INTRODUCTION TO PRODUCTION AND OPERATION MANAGEMENT INTRODUCTION This unit starts with a definition of a system.

In this unit produ tion system and its o!"e ti#es are e$p%ained a%on& with the omponents of a system. The history of operations mana&ement is portrayed. The #arious fun tions of produ tion system and their inter%in'in& are e$p%ained throu&h a f%ow hart. The omponents of omputer( inte&rated manufa turin& and their purpose are dea%t. )ina%%y( the re ent trend in the operations( name%y( G%o!a% *upp%y Chain is introdu ed in this unit. Produ tion and Operations Mana&ement +POM, *-*TEM It onsists of e%ements or omponents. The e%ements or omponents are inter%in'ed to&ether to a hie#e the o!"e ti#e for whi h it e$ists. E&. human !ody( edu ationa% institutions( !usiness or&ani/ations. Components of a system. The input( pro essin&( output and ontro% of a system are a%%ed the omponents of a system.

Contro%. There are two types of ontro%( name%y Proa ti#e Contro% and Rea ti#e Contro%. Proa ti#e Contro%. 0hen an operation is arried out on a produ t in a wor'station( the 1ua%ity inspe tor &oes to the wor'station and inspe ts the produ t. 0hen the samp%es that he has ta'en for the inspe tion are not onfirmin& to the 1ua%ity( he stops the ma hine and identifies the reason for the de#iation and orre ts the pro!%em( so that the produ ed produ t thereafter onform to the spe ifi ations. This type of ontro% pre#ents any ma"or 1ua%ity set!a ' after the produ tion. This is an e$amp%e for proa ti#e ontro%. Rea ti#e Contro%. In a p%annin& period( usua%%y the 1ua%ity tar&et is fi$ed. *uppose( an or&ani/ation fee%s to fi$ 23 defe ti#e is safe in the tar&eted produ tion 1uantity and assumes that at the end of the p%annin& period it finds that the defe ti#e output e$ eeds the tar&eted defe ti#e produ ts. Then( it has to find out the reason for the de#iations( name%y( whether the pro!%em is due to the method of doin& the wor' or the resour es used in the pro ess. Then the p%anner uses this 'now%ed&e to pre#ent any

pro!%em in the future. Thus a Rea ti#e Contro% is a post morterm ase. 4usiness *ystem. The !usiness or&ani/ation is %assified into different su!systems !ased on the fun tions %i'e mar'etin&( produ tion5operation( finan e and human resour e et . Produ tion 5 Operation *ystem Operation system is either manufa turin& se tor or ser#i e se tor. The input re1uirements are shown. The transformation pro ess( in whi h part of the #a%ue addition ta'es p%a e to &et the re1uired 1uantity of the produ t or ser#i es with the tar&eted 1ua%ity within the spe ified time period( is arried out in a most e onomi a% way. Operation Mana&ement P%an oordinates and ontro%s a%% the a ti#ities in the operation system to a hie#e the stated o!"e ti#es. Thus +the a ti#ities %isted in the dia&ram, the Operations Mana&ement a ti#ities( ensure the o!"e ti#e of 1uantity( 1ua%ity( de%i#ery time and e onomi a% way of doin& wor'. There is ommuni ation %in' !etween the #arious a ti#ities. Ea h a ti#ity is dea%t in detai% in different se tions of this materia%. 0hat is operation mana&ement +OM,6 Operation Mana&ement is a way or means throu&h whi h the %isted o!"e ti#es of an operatin& system are a hie#ed. There is a%ways onfusion !etween the word

OM 7 PM +Produ tion Mana&ement,. It is a epted norm that OM in %udes te hni1ues whi h are ena!%in& the a hie#ement of operationa% o!"e ti#es in an operation system. The operation system in %udes !oth manufa turin& se tor as we%% as ser#i e se tor( !ut when you use the word PM( you shou%d !e arefu% to note that it refers to the manufa turin& se tor !ut not the ser#i e se tor. *uppose( you are desi&nin& a %ayout for the hospita% you shou%d say that you are app%yin& Operations Mana&ement Te hni1ue not the Produ tion Mana&ement Te hni1ue. T-PE* O) OPERATION *-*TEM The type of Operation *ystem to !e adopted shou%d !e 'nown to the peop%e( and then on%y you may hoose the system !ased on the nature of the produ t that you are &oin& to manufa ture. The types of operation system are %assified !ased on the fo%%owin& riteria. Produ t f%ow pattern in on#ersion system Output of the produ t *pe ifi ation of the output COMMUNICATION IN POM As it is mentioned in the a!o#e se tion( operation mana&ement is meant to a hie#e the o!"e ti#es for whi h the operation system is intended for. 4ased on

the o!"e ti#e set !y the top mana&ement( the system desi&n is esta!%ished. The system desi&n in#o%#es desi&nin& the produ t and pro ess( desi&nin& the methods( measurin& the wor'( identifyin& the %o ation( and desi&nin& the %ayout. 4y 'eepin& the system desi&n as a framewor' in the a&&re&ate p%annin& #arious produ tion a%ternati#es are ana%y/ed and the !est feasi!%e produ tion a%ternati#es are hosen. Then 'eepin& the a&&re&ate p%annin& as a input( resour e a%%o ation and se1uen in& of day to day a ti#ities are done. The in#entory a%so 'ept at minimum to satisfy the or&ani/ation8s in#entory o!"e ti#es. The maintenan e a ti#ity ensures the a#ai%a!i%ity wor'stations. 9ua%ity ontro% ensures the 1ua%ity in the input( pro essin& and output sta&es of produ tion system. COMPUTER INTEGRATED MANU)ACTURING AND *ER:ICE *-*TEM Computer Inte&rated Manufa turin& +CIM,( a strate&i thrust( is an operatin& phi%osophy. Its o!"e ti#e is to a hie#e &reater effi ien ies within the !usiness( a ross who%e y %e of produ t desi&n( manufa turin& and mar'etin&. Internationa% ompetition has intensified the re1uirement for hi&h 1ua%ity produ ts that an ompete in the &%o!a% mar'et p%a e.

CIM *u!systems *i&nifi ant pro&ress has !een made in the manufa turin& te hno%o&y in re ent years. Numeri a%%y ontro% ma hine too%s( automated materia% hand%in& systems and ontro%%ed systems ha#e !een wide%y used in industria% ompanies. The )%e$i!%e Manufa turin& *ystem +)M*,( Computer Inte&rated Manufa turin& +CIM, or *ystems or Automated Manufa turin& *ystems +AM*, an !e attri!uted to and in reasin& num!er of ompanies. )un tiona% areas of CIM CIM system has emer&ed as a resu%t of the de#e%opment in manufa turin& and omputer te hno%o&y. The omputer p%ays an important ro%e inte&ratin& the fo%%owin& areas of CIM system. . Part + omponent, and produ t desi&n . Too% and fi$ture desi&n . Pro ess p%annin& . Pro&rammin& of numeri a%%y ontro%%ed +NC, ma hines( materia% . hand%in& system +M;*,( et . . Produ tion p%annin& . Ma hinin& . Assem!%y . Maintenan e . 9ua%ity ontro% . Inspe tion

. *tora&e and retrie#a% . Computer Aided Produ tion P%annin& Produ tion p%annin& in#o%#es esta!%ishin& produ tion %e#e%s for a 'nown %en&th of time. This forms the !asis for the fo%%owin& two fun tions. Materia% re1uirement p%annin& <oadin& and s hedu%in& Computer Aided Pro ess P%annin& Pro ess p%annin& for a part in#o%#es the preparation of a p%an that out%ines the routes( operations( ma hines and too%s re1uired to produ e the omponent. *in e the pro ess is a tedious tas'( there has !een a trend to automate it. As a resu%t( a num!er systems ha#e !een de#e%oped. There are three !asi approa hes to the automated pro ess p%annin&. They are a,:ariant Approa h !, Generati#e Approa h ,A%% !ased Approa h Group Te hno%o&y Group te hno%o&y +GT, is a on ept that is urrent%y attra tin& a %ot of attention from the manufa turin& ommunity. GT offers a num!er of ways to impro#e produ ti#ity in the !at h manufa turin&. The essen e of

GT is to apita%i/e on simi%arities on re urrin& tas's. GT is( #ery simp%y( a phi%osophy to e$p%oit simi%arities and a hie#e effi ien ies &roupin& %i'e pro!%ems. Definition of GT =Group te hno%o&y is the rea%i/ation that many pro!%ems are simi%ar and that( !y &roupin& simi%ar pro!%ems( sin&%e so%ution an !e found to a set of pro!%ems( thus sa#in& time and effort> Ad#anta&es of GT A ordin& to 4ur!id&e( fo%%owin& are the ad#anta&es after introdu in& GT in manufa turin&. a. *hort throu&hput times !e ause ma hines are %osed to&ether. !. 4etter 1ua%ity !e ause &roups omp%ete parts and the ma hines are %osed to&ether under one foreman. . <ower materia% hand%in& osts !e ause ma hines are %osed to&ether under one foreman. d. 4etter a ounta!i%ity !e ause ma hines omp%ete parts. The foreman an !e made responsi!%e for osts( 1ua%ity( and omp%etion !y due date. e. Trainin& for promotion for promotion sin e GT pro#ides a %ine of su ession( !e ause a &roup is a mini?department. Group Te hno%o&y in CIM One may 1uestion whether a e%%u%ar on ept is

app%i a!%e to CIM systems. *ome studies ha#e shown that &roupin& ma hines to ma hine e%%s may %imit the manufa turin& system f%e$i!i%ity. ;owe#er( industria% app%i ations ha#e pro#en that it is #irtua%%y impossi!%e to imp%ement a %ar&e s a%e CIM su!system usin& a e%%u%ar on ept. G<O4A< *UPP<- C;AIN E#en thou&h the ountries fou&ht for !order issues( !ut there is no trade !arrier for the trade is on erned. GATT a&reements and 0TO pa#es the way for the G%o!a% *upp%y Chain in tradin&. O#era%% O!"e ti#e of G%o!a% *upp%y The o!"e ti#e of &%o!a% supp%y hain onfi&uration is in meetin& or e$ eedin& wor%dwide ustomer +interna% and5or e$terna%, e$pe tations at the %owest ost. *pe ifi O!"e ti#es and E$pe tations of G%o!a% *upp%y A hie#ement of the transformation of supp%y hains into #a%ue hains wi%% norma%%y in %ude some om!ination of the fo%%owin& o!"e ti#es and e$pe tations. . <e#era&e spend +a ross !usiness units and &eo&raphi !oundaries,. . A%i&n In enti#es for inte&ration of a ti#ities +!uyers( supp%iers( end?users, to support or&ani/ationa% &oa%s and strate&ies. . Optimi/e supp%y hain operation +no. of mem!ers( apa!i%ities( osts,.

. Redu e in#entories a ross the hain. G%o!a% Comp%e$ities If the supp%y5#a%ue hain in#o%#es sour in& in mu%tip%e ountries( additiona% onsiderations need to !e addressed. *ome of these in %ude. . @ Curren y e$ han&e and ris'. . @ Counter trade opportunities and re1uirements. . @ :aryin& %aws and "urisdi tiona% 1uestions. Cha%%en&es and 4arriers to Transformin& G%o!a% *upp%y Chains into :a%ue Chains In the #aryin& en#ironments en ountered internationa%%y( there are a num!er of ha%%en&es and !arriers in#o%#ed in !ui%din& &%o!a% supp%y hains. Many of these are rare%y on erned with the domesti supp%y hains. *ome of these in %ude. @ Un ertain po%iti a% sta!i%ity( se%f?ser#in& &o#ernments. @ <a ' of infrastru ture in some ountries +roads( port fa i%ities( trained %a!or( uti%ities( ommuni ations,. @ <a ' of riti a% mar'et mass in parti u%ar ountries. @ ;i&h transa tion osts. @ Re1uirements to use in? ountry a&ents or partners and %o a% ontent re1uirements. @ <a ' of potentia% for repeat pur hases. @ *%ower adoption of e?!usiness than in the domesti mar'et. @ No or %imited free trade /one a#ai%a!i%ity.

@ Partner5 ontra t %imitations re1uirin& !iddin& for a%% pro urement a ti#ities and a%%ian e?!ui%din&. @ ;i&h %o&isti s and transportation osts. @ Different time /ones + ommuni ation diffi u%ties,. @ )inan ia% ris's are hi&her( e.&. potentia% for war( terrorism( &o#ernment han&es. @ The nature of &%o!a% a ti#ity +may !e fra&mented and5or s attered,. @ <on&5unpredi ta!%e supp%ier %ead times. @ Prote tionism +tariffs( duties( 1uotas( inspe tions,. @ <imited num!er of 1ua%ified &%o!a% supp%iers. @ Diffi u%t to %in' &%o!a% pro"e t wor' to =run and maintain> &%o!a% a ti#ities. @ <imited a#ai%a!i%ity of trained personne% for pur hasin& or supp%y mana&ement positions inhi!itin&. ;ow to Transform G%o!a% *upp%y Chains Impro#e the 1ua%ity5 ost ratio of your supp%y hain. *tri#e for the hi&hest 1ua%ity at the %owest ost. <e#era&e #a%ue a ross the supp%y hain Understand what onstitutes #a%ue and to whom it is #a%ua!%e in your supp%y hain. Identify and e#a%uate trade?offs !etween #a%ue added and profita!i%ity. Redefine the !oundaries of !usiness Redefine the !oundaries of your !usiness in the onte$t of what pro#ides ontinuin& ompetitor and ustomer ad#anta&e

De#e%op re%ationa% ompeten e :iew re%ationships with other mem!ers of your supp%y hains as a ontinuum ran&in& from spot re%ationships to strate&i a%%ian e or o?ownership !ut re o&ni/in& that most re%ationships wi%% !e somewhere !etween these e$tremes. Mana&e at the ri&ht %e#e% Determine whi h strate&ies and a ti#ities !est add #a%ue with &%o!a% mana&ement and whi h !est add #a%ue with %o a% mana&ement De#e%op supp%y hain responsi#eness Determine how the de&ree of responsi#eness to ustomer needs su h as resupp%y time or produ t mi$ ad"ustment mat hes with ustomer re1uirements in ea h su h area. 4rin& A!out Chan&e Chan&e Mana&ement It refers to transformin& supp%y hains whi h in#o%#es a o%%atera% han&e mana&ement. )ACI<IT-( <A-OUT <OCATION AND 0ORA MEA*UREMENT INTRODUCTION The unit dea%s a!out one of the strate&i de isions in the operations mana&ement( name%y p%ant %o ation

de ision( the hara teristi s of different %ayouts are dis ussed. The different te hni1ues a#ai%a!%e to desi&n the %ayout are a%so introdu ed. 0or' measurement te hni1ue %i'e time study( wor' samp%in& and methods time measurement are e%a!orated to fi$ the standards for or&ani/ationa% a ti#ities. )ACI<IT- <OCATION )a i%ity %o ation i.e. identifyin& the !est %o ation is a strate&i de ision in operation mana&ement. This is a de ision %i'e any other strate&i de isions %i'e identifyin& the produ t( hoosin& the te hno%o&y( de idin& the apa ity et . *e%e tion of %o ation *e%e tion of the !est %o ation in#o%#es two phases. Phase B In the phase I a pre%iminary feasi!i%ity study is arried out to assess the produ tion input( pro ess te hno%o&y( infrastru tura% fa i%ities( so ia% and u%tura% onditions and %e&a% and &o#ernment onsiderations. Phase C II It there is a pro!%em in the first phase( the se ond phase may not see the %ime %i&ht. In the phase B ma ro ana%ysis is o#er( in the se ond phase the re&ion( ommunity and site se%e tion ta'e p%a e. Re&ion in %ude ountry to ountry or state?to?state within a ountry or within a state different re&ions. The fa tors to !e onsidered in the se%e tion of re&ion( ommunity and site are shown in the ta!%e.

P<ANT <OCATION *E<ECTION The se%e tion of the p%ant is hara teri/ed !y the su!"e ti#e fa tors as we%% as the o!"e ti#e fa tors. 4ut it is #ery diffi u%t to 1uantify su!"e ti#e fa tors. The p%ant %o ation e#a%uation is done !y onsiderin& !oth su!"e ti#e and o!"e ti#e fa tors throu&h a su!"e ti#e e#a%uation 'nown as Ratin& P%an Method. -ou an see in the fo%%owin& se tion( how the ratin& p%an is app%ied to hoose a p%a e( where to start a 4io te hno%o&y p%ant( in India. Cost ana%ysis method. In the pre#ious se tion( you saw how the ratin& p%an method is app%ied( to hoose the %o ation. In this se tion( you an see a method( where on%y the o!"e ti#e fa tor is onsidered( name%y the ost fa tors i.e.( to start a p%ant in a parti u%ar %o ation( !ased on the %a!our a#ai%a!i%ity and a essi!i%ity( materia% a#ai%a!i%ity and a essi!i%ity( you may ha#e different #aria!%e ost as we%% as fi$ed ost for ea h %o ation. Now !ased on the estimated fi$ed ost and #aria!%e ost( you an formu%ate for ea h %o ation( a different a tota% ost e1uation. T-PE* O) <A-OUT After se%e tin& the p%ant %o ation( !ased on the type of

produ tion system to !e adopted( the %ayout has to !e de ided. The types of %ayout are. . . . . . )i$ed produ t %ayout Produ t %ayout Group +f%e$i!%e, %ayout Pro ess %ayout )i$ed Produ t <ayout

The fi$ed produ t %ayout is de#e%oped !y %o atin& the wor'stations or produ tion enters on the fi$ed "o!. )i$ed %ayout type is used when the "o! si/e is %ar&e. <o&isti s are in#o%#ed in ensurin& that the ri&ht pro esses are !rou&ht to the produ t at the ri&ht time and at the ri&ht p%a e Ad#anta&es. B. This method is hi&h%y f%e$i!%e and any han&es in produ t desi&n and produ t mi$ an !e easi%y a ommodated. D. *in e wor' enters are independent( s hedu%in& resu%ts in a hie#in& minimum tota% produ tion time. E. The teams of personne% are responsi!%e for ontinuity of operations. F. Mo#ement of materia%s is redu ed. 2. Go! en%ar&ement ou%d !e promoted !y a%%owin& indi#idua%s or teams to perform the who%e "o!. Produ t <ayout

In this %ayout the ma hines are arran&ed a ordin& to the pro essin& se1uen e of the produ t. Materia% f%ows dire t%y from one wor'station to other wor'station. Ma hines are not shared !y the produ ts. This type of %ayout is used for hi&h #o%ume produ tion. Ad#anta&es. B. The tota% produ tion time is short. D. The materia% hand%in& is redu ed !e ause of the %o ation of the ma hines to minimi/e the distan es !etween the onse uti#e operations. Group <ayout 0hen produ tion #o%ume is not suffi ient for produ t %ayout( &roup %ayout is used. ;ere produ ts are &rouped in to %o&i a% produ t fami%ies. The &roups of pro esses are a%%ed e%%s. *o it is a%so a%%ed as e%%u%ar %ayout. Ad#anta&es. B. This supports the use of &enera% purpose e1uipments. D. This is a ompromise !etween produ t and pro ess %ayout. E. *horter tra#e% distan es and smoother f%ow %ines than pro ess %ayout. Pro ess <ayout In this type the ma hine are &rouped and the produ t passes from one &roup to other &roup !ased on the se1uen e of produ tion. The &roups of pro esses are a%%ed e%%s. The pro ess %ayout is used in the rapid han&es in the produ t mi$ or produ tion

#o%ume as we%% as when !oth produ t and &roup %ayout annot !e used. Ad#anta&es. B. *in e the ma hines are &rouped( on%y fewer ma hines are re1uiredH thus minimum in#estment is re1uired. D. 4etter uti%i/ation of ma hines ou%d !e a hie#ed. E. ;i&h de&ree of f%e$i!i%ity e$ists. F. *uper#ision ou%d !e spe ia%i/ed. 2. The wor'in& personne% find the "o! more satisfyin& and interestin& sin e there is a di#ersity of tas's. Desi&n of Pro ess <ayout To desi&n a pro ess %ayout there are some omputeri/ed te hni1ues a#ai%a!%e. CRA)T +Computeri/ed Re%ationship A%%o ation of )a i%ities Te hni1ues, CRA)T a%&orithm was ori&ina%%y de#e%oped !y Armour and 4uffa. CRA)T is more wide%y used than A<DEP and CORE<AP. It is an impro#ement a%&orithm. It starts with an intia% %ayout and impro#es the %ayout !y inter han&in& the departments pairwise so that the transportation ost is minimi/ed. The a%&orithm ontinues unti% no further inter han&es are possi!%e to redu e the transportation ost. Core%ap A%&orithm

Input data re1uirement . Re%ationship hart and %oseness ratin&. . 4ui%din& des ription is &i#en !y ma$imum %en&th to width ratio. O!"e ti#e B.Ma$imi/in& o#era%% %oseness ratin&. ;ow the software pro&rams wor's )irst he found out the %oseness ratin& !etween the departments. It has to !e p%a ed in %ayout. If there is any type se%e t the department whi h is hi&h in %oseness ratin&. If there is a&ain tie se%e t the department whi h is %ar&er in area. If the tie sti%% e$ists then se%e t any department random%y. A<DEP +Automated %ayout Pro&rammin&,. A<DEP is a onstru tion type a%&orithm .This a%&orithm uses !asi data on fa i%ities and !ui%ds a desi&n !y su essi#e%y p%a in& the departments in the %ayout. After p%a in& a%% the departments in the %ayout( a s ore is omputed .This is nothin& !ut the sum of the %oseness ratin& #a%ues of different nei&h!ourin& departments in the %ayout. This a%&orithm is repeated for a prespe ified num!er of times and the !est %ayout is se%e ted !ased on the ma$imum %ayout s ore. The !asi data re1uired for this

a%&orithm are %isted !e%ow. . . . . Tota% num!er of departments. Area of ea h department . <en&th and width of %ayout. C%oseness ratin&s of #arious pairs of departments in the form of Re%ationship

<INE 4A<ANCING This is a te hni1ue app%ied to desi&n wor'p%a e of a p%ant( whi h adopts f%ow %ine produ tion system. -ou 'now that the produ ti#e system of f%ow %ine produ tion produ es %ess #ariety and standardi/ed produ ts. *o the apa ity of the system is to !e esta!%ished first or the no. of units produ ed per day. TIME *TUD- AND 0ORA MEA*UREMENT 0or' study onsists of two ma"or phases name%y method study and wor' measurement. In an industry method study is app%ied with an o!"e ti#e of simp%ifyin& the "o! and findin& the !est method of doin& wor'. Method study pa#es the way to redu e the wor' ontent due to !ad wor'in& methods( !ad %ayout( wron& se%e tion of too%s et . 0or' measurement is app%ied with an o!"e ti#e to redu e the ineffe ti#e time and to set the standards. Usua%%y in the industry the method study is app%ied to ensure the orre t methods( pro ess et . Then( for the

!est method ? the measurement of the method is arried out. 0or' Measurement Te hni1ues There are many te hni1ues a#ai%a!%e to measure the wor'. The te hni1ues are %isted!e%ow. Time *tudy *e%e t. )irst you shou%d se%e t the "o! to !e studied. *ituations may %ead you to ondu t the time study to fi$ the time standard. Re ord. After se%e tin& the "o! you shou%d note down the surroundin& onditions %i'e wor'in& p%a e( %ayout ondition and see to that the wor'er adhere to the methods su&&ested !y the method study. E$amine. Ne$t you shou%d di#ide the "o! into different e%ements. *uppose you ha#e to fi$ time standard for the "o! whi h in#o%#es dri%%in& operation. Measure. After di#idin& the "o!s into different e%ements( the num!er of o!ser#ations to !e made on ea h e%ements is to !e determined. Ratin&. 0hi%e measurin& the time for ea h e%ement( the time study person has to ta'e note of the pa e in whi h the operator does the "o!. The a ura y of the "ud&ment towards the pa e of the operator depends upon the e$perien e and trainin& of the time study person. Ratin& is defined as the wor'ers rate of wor'in& re%ati#e

to the time study person8s on ept orrespondin& to the standard pa e. Compi%e. After o!tainin& the o!ser#ed time( ratin& for ea h e%ement Norma% time is a% u%ated. Norma% time for e%ement I o!ser#ed time for the e%ement $ ratin& fa tor A%% the norma% e%ementa% times are added to arri#e at the norma% time for the operation. -ou shou%d not onsider this time as standard time !e ause you shou%d add a%%owan es with the norma% time. 4e ause a%%owan es are to !e &i#en to ompensate for the ener&y that the operator spent whi%e doin& the "o! and a%so a%%owan es are to !e added for meetin& his 5 her persona% needs %i'e &oin& for toi%ets et . A%%owan e for these reasons is !eyond his ontro%. A%%owan es are persona% a%%owan es( fati&ue a%%owan es and de%ay a%%owan es. Persona% a%%owan es for meetin& his 5 her persona% needs( fati&ue a%%owan es are a%%owed for physi a% e$ertion. De%ay a%%owan es are due to %a ' of materia%s( random inspe tion #isits et . Now the standard time is arri#ed as fo%%ows. *tandard time I Norma% time $ BJJ 5 KBJJ ? 3 a%%owan eL 0or' samp%in&.

0or' samp%in& is another wor' measurement te hni1ue for measurin& the fo%%owin&. M To measure 7 ontro% the per enta&e of id%e time of an a ti#ity or produ ti#e resour e M To esta!%ished the standard time M To determine the performan e inde$ of the operator 5 department 5 unit 0hen do you app%y wor' samp%in& te hni1ue. M Go!s onsists of %on&er %ead time M To measure the team wor' <EARNING CUR:E In the ase of more %a!our intensi#e mass produ tion industry( most%y the %a!our do repetiti#e type of "o!( that resu%ts in more %earnin& due to e$perien e of doin& the same "o! !e ause of this( the time ta'en to produ e su!se1uent units &ets redu ed ompared to the pre#ious units. This phenomenon wi%% not %ose for %on&er period( at some point of the time this %earnin& effe t eases. After the %earnin& effe t eases( the time re1uired to produ e one unit or one !at h wi%% !e the same irrespe ti#e of the num!er of units or !at hes. The or&ani/ation has to ash in the re%e#ant ran&e period( the period in whi h the %earnin& effe t is there. Durin& the %earnin& effe t period( the standard time per unit is not onstant it #aries depends upon the 1uantity of the order you &et. *in e the %earnin& effe t has

impa t on the standard time that is the reason to study this on ept in this se tion . <earnin& Cur#e Mode%. Consider the past data of a ompany manufa turin& Air raft omponents. )or a parti u%ar omponent the data are ta'en for ten situations. App%i ation of %earnin& ur#e. As it is mentioned a%ready the redu ed standard time ou%d !e made use of estimatin& the fo%%owin&( . <earnin& ur#e on ept ou%d !e app%ied in pri in& the produ t. . This on ept ou%d !e app%ied in standard ostin&. . This is app%ied in !ud&etin& and produ tion p%annin&. . PRODUCTI:ITProdu ti#ity is the ratio !etween the output and input. This is an inde$( the output may !e sa%es and input is the re ourses uti%i/ed for &ettin& the output. E$amp%e. the output is sa%es #a%ue and the input is ost of &oods so%d. If the Produ ti#ity Inde$ is more than one( you an say that the performan e of the or&ani/ation is &ood. If it is %ess than one you an say that the or&ani/ation is not doin& we%%. Impa t of <earnin& Cur#e on the Produ ti#ity Cost of the

&oods so%d is the fun tion of %a!our( materia% and o#erhead ost !e ause of %earnin& effe t the time re1uired to produ e one unit in the re%e#ant ran&e de reases as the num!er of units produ e is more.