EHU-601

Chapter -1
Introduction to Industrial Management

Management
Traditional Definition :

Mgmt is define as an art of getting things done through others. (Mark Parker Follet). The person who directs the efforts of other is known as Manager whose work is to accomplishes the goals of organization with the help of operative employees.

Reasons For Critisism of Traditional Definition

This model does not give the functions which a

manager has to perform to get the results from others. The employees treated as means for getting result. Workers are supposed to work like machines. The needs of workers have been ignored.

Modern Definition of MGMT.

Mgmt is the creation & maintenance of an internal

environment in an enterprise where individuals, working groups, can perform efficiently & effectively towards the attainment of group goals.(Harold Koontz)

Basic Elements of Modern Def.

Process: Process means the primary function or activities
that mgmt performs to get things done. Activities Involves: (i)Planning (ii)Organizing (iii) Staffing (iv) Directing (v) Controlling

Effectiveness: means to finish the giving task. It only

concern with end result.

Efficiency: means optimum utilization of resourses to

perform any given task.

Organisational Objectives: Modern concept of mgmt

insists that all the activities of managers must be directed towards the achievement of organisational gaol.

Effectiveness vs Efficiency
Effectiveness deals with completion of task on time

while in Efficiency tasks completed within minimum cost. Effectiveness concern with end result of target o/p while efficiency concern with cost, benefit analysis, use less resourses & getting maximum o/p.

Management Process and Functions

Hierarchy in Mgmt.

Introduction
Rapid Increase in Global Competition
Technological Changes Dimensions for competitiveness of any companyDelivery, Innovation, Flexibility to adapt in changing demand. Cost, Quality,

To improve organizational performance-

effective use of production capability and technology, Total Quality Management(TQM), Quality Function Development (QFD), Six Sigma, Business Process Re-Engineering(BPR), Just in Time(JIT), Benchmarking, Performance Measurement

Company have to satisfy internal & External Customers.

Industrial Management

Industrial Engineering

The American Institute of Industrial Engineers (AIIE) has defined the special field of Industrial Engineering as Concerned with design, improvement and installation of integrated system of people, materials, equipment and energy.

Concept of Industrial Engineering

It is engineering approach to the detailed analysis of the use and

cost of the resources of an organization. The main resources are men, money, materials , equipment and machinery. The industrial engineer carries out such analysis in order to achieve the objectives (to increase productivity, or profits etc.) and policies of the organization.
The industrial engineer is engaged in the design of a system and

his function is primarily that of management.

The industrial engineer had to focus on only one concept to

describe his field of interest and objective, it would have to be productivity improvement.

Industrial Management
IM involves guidance, co-ordination & control or efforts of a group of individuals towards optimum utilization of men, materials, machinery & money through improved design, analysis & implementation in order to achieve common objectives of the industry. IM refers to the systematic management of an industrial organization.

Objectives of IM
Customer Services
Coordination of different activities Efficient utilization of resourses

Improves Product Quality

Active Cooperation of Employees

Role of Industrial Engineer

Decision-Maker Develops and uses
decision tools Uses MIS and computers

Expert Help in Decision-making

Helps in designing the system Expert in new technology like BPR, TQM, MRP etc.

Trainer Motivates
Helps in work study Train the workers in methods and motion study Applies new technologies

Industrial Engineer

Advisor Review and interpret data

Advises for improvement Suggests productivity tool Negotiator

Analyst of System
Identifies system faults
Analyses job at micro level

Need of Engineers in Management

There are three basic management skills: technical, human

and conceptual. (i) A technical skill is the ability to use tools, techniques, and specialized knowledge to carry out a method, process, or procedure. (ii) Human skills are used to build positive interpersonal relationships, solve human relations problems, build acceptance of ones co-workers, and relate to them in a way that their behavior is consistent with the needs of the organization. (iii) Conceptual skills involve the ability to see the organization as a whole and to solve problems in a way that benefits the entire organization.

Scope of Industrial Management

Management Function

Productivity Measurement

Production Planning

Scope of IM
Inventory Control Quality Control

Supply Chain Management

Application of Industrial Management

Product Designing: which is commercially viable & can be accepted by customers Devising efficient methods of production: Maximize output & reduce input Exploring reliable suppliers: Uninterrupted & reliable supply of raw material Fund Management: Lowest cost & higher return Plant Designing: Considering certain factors like workers & material movement, safety, efficient utilization of space etc. Recruitment & Training: Best human resources System Co-ordination: With other deptt. like marketing ,IT, HR, Finance, etc Leadership & Motivation: To enhance their performance System Control : Inventory , quality & environmental pollution control .

Challenges in Managing Engineering & Technology

Changing Technology

Tight & Date Driven Schedules

Limited Resources

Competition for Resources

Complex in Task Creativity & Innovation Multifunctional Team Building

Rewards for Motivation

Sample Project Planning Summary

IM in Software Development

Chapter -2
Production Productivity & Production System

Production Function
The production function shows a technical or

engineering relationship between the physical inputs and physical outputs of a firm, for a given state of technology. The production function of a firm can be describe as: P=f(a,b,c,..z) Where a,b,c,z are amounts of various inputs such as men, machine,material,energy,capital etc. P is the level of output for a firm.

Production
It is a process of creating or enhancing utility by

transforming a set of inputs such as men machinery, material & money into a specific set of output such as finished goods or services It is a value addition process. It is a process by which goods & services are created. Production is the main function in any organization, which includes activities that are responsible for creating value-added product that is the output of any industry organization. Production and related technologies that have a reciprocal relationship. Production needs to operate with lower costs, increase quality and productivity, has led to rapid technological developments.

Productivity
It may be defined as the ratio between output & input
Output means the amount or numbers of items

produces & inputs are the various resources employed such as men machinery, material & money
It is the measure of the quantity of output per unit of

input

Productivity = Amount of Output/Amount of Input

Productivity Index(Partial Productivity)

Labor productivity =
No. of Units of Output No of Labour employed

Raw material productivity = Output value at standard price Cost of raw materials Direct cost productivity =
Output Value at standard price Sum of all direct costs

Direct labor cost productivity = Output value at Standard Price Amount of wages paid Capital productivity = Value Added Capital Employed Energy productivity = Amount of output produced No. of Units of power used

Material productivity =
Output value at standard price Cost of
(Raw Material+ Packaging material+ Supplies)

Total Factor Productivity =

Output (Value Added) at standard price Labour+ Capital Invested

Factors affecting Productivity

Factors affecting national productivity
1. Human resources 2. Technology and Capital Investment 3. Government Regulation

Factors Affecting Productivity in organization:Product( or system ) design 2. Machinery and Equipment 3. Skill and Effectiveness of the worker 4. Production Volume
1.

Productivity Improvement implies

(i) a more efficient use of resources, (ii) less waste per unit of input supplied, (iii) higher level of output for fixed levels of input

supplied and so on. The inputs may be

(i) human efforts, (ii) energy, (iii) materials, (iv) invested capital etc.

Methods to Increase Productivity

Material (Raw material of right quality) Labor Participation in mgmt functions Plant, Equipment and Machinery Land and Buildings(includes Natural Endowment, Type of Org., Availability of Capital, Mechanisation & Automation) Better Technology Work Study Scientific Selection & Training of workers Provision of incentives Provide Good Working Condition

Production System
Production System is the transformation of

inputs(4M) into goods and services desired by the customers.

Production System I/O Model

Inputs: Transformation Process: Product Design Process Planning Production Control Maintenance Outputs:

Men Machinery Material Money

Products Services Packaging Shipping

Information Control Decision Making

Types of Production Methods / Systems

1.

Continuous: Continuous Production involves a continuous flow of materials

during the production process.(e.g Assembly line). Mass production: Refers to the manufacturing of standardised items or components on a large scale. (e.g Coke ,Pepsi, Toothpaste, auto componets, electronics, electricals, bicycles industries) Process Production or continue flow type: Process production involves continuous production of goods in anticipation of customer demand rather than in response to customer order.(e.g Petroleum, chemical, steel, sugar industries )

2. 3.

One time Large Projects(e.g. Dams, Roads, Flyovers) Intermittent Prod. Sys.: is also known as large batch production. In this
facilities must be flexible enough to handle a wide variety of products & sizes. Components are made for inventory but they are combined differently for different customers. Batch production: The production in small or large batches at intervals by a series of operations.(e.g. Medicines, Book Printing, export prod.)

Job Production: It involves the procedure of manufacturing a product acc. To a specific customer order.(e.g. various machines operations)

Types of Production Methods / Systems

Job Production One-off production - each item

might have particular specifications

Flow Production suitable for mass market products that are identical Batch Production each stage of the production process has an operation completed on it before

moving on to the next stage allows modifications to be made to products that otherwise are the same