MANAGEMENT FOR

ENGINEERS
MEM5336

TUTOR MARKED ASSIGNMENT 3

C. W. S. GOONETILLEKE
409064899
17/12/2010

Q1.
a)
Inventory control systems are used for make a rational production
system. The inventory control system help to achieve smooth production flow
obtain reasonable service to customers on hundreds of items regarded as stock
items. Therefore we can say the inventory systems maintain information about
activities within firms that ensure the delivery of products manufacturing,
warehousing, ordering, sales and receiving. Also inventory control is help to
keep stocks low, but not too law, make value purchases to obtain lower prices,
get rid of absolute items and maintain a good assortment product.

b)
Lot size model
Lot size model is a static model which is applicable to both types of
ordering policies.
Stock Level
S

Lot Q
Size
s

T = Time between
Arrival of the order
Number of order placed per unit time=

The costs involves are:

A= Fixed administrative cost of placing
I =Stock holding cost

Q=

This formula is known as Wilson's formula and it gives the minimum

batch size.

Lot size model with back orders allowed

In inventory management, there can be a situation where if demand
occurs when the stock level is zero, demand is back ordered until replacement
order arrives. A penalty cost of (P) per unit back ordered per until time will arise.
2 (+)

Q=

I=stock holding cost

Amount back ordered

2

S=

(+)

Lot size model with discounts

If the unit cost per item is not constant, there should be need lot size
models with discounts. Discounts can be considered as two types.
1.
2.
1.

All units discounts

Increment discount

All unit discount

Cost for
the lot

Unit
Cost
C1
C2
C3

N0

N1

N2

N3

Lot Size

N0

N1

N2

N3

Lot Size

K
Total
Yearly
cost

N0

N1

QW N2

N3

The gradient of the cost for the lost against lot size graph decrease when
the lot size increases. The average yearly cost is given by,
K=

+ + C3
2

2.

Incremental discount

The discounts apply only to additional order in the incremental discount

system.
Cost for
the lot

input interval
models
N0Fixed N1
N2

N0

N1

N2

N3

In the fixed input interval system, if we assume that usage or demand is

constant and known, then this system of ordering is in both practice and theory,
identical to the maximum minimum or order quantity system.

= Order interval

T=

Q2.
a)

Demand

Capacity of production system remains constant, because the maximum

capacity of a production system is remains more or less constant. Demand
fluctuating can be shown as follows.

Capacity

Time

When we consider the graph demand is higher than the capacity in the
certain period and some other periods demand is lower if the capacity is
maintained at constant level, higher demand may not be fulfilled. While there is
an excess production during lower demand period.
Sometimes the production output is adjusted within the certain limits. But
in that system, it may not be able to fully satisfy the fluctuating level of demand.

Demand

The graph is shown in below about that condition.

OT Production
Normal Production

Time

In many production systems, the capacity is maintained at such a level.

So that the cumulative demand is always lower than cumulative production.

Cumulative Demand

Constant Capacity
Secondary production
rate

Buffer
Stock

Cumulative
demand

Time

b)
The resources can be classified as following.
Capacity Increased

Capacity decreased

Supply schedules can be Supply schedules should

increased.
Reduced
Consumed
materials

and

be reduced.
materials The extra workers transfer

the

substitute

more

readily available materials.

Job opportunities can be

to other jobs.
Reduced

unnecessary

expenditures.

provided.
Speed and load increases Maintains should be done
should be scheduled.
Machines

at correct time period.

Extra machines can be

transferred

to

other

functions.
Over times, shifts can be It can be given shifts.
Labors

Can be given overtimes.

reduced.
Holidays can be given.
Sub

contracts

can

be Retrieve some previously

taken.
All resources

sub contracted work.

Can be brought materials

rather

than

made

products.

c)
This algorithm minimizes the cost of transporting goods from M origins to
N destinations along m*n direct routes from origin to destination.
If the sum of the demands at the m resources equals the sum of the
demands at the destinations, then the problem is called balanced.

Q3
a)
1. Planned maintenance.
The planned maintenance is essential in cost reduction planned
maintains increase profits. The primary objective for any business is to produce
profits for the owner. There is a probability of minimize the falling of an intem
when planned maintenance is done in company.
Advantages of the planned maintenance

Releases front line foremen from major planning duties and

allows them more time to supervise their crews.

Provides procedures to plan, execute, monitor and control

maintenance resources.

Reduces delays in waiting for men, material, tools after a job is in

progress.

2.

Provides for systematic collection of materials prior to plan jobs.

Preventive maintenance

Preventive maintenance is planned maintenance of plant and equipment

that is designed to improve equipment life avoids any unplanned maintenance
activity. Preventive maintenance includes painting, lubrication, and cleaning,
adjusting and minor component replacement to extend the life to equipment
facilities.
3.

Scheduled maintenance

Schedule maintenance utilities a previously developed maintenance

scheduled for each machine tool. While this is broadly practiced technique in
many manufacturing organizations, it does posses some distinct disadvantages.
The scheduled maintenance may take place too soon, while the machine still
operates well or it may come too late if the machine fails before the scheduled
maintenance time.

4.

Emergency maintenance

Situations requiring immediate is in attention. Because failure or any

facilities that could course significant damage to the building, building systems
and equipment. These situations could create unmanageable or unsafe
condition that would expose personal to significant possibility of harm.
5.

Corrective maintenance

Corrective maintenance is defined as maintenance work which involves

the repair or replacement of components which have failed or broken down for
failure modes which lend themselves to condition monitoring, corrective
maintenance should be the result of regular inspection which identifies the
failure in time for corrective maintenance to be planned and scheduled, then
performed during a routing plant outage
When corrective maintenance is done, the equipment should be
inspected to identify the reason for the failure and to allow action to be taken to
eliminate or reduce the frequency of similar failures. These inspections should
be included in the work plan.

b)
1) Take the detailed list of equipment which is somewhat similar to the
physical assts register of a company. The physical assets register should
provide following information

Includes all the equipment in the plant.

Specifications and technical details of every equipment.

All necessary instructions for the operations of equipment.

Suitable identification number or code number to facilitate locating

the equipment in the plant.

2) take good overall knowledge of the plant (about working hours, any
problematic equipment)

Q4.
a)
Control cycle
Control consists of a series of activities depicted in the form of a control
cycle. It is also known as demining control cycle. The control cycles displays
the dynamic activity which leads to improvement. Control is holding on to a
current level. It could be product Quality, cost, delivery, inventory etc.

ACT

PLAN

CHECK

DO

Control cycle
CONTROL CICLE
The control circle concept began in Japan early 1960s. Control circle is a
voluntary group of workers who have sheared area of responsibility. It is a small
group of employees doing similar work, voluntarily meet for an hour each week
to discuss their quality problems, investigate causes, recommend solutions and
take corrective actions. In control circle there is some points to make out.
One thing Is that a circle primarily a normal crew- a group of people who
work together to produce a part or service. A second point is a voluntary
programme. This is probably the single most unique feature, one that is
absolutely necessary. This factor is assures the workers that is not just another
management programme. The third point is there is nothing sacred about the
one hour meeting, or meeting every week but generally it has been found that
this represents the best plan.

The control circle is somewhat standard from one company to another

company. The facilitator of a company plays a key role in training circle leaders
and in helping these leaders and helping these leaders to train their members.
Normally there are five to ten members. If the department requires more
than circle then a second leader is trained, and a second circle is formed.

b)
1. Pareto diagrams
A Pareto diagram is a simple bar chart that ranks related measures in
decreasing order of occurrence. The principle was developed by Vilfredo
Pareto, an Italian economist and sociologist who conducted a study in Europe in
the early 1900s on wealth and poverty.
The purpose of the Pareto diagram is to separate the significant aspects
of problem from the trivial ones. By graphically, separating the aspects of a
problem from the trivial ones. By graphically separating the aspects of a
problem, a team will know where to direct its improvement efforts. Reducing the
largest bars identified in the diagram will do more for overall improvement than
reducing the smaller ones.
6
5

4
3
2
1
0

Pareto diagram
2. Cause and effect diagrams
A cause and effect diagram is a graphical technique for grouping
peoples ideas about the causes of a problem.

Using a cause and effect diagram forces the team to consider the
complexity of the problem and to take an objective look at all the contributing
factors. It helps the team to determine both the primary and the secondary
causes of a problem and is helpful for organizing the ideas generated from a
brainstorming session.
It is a useful diagram for problem analysis. There, a cause and effect
diagram should be used before deciding how to deal with the problem.
3. Control charts
If analysis of the control chart indicates that the process is currently
under control then data from the process can be used to predict the future
performance of the process. If the chart indicates that the process being
monitored is not in control, analysis of the chart can help determine the sources
of variation, which can then be eliminated to ring the process back into control.
A control chart is a specific kind of run chart that allows significant change to be
differentiated from natural variability of the process.
The purpose of the control chart is to allow simple detection of events
that are incisive of actual process change. This simple decision can be difficult
where the process characteristic is continuously varying; the control chart
provides statically objective criteria of change. When change is detected and
considered good its cause should be identified and eliminated.
4. Check sheets
If a system is in operation where data can be easily gathered in the
factory and is automatically translated in to easy to use form, action can be
taken to achieve production results. The check sheets made with this objective
in mind. It is designed to be clearly visible and instantly perceivable as a whole.
5. Histograms
The histograms are a summary graph showing a count of the data points
falling in various ranges. The effect is a rough approximation of the frequency
distribution of the data.

The groups of data are called classes, and in the context of a histogram
they are known as bins, because one can think of them as containers that
accumulate data and fill up at a rate equal to the frequency of that data class.
Histograms are useful data summaries that convey the following
information:

The general information of the frequency distribution.

Symmetry of the data distribution and whether it is skewed.

Modality- unimodal, bimodal, or multimodal

The histograms provides a graphical summary of the shape of the datas

distribution. It often is used in combination with other statically summaries which
conveys the median, quarties, and range of the data.

c)
ISO 9001 in 2008
ISO 9001 is a quality management standard. It applies to all types of
organizations. It doesnt matter what size they are or what they do. It can help
both product and service organizations achieve standards of quality that are
recognized and respected throughout the world.
The requirements have achieved these objectives, and the purpose of
this additional guidance is to explain the intent of the new standard with specific
regarded to documentation.
ISO 9001 allows organization flexibility in the way chooses to document
its quality management system (QMS). This enables each individual
organization to develop the minimum amount of documentation needed in order
to demonstrate the effective planning, operation and control of its processes
and the implementation and continual improvement of the effectiveness of its
QMS.

ISO 14000
ISO 14000 is a series which stands for environmental management
standards exist to help organizations minimize how their operations negatively
affect the environmentally oriented requirements, and continually improve in the
above.
ISO 14000 is similar to ISO 9000 quality management in that both pertain
to the process of how a product is produced, rather than the product itself.
The ISO 14000 family includes most notably the ISO14001 standard,
which represents the core set of standards used by organizations for designing
and implementing an effective environmental management system. The major
objective of the ISO 14000 series of norms is to promote more effective,
system-based, and flexible and reflect the best organizations and the best
organizational practices available for gathering, interpreting and communicating
environmentally relevant information.

Q5.
a)
Project management is a discipline of planning, organizing, securing and
managing resources to bring the successful completion of specific engineering
project goals and objectives.
When we considered about the phases involved there is phased
approach identifies a sequence of steps to be completed. In the traditional
approach, we can distinguish several components of a project in the
development of a project.

Identification

Formulation

Implementation

Commissioning

Operation

Evaluation

Identification
This is a stage at which the project is identified as an idea or a possibility
worthily of further investigation and study.
Formulation
The formulation involves the definition of alternatives for the project,
followed by the selection planning of the optimum alternative, covering such
aspects as the size, location, technical details, markets and industrial
arrangements.
Implementation
Following detailed design there may well be another period of appraisal
and negotiation to finalize details of the plan. When this has been completed,
implementation of the project can commence. Implementation is the stage at
which the institutions are established and facilities constructed. It is the stage
which involves the disbursement of the largest fraction of project funds.
Commissioning
Between implementation and operations it is possible to distinguish the
process of commissioning or mobilization when the constructed systems are
first put to solution. This process, through ignored in most versions of the
project life cycles, is important to subsequent successful operations.
Operation
The operation process of the project is the period during which the
outputs created by project implementation are put to work and yield a flow of
benefits. Strictly speaking, the project phase would have been completed by the
time operations commence.
Evaluation
Evaluation consists of investigating and reviewing the effects of the
competed project, to see whether the benefits which were planned to flow from
it have been realized, and whether these benefits have had their intended
consequence.

b)
Earliest start earliest finish
Latest start and latest finish
Slack time
In project management, we measure from the slack time is amount of
time that a task in a project can be delayed without causing a delayed to:

Subsequent task

Project completion date

Critical path method

In 1957, DuPont developed a project management method designed to
address the challenge of shutting down chemical plants for maintenance and
then restarting the plants once the maintenance had been completed. Given the
complexity of the process, they developed the critical path method for managing
such projects.
Critical path method provides the following benefits.

Provides a graphical view of the project.

Predicts the time required to complete the project.

Shows which activities are critical to maintaining the schedule and

which are not.

Critical path method models the activities and events of a project as a
network. Activities are depicted as nodes on the network and events that signify
the beginning or ending of activities are depicted as arcs or lines between the
nodes.

c)

1
3

D
B

start

A
E

5
1
2

F
J

Time taken to project=4+5+3+3=15

Critical path=ACEI