Q4.

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.
(page no.5 graph 2.1)

Number of order placed per unit time= Q

The costs involves are:
A= Fixed administrative cost of placing
I =Stock holding cost
Q=

2 A
I

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.
Q=

2 A (I + P)
I
P

I=stock holding cost

Amount back ordered

S=

2 AI
P( I + P)

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 consider as two types.
1. All units discounts
2. Increment discount

1. All unit discount

(graph 2.3, 2.4, 2.5 in page no. 9)
The gradient of the cost for the lost against lot size graph decrease as the lot size
increases. The average yearly cost is given by,
K=

A
Q

IQ

2 +C3

2. Incremental discount
The discounts apply only to additional order in the incremental discount system.
(graph 2.6 in page no.12 and graph 2.7 in page no. 13)
3. Fixed input interval models
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.
oredr quantity system
= Order interval
demand rate
Q
T=

Q2.) (a)
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.
(graph 4.1 in page no. 32)
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 excess production during lower
demand period.
Some times 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. The graph of
that condition shown in below.
(graph4.2 in page nu. 33)
In many production systems, the capacity is maintained at such a level. So that the
cumulative demand is always lower than cumulative production.
(Graph 4.3 in page no.33)

b.)
the resources can be classified as following.
Capacity Increased
Consumed materials

Machines

Capacity decresed

Supply schedules can Supply schedules should

be increased.
be reduced.
Reduced the materials The extra workers transfer
and substitute more
to other jobs.
unnecessary
readily
available Reduced
expenditures.
materials.
Job opportunities can be
provided.
Speed
and
load Maintains should be done
increases should be
at correct time period.
scheduled.
Extra machines can be
transferred
to
other

Labours

All resources

functions.
Over times, shifts can be It can be given shifts.
Can be given overtimes.
reduced.
Holidays can be given.
Sub contracts can be Retrieve some previously
taken.
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.
Q.3) (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.
Provides for systematic collection of materials prior to plan jobs.

2. Preventive maintenance
Preventive maintenance is planned maintenance of plant and equipment that is
designed to improve equipment life avoid any unplanned maintenance activity.
Preventive maintenance includes painting, lubrication, 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 operate well or it may come too late if
the machine fails before the scheduled maintenance time.
4. Emergency maintenance
Situations requiring immediate attention because of failure or around any facilities that
could course significant damage to the building, building systems and equipment. These
situations could create unmanageable or unsafe condition that would wxpose 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

CHEC
K

PLA
N

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.(page 138 graph)
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.(page 139 graph)

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. (Page 140 graph)

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

(page 112 graph-project life cycle)

Identification
This is a stage at which the project is identified as an idea or a possibility worthly
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

E
C
5

1
2

F
J

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

Critical path=ACEI