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UNIT-2

MANAGEMENTFUNCTIONS

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INTRODUCTION Management helps and directs the various efforts towards

a definite purpose.

Harold Koontz, Its an Art of getting things donethrough and with the people in formally organized

groups. It is an art of creating an environment inwhich people can perform and individuals can co-operate towards attainment of group goals.

F.W. Taylor, Mgmt. is an art of knowing what to do,when to do and see that it is done in the best andcheapest way.

Management is a purposive activity.

Management involves creating of internalenvironment.

Good management need to be effective as well asefficient.

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CHARACTERISTICS

Management is a goal oriented

Management is universal in nature Management is an integrative force

Management is a social process

Management is a multi-disciplinary

Management is a continuous process

Management is intangible

Management is an Science as well as Art.

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IMPORTANCE

Achieve group goals

Optimum utilization of resources

Minimization of cost

Survival and growth

Employment generation

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FUNCTIONS OF MANAGEMENT

Planning

Oraganising

Staffing

Directing

Motivatin

g

Controlling

Co-ordinatin

g

Communicating

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PLANNING

Means thinking before doing.

It is the preparation for action.

Function to decide about what, where, when, who, whyand how a particular activity be done.

It defines:- Goals, set the policies, procedures, programmes, develops strategies

in order to achieve entp. objectives most efficiently.

Analyses all the difficulties that are likely to occur in

running the business. Planning is a rational, economic, systematic way of making

decisions today which will affect the future.

Planning includes forecasting, formulation of objective,policies, programmes, schedules, procedures and budgets.

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DEFINITION As per Koontz and ODonnell planning is deciding in

advance what to do, how to do it, when to do it and whois to do it. Planning bridges the gap from where we are,to where we want to go. It makes it possible for things tooccur which would not otherwise happens.

Alfred & Beatty, Planning is the thinking process, theorganised foresight, the vision, based on the facts andexperience that is required for intelligent actions.

M.E. Harley, Planning is deciding in advance what is tobe done. It involves the selection of objectives, policies,procedures and programmes from among alternatives.

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FEATURES OF PLANNING

Continuous and integrated process

Objective to achieve better results

Selection of best course of action

Development of alternative course of actions

Concerned with determination of objectives and goals

It involves thinking and analysis

Visualising future course of action and putting it in logical way

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OBJECTIVES

@ Planning helps in effective forecasting

@ Planning provides certainty in the activities.

@ Planning provides performance standards.

@ It gives a specific direction to the organization

@ Helps the organization to tune with the environment

@ Provides economy in the management.

@ Helpful in preparing the budgets.

@ Need for planning arises from constant change.@ Planning is directed towards efficiency.

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STEPS IN PLANNING

Determination of objectives

Forecasting to assist planningi. Establishing planning premises and constraints

ii. Internal premises

iii. External premises

Deciding the planning period

Collection, classification and processing of information

Deciding alternative course of action

Evaluation of alternative

Selection of best plan

Subsidiary plan to aid master plan

Controlling plans

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ADVANTAGES OF PLANNING

Maximum utilization of resources

Minimization of unproductive work

Reduces uncertainty

Basis of managerial action Basis for control

Avoids bottlenecks in production

Planning encourages innovation and creativity

Improves motivation

Gives competitive advantages

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LIMITATIONS OF PLANNING

Limitations of forecast

Costly affair

Influence of external factors Resistance to change

Rigidity and flexibility

Measures to overcome limitations:-

Set realistic and achievable goals Communicate assumptions to all people who are concerned.

Encourage and make people participate in planning.

Coordination between long term and short term planning.

Encourage creativity in planning.

Resource position so they be available as and when required.

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ELEMENTS OF PLANNING Goals:- any achievement of an end point that may be stated

in quantitative terms. Usually long runs and objectives arederived from goals and ordinarily short run.

Objectives:-

the ends towards which the activities of an organisation are directed. To be achieve in a specific time period.

Basis objectives are determined by the top management.

Each deptt. Had its own objectives with the framework of basicobjectives.

Objectives can be short term, long term, medium term, economic, non-

economic, external, internal, major, minor, etc. Policies:-

Helps in work in line with the objectives.

Provide framework for executive action on recurrent managerialproblems.

Serve as a guide for action for achieving the objectives.

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Rules:- Simplest type of plan chosen from the alternatives .

Specifies action to be taken or not to be taken in a given situation.

Procedure:- Means for implementing a policy.

Tells how a particular activity is to be carried out.

Prescribe the chronological sequence of steps that must be followed for thecompletion of particular task.

Programmes:- Designed to accomplish policies and accomplish objectives.

Gives step by step approach to guide action necessary to reach pre-

determined targets. Gives time table for actions.

Schedule:- Process of establishing time sequence of the work to be done.

Specifies the time when each series of action should take place.

Budgets:- Projection defining anticipated costs of attaining anobjective. Appraisal of anticipated expense against anticipated income.

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FORECASTING Refers to systematic analysis of past and present

circumstances.

As per Fayol, Forecasting is the essence of management.The success of a business greatly depends upon the

efficient forecasting and preparing for future events. Definitions:-

Defined as an estimation of future activities, i.e. the estimation oftype, quantity and quality of future work. Theses estimates providedthe basis to plan the future requirements for men, machines,materials, time, money, etc.

As per Allen L.A., forecasting is a systematic attempt to probe thefuture inference from known facts. The purpose is to providemanagement with information on which it can base planning decisions.

Forecasts are predictions or estimate of change, if any in characteristiceconomic phenomena which may affect ones business plans.

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CHARACTERISTICS OF

FORECASTING

Estimation of probable future trend.

Estimation based on past and present circumstances.

Scientific and systematic techniques are used forestimation.

Anticipates changes in order to bring accuracy andexactness to decisions.

Mathematical and statistical inference provide a solid base

Consider present circumstances in relation to the past.

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IMPORTANCE OF FORECASTING

@ Importance in planning.

@ Accuracy in managerial decisions.

@ Facilitates control

@ Formulating future policies

@ Co-ordination is developed

@ Helps in preparing budgets.

@ Sales forecasts

@ Contributes to business success.

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ORGANIZING It involves:-

Determining activities needed to be fulfill the objectives

Grouping these activities into manageable units or deptt.

Assigning such groups of activities to managers.

Its a framework of management or a mechanism forpositive, integrated and co-operative actions by manypeople.

It provides an effective machine for achieving the plan orobjectives.

It creates authority, responsibility and relationship amongthe individuals.

Steps in organizing:- Determination of activities

Division of activities

Fitting individuals into jobs

Developing relationships in terms of authorities and responsibilities.

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STAFFING It is filling the positions needed in the organisation

structure by appointing competent and qualified personsfor the job.

It involves recruitment, selection, placement, training,development of personnel, developing system forremuneration of personnel and evaluating theirperformance.

Its important as people differ in their intelligence,knowledge, skills, experience, physical condition, age and

attitudes. Need to select the right man for the right job and train

and motivate them to increase organizationaleffectiveness and productivity.

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DIRECTING Important because managerial decisions are put into actions

through effective direction.

It involves motivating, guiding and supervisingsubordinates, not only about the orders.

Directing ability of the manager in the organisationdetermines its effectiveness.

Steps in Directing function:- Issue of orders and instructions

Guidance and training to subordinates

Supervision of subordinates work.

Necessity of supervision in order to ensure:- Work is going as per the plan established.

Workers are doing the work as directed to do.

Directions must be definite, clear cut, understandable,

communicable and practicable.

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MOTIVATION Its about inspiring people to intensify their desire and

willingness to perform their duties effectively and co-operate for the achievement of common objectives.

Motivation is the mental preparation of an individual to doa specific job.

As per Michael J. Jucius, Motivation is the act ofstimulating some one or oneself to get a desired course ofaction, to push the right button to get desired action.

As per Dalton Emfarland, The concept of motivation id

mainly psychological. It relates to those forces operatingwithin the individual employee or subordinate whichimpulses him to act or not active in certain ways.

Effective communication and participation enhancesthe power of motivation.

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MOTIVATION Fundamentals:-

A person wants to exist and survive and for this he needs basicnecessities.

Desire to achieve goal.

Classification of Motivation:- Internal Motivation

External Motivation

Functions of Motivation:- It originates action

It directs activities in the direction of goal. It helps to continue the activities till the goal is achieved.

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CONTROLLING As per Henry Fayol, Control consists in verifying

whether everything occurs in conformity with the planadopted, the instructions issued and the principlesestablished.

As per Koontz and ODonell, Controlling impliesmeasurement of accomplishment against standard andthe correction of deviations to ensure attainment ofobjectives according to the plans.

As per E.F.L. Breach, Control is checking current

performance against pre-determined standards containedin the plans, with a view to ensuring adequate progressand satisfactory performance.

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CONTROLLING Controlling Process of keeping activities on track Determine whether goals are met Decide changes needed to get back on track May use an informal or formal system of evaluations Employee job assignments Routine problem solving Conflict resolution

Effective communications Decision making is not a

separate management function, but the outcome of theexercise of good judgment in planning, directing, andcontrolling.

Feedback in the form of performance reportsthat compareactual results with the budgetare an essential part of thecontrol function

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MANAGEMENT CONTROL Assure that resources are obtained and used effectively

and efficiently in the accomplishment of the organizationsobjective

Has financial and non financial performance measurement Concerned with the implementation of strategies and Task

control

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PLANNING AND CONTROL CYCLE

Formulating long

term and short

term

plans(planning)

Implementing plans

( directing and

motivating)

Measuring

performance

(Controlling)

Compare actual to

planned performance

(controlling)

DECISION MAKING

BEGIN

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Plan

Actiontaken to

implementplan

Results

Comparison of

plannedand actual

result

Evaluation

Decision toreward or

punish

managers

Decision tochange

operationsor revise

plans

Planning Process

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CO-ORDINATING

As per Alan C. Reiley and James D. Mooney, Co-ordination is the orderly arrangement of group effort, toprovide unity of action in the pursuit of common purpose.

As per E.F.L. breach, Co-ordination is balancing andkeeping the terms together, by ensuring a suitableallocation of working activities to the various members andseeing that these are performed with the due harmonyamong the members themselves.

In simple terms,Co-ordination is the orderlyarrangement of group effort, to provide unity of

action in the pursuit of common purpose.

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NEED FOR CO-ORDINATION Numerous persons at work

Subdivisions and complexity of work

Delegation of authority and responsibility

Chances of difference between executives and specialists.

Human nature and their problems.

Growth in size of organization

TYPES OF CO-ORDINATION Internal Co-ordination

External Co-ordination

Vertical Co-ordination

Horizontal Co-ordination

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COMMUNICATION It is a process by which instructions, ideas, thoughts or

information are transmitted, received and understand, bythe persons working in the organization.

As per Keith Davis, It is the process of passing

information and understanding from one person toanother. It is essentially a bridge of meaning betweenpeople. By using this bridge meaning, a person can safelycross the river of misunderstanding that separate all thepeople.

As per Wibur Schramn, the essence of communication is getting the receiver and the sendertuned together for a particular message.

Components of communication :- Sender, Message,receiver and feedback.

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COMMUNICATION PROCESS

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ESSENTIALS OF COMMUNICATION

It must be clear in purpose and intention

Participation

Transmission

In simple language

Attach importance to action rather than work

Cordial Employer-employee relations

IMPORTANCE OF COMMUNICATION IN MANAGEMENT

Smooth and un-restricted running of the enterprises Quick decisions and implementation

Proper planning and co-ordination

Maximum productivity with minimum cost

Morale building and democratic management

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DECISION MAKING

A course of action consciously chosen from availablealternatives for the purpose of a desired result.

It is to decide the future course of action for theorganization over short or long terms.

The decisions is the point at which plans, policies andobjectives are translated into concrete actions.

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STAGES IN DECISION MAKING

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SCIENTIFIC MANAGEMENT Given by F.W.Taylor (March 20, 1856- March 21. 1915), also

known as father of scientific management.

He implies application of scientific principles for studying andidentifying management problems.

As per Taylor Scientific management is an art of knowingexactly what you want your men to do and seeing that they doit in the best and cheapest way.

If work is analysed scientifically it will be possible to find onebest way of do it.

As per Peter F. Drucker The cost of scientific management

is the organized study of work, the analysis of work into simplestelement and systematic management of workers performancefor each element.

Tools for scientific management :- Time study

Motion study

Functional Foremanship

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FAYOL PRINCIPLES OF

MANAGEMENT Henry Fayol in his book titled General and Industrial

Management in the year 1916.

Following fourteen principles were given :- Division of Work

Authority and responsibility

Discipline

Unity of command

Unity of direction

Emphasis on subordination of personal interest to common interest.

Adequate remuneration to personnel

Centralization

Scalar chain or line of authority

Order

Equity

Stability of workers

Initiative Esprit de Corps (Team Spirit)

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MANAGEMENT TOOLSMETHOD STUDY(MOTION STUDY)

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INTRODUCTION Pioneers who had contributed to emergence and development of

work study : Frank B. Gilberth, F.W. Taylor, Bedaux, HenryL. Gantt, Harrington Emerson, Halsey, Rowan, etc.

3 main aspects:-

More effective use of plant and equipment More effective use of human effort

Evaluation of human work

Work study analysis of work into smaller parts followed byarrangement of these parts to give the same effectiveness at alesser cost.

Examines both method and duration of the work.

Work study is primarily concerned with discovering the bestways of doing jobs and with establishing standards basedupon such methods.

Work study, analytical investigation of the methods, conditionsand effectiveness of industrial work, and determining the ways bywhich human efforts may most economically be applied.

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IMPORTANCE OF WORK STUDY

Raising productivity by re-organization of work

Determine standards of performance for effective planning andcontrol.

Systematic approach, no factor overlooked.

Better work place, neat and clear working environment.

Saving and efficient use of human and material resources

Eliminates unnecessary human efforts

Improved safety

Reduction in fatigue and health hazard.

Determine level of skill in workers for implementing theincentive based wage system

Minimize unit cost by proper selection and use of machine,process, etc.

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METHOD STUDY It is the systematic recording and critical examination of

existing and proposed ways of doing works as means ofdeveloping and applying easier and more effective methods andreducing cost.

Objectives :- Improvement of process and procedures

Improvement of work place layout and of the design of plant and equipment.

Economy in human efforts and reduction of unnecessary fatigue.

Improvement in use of materials, machines and manpower.

Development of better physical working environment

Find best way of doing a job

Standardise the best method

Train the individual as per stanardised method

Reduction of waste and scrap, improving quality

Effective material handling

Greater job satisfaction, higher standards of safety and health

Improvement in flow of production and processes.

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STEPS IN METHOD STUDY Techniques of method study aims at doing 3 things:-

Reveal and analyse true facts concerning the situation

Examine those facts critically

To develop the best possible answer from the examination of facts.

Definite and ordered sequence of analysis is as follows:- Define the problem

Obtain all the facts relevant to the problem

Examine the fact critically and impartially

Consider the courses open and decide which to follow

Act on the decision

Follow up the development.

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SELECT( Selection Of Work ForStudy)

Factors to be considered:- Economic Consideration

Technical Consideration

Human reactions

Economic Consideration:- waste of time to start or continue along investigation, cost of study and cost related to theinvestigation.

Obvious early choices:- Bottleneck which are holding up other production operations

Movement of material over long distance of shops Operation involving a great deal of manpower and equipment

Inconsistencies in quality

Highly fatigued work

Technical Consideration:- adequacy of technical knowledge tosort out bottleneck.

Human Reaction:- mental and emotional reactions toinvestigation and changes of method should be anticipated.

METHOD STUDY

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METHOD STUDY

Select the job to be

studied

Record facts relating toexisting method

Diagram Charts Models

Examine all relevant factscritically but impartially

Purpose Place Sequence Person Means

Develop alternative method tothe existing method

Select the most economicalmethod and define it

Install the new method plan-arrange-implement

Maintain the new method, verify itsimplementation at regular intervals

To achieve improved factory and work place layout improveddesigned of equipment ,better working condition, reduction of fatigue

Improved productivity

Steps in Method study

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RECORDING TECHNIQUES

Success of procedure depends upon the accuracy with which thefacts are recorded.

Purpose:- To enable the process to be clearly understood.

To present the existing facts for analysis. To submit the proposal to the mgmt. in a form which can be easily understood.

To guide supervisors and operators regarding detailed operating instructions.

Types of chars:- A Charts :- Indicating process sequence ( Flow process chart, two handed

process chart)

B Charts:- Using time table ( Multiple activity chart, Simo chart, PMTS charts)

C charts:- Indicating movements and models ( flow diagrams, string diagrams,cycle graphs, chrono-cycle graph, travel chart, etc.)

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OUTLINE PROCESS CHART

Gives the overall picture of the progress

Its the graphic representation of materials introduced into aprocess and the sequence of all operations.

Vertical line:- General flow of the processHorizontal line:- Material being introduced

Objectives:- Helps to decide whether a further and more detailed record is required.

Used in deciding the layout of the plant and location of one deptt. with respectto others.

Helps the analyst for better examining and understanding of the process Shows clearly the relationship between various parts and materials which enter

the final assembly.

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FLOW PROCESS CHART Graphical representation of all operations, inspections,

transportations, delays and storage occurring during a process.

Types of flow process chart:-

Man Type:- it records what the worker does.

Material type:- it records what happens to the material

Equipment type:- records how the equipment is used.

Objectives:-

Visualise complete sequence of events occurring.

To study the event in a systematic way for the complete analysis:-

To improve layout To improve material handing

To reduce delays

To eliminate, combine or re-arrange the events in a systematic way.

To compare between two or more alternative methods

To select operation for detailed study.

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TWO HAND PROCESS CHART

Also known as Right and Left Hand Process chart.

It is a study to analyse the motions used by the workers inperforming an activity.

It is chart in which the activities of a workers hand arerecorded, in their relationship to one another.

Commonly used for repetitive and short operations.

Same symbols are used but with changed meaning.

Procedure:-

Before start of recording, study the operation cycle few times.

Observe one hand at a time and record.

Record few symbols at a time.

Start observing and recording at position which can be easilydistinguished.

Card must be taken while observing and recording.

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TWO HAND CHART

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MULTIPLE ACTIVITY CHART its a chart in which the activities of more than one item ( worker,

machine or equipment) are recorded on a common time scale toshow their inter-relationship.

Shows very clearly the period of idleness on the part of any items

during the process. Makes rearrangement possible so the infective time is reduced.

Uses only 2 symbols :- Working Idle

Objectives:-

To detect the period of idleness on the part of men and machines.

To determine the number of machines which an operator shouldbe able to look after.

In organising teams of workers on mass production work.

To determine number of workers necessary to perform a jobinvolving team work.

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MAN AND MACHINE CHART The worker and machine process chart (Man-machine chart) is

used to study, analyze, and improve one workstation at atime.

The chart shows the exact time relationship between theworking cycle of the person and operating cycle of themachine.

These facts can lead to utilization of both worker andmachine time, and a better balance of the work cycle.

Many machine tools are either completely automatic or

semi automatic. The utilization of this idle time can increase operator earnings

and improve production efficiency.

2 type of diagrams:- Flow diagrams

Sting diagrams

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STRING DIAGRAM Thus, string diagram and flow chart can give clearest

possible picture of what is actually being done.

Flow process chart will be examined critically in

order to make sure that all unnecessary activities are

eliminated before a new method is proposed and

tested using string diagram.

String diagram can be used to plot movements of

material to know how far the materials travel.

Most commonly, the string diagram is used for

plotting the movements of workers.

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STRING DIAGRAM: PROCESS A scale plan of working area similar to that required

for a flow diagram must be made; as stated earlier, withhigher accuracy.

Machines, benches, stores etc. should be drawn toscale, together with doorways, pillars, partitions.

Completed plan should be attached to a softwoodboard and pins driven into it firmly at everystopping point, the heads being allowed to stand well

clear of the surface. Pins should also be driven in at all the turning points

on the route.

A measured length of thread is then taken and tiedaround the pin at the starting point of the movements.

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TRAVEL CHART String diagrams take a rather long time to construct. And

when a great many movements along complex paths are

involved, the diagram looks like ugly mess of criss-

crossing lines.

When the movement patterns are complex, the travel chart

is quicker and more manageable recording technique.

It is a tabular record for presenting quantitative data about

movements of workers, materials or equipment between

any number of places over any given period of time.

It is represented as a square matrix: columns indicating

origin of movement and rows the destination. Or vice

versa.

Data could be travel time taken, distance traveled etc.

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MICRO MOTION STUDY It is a set of techniques intended to divide human activity into

groups of movements or micromotions (therbligs) and the studyof such movements helps to find for an operator one best patternof movements that consumes less time and requires less effort for

accomplish the task.

It makes use of motions pictures of the activities taken at a pre-determined constant speed.

Used for those operations which are short in cycle and repetitivein nature.

Require greater details to determine where movements andefforts can be saved and developed the best possible pattern ofmovement.

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OBJECTIVES

Assist in finding the most effective ways of doing a work.

Helps to study repetitive short cycle operations.

To train the operator regarding the motion economy.

To assist research project in the field of work study.

Helps in collection of motion time data for synthetic time study. Permanent means of keeping record of method

As an aid in teaching the fundamentals of motion study.

Helps in study the complex activities of short duration.

PROCEDURE/STEPS:- Filming the operations to be studied

Analysing the film.

Charting the result of analysis (graphic representation)

Developing improved method.

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FILMING

Usual speed of 16 frames per second or 1000 frames per minutewith a 16 mm movie camera.

Lower speeds for filming long periods and higher speeds forshort cycles and very rapid human motions.

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EQUIPMENTS

Movie camera

16 mm film

Micro Chronometer or wink counter

Exposure meter

Flood lights and reflectors Motion picture projector with screen.

Film Analysis:-

Running the film number of times at normal speed to makehimself familiar.

Select the work to be study, the starting point and finishingpoint

Each frame of cycle is studied as regards changes in therbligs

Analysis completed, information collected in form of film analysissheet, next step to prepare SIMO chart.

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PRINCIPLES OF MOTION ECONOMY Observed that 25-50% of the manual work done in factories, shops,

offices is unnecessary.

3 basic principles of motion economy :- Principles related to the use of human body.

Principles related to the arrangement of the work-place.

Principles related to the design of tools and equipment.

Principles related to the use of human body:- 2 hands should begin and complete their motions at the same time

2 hands should not be idle at the same time, except during rest period.

Motions of the arms should be made in opposite and symmetrical directions andshould be made simultaneously

Hand motions should be confined to the lowest classification with which it ispossible to perform the work satisfactorily

Momentum should be employed to assist the worker whenever possible, and itshould be reduced to a minimum if it must be overcome by muscular effort.

Smooth continuous motions of the hands are preferable to zigzag motions orstraight-line motions involving sudden and sharp changes in direction.

Ballistic movements are faster, easier, and more accurate than restricted(fixation) or "controlled" movements.

Rhythm assists smooth and automatic performance. Arrange the work to permit an

easy and natural rhythm.

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Principles related to arrangement of The Work Place:- There should be a definite and fixed place for all tools and materials.

Tools, materials, and controls should be located close in and directly infront of the operator.

Gravity feed bins and containers should be used whenever possible.

Drop delivers should be used whenever possible.

Materials and tools should be located to permit the best sequence ofmotions.

Provide for adequate visual perception. Good illumination is the firstrequirement.

Arrange the height of the workplace and chair for alternate sitting andstanding, when possible.

Provide a chair of the type and height to permit good posture.

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Principles related to the design of tools and equipment:- Relieve hands of work that can be done more advantageously by a jig,

fixture, or a foot-operated device.

Combine tools whenever possible.

Pre-position tools and materials.

Where each finger performs some specific movement, such as in typewriting,

the load should be distributed in accordance with the inherent capacitiesof the fingers.

Handles (i.e. cranks and large screwdrivers) should permit as much of thesurface of the hand to come in contact with the handle as possible, especiallywhen considerable force is necessary.

For light assembly, a screwdriver handle should be smaller at the bottom.

Levers, crossbars, and hand wheels should be located in such positionsthat the operator can manipulate them with the least change in body positionand with the greatest mechanical advantage.

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WORKMEASUREMENT

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INTRODUCTION

Introduced by F.W. Taylor in last 18th century.

Reduces the friction between employers and employees.

Technique was used to determine the length of time a job shouldtake for completion.

Time measurement for any job is essential due to :- For estimating labor cost.

For manpower planning.

For scheduling activities.

For budgeting and control of monetary.

For decisions of equipment requirement

For effective production planning maintenance procedure.

For incentive schemes. For calculation of exact delivery dates of products.

Standard time for completion of job is set by use of workmeasurement.

Helps in improved planning and control and providing a basisfor incentive scheme to the employees.

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WORK MEASUREMENT

Definition as per ILO, It is the application of techniquesdesigned to establish the time for a qualified worker to carryout a specific job at a defined level of performance.

Techniques in work measurement:- Stop watch study or time study.

Work sampling Predetermined motion time standards (PMTS)

Time Study:- Use of stop watch (either analog or digital)

To obtain required time for the job.

Standard time is main basis for work measurement.

work sampling:- Method of finding occurrence o a certain activity by statistical sampling of random

observations.

Rely upon statistical theory of sampling and probability theory.

Normal distribution and confidence level are associated.

PMTS:- time establishes for basic human motions are used to buildup time for a job at a defined level of performance.

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TIME STUDY

As per ILO, It is a wok measurement technique forrecording the times and rate of working for the elementsof a specified job, carried out under specified conditionsand analysing the data so as to obtain the time necessaryfor carrying out the job at a defined level of performance.

Stop watch is the basic time measuring device, can be eitherelectrical (digital stop watch) or mechanical (analog).

Recording the times and rates of working for the elementsof a specified job carried out under specified conditions,

Analyzing the data so as to obtain the time necessary forcarrying out the job at a defined level of performance.

Equipments required:-

Stop watch

Fly back type

Non-fly back type

Split hand stop watch.

Time study board

Time stud form/sheet.

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PROCEDURE FOR TIME STUDY Obtaining and recording all the information about the jo b, the

operator and the surrounding conditions, which is likely to affect the

carrying out of the work.

Recording a complete description of the method, breaking down the

operation into elements.

Examining the detailed breakdown to ensure that the most effective

method and motions are being used.

Measuring and recording the time taken by the operator to perform

each element of the operation.

At the same time assessing the effective speed of the working of the

operative in relation to the observers concept of the ratecorresponding to standard rating.

Extending the observed times to basic times.

Determining the allowances to be made over and above the basic timefor operation.

Determining the standard time for the operation.

Making the time study record sheet.

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TIME STUDY RECORD SHEETElements

Time ( Minutes)Average obsrved

time (minutes)

1 2 3 4 5

A 2.4 3.2 2.8 3 2.6 2.8

B 3.6 6.8 3.4 3.8 4 4.3

C 4 4.2 3.8 4.6 4.8 4.2

Observed time.. Personal Allowance..Level of rating factor. Fatigue Allowance....

Normal Time... Standard Time..

Standard Time= Normal Time + allowances + Unavoidable delays

Where, Normal Time = Observed time X Rating Factor= Observed time X observed rating/ Std. rating.

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PRODUCTION

PLANNING ANDCONTROL

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INTRODUCTION

The basic question to be answered by all industrialmanagers:- What to produce?

How much to produce?

When to produce? What resources are needed?

Production planning and control is the best tool as it involvesplanning of various production activities as per setprogram.

The production planning and control involves:-

Forecasting, requirement planning, inventory control, production planning,process planning, estimating, master schedule, machine loading andscheduling, quality control, expediting, purchase, warehousing, dispatching,etc.

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Production:- Transformation by integration or assembly, usingseveral components as inputs and obtaining essentially oneproduct as output. Examples producing machines, householdappliances. Etc.

Planning:- means preparing the scheme in advance beforeactual work is started.

Control:- means the supervision of all the relevant operationswith the help of control mechanism that feed backs the progressof work.

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PRODUCTION PLANNING AND

CONTROL

Production planning and control is one of the most importantareas of industrial management.

It aims at achieving the efficient utilization of resources

(material, men, machines, facility, etc.) in anyorganization through planning, coordination and controlof production activities that transform the raw material intofinished products.

As per Charles A. Koepke, Production planning and controlmay be defined as the coordination of functions

according to a plan which will economically utilize theplant facilities and regulate the orderly movement ofgoods during the entire manufacturing cycle, from theprocurement of all materials to the shipping of finishedgoods at a predetermined rate.

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FUNCTIONS OF PPC 5 basic functions of PPC:-

Pre-planning:-

Forecasting

Cost estimation of production

Product planning Product designing

Process planning

Resource planning

Routing

Scheduling

Dispatching controlling

ProductionPlanning

Routing

Scheduling

Dispatching

Followup

Pre-plannin

g

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PRE-PLANNING It refers to functions carried out prior to production planning.

It includes:-

Forecasting

Cost estimation

Product designing

Product planning Process planning

Resource planning

Forecasting:-

Process of estimation of future activities.

Based on certain estimates, expectations and trends and on theirassessments and evaluations.

Survival of manufacturing unit upon its ability to forecast the demand forits product correctly.

The demand of product depends upon:-

Arrival of new product Government policies

Competitors policy Country economic situation

Time to time fashion changes

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Objectives of forecasting:- To determine the financial requirement

To determine the production rate

To determine volume of production

To formulate pricing policies

To decide the need for sale promotion activities To know the need for plant expansion

Factors considered while forecasting:- Trend:- Demand in the previous few years, increase or decrease.

Cyclic Variation:- Some products may have alternative periods ofhigher demand and lower demand

Seasonal Variation:- The product may have demand for the samefew months every year.

Irregular variations:- the demand may suddenly vary due tounforeseen causes like strike, flood, etc.

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ROUTING Routing It decides the path of work & the sequence of

operations: Determining the quality of the product to be manufactured

Determining the men, machines & materials to be used

Determining the types, number & sequence of manufacturingoperations

Determining the place of production

Objectives of Routing :- It determines the sequence of manufacturing operations.

It ensures the strict adherence to the sequence determined.

It strives for the best possible & cheapest sequence of operations.

It influences the design & layout of the factory building with a viewto get quick & better production results.

It also influences the installation of plants & factory for betterresults.

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SCHEDULING

Scheduling arranges the different manufacturingoperations in order of priority, fixing the time &date for the commencement & completion of

each operation.

In brief, scheduling means fixing or deciding the

amount of work to be done & fixing the time forstarting & finishing each operation.

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USES OF SCHEDULING

Scheduling is a necessity in a large setup which producesa variety of products with numerous components.

Scheduling determines the total time required to perform

a given piece of work or assembly. Time & motion study helps standardization of methods of

working.

TYPES OF SCHEDULING:- OPERATIONAL

MASTER

OPERATIONAL SCHEDULING Determines the total time to do a work(Operation) with a given machine or process, details of types ofmaterials, and labour etc.

MASTER SCHEDULING It is a list showing how many of each item tomake in each period of time in future. The nature of master scheduledepends on whether the manufacture is to order to stock.

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DISPATCHING

Dispatching is concerned with starting the processes &operations of production.

Dispatching is based on the route sheets, route chart &schedule sheets.

It is defined as physical release of work authorizationto a operating facility ( men, machine) in accordancewith a previously established plan developed by routingand scheduling function.

As per APICS dictionary, Dispatching is the selecting

and sequencing of available jobs to be run atindividual work stations and the assignment ofthese jobs to workers.

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FUNCTIONS OF DISPATCHING

To ensure that the right materials are moved from storesto machines & from operation to operation.

To distribute machine loading & schedule charts, routesheets& identification tags for each works order.

To instruct tools department to issue the right tools &fixtures in time.

To authorize the work to be taken in hand as per thepredetermined dates & time.

To inform the follow-up section that production isstarting.

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FOLLOW UP

This is the last function of production control. It speed upthe movement of materials & production process as awhole.

It looks into determination of the present situation byexpediting the departments lagging behind & removingthe bottleneck in the production line.

It is the measurement of :- Output against plan

Analysis of performance for shortfalls

It can be done at three stages, For materials,

Work in progress and

Stage during assembly and execution.

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INVENTORY CONTROL

It ensures:- Protection against fluctuations in demand,

Better use of men, machines and materials and

Protection against fluctuation in output.

The Main aim of inventory control is To observe the stock investments and to ensure that it lies within

the limits which the organization can afford .

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RISK

Production Planning And Control Can Be Linked To ADriver , Who Is Blind folded, Driving A Car Only By TheInstructions Received From His Companion Sitting On TheFront Seat Who Can See Only Through The Rear Window.

This Illustrates The Risk Likely To Be Encountered inCarrying Out This Function.

Often There Is Not A Clear View And One Has To Work ByThe Past Experience.