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OIE 351 - Lecture Material

Artificial intelligence and Data Science (Madras Institute of Technology, Anna University)

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Introduction to Industrial Engineering OIE 351

Arunai Engineering College (Autonomous)

OIE351 - INTRODUCTION TO INDUSTRIAL ENGINEERING

LECTURE MATERIAL
UNIT I INTRODUCTION
Concepts of Industrial Engineering – History and development of Industrial Engineering – Roles of
Industrial Engineer – Applications of Industrial Engineering – Production Management Vs Industrial
Engineering – Production System – Input Output Model – Productivity – Factors affecting
Productivity – Increasing Productivity of resources – Kinds of Productivity measures.

1.1. CONCEPT OF INDUSTRIAL ENGINEERING

The American Institute of Industrial Engineers (AIIE) has defined the special field of
industrial engineering as “Concerned with the design, improvement and installation of integrated
systems of people, materials, equipment and energy.
It draws upon specialized knowledge and skill in the mathematical, physical and social
sciences together with the principles and methods of engineering analysis and design to specify,
predict and evaluate the results to be obtained from such systems”.
Industrial Engineering is engineering approach to the detailed analysis of the use and cost of
the resources of an organisation. The main resources are men, money, materials, equipment and
machinery. The Industrial Engineer carries out such analysis in order to achieve the objectives (to
increase productivity, or profits, etc.) and policies of the organisation. An Industrial Engineer’s
techniques go beyond the mechanical cost factor. He is associated with organization structure,
administrative techniques, human (labour) problems and at the same time. he understands the
relationship between efficiency and consent (of the working group).
Essentially, the industrial engineer is engaged in the design of a system and his function is
primarily that of management.
If industrial engineer had to focus on only one concept to describe his field of interest and
objective, it would have to be productivity improvement.
Productivity improvement implies:
 A more efficient use of resources,
 Less waste per unit of input supplied,
 Higher levels of output for fixed levels of input supplied and so on.
The inputs may be
 Human efforts
 Energy in any of its myriad forms,
 Materials,
 Invested capital etc.
Succinctly stated, the mission would be to try to produce more or to serve better without
increasing the resources being consumed.
1.2 HISTORY AND DEVELOPMENT OF INDUSTRIAL ENGINEERING
What industrial engineering is today and aspires to be in future is determined by what has
gone before. Industrial engineering had its roots in the Industrial Revolution (around 1750); it was
nourished by individuals who sought to advance organisation and management principles at an early
date; it emerged as a separate discipline and was formulized in the late nineteenth and early twentieth
century's; and it achieved maturity after World War II
The Industrial Revolution resulted from the advent of new inventions, especially in the textile
industry, then steam engine, advances in metal cutting and the production of machine tools. These led
to factories with large number of workers.
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With the growth in the size of industries, came the beginning of management and
management thinking.
The application of the scientific method of analysis, experimentation and practical
demonstration had been extended to the production of machine tools, more complicated processes,
and better products. Now it was being extended to man’s thinking on organisation and management
principles and methods. Scientific Management as a professional approach has yet to come, waiting
on the works of pioneers in the field. Historians of science and technology might argue as to the
beginning of industrial engineering.
The generally accepted beginnings relate to the work done by F.W. Taylor, who was
concerned primarily with concepts of productivity, even though he did not refer to it in those terms.
Prior to Taylor’s work, however, there were others, whose writings referred to concepts that
ultimately became associated with industrial engineering, whose impact on Taylor is difficult to
assess. One of the earliest of these is Adam Smith’s treatise The Wealth of Nations, published in
1776.
The concepts Adam Smith expressed concerning the proper division of labor, while not
original, nevertheless became an important factor in the unfolding of the impending Industrial
Revolution.
The writings of Adam Smith and those of both his students and contemporaries were
important milestones in the development of the factory system and of the Industrial Revolution which
it created. Adam Smith was an economist not an engineer, and as a result, his writings came from this
perspective.
A more direct line to the pioneering in industrial engineering might be provided by Charles
W. Babbage who wrote On the Economy of Machinery and Manufactures in 1832.
Perhaps one of the most important contributions to industrial engineering that Babbage made,
although it was not so recognized at the time, was his attempt to build a computer--or as he referred to
it, an Analytical Calculating Machine.
During the latter half of the nineteenth century, there were others, primarily in United States,
who clearly provided the impetus and thinking that led to interest in the start of formal education in
the field of Industrial Engineering. One such person was Henry R. Towne. Towne emphasized the
economic aspects and responsibilities of the engineer’s job in a paper that he presented to the ASME.
Another active worker and writer was Frederick A . Halsey, the father of the Halsey premium
plan of wage payment.
A third individual who laid much of the ground work for the developing activity-industrial
engineering was Henry L. Gant, the originator of the Gantt Chart.
Probably the most often quoted and generally acknowledged instigator of studies that have led
to the discipline of Industrial Engineering and who was himself a mechanical engineer, was Frederick
W. Taylor. Though Taylor did not use the term industrial engineering in his work, his writings and
talks under the aegis of ASME are generally credited as being the beginning of the discipline --
industrial engineering. Taylor, however, preferred the term Scientific Management. ‘What Taylor was
proposing, was a more rational and planned approach to the problems of production and shop
management. Besides management problems, Taylor was active in research on metal cutting and the
technical problems of production as well.
The other giant of the early dates was Frank Bunker Gilbreth. He, 100, was an engineer and
obviously had been impressed by the work and writings of Taylor.

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Introduction to Industrial Engineering OIE 351

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Taylor focused on planning and organization of work whereas Gilbreth (husband and wife)
was interested in improving the efficiency through improvement of methods of doing a work i.e.
method study.
There were many others who should be recorded in any detailed history of the field of
industrial engineering, however, space limitations do not permit more than a mention of their names:
 Hugo Diemer Charles B. Going
 H. Emerson Robert Hoxie
 D.S. Kimball G.H. Shepard
 A.G. Anderson L.P. Alford
 Alan Mogenson R.M. Barnes
 M.G. Mundel and H.B. Maynard.
As the result of the developments in the field of industrial engineering, in 1908, the first
separate departments of Industrial Engineering were established at Pennsylvania State University and
at Syracause University.
The first Ph.D. granted in the U.S.A. in the field of industrial engineering was the result of
research done in the area of motion study. It was awarded to Ralph M. Barnes by Cornell University
as recently as 1933.
Most of the leaders of the early work in industrial engincering focused their activities on
motion study and related areas of work at the individual work place to make it more productive.
The 1930s were a decade of economic hardship and social unrest. The great depression made
management extremely cost conscious and created an environment inwhich industrial engineering
principles and techniques were given serious consideration and fairly widespread application.
At the close of the decade, the impact of World War II was beginning to be felt in terms of
increased industrial production; this provided a further stimulus to industrial engineering precepts and
practices.
Trade unionism grew extensively in the 1930’ and workers felt less fear of wage rate cutting.
Many modern industrial engineering techniques had their genesis during the period 1940-
1946. Predetermined time standards (such as MTM and Work-Factor), value engineering and systems
analysis are a few of these.
One of the fascinating products of World War Il was the activity which came to be known as
Operations Research (O.R.), basically, which is a process of applying statistical and higher
mathematical techniques to the solution of real-world problems.
A highly significant era in the development of industrial engineering began after World War
II A great many new activities developed and the application of principles and techniques was vastly
broadened.
The activities were:
(i) Industrial engineering and computer;
(ii) Development of system analysis and design;
(iii) Application of mathematical and statistical tools;
(iv) Network planning techniques and their application;
(v) Value engineering;
(vi) Behavioural science and human factors.
It was primarily these two developments—the mathematical advances and their applications
in the field of operations research and the development of high speed, stored programme digital
computer—that literally changed industrial engineering from a non-quantitative empirical science to
one of considerable mathematical sophistication and caused it to be considered 2 hard science.
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Introduction to Industrial Engineering OIE 351

Arunai Engineering College (Autonomous)

An additional element should be considered in reviewing the development of industrial

engineering and that is human factors ot human engineering or ergonomics.
As result of these developments, the industrial engineer of today has many more sophisticated
tools with which to analyze his problems and to design new and improved systems.
1.3. ROLES OF INDUSTRIAL ENGINEER
Given below are different types of roles and functions, an industrial engineer may need to
take on. More than one may occur at one time e.g,, advisor/analyst/reviewer in evaluating the
effectiveness of 2 new factory built a year ago.
Roles and functions of an Industrial Engineer:
1. Advisor/Consultant - available to others for interpretation of data, review etc.
2. Advocate[Activist - promote actively a process or approach.
3. Analyst - separate a whole into parts and examine them to explore for insight and
characteristics.
4. Boundary spanner - bridge the information/interest gap between industrial engineering and
user.
5. Motivator - provide stimulus and skill availability to a group or individual.
6. Decision maker - select a preference from among many alternatives for topic of concern.
7. Designer / planner - produce the solution specifications.
8. Expert - provide a high level of knowledge, skill, and experience on a specific topic.
9. Coordinator and Integrator
10. Innovator / inventor - seek to produce a creative or advanced technology solution.
11. Measure - obtain data and facts about existing conditions.
12. Project Manager - operate, supervise and ¢valuate projects.
13. Trainer / educator - in the skills and knowledge of industrial engineering.
14. Data gatherer
15. Negotiator.
1.4 APPLICATIONS OF INDUSTRIAL ENGINEERING
Before 1940, Industrial Engineering was mainly applied to manufacturing industries for
improving methods of production, to develop work standards or to formulate production control and
wage policies.
Later on, the use of industrial engineering also spreaded to non-manufacturing activities such
as construction and transportation, farm and air-line operations and maintenance, public utilities,
government and military operations.
Still today, Industrial Engineering finds major applications in manufacturing plants and
industries. In an industry besides the production, other departments utilising industrial engineering
concept are Marketing, Finance, Purchasing, Industrial Relations etc.
1.5 PRODUCTION MANAGEMENT
Production Management centers on two major areas :-
(1) Design of the production system which includes product, process, plant, equipment and so on,and,
(2) Development of the control systems to manage inventories, product quality, production schedules
and productivity.
Operations are at the center of the diagram because they are the dynamic doing elements of
the production process. Yet, it is clear that we cannot dismiss any of the other elements of the PM
cycle. Operations cannot exist without them. The process is a time-stream of operations which is kept
under control, just as a car being steered along a winding highway must be controlled.

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Introduction to Industrial Engineering OIE 351

Arunai Engineering College (Autonomous)

Figure 1.1 The Production Management cycle.

If major investments in system design are at the core of our considerations, we say that a strategic
decision is warranted. On the other hand, if implementation patterns are central to the manager’s
problems, then we say that a tactical decision is called for. This distinction is useful. Taczics are
applied to the methods and instruments of implementation ; strategies refer to the design decisions.
Minor design modifications characterize the tactical level For example, individual jobs can be
redesigned, machines replaced and materials altered. Such changes are represented by loop 1 (fig. 1.1)
which has a greater volume of usage than planning loop 2/ which operates when start-up of a new
process is required. Following the various connections of the figure, we observe that. operations is
engaged in a central way through a series 'of connections 3, 4, 5, 6, 7 and 8 to implementation, control
and evaluation. And this control subset is essential to the organization's planning system.
Fig 1.1 also reflects the great variety of production-management responsibilities. It includes the
facilities and abilities for the detailed consideration of such factors as related to design of
' production process :
1. Product design.
2. Job and process design.
3. Equipment selection and replacement.
4. Labor skills and training programs.
5. Input materials selection including raw materials and subcontracting.
6. Plant selection and layout.
7. Scheduling steps of the plan.
8. Implementing and controlling the schedule.
9. Operating the production system.
In addition Fig. includes consideration of control system such as :
1. Inventory control policies.
2. Quality control policies.

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Introduction to Industrial Engineering OIE 351

Arunai Engineering College (Autonomous)

3. Production-schedule control policies.

4. Productivity and cost control policies.
5. Constructing control systems.
6. Implementing and operating control systems.
7. Modifying policies and designs.
1.5.1 PRODUCTION MANAGEMENT VERSUS INDUSTRIAL ENGINEERING
 Production Management attempts to familiarize a person with concepts and rechniques
specific to the analysis and management of a production activity.
 Industrial engineering, on the other hand, deals with the analysis, design, and control of
productive systems. By a productive system is meant any system that produces either a
product or a service.
 Production management tells how to manage (i.e., direct human efforts) in a production
environment, with less attention paid to the analysis and design of productive systems.
 It is generally assumed that industrial engineers will not operate the systems they design.
 The training of an aircraft pilot is analogous to management education, whereas the designing
of the aircraft is somewhat analogous to industrial engineering education.
OPERATIONS MANAGEMENT
Operations Management which evolved from the field of production or manufacturing
management is concerned with the application of the basic concept and principles of management to
those segments of the organisation that produce the goods and/or service's of the organisation
Traditionally the term production brings to mind such things as machine shops, manufacture
of real goods etc.
Operations management is concerned with the management of the producing function m any
organisation.
Specifically operations management involves designing the systems of the organisation at
produce goods or services and with the planning and controlling of the day-to-day operations
which take place within these systems.
The overall focus of operations management is the effective integration of res. urces in the
pursuit of organisational goals.
In order to produce or transform various inputs into goods and/or services, an opera inig
system is required.
An operating system consists of the processes and activities necessary to transform various
inputs into goods and services.
Operating systems exist in all organizations and are composed of people, material, facilities
and information. The end result of an operating system is to add value by improving, enhancing or
rearranging the inputs.
PRODUCTION
Concept
Production is any process or procedure developed to transform a set of input elements like
men, materials, capital, information and energy into a specified set of output elements like finished
products and services in proper quantity and quality, thus achieving the objectives of an enterprise.
The essence of production is the creation of goods, may be by the transformation of raw material or
by assembling so ‘many small parts (as in television or scooter manufacturing). Production in
everyday life can be noticed in factories, hospitals, offices, etc. There are four recognized factors of
production.
Factors
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Introduction to Industrial Engineering OIE 351

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1. Nature (land and other natural resources),

2. Labour (human efforts),
3. Capital (factory building, machinery, tools, raw materials etc.), and
4. Enterprise (activity that organises other factors of production into an operating unit).
PRODUCTION FUNCTION
A Function is the expression of the relationship amongst a number of variables. The value of one
variable depends upon the value of the other. Production Function is concerned with the creation of a
product. It establishes the relationship between the quantity of output furnished or given out by a
productive process and the quantities of different inputs used in that process. Algebraically a
production function can be written as:
y = f(c1,c2,c3,...cn)
where quantity 'y’ of the product Y which is produced depends upon the quantities c1, c2, c3,....cn of
the inputs C1, C2, C3,...Cn, respectively.
A production function thus involves awide rangeof activities from the plant location to the
packing of products to be distributed by the marketing division of an organisation.
The modern evolution of the production function started with the Industrial Revolution. The
new machinery was developed which helped in starting new and big industries and along with this,
the era of ‘mechanisation began. A major momentum to the improvement of production function was
supplied after 1880 by the advancements in management techniques. F. W. Taylor was the renowned
pioneer to contribute management theory to the production function. He is considered as the father of
Scientific Management. He developed a number of management principles. Other persons associated
with the scientific management were Gantt, Emerson, Gilbreth, etc.
Various factors like labour charges, dearth of skilled operators, human errors, etc., led to
automation, i.e., the automatic operation and control of machinery and processes. The first stage in the
evolution of automation is Detroit Automation, second stage Feed Back Control, and third stage is
Computer Technology.
Related to production, an always difficult managerial decision is regarding the selection of
Plant Site and then Plant Layout. Plant Location should be such that production and distribution costs
are minimum but the profit is maximum. After locating the site, the facilities (equipments, etc.) have
to be laid out. A good plant layout permits the materials to move at the desired speed and at minimum
cost. This subject has been dealt in the fourth chapter of the book.
Before starting the actual production, one has to plan the same. Production Planning and Control,
considers the determination and regulation of production processes and has different functions like
routing, scheduling, dispatching, progress control, etc. This topic has been covered under chapter
seven of the book.
Another important function is Research and Development. Research means the critical
investigation into natural sciences in order to acquire new knowledge. Applied research explores facts
and information for the practical problems in mind and thus aims at achieving immediate results
practical problems; whereas pure research is carried out to add to the knowledge in a particular field
without expecting its immediate use to any practical problem. Development comes after applied
research. It involves design and fabrication of new or modified products and then testing them to find
their usefulness.
1.6 PRODUCTION SYSTEM
The production system is a part of a larger system — the business firm.
The production system can be viewed as a framework or skeleton of activities within which
the creation of value can occur.
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Introduction to Industrial Engineering OIE 351

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Briefly, the difference between the value of inputs and the value of outputs represents the
value created through production activities.
At one end of the production system are the inputs and at the other end are outputs.
Connecting the inputs and outputs are a series of operations or Processes, storages and inspections.
Fig. 2.1

The concept of production system is applicable to both production of components and

production of services as well.
The production of any component or service can be viewed in terms of a production system.
For example, the manufacture of furniture involves such inputs as wood, glue, nails, screws, paints,
sand paper, saws, workers etc, After these inputsare acquired, they must be stored until ready for use.
Then several operations, such as sawing, nailing, sanding and painting can occur through which inputs
are converted into such ouzputs as chairs, tables, etc. After the finishing operation, a final inspection
occurs. Then the outputs are held in stock rooms until they are shipped to the customers.
Examples of service industries which use production concepts are hospitals, railroads,
airlines, supermarkets, automobile repair shops, etc.
1.6.1 ANALYSIS OF PRODUCTION SYSTEMS
FACTOR JOBBING BATCH MASS PROCESS

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Introduction to Industrial Engineering OIE 351

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Fig. 2.2. Analysis of Production Systems

1.7. INPUT OUTPUT MODEL
It is one of the basic models of the production system. A production system is the set of

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Introduction to Industrial Engineering OIE 351

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interconnected input-output elements and is made up of three component parts namely inputs, process
and outputs (Fig. 2.3). A wide variety of inputs are transformed so that they give out a set of outputs,
The transforming process can be complicated and the design of an actual input and output system for
manufacturing may be expensive and difficult.

Fig. 2.3. Input-Output model. Output

The efficiency of an engineering system (a machine) = 1
Input
and a system with output equal to input is considered to be ideal. But in a system of Production
Management this definition of efficiency means utter failure and ultimately the end of the business. In
economic system, the efficiency has to be greater than one — which means a state of profit.
A production management system comprehends and integrates both engineering and
economic criteria in its activities.

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Introduction to Industrial Engineering OIE 351

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1.8. PRODUCTIVITY
Productivity of a production system is analogous to the efficiency of a machine. Just as it is
desired to increase the efficiency of a machine, it is also aimed at to raise the productivity within the
available resources.
Productivity may be defined as the ratio between output and input. Output means the amount
produced or the number of items produced and inputs are the various resources employed, e.g., land
and building, equipment and machinery, materials, labour, etc.
Example. 2.1. Calculation of productivity:

Purpose to Increase Productivity

(a) For Management 1. To produce good earnings

2. To clear the debts or loans
3. To sell more
4. To stand better in the market
(b) For Workers 1. Higher Wages
2. Better working conditions
3. Higher standard of living
4. Job Security and satisfaction
(c) For Customers 1. Reduced price of the articles

In the true sense, the productivity can be said as increased if more products can be obtained
from the same amount of resources, i.e., available resources.
1.9. FACTORS AFFECTING PRODUCTIVITY
(a) Factors affecting National Productivity
1. Human Resources
2. Technology and Capital Investment
3. Government Regulation
(b) Factors affecting productivity in Manufacturing and Services
1. Product or System Design
2. Machinery and equipment
3. The skill and effectiveness of the worker
4. Production volume.

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A-1. Human Resources

The general level of education is an important factor in national productivity. The use of
computers and other sophisticated equipment and systems requires better educated employees.
Government can help by sponsoring more education, especially in fields that directly affect
productivity.
Employees need to be motivated to be productive. Pay is not enough; they need to have good,
safe, working conditions and to be recognized as the most vital part of the enterprise.
Labour unions and management may be adversaries in negotiating pay and benefits but can
cooperate in seeking productivity improvements, to the benefit of all.
A-2. Technology and Capital Investment
The major factor in long range continuing productivity improvement is technology, and new
technology depends on Research & Development.
For industry or services to put new technology into use they must invest in new machinery
and equipment.
The government can do the following:
(i) Promote R & D in Industries and Universities.
(ii) Encourage personal savings and reduce taxes on profits so that people invest in new
facilities.
(iii) Allow depreciation rates that will provide cash flow for new investment.
(iv) Directly encourage new investment through increased investment tax credits.
A-3. Government Regulation
An excessive amount of government regulation may have a detrimental effect on productivity.
Government can do much to eliminate unneeded regulations and to make cost-benefit analysis
to determine the necessary regulations such as those on health and safety.
B-1. Product (or System) Design
If through better product design, a product can be simplified by eliminating some of its parts,
it is obvious that the material these pieces are made of will no longer be needed. Nor will the
equipment, tooling, and labour to make them be required. Value Analysis can bring out many
product design changes that improve productivity.
R & D is a vital contributor to improved product design.
Standardization of the product and the use of group rechnology are other design factors that
make possible greater productivity in the factory.
B-2. Machinery and Equipment
Once the product is designed, then how it is made offers the next opportunity for productivity
improvement. The equipment used —machines, tools, conveyors, robots, the way the factory is laid
out—all are important.
Computer has helped design the products (CAD), it helps operating complicated machine
tools (CNC machines) and it controls the inventory of material and parts. It has become an essential
ingredient in productivity improvement.
B-3. Skill and Effectiveness of the Worker
The trained and experienced worker can do the same job in a much shorter time and with far
greater effectiveness than a new one.
However, even the well-trained employees must be motivated to be productive.
B-4. Production Volume

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Assume that the volume of output is to be doubled. The number of direct workers would have
to be doubled and a few indirect workers might also be needed. But there would probably not be a
need for more engineers, research scientists, headquarters staff people or other support
personnel. So if the output is doubled, the productivity of these support people is in effect
doubled.
1.10. INCREASING PRODUCTIVITY OF RESOURCES
It implies, getting more number of goods (output) from the same amount of resources (input),
as explained under:
(a) Material. Industries in which the cost of raw material is a big percentage of the cost of
finished goods, higher productivity can be achieved through proper use of materials, i.e., by reducing
scrap. Sometimes alittle change in the design of the component or component layout may save a lot of
material. Productivity of materials can also be increased by using correct process, properly trained
workers, suitable material handling and storage facilities and proper packaging. All these factors
reduce scrap rate.
(b) Labour. A little change in the design of component parts 50 as to facilitate final assembly,
can increase the number of products assembled per day with the same amount of labour. ‘Work
methods if improved through work study techniques, can substantially increase the rate of production.
(c) Plant, Equipment and Machinery. Productivity can be increased through the use of
improved tools (e.g., cutting tools in a machine shop), simple attachments and other devices. Total
production times can be cut short considerably by improving machine setting up methods, thereby
reducing set-up times. Proper maintenance will (avoid sudden breakdown and) add to the
productivity.
(d) Land and Buildings. A suitable plant layout can accommodate more machinery in the
same space and thus raise productivity. Proper orientation, construction and inside conditions of a
building definitely affect productivity.
Example 2.2 . There are two industries manufacturing twotypesof pluThge sstan.dar d time per piece
is 1.5 minutes. The output of the two industries is 300 and 200 respectively per shift of 8 hours.
(a) What is the productivity of each per shift of 8 hours?
(b) What is the production of each per week (6 days) on the basis of double shift?
Solution :

Practices advocated to improve worker’s productivity

(i) Have shorter 3 or 4 day workweeks by lengthening shifts to 10 to 13 hours.
(i) Tie wages more closcly to output and use merit awards.

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(iii) Develop and utilize more standard times in service industries.

(iv) Redesign the content of jobs to make them more interesting and challenging.
(v) Improve communications to encourage everyone to work toward the same desired
objectives.
1.11. KINDS OF PRODUCTIVITY MEASURES
(1) Labour Productivity
There source inputs are aggregated in terms of labor hours. Hence this index is relatively free
of changes caused by wage rates and labour mix.
(2) Direct labour cost productivity
There source inputs are aggregated in terms of direct labor costs. This index will reflect the
effect of both wage rates and changes in the labor mix.
(3) Capital productivity
Several formulations are possible. In one, the resource inputs may be the charges during the
period to depreciation; in another, the inputs may be the book value of capital investment.
(4) Direct cost productivity
In this formulation, all items of direct cost associated with resources used are aggregated on a
monetary value basis.
(5) Energy productivity
In this formulation the only resource considered is the amount of energy consumed.
(6) Raw material productivity
In this formulation, the numerators are usually weight of product; the denominators are the
‘weight of raw material consumed.
Sources of Information for developing measures of productivity
An examination of the various measures of productivity as described above, indicate three
major sources of information for constructing such indexes:
(i) Product Identification Information
(ii) Accounting Information
(iii) Work Measurement Information
(1) Product Identification Information
The product catalogs and drawings serve to provide a framework for identifying the different
kinds of products prior toweighting each kind of output in the mix. Only after proper weighting can
the outputs be aggregated.
(2) Accounting Information
Depending on the sophistication of the accounting system in use, the weighting of each kind
of output may or may not be feasible from accounting records alone. With a detailed cost accounting
system (having data of allocating labour, material and overhead costs to each kind of
product) all the requisite information may be available.
In the case of service ot indirect activities for which output identification is seldom available,
even sophisticated cost accounting systems tend to lump together functional costs regardless of the
product mixor its change from period to period. Hence subsequent to the use of some technique for
identifying the different kinds of service outputs, some type of work measurement is usually
necessary to assist in allocating the different costs (weightings) to the different kinds of products prior
to aggregation.
(3) Work Measurement Information
Work measurement is used here to refer to the use of any technique to determine the amount
(and kind, if desired), of labor required to produce each kind of output in a base period. Such
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information is needed to complete almost all productivity computations other than those for raw
materials.
Productivity Measurement System
A productivity measurement system has the following basic components. These components are
phrased in a manner that enables them to be applied to any kind of organization i.e., manufacturing,
mining, service, government—profit seeking or non-profit seeking.
Components:
1. A statement of the objectives of the organisation.
2. A list of the units of output of the organisation.
3. Standard time, standard cost, raw material use, equipment use, tool use etc., for each kind
of output.
4. A method of building a zero base budget using forecasts of outputs, standard times and
forecasts of the productivity.
5. A means of computing the productivity indexes at selected intervals.
6. A means of comparing output forecasts with actual output at selected intervals.
7. A means of adding resource usage data and associated productivity indexes in a meaningful
fashion related to outputs to reduce the details in reports as data go to higher-and higher-level
managers.

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UNIT II PLANT LOCATION AND LAYOUT

Factors affecting Plant location – Objectives of Plant Layout – Principles of Plant Layout – Types of
Plant Layout – Methods of Plant and Facility Layout – Storage Space requirements – Plant Layout
procedure – Line Balancing methods.

CONCEPT OF PLANT LOCATION AND LAYOUT:

Plant location and plant layout are two crucial decisions in the design and operation of any
manufacturing or service facility. While they are distinct concepts, they are closely related and
influence each other significantly.
Plant Location
Plant location refers to the strategic decision of choosing the geographical location for a company's
operations. This involves selecting a region and a specific site within that region. The goal is to find a
location that minimizes costs, maximizes efficiency, and provides a competitive advantage.
Plant Layout
Plant layout, on the other hand, focuses on the internal arrangement of physical facilities within the
chosen location. It involves deciding where to place machinery, equipment, workstations, storage
areas, and other facilities to optimize workflow, minimize material handling, and ensure efficient use
of space. Key objectives of plant layout include:
 Minimize material handling costs: Efficient flow of materials through the facility.
 Maximize space utilization: Effective use of available floor space.
 Promote efficient workflow: Smooth and logical sequence of operations.
 Ensure worker safety and comfort: Safe working conditions and ergonomic design.
 Facilitate flexibility and future expansion: Adaptability to changing needs and production
requirements.
What is an ideal location?
An ideal location is one where the cost of the product is kept to minimum, with a large market
share, the least risk and the maximum social gain. It is the place of maximum net advantage or which
gives lowest unit cost of production and distribution. For achieving this objective, small-scale
entrepreneur can make use of locational analysis for this purpose.
Relationship between Plant Location and Layout
Plant location and layout are interdependent decisions. The chosen location can significantly impact
the layout possibilities, and vice versa. For example:
 Site size and shape: The size and shape of the chosen site can restrict the layout options. A
smaller site may require a more compact layout, while an irregularly shaped site may
necessitate a more creative design.
 Building design: The design of the building, which is influenced by the location and site
conditions, will affect how equipment and workstations can be arranged inside.
 Transportation access: The location's access to roads, railways, or ports will influence the
layout of receiving and shipping areas.
 Environmental factors: Climate and environmental regulations at the location can affect the
layout of ventilation, waste disposal, and other systems.

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LOCATIONAL ANALYSIS:
Locational analysis is a dynamic process where entrepreneur analyses and compares the
appropriateness or otherwise of alternative sites with the aim of selecting the best site for a given
enterprise. It consists the following:
(a) Demographic Analysis: It involves study of population in the area in terms of total
population (in no.), age composition, per capita income, educational level, occupational structure etc.
(b) Trade Area Analysis: It is an analysis of the geographic area that provides continued
clientele to the firm. He would also see the feasibility of accessing the trade area from alternative
sites.
(c) Competitive Analysis: It helps to judge the nature, location, size and quality of
competition in a given trade area.
(d) Traffic analysis: To have a rough idea about the number of potential customers passing by
the proposed site during the working hours of the shop, the traffic analysis aims at judging the
alternative sites in terms of pedestrian and vehicular traffic passing a site.
(e) Site economics: Alternative sites are evaluated in terms of establishment costs and
operational costs under this. Costs of establishment is basically cost incurred for permanent physical
facilities but operational costs are incurred for running business on day to day basis, they are also
called as running costs.
SELECTION CRITERIA OF PLANT LOCATION:
The selection criteria for a plant location are the factors that businesses consider when deciding where
to build a new facility. These criteria aim to minimize costs, maximize efficiency, and gain a
competitive advantage. Here's a breakdown of the key selection criteria:
1. Proximity to Raw Materials and Markets:
 Raw Materials: If the plant uses bulky, perishable, or costly-to-transport raw materials,
locating near the source is crucial to reduce transportation costs and ensure a steady
supply.
 Markets: Locating close to the target market reduces transportation costs for finished
goods, ensures faster delivery times, and improves customer service.
2. Transportation Facilities:
 Roads, Railways, Ports, and Airports: Easy access to various transportation modes is
essential for efficient movement of raw materials and finished products.
 Transportation Costs: The cost of transporting goods to and from the plant is a
significant factor.
3. Availability and Cost of Labor:
 Skilled Labor: Access to a skilled workforce is essential for efficient production.
 Labor Costs: Wage rates and labor regulations can significantly impact operating costs.
 Labor Availability: The presence of a sufficient labor pool in the area.
4. Availability and Cost of Utilities:
 Power: Reliable and affordable electricity is crucial for most industrial operations.
 Water: Many industries require large amounts of water for processing, cooling, or
cleaning.
 Fuel: Access to natural gas, oil, or other fuels may be necessary.
5. Infrastructure:
 Roads, Bridges, and Other Infrastructure: Well-developed infrastructure is essential
for efficient operations.

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 Communication Networks: Reliable internet and telecommunications are crucial for

modern businesses.
6. Government Policies and Regulations:
 Taxes and Incentives: Tax rates, tax breaks, and other incentives offered by local and
state governments can influence location decisions.
 Environmental Regulations: Compliance with environmental regulations is essential.
 Zoning Laws: Zoning regulations determine what types of businesses can operate in
specific areas.
7. Climatic Conditions:
 Temperature, Humidity, and Extreme Weather: Climatic conditions can affect
operations, transportation, and employee well-being.
8. Land Availability and Cost:
 Land Availability: Sufficient land for the plant and future expansion.
 Land Costs: The cost of land can vary significantly from one location to another.
9. Community and Local Attitudes:
 Community Support: A positive attitude from the local community can be beneficial.
 Quality of Life: Factors such as schools, healthcare, and recreational opportunities can
attract and retain employees.
10. Environmental Impact:
 Environmental Regulations: Compliance with environmental regulations is essential.
 Waste Disposal: Access to proper waste disposal facilities.
11. Security and Safety:
 Crime Rates: Low crime rates and a safe environment are important.
 Natural Disaster Risk: The risk of natural disasters such as earthquakes, floods, or
hurricanes.
FACTORS AFFECTING PLANT LOCATION:
When deciding where to build a new plant, many factors need to be considered. Here are
some of the most important ones:
 Nearness to raw materials: If a plant uses bulky or perishable raw materials, it's often
cheaper to locate it near the source of those materials to reduce transportation costs.
 Transport facilities: Good access to roads, railways, ports, and airports is essential for
moving raw materials and finished goods.
 Nearness to market: Locating a plant close to its customers can reduce transportation costs
and delivery times.
 Availability of labor: A plant needs access to a skilled and affordable workforce.

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 Availability of fuel and power: Reliable and affordable energy is essential for most
industrial operations.
 Availability of water: Many industries require large amounts of water for cooling,
processing, or cleaning.
 Climatic conditions: Extreme weather can disrupt operations or damage equipment.
 Financial factors: The cost of land, construction, and taxes can vary significantly from one
location to another.
 Land: The availability of suitable land for the plant and its future expansion is important.
 Presence of related industries: Locating near other companies in the same industry can
provide benefits such as shared suppliers and a skilled workforce.
 Availability of facilities: Access to things like waste disposal, healthcare, and housing for
workers can be important.
 Disposal of waste: Plants need to have a way to safely and legally dispose of their waste
products.

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TYPES OF PLANT LOCATION:

1. Based on Geographical Concentration:
 Localized/Centralized: This refers to concentrating similar industries in one area.
o Advantages: Access to specialized labor, shared infrastructure, specialized
suppliers, and knowledge spillover.
o Disadvantages: Increased competition for resources and labor, vulnerability to
local economic downturns, and potential environmental strain.
o Example: Silicon Valley for technology companies, Hollywood for the film
industry.
 Delocalized/Decentralized: This involves spreading similar industries across different
locations.
o Advantages: Reduced dependence on a single location, access to diverse markets
and resources, and reduced risk of disruptions due to local issues.
o Disadvantages: Higher coordination and communication costs, potential loss of
economies of scale, and difficulty in maintaining consistent quality.
o Example: Chain restaurants with branches nationwide, manufacturing plants
with regional distribution centers.
2. Based on Location Relative to Key Factors:
 Market-Oriented: Located close to the primary customer base.
o Suitable for: Industries with high transportation costs for finished goods,
perishable goods, or those requiring close customer interaction.
o Example: Bakeries, bottling plants, and customer service centers.
 Resource-Oriented: Located close to the source of raw materials.
o Suitable for: Industries using bulky, heavy, or perishable raw materials where
transportation costs are high.
o Example: Mining operations, lumber mills, and fruit canning factories.
 Transportation-Oriented: Located near major transportation hubs like ports, railway
junctions, or airports.
o Suitable for: Industries heavily reliant on efficient transportation for both raw
materials and finished goods.
o Example: Logistics and distribution centers, import/export businesses.
3. Based on Urban vs. Rural Location:
 Urban Location: Located within or near a city.
o Advantages: Access to a large labor pool, developed infrastructure, and
proximity to markets and amenities.
o Disadvantages: Higher land costs, higher labor costs, traffic congestion, and
stricter regulations.
 Rural Location: Located in a rural area.
o Advantages: Lower land costs, lower labor costs, less congestion, and potentially
fewer regulations.
o Disadvantages: Limited access to skilled labor, less developed infrastructure,
and greater distance to markets.

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SELECTING THE PLANT LOCATION IN URBAN SITE:

Advantages:
 Large and Diverse Labor Pool: Access to a wider range of skilled and unskilled labor,
making recruitment easier.
 Established Infrastructure: Well-developed transportation (roads, rail, public transport),
utilities (power, water, sewage), and communication networks (internet, telecommunications).
 Proximity to Markets: Closer to customer base, reducing transportation costs and delivery
times.
 Access to Support Services: Greater concentration of financial institutions, legal services,
consulting firms, and specialized suppliers.
 Availability of Amenities: Wide range of housing, healthcare, education, and recreational
opportunities for employees, aiding in attracting and retaining talent.
 Established Transportation and Logistics Hubs: Often serves as major transportation hubs
with access to airports, seaports, and highways, facilitating the movement of goods.
 Access to Research and Development: Higher concentration of universities, research
institutions, and technology companies, fostering innovation and collaboration.
Disadvantages:
 High Land Costs: Land is generally more expensive in urban areas due to higher demand
and limited availability.
 High Labor Costs: Wages and salaries tend to be higher in cities due to a higher cost of
living and greater competition for labor.
 Traffic Congestion: Urban areas often experience traffic congestion, which can increase
transportation costs and delivery times.
 Stricter Regulations: Cities often have stricter environmental regulations, zoning laws, and
building codes, which can increase compliance costs.
 Limited Space for Expansion: Limited availability of land in urban areas can make it
difficult to expand the plant in the future.
 Higher Taxes: Property taxes and other local taxes may be higher in urban areas.
 Community Opposition: Urban communities may oppose the construction of new industrial
plants due to concerns about noise, pollution, and traffic.
SELECTING THE PLANT LOCATION IN RURAL SITE OR SMALL TOWN:
Advantages:
 Lower Land Costs: Land is significantly cheaper in rural areas due to lower demand and
greater availability. This can result in substantial savings on initial investment and allow for
larger sites with room for expansion.
 Lower Labor Costs: Wages and salaries tend to be lower in rural areas due to a lower cost of
living and less competition for labor.
 Less Congestion: Rural areas experience less traffic congestion, which can reduce
transportation costs and improve delivery times.
 Fewer Regulations: Environmental regulations, zoning laws, and building codes may be less
stringent in rural areas, potentially reducing compliance costs.
 More Space for Expansion: Ample land availability allows for easier future expansion of the
plant.
 Community Support: Rural communities may be more welcoming to new industrial plants,
especially if they provide jobs and boost the local economy.
 Lower Taxes: Property taxes and other local taxes may be lower in rural areas.
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Disadvantages:
 Limited Labor Pool: The availability of skilled labor may be limited in rural areas, making it
more challenging to find qualified employees.
 Less Developed Infrastructure: Transportation networks (roads, railways, public transport),
utilities (power, water, sewage), and communication networks (internet, telecommunications)
may be less developed in rural areas.
 Distance to Markets: Rural locations are often farther from major markets, increasing
transportation costs and delivery times.
 Limited Access to Support Services: Access to support services, such as financial
institutions, legal services, consulting firms, and specialized suppliers, may be limited in rural
areas.
 Fewer Amenities: Rural areas offer fewer amenities for employees, such as housing,
healthcare, education, and recreational opportunities, which can make it more challenging to
attract and retain talent.
 Potential for Isolation: Rural locations can feel isolated for some employees, which may
affect morale and productivity.
IMPORTANCE OF PLANT LOCATION:
The importance of plant location cannot be overstated. It's a strategic decision with far-
reaching consequences for a business's success. Here's why it's so important:
 Impacts Costs: Plant location significantly affects various costs, including:
o Transportation: Costs of moving raw materials and finished goods.
o Labor: Wage rates and availability of skilled workers.
o Utilities: Costs of power, water, and fuel.
o Land and Construction: Costs of acquiring land and building the facility.
o Taxes: Local and state taxes.
 Affects Revenue: A good location can boost revenue by:
o Improving Market Access: Being closer to customers can increase sales.
o Enhancing Customer Service: Faster delivery and better service can attract and
retain customers.
 Influences Competitiveness: A well-chosen location can provide a significant competitive
advantage by:
o Reducing Costs: Lower costs can lead to lower prices or higher profit margins.
o Improving Efficiency: Proximity to resources and markets can streamline
operations.
 Long-Term Commitment: Plant location decisions are often long-term commitments that
are difficult and expensive to reverse.
 Impacts Operational Efficiency: The location affects the efficiency of various operations,
including:
o Supply Chain Management: Efficient flow of materials and goods.
o Production Processes: Smooth and efficient production operations.
o Distribution: Efficient delivery of finished goods.
 Affects Employee Morale and Productivity: Factors such as quality of life, access to
amenities, and working conditions can affect employee morale and productivity.
 Influences Future Growth and Expansion: The availability of land and infrastructure can
affect the potential for future growth and expansion.
Methods of Location Analysis
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Several methods are used in location analysis, including:

 Qualitative methods: These methods involve subjective assessments and expert opinions.
Examples include:
o Factor rating: Assigning weights to different factors and scoring each location based
on those factors.
o Expert surveys: Gathering opinions from industry experts and local stakeholders.
 Quantitative methods: These methods involve using numerical data and statistical analysis.
Examples include:
o Cost-volume analysis: Comparing the costs and revenues associated with different
locations.
o Center of gravity method: Determining the optimal location for a distribution center
based on the location of customers and suppliers.
o Geographic Information Systems (GIS): Using software to analyze spatial data and
visualize location-related information.
Qualitative Techniques:
These techniques rely on expert judgment, experience, and subjective assessments.
 Factor Rating Method: This is a popular technique where a list of relevant factors (e.g.,
proximity to markets, labor availability, transportation) is created. Each factor is assigned a
weight based on its importance, and each potential location is scored on each factor. The
weighted scores are then summed up for each location, and the location with the highest total
score is considered the most favorable.
 Expert Surveys: Gathering opinions and insights from industry experts, local business
leaders, and community representatives can provide valuable qualitative information about
potential locations.
 Delphi Method: This is a structured communication technique involving a panel of experts
who provide anonymous feedback on a series of questionnaires. The process is iterative, with
feedback being shared and revised until a consensus is reached.
Quantitative Techniques:
These techniques use numerical data and mathematical models to evaluate potential locations.
 Cost-Volume Analysis: This technique compares the total costs (fixed and variable)
associated with different locations at various production volumes. The location with the
lowest total cost at the expected production volume is preferred.
 Center of Gravity Method: This method is used to determine the optimal location for a
distribution center or warehouse by considering the location of customers, the volume of
goods shipped to each customer, and the transportation costs. The goal is to minimize the total
transportation cost.
 Transportation Model: This linear programming technique is used to determine the optimal
shipping patterns between multiple sources (e.g., plants or warehouses) and multiple
destinations (e.g., markets or customers) to minimize transportation costs.
 Load-Distance Method: This technique evaluates locations based on the distance to key
markets or suppliers and the volume of goods transported. The location with the lowest total
load-distance score is considered the most favorable.
 Break-Even Analysis: This technique determines the production volume required to cover all
costs (fixed and variable) at different locations. The location with the lowest break-even point
is preferred.

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 Geographic Information Systems (GIS): GIS software is used to analyze spatial data, such
as demographics, transportation networks, and environmental factors, to identify suitable
locations.
Choosing the Right Technique:
The choice of technique depends on several factors, including:
 The nature of the business: Different industries have different location requirements.
 The availability of data: Quantitative techniques require reliable data.
 The complexity of the decision: More complex decisions may require more sophisticated
techniques.
 The time and resources available: Some techniques are more time-consuming and resource-
intensive than others.
PROCEDURE FOR SELECTING A SITE:
 Constitution of a site selection committee
 Determining the company needs
 Deciding criteria for selection
 Accumulate the data
 Analyse the data
 Evaluate the alternatives
 Reduce number of alternatives
 Investigation in detail
 Collect and analyse further data

PLANT LAYOUT
The efficiency of production depends on how well the various machines; production facilities
and employee’s amenities are located in a plant. Only the properly laid out plant can ensure the
smooth and rapid movement of material, from the raw material stage to the end product stage. Plant
layout encompasses new layout as well as improvement in the existing layout. It may be defined as a
technique of locating machines, processes and plant services within the factory so as to achieve the
right quantity and quality of output at the lowest possible cost of manufacturing. It involves a
judicious arrangement of production facilities so that workflow is direct.

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DEFINITION:
A plant layout can be defined as follows: Plant layout refers to the arrangement of physical
facilities such as machinery, equipment, furniture etc. within the factory building in such a manner so
as to have quickest flow of material at the lowest cost and with the least amount of handling in
processing the product from the receipt of material to the shipment of the finished product. According
to Riggs, “the overall objective of plant layout is to design a physical arrangement that most
economically meets the required output – quantity and quality.” According to J. L. Zundi, “Plant
layout ideally involves allocation of space and arrangement of equipment in such a manner that
overall operating costs are minimized.
IMPORTANCE
Plant layout is an important decision as it represents long-term commitment. An ideal plant
layout should provide the optimum relationship among output, floor area and manufacturing process.
It facilitates the production process, minimizes material handling, time and cost, and allows flexibility
of operations, easy production flow, makes economic use of the building, promotes effective
utilization of manpower, and provides for employee’s convenience, safety, comfort at work,
maximum exposure to natural light and ventilation. It is also 99 important because it affects the flow
of material and processes, labour efficiency, supervision and control, use of space and expansion
possibilities etc.
ESSENTIALS
An efficient plant layout is one that can be instrumental in achieving the following objectives:
a) Proper and efficient utilization of available floor space
b) To ensure that work proceeds from one point to another point without any delay
c) Provide enough production capacity.
d) Reduce material handling costs
e) Reduce hazards to personnel
f) Utilise labour efficiently
g) Increase employee morale
h) Reduce accidents
i) Provide for volume and product flexibility
j) Provide ease of supervision and control
k) Provide for employee safety and health
l) Allow ease of maintenance
m) Allow high machine or equipment utilization
n) Improve productivity
NEED OF PLANT LAYOUT:
Many situations give rise to the problem of plant layout. Two plants having similar operations
may not have identical layouts. This may be due to size of the plant, nature of the process and
management’s calibre. The necessity of plant layout may be felt and the problem may arise when:
(i) There are design changes in the product.
(ii) There is an expansion of the enterprise.
(iii) There is proposed variation in the size of the departments.
(iv) Some new product is to be added to the existing line.
(v) Some new department is to be added to the enterprise and there is reallocation of the
existing department.
(vi) A new plant is to be set up.
OBJECTIVES OF GOOD PLANT LAYOUT:
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A good rather an optimum layout is one which provides maximum satisfaction to all
concerned i.e. shareholders, management employees and consumers. The objectives of a good layout
are as follows:
(i) Should provide overall satisfaction to all concerned.
(ii) Material handling and internal transportation from one operation to the next is minimized
and efficiently controlled.
(iii) The production bottle necks and points of congestions are to be eliminated so that input
raw materials and semi-finished parts move fast from one work station to another.
(iv) Should provide high work in process turnover.
(v) Should utilize the space most effectively; may be cubical utilization.
(vi) Should provide worker’s convenience, promote job satisfaction and safety for them.
(vii) Should avoid unnecessary investment of capital.
(viii) Should help in effective utilization of labour.
(ix) Should lead to increased productivity and better quality of the product with reduced
capital cost.
PRINCIPLES OF PLANT LAYOUT:
1. Principle of integration:
A good layout is one that integrates men, materials, machines and supporting services
and others in order to get the optimum utilisation of resources and maximum effectiveness.
2. Principle of minimum distance:
This principle is concerned with the minimum travel (or movement) of man and
materials. The facilities should be arranged such that, the total distance travelled by the men
and materials should be minimum and as far as possible straight line movement should be
preferred.
3. Principle of cubic space utilisation:
The good layout is one that utilise both horizontal and vertical space. It is not only
enough if only the floor space is utilised optimally but the third dimension, i.e., the height is
also to be utilised effectively.
4. Principle of flow:
A good layout is one that makes the materials to move in forward direction towards
the completion stage, i.e., there should not be any backtracking.
5. Principle of maximum flexibility:
The good layout is one that can be altered without much cost and time, i.e., future
requirements should be taken into account while designing the present layout.
6. Principle of safety, security and satisfaction:
A good layout is one that gives due consideration to workers safety and satisfaction
and safeguards the plant and machinery against fire, theft, etc.
7. Principle of minimum handling:
A good layout is one that reduces the material handling to the minimum.
TYPES OF PLANT LAYOUT:
As discussed so far the plant layout facilitates the arrangement of machines, equipment and
other physical facilities in a planned manner within the factory premises. An entrepreneur must
possess an expertise to lay down a proper layout for new or existing plants. It differs from plant to
plant, from location to location and from industry to industry. But the basic principles governing plant
layout are more or less same. As far as small business is concerned, it requires a smaller area or space
and can be located in any kind of building as long as the space is available and it is convenient. Plant
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layout for Small Scale business is closely linked with the factory building and built up area. From the
point of view of plant layout, we can classify small business or unit into three categories:
1. Manufacturing units
2. Traders
3. Service Establishments
1. Manufacturing units
In case of manufacturing unit, plant layout may be of four types:
(a) Product or line layout
(b) Process or functional layout
(c) Fixed position or location layout
(d) Combined or group layout
(a) Product or line layout:
Under this, machines and equipments are arranged in one line depending upon the sequence
of operations required for the product. The materials move form one workstation to another
sequentially without any backtracking or deviation. Under this, machines are grouped in one
sequence. Therefore materials are fed into the first machine and finished goods travel automatically
from machine to machine, the output of one machine becoming input of the next, e.g. in a paper mill,
bamboos are fed into the machine at one end and paper comes out at the other end. The raw material
moves very fast from one workstation to other stations with a minimum work in progress storage and
material handling.
The grouping of machines should be done keeping in mind the following general principles.
a) All the machine tools or other items of equipments must be placed at the point demanded
by the sequence of operations
b) There should no points where one line crossed another line.
c) Materials may be fed where they are required for assembly but not necessarily at one point.
d) All the operations including assembly, testing packing must be included in the line A line
layout for two products is given below.

Advantages:
Product layout provides the following benefits:
a) Low cost of material handling, due to straight and short route and absence of backtracking
b) Smooth and uninterrupted operations
c) Continuous flow of work
d) Lesser investment in inventory and work in progress
e) Optimum use of floor space
f) Shorter processing time or quicker output
g) Less congestion of work in the process
h) Simple and effective inspection of work and simplified production control

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i) Lower cost of manufacturing per unit

Disadvantages:
Product layout suffers from following drawbacks:
a. High initial capital investment in special purpose machine
b. Heavy overhead charges
c. Breakdown of one machine will hamper the whole production process
d. Lesser flexibility as specially laid out for particular product.
Suitability:
Product layout is useful under following conditions:
1) Mass production of standardized products
2) Simple and repetitive manufacturing process
3) Operation time for different process is more or less equal
4) Reasonably stable demand for the product
5) Continuous supply of materials
Therefore, the manufacturing units involving continuous manufacturing process, producing
few standardized products continuously on the firm’s own specifications and in anticipation of sales
would prefer product layout e.g. chemicals, sugar, paper, rubber, refineries, cement, automobiles, food
processing and electronics etc.
(b) Process layout:
In this type of layout machines of a similar type are arranged together at one place. E.g.
Machines performing drilling operations are arranged in the drilling department, machines performing
casting operations be grouped in the casting department. Therefore the machines are installed in the
plants, which follow the process layout. Hence, such layouts typically have drilling department,
milling department, welding department, heating department and painting department etc. The process
or functional layout is followed from historical period. It evolved from the handicraft method of
production. The work has to be allocated to each department in such a way that no machines are
chosen to do as many different job as possible i.e. the emphasis is on general purpose machine. The
work, which has to be done, is allocated to the machines according to loading schedules with the
object of ensuring that each machine is fully loaded. Process layout is shown in the following
diagram.

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Process layout showing movement of two products The grouping of machines according to the
process has to be done keeping in mind the following principles
a) The distance between departments should be as short as possible for avoiding long distance
movement of materials
b) The departments should be in sequence of operations
c) The arrangement should be convenient for inspection and supervision.
Advantages:
Process layout provides the following benefits
a) Lower initial capital investment in machines and equipments. There is high degree of machine
utilization, as a machine is not blocked for a single product
b) The overhead costs are relatively low
c) Change in output design and volume can be more easily adapted to the output of variety of products
d) Breakdown of one machine does not result in complete work stoppage
e) Supervision can be more effective and specialized
f) There is a greater flexibility of scope for expansion.
Disadvantages:
Product layout suffers from following drawbacks
a. Material handling costs are high due to backtracking
b. More skilled labour is required resulting in higher cost.
c. Time gap or lag in production is higher
d. Work in progress inventory is high needing greater storage space
e. More frequent inspection is needed which results in costly supervision
Suitability:
Process layout is adopted when
1. Products are not standardized
2. Quantity produced is small
3. There are frequent changes in design and style of product
4. Job shop type of work is done
5. Machines are very expensive
Thus, process layout or functional layout is suitable for job order production involving non-
repetitive processes and customer specifications and nonstandardized products, e.g. tailoring, light and
heavy engineering products, made to order furniture industries, jewelry.
(c) Fixed Position or Location Layout
In this type of layout, the major product being produced is fixed at one location. Equipment
labour and components are moved to that location. All facilities are brought and arranged around one
work center. This type of layout is not relevant for small scale entrepreneur. The following figure
shows a fixed position layout regarding shipbuilding.

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Advantages:
Fixed position layout provides the following benefits
a) It saves time and cost involved on the movement of work from one workstation to another.
b) The layout is flexible as change in job design and operation sequence can be easily incorporated.
c) It is more economical when several orders in different stages of progress are being executed
simultaneously.
d) Adjustments can be made to meet shortage of materials or absence of workers by changing the
sequence of operations.
Disadvantages:
Fixed position layout has the following drawbacks
a. Production period being very long, capital investment is very heavy
b. Very large space is required for storage of material and equipment near the product.
c. As several operations are often carried out simultaneously, there is possibility of confusion and
conflicts among different workgroups.
Suitability:
The fixed position layout is followed in following conditions
1. Manufacture of bulky and heavy products such as locomotives, ships, boilers, generators, wagon
building, aircraft manufacturing, etc.
2. Construction of building, flyovers, dams.
3. Hospital, the medicines, doctors and nurses are taken to the patient (product).

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(d) Combined layout

Certain manufacturing units may require all three processes namely intermittent process (job
shops), the continuous process (mass production shops) and the representative process combined
process [i.e. miscellaneous shops]. In most of industries, only a product layout or process layout or
fixed location layout does not exist. Thus, in manufacturing concerns where several products are
produced in repeated numbers with no likelihood of continuous production, combined layout is
followed. Generally, a combination of the product and process layout or other combination are found,
in practice, e.g. for industries involving the fabrication of parts and assembly, fabrication tends to
employ the process layout, while the assembly areas often employ the product layout. In soap,
manufacturing plant, the machinery manufacturing soap is arranged on the product line principle, but
ancillary services such as heating, the manufacturing of glycerin, the power house, the water treatment
plant etc. are arranged on a functional basis.

2. Traders
When two outlets carry almost same merchandise, customers usually buy in the one that is
more appealing to them. Thus, customers are attracted and kept by good layout i.e. good lighting,
attractive colours, good ventilation, air conditioning, modern design and arrangement and even music.
All of these things mean customer convenience, customer appeal and greater business volume.
The customer is always impressed by service, efficiency and quality. Hence, the layout is
essential for handling merchandise, which is arranged as per the space available and the type and
magnitude of goods to be sold keeping in mind the convenience of customers.
There are three kinds of layouts in retail operations today.
1. Self service or modified self service layout
2. Full service layout
3. Special layouts
The self-service layouts, cuts down on sales clerk’s time and allow customers to select
merchandise for themselves. Customers should be led through the store in a way that will expose them
to as much display area as possible, e.g. Grocery Stores or department stores. In those stores,
necessities or convenience goods should be placed at the rear of the store. The use of color and

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lighting is very important to direct attention to interior displays and to make the most of the stores
layout.
All operations are not self-service. Certain specialty enterprises sell to fewer numbers of
customers or higher priced product, e.g. Apparel, office machines, sporting goods, fashion items,
hardware, good quality shoes, jewelry, luggage and accessories, furniture and appliances are all
examples of products that require time and personal attention to be sold. These full service layouts
provide area and equipment necessary in such cases.
Some layouts depend strictly on the type of special store to be set up, e.g. TV repair shop, soft
ice cream store, and drive-in soft drink stores are all examples of business requiring special design.
Thus, good retail layout should be the one, which saves rent, time and labour.
3. Services centers and establishment
Services establishments such as motels, hotels, restaurants, must give due attention to client
convenience, quality of service, efficiency in delivering services and pleasing office ambience. In
today’s environment, the clients look for ease in approaching different departments of a service
organization and hence the layout should be designed in a fashion, which allows clients quick and
convenient access to the facilities offered by a service establishment.
FACTORS AFFECTING THE PLANT LOCATION:
Many factors are considered while selecting a plant site. According to their importance these
are classified as primary factors and secondary factors.
Primary factors:
Raw material supply:
Production process will continue properly when adequate supply of raw
material is there. Raw material cost is a part of total production cost. Inadequate
supply of raw material will result in the reduction in production. It will increase
downtime and hence reduce efficiency of industry.
Nearness to market:
This factor will produce the product to customer in short time period and
hence it will be less damage to the product. It also reduces transportation cost. Also it
will help the supplier to know the requirement of customers.
Transportation Facility:
While selecting a site one thing has to be considered that is transportation of
any raw material, semi- finished & finished goods should be as less as possible.
Labour Supply:
Labour is most effective part of the industry, which produces the product(s).
The prospective plant owner has to choose the site in such a way that labour should
be present in adequate numbers with low cost. The labour should also be skilled to a
good level.
Power Supply:
Electrical, diesel, automatic etc. energies are required to produce the product
and also required for transportation. For continuous production process regular and
sufficient power supply is necessary.
Supply of Capital:
Capital is required for the industries for production, day to day working,
expansion, marketing etc. Large scale production requires large amounts of capital
which may be raised by shares, debentures etc.
Secondary factors:
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Natural factors:
Factors like land, water, climate etc. are very important for industries.
Government Policy:
In particular areas, a new plant cannot be started due to some rules and regulations
made by government. There are also some subsidies and other facilities to support
small scale industries to grow.
Availability:
Availability of housing, hospitality, entertainment, education facilities also
helps in deciding plant location.
Miscellaneous factors:
1. Sufficient water supply
2. Danger of attack during war
3. Personal factors
4. Environmental and ecological factors
5. Availability of safety facilities like fire- fighting, police etc.
ADVANTAGES OF GOOD PLANT LAYOUT:
The seven advantages of a good plant layout by Mallick and Gandeau are as follows: 1. To the
Worker 2. In Labour Cost 3. In Other Manufacturing Costs 4. In the Manufacturing Cycle 5. In
Production Control 6. In Supervision 7. In Capital Investment.
1. To the Worker:
(i) Reduces the effort of the worker.
(ii) Reduces the number of handlings.
(iii) Extends the process of specialization.
(iv) Permits working at optimum conditions by eliminating congestions.
(v) Produces better working conditions by eliminating congestions.
(vi) Reduces the number of accidents.
(vii) Provides better employee service facilities/conditions.
(viii) Provides basis for higher earning for employees.
2. In Labour Cost:
(i) Increases the output per man-hour
(ii) Reduces set up time involved.
(iii) Reduces the number of operations or some operation may be combined.
(iv) Reduces the number of handlers. Thus reducing labour cost.
(v) Reduces the length of hauls.
(vi) Reduces lost motions between operations.
(vii) Converts operator into a producer instead of a handler by eliminating the various unnecessary
movements.
3. In Other Manufacturing Costs:
(i) Reduces the cost of expensive supplies.
(ii) Decreases maintenance costs.
(iii) Decreases tool replacement costs.
(iv) Effects a saving in power loads.
(v) Decreases spoilage and scrap. Thus waste is minimized.
(vi) Eliminates some of the waste in raw material consumption.
(vii) Improves the quality of the product by decreasing handling.
(viii) Provides better cost control.
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4. In the Manufacturing Cycle:

(i) Shortens the moves between work-stations.
(ii) Reduces the manufacturing cycle in each department.
(iii) Reduces the length of travel by the product for completion.
(iv) Reduces the overall time of manufacturing the product.
5. In Production Control:
(i) Facilitates receipts, shipments and delivery of inputs and finished goods.
(ii) Provides adequate and convenient storage facilities.
(iii) Permits the maximum possible output with same input.
(iv) Paces production & determines production flow.
(v) Makes production time predictable.
(vi) Makes scheduling and dispatching automatic.
(vii) Sets up production center & permits straight line layout by products for mass production.
(viii) Permits layout by process for job order manufacturing.
(ix) Moves work in process by most direct lines.
(x) Reduces the number of lost or mishandled parts leading to waste minimization.
(xi) Reduces the paper work for production control & reduces the number of stock chaser. Thus
reduces production control expenses.
6. In Supervision:
(i) Tends to ease the burden of supervision.
(ii) Determines the supervisory control.
(iii) Reduces the cost of supervision process.
(iv) Reduces cost of piece counts.
(v) Decreases the amount of inspection involved.
7. In Capital Investment:
(i) Holds permanent investment at its minimum level.
(ii) Keeps the plant form becoming obsolete before it is worn out.
(iii) Reduces the investment in machinery and equipment by:
(a) Increasing the production per machine.
(b) Utilizing idle machine time.
(c) Reducing the number of operation per machine.
(iv) Maintains a proper balance of departments.
(v) Eliminates wasted aisle space.
(vi) Reduces the capital investment proper space utilization of material handling equipment required.
(vii) Reduces the inventory level of work in process and of finished product.
FACTORS INFLUENCING PLANT LAYOUT:
While deciding his factory or unit or establishment or store, a small-scale businessman should
keep the following factors in mind:
a) Factory building:
The nature and size of the building determines the floor space available for layout. While
designing the special requirements, e.g. air conditioning, dust control, humidity control etc. must be
kept in mind.
b) Nature of product:
Product layout is suitable for uniform products whereas process layout is more appropriate for
custom-made products.
c) Production process:
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In assembly line industries, product layout is better. In job order or intermittent manufacturing
on the other hand, process layout is desirable.
d) Type of machinery:
General purpose machines are often arranged as per process layout while special purpose
machines are arranged according to product layout
e) Repairs and maintenance:
Machines should be so arranged that adequate space is available between them for movement
of equipment and people required for repairing the machines.
f) Human needs:
Adequate arrangement should be made for cloakroom, washroom, lockers, drinking water,
toilets and other employee facilities, proper provision should be made for disposal of effluents, if any.
g) Plant environment:
Heat, light, noise, ventilation and other aspects should be duly considered, e.g. paint shops
and plating section should be located in another hall so that dangerous fumes can be removed through
proper ventilation etc. Adequate safety arrangement should also be made. Thus, the layout should be
conducive to health and safety of employees. It should ensure free and efficient flow of men and
materials. Future expansion and diversification may also be considered while planning factory layout.
DYNAMICS OF PLANT LAYOUT:
Plant layout is a dynamic rather than a static concept meaning thereby if once done it is not
permanent in nature rather improvement or revision in the existing plant layout must be made by
keeping a track with development of new machines or equipment, improvements in manufacturing
process, changes in materials handling devices etc. But, any revision in layout must be made only
when the savings resulting from revision exceed the costs involved in such revision.
Revision in plant layout may become necessary on account of the following reasons:
a) Increase in the output of the existing product
b) Introduction of a new product and diversification
c) Technological advancements in machinery, material, processes, product design, fuel etc.
d) Deficiencies in the layout unnoticed by the layout engineer in the beginning.
APPLICABILITY OF PLANT LAYOUT:
Plant layout is applicable to all types of industries or plants. Certain plants require special
arrangements which, when incorporated make the layout look distinct form the types already
discussed above. Applicability of plant layout in manufacturing and service industries is discussed
below. In case of the manufacturing of detergent powder, a multi-storey building is specially
constructed to house the boiler.
Materials are stored and poured into the boiler at different stages on different floors. Other
facilities are also provided around the boiler at different stations. Another applicability of this layout
is the manufacture of talcum powder. Here machinery is arranged vertically i.e. from top to bottom.
Thus, material is poured into the first machine at the top and powder comes out at the bottom of the
machinery located on the ground floor.
Yet another applicability of this layout is the newspaper plant, where the time element is of
supreme importance, the accomplishment being gapped in seconds. Here plant layout must be simple
and direct so as to eliminate distance, delay and confusion. There must be a perfect coordination of all
departments and machinery or equipments, as materials must never fail. Plant layout is also applicable
to five star hotels as well.
Here lodging, bar, restaurant, kitchen, stores, swimming pool, laundry, shaving saloons,
shopping arcades, conference hall, parking areas etc. should all find an appropriate place in the layout.
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Here importance must be given to cleanliness, elegant appearance, convenience and compact looks,
which attract customers.
Similarly plant layout is applicable to a cinema hall, where emphasis is on comfort, and
convenience of the cinemagoers. The projector, screen, sound box, fire fighting equipment, ambience
etc. should be of utmost importance. A plant layout applies besides the grouping of machinery, to an
arrangement for other facilities as well. Such facilities include receiving and dispatching points,
inspection facilities, employee facilities, storage etc. Generally, the receiving and the dispatching
departments should be at either end of the plant.
The storeroom should be located close to the production, receiving and dispatching centers in
order to minimize handling costs. The inspection should be right next to other dispatch department as
inspections are done finally, before dispatch. The maintenance department consisting of lighting,
safety devices, fire protection, collection and disposal of garbage, scrap etc. should be located in a
place which is easily accessible to all the other departments in the plant.
The other employee facilities like toilet facilities, drinking water facilities, first aid room,
cafeteria etc. can be a little away from other departments but should be within easy reach of the
employees. Hence, there are the other industries or plants to which plant layout is applicable.
OBJECTIVES OF FACILITY LAYOUT
A model facility layout should be able to provide an ideal relationship between raw material,
equipment, manpower and final product at minimal cost under safe and comfortable environment.
An efficient and effective facility layout can cover following objectives:
 To provide optimum space to organize equipment and facilitate movement of goods and to
create safe and comfortable work environment.
 To promote order in production towards a single objective
 To reduce movement of workers, raw material and equipment
 To promote safety of plant as well as its workers
 To facilitate extension or change in the layout to accommodate new product line or
technology upgradation
 To increase production capacity of the organization
An organization can achieve the above-mentioned objective by ensuring the following:
 Better training of the workers and supervisors.
 Creating awareness about of health hazard and safety standards
 Optimum utilization of workforce and equipment
 Encouraging empowerment and reducing administrative and other indirect work
FACTORS AFFECTING FACILITY LAYOUT
Facility layout designing and implementation is influenced by various factors. These factors vary
from industry to industry but influence facility layout. These factors are as follows:
 The design of the facility layout should consider overall objectives set by the organization.
 Optimum space needs to be allocated for process and technology.
 A proper safety measure as to avoid mishaps.
 Overall management policies and future direction of the organization
DESIGN OF FACILITY LAYOUT
Principles which drive design of the facility layout need to take into the consideration
objective of facility layout, factors influencing facility layout and constraints of facility layout. These
principles are as follows:
Flexibility:
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Facility layout should provide flexibility for expansion or modification.

Space Utilization:
Optimum space utilization reduces the time in material and peoplemovement and
promotes safety.
Capital:
Capital investment should be minimal when finalizing different models of facility layout.
Design Layout Techniques
There are three techniques of design layout, and they are as follows:
1. Two or Three Dimensional Templates: This technique utilizes development of a scaled-
down model based on approved drawings.
2. Sequence Analysis: This technique utilizes computer technology in designing the facility
layout by sequencing out all activities and then arranging them in circular or in a straight line.
3. Line Balancing: This kind of technique is used for assembly line.
Types of Facility Layout
There are six types of facility layout, and they are as follows:
 Line Layout
 Functional Layout
 Fixed Position Layout
 Cellular Technology Layout
 Combined Layout, and
 Computerized Relative Allocation of Facility Technique
LINE BALANCING METHODS:
Line balancing in a layout refers to the arrangement of machine capacity with the aim of
securing relatively uniform flow at capacity operation. It is a layout having equal operating times at
the successive operations in the complete form of the process.
Line balancing is a useful tool in manufacturing, involving setting a planned rate of
production for necessary materials to be fabricated within a particular time frame thus assuring that
every line section's production quota can be met within the time frame using the available production
capacity. It is an efficient device that is used to develop the throughput of production lines and work
cells in the process decreasing manpower requirements and expenses.
Objective of Line Balancing
The following are some of the objectives of Line balancing procedure:
i. It assists in managing workloads among operators.
ii. It is used in recognizing the location of bottleneck.
iii. It is used in deciding the number of workstations.
iv. It assists in decreasing production cost.
v. It helps in assigning task to each work station in such a way that there is little idle time.
Benefits of Line Balancing
 Helps eliminate bottleneck operations.
 Helps prevent unnecessary duplication of equipment capacity.
 Helps increase production efficiencies and rate.
Methods of Line Balancing
 The first and obvious possibility in the right direction is to increase the output.
 Another possibility is that another product be sent close to the first one so that some idle
machines are used jointly.

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 The last possibility is to estimate the output of the last work station which can be considered
as the minimum output of all the intermediate work stations.
A very important point to note while balancing a machine is that, it is important to see that output of
fastest machine be multiple of the output of the remaining other machines.
Steps in Line Balancing
There are four steps in solving line balancing described by G. Andrew (2006).
I. Draw the Precedence Diagram: Precedence diagram needs to be drawn to demonstrate task
relationship between workstations showing the sequence by which tasks are carried out,
represented by nodes or graph. The product should not be moved to the next station without
completing the previous station.
II. Determine the Cycle Time: Cycle time is longest time allowed at each station. Cycle time
can be gotten by dividing the required units to production time available per day. This is the
time expressed in minutes between two simultaneous products coming out of the end of
production line. It acts as an indicator to showing how the line is set up to run at that instance,
taking into consideration the entire production quantities. Cycle time can be mathematically
expressed as follows:

III. Assign tasks to the workstation: Distribute tasks to workstation after completing a time
cycle in the order of longest task times.

IV. Calculate the Line Efficiency: Line efficiency is calculated to find effectiveness of the line.
The formula is given by:

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UNIT III WORK SYSTEM DESIGN & ERGONOMICS

Need – Objectives – Method Study procedure – Principles of Motion Economy – Work Measurement
procedures – Time Study –Work sampling- Ergonomics and its areas of application in the work
system - Physical work load and energy expenditure, Anthropometry – measures – design procedure,
Work postures-sitting, standing.

THE CONCEPT OF WORK SYSTEM DESIGN

In human factors and ergonomics (HF&E), the work system comprises workers and work
equipment acting together to perform the system function in the workspace, in the work environment,
under the conditions imposed by the work tasks.
For example, a canning factory or a workstation for assembling electronic pumps could be
defined as a work system.
In HF&E disciplines, work system design is a flexible and iterative process that takes into
account system components and interdependencies between system components (e.g. work task, work
organisation, work environment).
As a result, the design of the whole system is more than the sum of its parts. The design of a
work system should follow general design criteria and should follow design strategies that refer to
appropriate user populations.

The initial step in the design process in HF&E is the definition of the work system, i.e. a
description of the work system that comprises a determination of the limits of the work system under
consideration.
It should also include a classification of the work system in superordinate and the subordinate
structures as illustrated by the following example. When considering, for example, a workstation for
assembling an electric pump as a work system, a manufacturing site is a superordinate system and a
computer-aided quality control workplace belonging to the workstation is a subordinate system.
The description of the work system including determination of the limits of the work system
should be described in a document.
The next step in the design process is the analysis and documentation of the human work task.
This serves as a framework for the design of all other system components (e.g. work environment,
work space, work equipment). Descriptions of all other system components follow and include

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interactions between components. The design of system components and their interactions should
satisfy normative standards.
The design of a work system follows general design criteria referring to human performance,
safety and health as well as design strategies referring to appropriate user populations.
The aim of work systems design according to HF&E requirements is designing working
conditions for human operators that
 result in optimal operator workload,
 ensure human safety, health and well-being, and
 optimise overall system performance.
NEED FOR WORK SYSTEM DESIGN:
Work System Design deals with the systematic examination of the methods of doing work
with an aim of finding the means of effective and efficient use of resources and setting up of standards
of performance for the work being carried out.
OBJECTIVES OF WORK SYSTEM DESIGN:
The objective of system design is to create a plan for a software or hardware system that
meets the needs and requirements of a customer or user. This plan typically
includes detailed specifications for the system, including its architecture, components, and
interfaces.
System design is an important step in the development process of any system, as it serves
as the foundation for the implementation and deployment of the system. A well-designed system
can help ensure that the system is reliable, efficient, and user-friendly.

Objectives of System Design

1. Practicality: We need a system that should be targeting the set of audiences(users)
corresponding to which they are designing.
2. Accuracy: Above system design should be designed in such a way it fulfills nearly all
requirements around which it is designed be it functional or non-functional requirements.
3. Completeness: System design should meet all user requirements

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4. Efficient: The system design should be such that it should not overuse surpassing the cost
of resources nor under use as it will by now we know will result in low throughput
(output) and less response time(latency).
5. Reliability: The system designed should be in proximity to a failure-free environment for
a certain period of time.
6. Optimization: Time and space are just likely what we do for code chunks for individual
components to work in a system.
7. Scalable(flexibility): System design should be adaptable with time as per different user
needs of customers which we know will keep on changing on time. The best example here
out is the well-known firm: Nokia. It is the most important aspect while designing systems
and is the result of why 1 of 100 startups succeed over the long run, the best example here
out is Geeks for Geeks.
There are several key objectives of system design, including:
1. Identify the needs and requirements of the user or customer: The first step in the
system design process is to understand the needs and requirements of the user or customer.
This involves gathering information about the user’s goals, needs, and expectations for the
system, as well as any constraints or limitations that need to be taken into account.
2. Develop a plan for the system: Once the needs and requirements of the user have been
identified, the next step is to develop a plan for the system. This plan should detail the
architecture, components, and interfaces of the system, as well as any algorithms, data
structures, or other components that will be used.
3. Ensure that the system is reliable and efficient: One of the key objectives of system
design is to ensure that the system is reliable and efficient. This means designing the
system in a way that minimizes downtime and errors and maximizes performance and
speed.
4. Make the system user-friendly: Another important objective of system design is to make
the system user-friendly. This means designing the system in a way that is intuitive and
easy to use, with a user interface that is clear and straightforward.
5. Take into account any constraints or limitations: In addition to meeting the needs and
requirements of the user, the system design must also take into account any constraints or
limitations. For example, the system may need to be designed to run on specific hardware
or software platforms, or to comply with certain standards or regulations.
METHOD STUDY PROCEDURE:
Method study procedure is an organized approach and its investigation rests on the
following six basic steps:
 Select the work to be analyzed.
 Record all facts relating to the existing method.
 Examine the recorded facts critically but impartially.
 Develop the most economical method commensurate with plant requirements
 Install the new method as standard practice.
 Maintain the new method.
The above basic method study procedure was first developed and articulated by Russell
Currie at Imperial Chemical Industries (ICI).

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CONCEPT AND DEFINITION OF METHOD STUDY:

Method study is basically conducted to simplify the work or working methods and must go
towards higher productivity. It is always desirable to perform the requisite function with desired goal
minimum consumption of resources. Method signifies how a work is to be done i.e. description of
how we consume resources in order to achieve our target?
Methods are integral part of work accomplishment and signify:
1. How well our methods utilize the limited available resources such as manpower, machines,
materials and money.
2. How our methods physically affect production output of the unit.
3. The quality of output obtained by application of our methods.
Thus methods can determine the amount of input materials, time power and money
consumed. So methods may be considered the core where one can attempt to reduce the consumption
of resources thereby reducing cost per unit output through utilization of proper methods. The method
design can decided the cost and quality of output produced.

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Method Study may be defined as:

“A procedure for examining the various activities associated with the problem which ensures
a systematic, objective and critical evaluation of the existing factors and in addition and imaginative
approach while developing improvements”.
There are three aspects of its application:
(1) Method study proper is concerned with broad investigation and improvement of a shop/section,
the layout of equipment and machines and the movement of men and materials.
(2) Motion study is a more detailed investigation of the individual worker/ operator, layout of his
machines, tools, jigs and fixtures and movement of his limbs when he performs his job. The ergomics
aspect i.e. study of environment, body postures, noise level and surroundings temperature also form
part of investigation.
(3) Micro motion study i.e. much more detailed investigation of very rapid movements of the various
limbs of the worker.
So, motion study is an analysis of the flow and processing of material and the movements of
men through or at various work stations. Thus motion study analyses the human activities which make
up an operation. Whereas method study or methods analysis has been defined as: “systematic
procedure for the critical analysis of movements made by men, materials and machines in performing
any work”.
Now because by definition method study includes the study of all facets of human work and
all factors affecting the work so motion study be considered as a part of method study.
SCOPE OF METHOD STUDY:
The task of work simplification and compatible work system design concerns the followings:
(i) Layout of shop floor and working areas or work stations.
(ii) Working conditions i.e. ergomics etc.
(iii) Handling distances (material movement)
(iv) Tooling and equipment used.
(v) Quality standards to be achieved.
(vi) Operators and operations in achieving the production targets.
(vii) Materials to be used.
(viii) Power required and available.
(ix) Work cycle time.
(x) Working processes.
All these factors are related to method study and possible improvements may be:
(a) Short term:
The improvements which can be introduced quickly and economically. These may be concerned with
management and work force.
(b) Long term:
The improvements which are not acceptable to management at present and which require good
investment. Improvement approach to method design is essential since a method describes how
resource are to be used in order to convert them into desired output (final products) in order to
accomplish the purpose through a network of facilities.
Operation and route sheets of production process contains in instructions that how a particular
product/component can be manufactured. This usually contains the details about time required to
perform the required operation.
The target is the minimization of production costs by affecting the consumer’s acceptability by
incorporating changes or by developing requisite resigns. But the design engineer will not be
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responsible for actual implementation of method designed by him. Likewise the Process Engineer will
try to select best methods which have most economical sequence of operations by using most efficient
infrastructure facilities (may be machines) with processing minimum time.
INDICATORS OF METHOD STUDY:
Some common indicators which show the requirements of method study investigations in a
manufacturing process are:
(a) Bottle necks in the production system which results in long delivery dates or unbalanced
workflow.
(b) Under-utilization of resources as indicated by idleness of plant.
(c) The quality of the product may be affected by poor workers morale and this may lead to high
absenteeism.
(d) Inconsistent wages or earning of workers also indicates a need for review of production
techniques.
FACTORS WHICH CONTRIBUTE TOWARDS THE SELECTION OF A PROBLEM FOR
METHOD STUDY:
When considering if method study should be utilized for a particular job the following factors
should be considered:
(i) Economic Factors.
(ii) Technical Factors.
(iii) Human Factors.
(i) Economic Factors:
These are important in all walks of life but if the economic importance of a job is small it is of
no use to initiate or continue a long study. It is important to give priorities to those types of
problems/job which offer more potential for cost control or reduction.
Before one goes ahead with the problem a suitable reply to the following questions should be
found out i.e., if the job:
i. Have a high labour input i.e. time consuming.
ii. Have excessive idleness of man and machine.
iii. Involve heavy overtime payment to workers.
iv. Have excessive rejection rates of items produced.
v. Have production bottlenecks.
vi. Have a pressing demand.
vii. Have work duplication at various work stations.
viii. Have higher accidents proportion.
ix. Have longer movements of men or materials.
x. Have never been studied for incorporating improvements.
xi. Have high rework rate and cost.

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(ii) Technical Factors:

The most important point is to ensure that adequate technical knowledge about the process to
be investigated is available if a workable solution is to be found.
For example a particular machine tool is hurdle in achieving the desired production rate and a
increase in cutting speed or depth of cut increases the output but affects the quality seriously. In such
situations technical expertise in machine tools and metal cutting process is essential in order to solve
problems of this kind.
(iii) Human Factors:
Emotional reactions of the working staff to the method study and changes in method are
important considerations.
The causes may be summarized as follows:
(i) To earn more wages.
(ii) To attain promotions.
(iii) To be liked by fellow workers.
(iv) To be of some importance among colleagues and senior staff.
(v) To get some satisfaction from the work involved.
(vi) To be party in decision making process concerning welfare schemes for employees.
(vii) To obtain security of job, position etc.
The above cited points are not only objectives sought, nor does every individual hold all of
these neither objectives nor do they give them equal weightage but these are the possible reactions
needing consideration.
Thus it is desirable that the trade union leaders, employees and supervisors should be told
about the benefits and other objective to be achieved from the method study. Even in adverse
situations the study may be postponed but should not be dropped altogether otherwise the economic
development is not possible.
PROCEDURE FOR METHOD STUDY:
Method study can be performed in following six steps with the help of operation process chart
as shown in Fig. 18.1.

1. Selection of Work/Job to be Studied:

This is one of the most important tasks to select appropriate job, activity or situation for
method analysis and mainly it is a managerial responsibility. Method study and its implementation
will cost money.
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Practically any activity is a potential project for improvement but only those jobs should be
selected when there are some valid reasons for method study (like job/activity is unpopular or
considered dirty by workers). Maximum cost benefit is the normal objective.
2. Collection and Recording of Necessary Information:
Obtain the facts about the present method of doing the job and record them. In order to
improve an activity or procedure the factual information is collected from the place where the job
under study is being executed by direct visual observation.
This can be done by:
(i) Recording movement of machines or materials.
(ii) Recording the critical procedure in the job.
(iii) Recording the operator’s performance.
(iv) Recording the path of movement of workers w.r.t. machines and allied operations, (v) Recording
the path of movement to improve workplace layout.
(v) Recording the scrap generated.
There are many standardized techniques (i.e. charts, diagrams, graphs etc.) available which
may be used for proper recording and presentation for further analysis. The choice of technique
depends on the type of information which is to be recorded.
This is an important step since the improvement m existing method or development of new method
depends on how exactly the facts about the existing method have been recorded.
3. Critical Examination of the Existing Method:
Now examine the facts critically. This is a key step in the whole study. The information
available in the form of chart and graphs after step II can now be thoroughly studied and analysed m
order to detect the production stages where improvement in the method is possible. This is achieved
by questioning the different activities of the process in a systematic logical and objective manner.
The questions sequence follows a well-established pattern examines:

These questions can help in the development of new method by getting the answers for:
(i) What should be done?
(ii) When should be done?
(iii) Who should do it?
(iv) Where should it be done?
(v) How should it be done?
The following improvements are possible on the basic of answers to these questions:
(i) Improvement in material flow.
(ii) Improvement in working conditions.
(iii) Improvement in manufacturing techniques.
(iv) Improvement to clerical routine.

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(v) Reduction in material waste.

In this way a well conducted examination will determine the purpose, place, sequence of
these activities, the person performing them and the resources by which it can be performed so as to
select the best/optimum out of the possible alternatives.
4. Develop the New Improved Method:
The analysis of existing work method can provide a starting point for a synthesis of suggested
improvements in job performance. The technique specially designed for improving work method is
called the process improvement formula.
The four steps of the formula are:
(i) Eliminate the unnecessary activities
(ii) Combine two or more activities
(iii) Sequence the various activities properly and
(iv) Simplify the activities.
Complete elimination of unwanted activities is the most important step in developing an
improved method. If elimination is not possible then possibility of combining the different activities
should be explored. The next strategy in development stage is to identify scope of changes in the
sequence of operations or activities.
The last and most important plus expensive step in process of method development is the
simplification of activities in order to allow the operator/worker to complete the job more quickly and
easily by reducing the number of operations, reducing or eliminating the delays and storage etc.
Finally after selecting the work method to be adopted, certain amount of experimentation will
be required to locate and eliminate snags if any.
Specify the improved method. It is essential that the selected method be described fully and in a
systematic manner.
Specifications of the selected method accomplish several purposes like:
(i) Communication of the method to the management for its approval.
(ii) Communication to those concerned with its implementation like instructions to workers and so far
as the machines and layout are concerned.
(iii) Provision of an official record of the method.
The new method should possess the following aspects:
(a) Full use of worker’s body,
(b) Arrangements of workplace and
(c) Design of tools and Equipment.
The acceptance of new method will mainly depend upon the cost benefit, trade unions
approach, working hours and security requirements etc.

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5. Install the Improved Method:

This involves training of those who are going to utilize the new method. Cooperation from
both supervisory staff and operators is essential to the successful installation of any proposed and
selected method. So the installation of the new method should then be entrusted to some responsible
person.
The method implemented can be further improved by way of continuous observations and
discussions. The trial runs may be carried out during which minor modifications may be made to
facilitate working.
Any method selected is ultimately to be utilized by the employees in an environment created
by the management. So employees and management should be subjected to intensive analysis so that
the proposed method is operated in the best possible manner.
Installation phase of the method study is complete as soon as the newly installed method
starts working smoothly and satisfactorily and provides encouraging result (such as time saving and
scrap reduction etc.).
6. Maintain the Improved Method:
Even after the workers have been trained and requisite changes in machines and layout have
been incorporated, there is no guarantee that the method will be used the way it was designed.
The proper functioning of the installed method is ensured by periodic checks and
verifications. The purpose of checks and reverse is to determine if the method being adopted and
practised is the same or it has some deviation from the selected one.
Reasons for deviation if any should be explored and the required changes may be incorporated in the
procedure being practised so as to revert back to the authorized or selected one.
Views of persons concerned (like operators and supervisors) with the installed method can be
of much help in exploring further improvements in the system. Therefore the method should be
reviewed at intervals to provide allowances for any changes
PRINCIPLES OF MOTION ECONOMY:
The principles of motion economy form a set of rules and suggestions to improve the
manual work in manufacturing and reduce fatigue and unnecessary movements by the worker, which
can lead to the reduction in the work related trauma.
Categories
The principles of motion economy can be classified into four groups:[1][2]
1. Principles related to the use of human body,
2. Principles related to the arrangement of the work place,
3. Principles related to the design of tools and equipment.
4. Principles related to time conservation.
Use of Human Body
 The two hands should begin motions at the same time.
 The two hands should not be idle at the same time except during rest periods.
 Motions of the arms should be made in opposite and symmetrical directions and should be
made simultaneously
 Hand motions should be confined to the lowest classification with which it is possible to
perform the work satisfactorily:
1. Finger motions
2. Wrist motions
3. Forearm motions
4. Upper arm motions
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5. Shoulder motions
 Momentum should be employed to assist the worker whenever possible, and it should be
reduced to a minimum if it must be overcome by muscular effort.
 Smooth continuous motions of the hands are preferable to zigzag motions or straight-line
motions involving sudden and sharp changes in direction.
 Ballistic (i.e. free swinging) movements are faster, easier and more accurate than restricted or
controlled movements.
Arrangement of the Work Place
 There should be a definite and fixed place for all tools and materials.
 Tools, materials, and controls should be located close in and directly in front of the operator.
 Drop delivers should be used whenever possible.
 Materials and tools should be located to permit the best sequence of motions.
 Arrange the height of the workplace and chair for alternate sitting and standing, when
possible.
 Provide a chair of the type and height to permit good posture.
Design of Tools and Equipment
 Combine tools whenever possible.
 Preposition tools and materials.
 Where each finger performs some specific movement, the load should be distributed in
accordance with the inherent capacities of the fingers.
 For light assembly, a screwdriver handle should be smaller at the bottom.
 Momentum should be used to help the worker in doing their task not to increase their task.
Time Conservation
 Even a temporary delay of work by a man or machine should not be encouraged.
 Machine should not run idle, it is not desirable that a lathe machine is running and its job is
rotating but no cut is being taken.
 Two or more jobs should be worked upon at the same time or two or more operations should
be carried out on a job simultaneously if possible.
 Number of motion involved in completing a job should be minimized.
BENEFITS OF MOTION ECONOMY
The benefits of motion economy includes:
1. It grows the ability of workers due to the application of good methods, using of good tools
and eliminating unnecessary activities.
2. Extended life of machines.
3. Reduces exhaustion of workers.
4. Decreases labour costs due to less wastage in factories or plants.
WORK MEASUREMENT PROCEDURES:
Meaning and Definition of Work Measurement:
Work measurement is concerned with the determination of the amount of time required
to perform a unit of work. Work measurement is very important for promoting productivity of an
organization. It enables management to compare alternate methods and also to do initial staffing.
Work measurement provides basis for proper planning.
Since it is concerned with the measurement of time it is also called ‘Time Study’. The
exact examination of time is very essential for correct pricing. To find the correct manufacturing
time for a product, time study is performed. To give competitive quotations, estimation of

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accurate labour cost is very essential. It becomes a basis for wage and salary administration and
devising incentive schemes.
Work measurement has been defined by British Standard Institution as, “The
application of techniques designed to establish the time for a qualified worker to carry out
a specified job at a defined level of performance”. This time is called standard or allowed
time. Time study may also be defined as “the art of observing and recording the time
required to do each detailed element of an industrial operation”.
Objectives of Work Measurement:
1. To compare the times of performance by alternative methods.
2. To enable realistic schedule of work to be prepared.
3. To arrive at a realistic and fair incentive scheme.
4. To analyse the activities for doing a job with the view to reduce or eliminate unnec essary
jobs.
5. To minimise the human effort.
6. To assist in the organisation of labour by daily comparing the actual time with that of
target time.
Uses of Work Measurement:
1. Work measurement is used in planning work and in drawing out schedules.
2. Work measurement is used to determine standard costs.
3. Work measurement is used as an aid in preparing budgets.
4. It is used in balancing production lines for new products.
5. Work measurement is used in determining machine effectiveness.
6. To determine time standards to be used as a basis for labour cost control.
7. To establish supervisory objectives and to provide a basis for measuring supervisory
efficiency.
8. To determine time standards to be used for providing a basis for wage incentive plans.
Techniques of Work Measurement:
Work measurement is investigating and eliminating ineffective time. It not only reveals
the existence of ineffective time. But it can be used to set standard times for carrying out the
work so that ineffective time does not evolve later. It will be immediat ely found out by the
increased standard time. For the purpose of work measurement, work may be regarded as
repetitive work and non-repetitive work.
PURPOSE WORK MEASUREMENT:
Purpose
Work Measurement is a technique for establishing a Standard Time, which is the required
time to perform a given task, based on time measurements of the work content of the prescribed
method, with due consideration for fatigue and for personal and unavoidable delays.
Method study is the principal technique for reducing the work involved, primarily by
eliminating unnecessary movement on the part of material or operatives and by substituting good
methods for poor ones.
Work measurement is concerned with investigating, reducing and subsequently eliminating
ineffective time, that is time during which no effective work is being performed, whatever the cause.
Work measurement, as the name suggests, provides management with a means of measuring
the time taken in the performance of an operation or series of operations in such a way that ineffective

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time is shown up and can be separated from effective time. In this way its existence, nature and extent
become known where previously they were concealed within the total.
Techniques of work measurement
The following are the principal techniques by which work measurement is carried out:
1. Time study
2. Activity sampling
3. Predetermined motion time systems
4. Synthesis from standard data
5. Estimating
6. Analytical estimating
7. Comparative estimating
Of these techniques we shall concern ourselves primarily with time study, since it is the basic
technique of work measurement.
Some of the other techniques either derive from it or are variants of it.
1. TIME STUDY
Time Study consists of recording times and rates of work for elements of a specified job
carried out under specified conditions to obtain the time necessary to carry out a job at a defined level
of performance.
In this technique the job to be studied is timed with a stopwatch, rated, and the Basic Time
calculated.
Requirements for effective time study
The requirements for effective time study are:
a. Co-operation and goodwill
b. Defined job
c. Defined method
d. Correct normal equipment
e. Quality standard and checks
f. Experienced qualified motivated worker
g. Method of timing
h. Method of assessing relative performance
i. Elemental breakdown
j. Definition of break points
k. Recording media
One of the most critical requirements for time study is that of elemental breakdown. There are
some general rules concerning the way in which a job should be broken down into elements.
They include the following. Elements should be easily identifiable, with definite beginnings
and endings so that, once established, they can be repeatedly recognised. These points are known as
the break points and should be clearly described on the study sheet. Elements should be as short as
can be conveniently timed by the observer. As far as possible, elements – particularly manual ones –
should be chosen so that they represent naturally unified and distinct segments of the operation.
Performance rating
Time Study is based on a record of observed times for doing a job together with an
assessment by the observer of the speed and effectiveness of the worker in relation to the observer's
concept of Standard Rating.
This assessment is known as rating, the definition being given in BS 3138 (1979):
The numerical value or symbol used to denote a rate of working.
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Standard rating is also defined (in this British Standard BS3138) as:
"The rating corresponding to the average rate at which qualified workers will naturally work,
provided that they adhere to the specified method and that they are motivated to apply themselves to
their work. If the standard rating is consistently maintained and the appropriate relaxation is taken, a
qualified worker will achieve standard performance over the working day or shift."
Industrial engineers use a variety of rating scales, and one which has achieved wide use is the
British Standards Rating Scale which is a scale where 0 corresponds to no activity and 100
corresponds to standard rating. Rating should be expressed as 'X' BS.
Below is an illustration of the Standard Scale:
Rating walking pace
0 no activity 50 very slow 75 steady 100 brisk (standard rating) 125 very fast 150
exceptionally fast The basic time for a task, or element, is the time for carrying out an element
of work or an operation at standard rating.
Basic time = observed time x observed rating
The result is expressed in basic minutes – BMs.
The work content of a job or operation is defined as: basic time + relaxation allowance + any
allowance for additional work – e.g. that part of contingency allowance which represents
work.
Standard time
Standard time is the total time in which a job should be completed at standard
performance i.e. work content, contingency allowance for delay, unoccupied time and
interference allowance, where applicable.
Allowance for unoccupied time and for interference may be important for the
measurement of machine-controlled operations, but they do not always appear in every
computation of standard time. Relaxation allowance, on the other hand, has to be taken into
account in every computation, whether the job is a simple manual one or a very complex
operation requiring the simultaneous control of several machines. A contingency allowance
will probably figure quite frequently in the compilation of standard times; it is therefore
convenient to consider the contingency allowance and relaxation allowance, so that the
sequence of calculation which started with the completion of observations at the workplace
may be taken right through to the compilation of standard time.

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Contingency allowance
A contingency allowance is a small allowance of time which may be included in a
standard time to meet legitimate and expected items of work or delays, the precise
measurement of which is uneconomical because of their infrequent or irregular occurrence.
Relaxation allowance
A relaxation allowance is an addition to the basic time to provide the worker with the
opportunity to recover from physiological and psychological effects of carrying out specified
work under specified conditions and to allow attention to personal needs. The amount of the
allowance will depend on the nature of the job. Examples are:
Personal 5–7% Energy output 0–10% Noisy 0–5% Conditions 0–100% e.g. Electronics 5%
Other allowances
Other allowances include process allowance which is to cover when an operator is
prevented from continuing with their work, although ready and waiting, by the process or
machine requiring further time to complete its part of the job. A final allowance is that of
Interference which is included whenever an operator has charge of more than one machine
and the machines are subject to random stoppage. In normal circumstances the operator can
only attend to one machine, and the others must wait for attention. This machine is then
subject to interference which increased the machine cycle time.
It is now possible to obtain a complete picture of the standard time for a
straightforward manual operation.
2. ACTIVITY SAMPLING
Activity sampling is a technique in which a large number of instantaneous observations are
made over a period of time of a group of machines, processes or workers. Each observation records
what is happening at that instant and the percentage of observations recorded for a particular activity
or delay is a measure of the percentage of time during which the activity or delay occurs.
The advantages of this method are that
It is capable of measuring many activities that are impractical or too costly to be measured by
time study. One observer can collect data concerning the simultaneous activities of a group. Activity
sampling can be interrupted at any time without effect. The disadvantages are that
It is quicker and cheaper to use time study on jobs of short duration. It does not provide
elemental detail. The type of information provided by an activity sampling study is:
1. The proportion of the working day during which workers or machines are producing.
2. The proportion of the working day used up by delays. The reason for each delay must be
recorded.
3. The relative activity of different workers and machines.
To determine the number of observations in a full study the following equation is used:
Where:
3. PREDETERMINED MOTION TIME SYSTEM
A predetermined motion time system is a work measurement technique whereby times
established for basic human motions (classified according to the nature of the motion and the
conditions under which it is made) are used to build up the time for a job at a defined level of
performance.
The systems are based on the assumption that all manual tasks can be analysed into basic
motions of the body or body members. They were compiled as a result of a very large number of
studies of each movement, generally by a frame-by-frame analysis of films of a wide range of
subjects, men and women, performing a wide variety of tasks.
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The first generation of PMT systems, MTM1, were very finely detailed, involving much
analysis and producing extremely accurate results. This attention to detail was both a strength and a
weakness, and for many potential applications the quantity of detailed analysis was not necessary, and
prohibitively time -consuming. In these cases "second generation" techniques, such as Simplified
PMTS, Master Standard Data, Primary Standard Data and MTM2, could be used with advantage, and
no great loss of accuracy. For even speedier application, where some detail could be sacrificed then a
"third generation" technique such as Basic Work Data or MTM3 could be used.
4. SYNTHESIS
Synthesis is a work measurement technique for building up the time for a job at a defined
level of performance by totaling element times obtained previously from time studies on other jobs
containing the elements concerned, or from synthetic data.
Synthetic data is the name given to tables and formulae derived from the analysis of
accumulated work measurement data, arranged in a form suitable for building up standard times,
machine process times, etc. by synthesis.
Synthetic times are increasingly being used as a substitute for individual time studies in the
case of jobs made up of elements which have recurred a sufficient number of times in jobs previously
studied to make it possible to compile accurate representative times for them.
5. ESTIMATING
The technique of estimating is the least refined of all those available to the work measurement
practitioner. It consists of an estimate of total job duration (or in common practice, the job price or
cost). This estimate is made by a craftsman or person familiar with the craft. It normally embraces the
total components of the job, including work content, preparation and disposal time, any contingencies
etc., all estimated in one gross amount.
6. ANALYTICAL ESTIMATING
This technique introduces work measurement concepts into estimating. In analytical
estimating the estimator is trained in elemental breakdown, and in the concept of standard
performance. The estimate is prepared by first breaking the work content of the job into elements, and
then utilising the experience of the estimator (normally a craftsman) the time for each element of
work is estimated – at standard performance. These estimated basic minutes are totalled to give a total
job time, in basic minutes. An allowance for relaxation and any necessary contingency is then made,
as in conventional time study, to give the standard time.
7. COMPARATIVE ESTIMATING
This technique has been developed to permit speedy and reliable assessment of the duration
of variable and infrequent jobs, by estimating them within chosen time bands. Limits are set within
which the job under consideration will fall, rather than in terms of precise capital standard or capital
allowed minute values. It is applied by comparing the job to be estimated with jobs of similar work
content, and using these similar jobs as "bench marks" to locate the new job in its relevant time band –
known as Work Group.
Uses
 To balance the work of members of teams, in association with the multiple activity charts, so
that, as far as possible, each member has tasks taking an equal time.
 To compare the efficiency of alternative methods. Other conditions being equal, the method
which takes the least time will be the best method.
 To determine, in association with man and machine multiple activity charts, the number of
machines a worker can run.

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CONCEPT OF TIME STUDY

Definition:
Time study is a work measurement technique used to determine the standard time required by
a qualified worker to complete a specific task at a defined level of performance. It involves observing,
measuring, and recording the time taken for each element of an operation, while considering factors
like worker pace, fatigue, and unavoidable delays.
Essentials of a Time Study:
 Clearly defined objective: The purpose of the time study should be clearly stated (e.g.,
setting standard times, improving efficiency, cost estimation).
 Qualified observer: The person conducting the study should be trained in time study
techniques and have a good understanding of the work being observed.
 Standardized method: The work method being studied must be standardized and
documented to ensure consistency.
 Cooperative worker: The worker being observed should be cooperative and working at a
normal pace.
 Accurate measurement: Appropriate timing devices (e.g., stopwatch, electronic timer) and
recording techniques should be used.
 Consideration of allowances: Time allowances for fatigue, personal needs, and unavoidable
delays must be included in the standard time.
Objectives of Time Study:
 Determine standard times: Establish accurate time standards for various tasks, which can be
used for production planning, scheduling, and cost control.
 Improve efficiency: Identify areas of inefficiency in work methods and develop improved
procedures.
 Set performance standards: Provide a basis for evaluating worker performance and setting
incentive schemes.
 Estimate costs: Determine labor costs for products or services.
 Balance workloads: Distribute work evenly among workers.
 Improve workplace layout: Optimize the arrangement of equipment and workstations.
Basic Procedure of Time Study:
1. Select the job to be studied: Choose a representative job that is repetitive and has a
significant impact on production.
2. Define the method: Standardize the work method and document it clearly.
3. Break down the job into elements: Divide the job into smaller, distinct elements for easier
measurement.
4. Observe and record the time: Use a timing device to measure the time taken for each
element, recording multiple observations.
5. Rate the worker's performance: Assess the worker's pace relative to a normal pace.
6. Calculate the normal time: Multiply the observed time by the performance rating factor.
7. Determine allowances: Add allowances for fatigue, personal needs, and delays to the normal
time.
8. Calculate the standard time: The sum of the normal time and allowances is the standard
time.
Advantages of Time Study:
 Provides accurate time standards: Enables better planning, scheduling, and cost control.
 Improves efficiency: Identifies areas for improvement in work methods.
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 Facilitates performance evaluation: Provides a basis for measuring worker performance.

 Aids in wage and incentive determination: Supports the development of fair wage and
incentive systems.
 Enhances workplace layout: Helps optimize the arrangement of equipment and
workstations.
Limitations of Time Study:
 Can be time-consuming and expensive: Requires trained observers and careful
measurement.
 May be subject to observer bias: The observer's judgment can influence performance rating.
 Can cause worker stress: Workers may feel pressured when being observed.
 May not be suitable for all types of work: Difficult to apply to non-repetitive or highly
variable tasks.
 Assumes consistent performance: Does not account for individual differences in worker
abilities or motivation.
Length of Time Study:
The length of a time study depends on several factors, including:
 Cycle time of the job: Jobs with longer cycle times require fewer observations.
 Variability of the work: More variable work requires more observations to achieve a desired
level of accuracy.
 Desired level of accuracy: Higher accuracy requires more observations.
 Statistical considerations: Statistical formulas can be used to determine the appropriate
number of observations.
There is no fixed length for a time study. It should continue until a sufficient number of
observations have been collected to provide a reliable estimate of the standard time.
WORK SAMPLING:
Work sampling is the statistical technique used for determining the proportion of time spent
by workers in various defined categories of activity (e.g. setting up a machine, assembling two parts,
idle...etc.). It is as important as all other statistical techniques because it permits quick analysis,
recognition, and enhancement of job responsibilities, tasks, performance competencies, and
organizational work flows. Other names used for it are 'activity sampling', 'occurrence sampling', and
'ratio delay study'.
In a work sampling study, a large number of observations are made of the workers over an
extended period of time. For statistical accuracy, the observations must be taken at random times
during the period of study, and the period must be representative of the types of activities performed
by the subjects.
One important usage of the work sampling technique is the determination of the standard time
for a manual manufacturing task. Similar techniques for calculating the standard time are time study,
standard data, and predetermined motion time systems.
Characteristics of work sampling study
The study of work sampling has some general characteristics related to the work condition:
 One of them is the sufficient time available to perform the study. A work sampling study
usually requires a substantial period of time to complete. There must be enough time
available (several weeks or more) to conduct the study.
 Another characteristic is multiple workers. Work sampling is commonly used to study the
activities of multiple workers rather than one worker.

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 The third characteristic is long cycle time. The job covered in the study has relatively a long
cycle time.
 The last condition is the non-repetitive work cycles. The work is not highly repetitive. The
jobs consist of various tasks rather than a single repetitive task. However, it must be possible
to classify the work activities into a distinct number of categories.
Steps in conducting a work sampling study
There are several recommended steps when starting to prepare a work sampling study:
1. Define the manufacturing tasks for which the standard time is to be determined.
2. Define the task elements. These are the defined broken-down steps of the task that will be
observed during the study. Since a worker is going to be observed, additional categories will
likely be included as well, such as "idle", "waiting for work", and "absent".
3. Design the study. This includes designing the forms that will be used to record the
observations, determining how many observations will be required, deciding on the number
of days or shifts to be included in the study, scheduling the observations, and finally
determining the number of observers needed.
4. Identify the observers who will do the sampling.
5. Start the study. All those who are affected by the study should be informed about it.
6. Make random visits to the plant and collect the observations.
7. After completing the study, analyze and present the results. This is done by preparing a report
that summarizes and analyzes all data and making recommendations when required.
Determining the number of observations needed in work sampling
After the work elements are defined, the number of observations for the desired accuracy at
the desired confidence level must be determined. The formula used in this method is:
pq
p 
n
pq
n 2
p
p = standard error of proportion
p = percentage of working time
q = percentage of idle time
n = number of observations
FEATURES OF WORK SAMPLING:
The general characteristics of work-sampling method are as follows-
 It requires sufficient time to complete the study
 It is feasible for the work-sampling method to study multiple workers at a time instead of one
single worker or a small group
 The cycle time of work-sampling is generally lengthy
 The work cycle is non-repetitive
APPLICATIONS OF WORK SAMPLING PROCESS:
The applications of work-sampling process are as follows-
 Work-sampling enables a fair share of job distribution amongst the workforce
 It is applied to find an estimate about delay times that are unavoidable for deciding about the
delay allowances

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 The data that is available from the work-sampling method has proved a great help in the
process of production planning
 A work-sampling method is a helpful tool for the administration as it helps in evaluating the
efficiency levels of the various departments in the organization
 The work-sampling assist the management in an organization to find all the data and
information of idle time and its cause
 Work sampling can be applied for the utilization of cranes, machine tools, trucks, etc
 It is used to get an estimate of the percentage of time consumed by various job activities like
inspection, repair, and supervision
 Work sampling is a useful tool that is applicable in finding time standards for repair work,
office work, maintenance work, etc
Advantages of Work-Sampling:
The advantages of work-sampling are as follows-
 It is possible to interrupt the study related to work-sampling at any given time without any
impact on the results of the study
 It is easy to identify and eliminate uneconomical activities through the process of work-
sampling
 An organization need not hire any experts to conduct the process of work-sampling as it can
be carried out by anyone, even an employee with limited training and knowledge
 A single analyst is enough for group operations
 One of the advantages of work-sampling is that it provides the unbiased result as the
workmen are not subjected to close observation
 Work-sampling is less time consuming as well as economical by nature because it is possible
to study more than one workforce at the same time.
Moreover, the duration of time taken for the study is only a few hours and this is also the reason why
it is less time consuming
 Another benefit of work-sampling is that the observer need not be present himself for the
whole process as it automatically records its findings
 It is possible to study teamwork by work-sampling and not by the time study
 An essential advantage of work-sampling is that it helps in reducing the clerical time
 Numerous activities that are costly and cannot be measured by time study can be easily
measured by work-sampling
 It is less tedious and does not cause fatigue
 The work sampling process does not need a timing device or a stopwatch
Disadvantages of Work-Sampling:
The disadvantages of work sampling method are as follows-
 Work sampling does not have any provision for small delays or breakdown of activities
 If an organization is interested in work sampling of one employee or small groups of a
worker, then the process will not prove economical. It is also not cost-effective for short-cycle
jobs
 One of the disadvantages of the work sampling method is that the results are often inaccurate
if the observations are insufficient or limited in nature.
 In some cases, the results from work sampling are not accurate because the working men who
are being studied may change their usual working method on seeing an observer
 One of the limitations of work sampling method is that it does not record the speed of
working of a worker
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 Workers and management can’t understand the concept of work sampling as effortlessly as
time study
ERRORS OF WORK SAMPLING PROCESS
Several errors may occur during the work sampling process, and it is essential to avoid them.
Some common ones are as follows-
 Bias in working samples
 Sampling errors
 Non-representativeness
WORK SAMPLING SYSTEMS
Work sampling system involves observing the workforce for a sufficient number of times at
random intervals. A note is made and recorded after every observation, and this information helps to
determine the proportion of time used by the workforce in the defined activities. Work sampling is
done to test the ability of a worker and evaluate his performance. The steps involved to make up a
work sampling system are as follows –
 The first step in the process of work sampling is to define the problem
 State the main objectives of the problem
 This is the time to describe each element in detail
 Obtain the approval of the workers that are to be studied
 Determine the desired accuracy of the final results in the form of a percentage
 Design the observation form to make the observation and record the data
 Now decide on the preliminary sampling or the number of considerations that should be made
 Determine the random timings that have been chosen for making the observations
 The next step involves making instant observations at every visit irrespective of the fact that
the workforce is sitting idle or is working
 It is the time to determine the activity proportion in the works sample with the help of the
formula. The formula is
P = Number of times found working/Total number of observations made
 Determine the confidence level that is required for the work sampling
 Find the Z value corresponding to the confidence level
 It is the time to make an interval estimate of the proportion of working of the worker
 Find the data at the end of each day
 Check its precision or accuracy at the end of the study
 Prepare a detailed report and state your findings and the actual result
WORK SAMPLING PROCEDURE:
The procedure to be adopted for conducting a work sampling investigation will depend upon
the type of application. As much as possible different methods will be applied for taking observations.
An analysis of the data shall be conducted to suit the case.
But the following general procedure is applicable in each study:
(1) Define the Problem:
State the main objectives or purpose of the study clearly. This invariably
includes the detailed description of each element of the work. The analyst must
explicitly know what are the different states of the operator’s activity which are to be
observed. Sometimes it will be required to observe the operator as either working or
idle.
(2) Design a chart for recording information’s.
(3) Make a pilot study i.e. preliminary observation.
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(4) From the preliminary observations, compute the delay percentage p.

(5) Determine the accuracy and confidence level desired for the investigation.
(6) Obtain the approval of the foreman of the department or section head concerned in
which study is to be made. Obtain the cooperation of the workers/operators to be
studied and they should also understand the aim/purpose of study.
(7) Calculate the number of observations required for a chosen level of confidence and
accuracy. Because work sampling is a statistical sampling procedure and the estimate
obtained would become more and more realistic as the sample size increases.
Thus, more number of observations will make the study more accurate. With
this increase in number of observations, the cost and time of study would increase.
Thus the number of observations to be taken are decided in the light of precision and
confidence required.
(8) Determine the number of observers needed. Select and instruct these people.
(9) Determine the number of days/shifts required for the study.
(10) Plan the schedule of observations such as time for taking and the route to be
followed by the observer.
(11) Proceed with sampling of observations in the chart (record sheet) making
notes of any unusual points.
(12) Analysing the data and presenting the results. The work sampling data are
analysed during the study in order to check if the things are going according to plan
or not. The data is usually summarized at the end of each day.
This provides the trend for the next day’s work and gives information regarding precision
obtained in the study so far and how much more is required. At the end of study, the final analysis are
performed and required results are presented. These would provide either ratio delay, performance
study-or-work measurement.
Applications/Uses of Work Sampling:
Work sampling is a highly useful method to solve variety of problems in various types of
activities involving groups of machines, processes or people. With the expansion and growth of
industrial plants/ enterprises it has become increasingly difficult for executives/managers to collect
information and facts about what goes on in their manufacturing sections.
Work sampling is useful and can be applied when:
(1) Work of teams has to be investigated/studied.
(2) There is clear distinction between working time and idle time.
(3) To indicate areas of delay.
(4) To investigate and to locate areas underutilization.
(5) For establishing overall performance levels.
(6) For determination of machine utilizations.
(7) In determining the distribution of duties among a group of workers.
(8) In the study of nature, causes and extent of interference with effective accomplishment of a
project.
(9) For the purpose of cost control and accounting.
(10) To estimate allowances for unavoidable delay.
(11) In ware housing and shipping operations to pin-point delays so that changes in the layout or
method could be identified which reduces delays.
(12) It is preferred when the cost of using other work measurement techniques for timing a job
appears to be more.
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ERGONOMICS AND ITS AREA OF APPLICATION IN THE WORK SYSTEM:

Ergonomics is the process of designing or arranging workplaces, products and systems so that
they fit the people who use them.
Most people have heard of ergonomics and think it is something to do with seating or with the
design of car controls and instruments – and it is… but it is so much more. Ergonomics applies to the
design of anything that involves people – workspaces, sports and leisure, health and safety.
Ergonomics (or ‘human factors’ as it is referred to in North America) is a branch of science
that aims to learn about human abilities and limitations, and then apply this learning to improve
people’s interaction with products, systems and environments.
Ergonomics aims to improve workspaces and environments to minimise risk of injury or
harm. So as technologies change, so too does the need to ensure that the tools we access for work, rest
and play are designed for our body’s requirements.
WORKS OF ERGONOMICS:
Ergonomics is a relatively new branch of science which celebrated its 50th anniversary in
1999, but relies on research carried out in many other older, established scientific areas, such as
engineering, physiology and psychology.
To achieve best practice design, Ergonomists use the data and techniques of several
disciplines:
Anthropometry: Body Sizes, Shapes; Populations And Variations,
Biomechanics: Muscles, Levers, Forces, Strength,
Environmental Physics: Noise, Light, Heat, Cold, Radiation, Vibration
Body Systems: Hearing, Vision, Sensations,
Applied Psychology: Skill, Learning, Errors, Differences,
Social Psychology: Groups, Communication, Learning, Behaviours.
ADVANTAGES OF ERGONOMICS:
1. Increased savings
• Fewer injuries
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• More productive and sustainable employees

• Fewer workers’ compensation claims
– The average direct cost of a workers compensation claim for an MSD is $14,120
(Oregon OSHA 2007)
– The indirect costs involved bring the total average claim cost to well over $32,000
2. Fewer employees experiencing pain
• Implementing ergonomic improvements can reduce the risk factors that lead to discomfort.
3. Increased productivity
• Ergonomic improvements can reduce the primary risk factors for MSDs, so workers are
more efficient, productive, and have greater job satisfaction.
4. Increased morale
• Attention to ergonomics can make employees feel valued because they know their employer
is making their workplace safer.
5. Reduced absenteeism
• Ergonomics leads to healthy and pain-free workers who are more likely to be engaged and
productive

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BENEFITS OF ERGONOMICS:
1. Health Benefits
People who work in ergonomic workplaces benefit from improved health. The effect of
ergonomics starts within the cardiovascular system and spreads to other areas. Your heart will be
healthier than it would be if you worked in a standard environment. Ergonomics can improve the
health of your employees by reducing work-related injuries, most often caused by strains and over-
exertion.
Ergonomic workstations can help you and your employees feel less tension in your body
because you’ll adjust the workstations to fit your height. A neutral position will prevent you from
straining your eyes, neck, and back. Your legs can also benefit from better blood flow.
2. Improved Productivity
Ergonomic workplaces are efficient workplaces. Ergonomic workstations combine different
ideas to improve workers’ ability to complete their tasks—from organizing items and supplies to
integrating computer equipment and monitors. An optimized workstation allows a worker to focus on
their task and not be distracted by discomfort or a lack of organization. The more focused your
employees are, the higher the level of productivity they can have.
3. Improved Mental Clarity
Reducing physical discomfort and improving your posture can improve your mental clarity
and allow you to do your work more successfully. Ergonomics can also help you reduce stress and
improve your concentration.
When you’re feeling comfortable, you can focus better on your work. Ergonomics helps
decrease pain, strengthen muscles, and increase blood flow. Combined, this can improve mental
insight.
The improved moods and focus will allow you and your employees to be more productive and
engaged in your work.
4. Decreased Pains
Ergonomics focuses on optimizing the design of the workplace, tools, and equipment to
reduce strain on employees, minimize fatigue, and improve overall comfort and safety.
Ergonomics can also help improve posture and reduce the risk of musculoskeletal injuries,
such as back pain, by providing ergonomically designed chairs, desks, other furniture, and adjustable
workstations. By creating an ergonomically designed work environment, employers can help to
ensure that employees remain healthy and productive.
5. Eliminates Hazards
Part of creating a more productive work environment is eliminating the daily hazards that can
hurt your employees. Ergonomics contributes to identifying and eliminating hazards in the workplace
by creating work environments that are tailored to fit the user.
Additionally, ergonomics helps to create a better environment by reducing distractions,
providing suitable lighting and ventilation, and providing adjustable furniture and equipment, all of
which help eliminate potential workplace hazards.
It is also a good idea to ask your employees about what hazards they see in their environment.
By asking for their input, you’re showing interest in them. Implementing the change will show them
they’ve been heard, which will further help with employee engagement.
6. Quality Of Work Improves
The benefits of ergonomic workspaces range from employee well-being to the quality of
work. Aches, pains, fatigue, and other problems can affect a worker. Ergonomics can eliminate those
issues and help workers work.
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Additionally, ergonomics can help ensure that employees are using the most effective tools
and equipment to do their job and that they can reach and use the tools and equipment safely. A
straightforward example is the way how proper lighting can reduce the number of mistakes that
happen in a work process just by ensuring the worker can adequately see all details.
7. Reduce Absenteeism
Ergonomics can improve absenteeism by helping prevent workplace injuries that lead to
missed workdays and creating a more comfortable working environment for employees.
Ergonomic practices can also reduce employee fatigue and stress, which can be physical or
psychological factors contributing to absenteeism.
Encourage your workers to take regular breaks, change postures frequently, and adjust their
workstations to fit their body size and shape better.
Finally, promote positive health behaviors by providing resources and encouraging your
employees to maintain a healthy diet and lifestyle.
8. Focus on Safety
Ergonomics will create a safer work environment and increase awareness. You’ll remove
hazards, improve workstations for less discomfort, and teach your employees to update their spaces
with safety in mind.
Not to mention, the health benefits that come with ergonomics keep employees healthy at
work. This will encourage safety on another level. You can keep your work consistent and stable by
providing employees with a safe environment they can thrive in.
9. Increased Employee Satisfaction
The more you lean into the ergonomics culture, the more positive your work environment will
be.
Ergonomics in the workplace can help improve employee satisfaction by reducing physical
and mental stress. As a result, your employees will enjoy coming to work more than they did before,
affecting those around them.
10. Lower Insurance Costs
Ergonomics in the workplace can help lower your insurance costs by reducing the risk of
employees suffering from work-related injuries and illnesses. By reducing the number of Workers’
Compensation claims, you could be able to save on insurance premiums.
Ergonomic improvements such as adjustable workstations, ergonomic chairs and keyboards,
and improved lighting can help reduce employee fatigue and improve your overall working
environment. In such an ergonomic work environment, your employees are less likely to become
injured on the job.
In addition, implementing ergonomic policies and programs can provide you with greater
legal protection in case of a worker injury.
THE SCOPE OF ERGONOMICS:
The scope of Ergonomics is tremendously wide and is not restricted to any particular industry
or relevance. Ergonomics move towards everything which engrosses people. Work systems, sports
and leisure, health and safety all symbolize ergonomics principles if well intended.
The capability of people to do their job is influenced by the person’s potential (physical and
mental), the job demand (physical and mental) and the condition (physical and organizational
environment) under which the person is carrying out the job.
The aim of ergonomics
The Aim of Ergonomics is to increase and conserve human health and contentment and to
optimize the human performance in a system standpoint.
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Ergonomics is concerned with both employees’ well-being as well as organization well-being.

Ergonomics aims to make certain that human requirements for safe and proficient working are
met in the design of work systems. The key words are; health, comfort and performance.
It will be clear already that the benefits of ergonomics can appear in many different forms, in
productivity and quality, in safety and health, in reliability, in job satisfaction and in personal
development.
The reason for this breadth of scope is that its basic aim is competence in purposeful
activity—effectiveness in the widest sense of accomplishing the desired result without wasteful input,
without error and without damage to the person involved or to others.
It is not efficient to burn up redundant energy or time because inadequate thought has been
given to the design of the work, the workspace, the working environment and the working conditions.
It ensures that the functioning situation is in harmony with the performance of the worker. In
view of these complexities it might seem that the solution is to provide a flexible situation where the
human operator can optimize a purposely apt way of doing things.
Unfortunately such an approach is sometimes impracticable because the more well-organized
way is often not apparent, with the result that a worker can go on doing something the wrong way or
in the wrong conditions for years. Thus it is necessary to adopt a systematic approach: to start from a
sound theory, to set measurable objectives and to check success against these objectives.
Aspects of Ergonomics:
There are five aspects of ergonomics: safety, comfort, ease of use, productivity/performance,
and aesthetics. Based on these aspects of ergonomics, examples are given of how products or systems
could benefit from redesign based on ergonomic principles.
Safety – Today, everything is ergonomically oriented. However, buying just a single chair
which provides good posture, balance and less stress on the body is not the adequate. To prevent
musculoskeletal injuries, one must buy additional furniture components which are also responsible
in decreasing stress and work related injury. Similarly, the overhead cabinets over kitchen counters
in a kitchen may be lesser in depth and optimal in height so that the person working may get
adequate head room and will not get hurt while bending over the counter. Ergonomic principles can
help one to avoid injuries at home as well as at work.
Comfort – It is extremely important that products like chairs are designed with ergonomics in
mind. The chair should be comfortable for the child, supporting his back and allowing his feet to
touch the floor. In the case of task lighting for study table, some task lights are extremely bright as
compared to their surroundings and may cause glare and discomfort to the user. Ergonomic
principles could re-design this based on contrast principles.
Ease of use– Seated on an ergonomically designed chair and work with a computer, the
height of the chair must be adjusted accordingly. It is important to place the computer monitor at a
level where it does not produce stress on the eyes or the hands. The top of the screen should be
ideally set just below eye level. When sitting upright, this positioning will not produce any neck,
shoulder or eye stress. Similarly, microwave ovens when placed them at a height that is much
below the eye level makes it difficult to check while cooking. This could be addressed with the
principles of working heights in ergonomics and aptly placing it to ease the process.
Productivity/performance– Ergonomics can potentially be used to improve productivity as
well. The kitchen is typically the most used room in any house. And an efficient kitchen is typically
a key point in having a happy life. There is an ergonomically correct working height for each type
of work the work counters can be designed to maximize performance and reduce work stress by
considering both ergonomics and productivity together.
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Aesthetics – Aesthetics concerns our senses and our responses to an object. If something is
aesthetically pleasing to you, it is ‘pleasurable’ and you like it. It is integration of function,
usability, and aesthetics in design e.g. Switchboards may be placed at an appropriate height with
the help of ergonomics principle so that they are consistent in height, therefore easy to locate and
also do not become splotches in the interior elevations. Thus, letting the interior look pleasant
while not being unduly emphatic on the walls.
Ergonomics is the study of the interaction between people and machine and factors that affect
the interaction Purpose is to improve the performance of the systems by improving human machine
interaction. This can be done by “ designing-in” better interface or by designing – out factors in the
work environment, in the task or in the organisation of work that degrade human machine
performance.
ERGONOMICS IS BENEFICIALLY APPLIED IN SUBSEQUENT THREE AREAS:
1.Design of Man-Machine Systems: A man-machine system is a system where one or more
workmen/ human beings work in relation with one or more machines, devices or equipment. Thus a
worker drilling a hole in a job or a person using a hammer to drive a nail in a wooden job (an article
being manufactured is an example of a man- machine system as far as ergonomics is concerned.
Such systems could be productive systems as well as service systems such as a post office or
fire fighting system or a dispensary etc. Ergonomics is applied to adapt such systems so as to provide
maximum job satisfaction and comfort and minimum physiological and mental load to the operator of
the system.
2. Design of Consumer Goods and Service Systems: Ergonomics is applicable in the design of
consumer goods starting from design of tooth brush and other items such as dinning set; sofa set;
kitchen ware, house hold fittings table and shoes etc. Similarly protective equipment such as safety
goggles, adverse weather and space clothing, gloves, crash helmets, fire fighting and industrial hazard
protection and appliances etc. should also be economically sound.
3.Design of Working Environment: While designing a proper working environment for work
force/workers at work, the various factors related with ergonomics such as human endurance of
illumination, pollution, noise heating and ventilation should be taken into consideration. This aspect
should be taken into consideration at each stage right design up to real utilization or actual service. All
factors concerned with environments such as design of work benches, public transport, road systems,
town and country planning, personnel, neighbourhood, as well as airports etc. should be subjected to
ergonomic analysis.
ANTHROPOMETRY:
Anthropometry refers to the measurement of the human individual. An early tool of physical
anthropology, it has been used for identification, for the purposes of understanding human physical
variation, in paleoanthropology and in various attempts to correlate physical with racial and
psychological traits. Anthropometry involves the systematic measurement of the physical properties
of the human body, primarily dimensional descriptors of body size and shape. Since commonly used
methods and approaches in analysing living standards were not helpful enough, the anthropometric
history became very useful for historians in answering questions that interested them.
Today, anthropometry plays an important role in industrial
design, clothing design, ergonomics and architecture where statistical data about the distribution of
body dimensions in the population are used to optimize products. Changes in lifestyles, nutrition, and
ethnic composition of populations lead to changes in the distribution of body dimensions (e.g. the rise
in obesity) and require regular updating of anthropometric data collections.

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Individual variation
Auxologic
Auxologic is a broad term covering the study of all aspects of human physical growth.
Height
Human height varies greatly between individuals and across populations for a variety of
complex biological, genetic, and environmental factors, among others. Due to methodological and
practical problems, its measurement is also subject to considerable error in statistical sampling.
The average height in genetically and environmentally homogeneous populations is often
proportional across a large number of individuals. Exceptional height variation (around 20% deviation
from a population's average) within such a population is sometimes due to gigantism or dwarfism,
which are caused by specific genes or endocrine abnormalities. It is important to note that a great
degree of variation occurs between even the most 'common' bodies (66% of the population), and as
such no person can be considered 'average'.
In the most extreme population comparisons, for example, the average female height
in Bolivia is 142.2 cm (4 ft 8.0 in) while the average male height in the Dinaric Alps is 185.6 cm (6 ft
1.1 in), an average difference of 43.4 cm (1 ft 5.1 in). Similarly, the shortest and tallest of
individuals, Chandra Bahadur Dangi and Robert Wadlow, have ranged from 53–272 cm (1 ft 9 in –
8 ft 11 in), respectively.
The age range where most females stop growing is 15–⁠18 years and the age range where
most males stop growing is 18–⁠21 years.
Weight
Human weight varies extensively both individually and across populations, with the most
extreme documented examples of adults being Lucia Zarate who weighed 2.1 kg (4.7 lb), and Jon
Brower Minnoch who weighed 640 kg (1,400 lb), and with population extremes ranging from 49.6 kg
(109.3 lb) in Bangladesh to 87.4 kg (192.7 lb) in Micronesia.
Organs
Adult brain size varies from 974.9 cm3 (59.49 cu in) to 1,498.1 cm3 (91.42 cu in) in females
and 1,052.9 cm3 (64.25 cu in) to 1,498.5 cm3 (91.44 cu in) in males, with the average being
1,130 cm3 (69 cu in) and 1,260 cm3 (77 cu in), respectively. The right cerebral hemisphere is typically
larger than the left, whereas the cerebellar hemispheres are typically of more similar size.
Size of the human stomach varies significantly in adults, with one study showing volumes
ranging from 520 cm3 (32 cu in) to 1,536 cm3 (93.7 cu in) and weights ranging from 77 grams (2.7 oz)
to 453 grams (16.0 oz).
Aesthetic
Human beauty and physical attractiveness have been preoccupations throughout history
which often intersect with anthropometric standards. Cosmetology, facial symmetry, and waist–hip
ratio are three such examples where measurements are commonly thought to be fundamental.
Evolutionary science
Anthropometric studies today are conducted to investigate the evolutionary significance of
differences in body proportion between populations whose ancestors lived in different environments.
Human populations exhibit climatic variation patterns similar to those of other large-bodied
mammals, following Bergmann's rule, which states that individuals in cold climates will tend to be
larger than ones in warm climates, and Allen's rule, which states that individuals in cold climates will
tend to have shorter, stubbier limbs than those in warm climates.
On a microevolutionary level, anthropologists use anthropometric variation to reconstruct
small-scale population history. For instance, John Relethford's studies of early 20th-century
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anthropometric data from Ireland show that the geographical patterning of body proportions still
exhibits traces of the invasions by the English and Norse centuries ago.
Similarly, anthropometric indices, namely comparison of the human stature was used to
illustrate anthropometric trends. This study was conducted by Jörg Baten and Sandew Hira and was
based on the anthropological founds that human height is predetermined by the quality of the
nutrition, which used to be higher in the more developed countries. The research was based on the
datasets for Southern Chinese contract migrants who were sent to Suriname and Indonesia and
included 13,000 individuals.
Measuring instruments
3D body scanners
Today anthropometry can be performed with three-dimensional scanners. A global
collaborative study to examine the uses of three-dimensional scanners for health care was launched in
March 2007. The Body Benchmark Study will investigate the use of three-dimensional scanners to
calculate volumes and segmental volumes of an individual body scan. The aim is to establish whether
the Body Volume Index has the potential to be used as a long-term computer-based anthropometric
measurement for health care. In 2001 the UK conducted the largest sizing survey to date using
scanners. Since then several national surveys have followed in the UK's pioneering steps, notably Size
USA, Size Mexico, and Size Thailand, the latter still ongoing. Size UK showed that the nation had
become taller and heavier but not as much as expected. Since 1951, when the last women's survey had
taken place, the average weight for women had gone up from 62 to 65 kg. However, recent research
has shown that posture of the participant significantly influences the measurements taken, the
precision of 3D body scanner may or may not be high enough for industry tolerances, and
measurements taken may or may not be relevant to all applications (e.g. garment
construction). Despite these current limitations, 3D Body Scanning has been suggested as a
replacement for body measurement prediction technologies which (despite the great appeal) have yet
to be as reliable as real human data.
Baropodographic

Example insole (in-shoe) foot pressure measurement device

Baropodographic devices fall into two main categories: (i) floor-based, and (ii) in-shoe. The
underlying technology is diverse, ranging from piezoelectric sensor arrays to light refraction, but the
ultimate form of the data generated by all modern technologies is either a 2D image or a 2D
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image time series of the pressures acting under the plantar surface of the foot. From these data other
variables may be calculated.
The spatial and temporal resolutions of the images generated by commercial pedobarographic
systems range from approximately 3 to 10 mm and 25 to 500 Hz, respectively. Sensor technology
limits finer resolution. Such resolutions yield a contact area of approximately 500 sensors (for a
typical adult human foot with surface area of approximately 100 cm2). For a stance phase duration of
approximately 0.6 seconds during normal walking, approximately 150,000 pressure values, depending
on the hardware specifications, are recorded for each step.
Neuroimaging
Direct measurements involve examinations of brains from corpses, or more recently, imaging
techniques such as MRI, which can be used on living persons. Such measurements are used in
research on neuroscience and intelligence. Brain volume data and other craniometric data are used in
mainstream science to compare modern-day animal species and to analyze the evolution of the human
species in archeology.
Epidemiology and medical anthropology
Anthropometric measurements also have uses in epidemiology and medical anthropology, for
example in helping to determine the relationship between various body measurements (height, weight,
percentage body fat, etc.) and medical outcomes. Anthropometric measurements are frequently used
to diagnose malnutrition in resource-poor clinical settings.
Forensics and criminology

An early set of finger- and handprints by Sir William Herschel, 2nd Baronet (1833–1917)
Forensic anthropologists study the human skeleton in a legal setting. A forensic
anthropologist can assist in the identification of a decedent through various skeletal analyses that
produce a biological profile. Forensic anthropologists utilize the Fordisc program to help in the
interpretation of craniofacial measurements in regards to ancestry determination.
TYPES OF MEASUREMENTS OF THE ANTHROPOMETRY:
1. STATIC ANTHROPOMETRY
Anthropometry can be defined with the static calculation of the dimensions of the body
structure. Anthropometry can be done with static measurements of the body in a position of silence or
a static position. Body dimensions measured using static position is weight, height, head size, arm
length, etc. Besides, there are several factors that affect the dimensions of the human body are
namely:
1. Age
2. Gender
3. Ethnic groups
4. Profession

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2. DYNAMIC ANTHROPOMETRY
When a static calculation related to anthropometry with body shape when not doing any
position. Then according to its name, dynamic anthropometry associated with dynamic circumstances
or physical traits of a person in a state of moving or pay attention to the movements that might occur
when the job executes.
There are three forms of dynamic measurement, they are:
1. The measurement of level of skill as an approach to understand how the circumstances
regarding the workings of an activity in the work and so on.
2. Measurement of the range of the required work. It is related to security and convenience in
the work. For example, the employees of the factory, of course the range of employees to the
machine tool will be highly influential. And this affects their work and safety needs.
3. Measuring the variability of work, based on any activity that is conducted in the
mechanism of action of a person.
The measurement of Anthropometry aims to find out the dimensions of the shape of the
human body, so that the equipment is designed more in line and can provide a sense of
comfort and pleasurable. In addition, it is influential with the human efforts to make the mass
product. Where in addition, the product is expected to have a value of ergonomics.

DESIGN PROCEDURES (DESIGN GOOD PROCEDURES):

Most organisations use procedures as part of their systems of management. Correctly drafted
procedures can be an important form of control, but poorly designed procedures can expose the
organisation to higher than necessary levels of risk to its business and employees.
Often procedures are written by someone who knows the work well and who has determined for
themselves what is the best method of doing a job. This can create risks in that:
 Those who are required to follow the procedure subsequently may not have the skill base or
experience of the procedure writer
 The procedure may be ambiguous or liable to misinterpretation
 The procedure may codify and pass-on undesirable practices to others.
This note outlines a generally accepted, three-stage process for the creation of low risk procedures.
 The first stage, establishing the need, is the process by which an organisation decides whether
a procedure is required and what its purpose might be.
 The second stage, task analysis, is useful for all procedures. It can produce flow charts as well
as written, step-by-step instructions. This stage is the focus of this technical note.
 The third stage, involving subjecting a draft procedure to a rigorous risk analysis, is justified
for business-critical and safety-critical procedures. A procedural HAZOP process, the subject
of a separate technical note, is the recommended approach for this.
In this note we use the following definitions:
 Task – the business purpose to be achieved by following a procedure;
 Procedure – the written sequence of instructions, usually set out as a series of steps, necessary
to complete the task;
 Step – one component or element of a procedure or task.
Establishing the need
Organisations perform functions to achieve their objectives. The functions usually involve
people and equipment. The effectiveness and efficiency of the functions, and the way they interact,
determine the effectiveness and efficiency of the organisation itself, and they may be critical in
determining whether and to what extent the organisation’s objectives are achieved.
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The functions that people perform in an organisational setting are usually defined in the form of a set
of tasks, each with specific objectives. The tasks themselves are usually specified in the form of
procedures.
Value management is the approach most commonly followed to ensure the set of functions an
organisation performs is fit-for-purpose in terms of achieving its overall objectives. If the tasks that
emerge from a value management activity are not currently undertaken by the organisation, or are
undertaken in a different way, then new procedures must be created or old ones must be redesigned so
the required functional outputs can be delivered.
For each task, value management should generate a clear statement of the purpose of the task,
expressed in terms of its contribution to the function to be performed and the objectives to be
achieved. It may also specify the available inputs, the key interactions and the necessary outputs that
must be provided.
Value management is the subject of a separate technical note.
Hierarchical task analysis
After the purpose of the task has been established, task analysis sets out the procedure as a
sequence of steps with an appropriate degree of information and detail. One useful form, hierarchical
task analysis (HTA), involves starting at the highest-level task and decomposing it into secondary
level steps, and then further decomposing steps into lower-level steps to whatever degree of detail is
appropriate and necessary.
The level of decomposition depends on who is to perform the step, its importance and the
working environment in which it is undertaken. For the most skilled employees, under good working
conditions and with little time pressure to complete the work, the statement of the highest-level task
may be sufficient. For others it might be necessary to go to far more detailed levels.
The level of decomposition, the degree of detail with which each step is described and the
way in which information is presented should also reflect performance-shaping factors such as:
 The level of skill, knowledge, experience and familiarity required to complete the step
successfully compared with that available
 The level of training and supervision available
 The working conditions and how conducive they are to error-free behaviour
 The stress and level of urgency associated with timely decision making during the procedure
 Other activities that have to take place at the same time that might compete for the
employee’s attention.

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UNIT IV STATISTICAL QUALITY CONTROL

Definition and Concepts – Fundamentals – Control Charts for variables – Control Charts for attributes
– Acceptance Sampling- O.C curve –Single sampling plan- Double sampling plan.

What is Statistical Quality Control (SQC)?

 Concept: SQC uses statistical methods to monitor and maintain the quality of products and
services. It's about making sure things are made right, consistently.
 Definition: SQC involves a collection of statistical techniques designed to evaluate and
control the quality of processes and products. It helps in identifying any deviations from
desired standards and taking corrective actions.
Elements of SQC
1. Descriptive Statistics: Summarizing quality data (mean, standard deviation, range).
2. Statistical Process Control (SPC): Monitoring processes to ensure they stay within
acceptable limits (using control charts).
3. Acceptance Sampling: Deciding whether to accept or reject a batch of products based on a
sample inspection.
Techniques of SQC
1. Control Charts
o These are graphs used to study how a process changes over time.
o They have a central line (average), an upper control limit (UCL), and a lower control
limit (LCL).
o If data points fall outside the control limits, it indicates a problem in the process.
Types of Control Charts:
o Variables Control Charts: Used for measurable data (e.g., length, weight).
Examples include:
 X-bar and R charts: Track the average and range of samples.
 X-bar and s charts: Track the average and standard deviation of samples.
o Attributes Control Charts: Used for countable data (e.g., number of defects).
Examples include:
 p-charts: Track the proportion of defective items.
 c-charts: Track the number of defects per unit.
Example of an X-bar and R Chart:

Xbar and R chart

2. Acceptance Sampling

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o This involves inspecting a sample of items from a larger batch (lot) to decide whether
to accept or reject the entire batch.
o It's useful when testing every item is too costly or destructive.
Types of Acceptance Sampling Plans:
o Single Sampling: One sample is taken to make a decision.
o Double Sampling: If the first sample is inconclusive, a second sample is taken.
o Multiple Sampling: More than two samples can be taken if needed.
Example of an Operating Characteristic (OC) Curve:

Operating Characteristic (OC) curve

Advantages of SQC
 Improved Quality: Reduces defects and increases consistency.
 Cost Reduction: Prevents waste and rework.
 Increased Efficiency: Optimizes processes and resource use.
 Better Decision Making: Provides data-driven insights.
 Enhanced Customer Satisfaction: Delivers reliable products/services.
Fundamentals of SQC
 Variation: Understanding that variation is inherent in all processes.
 Data Analysis: Using statistical tools to analyze quality data.
 Process Control: Monitoring and adjusting processes to minimize variation.
 Continuous Improvement: Always seeking ways to enhance quality.
SINGLE SAMPLING PLANS
Objectives
After studying this unit, you should be able to:
 describe a single sampling plan;
 compute the probability of accepting or rejecting a lot of given incoming
 quality in a single sampling plan; construct the operating characteristics (OC) curve of a
single sampling plan;
 compute the consumer’s risk and producer’s risk in a single sampling plan;
 compute the average sample number (ASN) and the average total inspection (ATI) for a
single sampling plan; and
 design single sampling plans
SINGLE SAMPLING PLAN:
A sampling plan in which a decision about the acceptance or rejection of a lot is based on a
single sample that has been inspected is known as a single sampling plan. For example, suppose a
buyer purchases cricket balls in lots of 500 from a company manufacturing cricket balls. To check the
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quality of the lots, the buyer draws a random sample of size 20 from each lot and takes a decision
about accepting or rejecting of the lot on the basis of the information provided by this sample. Since
the buyer takes the decision about the lot on the basis of a single sample, this sampling plan is a single
sampling plan.
A single sampling plan requires the specification of two quantities which are known as
parameters of the single sampling plan. These parameters are
n – size of the sample, and
c – acceptance number for the sample.
Let us suppose that the lots are of the same size (N) and are submitted for inspection one at a
time. The procedure for implementing the single sampling plan to arrive at a decision about the lot is
described in the following steps:
Step 1: We draw a random sample of size n from the lot received from the supplier or the
final assembly.
Step 2: We inspect each and every unit of the sample and classify it as defective or non-
defective. At the end of the inspection, we count the number of defective units found in the
sample. Suppose the number of defective units found in the sample is d.
Step 3: We compare the number of defective units (d) found in the sample with the stated
acceptance number (c).
Step 4: We take the decision of acceptance or rejection of the lot on the basis of the sample as
follows:
Under acceptance sampling plan
If the number of defective units (d) in the sample is less than or equal to the
stated acceptance number (c), i.e., if d ≤ c, we accept the lot and if d > c, we reject the
lot.
Under rectifying sampling plan
If d ≤ c, we accept the lot and replace all defective units found in the sample
by non-defective units and if d > c, we accept the lot after inspecting the entire lot and
replacing all defective units in the lot by non-defective units. The steps described
above are shown in Fig.

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OPERATING CHARACTERISTIC (OC) CURVE:

An Operating characteristic curve (OC curve) is a graphical representation of the performance
of a quality control system. It shows the relationship between the probability of accepting a lot of
products with certain quality characteristics and the quality level of the lot. OC curve provides valuable
insights into the performance of quality control processes and helps businesses assess the effectiveness
of their quality management efforts.

Significance of operating characteristic curve (oc curve) in quality management

Understanding the Operating characteristic curve (OC curve) is crucial for Quality Management
businesses for several reasons.

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Firstly, OC curves provide businesses with a visual representation of the performance of their
quality control systems. By analyzing the curve, businesses can identify areas of improvement and make
informed decisions about quality control processes.
Secondly, OC curves help businesses set appropriate quality control standards. By evaluating
the curve, businesses can determine the acceptable quality level for different products or processes,
ensuring that the quality control system meets the desired standards.
Thirdly, OC curves allow businesses to assess the efficiency and reliability of their quality
control systems. By analyzing the curve, businesses can determine the probability of accepting or
rejecting lots based on their quality level. This information helps businesses optimize their quality
control processes and minimize errors or defects.
Overall, the Operating characteristic curve (OC curve) is significant in Quality Management as
it provides valuable insights into the performance of quality control systems, helps set appropriate
quality control standards, and improves the efficiency and reliability of quality management processes.
Who benefits from operating characteristic curve (oc curve) in quality management?
Various stakeholders in the Quality Management ecosystem benefit from Operating
characteristic curve (OC curve).
Quality Managers benefit from OC curves as they provide a clear understanding of the
performance of the quality control system. This information helps Quality Managers make data-driven
decisions and continuously improve the quality control processes.
Manufacturers benefit from OC curves as they help optimize production processes and
minimize defects. By analyzing the curve, manufacturers can identify areas of improvement and
implement corrective measures to enhance product quality.
Customers benefit from OC curves indirectly as they ensure that products meet the desired
quality standards. By using OC curves, businesses can set appropriate quality control standards,
resulting in products that meet customer expectations.
Regulatory bodies benefit from OC curves as they provide evidence of compliance with quality
standards. By analyzing the curve, regulatory bodies can assess the effectiveness of the quality control
system and ensure that businesses meet the required quality standards.
Overall, various stakeholders in the Quality Management ecosystem, including Quality
Managers, manufacturers, customers, and regulatory bodies, benefit from Operating characteristic curve
(OC curve) as it helps optimize processes, ensure product quality, and demonstrate compliance with
quality standards.
Practical implications and why it matters for quality management businesses
Operating characteristic curve (OC curve) has practical implications for Quality Management
businesses. By understanding and utilizing OC curves effectively, businesses can improve their quality
control processes and achieve better overall quality management.
One practical implication of OC curves is the ability to set appropriate quality control standards.
By analyzing the curve, businesses can determine the acceptable quality level for different products or
processes. This ensures that the quality control system is aligned with the desired quality standards and
helps businesses deliver products that meet customer expectations.
Another practical implication is the identification of areas for improvement. OC curves provide a visual
representation of the performance of the quality control system, allowing businesses to identify areas
where the system may be underperforming. By analyzing the curve and identifying potential
weaknesses, businesses can implement corrective measures and optimize their quality control processes.
Furthermore, OC curves enable businesses to make informed decisions about accepting or
rejecting lots based on their quality level. By evaluating the curve, businesses can determine the
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probability of accepting or rejecting lots, minimizing the risk of accepting defective products or rejecting
acceptable ones. This helps businesses reduce costs associated with rework or product recalls and
ensures consistent product quality.
In summary, understanding and applying OC curves in Quality Management have practical
implications for businesses. It allows them to set appropriate quality control standards, identify areas for
improvement, and make informed decisions about lot acceptance or rejection, leading to improved
overall quality management.
Best practices when considering operating characteristic curve (oc curve) in quality management
and why it matters
When considering Operating characteristic curve (OC curve) in Quality Management, there are
several best practices that businesses should follow to ensure effective implementation and utilization.
These best practices are crucial for achieving optimal quality control and improving overall quality
management.
One best practice is to collect sufficient data for constructing the OC curve. Businesses should
gather data on the quality characteristics of the products or processes under consideration. Sufficient
data allows for accurate representation of the performance of the quality control system and ensures
reliable decision-making based on the OC curve.
Another best practice is to regularly update and review the OC curve. Quality Management is a
dynamic process, and the performance of the quality control system may change over time. By regularly
updating and reviewing the OC curve, businesses can identify any deviations or trends and take
necessary actions to maintain or improve quality control processes.
Additionally, businesses should involve relevant stakeholders in the construction and
interpretation of the OC curve. This includes Quality Managers, production managers, and other key
personnel involved in quality control processes. Involving stakeholders ensures that the OC curve
accurately reflects the performance of the quality control system and allows for informed decision-
making.
Furthermore, businesses should use the OC curve to drive continuous improvement in quality
management. The insights gained from the curve should be used to identify areas for improvement and
implement corrective measures. By continuously analyzing and optimizing quality control processes
based on the OC curve, businesses can achieve higher levels of product quality and customer
satisfaction.
In summary, following best practices when considering Operating characteristic curve (OC curve) in
Quality Management is essential for effective implementation and utilization. It ensures accurate
representation of the quality control system's performance, enables informed decision-making, and
drives continuous improvement in quality management processes.
Actionable tips for leveraging operating characteristic curve (oc curve) in quality management
To effectively leverage Operating characteristic curve (OC curve) in Quality Management,
businesses can follow these actionable tips:
Best Tip 1: Collect Sufficient Data
Ensure that you collect sufficient data on the quality characteristics of the products or processes
under consideration. This data will be used to construct the OC curve and provide a reliable
representation of the performance of the quality control system.
Best Tip 2: Regularly Update and Review the OC Curve
Regularly update and review the OC curve to reflect any changes in the performance of the
quality control system. This will help identify any deviations or trends and enable you to take necessary
actions to maintain or improve quality control processes.
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Best Tip 3: Involve Relevant Stakeholders

Involve relevant stakeholders, such as Quality Managers and production managers, in the
construction and interpretation of the OC curve. This ensures that the curve accurately reflects the
performance of the quality control system and allows for informed decision-making.
These actionable tips will help businesses effectively leverage Operating characteristic curve
(OC curve) in Quality Management. By following these tips, businesses can improve the accuracy of the
curve, make informed decisions, and drive continuous improvement in quality management processes.
Related terms and concepts to operating characteristic curve (oc curve) in quality management
Related Term or Concept 1: Quality Control
Quality control refers to the processes and activities implemented to ensure that products or
services meet specified quality requirements. It involves monitoring and inspecting products or
processes to identify and address any quality issues.
Related Term or Concept 2: Acceptance Sampling
Acceptance sampling is a statistical quality control technique used to determine whether to
accept or reject a batch or lot of products based on a sample. It involves inspecting a subset of the batch
and making a decision about the quality of the entire batch based on the results.
Related Term or Concept 3: Statistical Process Control (SPC)
Statistical Process Control (SPC) is a quality control technique that uses statistical methods to
monitor and control processes. It involves collecting and analyzing data to detect any variations or
trends in the process and take necessary actions to maintain or improve its performance.
These related terms and concepts provide additional context and understanding of quality
management practices and techniques related to the Operating characteristic curve (OC curve).

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UNIT V PRODUCTION PLANNING AND CONTROL

Forecasting – Qualitative and Quantitative forecasting techniques – Types of production – Process
planning – Economic Batch Quantity– Loading – Scheduling and control of production –
Dispatching–Progress control.

PRODUCTION PLANNING AND CONTROL:

For efficient, effective and economical operation in a manufacturing unit of an organization, it
is essential to integrate the production planning and control system.
Production planning and subsequent production control follow adaption of product design and
finalization of a production process.
Production planning and control address a fundamental problem of low productivity,
inventory management and resource utilization.
Production planning is required for scheduling, dispatch, inspection, quality management,
inventory management, supply management and equipment management.
Production control ensures that production team can achieve required production target,
optimum utilization of resources, quality management and cost savings.
Planning and control are an essential ingredient for success of an operation unit.
The benefits of production planning and control are as follows:
 It ensures that optimum utilization of production capacity is achieved, by proper scheduling
of the machine items which reduces the idle time as well as over use.
 It ensures that inventory level are maintained at optimum levels at all time, i.e. there is no
over-stocking or under-stocking.
 It also ensures that production time is kept at optimum level and thereby increasing the
turnover time.
 Since it overlooks all aspects of production, quality of final product is always maintained.
Production Planning
Production planning is one part of production planning and control dealing with basic
concepts of what to produce, when to produce, how much to produce, etc. It involves taking a long-
term view at overall production planning. Therefore, objectives of production planning are as follows:
 To ensure right quantity and quality of raw material, equipment, etc. are available during
times of production.
 To ensure capacity utilization is in tune with forecast demand at all the time.
A well thought production planning ensures that overall production process is streamlined
providing following benefits:
 Organization can deliver a product in a timely and regular manner.
 Supplier are informed will in advance for the requirement of raw materials.
 It reduces investment in inventory.
 It reduces overall production cost by driving in efficiency.
Production planning takes care of two basic strategies’ product planning and process
planning.
Production planning is done at three different time dependent levels i.e. long-range planning
dealing with facility planning, capital investment, location planning, etc.; medium-range planning
deals with demand forecast and capacity planning and lastly short term planning dealing with day to
day operations.

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Production Control
Production control looks to utilize different type of control techniques to achieve optimum
performance out of the production system as to achieve overall production planning targets.
Therefore, objectives of production control are as follows:
 Regulate inventory management
 Organize the production schedules
 Optimum utilization of resources and production process
The advantages of robust production control are as follows:
 Ensure a smooth flow of all production processes
 Ensure production cost savings thereby improving the bottom line
 Control wastage of resources
 It maintains standard of quality through the production life cycle.
Production control cannot be same across all the organization. Production control is
dependent upon the following factors:
 Nature of production( job oriented, service oriented, etc.)
 Nature of operation
 Size of operation
Production planning and control are essential for customer delight and overall success of an
organization.
OBJECTIVES OF PRODUCTION PLANNING AND CONTROL:
The overall objectives of production planning and control are to:
 Optimize resources and the scheduling of resources to meet production demand
 Ensure an efficient schedule
 Have resources ready when needed
 Keep inventory at optimal levels
 Increase productivity of internal resources (people, work centers, machines, tooling, etc.)
 Improve customer satisfaction
 Ensure the right person gets assigned to specific processes
 Coordinate with other departments (sales, customer service, purchasing, etc.)
Production planning and control is the core of any manufacturing unit. It includes material
forecasting, master production scheduling, long-term planning, demand management, and more. The
planning process kicks off with demand forecasting of a product. Using that forecast data and the
internal resources available, the production plan is created.
Production planning and control is a strategy to plan a chain of operations that supports
manufacturers to be at the right place and time. It helps them achieve the most efficiency from their
resources. It also includes activities of other departments, such as sales, marketing, and procurement.
BENEFITS OF PRODUCTION PLANNING AND CONTROL:
Some of the many benefits to production planning and control include:
 Optimized manufacturing capacity – ensures machines and employees work to
capacity. That keeps costs down, increases efficiency, and provides greater profitability.
It helps to identify areas of improvement and to plan for growth.
 Reduced inventory costs – allows manufacturers to only hold the necessary inventory.
The software can predict demand and have a Just-in-Time scheduling strategy. Without a
surplus of inventory, costs are kept low.

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 On-time deliveries – helps to ensure production optimization and prompt deliveries.

Getting products to their destination on time improves customer satisfaction. That
increases customer retention and referrals.
 Better procurement of materials – shows when materials should get purchased for
production. Having this information helps to know when to order and what is needed to
meet customer and production demand. Knowing when to order lets procurement buy in
advance to find the best deal. This also helps to save money and improves relationships
with suppliers.
 Streamlined production processes – ensures that materials and internal resources for
production are ready when needed and shows what capacity is available, and when. This
keeps production running smoothly. It also helps employee satisfaction as it eliminates
frustration from interruptions in production and workflows.
 Minimal resource waste – eliminates material shortages or surpluses for less resource
waste. This lessens employee time wasted. Capital is not tied up in inventory that is not
used. There is less production waste because delays that cause discarded materials get
eliminated.
ROLE OF PRODUCTION PLANNING AND CONTROL IN MANUFACTURING:
Production planning and control ensures the resources for production are ready when needed.
Materials, equipment, and labor must be available at the right time to optimize production.
It is the central part of a manufacturing business. The larger a business gets, the more PPC
becomes essential for a smooth-running operation.

STEPS IN PRODUCTION PLANNING AND CONTROL:

1. Planning
Planning determines what will be produced, by whom, and how. It formulates the plan
for labor, equipment, work centers, and material requirements needed for production.
Relevant information from various sources helps to develop a production plan. For instance,
data from sales on order quantities and promised delivery dates. Product specifications from the
engineering department may also be needed. The planning step helps to keep a streamlined approach
to the production process.
2. Routing
Routing determines the path raw materials flow within the factory. Using the sequence,
raw materials are transformed into finished goods.
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Coordinating every production process and scheduling every step is important to measure the
production process duration. Routing shows the quantity and quality of materials and resources
needed. It also shows the operations used and the place of production.
Routing manages the “How”, “What”, “How much”, and “Where” of production. It systematizes the
process and optimizes resources for the best results.
3. Scheduling
Scheduling emphasizes “when” the operation will be completed. It aims to make the
most of the time given for the completion of the operation.
As per Kimball and Kimball, the definition of scheduling is –
“The determination of the time that should be required to perform the entire series as routed,
making allowance for all factors concerned.”
Organizations use different types of schedules to manage the time element. These
include Master Schedule, Operation Schedule, Daily Schedule, and more.
4. Loading
Loading looks into the amount of work loaded against machines or workers. The total
time to perform new work is added to the work already scheduled for the machine or
workstation.
If a machine or workstation has capacity available, more orders can make up the underload. If
there is a capacity overload, proactive measures can prevent bottlenecks. Adding a shift, requesting
overtime, bringing in operators from another shop, or using a sub-contractor are possible options.
5. Dispatching
Dispatching is the release of orders and their instructions. It follows the routing and
scheduling directions. This step ensures all items are in place for the employees to do their jobs.
Here are the points that are part of “Dispatching”:
 Issue materials or fixtures that are important for production
 Issue orders or drawings for initiating the work
 Maintain the records from start to finish
 Start the control procedure
 Cascade the work from one process to another
6. Follow-up
Also known as expediting, follow-up locates fault or defects, bottlenecks, and loopholes
in the production process. In this step, the team measures the actual performance from start
until the end and then compares it with the expected performance.
Areas that have problems, must get addressed. Follow-up gets to the root of the issue and
helps resolve it. For instance, if schedules are not met, is it from an unusual circumstance? Or is it
something that needs to get adjusted? The production manager may need to revise production targets,
loads, or schedules to correct the issue.
TYPES OF PRODUCTION PLANNING
1. Master production schedule
A Master production schedule is a plan that tells when the production will begin for what
products, at what time, and in what quantities. The purpose of a master production schedule is to
create a realistic plan to ensure on-time delivery of goods while minimizing overstock.
2. Materials requirement planning
Material requirement planning ensures availability of raw materials, maintains the lowest
possible stock level, promotes inventory control, and helps plan purchasing activities.

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3. Capacity planning
Capacity planning is the process of determining the production capacity needed by the
organization to meet customers’ orders and changing demand for the product. It aims to strike a
balance between expenses and resources as well as demand and supply.
4. Workflow planning
Workflow planning is planning a sequence of operations performed during the production
process. It allows you to track each item’s work and see who is responsible for the task and its
completion. In other words, workflow planning helps check the status of the task.
PRODUCTION PLANNING TOOLS
Manufacturers rely on multiple tools to prepare the production plan and track progress such as
charts, spreadsheets, or visualization software, etc. Instead of investing in multiple tools, a single ERP
solution can help you plan production and use production control strategies to ensure that the plant
floor is performing well and deliveries are on time.
Enterprise Resource Planning (ERP) software offers real-time visibility that helps decision-
makers understand variances, eliminate waste, ramp up production, and improve transparency within
the organization. ERP makes updating a job’s status easy as it can be done on mobile devices without
leaving the workstation.
BENEFITS OF ERP IN PRODUCTION PLANNING
Modern ERP ensures automated workflow which eliminates repetitive tasks such as data
entry. ERP helps manufacturers plan, execute, and control production while integrating these
operations into other business processes.
ERP has inbuilt Material Requirement Planning functionality which ensures minimum stock
and risk for holding extra inventory. It ensures efficient and streamlined manufacturing processes.
FORECASTING:
Forecasting refers to the practice of predicting what will happen in the future by taking into
consideration events in the past and present. Basically, it is a decision-making tool that helps
businesses cope with the impact of the future’s uncertainty by examining historical data and trends. It
is a planning tool that enables businesses to chart their next moves and create budgets that will
hopefully cover whatever uncertainties may occur.
Budgeting vs. Forecasting
Budgeting and forecasting are both tools that help businesses plan for their future. However,
the two are distinctly different in many ways:
 Budgeting involves creating financial statements for a specific period, such as
projected revenue, expenses, cash flow, and investments. It is usually conducted with input
from many different departments, because it requires input from multiple departments in
order to come up with a holistic and detailed report. Therefore, the budgeting process takes
time to complete. The company uses the budget to guide it in its financial activities. In other
words, a budget is a plan for a company’s future.
 While budgets are usually made for an entire year, forecasts are usually updated monthly or
quarterly. Through forecasting, a company can project where it’s going, and it may adjust its
budget and allocate more or less funds to an activity, depending on the forecast. In summary,
budgets depend on the forecast.
FORECASTING METHODS
Businesses choose between two basic methods when they want to predict what can possibly
happen in the future: qualitative and quantitative methods.
1. Qualitative method
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Otherwise known as the judgmental method, qualitative forecasting offers subjective results,
as it is comprised of personal judgments by experts or forecasters. Forecasts are often biased because
they are based on the expert’s knowledge, intuition and experience, making the process non-
mathematical.
One example is when a person forecasts the outcome of a finals game in the NBA based more
on personal motivation and interest. The weakness of such a method is that it can be inaccurate and
biased.
2. Quantitative method
The quantitative method of forecasting is a mathematical process, making it consistent and
objective. It steers away from basing the results on opinion and intuition, instead utilizing large
amounts of data and figures that are interpreted.
FEATURES OF FORECASTING
Here are some of the features of making a forecast:
1. Involves future events
Forecasts are created to predict the future, making them important for planning.
2. Based on past and present events
Forecasts are based on opinions, intuition, guesses, as well as on facts, figures, and other
relevant data. All of the factors that go into creating a forecast reflect some extent what happened with
the business in the past and what is considered likely to occur in the future.
3. Uses forecasting techniques
Most businesses use the quantitative method, particularly in planning and budgeting.
THE PROCESS OF FORECASTING
Forecasters need to follow a careful process in order to yield accurate results. Here are some
steps in the process:
1. Develop the basis of forecasting
The first step in the process is investigating the company’s condition and identifying where
the business is currently positioned in the market.
2. Estimate the future operations of the business
Based on the investigation conducted during the first step, the second part of forecasting
involves estimating the future conditions of the industry where the business operates and projecting
and analyzing how the company will fare in the future.
3. Regulate the forecast
This involves looking at different forecasts in the past and comparing them with what actually
happened with the business. The differences in previous results and current forecasts are analyzed,
and the reasons for the deviations are considered.
4. Review the process
Every step is checked, and refinements and modifications are made.
SOURCES OF DATA FOR FORECASTING
1. Primary sources
Information from primary sources takes time to gather because it is first-hand information,
also considered the most reliable and trustworthy sort of information. The forecaster does the
collection, and may do so through things such as interviews, questionnaires, and focus groups.
2. Secondary sources
Secondary sources supply information that has been collected and published by other entities.
An example of this type of information might be industry reports. As this information has already
been compiled and analyzed, it makes the process quicker.
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QUALITATIVE FORECASTING AND QUANTITATIVE FORECASTING TECHNIQUES:

Most businesses aim to predict future events so they can set goals and establish plans.
Quantitative and qualitative forecasting are two major methods organizations use to develop
predictions. Understanding how these two types of forecasting vary can help you decide when to use
each one to develop reliable projections. In this article, we define quantitative forecasting and
qualitative forecasting and share the pros and cons of each method.
What is quantitative forecasting?
Quantitative forecasting is the act of making business predictions using exact numbers. For
example, a theme park manager might predict ticket sales during a holiday weekend by examining
data from that weekend over the past five years. When evaluating information for quantitative
forecasting, you can weigh recent data more heavily for a more accurate depiction of future trends.
Here are some common types of quantitative forecasting:
 Naive method: Businesses review historical data and assume future behavior will reflect past
behavior.
 Straight-line method: Businesses evaluate recent growth and predict how growth might
continue influencing data.
 Seasonal index: Businesses analyze historical data to find seasonal patterns.
 Moving average method: Businesses determine averages over a large time period.
Pros and cons of quantitative forecasting
Below are some of the advantages and disadvantages of quantitative forecasting.
Pros of quantitative forecasting
Here's a list of pros of quantitative forecasting:
Offers comprehensive projections
Quantitative forecasting accounts for all relevant information, even data points that might
appear confusing or unfavorable. Unlike qualitative forecasting, quantitative forecasting is objective
and honors history without explaining away unexpected spikes or drops in metrics. This can help you
understand and prepare for both best-case and worst-case scenarios in the future.
Utilizes technology
Technological tools like spreadsheets and software can help organize and interpret your data
for you during quantitative forecasting. These tools can make it simple and fast to perform
quantitative forecasting, and they might empower you to draw more advanced conclusions. For
example, you can connect software to your point-of-sale system with which it may automate forecasts
and estimate staffing and inventory needs.
Identifies patterns
Quantitative forecasting uses statistics to recognize patterns in sales, demand, consumer
behavior and expenses. These patterns might inform your business strategy, help you set performance
standards and equip you to analyze and mitigate risk. For example, quantitative reports might reveal
an increase in workplace accidents during the winter months. To protect your team, you might adjust
hours so they work only during daylight and repair weather-damaged equipment.
May impress external stakeholders
Concrete numbers might serve as stronger support when you're trying to attract external
stakeholders like investors, clients or the press. This data can serve as unalienable proof of your
product's success. Because these individuals are outside of the organization and may not have a
personal connection to your narrative, objective numerical figures might influence them more readily
than moods, perceptions and opinions.
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Ensures accuracy
Quantitative forecasting relies on facts, so it presents a lower risk of false or inflated
information. For example, if you're evaluating employee performance to determine next year's
productivity goals, you might supplement personal surveys with delivery reports. Personal surveys
might indicate how an employee feels about their productivity, but quantitative data from delivery
reports might counteract personal bias with numerical data that can verify or contradict their claims.
Cons of quantitative forecasting
Here are some of the cons of quantitative forecasting:
Might lack detail
Quantitative forecasting offers simple models of potential scenarios, but these projections
typically have limits. They only account for data that's available at the time of reporting, so they might
operate from a small sample size. To present more comprehensive quantitative forecasts, aim to
include as much history as you can and weigh more relevant data to increase accuracy.

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May be difficult to interpret

Because these forecasts only reflect numerical outcomes, it might be challenging to
extrapolate meaning from them. Quantitative forecasts explain what happened, but they don't account
for context or intuition. To fully understand historical data, it might be beneficial to pair quantitative
forecasting with qualitative forecasting. The insights from each process might inform each other and
serve as a more holistic guide for your decision-making.
Can be costly
Quantitative forecasting can be an expensive process. Many businesses employ a large staff to
collect, organize and analyze numerical data. If you want an in-depth analysis backed by research,
you might accrue high overhead costs. You can reduce your expenses by simplifying your forecasts
and using software to automate your processes.
What is qualitative forecasting?
Qualitative forecasting is the act of predicting business activity and consumer behavior using
emotions, ideas and judgments instead of numbers. These opinions might come from industry experts,
executives, staff members or consumers. Some popular methods of qualitative forecasting include:
 The Delphi method: Experts share their projections in a panel discussion.
 Executive opinions: Upper management uses intuition to make decisions.
 Internal polling: Customer-facing employees share insights about customers.
 Market research: Customers report their preferences and answer questions
Pros and cons of qualitative forecasting
Here are some of the pros and cons of qualitative forecasting:
Pros of qualitative forecasting
Predicts consumer behavior
Because thoughts and feelings often motivate consumer behavior, qualitative forecasting
might offer you a better understanding of sales patterns. Qualitative forecasting often relies on
anecdotal evidence from history to predict future events. For example, if there's typically a correlation
between low unemployment rates and heightened consumer spending in the holiday season, retailers
might use this data to predict their upcoming holiday sales.
Allows for interpretation
Qualitative forecasting encourages researchers to apply their own judgment to the data
available to them. This might help you reach clearer conclusions and apply insights to your work
more directly. You might contextualize your predictions using information about your industry and
competitors. The flexibility this method grants you might result in more innovative ideas, as you're
not bound by numerical data.
Supplements incomplete data
If you have unavailable or inexistent data, you can use qualitative forecasting to inform your
decisions. This might be helpful if you're working on new technology or entering an untapped market.
For example, you might use focus groups or surveys to study how consumers react to new products or
ideas. Qualitative forecasting can help you present your ideas to stakeholders earlier to seek funding,
support and social proof.

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Offers a comprehensive understanding

Qualitative data can communicate concepts that numbers don't capture. Quantitative analysis
might reveal a change in sales last year, but qualitative forecasting might reveal why. This context
might better inform your business decisions and strengthen your understanding of market behavior.
For example, a production company might use qualitative forecasting to reveal that consumers want
optimistic entertainment that puts them in a good mood. This can supplement quantitative data that
shows a decrease in viewers on drama and horror programming.
Can be accessible
Qualitative forecasting can be accessible and inexpensive to perform because of its flexible
definition. For example, a brainstorming session with executives and stakeholders can result in a
qualitative forecast. You can also poll your customer-facing employees to develop predictions
because these professionals interact the most directly with customers and might have insights about
their needs. Compared to quantitative forecasting, qualitative forecasting can be an economical
solution.
Cons of qualitative forecasting
Here are some of the drawbacks of qualitative forecasting:
Can invite personal bias
It might be challenging to remove existing interests and emotions from your evaluation of
qualitative data. Many professionals experience selective perception, a psychological behavior where
a person neglects information that complicates their current expectations. For example, if a qualitative
forecast predicting next year's productivity levels at a manufacturing plant ignores a recent change in
one employee's availability, the forecast might be overly ambitious. As a result, the manager might set
unrealistic goals. To minimize bias, involve many perspectives and supplement your qualitative
forecasting with quantitative reports that can verify your expectations.
Heightens the risk of error
Because qualitative forecasting can be subjective, human error is possible. This data often
relies on the opinions of industry experts, and these professionals might be studying new ideas or
developing their theories in real time. Because of this, it's possible that qualitative forecasts might be
inaccurate occasionally. To mitigate this risk, choose experts carefully and aim to perform your own
supplemental research to check the accuracy of any assumptions.
Can be vulnerable to unexpected circumstances
Unforeseen events can render qualitative data useless. Variables like weather, economic status
and governmental activity are always in flux, and sudden changes to these circumstances might
influence the accuracy of qualitative forecasting. To ensure your predictions account for present
circumstances, keep in contact with experts to gather updated opinions and develop quick solutions
like digital polls in response to changes.
TYPES OF PRODUCTION:
The different types of production businesses can implement depending on their product and
organizational needs include: The types of production processes businesses can use typically depend
on their product requirements and organizational needs, including:
Mass production
In mass production, employees generally work on producing identical items in a continuous
process. Team members are often assigned to different workstations, with each station focusing on a
specific material or component of the product.As the product moves through the line, it gradually
becomes complete. By the time it reaches the final station, the product becomes fully assembled and
ready for delivery. This method allows multiple parts of the product to be worked on simultaneously,
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increasing efficiency and overall productivity.Related: The Different Types of Manufacturing

Environments and Jobs
Craft production
Craft production is typically used for products that require personal attention and detail to
ensure a high-quality result. Companies often use this method when fulfilling customized orders,
where customers request specific colors, shapes, patterns, or personalized text as part of the design.
This approach ensures that each product meets the unique preferences and expectations of the
customer.Related: 7 Steps of the Design Process
Batch production
Organizations often use batch production when they need to produce multiple groups of items
at once. In this process, employees focus on completing different sections of each group in
stages.Unlike mass production, where one product is made continuously, batch production involves
creating various products in separate groups, or batches. Each batch goes through the production
process, allowing for the efficient manufacturing of multiple products simultaneously.
Job production
When producing lower-demand products, organizations typically employ a job production
process. This method focuses on creating a single item at a time, rather than dividing the work into
groups that tackle different components of the product.Since these products are ordered less
frequently, employees may temporarily step away from their mass production tasks to complete the
entire automated process for this unique item before resuming their regular duties. Job production is
generally reserved for items with significantly low demand or those that offer unique features for
consumers.
Service production
Service production involves automating services to enhance customer experience. Businesses
can offer personalized assistance through machines that enable customers to press buttons for help
and receive immediate support.Another method of service production is technical support. If
customers encounter issues with a technical product and require additional guidance, they can quickly
access resources and materials to address their questions, even when the support team is unavailable.
Mass customization
Mass customization involves a mass production line that creates products tailored to meet
individual consumer needs. Customers have the option to choose from various customization features,
such as colors, shapes, or patterns. When specific options are selected, the mass customization process
automates the production of each unique item.For example, many clothing and merchandise retailers
utilize this method to produce apparel and accessories based on customers' measurements or color
preferences to create a personalized shopping experience.

PROCESS PLANNING
Process planning is a preparatory step in manufacturing that determines the order of
operations to produce a product or part. It's an important step in product development, especially for
one-of-a-kind products or products that are made infrequently.
PURPOSE OF PROCESS PLANNING
The purpose of process planning is to determine and describe the best process for each job so
that:
1. Specific requirements are established for which machines, tools, and other equipment can
be designed or purchased.
2. The effort of all engaged in manufacturing are coordinated.
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3. A guide is furnished to show the best way to use the existing or proposed facilities. Process
planning is intermediate stage between design and manufacturing.
PROCEDURE OF PROCESS PLANNING:
To achieve the aim of economic manufacture of the product, process planning is done as
follows:
1. The finished product is broken into sub-assemblies and individual components from
manufacturing point of view.
2. Prepare a bill of materials for all components of the product which forms a basis for
purchase of raw materials.
3. Decide which parts are to be manufactured in the plant and which parts are to be purchased
from the market depending upon the facilities available in the plant.
4. Choose the appropriate blank size and select the most economical process to be followed to
manufacture components of the product. This is done by comparing the various possible methods of
obtaining the final product.
5. Decide the sequence of operations to be performed on each component in the process sheet.
6. Depending upon the accuracies called for by the drawings, determine the machine tools to
do the operations.
7. Determine the need for any special equipment like jigs, fixtures, tools etc.
8. Determine the inspection stages and the instruments required and the need for designing
any inspection devices.
9. Estimate the standard time for performing the job.
10. Determine the type of labour (skilled, semi-skilled or unskilled) required to do the job.
STEPS IN PROCESS PLANNING:
As planning is an activity, there are certain reasonable measures for every manager to follow:
(1) Setting Objectives
 This is the primary step in the process of planning which specifies the objective of an
organisation, i.e. what an organisation wants to achieve.
 The planning process begins with the setting of objectives.
 Objectives are end results which the management wants to achieve by its operations.
 Objectives are specific and are measurable in terms of units.
 Objectives are set for the organisation as a whole for all departments, and then departments
set their own objectives within the framework of organisational objectives.
Example:
A mobile phone company sets the objective to sell 2,00,000 units next year, which is double the
current sales.

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(2) Developing Planning Premises

 Planning is essentially focused on the future, and there are certain events which are expected
to affect the policy formation.
 Such events are external in nature and affect the planning adversely if ignored.
 Their understanding and fair assessment are necessary for effective planning.
 Such events are the assumptions on the basis of which plans are drawn and are known as
planning premises.
Example:
The mobile phone company has set the objective of 2,00,000 units sale on the basis of forecast done
on the premises of favourable Government policies towards digitisation of transactions.
(3) Identifying Alternative Courses of Action
 Once objectives are set, assumptions are made.
 Then the next step is to act upon them.
 There may be many ways to act and achieve objectives.
 All the alternative courses of action should be identified.
Example:
The mobile company has many alternatives like reducing price, increasing advertising and
promotion, after sale service etc.
(4) Evaluating Alternative Course of Action
 In this step, the positive and negative aspects of each alternative need to be evaluated in the
light of objectives to be achieved.
 Every alternative is evaluated in terms of lower cost, lower risks, and higher returns, within
the planning premises and within the availability of capital.
Example:
The mobile phone company will evaluate all the alternatives and check its pros and cons.
(5) Selecting One Best Alternative
 The best plan, which is the most profitable plan and with minimum negative effects, is
adopted and implemented.
 In such cases, the manager’s experience and judgement play an important role in selecting the
best alternative.
Example:
Mobile phone company selects more T.V advertisements and online marketing with great after sales
service.
(6) Implementing the Plan
 This is the step where other managerial functions come into the picture.
 This step is concerned with “DOING WHAT IS REQUIRED”.
 In this step, managers communicate the plan to the employees clearly to help convert the
plans into action.
 This step involves allocating the resources, organising for labour and purchase of machinery.
Example:
Mobile phone company hires salesmen on a large scale, creates T.V advertisement, starts online
marketing activities and sets up service workshops.
(7) Follow Up Action
 Monitoring the plan constantly and taking feedback at regular intervals is called follow-up.
 Monitoring of plans is very important to ensure that the plans are being implemented
according to the schedule.
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 Regular checks and comparisons of the results with set standards are done to ensure that
objectives are achieved.
Example:
A proper feedback mechanism was developed by the mobile phone company throughout its branches
so that the actual customer response, revenue collection, employee response, etc. could be known.
ECONOMIC BATCH QUANTITY:
Economic Batch Quantity (EBQ) is a concept of inventory management. It is the optimum
quantity of items that should be ordered at one time to minimize the total cost of inventory. It is also
known as the optimal order quantity.
Calculation of Economic Batch Quantity:
EBQ can be calculated by using the following formula:
EBQ = √(2DS/H)
Where,
D = Annual demand for the item
S = Setup cost per order
H = Holding cost per unit per year
Importance of Economic Batch Quantity:
1. Cost Reduction: The primary objective of EBQ is to minimize the total cost of inventory.
By ordering the optimum quantity of items, a business can reduce the cost of ordering and
holding inventory.
2. Efficient Use of Resources: By ordering the right amount of inventory, a business can
ensure that its resources are being used efficiently. This can help to reduce waste and increase
productivity.
3. Improved Customer Service: By maintaining the right level of inventory, a business can
ensure that it always has the products its customers want. This can help to improve customer
satisfaction and loyalty.
Factors Influencing Economic Batch Quantity:
The following factors can influence the EBQ:
1. Demand for the Product: Higher demand for the product means that a larger quantity
should be ordered to meet the demand.
2. Setup Cost: Higher setup cost means that a smaller quantity should be ordered to reduce the
cost of ordering.
3. Holding Cost: Higher holding cost means that a smaller quantity should be ordered to
reduce the cost of holding inventory.
4. Lead Time: Longer lead time means that a larger quantity should be ordered to ensure that
the business does not run out of inventory.
5. Availability of Storage Space: Limited storage space means that a smaller quantity should
be ordered to ensure that the inventory can be stored properly.
FACTORS AFFECTING THE ECONOMIC BATCH SIZE
Given below are the factors that affect the economic batch size:
1. Usage Rate
The rate at which production is done should match with the rate at which these parts are used
and assembled in the line.
2. Manufacturing cost

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The higher the batch size, its per unit cost will be lower. Set-up costs like machine, paperwork
will be lower. But the carrying costs like- handling of goods, storage will increase with the increase in
batch size.
3. Cost of Obsolescence
The higher the size of the lot, higher will be the possibility of deterioration or obsolescence.
Deterioration is related to the shelf life. Whereas change in technology or no-demand or even
outdated products are related to obsolescence.
Before we take the decision of producing in lots, we have to check the availability of raw
materials as well as the production capacity of the plant. Whatever quantity is the economic lot size
needs to be verified properly.
Economic Order Quantity vs Economic Batch Quantity
Multiple terms are used in relation to optimum quantity production like Economic Batch
Quantity, Economic Order Quantity or Economic Manufacturing Quantity. People often get confused
as to which term is relevant.
Economic Order Quantity (EOQ) is used to calculate the optimum size when goods, parts and
finished goods have to be delivered to an external supplier or outsourced when an order is placed.
However, Economic Batch Quantity (EBQ) is used to find out the batch size for a production run
when manufacturing is internal.
As said by Charles T. Horngren- “EBQ is an inventory-related equation that determines the
optimum order quantity that a company should hold in its inventory given a set cost of production,
demand rate, and other variables.”
Both EOQ and EBQ are similar in the sense that we calculate the size of the optimum
quantity. Economic Batch Quantity is an example of a technique used to control costs of materials as
well as cost of production.
In Economic Batch Quantity, 2 basic laws are applied. One is the Law of Economies of Scale
and the other one is the Law of Increasing Returns. It is common sense, that when we produce more
the overall costs decrease and profits increase.

Importance of Economic Batch Quantity

Determination of Economic Batch Quantity has its own merits. Some of them are given below.
1. It makes sure that the goods produced meet the level of demand of goods in the market.
2. It will also help to maintain and reduce the quantity of output in inventory.
3. It also helps to minimize the machine set-up/get-up time.
4. The size of the optimum lot also helps to reduce the machine costs.
5. It will also minimize the clerical costs.
6. It also gives manufacturing units the advantage of economies of scale.
Graphical Representation of Economic Batch Quantity
Economic Batch Quantity (EBQ) can be graphically represented as:

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Graphical Representation of EBQ

From the graph above it can be seen that there is a batch size at which the total costs are at a
minimum. At this point the total setup cost and the total holding cost are equal.
The Total cost or the total product cost includes the cost of material, labor and expenses. The
formula to calculate the total product cost is:
TC= Unit Product Cost* Demand
We assume that the demand remains constant therefore the total cost also remains constant.
This is why the Total Cost is not relevant when we calculate the Economic Batch Quantity. In the
graph, you can see a dotted line representing the Total Cost.
Cost(a) in the graph represents the Holding Costs. In order to calculate the Holding Costs we
multiply the Average units kept in the warehouse with the cost per holding of the unit.
Cost(a)= Holding cost p.u*Average Inventory
We assumed that the demand remains constant. Therefore, the inventory levels rise from 0
and end with the quantity of batch size every time a batch is produced. So, in order to calculate the
average inventory levels we use the given formula.
Average Inventory Level= Batch Size/2
Now we can rewrite the formula of Total Holding Costs as:
Total Holding Costs= Holding Cost p.u * Batch size/2
Cost(b) in the graph represents the Set-Up Costs. Just like holding costs, Set-Up costs are calculated
by multiplying the Set-Up cost per Batch with the Number of batches produced.
Total Set-up Costs= Set-up cost p.b * Number of Batches
We have assumed that demand is constant therefore, the number of batches produced will be
calculated as:
Number of batched produced= Total Annual Demand/ Size of 1 batch
We can rewrite the formula of Total Set-up costs as:
Total Set-Up Costs= Set-up cost p.b * Total Annual Demand/Size of 1 Batch
Now when we see the graph we can pinpoint the EBQ as the intersection of Holding costs and
Set-Up costs. Both these move in opposite directions. The reason being:
Set-Up costs will be lower when we produce more batches and holding costs increase when
more batches are produced. Therefore, they both go in the opposite directions.

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At Economic Batch Quantity, both the holding costs and set up costs are equal. In other
words, we can say that- The point where holding costs and set-up costs are the same, will be the
Economic Batch Quantity.
Formula of Economic Batch Quantity
The formula to calculate the Economic Batch Quantity is:
Economic Batch Quantity(EBQ)=2AO/C
Where,
A= Annual Demand
C= Carrying Cost, it includes storage costs, obsolescence of inventory, interest costs and
depreciation.
O= Ordering or the setting up cost, it includes the cost of installing and setting up machinery
for manufacturing.
2 remains constant in the formula.
Example of Economic Batch Quantity
ABC Ltd. company has to fulfill the demand of 10,000 kits a day. It produces 12,500 kits at
once when production is done. The holding costs of kits is $1. Whereas the Set-up cost is $200. You
need to find how frequently the runs have to be made.
Using the formula,
Economic Batch Quantity(EBQ)=2AO/C
We can substitute the values as follows:
EBQ= (210,000200)/0.01
The answer comes out to be 20,000 units. It means ABC Ltd. has to make 20,000 kits in a
single run. Now in order to find out the frequency, we divide the batch size with the total demand of
the kits.
I.e. 20,000/10,000, which is equal to 2 days. It means, production has to be done every 2 days
Producing in batches has its own merits. The costs are based on the batches we produce. The
size of batches can vary and so will the cost. In order to find out the point where we incur minimum
costs we use the technique of Economic Batch Quantity.
Therefore, Economic Batch Quantity is an important tool both cost wise and production wise.
LOADING
A load means the quantity of work, and allocating the quantity of work to the processes
necessary to manufacture each item is called loading.
It is performed in the CRP (Capacity Requirements Planning) of the manufacturing planning.
Each item planned in MRP is first explored to the processes necessary to manufacture it, which is
usually called process explosion. Next loading is performed for the explored process.
In loading, each load is usually piled up by time (hour), by which a setup time and a real
operating time are determined. The real operating time may be set by manufacturing lot or by real
operating time per item unit.
In the former case, the time of hour is piled up as load, while in the latter case, loading is
performed after calculating the real operating time per manufacturing unit by multiplying the number
of manufacturing items by real operating time.
In addition, the calculated load is piled up for a certain period, which is determined by
selecting either the earliest start date or the last start date as a base date. This method enables loading
for each process or each period

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Loading and Sequencing

Loading refers to the assignment of jobs to processing (work) centers and to various machines in the
work centers. Problems arise when two or more jobs are to be processed and there are a number of
work centers capable of performing the required work. Managers often seek an arrangement that will
minimize processing and setup costs, minimize idle time among work centers, or minimize job
completion time.
Loading involves specific tasks being allocated to specific teams, individuals, or facilities. Once there
is adequate capacity, loading is used to assign each worker the task they can perform best. In the case
of a machine or a facility, loading is used to assign the process to the one that can carry it out most
efficiently.
There are two approaches used to load work centers:
 infinite – The infinite loading method assigns work to work centers without that center’s
capacity being taken into account. With the infinite loading approach, priority rules are
suitable. This means that jobs are loaded at work centers according to the predefined priority
rule. This approach is known as vertical loading. If an organization has limited capacity and
uses infinite loading, it may have to increase capacity through overtime, subcontracting, or
expansion.
 finite – With finite loading, the start and stop time of each job at the work center is projected.
Gantt Chart
Gantt charts are used as visual aid for loading and scheduling purposes. The name was derived from
Henry Gantt in the early 1900s. The purpose of Gantt charts is to organize and clarify the actual or
intended use of resources in a time framework. In most cases, a time scale is represented horizontally,
and resources to be scheduled are listed vertically. The use of resources is reflected in the body of the
chart.

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There are a number of different types of Gantt charts. Two of the most commonly used are the load
chart and the schedule chart.
Load Chart
A load chart depicts the loading and idle times for a group of machines or a list of departments. The
chart shows when certain jobs are scheduled to start and finish, and where to expect idle time. If all
centers perform the same kind of work, the manager might want to free one center for a long job or a
rush order.

Two different approaches are used to load work centers, infinite loading and finite loading. Infinite
loading assign jobs to work centers without regard to the capacity of the work center. One possible
result of infinite loading is the formation of queues in some work centers. Finite loading projects
actual job starting and stopping times at each work center, taking into account the capacities of each
work center and the processing times of jobs, so that capacity is not exceeded. Schedules based on
finite loading may have to be updated often, perhaps daily, due to processing delays at work centers
and the addition of new jobs or cancellation of current jobs. The following diagram illustrates these
two approaches.

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Loading can be done in various ways. Vertical loading refers to loading jobs at a work center job by
job, usually according to some priority criterion. Vertical loading does not consider the work center’s
capacity (i.e., infinite loading). With vertical loading, a manager may need to make some response to
overloaded work centers. Among the possible responses are shifting work to other periods or other
centers, working overtime, or contracting out a portion of the work. In contrast, horizontal loading
involves loading the job that has the highest priority on all work centers it will require, then the job
with the next highest priority, and so on. Horizontal loading is based on finite loading.
One possible result of horizontal loading is keeping jobs waiting at a work center even though the
center is idle, so the center will be ready to process a higher priority job that is expected to arrive
shortly. That would not happen with vertical loading; the work center would be fully loaded, although
a higher priority job would have to wait if it arrived while the work center was busy. So, the
horizontal loading takes a more global approach to scheduling, while vertical loading uses a local
approach.
Which approach is better? That depends on various factors: the relative costs of keeping higher
priority jobs waiting, the cost of having work centers idle, the number of jobs, the number of work
centers, the potential for processing disruptions, the potential for new jobs and job cancellations, and
so on.
Schedule Chart
There are two general approaches to scheduling: forward scheduling and backward scheduling.
Forward scheduling means scheduling ahead from a point in time; backward scheduling means
scheduling backward from a due date. Forward scheduling is used if the issue is “How long will it
take to complete this job?” Backward scheduling would be used if the issue is ” When is the latest job
can be started and still be completed by the due date?” A manager often uses a schedule chart to
monitor the progress of jobs. A typical schedule chart is illustrated below for a landscaping job.

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The chart shows planned and actual starting and finishing times for the five stages of the job. The
chart indicates that approval and ordering of trees and shrubs was on schedule. The site preparation
was a little behind schedule The trees were received earlier than expected, and planting is ahead of
schedule. However, the shrubs have not yet been received. The chart indicates some slack between
scheduled receipt of shrubs and shrub planting, so if the shrubs arrive by the end of the week, it
appears the schedule can still be met.
The Gantt charts possess certain limitations. The chief one is the need to repeatedly update a chart to
keep it current. In addition, a chart does not directly reveal costs associated with alternative loading.
Finally, a job’s processing time may vary depending on the work center; certain work stations or work
centers may be capable of processing some jobs faster than other stations.
Input / Output Control
Input / output (I/O) control refers to monitoring the work flow and queue length at work centers. The
purpose is to manage work flow so that queues and waiting times are kept under control. A simple
example of I/O control is the use of stoplights on some expressway on ramps. These regulate the flow
of entering traffic according to the current volume of expressway traffic. The following figure
illustrates an input / output report for a work center. The deviation in each period are determined by
subtracting “planned” from “actual”. The backlog for each period is determined by subtracting the
“actual output” from the “actual input” and adjusting the backlog from the previous period by that
amount.

Assignment Method of Linear Programming

The following table illustrates a typical problem, where four jobs are to be assigned to four machines

The numbers in the body of the table represent the value or cost associated with each job machine
combination. In this case, the numbers represent costs. If the problem involved minimizing the cost
for job 1 alone, it would clearly be assigned to machine C. For n machines, there are n! different
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possibilities. For 12 jobs, there would be 479 million different matches! A simple solution method for
one-to-one matching is called the Hungarian method to identify the lowest-cost solution. The method
assumes that every machine is capable of handling every job, and that the costs or values associated
with each assignment combination are known and fixed. When profits instead of costs are involved,
the profits can be converted into relative costs by subtracting every number in the table from the
largest number and then processing as in a minimization problem. In addition, specific combinations
can be avoided by assigning a relatively high cost to that combination. The basic procedure of the
Hungarian method is:
 Row reduction: Subtract the smallest number in each row from every number in the row.
 Column reduction: Subtract the smallest number in each column of the new table from every
number in the column.
 Test whether an optimum assignment can be made by determining the minimum number of
lines (horizontal or vertical) needed to cross out all zeros. If the number of lines equals the
number of rows, an optimum assignment is possible. In that case, go to step 6. Otherwise, go
on to step 4.
 If the number of lines is less than the number of rows, modify the table in this way:
 Subtract the smallest uncovered number from every uncovered number in the table.
 Add the smallest uncovered number to the numbers at intersections of cross-out lines.
 Numbers crossed out but not at intersections of cross-out lines carry over unchanged to the
next table.
 Repeat steps 3 and 4 until an optimal table is obtained.
 Make the assignments. Begin with rows and columns with only one zero. Match items that
have zeros, using only one match for each row and each column. Eliminate both the row and
the column after the match.
Example
Determine the optimum assignment of jobs to machines for the following data.

Solution
Subtract the smallest number in each row from every number in the row, and enter the result in a new
table. The result of this row reduction is

Subtract the smallest number in each column from every number in the column, and enter the results
in a new table. The result of this column reduction is

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Determine the minimum number of lines (in green background) needed to cross out all zeros. (Try to
cross out as many zeros as possible when drawing lines.)

Since only three lines are needed to cross out all zeros and the table has four rows, this is not the
optimum. Subtract the smallest value that hasn’t been crossed out (in this case, 1) from every number
that hasn’t been crossed out, and add it to numbers that are at the intersections of covering lines. The
results are

Determine the minimum number of lines needed to cross out all zeros (four). Since this equals the
number of rows, you can make the optimum assignment.

Make assignments: Start with rows and columns with only one zero. Match jobs with machines that
have a zero cost.

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SCHEDULING:
Scheduling may be defined as the process of arranging the work associated with the
manufacturing process with a view to
(i) Having the optimum output, and
(ii) Keeping a control over the entire process.
As part of this process, the work is assigned to the plant with appropriate time-frame for each
operation and the sequence in which they need be carried out. Backward as well as forward
scheduling is used by the manufacturers to
(i) allocate plant and machinery resources,
(ii) plan human resources, and
(iii) plan production processes and purchase material.
Scheduling provides short-term production planning, which may be as short as on daily basis
or weekly basis. Such short-term planning is not warranted in the continuous production system or the
mass production system (assembly lines) or large batch production.
Scheduling consists of the following steps :
 Assignment of the quality and rate of output, specific to a plant or a department.
 Stipulation of time-frame in respect of each operation and the sequence thereof. Beginning
and completion of each operation is prescribed along with the order in which they have to
take place.

Scheduling would emerge as following from the above definition :

 Stipulation in respect of place, time and the order in which each operation necessary to
manufacture a product needs to be performed.
 Prescribing the timings of the beginning and completion of each operation involved in the
process.

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Definition of Scheduling
According to Kimball and Kimball :
"The determination of time that is required to perform each operation and also the time required to
perform the entire series as routed is scheduling".
According to James L. Lundy :
"Work schedulibg consists of the assignment of starting and completion time for the various
operations to be performed".
According to Spriegal and Lansburgh :
"Scheduling involves establishing the amount of work to be done and the time when each element of
work will start or order of work".
Functions of Scheduling
The functions of scheduling basically include dealing with the problems related to the production
process. They may be summarized as follows :
1) Assignment :
Allocation of orders or jobs amongst various work centres.
2) Sequencing :
Stipulating the specific sequencing of various operations, which are required to be. performed at a
specific work-centre.
3) Dispatching :
Ensuring the beginning of the work at various work centres.
4) Monitoring and Controlling :
The progress of the work assigned to various work-centres needs to be monitored on an ongoing basis,
and wherever required, necessary adjustments in the schedules are made.

Objectives of Scheduling
The objectives of scheduling may be summarized as follows :
1) Customer Satisfaction :
The prime objective of the scheduling is customer service. The date of completion of a job is
determined through the scheduling, which in turn put pressure on all the operative heads ensure
adherence with the pre-decided time-frame in respect of each step involved in the process. The result
is timely finished product in hand, ready for delivery to the customer. Elevation in the customer
satisfaction level leads to an improvement in the manufacturer's image, followed by a series of orders
from the old as well as new customers.
2) Optimization of Cost :
Pre-mature or delayed completion of any job by a manufacturer may prove to be costly for it,
in view of the following :
 If a job is completed by a manufacture before the scheduled date (pre-mature completion), the
inventory of finished goods or work-in-progress (WIP) stands at a higher level. The result is
obvious more wastage and higher cost.
 Any delay in completion of a job by a manufacturer is likely to lead, idling of machines, which
are required to wait for next activity in the transformation process. This waiting period acts
against the optimum utilization men and machines, and as such proves to be costly for the
organization.
3) Increase in Efficiency :
It is a well-established fact that a remarkable improvement is brought about the shop-floor
people in the schedule finalized by the planning department of any organization. This comes naturally
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as a result of the expertise, knowledge and experience of the shop-floor people. Therefore, the overall
efficiency of the shop-floor, credit also needs to be given to the scheduling (in addition to the people).
The efficiency may further be enhanced by grouping together the orders with identical components,
requirements, activities and set-ups.
4) Reduced Variances in the Transformation Process:
During operation of plant, the transformation process is subjected to a number of variations.
However, this is smoothed through the process of scheduling of operations and activities, especially if
one work centre is overloaded and congested due to disproportionate work. Scheduling acts as an
equalizer, by raising the levels of orders allocated to comparatively idle work centres to keep them
busy while decreasing the workflow: to the overloaded work centres. Detailed scheduling is the
solution for both the extreme cases, viz. problems of heavy workload at one work-centre, and
insufficient workload at other work centre, due to idle machines.
5) Employee Focus in Scheduling :
In scheduling. the role played by the company's employees is a significant one. Their
competence and expertise can ensure the timely completion of any job. At times, specific scheduling
is required to be chalked out in respect of individual employees; the extent of this may be gauged
from the fact that non-availability of a key employee, having an expertise in a particular field, may
lead to the re-schedule of the job by the scheduler. In this regard, experience of an employee is of
paramount importance, as the availability an out of experienced employee may ensure sorting out any
unforeseen problem. In view of the above, it would not be an exaggeration if a statement is made that
the success or failure of a schedule largely depends on the skills and experience of the manufacturer's
employees.
Types of Scheduling
The scheduling pattern is not uniform in all the cases, it is job specific. In other words, it
varies from job to job, as is evident from the following facts :
1) Production Schedule :
Production scheduling is chalked out with a view to ensuring that the amount of work is
conveniently carried out by the plants, machinery, equipment, etc. without any outside intervention.
While taking decision in this regard, following points need to be taken into consideration :
 Type of the available facilities in the plant, which are necessary for the processing of the
scheduling material.
 Individuals or workers with requisite expertise and experience for undertaking the work involved,
which includes operating the machinery, equipment etc.
 Various required materials & purchased parts.

2) Master Schedule :
Preparation of the master schedule is the first step in the scheduling exercise. Master schedule
involves breaking down of the weekly or monthly requirement in respect of each product for a certain
time-frame. This running record of the total production requirements enables the manufacturer to
change the production exercise from one product to another according to the changed production
requirements. Master schedule is the basis of a all the successive scheduling activities. Master
schedule is invariably followed by what is referred to as the operator schedule, which (i) stipulates the
requirement of the total time for performing a job using a particular machine or (ii) shows the
requirement of the total time for carrying out each operation of a specific job with a specific machine
or process.
3) Manufacturing Schedule :
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Preparation of manufacturing schedule depends upon the nature /pattern of manufacturing

process Manufacturing schedule is of extreme use in the cases, where the production of a single or
few products takes place in a repetitive manner on a regular basis. It shows the necessary quality of
order and each product in which the same needs to be operated.
4) Parts Scheduling :
Parts scheduling provides the information with regard to the number of units required to be
produced in respect of various parts of a product. It is prepared on the basis of master schedule every
month giving the details i of production for every week.
5) Machine Loading Schedule :
Machine loading schedule is associated with the earmarking of work load for different
machines. It acts as a time-schedule to be followed by different machines. It is prepared on the basis
of parts schedule every week giving the details of production for every day.
6) Scheduling of Job Order Manufacturing :
Scheduling of job order manufacturing is of paramount significance. It facilitates prompt
accomplishment of the work at all the individual centre points.
Techniques of Scheduling
Techniques used for scheduling are as follows :
Job Sequencing Rules
Sequencing may be defined as the arrangement of a series of activities in a particular order. It
is a process, which establishes the priorities to be given to various job orders in the manufacturing
process. The priorities are decided in terms of 'priority rules' for job orders. However, in a scenario of
availability of multiple choices in the job sequencing, a real challenge is faced by the operations
manager. Under such circumstances. 'effectiveness' is the factor, on the basis of which a decision is
taken with regard to the order or sequence of the tasks are required to be performed.
Gantt Charts
The Gantt chart is an improvised kind of bar chart, wherein horizontal bars are used to show
each activity in ratio of the time required for its completion. For the monitoring purpose, a cursor is
attached to the chart, which can be used to compare the actual performance as at a particular point of
time vis-a-vis the planned one, by moving it cross the chart. Gantt charts are good monitoring tool,
but they have their limitations, as they are not of any help to the management for deciding the
priorities to the job orders.
Queuing Analysis
Queuing analysis is associated with the study of queuing systems and waiting lines. A queue
may be defined as a line or sequence of customers or units waiting for their turn to be attended to or to
be serviced. The length of a queue depends upon the rate of arrival of customers and the rate of
service provided to them. When rate of customers' or units' arrival is more than the rate of providing
services to them, a queue is formed, and the customers or units are compelled to wait for their turn to
receive the service. For the service provider, it is necessary to keep this waiting period at the bare
minimum, as it has some cost for them. The length of may be reduced by the service provider queue
may through an increase in the rate of providing the services by improving the capacity of service
facilities.
However, if the customer or unit arrival rate reduces, the service facilities are rendered idle.
Therefore, striking a balance between the rate of customers' or units' arrival on one hand and the rate
of service provided to them on the other is of paramount importance.

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Queuing analysis may be effectively used by the operation's managers to strike necessary
balance between the costs of waiting period and the costs of providing additional service facilities.
Determination of the optimum number of service centres becomes easy through the queuing analysis.
Critical Ratio Method
This method is a job sequencing technique popular amongst the operations managers, who
use it to ensure timeliness with regard to the operation of a job, i.e. to verify whether a job is being
carried out as per the schedule or is lagging behind. The critical ratio of a job is computed by
operation's managers with the help of the following formula :
Actual Time Remaining
Critical Ratio = ----------------------------------
Scheduling Time Remaining
Critical ratio of an operation below one is indicative of the fact that the operation is lagging
behind the schedule, whereas if the value of the critical ratio is more than unity, it indicates that the
operation is ahead of the schedule. Once it becomes clear that the operation is lagging behind or ahead
of the schedule, appropriate measures can be taken by the operation's manager, and re-prioritization
may be accorded by him.
Factors Affecting Scheduling
There are certain factors, which play a crucial role in the implementation of the scheduling,
and as such need to be taken into consideration at the time of finalizing the scheduling plan. These
factors may be within the control of a company's management (internal) or beyond that (external),
they are discussed in the following points :
1) External Factors :
The external factors are beyond the control of the management. They are governed by the
outside forces, on which the company's management has no control whatsoever. The management
makes an effort to make necessary adjustments with those forces, so that the company's interests are
kept protected.
Some of the external factors are as under :
i) Customer's Demand :
The assessment of customers' demand is done through the sales forecasting. In the
case of manufacturers engaged in continuous production, scheduling is done on the basis of
forecast of sales level pertaining to the specific items. However, in the case of manufacturers
not engaged in continuous production the forecast is based on the expected volume of
business in rupee terms.
ii) Customer's Delivery Dates :
The scheduling in the cases of continuous production of goods, having cyclical
demand, is planned such a manner that a balanced level of production is maintained
throughout the entire year, and the inventory of finished goods continues to be sufficient to
meet the demand at any period of time. In the cases of intermittent production, the cyclical
demand is met by delivering the products on the due date as per the customers' order.
Additional t orders are normally accepted only if they accommodate into the planned
production.
iii) Stock of Goods Already Lying with Dealers and Retailers :
In the cases of continuous production of standardized items, there is a possibility of a
scenario, wherein dealers and retailers are having the stock of goods. Normally they maintain
adequate level of stock with them. It is necessary to plan the scheduling, keeping in view the
stock position of the dealers and retailers.
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2) Internal Factors :
Internal factors are those, which can be monitored and controlled by the company's
management. There is a need to manage such factors in an appropriate manner during the scheduling,
so that the objectives of the production function are achieved in an efficient and cost-effective
manner.
Some of the important internal factors are listed in the following points :
i) Stock of Finished Goods with the Firm :
In the cases of continuous production, where the production is continued with the
objective of stock-piling, scheduling is required to be planned, keeping in view the level of
goods in stock with the dealers / retailers Normally, the stock is kept at a level, which is
considered sufficient for certain duration supply on hand. The forecasting in respect of new
sales as well as the scheduling needs to be made on the basis of the variations in the stock
holding.
ii) Time Interval to Process Finished Goods from Raw-Material :
The time taken for the processing of raw-materials into the finished good, i.e. the time
required to manufacture each component, sub-assembly and assembly (i.e., the finished
good), is one of the most important internal factors.
iii) Availability of Machines :
The production various machines and capacities of various equipment's are variable.
It is advisable to take the help of "machine-load charts" for arriving at their occupancy
scheduling.
iv) Availability of Manpower :
Significance of the manpower cannot be undermined under any circumstances, and as
such the scheduling should be finalized keeping in view their availability. In cases of urgency,
the production may be rushed through by resorting to overtime working, extra shift working
or hiring of the temporary labour. Inefficiency in this regard needs to be dealt with in a strict
manner. If need be, the shirkers may be adjusted through transfers. The layoffs should be kept
at the lowest level. Induction and adequate training to the new employees should be given
priority.
v) Availability of Materials :
Availability of the raw materials is of paramount importance for an uninterrupted
production flow. Adequate stock level is a basic requirement for a successful scheduling. In
the cases of possible stock-outs of crucial items, additional efforts are required to be made for
their procurement at the earliest. In the meantime, limited stock should be used in a judicious
manner, by issuing them for the sustenance of the critical operations. In such scenarios, the
scheduling is also required to be changed in order to be in sync. with the critical situation.
In the cases of intermittent production, "the bill of materials" (enlisting the need of
specific order) should form the basis for the procurement of the materials. Scheduling would
be leveled by such process.
vi) Manufacturing Facilities :
Provision and availability of manufacturing facilities like power requirements,
material handling services, store-keeping, work-bench area and such other facilities should be
adequate. which would ensure the smooth flow of the production without any interruption.
Scheduling function would also be facilitated by appropriate manufacturing facilities.
vii) Feasibility of Economic Production Runs :

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Normally, two costs are subjected to comparison under the economic lot production;
they are set-up cost and the carrying cost. These two costs are equated under these production
systems.
PRODUCTION CONTROL:
Production control is the process of overseeing, managing, and controlling the tasks involved
in producing goods or services. It uses different control techniques with the aim to meet production
targets on schedule and according to the set quality. The main goal of production control is to ensure
that all resources and manpower available are utilized in the best way possible to achieve optimum
performance in the production system.
Importance of Production Control:
The success of business operations heavily depend on the practices and standards being
followed. A best practice for quality control and quality assurance, integrating production control into
the businesses strategy can help increase production efficiency. Additionally, below are a few other
reasons why you should implement production control as a business process:
 Ensure equipment and product quality – Optimizing production processes helps
proactively identify bottlenecks in the procedure including equipment that prevents
businesses from operating normally. A good production control technique ensures that
targeted outputs are met, right on schedule, and according to standards.
 Regulate inventory control – An efficient production control system helps
businesses manage inventory better. This enables inventory managers to purchase materials
accurately and avoid discrepancy in the number of stocks.
 Increase productivity – Utilizing production control techniques lessens unproductive time
spent by employees. When equipment is in a good condition and production schedules are
right on track, manufacturing targets are fulfilled efficiently.
 Lower production costs – Appropriately-designed production controls and techniques, along
with the assurance of efficient equipment, ability to effectively manage inventory, and
increased employee productivity—all these can lead to major cost savings for businesses.
 Improve customer experience – All the above-mentioned importance and benefits not only
help businesses internally, they also translate to an enhanced customer experience. An
organization’s reputation strengthens when final products consistently meet customer
expectations.
Steps in Production Control:
The steps considered in the production control system can vary per specific industry or
business. However, it should involve the following major stages that also relates to the whole process
of production planning and control:

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1. Routing
Routing is the first step of production planning and control. This part of th0065 process
involves defining the path of the operation from start to end. It should specify all the raw materials
needed, resources such as labor and machine, the targeted quantity, and the place of the production.
The main goal of routing is to identify the most efficient and cost-effective sequence in the
process of manufacturing the goods.
2. Scheduling
As the name suggests, the scheduling step is the production part where all the time-related
conditions are stated. It should arrange the manufacturing schedule in order of priority, and include
the start and end date of each task involved in the operations.
Scheduling is considered as the time-table of the production process.
3. Dispatching
The third step, dispatching—is the stage where actual production is started; it implements the
activities indicated in the routing and scheduling stages.
Dispatching can be classified as either centralized—where orders are provided by a specific
authority; or decentralized—where instructions are issued by all involved business units.
4. Follow-Up
Follow-up evaluates the effectiveness of the whole production control system. In this step,
bottlenecks, delays, and inefficiencies are identified and addressed. Follow-up is also the part where
production managers compare the final production result against the predicted schedule and product
quantity.
Follow-up allows businesses to determine whether the process can still be improved with the
goal of achieving greater manufacturing output in the production.
5. Inspection
Inspection is not an official step of the production control process but performing regular or
random audits is sometimes necessary to ensure that internal best practices and industry standards are
consistently complied with.
Production Control Example
Company ABC, a major electronic gadget producer based in San Francisco, has recently seen
an influx of consumer demand for their flagship mobile product. According to the inventory records,

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the demand for the product, paired with international supply chain disruptions, forecasts product
supply shortage by the end of the year if the issue is not properly addressed.
Because of this, product managers and manufacturing managers of Company ABC quickly
optimized their production control techniques. Aside from immediately consulting their backup plans
for secondary and tertiary material suppliers, they also recognized the need to hire additional people
to avoid manpower shortages from further affecting their manufacturing schedule.
Random inspections are also conducted throughout the succeeding months to ensure an
accurate product quality and product quantity.
DISPATCHING:
Meaning of Dispatching:
Dispatching is the routine of setting productive activities in motion through the release of
orders and necessary instructions according to pre-planned times and sequence of operations
embodied in route sheets and loading schedules.
In other words, once a job is in an area where an operation is to be performed, it has to be
determined when and by whom the job will be processed and also the sequence of waiting orders to
be processed. The decision of assigning the various jobs to different machines and equipment is called
Dispatching.
The final decisions of dispatching are to be taken within the constraints set up by scheduling
function.
Functions of Dispatching:
(i) To check the availability of input materials and ensure the movement of material from
store to first process and then from process to process.
(ii) To ensure the availability of all production and inspection aids.
(iii) To obtain the requisite drawings, specifications and material lists.
(iv) To assign the work appropriate machine, workplace and men.
(v) The issue of job orders authorising operations in accordance with dates and times
previously planned and entered on load charts and route sheets.
(vi) The issue of time tickets, instruction cards and other required items to the workers who
are to perform the various activities.
(vii) The issue of inspection orders after each operation in order to determine result regarding
the quality of products if excessive spoilage occurs, to find out its causes.
(viii) Clean up on jobs, collection of time tickets, blueprints and instruction cards and their
return to appropriate section of production control deptt.
(ix) To ensure that the work is forwarded to next deptt. or storeroom etc.
(x) To record the beginning and completion times of jobs on time tickets for calculation of
time interval. To forward time ticket to accounts deptt for preparing wages.
(xi) To record and report idle time of men and machines and request for corrective action
required.

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Dispatching Procedure:
Centralized V/S Decentralized Dispatching:
In the decentralized dispatching, the manufacturing orders are issued in blanket way to the
Engineer/Foreman/Supervisor. He must then determine the relative sequence in which these orders
will be taken up within the department.
It is the duty of the person (may be Foreman/Supervisor) concerned to dispatch these orders
and to ensure that the required material is available at each machine and operator. In such cases the
dispatch of material must be completed in the department on or before the prescribed date.
Chart in Fig. 5.3 illustrates the sequence of dispatching operation for intermittent
manufacturing system from the issue of manufacturing orders to the end of dispatching operation.
From the manufacturing order list of assemblies, sub-assemblies and parts is prepared. Route
sheets are prepared for various components/parts and assemblies etc.
These route sheets indicate the input materials operation to be performed and their sequence.
Further the time allowances are entered against each operation along with the date when it should start
and finish. Along-with details of tools, jigs and fixtures
required.

Fig 5.3 Chart showing the sequence of dispatching operation for intermittent manufacture
The blue prints supplies the limits and tolerances for the purpose of inspection. In order to give effect
to this information, required materials, tools, job orders, inspection tickets and move orders are
prepared. So all working papers should be ready a day or two before the job should start.
These are further made available to the various persons concerned by the dispatcher. The
material, tools and jigs & fixtures will be issued to the machine operators.
Inspection shall be performed after the first operation is over and the part shall move to next
work station for second operation if it passes inspection.

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The purpose of decentralized dispatching is to minimize the duplication of postings and

elaborate reporting etc. In centralized dispatching which is applicable for continuous manufacturing
system that involves a single standardized product and no assembly, dispatching requires that the
concerned shops be informed about the decided rate of production.
The routine of dispatching under these circumstances shall be quite different from
decentralized dispatching discussed earlier. This is called centralized control.
This system involves the dispatching orders from the central dispatching division directly to
work stations. The working capacity & other characteristics of the machines/equipment as well as the
back log and work ahead of it are known and recorded in the central dispatch office. In this case the
whole dispatching is controlled from that point.
In both types of dispatching, it is traditional for the departmental supervisor or his clerk to
keep themselves informed about the starting date and progress of each order by means of various
dispatching displays.
Forms used in Dispatching Department:
1. Tool Order:
It is normal practice to specify the tools, jigs and fixture for each job. The function of the tool
order is to ensure the availability of these tools at right time when the job is scheduled to start. A
typical tool order is shown in Fig. 5.4

Fig 5.4
2. The Job Order:
The main function of this order is to provide authority for starting operation. In general this
order is combined with some other forms like; the job card, production ticket, time ticket, inspection
order and move ticket.

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Fig 5.5

Fig 5.6

Fig 5.7

Fig 5.8

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Fig 5.9

PROGRESS CONTROL
Progress control is a crucial aspect of project management, particularly in industries such as
construction, engineering, and software development. The primary goal of progress control is to
ensure that a project is progressing according to the planned schedule and within budget, and to make
adjustments if deviations are detected.
Here’s a breakdown of the concepts, objectives, and element types involved in progress control:
1. Concepts of Progress Control:
 Monitoring: Tracking the progress of a project by comparing actual progress against the
planned progress.
 Measurement: Quantifying the work completed, typically through key performance
indicators (KPIs), milestones, or earned value management (EVM).
 Reporting: Regular updates to stakeholders regarding the current state of the project,
highlighting any deviations or challenges.
 Analysis: Analyzing deviations between actual and planned progress to understand root
causes and determine corrective actions.
 Corrective Action: Taking steps to bring the project back on track, such as resource
reallocation, schedule adjustments, or scope modifications.
2. Objectives of Progress Control:
 Timely Completion: Ensuring that the project is completed within the established time
frame.
 Cost Control: Monitoring project costs and keeping them within the approved budget.
 Quality Assurance: Ensuring that the work being done adheres to the required quality
standards.
 Risk Management: Identifying and mitigating risks that could impact the project’s schedule,
cost, or scope.
 Stakeholder Satisfaction: Maintaining transparency with stakeholders by providing accurate
and timely updates on the project’s progress.
3. Element Types in Progress Control:
 Work Breakdown Structure (WBS): A hierarchical decomposition of the project into
smaller, manageable components or work packages. It helps track progress at different levels
of detail.
 Milestones: Key points in the project schedule that represent significant events or phases,
such as the completion of design or construction.
 Earned Value (EV): A metric that measures the value of work performed in relation to the
planned work, helping assess progress in terms of both time and cost.
 Critical Path: The sequence of tasks that determines the longest time to complete the project.
Delays in critical path tasks can affect the overall project timeline.
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 Gantt Chart: A visual tool used to track project tasks, their durations, and their relationships
to each other. It helps visualize progress and identify delays.
 Schedule Variance (SV): The difference between the planned progress and the actual
progress, used to assess if the project is ahead or behind schedule.
 Cost Performance Index (CPI): A measure of cost efficiency, calculated as EV divided by
actual cost (AC), helping assess whether the project is staying within budget.
 Resource Allocation: Monitoring the usage of resources (human, financial, material) and
adjusting them as necessary to avoid bottlenecks or underutilization.

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MODEL QUESTIONS
UNIT I
1. What is the primary focus of Industrial Engineering?
2. How does Industrial Engineering differ from traditional engineering disciplines?
3. What are the key principles behind process optimization in Industrial Engineering?
4. How do systems thinking and Industrial Engineering intersect to improve organizational
efficiency?
5. What is Lean Manufacturing, and how is it applied in Industrial Engineering?
6. How did the Industrial Revolution contribute to the development of Industrial Engineering?
7. What were the major contributions of Frederick Taylor to the field of Industrial Engineering?
8. How did the work of Frank and Lillian Gilbreth shape modern Industrial Engineering
practices?
9. What role did Scientific Management play in the evolution of Industrial Engineering?
10. How did the scope of Industrial Engineering expand post-World War II?
11. What are the primary roles and responsibilities of an Industrial Engineer in a manufacturing
setting?
12. How does an Industrial Engineer contribute to the improvement of supply chain efficiency?
13. What is the importance of ergonomics and safety in the role of an Industrial Engineer?
14. How do Industrial Engineers use data analysis and simulation to optimize production
processes?
15. In which sectors outside manufacturing can Industrial Engineering be effectively applied?
16. How do Industrial Engineers contribute to the healthcare sector in terms of process
optimization and efficiency?
17. What are some common applications of Industrial Engineering in logistics and transportation?
18. What is the key difference between Production Management and Industrial Engineering in
terms of focus and objectives?
19. How does the role of an Industrial Engineer complement the responsibilities of a Production
Manager?
20. What are the three main types of production systems, and how do they differ in terms of scale
and customization?
21. How does the Input-Output Model help in understanding the relationship between resources
and outputs in a production system?
22. How is productivity defined in the context of Industrial Engineering?
23. What are the key components used to measure labor productivity?
24. What factors can impact the productivity of workers in a manufacturing environment?
25. How can technological advancements influence overall productivity in an organization?
26. What strategies can be implemented to increase the productivity of raw materials in the
production process?
27. How can employee training and skill development contribute to increased productivity?
28. What is the difference between labor productivity and capital productivity?
29. How is Multi-factor Productivity (MFP) calculated, and why is it important in Industrial
Engineering?
30. What are the advantages of using Total Factor Productivity (TFP) as a measure of overall
efficiency in a system?

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UNIT II
1. What are the key factors that influence the selection of a plant location?
2. How does proximity to raw materials affect the choice of plant location?
3. Why is labor availability an important factor in selecting a plant location?
4. How does transportation infrastructure impact the decision of plant location?
5. In what ways does market proximity influence the selection of a plant location?
6. How do environmental and regulatory considerations play a role in plant location decisions?
7. Why is access to utilities like water, electricity, and gas critical for plant location?
8. How does the availability of skilled labor impact plant location decisions?
9. What role do tax incentives and government policies play in the selection of plant location?
10. How does the availability of land for expansion influence plant location decisions?
11. What are the main objectives of designing an effective plant layout?
12. How does plant layout contribute to minimizing production costs?
13. In what ways does an efficient plant layout improve worker safety and productivity?
14. How does a well-designed plant layout ensure smooth material flow and minimize
transportation time?
15. Why is flexibility in plant layout design important for accommodating future growth or
changes in demand?
16. What are the core principles that should guide the design of an efficient plant layout?
17. How does minimizing the distance between workstations contribute to a better plant layout?
18. Why is the principle of flexibility crucial when designing a plant layout?
19. How can the principle of safety be integrated into the plant layout design?
20. In what ways does the principle of ergonomics affect the plant layout?
21. What are the different types of plant layouts used in manufacturing?
22. How does a process layout differ from a product layout in terms of design and operations?
23. When is a fixed-position layout typically used in production systems?
24. What are the advantages and disadvantages of using a cellular layout in manufacturing?
25. How does a hybrid layout combine elements of different layout types?
26. What are some common methods used to design a plant layout?
27. How does the Systematic Layout Planning (SLP) method help in plant layout design?
28. How does the Computer-Aided Design (CAD) system support the development of efficient
plant layouts?
29. What are the steps involved in the Relationship Diagram Method for plant layout planning?
30. How do simulation models assist in the evaluation and optimization of plant layouts?
31. Why is storage space an important consideration in plant layout design?
32. What factors should be considered when determining the storage space requirements in a
plant layout?
33. How does proper inventory management relate to the design of storage spaces in plant
layouts?
34. How can the layout design minimize the need for excessive storage space in a production
facility?
35. What are the essential steps involved in the plant layout procedure?
36. How does the process of gathering data for a plant layout contribute to its success?
37. What role does analyzing the flow of materials play in the plant layout procedure?
38. How do layout alternatives get evaluated during the plant layout procedure?

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39. How can feedback from workers be incorporated into the plant layout procedure to improve
efficiency?
40. What is line balancing in the context of plant layout, and why is it important?
41. How do line balancing methods help in optimizing production efficiency?
42. What are the different methods of line balancing used in manufacturing plants?
43. How does the Helm’s Method contribute to solving line balancing problems?
44. How can the Kilbridge-Wester Method be applied in line balancing to ensure even workload
distribution?
45. What are the key steps involved in implementing line balancing in an assembly line
environment?
46. How do cycle time and workstation time influence the effectiveness of line balancing
methods?
47. What role does workload smoothing play in achieving optimal line balancing?
48. How can computer-based tools assist in line balancing and plant layout design?
49. In what ways does line balancing reduce bottlenecks and improve overall system efficiency?
UNIT III
1. Why is method study essential for improving the efficiency of work processes?
2. How does method study help in reducing waste and improving productivity in a work system?
3. What role does method study play in improving the safety and ergonomics of a work
environment?
4. How can method study help organizations in reducing operational costs?
5. What are the primary objectives of conducting a method study in a workplace?
6. How does method study contribute to the standardization of work processes?
7. How does method study help in identifying unnecessary movements or processes in a work
system?
8. What are the key steps involved in the method study procedure?
9. How does data collection during method study contribute to making informed decisions about
work processes?
10. What role does the analysis phase play in the method study procedure?
11. What are the key principles of motion economy in industrial engineering?
12. How do the principles of motion economy contribute to reducing unnecessary movements in a
workplace?
13. How can the application of motion economy principles help in improving worker productivity
and reducing fatigue?
14. What is the primary work measurement procedures used to assess the efficiency of a work
process?
15. How do work measurement techniques help in determining time standards for tasks or
processes?
16. How can work measurement procedures be used to assess the impact of changes in work
methods or layouts?
17. What is a time study, and how is it used to measure the time taken to complete a task or
activity?
18. What are the steps involved in conducting a time study effectively?
19. How do time study results help in establishing performance standards and improving
productivity?
20. What is work sampling, and how does it differ from time study in work measurement?
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21. How is work sampling used to gather information about work patterns and assess task
variability?
22. What is ergonomics, and why is it important in the design of work systems?
23. How does ergonomics contribute to reducing workplace injuries and improving worker
comfort and performance?
24. What are the key areas of application of ergonomics in the workplace?
25. How is physical workload measured in a work system?
26. What is the relationship between physical workload and energy expenditure in work tasks?
27. How can understanding energy expenditure help in designing more efficient and less taxing
work processes?
28. What is anthropometry, and why is it important in the design of work systems and tools?
29. How do anthropometric measurements influence the design of workstations and tools for
optimal worker comfort and productivity?
30. How do different work postures (sitting vs. standing) affect worker health, comfort, and
productivity?
31. What factors should be considered when designing workstations to accommodate both sitting
and standing postures?
UNIT IV
1. What is the definition of quality control, and why is it important in manufacturing and service
industries?
2. How does quality control differ from quality assurance in the context of product or service
delivery?
3. What are the basic concepts of statistical quality control (SQC) in monitoring and improving
process quality?
4. What is the role of a control chart in the monitoring of a production process?
5. What is the significance of using statistical methods in quality control?
6. How do normal distribution and the concept of variability relate to statistical quality control?
7. What is the difference between common cause variation and special cause variation in quality
control?
8. Why is it important to distinguish between these types of variation in quality control?
9. What are control charts for variables, and how are they used in quality control?
10. How do X-bar and R charts (average and range charts) help monitor the consistency of a
process over time?
11. What information can be obtained from an X-bar chart and an R chart in terms of process
stability?
12. What is the purpose of plotting data on a control chart for variables?
13. What are control charts for attributes, and how do they differ from control charts for
variables?
14. What is the difference between a p-chart and a c-chart, and when are they used in quality
control?
15. How can p-charts be used to monitor the proportion of defective items in a sample?
16. What is the purpose of using c-charts in tracking the number of defects per unit?
17. What is acceptance sampling, and how does it relate to quality control and product
inspection?
18. How does acceptance sampling help in making decisions about the acceptance or rejection of
a batch of goods?
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19. What are the advantages and limitations of using acceptance sampling instead of 100%
inspection?
20. What is an Operating Characteristic (O.C.) curve, and how does it help assess the
performance of an acceptance sampling plan?
21. How can the O.C. curve be used to understand the probability of accepting a lot based on its
defect rate?
22. What is a single sampling plan in acceptance sampling, and how does it work?
23. How do acceptance and rejection criteria in a single sampling plan impact the decision-
making process in quality control?
24. What is a double sampling plan, and how does it differ from a single sampling plan in
acceptance sampling?
25. How does the use of a double sampling plan improve the efficiency of the decision process
compared to a single sampling plan?
UNIT V
1. What is the purpose of forecasting in production and operations management?
2. How does accurate forecasting impact decision-making in production planning?
3. What are the key differences between short-term and long-term forecasting in manufacturing?
4. What are the main differences between qualitative and quantitative forecasting techniques?
5. When should qualitative forecasting methods, such as expert judgment or market research, be
used instead of quantitative methods?
6. How does time series analysis help in predicting future trends based on historical data?
7. What are the primary advantages and limitations of using the moving average method in
quantitative forecasting?
8. How do exponential smoothing methods improve forecasting accuracy, and what role does
the smoothing constant play?
9. What are the different types of production systems (e.g., job production, batch production,
mass production), and how do they differ in terms of processes and outputs?
10. How does the choice of production type affect the layout, workforce management, and
inventory control?
11. What is the primary focus of just-in-time (JIT) production, and how does it help reduce
waste and improve efficiency?
12. What is process planning, and how does it contribute to the overall efficiency and cost-
effectiveness of production operations?
13. How do process planners determine the optimal sequence of operations for manufacturing a
product?
14. What are the key factors to consider when designing an effective process plan for new
product development?
15. What is Economic Batch Quantity (EBQ), and how does it help optimize production batch
sizes to minimize costs?
16. How is the EBQ formula calculated, and what factors need to be considered when
determining the optimal batch size?
17. How does EBQ relate to Economic Order Quantity (EOQ) in inventory management?
18. What is loading in production planning, and how does it ensure the efficient utilization of
resources?
19. How does loading help in assigning work to different machines or workstations in a
production facility?
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20. What is the role of scheduling in production, and how does it contribute to meeting customer
demand and minimizing production delays?
21. How do Gantt charts help in visualizing production schedules and tracking progress in a
manufacturing environment?
22. How does critical path method (CPM) assist in scheduling production activities and
managing time constraints?
23. What is the role of dispatching in production control, and how does it affect the flow of
materials and tasks on the shop floor?
24. How do dispatching orders prioritize and manage work to ensure timely completion of tasks
in a production environment?
25. What is progress control, and how does it help track the status of ongoing production
activities?
26. How can progress control systems help identify and address delays or inefficiencies in
production?
27. What are the key metrics used in progress control to measure production performance?

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MODEL QUESTION PAPER

OIE 351 - INTRODUCTION TO INDUSTRIAL ENGINEERING
PART A (10×2=20 MARKS)
1. What is Industrial Engineering? K2 CO1
2. What is Productivity? K2 CO1
3. What is Plant Location? K2 CO2
4. Define Plant Layout. K1 CO2
5. Define Method Study. K1 CO3
6. What is Work Posture? K2 CO3
7. Define SQC. K1 CO4
8. What is Double Sampling Plan? K2 CO4
9. What is Process Planning? K2 CO5
10. What do you mean by Dispatching? K2 CO5
PART B (5×13=65 MARKS)
11. a) Explain the scope and importance of Industrial Engineering K2 CO1
OR
b) Explain the factors affecting productivity. K2 CO1
12. a) What are the advantages and disadvantages of selecting plant site in a city and rural site?
K2 CO2
OR
b) What are the objective and benefits of line balancing? K2 CO2
13. a) What are the procedures and steps for method study? Explain. K2 CO3
OR
b) What are the advantages and benefits of ergonomics? K2 CO3
14. a) Explain control chart for variables and acceptance sampling. K2 CO4
OR
b) Differentiate between single sampling plan and double sampling plan. K2 CO4
15. a) Explain the methods and features of forecasting. K2 CO5
OR
b) What are the functions and types of scheduling? K2 CO5
PART C (1×15=15 MARKS)
16. a) Explain the concepts of Industrial Engineering. What are the roles of Industrial Engineer and
how will increasing productivity of resources? K2 CO1
OR
b) What are the factors affecting plant location? Explain the Qualitative and Quantitative
forecasting techniques of production planning and control. K2 CO2

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Introduction to Industrial Engineering OIE 351

Arunai Engineering College (Autonomous)

MODEL QUESTION PAPER

OIE 351 - INTRODUCTION TO INDUSTRIAL ENGINEERING
PART A (10×2=20 MARKS)
1. What is Production Management? K2 CO1
2. What are Input Output Analysis? K2 CO1
3. What is Plant Layout? K2 CO2
4. What is Line Balancing Method? K2 CO2
5. What is Time Study? K2 CO3
6. Define anthropometry. K1 CO3
7. What is O.C. Curve? K2 CO4
8. What is Single Sampling Plan? K2 CO4
9. What is Economic Batch Quantity? K2 CO5
10. What is progress control? K2 CO5
PART B (5×13=65 MARKS)
11. a) Differentiate between production management and industrial engineering. K2 CO1
OR
b) What are the sources which are supported to increase productivity? K2 CO1
12. a) What are the factors affecting plant location? Explain the selection criteria of plant location.
K2 CO2
OR
b) What are the objective and benefits of line balancing? K2 CO2
13. a) What are the factors which contribute towards the selection of a problem for method study?
K2 CO3
OR
b) What are the advantages and benefits of ergonomics? K2 CO3
14. a) What is SQC? Explain the fundamentals of QC. K2 CO4
OR
b) Explain the concept and control charts for variables. K2 CO4
15. a) What are the objectives and benefits of production planning and control? K2 CO5
OR
b) Differentiate between Qualitative and Quantitative forecasting techniques. K2 CO5
PART C (1×15=15 MARKS)
16. a) Work system design & ergonomics played a vital role in industrial engineering. Comment the
statement or justify. K2 CO3
OR
b) Explain SQC. What are the role and importance of control chart and O.C. Curve?
K2 CO4

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