Professional Documents
Culture Documents
1. Explain production system model as on today & from organization point
of view?
Answer:
Production System Today :
Machine Economic Capital Competition
Availability Climate
Material supply
Customer
Bank
Demand
Production System in Organization :
Vision : Companies Mission is what co. want to
achievement in near future achieve Or Purpose of companies
Mahindra Tractors : We existence
will be largest tractor Policy Amul – Taste of India
manufacturer in the
world by 2009 Mission Glaxo – Better India Healthier India
L&T We will do the things India
will proud of
Plan of Glaxo :
Plan
We will be life saving
drug import substitute
Production System
Production System : Is a vehicle through which organization achieves its vision /
Mission written by the company
As effectiveness of production system can affect vision & mission statement of Co.
2. Discuss interaction of production with other functions of organization?
Answer:
Interaction with other functions :
Marketing Industrial Engg.
Marketing :
1. Customer Quality requirement
2. New product & processes
3. Customer feedback on products & services
• Finance :
1. Budgetary information
2. The analysis of investment
3. Provision of money for improvement
4. Provision of information on general condition of firm
• Accounts :
1. Data including cost of material ,direct labor & Over head items
2. Release of special reports on operation of the production system
,includes scrap, rework ,overtime etc.
3. Providing data to data processing services
• Procurement :
1. The determination of items to be purchased
2. The determination of delivery schedule
3. The discovery of new product / process / material
4. Inventory control
• Personal :
1. Retirement of people
2. Training of people
3. Labor relations
4. Safety
• R&D : Of New ideas ,products ,processes etc.
• Industrial Engineering :
1. Method analysis information
2. Work measurement information
3. Plant layout & Material handling information
4. Plant maintenance information
3. Explain Continuous & Intermittent production system?
Answer: From Text Book Page No.:226227
4. What is plant layout & factors to be considered in development of plant
layout?
Answer: Layout is a Fundamental of every organization and enterprise
• Kitchen, Retailers, offices, service organization and all the enterprises
have a specific layout
• A Simple situation with few items to arrange have many alternatives
• Previously Layouts were based on intuition, experience and judgment
• With the complexities and competition now scientific methods are
used
• The Layout comes in picture after the location has been finalized
• Development of good layout depends on decisions already taken on
location, capacity, facility, manufacturing method and material
handling techniques
• Efficiency and performance of machines and production is the focus
area for this
• Plant layout begins with plant location and continues through 3 further
levels,
1. Layout of department within site
2. Layout of items within the department
3. Layout of individual work places
Factors Influencing Layouts
1. Factory Building : The nature & size of building determines the floor
space available for layout . While designing the special requirements i.e.
Air conditioning, dust control , Humidity control ,Noise proofing etc must
be kept in mind
2. Nature of product : Product layout is suitable for uniform products
Process layout is suitable for custom made products
3. Production process : In assembly line industries product layout is better
In job order or intermittent manufacturing process layout is desirable
4. Types of machinery : General purpose machines are arranged as per
process layout, Special purpose machines are arranged as per product layout
5. Repairs & Maintenance : Machines / Equipments must be arranged
keeping in mind the movement of operators & maintenance tools
6. Human Needs: Adequate arrangement should be made for Wash rooms,
drinking water / Canteen & other employee facilities
7. Plant Environment: Heat / Noise / Light / Ventilation & other aspects
should be duly considered e.g. Pint shop / Fabrication / Plating section should
be located separately to protect employees from harmful fumes etc. Adequate
safety arrangement should be made
To conclude
• The plant layout should be conducive to health & safety of employees
• It should ensure free & efficient flow of employees & materials
• Future expansion & diversification may also be considered while
planning factory layout
5. Explain objective of plat layout & compare good & poor layout?
Answer:
Objectives of Plant Layout
• Economies of materials, facilitation of manufacturing and handling of goods
• Proper and efficient use of floor space
• Ensure proper flow of goods and processes without any delay
• Provision for supervision and control
• Careful planning to avoid changes and relayout of a plant
• Provision of safety to workers
• Meet quality and capacity requirement in the most economical manner
• Provision of adequate medical facilities and refreshment facilities
• Have enough of material handling spaces
Features Of A Good Layout
• Sufficient space for worker and machine to perform their tasks
• Must have adequate safety and security to workers against accidents. For eg.
Provision of first aid box, fire ex.,etc
• Sufficient gangway space for raw materials, workers and semi finished goods
• Arrangement of machines and equipment in such a way that it minimizes
material handling and costs
• Stores for inprocess material should be near to processing machines
• Supervision, coordination and control should be easily and effectively carried
• Scope for further adjustments and extensions should be sufficient enough
Symptoms of Poor Layout
A good layout results in
• Comfort,
• Convenience,
• Safety,
• Efficiency,
• Compactness And
• Finally In Profits To The Organization
A poor layout results in
• Congestion,
• Wastes,
• Frustration,
• Inefficiency And
• Finally A Lower Profit Or A Loss To An Organization
6. What is material handling? Explain any 10 principles of material
handling?
Answer: Materials handling
· The loading, moving, and unloading of materials
· The hundreds of different ways of handling materials are generally
classified according to the type of equipment used.
For example, the International Materials Management Society has classified
equipment as
(1) Conveyor
(2) Cranes, elevators, and hoists
(3) Positioning, weighing, and control equipment
(4) Industrial vehicles
(5) Motor vehicles
(6) Railroad car
(7) Marine carriers
(8) Aircraft
(9) Containers and supports
Principles of Material Handling
1. Orientation Principle
Study the system relationships thoroughly prior to preliminary planning in order to
identify existing methods and problems, physical and economic constraints, and to
establish future requirements and goals
2. Planning Principle
Establish a plan to include basic requirements, desirable options, and the
consideration of contingencies for all material handling and storage activities
3. Systems Principle
Integrate those handling and storage activities which are economically viable into a
coordinated system of operation including receiving, inspection, storage, production,
assembly, packaging, warehousing, shipping and transportation
4. Unit Load Principle
Handle product in as large a unit load as practical
5. Space Utilization Principle
Make effective utilization of all cubic space
6. Standardization Principle
Standardize handling methods and equipment wherever possible ( pallet truck)
7. Ergonomic Principle
Recognize human capabilities and limitations by designing material handling
equipment and procedures for effective interaction with the people using the system
(Diesel Forklift drivers)
8. Energy Principle
Include energy consumption of the material handling systems and material handling
procedures when making comparisons or preparing economic justifications ( Ex :
Diesel fork lift Vs Electrical)
9. Ecology Principle
Minimize adverse effects on the environment when selecting material handling
equipment and procedures
10. Mechanization Principle
Mechanize the handling process where feasible to increase efficiency and economy in
the handling of materials.
11. Flexibility Principle
Use methods and equipment which can perform a variety of tasks under a variety of
operating conditions
12. Simplification Principle
Simplify handling by eliminating, reducing, or combining unnecessary movements
and/or equipment
7. Explain need & nature of location decisions? Discuss various Factors
influencing location decisions?
Answer:
Need for Location Decisions
• Marketing Strategy
• Cost of Doing Business
• Growth
• Depletion of Resources
Nature of Location Decisions
• Strategic Importance
– Long term commitment / costs
– Impact on investments, revenues, and operations
– Supply chains
• Objectives
– Profit potential
– No single location may be better than others
– Identify several locations from which to choose
• Options
– Expand existing facilities
– Add new facilities
– Move
• Decide on the criteria
• Identify the important factors
• Develop location alternatives
• Evaluate the alternatives
• Make selection
Factors Influencing Location Decisions
• Customer response time and local presence
• Operating costs
• Technological,
– Availability and economies of scale (fixed operational costs):
Semiconductor manufacturing takes place only in 56 countries
worldwide
• Infrastructure, electricity, phone lines, suppliers
• Macroeconomic: Tariffs, exchange rate volatility, economic volatility
• Economic communities: NAFTA (North American Free Trade
Agreement), EU (European Union), PACIFIC RIM (The Pacific Rim refers
to the countries and cities located around the edge of the Pacific Ocean),
EFTA (European free trade association)
• Political stability
• Logistics and facility costs
• Competition
• Positive externalities : Nissan in India develops car suppliers which can also
supply Suzuki in India
Toyota City
Shopping Malls
• Negative externalities,
• Pollution (Ex: factories burn fuel for production. Production will result in
profit but gases produced are harmful to the environment, people etc.)
Location Decision Factors
Regional Factors Community Considerations
Multiple Plant
Strategies Siterelated Factors
Regional Factors
• Location of raw materials
• Location of markets
• Labor factors
• Climate and taxes
Community Considerations
• Quality of life
• Services
• Attitudes
• Taxes
• Environmental regulations
• Utilities
• Developer support
Site Related Factors
• Land
• Transportation
• Environmental
• Legal
Multiple Plant Strategies
• Product plant strategy
• Market area plant strategy
• Process plant strategy
8. Explain factors to be considered while selecting location for service
function & manufacturing function?
Answer:
Comparison of Service and Manufacturing Considerations
Manufacturing / Distribution Service / Retail
• Cost Focus • Revenue focus
• Transportation modes / costs Demographics : age,income,etc
• Energy availability, costs • Population / area
• Labor cost / availability / skills • Competition
• Building / leasing costs • Traffic volume / patterns
• Customer access/parking
9. Selection of location by using ROI Method? ( Numerical Example from
class PPT)
Answer:
• Transportation Model : Decision based on movement costs of raw materials
or finished goods
• Factor Rating: Decision based on quantitative and qualitative inputs
• Center of Gravity Method: Decision based on minimum distribution costs
Factor affecting location,
Physical Factors
• Qualitative : Measurement in terms of criteria like Adequate /
Good / Significant etc
• Quantitative: Measurement in terms of some cost Labor /
Material / Housing / Land / Transport
Evaluating Locations (Ex)
A manufacturing co. is in situation to decide a suitable location for new plant. Three
probable locations are short listed namely X102 , Y102 , Z102, Relevant data is as
mentioned in the table given below. Use ROI method to Finalize the location
Proposed Locations
Sr.No Data X 102 Y 102 Z 103
1 Salaries & Wages 25000 25000 25000
2 Water & Power Expenses 25000 35000 30000
Raw material & other
3 expenses 85000 80000 65000
4 Total Initial Investment 200000 300000 250000
5 Distribution Expenses 55000 45000 65000
6 Miscellaneous Expenses 45000 25000 35000
Expected Sales(Rs)per
7 anum 225000 250000 225000
Solution:
Proposed Locations
Data X 102 Y 102 Z 103
Sales Revenue 225000 250000 225000
Total Expenses 235000 210000 220000
Profit 10000 40000 5000
Initial Investment 200000 300000 250000
% Return on investment
(ROI)
ROI = Profit / Initial
Investment 5 13 2
Conclusion: Based on ROI criteria location Y 102 is the best.
10. What is inventory management? Discuss types of inventories?
Answer:
Inventory Definition: It consist of material Raw / in process / Finished goods,
Goods purchased for resale Also tangible assets which can be seen, measured &
counted
Types of Inventory Management Systems:
11. What is inventory control? Explain any two selective inventory control
methods?
Answer: Text Book No. 285 and 290
12. What is “MRP” in production management? Explain in detail.
Answer: Text Book No. 282 and 283
13. Discuss important types of plant maintenance & scope of maintenance
function?
Answer:
• Function Of The Manufacturing Management Concerned With The Day To
Day Problem Of Keeping The Physical Plant In Good Health
• An Essential Activity In Every Manufacturing Establishment
• Needed To Ensure Availability Of The Machines, Buildings &
Services
• Needed By Other Parts Of The Organization For The Performance Of
their Functions At An Optimum Return On The Investment, Whether
This Is In Machines, Materials Or Employees
Types Of Maintenance
• Break Down Or Corrective
• Preventive
• Predictive
• Routine
• Planned
BREAK DOWN MAINTENANCE
• Maintenance Done After A Breakdown Occurs
• A Passive Role Aimed At
• Getting The Equipment Back Into Operation As Soon As
Possible
• Control Cost Of Repairs
• Control Cost In Replacement Of Spare Machines
PREVENTIVE MAINTENANCE
• Undertaken Before The Need Arises & Aims To Minimize The
Unanticipated Or Major Break Downs
• Proper Identification Of Equipment
• Adequate Record Of Work, Costs Etc
• Inspection Schedule
• Inspection Check Lists
• Well Qualified Inspectors
• Use Of Repair Budgets For Major Equipment
• Administration Procedures For Follow Up Program
PREDICTIVE MAINTENANCE
• Maintenance Based On The Condition Of Equipment
• Sensitive Instruments Used For Predicting Trouble
• Extension Of Service Life Without Fear Of Failure
ROUTINE MAINTENANCE
• Periodic Inspection, Cleaning , Lubrication & Repair Of
Production Equipment
• Can Be Online Or Offline
PLANNED MAINTENANCE
• INSPECTION OF ALL PLANT & MACHINERY ACCORDING
TO PREDETERMINED SCHEDULE
• TO SERVICE , OVERHAUL, LUBRICATE OR REPAIR
BEFORE ACTUAL BREAKDOWN OR
DETERIORATION OCCURS
• AIMS TO REDUCE MACHINE STOPPAGE DUE TO
SUDDEN BREAK DOWN
• REDUCES MACHINE BREAK DOWN TIME , COST OF
MAINTENANCE AND INCREASES PRODUCTIVITY
• SCOPE
– Primary Function
• Maintenance Of Existing Plant & Machinery, Buildings &
Ground
• Equipment Inspection & Lubrication
• Utilities Generation & Distribution
• Alteration To Existing Equipment & Buildings
• New Installation Of Equipment And Building
– Secondary Function
• Store Keeping Stock Of Spare Parts
• Plant Protection Including Fire Safety
• Waste Disposal
• Salvage
• Insurance Administration
• Pollution & Noise Control
14. What is TPM & explain specific actions of TPM?
Answer:
TOTAL PRODUCTIVE MAINTENANCE (TPM)
• Originally Developed In Japan
• An Approach Bringing Total Quality Management Concepts To The
Practice Of Preventive Maintenance
• Involves The Concept Of Reducing Variability Through Employee
Involvement And Excellent Maintenance Records
• Method Designed To Eliminate The Loses
• Caused By Breakdown Of Machines And Equipments
• By Identifying And Attacking All Causes Of Equipment
Breakdowns And System Down Time
• SPECIFIC ACTIONS OF TPM
• Restoring Equipment To A Likenew Condition
• Having Operators Involved In The Maintenance
• Improving Maintenance Efficiency And Effectiveness
• Training The Labor Force To Improve Their Job Skills
• Minimize Maintenance Efforts
• Effective Use Of Preventive And Predictive Maintenance
Technology
STRUCTURE OF
TOTAL Productive MAINTENANCE (TPM)
MAINTENANCE
Sources of Variation2nd Material
Sources of Variation3rdEnvironment
Sources of Variation4th Operator
Sources of Variation continue
16. What is principle of control chart? Explain use of control chart?
Answer:
Control Charts
Control Chart METHOD
Short Notes:
17 .Network analysis
18. Break even analysis
19. Fault Tree analysis
20. Reliability
21. JIT
Answer:
• JIT is an inventory strategy implemented to improve the return on
investment of a business by reducing inprocess inventory and its
associated carrying costs.
• In order to achieve JIT the process must have signals of what is going on
elsewhere within the process
• This means that the process is often driven by a series of signals, which
can be Kanban), that tell production processes when to make the next part.
Kanban are usually 'tickets' but can be simple visual signals, such as the
presence or absence of a part on a shelf
• When implemented correctly, JIT can lead to dramatic improvements in a
manufacturing organization's return on investment, quality, and efficiency.
• Quick communication of the consumption of old stock which triggers new
stock to be ordered is key to JIT and inventory reduction.
• This saves warehouse space and costs
• However since stock levels are determined by historical demand, any
sudden demand rises above the historical average demand, the firm will
deplete inventory faster than usual and cause customer service issues
• In recent years manufacturers have touted a trailing 13 week average as a
better predictor for JIT planning than most forecasters could provide
Transaction cost approach
• JIT reduces inventory in a firm. However, unless it is used throughout the
supply chain, it can be hypothesized that firms are simply outsourcing their
input inventory to suppliers
• This effect was investigated by Newman (1993), who found, on average,
suppliers in Japan charged JIT customers a 5% price premium
Environmental concerns
• During the birth of JIT, multiple daily deliveries were often made by
bicycle; with increases in scale has come the adoption of vans and lorries
(trucks) for these deliveries
Three JIT wastes:
• Time: wasted in traffic jams
• Inventory: specifically pipeline (in transport) inventory and
• Scrap: with respect to petrol or diesel burned while not physically moving
Benefits
1. Set up times are significantly reduced in the factory: This allows the reduction
or elimination of the inventory held to cover the "changeover" time, the tool
used here is SMED (Single Minute Exchange of Die). The phrase "single
minute" does not mean that all changeovers and startups should take only one
minute, but that they should take less than 10 minutes
2. The flows of goods from warehouse to shelves are improved.
3. Better consistency of scheduling and consistency of employee work hours
4. Increased emphasis on supplier relationships
5. Supplies continue around the clock keeping workers productive and businesses
focused on turnover
22. Robotics:
Answer: ROBOTS are Human like machines that perform production tasks
1. Robots can be programmed to perform a set of moves
2. Program storage & control is in micro computer with set of
predetermined operation
3. Robots replace human beings for Dangerous / hazardous (lifting
hot components, continuous welding etc ),Heavy , Dirty
,Unpleasant or monotonous tasks
Robotics: It is the science of selecting robots for various applications &
knowing when not uses them is “ROBOTICS”
Advantages:
1. Consistency in performance
2. No mental or Physical fatigue
3. Production of better quality products
Disadvantages:
1. High initial investment
2. No value addition due to experience
3. High maintenance cost
23. Computer integrated manufacturing
Answer:
Future of Manufacturing
• Stress on high product6 quality
• Flexible manufacturing system
• Fast execution & customer order delivery
• CAD / CAM will be basis for product design & production planning
Digital computer will be driving force (known as CIM—Computer Integrated
Manufacturing). Digital computer will provide shared data base for four primary
manufacturing functions
1. Engineering design
2. Manufacturing Engineering
3. Factory production
4. Information management
The database stores all products & process related information required to produce
a component or a product
It also contains information about machines, tools, materials, manufacturing steps,
quantity required & vendor /supplier database