INTRODUCTION

The field of Industrial Engineering is quite broad and it

deals with
Production
Productivity
Design
Materials
Process
Planning and
Control
together with management techniques.
F.W. Tayler, H.L Gantt Henry Fayol, are the pioneers of
Industrial Engineering.
What an industrial engineer does?
1. Identifies problems, gather facts, and apprises
difficulties.
2. Visualizes solutions and designs, develops or
improves systems.
3. Searches out requirements for quality, quantity,
cost and timing.
4. Makes economic analysis and justifies their
results
5. Specifies, construct, install, and -sometimes-
initially operates these systems.
6. Devises methods of controlling and evaluating
the performance of the system.
7. Develop acceptance norms and secure
cooperation of those who operate such systems.
 Industrial engineering
1. Work Study
(a) Method study
(b) Work measurement
2. Plant layout and material handling.
3. Inventory control.
4. Operation research.
5. Production Planning and Control.
6. System Engineering.
7. C.P.M and P.E.R.T
8. Value Engineering.
 Scope
• In the early days Industrial engineering was
concerned with plant layout, manufacturing
facilities, work methods, cost control, production
methods.
• Due to the industrial revolution it covers all areas
such as industry, state administration, business,
utility services, hospitals and banks.
I) It covers all areas under production and
operations management.
2)Integrated system development with the help of
computers.
3)Information processing systems such as
marketing system, production system, inventory
system etc.
 Concept of Industries
• Industry is a place where the raw materials are
converted or processed to finished product.
• In order to convert the raw materials to
finished product, it requires some production
process such as turning, milling, grinding,
drilling, etc.
• Industry coordinates men, materials, processes,
machinery and methods effectively to get the
desired products.
• It responds to the needs of the market or
consumers at large.
 Production & Productivity
• Production is a process or sequence of process or
procedure to transform set of inputs ( Men, Materials,
Capital, Information) into a specified set of outputs or
finished products and services into proper quantity
and quality.
• In simple words we can define the production as an
organized activity of transforming raw materials into
finished products and services.
 Productivity
Productivity is a measure of efficiency of production system. It is an
indicator of how well the factors of production i.e.. men, material,
money, and machinery are utilized.

INPUTS
Men Monitering OUTPUTS
Materials Adjustments output
Money Production process Goods /Services
Methods
Machines
Technology
Energy
 Productivity
• Productivity is “ It is a human effort to produce more
and more with less and less inputs as a result of which
the benefits of production may be distributed more
equally among maximum number of people”.
• Productivity reduces wastage of resources, such as
men, materials, machinery, time, and power.
Productivity is a multiplier effect of efficiency and
effectiveness.
Productivity can be increased by
1)Increasing production without increasing in inputs
2)The same production with decrease in inputs
3)The rate of increase of out put is more compared to
rate of increase in input.
 Production and Productivity

Production Productivity
refers to the volume, value Concerned with the
or quantity of goods and optimum utilization of
services produced in a
the resources in the
given period by a process of converting
worker, plant, firm or them into product or
economy. services.
productivity is relative to
the resources used in
turning out a certain
amount of physical
output, while production
is used in a more or
less absolute sense.
Importance of productivity

More
Out put
More
Savings Increased
Wages

Low Improved Increased

Production Productivity Employment
Cost

Lower Increased
Prices Demand
More
Profits
ASSIGNMENTS FROM LESSON 1
Answer the following questions in one or two
sentences
( 2 marks each)
1. Define the terms ‘production’ and ‘productivity’.
2. How does production differ from productivity.
3. Mention two major objectives of industrial
engineering.
4. What are the factors affecting production ?Name of
them.
5. What do you understand by term productivity.
6. What are the factors to be considered for increasing
the productivity
7. Define the term productivity
8. Define the term production
 Answer the following questions
1. Distinguish between ‘production’ and ‘productivity’
2. Write down the scope and relevance of Industrial Engg.
in industrial establishments.
3. What is the importance of higher productivity in an industry ?

4. List the methods of increasing the productivity.

5. What are the benefits of increasing productivity ?
6. What are the factors of production ? Explain them briefly.

7. What do you understand by productivity? How it is measured?

 Types of production
a) Job order or unit production
b) Batch production or intermittent
production.
c)Continuous production.
 Job order or unit production
• Production is started after the receipt of orders
from the customer, or after receiving the job
order.

• Small quantity production and each job order

stands alone and is not likely to be repeated.

• Greater flexibility of operation and have general

purpose machines are required.

• The machineries are so arranged that maximum

different type of work can be easily and
efficiently carried out with the slight adjustments
of layouts
 Characteristics of Job order production
1. Planning can be done only after the job order is
obtained.
2. Mechanization and division of labour is not economical.
3. General purpose machineries and flexible layout are
preferred.
4. Product design takes more time
5. Skilled works to produce any product is necessary.
6. Highly skilled supervision and control necessary.
7. Flow of materials and parts from one location to another
is intermittent or discontinued.
8. The number of items to be manufactured is very small it
may even one item.
 Batch production
• Identical products are produced in batches of small
quantity.
• Instead of making one single product as in job
production, a batch or a group of product is turned
out at a time. But one lot differ from the other.
• Fluctuating demand can be best met with the batch
type production.
• Batch production is only an extension of job
production.
• The basic distinction between theses two lies in
product wise variation in job and batch wise
variation in quantity.
 Characteristics of batch production
1. Flow of materials are intermittent.
2. Both special purpose and general purpose machines are
used.
3. Semiskilled and as well as skilled workers are employed.
4. A combination of product layout and process layout is
used.
5. Products are produced in batches of small quantities.
6. Production is started only after the receipt of sufficient
supply order.
7. Divisions of labour is possible.
8. A good production control system is needed.
9. It is very common type of production.
10.Production planning is necessary for each batch.
 Continuous production
• Continuous production is the specialised
manufacturing of identical articles.
• The machinery and equipment are fully
engaged.
• The products having high demand in the
market are produced in large quantities in
a continuous manner.
• The continuous production can be
classified into two types.
a) Mass production or line production
b) Flow production or process production
 Mass production
• Identical articles are produced in very large quantities
using automatic machines and equipment.

• Eg:- Manufacture of bolt & nuts, automobile parts,

gears, house hold articles like pressure cooker,
electrical appliances like bulbs, fans, switches etc.

• In mass production simplification and standardisation

of products are made with the help of special purpose
(one purpose) machines, articles of standard nature
can be easily and economically be produced on a
large scale.
 Flow or process production
• The plant, equipment and machinery and layout
are designed to produced the required product.
• The arrangement is not flexible.
• It is normally designed for only one product.
• If the product is to be changed the entire
machineries and its layout and procedure is to be
changed.
Eg :- Cement factory, fertilizer industry, Chemical
industry, paper mill.
Due to the above reason flow production is known
as process industries.
 Characteristics of continuous production (Mass & Flow)
1. Large quantity is produced.
2. Products are highly standardized
3. Machineries are arranged in the sequence of production.
4. Material handling can be automated (conveyor belt, lift and cranes
can be used).
5. Unskilled workers can employed.
6. Supervision is a routine job.
7. Single purpose and special purpose machines are used.
8. Division of labour can be successfully implemented.
9. Workers become specialized quickly.
10. Work cycle is short and repetitive in native.
11. No resetting of machineries is required.
12. Production control is easy as the rate of production is standardized.
13. Production planning should be done at the beginning itself.
14. Materials flow in a fixed path in a specified sequence.
15. It offer lowest production cost per unit
16. This study can be applied to advantage, to different operations.
Difference between Job order &Batch order
 Production planning & control (PPC)
• Production planning involves management decisions relating to
How much to produce?
What materials and tools needed ?
What are the steps to be followed in the production
process?
Within what time limit the production is to be ready ? and
How much work is to be done in each work station ?

Production planning is a pre-production activity

involving arranging facilities and designing the
production system. It is based on the customer
demand and customer survey details and determine
the quantity, quality, delivery dates and price etc.
 Production planning & control (PPC)

➢PPC involves implementation of production plans or

schedules by coordinating different activities. It
ascertains that the activities and actual performance
are going on as per the plans. Production operations
are constantly evaluated, guided and directed as per
the plans formulated.

➢PPC may be defined as the systematic process of

planning production in advance , and controlling
each and every activity, process, schedules as per
the plans.
 Concept of P. P. C
The production is achieved by the transforming
the raw material into desired finished product as
per the customer demand.
But before starting the actual production process,
we must plan it properly. It is necessary to
decide in advance
• What to produce ?
• How much to produce ?
• Where to produce ?
• When to produce ?
• What are the competitors strategy ?
• Where is the market ?
 Objective of PPC
1. To find out the demand for a new product.
2. To forecast the demand for an existing product.
3. To execute in advance the cost of a new
product.
4. To make route sheet.
5. To prepare schedules for production.
6. To order for various activity to be performed
7. To control labour and material
8. To simplify the activity.
 Advantages of PPC
1. It increases productivity, so that better values for the
product
2. Prompt delivery of products to customers is possible.
3. It increases the wage structure and hence more
employee motivation.
4. It creates stable employment and improved working
conditions.
5. It gives more satisfaction to workers.
6. It gives economic and social stability to community at
large.
7. It also promotes security and prosperity to nation.
8. It ensures proper returns to investors and security.
 Functions of PPC

Pre-Planning Planning Control

Forecasting 1. Material 8. Dispatching

2. Method
Order writing 9. Inspecting
3. Machine
Product design 10. Expediting
4. Manpower
Planning planning 5. Routing 11. Evaluation
Process planning 6. Scheduling
7. Estimating

Feed Back
 Forecasting
It is a process of estimation of future activities. It is the
starting function of PPC function. A manager must
known the demand for his product. He has to estimate
the quantity and quality of future work. The survival of
an industry depends on its ability to forecast the demand
for its products correctly. The demand for a product
depends upon the factors like
a) Competitors strategy
b) Future changes in the production process.
c) Customer tastes
d) Arrival of new products from foreign countries
e) Government policies
f) Countries economic situation.
 Objectives of forecasting

1.To determine the production rate and

volume of production.
2.To determine the financial requirements.
3.To know the need for plant expansion
4. To formulate pricing policies
5.To decide the need for sales promotion
activities.
 Factors to be considered while forecasting
i) Trend : - Demand in the previous few years must
be considered, ie ; the demand is increasing or
decreasing.
ii) Cyclic variation :- Same products may have
alternate process of higher demand and lower
demand.
iii) Seasonal variations :- The product may have
demand for the same few months in every year.
iv) Irregular variations :- The demand may be
varied due to unforeseen causes like strike,
flood etc.
 Method of forecasting

1.Historic estimate
2.Trend line techniques
3.Sales force estimate
4.Correlation techniques
5.Sampling technique
 Historic estimate
• It assumes that what happened in past will be
happen in future also.
• For example If a company sold 3500 fans in last
summer, it expects to sell the same 3500
numbers this year also.
• This will be accurate if the factors effecting the
demand remain unchanged.
• This is rarely true; so this method is not
scientifically true and valid.
• So the final forecast is to be modified by some
other methods.
• But it should be remembered that it is the
simplest and cheapest method of forecasting.
 Trend line technique

1999 2001 2003 2004 2005

Years

➢ A statistical method
➢ This is employed when there is an appreciable
amount of historical data.
 Sales force estimate
• This method assumes that the persons in
contact with the market know best about the
future market trends and tastes.
• So this forecasting is based on the information
given by the salesman.
• These sales man gives their estimate about the
future demand for a particular period in their
region.
• Different sales managers at regional level may
send their report to the company.
• This report is studied and analysed and the
executives formulate the final estimate of sales.
• This technique is more reliable and useful when
the company is making limited number of
products and there are a few large customers.
 Correlation technique
• Correlation technique can be used if a
relationship between sales and other product or

No. Of Brake system sold

other economic and non economic phenomenon
exists.
• In this method the total sale of the related
product is found out based on the market
conditions.
• From this, demand for one’s product is worked No. Of trucks produced
out considering the market share.
• For example the sale of a lubricating oil is
related to the sale of automobile vehicle (truck
or bus or car etc.).
• In correlation technique, total sales for industry
is (eg:-car manufacturing firm) is found and then
based upon the market conditions, the volume of
sale for one’s own product (eg:- breaking
system) is predicted as shown in
 Process planning
• This is the preparation of a detailed working plan.
• It means the planning of production process.
• It determines the most economical method of
performing an activity.
• The following details are planned in process
planning.
1. The sequence of operation
2. The machines, tools and equipments needed for
each operation
3. The material required for the process.
4. Time required for each operation
5. Cutting speed, feed and depth of cut to be selected.
6. The skill required for the worker.
7. The accuracy and tolerance required for processes.
Information required for process planning
1.Quantity to be produced
2.Quality requirement
3. Product specification( drawings)
4.Availability of machines, tools, and
operators
5.Sequence of operation to be performed
6.Standard time for each operation
 Process planning procedure
Six steps:
I. Selecting most economical process :- For converting the
raw materials into desired finished products, we require
some processes like shaping, forming, grinding, welding,
brazing, soldering etc. One should select the most
appropriate and economical method of processing and
sequence that satisfies the products specifications. The
break even analysis can be used to find cheaper process.
The selection of process depends upon following factors.
i) Delivery date :- The firm has to keep the delivery date
promptly even by selecting costlier process.
ii) Quantity :- When lesser quantity is needed, machines
which have high cost of setting can not be selected.
We may select less cost machines.
iii) Quality :- The process which gives the required quality
should be selected.
 Process planning procedure

II. Selection of material :- The material should be of

right quality and chemical composition. The shape and
size should be such that the scrap is minimum.
III .Selection of jigs, fixtures and other special
attachments:- Suitable Jigs and fixtures are selected to
give higher productivity and reduce cost of production.
IV .Selection of cutting tools and inspection gauges:-
Select appropriate cutting tools and gauges to reduce
production time and inspection time.
V .Time calculation:- Set up time and standard time for
each and every operation is calculated with the help of
data available from the work study.
VI. Process Sheet :- All the above information is entered
in a printed process sheet.
 Process sheet
Process sheet
Part description Part No
Drg NO. Assembly No
Matl.specification Issued by
Lot size
Set

Labour
Std

Code
Sl. Description

Speed
M/C

Code

Feed
No of operation Up time
Time

With the help of a process sheet, it is possible to

estimate the following:-
1. Requirement of men, material, and machines
2. Time required for manufacturing the products.
 Break even analysis
➢ Also known as sales-volume
analysis
➢ Relationship b/w selling price,
sales volume, fixed cost, variable
costs and profits at various levels
of activity
➢ BEP total revenue = total costs
 Routing
➢ Determination of path that the materials should follow
in the plant as it is manufactured.

➢ Deciding the most economical path to be followed by

raw materials from machine to machine and from
department to department.

➢ To find out the best and cheapest sequence of

operation. So that those working in the shop are
instructed to carry the work through the workshop in a
systematic and economic manner.

➢ Decides what, where and how the work will be done.

 Routing
➢ In continuous production industry routing is very
simple, since the machines are arranged as per the
sequence of operation required on the component.

➢ In job order production firm has to prepare the

separate routing for each product.

➢ In batch production the routing have to be revised for

each batch of product.
 Routing procedure
1 The finished product is analyzed and broken into
number of components required for the product.
2. Bills of materials is prepared from the parts list and
decide what is to be produced in the plant and what is
to be purchased from outside.
3. Available machine capacities and machine
characteristics are find out.
4. Necessary operations through which raw materials has
to undergo are listed.
5. Path of flow of materials is decided.
6. Prepare a route sheet.
7. The economic lot size (Number of components to be
manufactured in one lot or batch) is determined.
8. Determine the scrap factors and places where scrap is
very likely to occur are identified. The cost of
production of each component is estimated.
Route sheet
A route sheet contains the description of operation
and department, machine number , tools used,
speed, feed, Set up time, operation time etc
ROUT SHEET

Product Assembly No
Part description Lot size
Drg No Issued by
Part No

Set up time

Total time
Opr time
M/C No

Tool No
Speed
Sl.No Description
Dept

Feed
of operation
 Scheduling
➢ Scheduling determines the starting and completion of
various operations in the manufacture of a product.

➢ The planning department while preparing schedules

will have to take into consideration the various types of
orders on hand and dates on their completion to fulfill
the promise as done to customer.

➢ Because of some parts are produced before the

delivery date, there would be a problem of storage and
of the parts which are required first are produce later
there would be delay in production.

➢ Thus it leads to idleness of men and machine both.

 Scheduling
➢ A production schedule is similar to a railway time table
showing when the product will enter particular process
and when it will leave the same for next operation.

➢ On the basis of this the production time can be

determined.
 Objectives of scheduling

1.To deliver the goods to the consumer in time.

2. To make the men, material and machine readily
available for the production.
3. To make the maximum use of manpower and
machine capacity.
4. To prevent overloading and under -utilization of
men and machines.
5. To keep minimum material in process.
6. To help in controlling the production
 Objectives of scheduling

• Meet customer due dates

• Minimize job lateness
• Minimize response time
• Minimize completion time
• Minimize time in the system
• Minimize overtime
• Maximize machine or labor utilization
• Minimize idle time
• Minimize work-in-process inventory
 Types of scheduling

1. Master scheduling
2. Parts scheduling
3. Machine loading schedule
 Master scheduling
➢ Gives weekly break down of the
production requirements.
➢ This is the first step in production
planning. Master Schedule for the
Fitting Shop
➢ As the orders are received
depending upon the delivery dates Max. Production - 150 hrs.
or priorities they are marked on the Min. Production - 8 hrs
master schedule.
Sl.No Week- 1 Week -2 Week -3 Week -4
➢ When the shop capacity is full for
the present week, the newly 1 60 30 60 45

acquired orders are carried over to 2 30 20 50 35

the next week and so on. So a
3 40 60
master schedule is updated
continuously. 4 10
➢ So it indicates the running total of
the production requirements and
shows work to be completed.
➢ It is the basis for all subsequent
scheduling techniques.
 Master schedule -Gantt chart
ABC COMPANY GANTT CHART

MASTER SCHEDULE From Dec2007 to Mar-2008

Sl.No Product Part Months

description No Dec Jan Feb March
800 800 800 800
200
1 A
500 500 500 500
2 B 300

700 700 700 700

400
3 C

Specimen model of master schedule

 Parts scheduling
• Parts schedule gives the number of units of different
parts to be produced for a given product.

• The schedule is prepared for a month. It gives the details

of parts to be produced for every week.

• Part schedule is prepared on the basis of master

schedule.
 Machine loading schedule
• It gives the information of allocating work load for various
machines. It is a time table for the working of various
machines. Normally this schedule is prepared for a
period of the week.

• It gives details of machine loading for every day of the

week.

• This scheduling is prepared in the basis of parts

schedule.
 Just In Time Manufacturing
• Think a situation where we produce the goods only at
the time when they are needed and in the quantity that is
needed.
• Here the inventories of finished goods and work in
process are almost nil.
• So we shall then have virtually zero inventories.
• This is founded by Taiichi Ohno ( Vice President of
Toyota ) and first implemented in Japan, Toyota Motor
Company.
• Now this is being tried at various automotive and electric
companies in the world.
• Just in time manufacturing is a philosophy rather than a
technique. By eliminating all wastes and seeking
continuous improvement, it aims at creating a
manufacturing system that is responsive to the market
needs.
 Definition of JIT
• JIT is viewed as “a production methodology
which aims to improve overall productivity
through elimination of waste and which leads to
improved quality”.

• JIT enables one to conceive , design, implement

and operate a manufacturing and supporting
systems based on principle of continuous
improvements and elimination of all kinds of
wastes.

• It should be noted that JIT is applied in mass

production work, and is not suited in intermittent
works
 Features of JIT

Eliminating Quality production

waste

Zero
Self disipline
inventory

Problem solving JIT Good vendor

by team relationship

Kanban
information system
 Advantages of JIT
• i) Low inventory carrying cost
• ii) Production cost can be reduced
• iii) Reduce the rejection rates
• iv) Reduce the lead times
• v) Fast detection of defects in production or in delivery
of supplies and hence low scrap loss.
• vi) Reduced inspection and rework of parts
• vii) High quality products at low cost
• viii) Better customer satisfaction due to prompt delivery
of quality products at lowest cost.
• ix) Increase direct labour productivity.
• vii) Increase indirect labour productivity.
 Dispatching
• Dispatching is the execution function of
planning.
• Dispatching is releasing of the work order
and other documents to different
departments to start production activities.
Instructions are issued to carry out the
production process as given in the route
sheet and schedule chart.
 Functions of dispatching
Release
Schedule to Inspectors
Production Order

Tool Issuing
Dispatching Work
Issue
Order
Order

Move Order Material

of material Issue
Order
Documents prepared in dispatching

1.Work order or job order or shop order

2. Material issue order
3.Move order
4.Tool issue order
5.Inspection card or order
6.Job time tickets
7.Final delivery notification
 Job order or shop order
•Job order is issued for authorizing the production
department to start the work.
•The job order gives the details about the
description of the part, quantity, the operation to be
done etc.
JOB ORDER
Part Name Quantity
Drg No Date of issue
Part No Approved by
Oprn No. Operation
Department Machine
Description

Date Required - Qty Required

Date completed - Qty Made-
 Material issue order or master
requisition
• This is also called material requisition slip or
stores requisition slip. This order authorizes the
stores to issue the material required for
production. This order gives the following
details.
1. Material description
2. Quantity
3. Time of issue
4. Department to which the material is delivered.
5. Cost of material
 Material issue order
MATERIAL ISSUE ORDER
Date :- No :-

Part No: Part name Qty Material Description

Material Charged to Cost

Qty Rate Amount
Job Order No :-

Expense No :-

Department :-

Deliver to Delivery date Costing done by

Checked by

Ordered by Delivered by Received by

 Move Order
• This order authorises the movement of
material.
1.From stores to production shop
2.Within in the shop
3.From one shop to another
4.From shop to finished goods stores.
 Tools Issue Order
• This is issued to the tool room. This authorizes
the issue of tools, jigs and fixers to the shops.

• A copy of the order is sent to the shops requiring

the tools.

• A tool room will keep ready the tools at the

required date.

• The shop people can collect the tools from the

tool room by submitting the tool issue order.
 Inspection Card

• This gives instruction to the quality control

section to carry out the inspection. This
gives information regarding
1) type of inspection to be done
2) the timing of inspections
3) inspection tool used.
 Job time ticket or Job card
• The ticket is issued for each job or each operation Entry in
the job time ticket is made by the worker. The time of starting
the job and the time of completing the job are entered in the
ticket. JOB TIME TICKET
 Final delivery notification

• This will indicate that the production of the

particular product is completed in the first
department.
• The receiving department should close the
job order only after the receipt of the final
delivery notification.
 Follow up and control
• After the dispatching function, it is to be
compulsory that progress of the job to be
regulated.

• A follow-up team report the daily progress of the

work in each shop in a pre-planned proforma.

• They also investigate the causes of delay and

deviations from the plan.

• The follow up will ascertain that the work is done

as per schedule and tries to boost it.
 Follow up and control
Purposes Follow up .
1. To see materials are reached the shop in time so
that production can be started as per
schedule.
2. To see that a particular product is passing through
all its operations from raw materials to final
product as per schedule.
3. To see that all the parts are ready for assembling
purpose in actual quantities and at required
time as per schedule.
4. To see the causes of delays due to equipment
break down, lack of proper tools, gauges, jigs and
fixtures etc.
5. To see the causes of major causes of rejections.
6. To see the errors due to routing, scheduling and
dispatching.
 Value engineering
• Value analysis is “ an organized creative approach
which has for its purpose the efficient identification of
unnecessary cost i.e., cost which provides neither
quality, nor use, nor life, nor appearance, nor customer
feature”.

• Another definition purposed such as “an organized

systematic study of the function of the material,
component, product or service, with the objectives of
yielding value engineering through the ability to
accomplish the desired function at the lowest cost
without degradation in quality”.

• Thus the basic objective of value engineering /value

analysis is to achieve equivalent or better performance
at a lower cost while maintaining all functional and
quality requirements.
 Value engineering
• It does this largely by identifying and eliminating
hidden, invisible and unnecessary costs.
• We can say that VE is a systematic application of
recognized techniques to identify the functions of a
product or service and provide those functions at
the lowest total cost.
• It is should be remembered that VE is not to be
treated as a mere cost reduction technique or
cheapening of the product.
• It is more comprehensive and the improvement in
value is attained without any sacrifice in quality ,
reliability, maintainability, availability, aesthetics
etc.
 Concept of Value
The concept of value is frequently confused with the
monitory price or cost of an item.
However value is not synonymous with cost.
As explained above value of a product is the ratio of
product function and performance to the cost of the
product , or value is the ratio of the sum of positive
and negative aspects of an object.
Value = Product function and performance
Cost of product
Or Value = Worth you get = Utility you get
cost you pay cost you paid
So the value of a product can be increased by
1. Decreasing the cost of the product for the same function
2. Increasing the utility with the same cost
3. A small increase in cost by a large increase in utility
 Phases of value analysis
1. Information phase :-to gather facts and determine cost
2. Analysis phase to define functions and identify problem
areas and opportunities.
3. Creativity phase :-to seek ideas to respond to problems
and opportunities , without judging the values of these
ideas.
4. Evaluation phase:- to select ideas to respond to
problems and opportunities , without judging the values
of these ideas.
5. Implementation phase:- to present facts, costs, and
values to management ; develop a plan; and motivate
positive action to obtain a commitment of necessary
resources to accomplish the task.
 Application of VE

Hardware Projects Software Projects Non- Traditionalareas

Machine tool Industry Marketing Information
Urban slum development
System
Automobile Industry
Production Information Staff welfare program
Military Equipments System

Material Handling Inventory control System Staff motivation program

Equipments Procedure
Import Substitutes Documentations Courtesy Improvement
Plans
 • Advantages of value engineering
1.Enables a fast cost reduction program.
2.It eliminate unnecessary functions.
3. Enables people to pin point areas that need attention and
improvement.
4. Provides a method of generating ideas and alternatives for
possible solution to a problem.
5. Provides a means of evaluating alternatives including
intangible factors
6. Provides a vehicle for dialogue
7.Improves the value of goods and services
8. Increasing organizational profit
9.Team spirit is increased and various new ideas get involved
which benefit the organizations as a whole.
10.The constant search for improvement will lead to greater all-
round efficiency.
 Aims of value analysis
i) Simplify the product
ii)Use (new) cheaper and better materials
iii) Modify and develop an improved design
iv) Use efficient processes
v) Reduce the product cost
vi) Increase the utility of the product by
economical means
vii) Increase the profit
 Plant Layout
Factors to be considered in locating industrial plants
1.Availability of raw material
2. Proximity to market
3. Transport facilities
4. Availability of power, water and fuel
5. Availability of suitable labour
6. Climate & atmospheric conditions
7. Commercial facilities
8. Local laws
9. Attitude of local people
10. Good communication facilities telephone, telex, fax,
internet etc.)

11. Good banking and health facilities

 Plant layout
Principles of plant layout

Min movement
Integration
of material

Flexibility PRINCIPLE OF Cubic space

PLANT LAYOUT utilisation

Smooth Safe
material flow environment
 Objectives of plant layout
1. It facilitate predetermined manufacturing process and cycle of
operations.
2. Facilitates quick movement of material & men by reducing time of
waiting and transportation.
3. Minimizes materials movement and material handling .
4. Efficient utilization of resources like men, materials and machines
5. Working conditions are safer, better and improved.
6. Achieves efficiency by effective planning and motivation
of people.
7. Achieves minimum overall cost by improving productivity, reducing
inventories of materials and work-in-process through their quick
movements, better utilization of machines, reducing wastages and
optimum utilization of available building space and services.
8. Improves quality of operations by proper selection of plant &
machinery , operations and sequencing.
9. Bottlenecks, delays and point of congestion are eliminated.
10.Plant maintenance becomes simpler.
11.Overall simplification of production process in terms of equipment
utilization, reducing manufacturing time, and better provision for
maintenance
Basic type of flow patterns

L-Flow

U-Flow

S-Flow O-Flow
 Types of plant layout
1.Fixed position layout.
2.Product layout .
3.Process layout.
4.Combination of process and product
layout.
• Fixed position layout

Tools

Materials
Machines

SHIP AIR CRAFT

Workers
 Fixed position layout
This type of layout is used in the following situations.
➢ When it is not practicable to shift the equipment /
product.
➢ When the operation mostly requires hand tools
and simple equipments.
➢ When only few pieces are required to be
produced.
➢ This layout is employed in ship building / ship
repair, air craft manufacture , pressure vessel
manufacture, and heavy metal fabrication etc.
• Advantages of fixed position layout
1. It ensures continuity of operations.
2. It involves least movement of materials.
3. Maximum flexibility for all sort of changes in the product

and process.
4. Different types of projects can be handled with the same
layout.
Disadvantages of fixed position layout
1. It is expensive and time consuming.
2. Responsibility is entrusted only to highly skilled labours.
3. It requires high equipment handling cost.
4. Utilization of tools and machinery is low.
 Product layout
This layout is used where
i) The volume of production is very high
ii)Nature of work is standardized
iii) Process operations are balanced
iv) Adequate supply of material is possible.
• Product layouts are of two types.
a) Paced line
b) Un-paced line.
 Paced line layout
In this the work centres are connected through a conveyer
belt system which moves at fixed speed. The work
centres are properly balanced so that the flow is
continuous or uninterrupted. Here the cycle time is
decided by the speed of the conveyor.
Hack saw Turning Inspection Drilling
S cutting
T
O
R
E
Room
Milling
S
T
O
C
K

Room Packing Heat treatment Grinding Inspection

 Unpaced line layout
• Here the work centres can not be connected by conveyer, but
sperate material handling equipment is needed at different
work centres. The cycle time is determined by the
performance of the slowest machine.

STORE
Material B

Forging Welding S
T
O
Material A C
K
Sawing & Turning Inspection Assembling Turning Assembling Inspection
shearing Room

Material C

Grinding Drilling Milling

Advantages of product layout
1. Smooth and Continuous work flow
2. Automatic material handling
3. Less material handling movements at less time & cost.
4. Product cycle time is reduced.
5. Simple Production planning and control.
6. Better coordination , and Utilization of man & machines.
7. Less space for same volume of production.
Disadvantages
1. Little flexibility in layout
2. If the any one of work station fails entire line is comes to
halt.
3. If one machine fails a stand by machine should be ready.
4. It is difficult to increase production beyond the capacities
of production lines.
 Process layout
• In this layout, machines and services are
grouped on a functional basis and operation of
the same type are performed in the same area.
For example, all welding work are carried out at
one place and all machining work are carried out
at one place and all drilling at another.
• This is suitable where
(i) Expensive machinery are required
(ii) Production involves a large variety of items
having limited volume in each type.
(iii) Operations are not balanced in time.
(iv) When the demand is small and intermittent.
• Stores Stock Painting

Foundry Machine Drilling

shop

Heat
Carpentry Grinding
treatment

Process layout of factory

Lathe Milling
Store Room
Machines Machines

Drilling Grinding Heat

Machines Machines Treatment

Stock Room Painting Inspection

Process layout of a machine shop

Advantages
1. Supervision is simple and easy as similar jobs are manufactured
on similar machines.
2. Less machines are required and hence reduced investment.
3. As different jobs are manufactured, the work becomes more interesting to
workers.
4. If there is a breakdown in one machines, it does not effect the production.
5. The layout is flexible and hence it can be easily managed to the change in the
rate of production, design of products, or in the raw materials used.
6. Better utilization of the available equipment.
Disadvantages.
1. Floor area required is more.
2. The production cycle time is more due to long distance of different machines
and waiting.
3. In process inventory is large.
4. Production planning and control is more difficult, as it is necessary to plan
and supervise the work of each department, each worker and machine.
5. More inspection has to be done when the work passes from one department to
another.
6. As the different machines are placed at long distance the material handling cost
is more.
Combination of product and process
layout
• In this case machinery is arranged in a process layout but group of number of
similar machines is then arranged in a sequence. To manufacture various
types and sizes of products. In this layout even if the product varies in size
and type the sequence of operations remain same or similar.

Product layout

Hacksaw Lathe Heat Surface Packing

cutting M/C Machines treatment finishing machines
Process layout

Stocks
Stores

Combination layout for making different types and sizes of screws.

 Factors Influencing plant layout
1. Type of production
2. Type of production system
3. Availability of area
4. Material handling system
5. Type of building
6. Future Expansion plan
Factors influencing layout.
• Layout design Procedure
• The overall design procedure can be
considered to be composed of four phases
via.,
Phase I Location
Phase II General Overall layout
Phase III Detailed layout
Phase IV Installation
 Plant maintenance
• Need for plant maintenances
• plant maintenances is needed and essential for the following
reasons
1. In order to protect the plant and building
2. In order to keep the machines, equipments and building fittings, tools in
good condition at all time and every time
3. In order to prevent the breakdown of machines, processes and to reduce
loss of production to minimum
4. Rattling and defective machines, tools and equipments may affect the
quality of work, so the need for maintenance arises
5. Plant maintenance is necessary to improve the efficiencies of production
system
6. Plant maintenance is necessary to meet the scheduled date of
production
7. Plant maintenance is necessary for the safety of machines
8. It helps to achieve all the objectives ( i.e., profit maximization,
target achievement etc ) with most economic combination
9. It helps to reduce the wastage and accidents
10. It helps environmental protection and pollution control activities
 Plant Maintenance
Types
1. Preventive maintenance
2. Predictive maintenance
3. Breakdown maintenance
4. Scheduled maintenance
5. Condition based maintenance
Plant Maintenance
 Preventive maintenance

A good scheme of preventive maintenance involves the

following activities.
1. Periodic inspection at regular intervals.
2. Preparation of inspection sequence and list the items
to be inspected.
3. Prepare system to report chances of defects in a
structured manner.
4. Formulate a high power committee to systematic
analysis of defective parts whose recommendations are
followed and implemented
5. A history card of all machines are opened where all
inspection, repair, modification etc are recorded.
6. Preventive maintenances is not sub contracted it is an in
house activity.
 Objectives of preventive maintenance
1. To minimize the possibility of breakdowns of
machineries and
services.
2. To make plant and machinery always available
for ready use without any possible delay.
3. To maintain optimum productivity.
4. To keep the required quality standard
5. To ensure safety to workers.
6. To retain the value of machineries and tools
7. To reduce the pollution control activities.
8. Increased machine / tool / equipment life.
9. Reduce material wastage & accident.
 Predictive maintenance
➢ In this method we can predict the future failure
before hand and carry out appropriate
preventive measures.
➢ It make use of sophisticated test equipments
such as electronic sensors, audio gadgets,
vibration analyzers, amplitude meters, precision
gauges, strain gauges, pollution testers, etc.
➢ Unusual sound emitting from a machine, undue
heat produced in mechanical and electric parts,
excessive pollutants from an engine may be an
indication or symptom of danger.
➢ These can be censored, observed and detected
at right time and necessary repairs are effected,
and thus faulty parts are replaced.
Breakdown maintenance (Corrective maintenance )
• Disadvantages of breakdown maintenance.
1. Production is delayed or stopped.
2. Leads to poor quality.
3. Plant life is reduced.
4. Increases cost of production due to delay and stoppage of
production.
5. Increased accidents and wastage.
6 Increased pollution.
7. Reduced profit.
• Causes of breakdown of machines / Equipment
1. Carelessness towards minor repairs.
2. Failure to replace worm out parts.
3. Non application of Lubrication
4. Careless operation and mishandling of tools
5. Neglect cooling system.
6. Over loading the machine / Equipment.
• Scheduled maintenance
• This type of maintenance is conducted by
a predetermined and preplanned schedule
(Time table).
• Normally this is done according to the
recommendations of the supplier of the
equipment.
• For example the two wheeler supplier
gives a time table or schedule to change
the oil, to check the lubrication system,
Ignition system, battery maintenance etc.
 Comparison between break down maintenance
and preventive maintenance
Preventive maintenance
1 Maintenance is done only Maintenance is done
after machine Fails before the machine fails
2. Maintenance is done after It is done to prevent
break down break down

3. The time of break down is Maintenance work is well

unexpeted. So the planned
maintenance can not be
planned
4 Not suitable for critical Suitable for all types of
machineries like cranes, equipment
hoists, boilers etc

5 No down time

6 Production loss takes No production loss

place