MBA,Trimester 2, Sections A,B&C , MPRBA 206, OPERATIONS MANAGEMENT

UNIT 3
SYLLABUS: Plant Location and Layout Planning: Plant Location -Factors affecting Plant locationLocation models- -Types of Layouts,Plant capacity&Supply chain management. Readings: Book: Production & Operations Management ,K . Aswathappa & K.Sridhara Bhat (Revised Edition) : Chapters 7,8,9,13&25 Introduction-plant location : PLANT LOCATION: Deciding the site location of Plants,ware houses. IMPORTANCE;to reduce operation &maintenance costs It has bearing on operational ,financial, employment & distribution patterns. Several alternative locations are to be compared. Reasons for plant location study: to start new venture, expansion, change in demand, supply & conditions, change in cost structure, government policies. PLANT LOCATION: Plant location is the function of determining location for a plant for maximum operating economy and effectiveness. * Steps in Location Selection: To be systematic, in choosing a plant location, the entrepreneur would do well to proceed step by step, the steps being; 1.Within the country or outside; 2.Selection of the region; 3.Selection of the locality or community; 4. Selection of the exact site. Steps in Location Selection 1.Deciding on Domestic or International Location 2. Selection of Region i. Availability of Raw Materials ii. Nearness to the Market iii. Availability of Power iv. Transport Facilities v. Suitability of Climate vi. Government Policy vii. Competition Between Status 3. Selection of Community * Availability of Labour * Civic Amenities for Workers *Existence of Complementary and Competing Industries * Finance and Research Facilities * Availability of Water and Fire-fighting Facilities * Local Taxes and Restrictions * Momentum of an Early Start

* Personal Factors 4.Selection of the Site i. Soil, Size and Topography ii. Disposal of Waste Location Models Various models are available which help identify a near ideal location. The most popular models are: 1. Factor Rating Method 2. Point Rating Method 3. Break-even Analysis 4. Qualitative Factor Analysis Plant location MODELS(cost model)

site

Fixed Cost/ year (Rs) (Absolute)

Variable cost/ unit(Rs)

Vc(Rs) (Absolute)

TC(Rs) (Absolute)

A B(select)

60L 70L

1500 500

2000*1500=30L 2000*500= 10L 2000*4000=80L

90L 80L

50L

4000

130L

Graph for cost model

Cost model findings FC 50 for C,60L for A, 70L for B , Moving from C to A, 50000000++4000Q>=6000000+1500Q, Q>=400 Moving from A to B, 60000000++1500Q>=7000000+500Q, Q>=1000, Upto 400, select C 400-1000, select A Beyond 1000, Select B Quantitative & Qualitative Factor Analysis Item cost Quantitative factors: 1Raw Materials& other supplies 2.Fuel&Power 3.water 4.Labour & supervision 5.Land & building 6.Distribution expenses 7.Freight incoming 8.Taxes TOTAL Qualitative factors: 1.Co facilities 2.Housing facilities 3.Cost of Living 4.Community attitude Good Very Good High Alright Excellent Good Normal Encouraging Site 1 Quantitative factors: 150000 60000 5000 160000 1200000 150000 110000 4000 1839000 Site 2(SELECT) Quantitative factors: 130000 58000 7000 125000 1219000 140000 120000 2000 1801000

OTHER METHODS Prob3)Single facility location problem : Objective: Minimising total cost of transportation Recti Linear co-ordinate method A new plant is to be located, to supply materials(in tonnage) to 5 existing Factories, with x & y coordinates as follows. Where is it to be located? Existing plant# 1 2 3 4 5 X-co-ordinate 200 400 800 1100 1300 weight (Tons) 800 450 1200 300 1500 Total Cumulative weight (Tons) 800 1250 2450 2750 4250 4250, median=2125 (X)

Existing plant# 1 2 3 4 5 (OPTIMAL X,Y)

Y-co-ordinate 200 300 500 800 900 (800.500)

weight 450 1500 1200 300 800 Total

Cumulatitive weight 450 1950 3150 3450 4250 4250, median=2125(Y)

OTHER TECHNIQUES FOR PLANT LOCATION Extension to Multi facility location problem can be done. *Other Techniques: *Mini-Max Location Model, Gravity location Model, Euclidean-distance location model & Covering model & LP model for Warehouse location.

INTRODUCTION-PLANT LAYOUT : PLANT LAYOUT : It is the floor plan of the PHYSICAL FACILITIES ,which are used in production. Layout planning refers to the generation of several possible plans for the SPATIAL arrangement of physical facilities and select the one which minimizes the distance between departments. FACILITY LAYOUT PLANT LAYOUT : Plant Layout refers to the arrangement of machinery, equipment and other industrial facilities for achieving quickest and smooth production. *It is the floor plan of the PHYSICAL FACILITIES ,which are used in production. *Layout planning refers to the generation of several possible plans for the SPATIAL arrangement of physical facilities and select the one which minimizes the distance between departments. *OBJECTIVES OF A GOOD LAYOUT : improving productivity is the overall objective of good layout.

OBJECTIVES OF PLANT LAYOUT: To minimize investment, *To minimize Production time, *Utilise space effectively, *Flexibility of arrangements & operation, *Employee convenience, SAFETY & comfort, *Minimise materials handling cost, *Facilitate the manufacturing process, *Facilitate the Organisation structure FACTORS INFLUENCING FACILITY LAYOUT Materials *Product *Worker *Machinery *Types of Industry *Location *Managerial Policies PRINCIPLES OF LAYOUT The Principle of Minimum Travel *Principle of Sequence *Principle of Usage *Principle of Compactness *Principle of Safety and Satisfaction *Principle of Flexibility

*Principle of Minimum Investment TYPES OF LAYOUTS i.Process layout or functional layout or job shop layout; ii.Product layout or line processing layout or flow-line layout; iii.Fixed position layout or static layout; iv.Cellular manufacturing (CM) layout or Group Technology layout; v.Combination layout or Hybrid layout. Process Layout or Functional Layout or Job Shop Layout

Product Layout or Line Layout

Fixed Position Layout or Static Layout

Cellular Manufacturing Layout or Group Technology Layout

Combined Layout or Hybrid Layout for Gear Manufacturing

COMPARISION OF PRODUCT&PROCESS LAYOUTS

SERVICE FACILITY LAYOUT Service facility layout should provide easy entrance to service facilities from free ways and busy thoroughfares.

STEPS IN LAYOUT PLANNING AND DESIGN

CRITERIA FOR SELECTION AND DESIGN OF LAYOUTS Material handling cost and worker effectiveness are the two criteria used for selecting layout design. *The various methods used for selecting the best layout among several alternatives layouts are 1.Travel Chart Method 2.Load-Distance Analysis Method 3.Systematic Layout Planning LAYOUT TOOLS AND TECHNIQUES Templates use: Plant layout template is a scaled representation of a physical object in a layout. *Operations Sequence Analysis: Operations sequence analysis helps arrange departments graphically analysing the layout problem.

Line balancing is the study that nearly equally divides the work to be done among the workers and minimises the number of employees required to complete a project. LAYOUT DESIGN METHODS: Manual methods: Templates,Travel chart, SLP(systematic Layout Planning) *Computerised Methods: Construction type Algorithms (In a New Plant): Automated Layout Design Program(ALDEP), Computerised Relationship Layout Planning(CORELAP) Improvement type Algorithms (In an existing Plant):Computerised Relative Allocation of Facilities Technique(CRAFT)

PLANT CAPACITY Capacity & Capacity planning CAPACITY IS THE AMOUNT OF OUTPUT A SYSTEM IS CAPABLE OF ACHIEVING OVER A SPECIFIC PERIOD OF TIME. *Capacity planning Capacity planning is central to the long-term success of an organisation. Capacity plans are made at two levels: (i) Long-term capacity plans which deal with investments in new facilities and equipments covering the requirements for at least two years into the future and (ii) Short-term capacity plans which focus on work-force size, overtime budgets, inventories etc. Long-Range Capacity Planning Long-Range Capacity Planning A long term strategic decision that establishes a firms overall level resources. Three major capacity decisions are: i. How much capacity to be installed, ii. When to increase capacity and iii. How much to increase.

Types of Capacity Production capacity: Maximum rate of production or output of an organisation. *Design capacity: The maximum output that can possibly be attained. *Effective capacity: The maximum output given a product mix, scheduling difficulties, machine maintenance, quality factors, absenteeism etc. *Maximum capacity: The maximum output that a facility can achieve under ideal conditions. Also known as peak capacity.

VARIETIES OF CAPACITY Prodction capacity Max output rate,eg:100 cars/day Design capacity Max output in ideal conditions Effective Capacity Maximum capacity Peak capacity(Ideal conditions). For one unit, it is called rated capacity.

Less than design capacity,due to product mix constraints,scheduling Problems, maintenance, absenteeism, Quality problems etc

i)Capacity: output capability in a Specified period

(ii) Long term

Intermediate period

Short term

1-2years

to 1 yrs

1 month

For buildings, equipment, MH equipments etc ,Forecasting demand,Technology, competition,funds etc,Establish cushion,Strategic planning :How much installed capacity, when/How much increase

Hire/fire, out sourcing policies

Daily schedules, Mc loading, OT,etc

iii)Measures of capacity: 100 cars/day, 1000 patients/day etc, Capacity utilisation= capacity used/ Design capacity( best operating level) ( ie, Average unit cost=minimum) (iv)Determinants of effective capacity: Facilities(Layout etc), Product(/Service ) factors(Product line, product mix etc), Process factors, H.R.factors, Operational factors(Inventory, suppliers etc), External factors(Statutes,acts,govt etc) (v)Forecasting for long term demand: Total market, market share vi)Sources to meet future capacity needs: For increase, thro expansion, sub contract & reactivating stand by equipments etc, For decrease of capacity, by selling off equipment, inventories etc. (vii)Economies/Dis-economies of scale: Economies of scale: The concept which states that the average unit cost of product can be reduced by increasing the rate of output. Bath tub curve, x-axis, volume & on y-axis, Average unit cost Best operating level: The annual output which results in the least average unit cost. Diseconomies of scale: Above a certain level of output, additional volume of output results in ever-increasing average unit costs. This phenomenon is referred to as diseconomies of scale.Economies of scope: The ability of a firm to produce many product types in one highly flexible manufacturing facility at a lesser cost than in separate production facilities (ix)Sub- contractor net works (x)Experience curve: The concept that allows a firm to increase its production capacity without additional capital investment. Improved experience in production methods& H.R.skills

xi)Capacity alternatives: Designing flexibility, Differentiation of matured/new products, big picture approach ,Chunks of capacity (Steel plant), smoothing out(Peak& normal for APSRTC) (xi)Financial models: BEP ANALYSIS(Fixed/Variable costs), Financial analysis(Present Value, Cash-flow analysis),Decision theory, Computer simulation & waiting(Queuing) line theory SUPPLY CHAIN MANAGEMENT (SCM) SUPPLY CHAIN: A sequence of suppliers, warehouses, operations and retail outlets, i.e., Organistions that are involved in producing and delivering a product or service. SUPPLY CHAIN MANAGEMENT: Integration of various activities encompassed by the supply chain through improved supply chain relationships to achieve a sustainable competitive advantage. BASIC PURPOSE of supply chain management is to control inventory by managing the flow of materials throughout the supply chain. Globalisation is customer driven, Need for universal sourcing of Materials etc exists. Movement of Products and Materials Methods : (1) Conventional Movement,(2) Logistics Management, L.M (3) S.C.M (may also be called as Integrated L.M)

OBJECTIVES OF SCM

1.To maximise the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customers request. 2.To achieve maximum supply chain profitability. Supply chain profitability is the total profit to be shared across all supply chain stages. 3.To reduce the supply chain costs to the minimum possible level. OBJECTIVES OF SCM(ANOTHER VIEW) 1)Fulfill arranging RIGHT PRODUCT with RIGHT QUALITY at RIGHT PLACE at RIGHT TIME at LEAST COST. (2) Inventory Management (3) Support Customer Service (4)Reduce Cycle Time S.C.M BLOCK DIAGRAMMATIC REPRESENTATION Index:1:customer service,2:sales,(3)customers,(4)finished goods ware house,(5)order processing,(6)plant(s),(7)supplier(s),(8) raw materials ware house

MAJOR ACTIVITIES

1.Purchasing 2.Logistics 3.Warehousing 4.Expediting.

PURCHASING Purchasing Cycle Series of steps that begins with a request for purchase and ends with notification of shipment received by the customer in satisfactory condition. Outsourcing Out sourcing: Buying goods or services instead of producing or providing them in-house.. JIT Purchasing JIT purchasing involves long-term relationship with a few suppliers Evaluating Sources of Supply (Vendor Analysis) Vendor analysis is the process of evaluating vendors in terms of price, quality, reputation and service. Supplier Partnerships Supplier partnership is crucial to the success of supply chain management.

LOGISTICS & WAREHOUSING Logistics: The movement of materials and information in a supply chain. Warehousing: Warehousing includes storing, dispersing, ordering and accounting for all kinds of materials used for production and distribution. Contemporary Developments in Warehousing *Bar Coding *Electronic data interchange *Distribution requirement planning *JIT deliveries LOGISTICS CONCERNED WITH : Facility structure, Inventory , Ware Housing, Packaging, Distribution, Communication S.C.M FUNCTIONS S.C.M HAS TWO FUNCTIONS, PHYSICAL FUNCTION AND MARKET FUNCTION. (i) S.C.M Physical Function: (1)Raw Materials, Conversion to Parts & components and taking them to next points(stages) and upto Finished Goods.( The Finished Goods should match with Customer Requirements). (2) forecasting of Requirements (3) Selection of Suppliers (4) Procurement of Materials (5) Inventory Control (ii) S.C.M Market function (1)Scheduling of Production (2)Scheduling of Shipping (3)Scheduling of DeliveryGreat customer Care Service NOTE:The advent of IT made it possible to integrate all the components of Supply Chain for timely and accurate online information / reports. STRATEGIES & MANAGING OF SCM SCM STRATEGIES 1.Multiplesuppliers/2.Fewsuppliers/3.Vertical integration/4.Keiretsu network/5.Virtual companies

SUPPLY CHAIN MANAGING 1.Postponement /2.Channel assembly/3.Drop shipping and special packaging /4.Blanket orders/5.Invoiceless purchasing/6.Electronic ordering and funds transfer/7.Stockless purchasing/8.Standardisation Supply Chain Dynamics Three keypoints about supply chain dynamics are: 1.The supply chain is a highly interactive system. 2.There is an accelerator effect of demand changes. 3.The best way to improve the supply chain is to reduce the total replenishment time and to feed back actual demand information to all levels. To improve efficiency and effectiveness of a supply chain it is crucial to increase co-ordination both across firms and within firms which are members of the supply chain. Coordination: To improve efficiency and effectiveness of a supply chain it is crucial to increase coordination both across firms and within firms which are members of the supply chain. Supply Chain Performance FOUR MEASURES OF SUPPLY CHAIN PERFORMANCE ARE: 1.Delivery 2.Quality 3.Time 4.Cost VIRTUAL SUPPLY CHAIN: A supply chain which consists of at least one virtual company that co-ordinates all of the activities of the supply chain. SCM Improvement There are two basic ways to improve supply chains, BY CHANGING STRUCTURE OR INFRASTRUCTURE. (1) STRUCTURAL CHANGE IN A SUPPLY CHAIN INVOLVES : -Vertical Integration -Process Simplification -Configuration -Changes -Product redesign -Outsourcing logistics (2) INFRASTRUCTURE CHANGES IN SUPPLY CHAIN INVOLVES: 1.Cross-functional teams 2.Partnerships 3. Set-up time reduction 4.Information systems 5.Cross-docking

UNIT 4
Productivity-Introduction & Basic concepts of Productivity,Work Study,Method Study &Work Measurement Readings: Book: Production & Operations Management,K.Aswathappa & K.Sridhara Bhat .(Revised 2008 Edition) : Chapters 10

PRODUCTIVITY PRODUCTION refers to the total output. PRODUCTIVITY: The amount of goods and services produced with resources used.(Production/ unit of Resources, like per man-shift, per machine shift etc.,) Concept: It is the ratio of output to input. Inputs can be labour, machines. materials,money(capital),power etc PRODUCTIVITY= OUTPUT / INPUT Tangible, if input &output are tangible. It does not measure intangible outcomes like quality of work, user satisfaction etc HOW TO MANAGE PRODUCTIVITY? How to improve productivity? For obtaining same output , decrease input/inputs. Retaining same input , increase input/inputs. Etc.,. To improve productivity ; Available inputs are to be utilized effectively (Eg; Like in Japan,USA,Korea ..) VARIETIES Partial productivity = Output in a given period / Labour hours used in the period Total productivity = Output in a given period / Labour + Capital + Materials + Energy used in the same period Labour Productivity There are three ways of measuring labour productivity; (1)Output / Man-hours used, (2)Total Labour hours used / output, (3)Added value for the product / Total wages, Total factor productivity: Production at standard price / Costs of Labour , Materials, Overheads, Capital Eg; 180 units X 500 Rs/unit=Rs90000 / Rs4000+Rs18000+Rs12000+Rs2000 =90000/36000=2.50 MULTI FACTOR PRODUCTIVITY: It is the prody of different inputs.

 Multi factor productivity/partial productivity Labour productivity= 90000/4000=22.5 Materials productivity =90000/18000=5.0 Over Heads productivity =90000/12000=7.5 Capital productivity =90000/2000=45.0

Other varieties of productivity: Manpower productivity =units of output /Total Man-Hours , Profitability ratio = Net profit/ Capital employed, Mc productivity = output/Mc Hours, Energy productivity= Output/ Energy used, Similarly Material productivity IF STNDARDSS CAN NOT BE SET, FINANCIAL RATIOS(F.R) CAN BE USED. Added value= A.V=O/P-I/P=Sales-(Raw materials+ Bought items + Work services) F.R1=A.V/ Labour costs F.R2=A.V/ Conversion costs MANAGERS ROLE : Scope for manager to improve each type of prody exists,by setting standards for input consumption. In service industry ,Quality of service is also important. Eg; Bank services, mechanic services ,Cook services Etc., Due to Liberalisation, competitiveness, prody increases.

SIGNIFICANCE OF PRODUCTIVITY: Beat competition, Top mgt decision making(3 varieties), Qly of life, Resources conservation, Prosperity for firm, indy ,country, Labr prosperity, Standard of living, Expansion, Good will, Better off staff (Prody is the only way for countrys OVERALL PROGRESS FACTORS AFFECTING PRODUCTIVITY: Investment, Capital/ Labour Ratio, Extent of R&D, Capacity utilisation , Govt Regulations, Condition and age of Plant & Machinery, Technology Level , Energy costs, Work force Mix, Work ethics, Job tenure, Attitude of Management/Unions WAYS OF IMPROVING PRODUCTIVITY Understanding the factors that influence the relationship between output and input. Viz., worker effort, capital equipment for modernization, PPC, Inventory control, O.R, cost control, budgetary control, Market research, MAINTENANCE ETC

PRODUCTION FUNCTION-AREAS OF PRODUCTIVITY

TO BE IMPROVED Production volumes & Yield

TO BE CONTROLLED Rejection rates Rework rates Idle time-men,Mcs Machine set up time Over time Absenteeism, Pilferage, misconduct Accidents , Inventory

OTHERS Delivery Schedules Work study norms Processes,procedures Proper M.I.S House keeping Training,team building

TQM,BPRE , Automation

CONCLUSION Productivity sustains national economy Helps in competing internationally It is life line for an organisation.

WORK STUDY Work study method was developed to improve performance of a given work. Work study: It is defined as that body of knowledge concerned with the ANALYSIS OF WORK METHODS AND EQUIPMENT used in performing a job, the DESIGN OF AN OPTIMUM WORK METHOD and the STANDARDISATION OF PROPOSED WORK METHODS. The purpose of work study is to determine the best or most effective method of accomplishing a necessary operation Objective of work study is to improve operational efficiency. Methods engineering includes work simplification, job design, value analysis and the like. Time study and motion study are results of practices developed by F.W. Taylor, Frank and Lillian Gilbreth.

Relationship of Time and Motion Study to Work Study Time study and motion study are results of practices developed by F.W. Taylor, Frank and Lillian Gilbreth. Time study: Exercising control over the output in respect of a job by setting standards for performance.

 Time study may be used to compare the effectiveness of alternative work methods. Work study comprises of (a) METHOD STUDY &(b) WORK MEASUREMENT Steps Involved in Work Study

1.1 ) METHOD STUDY Method study is also known as methods improvement and Prime objectives of method study is to eliminate wasteful and inefficient motions. Industrial Engineering Work Stud y Method Stud y Process Charts Process Charts Symbols METHOD STUDY is the systematic recording and critical examination of E X ISTING and PROPOSED WAYS of DOING WOR K as a means of DEVELOPING and APPLYING EASIER AND MORE EFFECTIVE METHODS and REDUCING COSTS ( B..S.I) 6 Steps Method study procedure Select/Record/Examine/Develop/Install/Maintain 6 STEPS METHOD STUDY PROCEDURE Select the one with potential Record Examine Develop Install Maintain METHOD STUDY USE OF PROCESS CHARTS : Process Charts Symbols are utilized for simplifying the Recording of the Method. The symbols represent different types of events. Circle to represent Operation , Square for Inspection, Arrow for Transport, Triangle for Storage and D for Delay ( Only first two provide value addition) Process Charts used in Method Study Outline process chart/Operation process chart/Flow process charts/Two handed process chart/Multiple activity chart/The man machine chart or worker-machine chart /Flow diagram/String diagram/SIMO chart MOTION STUDY &MICRO MOTION STUDY Motion study is the science of eliminating wastefulness resulting from using unnecessary; ill-directed and inefficient motion. The aim of motion study is to find and perpetuate the scheme of least waste methods of labour. Micro motion study provides a valuable technique for making minute analysis of those operations that are short in cycle, contain rapid movements and involve high production over a long period of time. Micro-motions are also known as Therbligs. THERBLIGs 1. Search (Sr) /2. Select (St) /3. Grasp (G)/4. Transport empty (TE)/5. Transport loaded (TL)/6. Hold (H)/7. Release load (RL) /8. Position (P)/9. Pre-position (PP) 10. Inspect (I) /11. Assemble (A) /12. Disassemble (DA)/13. Use (U)/ 14. Unavoidable delay (UD)/15. Avoidable delay (AD)/16. Plan (Pn)

17. Rest for overcoming fatigue (R)/18. Find (F) PRINCIPLES OF MOTION ECONOMY ARE DIVIDED INTO THREE GROUPS. a. Effective use of the operator b. Arrangement of the workplace c. Tools and equipment METHOD STUDY TOOLS: Motion study, Facilities Layout, Work Simplification, Flow process Charts, Ergonomics METHOD STUDY- BENEFITS: Productivity Improvement , Further method Improvements, Optimisation of Resources, Cost Reduction, Profitability improvement, Competitive edge, Industrial growth, Improvement of Countrys Economy

1.2 WORK MEASUREMENT This form an important part of work study, itself a sub part of Industrial Engineering. The dependency may be shown as Industrial Engineering . Work Study . Work Measurement(Time Study) DEFINITION: TIME STUDY is a work measurement technique for recording the time and rating for the elements of a specified job carried out under specified conditions and for analyzing the data so as to obtain the time necessary for carrying out the job at a defined level of performance by a qualified and trained worker ( B .S .I)

QUALIFIED WORKER : "A qualified worker is one who is accepted as having the necessary physical attributes, possessing the required intelligence and education and having acquired the necessary skill and knowledge to carry out the work in hand to satisfactory standards of safety, quantity and quality"

TECHNIQUES : DIRECT TIME STUDY/ SYNTHESIS METHOD/ANALYTICAL ESTIMATING./PRE DETERMINED MOTION TIME SYSTEM (PMTS)/WORK SAMPLING OR ACTIVITY SAMPLING OR RATIO DELAY METHOD.

WORK MEASUREMENT INVOLVES 7 STEPS. 1. Break the job into elements 2.Record the observed time for each element by means of either time study, synthesis or analytical estimating. 3.Establish elemental time values by extending observed time into normal time for each element BY APPLYING A RATING FACTOR 4.Assess relaxation allowance for personal needs and physical and mental fatigue involved in carrying out each element. 5.Add the relaxation allowance time to the normal time for each element to arrive at the work content. 6.Determine the frequency of occurrences of each element in the job, multiply the work content of each element by its frequency ( ie .number of time the element occurs in the job) and add up the times to arrive at the work content for the job. 7 .Add contingency allowance if any to arrive at the standard time to do the job.

FIVE METHODS OF WORK MEASUREMENT 1.TIME STUDY Time study is concerned with the determination of the amount of time required to perform a unit of work. Objective of time study is to establish the standard time. Time study by stop watch: The steps involved are a) Select the job to be studied b) Select the worker to be studied c) Conducting stop watch time study 2. SYNTHESIS METHOD Synthesis Method: Building up the time required to do a job at a defined level of performance. 3. ANALYTICAL ESTIMATING Analytical Estimating: Used to determine the time values for jobs having long and non-repetitive operations. 4. PREDETERMINED MOTION TIME SYSTEM (PMTS) PMTS: Normal times are established for basic human motions. 5. WORK SAMPLING OR ACTIVITY SAMPLING OR RATIO-DELAY METHOD Work sampling helps determine allowances for inclusion in standard times. The work sampling study consists of essentially the following steps: 1. Determine the objective of the study, including definitions of the states of activity to be observed. 2. Plan the sampling procedure including: (a) An estimate of the percentage of time being devoted to each phase of the activity. (b) The setting of accuracy limits. (c) An estimation of the number of observations required. (d) The selection of the length of the study period and the programming of the number of readings over this period.

(e) The establishment of the mechanics of making the observations, the route to follow and the recording of data. 3. Collect the data as planned. 4. Process the data and present the results.

WORK MEASUREMENT - BENEFITS: Productivity measurement & Improvement , Man power planning, Design of Wage Incentive Schemes, Cost Budgetting , Performance Measurement, PPC, M/C capacity planning, Further method Improvements WORK MEASUREMENT PROBLEMS Q1)Observed timing=20 Seconds , compute Normal/Basic time ? If Rating is 80%, Normal/Basic time= 20*0.80=16 Secs If Rating is 125%& 100%,, respective Normal/Basic times: 20*1.25=25 Secs &20*1.00=20 Secs Q1.1) Normal/Basic timing=20 Seconds; If Rating is 80%, Observed time= 20/0.80=25 Secs If Rating is 125%/100%, respective Observed time= 201.25=16 Secs& 20/1.00=20 Secs Q2)OT=1.53 Mins, R=80%, Allowances=16%, compute N.T , S.T, Production standards, productivity productivity?(NT=OT*R,ST=NT*(1+R), productivity =Output/man-hour,output/man-shift etc) N.T=1.53*0.80=1.224 Mins/Item , S.T=1.224*1.16=1.41984, Production standards =60/1.41984=42.26 Items/hour,42.26*8=338 Items/shift, 338*3=1014 Items/ Day & productivity = 42.26 Items/ man-hour,42.26*8=338 Items/man-shift, 338*3=1014 Items/ man-Day Q3)In an 8hours plant study, prodn=320 nos.,, idle time(as per work sampling)=15%, Performance rating=120%, Allowances=12% of Normal time, Determine standard time / unit produced? production=320 nos in 8 hours(480 Mins), Actual Production time=480 15% X 480=480-72=408,OT=408/320= 1.275 NT= OT X R= 1.275 X 1.20=1.53 ST=NT X (1+R%)=1.53*1.12=1.7136 Production Standard = 60/1.7136=35/Hour. 35 X 8=280/Shift, 280 X 3=840/Day

Q4)A work study Engineer conducted a time study for a job and study results are summarised.(Time in mins, RA=12%,CA=3%). Identify &remove outliers.COMPUTE Basic time & S.T for the job Ele ment C1 C2 C3 C4 R (%) Ttl Avg N.T (=ot* R) 1.168 0.898 12% R.A(=. 12 * N.T) 3% C.A (=.03 * N.T)

1 2

1.25 0.97

1.33 0.90

1.30 0.80

1.31 0.92

90 100 (M/ C) 100 110 100

5.1 9 3.5 9 5.8 1 8.8 9 3.8 4

1.298 0.898

3 4 5 T

0.91 2.12 1.25

1.88 2.20 1.18

1.96 2.15 1.41

1.97 2.42 2.22

1.937 2.223 1.280

1.937 2.445 1.280 7.728 0.927 0.232 =8.887

PROBLEMS ON WORK SAMPLING: REFERENCE TO TEXT BOOK

UNIT 5
Introduction to Material Management ,Costs associated with Inventory , Economic Ordering Quantity and ABC Analysis ,Basic concepts of Total Quality Management(TQM) ,Acceptance Sampling , Control Charts & JIT Production systems (19 Jan) Readings: Book: Production & Operations Management,K.Aswathappa & K.Sridhara Bhat .(Revised 2008 Edition) : Chapters 17,19,20,21,22,23, &24