UNIT-1 History & Development of MFT Mgt

INTRODUCATION
1.

Functions of Prod Mgt

A.

Design & Devp of prod process Prod planning & control Implementation of plans Co-ordination of various activities of agencies involved

B. C. D.

2. Prod Administration
MD-Prod Mgr/GM(P)- MGR-FOREMAN SCM-WCM

3. Historical Devp of Prod Mgt

a) 1776-Adm Smith b) 1883-Charles Babbage c)
d)

Taylor Scientific study of each activity worker should not evolve own ways Co-op understanding between worker & mgt spl & expertise of Opn

&

e) 1914-Harris-Economic Lot size to control inventor f) 1931-Walter Statistical QC g) 1934-Tippet- Devp of Sampling theory

h) 1940s-OR-e.g. Linear PGM & Net work analysis time & Motion study, Queuing

the Inventory analysis (ABC &VED etc)comptr.

4.

Prod & Society

:-National wealth- Agg. Amt of goods & services

:- Higher Prod Leads to higher study of living & income

5. Prod & Goods &Services 6. Prod System & Decision Marking

a) Comprehension b) Conception c) Investigation d) Deliberation e) Selection f) Implementation
g) 7.

Feed back (+ve & -ve )

Responsibilities of PM To Increase Prod nativity with QC.

a) Prod planning b) Prod Control c) QC d) Operation Research & work study e) Plant layout & M/C

f) Material Handing g) Inventory Control

UNIT-2
Importance, Nature, Scope & Fn of MFG MGT
1.

Production & Orgn

2. Overview of Opn Mgt

3. Production Sys
1. Good Vs Services 2. Services as pant of the Product 3. Products as part of the Service

4. Enterprise Competitiveness & OPN Fn

1. Cost 2. Quality
3. Dependability as a supplier

4. Flexibility / Service

5.

Types & Ch of MFT Sys

Product Strategy
Product Life Cycle

6.

Prod sys Types:

a) Process Focused sys b) Product Focused sys c) Prodn to stock or to Oder

7. Types of Ch of services sys:

:- Importance & feature of service sys :- Classification of services sys a. Stagnant Personal services
b. Substitutable Pess. Serv

c. Progressing Serv. d. Exlosive Serv.

8.

Productivity Growth possibilities

(A) Drs Teaching Barber (B) Pres Servants Grocery Stores Pers. Lawyers e-mail security Guards Teaching (C) Broadcasting Computation R and D (D) Telecom Telephone

Unit-3
Imp & FN of Facilities Location and Layout Planning

1. Imp Of Plant location (Small, Medium & Large Plants)

Availability of Raw materials. Availability of land & climatic conditions. Operating cost for Raw material, finished goods storage. Infrastructure e.g. Power, Tpt, Ports, Comm., Fuel Rly, Airport, Water reservoirs,

Taxes, litigations etc. Govt incentives & Polities, Taxes, Litigations etc.
Location of competitors & their capacity. Re-location of dynamic factory. Strategically considerations & safety during war. Supply of labor from local areas.

2. 3.

Centralization Vs De- Centralization Location Analysis

Evaluation of geographical Areas. Choice of exact site. Analysis of quantitative factory by cost analysis. Comparison of Qualitative factors.

Imp & Fn of Plant Layout

1. What is Plant Layout? 2. Objectives of good layout. Facilitates MFT process Economy in material handling Efficient utilization of floor space Efficient flow of semi-finished & finished good Better supervision & control of opn Provide adequate safety to workers Attain optimal quality & capacity reqmts.

3. Advantages of good layout 4. Types of layout: A. FN layout for process focused sys

Advantages
Most suitable for smaller quality with different specifications Specialized sections better quality Independent working Wide flexibility in production facilities Effective supervision & Insp M/C breakdown dose not disrupt prod schedule. Lower capital Investment FC to TC Ratio is lower

Disadvantages: More material handling Longer prod planning &control Requires more floor space Insp is more frequent costlier QC Requires highly skilled labor M/C loading is high Buffer stock is high

B. Line layout for product focused sys.

Advantages: Smooth & regular flow of material & finished goods Short processing time Reduces material handling Lesser floor area per unit output Lesser Insp low cost of QC Lesser prod planning & control Min butter stock for jobs in progress

Disadvantages:

Inflexible in prod changes Affected by M/C breakdown Supervision is more difficult Required heavy capital investment

Comparison of Product & Process layout . C. Stationary Layout Balancing of Production Liners. M/C OP NO: Time regd for the op/unit Unit processed by ONE M/C in one Hr.

A B C

1 2 3

15 Min 20 Min 30 MIn

4 Unit 3 Unit 2 Unit

Increasing the No: of M/C to balance the Prod Line. Type of M/C No: of M/C available A B C 3 4 6 1 2 3 Type of Op Time regd in Min 15 20 30 Unit processed in one Hr. 12 12 12

Increasing the working HR of M/C to balance the prod line M/C Type of Op Time regd in Min A B C 1 2 3 15 20 30 Running Time of each M/C /shift 1Hr 1Hr 20 Min 2Hr 4 4 4 Output per Hr.

Unit -4
Prod Planning & Control
1. Introduction: Importance Scope

Objectives Functions Factors to be considered 2. Forecasting for opens:-Short range for current open Medium range up to 1 Yr Long range more than 1Yr 3. Basis forecasting Methods:- 3Methods 4. Extrapolative methods
a)

components of demand :-Horizontal component Trend component Seasonal component Cyclic component
i. Demand for march , Apr, May , June 4

Moving Av Method =

=110+130+140+110/4 Forecast for July ii. =125 units Exponential smoothing Md : when to use

b) Casual or Explanatory Md:

i.

Simple Regression Analysis Y=a+bx Multiple Regression The Delphi Method

ii. i.

c) Qualitative or Judgmental methods

ii. iii. iv.

Market survey Historical analogy & life cycle analysis Scenario based forecasting

5. Accuracy of forecasting MDS. 6. Compassion and applications. Table 4.9on p-86.Bnffa.

Inventory Planning & Control

1. Introduction:

What is Inventory

2. Reasons for keeping inventory:-

 Serves as cushions to absorb shocks form various vendors and customers. It is a necessary evil cost of not having it much greater than the cost of having it. Provides prod economies due to Qty discounts etc.

Mains smooth flow of Prod by decoupling fn

Better use of man , M/C & Material 3. Cost of Inventory sys. Ordering cost Inv. Carrying cost Storage cost Depreciation cast Cost of deterioration, obsolescence, pilferage, Insurance and Tax etc. 4. Inventory control: EOQ-Economic order Qty Re-order level

Co st------

IMP Assumptions for EOQ. Av dmd is continues& constant and knows with certainty. (But D is based on forecasts) Supply lead time is constant

Purchase price, CS and OC is constant

Replenishment of one item has no effect on any other item Order qut EOQ is equal to delivery qty. Different Situations a)

b)
Inv lev el

c)

Replant net instant

d) Shortages allowed Replant Instant

5. Re-order Level Lead time =Servicing Time +Delivery Time +Receiving time Buffer stock

6. Japanese

Inv Sys

7. ABC Analysis of Inv

VED Analysis of Inv FNS Analysis of Inv

% of To tal Va lue

Production Planning
1.

Introduction: plg the resources regd for mft the tgt O/P Mgt and co-ord all opn towards prodn.

Determines raw material regd, M/C eqpts regd

Optimize use of all resources Maximize utilization of plant capacity

2.

Prod Plg Procedure : a) Routing b) Scheduling c) Loading Routing: describes the sequence of opn regd to transform the raw material in to desired product. Scheduling: when & where each opn in prod process is to be executed. Est the time table for each opn to be performed by which m/c. It determines the time that os regd for each open & also the time regd to perform the entire series of opn as routed. Scheduling techniques: i. ii. iii. Gantt charts CPM and PERT The run out approach

3.

4.

5.

Loading: Is the relationship bet actual work load and capacity of m/c available in each shift to avoid over/under utilization of various m/c and achieve the balanced prod line. M/c Load charts for all M/C

Production Control
1. What is prod control Prod Plg only prescribes and outlines the Obj and provides guidelines for various Opn & activities involved in Trf process of raw material in to finished product. Prod control lay emphasis on regulating & monitoring all such Opn of prod process. It ensures that men, m/c material facilities ate being utilized optimally at various stages of prod cycle it ensures that prod activities are as per the time frame & cost limits. The raw material, semi-finished & finished goods are as per the spree/ Quality and prod is in conformity with the shackle and Tgt and set by Mkt dept.

-Prod Plg & Control are closely related. Sets prod strategies & Tgt : Actual implementation & ex Determiner Opns redg to Mft: Regulated & Monitors as per time schedule, quality etc. Feedback , short comps Bottlenecks on floor Modification in prod plg

2. Prod control techniques : a) Programming regulates supply of finished product as per set Tgt by due dates. b) Ordering placing orders to suppliers & processing Depts for material & other parts needed for Mft work order.
c)

Dispatching assigning various jobs & Opns to different m/c specifically by the foreman as per the availability of a m/c material, tools & the jobs in waiting.

Unit-5
Break Even Analysis
1. What is Beak-Even Point

Re ve nu e

BEP is the EG Point , Total Revenue= Total Expense

Break even chart Angle of incidence Indicates the Level of Profits Margin of safety= Actual sales sale at BEP = %of actual sale at BEP =

Profit to Vol Ratio (P/V)= By Increasing vol of sales by O/P or

2. Improving Profit Performance by BEC: i.

S/P ii. iii.

3.

By By

VC FC

Applications of BEA: A great asset for forecasting results. Imp tool for decision making &objective setting.

The impact of variations in sale and cost of prod on profit can be studied and analyzed.

Provides more realistic basis for policy making The point from where dividends should b start can be determined 4. Limitations of BEA: The variation in price due to demand & supply is not covered in BEA. VC may not vary in fixed Proportions at different levels of O/P The Revenue may not be perfectly variable with level of sales, as certain discounts may be given to promote sales.

BEP

(Unit) =

FC S PP e r U n-it CP e r U n it V

FC Contributi on / Unit

B E P a le s S S P / U n it

 BEP

(Rs)

F C x S a le s S a le - V C s F C x S P / U n it S P / U n itV C/ U n it F C x S P /U n it C o n trib u ti / U n it on
FC P/V Ratio

= BEP (Units)x SP /Unit

Unit-6 Maintenance Management

1. What

is Plant Maintenance: To maintenance the plant & M/C up to some desired Level of eff and

to keep them in satisfactory working cond, so that they meet the normal oprequirements for witch these are meant. 2. Categorization of M/c for Maintenance purpose will Depend upon: Safety Maintenance cost, down-time cost, spares Cat-A Cat-B Cat-C : : : Most Imp Imp Less Imp production Quality

3. Functions of Maintenance mgmt.

Periodic Insp of all M/C depending upon criticality & Imp

Repair & put them back in working order. Overhaul Lubrication Salvage of M/C once discarded. 4. Types of maintenance Breakdown maintenance Preventive maintenance 5. Maintenance policy

Co st

Relationship bet sixe of maintenance crew and cost of eqpt down time 6. Planning & control of maintenance spares for Pm and BM

Regular spares regd frequently are of low R & low cost.

Insurance spares reqg rarely high R & high cost. Capital spares reqg moderately medium R & cost. Ratable spares.

Co st

7. Reliability

engineering is the P of working of a component satisfies at the

time when it is regd to work R is survival profanity. R of two components in series (functionally)

R=P1*P2 R of two components in Parallel (functionally)

R=1 (1-P1)*(1-P2)

8. Maintainability aspects to enhance availability of plant & M/C in a Prod system.

9. Relationship

between age specific failure rates with respect to time-to-failure.

BATH TUB CURVE IN MAINT CYCLE Showing three model of failure behavior viz hyper-exe,-ve-exe. Normal Probability Distribution. 10. MTBF MTTR Mean life of an eqpt

APPROPRIATE TECH AND TECH ABSORPTION 1. Introduction 2. Product & Process Innovation

Uncoordinated process Performance Max Stage of Development Stage 1 Stage 2 Stage 3

Integrated process Cost Min

3. Interaction bet product & Productive sys Production Design Design & Re-design Interchangeable Parts Standardization Modular Designs 4. Classification of Process Tech: a) Manual Tech b) Mechanized Tech c) Automated Tech Hard Automation Robotic & Application of Industrial robots

Numerically Controlled M/C CAD/CAM & applications Flexible Mft sys (FMS) & applications

d) Group Tec: Mft of Parts similar in design & Mfg Pr.reqmts. e) Automatic Factory an ultimate dream Examples: Seiko watches assay line gen Motors Mft auto wheels
5. Framework for analyzing Tech choice

Structure the Alternatives

Set the Time Horizon & choose the criteria for session

Evaluate the alternatives & decide 6. Five types of Process Tech

i.

Project Tech-suitable for one-of-a-kind product tailor made to the unique regmt of each customer Job shop-suitable for rarity of custom designed products in small vol, each requiring a unsigned set of processing steps or routing through prod. Batch Tech- suitable for variety of product in varying vol.sys should be flexible for low-vol, high-variety products with degree of Std. Assay Line Tech-suitable for narrow range of std products in high relatively spl eqpts| M/C. Continuous flow Tech suitable for producing a continuous and end less flow of highly std product with spl rqpt in large vol, e.g. chemical plants, oil refinery etc.

ii.

iii.

iv.

v.

7. Process Tech Life cycle is related to product Life cycle.

Mf t Co st / Un it

Relation bet PLC and Mft Process Tech

Sal es Vo l

Product Variety Pr Vol /Models Industry Structure From of Competition

Great Variety Low Vol Small Competitions Product Ch

Std Vol Fall out & Consolidation Pr. Quality & Availability

Emergence of Dominant design High Vol Few Large Co: Price & dependability

High Std Commodity High Vol. Survivors only Price

Flexible Mfg Sys: is a comptr controlled process tech suitable for producing a moderate variety of products in moderate vol. through integration of different types of NC M/C performing various opn.

FMS is more Flexible for adapting the change in product design and vol of prod. Requires very large capital investment. High Quality very low rejection rate.

CAD: CAD uses computational and graphics software pqms that allow a designer to carry out refinement of product specification and its geometric manipulation & transformations rapidly and easily on video monitors It enhances drafting and design productivity by a factory of three or more and the engineering lead time in product design shrinks considerably Example: GM design time for new car reduced from 24 to 14 months.

CAM SYS: utilizes the computer software PGM that controls the variety of M/C OPN and M/C tools on the actual shop-floor .M/C operate as per the instars give by computer for sequence & specifications of the Job. Produces high quality and close to learners jobs consistently in much less time for high vol of prodn. CIM: Computer Integrated Mfg is the computer in to sys utilizing a shared Mfg database for engineering design, Mft engineering, Factory prodn and Information management /Business Fns. Example: Boeing 747, >2,00,000 part and >15,000 employees to design & Mft Just One aero plane model. Bulk prods. CAD

Geometric Modeling Engg analysis Design review & Analysis Automated drafting
CAM

MIS and Business Function

Data based Mgt MIS & Decision sp sys Order entry Pay roll Customer Billing

Cost estimating CAPP

Engineering Design

Capacity Planning CA Link balancing Prodn & Inventory NC Part PGM Development of work STD

Factor y Opns
FTY Prod Control

CAM
Process Control Pr. Monitoring Auto QC & Insp. Auto Material Handing Routing MFG

Computerized Elements of a CIM sys and Functions

QUALITY ASSURANCE AND TOTAL QUALITY MGT .

1. Introduction:

Quality is certain prescribed or desired ch. present is raw-material, semi-finished or items. The item should conform to the specifications-may be Quantitative or Qualitative in nature at an optimum cost. QC is every bodys Jobs.
2. QC sys consists of four phases:

QC Policy of the orgn. Wrt Price processing M/C Reliability. Quality & Product Design, raw-material, prods pr, specifications. Qc during Prodn Process Insp of raw material Insp & control of prodn pr and M/C Insp & control of final product.

QC during storage distribution installation & use

3. Acceptance sampling or sampling Insp:

Method of rejecting or accepting a lot size on the basis of this sample. Consumers Risk- is the P of defective lot being accepted which otherwise would have been rejected Producers Rise P of good being rejected which otherwise would have been accepted. a) Av. Outgoing Quality

AOQ =

A c tu anlo: o f d e fe c tiv inslo ta fte r s p e In T o tan o: o f ite m in th e t l s lo

N-Lot size = 1000 n- Sampling Plan = 100

C- No: of defectives actually found in sample Then If If C C Accept the entire lot (Risk) C> C Reject the lot or 100% Insp.

b) Accepted Quality Level (AQL) It is the max proportion of defective in the sampling insp which the consumer finds acceptable. c) Reject-able Quality Level (RQL) Lot tolerance percent defective. (LTPD) lots at this level of Q are poor and have low probability of acceptance.
d) Operating Ch. (OC) Curves

The Oc cure for a particular combination of n and C shows how well the plan discriminates bet good and bad Quality of lots.
>>>>>>

Proba bility of Acce ptanc e%

OC Curve for different sample Size

OC Curve for Different Acceptance no: =50

The discrimination power of a sampling plan depends on the size of the sample. As the sample size increases the OC curve becomes steeper in slope and more effective. If the acceptance no: C changes to say 0,1,2,3, etc. Lower acceptance notighter i.e. they hold outgoing Q to lower % ages. The discriminating power of OC curve for good & bad Q of a lot then depends on sample size and acceptance no: Vertical OC curve

Balance bet Insp cost and probable cost of consequences of passing defective items, e.g. damage to goodwill, loss of mkt share loss customers or contract, safety aspect, life

saving drugs, imp mission. Meas 4. Sampling plans urem Single sampling planof ent Q Double sampling plan CH Sequential sampling plan 5. Statistical quality control SQC is applied by taking sample and drawing conclusion by means of some mathematical analysis variation in prod process occur due to Change causes
Assignable causes

6. Control charts

Two basis types of control charts:

Control charts for variables- When the Q CH. Can be quantitative & subject to measurement X and R-charts Control charts for attributes (Follow normal distr) when Q Ch. Is qualitative and can not be measured P n P and C-charts (follow Binomial or Poisson distr.)

7. Total quality management (TQM) (1950s)

A product that conforms to specifications by designer but does not meet customer expectations is still not of high Q. Dissatisfied customers will switch to higherquality competitors.

 TQM is philosophies of continuous improvement of Q customer are in the key to the definition of Q. Total- every one in the orgn should be involved in the continuous process of q improvement Quality- the tacos of TQM is on customer who defines the Q of product or service. The Q must meet or exceed the customers expectations. Management-TQM is a sys of mgmt

The primary goal to TQM is total customer satisfaction quality at the source is the slogan it means that error, if any exists, should be caught and corrected at the work place. Self correction of error is the responsibility of each worker.

8. Quality circles

TQM include the development of ability to do it right the first time TQM places the responsibility for Q directly primarily on workers and supervisors on shop-floor, instead of QC dept.

All the workers are org into teams that select analyze and present proposed solution to Q problems. These quality circles involve thousands of people working on Q problems rather than tech staff or QC dept. it also reduces the resistance of workers to introduction of QC models and helps in enhancing the productivity as well.

INDUTIAL ENGINEERING & WORK STUDY

1. Productivity-it is the ratio bet output and the amount of all the resources as inputs during

the course of prodn. Input resources may include any combination of man M/C raw material, capital input, cost of mise inputs etc. aim is to optimize the use of all resources to max output.
2. Work study- it is the analytic investigation of methods, conditions and effectiveness of

industrial work and finding best ways to use human/material recourses most economically i.e. Method study. It also study and est std for work wrt time i.e Work Measurement or Time study. Basically it aims at submitting proposals and implementing schemes to increase productivity and reduce wastages.
Method study objective can be to study analyze and effect improvements on shop-floor in

the field of:

Labor utilization/productivity Working cond to reduce fatigue & worker satisfaction M/C utilization/productivity Material productivity Cost/time performance of the overall opns.

 Technique of method study

Selection of job to be studied Collection recording and presentation of into about current process in the form of process time movement charts and graphs man-M/C charts etc. Critically examine /analyzes to identify avenues for improvement alternatives. Develop new methods evacuated check acceptability. Implementation follow-up and feedbacks etc. Operation Transportation Delay Inspection Storage opn & Insp.

ASME symbols for process, flow wharfs:-

3. Work Measurement: It is the technique to measure the work and est time for a qualified

worker to carry out a specified job at a defined level of performance. Stop watch time study Selection of work or job
Collect into about worker, M/C method, Q, material condition Divide the job into observable & distinct elements Record the time for each element by stopwatch

Record sufficient readings of the action cycle for accuracy Evaluate performance rating of the operator / worker Evaluate standard time by a first rated worker
Allowances for fatigue, personal time, unavoidable delays, reject a allow, tools &

M/C allow contingency allow etc to arrive at the Standard Time

Normal Time allowance expressed as fraction)

= (1 - Total

Normal time = Actual Timex performance rating 1/100

Performance Rating =

ST A T

U n its ro d u c e d /s P h ift S tdu n its ro d u c e d /S P h ift

Work sampling or Activity sampling method for time study

Here the work values and delay intervals are est by stats sampling, by taking sufficiently large number of obs at random time intervals over adequate span of time for a group of M/C on shop-floor or group of people in efface work. The no: of obs is proportional to the amt of time spent in working or idler and estimate the proportions of. Basic Wage Rate Delay Wages or stoppages occurring in a plant/office Non productive vs. productive times for workers, M/C managers etc. Any other activities performed by persons. It is most useful for estimating the resource utilization pattern on the shop floor.
4. Incentive

schemes- for inducing increased productivity of the workforce by

motivation. As per Mgt policy, there can be three types of financial incentive schemes: Individual inct. Schemes Group inct. Schemes Company- wide inct,. Schemes

Rowan sys of incentives dimities the max earnings of a worker:-

Bonus =

B a s ic a g X T im e llo w e-dT im e k k e n W e a ta T im e llo w e d a

Limitations of incentives offered to worker:

Money is not prime motivator Once instituted it is difficult to with draw Employees may resist improvement in producing Production output vol will now be controlled more by workers and less by Mgt. Quality may be compromised by workers.

Flow process Charts: For Man or Material

Part A Part B Part C Summary for Part-B Time Opn Insp 3
1 1

1
5

8 Min

Movement Delay

1 Storage 2

13 Min

7 Min
1

4 Min

3 32 5 2 4 1

16 Min

9 Min TIME 3 Min

6 Min

4 Min 8 Min

CHART FOR MAN AND M/C ACTIVITY