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Session - 1

ME4101D INDUSTRIAL ENGINEERING

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Brief about the course
Academic Year, Semester: Monsoon Semester 2024
Slot: A1 (Mon:09.00 AM | Wed: 12.00 Noon | Thu: 11.00 AM | Fri: 10.00 AM)
Class: Semester VII Production Engineering
Course Code and Title: ME4101D INDUSTRIAL ENGINEERING

Course Outcomes
• CO1: Define the terms workstudy and productivity and illustrate the improving
techniques.
• CO2: Comprehend the systematic recording and critical examination of man-
machine systems in order to learn the design and development of a product.
• CO3: Determine the standard time for the standard work and rate the job.
• CO4: Ability to design and evaluate the facilities layout and plant layout.

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Evaluation Policy
MidSem (September 18 - 30, 2024) 20 marks
Assignments: 30 marks
Tutorial Sheets 10 marks
Field Exercises 10 marks
Quizzes (including Surprise Quizzes) 10 marks
End Examination (November 14 – November 27, 2024) 50 marks
Minimum marks to secure a pass grade is 35 marks
Last Working Day : November 12, 2024

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ME4101D INDUSTRIAL ENGINEERING
Prerequisites: Nil Total Hours: 39
Module 1: (13 hours)
Introduction to Industrial Engineering; work study; productivity; role of work study in improving productivity; work
study: working conditions, introduction to ergonomics; method study: techniques, various types of charts and
diagrams, flow and handling of materials, tools for recording the movement of workers.
Module 2: (11 Hours)
Motion study: memomotion and micromotion study; therbligs; cyclegraph and chronocyclegraph; SIMO chart;
principles of motion economy; design of work place layout.
Module 3: (15 Hours)
Work measurement: basic procedure, techniques, work sampling, time study: allowances, standard time,
introduction predetermined time standards; job analysis: job evaluation, merit rating, wage and incentive plans.
Facility design: facility location factors and evaluation of alternate locations; types of plant layout and their
evaluation; computer aided layout design techniques; assembly line balancing; materials handling systems.
References
1. I.L.O., Introduction to Work Study: Indian Adaptation, 3rd ed. Oxford & IBH Publishing, 2003.
2. R. M. Barnes, Motion and Time Study: Design and Measurement of Work, 7th ed. John Wiley & Sons, 1980.
3. Freivalds and B. W. Niebel, Niebel’s Methods,Standards
ME4101Dand Work Design, 12th ed. 2008. 4
Session - 2
ME4101D INDUSTRIAL ENGINEERING

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XYZ Manufacturing Company, located in the industrial hub of Cochin,
Kerala, specializes in producing automotive components. The plant
has a workforce of 200 employees and operates 24/7, with a focus on
high-volume production. Despite its capacity, the plant has been
experiencing issues with production delays, high operational costs,
and employee dissatisfaction. The management decides to hire an
Industrial Engineer, its U, to diagnose the issues and implement
solutions to improve efficiency.

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Industrial Engineer may involve in
• increasing efficiency
• reducing production costs
• improving quality control
• ensuring the health and safety of employees
• protecting the environment or
• complying with government regulations

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ME4101D INDUSTRIAL ENGINEERING

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Roles/duties of an Industrial engineer
• Chance to work both in offices and in
on-site locations
• Able to design the location of
machines/ workspace in a factory
• Able to develop and design process
planning systems that flexibly vary the
sequence of operations to produce a
product.
• Able to ensure safety of the workers.
• Able to design material handling
systems
• Able to develop reliable and quality
management systems
• Able to design human-machine
interface to assist operators in the
monitoring and control of industrial
processes.
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What is Industrial Engineering?
• Industrial Engineer will get an opportunity to cover a broad spectrum of
areas:
• manufacturing systems and processes,
• production planning and control,
• facilities design,
• quality control,
• occupational safety,
• systems analysis and design, and
• even advanced computing.
• Industrial Engineer will analyze, predict, design and evaluate the results
of processes and devices, and overcome any hurdles in achieving the
optimum production.
• The focus will be to improve manufacturing and design processes to
obtain maximum outputs with minimum wastage.
• Engineers make products…Industrial Engineers make products better.
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Industrial Engineering - Industrial Engineer
• The branch of engineering that deals with the
optimization of different complex processes, systems
and organizations is known as Industrial Engineering.
• Elimination/reduction of unwanted elements that do
not generate value
• Industrial and systems engineers make things better in
any industry — from automobile manufacturing and
aerospace, to healthcare, forestry, finance, leisure, and
education.
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Industrial Engineering - Industrial Engineer
• Institute of Industrial and Systems Engineers (IISE)
• IISE founded in 1948
• Helps its members improve complex organizations
around the world and across industries.
• IISE, the world's largest professional society dedicated
solely to the support of the profession, is an international,
nonprofit association that provides leadership for the
application, education, training, research, and development
of industrial and systems engineering.
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What is industrial and systems engineering?
• Industrial and systems engineering is concerned with the design,
improvement and installation of integrated systems of people,
materials, information, equipment and energy.

• It draws upon specialized knowledge and skill in the


mathematical, physical, and social sciences together with the
principles and methods of engineering analysis and design, to
specify, predict, and evaluate the results to be obtained from such
systems.
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Industrial Engineering - Industrial Engineer
• Industrial engineering is about choices. IE gives practitioners the
opportunity to work in a variety of businesses.
• Offers the best of both worlds: an education in both engineering
and business.
• The most distinctive aspect is the flexibility it offers - shortening a
rollercoaster line, streamlining an operating room, distributing
products worldwide, or manufacturing superior automobiles, - the
common goal is to save companies money and increase
efficiency.
• Continuous productivity and quality improvement to survive.
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Industrial Engineering - Industrial Engineer
• Industrial engineers are the only engineering professionals
trained specifically to be productivity and quality improvement
specialists.
• Industrial engineers figure out how to do things better.
• engineer processes and systems that improve quality and
productivity.
• eliminate waste of time, money, materials, energy and other
commodities.

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Industrial Engineering - Industrial Engineer
• Industrial engineer is not just about manufacturing - encompasses
service industries, IE in entertainment industries, shipping and
logistics businesses, and healthcare organizations….
• …productivity and quality improvement techniques.

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Session - 4
ME4101D INDUSTRIAL ENGINEERING

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In God We Trust;
All Others Must Bring Data
— Edwards Deming

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How we Decide?
When we realise there exits a problem and a decision is to be
made…
• A committee is formed…
• Committee members form a WhatsApp group…
• Meetings happen…
• …Refreshments…

• How is the decision taken?...


• HIPPO Algorithm
• Highest Paid Person's Opinion (HiPPO)

Source: Bernard Marr, 2017. Data-Driven Decision Making: Beware Of The


HIPPO Effect!, Forbes

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In God We Trust;
All Others Must Bring Data
— Edwards Deming

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HOW WE DECIDE?

• Early period of the 20th century, many companies were taking


business decisions based on ‘Opinions’ rather than decisions
based on proper data analysis
• Even today…it’s the same..

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24
ME4101D
The Industrial Revolution’s Influence on
Management Practices

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Historical Roots - The Pre-modern Era
• Ancient massive construction projects
• Egyptian pyramids
• Great Wall of China
• Michelangelo the manager
• Classification of Era
• Pre-modern Era
• Classical Approach
• Human Resources Approach
• Quantitative Approach

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Adam Smith’s Contribution to the field of
Management
• Wrote the Wealth of Nations (1776)
• Division of Labour
• Advocated the economic advantages that organizations and society would
reap from the division of labour:
• Increased productivity by increasing each worker’s skill and dexterity.
• Time saved that is commonly lost in changing tasks.
• The creation of labor-saving inventions and machinery.

Eli Whitney and Simeon North –


Charles Babbage – concepts in
Interchangeability of parts –
‘Economy of machinery and
used in manufacturing of
manufacturers’
muskets and pistols

Copyright © 2004 Prentice Hall, Inc. All rights reserved. ME4101D 28


The Industrial Revolution’s Influence on
Management Practices
• Industrial revolution
• Machine power began to substitute for human power
• Lead to mass production of economical goods

• Improved and less costly transportation systems became available


• Created larger markets for goods

• Larger organizations developed to serve larger markets


• Created the need for formalized management practices

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Session - 5
ME4101D INDUSTRIAL ENGINEERING

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Classical Contributions
• Classical approach
• The term used to describe the hypotheses of the scientific
management theorists and the general administrative theorists.
• Scientific management theorists
• Fredrick W. Taylor, Frank and Lillian Gilbreth, and Henry Gantt
• General administrative theorists
• Henri Fayol and Max Weber

Frederick W. Taylor – Father of Frank and Lilian Gilbreth – Henry Laurence Gantt – Gantt
scientific management THERBLIGS – eighteen basic Chart – Chart outlining different
Books: Shop Management; The elements in human motion actions of organization and
Principles of Scientific relationships between them
Management
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Scientific Management
• Frederick W. Taylor
• The Principles of Scientific Management (1911)
• Advocated the use of the scientific method to define the “one best way” for a job
to be done
• Increased efficiency could be achieved by selecting the right people
for the job and training them to do it precisely in the one best way.
• To motivate workers, he favored incentive wage plans.
• Separated managerial work from operative work.

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Taylor’s Four Principles of Management

• Develop a science for each element of an individual’s work. (Previously it is the rule-of-
thumb method).
• Scientifically select and then train, teach, and develop the worker. (Previously, workers
chose their own work and trained themselves as best they could.)
• Heartily cooperate with the workers so as to ensure that all work is done in accordance
with the principles of the science that has been developed.
• Divide work and responsibility almost equally between management and workers.
Management takes over all work for which it is better fitted than the workers. (Previously,
almost all the work and the greater part of the responsibility were thrown upon the
workers).

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Scientific Management Contributors
• Frank and Lillian Gilbreth
• Bricklaying efficiency improvements
• Time and motion studies (therbligs)
• Henry Gantt
• Incentive compensation systems
• Gantt chart for scheduling work operations

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THERBLIGS

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THERBLIGS

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Assignment 1: Industrial Engineering Timeline

Date of announcement: 01/08/2024


Date of exhibition and submission: 14/08/2024

Collect information of atleast 20 Industrial Engineering timelines and then using that
knowledge, create something new to exhibit your creativity. It can be anything such as a
booklet, a poster, a crossword puzzle (with solutions), a Quiz (with solution), a
presentation, a report, an artwork, or any other creative output. You must include the
following information in your work:
1. Year of the contribution
2. Name of the contributor
3. Contribution and brief description

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Session - 6
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• The world’s population is more than three times larger than it was in the mid-
twentieth century
• The global human population reached 8.0 billion in mid-November 2022 from an
estimated 2.5 billion people in 1950, adding 1 billion people since 2010 and 2 billion
since 1998
• The world’s population is expected to increase by nearly 2 billion persons in the
next 30 years, from the current 8 billion to 9.7 billion in 2050 and could peak at
nearly 10.4 billion in the mid-2080s.
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Basic Needs
• People are struggling to meet their basic needs
• Food
• Clothing
• Shelter
• Security
• Health and essential services
• Aspiration is to increase the standard of living – improve quality
of life
• Improving productivity – does it mean exploitation of workforce?
• Not at all – harnessing the available resources – stimulate
higher rate of growth – social betterment – higher standard
of living – improved quality of life
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Productivity
• Most commonly used buzz word in Industrial Engineering
• How well resources are utilized?
• Symbolizes the following:
• Relates output to input – Value addition on the input resource
• Quantitative measure of performance
• Applicable to an enterprise, an industry, a sector of an
economy, or an economy as a whole
• Objective of a firm is to survive and grow
• Increase its profitability is by increasing its productivity
• Productivity improvement refers to the increase in output
per work-hour or time expended
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PRODUCTIVITY IMPORTANCE
• Definition of productivity
• Formally defined by Organization of European Economic Cooperation
as follows:
• Productivity is the Quotient obtained by dividing output by one of the
factors of production. Thus it is possible to speak productivity of capital,
investment or raw materials etc.

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PRODUCTIVITY IMPORTANCE

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PRODUCTIVITY IMPORTANCE
• Two observations:
• Productivity was used to measure increase in output
expressed in numbers of pots produced, in the first case,
and in monetary terms in the second, giving different
values in each case. Depending on what one is interested
in measuring, the nature of the output and input can be
considered.
• Second, while actual production increased from 400 to 500
pots and when expressed in monetary terms did not show
the same corresponding increase. This means that there is a
difference between increased production and increased
productivity.
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PRODUCTIVITY IMPORTANCE
• Decision makers have to decide what is important in the given scenario
• Differentiate between production and productivity
• Production - activity of producing goods or service – a transformation
process
• Emphasis is on the output produced - not on how well the input resources
are utilized
• Productivity – efficient utilization of input resources into produced output
• Focus on how well the input resources are utilized

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PRODUCTIVITY IMPORTANCE
• Assume that the potter decided to replace wood-fired kiln by an oil-fired kiln.
• Cost of this investment is $6,000. Assume that this amount should be amortized
over ten years. In other words, the cost of this investment will be $600 a year for
ten years, or $50 a month.
• Cost of oil is $50 a month more than what he would have paid for the wood.
• Production remained constant at 500 pots a month.
• Measured in monetary terms, the value of the output is 500 X 1.80 = $900 per
month, from which will be deducted $50 for capital investment and $50 for fuel, or
$100.
• Thus his monetary gain is $900 - $100 = $800.
• Productivity expressed in monetary gain has not improved since, while originally
he was producing only 400 pots, he sold them for $2 each — arriving at the same
financial figure.
• How will you justify?

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PRODUCTIVITY IMPORTANCE
• Operator’s quality of work has improved leading towards more sense of
satisfaction at work
• Will have fewer rejects/ products returned - Users' satisfaction will
increase over time - May be able to increase the price again.
• It has become much easier to operate the new kiln.
• Here, the definition of the output has been enlarged to encompass
quality and a relatively intangible factor, that of consumer satisfaction.
• Similarly, the input now encompasses another intangible factor, that of
satisfaction at work.
• Thus productivity gains become more difficult to measure accurately
because of these intangible factors and because of the time lag that
needs to be estimated until users' satisfaction will permit an increase in
prices of the pots produced in the new kiln.
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Session - 7
ME4101D INDUSTRIAL ENGINEERING

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PRODUCTIVITY IMPROVEMENT PROGRAMMES
• 5S
• Total Productivity Maintenance / Preventive and Predictive Maintenance
• Lean Manufacturing
• Kaizen
• Work Study (Method Study, Time Study, Motion Study)
• Assembly Line Balancing
• Single Minute Exchange of Tool and Die
• Scheduling and Sequencing
• Worker Training
• Better working conditions / Automation
• Value Stream Mapping
• Just in Time
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Productivity related to Work Study
(Method Study, Time Study, Motion Study)
• The fundamental tools that result in increased productivity
include methods, time study standards (frequently referred to
as work measurement), and work design.

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Productivity
• Definitions of productivity
• Productivity is defined as the ratio of output produced to the input
resources utilized in the production
• Total Productivity is the ratio of the aggregate output to aggregate input
• Partial Productivity is the ratio of the aggregate output to any single input
• Total Factor Productivity is the ratio of the aggregate output to aggregate
inputs of Labour and Capital
Aggregate Output Aggregate Output
Productivity  Labour Productivity 
Aggregate Input Labour Input
Aggregate Output
Capital Productivity 
Capital Input

Moral: Both types of measures are to used for proper interpretation of performance and subsequent action
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Different forms of Partial Productivity
Sl.No. Partial Productivity Formula Application
1. Labour Productivity Output/ Labour To understand the
effect of increasing/
reducing the hiring of
labour
2. Material Productivity Output/ Material Material management –
Inventory control
3. Capital Productivity Output/ Capital Financial management
4. Energy Productivity Output/ Energy In consideration of
energy required –
Energy audits
5. Advertising and Media planning Output/ Advertising and Marketing Management
Productivity Media planning
6. Other Expenses Productivity Output/ Other expenses Any analysis of the
system
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Numerical Problem 01
A company that processes fruits and vegetables is able to
produce 400 cases of canned peaches in one-half hour with four
workers. Estimate the labour productivity

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Numerical Problem 02
2a) A company generated INR 1,65,000 worth of goods in 1500
work-hours. Determine the Labour productivity
2b) A company generated INR 1,65,000 worth of goods in a week
with 30 employees. Determine the Labour productivity

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Numerical Problem 03
A company is manufacturing 24,000 PPE suits per month by
employing 100 workers in 8 hour shift. The company gets an
additional order from Government to supply additional 6000 suits
in a month. The management decides to employ additional
workers. What will be the impact of employing additional workers
on production and productivity level, if the number of additional
workers employed are (i) 20 (ii) 25 and (iii) 30.
List down your findings and what will be your recommendations

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Numerical Problem 04
A wrapping paper company produced 2000 rolls of paper one
day. Standard price is $1 per roll. Labour cost was $160, material
cost was $50, and overhead cost was $320. Determine the
multifactor productivity.

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Numerical Problem 05
A company produces 160 kg of plastic moulded parts of
acceptable quality by consuming 200 kg of raw materials for a
particular period. For the next period, the output is doubled (320
kg) by consuming 420 kg of raw material and for a third period,
the output is increased to 400 kg by consuming 400 kg of raw
material. Compare between production and productivity in the
three periods.

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Numerical Problem 06
The data related to input and output of a firm for a particular
period is as follows:
Revenue = INR 1,00,000
Labour expenses = INR 30,000
Material expenses = INR 20,000
Capital investment = INR 30,000
Energy expenses = INR 10,000
Other expenses = INR 5,000
Calculate the various forms of productivity

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Productivity measurement at various levels

• Objectives of productivity measurement


• Study the performance of a system over time
• Relative comparison of different systems for a given level
• Compare actual and planned productivity
• Aggregation problem
• Difficulty in arriving at the aggregate output and input
• Express all parameters in terms of monetary terms
• At national and industry level the most commonly used measure is Labour
Productivity (Output per worker)
• It indicates the level of prosperity

How to achieve Higher productivity?


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Ways for Higher productivity
Output
Productivity 
Input

Productivity  Output ; Same Input

Productivity  Same Output; Input 

Productivity  Output;  Input (proportional increase in output is more


than proportional increase in input)
What are the benefits of Higher productivity?
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What are the benefits of Higher
productivity?

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Dynamics of productivity change

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Session - 8
ME4101D INDUSTRIAL ENGINEERING

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Productivity in the individual enterprise

• Enterprise is the smallest unit of an economy


Aggregate output  Gross sales  R
Aggregate input  Cost  C
R
Total productivity  P 
C
Profit  R  C
Profit
Productivity P  1 
C
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Techniques for productivity improvement
• Two issues important to increase in productivity
a. Time required to produce one unit of an output
b. Difference between actual input and required input
• Factors related to product and process design
• Product design
• Standardization of components
• Quality standards
• Mass production machineries
• Process design
• Standard operating conditions
• Human machine interaction
• Working methods of operatives
• Factors related to operational inefficiencies
• Proper planning
• Proper maintenance
• Carelessness and negligence
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Techniques for productivity improvement
• Basic Work Content – irreducible minimum time required to produce
one unit
• Total Work Content = Basic Work Content + Excess Time
• Excess Time = Time due to defects in design or specification +
Time due to inefficient methods of operation
• Ineffective time is the time for which worker or machine or both are
idle due to the shortcomings of the management or the worker
• Total time of operation = Total Work Content + Ineffective Time

How to identify? ME4101D 71

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