Fayol’s General Principles of

Management
1. Division of Work
2. Authority
3. Discipline
4. Unity of command
5. Unity of direction
6. Subordination of individual
interest to general interest
7. Remuneration
8. Centralization
9. Scalar chain
10. Order
11. Equity
12. Stability of personnel tenure
13. Initiative
14. Esprit de corps
 Production Planning and Control

• Production planning and control can facilitate

the small entrepreneur in the following ways.


Optimum Utilization of Capacity

Inventory control

Economy in production time

Ensure quality
Steps of Production Planning and Control
Production Planning and Control

Production Control
Production Planning

Planning Dispatching

Routing Following up

Scheduling Inspection

Loading Corrective
Measures
• Aggregate Planning: The objective of aggregate
planning is to find out the most economical
method of using production resources to meet
fluctuating demands of production output

• Routing: Routing procedure involves following

different activities.
1. The operations to be carried out on a job.
2. The machine or work centre to be used.
3. The details of operations to be performed.
4. The sequence of operations from
raw material to finished product.
• Scheduling: 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.
– 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.
– Production schedule: It takes into account following
factors.
• 1. Physical plant facilities
• 2. Personnel who possess the desired skills and experience
• 3. Necessary materials and purchased parts.

• Loading: Loading determines who will do the work as

routing determines where and scheduling determines
when it shall be done.
 Production Control

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.
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• Follow up: All problems or deviations are
investigated and remedial measures 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.
 SPECIFICATION OF PRODUCTION
REQUIREMENT
1. Part Drawing
(Production
Drawing)
2. Machining Detailed
and Sequences
3. Materials &
components
4. Quality level
required
5. Production Quantity
 WORK STUDY

• Work Study implies the study of human work.

Work study investigates the work done in
organization and it aims at finding the best
and most efficient way of using available
resources men, material, machine and money.
 Work Study & Productivity
WORK STUDY

METHOD STUDY WORK MEASUREMENT

Choose & evaluate Choose and

one best standard evaluate one best
Method standard time

Standard Time & Standard Method

Rise in Productivity
 Objectives of Work Study


Improved working
process and 
standardized.

 to the
Less fatigue
 operator.

 Efficient  of
utilization
men material.
 
To evaluate human work.

To reduce ineffective time

due to management &
workers.
 Benefits of Work Study
 
Improved Productivity.

 in
Higher efficiency
 productivity.

 cost is
Manufacturing
 reduced.


Quicker and accurate
 delivery dates.

Good employee- 
 employer relationship.

 Job 
satisfaction to
workers.
 
Higher wages and
incentives to workers.
 Method Study or (Motion Study)

• Method study is systematic recording and

critical examination of existing and proposed
ways of doing work, as a means of developing
and applying easier and more effective
methods and reducing costs.
 Objectives of Method Study
The improvement of process
and procedures.
The improvement of factory,
shop and workplace layout
and of the design of plant and
equipment.
Economy in human efforts
and reduction of unnecessary
fatigue.
Improvement in use of
materials, machines &
manpower
To find out the best way of
doing a job.
 To standardize the best
method.
Effective material handling

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 Various Considerations
Economic Consideration Technical Consideration Human Reactions

1. Operation involving 1.Bottlenecks holding 1. More acceptable if it

great deal of manpower production can Improve working
condition

2. Highly fatigued work 2. Movement of material 2. Reduce the efforts and

over long distances fatigue of workers
between shops

3. Operations involving 3. Inconsistency in

repetitive work quality
 Method Study

Select the subject to be studied

Record facts relating to existing method

Diagram Charts Model

Examine all relevant facts critically

Purpose Place Sequence Person Means

Develop alternative to existing methods

Install the new method

Plan-arrange-implement

Maintain new method

Verify its implications at regular intervals

Higher Productivity
 Work Measurement
• Work measurement is concerned with
elimination of ineffective time and
establishment of time standards for a job.

• “Work measurement is a technique to

establish the time for a qualified worker to
carryout a specified job at a definite level of
performance.”
 Uses of Work Measurement
1. To reveal the existence of ineffective time.
2. To compare the efficiency of alternative
method.
3. To determine with the help of man machine
chart the number of machine an operator
can run.
4. To set the time standard for carrying out the
work.
5. As a basis for realistic and fair incentive
scheme.
 Time Study

• Time study is a work measurement technique

for recording the times performing a certain
specific job or its elements carried out under
specified conditions, and for analyzing the
data so as to obtain the time necessary for an
operator to carry it out at a defined rate of
performance.
 Time Study Equipments
1. Stop Watch A fly back decimal- minute
stopwatch is most commonly used stop watch.
2. The Study Board Time study board is flat board ,
of plywood or plastic sheet, having fittings to
hold stop watch and time study forms.
3. Time Study Forms Time study forms are printed
forms of standard size constant information like
product name, operation number, description of
operation, time study observer’s name etc are
preprinted on the top of the sheet-
 Time Study Form

Time Study Form

Product-------- Time Study -------------

Operation No----------- Observer
Description of Operation -------------------- Date-------------------
No. of Cycles 5(say)
Standard time found------

Element Description Observed time Average Rating Normal All Std.

observed Time factor Time Time
1 2 3 4 5
 Procedure for Collecting Time Study Data
• The following are the procedural steps in stop Watch time study:-
1. Identify the operation to be studied
2. Obtain the improved procedure from method study departments.
3. Collect and check necessary equipment
4. Select the worker to be observed for Time Study
5. Explain the worker the objective of Time Study
6. Explain the worker the improved procedure.
7. Break the operation into small elements.
8. Determine the number of observations to be timed for each element.
9. Conduct the observation and record them on time study form
10. Rate also the performance of the worker during step.
11. Calculate normal time from observed time by using performance rating factor
Observed time X Rating factor
Normal time=________________________________
100
13. Add process allowance, rest and personal allowance and special allowances to normal
time in order to obtain standard time.
Conversion of observed Time to Standard Time

Observed Time
Apply Performance Rating Factor

Normal Time
Add allowances like personal
allowance, process allowance

Standard Time
 Advantages of Time Study

1. Standard labour cost per unit of product

can be calculated.
2. Comparisons of actual and
standard production.
3. Enable further improvement in work
methods, training necessity and
better workplace layout.
 Limitations of Time Study

1. Not suitable for non- repetitive jobs.

2. Not suitable for highly automated work place
3.May affect operator’s morale if output standard
is not attained.
4. While rating a worker error may come due to
subjectivity involved in it.