INDUSTRIAL ENGINEERING

B.TECH. DEGREE COURSE

SCHEME AND SYLLABUS
(2002-03 ADMISSION ONWARDS)
MAHATMA GANDHI UNIVERSITY
KOTTAYAM
KERALA

INDUSTRIAL ENGINEERING

MODULE 1
Introduction: Evolution of Industrial Engineering - Fields of application of
Industrial Engineering - Functions of Industrial Engineer - Organisational structure
of Industrial Engineering Department.
Production and Productivity: Types of production-continuous production-
intermittent production. Productivity-productivity index-factors affecting
productivity-techniques for productivity improvement.
Value Engineering: Historical perspective-reasons for poor values-types of values-
the different phases of value analysis-applications of value analysis.
Module 2
Plant design: Plant location-factors influencing plant location. Plant layout-types of
plant layout-introduction to layouts based on group technology, just in time and
cellular manufacturing systems.
Material handling: Principles of material handling-selection of material handling
devices-types of material handling equipments.
Maintenance and replacement of equipments: Types of maintenance.
Depreciation-methods of calculating depreciation. Selection of equipments-methods
for replacement studies.
Module 3
Methods Engineering: Process charts and flow diagrams-Micro motion study-Work
measurement techniques.
Job evaluation and merit rating: Objectives of job evaluation-Methods of job
evaluation. Objectives and uses of merit rating-Merit rating plans.

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Module 4
Industrial relations: Fatigue - Communication in industry - Industrial disputes -
Trade unions - Quality circles - BIS - ISO - Labour Welfare - Industrial safety
-Statutory provisions in labour legislations.
Ergonomics: Objectives and applications.
Module 5
Inventory control: Determination of Economic order quantity and reorder level.
Quality control: Destructive and nondestructive testing methods. Statistical quality
control-process control charts-acceptance sampling.
Cost accounting and control: Elements of cost - Selling price of a product - Types
of cost - Allocation of overheads.
References
1. Production system - Riggs
2. Production control - Hiejet
3. Human factors in Engg design - Mc Cormic E.J.
4. Industrial Engg & Management - O.P.Khanna
5. Industrial Organisation & Management - Banga & Sarma
6. Industrial Engg - A.P.Verma
7. Value Engg - Mudge
8. Manufacturing organization & Management - Amrine
9. Time & Motion Study - Lowry
10. Quality Control - Hansen

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 MODULE-1
INDUSTRIAL ENGINEERING
Industrial engineering is the applied science that deals with the design,
improvement and installation of production systems. These are integrated systems of
people, materials, equipments and energy for the production and delivery of goods
and services. (The American Institute of Industrial Engineers)
History
The history of Industrial engineering is considered to start with the industrial
revolution in the eighteenth century. It has then passed through various phases with
prominent contributions from individuals. During the late nineteenth century the
impetus for the development of industrial engineering was primarily provided by
engineers/managers in the United States. During this period the most significant
contribution to the discipline of industrial engineering, perhaps, came from Frederick
W Taylor, who was a mechanical engineer. He initiated the concept of time study
applied to production operations. He used the term scientific management for his
planned approach to improving production and shop management.
The great depression of the 1930s made managers very cost conscious and
resulted in widespread application of industrial engineering principles and
techniques. Then the World War II demands for increased production provided
further stimulus to industrial engineering development.
The modern industrial engineering techniques had their origin during the
period between 1940 1nd 1946.the development of the techniques as listed below
took place during that time.
Value engineering
Operations research
CPM and PERT
Ergonomics or human engineering
System analysis
Advances in IT and computer packages
Mathematical and statistical tools
Thus industrial engineering has taken a firm position in the organization and it is
contributing maximum towards increasing productivity and efficiency in particular
and quality of work-life in general.
Applications of Industrial Engineering
In the early years industrial engineering was primarily applied to
manufacturing industries for improving the production processes. After 1940 the
following developments took place:
Development of applied mathematics leading to industrial application
of operations research techniques like linear programming, simulation
and statistical sampling
Development of industrial psychology for business applications
Development of computers and various software packages for
industrial application of electronic data processing

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 These developments widened the scope of industrial engineering and its
application spread to other fields. Industrial engineering techniques are now applied
in non-manufacturing sectors such as:
Construction and transportation
Farming and business
Airline operations and maintenance
Public utilities and hospitals
Government and armed forces.
Even though it is applied in many varied sectors, industrial engineering still
finds major applications in manufacturing plants and industries. In an industry,
besides production, other departments utilizing industrial engineering concepts and
techniques are: marketing, finance, purchase and industrial relations.
Functions of an Industrial Engineer
Industrial engineering activities span the entire enterprise. The most common
functions of an Industrial Engineer are:
1. Developing the simplest work methods and establishing the one best
way of doing work (standard method)
2. Establishing the performance standards as per the standard methods
(standard time)
3. Developing a sound wage and incentive scheme
4. Assisting in the design of a sound inventory control, determination of
economic lot size for production
5. Preparing a detailed job description and job specification for each job
and evaluating them
6. Establishing a sound cost system and developing cost control
programmes
7. Sound selection of site and developing an optimal layout for smooth
flow of work
8. Developing standard training programmes for various levels in the
organisation

The different roles an industrial engineer may need to take on are:

1. Adviser/Consultant for interpretation of data, review, etc.
2. Advocate/Activist to promote actively a process or approach
3. Analyst to analyse a problem to obtain insights
4. Liaison agent to interface between company and customer/user
5. Motivator to provide stimulus/skills
6. Decision-maker to select a preference from alternatives
7. Designer/Planner to produce solutions, specifications
8. Expert to provide high level knowledge, experience, skills
9. Coordinator/Integrator to achieve the defined goals
10. Innovator/Inventor to produce creative solutions
11. Measurer to obtain data and facts
12. Project Manager to operate, supervise, evaluate projects
13. Trainer/Educator in the skills and knowledge of industrial engineering

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 14. Negotiator/Conflict manager for proper workplace relations

Organisation of Industrial Engineering Department

There is no firm rule regarding the place of industrial engineering in an
organization. Considering the plant-wide spread of industrial engineering activities,
the industrial engineering organization should be placed with the executive having
the overall responsibility of the plant operations.
The factors that influence the position and structure of the industrial
engineering department in an organization are:
1. Employee strength
2. The scope of industrial engineering activities
3. The complexity of the manufacturing organization

Small company 100 to 300 direct workers: Two or three industrial engineers may
undertake all the responsibilities. Typically the emphasis will be on work methods,
fixation of performance standards, plant layout, cost control, etc. Their work will be
coordinated by the operations head.
Medium company 300 to 600 workers: The structure generally takes the form of
different sections for the important industrial engineering activities. Production
planning and control, quality assurance, work study, material planning, etc., are
typical sections, with a senior engineer coordinating the functioning of the sections.
Large company above 600 direct workers: In a large company, in addition to
routine industrial engineering activities, emphasis is given to activities related to
value engineering, operations research, training and wage programmes. In these
companies industrial relations demand intensive attention and greater expertise.

PRODUCTION
Production is a process developed to transform a set of inputs like men,
materials, money, machinery and energy into a specified set of outputs like finished
products and services in desired quality and quantity in order to achieve the
objectives of the enterprise.
The production system is part of a larger system the business organization.
It is that part which produces the organisations products. Production is the basic
activity of all organizations round which all other activities revolve. In an efficient
production or operations process, the output is of greater value than the input. Thus
the role of operations is to create value.
Types of Production Systems
The production activities are classified according to the volume of production
and product standardization as follows:
Job shop production
Batch intermittent production
Project industries
Process industries
Mass production
Assembly lines
Cellular production

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Conventionally, the first three are grouped as Intermittent Production and the rest as
Continuous Production.
Flow or Continuous Production
In continuous production the production process is carried out through a
sequence of operations which forms a continuous movement or flow. This production
method is for a single product in large numbers or at least a few similar products with
a standard set of operations and sequences. Steel mills, automobile plants, cement
factories, oil refineries, etc., are examples of continuous production system.
Characteristics
1. The volume of output is generally large and items are produced in
anticipation of demand.
2. The product design, the production operations and their sequence are
standardized.
3. Machines and equipments are arranged according to the operations sequence.
4. Special purpose automatic machines are used to perform standardised
operations.
5. Machine capacities are balanced so that the material flow is uniform from
input end to output end.
6. Fixed path material handling equipments are used due to predetermined
operations.
Advantages
1. Work in progress and storage space are minimum due to no queuing and
waiting periods.
2. Handling of materials is reduced.
3. Any delay at any stage is immediately detected resulting in automatic control
of direct labour content.
4. Due to inspection-in line deviations from standard are detected and
corrected quickly, thus reducing rejections.
5. Quick return on capital as a result of economies of scale, better inventory
control and quality assurance.
Disadvantages
1. It is a very rigid system not permitting any production of non-standard
products.
2. Any disruption in the process flow results in stoppage of all production at all
stages leading to huge losses.
3. Fluctuations in market demand for the products may cause plant idling or
huge finished goods stocks.

Suitability
Continuous production system can be applied to industries which satisfy the
following requirements:
1. Uniform market demand.
2. Product standardization leading to standard processes.
3. Material and operations balancing.
4. Preventive maintenance system.

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 Mass Production
It refers to manufacture of standardised parts or components on a large scale.
Standardisation of materials, machines, products and processes is the basic feature of
mass production. Generally the degree of automation is high and the production
process is continuous. Mass production is employed for component manufacture for
automobile, electrical, and electronic industries.
Process Production
In this production is carried out continuously through a uniform and
standardised sequence of operations. Process production uses sophisticated automatic
equipments for bulk processing of certain materials. It finds wide application in
chemical industries.
On the basis of the nature of process employed, process production can be
classified into analytical process and synthetic process.
Assembly line
This type of continuous production was first developed for the assembly of
automobiles. It is now adopted for the manufacture of many other products in the
electrical and electronics industries. Assembly line is particularly useful when a
limited variety of similar products is to be produced in fairly large volumes on a
continuous basis.
Cellular Production
In this production method, groups of parts that have similar processing
requirements are grouped in to a part family. Then a cell is created that includes all
the equipments, facilities and human skills required to produce that part family. The
cell then produces large combined volumes of the family of parts though individual
part volumes are small. Cellular manufacturing thus allows product variety at the
reduced costs and response times available with mass production.
Intermittent Production
Intermittent production is a form of manufacturing in which the work passes
through functional departments in lots or batches. The product design changes from
time to time and the routing can be different for different lots. The facilities are
usually arranged in functional groups to have the flexibility to handle different
products. Machine shops doing job works and batch type chemical formulations
(pharmaceuticals) are examples of intermittent production.
Characteristics
1. The volume of production is generally small.
2. A wide variety of products are products are produced.
3. The flow of production is not continuous, but interspersed with waiting for
operations.
4. The sequence of operations change with different products and different
batches.
5. General purpose machines and equipments adaptable for different operations
are used.
6. A functional lay-out is usually used for flexibility.
7. Components are produced and stocked for assembly into finished products as
per customer requirements.
Advantages

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 1. Investment required for machinery and plant is small.
2. It is flexible and easily adaptable to changes in product design.
3. A hold up in one operation does not cause disruption of others.
4. In the functional grouping of machinery, specialization and skill development
of operators are possible.
5. Since the operators handle a variety of jobs there is more job satisfaction.

Disadvantages
1. Due to frequent changes in product design production planning is complex
and machine set-ups need frequent changes.
2. Optimum machine loading is difficult to achieve.
3. Raw material and work in process inventories are high.
4. Highly skilled operators are required.
5. Inefficient utilization of labour and equipment results in high unit costs.
Suitability
1. Demand for the products is small and non-uniform.
2. Non-standard and unique products.
3. Very large products requiring parts and sub-assemblies to be brought to one
assembling location.
Job production
Job production is characterized by the manufacture of one or small quantity
of products designed and produced as per the specification of customers within pre-
fixed time and cost. The distinguishing features of job production are low volume
and high variety of products. Examples of products manufactured under job
production are: aircraft, special purpose machines, jogs and fixtures, custom
clothing, etc.
Project industries
These are extreme cases of job production where the product is just one unit
with unique features. Hence the production is taken up as a project. Ship building,
building construction, erection of plants, etc., are some examples of project
production.
Batch production
It is the manufacture of products in small or large batches or lots at intervals
by a series of operations each operation being carried out the whole batch before any
subsequent operation is performed. Batch production is characterized by the
manufacture of a limited number of the product produced at regular intervals and
stocked awaiting sales. The facilities can be used for producing batches of other
products during the intervals.
Batch production is said to lie in between job production and mass
production.In job production intermittent demand is met by intermittent production.
In mass production continuous demand is satified by continuous production. Mixing
these two in batch production continuous demand is met by intermittent production
and stocking.

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 PRODUCTIVITY
Productivity is the quality or state of being productive. It is the concept that
guides the management of production systems and measures its success. It is the
quality that indicates how well labour, capital, materials and energy are utilized.
European Productivity Agency defines productivity in the following manner.
Productivity is an attitude of mind.
It is the mentality of progress, and of the constant improvements of that
which exists.
It is the certainty of being able to do better today than yesterday and
continuously.
It is the constant adaptation of economic and social life to changing
conditions.
It is the continual effort to apply new techniques and methods.
It is the faith in human progress.
Comparison of Production and Productivity
1. Production refers to the quantity of the product. Productivity is the
efficiency of production.
2. Production can be increased by increasing the inputs without any
improvement in their effective utilization. Improvement in productivity
increases production without increases in the inputs.
3. Higher production does not necessarily improve productivity. Higher
productivity brings down the cost of production thus improving
profitability, for the same sale price.

Benefits
The improvement in productivity brings the following benefits to the
company and to the society.
1. Reduction in cost per unit leading to reduction in price of goods.
2. Increase in wages,\.
3. Increase in profits to the company which can be utilized for
expansion and modernization.
4. Better standards of living of people through increase in their
incomes and improvement in quality of goods that are available at
cheaper prices.
5. Increase in competitive strength of the country in the world
market through reduction in cost of production and improvement
in the quality of output.

Productivity Index
The factors or resources that go into any production process are all
interlinked and the elimination of waste in any or all factors improves productivity.
In other words, for a given output, lower the input greater is the productivity. Thus
we can define productivity as the ratio between output and input.
Comparison of output with all the input factors (like labour, material,
machinery, etc.) taken together is called total productivity index and comparison of
output with any one of the input factors keeping other factors constant is called
partial productivity index.

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Factors Affecting Productivity
1. National Productivity
1.1. Human Resources
1.1.1Education
1.1.2Quality of life
1.1.3Labour movement
1.2 Technology and Capital Investment
1.2.1R&D in Industries and Universities
1.2.2Tax regime and savings rate
1.2.3Investment Environment
1.3 Government Regulation
1.3.1Infrastructure
1.3.2Laws and Government Attitude
2. Productivity in Manufacturing and Services
2.1 Human Factors
2.1.1Ability
2.1.1.1Education and Training
2.1.1.2Experience
2.1.1.3Aptitude
2.1.2Motivation
2.1.2.1Wage and Incentive Schemes
2.1.2.2Promotion Policy
2.1.2.3Quality of Management
2.1.2.4Communication System
2.1.2.5Union-management Relations
2.1.2.6Labour Participation in Management
2.1.3Work Environment
2.1.3.1Ventillation, Lighting, House-keeping
2.1.3.2Safety Measures
2.1.3.3Welfare Amenities
2.2 Technological Factors
2.2.1Product and Plant
2.2.1.1Product Design and Standardisation
2.2.1.2Size and Capacity of Plant
2.2.1.3Machinery and Equipment Used
2.2.1.4Plant Layout and Location
2.2.1.5Repair and Maintenance
2.2.2Technology
2.2.2.1Production Planning and Control
2.2.2.2Industrial Engineering Techniques
2.2.2.3Material Handling System
2.2.2.4Inspection and Quality Control
2.2.2.5Research and Development
2.2.3Materials and Supplies
2.2.3.1Timely Supply of Materials and Fuel
2.2.3.2Inventory Control
2.2.3.3Reduction of Waste and Utilization of Scrap

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Techniques for Productivity Improvement
1. Work study
2. Research and development
3. Incentive schemes
4. Production planning and control
5. Automation
6. Job enrichment
7. Management by objectives
8. Flexi-time
9. Quality of work-life
10. Quality circles

VALUE ENGINEERING
Value is an abstract concept. It is related to the qualities of the product. The
qualities may be subjective (shape, styling) or objective (performance, durability). A
product or service is generally considered to have good value if it has the appropriate
performance and cost. These are the major factors determining value. There are many
other factors which contribute towards the value like durability, reliability, aesthetics,
timeliness, etc. Thus value can be written as
VALUE = (PERFORMANCE + OTHER REQUIREMENTS)/COST
Definition
Value engineering, value analysis, value management, value control, value
assurance, all means the same thing. The definition given by the Society of American
Value Engineers (SAVE) is:
Value analysis is the systematic application of recognized techniques which
identify the function of a product or service, establish a monetary value for the
function, and provide the necessary function reliably at the lowest overall cost.
History
The origin of value engineering technology as we know today can be traced
back to the World War II efforts to maintain and increase the production of all items
against the scarcity of many inputs. Mr. Lawrence Delos Miles of the General
Electric Company, USA, developed a formal methodology in which the functions of
products were determined and through team-oriented creative techniques changes
were made in the products to lower their cost without affecting their utility and
quality. This programme called Value Analysis by Miles was implemented in GEC in
1947.
In 1954 US Navy Bureau of Ships adopted this concept to cost reduction in
the design process and called it Value Engineering. In 1959 the Society of American
value Engineers (SAVE) was founded in Washington DC, USA. In India Value
Engineering is now a well recognized programme actively followed in many public
and private sector concerns. A professional society, the Indian Value Engineering
Society (INVEST) was founded in 1977.
Objectives of Value Engineering
1. The main objective of value analysis is cost reduction.

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 2. Value analysis also considers time a product may be of value if it is
available at a certain point of time.
3. Application of value analysis results in improved quality of the product.
4. Value analysis promotes standardization leading to reduction in cost of
production.
5. Simplification of the product is attempted in value analysis to obtain cost
reduction.
6. Value analysis aims at meeting customers requirements thereby enhancing
the value of the product.
7. When full value is ensured at reduced cost it improves the profit margin as
well as sales volume thereby increasing profitability.
8. Spread of value engineering techniques and activities improves cost
consciousness, quality awareness and problem-solving culture of the
organisation.

Types of Values
Economic value of a product or service may be classified into four types as
described below:
1. Use Value is the value provided by the properties, features and qualities which
accomplish the use, work or service causing the item to perform the intended
function.
2. Esteem Value is the customers emotional regard for the item. This is provided by
the properties, features and attractiveness which make one to yearn for its possession.
The esteem value is the perceived value of an item over and above its use value.
3. Exchange Value causes goods and services to be exchanged with others of equal
value. This value depends on the demand and supply position of items exchanged.
4. Cost Value is the total cost of material, labour and others that have to be incurred
to produce an item or to provide a service. It gives the basic worth of the product or
service. Other types of values are added to it to get its full value.
Reasons for poor value
1. Lack of information
2. Lack of creative ideas
3. Lack of time
4. Lack of funds
5. Poor quality
6. Honest wrong beliefs
7. Habitual thinking
8. Risk of personal loss
9. Reluctance to seek advice
10. Habits and attitudes
11. Unrealistic requirements
12. Changed circumstances
13. Changing technology
14. Poor communications
15. Prejudice
16. Misconceptions
17. Lack of experience

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 18. Desire to conform
19. Politics

Phases of Value Engineering

This is also known as the Value Engineering Job Plan, which is a systematic
approach to value engineering studies. From the time of the value engineering job
plan proposed by Miles, a number of approaches have been proposed by different VE
practitioners, which are all essentially similar. The job plan used by Arthur E Mudge
is a well-recognized approach and comprises seven phases. These are:
1. General phase
2. Information phase
3. Function phase
4. Creation phase
5. Evaluation phase
6. Investigation phase
7. Recommendation phase

During the general phase the value engineering programme is initiated by

organizing the task force, identifying the decision maker, selecting the areas of effort,
assigning specific tasks to each member of the team and inspiring them for
coordinated action. Throughout the application of the entire job plan, the techniques
of this phase must be diligently applied to create the right environment. The
techniques associated with this phase are:
a) Use of good human relations
b) Inspire team work
c) Work on specifics
d) Overcome road blocks
e) Apply good business judgment.

The objective of the information phase is to gain an understanding of the

problem and to obtain relevant data including costs. The techniques of this phase are:
a) Secure facts
b) Determine costs
c) Fix costs on specifications and requirements.

In the function analysis phase the value engineering team defines the
functions of the item under study, classifies them and evaluates the functional
relationships. When this analysis is complete necessary and unnecessary functions
will become visible. The techniques are:
a) Define function in two words a verb and a noun
b) Evaluate function relationship.

After defining the functions and classifying them, the next step is to
determine the cost of each function. Placing a cost to each function and then
compiling a function-cost matrix will identify the high cost functions.
The objective of the creation phase is to create ideas for alternative ways to
accomplish the essential functions and improve value. Creative thinking techniques
like brain storming, mind mapping, attribute listing, free association technique, etc.,

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are used to generate a multitude of ideas on products, processes, and methods so as to
add value or reduce cost.
In the evaluation phase the generated ideas are evaluated to select the most
promising ideas, and subject these to a preliminary screening. The techniques
associated with this phase are:
a) Refine and combine ideas
b) Establish costs on all ideas
c) Develop function alternatives
d) Compare the alternatives to find the one with the greatest value.

The objectives of the investigation phase are to refine the partially developed
ideas and to prepare a work plan to convert the selected ideas into acceptable
proposals. The techniques of this phase are:
a) Use company and industry standards
b) Consult vendors and specialists
c) Use specialty products, processes and procedures.

In actual practice of the above phases, while the ideas are created, refined,
evaluated and investigated, new information may emerge. Then the phases of
creation, evaluation and investigation are gone through again until finally the lowest
cost, most sound solution emerges. This nature of the job plan forms the Value
Circle.
In the recommendation and implementation phase the value change
alternative selected is presented as a Value Engineering Change Plan (VECP) to the
management for final approval and implementation. This is a vital phase because the
fruits of all the efforts in the previous phases are obtained only if this phase is
successfully completed. The VECP must
Present facts
Enumerate benefits of proposed changes
Give before and after comparisons of costs
List advantages and disadvantages
Have a detailed plan for implementation
Acknowledge assistance received from others
Include all relevant data for decision making.

For successful implementation the plan must dovetail into the organisations
activities. Reviewing progress periodically would ensure timely completion. A post
audit of the benefits and savings realized against the expected results shall help in
improving future value engineering work.
Application of Value Engineering
Value engineering should be applied in case of occurrence of any of the
following:
1. Introduction of new products
2. Adverse rate of return on investment
3. Reduction in sales
4. Increase of cost of production
5. Price reduction by competitors
6. Consumer complaints on product performance

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 7. Increase in cost of inputs.

Value engineering is applicable to all areas of economic activity: products,

services, systems and procedures in the production, operation, purchase, design,
packing, material handling and distribution departments.

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 MODULE- 2

PLANT LOCATION

Factors Affecting Plant Location

1. Input Considerations

(a) Material Quantity, quality cost and regular supply.

(b) Land site availability and costs, costs of construction.

(c) Equipment Availability and cost.

(d) Plant utilities Gas, electricity, coal, water, etc.

(e) Labour Availability, supply, skill, wage rates.

(f) Capital Equity and debt potential, banking facilities

2. Processing Considerations

a. Production analysis Educational and research facilities.

b. Process analysis Engineering and consultancy.

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 c. Forecasting and scheduling.

d. Production control Inventory storage.

e. Maintenance - service and repair facility

f. Cost control Accounting and credit facility.

g. Presence of related industry.

3. Output Considerations

a. Distribution - Distribution and storage facility.

b. Transportation Facilities and costs.

c. Present and future market potential.

d. Local rates and taxes.

4. Other Considerations.

a. Community attitude towards industry and company.

b. Public and community services educational, recreational, housing.

c. Stock holders interest.

d. Political situations.

3. Volume of Production

According to this point, while plant layout is being done it should be kept in
mind that what volume is required to be produced. In this case it should be
seen that which type of production is adopted.

a. Job production.

b. Batch production.

c. Mass production.

4. Influence of Processes

The process through material passes will affect layout. Care should be given
to the material handling problems, position of store room and tool room.

Plant Layout

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 Plant layout is the optimum arrangement of different facilities including man,
machine, equipment and material etc., showing the space allocated for material
movement, storage and all supporting activities from the receipt of raw material to
the shipping of the finished goods for an overall economy of production.

Factors influencing Layout

1.Type of industry

Industries are generally classified according to their processes of

manufacture. The process of manufacture can be classified into four
categories.

a. Synthetic Process:- When two or more materials are mixed to get

a product, the process is known as synthetic process. The example
of such a process is to produce the cement by mixing limestone
and clay.

b. Analytical Process:- This is opposite to synthetic process. It is the

breaking up of a material into several parts. The refining of
petrolium and extraction of oxygen from air are some of the
examples.

c. Conditioning Process:- In the conditioning process, the form of

raw materials is changed into desired product as in jute industry.

d. Extractive Process:- In this type by applying heat desired product

is extracted from the original raw material eg. manufacture of
aluminium from bauxite.

2. Type of Product

Type of product means whether the product is heavy or light, large or small,
liquid or solid. It is also considered in plant layout.

TYPES OF PLANT LAYOUT

1. PRODUCT LAYOUT

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In product layout, machines and equipments are arranged in the sequence
of manufacturing operations required for the product. The material is
moved from one work station to another sequentially without any
backtracking or deviation. It is called line layout because machines are
mostly arranged in straight line. The raw materials are fed at one end and
taken out as the finished product on the other. A product layout may
assume a straight line shape, a v-shape or circular shape.

PROCESS LAYOUT OR FUNCTIONAL LAYOUT

In this type of layout machines of similar type are located together

according to their function. Products moves between the group of
equipments in order of the operations required.

FIXED POSITION LAYOUT

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 Layout by fixed position of the product is used in ship building,
aircraft manufacture and big pressure vessels fabrication.

In this layout men and equipment moved to the material, which

remains at one place and product is completed at that place where the
material lies.

GROUP LAYOUT (CELLULAR OR COMBINATION LAYOUT)

A combination of process and product layouts combines the

advantages of both types of layouts. A combination layout is possible where an item
is being made in different types and sizes. In such cases machinery is arranged in a
process layout but the processing group is then arranged in a sequence to
manufacture various types and sizes of product.

Figure shows a combination of type layout for manufacturing different sized

gears.

GROUP TECHNOLOGY (G.T)

Here the operations of the job and their sequences are analysed to form
certain family of jobs depending upon the family a number of machines are grouped
together in each work centre. These work centres are then arranged in a proper
sequential order so that these families of jobs flow through the work centre smoothly.
The objective here is to minimize the setting time and throughput time.

Group technology is the realization that many problems are similar and that
by grouping similar problems, a single situation can be found to a set of problems,
thus saving time and effort.

21
JUST IN TIME (JIT)

In JIT the goods are produced only at the time they needed and in the
quantity that is needed. In such situations the inventories of the finished goods and
work-in-progress would be almost nil. If raw material suppliers agree that they
should deliver their goods only at the time and in quantities needed the raw material
inventories will also eliminate. JIT is an approach to material management and
control designed to produce or deliver pars and materials just when required in
production.

MATERIAL HANDILING

Material handling include all movement and packing of materials,

component parts, assemblies and products. Handling of goods between plants
normally called transportation is a subdivision of material handling. It includes all
movement of materials form the receipt of the raw materials to the shipment of
product. Cost of material handling accounts for 30% to 65% of the total cost of
converting raw materials into finished products. The cost of material handling
consists of cost of buying it, maintaining it and operating it. Best handling is
minimum handling.

22
PRINCIPLES OF MATERIAL HANDLING

a. to minimize movements in production operation

b. Use the principle of containerization, ie moving optimum number of

pieces in one unit.

c. Minimise distances moved by adopting shortest routes.

d. Increase the speed of handling. Use mechanical aids in place of manual

labour.

e. Changes in sequence of production operation may be suggested. This is

for minimize back tracking and duplicate handling.

f. Flexible,versatile, safe, efficient material handling should be selectd.

g. Use gravity for assisting material movement.

h. Maintenance principle- Adopt frequent checking of material handling

devices.

SELECTION OF MATERIAL HANDLING EQUIPMENT

a. Material to be moved.

Size of material, its shape, weight, nature(solid, liquid or gas) and its chance
of getting damage during handling is considered.

b. Plant building and layout

This includes inequality in floor level, width of doors, height of

ceiling, strength of floor and walls, columns and pillars. Overhead conveyors are not
used for weak roofs, steps between two floors with not allow truck to operate.

c. Type of Production machines

Different machines have different outputs. Material handling device will able
to handle maximum outputs.

d. Type of material flow pattern

A vertical flow pattern will require elevators conveyors, pipes etc.

e. Type of production

23
 Mass production requires conveyors. Conveyors can handle more output but
is costlier. But the production needs trucks. Industrial Trucks are flexible.

f Cost of material handling equipment.

g. Handling cost.

h. Life equipment.

i. Maintenance required for material handling equipment.

TYPES OF MATERIAL HANDLING EQUIPMENTS

In fork lift truck the forks are attached to a column on the truck. Forks can
be lifted to desired height along with the material on them and the material can be
stacked at the proper place, even very close to the roof.

CRANES

Cranes are employed for lifting and lowering bulky items and packages or
cases. They find in heavy engineering and generally in intermittent type of
production. They provide overhead movements. The crane hook can move in a
rectangular area or a circular area. A jib crane is preferred where lifting of the jobs is
required in few locations only or where bridge crane cannot be erected.

24
HOIST

Hoist may be mounted on a single rail. It finds applications in wise drawing

and many other factories employing chemical cleaning of material etc.

CHAIN TYPE

HOIST PNEUMATIC

ELECTRICAL

MONORAIL

It is an I section beam attached to the ceiling and having either a trolley or

carrier moving along it. The material can be transferred from one place to another
along the beam. It is employed for intermittent type of material handling in machine
shop and other shops.

CONVEYORS

They are employed to transport material over a fixed path which may be
horizontal or inclined (up or down), to different locations in the factory. They prove
economical if the flow of material is continuous.

In a belt conveyor, the belt may be flat or trough shape to hold (granular)
materials which may tend to fall from the flat belt. The belt material may be rubber
covered canvas, steel, plain fabric or woven wire. A fixed conveyor is used on mass
production shop floor whereas portable conveyors are preferred for intermittent job.

BELT CONVEYOR

ROLLER GRAVITY

25
 ROLLER LINE

CONVEYORS DRAG

BUCKET

CHAIN OR CABLE

PIPE CONVEYORS (PNEUMATIC)

ROLLER CONVEYORS

They may be gravity aided or powered and are employed for transporting
products having flat bottoms. Bigger jobs can be handled as they are. Whereas small
items are put in boxes, tins or ballots before being transferred. Roller conveyors can
move the material along straight or curved path. Gravity type conveyors should be
preferred as compared to line conveyors wherever practical.

BUCKET CONVEYORS

It consist of overhead endless chain. It is supported from the ceiling and has
a fixed path to travel. A lifting mechanism is used for loading and unloading the
products.

PIPE LINE CONVEYORS

They are used for transporting granular or pulverized materials through the
pipes. Gravity or air flow moves the materials.

STRAIGHT

SPIRAL

SLIDES AND CHUTES WOOD / STEEL

VIBRATING

They transfer small jobs which can slide down under gravity. Vibrating
slides transport materials up an incline also. Chutes have sheet metal or roller base
for transporting components down the incline.

26
LIFTS

In multistory plants, materials are lifted up and transported by lifts. It is fast

and flexible equipment for floor to floor travel. Buckets or trays can be mounted on
the endless chain running from the ground floor to the top floor.

TRACTORS AND TRAILORS

Tractors, three wheeled or four wheeled employ IC Engine drive and are
generally used for out door application. Material is loaded in the trailers which are
attached to the towing tractor.

METHODS OF CALCULATING DEPRECIATION

1. STRAIGHT LINE METHOD

This method assumes that loss of value of machine is directly proportional

to its age. ie, the scrap value have to be deduct from the original value and divide the
remaining value by the number of useful life.

Let C be the initial cost of a machine

S be the scrap value

N be the number of years of life of machine

And D be the depreciation amount per year

C-S
Then D = R s
N

This method of calculating depreciation fund is known as Fixed

instalment method, because every year same amount is deducted and no
consideration is made about the maintenance and repair charges which gradually
increase as machine get older.

2. DIMINISHING BALANCE METHOD

This also called Reduce Balance Method. The diminishing value of

machine is much greater in the early years. It depreciates rapidly in the early years
and later slowly. Thus it is better to depreciate much during the early years, when the
repair and renewal are not costly.

27
 In this method book value of machine goes on decreasing. A certain
percentage of the current book value is taken as depreciation. This method is so
called Percentage on Book Value

Let x be the fixed percentage taken to calculate the yearly depreciation on

the book value

1/ n
S
Then x = 1 -
C

C = initial cost , S = scrap value, N = no. of years

3. SINKING FUND METHOD

In this method a depreciation fund equal to the actual loss in the value of the
asset or machine is estimated taking into account the interest on the accumulated
fund. The rate of depreciation will be constant though out the life of the machine

D = Rate of Depreciation per year

R = Rate of interest on the accumulated fund

C = Total cost of machine

S = Scrap value

R(C - S)
N = No. of years of life of machine D =
( 1 + R ) N -1
3. THE ANNUITY CHARGING METHOD

4. In this interest is charged on the cost of machine or assets every

year on the book value but the rate of depreciation is constant every
year.

28
C = Cost of machine

S = Scrap value

N = No. of years of machine life

R = Rate of interest

D = Rate of depreciation

If Book value after one year is C,

Then D = CR + C- C1 = C(1+R) C1

Book value after two years is C2

Then D = C1R+ C1 C2 = C1(1+R) C2

The standard formula is

D=
( C ( 1 + R ) - S) ( 1 - ( 1 + R ) )
N

( 1- ( 1+ R ) )
N

5. THE INSURANC E POLICY METHOD

In this method the machine is insured with the insurance company and
premiums are paid on the insurance policy. When the policy matures, the company
provides sufficient sum to replace the machine.

6. REVALUATION OR REGULAR VALUATION METHOD

In this every year the value of machine is revalued and the difference
between the book value and the revalued value is charged as a depreciation fund.

7. MACHINE HOUR BASIS METHOD

In this depreciation is calculated, considering the total number of hours a

machine runs in a year and therefore a work chart of every machine is maintained to
know the total number of hours the machine runs in a year.

29
8. SUM OF YEARS DIGIT METHOD

Greater amount of depreciation is made during the early years and it goes on
decreasing as the life of machine decreases. For calculating depreciation the net
amount (total cost scrap value) is spread over whole life in decreasing proportion.

30
 MODULE-3

METHOD STUDY

It is the way or method in which work is done.

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 cost.

Work measurement is the application of techniques designed to establish the

time for qualified worker to carry out a specific job at a defined level of
performance.

Work study is the term for the techniques method study and work
measurement which are used in the examination of human work.

Work Study

Method study Work Measurement

To develop the best To determine standard
method of doing work time for completing
work

Higher Productivity

31
BASIC PROCEDURE FOR METHOD STUDY

1.SELECT the job or process to be studied which is primarily based on

a. Economic considerations

b. Technical considerations

c. Human considerations.

The main objective of this is to reduce manufacturing cost.

2. RECORD

All the relevant information related to existing method in detail should be

recorded. Recording can be done with following methods.

(a) Process charts

i. Process Out line process chart.

ii. Flow process chart; Man type, Material type and Equipment type.

iii. Two handed process chart.

iv. Multiple activity chart.

(b) Diagrams

i) Flow diagrams

ii) String diagrams

iii) Cycle graph

iv) Chronocycle graph

(c) Micromotion study

3. EXAMINE

The purpose, place and sequence of every operation should be critically

examined. This help will reveal defects in existing methods.

4. DEVELOP the best method as resulted from critical examination and record it.

The develop method should be

i) Practical and feasible

32
 ii) Safe and effective

iii) Economical

iv) Acceptable to design, production control and sales department

5. INSTAL

The new method should be installed with the help of supervisors and
operators after proper training of operators if required.

6. MAINTAIN the new method as standard practice and verify with the help of
proper control procedures.

PROCESS CHART SYMBOLS

33
 EVENT SYMBOL DESCRIPTION

Operation represents an action.

1. Operation
eg: Turning, milling etc.

Storage represents when a finished good or

raw material waiting for an action or when
2. Storage an item is retained for some time for
reference purpose.
eg: Cutting tools lying in tool store.

Delay occures when something stops the

3. Delay or process and a product wait for next event.
Temperory storage It is a temperory halt in process.
eg: Power failure.

Transport indicates movement of one item

from one place to another.
4. Transport
eg: material sent from stores to m/c shop.

Inspection is an art of checking for

correctness of the quantity or quality of
5. Inspection items.
eg: checking the hardness of M.S. steel
plate.

6. Operation-cum- eg: Articles are being painted as they are

transportation. transported by the chain conveyor.

eg: A powder milk tin is being weighted as

7. Inspection-cum- it is filled. Both events occur
operation. simultaneously and are controlled
automatically.

34
(a). Process charts

A chart representing a process is called process chart. A process chart records

graphically or diagrammatically in sequence, the operations connected with a process
with the help of a set of symbols.

(b). Outline process chart

It provides an overall view, a quick idea of the entire process from beginning
to end at a glance.

TASK: Changing refill of a ball point pen.

Chart begins : Unscrew cap

Chart ends : Screw the cap

Charted by : ...................

Date : ...................

1 Unscrew cap.

2 Unscrew neck.

3 Remove the old refill.

4 Assemble the spring on a new refill.

5 Place the refill in the barrel.

Summary 6 Screw the neck.

7 times 1 Check if pen writes.

1 time 7 Screw the cap.

35
Material type of flow process chart

Operations
Distance Time Remarks
Activity
Moved (m) minutes if any

Casting lying in -
1 - -
foundary store

Moved to gas By trolley

1 10 3
cutting Machine

Wait, cutting -
1 - 5
machine being set

Risers end 1 - 20 -

Wait for trolley 2 - 10 -

Moved to By trolley
2 30 6
machine shop

Inspected before -
1 - 15
machining

FLOW PROCESS CHARTS

36
Man type flow process chart

Joh: Polishing the specimen for metallographic study

1. Start polishing m/c

2. Sprinkle the solution of polishing compounds on the rotating table

1. Hold the specimen in hand.

3. Place the specimen gently on the rotating table and polish it.

2. Wait for few seconds.

Take away the specimen to wash basin

4. Wash the specimen.

5. Etch the specimen.

6. Wash the specimen again.

7. Dry it.

1. Check under a microscope.

1. Keep the specimen in the container.

Man type flow process chart records the activities of an operator.

Equipment type process chart records how the equipment is used.

Material type process chart records what happends to material.

37
 Two handed process chart records the activities of the left hand and right
hand of an operator related to each other. The activities of two chart can be
synchronized by providing a time scale on the chart. This is also known as operator
activity chart.

FLOW DIAGRAM

It is a drawing or diagrams which is drawn to scale. It shows the relative

production machinery, jobs, fixtures, etc. and marked the paths followed by men and
materials.

Steps in drawing a flow diagram are

(1) Draw to scale the plan of the work area

(2) Mark the relative positions of machine tools, benches, store, racks, inspection
booths, etc.

38
(3) From different observations, draw the actual path movement of the material or
the worker on the diagram and indicate the direction of movement. Different
movements can be done in different colours for better understanding. Process
symbols may also be added on to the diagrams.

THERBLIGS (MICRO MOTION AND MACROMOTION STUDY)

Therbligs was suggested by Gilberth. He recorded 17 therbligs it has been

increased to 18. Therbligs are used to describe the basic elements of movements or
fundamental hand motion of the work sycle. Every therblig is represented by a
symbol, s definite colour and with a word or two to record the same.

Process chart symbols like operation, inspection, transportation etc. are

macro-scopic.

Simo chart uses therbligs which are microscopic in nature.

Macroscopic motion Microscopic motion(therbligs)

Operation of picking away a screwdriver. a) Reach hand for screw driver

(transport empty)

b) Grasp the same(Grasp)

c) Take away the screw driver(transport

loaded)

39
 One macroscopic motion, may contain a number of microscopic motions. It is
not possible to eliminate completely the macroscopic motion but an unnecessary
microscopic motion can be eliminated.

Microscopic system is very detailed, it is simpler to understand what

precisely the worker is doing.

Therblig Symbol Colour Definition

Assemble A Violet Putting objects together

Disassamble DA Light violet Separating different

parts of assembled unit

Transport TL Green Moving an article from

louded one place to another.

Transport TE Olive Green Moving empty (say

empty empty hand)

40
SIMO (SIMULTANEOUS MOTION- CYCLE CHART)

It shows on a common time scale the simultaneous movements(therbligs)

performed by the two hands of an operator. Besides hand, the movement of other
limbs of an operator may also be recorded. The time scale is represented in
winks(1/2000 of a minute).

CONSTRUCTION

(1) Using a 16 mm movie camera a number of short and repetitive work cycles are
filmed (at 16 frames per second) as the worker performs the job. For recording
time, a timing device (wink counter) is placed in the field of view.

(2) The film thus is obtained is viewed and most efficiently performed one whoe
cycle is selected for analysis.

(3) A special projector is employed to study the work cycle recorded on the film.
The work study engineer analyses the film, frame by frame.

TECHNIQUES OF WORK MEASUREMENT

TIME STUDY

Time study is a technique for determining the time necessary to carry out a
given activity. Accurate measurement of time is necessary from limited number of
observations. Activity should be at a defined level of performance.

OBSERVED TIME

It is the time recorded by stopwatch by work study man during the

observation of activity of the operator.

NORMAL TIME OR BASIC TIME

It is the calculated time of the activity of the operator considering the rate of
performance.

Normal time = observed time

Eg: observed time = 5 minutes

If working rate is faster by 120%

41
 Then Basic time = 5

RATING FACTORS

It is the comparison of actual performance with normal performance.

Working rate of an average worker under capable supervision without the

stimulus of an incentive wage plan is called normal performance.

If the rating factor is 1.2 then it means that operator is working at a faster rate 125%
compared to normal performance 100%.

ALLOWANCES

It is the extra time added to the basic time of the operator to recover from
phycological studying one frame at a time and concentrated first on the left hand and
then on right hand movements.

(4) The data noted in step 3 is recorded in the form of therblig chart. The duration of
actual movements are also read from wink counter.

(5) Simo chart is then drawn for further study and analysis.

(6) This Simo chart of the existing method is subjected to questioning procedure
bared on the principles of motion economy, the purpose is to develop a better and
improved procedure for doing a job.

(7) A new simo chart is then prepared and checked again.

Simo chart

Operation. Date

Name of worker Film no

Component, Name. Operation no.

Method Present /Proposed

42
Left hand Right hand
Symbol Time (winks) Symbol
description description

Grasp ... G 0 G Grasp hammer

10

To job TL 20 TL To job

Position P 30 AD Idle

40

Hold H 50 V Use

STANDARD TIME

It is defined as the allowed time for a quality worker for doing a quality job
of defined amount by following a prescribed method if the worker is working at a
place under capable supervision and in experience fatigue.
TIME STUDY

By a stop watch Macro motion study of elements of job is done. Aim is to

find proper time for job.
Basic time study equipments consist of
(a) stop watch

(b) study board

(c) pocket calculator

(d) measuring instruments for distance (ruler tape, micrometer) and speed
(revolution counter)

Basic steps in time study are

(a) Select the job to be studied.

(b) Record all the information about job.

Record by breaking the operation in to elements

(c) Measure with a stop watch the time for each element repeated for
sufficient number of cycles. Assess the effective speed of working

43
 relating to a predetermined normal speed. This process is called
performance rating or rating factor.

(d) Compile the different basic times for entire element activities. After
finding the basic time per cycle required by qualified worker to do each
element at standard rate, the percentage of time for fatigue and
personnel needs is find out. This is called relaxation allowance.

Another allowance called contingency allowance is also introduce for

sharpening tool, consultation from supervisor etc.

Thus standard time = Basic time + RA + CA+ any other allowance

Chart

(e) Define all the activities covered now. Issue the time allowed for particular
job. Allowed time should have the approval of management and support of
employees.

No. of readings which have to be taken by the time study man is given by
formula

2

40 NSx 2 - ( Sx )
2
Nexpected =
Sx

Formula is based on a normal distribution of 95% level of confidence with

predicting the final result with 15% accuracy.

44
 N = no of observation taken
X = value of each observation
Nexp = sufficient no of readings.
WORK SAMPLING

Work sampling is a measurement technique for quantitative analysis in

terms of time, activity operations, machines or of any observable state or condition of
operation.

Time frequency

0.98 1

0.99 2

1 6

1.01 2 1.02 1

Frequency distribution can be shown approximately by normal distribution

curve.

Confidence level

Confidence level or control limit is calculated by

45
 Standard deviation = s S ( x - x )
2

1s limit occupy 68.27% of area under normal distribution curve

2s occupy 99.45%

3s occupy 99.73%

This means that 1 is 68.27% confident that random observation will fall in
this area. Therefore confidence level of 1 is 68.27%. After calculating the value of
standard deviation upper and lower control limits can be fixed.

Suppose let a batch contains 50 spindles and mean diameter of spindle is 30

mm. If we take a 5 spindles for inspection and we fix the limit as (30 0.5mm.). The
spindles diameter between 29.5 and 30.5 will be accepted. Suppose that the two
value are lying at A&B. Therefore confidence level is 99.45%. This means that
4.55% chances are there will not represent the real facts about the batch containing
50 spindles.

The no. of observations for particular level of confidence is given by

P ( 1- P)
S.P = W
N

S = Accuracy of result say( 5%)

P = % of occurence (expressed in decimal)

46
 Suppose on 100 observation if 25 observation the machine is idle the p =
0.25

N = no. of observation.

C = 1 for 68.27% of confidence level

C = 2 for 95% of confidence level

C = 3 for 99% of confidence level

Eg: Total 100 observations are made out of this 25 observations showed the
machine to be idle. Percentage of idle time is 25%. For 95% confidence level and
(5 %) accuracy.

N = no. of observations needed (to be determined)

P = idle time = 25% = 0.25 (First estimate)

S = Accuracy = 5% = ? 0.05

P ( 1- P)
SP = SP = 2
N

0.25 0.75
0.050.25 = 2
N

N = 4800

47
ANALYTICAL ESTIMATION

Procedure:-

(a) Find out job details which include job dimensions standard procedures and the
job conditions

(b) Break the job into constituent elements

(c) Select time values for as many elements as possible from library of element
time values.

(d) To the remaining elements for which n synthetic data is available, the estimator
gives suitable time values from his part knowledge and experience.

(e) Add (c) & (d) and this is the total basic time at 100% rating.

(f) Add to (e) an appropriate blanket relaxation allowance ie, relaxation allowance
is not given to individual elements. Usually 10-20% of total basic time is added
to total basic time.

(g) Any additional allowance if applicable may be added to arrive at standard time
for the given job.

PREDETERMINED MOTION TIME SYSTEM ( PMTS)

Technique:-

(1) Stop watch is not used for this technique, thus it avoids the inaccuracies
due to human judgement.

(2) It is assumed that all manual tasks in industries are made up of certain
basic human movements which are common to all jobs (like reach,
move, disengage etc.)

(3) The average time taken by the industrial worker to perform a basic
movement is practically constant.

With above facts in mind, the various steps involved in PMTS are

(a) Select large number of workers doing varieties of jobs under normal
working conditions in industries.

(b) Record the job operations on a movie film (Micro motion study)

48
 (c) Analyse the film, note-down the time taken to complete each element
and compile the data in the form of table or chart.

Once the table for various motions are ready, the normal time for any new
job can be determind by breaking the job into its basic movements, noting the time
for each motion from the tables and adding up the time values for all basic
movements in the job.

Standard time may be obtained by adding proper allowance.

SYNTHESIS OF WORK STUDY DATA

Steps in synthesis are

(1) Collect all possible details about the job.

eg: material, dimensions etc.

(2) Break the job into constituent elements.

Type of elements are

(a) Machine elements:- They are controlled by the process (feed, speed,
depth of cut)

(b) Constant elements: (holding lathe in the tool part) ie, they are
identical from job to job.

(c) Variable elements:- (changes in quality of metal, tolerance etc.)

MICRO MOTION STUDY

The motion or movements of the limbs of a worker play a major part in the
fabrication or the manufacture of a product. By carefully observing a worker while
he is doing an operation a number of movements made by him which appear to be
unnecessary and unproductive can be identified and eliminated.

Micro motion study is the technique of recording and analysing the timing
of fundamental elements of an operation or activity with the aim of achieving the
best method of performing the operation. The purpose is to design improved method
which eliminates unnecessary motions and employs human efforts more
productively. Principles of motion economy prove to be very useful.

49
 Steps involved in motion analysis are

(a) Select the operations to be studied.

(b) List and chart various motions performed by the operator.

(c) Identify productive and idle motions.

(d) Eliminate the unnecessary and non productive motions.

(e) Redesign the existing operation procedure by employing minimum

number of motions in the most appropriate sequence and in
accordance with the principle of motion economy.

(f) Impart necessary instruction to worker so that he develops proper

habit cycle.

(g) Check once again the procedure in the light of step (e).

(h) The procedure may be standardized.

PRINCIPLES OF MOTION ECONOMY

1. Principles of motion economy applied to physical movements.

Operators movement should be

Natural, Easy, Simultaneous, Systematical, Rhythemical, Habitual

2. Principles of motion applied to the arrangement of the work place.

There should be defined place for all tools and materials. The work place
layout should be arranged if possible so that the operators can work standing or
sitting.

3. Principles of Motion applied to the design of tools, containers and

equipment.

(a) Tool located by operator

In this case holder for tool is provided and the operator is trained to
return the tool.

(b) Tools automatically located

50
 Train the operator to develop habitual motion to mount the tool in such a
way that after the use they return automatically to a definite location.

Design suitable jig and features

fig is to guide the tool

Fixture is to hold the work piece.

4. Rules concerning time conservation.

(a) Even temporary leasing of work, by a man or machine should not be

encouraged.

(b) Machine should not run idle.

(c) Simultaneous operations should be encouraged.

(d) Number of motions involved in completing a job should be

minimized.

(3) As far as possible select the normal times for all elements involved in
the operation from synthetic data, or standard data.

Standard data is a catalogue of basic time or normal time for different

elements of jobs. Every job contains similar motions. So it is waste to calculate the
time of elements of new job. It can be obtain from standard data. Standard data is a
previously timed and compiled data.

(4) Estimate various allowance like, personal and rest allowances and
special allowances from each element.

(5) Verify the analysis of elements for selected job method and other
conditions.

(6) Add various allowance to the normal time for each element and sum
up all such times to fix the standard time for new job.

MAYNARD OPERATION SEQUENCE TECHNIQUE

Most is system to measure work by concentrating on the movement of

objects.

Most technique consists of following basic sequence models.

51
 (1) The General move sequence (for movement of object freely through
air)

(2) The Controlled move sequence (for movement of object when it

remains contact with surface)

(3) The tool use sequence ( for use of common hand tools)

JOB EVALUATIN AND MERIT RATING

Job evaluation may be defined as an attempt to determine and compare the

demands which the normal performance of particular jobs make on normal workers
without taking account of the individual abilities or performance of workers
concerned.

Objectives of job evaluation

(1) To eliminate wage equalities if any.

(2) To establish a rational basis for incentive schemes

(3) To prove a framework for periodic review and revision of wage

structure.

(4) To provide a basis for wage negotiation during collective bargaining.

Procedure for Job evaluation

1. Describing the job

Job description is prepared by job analysis. Job evaluation process begins

with detailed written description of work involving in each job. The description are
used to find out the nature and requirement of the job to identify job factors for rating
of job.

2. Choosing the key jobs

Once jobs have been described, a number of key jobs are selected as
standards against which other jobs are to be compared.

1. Ranking method

Under this method the foreman or departmental head is asked to rank his
jobs according to job difficulties, starting with the most difficult or most important

52
job first and least important job last. He is expected to evaluate the job as a whole for
job difficulty without going into details of the elements, which may make up the job.
The responsibility of co-ordinating these ranking and grouping the job is given to a
central committee. Evaluate the job by the ranking system consist of following major
steps.

(a) Job analysis

(b) Selecting the job

(c) Choosing the rankers

(d) Ranking

(e) Integrating department rankings

Two methods for ranking are

(A) Card Ranking Method

Each job summary is recorded on a seperate 53 index card. The most

difficult job is given rank 1, the next difficulty the rank of 2 and soon until all the
jobs have been ranked. These cards are then arranged in descending order of
importance.

(B) Ranking by Paired Comparison

The jobs to be ranked are first paired among themselves. The number of

n ( n - 1)
comparison to be made is equal to where n = number of job to be ranked.
2

2. Job Classification Method.

This method consist of sorting all the jobs being evaluated into grades or
classes which have been predetermined and arranged in order of importance. It
requires preparing a definition for each grade classifying individual jobs according to
their characteristics match with the grades. These grade definitions are prepared by a
committee composed of persons in the organisation, who have clear picture of the all
jobs in the organisation. A three fold classification, unskilled, semiskilled and skilled

53
can be used to classify certain types of job. A more elaborate system of grades may
be necessary in the classification of office positions.

3. Factor Comparison Method

This method uses five factor scale for analysis.

The five factors are

skill

mental effort

physical effort

responsibility

working condition

Steps in factor comparison are

(1) Identify a few key jobs in the organisation and record their wages.

(2) Analyse the key jobs for each of the five factor mentioned above.

(3) Allocate salary for each of five factors mentioned above.

Rs/ month Skilll Effort Mental Effort Physical Responsibility Physical

100 J1
125 J4
J1
150
JN
175
JN
200 J2 J2 J4
JN
225 JN
250 J1 JN
275
J2
300 J1
J4
325
350

54
 (3) Allocate salary among five factors in proportion to their requirements

(table 1)

(4) This formulates a money rating scale for each of five factors.

(5) From table 1 construct a job comparison scale.

(6) Analyse the job to be evaluated into five factors.

(7) As per job requirements, determine the importance of each factor in

job, fit each factor in job comparison scale. eg: If mental effort of new
job is greater than J1 & lesser than J2 , it can be put between as -------.
Other factors also can be put like this. The value for job is
200+225+250+225.

(c) Impart certain points to each grade.

(d) The worth of an employee can be determined from the total points he
gets for all his merit factors.

2. CHECK LIST METHOD

The method employs a list of questions and several statements which

are concerned with the employee performance on various aspects of jobs and which
are considered important for evaluating. The questions are of Yes or No type.

3. EMPLOYEE COMPARISON METHOD

The method compares a worker on a job with all other workers on the same
job. Suppose there are 4 workers, B,S,T

B is compared with R suppose B is better

B is compared with S suppose B is better

B is compared with T suppose B is better

S is compared with T suppose T is better

55
 B turned to be better - 3 times
T turned to be better - 1 times
S turned to be better - 0 times - nil
then B is taken to be the best worker.

POINT METHOD

1. Select a few key jobs as representative of the jobs to be evaluated in

the organisation.

2. Analyse each key job for a member of factors

3. Select and define degrees for each factor of key jobs and jobs to be
evaluated

Factors Degree

Skill Education & Training

Experience

Effort Physical

Mental

4. Award point to each degree

5. Total up all the degree points for each job The wage is known for key
job. Plot the graph between total points and wage rate.

56
 6. Add up all degree points for job to be evaluated. Plot the position of
degree point on the graph and read the value of the wage rate on
vertical axis of graph.

MERIT RATING

It is the scientific evaluation of an employee with respect to his

performance.

Objectives and uses

1. It reveals who need to be transferred or trained for improvement in

work performance.

2. Merit rating encourage the employees to improve their performance.

3. Merit rating helps to discover talents of employees.

MERIT RATING PLANS

1. RATING METHOD

(a) Define the merit factor to rate employees

The different factors according to nature of job is

(1) Standard of output

(2) Quantity of output

(3) Intelligence

(4) Job knowledge

(5) Education and experience

(6) Character

(a) The number of factors for rating an employee may vary from
six to ten.

(b) Divide each factor into three to five grades or degrees like
excellent, very good, good, fair and unsatisfactory.

57
MODULE-4

58
INDUSTIRAL FATIGUE

Fatigue may be defined as

(1) Negative appetite for activity

(2) A reduction in the ability to do work due to consequence of previous

work.

NATURE OF FATIGUE

Fatigue includes phenomenon of monotony and boredom.

Monotony is a state of mind caused by performing repetitive work.

Boredom is charecterised by depression and a desire for change of work.

CAUSES AND ELIMINATION OF FATIGUE

1. Hours of Work

Highest productivity per hour and less fatigue is achieved with small
number of working hours per day. 8 hours per day with 45 to 60 minutes lunch break
is a good solution.

2. Working days of a week

A five day week with 40 working hours showed highest hourly output.

3. Nature of Work

Complex muscular task may preferably done with the help of suitable
material handling device. Minute and precise work imparts more fatigue.

4. Working Conditions

Improper light, temperature of atmosphere(too cold or hot), insufficient

ventilation, noise, etc add fatigue to the worker.

5. Rest Pauses

Suitable rest pauses or tea coffee breaks within the work hours tend to
reduce build-up of fatigue.

COMMUNICATION IN INDUSTRY

Formal and Informal Communication

59
 (a) A formal communication is official that is part of the system which is
involved in successful operation of concern.

Information passed from supervisor to worker to do a particular work is an

example of formal communication.

Formal communication may be written or oral. Formal communication may

be

(1) Vertical Communication, downward from top management to workers

to do a job, or upward from workers to higher management levels.

(2) Horizontal Communication

ie, the transmission of information from and to between positions of the

same level.

eg: Manage production informing, manager maintenance regarding a

machine breakdown.

(b) An Informal Communication

It is informal communication between workers. A person is motivated to

communicate naturally. Communication arises from social interaction.

Upward channels of communication

1. Face to face contact

2. Group meeting
3. Counseling
4. Labour union
5. Grapewine
Downward channels of communication
1. Chain of command

2. Notice boards

3. Group meeting

4. Labour union

5. Employee handbook

60
 6. Grapewine

Communication process involves

1. Sender

2. The media to transmit information

3. Receiver

Symbols of Communication are

(1) Word

(2) Action

(3) Pictures

(4) Numbers

TRADE UNIONS

A trade union is a continuing long term association of employees formed to

protect and improve, through collective action, the social economic and political
interest of its members.

Functions of trade unions

1. The provision of friendly services such as place for leisure, information

about jobs existing in other factories, games etc.

2. The provision of social services such as insurance against old age,

stirke, etc.

3. Wage bargaining, ie collective wage bargaining with emplyers.

4. Safe guarding the job of the workers.

5. Political activities, ie trade union legislation works to protect the union

and the workers from such industrial abuses as delay in payment of
wages, excessive hours of work, poor working condition etc.

6. To develop cooperation with employers.

7. To arouse public opinion in favour of labour.

8. To secure some shares in profit and control of enterprise

61
LABOUR WELFARE

Welfare methods are categorised into three classes

(1) Economic (2) Recreational (3) Facilitative

MODULE-5

62
ECONOMIC ORDER QUANTITY

EOQ is the most advantage order quantity having lowest cost per unit.

Calculation of most EOQ to be purchased involves calculation of the

following costs.

(a) Procurement cost or buying cost

(b) Inventory carrying cost

Inventory is the detailed list of movable goods like raw materials, materials
in process, finished products etc. Its quantity and value.

(a) Procurement cost

This cost includes expenditure on

(i) Calling quotations

(ii) Processing quotations

(iii) Placing purchase orders

(iv) Receiving and inspection etc.

(b) Inventory carrying cost

This consists of expenditure on

(i) Insurance

(ii) Storage and handling

(iii) Depreciation

(iv) Tax etc.

Chart

Total cost is minimum at point A and thus A represents economic order

quantity.

Economic order quantity is obtained be equating procurement cost is equal

to inventory carrying cost

Let A = total items consumed per year

63
 P = procurement cost per order

C = Annual inventory carrying cost per item

Q = Economic order quantity

Procurement cost per year = no. of orders placed in a year cost per order

A
= P
Q

Inventory carrying cost /year

= Average value of inventory in a year

Annual inventory carrying cost/ item.

Q
= C
2

A P Q C
Total Cost = +
Q 2

This cost will be minimum

A P Q C
=
Q 2

2AP
Q2 =
C

2AP
Q=
C

Maximum Stores :-

This term is applied to represent the upper limit of the inventory and
represent the largest quantity generally kept in sotres.

Minimum Stores:-

This term is applied to represent lower limit of inventory and represent a

reserve in case of an emergency.

The standard order:-

It is the quantity to be purchased at any time.

64
 Ordering point.

It indicates that it is high time to initiate a purchase order and if not done so
the inventory may exhaust.

Lead time;-

It is the time which takes the stock to reach from Re-order point to
minimum stock level.

DESTRUCTIVE TESTING

(a) Tensile testing (b) Compression testing (c) Hardness testing (d) Impact
testing (e) Bend testing (f) Torsion test (g) Fatigue testing (h) Creep testing

NON DESTURCTIVE TESTING

(a) Visual inspection (b) Hammer test (c) Radiography (d)

Magnetic particle testing (e) Liquid dye penetrait test (f) Ultrasonic Inspection
(g) Testing for metal composition

TYPES OF CONTROL CHART

Control chart is a day toControl Chart chart representation of collected

day graphical
informations.

Chart
3s are for variables
used Charts
for control charts with confidence levelfor
of 99% (area under
attributes
normal distribution curve)

For x charts
Average Rate Charts for Charts for
chart control limitchart
upper defective defects per
( chart) (R chart items unit
VCL x = x + A 2 R

Lower control limit

P UP C V
chart Chart chart Chart
LCLx = x - A 2 R

x and R are also called centre line values.

For R chart

65
 VCL R = D4 R

LCL R = D3R

A 2 , D 4 & D3 depends on the number of units per sample and calculated

from N.D.C.

P chart

Centre line value

Total number of defective products observed in all samples

P=
Total number of products inspected

P ( 1- P)
VCL P = P + 3sP = P + 3
n

P ( 1- P)
LCL P = P - 3 n = sample size
n

C chart

Total number of defects found in all samples

C=
Total number of sample inspected standard deviation

VCLC = C + 3sC = C + 3 C

LCLC = C - 3 C

sC = tC

SAMPLING INSPECTION

Basis of sampling inspection

(i) Variable basis

In this inspection is done on measurement basis

eg: mm, hardness no. etc.

(ii) Attribute basis

In this inspection is done on GO and NO GO basis

66
Procedure of sampling inspection

1. Setting of inspection lots

Lot size varies to 300 products to any no. There is no upper limit. Lot size is
made small for easy handling.

2. Arranging for rational lots

A rational lot is one whose units have been produced from same source. As
far as possible the lot contains products from same raw material, same die and the
same shift.

3. Establishing allowable percent defective

It is assumed that there are some percentage of defectiveness because

hundred percentage perfection is impossible.

4. Selecting sampling plan

ACCEPTANCE SAMPLING

Inspection for acceptance is generally carried out on a sampling basis. The

use of sampling inspection is to decide whether to accept or reject the lot is known as
Acceptance sampling.

Acceptance Quality level (AQL)

It is determined for each defect characteristic and denoted in terms of

percent defective.

Process Average

It determines that before removal of any rejects whether or not the product
is manufactured under satisfactory control.

SAMPLING PLANS

(a) Single sampling plan

N = lot size

h = sample size

67
 c = acceptance number

d = number of defectives in a sample

The acceptance of lot is calculate as

(i) if the d < c, the lot is accepted

(ii) if the d = c, then all pieces in the remainder of lot be inspected

(iii) if d > c, then the lot is rejected.

Inspect n jobs

If no. of defectives

Does not exceed c Exceed c

Accept the lot Reject the lot

(b) Double Sampling Plan

In this plan the decision of acceptance and rejection of the lot is based on
two sample size.

68
 Inspect n jobs

If the no. of defectives

Does not exceed c c1 < def c2 Exceed c

Accept the lot Take second sample Reject the lot

of n2 pieces

No. of defectives in the first

and second samples combined
i.e. in (n1 + n2)

Does not exceed c2 Exceeds c2

Accept the lot Reject the lot

69
MULTIPLE SAMPLING PLAN

Procedure

Inspect the first sample

Count the number of defects

found and if this number is

Very small Very large

Draw and inspect

the second sample

If number of defects
in first and second samples
combined are

Very small Very large

Draw and inspect

the third sample

Count number of defective

pieces in all the three
samples and if this number

Very small Very large

Draw and inspect a

fourth sample & continue
Accept Reject
the lot the lot

70
SEQUENTIAL SAMPLING PLAN

It is a plan in which sample size is increased by one piece at a time till the
sample becomes large enough and contains sufficient number of defective pieces to
decide intelligently whether to accept the lot or reject it.

1. Economic

(a) Insurance

(b) Retirement and pension plans

(c) Health and accident service

(d) Profit sharing

2. Recreational

(a) Sports

(b) Social get together

3. Facilitative

(a) Housing

(b) Transport

(c) Educational facilities

(d) Medical services

COST ACCOUNTING AND CONTROL

Cost may be defined as the amount of expenditure incurred on a given thing.

Accounting may be defined as the art of science of recording business in a

mathematical manner to show the true state of affairs of a business at a particular
instant of time.

Cost accounting is frequently looking upon the operation of calculating the

cost of an article as a basis to fix its selling price.

Labour cost

They are classified as

71
 (a) Direct labour cost

(b) Indirect labour cost

A direct labour cost is one who converts directly the material into salable
products. The wages of such employees are called direct labour cost.

eg: wages of a fabricator

Indirect or non productive workers are foremen helpers, supervisor etc. The
cost of such employees are called indirect labour cost.

Expense

(a) Direct expenses

(b) Indirect expenses

The expenses which are allocated to cost centres are direct expenses.

eg: costs of special layouts, designs or drawings

The expenses which cannot be allocated but absorbed by cost centres are
called indirect expenses.

eg: rent of a building, telephone bill etc.

(i) Fixed expenses

They remains constant regardless of the volume of production.

eg: Tax of land and building, rent

(ii) Variable expenses

They vary directly with volume of production.

eg: Depreciation

Prime cost

Prime cost = Direct material cost +Direct labour cost + Direct expenses
(variable)

72
Overheads

It is defined as the cost of indirect material, indirect labour and such other
expenses.

Overheads may be subdivided into

(a) Production or manufacturing overheads

(b) Administrative overheads

(c) Selling overheads

(d) Distribution overheads

(e) R&D overhead

(a) Production or manufacturing overheads

1. Building expense

(a) Rent

(b) Insurance

(c) Repairs

2. Indirect labour

(a) Foreman

(b) Supervisor

(c) Maintenance men

3. Water, fuel etc.

4. Maintenance & depreciation

(b) Administrative overheads

1) Office rent

2) Salaries & wages of clerk

3) Tax

4) Audit fee

73
(c) Selling overhead

It consists of expenses in order to maintain and increase the volume of sales

eg: Advertising, Salaries & commissions of sales managers.

(d) Distribution overheads

It is expenses related to transporting products to customers and storing

them.

eg; Warehouse charge

Cost of transportation

(e) Research & development overheads

It is proportional to the size of the R&D department

Factory cost = Prime cost + Factory overhead

Total cost = Factory cost + Factory overhead+ Distribution overhead +

Administration overhead

Selling cost = Total cost + profit or loss

TYPES OF COST

(a) Predetermined cost

It is computed in advance of production on the basis of a specification of all

the factors affecting cost.

(b) Standard cost

It is predetermined cost which is calculated from managements standards of

efficient operation and necessary expenditure.

(c) Marginal cost

It is the increase or decrease in total cost result from producing and

distributing additional unit of a product.

Elements of cost

1. Material

74
2. Labour

3. Expense

Material cost:- It is the cost of commodities supplied to an undertaking

It is of two types

(a) Direct material cost

A direct material is one which is used directly to the completion of the

product.

eg: Fc, Ni, Cr, etc to make alloy steels

The amount paid for the direct materials is known as direct material cost.

(b) Indirect material cost

An indirect material is one which is not directly used in the product itself

eg: cotton waste, greases etc.

The cost associated with indirect material is called indirect material cost.

75