Industrial Management Qualifygate PDF

INDUSTRIAL MANAGEMENT
I unit-
Introduction : Concept, Development, application and scope of Industrial Management.
Productivity : Definition, measurement, productivity index, types of production system, Industrial Ownership.
MANAGEMENT –
Traditional Author says that management is an art of getting things done through people where as modern authors says
that management is a process of accomplishing certain objectives through the utilization of human and other resource.
MANAGEMENT FUNCTIONS
PLANNING ORAGANISING DIRECTING
STAFFING
IMPORTANCE OF MANAGEMENT
 For the accomplishment of the goals.

 For effective utilization of the resources.
 Sound Organization.
 Providing vision &Foresight.
 For the harmony in work.
 To help employees in achieving personal objective.
 Development of the society and nation.
INDUSTRIAL MANGEMENT
 Industrial management is now a branch of engineering which facilitates creation of management system and
integrates same with people and their activities to utilize the resources.
 Industrial management is structured approach to mange the operational activities of the organization.
SCOPE OF INDUSTRIAL MANGEMENT

1. Related to Designing of the production system.(see notes)
2. Relating to analysis & control of production operation.(see notes)
APPLICATION OF THE INDUSTRIAL MANGEMNT
1. Planning Function
 For Designing Conversion System
 For Scheduling Conversion System
Prepared by: Dr. Vandana Mittal,Dr.Ansar-Ul-Haque,Dr.Raj Kumari,Ms Surat Pyari & Ms Anuja Agarwal
2. Organizing Function
 Organizing for conversion
 Structuring of Operation Staffing
 Job & Work Design.
 For Production & Operation Standard.
 For Payment system.
3. Controlling Function
 Quality
 Quantity
 Time
 Inventory
 Cost
 Maintenance
PRODUCTIVITY
Production is transformation of inputs into the output of commodity in a specific period of time with the given
technology.
Production implies the creation of form, place and time utilities of different usable commodities and service.
Productivity measures the efficiency of the production system. Or productivity may be defined as ratio between output
and input.
Output means the amount produced or the number of items produced.
Input are the various sources employed like land. Building, equipment, machinery, material, labor, etc
Output
Productivity =
Input
PRODUCTIVITY INDEX
Performance Achieved (Effectiveness)

PRODUCTIVITY INDEX=
Input Resources Consumed (Efficiency)
 Efficiency is the ratio of actual output attained to the standard expected output. It measures of how well the
resources are utilized to accomplish the target or result.
 Effectiveness is the degree of accomplishing the objectives
Production System
The production system can be viewed as a framework or skeleton of activities within which the creation of value
can occur.
The difference between the value of input and the value of output represent the value created through
production activities.
At the one end of the production system are the input and at the other end are output.
Connecting the input and output are a series of operations or processes, storage and inspections represent the
simplified production system.
PRODUCTION SYSTEM
Input Receiving Reports
Row material Inventory Reports
Operation - 1 Schedules
Production Manager
Operation – 2 Route Sheets
Production Reports
Operation – 3 Time and Cost Record
Final inspection Inspection Reports

Finished goods storage Inventory Reports
Output Shipping Orders
INPUT OUTPUT MODEL (ANALYSIS OF PRODUCTION SYSTEM)
 It is one of the basic models of the production system.

 Production system is the set of interconnected input output element.
 It is made up of three component parts namely – Input, Output and Process.
 A wide variety of inputs are transformed so that they give out a set of output.
 The transforming process can be complicated and the design of an actual input and output system for
manufacturing may be expensive and difficult.
MATERIAL
MEN PLANT &

GOODES & SERVICES
FACILITIES
ENERGY
INPUT PRODUTION PROCESS OUTPUT

INPUT PRODUTION
PROCESS OUTPUT
Purpose to Increase Productivity:

FOR MANAGEMENT
 To produce good earning (profit).

 To clear the debt or loans acquired from different sources.
 To sell more.
 To stand better in the market.
FOR WORKERS
 HIGHER WAGES.
 Better Working Conditions.
 Higher standard of living.
 Job Security and Satisfaction
FOR CUSTOMER
 To reduced price of the article.
INDUSTRIAL OWNER SHIP
Sole Proprietorship State & Central Govt .
Partnership Joint Stock Company Co – operative Organization
Sole Proprietorship
Sole Proprietorship is that form of Industrial ownership in which Individual Exercise & enjoy all rights related to business
in his own interest.
Merits –
 Easy Formation
 Easy to Operate
 Secrecy
 Simplicity
Demerits
 Limited Resources
 Lack of Continuity
 Unlimited Liability
 Limited Managerial Ability
Partnership
Partnership may be defined as the relation between person who has agreed to share the profits of a business
carried on by all or any of them acting for all.
Merits
 Legal Entity
 Risk Sharing
 More Funds
 Continuity
 Mutual Agency
Demerits
 Unlimited Liability
 Possibility Of Conflict
 Lack of Public Interest
Joint Stock Company
A joint stock Company means an association of several people who contributed money or moneys worth to a
joint or common stock & employ it in same business & share among themselves the profit or loss arising from it.
Merits
 Limited Liability
 Transfer of Interest
 Perpetual Existence
 Scope for Management
 Professional Management
Demerits
 Complexity in Formation
 Lack of Secrecy
 Impersonal Work Environment
 Numerous Regulation
 Delay In Decision Making
Co – Operative Undertaking
The Co – Operative society is voluntary association of person, who join together with the motive of welfare of the
members and society.
Merits
 Limited liability
 Economy in Operation
 Support From Government
 Stable Existence
 Ease of Formation
Demerits
 Inefficiency in Management
 Lack Of Secrecy
 Government Control
 Difference Of Opinion
II unit-
Management Function : Principles of Management- Management Tools – time and motion study, work simplification-
process charts and flow diagrams, Production Planning, Specification of Production requirements.
Management Function: Management

Management is generic. Management principles are general rather than specific to a type of firm or
organization. However, management is universal only if the manager has become familiar with the specific
situation in which it is applied. Production technology, customer characteristics and the culture of the industry
are examples of specifics that managers need to learn to be effective in applying their generic management
skills. Management is creative problem solving. This creative problem solving is accomplished through four
functions of management: planning, organizing, leading and controlling. The intended result is the use of an
organization's resources in a way that accomplishes its mission and objectives.
Planning is the ongoing process of developing the business' mission and objectives and determining how they
will be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and the
narrowest, e.g., a tactic for accomplishing a specific goal.
Organizing is establishing the internal organizational structure of the organization. The focus is on division,
coordination, and control of tasks and the flow of information within the organization. It is in this function that
managers distribute authority to job holders.
Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring,
training, evaluating and compensating are the specific activities included in the function. In the family business,
staffing includes all paid and unpaid positions held by family members including the owner/operators.
Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and
discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's
mission and objectives while simultaneously helping them accomplish their own career objectives.
Controlling is a four-step process of establishing performance standards based on the firm's objectives,
measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as
necessary.
The American Luther Gulick and Brit Lydnall Urwick expanded Fayol's list to seven executive management
activities summarized by the acronym POSDCORB:
 planning: determine objectives in advance and the methods to achieve them;

 organizing: establish a structure of authority for all work;
 staffing: recruit, hire and train workers; maintain favourable working conditions;
 directing: make decisions, issue orders and directives;
 coordinating: interrelate all sectors of the organisation;
 reporting: inform hierarchy through reports, records and inspections;
 budgeting: depend on fiscal planning, accounting and control.
Each of these functions involves creative problem solving. (Figure 4.2 from Higgins, page 118) Creative problem solving
is broader than problem finding, choice making or decision making. It extends from analysis of the environment within
which the business is functioning to evaluation of the outcomes from the alternative implemented.
Henri Fayol, the father of the school of Systematic Management, was motivated to create a theoretical foundation for a
managerial educational program based on his experience as a successful managing director of a mining company. In his
day, managers had no formal training and he observed that the increasing complexity of organisations would require more
professional management.
Principles of Management
A principle refers to a fundamental truth. It establishes cause and effect relationship between two or more
variables under given situation. They serve as a guide to thought & actions. Therefore, management principles
are the statements of fundamental truth based on logic which provides guidelines for managerial decision
making and actions. These principles are derived: -
a. On the basis of observation and analysis i.e. practical experience of managers.

b. By conducting experimental studies.
There are 14 Principles of Management described by Henri Fayol.
1. Division of Labor
a. Henry Fayol has stressed on the specialization of jobs.
b. He recommended that work of all kinds must be divided & subdivided and allotted to various
persons according to their expertise in a particular area.
c. Subdivision of work makes it simpler and results in efficiency.
d. It also helps the individual in acquiring speed, accuracy in his performance.
e. Specialization leads to efficiency & economy in spheres of business.
2. Party of Authority & Responsibility
a. Authority & responsibility are co-existing.
b. If authority is given to a person, he should also be made responsible.
c. In a same way, if anyone is made responsible for any job, he should also have concerned
authority.
d. Authority refers to the right of superiors to get exactness from their sub-ordinates whereas
responsibility means obligation for the performance of the job assigned.
e. There should be a balance between the two i.e. they must go hand in hand.
f. Authority without responsibility leads to irresponsible behavior whereas responsibility without
authority makes the person ineffective.
3. Principle of One Boss
a. A sub-ordinate should receive orders and be accountable to one and only one boss at a time.
b. In other words, a sub-ordinate should not receive instructions from more than one person
because
- It undermines authority
- Weakens discipline
- Divides loyalty
- Creates confusion
- Delays and chaos
- Escaping responsibilities
- Duplication of work
- Overlapping of efforts
c. Therefore, dual sub-ordination should be avoided unless and until it is absolutely essential.
d. Unity of command provides the enterprise a disciplined, stable & orderly existence.
e. It creates harmonious relationship between superiors and sub-ordinates.
4. Unity of Direction
a. Fayol advocates one head one plan which means that there should be one plan for a group of
activities having similar objectives.
b. Related activities should be grouped together. There should be one plan of action for them and
they should be under the charge of a particular manager.
c. According to this principle, efforts of all the members of the organization should be directed
towards common goal.
d. Without unity of direction, unity of action cannot be achieved.
e. In fact, unity of command is not possible without unity of direction.
Basis Unity of command Unity of direction
Meaning It implies that a sub-ordinate should receive It means one head, one plan for a group of
orders & instructions from only one boss. activities having similar objectives.
Nature It is related to the functioning of personnel’s. It is related to the functioning of

departments, or organization as a whole.
Necessity It is necessary for fixing responsibility of each It is necessary for sound organization.
subordinates.
Advantage It avoids conflicts, confusion & chaos. It avoids duplication of efforts and wastage
of resources.
Result It leads to better superior sub-ordinate It leads to smooth running of the enterprise.
relationship.
Therefore it is obvious that they are different from each other but they are dependent on each other i.e. unity of
direction is a pre-requisite for unity of command. But it does not automatically comes from the unity of
direction.
5. Equity
a. Equity means combination of fairness, kindness & justice.
b. The employees should be treated with kindness & equity if devotion is expected of them.
c. It implies that managers should be fair and impartial while dealing with the subordinates.
d. They should give similar treatment to people of similar position.
e. They should not discriminate with respect to age, caste, sex, religion, relation etc.
f. Equity is essential to create and maintain cordial relations between the managers and sub-
ordinate.
g. But equity does not mean total absence of harshness.
h. Fayol was of opinion that, “at times force and harshness might become necessary for the sake of
equity”.
6. Order
a. This principle is concerned with proper & systematic arrangement of things and people.
b. Arrangement of things is called material order and placement of people is called social order.
c. Material order- There should be safe, appropriate and specific place for every article and every
place to be effectively used for specific activity and commodity.
d. Social order- Selection and appointment of most suitable person on the suitable job. There
should be a specific place for every one and everyone should have a specific place so that they
can easily be contacted whenever need arises.
7. Discipline
a. According to Fayol, “Discipline means sincerity, obedience, respect of authority & observance
of rules and regulations of the enterprise”.
b. This principle applies that subordinate should respect their superiors and obey their order.
c. It is an important requisite for smooth running of the enterprise.
d. Discipline is not only required on path of subordinates but also on the part of management.
e. Discipline can be enforced if -
- There are good superiors at all levels.

- There are clear & fair agreements with workers.
- Sanctions (punishments) are judiciously applied.
8. Initiative
a. Workers should be encouraged to take initiative in the work assigned to them.
b. It means eagerness to initiate actions without being asked to do so.
c. Fayol advised that management should provide opportunity to its employees to suggest ideas,
experiences& new method of work.
d. It helps in developing an atmosphere of trust and understanding.
e. People then enjoy working in the organization because it adds to their zeal and energy.
f. To suggest improvement in formulation & implementation of place.
g. They can be encouraged with the help of monetary & non-monetary incentives.
9. Fair Remuneration
a. The quantum and method of remuneration to be paid to the workers should be fair, reasonable,
satisfactory & rewarding of the efforts.
b. As far as possible it should accord satisfaction to both employer and the employees.
c. Wages should be determined on the basis of cost of living, work assigned, financial position of
the business, wage rate prevailing etc.
d. Logical & appropriate wage rates and methods of their payment reduce tension & differences
between workers & management creates harmonious relationship and pleasing atmosphere of
work.
e. Fayol also recommended provision of other benefits such as free education, medical &
residential facilities to workers.
10. Stability of Tenure
a. Fayol emphasized that employees should not be moved frequently from one job position to
another i.e. the period of service in a job should be fixed.
b. Therefore employees should be appointed after keeping in view principles of recruitment &
selection but once they are appointed their services should be served.
c. According to Fayol. “Time is required for an employee to get used to a new work & succeed to
doing it well but if he is removed before that he will not be able to render worthwhile services”.
d. As a result, the time, effort and money spent on training the worker will go waste.
e. Stability of job creates team spirit and a sense of belongingness among workers which ultimately
increase the quality as well as quantity of work.
11. Scalar Chain
a. Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate authority to the
lowest”.
b. Every orders, instructions, messages, requests, explanation etc. has to pass through Scalar chain.
c. But, for the sake of convenience & urgency, this path can be cut shirt and this short cut is known
as Gang Plank.
d. A Gang Plank is a temporary arrangement between two different points to facilitate quick &
easy communication as explained below:
In the figure given, if D has to communicate with G he will first send the communication
upwards with the help of C, B to A and then downwards with the help of E and F to G which will
take quite some time and by that time, it may not be worth therefore a gang plank has been
developed between the two.
e. Gang Plank clarifies that management principles are not rigid rather they are very flexible. They
can be moulded and modified as per the requirements of situations
12. Sub-Ordination of Individual Interest to General Interest
a. An organization is much bigger than the individual it constitutes therefore interest of the
undertaking should prevail in all circumstances.
b. As far as possible, reconciliation should be achieved between individual and group interests.
c. But in case of conflict, individual must sacrifice for bigger interests.
d. In order to achieve this attitude, it is essential that -
- Employees should be honest & sincere.

- Proper & regular supervision of work.
- Reconciliation of mutual differences and clashes by mutual agreement. For example,
for change of location of plant, for change of profit sharing ratio, etc.
13. Espirit De’ Corps (can be achieved through unity of command)

a. It refers to team spirit i.e. harmony in the work groups and mutual understanding among the
members.
b. Spirit De’ Corps inspires workers to work harder.
c. Fayol cautioned the managers against dividing the employees into competing groups because it
might damage the moral of the workers and interest of the undertaking in the long run.
d. To inculcate Espirit De’ Corps following steps should be undertaken -
 There should be proper co-ordination of work at all levels
 Subordinates should be encouraged to develop informal relations among themselves.
 Efforts should be made to create enthusiasm and keenness among subordinates so that
they can work to the maximum ability.
 Efficient employees should be rewarded and those who are not up to the mark should be
given a chance to improve their performance.
 Subordinates should be made conscious of that whatever they are doing is of great
importance to the business & society.
e. He also cautioned against the more use of Britain communication to the subordinates i.e. face to
face communication should be developed. The managers should infuse team spirit &
belongingness. There should be no place for misunderstanding. People then enjoy working in the
organization & offer their best towards the organization.
f.
14. Centralization & De-Centralization
a. Centralization means concentration of authority at the top level. In other words, centralization is
a situation in which top management retains most of the decision making authority.
b. Decentralization means disposal of decision making authority to all the levels of the
organization. In other words, sharing authority downwards is decentralization.
c. According to Fayol, “Degree of centralization or decentralization depends on no. of factors like
size of business, experience of superiors, dependability & ability of subordinates etc.
d. Anything which increases the role of subordinate is decentralization & anything which decreases
it is centralization.
e. Fayol suggested that absolute centralization or decentralization is not feasible. An organization
should strike to achieve a lot between the two.
Management tools
Classic Tools
There's an elusive balance between chasing after each new management tool or method, and ignoring the fact
that we have actually learned some things about management over the past 100,000 years. The best tools are
those which stand the test of time, and which give you a lot of leverage over common problems.
Quality Control Charts Other Quality Management Tools
 Pie charts  Relations Diagram

 Bar charts  Pathway
 Run Charts  Affinity Diagrams
 Radar Charts  Brainstorms
 Scatter Plots  Building Consensus
 Histograms  Cause and Effect Diagrams
 Pareto Charts  Flowcharts
 Normal Test Plots  Force Field Diagrams
 Process Capability Calculations  Tree Diagrams
 Control Charts
Pie Charts
Pie charts are used to show classes or groups of data in proportion to the whole data set. The entire pie
represents all the data, while each slice represents a different class or group within the whole.
Bar Charts
Bar Charts, like pie charts, are useful for comparing classes or groups of data. In bar charts, a class or group can
have a single category of data, or they can be broken down further into multiple categories for greater depth of
analysis.
Run Charts
Run charts (often known as line graphs outside the quality management field) display process performance over
time. Upward and downward trends, cycles, and large aberrations may be spotted and investigated further. In a
run chart, events, shown on the y axis, are graphed against a time period on the x axis. For example, a run chart
in a hospital might plot the number of patient transfer delays against the time of day or day of the week. The
results might show that there are more delays at noon than at 3 p.m. Investigating this phenomenon could
unearth potential for improvement. Run charts can also be used to track improvements that have been put into
place, checking to determine their success. Also, an average line can be added to a run chart to clarify
movement of the data away from the average.
Radar Charts
Radar charts are useful when you want to look at several different factors all related to one item. Radar charts
have multiple axes along which data can be plotted. For example, you could use a radar chart to compile data
about a wide receiver on a professional football team. On one axis, you could plot the percentage of passes
caught. Another axis would show his yards per completion; another, his completions per 100 plays; another,
blocks made; and a final axis might show his interceptions.
Scatter Plots
Scatter Plots (also called scatter diagrams) are used to investigate the possible relationship between two
variables that both relate to the same "event." A straight line of best fit (using the least squares method) is often
included.
Histograms
A histogram is a specialized type of bar chart. Individual data points are grouped together in classes, so that you
can get an idea of how frequently data in each class occur in the data set. High bars indicate more points in a
class, and low bars indicate less points. In the histogram show above, the peak is in the 40-49 class, where there
are four points.
Pareto Charts
Vilfredo Pareto, a turn-of-the-century Italian economist, studied the distributions of wealth in different
countries, concluding that a fairly consistent minority – about 20% – of people controlled the large majority –
about 80% – of a society's wealth. This same distribution has been observed in other areas and has been termed
the Pareto effect.
Normal Test Plot
Normal Test Plots (also called Normal Probability Plots or Normal Quartile Plots) are used to investigate
whether process data exhibit the standard normal "bell curve" or Gaussian distribution.
Process Capability
The capability of a process is some measure of the proportion of in-specification items the process produces
when it is in a state of statistical control.
For valid process capability calculations, all data must be from an in-control process, with respect to both the
mean and standard deviation. Make sure to check this data in a variables control chart to make sure that all
points in the x bar, s or R charts are in control. If they aren't, your capability indices in the statistics dialog box
are not valid.
Control Charts
Every process varies. If you write your name ten times, your signatures will all be similar, but no two signatures
will be exactly alike. There is an inherent variation, but it varies between predictable limits. If, as you are
signing your name, someone bumps your elbow, you get an unusual variation due to what is called a "special
cause". If you are cutting diamonds, and someone bumps your elbow, the special cause can be expensive. For
many, many processes, it is important to notice special causes of variation as soon as they occur.
Other Quality Management Tools
Relations Diagram (or Interrelationship Digraph)

Relations Diagrams are drawn to show all the different relationships between factors, areas, or processes. Why
are they worthwhile? Because they make it easy to pick out the factors in a situation which are the ones which
are driving many of the other symptoms or factors. For example, a relations diagram of urban poverty might
start out something like this:
Instead of one item following another in a logical sequence, each item is connected to many other pieces,
showing that they have an impact on each one. Once all the relevant connections between items have been
drawn, the connections are counted. Those with the most connections will usually be the most important factors
to focus on.
Project Pathways for Management

One of the common features of modern management thinking is its focus on methodologies for problem-
solving. Dr. Deming used the Plan-Do-Check-Act cycle. Marshall-Qualtec espouses a seven-step problem
solving model. The Juran Institute has a slightly different method. So does Executive Learning Inc. That said,
all the approaches, while different in the details, are very similar overall.The pathway, embodied in software, is
a key means of keeping a team focused and on-track. It also provides an easy way for managers of many
projects or departments to keep tabs on the status and progress of work.
Affinity Diagram
The affinity diagram, or KJ method (after its author, Kawakita Jiro), wasn't originally intended for quality
management. Nonetheless, it has become one of the most widely used of the Japanese management and
planning tools. The affinity diagram was developed to discovering meaningful groups of ideas within a raw list.
In doing so, it is important to let the groupings emerge naturally, using the right side of the brain, rather than
according to preordained categories.
To create an affinity diagram, you sort the brainstormed list, moving ideas from the brainstorm into affinity sets,
and creating groups of related ideas. As you sort ideas:
1. Rapidly group ideas that seem to belong together.

2. It isn't important to define why they belong together.
3. Clarify any ideas in question.
4. Copy an idea into in more than one affinity set if appropriate.
5. Look for small sets. Should they belong in a larger group?
6. Do large sets need to be broken down more precisely?
7. When most of the ideas have been sorted, you can start to enter titles for each affinity set.
Brainstorming
Creative thinking requires tools such as the brainstorm and the affinity diagram. Brainstorming is simply listing
all ideas put forth by a group in response to a given problem or question. In 1939, a team led by advertising
executive Alex Osborn coined the term "brainstorm." According to Osborn, " Brainstorm means using the brain
to storm a creative problem and to do so "in commando fashion, each stormer audaciously attacking the same
objective." Creativity is encouraged by not allowing ideas to be evaluated or discussed until everyone has run
dry. Any and all ideas are considered legitimate and often the most far-fetched are the most fertile. Structured
brainstorming produces numerous creative ideas about any given "central question". Done right, it taps the
human brain's capacity for lateral thinking and free association.
Brainstorms help answer specific questions such as:
 What opportunities face us this year?

 What factors are constraining performances in Department X?
 What could be causing problem Y?
 What can we do to solve problem Z?
Building Consensus
The word consensus comes to us from Latin roots meaning "shared thought". Consensus does not imply
complete agreement, but does involve seeking a decision with which everyone is reasonably comfortable. To
accomplish this, everyone will need a fair opportunity to be heard and latent issues must be explored to the
satisfaction of the group. Many different tools can be used to build consensus. In fact, all the tools used in
quality management contribute to consensus. For example, a well-run brainstorming session can get lots of
ideas out onto the table and give everyone a chance for input. Still, most groups approach a point where they
must choose between options, or try to narrow a list from many items to just a few. For this, effective tools
specifically for building consensus are used.
Cause & Effect Diagram

The cause & effect diagram is the brainchild of Kaoru Ishikawa, who pioneered quality management processes
in the Kawasaki shipyards, and in the process became one of the founding fathers of modern management.
The C&E diagram is also known as the fishbone diagram because it was drawn to resemble the skeleton of a
fish, with the main causal categories drawn as "bones" attached to the spine of the fish, as shown below.
Flowcharting
Flowcharts are maps or graphical representations of a process. Steps in a process are shown with symbolic
shapes, and the flow of the process is indicated with arrows connecting the symbols. Computer programmers
popularized flowcharts in the 1960's, using them to map the logic of programs. There are many varieties of
flowcharts and scores of symbols that you can use. Experience has shown that there are three main types that
work for almost all situations:
 High-level flowcharts map only the major steps in a process for a good overview.
 Detailed flowcharts show a step-by-step mapping of all events and decisions in a process.
 Deployment flowcharts which organize the flowchart by columns, with each column representing a person or department involved in a
process.
The trouble spots in a process usually begin to appear as a team constructs a detailed flowchart.
Although there are many symbols that can be used in flowcharts to represent different kinds of steps, accurate
flowcharts can be created using very few (e.g. oval, rectangle, diamond, delay, cloud).
Force Field Analysis

Force Field Analysis is a simple but powerful technique for building an understanding of the forces that will
drive and resist a proposed change. It consists of a two column form, with driving forces listed in the first
column, and restraining forces in the second.
The force field diagram is derived from the work of social psychologist Kurt Lewin. According to Lewin’s
theories, human behavior is caused by forces – beliefs, expectations, cultural norms, and the like – within the
"life space" of an individual or society. These forces can be positive, urging us toward a behavior, or negative,
propelling us away from a behavior. A force field diagram portrays these driving forces and restraining forces
that affect a central question or problem. A force field diagram can be used to compare any kind of opposites,
actions and consequences, different points of view, and so on.
Tree Diagram
The tree diagram is one of the 7 Management and Planning Tools described by Shigeru Mizuno. It is used to
figure out all the various tasks that must be undertaken to achieve a given objective. If you use it carefully and
thoroughly, it will give you a better understanding of the true scope of a project, and will help your team
focuses on specific tasks that are needed to get something done.
Time and motion study

A time and motion study (or time-motion study) is a business efficiency technique combining the Time Study
work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth (not to be
confused with their son, best known through the biographical 1950 film and book Cheaper by the Dozen). After
its first introduction, time study developed in the direction of establishing standard times, while motion study
evolved into a technique for improving work methods. The two techniques became integrated and refined into a
widely accepted method applicable to the improvement and upgrading of work systems. This integrated
approach to work system improvement is known as methods engineering.
Time and motion study have to be used together in order to achieve rational and reasonable results. It is
particularly important that effort be applied in motion study to insure equitable results when time study is used.
In fact, much of the difficulty with time study is a result of applying it without a thorough study of the motion
pattern of the job. Motion study can be considered the foundation for time study. The time study measures the
time required to perform a given task in accordance with a specified method and is valid only so long as the
method is continued. Time studies are applied today to industrial as well as service organizations, including
banks, schools and hospitals. Once a new work method is developed, the time study must be changed to agree
with the new method.
Methods-Time Measurement (MTM) is a predetermined motion time system that is used primarily in
industrial settings to analyse the methods used to perform any manual operation or task and, as a byproduct of
that analysis, set the standard time in which a worker should complete that task.
Methodology
The rating, or Levelling, system used was the Westinghouse or LMS system – so called after its originators
Lowry, Maynard and Stegemerten. This system considers four factors independently:
 Skill – Proficiency in following the given method

 Effort – The will to work
 Conditions – The general work surroundings
 Consistency – of performance
Each factor is assigned an alpha rating, e.g. “B-“, “C+”, “A”, etc. which has a numeric value which is applied
later. This reduces the possibility of “clock rating” and ensures that all factors are considered in the composite
rating. Appendix 1 shows the model for Causes of Difference in Output on which the LMS system is based.
Layout, distances, sizes of parts and tools and tolerances were accurately measured and recorded on the shop
floor to complement the later analyses.
The films were then projected frame-by-frame and analysed and classified in to a predetermined format of Basic
Motions. These Basic Motions were Reach, Grasp, Move, Position, Release, etc. A motion was taken to begin
on the frame in which the hand first started performing the motion and was taken to end on the frame in which
the motion was completed. This allowed a time for each recorded motion to be calculated in seconds, by means
of a frame count, and then “levelled” to a common performance.
Plots of the levelled times for the various motions were drawn. Analysis determined the best definitions of
limits of motions and their major, time-determining variables, and resulted in, more or less, the structure which
the manual motions of MTM-1 have today. Later work, using Time Study, gave the table of Body Motions.
MTM is complementary to other Industrial Engineering charting analytical techniques; it does not replace them.
It should be used after broader techniques have established the Necessity and Purpose, Place, Sequence, Person
and Means of the tasks to be evaluated.
Unit
The unit in which movements are measured for MTM is TMU (time measurement unit): 1 TMU = 36
milliseconds ; 1 hour = 100,000 TMU
1 TMU = 0.036 second
Work Simplification
Work simplification describes the making of daily tasks easier in order to reduce strain, or to decrease the
amount energy required to complete an activity. Work Simplification is a scientific approach to study work
processes with a view to simplifying the process such that the work process becomes more efficient and
effective and thereby raises productivity and reduces wastage of labor effort, materials, space, time and energy
in the process of producing a good or delivering a service.
Work simplification techniques range from low-tech (such as using no-scrub cleaners) to high-tech (such as
using voice recognition software for typing).
Some examples include:
 Using an automated can opener instead of the manual version

 Lengthening a short handle on a dustpan to avoid bending
 Using pre-pressed clothes that eliminate the need for ironing
 Sliding heavy objects or using a wheeled cart to avoid lifting
 Putting an automatic toilet cleaner in the bowl
Work simplification can be useful for people who wish to remain independent for as long as possible, even if
they have a chronic health condition.
Allow for Flexibility –Simplification and Harmonization by its very definition allows for flexibility for the UN
Country Team and national partners to apply those Simplification and Harmonization measures that are
appropriate to their country situation and that take into account the financial management capacities available
for implementation and that empower recipient countries.
Contribute to Capacity Building – The Simplification and Harmonization must be an instrument towards
increased national capacities. It needs to be built around national systems and processes and must complement
the directions on aid coordination that governments in programme countries are pursuing.
Link with other Simplification and Harmonization Initiatives – Simplification and Harmonization process envisages
close collaboration with country offices and national partners, and must factor in and mutually build on the various efforts
at Simplification and Harmonization, notably of the OECD-DAC, World Bank and Regional Banks, the EU and others.
This will ensure synergy and complementarities.
Include other agencies – while the various Simplification and Harmonization measures pertain largely to the four
ExCom agencies that have adopted a common Country Programme approach, a number of the recommendations could
apply to all the UN funds and programmes and specialized agencies at the country level. The gradual adoption of some of
the elements of the programme approach by the various other agencies might enable them to align with the other
measures.
Work Simplification has generated billions of dollars through effectiveness and efficiency for organizations that focused
on their people and gave them tools for continuous improvement. Over the past two decades, the glamour of electronics
has seduced many organizations into treating their people as expenses rather than resources. For those organizations
whose leaders truly believe that their people are their most valuable resource, the tools of Work Simplification are still
available - and better than ever.
In 1946, ASME did something that was even then a long time in the making. They established a set of symbols as the
ASME Standard for Operation and Flow Process Charts. Twenty-five years earlier Frank and Lillian Gilbreth had
presented "Process Charts - First Steps in Finding the One Best Way" at the Annual Meeting of ASME in 1921. By the
time the symbols were standardized they had evolved into a solid set of five symbols that covered every aspect of work, in
any work environment, that can be used with very little confusion. The first process charts appeared as a series of symbols
strung down a page in sequential order. This was (and still is) a simple and effective way to track the flow of a person or a
piece of material through a work process.
- Operation. An operation occurs when an object is arranged or prepared for another step, assembled or disassembled or
intentionally changed.
- Transportation. A transportation occurs when an object is moved from one location to another.
- Inspection. An inspection occurs when an object is verified for quality or quantity in any of its characteristics.
- Delay. A delay occurs when an object waits for the next planned action.
- Storage. A storage occurs when an object is kept and protected against unauthorized removal.
These days, processes change so fast that many organizations have failed to keep up. Their work is undocumented and as
changes are made the complexity mounts. The simple and effective approach of Work Simplification has more to offer
than it ever had. However, its use is not widespread. It appears that many organizations are focusing their attention on
purchasing solutions for their business rather than mastering their work themselves. Where the purchased solutions lead to
downsizing, the corporate memory is discarded leaving the organization dependent on those from whom they purchased
their processes.
The Work Simplification approach utilizes the corporate memory rather than discarding it. It counters increasing
complexity with continuous improvement and enables the work force to be the masters of their processes. It is on the
program at many universities and it is being applied in increasing numbers of organizations across the US and Canada; in
South America, Europe and Australia as these companies seek to regain control of their operations.
New methods for studying work are introduced on a regular basis. Usually they focus effectively on one or another aspect
of improvement but they often fail because they do not deal rigorously with the work itself. This is a good time to look
back and discover again a simple tool that visually displays processes in a universal language that can be readily
understood by anyone who wants to understand.
Today, if you are pursuing six sigma or lean manufacturing; if you are using Kazan or value stream mapping, if you are
managing your supply chain, developing a b2b strategy, establishing an electronic commerce presence, managing day to
day internal operations or documenting your processes for certification or audit, understanding the fundamental steps in
your work processes will help you get those things done. Work Simplification helps you get there…faster, cheaper and
better!
Flowchart
A flowchart is a type of diagram that represents an algorithm or process, showing the steps as boxes of various
kinds, and their order by connecting these with arrows. This diagrammatic representation can give a step-by-
step solution to a given problem. Process operations are represented in these boxes, and arrows connecting them
represent flow of control. Data flows are not typically represented in a flowchart, in contrast with data flow
diagrams; rather, they are implied by the sequencing of operations. Flowcharts are used in analyzing, designing,
documenting or managing a process or program in various fields.
Flowcharts used to be a popular means for describing computer algorithms and are still used for this purpose.
Modern techniques such as UML activity diagrams can be considered to be extensions of the flowchart. In the
1970s the popularity of flowcharts as an own method decreased when interactive computer terminals and third-
generation programming languages became the common tools of the trade, since algorithms can be expressed
much more concisely and readably as source code in such a language, and also because designing algorithms
using flowcharts was more likely to result in spaghetti code because of the need for gotos to describe arbitrary
jumps in control flow. Often pseudo-code is used, which uses the common idioms of such languages without
strictly adhering to the details of a particular one.
Flowchart building blocks
Symbols
A typical flowchart from older basic computer science textbooks may have the following kinds of symbols:
Start and end symbols
Represented as circles, ovals or rounded rectangles, usually containing the word "Start" or "End", or
another phrase signaling the start or end of a process, such as "submit enquiry" or "receive product".
Arrows
Showing what's called "flow of control" in computer science. An arrow coming from one symbol and
ending at another symbol represents that control passes to the symbol the arrow points to.
Generic processing steps
Represented as rectangles. Examples: "Add 1 to X"; "replace identified part"; "save changes" or similar.
Subroutines
Represented as rectangles with double-struck vertical edges; these are used to show complex processing
steps which may be detailed in a separate flowchart. Example: PROCESS-FILES. One subroutine may have
multiple distinct entry points or exit flows (see coroutine); if so, these are shown as labeled 'wells' in the
rectangle, and control arrows connect to these 'wells'.
Input/output
Represented as a parallelogram. Examples: Get X from the user; display X.
Prepare conditional
Represented as a hexagon. Shows operations which have no effect other than preparing a value for a
subsequent conditional or decision step (see below).
Conditional or decision
Represented as a diamond (rhombus) showing where a decision is necessary, commonly a Yes/No

question or True/False test. The conditional symbol is peculiar in that it has two arrows coming out of it,
usually from the bottom point and right point, one corresponding to Yes or True, and one corresponding
to No or False. (The arrows should always be labeled.) More than two arrows can be used, but this is
normally a clear indicator that a complex decision is being taken, in which case it may need to be
broken-down further or replaced with the "pre-defined process" symbol.
Junction symbol
Generally represented with a black blob, showing where multiple control flows converge in a single exit
flow. A junction symbol will have more than one arrow coming into it, but only one going out.
In simple cases, one may simply have an arrow point to another arrow instead. These are useful to
represent an iterative process (what in Computer Science is called a loop). A loop may, for example,
consist of a connector where control first enters, processing steps, a conditional with one arrow exiting
the loop, and one going back to the connector.
For additional clarity, wherever two lines accidentally cross in the drawing, one of them may be drawn
with a small semicircle over the other, showing that no junction is intended.
Labeled connectors
Represented by an identifying label inside a circle. Labeled connectors are used in complex or multi-
sheet diagrams to substitute for arrows. For each label, the "outflow" connector must always be unique,
but there may be any number of "inflow" connectors. In this case, a junction in control flow is implied.
Concurrency symbol
Represented by a double transversal line with any number of entry and exit arrows. These symbols are
used whenever two or more control flows must operate simultaneously. The exit flows are activated
concurrently when all of the entry flows have reached the concurrency symbol. A concurrency symbol
with a single entry flow is a fork; one with a single exit flow is a join.
It is important to remember to keep these connections logical in order. All processes should flow from top to
bottom and left to right.
Data-flow extensions
A number of symbols have been standardized to represent data flow, rather than control flow. These symbols
may also be used in control flow charts (e.g. to substitute for the parallelogram symbol), but they generally have
little currency:
 A Document represented as a rectangle with a wavy base;

 A Manual input represented by quadrilateral, with the top irregularly sloping up from left to right. An
example would be to signify data-entry from a form;
 A Manual operation represented by a trapezoid with the longest parallel side at the top, to represent an
operation or adjustment to process that can only be made manually.
 A Data File represented by a cylinder.
Types of flowchart
Example of a system flowchart.
Sterneckert (2003) suggested that flowcharts can be modelled from the perspective of different user groups
(such as managers, system analysts and clerks) and that there are four general types:
 Document flowcharts, showing controls over a document-flow through a system

 Data flowcharts, showing controls over a data flows in a system
 System flowcharts showing controls at a physical or resource level
 Program flowchart, showing the controls in a program within a system
Notice that every type of flowchart focuses on some kind of control, rather than on the particular flow itself. In
addition, many diagram techniques exist that are similar to flowcharts but carry a different name, such as UML
activity diagrams.
Software
Any drawing program can be used to create flowchart diagrams, but these will have no underlying data model
to share data with databases or other programs such as project management systems or spreadsheets. Some tools
offer special support for flowchart drawing. Many software packages exist that can create flowcharts
automatically, either directly from source code, or from a flowchart description language. On-line Web-based
versions of such programs are available.
Functional flow block diagram
Functional Flow Block Diagram Format.
A Functional Flow Block Diagram (FFBD) is a multi-tier, time-sequenced, step-by-step flow diagram of a
system’s functional flow.The FFBD notation was developed in the 1950s, and is widely used in classical
systems engineering. FFBDs are one of the classic business process modeling methodologies, along with flow
charts, data flow diagrams, control flow diagrams, Gantt charts, PERT diagrams, and IDEF.
FFBDs are also referred to as Functional Flow Diagrams, functional block diagrams, and functional flows.
Development of functional flow block diagrams
Figure 2: Development of Functional Flow Block Diagrams
FFBDs can be developed in a series of levels. FFBDs show the same tasks identified through functional
decomposition and display them in their logical, sequential relationship. For example, the entire flight mission
of a spacecraft can be defined in a top level FFBD, as shown in Figure 2. Each block in the first level diagram
can then be expanded to a series of functions, as shown in the second level diagram for "perform mission
operations." Note that the diagram shows both input (transfer to operational orbit) and output (transfer to space
transportation system orbit), thus initiating the interface identification and control process. Each block in the
second level diagram can be progressively developed into a series of functions, as shown in the third level
diagram on Figure 2.
These diagrams are used both to develop requirements and to identify profitable trade studies. For example,
does the spacecraft antenna acquire the tracking and data relay satellite (TDRS) only when the payload data are
to be transmitted, or does it track TDRS continually to allow for the reception of emergency commands or
transmission of emergency data? The FFBD also incorporates alternate and contingency operations, which
improve the probability of mission success. The flow diagram provides an understanding of total operation of
the system, serves as a basis for development of operational and contingency procedures, and pinpoints areas
where changes in operational procedures could simplify the overall system operation. In certain cases, alternate
FFBDs may be used to represent various means of satisfying a particular function until data are acquired, which
permits selection among the alternatives.[8]
Building blocks
An overview of the key FFBD attributes:
Graphical explanation of a "function block" used in these diagrams. Flow is from left to right.
 Function block: Each function on an FFBD should be separate and be represented by single box (solid line). Each
function needs to stand for definite, finite, discrete action to be accomplished by system elements.
 Function numbering: Each level should have a consistent number scheme and provide information concerning
function origin. These numbers establish identification and relationships that will carry through all Functional
Analysis and Allocation activities and facilitate traceability from lower to top levels.
 Functional reference: Each diagram should contain a reference to other functional diagrams by using a functional
reference (box in brackets).
 Flow connection: Lines connecting functions should only indicate function flow and not a lapse in time or
intermediate activity.
 Flow direction: Diagrams should be laid out so that the flow direction is generally from left to right. Arrows are
often used to indicate functional flows.
 Summing gates: A circle is used to denote a summing gate and is used when AND/OR is present. AND is used to
indicate parallel functions and all conditions must be satisfied to proceed. OR is used to indicate that alternative
paths can be satisfied to proceed.
 GO and NO-GO paths: “G” and “bar G” are used to denote “go” and “no-go” conditions. These symbols are
placed adjacent to lines leaving a particular function to indicate alternative paths.
Function symbolism
A function shall be represented by a rectangle containing the title of the function (an action verb followed by a
noun phrase) and its unique decimal delimited number. A horizontal line shall separate this number and the title,
as shown in see Figure 3 above. The figure also depicts how to represent a reference function, which provides
context within a specific FFBD. See Figure 9 for an example regarding use of a reference function.
Figure 3. Function Symbol
Figure 4. Directed Lines
Directed lines
A line with a single arrowhead shall depict functional flow from left to right, see Figure 4.[9]
Logic Symbols
The following basic logic symbols shall be used.[9]
 AND: A condition in which all preceding or succeeding paths are required. The symbol may contain a single
input with multiple outputs or multiple inputs with a single output, but not multiple inputs and outputs combined
(Figure 5). Read the figure as follows: F2 AND F3 may begin in parallel after completion of F1. Likewise, F4
may begin after completion of F2 AND F3.
Figure 5. "AND" Symbol Figure 6. "Exclusive OR" Symbol
 Exclusive OR: A condition in which one of multiple preceding or succeeding paths is required, but not all. The
symbol may contain a single input with multiple outputs or multiple inputs with single output, but not multiple
inputs and outputs combined (Figure 6). Read the figure as follows: F2 OR F3 may begin after completion of F1.
Likewise, F4 may begin after completion of either F2 OR F3.
 Inclusive OR: A condition in which one, some, or all of the multiple preceding or succeeding paths are required.
Figure 7 depicts Inclusive OR logic using a combination of the AND symbol (Figure 5) and the Exclusive OR
symbol (Figure 6). Read Figure 7 as follows: F2 OR F3 (exclusively) may begin after completion of F1, OR
(again exclusive) F2 AND F3 may begin after completion of F1. Likewise, F4 may begin after completion of
either F2 OR F3 (exclusively), OR (again exclusive) F4 may begin after completion of both F2 AND F3
Figure 7. “Inclusive OR” Logic
Contextual and Administrative Data

Each FFBD shall contain the following contextual and administrative data:
 Date the diagram was created

 Name of the engineer, organization, or working group that created the diagram
 Unique decimal delimited number of the function being diagrammed
 Unique function name of the function being diagrammed.
Figure 8 and Figure 9 present the data in an FFBD. Figure 9 is a decomposition of the function F2 contained in
Figure 8 and illustrates the context between functions at different levels of the model.
Figure 8. FFBD Function 0 Illustration
Figure 9. FFBD Function 2 Illustration
PRODUCTION PLANNING AND SCHEDULING
After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into the
shoe of production manager and attempts to apply managerial principles to the production function in an
enterprise.
Production is a process whereby raw material is converted into semi finished products and thereby adds
to the value of utility of products, which can be measured as the difference between the value of inputs
and value of outputs.
Production function encompasses the activities of procurement, allocation and utilization of resources. The
main objective of production function is to produce the goods and services demanded by the customers in
the most efficient and economical way. Therefore efficient management of the production function is of utmost
importance in order to achieve this objective.
Production system is a system whose function is to convert a set of inputs into a set of desired outputs.
Production system is depicted under with help of chart Production management involves the
managerial decisions regarding design of the product and design of the production system i.e.
determination of production processes and production planning and control.
PRODUCT DESIGN
Product design is a strategic decision as the image and profit earning capacity of a small firm depends
largely on product design. Once the product to be produced is decided by the entrepreneur the next step
is to prepare its design. Product design consists of form and function. The form designing includes
decisions regarding its shape, size, color and appearance of the product. The functional design involves
the working conditions of the product. Once a product is designed, it prevails for a long time therefore
various factors are to be considered before designing it. These factors are listed below: -
(a) Standardization
(b) Reliability
(c) Maintainability
(d) Servicing
(e) Reproducibility
(f) Sustainability
(g) Product simplification
(h) Quality Commensuration with cost
(i) Product value
(j) Consumer quality
(k) Needs and tastes of consumers.
Above all, the product design should be dictated by the market demand. It is an important decision and therefore
the entrepreneur should pay due effort, time, energy and attention in order to get the best results.
Broadly one can think of three types of production systems which are mentioned here under: -
(a) Continuous production

(b) Job or unit production
(c) Intermittent production
(a) Continuous production: - It refers to the production of standardized products with a standard set
of process and operation sequence in anticipation of demand. It is also known as mass flow production or
assembly line production.
This system ensures less work in process inventory and high product quality but involves large investment in
machinery and equipment. The system is suitable in plants involving large volume and small variety of
output e.g. oil efineries reform cement manufacturing etc.
(b) Job or Unit production: - It involves production as per customer's specification each batch
or order consists of a small lot of identical products and is different from other batches. The system requires
comparatively smaller investment in machines and equipment. It is flexible and can be adapted to
changes in product design and order size without much inconvenience. This system is most suitable
where heterogeneous products are produced against specific orders.
(c) Intermittent Production: Under this system the goods are produced partly for inventory and partly
for customer's orders. E.g. components are made for inventory but they are combined differently for different
customers. . Automobile plants, printing presses, electrical goods plant are examples of this type of
manufacturing.
The nature of the process of production required by these three different types of production system are
distinct and require different conditions for their working. Selection of manufacturing process is also a
strategic decision as changes in the same are costly. Therefore the manufacturing process is selected at
the stage of planning a business venture. It should meet the basic two objectives i.e. to meet the
specification of the final product and to be cost effective.
The manufacturing process is classified into four types.
(i) Jobbing Production: - Herein one or few units of the products are produced as per the requirement
and specification of the customer. Production is to meet the delivery schedule and costs are fixed
prior to the contract.
(ii) Batch Production: - In this, limited quantities of each of the different types of products are
manufactured on same set of machines. Different products are produced separately one after the other.
(iii) Mass or flow production: Under this, the production run is conducted on a set of machines arranged
according to the sequence of operations. A huge quantity of same product is manufactured at a time and is
stocked for sale. Different product will require different manufacturing lines. Since one line can produce
only one
type of product, this process is also called as line flow.
(iv) Process Production: Under this, the production run is conducted for an indefinite period.
Following factors need to be considered before making a choice of manufacturing Process.
a) Effect of volume/variety: This is one of the major considerations in selection of manufacturing process. When
the volume is low and variety is high, intermittent process is most suitable and with increase in volume and
reduction in variety continuous process become suitable. The following figure indicates the choice of process as
a function of repetitiveness. Degree of repetitiveness is determined by dividing volume of goods by variety.
b) Capacity of the plant: Projected sales volume is the key factor to make a choice between batch and
line process. In case of line process, fixed costs are substantially higher than variable costs. The reverse is
true for batch process thus at low volume it would be cheaper to install and maintain a batch process and
line process becomes economical at higher volumes.
c) Lead time: - The continuous process normally yields faster deliveries as compared to batch process.
Therefore lead-time and level of competition certainly influence the choice of production process.
d) Flexibility and Efficiency: - The manufacturing process needs to be flexible enough to adapt
contemplated changes and volume of production should be large enough to lower costs.
Hence it is very important for entrepreneur to consider all above mentioned factors before taking a
decision regarding the type of manufacturing process to be adopted as for as SSI are concerned they usually
adopt batch processes due to low investment.
Production planning and control can facilitate the small entrepreneur in the following ways
(1) Optimum Utilisation of Capacity:
With the help of Production Planning and Control [PPC] the entrepreneur can schedule his tasks and
production runs and thereby ensure that his productive capacity does not remain idle and there is no undue
queuing up of tasks via proper allocation of tasks to the production facilities. No order goes unattended and no
machine remains idle.
(2) Inventory control:

Proper PPC will help the entrepreneur to resort to just- in- time systems and thereby reduce the overall
inventory. It will enable him to ensure that the right supplies are available at the right time.
(3) Economy in production time:

PPC will help the entrepreneur to reduce the cycle time and increase the turnover via proper scheduling.
(4) Ensure quality:

A good PPC will provide for adherence to the quality standards so that quality of output is ensured.
To sum up we may say that PPC is of immense value to the entrepreneur in capacity utilization and inventory
control. More importantly it improves his response time and quality. As such effective PPC contributes to time,
quality and cost parameters of entrepreneurial success.
PRODUCTION PLANNING AND CONTROL
Once the entrepreneur has taken the decisions regarding the product design and production processes and
system, his next task is to take steps for production planning and control, as this function is essentially
required for efficient and economical production. One of the major problems of small scale enterprises
is that of low productivity small scale industries can utilise natural resources, which are otherwise lying.
Planned production is an important feature of the small industry. The small entrepreneur possessing the
ability to look ahead, organize and coordinate and having plenty of driving force and capacity to lead
and ability to supervise and coordinate work and simulates his associates by means of a programme of human
relation and organization of employees, he would be able to get the best out of his small industrial unit.
Gorden and Carson observe production; planning and control involve generally the organization and
planning of manufacturing process. Especially it consists of the planning of routing, scheduling, dispatching
inspection, and coordination, control of materials, methods machines, tools and operating times. The
ultimate objective is the organization of the supply and movement of materials and labour, machines utilization
and related activities, in order to bring about the desired manufacturing results in terms of quality,
quantity, time and place.
Production planning without production control is like a bank without a bank manager, planning
initiates action while control is an adjusting process, providing corrective measures for planned development.
Production control regulates and stimulates the orderly how of materials in the manufacturing process
from the
beginning to the end.
STEPS OF PRODUCTION PLANNING AND CONTROL

Production Planning and Control (PPC) is a process that comprises the performance of some
critical; functions on either side, viz., planning as well as
control.
Production planning: Production planning may be defined as the technique of foreseeing every step in a long
series of separate operations, each step to be taken at the right time and in the right place and each operation to
be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material manpower,
machine and money requires for producing predetermined level of output in given period of time.
Routing: Under this, the operations, their path and sequence are established. To perform these operations the
proper class of machines and personnel required are also worked out. The main aim of routing is to determine
the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. In small
enterprises, this job is usually done by entrepreneur in self in a rather adhoc manner. Routing procedure
involves following different activities.
(1) An analysis of the article to determine what to make and what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their sequence.
(4) A determination of lot sizes
(5) Determination of scrap factors
(6) An analysis of cost of the article
(7) Organization of production control forms.
Scheduling: It means working out of time that should be required to perform each operation and also the time
necessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns
with time element and priorities of a job. The pattern of scheduling differs from one job to another which is
explained as below:
Production schedule: The main aim is to schedule that amount of work which can easily be handled by plant
and equipment without interference. Its not independent decision as it takes into account following factors.
(1) Physical plant facilities of the type required to process the material being scheduled.
(2) Personnel who possess the desired skills and experience to operate the equipment and perform the type of
work involved.
(3) Necessary materials and purchased parts.
Master Schedule: Scheduling usually starts with preparation of master schedule which is weekly or monthly
break-down of the production requirement for each product for a definite time period, by having this as a
running record of total production requirements the entrepreneur is in better position to shift the production
from one product to another as per the changed production
requirements. This forms a base for all subsequent scheduling acclivities. A master schedule is followed by
operator schedule which fixes total time required to do a piece of work with a given machine or which shows
the time required to do each detailed operation of a given job with a given machine or process.
Manufacturing schedule: It is prepared on the basis of type of manufacturing process involved. It is very useful
where single or few products are manufactured repeatedly at regular intervals. Thus it would show the required
quality of each product and sequence in which the same to be operated Scheduling of Job order manufacturing:
Scheduling acquires greater importance in job order manufacturing. This will enable the speedy execution of
job at each center point. As far as small scale industry is concerned scheduling is of utmost importance as it
brings out efficiency in the operations and s reduces cost price. The small entrepreneur should maintain four
types of schedules to have a close scrutiny of all stages namely an enquiry schedule, a production schedule, a
shop schedule and an arrears schedule out of above four, a shop schedule is the most important most suited to
the needs of small scale industry as it enables a foreman to see at a glance.
1. The total load on any section
2. The operational sequence
3. The stage, which any job has reached.
Loading: The next step is the execution of the schedule plan as per the route chalked out it includes the
assignment of the work to the operators at their machines or work places. So loading determines who will do the
work as routing determines where and scheduling determines when it shall be done. Gantt Charts are most
commonly used in small industries in order to determine the existing load and also to foresee how fast a job can
be done. The usefulness of their technique lies in the fact that they compare what has been done and what ought
to have been done. Most of a small scale enterprise fail due to non-adherence to delivery schedules therefore
they can be successful if they have ability to meet delivery order in time which no doubt depends upon
production of quality goods in right time. It makes all the more important for entrepreneur to judge ahead of
time what should be done, where and when thus to leave nothing to chance once the work has begun.
Production control: Production control is the process of planning production in advance of operations,
establishing the extract route of each individual item part or assembly, setting, starting and finishing for each
important item, assembly or the finishing production and releasing the necessary orders as well as initiating the
necessary follow-up to have the smooth function of the enterprise. The production control is of complicated
nature in small industries. The production planning and control department can function at its best in small scale
unit only when the work manager, the purchase manager, the personnel manager and the financial controller
assist in planning production activities. The production controller directly reports to the works manager but in
small scale unit, all the three functions namely material control, planning and control are often performed by the
entrepreneur himself production control starts with dispatching and ends up with corrective actions.
Dispatching: Dispatching involves issue of production orders for starting the operations. Necessary authority
and conformation is given for:
1. Movement of materials to different workstations.
2. Movement of tools and fixtures necessary for each operation.
3. Beginning of work on each operation.
4. Recording of time and cost involved in each operation.
5. Movement of work from one operation to another in accordance with the route sheet.
6. Inspecting or supervision of work
Dispatching is an important step as it translates production plans into production.
Follow up: Every production programme involves determination of the progress of work, removing bottlenecks
in the flow of work and ensuring that the productive operations are taking place in accordance with the plans. It
spots delays or deviations from the production plans. It helps to reveal detects in routing and scheduling,
misunderstanding of orders and instruction, under loading or overloading of work etc. All problems or
deviations are investigated and remedial measurer are undertaken to ensure the completion of work by the
planned date.
Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of production
control.
Corrective measures: Corrective action may involve any of those activities of adjusting the route, rescheduling
of work changing the workloads, repairs and maintenance of machinery or equipment, control over inventories
of the cause of deviation is the poor performance of the employees. Certain personnel decisions like training,
transfer, demotion etc. may have to be taken. Alternate methods may be suggested to handle peak loads.
Requirements analysis
Requirements analysis in systems engineering and software engineering, encompasses those tasks that go into
determining the needs or conditions to meet for a new or altered product, taking account of the possibly
conflicting requirements of the various stakeholders, such as beneficiaries or users.
Requirements analysis is critical to the success of a development project. Requirements must be documented,
actionable, measurable, testable, related to identified business needs or opportunities, and defined to a level of
detail sufficient for system design. Requirements can be architectural, structural, behavioral, functional, and
non-functional.
Requirements analysis can be a long and arduous process during which many delicate psychological skills are
involved. New systems change the environment and relationships between people, so it is important to identify
all the stakeholders, take into account all their needs and ensure they understand the implications of the new
systems. Analysts can employ several techniques to elicit the requirements from the customer. Historically, this
has included such things as holding interviews, or holding focus groups (more aptly named in this context as
requirements workshops) and creating requirements lists. More modern techniques include prototyping, and use
cases. Where necessary, the analyst will employ a combination of these methods to establish the exact
requirements of the stakeholders, so that a system that meets the business needs is produced.
Requirements engineering
Systematic requirements analysis is also known as requirements engineering. It is sometimes referred to loosely
by names such as requirements gathering, requirements capture, or requirements specification. The term
requirements analysis can also be applied specifically to the analysis proper, as opposed to elicitation or
documentation of the requirements, for instance. Requirements Engineering can be divided into discrete
chronological steps:
 Requirements elicitation,
 Requirements analysis and negotiation,
 Requirements specification,
 System modeling,
 Requirements validation,
 Requirements management.
Requirement engineering according to Laplante (2007) is "a subdiscipline of systems engineering and software
engineering that is concerned with determining the goals, functions, and constraints of hardware and software
systems." In some life cycle models, the requirement engineering process begins with a feasibility study
activity, which leads to a feasibility report. If the feasibility study suggests that the product should be
developed, then requirement analysis can begin. If requirement analysis precedes feasibility studies, which may
foster outside the box thinking, then feasibility should be determined before requirements are finalized.
Stakeholder identification
See Stakeholder analysis for a discussion of business uses. Stakeholders (SH) are persons or organizations
(legal entities such as companies, standards bodies) which have a valid interest in the system. They may be
affected by it either directly or indirectly. A major new emphasis in the 1990s was a focus on the identification
of stakeholders. It is increasingly recognized that stakeholders are not limited to the organization employing the
analyst. Other stakeholders will include:
 anyone who operates the system (normal and maintenance operators)

 anyone who benefits from the system (functional, political, financial and social beneficiaries)
 anyone involved in purchasing or procuring the system. In a mass-market product organization, product
management, marketing and sometimes sales act as surrogate consumers (mass-market customers) to guide
development of the product
 organizations which regulate aspects of the system (financial, safety, and other regulators)
 people or organizations opposed to the system (negative stakeholders; see also Misuse case)
 organizations responsible for systems which interface with the system under design
 those organizations who integrate horizontally with the organization for whom the analyst is designing the system
Stakeholder interviews
Stakeholder interviews are a common technique used in requirement analysis. Though they are generally
idiosyncratic in nature and focused upon the perspectives and perceived needs of the stakeholder, very often
without larger enterprise or system context, this perspective deficiency has the general advantage of obtaining a
much richer understanding of the stakeholder's unique business processes, decision-relevant business rules, and
perceived needs. Consequently this technique can serve as a means of obtaining the highly focused knowledge
that is often not elicited in Joint Requirements Development sessions, where the stakeholder's attention is
compelled to assume a more cross-functional context. Moreover, the in-person nature of the interviews provides
a more relaxed environment where lines of thought may be explored at length.
Contract-style requirement lists

One traditional way of documenting requirements has been contract style requirement lists. In a complex system
such requirements lists can run to hundreds of pages.
An appropriate metaphor would be an extremely long shopping list. Such lists are very much out of favour in
modern analysis; as they have proved spectacularly unsuccessful at achieving their aims; but they are still seen
to this day.
Strengths
 Provides a checklist of requirements.

 Provide a contract between the project sponsor(s) and developers.
 For a large system can provide a high level description.
Weaknesses
 Such lists can run to hundreds of pages. It is virtually impossible to read such documents as a whole and have a
coherent understanding of the system.
 Such requirements lists abstract all the requirements and so there is little context
 This abstraction makes it impossible to see how the requirements fit or work together.
 This abstraction makes it difficult to prioritize requirements properly; while a list does make it easy to
prioritize each individual item, removing one item out of context can render an entire use case or business
requirement useless.
 This abstraction increases the likelihood of misinterpreting the requirements; as more people read them,
the number of (different) interpretations of the envisioned system increase.
 This abstraction means that it's extremely difficult to be sure that you have the majority of the
requirements. Necessarily, these documents speak in generality; but the devil, as they say, is in the details.
 These lists create a false sense of mutual understanding between the stakeholders and developers.
 These contract style lists give the stakeholders a false sense of security that the developers must achieve certain
things. However, due to the nature of these lists, they inevitably miss out crucial requirements which are
identified later in the process. Developers can use these discovered requirements to renegotiate the terms and
conditions in their favour.
 These requirements lists are no help in system design, since they do not lend themselves to application.
Software requirements specification

A software requirements specification (SRS) is a complete description of the behavior of the system to be
developed. It includes a set of use cases that describe all of the interactions that the users will have with the
software. Use cases are also known as functional requirements. In addition to use cases, the SRS also contains
nonfunctional (or supplementary) requirements. Non-functional requirements are requirements which impose
constraints on the design or implementation (such as performance requirements, quality standards, or design
constraints).
Recommended approaches for the specification of software requirements are described by IEEE 830-1998. This
standard describes possible structures, desirable contents, and qualities of a software requirements specification.
Types of Requirements
Requirements are categorized in several ways. The following are common categorizations of requirements that
relate to technical management:[1]
Customer Requirements
Statements of fact and assumptions that define the expectations of the system in terms of mission objectives,
environment, constraints, and measures of effectiveness and suitability (MOE/MOS). The customers are those
that perform the eight primary functions of systems engineering, with special emphasis on the operator as the key
customer. Operational requirements will define the basic need and, at a minimum, answer the questions posed in
the following listing:[1]
 Operational distribution or deployment: Where will the system be used?

 Mission profile or scenario: How will the system accomplish its mission objective?
 Performance and related parameters: What are the critical system parameters to accomplish the mission?
 Utilization environments: How are the various system components to be used?
 Effectiveness requirements: How effective or efficient must the system be in performing its mission?
 Operational life cycle: How long will the system be in use by the user?
 Environment: What environments will the system be expected to operate in an effective manner?
Architectural Requirements
Architectural requirements explain what has to be done by identifying the necessary system architecture (structure
+ behavior) of a system.
Structural Requirements
Structural requirements explain what has to be done by identifying the necessary structure of a system.
Behavioral Requirements
Behavioral requirements explain what has to be done by identifying the necessary behavior of a system.
Functional Requirements
Functional requirements explain what has to be done by identifying the necessary task, action or activity that must
be accomplished. Functional requirements analysis will be used as the toplevel functions for functional analysis.[1]
Non-functional Requirements
Non-functional requirements are requirements that specify criteria that can be used to judge the operation of a
system, rather than specific behaviors.
Performance Requirements
The extent to which a mission or function must be executed; generally measured in terms of quantity, quality,
coverage, timeliness or readiness. During requirements analysis, performance (how well does it have to be done)
requirements will be interactively developed across all identified functions based on system life cycle factors; and
characterized in terms of the degree of certainty in their estimate, the degree of criticality to system success, and
their relationship to other requirements.[1]
Design Requirements
The “build to,” “code to,” and “buy to” requirements for products and “how to execute” requirements for
processes expressed in technical data packages and technical manuals.[1]
Derived Requirements
Requirements that are implied or transformed from higher-level requirement. For example, a requirement for long
range or high speed may result in a design requirement for low weight.[1]
Allocated Requirements
A requirement that is established by dividing or otherwise allocating a high-level requirement into multiple lower-
level requirements. Example: A 100-pound item that consists of two subsystems might result in weight
requirements of 70 pounds and 30 pounds for the two lower-level items.
Requirements analysis issues

Stakeholder issues
Steve McConnell, in his book Rapid Development, details a number of ways users can inhibit requirements
gathering:
 Users do not understand what they want or users don't have a clear idea of their requirements
 Users will not commit to a set of written requirements
 Users insist on new requirements after the cost and schedule have been fixed
 Communication with users is slow
 Users often do not participate in reviews or are incapable of doing so
 Users are technically unsophisticated
 Users do not understand the development process
 Users do not know about present technology
This may lead to the situation where user requirements keep changing even when system or product
development has been started.
Engineer/developer issues
Possible problems caused by engineers and developers during requirements analysis are:
 Technical personnel and end-users may have different vocabularies. Consequently, they may wrongly believe
they are in perfect agreement until the finished product is supplied.
 Engineers and developers may try to make the requirements fit an existing system or model, rather than develop a
system specific to the needs of the client.
 Analysis may often be carried out by engineers or programmers, rather than personnel with the people skills and
the domain knowledge to understand a client's needs properly.
Attempted solutions
One attempted solution to communications problems has been to employ specialists in business or system
analysis.
Techniques introduced in the 1990s like prototyping, Unified Modeling Language (UML), use cases, and Agile
software development are also intended as solutions to problems encountered with previous methods.
Also, a new class of application simulation or application definition tools have entered the market. These tools
are designed to bridge the communication gap between business users and the IT organization — and also to
allow applications to be 'test marketed' before any code is produced. The best of these tools offer:
 electronic whiteboards to sketch application flows and test alternatives

 ability to capture business logic and data needs
 ability to generate high fidelity prototypes that closely imitate the final application
 interactivity
 capability to add contextual requirements and other comments
 ability for remote and distributed users to run and interact with the simulation
Unit-III
Inventory control : Inventory, cost, Deterministic models, Introduction to supply chain management.
MATERIALS MANAGEMENT
DEFINITION
 Planning and control of the functions supporting the complete cycle (flow) of materials, and the
associated flow of information. These functions include (1) identification, (2) cataloging, (3)
standardization, (4) need determination, (5) scheduling, (6) procurement, (7) inspection, (8) quality
control, (9) packaging, (10) storage, (11) inventory control, (12) distribution, and (13) disposal. Also
called materials planning
 It is concerned with planning, organizing and controlling the flow of materials from their initial purchase
through internal operations to the service point through distribution.
 Material management is a scientific technique, concerned with Planning, Organizing &Control of flow
of materials, from their initial purchase to destination.
AIM OF MATERIAL MANAGEMENT

To get
 The Right quality
 Right quantity of supplies
 At the Right time
 At the Right place
 For the Right cost
SCOPE OF MATERIALS MANAGEMENT

Materials Management strives to ensure that the material cost component of the total product cost be the least.
In order to achieve this, the control is exercised in the following fields.
 Materials Planning.
 Purchasing.
 Store Keeping.
 Inventory Control.
 Receiving, Inspection and Despatching.
 Value Analysis, Standardization and Variety Reduction.
 Materials Handling & Traffic.
 Disposal of Scrap and Surplus, Material Preservation.
Materials
Planning.
Disposal of
Scrap and
Surplus,
Purchasing.
Material
Preservatio
n.
Materials
Store
Handling & MATERIAL MGT.
Keeping.
Traffic.
Value
Analysis,
Standardizat Inventory
ion and Control.
Variety
Reduction. Receiving,
Inspection
and
Despatching
The function of material planning department is to plan for the future procurement of all the required materials
as per the production schedule. At the time of material planning, the budget allocated for the materials will also
be critically reviewed, for better control. After material planning, purchasing is to be done. Purchasing
department buys material based on the purchase requisitions from user departments and stores departments and
annual production plan.
There are four basic purchasing activities:
Selecting suppliers, negotiating and issuing

purchase orders
Expediting delivery from suppliers
Acting as liaison between suppliers and other

company departments
Looking for new products, materials, and

suppliers that can contribute to company
objectiveness
WHAT IS INVENTORY?
Inventory is the total amount of goods and/or materials contained in a store or factory at any given time. Store
owners need to know the precise number of items on their shelves and storage areas in order to place orders or
control losses. Factory managers need to know how many units of their products are available for customer
orders. Restaurants need to order more food based on their current supplies and menu needs.
The word 'inventory' can refer to both the total amount of goods and the act of counting them. Many companies
take an inventory of their supplies on a regular basis in order to avoid running out of popular items. Others take
an inventory to insure the number of items ordered matches the actual number of items counted physically.
Shortages or overages after an inventory can indicate a problem with theft (called 'shrinkage' in retail circles) or
inaccurate accounting practices.
Restaurants and other retail businesses which take frequent inventories may use a 'par' system based on the
results. The inventory itself may reveal 10 apples, 12 oranges and 8 bananas on the produce shelf, for example.
The preferred number of each item is listed on a 'par sheet', a master list of all the items in the restaurant. If the
par sheet calls for 20 apples, 15 oranges and 10 bananas, then the manager knows to place an order for 10
apples, 3 oranges and 2 bananas to reach the par number. This same principle holds true for any other retail
business with a number of different product lines.
Companies also take an inventory every quarter in order to generate numbers for financial reports and tax
records. Ideally, most companies want to have just enough inventory to meet current orders. Having too many
products languishing in a warehouse can make a company look less appealing to investors and potential
customers. Quite often a company will offer significant discounts if the inventory numbers are high and sales
are low. This is commonly seen in new car dealerships as the manufacturers release the next year's models
before the current vehicles on the lot have been sold. Furniture companies may also offer 'inventory reduction
sales' in order to clear out their showrooms for newer merchandise.
REASONS FOR KEEPING INVENTORY
There are three basic reasons for keeping an inventory:
 Time - The time lags present in the supply chain, from supplier to user at every stage, requires that you
maintain certain amounts of inventory to use in this "lead time."
 Uncertainty - Inventories are maintained as buffers to meet uncertainties in demand, supply and
movements of goods.
 Economies of scale - Ideal condition of "one unit at a time at a place where a user needs it, when he
needs it" principle tends to incur lots of costs in terms of logistics. So bulk buying, movement and
storing brings in economies of scale, thus inventory.
INVENTORY TYPES
While accountants often discuss inventory in terms of goods for sale, organizations - manufacturers, service-
providers and not-for-profits - also have inventories (fixtures, furniture, supplies, ...) that they do not intend to
sell. Manufacturers', distributors', and wholesalers' inventory tends to cluster in warehouses. Retailers' inventory
may exist in a warehouse or in a shop or store accessible to customers. Inventories not intended for sale to
customers or to clients may be held in any premises an organization uses. Stock ties up cash and, if
uncontrolled, it will be impossible to know the actual level of stocks and therefore impossible to control them.
There are four types of inventory with which a manufacturing firm must concern itself –
 Raw materials and purchased components: These are raw - materials, parts and components which
enter into the product Direct during the production process and generally form part of the product.
 In process inventory: Semi-finished parts, work-in-process and partly finished products formed at
various stages of production.
 Finished Products: Complete finished products ready for sale.
 Maintenance, repair and tooling inventories: Maintenance, repairs and operating supplies which are
consumed during the production process and generally do not form part of the product itself (e.g.
Petroleum products like petrol, kerosene, diesels, various oils and
lubricants, machinery and plant spares, tools, jibs and fixtures, etc.)
For example:
A canned food manufacturer's materials inventory includes the ingredients to form the foods to be canned,
empty cans and their lids (or coils of steel or aluminum for constructing those components), labels, and
anything else (solder, glue, ...) that will form part of a finished can. The firm's work in process includes those
materials from the time of release to the work floor until they become complete and ready for sale to wholesale
or retail customers.
To manage these various kinds of inventories, two alternative control procedures can be used –
 Order Point Systems : This has been the traditional approach to inventory control. In these systems, the
items are restored when the inventory levels become low. Order point systems are often considered the
appropriate procedure to control inventory type 3 & 4.
 Materials requirement planning – MRP: It is important that the proper control procedure be applied to
each of the four types of inventory. In general, MRP is the appropriate control procedure for inventory
types 1 &2
SPECIAL TERMS USED IN DEALING WITH INVENTORY
 Stock Keeping Unit (SKU) is a unique combination of all the components that are assembled into the
purchasable item. Therefore, any change in the packaging or product is a new SKU. This level of
detailed specification assists in managing inventory.
 Stockout means running out of the inventory of an SKU.
 "New old stock" (sometimes abbreviated NOS) is a term used in business to refer to merchandise
being offered for sale that was manufactured long ago but that has never been used. Such merchandise
may not be produced anymore, and the new old stock may represent the only market source of a
particular item at the present time.
TYPOLOGY IN INVENTORY MANAGEMENT
 Buffer/safety stock- Buffer Stock is a stock held to reduce the negative effects (stock-out costs) of an
unusually large usage of stock.
 Cycle stock (Used in batch processes, it is the available inventory, excluding buffer stock)
 De-coupling (Buffer stock that is held by both the supplier and the user). Inventory “decouples” in
different stages. It might be raw material, WIP, finished goods inventory. Ex: customer has inventory for
10 days for consumption. For 10 days customer is decoupled from producer. So, decoupling inventory is
the one which decouples customer and producer.
 Anticipation stock (Building up extra stock for periods of increased demand - e.g. ice cream for
summer)
 Pipeline stock (Goods still in transit or in the process of distribution - have left the factory but not
arrived at the customer yet). It can be raw material, work in progress or finished goods inventory Ex:
Assume supplier is far away. Consumption per day is 20 units, 5 days for transportation 20X5= 100
units are required for the period of transportation. So if you keep 100 units in your stock it becomes your
pipeline inventory.
 Lead Time: Lead time is the period between a customer's order and delivery of the final product. A
small order of a pre-existing item may only have a few hours lead time, but a larger order of custom-
made parts may have a lead time of weeks, months or even longer. It all depends on a number of factors,
from the time it takes to create the machinery to the speed of the delivery system.
WHAT IS INVENTORY CONTROL?
Inventory consists of the goods and materials that a retail business holds for sale or a manufacturer keeps in raw
materials for production. Inventory control is a means for maintaining the right level of supply and reducing
loss to goods or materials before they become a finished product or are sold to the consumer.
Inventory System
Constraint
Inventory Policy
- Demand
Objective
- Inventory Costs
Minimize Cost
Decision
- Lead time
1. How much to
order ?
The simplest language, inventory control may be said to be a planned method

whereby investment in inventories held in stock is maintained in such a manner
that it ensures proper and smooth flow of materials needed for production
operations as 'well sales, while at the same time, the total costs of investment
in inventories is kept at a minimum.
Inventory control is one of the greatest factors in a company’s success or failure. Proper inventory control will
balance the customer’s need to secure products quickly with the business need to control warehousing costs. To
manage inventory effectively, a business must have a firm understanding of demand, and cost of inventory.
OBJECTIVES OF INVENTORY CONTROL
 To ensure adequate supply of products to customer and avoid shortages as far as possible.
 To make sure that the financial investment in inventories is minimum (i.e., to see that the
working capital is blocked to the minimum possible extent).
 Efficient purchasing, storing, consumption and accounting for materials is an important

objective.
 To maintain timely record of inventories of all the items and to maintain the stock within
the desired limits.
 To ensure timely action for replenishment.
 To provide a reserve stock for variations in lead times of delivery of materials.
 To provide a scientific base for both short-term and long-term planning of materials.
BENEFITS OF INVENTORY CONTROL

It is an established fact that through the practice of scientific inventory control, following are the
benefits of inventory control:
 Improvement in customer’s relationship because of the timely delivery of goods and

service.
 Smooth and uninterrupted production and, hence, no stock out.
 Efficient utilisation of working capital. Helps in minimising loss due to deterioration,
obsolescence damage and pilferage.
 Economy in purchasing.
 Eliminates the possibility of duplicate ordering.
INVENTORY COSTS
There are four main types of cost in inventory. There are the costs to carry standard inventories and safety
stock. Ordering and setup costs come into play as well. Finally, there are shortfall costs. A good inventory
control system will balance carrying costs against shortfall costs.
 Cost Of Ordering/ Replenishment cost :

Every time an order is placed for stock replenishment, certain costs are involved, and for most practical
purposes, it can be assumed that the cost per order is constant. The ordering cost (Co) may vary, depending
upon the type of items; raw material like steel against production components like casting. However, it is
assumed that an estimate Co can be obtained for a given range of items. This cost of ordering, Co includes:
o Paper work costs, typing and despatching an order.
o Follow-up costs required to ensure timely supplies – includes the travel cost for purchase follow-
up, telephone, telex and postal bills.
o Costs involved in receiving the order, inspection, checking and handling in the stores.
o Any set up cost of machines if charged by the supplier, either directly indicated in quotations or
assessed through quotations for various quantities.
o The salaries and wages to the purchase department.
 Holding\Inventory Carrying cost\Safety stock:

This cost is measured as a percentage of the unit cost of the item. This measure, gives a basis for
estimating what it actually costs a firm to carry stock. This cost includes:
 interest on capital.
 insurance and tax charges.
 storage costs – any labour, the costs of provisions of storage area and facilities like bins, racks, etc.
 allowance for deterioration or spoilage.
 salaries of stores staff.
 Obsolescence.
These charges increase as inventory levels rise. To minimize carrying costs, management makes
frequent orders of small quantities. Holding costs are commonly assessed as a percentage of unit value,
rather than attempting to derive monetary value for each of these costs individually. This practice is a
reflection of the difficulty inherent in deriving a specific per unit cost, for example, obsolescence or
theft.
 Ordering costs:
Ordering costs have to do with placing orders, receiving and storage. Transportation and invoice
processing are also included. Lowering these costs would be accomplished by placing small number of
orders, each for a large quantity. Unlike carrying costs, ordering expenses are generally expressed as a
monetary value per order. If the business is in manufacturing, then to production setup costs are
considered instead.
 Stock-out costs:
Stockout or shortfall costs(Ks) represent lost sales due to lack of supply for consumers. How these costs
are calculated can be a matter of contention between sales and logistics managers. Sales departments
prefer these numbers be kept low so that an ample stock will always be kept. Logistics managers prefer
to err on the side of caution to reduce warehousing costs. They include sales that are lost, both short and
long term, when a desired item is not available; the costs associated with back ordering the missing item;
or expenses related to stopping the production line because a component part has not arrived. These
charges are probably the most difficult to compute, but arguably the most important because they
represent the costs incurred by customers when an inventory policy falters.
INVENTORY CONTROL TECHNIQUES
Some important analysis carried out are :
 ABC Analysis - based on annual consumption.

 VED Analysis - criticality for production.
 SDE Analysis - availability.
 GOLF analysis-based on suppliers
 HML Analysis - weight / cost permit.
 FSN Analysis - consumption rate.
 SOS Analysis-based on seasonality
 XYZ Analysis-Left out stock value
 Two-Bin System
a) ABC ANALYSIS :
ABC is said to connote “Always Better Control”. ABC analysis is the analysis of the store items cost criteria.
Of the various techniques, ABC classification is the most important technique. The cost of each item is
multiplied by the number used in a given period and then these items are tabulated in descending numerical
value order. It will be seen that first 10% of items approximately account for 70%, the next 20% for 20% of
value and the last 70% account for 10% of value.
It has been seen that a large number of items consume only a small percentage of resources and vice- versa. A –
Items represent the high cost centre, B items represent the immediate cost centres, and C- items represent low
cost centres. A very close control is exercised over A items while less stringent control is adequate for those in
the category B, and less attention for category C.
By concentrating on controlling A- items, and to a lesser degree on B items, it will be possible to control the
inventory quiet effectively both in the way of cost control and lessening the risk of ‘stock out’. Since A items
are of the highest value and are required in large numbers they could be purchased more frequently and the
others, B & C items less frequently. In so far as inventory control is concerned the following guidelines will
help in keeping the system optimum (i.e. Healthy balance between financial constraints and purchase of
required quantity of materials)
A- Items: on
1. Tight controls
2. Rigid estimates of requirements
3. Strict and close watch ( monitoring)
4. Safety stocks should be low
5. Management of items should be done at top management level.
B- Items
1. Moderate control
2. Purchase based on rigid requirements
3. Reasonably strict watch and control
4. Safety stocks moderate
5. Management be done at middle level
C- Items
1. Ordinary control measure
2. Purchase based on usage estimates
3. Controls exercises by store keeper.
4. Safety stocks high
5. Management be done at lower levels.
Class Number of items Rupee value in items

A 10% of total items 70%
B 20% of total items 20%
C 70% of total items 10%
Steps in computing A-B-C analysis: procedure of A-B-C analysis
 First we are trying to prepare a list of items and calculate their annual usage in rupees. This can be
obtained by multiplying the quantity ( number of units) of the item consumed in one year by its unit
price.
 Arranging all these items in the descending order of their individual dosage in rupees. That means the
first item in the list will now show the maximum annual usage in rupees, the second item the second
maximum, the third item the third maximum and so on. After having done this the total of annual usage
in rupees is put at the bottom of the list.
 Those items which together form about 70% of the total annual usage may be total annual usage may be
categorized as A items. Similarly. Items which contribute the next 20 to 25 % of the aggregate are listed
as B items. The rest which contributes 5 to 10% of the total percentage of annual usage are called C
items.
 Placing of the orders on the basis of this classification.
Example: The company has 10 items mentioned in the table .
Table: 1 A-B-C analysis usage in rupees
Items Annual Unit cost in Annual usage Ranking

usage units rupees
Rs: (2)×(3)
1 2 3 4 5
101 20,000 0.25 5000 4
102 30,000 0.20 6000 3
103 10,000 0.10 1000 6
104 500 0.30 150 9
105 50,000 0.20 10000 2
106 8000 .05 400 8
107 60,000 0.40 24000 1
108 700 1.00 700 7
109 9000 0.50 4500 5
110 50 2.00 100 10
Total Rs: 51,850
Table :1 shows a representative ABC analysis where 10 items have been studied and annual usage extended by
unit cost to get annual usage in rupees.
Table: 2 A-B-C ranking
Ranking Item Annual Cumulative Cumulative Category

usage annual percentage
Rs. usage Rs.
1 107 24000 24000 46.28 A
2 105 10000 34000 65.57 A
3 102 6000 40000 77.14 B
4 101 5000 45000 86.78 B
5 109 4500 49500 95.47 C
6 103 1000 50500 97.39 C
7 108 700 51200 98.14 C
8 106 400 51600 99.51 C
9 104 150 51750 99.81 C
10 110 100 51850 100.00 C
Table 2 shows the ranking and assignment of A, B and C categories of items.
Table 3: Summary of A-B-C analysis:
Class Item % of Rs: (per Cumulative

items group) percentage of
Rs.
A 107,105 20 34000 65.57
B 102,101 20 11000 21.21
C 109,103,104 60 6850 13.22
106,108,110
Table 3 shows a summary ABC analysis showing that 20% of the items represent 65.57 % of annual usage 20
percent of the item represent 21.21% of annual usage and 60% of the items represent only 13.22 % of annual
usage.
A items are ordered more frequently and I small quantities ( i.e. few weeks requirements) while C items are
ordered just once or twice a year to obtain the entire year’s requirement.
The general picture of ABC Analysis will show the following position:-
b) VED ANALYSIS :
ABC analysis does not tell anything about the criticality of the items. VED analysis is done to control a critical
inventory situation. Through this analysis, we identify the criticality of production situation and accordingly
plan for the inventory. Materials are classified into the three types as under:
 V-Vital: items without which production will completely stop. i.e. non- availability can not be tolerated.
Eg. Due to the absence of bearing, rolling machine cannot operate. Airlines industry is bound to keep
stand-by engines as its absence; at times, the industry may require flight cancellation, which costs to the
industry an enormous revenue loss.
 E-Essential: items whose cost of non availability can be tolerated for 2-3 days, because similar or
alternative items are available. For example, some paper mills, bamboo is an important raw material.
Availability of bamboo from the forests, at times, becomes uncertain because of number of reasons due
to climate, natural calamities etc.,
 Desirable: items whose non availability can be tolerated for a long period.
Although the proportion of vital, essential and desirable items varies from organisation to organisation.
Although not included in scientific VED analysis, in some public organizations which are static or inefficiently
managed, there is a peculiar category of ‘U’ items which can be grouped as unnecessary. These unnecessary
items get purchased due to the following reasons.
a) Thoughtless continuation of previous purchase.

b) Indifferent attitude towards hospital formulary
c) Fear of change
d) Poor supervision and control
e) Unfair practice due to vested interest.
The vital items are stocked in abundance; essential items are stocked in medium amounts, and desirable items
we stocked in small amounts. By stocking the items in order of priority, vital and essential items are always in
stock which means a minimum disruption in the services offered to the people.
It should be realized that vital- V items and A items are not the same. All the vital items are not expensive and
all the expensive items are not vital. Domestic examples of salt and matchbox proves that though these items
are vital, they are not expensive, similarly microwave oven and air conditioning unit are expensive, but they are
not essential.
It is possible to conduct a two dimensional analysis taking into consideration cost on one hand , i.e. A,B,C
categories, and critically VED on the other.
c) SDE ANALYSIS :
This analysis is based spares availability of an item –
S-Scarce Items
D-Difficult Items
E-Easy Items
S - refers to Scarce Items, especially imported and those which are very much in short supply. Due to their
nature, these items are procured on yearly interval.
D - are Difficult items which are procurable in market but not easily available. For example, items which have
to come from far off cities or where there is not much competition in market or where good quality supplies are
difficult to get or to be procured.
E - refers to Easy items – Items are those which are easily available; mostly local items. Due to their easy
availability, organizations may not require to hold these items in large volume in their stock.
It is normally advantageous to consider A, V & S items for selective controls.
d) GOLF ANALYSIS:
It is similar to SDE analysis, and it is based on the nature of market and suppliers. Suppliers or Vendors are
classified as under:
G-Government
O-Ordinary or Non-government
L-Local
F-Foreign
All these suppliers have their own payment terms, own administrative procedure and soon. For a materials
Manager, therefore, it is important to keep in mind all these issues to function efficiently and smoothly.
e) HML ANALYSIS :
The cost per item (per piece) is considered for this analysis.
High cost items (H),
Medium Cost items (M) and
Low Cost item (L) help in bringing controls over consumption at the departmental level.
f) FSN ANALYSIS :
This analysis is to help control obsolescence and is based on the consumption pattern of the items. The items are
analyzed to be classified as
Fast-moving (F),
Slow-moving (S) and
Non-moving (N) items.
The Non-moving items (usually not consumed over a period of two years) are of great importance. Scrutiny of
non-moving items is to be made to determine whether they could be used or be disposed off. The fast and slow-
moving classifications help in arrangement of stock in stores and their distribution and handling methods.
g) SOS ANALYSIS:
SOS Analysis is done, keeping in view the seasonality or non-seasonality of the item.
S- Seasonal Items
OS – non-seasonal Items
Depends on seasonality and non-seasonality of the items, procurement actions vary. Example: in case of sugar
mills whose procurement is seasonal, these companies need to procure their requirement for a longer duration
so as to adjust their production plans. Green tea leaves are available for a longer duration from February to
October. Non-seasonal items are available throughout the year without any major price variation. Since seasonal
items, which are available for a limited period, are procured in bulk to manage the production process
throughout the year.
h) XYZ ANALYSIS
This analysis is made based on the value of left out stock in the stores. ‘X’ items are those whose value of left out
stock is very high. ‘Y’ items are those whose left-out stock value is moderate. ‘Z’ items are the residual items,
whose left-out stock value are neither high nor moderate. Materials managers, based on such analysis, can plan not
only for procurement but also for secured storage of items.
i) THE TWO-BIN SYSTEM
One of the earliest systems of stock control is two-bin system, which is a simple method of control exercised by
two simple rules. One is when the order should be placed, and the other is what quantity should be covered. The
following diagram shows this simple method. The bins contain, say, mild-steel bolts and
nuts. The bolts and nuts are issued from the first bin as and when required,
and as soon as the first bin is empty, more bolts and nuts are ordered.
The replenishment arrives just when the second bin is empty. While delivery is
awaited, the nuts and bolts from the second bin are issued. When the delivery
arrives, then both the bins are again filled in.
BIN NO.1 BIN NO.2
Use Bin No 2
Use till Bin no
when Bin no 1
1 is empty
is empty
Such a method is appropriate only when consumption rate is constant, that is
to say, it is a deterministic system. We know from our experience what quantity
of bolts and nuts are necessary for a given period as well as we know their rate
of consumption.
INVENTORY MODELS
The inventory models are broadly classified as follows:
 Deterministic models [Known Demand]
 Probabilistic models [Unknown Demand]
DETERMINISTIC AND PROBABILISTIC METHODS
What is Deterministic and Probabilistic inventory control?

To value it better, let us imagine deterministic and probabilistic conditions.
A deterministic circumstance is one in which the system parameters can be ascertained precisely. This is also
known as a situation of sureness since it is realized that whatever are ascertained, things are sure to occur the
same way. Also the information about the system under thought should be whole so that the parameters can be
determined with confidence. But this kind of system rarely exists, and it is for sure that some uncertainty is
always associated with the system.
Deterministic optimization models presume the state of affairs to be deterministic and consequently render the
numerical model to optimize on system arguments. Since it conceives the system to be deterministic, it
automatically means that one has full information about the system.
Probabilistic situation is also known as a situation of uncertainty. Although this is present everywhere, the
vagueness always makes us comfortless. So people keep attempting to lessen uncertainty.
Probabilistic inventory prototypes consisting of probabilistic demand and supply are more suitable in many real
circumstances. But, such models also create larger trouble in analysis and often become uncontrollable.
Deterministic models are further classified as follows:
A. Elementary Models:
1) Economic Order Quantity [EOQ] models without shortages
a) Instantaneous production
b) Finite production
2) Reorder level models [ROL] with shortages
a) Instantaneous production
b) Finite production
B. EOQ models with restrictions (multi items models)
C. EOQ models with lead time
D. EOQ models with price breaks (quantity discounts)
In general Inventory Models are classified as:

 Fixed order-quantity models
– Economic order quantity
– Production order quantity
– Quantity discount
 Probabilistic models
 Fixed order-period models
ECONOMIC ORDER QUANTITY (EOQ)
Economic order quantity is the level of inventory that minimizes the total inventory holding costs and ordering
costs. It is one of the oldest classical production scheduling models. The framework used to determine this order
quantity is also known as Wilson EOQ Model or Wilson Formula. The model was developed by F. W. Harris in
1913, but R. H. Wilson, a consultant who applied it extensively, is given credit for his early in-depth analysis of
it.
EOQ only applies where the demand for a product is constant over the year and that each new order is delivered
in full when the inventory reaches zero. There is a fixed cost charged for each order placed, regardless of the
number of units ordered. There is also a holding or storage cost for each unit held in storage (sometimes
expressed as a percentage of the purchase cost of the item).
We want to determine the optimal number of units of the product to order so that we minimize the total cost
associated with the purchase, delivery and storage of the product
The required parameters to the solution are the total demand for the year, the purchase cost for each item, the
fixed cost to place the order and the storage cost for each item per year. Note that the number of times an order
is placed will also affect the total cost, however, this number can be determined from the other parameters
Underlying assumptions of the EOQ model
1. Demand is known and is deterministic, ie. constant.

2. The lead time, ie. the time between the placement of the order and the receipt of the order is known and
constant.
3. The receipt of inventory is instantaneous. In other words the inventory from an order arrives in one
batch at one point in time.
4. Quantity discounts are not possible, in other words it does not make any difference how much we order,
the price of the product will still be the same. (for the Basic EOQ-Model)
5. That the only costs pertinent to the inventory model are the cost of placing an order and the cost of
holding or storing inventory over time
EOQ is the quantity to order, so that ordering cost + carrying cost finds its minimum. (A common
misunderstanding is that the formula tries to find when these are equal.)
Variables
 Q = order quantity
 Q * = optimal order quantity
 D = annual demand quantity of the product
 P = purchase cost per unit
 S = fixed cost per order (not per unit, in addition to unit cost)
 H = annual holding cost per unit (also known as carrying cost or storage cost) (warehouse space,
refrigeration, insurance, etc. usually not related to the unit cost)
Calculating EOQ through Different Models
Economic order Quantity will be optimal for the basic assumptions made in the inventory management and
these assumptions for each model are specified below. These assumptions are essential for evolving the best
effective inventory management systems. But in reality, situation arises with deviations to the assumptions, thus
resulting in conflicting issues while seeking the best possible solutions. Hence it may become imperative to
consider different lot sizes, uneven demand rates, purchase with or without discounts, while calculating the
EOQ that serves the best possible solution. Five EOQ models, which cater to these requirements, are discussed
in this unit.
Model – 1: EOQ with Uniform Rate of Demand & Instantaneous Replenishment
In this model the assumptions made are:
a) Demand is known for the item and is consumed at uniform rate
b) Stock replenishment is instantaneous (lead time is zero) i.e. the quantity of items will be realized instantly as
soon as the consumption reaches a point.
c) Price of materials is fixed (no quantity discount is assumed)
d) Inventory carrying cost per unit is constant.
Figure shown below is the graphical representation of the above said model with assumption
When reach down to a level of inventory at R, you place your next order for Q sized order
R = Reorder Level. Q = Economic order Quantity AND L = Lead time
How to Calculate EOQ
The objective is to determine the quantity to order which minimizes the total annual inventory management
cost.
Total Cost = purchase cost + ordering cost + holding cost
 Purchase cost: This is the variable cost of goods, indicated by per unit purchase price × annual demand
quantity. This is indicated as P×D
 Ordering cost: This is the cost of placing orders, each order has a fixed cost S, and we need to order
D/Q times per year. Where
Order Cost = The Number of Orders Placed in the period x Order Costs.
This is indicated as S × D/Q
 Holding cost: the average quantity in stock (between fully replenished and empty) is Q/2. and Holding
cost/Carrying Cost = Average Inventory Level x the Carrying Costs of 1 unit of Stock for one
period
so this cost is H × Q/2
To determine the minimum point of the total cost curve, set the ordering cost equal to the holding cost:
Solving for Q gives Q* (the optimal order quantity):
Therefore: .
Note that interestingly, Q* is independent of P(purchase price); it is a function of only S, D, H.
Graphical Solution
If we minimize the sum of the ordering and carrying costs, we are also minimizing the total costs. To help
visualize this we can graph the ordering cost and the holding cost as shown in the chart below:
This chart shows costs on the vertical axis or Y axis and the order quantity on the horizontal or X axis. The
straight line which commences at the origin is the carrying cost curve, the total cost of carrying units of
inventory. As expected, as we order more on the X axis, the carrying cost line increases in a proportionate
manner. The downward sloping curve which commences high on the Y axis and decreases as it approaches the
X axis and moves to the right is the ordering cost curve. This curve represents the total ordering cost depending
on the size of the order quantity. Obviously the ordering cost will decrease as the order quantity is increased
thereby causing there to be fewer orders which need to be made in any particular period of time.
The point at which these two curves intersect is the same point which is the minimum of the curve which
represents the total cost for the inventory system. Thus the sum of the carrying cost curve and the ordering cost
curve is represented by the total cost curve and the minimum point of the total cost curve corresponds to the
same point where the carrying cost curve and the ordering cost curve intersect.
To determine Economic order quantity EOQ that minimizes the total annual inventory costs, we have to
differentiate total annual cost with respect to variable Q and set the derivative to zero and by using calculus, the
formula for calculating the EOQ works out to:
Worked Example on Modle – 1:
An electronic product uses 32000 PCB’s per year costing Rs.1000 per unit. Cost of ordering Rs.250 per unit and
the inventory cost is Rs.100 per unit.
a) How many PCB’s should be ordered at a time to maximize economy?
b) How many orders be placed per year
c) What is the duration between each order?
d) What are the total annual costs associated with inventory?
e) What are the total annual costs involved including that of materials?
Solution:
Model – 2: Economic Lot Size with Uniform Rate of Demand and Finite Rate of Replenishment
In this model the assumptions made are as follows:
a) Demand is known and is consumed at uniform rate
b) Stock replenishment is not instantaneous but it is gradual at uniform rate
c) Setup cost is fixed and it does not change with lot size.
d) Inventory carrying cost per unit is constant
e) Shortages (stock outs) are not permitted.
Figure shown below indicates the uniform demand and finite rate of replenishment. Uniform demand means
that the stocked material goes on decreasing at a uniform rate as shown by the sloping line downwards.
Finite rate of replenishment means, when the order is placed, the inventory builds up gradually at a certain rate
as by the sloping line upwards. This cycle repeats at an interval. Since the stock out is not permitted, the rate of
replenishment should be greater than or equal to the rate of decrease in inventory.
This model is suitable for the manufacturing organization where there is a simultaneous production and
consumption. Since this type of production is very much in practice, this model can be considered as the
production model.
It may please be noted that there is no ordering cost here as there are no outside vendors or suppliers
considered. Instead of ordering cost Co, there is cost associated with the setup of machinery and tooling. Hence
the set up cost is fixed per run and no change with the lot size of production. In view of all these changes, the
EOQ mentioned in the previous model is referred here as ‘Economic Production Quantity’-EPQ or ‘Economic
Batch Quantity’- EBQ, i.e. the economic batch size in production.
We can calculate the total annual inventory, EBQ, and annual inventory cost from the following derivations:
Total annual inventory = [Annual ordering costs + annual Inventory carrying costs] ————— (1)
Annual ordering costs = Annual set up costs = No. of set ups x Cost/setup ———————————(2)
Annual set up costs = [(D/Q) x Co] ——————————————– (3)
Annual Inventory carrying cost = [Average inventory x Inventory Carrying Cost] —————— (4)
Problem Solving: Example
A transmission manufacturer supplying to a car manufacturer at the rate of 25 per day has a holding cost of the
complete unit at Rs. 20/month, produces in batches with a set up cost of Rs. 10000 each time when set up is
changed. Its production capacity is 40 transmissions per day and works for 300 days in a year. Cost of material
inputs per transmission is Rs. 3000. Calculate:
a) Most economical numbers that can be produced in one batch
b) How frequently should the batches be started in a day
c) What will be the minimum average inventory cost and production time
d) What is the production time
Answer for
Model – III: Finite Rate of Replenishment with Shortages
The assumptions made in this model are as follows:
1) Demand is known and is consumed at uniform rate
2) Stock replenishment is not instantaneous but it is at a finite rate
3) Setup cost is as per production runs
4) No quantity discount is given for the supplies
5) Shortages are allowed
6) No loss of sales due to the above said shortages
Figure given below represents the model which shows the finite replenishment with shortages.
Finite replenishment is a gradual and uniform increase in inventory due to continuous production just as in
model II. Here the shortages are allowed which means that demand is more than supply for certain duration.
There is no consumption during this shortage until fresh stocks arrive for production and the immediate supply
is given first to production before building up the inventory.
In the figure above, the inventory builds first as shown by the sloping line AB, then the consumption is shown
as the drooping line BC. At the point B is the maximum inventory level at any point of time. Line CD
represents the shortages and the stocks are replenished at point D, which build back to E, the point at which the
demand of earlier period is satisfied and the backlog becomes zero.
Formula’s to be used in Model-III are given below:
Solved problem on the above model
The demand for a company’s product is 24000 units per year and can produce at the rate of 3000 per month.
The cost of one set up is Rs. 500 and the holding cost of one unit per month is 25 Paise. The shortage cost is
Rs.20 per unit per year. Determine the optimum quantity to be produced and the number of shortages that the
company faces. Also determine the manufacturing time and the time between each set ups?
Model – IV: Quantity Discount Model
In this model the quantity discount in price of the supplies is considered while calculating the EOQ and then
orders are placed depending on the economics of placing orders with or without discount and the quantity being
ordered. However the fact that the materials if brought to the huge quantities may result in heavy build up of
inventory and hence the inventory carrying cost, which has to be borne by the inventory managers. A decision
has to be taken by the purchaser on whether to stick to the EOQ or raise the order quantity to take advantage of
price discount.
The following procedure is adopted in this decision making process:
Step – 1: calculate EOQ at different price levels
Step – 2: Determine the Economic quantity to be purchased at each price level
Step – 3: Calculate the annual total cost including those of materials for each of the quantities determined by
step – 2
Step – 4: Select an optimal quantity to be purchased which involves the least annual total cost
Formula’s to be used in this model:
Solved Problem for Model-Iv
A Transmission manufacturer is purchasing 4800 forgings per year. The requirement is known and the demand
is mostly fixed. The supplier offers quantity discount as detailed below:
From the above three price values and the EOQ’s, it is observed that the price of Rs.150 for purchase of 500
forgings has resulted in an EOQ of 447, the least units of purchase. Next come EOQ at price of 140/unit with a
quantity of 462 units and the next being 480 numbers when the unit cost is Rs.130
Step – 2: from the above figures in step-1, it can be concluded that the choice in the descending order for the
manager to order are a) best EOQ of 447 units at Rs.150, or b) the quantity of 500 forgings ordered at Rs.140 or
c) 750 forgings at Rs.130 and this decision depends on the actual demand requirements over the particular
period of time.
Step – 3: To calculate the annual total cost including materials for all selected quantities in step-2, we use the
formula
TAQ – 1: Cu D + Co (D/Q) + Cu x (i) (Q/2) = [{(150x4800)} + {(4800/447) x 750} + {150 x

(447x0.02x12)/2}] = Rs. 748099
Similarly
TAQ – 2 = [(140x4800) + (4800/500) x750 + {140x (500x0.02x12)/2)}] = Rs. 687600

TAQ – 3 = [{(130x4800)} + {(4800/750) x750} + {130 x (750x0.02x12)/2}] = Rs. 640500
While we observed that the EOQ is best at purchase of 447 numbers, the total cost, consisting of materials and
the annual ordering cost plus the inventory carrying cost, out of the above three quantities considered, is least
when the order is placed for 750 numbers in one go. Therefore the price discount could be used for the economy
when the buying quantity is warranted up to 750 numbers at any point of time in the production cycle.
PROBABLISTIC MODEL ASSUMPTIONS
 Demand is NOT deterministic but probability distribution is known

 Lead time MIGHT NOT BE deterministic
 Shortages MAY OCCUR
 All ordered units arrive at once
 Purchasing cost is independent of the order quantity
SUPPLY CHAIN MANAGEMENTN AND INVENTORY CONTROL
Supply chain management (SCM) is the management of a network of interconnected businesses involved in
the ultimate provision of product and service packages required by end customers. Supply chain management
spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of
origin to point of consumption .
Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning,
execution, control, and monitoring of supply chain activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring
performance globally."
More common and accepted definitions of supply chain management are:
Supply chain management is the systemic, strategic coordination of the traditional business functions and the
tactics across these business functions within a particular company and across businesses within the supply
chain, for the purposes of improving the long-term performance of the individual companies and the supply
chain as a whole.
Supply Chain Management Decision
Supply chain management has emerged over the past few years as the key to success in the global economy,
regardless of industry or company size. Its premise is simple: operational strategies should be designed and
managed around customer needs. Supply Chain (SC), which involves the configuration, coordination, and
improvement of sequentially related set of operations in establishments, integrates technology and human
resource capacity for optimal management of operations to reduce inventory requirements and provide support
to enterprises in pursuance of a competitive advantage in the marketplace. A coordinated SC integrates
procurement, production, and distribution and links together suppliers, manufacturers, distributors, customers
and carriers in a network system that allows for effective planning, information exchange, transaction
execution, and performance reporting. There are three links in the supply chain--distribution, production, and
procurement/materials.
Integrated Supply Chain and Inventory Management
Integrated supply chain require that each segment of the supply chain i.e., procurement, production and
distribution be functionally integrated for optimum result. Today's technology is the key that allows the supply
chain to become integrated and therefore reduces the inventory requirement. Some examples are the electronic
transmission of advance ship notices (ASN) to advise customers of the contents of a shipment and its expected
delivery date. The transmission of purchase orders via electronic data interchange (EDI) can provide more
timely and accurate data to suppliers, allowing for more efficient information in management and production
planning . Also, freight tracking systems now are being used in the management of the movement of goods,
which provides flexibility that can be used to react to rapidly changing internal and external needs such as
changes in production schedule or changes in customer product delivery requirements.
It is important that companies develop a supply chain management strategy that is consistent with their overall
business strategy. A key tool to achieving this is to develop a supply chain "diagnostic method" that can be used
to improve operations and reduce inventories . The first consideration here is for the company to examine and
understand their supply and demand planning. This is the key to optimizing resources as well as the timing of
activities associated with procuring raw materials and producing and distributing products. The next step is to
begin the process of transitioning from a functional organization to a process organization. And finally, as
companies reorganize to be process driven, then the performance measures for the various functional
departments should be changed to support the overall supply chain management goals. Some examples of the
measurements would include perfect order fulfillment, customer satisfaction, product quality, total supply chain
cost, inventory days supply, and cash-to-cash cycle time.
JUST-IN-TIME INVENTORY
JIT, or just in time, inventory is an inventory management strategy that is aimed at monitoring the inventory
process in such a manner as to minimize the costs associated with inventory control and maintenance. To a
great degree, a just-in-time inventory process relies on the efficient monitoring of the usage of materials in the
production of goods and ordering replacement goods that arrive shortly before they are needed. This simple
strategy helps to prevent incurring the costs associated with carrying large inventories of raw materials at any
given point in time.
Another application of a just in time inventory focuses not on raw materials but on finished goods. Again, the
idea is to develop a solid understanding of what is needed to produce goods and schedule them for shipment to
customers within the shortest time frame possible. As with raw materials, shipping finished goods shortly after
producing them leads to minimizing storage costs and any taxes that may be applicable. This dual application of
a just in time inventory strategy can significantly cut the operational expenses of a business in regards to the
amount of inventory that must be stored at any one time and the amount of taxes that must be paid on larger
inventories.
A just in time inventory management process involves understanding how much of a given item is needed to
maintain production while more of the same item is ordered. This involves two key factors. First, it is necessary
to know how long it will take for the item to be shipped from the supplier and arrive at the manufacturing
facility. Second, the anticipated life or usage of the item must be determined. By knowing these two pieces of
information, it is possible to establish procedures that allow the item to be reordered just in time to arrive and
replace a worn item, without having the replacement set in storage for an extended period of time. Many
purchasing departments employ a just in time inventory for such key items as raw materials and machine parts.
Unit-IV
Quality control:Meaning, process control, SQC control charts, single, double and sequential sampling,
Introduction to TQM.
Quality Control:
Definition of Quality:
 The meaning of “Quality” is closely allied to cost and customer needs. “Quality” may simply be defined
as fitness for purpose at lowest cost.
 The component is said to possess good quality, if it works well in the equipment for which it is
meant. Quality is thus defined as fitness for purpose.
 Quality is the ‘totality of features and characteristics’ both for the products and services that can satisfy
both the explicit and implicit needs of the customers.
 “Quality” of any product is regarded as the degree to which it fulfills the requirements of the customer.
 “Quality” means degree of perfection. Quality is not absolute but it can only be judged or realized by
comparing with standards. It can be determined by some characteristics namely, design, size, material,
chemical composition, mechanical functioning, workmanship, finish and other properties.
Meaning of Control:
Control is a system for measuring and checking (inspecting) a phenomenon. It suggests when to inspect, how
often to inspect and how much to inspect. In addition, it incorporates a feedback mechanism which explores the
causes of poor quality and takes corrective action.
Control differs from ‘inspection’, as it ascertains quality characteristics of an item, compares the same with
prescribed quality standards and separates defective items from non-defective ones. Inspection, however, does
not involve any mechanism to take corrective action.
Meaning of Quality Control:
Quality Control is a systematic control of various factors that affect the quality of the product. The various
factors include material, tools, machines, type of labour, working conditions, measuring instruments, etc.
Quality Control can be defined as the entire collection of activities which ensures that the operation will
produce the optimum Quality products at minimum cost.
As per A.Y.Feigorbaum Total Quality Control is: “An effective system for integrating the quality development,
Quality maintenance and Quality improvement efforts of the various groups in an organization, so as to enable
production and services at the most economical levels which allow full customer satisfaction”
In the words of Alford and Beatly, “Quality Control” may be broadly defined as that “Industrial management
technique means of which products of uniform accepted quality are manufactured.” Quality Control is
concerned with making things right rather than discovering and rejecting those made wrong.
In short, we can say that quality control is a technique of management for achieving required standards of
products.
Factors Affecting Quality:
In addition to men, materials, machines and manufacturing conditions there are some other factors which affect
the product quality. These are:
 Market Research i.e. demand of purchaser.

 Money i.e. capability to invest.
 Management i.e. Management policies for quality level.
 Production methods and product design.
Modern quality control begins with an evaluation of the customer’s requirements and has a part to play at every
stage from goods manufactured right through sales to a customer, who remains satisfied.
Objectives of Quality Control:
 To decide about the standard of quality of a product that is easily acceptableto the customer and at
the same time this standard should be economical to maintain.
 To take different measures to improve the standard of quality of product.
 To take various steps to solve any kind of deviations in the quality of the product during
manufacturing.
Functions of Quality Control Department:
 Only the products of uniform and standard quality are allowed to be sold.
 To suggest method and ways to prevent the manufacturing difficulties.
 To reject the defective goods so that the products of poor quality may not reach to the customers.
 To find out the points where the control is breaking down and investigate the causes of it.
 To correct the rejected goods, if it is possible. This procedure is known as rehabilitation of defective
goods.
Advantages of Quality Control:
 Quality of product is improved which in turn increases sales.

 Scrap rejection and rework are minimized thus reducing wastage. So the cost of manufacturing
reduces.
 Good quality product improves reputation.
 Inspection cost reduces to a great extent.
 Uniformity in quality can be achieved.
 Improvement in manufacturer and consumer relations.
Statistical Quality Control (S.Q.C):
Statistics: Statistics means data, a good amount of data to obtain reliable results. The science of statistics
handles this data in order to draw certain conclusions.
S.Q.C: This is a quality control system employing the statistical techniques to control quality by performing
inspection, testing and analysis to conclude whether the quality of the product is as per the laid quality
standards.
Using statistical techniques, S.Q.C. collects and analyses data in assessing and controlling product quality. The
technique of S.Q.C. was though developed in 1924 by Dr.WalterA.Shewartan American scientist, it got
recognition in industry only second world war. The technique permits a more fundamental control.
“Statistical quality control can be simply defined as an economic & effective system of maintaining &
improving the quality of outputs throughout the whole operating process of specification, production &
inspection based on continuous testing with random samples.” -YA LUN CHOU
“Statistical quality control should be viewed as a kit of tools which may influence decisions to the functions of
specification, production or inspection.
- EUGENE L. GRANT
The fundamental basis of S.Q.C. is the theory of probability. According to the theories of probability, the
dimensions of the components made on the same machine and in one batch (if measured accurately) vary from
component to component. This may be due to inherent machine characteristics or the environmental conditions.
The chance or condition that a sample will represent the entire batch or population is developed from the theory
of probability.
Relying itself on the probability theory, S.Q.C. evaluates batch quality and controls the quality of processes and
products. S.Q.C. uses three scientific techniques, namely;
 Sampling inspection
 Analysis of the data, and
 Control charting
Advantages of S.Q.C:
S.Q.C is one of the tool for scientific management, and has following main advantages over 100 percent
inspection:
1. Reduction in cost: Since only a fractional output is inspected, hence cost of inspection is greatly
reduced.
2. Greater efficiency: It requires lesser time and boredom as compared to the 100 percent inspection
and hence the efficiency increases.
3. Easy to apply: Once the S.Q.C plan is established, it is easy to apply even by man who does not have
extensive specialized training.
4. Accurate prediction: Specifications can easily be predicted for the future, which is not possible even
with 100 percent inspection.
5. Can be used where inspection is needs destruction of items: In cases where destruction of product is
necessary for inspecting it, 100 percent inspection is not possible (which will spoil all the products),
sampling inspection is resorted to.
6. Early detection of faults:The moment a sample point falls outside the control limits, it is taken as a
danger signal and necessary corrective measures are taken. Whereas in 100 percent inspection,
unwanted variations in quality may be detected after large number of defective items have already
been produced. Thus by using the control charts, we can know from graphic picture that how the
production is proceeding and where corrective action is required and where it is not required.
Process Control:
Under this the quality of the products is controlled while the products are in the process of production.
The process control is secured with the technique of control charts. Control charts are also used in the field of
advertising, packing etc. They ensure that whether the products confirm to the specified quality standard or not.
Process Control consists of the systems and tools used to ensure that processes are well defined, performed
correctly, and maintained so that the completed product conforms to established requirements. Process Control
is an essential element of managing risk to ensure the safety and reliability of the Space Shuttle Program. It is
recognized that strict process control practices will aid in the prevention of process escapes that may result in or
contribute to in-flight anomalies, mishaps, incidents and nonconformances.
The five elements of a process are:
 People – skilled individuals who understand the importance of process and change control
 Methods/Instructions – documented techniques used to define and perform a process
 Equipment – tools, fixtures, facilities required to make products that meet requirements
 Material – both product and process materials used to manufacture and test products
 Environment – environmental conditions required to properly manufacture and test products
In practice, process control systems can be characterized as one or more of the following forms:
 Discrete – Found in many manufacturing, motion and packaging applications. Robotic assembly, such as
that found in automotive production, can be characterized as discrete process control. Most discrete
manufacturing involves the production of discrete pieces of product, such as metal stamping.
 Batch – Some applications require that specific quantities of raw materials be combined in specific ways
for particular durations to produce an intermediate or end result. One example is the production of
adhesives and glues, which normally require the mixing of raw materials in a heated vessel for a period
of time to form a quantity of end product. Other important examples are the production of food,
beverages and medicine. Batch processes are generally used to produce a relatively low to intermediate
quantity of product per year (a few pounds to millions of pounds).
 Continuous – Often, a physical system is represented through variables that are smooth and
uninterrupted in time. The control of the water temperature in a heating jacket, for example, is an
example of continuous process control. Some important continuous processes are the production of
fuels, chemicals and plastics. Continuous processes in manufacturing are used to produce very large
quantities of product per year (millions to billions of pounds).
Statistical Process Control (SPC) is an effective method of monitoring a process through the use of control
charts. Much of its power lies in the ability to monitor both process center and its variation about that center. By
collecting data from samples at various points within the process, variations in the process that may affect the
quality of the end product or service can be detected and corrected, thus reducing waste as well as the likelihood
that problems will be passed on to the customer. It has an emphasis on early detection and prevention of
problems.
Process Control Standards & Practices
A program as sophisticated as the Space Shuttle requires the integration of thousands of parts that must endure
extreme operating environments. Space hardware is produced by a broad supplier base using a wide variety of
processes. Those processes, if not controlled, can result in degradation of the end product and an associated
increase in program risk. Each manufacturer and supplier has unique systems for process control that guarantee
the integrity of the hardware.
The Space Shuttle Process Control Management Plan defines the minimum requirements for process control
related to flight hardware and critical ground support equipment for the Space Shuttle Program prime
contractors.
The following are process control standards:
Standard 1: Detect and eliminate process variability and uncoordinated changes.
Standard 2: Eliminate creep through process controls and audits.
Standard 3: Understand and reduce process risks.
Standard 4: Identify key design and manufacturing characteristics and share lessons learned relating to
processes.
Standard 5: Be personally accountable. Perform to written procedures.
Standard 6: Identify and evaluate changes to equipment and environment.
Standard 7: Capture and maintain process knowledge and skills.
Control Charts
Since variations in manufacturing process are unavoidable, the control chart tells when to leave a process alone
and thus prevent unnecessary frequent adjustments. Control charts are graphical representation and are based on
statistical sampling theory, according to which an adequate sized random sample is drawn from each lot.
Control charts detect variations in the processing and warn if there is any departure from the specified tolerance
limits. These control charts immediately tell the undesired variations and help in detecting the cause and its
removal.
In control charts, where both upper and lower values are specified for a quality characteristic, as soon as some
products show variation outside the tolerances, a review of situation is taken and corrective step is immediately
taken.
If analysis of the control chart indicates that the process is currently under control (i.e. is stable, with variation
only coming from sources common to the process) then data from the process can be used to predict the future
performance of the process. If the chart indicates that the process being monitored is not in control, analysis of
the chart can help determine the sources of variation, which can then be eliminated to bring the process back
into control. A control chart is a specific kind of run chart that allows significant change to be differentiated
from the natural variability of the process.
The control chart can be seen as part of an objective and disciplined approach that enables correct decisions
regarding control of the process, including whether or not to change process control parameters. Process
parameters should never be adjusted for a process that is in control, as this will result in degraded process
performance.
In other words, control chart is:

 A device which specifies the state of statistical control,
 A device for attaining statistical control,
 A device to judge whether statistical control has been attained or not.
Purpose and Advantages:

1. A control charts indicates whether the process is in control or out of control.
2. It determines process variability and detects unusual variations taking place in a process.
3. It ensures product quality level.
4. It warns in time, and if the process is rectified at that time, scrap or percentage rejection can be reduced.
5. It provides information about the selection of process and setting of tolerance limits.
6. Control charts build up the reputation of the organization through customer’s satisfaction.
A control chart consists of:
 Points representing a statistic (e.g., a mean, range, proportion) of measurements of a quality

characteristic in samples taken from the process at different times [the data]
 The mean of this statistic using all the samples is calculated (e.g., the mean of the means, mean of the
ranges, mean of the proportions)
 A center line is drawn at the value of the mean of the statistic
 The standard error (e.g., standard deviation/sqrt(n) for the mean) of the statistic is also calculated using
all the samples
 Upper and lower control limits (sometimes called "natural process limits") that indicate the threshold at
which the process output is considered statistically 'unlikely' are drawn typically at 3 standard errors
from the center line
The chart may have other optional features, including:
 Upper and lower warning limits, drawn as separate lines, typically two standard errors above and below
the center line
 Division into zones, with the addition of rules governing frequencies of observations in each zone
 Annotation with events of interest, as determined by the Quality Engineer in charge of the process's
quality
Types of Control Charts

X(bar) Chart
Variables or
Measurement Charts R Chart
Chart
Control charts
p chart
Attribute Charts
np Chart
C chart
U chart
Control charts can be used to measure any characteristic of a product, such as the weight of a cereal box, the
number of chocolates in a box, or the volume of bottled water. The different characteristics that can be
measured by control charts can be divided into two groups: variables and attributes.
 A control chart for variablesis used to monitor characteristics that can be measured and have a
continuum of values, such as height, weight, or volume. A soft drink bottling operation is an example of
a variable measure, since the amount of liquid in the bottles is measured and can take on a number of
different values. Other examples are the weight of a bag of sugar, the temperature of a baking oven, or
the diameter of plastic tubing.
 A control chart for attributes, on the other hand, is used to monitor characteristics that have discrete
values and can be counted. Often they can be evaluated with a simple yes or no decision. Examples
include color, taste, or smell. The monitoring of attributes usually takes less time than that of variables
because a variable needs to be measured (e.g., the bottle of soft drink contains 15.9 ounces of liquid). An
attribute requires only a single decision, such as yes or no, good or bad, acceptable or unacceptable (e.g.,
the apple is good or rotten, the meat is good or stale, the shoes have a defect or do not have a defect, the
lightbulb works or it does not work) or counting the number of defects (e.g., the number of broken
cookies in the box, the number of dents in the car, the number of barnacles on the bottom of a boat).
Control Charts for Variables vs. Charts for Attributes
A comparison of variable control charts and attribute control charts are given below:
1. Variables charts involve the measurement of the job dimensions and an item is accepted or rejected if its
dimensions are within or beyond the fixed tolerance limits; whereas as attribute chart only differentiates
between a defective item and a non-defective item without going into the measurement of its
dimensions.
2. Variables charts are more detailed and contain more information as compared to attribute charts.
3. Attribute charts, being based upon go and no go data (which is less effective as compared to measured
values) require comparatively bigger sample size.
4. Variables charts are relatively expensive because of the greater cost of collecting measured data.
5. Attribute charts are the only way to control quality in those cases where measurement of quality
characteristics is either not possible or it is very complicated and costly to do so—as in the case of
checking colour or finish of a product, or determining whether a casting contains cracks or not. In such
cases the answer is either yes or no.
Advantages of attribute control charts. Attribute control charts have the advantage of allowing for quick
summaries of various aspects of the quality of a product, that is, the engineer may simply classify products as
acceptable or unacceptable, based on various quality criteria. Thus, attribute charts sometimes bypass the need
for expensive, precise devices and time-consuming measurement procedures. Also, this type of chart tends to be
more easily understood by managers unfamiliar with quality control procedures; therefore, it may provide more
persuasive (to management) evidence of quality problems.
Advantages of variable control charts. Variable control charts are more sensitive than attribute control charts.
Therefore, variable control charts may alert us to quality problems before any actual "unacceptables" (as
detected by the attribute chart) will occur. Montgomery (1985) calls the variable control charts leading
indicators of trouble that will sound an alarm before the number of rejects (scrap) increases in the production
process.
Commonly used charts, like
1. (X-Bar) and R charts, for process control.
2. P chart, for analysis of fraction defectives
3. C chart, for control of number of defects per unit.
Mean (x-Bar) ( ) Charts

A mean control chart is often referred to as an x-bar chart. It is used to monitor changes in the mean of a
process. To construct a mean chart we first need to construct the center line of the chart. To do this we take
multiple samples and compute their means. Usually these samples are small, with about four or five
observations. Each sample has its own mean. The center line of the chart is then computed as the mean of all
sample means, where _ is the number of samples:
1. It shows changes in process average and is affected by changes in process variability.

2. It is a chart for the measure of central tendency.
3. It shows erratic or cyclic shifts in the process.
4. It detects steady progress changes, like tool wear.
5. It is the most commonly used variables chart.
6. When used along with R chart:
a. It tells when to leave the process alone and when to chase and go for the causes leading to
variation;
b. It secures information in establishing or modifying processes, specifications or inspection
procedures;
c. It controls the quality of incoming material.
7. X-Bar and R charts when used together form a powerful instrument for diagnosing quality problems.
Range (R) charts

Theseare another type of control chart for variables. Whereas x-bar charts measure shift in the central tendency
of the process, range charts monitor the dispersion or variability of the process. The method for developing and
using R-charts are the same as that for x-bar charts. The center line of the control chart is the average range, and
the upper and lower control limits are computed. The R chart is used to monitor process variability when
sample sizes are small (n<10), or to simplify the calculations made by process operators. This chart is called the
R chart because the statistic being plotted is the sample range.
1. It controls general variability of the process and is affected by changes in process variability.
2. It is a chart for measure of spread.
3. It is generally used along with X-bar chart.
Plotting of and R charts:

A number of samples of component coming out of the process are taken over a period of time. Each sample
must be taken at random and the size of sample is generally kept as 5 but 10 to15 units can be taken for
sensitive control charts. For each sample, the average value of all the measurements and the range R are
calculated. The grand average (equal to the average value of all the average ) and ( is equal to
the average of all the ranges R) are found and from these we can calculate the control limits for the and R
charts. Therefore,
Here the factors , and depend on the number of units per sample. Larger the number, the close the
limits. The value of the factors , and can be obtained from S.Q.C tables. However for ready reference
these are given below in tabular form:
Notation:
n or m= sample size
Example
Piston for automotive engine are produced by a forging process. We wish to establish statistical control of
inside diameter of the ring manufactured by this process using x and R charts.
Twenty-five samples, each of size five, have been taken when we think the process is in control. The inside
diameter measurement data from these samples are shown in table.
So,
=74.001
= 0.023
From S.Q.C tables (Fig.3) for sample size 5
=0.58, =2.11 and =0

UCL = +
= 74.001+ 0.58(0.023)
= 74.01434
LCL = --
= 74.001- 0.58(0.023)
= 73.98766
UCL (R chart) =
= 2.11*0.023
= 0.04853
LCL (R chart) =
= 0*0.023
=0
Now and R charts are plotted on the plot as shown in Fig.1 and Fig.2
Fig.1: Chart
Fig.2: R Chart
Inference:
In the chart, all of the time the plotted points representing average are well within the control limits but if
some samples fall outside the control limits then it means something has probably gone wrong or is about to go
wrong with the process and a check is needed to prevent the appearance of defective products.
Fig.3
Process out of control:

After computing the control limits, the next step is to determine whether the process is in statistical control or
not. If not, it means there is an external cause that throws the process out of control. This cause must be traced
or removed so that the process may return to operate under stable statistical conditions. The various reasons for
the process being out of control may be:
1. Faulty tools
2. Sudden significant change in properties of new materials in a new consignment
3. Breakout of lubrication system
4. Faults in timing of speed mechanisms.
Process in control:
If the process is found to be in statistical control, a comparison between the required specifications and the
process capability may be carried out to determine whether the two are compatible.
Conclusions:
When the process is not in control then then the point fall outside the control limits on either or R charts. It
means assignable causes (human controlled causes) are present in the process. When all the points are inside the
control limits even then we cannot definitely say that no assignable cause is present but it is not economical to
trace the cause. No statistical test can be applied. Even in the best manufacturing process, certain errors may
develop and that constitute the assignable causes but no statistical action can be taken.
Control Charts for Attributes:
Control charts for attributes are used to measure quality characteristics that are counted rather than measured.
Attributes are discrete in nature and entail simple yes-or-no decisions. For example, this could be the number of
nonfunctioning lightbulbs, the proportion of broken eggs in a carton, the number of rotten apples, the number of
scratches on a tile, or the number of complaints issued. Two of the most common types of control charts for
attributes are p-charts and c-charts.
P-charts are used to measure the proportion of items in a sample that are defective. Examples are the
proportion of broken cookies in a batch and the proportion of cars produced with a misaligned fender. P-charts
are appropriate when both the number of defectives measured and the size of the total sample can be counted. A
proportion can then be computed and used as the statistic of measurement.
1. It can be a fraction defective chart.
2. Each item is classified as good (non-defective) or bad (defective).
3. This chart is used to control the general quality of the component parts and it checks if the fluctuations
in product quality (level) are due to chance alone.
Plotting of P-charts: By calculating, first, the fraction defective and then the control limits.
The process is said to be in control if fraction defective values fall within the control limits. In case the process
is out of control an investigation to hunt for the cause becomes necessary.
Usually the Z value is equal to 3 (as was used in the X and R charts), since the variations within three standard
deviations are considered as natural variations. However, the choice of the value of Z depends on the
environment in which the chart is being used, and on managerial judgment.
C-charts count the actual number of defects. For example, we can count the number of complaints from
customers in a month, the number of bacteria on a petri dish, or the number of barnacles on the bottom of a
boat. However, we cannot compute the proportion of complaints from customers, the proportion of bacteria on a
petri dish, or the proportion of barnacles on the bottom of a boat.
Defective items vs individual defects

The literature differentiates between defect and defective, which is the same as differentiating between
nonconformity and nonconforming units. This may sound like splitting hairs, but in the interest of clarity let's try
to unravel this man-made mystery.
Consider a wafer with a number of chips on it. The wafer is referred to as an "item of a product". The chip may
be referred to as "a specific point". There exist certain specifications for the wafers. When a particular wafer
(e.g., the item of the product) does not meet at least one of the specifications, it is classified as a nonconforming
item. Furthermore, each chip, (e.g., the specific point) at which a specification is not met becomes a defect or
nonconformity.
So, a nonconforming or defective item contains at least one defect or nonconformity. It should be pointed out
that a wafer can contain several defects but still be classified as conforming. For example, the defects may be
located at noncritical positions on the wafer. If, on the other hand, the number of the so-called "unimportant"
defects becomes alarmingly large, an investigation of the production of these wafers is warranted.
Control charts involving counts can be either for the total number of nonconformities (defects) for the sample of
inspected units, or for the average number of defects per inspection unit.
Defect vs. Defective
• ‘Defect’ – a single nonconforming quality characteristic.
• ‘Defective’ – items having one or more defects.
C charts can be plotted by using the following formulas:
UCL  c  3 c
LCL  c  3 c
The primary difference between using a p-chart and a c-chart is as follows.
A P-chart is used when both the total sample size and the number of defects can be computed.
A C-chart is used when we can compute only the number of defects but cannot compute the proportion that is
defective.
Acceptance Sampling:
“Acceptance Sampling is concerned with the decision to accept a mass of manufactured items as conforming to
standards of quality or to reject the mass as non-conforming to quality. The decision is reached through
sampling.” - SIMPSON AND KAFKA
For the purpose of acceptance, inspection is carried out at many stages in the process of manufacturing. These
stages may be: inspection of incoming materials and parts, process inspection at various points in the
manufacturing operations, final inspection by a manufacturer of his own product and finally inspection of the
finished product by the purchaser.
Inspection for acceptance is generally carried out on a sampling basis. The use of sampling inspection to decide
whether or not to accept the lot is known as Acceptance Sampling. A sample from the inspection lot is
inspected, and if the number of defective items is more than the stated number known as acceptance number,
the whole lot is rejected.
The purpose of Acceptance Sampling is, therefore a method used to make a decision as to whether to accept or
to reject lots based on inspection of sample(s).
Incoming Inspection Accepted Lot Outgoing Quality

Quality Station
Rejected lot
Subjected to cent
Percent inspection
Replacement of substandard items by

Prepared by: Dr. Vandana Mittal,Dr.Ansar-Ul-Haque,Dr.Raj Kumari,Ms
good ones from assemblies and Surat Pyari & Ms Anuja Agarwal
rejection
of individual defective item
Acceptance sampling is the process of randomly inspecting a sample of goods and deciding whether to accept
the entire lot based on the results. Acceptance sampling determines whether a batch of goods should be
accepted or rejected.
Role of Acceptance Sampling:
Acceptance Sampling is very widely used in practice due to the following merits:
1. Acceptance Sampling is much less expensive than 100 percent inspection.
2. It is general experience that 100 percent inspection removes only 82 to 95 percent of defective material.
Very good 100 percent inspection may remove at the most 99 percent of the defectives, but still cannot
reach the level of 100 percent. Due to the effect of inspection fatigue involved in 100 percent inspection,
a good sampling plan may actually give better results than that achieved by 100 percent inspection.
3. Because of its economy, it is possible to carry out sample inspection at various stages.
Inspection provides a means for monitoring quality. For example, inspection may be performed on incoming
raw material, to decide whether to keep it or return it to the vendor if the quality level is not what was agreed
on. Similarly, inspection can also be done on finished goods before deciding whether to make the shipment to
the customer or not. However, performing 100% inspection is generally not economical or practical, therefore,
sampling is used instead.
Acceptance Sampling is therefore a method used to make a decision as to whether to accept or to reject lots
based on inspection of sample(s). The objective is not to control or estimate the quality of lots, only to pass a
judgment on lots.
Using sampling rather than 100% inspection of the lots brings some risks both to the consumer and to the
producer, which are called the consumer's and the producer's risks, respectively. We encounter making
decisions on sampling in our daily affairs.
Risks in Acceptance sampling

1. Producer’s risk-: Sometimes inspite of good quality, the sample taken may show defective units as such
the lot will be rejected, such type of risk is known as producer’s risk.
2. Consumer’s Risk-: Sometimes the quality of the lot is not good but the sample results show good quality
units as such the consumer has to accept a defective lot, such a risk is known as consumer’s risk.
Acceptance Sampling Plans:

A sampling plan is a plan for acceptance sampling that precisely specifies the parameters of the sampling
process and the acceptance/rejection criteria. The variables to be specified include the size of the lot (N), the
size of the sample inspected from the lot (n), the number of defects above which a lot is rejected (c), and the
number of samples that will be taken.
There are different types of sampling plans.
- Single Sampling (Inference made on the basis of only one sample)

- Double Sampling (Inference made on the basis of one or two samples)
- Sequential Sampling (Additional samples are drawn until an inference can be made) etc.
Single Sampling Plans

In this,a random sample is drawn from every lot. Each item in the sample is examined and is labeled as either
“good” or “bad.” Depending on the number of defects or “bad” items found, the entire lot is either accepted or
rejected. For example, a lot size of 50 cookies is evaluated for acceptance by randomly inspecting 10 cookies
from the lot. The cookies may be inspected to make sure they are not broken or burned. If 4 or more of the 10
cookies inspected are bad, the entire lot is rejected. In this example, the lot size N _ 50, the sample size n_ 10,
and the maximum number of defects at which a lot is accepted is c _ 4. These parameters define the acceptance
sampling plan.
Double Sampling Plan:

This provides an opportunity to sample the lot a second time if the results of the first sample are inconclusive.
In double sampling we first sample a lot of goods according to preset criteria for definite acceptance or
rejection. However, if the results fall in the middle range,they are considered inconclusive and a second sample
is taken. For example, a water treatment plant may sample the quality of the water ten times in random intervals
throughout the day. Criteria may be set for acceptable or unacceptable water quality, such as .05 percent
chlorine and .1 percent chlorine. However, a sample of water containing between .05 percent and .1 percent
chlorine is inconclusive and calls for a second sample of water.
Multiple Sampling Plan:

Multiple sampling plans are similar to double sampling plans except that criteria are set for more than two
samples. The decision as to which sampling plan to select has a great deal to do with the cost involved in
sampling, the time consumed by sampling, and the cost of passing on a defective item. In general, if the cost of
collecting a sample is relatively high, single sampling is preferred. An extreme example is collecting a biopsy
from a hospital patient. Because the actual cost of getting the sample is high, we want to get a large sample and
sample only once. The opposite is true when the cost of collecting the sample is low but the actual cost of
testing is high. This may be the case with a water treatment plant, where collecting the water is inexpensive but
the chemical analysis is costly. In this section we focus primarily on single sampling plans.
An Introduction to Total Quality Management (TQM)
At its core, Total Quality Management (TQM) is a management approach to long-term success through
customer satisfaction.
In a TQM effort, all members of an organization participate in improving processes, products, services and the
culture in which they work.
Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will
meet or exceed customer expectations. This can be achieved by integrating all quality-related functions and
processes throughout the company. TQM looks at the overall quality measures used by a company including
managing quality design and development, quality control and maintenance, quality improvement, and quality
assurance. TQM takes into account all quality measures taken at all levels and involving all company
employees.
TQM can be defined as the management of initiatives and procedures that are aimed at achieving the delivery of
quality products and services.
Principles of TQM
A number of key principles can be identified in defining TQM, including:
 Executive Management – Top management should act as the main driver for TQM and create an
environment that ensures its success.
 Training – Employees should receive regular training on the methods and concepts of quality.
 Customer Focus – Improvements in quality should improve customer satisfaction.
 Decision Making – Quality decisions should be made based on measurements.
 Methodology and Tools – Use of appropriate methodology and tools ensures that non-conformances are
identified, measured and responded to consistently.
 Continuous Improvement – Companies should continuously work towards improving manufacturing and
quality procedures.
 Company Culture – The culture of the company should aim at developing employees ability to work
together to improve quality.
 Employee Involvement – Employees should be encouraged to be pro-active in identifying and
addressing quality related problems.
A core concept in implementing TQM is Deming’s 14 points, a set of management practices to help companies
increase their quality and productivity:
1. Create constancy of purpose for improving products and services.

2. Adopt the new philosophy.
3. Cease dependence on inspection to achieve quality.
4. End the practice of awarding business on price alone; instead, minimize total cost by working with a
single supplier.
5. Improve constantly and forever every process for planning, production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations and targets for the workforce.
11. Eliminate numerical quotas for the workforce and numerical goals for management.
12. Remove barriers that rob people of pride of workmanship, and eliminate the annual rating or merit
system.
13. Institute a vigorous program of education and self-improvement for everyone.
14. Put everybody in the company to work accomplishing the transformation.
Team Approach
TQM stresses that quality is an organizational effort. To facilitate the solving of quality problems, it places
great emphasis on teamwork. The use of teams is based on the old adage that “two heads are better than
one.”Using techniques such as brainstorming, discussion, and quality control tools, teams work regularly to
correct problems. The contributions of teams are considered vital to the success of the company. For this reason,
companies set aside time in the workday for team meetings.
Teams vary in their degree of structure and formality, and different types of teams solve different types of
problems. One of the most common types of teams is the quality circle, a team of volunteer production
employees and their supervisors whose purpose is to solve quality problems. The circle is usually composed of
eight to ten members, and decisions are made through group consensus. The teams usually meet weekly during
work hours in a place designated for this purpose. They follow a preset process for analyzing and solving
quality problems. Open discussion is promoted, and criticism is not allowed. Although the functioning of
quality circles is friendly and casual, it is serious business. Quality circles are not mere “gab sessions.” Rather,
they do important work for the company and have been very successful in many firms.
The seven tools of Quality Control:
1. Cause and effect analysis

2. Flowcharts
3. Checklists
4. Control techniques including Statistical quality control and control charts.
5. Scatter diagram
6. Pareto analysis which means identification of vital few from many at a glance. This is used for fixing the
priorities in tackling a problem.
7. Histograms.
Cause-and-Effect Diagrams
Cause-and-effect diagrams are charts that identify potential causes for particular quality problems. They are
often called fishbone diagrams because they look like the bones of a fish. A general cause-and-effect diagram is
shown in Figure 5-8. The “head” of the fish is the quality problem, such as damaged zippers on a garment or
broken valves on a tire. The diagram is drawn so that the “spine” of the fish connects the “head” to the possible
cause of the problem. These causes could be related to the machines, workers, measurement, suppliers,
materials, and many other aspects of the production process. Each of these possible causes can then have
smaller “bones” that address specific issues that relate to each cause. For example, a problem with machines
could be due to a need for adjustment, old equipment, or tooling problems. Similarly, a problem with workers
could be related to lack of training, poor supervision, or fatigue.
Cause-and-effect diagrams are problem-solving tools commonly used by quality control teams. Specific causes
of problems can be explored through brainstorming.
The development of a cause-and-effect diagram requires the team to think through all the possible causes of
poor quality.
Flowcharts
A flowchart is a schematic diagram of the sequence of steps involved in an operation or process. It provides a
visual tool that is easy to use and understand.
By seeing the steps involved in an operation or process, everyone develops a clear picture of how the operation
works and where problems could arise.
Checklists
A checklist is a list of common defects and the number of observed occurrences of these defects. It is a simple
yet effective fact-finding tool that allows the worker to collect specific information regarding the defects
observed. The checklist in Figure 5-7 shows four defects and the number of times they have been observed.
It is clear that the biggest problem is ripped material. This means that the plant needs to focus on this specific
problem—for example, by going to the source of supply or seeing whether the material rips during a particular
production process.
A checklist can also be used to focus on other dimensions, such as location or time.
For example, if a defect is being observed frequently, a checklist can be developed that measures the number of
occurrences per shift, per machine, or per operator. In this fashion we can isolate the location of the particular
defect and then focus on correcting the problem.
Control Charts
Control charts are a very important quality control tool. We will study the use of control charts at great length in
the next chapter. These charts are used to evaluate whether a process is operating within expectations relative to
some measured value such as weight, width, or volume. For example, we could measure the weight of a sack of
flour, the width of a tire, or the volume of a bottle of soft drink.When the production process is operating within
expectations, we say that it is “in control.”
To evaluate whether or not a process is in control, we regularly measure the variable of interest and plot it on a
control chart. The chart has a line down the center representing the average value of the variable we are
measuring. Above and below the center line are two lines, called the upper control limit (UCL) and the lower
control limit (LCL). As long as the observed values fall within the upper and lower control limits, the process is
in control and there is no problem with quality. When a measured observation falls outside of these limits, there
is a problem.
Scatter Diagrams
Scatter diagrams are graphs that show how two variables arerelated to one another. They are particularly useful
in detecting the amount of correlation, or the degree of linear relationship, between two variables. For example,
increased production speed and number of defects could be correlated positively; as production speed increases,
so does the number of defects. Two variables could also be correlated negatively, so that an increase in one of
the variables is associated with a decrease in the other. For example, increased worker training might be
associated with a decrease in the number of defects observed.
The greater the degree of correlation, the more linear are the observations in the scatter diagram. On the other
hand, the more scattered the observations in the diagram, the less correlation exists between the variables. Of
course, other types of relationships can also be observed on a scatter diagram, such as an inverted. This may be
the case when one is observing the relationship between two variables such as oven temperature and number of
defects, since temperatures below and above the ideal could lead to defects.
Pareto Analysis
Pareto analysis is a technique used to identify quality problems based on their degree of importance. The logic
behind Pareto analysis is that only a few quality problems are important, whereas many others are not critical.
The technique was named after Vilfredo Pareto, a nineteenth-century Italian economist who determined that
only a small percentage of people controlled most of the wealth. This concept has often been called the 80–20
rule and has been extended too many areas. In quality management the logic behind Pareto’s principle is that
most quality problems are a result of only a few causes. The trick is to identify these causes.
One way to use Pareto analysis is to develop a chart that ranks the causes of poor quality in decreasing order
based on the percentage of defects each has caused. For example, a tally can be made of the number of defects
that result from different causes, such as operator error, defective parts, or inaccurate machine calibrations.
Percentages of defects can be computed from the tally and placed in a chart like those shown in Figure 5-7.We
generally tends to find that a few causes account for most of the defects.
Histograms
A histogram is a chart that shows the frequency distribution of observed values of a variable. We can see from
the plot what type of distribution a particular variable displays, such as whether it has a normal distribution and
whether the distribution is symmetrical.
In the food service industry the use of quality control tools is important in identifying quality problems. Grocery
store chains, such as Kroger and Meijer, must record and monitor the quality of incoming produce, such as
tomatoes and lettuce. Quality tools can be used to evaluate the acceptability of product quality and to monitor
product quality from individual suppliers. They can also be used to evaluate causes of quality problems, such as
long transit time or poor refrigeration.
Similarly, restaurants use quality control tools to evaluate and monitor the quality of delivered goods, such as
meats, produce, or baked goods.
ISO 9000 Standards
Increases in international trade during the 1980s created a need for the development of universal standards of
quality. Universal standards were seen as necessary in order for companies to be able to objectively document
their quality practices around the world. Then in 1987 the International Organization for Standardization (ISO)
published its first set of standards for quality management called ISO 9000. The International
Organization for Standardization (ISO) is an international organization whose purpose is to establish agreement
on international quality standards. It currently has members from 91 countries, including the United States. To
develop and promote international quality standards, ISO 9000 has been created. ISO 9000 consists of a set of
standards and a certification process for companies. By receiving ISO 9000 certification, companies
demonstrate that they have met the standards specified by the ISO.
The standards are applicable to all types of companies and have gained global acceptance. In many industries
ISO certification has become a requirement for doing business. Also, ISO 9000 standards have been adopted by
the European Community as a standard for companies doing business in Europe.
In December 2000 the first major changes to ISO 9000 were made, introducing the following three new
standards:
• ISO 9000:2000–Quality Management Systems–Fundamentals and Standards: Provides the terminology and
definitions used in the standards. It is the starting point for understanding the system of standards.
• ISO 9001:2000–Quality Management Systems–Requirements: This is the standard used for the certification of
a firm’s quality management system. It is used to demonstrate the conformity of quality management systems to
meet customer requirements.
• ISO 9004:2000–Quality Management Systems–Guidelines for Performance: Provides guidelines for
establishing a quality management system. It focuses not only on meeting customer requirements but also on
improving performance.
These three standards are the most widely used and apply to the majority of companies.
However, ten more published standards and guidelines exist as part of the ISO 9000 family of standards.
To receive ISO certification, a company must provide extensive documentation of its quality processes. This
includes methods used to monitor quality, methods and frequency of worker training, job descriptions,
inspection programs, and statistical process-control tools used. High-quality documentation of all processes is
critical.
The company is then audited by an ISO 9000 registrar who visits the facility to make sure the company has a
well-documented quality management system and that the process meets the standards. If the registrar finds that
all is in order, certification is received.
Once a company is certified, it is registered in an ISO directory that lists certified companies. The entire process
can take 18 to 24 months and can cost anywhere from $10,000 to $30,000. Companies have to be recertified by
ISO every three years.
One of the shortcomings of ISO certification is that it focuses only on the process used and conformance to
specifications. In contrast to the Baldrige criteria, ISO certification does not address questions about the product
itself and whether it meets customer and market requirements. Today there are over 40,000 companies that are
ISO certified. In fact, certification has become a requirement for conducting business in many industries.
ISO 14000 Standards

The need for standardization of quality created an impetus for the development of other standards. In 1996 the
International Standards Organization introduced standards for evaluating a company’s environmental
responsibility. These standards, termed ISO 14000, focus on three major areas:
• Management systems standards measure systems development and integration of environmental responsibility
into the overall business.
• Operations standards include the measurement of consumption of natural resources and energy.
• Environmental systems standards measure emissions, effluents, and other waste systems.
With greater interest in green manufacturing and more awareness of environmental concerns, ISO 14000 may
become an important set of standards for promoting environmental responsibility.
V unit-
Environmental Issues: Environmental Pollution – various management techniques to control Environmental
pollution – Various control acts for Air, Water, Solid waste and Noise pollution.
Introduction Environmental pollution had been a fact of life for many centuries
but it became a real problem since the start of the industrial revolution.
Environment refers to the ecological, economic, political, and social and technology considerations that impact
on engineering and in turn are impacted by the results of engineering.
Detrimental effects of increased waste and water and air pollution are controlled through the implementation of
environmental specifications and standards, which in turn place more stringent constraints on future technology.
Ecology
In general ecology pertains to the study of relationship between various organisms and their environment. This
includes consideration of plant, animal and human populations in terms of rate of population growth, food
habits, living habits, reproductive habits and ultimate death.
The ecology study of man may be divided in to two fields:
1. Human ecology, which studies the relationship between human biological factors and the natural
environment.
2. Social ecology, which studies the relationship among natural environment, population, technology and
society.
Environmental Pollution
Although pollution had been known to exist for a very long time (at least since people started using fire
thousands of years ago), it had seen the growth of truly global proportions only since the onset of the industrial
revolution during the 19th century.
Environmental pollution is a problem both in developed and developing countries. Factors such as population
growth and urbanization invariably place greater demands on the planet and stretch the use of natural resources
to the maximum.
It’s interesting to note that natural resources had been stored virtually untouched in the Earth for millions of
years. But since the start of the industrial revolution vast amounts of these resources had been exploited within a
period of just a couple of hundred of years at unimaginable rates, with all the waste from this exploitation going
straight in to the environment (air, water, land) and seriously damaging its natural processes.
Definitions:
Environmental Pollution is “the contamination of the physical and biological components of the
earth/atmosphere system to such an extent that normal environmental processes are adversely affected”. (1)
Pollution is the introduction of contaminants into the environment that cause harm or discomfort to humans or
other living organisms, or that damage the environment” which can come “in the form of chemical substances,
or energy such as noise, heat or light”. “Pollutants can be naturally occurring substances or energies, but are
considered contaminants when in excess of natural levels.”
“Any use of natural resources at a rate higher than nature's capacity to restore itself can result in pollution of air,
water, and land.”
Pollution is habitat contamination”.
In one word, environmental pollution takes place when the environment cannot process and neutralize harmful
by-products of human activities (for example, poisonous gas emissions) in due course without any structural or
functional damage to its system.
Pollution occurs, on the one hand, because the natural environment does not know how to decompose the
unnaturally generated elements (i.e., anthropogenic pollutants), and, on the other, there is a lack of knowledge
on the part of humans on how to decompose these pollutants artificially.
Why does pollution matter?
It matters first and foremost because it has negative impacts on crucial environmental services such as provision
of clean air and clean water (and many others) without which life on Earth as we know it would not exist.
Sources of Environmental Pollution

Fossil Fuel Sources of Environmental Pollution
In modern industrialized societies, fossil fuels (oil, gas, coal) transcended virtually all imaginable barriers and
firmly established themselves in our everyday lives.
Not only do we use fossil fuels for our obvious everyday needs (such as filling a car), as well as in the power-
generating industry, they (specifically oil) are also present in such products as all sorts of plastics, solvents,
detergents, asphalt, lubricating oils, a wide range of chemicals for industrial use, etc.
Combustion of fossil fuels produces extremely high levels of air pollution and is widely recognized as one of
the most important “target” areas for reduction and control of environmental pollution. Fossil fuels also
contribute to soil contamination and water pollution.
Power-generating plants and transport are probably the biggest sources of fossil fuel pollution.
Common sources of fossil fuel pollution are:
Industry:
 Power-generating plants
 Petroleum refineries
 Petrochemical plants
 Production and distribution of fossil fuels
 Other manufacturing facilities
Transport:
 Road transport (motor vehicles)

 Shipping industry
 Aircraft
Fossil fuel combustion is also a major source of carbon dioxide (CO2) emissions and perhaps the most
important cause of global warming. Learn more about the causes and effects of global warming here.
Other (Non-Fossil Fuel) Sources of Environmental Pollution

Among other pollution sources, agriculture (livestock farming) is worth mentioning as the largest generator of
ammonia emissions resulting in air pollution. Chemicals such as pesticides and fertilizers are also widely used
in agriculture, which may lead water pollution and soil contamination as well.
Trading activities may be another source of pollution.
For example, it’s been recently noted that packaging of products sold in supermarkets and other retail outlets is
far too excessive and generates large quantities of solid waste that ends up either in landfills or municipal
incinerators leading to soil contamination and air pollution.
Residential sector is another significant source of pollution generating solid municipal waste that may end up in
landfills or incinerators leading to soil contamination and air pollution.
Factors Causing/affecting Environment Pollution
 Population Density,
 Degree of recycling,
 Standard of living,
 Technology,
 Amount of waste treatment
Environmental Pollution Effects on Humans, Other Animals & Plants
There is no doubt that excessive levels of pollution are causing a lot of damage to human & animal health,
plants & trees (including tropical rainforests) as well as the wider environment.
All types of environmental pollution – air, water and soil pollution – have an impact on the living environment.
The effects in living organisms may range from mild discomfort to serious diseases such as cancer to physical
deformities (for example, extra or missing limbs in frogs).
Experts admit that environmental pollution effects are quite often underestimated and that more research is
needed to understand the connections between pollution and its effects on all life forms.
Environmental Pollution Effects on Humans

We know that pollution causes not only physical disabilities but also psychological and behavioral disorders in
people.
We are discussing the effects of air pollution and specific air pollutants in more detail in the Air Pollutants
article.
The following effects of environmental pollution on humans have been reported:
Effects of Pollution on Human Health
 Respiratory Diseases,
 Physical Disability,
 Skin Diseases,
 Diseases of Lungs,
 Poisoning,
 Mantel Disorders,
 Disorders due to Repeated Trauma.
How can we control environmental pollution?
It's clear that fossil fuels are among the biggest sources of pollution. We need to find alternative renewable
sources of energy which can replace fossil fuels in the future.
Green investment provides a great platform to explore and develop new and clean sources of energy such as
solar electricity.
Building your own solar panels and using diy solar energy systems to meet at least part of your home electricity
needs is another emerging opportunity for diy enthusiasts. This can really make a positive difference to the
environment and reduce current pollution levels.
Types of Environmental Pollution

There are four major types of environmental pollution:
 Air pollution
 Water pollution
 Soil pollution (contamination)
 Noise Pollution
Air pollution:
Air pollution may be defind as any gaseous, liquid or solid material suspended in the air which creates an
undesirable effect. Air pollution is injurious to life and property. In other words, Air pollution is the
introduction of chemicals, particulate matter, or biological materials that cause harm or discomfort to humans or
other living organisms, or cause damage to the natural environment or built environment, into the atmosphere.
The atmosphere is a complex dynamic natural gaseous system that is essential to support life on planet Earth.
Stratospheric ozone depletion due to air pollution has long been recognized as a threat to human health as well
as to the Earth's ecosystems.
Air Pollutants:
Some of the most important air pollutants are sulfur dioxide, nitrogen dioxide, carbon monoxide, ozone,
volatile organic compounds (VOCs) and airborne particles, with radioactive pollutants probably among the
most destructive ones (specifically when produced by nuclear explosions).
Sources of Air Pollution:

1. Harmful Gases:
 Carbon dioxide is one the main pollutants that causes air pollution. This gas is harmful when emitted from other
sources, which are caused due to human activity. Carbon dioxide gas is used in various industries such as the oil
industry and the chemical industry. The manufacturing process of most products would require the use of this gas.
There are various human activities that add to the increased proportions of carbon dioxide in the atmosphere. The
combustion of fossil fuels and the harmful effects of deforestation have all contributed towards the same. Many
researches show that amongst the various gasses emitted during a volcanic eruption, carbon dioxide remains to be
at least 40% of the emission. Scientists have now therefore identified carbon dioxide as one of those elements that
have contributed to global warming.
 The combustion of fuels in automobiles,
 Jet planes etc all cause the release of several primary pollutants into the air. The burning of fossil fuels in big
cities which is seen at most factories, offices and even a large number of homes, it is no wonder that air pollution
is increasing at an alarming rate. The release of other harmful gases all adds to the state that we see today.
Although carbon dioxide plays an important role in various other processes like photosynthesis, breathing an
excess of the same also causes harmful effects towards one’s health.
 Carbon monoxide is another such gas which, although was present in the atmosphere earlier, is now considered to
be a major pollutant. An excess of the same has a harmful effect on our system. There are many reasons why
carbon monoxide can be released into the atmosphere as a result of human activities. This is also produced due to
any fuel burning appliance and appliances such as gas water heaters, fireplaces, woodstoves, gas stoves, gas
dryers, yard equipments as well as automobiles, which add to the increased proportion of this gas into the
atmosphere.
 Sulfur dioxide is yet another harmful pollutant that causes air pollution. Sulfur dioxide is emitted largely to the
excessive burning of fossil fuels, petroleum refineries, chemical and coal burning power plants etc. Nitrogen
dioxide when combined with sulfur dioxide can even cause a harmful reaction in the atmosphere that can cause
acid rain.
 Nitrogen dioxide is one more gas that is emitted into the atmosphere as a result of various human activities. An
excess of nitrogen dioxide mainly happens due to most power plants seen in major cities, the burning of fuels due
to various motor vehicles and other such sources, whether industrial or commercial that cause the increase in the
levels of nitrogen dioxide.
These and a number of other hazardous air pollutants are emitted with the various numbers of activities that we
carry out during the day which are the main causes of air pollution.
2. Factory Chimneys
3. Home Furnaces
4. Burning Refuse
5. Burning fuel for light. Heat, power and transportation,
6. Gaseous emissions from automobiles.
Effects of Air Pollution:

 Irritation of eyes, nose, mouth and throat
 Reduced lung functioning
 Asthma attacks
 Respiratory symptoms such as coughing and wheezing
 Increased respiratory disease such as bronchitis
 Reduced energy levels
 Headaches and dizziness
 Disruption of endocrine, reproductive and immune systems
 Neurobehavioral disorders
 Cardiovascular problems
 Cancer
 Premature death
 Air pollution is responsible for Visibility reduction produced by the scattering of light from the surfaces of
air-borne particles.
 Material Damage to structural metals, surface coatings, fabrics and other materials is a frequent and
widespread effect of air pollution.
 Air pollution is also responsible for Agricultural damage. A large number of food, forage and crops have
been shown to be damaged by air pollutants.
 Physiological effects on Man and Domestic Animals like lung carcinoma, optic irritation, changes in blood
chemistry etc.
 Psychological Effects.
 Many diseases could be caused by air pollution without their becoming apparent for a long time. Diseases
such as bronchitis, lung cancer, and heart disease may all eventually appear in people exposed to air
pollution.
 Air pollutants such as ozone, nitrogen oxides, and sulfur dioxide also have harmful effects on natural
ecosystems. They can kill plants and trees by destroying their leaves, and can kill animals, especially fish
in highly polluted rivers.
Prevention of Air Pollution
 Carpool- This will help to reduce the number of vehicles on the already congested roads.
 Always keep your car tuned properly so that it remains in a good condition.
 Save energy- Try to use minimum amounts of natural gas and even electricity. Whenever possible, avoid
the use of air conditioner and use a fan instead.
 Always buy recycled products.
 Reuse things such as paper and plastic bags, paper etc. This will contribute a lot towards reducing the
effects of air pollution and global warming.
 Avoid the use of firecrackers. You don’t really need it to express your feeling of happiness.
 Go in for water-based paints instead of varnishes.
 If you really cannot avoid using your car, plan your work systematically to reduce air pollution.
Water pollution
It may be defined as something that adversely and unreasonably impairs the beneficial use of water. It includes
addition of anything to water which changes the natural quality of water so that the downstream user does not
receive the natural water of the stream.
Water pollution may also be defined as the addition to a natural body of water of any material which diminishes
the optimal economic use of the water by the population which it serves.
Classification of Water Pollutants
These may be classified into the following categories:
A. Chemical Pollutants
These may be organic and inorganic pollutants. The major consideration with respect to organic materials is the
depletion of dissolved oxygen. Oil will form surface films, phenols will affect the taste and odor of water and
refractory organics will cause death of fish and other aquatic life. Undesirable results from the discharge of
inorganic materials include changes in the PH of the water caused by soluble salts and toxicity caused by heavy
metals or other toxic materials.
B. Physical Pollutants
These include the following:
(a) Color (b) Turbidity (c) Temperature (d) Suspended Solids (e) Foam (f) Radio-Activity.
C. Physiological Pollutants
Undesirable taste and odor present in water used for drinking or food processing is objectionable to the
consumer. Taste and odor of water can easily change if chlorophenols is present in it, even in every small
quantities.
D. Biological Pollutants
The single most important process in the water treatment plant is disinfections, which helps insure the absence
of pathogenic organisms in the drinking water. These pollutants cause bacterial bone diseases, amoebic
dysentery, cholera etc.
E. Radioactive Pollutants
The discharge of radioactive waste material into a receiving body.
Other Water pollutants include insecticides and herbicides, food processing waste, pollutants from livestock
operations, volatile organic compounds (VOCs), heavy metals, chemical waste and others.
ADDITIONAL FORMS OF WATER POLLUTION
Three last forms of water pollution exist in the forms of petroleum, radioactive substances, and heat.
Petroleum often pollutes waterbodies in the form of oil, resulting from oil spills. The previously mentioned
Exxon Valdez is an example of this type of water pollution. These large-scale accidental discharges of
petroleum are an important cause of pollution along shore lines. Besides the supertankers, off-shore drilling
operations contribute a large share of pollution. One estimate is that one ton of oil is spilled for every million
tons of oil transported. This is equal to about 0.0001 percent. Radioactive substances are produced in the form
of waste from nuclear power plants, and from the industrial, medical, and scientific use of radioactive
materials. Specific forms of waste are uranium and thorium mining and refining. The last form of water
pollution is heat. Heat is a pollutant because increased temperatures result in the deaths of many aquatic
organisms. These decreases in temperatures are caused when a discharge of cooling water by factories and
power plants occurs.
Causes of Water Pollution

Farmers often use chemicals to hinder bug infestations or other diseases from damaging or ruining their
crops. They may also use chemicals to enhance the growth of their crops. Either way, these chemicals seep
into the ground water or run off into lakes, creeks, or rivers, causing water pollution.
Farmland that is irrigated and treated with chemicals in the form of fertilizers or pesticides is a major
contributor to water pollution.
Industrial processes produce toxic waste containing heavy metals. When heavy metals filter into water, they
are fatal to marine life. Shellfish and fresh fish are staple menu items for people around the world.
Humans are affected by the heavy metals ingested by the fish and shellfish, causing health problems and
sometimes death. The heavy metals in water have also been linked to severe birth defects, a damaged or
suppressed immune system, cancer, fertility problems, and developmental problems in children.
The construction industry is also at fault for contaminating our water resources with cement, lubricants,
plastics and metals. Rivers and lakes are also polluted from heavy silt or sediment run-off from construction
sites.
Wastewater Treatment
Raw sewage includes waste from sinks, toilets, and industrial processes. Treatment of the sewage is required before it can
be safely buried, used, or released back into local water systems. In a treatment plant, the waste is passed through a series
of screens, chambers, and chemical processes to reduce its bulk and toxicity. The three general phases of treatment are
primary, secondary, and tertiary. During primary treatment, a large percentage of the suspended solids and inorganic
material is removed from the sewage. The focus of secondary treatment is reducing organic material by accelerating
natural biological processes. Tertiary treatment is necessary when the water will be reused; 99 percent of solids are
removed and various chemical processes are used to ensure the water is as free from impurity as possible.
Agriculture, including commercial livestock and poultry farming, is the source of many organic and inorganic pollutants
in surface waters and groundwater. These contaminants include both sediment from erosion cropland and compounds of
phosphorus and nitrogen that partly originate in animal wastes and commercial fertilizers. Animal wastes are high in
oxygen demanding material, nitrogen and phosphorus, and they often harbor pathogenic organisms. Wastes from
commercial
feeders are contained and disposed of on land; their main threat to natural waters, therefore, is from runoff and leaching.
Control may involve settling basins for liquids, limited biological treatment in aerobic or anaerobic lagoons, and a variety
of other methods.
Sources of Water Pollution
 Domestic Life
 Industry
 Agriculture
 Wildlife Watering
 Propagation of Fish and other aquatic life
 Swimming and bathing pools
 Boating poands/lakes
 Water power generation
 Transport etc.
Major Effects of Water Pollution

The effects of water pollution are numerous (as seen above). Some water pollution effects are recognized
immediately, whereas others don’t show up for months or years. Additional effects of water pollution include:
1) The food chain is damaged. When toxins are in the water, the toxins travel from the water the animals drink
to humans when the animals’ meat is eaten.
2) Diseases can spread via polluted water. Infectious diseases such as typhoid and cholera can be contracted
from drinking contaminated water. This is called microbial water pollution. The human heart and kidneys can
be adversely affected if polluted water is consumed regularly. Other health problems associated with polluted
water are poor blood circulation, skin lesions, vomiting, and damage to the nervous system. In fact, the effects
of water pollution are said to be the leading cause of death for humans across the globe.
3) Acid rain contains sulfate particles, which can harm fish or plant life in lakes and rivers.
4) Pollutants in the water will alter the overall chemistry of the water, causing changes in acidity,
temperature and conductivity. These factors all have an affect on the marine life.
5) Marine food sources are contaminated or eliminated by water pollution.
6) Altered water temperatures (due to human actions) can kill the marine life and affect the delicate
ecological balance in bodies of water, especially lakes and rivers.
Water pollution effects have a huge impact on our environment and health. The delicate balance between
nature and humans can be protected, but it will take efforts on all fronts to prevent and eliminate water pollution
locally and globally.
Other Effects:
Waterborne diseases caused by polluted drinking water:
 Typhoid
 Amoebiasis
 Giardiasis
 Ascariasis
 Hookworm
Waterborne diseases caused by polluted beach water:
 Rashes, ear ache, pink eye

 Respiratory infections
 Hepatitis, encephalitis, gastroenteritis, diarrhoea, vomiting, and stomach aches
Conditions related to water polluted by chemicals (such as pesticides, hydrocarbons, persistent organic
pollutants, heavy metals etc):
 Cancer, incl. prostate cancer and non-Hodgkin’s lymphoma

 Hormonal problems that can disrupt reproductive and developmental processes
 Damage to the nervous system
 Liver and kidney damage
 Damage to the DNA
 Exposure to mercury (heavy metal):
o In the womb: may cause neurological problems including slower reflexes, learning deficits, delayed or
incomplete mental development, autism and brain damage
o In adults: Parkinson’s disease, multiple sclerosis, Alzheimer’s disease, heart disease, and even death
Other notes:
The effects of water pollution are far-reaching and affect not only the environment, but human beings and
animals as well.
Water pollution affects our oceans, lakes, rivers, and drinking water, making it a widespread and global
concern. Numerous diseases, health problems, and even fatalities have been associated with water pollution.
Water is considered polluted when chemicals, pathogens, or contaminants are detected. Human beings have the
most crucial impact on our water resources. They also have the ability to control or eliminate water pollution.
 Water pollution may also result from interactions between water and contaminated soil, as well as from deposition
of air contaminants (such as acid rain)
 Damage to people may be caused by fish foods coming from polluted water (a well known example is high
mercury levels in fish)
 Damage to people may be caused by vegetable crops grown / washed with polluted water (author’s own
conclusion)
Soil contamination
Some soil pollutants are: hydrocarbons, solvents and heavy metals.
Causes cancers including leukaemia
 Lead in soil is especially hazardous for young children causing developmental damage to the brain
 Mercury can increase the risk of kidney damage; cyclodienes can lead to liver toxicity
 Causes neuromuscular blockage as well as depression of the central nervous system
 Also causes headaches, nausea, fatigue, eye irritation and skin rash
Other notes:
 Contact with contaminated soil may be direct (from using parks, schools etc) or indirect (by inhaling soil
contaminants which have vaporized)
 Soil contamination may also result from secondary contamination of water supplies and from deposition of air
contaminants (for example, via acid rain)
 Contamination of crops grown in polluted soil brings up problems with food security
 Since it is closely linked to water pollution, many effects of soil contamination appear to be similar to the ones
caused by water contamination
Land Pollution
Land pollution basically is about contaminating the land surface of the Earth through dumping urban waste matter
indiscriminately, dumping of industrial waste, mineral exploitation, and misusing the soil by harmful agricultural
practices. Land pollution includes visible litter and waste along with the soil itself being polluted. The soil gets polluted
by the chemicals in pesticides and herbicides used for agricultural purposes along with waste matter being littered in
urban areas such as roads, parks, and streets.
Land Pollution Comprises Of: Solid Waste and Soil Pollution
Solid Waste: Semisolid or solid matter that are created by human or animal activities, and which are disposed because
they are hazardous or useless are known as solid waste. Most of the solid wastes, like paper, plastic containers, bottles,
cans, and even used cars and electronic goods are not biodegradable, which means they do not get broken down through
inorganic or organic processes. Thus, when they accumulate they pose a health threat to people, plus, decaying wastes
also attract household pests and result in urban areas becoming unhealthy, dirty, and unsightly places to reside in.
Moreover, it also causes damage to terrestrial organisms, while also reducing the uses of the land for other, more useful
purposes.
Some of the sources of solid waste that cause land pollution are:
Wastes from Agriculture: This comprises of waste matter produced by crop, animal manure, and farm residues.
Wastes from Mining: Piles of coal refuse and heaps of slag.
Wastes from Industries: Industrial waste matter that can cause land pollution can include paints, chemicals, and so on.
Solids from Sewage Treatment: Wastes that are left over after sewage has been treated, biomass sludge, and settled
solids.
Ashes: The residual matter that remains after solid fuels are burned.
Garbage: This comprises of waste matter from food that are decomposable and other waste matter that are not
decomposable such as glass, metal, cloth, plastic, wood, paper, and so on.
Soil Pollution: Soil pollution is chiefly caused by chemicals in pesticides, such as poisons that are used to kill agricultural
pests like insects and herbicides that are used to get rid of weeds. Hence, soil pollution results from:
 Unhealthy methods of soil management.

 Harmful practices of irrigation methods.
Land pollution is caused by farms because they allow manure to collect, which leaches into the nearby land areas.
Chemicals that are used for purposes like sheep dipping also cause serious land pollution as do diesel oil spillages.
What are the Consequences of Land Pollution?
Land pollution can affect wildlife, plants, and humans in a number of ways, such as:
 Cause problems in the respiratory system

 Cause problems on the skin
 Lead to birth defects
 Cause various kinds of cancers
The toxic materials that pollute the soil can get into the human body directly by:
 Coming into contact with the skin

 Being washed into water sources like reservoirs and rivers
 Eating fruits and vegetables that have been grown in polluted soil
 Breathing in polluted dust or particles
How can Land Pollution be prevented?
 People should be educated and made aware about the harmful effects of littering
 Items used for domestic purposes ought to be reused or recycled
 Personal litter should be disposed properly
 Organic waste matter should be disposed in areas that are far away from residential places
 Inorganic matter such as paper, plastic, glass and metals should be reclaimed and then recycled
Noise Pollution
Definition: -
The present generation and the coming generations have to solve three grave problems, namely, population poverty and
pollution if they have to survive. Pollution being the most dangerous problem likes cancer in which death is sure but slow.
Environment pollution is assuming dangerous proportions all through the globe and India is not free from this poisonous
disease. This is the gift of modern living, industrialization and urbanization. Unless timely action is taken we have a
forbid and bleak future for the world.
The word noise is derived from the Latin term nausea. It has been defined as unwanted sound, a potential hazard to health
and communication dumped into the environment with regard to the adverse effect it may have on unwilling ears.
Noise is defined as unwanted sound. Sound, which pleases the listeners, is music and that which causes pain and
annoyance is noise. At times, what is music for some can be noise for others.
Section 2 (a) of the Air (Prevention and Control of Pollution) Act, 1981 includes noise in the definition of ‘air pollutant’.
Section 2(a) air pollution means any solid, liquid or gaseous substance including noise present in the atmosphere such
concentration as may be or tent to injurious to human beings or other living creatures or plants or property or
environment.
According to Encyclopedia Britannica: In acoustic noise is defined as any undesired sound.
Noise- a sound; a harsh disagreeable sound, or such sound; a din. Pollution- an excessive or annoying degree of noise in a
particular area, e.g. from traffic or aero plane engines.
Noise can be described as sound without agreeable musical quality or as an unwanted or undesired sound. Thus noise can
be taken as a group of laud, non harmonious sounds or vibrations that are unpleasant and irritating to ear.
Measurement: -
A decibel is the standard for the measurement of noise. The zero on a decibel scale is at the threshold of hearing, the
lowest sound pressure that can be heard, on the scale acc. To smith, 20 db is whisper, 40 db the noise in a quiet office . 60
db is normal conversation, 80 db is the level at which sound becomes physically painful.
The Noise quantum of some of the cities in our country indicate their pitch in decibel in the nosiest areas of corresponding
cities, e.g. Delhi- 80 db, Kolkata - 87,Bombay-85, Chennai-89 db etc.
3 Sources of Noise Pollution: -
Noise pollution like other pollutants is also a by-
1. Product of industrialization,
2. Urbanizations and
3. Modern civilization.
Broadly speaking, the noise pollution has two sources, i.e. industrial and non- industrial. The industrial source includes
the noise from various industries and big machines working at a very high speed and high noise intensity. Non- industrial
source of noise includes the noise created by transport/vehicular traffic and the neighborhood noise generated by various
noise pollution can also be divided in the categories, namely, natural and manmade. Most leading noise sources will fall
into the following categories: roads traffic, aircraft, railroads, construction, industry, noise in buildings, and consumer
products
1. Road Traffic Noise: -

In the city, the main sources of traffic noise are the motors and exhaust system of autos , smaller trucks, buses, and
motorcycles. This type of noise can be augmented by narrow streets and tall buildings, which produce a canyon in which
traffic noise reverberates.
2. Air Craft Noise: -

Now-a-days , the problem of low flying military aircraft has added a new dimension to community annoyance, as the
nation seeks to improve its nap-of the- earth aircraft operations over national parks, wilderness areas , and other areas
previously unaffected by aircraft noise has claimed national attention over recent years.
3. Noise from railroads: -

The noise from locomotive engines, horns and whistles, and switching and shunting operation in rail yards can impact
neighboring communities and railroad workers. For example, rail car retarders can produce a high frequency, high level
screech that can reach peak levels of 120 dB at a distance of 100 feet, which translates to levels as high as 138, or 140 dB
at the railroad worker’s ear.
4. Construction Noise: -
The noise from the construction of highways, city streets, and buildings is a major contributor to the urban scene.
Construction noise sources include pneumatic hammers, air compressors, bulldozers, loaders, dump trucks (and their
back-up signals), and pavement breakers.
5. Noise in Industry: -
Although industrial noise is one of the less prevalent community noise problems, neighbors of noisy manufacturing plants
can be disturbed by sources such as fans, motors, and compressors mounted on the outside of buildings Interior noise can
also be transmitted to the community through open windows and doors, and even through building walls. These interior
noise sources have significant impacts on industrial workers, among whom noise- induced hearing loss is unfortunately
common.
6. Noise in building: -
Apartment dwellers are often annoyed by noise in their homes, especially when the building is not well designed and
constructed. In this case, internal building noise from plumbing, boilers, generators, air conditioners, and fans, can be
audible and annoying. Improperly insulated walls and ceilings can reveal the soundof-amplified music, voices, footfalls
and noisy activities from neighboring units. External noise from emergency vehicles, traffic, refuse collection, and other
city noises can be a problem for urban residents, especially when windows are open or insufficiently glazed.
7. Noise from Consumer products:-

Certain household equipment, such as vacuum cleaners and some kitchen appliances have been and continue to be
noisemakers, although their contribution to the daily noise dose is usually not very large.
Harmful Effects of Noise Pollution:
On Human Being, Animal and Property: Noise has always been with the human civilization but it was never so obvious,
so intense, so varied & so pervasive as it is seen in the last of this century. Noise pollution makes men more irritable. The
effect of noise pollution is multifaceted & inter related. The effects of Noise Pollution on Human Being, Animal and
property are as follows:
I. It decreases the efficiency of a man:- Regarding the impact of noise on human efficiency there are number of
experiments which print out the fact that human efficiency increases with noise reduction. A study by Sinha & Sinha in
India suggested that reducing industrial booths could improve the quality of their work. Thus human efficiency is related
with noise.
II. Lack of concentration:- For better quality of work there should be concentration , Noise causes lack of concentration.
In big cities , mostly all the offices are on main road. The noise of traffic or the loud speakers of different types of horns
divert the attention of the people working in offices.
III. Fatigue:- Because of Noise Pollution, people cannot concentrate on their work. Thus they have to give their more
time for completing the work and they feel tiring
IV. Abortion is caused: - There should be cool and calm atmosphere during the pregnancy. Unpleasant sounds make a
lady of irriative nature. Sudden Noise causes abortion in females.
V. It causes Blood Pressure: - Noise Pollution causes certain diseases in human. It attacks on the person’s peace of mind.
The noises are recognized as major contributing factors in accelerating the already existing tensions of modern living.
These tensions result in certain disease like blood pressure or mental illness etc.
VI. Temporary of permanent Deafness:- The effect of nose on audition is well recognized. Mechanics , locomotive
drivers, telephone operators etc. All have their hearing . Impairment as a result of noise at the place of work. Physictist,
physicians & psychologists are of the view that continued exposure to noise level above. 80 to 100 db is unsafe, Loud
noise causes temporary or permanent deafness.
VII. EFFECT ON VEGETATION Poor quality of Crops:- Now is well known to all that plants are similar to human
being. They are also as sensitive as man. There should be cool & peaceful environment for their better growth. Noise
pollution causes poor quality of crops in a pleasant atmosphere.
VIII. EFFECT ON ANIMAL:- Noise pollution damage the nervous system of animal. Animal looses the control of its
mind. They become dangerous.
IX. EFFECT ON PROPERTY:- Loud noise is very dangerous to buildings, bridges and monuments. It creates waves
which struck the walls and put the building in danger condition. It weakens the edifice of buildings.
Legal Control: -
Constitution of India
Right to Life: - Article 21 of the Constitution guarantees life and personal liberty to all persons. It is well settled by
repeated pronouncements of the Supreme Court that right to life enshrined in Article 21 is not of mere survival or
existence. It guarantees a right of persons to life with human dignity. Any one who wishes to live in peace, comfort and
quiet within his house has a right to prevent the noise as pollutant reaching him.
Right to Information:- Every one has the right to information know about the norms and conditions on which Govt.
permit the industry which effect the environment.
Right to Religion and Noise: - Right to religion does not include right to perform religious activities on loud speaker and
electronic goods which produce high velocity of noise.
Directive Principal of State Policy: - The state has the object to make the enviorment pollution free.
Fundamental Duties: - every citizen of the country has the fundamental duty to clean the environment.
(b) Cr.P.C. Section 133
Here Section 133 is of great importance. Under Crpc. Section 133 the magisterial court have been empowered to issue
order to remove or abate nuisance caused by noise pollution Sec 133 empower an executive magistrate to interfere and
remove a public nuisance in the first instance with a conditional order and then with a permanent one. The provision can
be utilized in case of nuisance of environment nature. He can adopt immediate measure to prevent danger or injury of a
serious land to the public. For prevention of danger to human life, health or safety the magistrate can direct a person to
abstain from certain acts.
(c) I.P.C. Public Nuisance 268-295
Chapter IV of Indian Penal code deals with offences relating to public health, safety, ....decency , morals under Sections
268, 269, 270, 279, 280, 287, 288, 290 291 294. Noise pollution can be penalized with the help of above section. Private
remedies suits in the area may related to public nuisance under A299. This article punishment in case of Public nuisance
law of torts covers. A person is guilty of public nuisance who does any act or is guilty of an illegal omission which causes
any common injury, danger, or annoyance to the pubic or to the people in general who dwell or occupy property in the
vicinity or which must necessarily cause injury, obstruction danger or annoyance to persons who may have occasion to
use any public right. A common nuisance is not excused on the ground that it causes some convenience or advantage.
Who ever commits a public nuisance in any case not otherwise punishable by this code, shall be punished with fine, which
may extend to Rs. 200.
(d) Law of Torts Noise pollution is considered as civil wrong:-

Under law of torts , a civil suit can be filed claiming damages for the nuisance. For filing a suit under law of torts a
plaintiff is required to comply with some of the requirement of tort of nuisance which are as follows:-
1. There should be reasonable interference.
2. Interference should be with the use & enjoyment of land.
3. In an action for nuisance actual damage is required to be proved. As a general rule either the presence or absence of
malice does not matter. But in some cases deviation from the rule has been made.
(e) Factories Act Reduction of Noise and Oil of Machinery:- The Factories Act does not contain any specific provision
for noise control. However, unde the Third Schedule Sections 89 and 90 of the Act, noise induced hearing loss, is
mentioned as notifiable disease. Similarly, under the Modal Rules, limits for noise exposure for work zone area have been
prescribed.
(f) Motor Vehicle Act. Provision Relation to use of horn and change of Engine:- In Motor veichle Act rules regarding
use horns and any modification in engine are made.
(g) Noise Pollution Control Rule 2000 under Environment Protection Act 1996 :-
Further for better regulation for noise pollution There are The Noise Pollution ( Regulation and Control ) Rules, 2000 – in
order to curb the growing problem of noise pollution the government of India has enacted the noise pollution rules 2000
that includes the following main provisions:-
# The state government may categories the areas in the industrial or commercial or residential
# The ambient air quality standards in respect of noise for different areas have been specified.
# State government shall take measure for abatement of noise including noise emanating from vehicular movement and
ensure that the existing noise levels do not exceed the ambient air quality standards specified under these rules.
# An area not less than 100 m around hospitals educations institutions and court may be declare as silence are for the
purpose of these rules.
# A loud speaker or a public address system shall not be used except after obtaining written permission from the authority
and the same shall not be used at night. Between 10 pm to 6 am
# A person found violating the provisions as to the maximum noise permissible in any particular area shall be liable to be
punished for it as per the provision of these rules and any other law in force.
Schedule
(see rule 3(l) and 4(l)
Ambient Air Quality Standards in respect of Noise
Area Code Category of Area/Zone Limits in dB(A) Leq *
Day Time NightTime
(A) Industrial area 75 70
(B) Commercial area 65 55
(C) Residential area 55 45
(D) Silence Zone 50 40
Conclusion:-
We have made the law relating to noise pollution but there is need to creating general awareness towards the hazardous
effects of noise pollution. Particularly, in our country the people generally lack consciousness of the ill effects which
noise pollution creates ad how the society including they themselves stand to beneficiary preventing generation and
emission of noise pollution. The target area should be educational institutions and more particularly school. The young
children of impressionable age should be motivated to desist from playing with firecrackers, use of high sound producing
equipments and instruments on festivals, religious and social functions, family get-togethers and celebrations etc. which
cause noise pollution. Suitable chapters can be added into textbooks, which teach civic sense to the children and teach
them how to be good and responsible citizen which would include learning by heart of various fundamental duties and
that would obliviously include learning not to create noise pollution and to prevent if generated by others. Holding of
special talks and lectures can be organized in the schools to highlight the menance of noise pollution and the role of the
children in preventing it .
Environmental Pollution Effects on Animals

Air Pollution
 Acid rain (formed in the air) destroys fish life in lakes and streams
 Excessive ultraviolet radiation coming from the sun through the ozone layer in the upper atmosphere which is
eroded by some air pollutants, may cause skin cancer in wildlife
 Ozone in the lower atmosphere may damage lung tissues of animals
Water Pollution (23)
 Nutrient pollution (nitrogen, phosphates etc) causes overgrowth of toxic algae eaten by other aquatic animals, and
may cause death; nutrient pollution can also cause outbreaks of fish diseases
 Chemical contamination can cause declines in frog biodiversity and tadpole mass
 Oil pollution (as part of chemical contamination) can negatively affect development of marine organisms,
increase susceptibility to disease and affect reproductive processes; can also cause gastrointestinal irritation, liver
and kidney damage, and damage to the nervous system
 Mercury in water can cause abnormal behavior, slower growth and development, reduced reproduction, and death
 Persistent organic pollutants (POPs) may cause declines, deformities and death of fish life
 Too much sodium chloride (ordinary salt) in water may kill animals (24)
Other notes:
 We also assume that some higher forms of non-aquatic animals may have similar effects from water pollution as
those experienced by humans, as described above (author’s own conclusion)
Soil Contamination (25)
 Can alter metabolism of microorganisms and arthropods in a given soil environment; this may destroy some
layers of the primary food chain, and thus have a negative effect on predator animal species
 Small life forms may consume harmful chemicals which may then be passed up the food chain to larger animals;
this may lead to increased mortality rates and even animal extinction
Environmental Pollution Effects on Trees and Plants
Air Pollution
 Acid rain can kill trees, destroy the leaves of plants, can infiltrate soil by making it unsuitable for purposes of
nutrition and habitation
 Ozone holes in the upper atmosphere can allow excessive ultraviolet radiation from the sun to enter the Earth
causing damage to trees and plants
 Ozone in the lower atmosphere can prevent plant respiration by blocking stomata (openings in leaves) and
negatively affecting plants’ photosynthesis rates which will stunt plant growth; ozone can also decay plant cells
directly by entering stomata
Water Pollution
 May disrupt photosynthesis in aquatic plants and thus affecting ecosystems that depend on these plants
 Terrestrial and aquatic plants may absorb pollutants from water (as their main nutrient source) and pass them up
the food chain to consumer animals and humans
 Plants may be killed by too much sodium chloride (ordinary slat) in water
 Plants may be killed by mud from construction sites as well as bits of wood and leaves, clay and other similar
materials
 Plants may be killed by herbicides in water; herbicides are chemicals which are most harmful to plants
Soil Contamination
 May alter plant metabolism and reduce crop yields

 Trees and plants may absorb soil contaminants and pass them up the food chain
Environmental Pollution Effects on Wider Environment

Apart from destroying the aquatic life in lakes and streams, acid rain can also corrode metals, damage surfaces
of buildings and monuments, and cause soil acidification.
Pollution of water may cause oxygen depletion in marine environments and severely affect the health of whole
ecosystems.
Environmental Pollution - Conclusion

Environmental pollution is causing a lot of distress not only to humans but also animals, driving many animal
species to endangerment and even extinction.
The Tran boundary nature of environmental pollution makes it even more difficult to manage – you cannot build stone
walls along the borders of your country or put customs cabins at every point of entry to regulate its flows into your
country.
Everything on our planet is interconnected, and while the nature supplies us with valuable environmental
services without which we cannot exist, we all depend on each other’s actions and the way we treat natural
resources.
It’s widely recognized that we are hugely overspending our current budget of natural resources – at the existing
rates of its exploitation, there is no way for the environment to recover in good time and continue “performing”
well in the future.
Perhaps we should adopt a holistic view of nature – it is not an entity that exists separately from us; the nature is
us, we are an inalienable part of it, and we should care for it in the most appropriate manner. Only then can we
possibly solve the problem of environmental pollution.

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INDUSTRIAL MANAGEMENT

PLANNING ORAGANISING DIRECTING

 For the accomplishment of the goals.

SCOPE OF INDUSTRIAL MANGEMENT

APPLICATION OF THE INDUSTRIAL MANGEMNT

Output means the amount produced or the number of items produced.

Performance Achieved (Effectiveness)

Input Receiving Reports

Row material Inventory Reports

Final inspection Inspection Reports

INPUT OUTPUT MODEL (ANALYSIS OF PRODUCTION SYSTEM)

 It is one of the basic models of the production system.

MEN PLANT &

INPUT PRODUTION PROCESS OUTPUT

Purpose to Increase Productivity:

 To produce good earning (profit).

 To reduced price of the article.

Sole Proprietorship State & Central Govt .

Partnership Joint Stock Company Co – operative Organization

Joint Stock Company

Management Function: Management

 planning: determine objectives in advance and the methods to achieve them;

a. On the basis of observation and analysis i.e. practical experience of managers.

There are 14 Principles of Management described by Henri Fayol.

Basis Unity of command Unity of direction

Nature It is related to the functioning of personnel’s. It is related to the functioning of

- There are good superiors at all levels.

- Employees should be honest & sincere.

13. Espirit De’ Corps (can be achieved through unity of command)

Quality Control Charts Other Quality Management Tools

 Pie charts  Relations Diagram

Relations Diagram (or Interrelationship Digraph)

Project Pathways for Management

1. Rapidly group ideas that seem to belong together.

Brainstorms help answer specific questions such as:

 What opportunities face us this year?

Cause & Effect Diagram

Force Field Analysis

Time and motion study

 Skill – Proficiency in following the given method

1 TMU = 0.036 second

Some examples include:

 Using an automated can opener instead of the manual version

Flowchart building blocks

Start and end symbols

Generic processing steps

Represented as a parallelogram. Examples: Get X from the user; display X.

Represented as a diamond (rhombus) showing where a decision is necessary, commonly a Yes/No

 A Document represented as a rectangle with a wavy base;

Example of a system flowchart.

 Document flowcharts, showing controls over a document-flow through a system

Functional flow block diagram

Development of functional flow block diagrams

Figure 2: Development of Functional Flow Block Diagrams

Figure 3. Function Symbol

Figure 4. Directed Lines

Figure 7. “Inclusive OR” Logic

Contextual and Administrative Data

 Date the diagram was created