OPERATIONS MANAGEMENT

Q1. What is “Operations Management”? What are the

objectives of Operations Management? Enlist key
elements of Operations Management.

Answer:

Operations Management

The design, operation, and improvement of the production systems that create the
firm’s products or services.
Operations Management is primarily concerned with transformation processes:

Inputs  Transformation Processes  Outputs

Inputs include following components:

• Raw materials
• Labor
• Energy
• Knowledge

All organizations and all production of goods and services involve transformation of
some form (physical, in time, in location). It includes the following components:

• Facility
• Capacity
• Process
• Control

An effective transformation process:

• Works to lower the cost of creating the product; or to
• Create a better product for the same cost.

Outputs include following components:

• Goods
• Services
• Information

Operations management involves making decisions about the entities and activities
within systems of processes.
Beyond the central transformation process, a business can be seen as a collection of
processes to be designed, managed, and improved.

Examples of OM Decisions

• Intel needs to construct a new fabrication plant to produce its next

generation of computer chips.
– Where should it build the facility?
– What should the capacity of the facility be?

• United Airlines needs to allocate resources to meet all of its customer demand
for air travel next month.
– How should it assign different-sized aircraft to flight routes?
– How should it assign crews to flights while adhering to government
regulations and union agreements?
– How should it schedule aircraft maintenance?

• Charter Cable needs to plan tomorrow’s service visits.

– Which customers will get serviced?
– How should customer site visits be assigned to service personnel?

 All decisions in operations management involve trade-offs.

Typical operations performance measures:

• Profit
• Cost
• Productivity
• Quality
• Delivery
• Customer service
KEY: Always look at total cost when making a decision!

Objectives of Operations Management:

The four basic requirements – right quality, right quantity, right time & right price, are
the four basic requirements of the customer and also determine the extent of customer
satisfaction.
Thus the objectives of Operations Management:

• Producing the right kind of goods and services that satisfy customer’s needs. This
is effectiveness objective.

• Maximizing output of goods and services with minimum resource inputs. This is
efficiency objective.
 • Ensuring that goods & services produced conform to pre-set quality
specifications. This quality objective.

• Minimizing throughput time – the time that elapses in the environment or

conversion process by reducing delays, waiting time and idle time. This is lead-
time objective.

• Maximizing utilisation of manpower, machines etc. (capacity utilization

objective).

• Minimizing cost of producing goods or rendering a service. This is cost-objective.

Elements of Operations Management:

(i) Product Selection and Design:

The right kind of products and good design of the products are crucial for the
success of an organization. A wrong selection of the product and/or poor design of the
products can render the company’s operations ineffective and non-competitive.
Products/services, therefore, must be chosen after detailed evaluation of the
products/services alternatives in conformity with the organization’s objectives.

(ii) Process Selection and Planning:

Process Selection and planning is the key objective of Operations Management.
Process selection decisions and Planning is an important choice. It includes decisions
concerning choice of technology, equipment, machines, and material handling systems,
mechanisation and automation. It involves detailing of processes of resource conversion
required and their sequence.

(iii) Plant Location:

Plant Location is strategic decision and once plant is set-up at a location, it is
comparatively immobile and can be shifted later only at a considerable cost and
interruption of production. Therefore, it is important to choose the right location, which
will minimise total “delivered-customer” cost. Locational decisions involve evaluation of
locational alternatives against multiplicity of which are operationally advantageous to the
organization.

(iv) Plant Layout and Materials Handling:

Plant Layout is considered to be an important element of Operations
Management. It is concerned with relative location of one department with another in
order to facilitate material flow and processing of a product in the most efficient manner
through the shortest possible distance and through the shortest possible time. A good
layout reduces materials handling cost.
Since, the layout integrates the factors of production, the selection of the layout depends
on the nature of the production systems. Only a good layout can ensure minimum
materials handling.
(v) Capacity Planning:
Capacity planning concerns determination and acquisition of productive resource
to ensure that their availability matches the demand. Capacity decisions have a direct
influence on performance of the production system in respect of both resource
productivity and customer service. Capacity planning decisions can be short-term as well
as long-term decisions. Long-term capacity planning decisions concern
expansion/contraction of major facilities require in the conversion process, economics of
multi-shift operation, development of vendors for major components, etc. Short-term
capacity planning decisions concerns issues like overtime working, shift adjustments, etc.
Break-even analysis is valuable tool for capacity planning.

(vi) Production Planning and Control (PPC):

Production planning is the system for specifying the production procedure to
obtain the desired output in a given time at optimum cost in conformance with specified
standard of quality, and control is essential to ensure that manufacturing takes place in
the manner stated in the plan.
Production planning is pre-production activity associated with determination of
optimal production schedule, sequence of operations, etc. Production control is a
complementary activity to production planning and it involves keeping track of what is
happening & taking remedial action when the progress is behind schedule.
Production planning is a centralized activity and it includes functions such as
order preparation, materials control, process planning and schedule. Production is a
diffused activity, which includes dispatching, progressing and expediting functions.

(vii) Inventory Control:

Inventory control deals with determination of optimal inventory levels of raw
materials, components, parts, tools, finished goods, spares & supplies to ensure their
availability with minimum capital lock up. Material requirement Planning (MRP) & Just-
In-Time (JIT) are the latest techniques that can help the firm to reduce inventory.

(viii) Quality Assurance and Control:

Quality assurance system includes setting standards of quality, inspections of
purchased and sub-contracted parts, control of quality during manufacture and inspection
of finished product including performance testing, etc.

(ix) Work Study and Job Design:

Work-study is concerned with improvement of productivity in the existing jobs
and the maximization of productivity in the design of new jobs. Two principles
component of work-study are –
a. Method Study
It has been defined (BS 3138) as the systematic recording and critical
examination of the existing and proposed ways of doing work, as a means of
developing and applying easier & more effective methods and reducing costs.
 b. Work Measurement
It is defined as the application of techniques designed to establish the time
for a qualified worker to carry out a specified job under specified conditions and
at a defined level of performance. Since the correct standard of performance can
be set approximately only after the work method has been standardized, method
study should precede work measurement.

(x) Maintenance and Replacement:

Maintenance and replacement involve selection of optimal maintenance to ensure
higher equipment availability at minimum maintenance and repair cost. Preventive
maintenance, which includes preventive inspection, plant lubrication, periodic, cleaning,
planned replacement of parts, etc. Replacement decisions concerning machines are
basically financial investment decisions but have a major influence on the efficiency of
the production system.

(xi) Cost Reduction and Cost Control:

Effective production management must ensure minimum cost of production and
in this context cost reduction and cost control acquires significant importance.

Conclusion:
In today’s world, lot of changes has taken place in operations management. The
industry today has well planned layouts, materials handling equipments, manufacturing
facilities and trained manpower. In past, the education was limited to knowledge of art,
literature, and languages but today it has vase scope. Today, production man is required
to know commerce, economics and technology.
Q3 a. Why are locational decisions important? What factors
should be taken into account while deciding of a unit to
manufacture washing machines?

Answer
Locational decisions concern both manufacturing and assembly units as well as
service organizations. An ideal plant location is important for business activities both in
manufacturing and service category.
Locational decisions are important in the following way when:
(i) A new manufacturing (or servicing) unit is to be set up.
(ii) Existing plant operations are difficult to expand due to poor selection of the
site earlier.
(iii) The growth of the business makes it advisable to establish additional facilities
in new territories.
(iv) There is emergence of new social, political or economic conditions, which
suggest a change in the location of the existing plant.
(v) The product developments have outweighed the advantages of the existing
plant.
(vi) The changes in the industrial policy of the government.

Factors of Plant Location:

Plant Location studies are conducted in three phases under the following three
factors:

Regional factors:
Regional factors decide the overall area (or region) within the country. Such
factors are:
(i) Proximity to Market:
Every company is in business to market and it can survive only if their
product reaches the consumers on time and at through competitive price. The
ratio of selling costs to sales generally increases with distance. Therefore, in
the choice of the location of the plant, the factor of “proximity to the market “
is given the highest priority.

(ii) Proximity to Sources of Raw Materials:

Proximity to supply of raw materials factor assumes greater importance if
raw materials are of perishable nature or if they are expensive to transport,
or if processing substantially reduces their weight. Raw materials can be
classified into two categories on the basis of their influence:
(a) Gross materials are those which loose weight in the process of
transformation into finished goods, e.g. Iron ore, coal, limestone,
sugarcane, etc. Industrial places are located nearer to their sources of
availability.
(b) Pure materials are those, which add their weight to the finished product in
the process, manufacture e.g. Cotton textiles, woolen, silk fabrics, etc. The
 place of consumption where the final product is more expensive to carry
because it is more bulky and more perishable than its raw materials.
Proximity to sources of raw materials is equally important for small units.

(iii) Infrastructural Facilities:

Infrastructural facilities consider availability of utilities like power, water,
disposal of water-waste, etc. These form the life-blood of many types of
industries without which their activities may come to a stand still.
Underestimating the need of anyone of the utilities can be extremely costly
and inconvenient.

(iv) Transport Facilities:

Transportation cost to value added is a key determinant of the plant location.
The structure of the transportation cost depends on (i) characteristics of the
commodity (ii) average distance of shipment (iii) medium of shipment: rail,
road, air & sea.

(v) Labor and Wages:

Labor & wages are the important factors for plant location. Importing
labor from outside is usually costly while labor locally is better since problem
of arranging accommodation & other related problems do not arise.
Productivity of labor is a factor of equal importance. Inhabitants of certain
areas are more productive than others. Prevailing wage pattern, living costs
and industrial relations are other related, which need to be taken into account.

(vi) Legislation and taxation:

The policies of the state government and local bodies relating to issuer of
licenses, building codes, labor laws, etc, are the factors in selecting/rejecting a
particular community/site. In order to disperse industries and ensure balanced
economic growth, both central and state government offer a package of
incentives for setting up industries in particular locations. Since taxes & duties
levied by the state government and local bodies substantially influence
product cost, the incidence of such taxes must be taken into account while
selecting a community or site.

(vii) Climatic conditions:

Climatic factors may not have a major influence these days because of
modern air conditioning facilities available today. However, it may be
important factor for certain industries like textile mills, which require high
humidity.

Community Factors:
 Community factors decide the selection of the plant location within the region.
Such factors are:
(i) Industrial and Labor Attitudes:
Community attitudes towards hostile trade union activities are an
important factor. Locating facilities in a certain region/community may not be
desirable as frequent labor problems and interruptions are harmful to the plant
in the long run. Political situation in the state and attitude of the government
towards labor activities also influences selection of the site for the plant.
(ii) Safety Requirement:
Safety factor may be important for certain industries like nuclear power
plants, explosive factories, etc. Location of such industries close to border
areas is undesirable.

(iii) Community Facilities/Social Infrastructure:

Community facilities imply accommodation, educational, entertainment
and transport facilities.
Accommodation is needed unless the employees are local residents.
Accommodation should be easily available, comparatively cheap and near
some public transport stop. Communication is another important infrastructure
without which no unit can run efficiently. Availability of a post office and
telegraphic office is a must. Availabilities of medical facility such as
dispensary or a hospital in the neighborhood are must. Equally important is
the requirement of educational facilities in the neighborhood like schools,
colleges, etc. Likewise entertainment facilities such as cinema, parks, clubs,
etc.

(iv) Community Attitudes:

(v) Supporting Industries and Services:

Locational factors should also include proximity of services needed by the
firm. A firm desirous of getting some or all parts made from outside or some
of the operations done from outside must see that such sub-contractors are
located in the neighborhood. Also if units are too far off, it will not cost only
additional transportation cost but also time consuming and costly.

Site Factors:
Site factors favor specific site within the community. Such factors are:

(i) Suitability of the Land:

Site selection should also take into account topography and soil structure
of the land. The soil structure must be capable of bearing loads of foundations.
(ii) Availability and cost of the Land:
Site size must be large enough to accommodate the present production
facilities, parking and access facilities but also leave sufficient room for future
expansion.
Q3 b. What are the objectives of a good layout? Discuss any
six principles of a good layout?

Answer

Plant layout is the disposition of the various facilities and services of the plant within the
area of the site selected previously. Since a layout once made can be changed only at the
considerable cost and disruption of production, plant layout decisions are strategic
decisions.
A good layout results in comforts, convenience, appearance, safety, efficiency and profits
while a poor layout causes congestion, disruption in material flow, unnecessary materials
handling, more scrap and rework, higher throughput time, wasted movements, frustration
and inefficiency.

Objectives of a Good Layout:

(i) Economy in handling of materials, work-in process and finished

goods.
(ii) Minimization of production delays.
(iii) Lesser work-in progress and minimum manufacturing cycle time.
(iv) Efficient utilization of available space.
(v) Easy supervision and better production control.
(vi) Greater flexibility for changes in product design and for future
expansion.
(vii) Better working conditions by eliminating causes of excessive noise,
objectionable odor, smoke, etc.

Principles of a Good Layout:

(i) Overall Integration of Factors:

A good layout is one that integrates men, materials, machines and
supporting activities and others in a way that the best compromise is obtained. No
layout can satisfy each and every principle of a good layout. It has to integrate all
factors into the best possible compromise.

(ii) Effective use of available space:

A good layout is one that makes effective use of available space both
horizontal and vertical. It is important for following aspects:
(a) Back-tracking and duplicated movements consume more time, involve un-
necessary materials handling, add to cost and lead to inefficiency.
(b) Raw materials, work-in-progress and finished goods should be piled vertically
one above another rather than being strewn on the floor.
(c) Pallets or equivalents should be made use of to pile up several layers one
above another.
(d) Area below the worktables or in the cupboards built into the wall is welcome
since they reduce requirement of space.
(iii) Unidirectional Flow:
A good layout is one that makes the materials move only in the forward direction,
towards stage of completion, without any backtracking, important things to be
noted here are—
(a) Since straight line is the shortest distance between any two points, materials as
far as possible should be made to move on the principle of straight line flow. And
when straight-line flow is not possible, other flow like U-shaped flow, circular
flow or zigzag flow may be adopted, but the layout must ensure that materials
move in the forward direction.
(b) To ensure forward flow, equipment if necessary may be duplicated.

(iv)Maximum Visibility:
A good layout is one that makes man, machines and materials readily
observable at all times. Following points should be implemented –
(a) All departments should be smoothly integrated, convenient to service and easy
to supervise.
(b) Every piece of positioning or screening or partitioning should be scrutinized
and carefully planned.
(c) Special cupboards, enclosures, offices, partitions, etc. should be avoided
except when their utility is established beyond doubt.

(v) Inherent safety:

A good layout is one that makes the plant safer for the workmen. For this it
should be followed like –
(a) The aisles should be clearly marked and should be kept free from obstructions.
(b) The aisles should be located in such a way that workmen do not have to walk
close to chemical vats or furnaces or conveyers, etc.
(c) ‘Pick-up’ & pick-down’ points for the materials should be so located that
material handling facility – fork loft, overhead crane, etc. do not endanger safety
of machines or workmen.
(d) Fire protection equipments should be provided at strategic locations.
(e) Gangways should be kept well lit.
(f) One way traffic rule may be observed in areas of greater traffic.

(vi)Maximum Flexibility:
A good layout is one that can be altered later without much cost. The main aspects
which has to be applied are –
(a) Future requirements should be taken into account while designing for the
present.
(b) Each machine must be self contained i.e. it must have everything of its own
like lubrication system, cooling system, supplementary lighting, air system, etc.
(c) Multipurpose machines give flexibility over special purpose machines and
process layout is more flexible than product layout.
(d) Standardization of machine tools, jigs and fixtures, give flexibility to
production in the event of machine breakdown.
Q4. How does production planning differ from production
control? What are the key functions of production
planning and control?

Answer
Production is defined as the “manufacturing of goods and services” and planning
is defined as “the series of related and coordinated activities – material control, process
planning, scheduling, etc designed to systematic in advance the manufacturing efforts.”
Production planning is the pre-determination of manufacturing requirements such
as men, materials, machines, manufacturing process, money, order priority, etc. for the
production of goods of the right quality, in the right quantities and at the right time.
Production control is the corollary to short term production planning or
scheduling, and its quite simply concerned with the implementation of production
schedules. Planning is thus forward thinking while control is mechanism for execution.
Production planning and control (PPC) is different from each other in the following
ways:

Production Planning Control

• Planning involves collection &
maintenance of data regarding time
standards, materials and their
specifications, machines & their
quantities, tools & their process
capabilities, drawings & operational
layouts, etc.
• Planning is seeing that requirement
tools, machines, men, instructions,
authorization and like-will be
available at the right time and in the
right quantities and of proper
quality.
• Planning involves preparation of
load charts and fitting various work
orders into uncommitted time
available on the company’s
facilities (men & machines)
• Planning involves preparation of all
necessary forms and paper work.
• Planning involves forward thinking
regarding the remedial action to be
taken if the jobs fall behind
schedule.
• Planning involves designing
suitable feedback as to what may
happen.
• Control improves dissemination of
data, preparation of reports
regarding output, machine and labor
efficiency, percentage defectives,
etc.
• Control is seeing that the
requirements are actually made
available at the right place and in
the right quantities.
• Control involves actual seeing that
the jobs are started and completed
as per the schedule prepared by the
scheduling call of the PPC.
• Control involves actual issue of
forms and paper work.
• Control involves suggesting
remedial action when the job is
falling behind schedule.
• Control involves keeping track of
what is happening and collecting
information as to what has
 happened.

Functions of Production Planning and Control

There are normally two sets of functions of production planning and control –
(i) Regular functions (ii) Optional Functions

Regular (or Common) Functions

Regular functions are those, which are generally assigned to PPC in most of the
organizations thought the importance of the function may vary from industry to industry.
Objectives of regular functions are –

(a) Order Preparation:

Order preparation includes activities like making of work orders, converting work
orders into shop orders, preparing auxiliary orders and releasing such orders to those
concerned to authorize their activities.

(b) Materials Control:

Concerns preparation of materials estimates, indenting non-stock materials,
ascertaining, availability of materials purchased to stock, continued follow-up with
purchase and stores for timely receipt of materials and advising stores to allocate required
quantities or available materials against specific shop orders.

(c) Process planning/Routing:

Concerns fixation of method of manufacture: operations and their sequence,
machine tool for each operation, jigs and fixtures, measuring instruments, etc. to enable
shops to produce goods of the right quantity at the lowest cost.

(d) Tools Control:

Concerns preparation of estimates of cutting tools, gauges and measuring
instruments, etc. indenting non-stick tooling; follow up with tool room for timely
manufacture jigs and fixtures; periodical replenishment of worn-out-non-consumable
tooling.

(e) Scheduling:
Concerns preparation of machine tools (loads), fixation of calendar dates of
various operations to be performed on a job, coordination with sales to confirm delivery
dates of new items, and periodical preparation of dispatch schedules of regular items.

(f) Dispatching:
 Concerns preparation and distribution of shop orders and manufacturing
instructions to the concerned department as their authority to perform the work according
to the pre-determined schedule.

(g) Progressing:
Concerns collection of data from manufacturing shops, recoding of progress of
work, and comparing progress against the plan.

(h) Expediting:
Concerns intensive progress chasing to identify delays and interruptions which
may hold up production, devising cures from time to time to keep rate of production in
line with the schedule, communicating possible failure in delivery commitments to sales
department.

Optional Functions

Optional functions are those, which may be assigned to PPC depending upon policy of
the management of the firm. Optional functions has following objectives –

(a) Cost Estimation:

Concerns preparation of pre-production cost estimates to be used by sales
department for quotation purposes.

(b) Work Measurement:

Concern fixation of time to be allowed to a qualified workman to carryout a
specific task, under specified conditions and at the defined level of performance. Work
measurement employs scientific, well-known techniques like time study, work sampling,
standard data, production study, analytical estimating, etc.

(c) Sub-Contract:
Concerns offloading of certain work on outside vendors for economic reasons or
to argument the existing manufacturing facilities.

(d) Capacity Planning:

Concerns estimation of requirements of men and machines as the basis of decision
making to meet the firm’s increased volume of business.

(e) Demand Forecasting:

Concerns making projection of company’s product market. Though, long term
forecasts are given by sales department but short term forecasts required for materials
planning, machine loading, subcontracting, etc. may be prepared by PPC department.
Q5. What is Preventive Maintenance? Why it is better than
Breakdown Maintenance? What are the key activities of
Preventive Maintenance?

Answer
Preventive Maintenance is the maintenance system wherein certain maintenance
activities are carried out in a planned manner with an explicit objective of detecting weak
spots and the perfect functioning of the plant is ensured by suitable preventive measures
including replacement of parts which could still be used. Such preventive measures
provide a high degree of reliability to the machine. Preventive maintenance can be either
“running maintenance” or ‘shutdown maintenance”.

(i) Running Maintenance: It includes preventive maintenance activities like minor

adjustments in machines revealed through inspections, lubrication, cleaning and upkeep,
etc. which are carried out when the machine is still running.

(ii) Shutdown Maintenance: It includes preventive maintenance activities such as minor

component replacement whose needs are identified through inspections, which requires
stoppage of machines.

Preventive inspection is one of they key activities of preventive maintenance which is

usually performed by making use of human senses – watch (eye), listen (ear), touch
(hand, leg, body), smell (nose) & taste (tongue) – but the trend is changing towards use of
condition monitoring instruments. Such a maintenance practice is known as preventive or
condition-based maintenance.

Preventive Maintenance is better than Breakdown Maintenance:

Breakdown Maintenance is categorized as unplanned maintenance. It partly is

planned, as failures, which can be considered in advance through timing of the failure,
may not be known. In case, the resources for breakdown are not considered and planned,
then breakdown maintenance is to be treated as unplanned maintenance. And if resources
have been provided for, the breakdown maintenance may be treated as planned
maintenance as unplanned maintenance.
On the other hand, Preventive maintenance fulfills the criteria of “prevention is
better than cure”. It works because almost no equipment fails without showing the signs
of malfunctioning. If a fault if detected when it is still in a pre-matured minor stage,
eventual breakdown of the equipment can be prevented. Preventive maintenance
advocates maintenance procedures whereby the condition of the plant is constantly
watched through systematic inspection to unearth unhealthy conditions and preventive
action is taken to prevent unscheduled interruption to the plant and equipment. Thus,
preventive maintenance is better than breakdown maintenance in the planned sense.
Key activities of Preventive Maintenance:

1. Preventive inspection: Preventive inspection is an integral part of the preventive

maintenance programme. Inspection is carried out systematically, at periodical intervals,
by the staff specially trained, to determine the condition of the equipment.
Preventive inspection is of two types – External & internal.
External Inspection is indented to detect such as abnormal sound, heat, smoke, vibrations,
etc. and is carried out, by making use of human senses, when the equipment is in
operation. Whereas, Internal inspection is meant to identify defects in moving parts,
internal cracks, and others when the machine is under pre-planned shutdowns. Internal
inspection may also be conducted to investigate into the causes of defects noticed during
external inspection.

2. Planned Lubrication: Planned lubrication is said to be the nervous system of the

equipment. Regular lubrication with carefully selected lubricants is an essential factor in
the maintenance of high-grade machine tools working under continuous loads. Essentials
of well-planned lubrication systems are:
(i) Proper identification of lubrication points (Right place)
(ii) Right selection of the lubricant (Right quantity)
(iii) Optimum frequency of lubrication (Right time)
(iv) Optimum quantity of the lubricant (Right quantity)
(v) Proper care and storage of lubricants (Right care)

3. Cleaning and upkeep: Cleaning and upkeep of the machines is another important
activity of preventive maintenance. Periodical cleaning of the machine is required to
prevent ingression of dust into the components. Dust gets mixed with lubricants forms an
abrasive substance and causes pre-mature failure of machinery. The collection of dust on
equipment also leads to destruction of protective coatings, which further accelerate the
rate of wear and tear of the requirement. Besides periodic cleaning of machines and
surrounding areas provides tidy and clean working environment which itself improves
maintenance efficiency. A well-designed preventive maintenance system incorporates
periodic cleaning of plant and equipment schedules as a part of its preventive
maintenance activity. Examples of cleaning activities are – (i) Transformers, rectifiers,
etc., (ii) Hydraulic oil tanks, (iii) carbon brushes on converters and D.C. Motors (iv)
Motors, fan blades & fins of motors (v) Filters (vi) Air tools, hand chicks, air chucks.

4. Minor Adjustments and Replacements: Preventive inspection may identify certain

points, which require minor adjustments and/or replacements. Typical examples are – (i)
Tightening of loose parts (ii) Replacements of oil filter and oil seals (iii) Replacement of
damaged oil nipples. Depending upon the urgency of work these preventive maintenance
jobs require to be scheduled.

5. Engineering Records: Good record keeping is the essence of good preventive

maintenance. The following document and records must be maintained for smooth
working of the department:
a. Instruction Manuals – the catalogues supplied by the manufacturers of the machines
alone with the equipment.

b. Spare-parts Catalogues – separate catalogues of the consumable and replacement

spares of their equipments.

c. Electrical and Hydraulic Circuits diagrams – It normally appended to the instruction

manuals.

d. Equipments Card – record of the information pertaining to the name and address of the
manufacturer of the equipment, purchase order number and date, date of commissioning,
equipment specifications, list of the accessories, list of major spare parts, etc.

e. Equipment History Cards – record of all repairs, replacements and engineering changes
carried out in the equipment during its period in service.

f. Failure Statistics Analysis – This analysis helps to identify causes for major repetitive
failures and thereby take decisions for their prevention in future. Forecast defects and to
make plan to rectify before failure occurs.
Q6. What is method study? Describe the procedural steps to
develop easier and effective methods.

Answer
To increase productivity, two important functions of production management are:
installation of the most effective method of performing the operation and the control of
resources – mainly plant and labor – required in carrying out the operation. Work-study,
formerly known as Time and Motion Study, fulfills two requirements thought its two
complementary specializations of Method Study and Work measurement.

Method study aims to determine the most effective method of performing a job, the most
logical layout of manufacturing facilities, the smooth flow of men and materials
throughout the organization and the right placement of inspection stages to enable
processing of a job through the smallest possible time and at the least possible cost.
According to British Standards Institution (BS-3138) – “Method study is the systematic
recording and critical examination of existing and proposed ways of doing work, as a
means of developing and applying easier and more effective methods and reducing
costs.”

The definition suggests that the examination of existing as well as proposed production
methods. Critical examination when conducted on existing methods helps the firm to
identify unnecessary costs associated with the associated jobs. Such costs get added to the
jobs due to various reasons and are not readily apparent especially to those who are
responsible for causing them. Critical examinations of proposed production methods, on
the other hand, helps the organization to prevent the possibility of introduction of
unnecessary cost in new jobs. Method study in general analyses the following aspects:

(i) Manufacturing Operations and their sequence

(ii) Machines
(iii) Workmen
(iv) Materials
(v) Tools
(vi) Gauges & measuring instruments
(vii) Work bench layout
(viii) Layout of physical facilities
(ix) Movement of men & materials
(x) Materials handling
(xi) Working conditions

The scope of method study is not merely restricted to manufacturing industries. It can be
applied almost in any field, say offices, banks, hospitals, shops and even defense. In a
manufacturing industry, method study can be successfully used in many areas of
production management.
Procedural Steps of Method Study:

Method study is an organized approach and described on the following six steps outlined
in the block diagram (fig 1).

1. Select 3. Examine 5. Install

2. Record 4. Develop 6. Maintain

Economic Consideration

Technical Consideration Select the job to be analysed

Human Consideration

Charting Symbols Records facts relating to the

Charting Conventions existing method

Examine facts critically but

impartially

Purpose Place Sequence Person Means

Develop alternatives to the

existing method

Install the new method

Maintain the new method

Fig 1.1: Block Diagram of the Steps in Method Study

Above steps can be described as:
1. Selection of the Job
The selection of the job to be analyzed is a managerial responsibility. The usual attitude
“to have a look around and find something to deal with” is wrong is unlikely to produce
good results. The following considerations should be kept in mind while selecting a job
for the purpose of method improvement.

a) Economic Consideration is usually important at all stages of the study. The time
and money spend in conducting a long investigation should be justified by the
savings resulting from it.

b) Technical Consideration analyses technical aspects of the job selected for the
analysis. The method study man should select a job, which he has the technical
knowledge failing which he will not be able to do justice to the job.

c) Human Consideration is the greatest consideration of all. Method study means a

change but a change, which is accepted, half-heartedly by the workers and their
representatives is really no good a change.

Human reactions play an important role in method study and as such must given due
consideration by the must be given due consideration by the method study man. The
people affected by the change normally resist any change. You must overcome the
resistance to change. Convince your employer why change is necessary necessary.
Selecting and improving can prove the effectiveness of the method study some of the
jobs, which are considered unsafe, dirty, strenuous, hard & inconvenient by the workers
themselves. In the following situations human consideration should be given preference:
(i) Workers complaining of unnecessary and tiring work.
(ii) Poor morale evidenced by petty or trivial complaints.
(iii) Repeated cases of accidents and health hazards.
(iv) Inconsistent earnings where the earnings are tied to output.

2. Recording of Facts

Recording is the preparatory step towards critical examination. The success of critical
examination to a large extent depends on how correctly, precisely and in comprehensive
form the facts relating to method under study are recorded. Activities, which are recorded
in method study, are:

(a) Method Study Symbols

(i) Operation: An operation occurs when there
is a distinct change in physical/chemical
characteristic of an object or, when there
is an addition/subtraction or, when there
is consumption of physical effort or, when
Operation
Information is given or received. An operation always takes the object (materials,
component, item or service) a stage further towards completion. Operation is represented
by circle.

(ii) Inspection: An inspection occurs when the object

is verified against predetermined standards of
quality or quantity, or both. Inspection unlike
operation, does not take the object one step
Inspection
forward towards completion. It merely verified(s) whether or not the object has
undergone the required operation as per specifications. Inspection is represented by
square.

(iii) Transport: A transport occurs when the object

is moved from one place to another. Transport
is represented by an arrow. Transport

(iv) Delay: A delay occurs when the object is held

up resulting in delay in the start of next
event i.e. Next operation, inspection or transport.
Delay is repressed by letter dee (D). Delay

(v) Storage: storage occurs when the object is

kept in an authorized custody and is protected
against unauthorized removal. Storage is represented
by an inverted triangle. Storage

b) Charting Conventions:

Complicated activities like rework, rejection, repetition, change of state, introduction of

new material, combined activities etc. are used in charting conventions. Typical charting
conventions are:

(i) Composition of the Chart

The three different parts of the chart are:

Introduction, to record name of the chart, present or proposed method, task under study,
chart begins, chart ends, charted by, date of charting.

Body, to show activities by relevant symbols written one below another according to the
sequence.

Summary, to give frequency of each symbol, total time for each symbol and total distance
travelled by the object.
(ii) Rejection

Sometimes materials/components are rejected during processing. Such rejection – the

stage at which it occurs and the place where this discarded material is taken to requires to
be shown in the chart.

(iii) Reprocessing

Reprocessing concerns a situation where the component is not completely rejected but is
to be recorded.

(iv) Repetition

Repetition concerns a situation where an activity or a series of activities are to be

repeated. To show such activities by repeated use of symbols is unnecessary/laborious.
Enclosing the activities by a loop can save much of this extra effort.

(v) Introduction of new Materials

Introduction of new materials considers the entry points of the materials. Such entries are
indicated on the chart by horizontal lines with description of materials written above the
line and quantity written below the line.

(vi) Combined Activities

Sometimes, the operator performs more than one activity simultaneously. Such activities
are represented by combined symbols.

(vii) Numbering of Activities

The symbols in a process chart are numbered to facilitate easy reference for comparison.
Likewise symbols are numbered serially from the beginning to end.

c) Charting Methods:

(i) Charts
Charts are the most popular method of recording data. The activities comprising the
job are recorded by means of symbols and charting conventions. There are following
types of charts—

• Operation Process Chart (OPC)—

An operation process chart is a chart on which the major activities and entry
points of materials are recorded to have graphic view of operations and
inspections involved in the process. An OPC gives the detailed step-by-step
 account of what is done to the materials from beginning of the first stage to
the last stage.

• Flow Process Chart (FPC)—

Flow process chart is a chart, which sets out the sequence of flow of work of a
product, or any part of it through the section or the department or the factory
by recording the events under review using appropriate symbols.

• Multiple Activity Chart—

A Multiple activity chart is chart on which the activities of more than one
subject are recorded to indicate their inter-relationship in a given cycle.
Multiple activity charts in other words shows what each subject does at any
time in relation to the other.

• Two Handed Process Chart—

A two-handed process chart is a chart on which the activities performed by
two hands or two limbs of the operator are recorded to show their inter-
relationship.

(ii) Diagrams
1. Flow Diagram
Flow diagrams are the scale plans on which the movements of an object are
traced by lines. The flow diagram shows the relative position of the machine
tools, workbenches, storage racks etc. on a scaled diagram on which are
marked the paths flowed by the workman & materials.

2. String Diagram
String diagrams are the scale plans on which the movements of an object are
traced by means of a string. String diagrams have certain distinct advantages
over flow diagrams. Repetitive movements between workstations, which are
difficult to be traced on flow diagrams, can be convent ally shown a string
diagrams.

3. Critical Examination

Critical examination aims to analyses the facts critically and thereby give rise to
alternatives, which forms the basis for selection and development of improved methods.
The principles to be followed during critical examination are:

(a) Facts should be examined as they are & not as they should be.
(b) Each step, how insignificant it may be, should be analysed in a
logical sequence.
(c) Hasty judgments must be avoided.
(d) Opinion regarding alternatives to the existing methods should not
be formed unless all aspects of the existing method have been exposed to critical
examination.
Critical examination is conducted through a systematic and methodical questioning
process. The questioning process is considered under five major heads referred to
governing considerations—

(i) Purpose: analyses whether the job/activity is essential.

(ii) Place: analyses whether the job/activity is being performed at the right place.
(iii) Sequence: analyses whether the job/activity is being done at the right time.
(iv) Person: analyses whether the job/activity is being performed by the right
person.
(v) Means: analyses whether the job is done using right materials, right tools,
right jigs and fixtures, right measuring instruments and gauges.

4. Developments and Selection

Development involves analysis of creative ideas and giving them a creative shape.
Development phase is the combination of three phases: evaluation, investigation &
selection.

a) Evaluation

Evaluation assesses the true worth of each creative idea & thereby decide whether
an idea should be pursued or discarded. It is therefore, an exercise to shortlist creative
ideas. These shortlist ideas explores the following—

(i) Fault Finding and Fault Identification

Evaluation investigates into advantages & disadvantages of each creative idea so as to

identify creative ideas which:
• Appear usable: Such ideas are straightway adopted for
further investigation.
• Possess technical flaws: Such ideas are discarded and
removed from the list.
• Lack confidence: Such ideas are not discarded or thrown
away. They are kept aside until a future time when proper data/knowledge
will make them usable.
• Contain more disadvantages than advantages: Such ideas
are critically examined to see whether deficiencies can be removed failing
which they are kept aside.

(ii) Combinations of Ideas

Creative ideas covering different aspects of materials, machines, design and the like
combined to reduce the number of creative ideas.

(iii) Estimation of Cost of Testing and Implementation

Estimation is made to forecast the kind of expenditure that shall require to be incurred to
test an idea or a combination of ideas. Cost estimation of each idea helps to narrow down
the list of available ideas.

b) Investigation

Investigation explores as to how the ideas cleared at the evaluation stage as suitable or
promising can be converted into practical suggestions. Investigation usually involves
preparation of drawings, holding discussion with personnel from
design/purchase/finance/quality control etc. making prototypes, conducting trial runs,
getting work measurement studies redone from industrial engineering or making cost
accountant prepare fresh cost estimates. Investigation involves steps detailed below:
(i) Test each idea for its technical feasibility.
(ii) Predict performance of each technically feasible idea.
(iii) Test each technical feasible idea for its economic feasibility.

(c) Selection

To select the optimum alternative, each alternative needs to be evaluated against a set of
specific factors. The most commonly selected factors are: investigation required,
production rate expressed in terms of cycle time per price, and physical effort. To select a
preferred alternative, the points scored by each alternative against each specific factor are
totalled up.

5. Installation of the Proposed Method

Installation Comprises of two vital steps:

a) Recommendation Phase
Even if the management is solidity behind the methods improvement program, it still
requires facts and figures to support specific proposals. That is each change proposal
requires method study practitioner to prepare a formal report of this proposal, present his
recommendations to the management, provide information on implementation plan and
secure approved of the management.

b) Implementation Phase

No recommendation is effective until implemented. Though the responsibility of

implementation is that of top management yet active assistance of methods man is
required to-
(i) Resolve problems encountered in implementation process.
(ii) Minimize delay in the implementation process.
(iii) Ensure that change proposal is not modified during the implementation
process would cause it lose its cost effectiveness/the basis for its original
selection.
6. Maintenance of the Proposed Method

Method change does not get completed with the implementation of the proposal. Follow
up after the implementation:
(i) Serves as a monitoring and control mechanism and helps to ensure that revised
methods are followed in future.
(ii) Audit results achieved from the implementation of the study.
(iii) Evaluates effectiveness of the methodology followed and enables the
practitioner to take corrective action for future projects.
(iv) Appraises the management of the contribution of method changes.
Q 8 a. What is work sampling? Why is it conducted?

Answer

In B.S. Glossary work sampling has been defined as “a technique in which statistically
component number of instantaneous observations are taken, over a period of time, of a
group of machines, processes or workers. Each observation records what is seen to
happen and the percentage of observations recorded for a particular activity or delay is a
measure of the percentage of time absorbed by the occurrence.”

Work sampling thus is a sampling technique where a large number of observations are
conducted at random intervals of time and the state of each member of the group working
or not working is studied. The observations of non-working are further amplified and the
cause of delay (idle) is recorded. The data is so collected can be utilized in a variety of
ways. It is conducted in the following aspects:

(i) Cost Reduction and Cost Control

Work sampling data yields a lot of useful information on delays and interruptions and the
causes underlying them. This serves a good basis for a work simplification programme.

(ii) Assessment of Allowances for Output Standards

The output standards besides relaxation allowances include allowances for delays and
interruptions incidental to the work. Such delays can economically be measured with
work sampling technique.

(iii) Fixation of Output Standards

Output standards for short-cycle-repetitive-jobs can economically be set with time study
and allied work measurement techniques. It is useful for setting output standards for long
cycle jobs and operations involving teamwork. This technique is also used in
heterogeneous activities.

(iv) Testing the Accuracy of the Output Standards

Work sampling can also be used to check the accuracy of the output standards set by
means of other techniques of work measurement.

L.H.C. TIPPET in Britain originally developed work-sampling technique in 1934 for the
British Cotton Industry Research Board. The founder father named it as Activity
Sampling. In 1952, the technique was renamed as Work Sampling.
Q 8 b. A work sampling study was conducted for 60 hours on
a band saw machine in order to establish the standard
time to saw off 200f, En 8 bar stock into 20f x 45mm
long pieces. The total number of observations recorded
was 250. No working activity was noticed in 50
observations. Manual activity could be observed in 20
observations and average performance was estimated
at 90%. The total number of pieces produced during 60-
hours study was 45. Calculate standard time of the job
assuming 12% as relevant allowances.

Answer
From the question,
Let N = Total No. Of Observations = 250
Here, No activity of work = 50
Because,
Np = Observations of production activity =Nm + Nn
Nm = Observations of machine controlled work = 250-50 = 200
Nn = Observations of hand controlled (manual) work = 20
Because,
Np = Nm + Nn = 200 + 20 =220
R = Average performance indeed = 90%
n = No. of pieces during the study = 45
s = Duration of the study = 60 hours = 60 x 60 = 3600 minutes
Therefore,

Overall time per unit (To) = Duration of the study

--------------------------------------
No. of pieces produced during study
Therefore,
3600
To = ------ = 80 minutes
45

Because,
Effective time = Overall time X % time spent on productive activity
per piece (Te) per unit
Therefore,
Te = To x Np
---
N
= To x Nm+Nn
----------
N
 = 80 x 220
---------
250
Therefore,
Te = 70.4 mts.
Tm = Machine controlled portion of effective time per piece OR
Tm = Te x Nm
----
Np

= 70.4 x 200
---------
200 + 20
= 70.4 x 200
------------
220
Tm = 64 mts.

& Tn = Hand controlled portion of effective time per piece OR

Tn = Te x Nn
-----
Np
= 70.4 x 20
----------
200+20
= 70.4 x 20
-----------
220
Tn = 6.4 mts.
Therefore,

Normal time = Machine controlled portion of + Normal time of hand controlled

Per piece effective time per piece portion of effective time per piece

Or, Tn = Tm + Tn x R
= 64 + 6.4 x 90
---
100
= 64 + 6.4 x 0.90
= 64 + 5.76
Tn = 69.76

We have, standard time per piece = Normal time + Allowances

Or, Ts = Tn x 100 + Allowances
--------------------
100
 = 69.76 x 1.12

i.e. Ts = 78.13 minutes

Q9 a. What desirable conditions need to be present to
guarantee success of an incentive scheme?

Answer

Incentive is an inducement given to an employee to improve his effectiveness. An

incentive scheme should neither be regarded as a substitute for bad management nor it
should be looked upon as a substitute for a poor wage structure. It is, infact a tool to
create more capacity, increase productivity and to reduce manufacturing cost per unit. A
great deal of planning and preparation, therefore, is necessary to formulate a good
incentive scheme. The desirable conditions for an ideal incentive scheme are:

1. Fixation of Performance Standards

The success of a wage incentive plan to a large extent depends on the quality of the
performance standards. The standards should be accurate and must be based on scientific
work measurement studies. An incentive scheme, which considers past performance and
its base is bound to fail to the detriment of the management.

2. Methods Improvement

Performance standards should be set after systematic analysis of methods failing which
they will soon become loose because workers motivated by higher incentive earnings
tend to improve their work methods. This fear of rate cutting to the workmen, leads to
resistant to any change even if these changes are the result of methods improvement or
due to changes in material or equipment. It is therefore, essential that all tasks prior to
installation of the incentive scheme should be studied for methods improvement.

3. Good Production Planning and Control

Good production planning and control system is an important pre-requisite to the

installation of a wage incentive scheme. Ineffective time in all forms must be reduced to
its minimum. Each workman must know in advance his next work assignment.
Temporary inventory banks should be created to avoid possibility of loss of time due to
interruption at the preceding operations. Overlapping of operations should be carefully
planned to ensure continuous working of the machines.

4. Proper Accounting of Production

In the absence of proper accounting system, some workmen may record bogus figures of
production to increase their earnings and thereby make the company lose heavily. This is
especially important for machines where cycles times are short.
 5. Fair Wage Structure

Incentive scheme should not be of poor wage structure. A scientific job evaluation
programme to ensure that work differentials are reflected in wage differentials should
establish base rates. Minimum decent wage must be present before installing a scheme
and the same should be guaranteed irrespective of worker’s performance. The guaranteed
wage rates must be kept up-to-date. General increase in wage rate on conclusion of the
wage agreements should be added to the base rate.

6. Elimination of Overtime

Overtime is single factor, which can thwart the success of an incentive scheme. Overtime
must be eliminated to guarantee the success of the wage incentive scheme, because
overtime tends to reward workmen more than the incentive scheme.

7. Inspection and Quality Control

Proper system of inspection and quality control is a must before installation of an

incentive scheme. Inspection points should be such that defectives are automatically
segregated. Inspection results should be made known to the worker as early as possible.
The frequency of inspection should be adequate so that defects are highlighted and are
corrected as production takes place.

8. Trial of Performance Standards

Many an incentive schemes fail in their objective due to “loose standards”. Not only the
output standards should be based on scientific work measurement studies, they should
also be tried out. Work sampling and production studies are two other techniques of work
measurement, which can be used to test the viability of the standards.

9. Acceptance by Labour Body

Another important desirable condition scheme for incentive is its acceptance by the
representatives of the employees. The following points are important:

a) Management at all levels, especially shop management and union should be

sold to the need and desirability of incentive scheme.

b) Each feature of the proposed scheme namely incentive plan, method of

calculating incentive bonus, performance standards, period of payment etc. should
be explained, discussed and if necessary modified.

c) Modifications, if mutually acceptable, should be incorporated. The installation

of the scheme should be postponed until agreement is reached.
 10. Accurate Projection of Future Business

To use an incentive scheme as means of increasing production capacity for a short-term

boom period is to court disaster. The incentive scheme once installed must remain in
operation for at least next five years.

11. Training Supervisors

Training of supervisors is equally important. The policy of the management on wage

incentives should be made clear to each of the supervisors so that they understand each
and every problem concerning the plan and are able to answer employees’ questions to
latter’s satisfaction. Experience of the author is that with the introduction of an Incentive
scheme, the supervisor has additional duties:

• Concentrating on quality products so that workman in their enthusiasm to earn

more and do not produce defectives.
• Keeping facilities in order so that work can proceed smoothly.
• Making available necessary production aids on time.
• Maintaining proper records of time and output made by workmen.
• Assisting workmen to calculate incentive earnings when they approach him for
clarification/confirming the payments received.
Q9 b. A welder working under the Hasley Plan completed
the following jobs in an 8 hours shift.
The standard time for each job is given in the table below:

---------------------------------------------------------------------------------------
Time Taken Standard Remarks
Job No. From To Time
---------------------------------------------------------------------------------------
J-3012 7AM 9AM 3 -----
J-3385 9AM 11AM 5 between 11:00-11:30AM
11:30AM 12:30PM workmen have lunch break
J-3528 12:30PM 2:30PM 2 -----
J-3539 2:30PM 3:30PM 2 Job could not be done as
workman while moving
fell down and got badly
hurt.
----------------------------------------------------------------------------------------

Answer 9 (b):

---------------------------------------------------------------------------------------
Time Taken Standard Actual Bonus
Job No. From To Time Time(Ts-Tt) ½(Ts-Tt)x R
--------------------------------------------------------------------------------------------
J-3012 7AM 9AM 3 1 5.00
J-3385 9AM 11AM 5 2 10.00
11:30AM 12:30PM
J-3528 12:30PM 2:30PM 2 0 0
J-3539 2:30PM 3:30PM 2 1 5.00
---------------------
Total 20.00

since, workman is paid  Rs. 80/day

therefore or workman is paid (R)  80/8 = Rs. 10/hour

As per rule of Hasley system,

We have, Bonus for each job = ½ (Ts-Tt) x R

= ½ (Ts-Tt) x 10

Total incentive bonus = Rs. 20

& Earnings for the day = 8 x 10 + 20 = Rs. 100
Q10 a. What are X -R Charts? How are they made and used in
controlling a process?

Answer

X -R chart is a pair of chart consisting of an average chart (called X chart) and a

range chart (Called R chart) placed one below another on a piece of graph paper. The X
chart is used to control the mean value of the characteristic and R-chart is used to restrict
the range variations in the values. X -R charts are drawn when the characteristics are
measurable. Each chart consists of three values: a central line, upper control limit and
lower control limit. The control line represents the arithmetic average of the sample
means, which equals the mean of the population, µ. The upper the upper and lower
control limits are located at three standard deviation on either side of the central line.

Samples of fixed size are drawn at regular intervals and measurements are taken. The
samples wise values of the mean and range are plotted in their respective X and R
charts. The spread of sample points in the charts is studied to decide the remedial action
to be taken. The X chart analyses whether or not the mean of the quality characteristics is
within control while R-chart analyses whether or not the variability is within control.

Steps to Create X -R chart

Step 1: Collect Data

a) Collect sufficient samples spread over a reasonable period. Each sample must be of
equal size.

b) Measure each component comprising the sample for the given quality characteristic.

c) Record individual measurements on a work data sheet.

Step 2: Calculate mean ( X ) and range (R) of each sample

a) The mean ( X ) is average of each sample and is obtained by totalling the individual
measurements of the units comprising the sample and dividing the total by the sample
size (number of units in each sample).

b) The range (R) is obtained as the difference between the highest and lowest
measurement of a sample.

c) The values of X and R are recorded sample wise either on the extreme right of the
individual measurements on the data sheet or in a separate table.
Step 3: Calculate grand average ( X ) and mean range ( R )

a) The grand average ( X ) is the average of the sample averages and is obtained by
dividing the total of the averages of all the samples by the total number of samples.

b) The mean range ( R ) is the average of the ranges and is obtained by dividing the total
of the ranges of the samples by the total number of samples.

Step 4: Set up Control chart for the average

a) Set up a control chart with central line drawn at X 1, upper control limit located X
+A2R and lower control limit set up at X -A2 R .

b) Plot the averages to see whether the process was under control when samples were
drawn.

c) If all points fall within the control limits, the process is said to be under control.

d) If process is not under control i.e., some points falling outside the control limits,
eliminate points outside the control limits and compute new trial control limits for the
remaining points.

e) Repeat step 4(d) until all points fall within the control limits.

f) Control limits in a practical situation should be revised from time to time as additional
data is accumulated.

Step 5: Calculate Control limits of the range chart

a) The control chart for range chart is set up with central line as R , upper control limit
(UCLR) located at D4 R above the central line and allowed lower control limit (LCLR) at
D3 R below the central line.

b) Plot the value of the range of each sample.

c) If all points fall within the control limits, no modification is necessary unless it is
desired to reduce the process dispersion

d) If range chart exhibits lack of control indicated by some points falling outside the
control limits, eliminate those points out of control and compute new trial control limits.

e) Repeat step 5(d) until all points fall within the control limits.

f) Control limits in a practical situation should be revised time to time as additional data
is accumulated.
Step 6: Use control chart

a) Collect samples of fixed sized at specified intervals of time.

b) Measure each unit of the sample for the quality characteristics, calculate mean and the
range of each sample.

c) Plot the values of X and of each sample in their respective charts.

d) Study the trend of the points of the points to interpret and suggest remedial action.
Q10 b. ABC Company produces a solvent which must contain
3 percent of alcohol. It tries to maintain the actual
percentage at 3???%. It tests hourly in samples of five.
The following table shows the results of last five
samples. Setup a control chart for mean and examine
whether the process is under control.

____________________________________________________________
Sample_______________%alcohol________________________________
1 2 3 4 5
____________________________________________________________
1 2.9 2.8 3.0 2.8 3.1
2 2.9 3.0 3.0 3.0 3.0
3 3.0 3.1 3.1 3.1 3.0
4 3.0 3.0 3.0 3.0 3.0
5 2.9 3.0 3.1 2.9 3.1
____________________________________________________________

value of constants A2, D3 and D4 for the sample size of 5 are 0.5768, O and 2.114
respectively.

Answer 10 (b):

Given that,

Sample 1 2 3 4 5
1 2.9 2.8 3.0 2.8 3.1
2 2.9 3.0 3.0 3.0 3.0
3 3.0 3.1 3.1 3.1 3.0
4 3.0 3.0 3.0 3.0 3.0
5 2.9 3.0 3.1 2.9 3.1

For sample 1, mean X 1 = 2.9 + 2.8 + 3.0 + 2.8 + 3.1 = 14.6 =2.92
5 5
For sample 2, mean X 2 = 2.9 + 3.0 + 3.0 + 3.0 + 3.0 = 14.9 = 2.98
5 5
For sample 3, mean X 3 = 3.0 + 3.1 + 3.1 + 3.1 + 3.0 = 15.3 = 3.06
5 5
For sample 4, mean X 4= 3.0 + 3.0 + 3.0 + 3.0 + 3.0 = 15 = 3.0
5 5
For sample 5, mean X 5= 2.9 + 3.0 + 3.1 + 2.9 + 3.1 = 15 = 3.0
5 5

For sample 1, the highest and lowest measurements respectively are 3.1 & 2.8
Therefore, Range ( R 1) for sample 1 = 3.1 – 2.8 = 0.3
Range ( R 2) for sample 2 = 3.0 – 2.9 = 0.1
Range ( R 3) for sample 3 = 3.1 – 3.0 = 0.1
Range ( R 4) for sample 4 = 3.0 – 3.0 = 0
Range ( R 5) for sample 5 = 3.1 – 2.9 = 0.2

The individual figures of range for different samples in given below:

Sample Mean ( X ) Range (R)

1 2.92 0.3
2 2.98 0.1
3 3.06 0.1
4 3.00 0
5 3.00 0.2

Grand average of samples, i.e.,

X = 2.92 + 2.98 + 3.06 + 3.0 + 3.0 = 14.96 = 2.992 = 2.99

5 5
Average mean range of samples i.e.,

R = 0.3 + 0.1 + 0.1 + 0 + 0.2 = 0.7 = 0.14

5 5

Now, set up control chart

Central line = CL X = X = 2.99
Upper control line = UCL X = X + A2. R
= 2.99 + 0.5768 ??? 0.14
= 2.99 + 0.09
i.e. UCL X = 3.08
Lower control line = LCL X = X – A2. R
= 2.99 – 0.5768 x 0.14
= 2.99 – 0.09
i.e. LCL X = 2.90

The averages of the samples have been posted into the chart to see whether or not the
process in under control (Fig 1)
 AVERAGE CHART [X(Bar)-chart]

3.15
Diameter measurement
1
3.1
2
3.05 3.06
3
3 3 3 4
2.98
5
2.95
2.92 6
2.9
1 2 3 4 5 6
Sample number

In the above chart, all the points are within the control limits i.e., it is to be said that X
chart represents a process under control.

Now, set up a range chart

Central line = CLR = R = 0.14

Lower control line = LCLR = D3. R
= 0 x 0.14 because, D3 = 0
i.e. LCLR = 0

Upper control line = UCLR = D4. R

= 2.114 x 0.14 because, D4 = 2.114

= 0.295
i.e. UCLR = 0.30

The range chart for the above control parameters is drawn in Fig 2.
 CONTROL CHART (R-chart)

0.6
1
0.5
Range number

2
0.4
3
0.3 0.3
4
0.2 0.2
5
0.1 0.1 0.1
6
0 0
1 2 3 4 5 6
Sample number

The values of R are within the control limits.

Q12 a. What is critical path? What does it signify? How is it
identified?

Answer

A network consists of chains of activities called path of network. Addition of

durations of activities on any path gives the duration of that path. The comparison of
durations of the paths identifies a path whose duration is the longest. It is this path, the
path with the longest duration, which sets the overall duration of the project, is called
critical path. And the activities of the critical path are known as critical activities.

Characteristics of Critical Path

1. Every network has a critical path.

2. It is possible to have more than one critical path.
3. A critical path is one of the connecting links between the first and the last events.
4. A critical path may have lesser number of activities compared to non-critical
paths.
5. A critical path may see through a dummy activity.

Significance of Critical path

1. Critical path helps to identify a set of activities and events, which are critical and
as such, must be carefully monitored and controlled.
2. Mere allocation of additional resources does not help to reduce the duration of the
project. To shorten the time of a project, some of the activities on the critical path
must be shortened.
3. Certain resources like men, machines and money are generally common to
different activities. Critical path identifies the activities to be given preference in
allocation of resources.
4. Each and every activity of the project need not be controlled. If critical activities
are started and completed on time, project automatically gets completed on
schedule. Since critical are few in number, identification of critical path helps to
exercise “control by exception.”

Identification of Critical Path

Performing the following four steps can identify critical path in a network:

(i) Enumerate all the paths in the network.

(ii) List down the activities on each of the above paths.
(iii) Sum up the times of the activities along each path.
(iv) Compare the duration of the paths to identify a path whose duration is the longest. It
is this path, which is called critical path.
Q12 b. Implementation of a value change proposal (VCP)
requires eight activities whose three estimates
prepared by the value analysis syndicate is given
below:

Activity Estimated duration (weeks)

Optimistic Most likely Pessimistic
1-2 02 03 10
1-3 02 04 06
1-4 02 06 10
2-5 01 01 01
3-5 04 05 12
4-5 02 03 04
4-6 02 05 08
5-6 03 05 13

Answer

Expected time of an activity can be obtained from the three time estimates using the
formula:

Te = a+4m+b
6

Where, a = Optimistic time

m = Most likely time
b = Pessimistic time

From the above formula, we can calculate the expected time, which is plotted in the
below table:

Activity Three time estimates Expected time

(i - j) (a-m-b) (te)
1-2 2 -3 -10 4
1-3 2-4-6 4
1-4 2 -6 - 10 6
2-5 1-1-1 1
3-5 4 - 5 - 12 6
4-5 2-3-4 3
4-6 2-5-8 5
 5-6 3 - 5 - 13 6

Network diagram for the above project is shown in the Figure 1:

Figure 1 (Network Diagram)

Q13. The Operator engaged on an assembly operatiion
performed the following work elements. Given below
are the individual elemental times and the average
rating.

CYCLE TIME
ELEMENT RATING
1 2 3 4 5
A 0.22 0.24 0.28 0.26 0.25 80
B 0.14 0.18 0.15 0.13 0.15 100
C 0.37 0.35 0.37 0.33 0.33 120
D 0.10 0.09 0.12 0.10 0.10 90
E 0.12 0.13 0.11 0.11 0.13 100

i) Calculate normal time of the job.

ii) Calculate standard time of the job assuming relaxation allowance of 15% and
contingency allowance of 5%.

Answer

Normal time computation from observed times are shown in the below table:

CYCLE TIME NORMAL TIME

ELEMENT RATING
1 2 3 4 5 (IN MINUTES)
A 0.22 0.24 0.28 0.26 0.25 80 1.25 X 80/100 = 1.00
0.75 X 100/100 =
B 0.14 0.18 0.15 0.13 0.15 100
0.75
1.75 X 120/100 =
C 0.37 0.35 0.37 0.33 0.33 120
2.10
D 0.10 0.09 0.12 0.10 0.10 90 0.51 X 90/100 = 0.46
0.60 X 100/100 =
E 0.12 0.13 0.11 0.11 0.13 100
0.60
TOTAL = 4.91

# Normal time of the job = 4.91 minutes …………………….……….(i)

# Relaxation allowance = 15/100 X 4.91 = 0.74 minutes ……………..(ii)

# Contingency allowance = 5/100 X 4.91 = 0.25 minutes ………..…(iii)

# Standard time of the job = (i) + (ii) + (iii)

= 4.91 + 0.74 + 0.25

i.e. Standard time of the job = 5.90 minutes