5.
6.
7.
8.
To find the ways and means for effective utilization of resources.

To minimize the movements through motion economics.
To measure the work content of various tasks/jobs.
To fix the wages and decide the incentive policy based on work measurement.
To increase productivity by discovering the easy methods of working by motion study and
micro-motion study.
9. To make an effective layout of workplace so as to reduce the number of movements.
10. To obtain an effective control system, etc.
ACTIVITIES OF METHOD MANAGEMENT
The activities of method management (industrial engineering functions), in fact, started before the
actual industry was established. The major functions are those which come before and during the
establishment.
1)
Before the establishment of Industry

Following are the functions of industrial engineering before the establishment of industry:
a) Facility location planning: This function involves two steps. The first step is to select the
region/territory for the industrial setup. The second step is to select the particular site.
b) Facility layout planning: This is the next function to the above. The available facilities
should be planned and laid out such that maximum utility may be derived from them. The
facility layout includes the plant layout also.
c) Flow pattern decisions and material handling planning: Plant layout is interlinked with
flow line decisions. The assembly line for manufacturing (or assembling), as well as for
material handling are arranged according to the prescribed flow pattern.
d) Job specification and job evaluation: Each job is defined and specified in terms of the
requirements (such as qualification, experience, etc.) to perform the job and what the
expected work to be done is, along with what the money payable to the job is. This is called
job specification. Responsibility, accountability, and authority are some other dimensions of
measuring the job contents. Based on all these dimensions, jobs are to be evaluated, graded,
or ranked to pay accordingly. This is known as job evaluation.
e) Capacity requirement planning: Due to the fact that industrial engineering department
thoroughly knows what the available material is, what methods could be applied, what the
capacities or human effort or machine power are, etc., this function is usually assigned to the
industrial engineering department.
During the establishment of Industry

The following are the functions of industrial engineering during the establishment of industry:
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2)
48
f) Resource requirement matching: This is the function of IE to maximize the utility of the
available resources to match with the required output.
g) Laying down policies and strategies: Every industry has certain objectives for which they
choose a strategy and adopt certain policies to match their requirements. Industrial
engineering department can do this activity most efficiently owing to its thorough
knowledge of all the jobs and also its relations with various departments.

a) Work measurement: This function is to split a task into small elements and to time them.
b) Method establishment: While conducting time study itself, simultaneously method study is
conducted with the intention to establish the method.
c) Wage and wage incentive fixation: This is also a function of IE to fix wage and wage
incentives. The wage or salary is a remuneration made by the employer to the employee for
rendering certain services. Wage incentive or simply incentive is the payment made by the
employer to the employee for his/her extra work or excessive efforts or outstanding
performance.
d) To enhance productivity through the motion economy: Improvement in productivity is
the ultimate objective of an industrial engineer. Motion economy is the proven tool in this
regard.
e) To conduct micro-motion studies to eliminate waste movements: The micro-motion
study by Gilbreths has given a way to investigate the jobs. Motion picture cameras, cycle
graph, and chrono cycle graph are some of the tools used to eliminate the waste movements
in a job.
f) To design the process in accordance with ergonomics principles: To release fatigue and
to extend the job to do without fatigue exertion is a dire necessity in any industry. The
ergonomics study has made industrial engineers free from fatigue problem.
3)
After the establishment of Industry

The following are the functions of industrial engineering after the establishment of
industry:
a) Idea management: There may be a scope of improvement in every process if a systematic
study is conducted and examined thoroughly. This function is attached to the industrial
engineering department in the present days industry.
b) To lay down the procedure and systems: Though the methods and tasks are clearly
defined, unless proper procedures and systems are laid down in the industry, the overall
functioning of the industry will be in disorder.
c) To monitor the methods and systems: The methods and procedures once laid down are to be
monitored and maintained. In fact, it is very difficult to maintain a system than to introduce
one.
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f) Formulation for incentive fixation: A worker who excels in his work should be suitably
rewarded. It is believed to be one of the motivation factors to reward those who achieve
more than what they normally can.
48
d) Modernization and standardization: We know that anything new is attractive to most of

the people. This fact of life is making industrial engineers update their systems and methods
to be modern on one hand and standard on the other.
e) Codification and work simplification: There are occasions where the codification has
given a way to find the job simplified in respect of its method. Codification definitely saves
time and simplifies the work.

g) Job evaluation and merit rating: Job evaluation is concerned with measuring the
complexity and the work content in the job, whereas merit rating deals with the work done
by a worker. The function of job evaluation is done by the industrial engineer and merit
rating by personal manager.
WORK STUDY
The entire concept of work study is

concentrated upon the answers of following
two questions:
1. How should a job be done? And
2. How much time a job should take for
completion?
Work Study
Definition: Work study may be defined as the analysis of a job for the purpose of finding the
preferred method of doing it and also determining the standard time to perform it by the preferred
(or given) method. Work study, therefore, comprises of two areas of study: method study (motion
study) and
time study (work
measurement).
Time
Study
Work
meausremen
t
Motion Study
Motion Economics
Method
Study
Micro
-motion
Stud
y
Ergonomic
s
The answer for the first question is method

and the answer for the second question is time study and work measurement.
study,
Role of Work Study in Improving Productivity

In order to understand the role of work study, we need to understand the role of method study and
that of time study.
Method study (also sometimes called Work Method Design) is mostly used to improve the method
of doing work. The better method involves the optimum use of best materials and appropriate
manpower so that work is performed in well-organized manner leading to increased resource
utilization, better quality and lower costs.
Time study, on the other hand, provides the standard time, i.e. the time needed by worker to
complete a job by the standard method. Standard times for different jobs are necessary for proper
estimation of:
manpower, machinery and equipment requirements,

daily, weekly or monthly requirement of materials,
production cost per unit as an input to better make or buy decision,
efficiency and make incentive wage payments.
worker's
48
By the application of method study and time study in any organization, we can achieve greater
output at less cost and of better quality, and hence achieve higher productivity.
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WORK STUDY AND PRODUCTIVITY
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Ducker defined productivity as, The balance between all factors of production that will give
maximum output with the smallest effort.
Productivity may also be defined as the ratio between output and input.
In any country, a satisfactory living standard depends on national productivity. The responsibility of
developing productivity at the micro level has come on the shoulders of every citizen in general and
industrial engineers in particular. This necessitates industrial engineers to understand the concept of
productivity how best it can be improved through work study.
Work study is used to improve a process by research and development and by providing more
improved physical means to motivate workers. This automatically raises production as well as
productivity.
METHOD STUDY
Method study, aims to achieve the better method of doing work, and for this reason method study is
sometimes called Work Method Design.
Definition: Method study can be defined as the procedure for systematic recording, analysis and
critical examination of existing or proposed method of doing work for the purpose of development
and application of easier and more effective method.
PROCEDURE OF METHOD STUDY
Different authors have given different method procedures, however, the standard procedure consists
of the following six steps:
1.
2.
3.
4.
5.
6.
Select
Record
Examine
Develop
Install
Maintain
Selection of job/problem for method study

Practically, any activity or a job is a potential project for improvement but the work study engineer
should always attempt to select those jobs for improvement which are unpopular among employees.
Industrial engineers are provided with certain guidelines on selecting a problem and on the tools for
problem solving. A problem which cannot be reduced to any solution and is impracticable should
not be selected. For example, trying to find a generator which can start without external power and
without any power loss is impossible.
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After selecting a particular task for study, it is essential to record the relevant facts regarding
different processes or procedures, various basic resource requirements and availabilities. Effective
48
Record information

recording methods, charts, and diagrams can help in making decision quickly, easily, correctly, and
timely.
Critical Examination
After proper recording of the data, it is now important to examine the facts critically. All ifs and buts
should be brainstormed and some conclusions are to be drawn. These conclusions should be
evaluated thoroughly from all the angles to choose the best alternative.
Developing Better Method:
With the present method or procedure for the job in mind, the application of critical analysis'
highlights the essential part of the job, for which alternative ways for its carrying out are developed.
It is very important to consider economic, technical, and human aspects while developing the
activity. The method should be clearly defined after developing it.
Installation of Improved Method:
After the approval of the improved method by the management of the company, the next step is to
put this method into practice. Installation of method requires necessary prior preparation for which
the active support of everyone concerned is very important. The activities of the installation phase
include: gaining acceptance of the change, retraining the workers, arranging the requirement of new
methods, giving a trial run to the new method.
Maintain the standard practice by regular follow up.
The final step of method study is in fact the most difficult part to implement and maintain. The
progress is to be recorded from time to time and evaluated at suitable intervals. After a sufficient
number of production runs and test readings, it is to be declared or standardized.
MICRO-MOTION STUDY
It sometimes becomes necessary to analyse motions precisely and closely with a view that
unnecessary motions could be eliminated. It is worthwhile to perform such an exercise on short
cycle of movements where the hand movements will be done thousands of times, e.g. assembly of
certain electronic parts, packing, counting, etc. This study is known as micro-motion study.
All movements are grouped in certain common motions and are symbolized. These movements are
called micro-motions and the symbol given to represent such movements is known as therblig.
FACTORS TO BE CONSIDERED IN METHOD STUDY
Motion economy factor: When a particular job is undertaken for study, one has to think of
whether there is a possibility of reducing the number of motions or not. In certain jobs there are
unnecessary motions in plenty. By economizing these motions, we can save human energy and
reuse it for higher productivity.
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a.
48
While conducting method study, an engineer has to consider the following types of factors.

b.
Economic Factors: If the economic importance of a job is small, it is not wise to start or
continue a long study. Priorities should be given to those types of job which offer greater
potential for cost reduction.
c.
Technical Factors: When a new method is developed and implemented, it is required to

check the availability of adequate technical knowhow and technological resources. Obviously,
this feature limits the scope of selection of development of new methods.
d.
Human Factors: Emotional reaction of the workers to the method study and changes in
method are important considerations. If the study of a particular job is suspected to cause unrest
or ill feeling, it should not be undertaken, however useful it may be from the economic point of
view.
INFORMATION COLLECTION TECHNIQUES:

The accuracy of data about the method study problem is important for the development of improved
method. The following techniques are generally used for the collection of information/data about
the task under consideration.
a.
Observation. It is a common technique used for collecting information about the present
method or the existing problem. The method study person visits the site where the work is
currently being done and observes various steps in the method being followed. There are many
instances where all the data needed is obtained by only observing the work or work site.
b.
Discussion. Discussion with those who do or who supervise the work can frequently
provide information not obtainable by observation. The discussion technique is commonly used
where irregular work is involved or where one is trying to analyze past work in order to improve
efficiency of work to be done in future.
c.
Records. Valuable information can be obtained from past records concerning production,
cost, time, inventory and sub-contracts. For certain type of information concerning the past
practice, sometimes this is the only way to obtain authentic data.
d.
Motion Pictures or video Films. Accurate and most detailed information can be obtained
by taking motion pictures or video film. Information obtained by this procedure can easily be
transmitted to all levels in the organization and if needed, can be used directly for training
purposes. The film can be used to focus attention at particular point or motion in an operation.
TIME STUDY WORK MEASUREMENT
Page
Time study provides reliable data for eliminating ineffective time from the production cycle time.
48
Work is measured in terms of terms of certain time elements, for which the remuneration is suitably
designed. According F.W. Taylor, any work can be split into small units called elements. These
elements are timed, and the timing is standardized by suitable measurement techniques, with the
help of which targets are fixed. The targeted job is then called a task.
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According to ILO, work measurement is the application of techniques designed to establish the
time for a qualified worker to carry out a specified job at a defined performance. And Time study
is a work measurement technique for recording the time and rate of working for the elements of a
specified job carried out under specified conditions and for carrying out the job at a defined level of
the performance.
TECHNIQUES TO ESTABLISH STANDARD TIME
The standard time can be determined using the following techniques:
1. Time study,
2. Predetermined motion time system, 3.
Standard data system,
4. Work sampling.
1. TIME STUDY
Time study is a technique to estimate the time to be allowed to a qualified and well-trained worker
working at a normal pace to complete a specified task by using specified method.
This technique is based on measuring the work content of the task when performed by the
prescribed method, with the allowance for fatigue and for personal and unavoidable delays. Time
Study Procedure
Steps in conducting time study are as follow:
Step 1: Record all the necessary information about the job, such as product information (name,
material, quantity, quality), process information (location, tooling, layout, rate of production etc.),
information about operator (name, competence, skill, education, experience etc.), information
regarding working conditions (temperature, pressure, lighting etc.)
Step 2: Record the method by breaking down the operation into elements to ensure the most
effective method and the sequence of motions.
Step 3: Record the skill and competence of the operator to ensure that the qualified worker is
selected for the study.
Step 4: Record the time for each element of the operation with the help of stopwatch or other
device.
Step 5: Compute the basic time for each element by taking the average and then compute the
normal time with the formula:
Normal time = Basic time Rating factor
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48
Step 6: Determine the allowances to be added to the normal time to determine the standard time by
using the formula:
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Standard time = Normal time (1 + Allowances) Note:

The Standard Time is the product of three factors:
1. Observed time: The time measured to complete the task.
2. Performance rating factor: The pace the person working at 90% is working slower than
normal, 110% is working faster than normal, 100% is normal. This factor is calculated by an
experienced worker who is trained to observe and determine the rating.
3. Personal, fatigue, and delay (PFD) allowance.
EXAMPLE: A cycle consisting of 5 elements in REQUIRED: Calculate the normal and standard
the working cycle has yielded the following time for each element and of the job if allowance
timings on the stopwatch:
is 15%.
Solution:
Stopwatch
th
For element No.1
reading in 100
Element time
Normal time = Observed time rating factor
of a minute
= 0.7 x 80/100 = 0.56 min.
1
15
15 (15-0)
Standard time = Normal time (1+ Allowances)
2
35
20 (35-15)
= 0.56 (1+15/100)
3
72
37 (72-35)
= 0.644
4
108
36 (108-72)
5
152
44 (152-108)
The
time
for
each
element
and respective ratingsFor element No.2
=
Normal time = Observed time rating factor
are given in the table below:
0.8
= 0.8 x 100/100 = 0.8 min.
Standard time = Normal time (1+ Allowances)
Element
Observed Rating factor (%) (1+15/100)
= 0.644
No.
time
1
0.7
80
2
0.8
100
3
1.3
120
4
0.5
90
5
1.2
100
Element
No.
Performance rating:
Performance Rating is defined as, The process during which the time study engineer compares the
performance of the operator under observation with the observers own concept of proper (normal)
performance. It can also be considered as the efficiency of the worker.
Various systems of performance rating are as follow:
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1. Westinghouse system of rating

2. Synthetic rating
3. Objective rating
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4. Skill and effort rating
5. Physiological evaluation of performance level
Allowances:
The readings of any time study are taken over a relatively short period of time. The normal time
arrived at, therefore, does not include unavoidable delay and other legitimate lost time, for example,
in waiting for materials, tools or equipment; periodic inspection of parts; interruptions due to
legitimate personal needs, etc. It is necessary and important that the time study person applies some
adjustment, or allowances, to compensate for such losses so that fair time standard is established for
the given job.
Certain standardized norms of allowance are in regular practice by industrial engineers. These are
given under five heads as follow:
1.
2.
3.
4.
5.
Interference allowance
Relaxation allowance
Process allowance
Contingency allowance
Special allowance
2. PREDETERMINED MOTION TIME SYSTEM

A predetermined motion time system (PMTS) may be defined as a procedure that analyses any
manual activity in terms of basic or fundamental motions required to perform it. Each of these
motions is assigned a previously established standard time value and then the timings for the
individual motions are combined to obtain the total time needed for performing the activity.
The main use of PMTS lies in the estimation of time for the performance of a task before it is
performed. The procedure is particularly useful to those organizations which do not want
troublesome performance rating to be used with each study. Some commonly used PMT systems
are:
Work Factor System (1938)

Method Time Measurement (1948)
Basic Motion Time (1951)
Dimension Motion Time Study (1954)
Page
Work Sampling is a technique of getting facts about utilization of machines or human beings
through a large number of direct observations taken at random time intervals. The ratio of
observations of a given activity to the total observations approximates the percentage of time that
the process is in that state of activity. For example, if 500 instantaneous observations taken at
random intervals over a few weeks show that a lathe operator was doing productive work in 365
observations and in the remaining 135 observations he was found 'idle' for miscellaneous reasons,
then it can be reliably taken that the operator remains idle (135/500) x 100 = 27 % of the time.
Obviously, the accuracy of the result depends on the number of observations.
48
3. WORK SAMPLING
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HUMAN FACTORS AND ERGONOMICS
Human factors and ergonomics (HF&E), also known as comfort design, functional design, and
user-friendly systems, is a multidisciplinary field incorporating contributions from psychology,
engineering, industrial design, physiology etc. In essence it is the study of designing equipment and
devices that fit the human body and its cognitive abilities. The two terms "human factors" and
"ergonomics" are essentially synonymous.
The International Ergonomics Association defines ergonomics or human factors as follows:
Ergonomics (or human factors) is the scientific discipline concerned with the understanding of
interactions among humans and other elements of a system, and the profession that applies theory,
principles, data and methods to design in order to optimize human well-being and overall system
performance.
Ergonomics comprise three main fields of research: Physical, cognitive and organisational
ergonomics. There are many specializations within these broad categories.
1.
Physical Ergonomics
Physical ergonomics is concerned with human anatomy, and some

of the anthropometric, physiological and bio mechanical
characteristics as they relate to physical activity. Physical
ergonomic principles have been widely used in the design of both
consumer and industrial products. Past examples include
screwdriver handles made with serrations to improve finger grip.
Physical ergonomics is important in the medical field, particularly
to those diagnosed with physiological ailments or disorders. Many
ergonomically designed products are also used or recommended to
treat or prevent such disorders, and to treat pressure-related
chronic pain.
2.
Cognitive Ergonomics
Cognitive ergonomics is concerned with mental processes, such as perception, memory, and
reasoning, as they affect interactions among humans and other elements of a system. (Relevant
topics include mental workload, decision-making, skilled performance, human-computer
interaction, human reliability, work stress and training as these may relate to human-system and
Human-Computer Interaction design.)
3.
Organizational Ergonomics
Organizational ergonomics is concerned with the optimization of socio-technical systems, including

their organizational structures, policies, and processes. (Relevant topics include communication,
crew resource management, work design, work systems, design of working times, teamwork,
participatory design, community ergonomics, cooperative work, new work programs, virtual
organizations, telework, and quality management.)
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OBJECTIVES OF ERGONOMICS
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Most of the recent researchers in this field are trying to explore various factors influencing human
efficiency while working on a machine. Scientific study of the relation between man, machine, and
his environment is the main aim ergonomics.
Following are some of the important objectives of ergonomics:
1. To identify basic causes related to human factors by which the efficiency of man-machine is
hampered.
2. To provide better working conditions so as to improve productivity of the system.
3. To create adequate facilities to reduce or eliminate stress, and fatigue.
4. To provide comfort and make the job easy.
5. To match the requirements of the task with the capabilities of the man and hence eliminate
the loss in output.
Design Factors
Design factors play a significant role in not only designing seats and work tables but also in
working area and plant and equipment layout. Even while designing equipment the manufacturer
cannot overlook the operator and he designs and manufactures the equipment in such a way that its
controls can be operated with great ease, speed, and effectiveness.
Effect of Environment
Environmental factors affect the work. The effect of noise, temperature, and lighting are to be kept
in mind. Noise is the most disturbing factor and affects the efficiency of an operator. The probability
of accident occurrence also increases when the environment is noisy. Due consideration is required
while designing a workplace. The temperature of environment and weather also plays vital role on
the efficiency of the operator. Similarly lighting may also affect the efficiency of operator which
may also be considered.
MATERIAL HANDLING
Material handling means providing the right amount of the right material, in the right condition, at
the right place, at the right time, in the right position and for the right cost, by using the right
method. It applies to the movement of raw materials, parts in process, finished goods, packing
materials, and disposal of scraps. The cost of material handling contributes significantly to the total
cost of manufacturing.
In the modern era of competition, this has acquired greater importance due to growing need for
reducing the manufacturing cost. The importance of material handling function is greater in those
industries where the ratio of handling cost to the processing cost is large. Today material handling is
rightly considered as one of the most potentially profitable areas for reduction of costs. A properly
designed and integrated material handling system provides tremendous cost saving opportunities
and customer services improvement potential.
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DEFINITIONS
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There are many ways by which material handling has been defined but one simple definition is,
Material handling is the movement and storage of material at the lowest possible cost through the
use of proper method and equipment.
Objectives and Functions of Materials Management
The objectives and functions of materials management can be categorized in two way as follows:
1)
a)
b)
c)
d)
e)
f)
g)
h)
Primary objectives
Efficient materials planning
Buying or Purchasing
Procuring and receiving
Storing and inventory control
Supply and distribution of materials
Quality assurance
Good supplier and customer relationship
Improved departmental efficiency
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
Secondary objectives
Efficient production scheduling
To take make or buy decisions
Prepare specifications and standardization of materials
To assist in product design and development
Forecasting demand and quantity of materials requirements
Quality control of materials purchased
Material handling
Use of value analysis and value engineering
Developing skills of workers in materials management
Smooth flow of materials in and out of the organization
2)
(I) PRIMARY FUNCTIONS

To meet the primary objectives, the primary functions of the materials management are given as
follows:
i)
Materials Requirements Planning (MRP)
Planning of materials requirements in manufacturing is necessary function in any organization, as

inventory of materials involve about 60% of the total investment of the organization.
The MRP is a technique used to plan the materials starting from the raw materials, finished parts,
components, sub-assemblies and assemblies.
All the organizations need an efficient and economic purchasing and procurement of its various
supplies of material from the suppliers. The materials management department has to perform this
function of purchasing and procurement of materials very efficiently. Since 50% to 60% of sales
turnover is spent on the purchase of various materials, the amount of profit earned on this sale very
much depends how economically the materials are purchased and utilized in the organization.
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Purchasing
Page
ii)

iii)
Inventory Planning and Control
The inventory control of materials lies with the materials management department, production
department and sales department. Inventory at different levels is necessary to make sure the
availability of all types of materials and goods and their proper flow from one facility to another at
different levels of production centers in a manufacturing concern.
iv)
Ascertaining and Maintaining the Flow and Supply of Materials
Distribution of materials required by the various production centers and other departments must be
ascertained and its flow and continuity of supply must be maintained by the materials management
department. Insufficient or zero inventories many times create the situations of stock-outs and leads
to stoppage of production.
v)
Quality Control of Materials
The quality of the product manufactured by the organization depends upon the quality of the
materials used to manufacture that product. It is a very important and necessary function of
materials management to purchase the right quality of materials. The inspection, quality control,
simplification, specification, and standardization are the activities which are to be followed for the
measurement of quality of the materials.
vi)
Departmental Efficiency
The objective of this function is to ensure the efficiency of the system adopted. If the system and
procedure adopted for materials management are inefficient or faulty, none of the objectives
mentioned above can be fulfilled, howsoever the procedure may be good. In order to maintain the
things in proper way as per planning an efficient control is necessary in the department over each
and every process. Management Information System (MIS) and feedback control at every stage of
working must be adopted to control and make the management and employee work as efficiently as
possible to achieve the best results.
(II) SECONDARY FUNCTIONS
There can be number of secondary functions. Some of them are discussed below:
i)
Standardization and Simplification
The standards and specifications of various types of materials are fixed by design and technical
department of the organization and they are followed by production department. Standards define
the quality, reduction in sizes and variety, interchange-ability of parts and products. It ensures
efficient utilization of materials and reduces wastages. The objective of this function will be to
produce standard product reducing the overall cost of the product.
The variety in product and functionality are the important factors to promote the sales of a product.
The new techniques of designing a product using Computer Aided Design (CAD) has made possible
to develop variety of products at faster rate. The new technological development in manufacturing
using Computer Aided Manufacturing (CAM) can produce variety of products at much faster rate
with all types of flexibility in the manufacturing as compared to conventional methods.
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Design and Development of the Product
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ii)

Materials management department has to act according to use of such variety of materials to
produce variety of parts and ensure the supply of such materials.
iii)
Make and Buy Decisions
When a company grows fast and its sales increases at rapid rate then it becomes an important matter
to decide whether the company should buy the parts and components or increase and establish its
facilities to meet the increased demand and sales. This will be greatly concern to materials
management department.
The make and buy decisions are largely based on cost economics and cost benefit analysis made by
the organization using the existing production capacity of labor, skill and machines available with
the factory and how best they can be utilized. iv) Coding and Classification of Materials
This is an important function of the materials management to help the production and purchasing
department of every organization. It uses its own methods of classification of materials used to
manufacture the product or a company selling various goods. The materials are recognized to
purchase and store as an inventory by its codes. The various methods of coding are used by every
organization to control the variety of materials and its quantity and price rates.
v) Forecasting and Planning
Materials Requirements Planning (MRP) is based on correct forecasting of sales and demand of the
products in the market. The market fluctuations are to be observed to control production of the
organization. The various methods of forecasting are available and the materials management
department can choose the one which gives the best results to the company.
PURCHASE MANAGEMENT
Purchasing is one of the essential and important activities of material management. In fact
purchasing is the first and foremost function of material management. The efficiency of materials
management and the cost effectiveness of the entire industry depend on the wise purchasing of the
material.
Objectives of Purchase Management
The objectives of purchase management are as follow:
To purchase the right quantity and good quality material at the most economical price at an
appropriate time.
To ensure continuous flow of supplies by maintaining good relationships with the supplier.
To explore and develop other sources of supply.
To maintain the functional relation with other department
To provide latest information and advice about the availability of alternate materials.
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In most industries, materials management is divided into three parts. The first part is material
planning activity. The second part is the management of materials before the material comes into
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ORGANIZATION IN PURCHASE MANAGEMENT

the premises of the buyer, usually referred to as purchase management. The third part is
postpurchasing activity, i.e., after material comes into premises, called store management.
OPERATING DOCTRINE INVENTORY PURCHASE STRAGEY
While making decisions, the material manager always thinks of two aspects: when to order? and
how much to order? he is also concerned with the re-order level and cost calculation of the
purchase.
We can understand clearly that the answer to both the questions aims at attaining the minimum
cost. There are two strategies of inventory purchase as follow:
1.
Fixed period system or simply P-system: In this system orders are placed at prdetermined fixed period irrespective of the quantity in stock.
2.
Fixed quantity system or simply Q-system: In this system, a re-order level is fixed and
whenever this level is reached, irrespective of time (or period), an order will be placed for
procurement.
STORES MANAGEMENT
Stores management is considered as the final function in the cycle of material management. Stores
management begins from the very moment the material comes into the premises and ends with the
issuing of the material to the user department.
Functions and duties of the Store Manager
The functions and duties of the store manager are as follow:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Receive the material in good condition.

Classify and codify the items of the inventory.
Arrange the materials in the stores for inventory control.
Update the store stock register.
Insure costly materials (as per company policy)
Issuing of materials as and when required to the user departments.
Protect, safeguard, and maintain the materials by providing appropriate environment.
Ensure that there are no shortages which could affect smoother running of productions.
Forecast the shortage of material and alert the appropriate department to raise purchase
requisition.
10. Participate in modernization of materials or finding alternate materials.
QUALITY MANAGEMENT
Quality conveys the desirable values in a product and also the impression what the customer expects
from the product. It is the fitness for the purpose at the lowest cost, and thus, the quality of any
product is regarded as the degree to which the product fulfils the requirement of a customer.
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DIMENSIONS OF QUALITY
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The parameters through which the quality of a product or service is assessed are called the quality
dimensions of that product or service. Quality is measured through several dimensions. Quality
experts have identified eight important dimensions by which the quality of a product or service can
be assessed. These are as follow:
Features or characteristics: This refers to the questions such as:
What features and characteristics does the product possess (e.g. 1000 W sound in a
television, flat picture, big screen etc.)?
What additional or special features does the product have (e.g. woofer etc.)?
Performance: This dimension speaks on how well a product runs or performs.
Aesthetic and/or appearance: This speaks about the beauty and aesthetic of product.
Durability: This tells us about how long the product will work.
Reliability: This aspect speaks about the following:
What is the probability of the product to survive without breakdown? What is the
guarantee that the product will not fail?
Serviceability: This dimension speaks on the aspects given below:
How easily, cheaply are the spare parts available and can be replaced?
How frequently is the service required?
What is the cost of servicing or repair or replacement?
Safety: This dimension speaks on the aspects given below:
What care has the manufacturer taken so that the product does not harm humans, assets, and
environment?
How much safe and secure is the product or service?
Customer service: This dimension speaks on the following aspects:
How is the behaviour of the seller before, during and after the sale of the product?
Treatment given by the sales staff to the customer.
INSPECTION
A component or product which is manufactured is required to perform certain functions. The act of
checking whether a component actually does the intended job or not, is called inspection. It means
checking the acceptability of the manufactured product. It measures the qualities of product in terms
of pre-decided standards.
Types of Inspection:
Based on the quantity of inspection:

Based on the number of components taken for inspection, we categorize inspection into two
types:
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1.
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Inspection can be categorized as per the quantity of inspection or the stage of inspection.
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(a) Census or 100% inspection: This is the inspection carried out on each and every item or
component with all the required parameters. Examples of this type of inspection are
preparation of voters list, inspection of a television, etc.
(b) Sampling inspection: When all the items are alike, it is not worth the time and money to
inspect all the items. In such a case, inspection of one or few items is sufficient. This type of
inspection is called sampling inspection.
2.
Based on the stage of inspection

Based on the stages of production or manufacturing process, inspection may be categorized into
the following five types:
(a) Inward or receipt inspection: Raw materials for manufacturing a product are inspected at
the receiving stage itself. This inspection is used to eliminate those materials that are not in
conformance with the standards.
(b) Routine Inspection: This is also called regular interval inspection. During the production
process, the materials or the operation may be inspected at a very regular interval. The
intention of this inspection is to foresee any defective product instead of passing it to the
next stage.
(c) Stage inspection: This is also called critical point inspection. A production process can be
divided into certain stages. Among all these stages of production process, a few stages or
points can be observed to be critical where close attention and care is needed. In stage
inspection, products are inspected at such critical stages.
(d) Outward or final inspection: This inspection is carried out at the final stage of the product,
just before the product goes into customers hands.
(e) Roving inspection or patrolling: Unlike the product moving in other inspections, the
inspector will be moving in this inspection. The inspector walks around on the shop floor
from machine to machine and checks samples of the work of various machine operators or
workers.
SYSTEMS OF QUALITY CONTROL
Statistical Quality Control (SQC)

SQC is a quality control system that performs inspection, testing, and analysis to conclude
whether the quality of each product is as per the laid quality standards or not. SQC makes
inspection more reliable, and at the same time, less costly. It uses three scientific techniques,
namely, sampling inspection, analysis of data, and control charting.
2.
Managerial Quality Control (MQC)

The knowledge of causes and defects and their rectification is QC engineering. The efficient use
of the engineering and statistical concepts is the managerial aspect of QC.
3.
Total Quality Control (TQC)

TQC consists of quality design and quality process. Under quality design, the standards are set
and the research on product as well as marketing research is done continually. Under quality
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1.
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Quality Control (QC) is a systematic and scientific system involving the application of industrial
and statistical techniques to control the quality of the manufactured product. The various systems of
QC can be grouped into the following three classes:

process, there are two types of inspections, namely, inspection in laboratories and inspection of
various stages of production.
COST OF QUALITY
A quality product is usually costly. It does not mean that a high cost product is always of high
quality. But quality costs high due to the following five major reasons:
a)
b)
c)
d)
e)
Cost of prevention of defects

Cost of detecting the defect
Cost of rejection and rework
Cost of reliability and warranty claim
Cost of accessories or additional material
STATISTICAL QUALITY CONTROL

One way to ensure a quality product is to build quality into the process. Statistica1 quality control
(SQC) is the term used to describe the set of statistical tools used by quality professionals.
Statistical quality control can be divided into two broad categories:
1.
Statistical process control (SPC): It involves inspecting a random sample of the output
from a process and deciding whether the process is producing products with characteristics that
fall within a predetermined range. SPC answers the question of whether the process is
functioning properly or not.
2.
Acceptance sampling: It is the process of randomly inspecting a sample of goods and
deciding whether to accept the entire lot based on the results. Acceptance sampling determines
whether a batch of goods should be accepted or rejected.
All three of these statistical quality control categories are helpful in measuring and evaluating the
quality of products or services. However, statistical process control (SPC) tools are used most
frequently because they identify quality problems during the production process. They also help us
identify a change or variation in some quality characteristic of the product or process. We will first
see what types of variation we can observe when measuring quality. Then we will be able to
identify specific tools used for measuring this variation.
Sources of Variation: Common and Assignable Causes
Variation in the production process leads to quality defects and lack of product consistency. Lets
look at the different types of variation that exist.
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The second type of variation that can be observed involves variations where the causes can be
precisely identified and eliminated. These are called assignable causes of variation. Examples of
this type of variation are poor quality in raw materials, an employee who needs more training, or a
machine in need of repair. In each of these examples the problem can be identified and corrected.
We can also assign the variation to a particular cause (machine needs to be readjusted) and we can
correct the problem (readjust the machine).
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No two products are exactly alike because of slight differences in materials, workers, machines,
tools, and other factors. These are called common, or random, causes of variation. Common
causes of variation are based on random causes that we cannot identify. These types of variation are
unavoidable and are due to slight differences in processing.

STATISTICAL PROCESS CONTROL METHODS

As we have learned so far, there are common and assignable causes of variation in the production of
every product. Using statistical process control we want to determine the amount of variation that is
common or normal. Then we monitor the production process to make sure production stays within
this normal range. That is, we want to make sure the process is in a state of control. The most
commonly used tool for monitoring the production process is a control chart.
Different types of control charts are used to monitor different aspects of the production process. In
this section we will learn how to develop and use control charts.
Developing Control Charts
A control chart (also called process chart or quality control chart) is a graph that shows whether a
sample of data falls within the common or normal range of variation. A control chart has upper and
lower control limits that separate common from assignable causes of variation. The common range
of variation is defined by the use of control chart limits. We say that a process is out of control when
a plot of data reveals that one or more samples fall outside the control limits.
The following figure shows a control chart for the Cocoa Fizz bottling operation.
Types of Control Charts

Control charts are one of the most commonly used tools in statistical process control. They can be
used to measure any characteristic of a product. The different characteristics that can be measured
by control charts can be divided into two groups: variables and attributes.
A control chart for variables is used to monitor characteristics that can be measured and have a
variety of values, such as height, weight, or volume. A control chart for attributes, on the other
hand, is used to monitor characteristics that have discrete values and can be counted. Often they can
be evaluated with a simple yes or no decision. Examples include colour, taste, or smell.
Control Charts for Attributes
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Control charts for variables monitor characteristics that can be measured and have a continuous scale, such
as height, weight, volume, or width. When an item is inspected, the variable being monitored is measured
and recorded. For example, if we were producing candles, height might be an important variable. We could
take samples of candles and measure their heights. Two of the most commonly used control charts for
variables monitor both the central tendency of the data (the mean) and the variability of the data (either the
standard deviation or the range). Note that each chart monitors a different type of information. When
observed values go outside the control limits, the process is assumed not to be in control. Production is
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stopped, and employees attempt to identifycause

the of the problem and correct it. Next we look at how
these charts are developed.
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Example (6.1): A quality control inspector at the Coca Fizz soft drink company has taken
twenty-five samples with four observations each of the volume of bottles filled. The data and the
computed means are shown in the table. If the standard deviation of the bottling operation is
0.14 ounces, use this information to develop control limits of three standard deviations for the
bottling operation.
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The resulting control charts is as follow:
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The resulting chart is as follows:
Control Charts for Attributes

Control charts for attributes are used to measure quality characteristics that are
counted rather than measured. Attributes are discrete in nature and entail simple yes-or-no
decisions. For example, this could be the number of non-functioning light bulbs, the proportion of
broken eggs in a carton, the number of rotten apples, the number of scratches on a tile, or the
number of complaints issued. Two of the most common types of control charts for attributes are
pcharts and c-charts.
P-charts are used to measure the proportion of items in a sample that are defective. Examples are
the proportion of broken cookies in a batch and the proportion of cars produced with a misaligned
fender. P-charts are appropriate when both the number of defectives measured and the size of the
total sample can be counted. A proportion can then be computed and used as the statistic of
measurement.
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C-charts count the actual number of defects. For example, we can count the number of complaints
from customers in a month, or the number of barnacles on the bottom of a boat. However, we
cannot compute the proportion of complaints from customers, or the proportion of barnacles on
the bottom of a boat.
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Example (6.4): A production manager at a tire manufacturing plant has inspected the number
of defective tires in twenty random samples with twenty observations each. Following are the
number of defective tires found in each sample:
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Example (6.5): The number of weekly customer complaints are monitored at a large hotel using a
c-chart. Complaints have been recorded over the past twenty weeks. Develop three-sigma control
limits using the following data:
ACCEPTANCE SAMPLING
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Acceptance sampling, another branch of statistical quality control, refers to the process of randomly
inspecting a certain number of items from a lot or batch in order to decide whether to accept or
reject the entire batch. Acceptance sampling is used when inspecting every item is not physically
possible or would be overly expensive. Acceptance sampling can be used for both attribute and
variable measures, though it is most commonly used for attributes.
Sampling Plans
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There are different types of sampling plans. Some call for single sampling, in which a random
sample is drawn from every lot. Each item in the sample is examined and is labelled as either
good or bad. Depending on the number of defects or bad items found, the entire lot is either
accepted or rejected. For example, a lot size of 50 cookies is evaluated for acceptance by randomly
inspecting 10 cookies from the lot. The cookies may be inspected to make sure they are not broken
or burned. If 4 or more of the 10 cookies inspected are bad, the entire lot is rejected. In this
example, the lot size N = 50, the sample size n = 10, and the maximum number of defects at which
a lot is accepted is c = 4. These parameters define the acceptance sampling plan.
Another type of acceptance sampling is called double sampling. This provides an opportunity to
sample the lot a second time if the results of the first sample are inconclusive. In double sampling
we first sample a lot of goods according to pre-set criteria for definite acceptance or rejection.
However, if the results fall in the middle range, they are considered inconclusive and a second
sample is taken. For example, a water treatment plant may sample the quality of the water ten times
in random intervals throughout the day. Criteria may be set for acceptable or unacceptable water
quality, such as .05 per cent chlorine and .1 per cent chlorine. However, a sample of water
containing between .05 per cent and .1 per cent chlorine is inconclusive and calls for a second
sample of water.
In addition to single and double-sampling plans, there are multiple sampling plans. Multiple
sampling plans are similar to double sampling plans except that criteria are set for more than two
samples. The decision as to which sampling plan to select has a great deal to do with the cost
involved in sampling, the time consumed by sampling, and the cost of passing on a defective item.
In general, if the cost of collecting a sample is relatively high, single sampling is preferred.
HUMAN RESOURCES MANAGEMENT

Human resource management refers to the policies, practices, and systems that influence
employees behaviour, attitudes, motivation, and performance. Human resource practices play a key
role in attracting, motivating, rewarding, and retaining employees. Other human resource
management practices include recruiting employees, selecting employees, analyzing and designing
work, compensating employees, and developing good labour and employee relations.
FUNCTIONS OF THE HUMAN RESOURCE MANAGER
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1. Organization planning and development

Organizational planning is associated with the determination of long-term and short-term
objectives. These include determination of product, type of production, type and type of
layout. Organizational development consists of designing an organizational structure
through the division of all tasks into manageable and efficient units and fixing responsibility
and authority.
2. Staffing (recruitment, selection, and placement)
Staffing may be defined as the managerial function of hiring and developing the required
personnel to fill the various positions in the organization.
3. Training, and development
Training and development is the process of making the new entrants and the existing
employees learn the required skills that enable them to meet the challenges of the
employment.
48
Generally, the functions of HR manager are precisely stated as follow:

4. Wage and salary administration
Wage administration is the process of developing and operating a suitable wage and salary
program. A good wage administration system attracts the employees to adhere to their
responsibilities and motivates them to work willfully.
5. Motivation and incentives
This function is concerned with the creation of environment in which the employees may
get motivated in terms of both psychological and financial aspects.
6. Employee welfare services and benefits
This function includes welfare activities and the development of safety provision inside the
workshop for the safety and health of the employees.
7. Employee records
Proper employee records like service registers must be maintained continuously at all levels
in the organization. These records include information relating to personal qualification,
leave particulars, promotions, and disciplinary actions etc.
8. Industrial relations
This function focuses on industrial legislation, including handling unrest and conflict
resolutions, disciplinary matters, and dealing with trade unions.
9. Personnel research and audit
The personnel manager should gather data regarding the quality or work, wage, productivity,
absenteeism, labour turnover, and strikes etc. for improving personnel policies and
procedures.
PROCESS OF HUMAN RESOURCE PLANNING AND MANAGEMENT

Human resource management process is continuous flow of events that includes human resource
planning, recruitment, selection, placement, induction, training and development, performance
appraisal, promotion, transfers, demotions etc.
Human Resource Planning
Human resource planning includes the identification, analysis, forecasting, and planning of changes
needed in the human resource area to help the company meet changing business conditions. Human
resource plans can help identify where employees with certain types of skills are needed in the
company.
Recruitment: It includes the identification of existing sources of the labour market, development of
new sources, and the procurement of a larger number of appropriate applicants so that good
selection is possible.
Selection: It is concerned with minimizing the number of applicants by organizing a set of activities
to eliminate the undesirable applicants and to select the most desirable.
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Placement: Placement is the function of fitting the selected person to the job. Soon after joining,
the candidates provisionally selected are placed in the jobs for which they are chosen.
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Placement and Induction
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Induction and orientation: Induction is the process of introduction of an employee to the
organization and to the job by providing all the possible information about the organization, job,
people, and the environment. It helps the new employees to quickly adjust with the new
environment.
TRAINING AND DEVELOPMENT,

JOB EVALUATION AND MERIT RATING
Training refers to a planned effort by a company to facilitate employees learning of job-related
competencies. These competencies include knowledge, skills, or behaviours that are critical for
successful job performance. The goal of training is for employees to master the knowledge, skill,
and behaviours emphasized in training programs and to apply them to their day-to-day activities.
There are different types of training and development methods. Traditional Training Methods are
presentational, hands-on, and group training methods. These include on-the-job training,
simulations and games, lecture, and various group building methods such as action learning and
team training.
PRESENTATION METHODS
Presentation methods are methods in which trainees are inactive recipients of information. Lectures
and audio-visual techniques are presentation methods. It is important to note that instructor-led
classroom presentation methods may include lectures, video, workbooks and manuals, CD-ROMs,
and games. That is, a mix of methods can actively engage trainees in learning and can help transfer
of training to occur.
Lecture: In a lecture, trainers communicate through spoken words what they want the trainees to
learn. The communication of learned capabilities is primarily one-wayfrom the trainer to the
audience.
Audio-visual Techniques: Audio-visual instruction includes overheads, slides, and video. Video is
a popular instructional method. Video is, however, rarely used alone. It is usually used in
combination with lectures to show trainees real-life experiences and examples.
HANDS-ON METHODS
Hands-on methods are training methods that require the trainee to be actively involved in learning.
These methods include on-the-job training, simulations, case studies, business games, role plays,
and behaviour modelling.
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Self-Directed Learning: Employees in self-directed learning take responsibility for all aspects of
learningincluding when it is conducted and who will be involved. Self-directed learning for
salespersons could involve reading newspapers or trade publications, talking to experts, or surfing
the internet to find new ideas related to the salesperson industry.
48
On-the-Job Training (OJT): On-the-job training (OJT) refers to new or inexperienced employees
learning in the work setting and during work by observing peers or managers performing the job.
OJT is one of the oldest and most used types of informal training.

Apprenticeship: Apprenticeship is a work-study training method with both on-the-job and
classroom training. The majority of apprenticeship programs are in the skilled trades such as
plumbing, carpentry, electrical work, and pipe fitting.
GROUP BUILDING METHODS
Group building methods are training methods designed to improve team or group effectiveness.
Group building methods include adventure learning, team training, and action learning.
Adventure Learning: Adventure learning focuses on the development of teamwork and leadership
skills through structured activities. Adventure learning may involve challenging physical activities
such as mountain climbing.
Team Training: Team training coordinates the performance of individuals who work together to
achieve a common goal. There are the three components of team performance: knowledge,
attitudes, and behaviour. The behavioural requirement means that team members must perform
actions that allow them to communicate, coordinate, and complete complex tasks to accomplish
their objective. The knowledge component requires team members to have memory structures that
allow them to function effectively in unanticipated or new situations. Team members beliefs about
the task and feelings toward each other relate to the attitude component.
Action Learning: Action learning gives teams or work groups an actual problem, have them work
on solving it and committing to an action plan, and then holds them accountable for carrying out the
plan. Companies use action learning to solve important problems, develop leaders, quickly build
high-performance teams, and transform the organizational culture.
EMPLOYEES DEVELOPMENT
Employee development involves more than a training program. Development refers to formal
education, job experiences, relationships, and assessments of personality and abilities that help
employees perform effectively in their current or future job and company.
APPROACHES TO EMPLOYEE DEVELOPMENT
Four approaches are used to develop employees: formal education, assessment, job experiences, and
interpersonal relationships. Many companies use a combination of these approaches.
Formal Education: Formal education programs include off-site and on-site programs designed
specifically for the companys employees, short courses offered by consultants or universities,
executive MBA programs, and university programs in which participants actually live at the
university while taking classes.
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Job Experiences: Most employee development occurs through job experiences. Job experiences
can be used for employee development in various ways. These include enlarging the current job, job
rotation, transfers, promotions, down-ward moves, and temporary assignments, projects, and
volunteer work.
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Assessment: Assessment involves collecting information and providing feedback to employees

about their behaviour, communication style, or skills. Assessment is most frequently used to
identify employees with managerial potential and to measure current managers strengths and
weaknesses.

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a. Job enlargement: Job enlargement refers to adding challenges or new responsibilities to an

employees current job.
b. Job Rotation: Job rotation involves providing employees with a series of job assignments
in various functional areas of the company or movement among jobs in a single functional
area or department.
c. Transfers, Promotions, and Downward Moves: In a transfer, an employee is given a
different job assignment in a different area of the company. Promotions are advancements
into positions with greater challenges, more responsibility, and more authority than in the
previous job. A downward move occurs when an employee is given a reduced level of
responsibility and authority.
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Notes Industrial Managment

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Industrial Management (MGT-427)

For B.Tech (Civil, Electrical)

Aftab Alam MBA.(Hrm)

Industrial Management (MGT-427)

Industrial Management (MGT-427)

Before the establishment of Industry

During the establishment of Industry

Aftab Alam MBA.(Hrm)

Industrial Management (MGT-427)

Wage and wage incentive fixation

Production systems (or types of production),

Aftab Alam MBA.(Hrm)

Industrial Management (MGT-427)

INTERMITTENT PRODUCTION SYSTEM

Industrial Management (MGT-427)

CONTINUOUS PRODUCTION SYSTEM

PRODUCTION PLANNING AND CONTROL

Industrial Management (MGT-427)

Aftab Alam MBA.(Hrm)

Industrial Management (MGT-427)

Industrial Management (MGT-427)

Industrial Management (MGT-427)

Aftab Alam MBA.(Hrm)

Industrial Management (MGT-427)

Facility layout study Horizontal flow pattern

PHASE I: FACILITY LOCATION STUDY

By: Gohar Ali (SPCT

Cheap availability of land

Industrial Management (MGT-427)

By: Gohar Ali (SPCT

Industrial Management (MGT-427)

By: Gohar Ali (SPCT

(a) Proper and efficient utilization of available floor space

Industrial Management (MGT-427)

By: Gohar Ali (SPCT

While deciding factory or unit or establishment or store, a small-scale businessman should

FACTORS INFLUENCING LAYOUT

Industrial Management (MGT-427)

INDUSTRIAL ENGINEERING AND METHODS MANAGEMENT

By: Gohar Ali (SPCT

1. To define the tasks and specify the jobs.

Industrial Management (MGT-427)

To find the ways and means for effective utilization of resources.

Before the establishment of Industry

During the establishment of Industry

By: Gohar Ali (SPCT

Industrial Management (MGT-427)

After the establishment of Industry

By: Gohar Ali (SPCT

d) Modernization and standardization: We know that anything new is attractive to most of

Industrial Management (MGT-427)

The entire concept of work study is

The answer for the first question is method

Role of Work Study in Improving Productivity

manpower, machinery and equipment requirements,

By: Gohar Ali (SPCT

WORK STUDY AND PRODUCTIVITY

Industrial Management (MGT-427)

Selection of job/problem for method study

By: Gohar Ali (SPCT

Industrial Management (MGT-427)

By: Gohar Ali (SPCT

Industrial Management (MGT-427)