introduction Q. 1. What is Industrial Management? or : Define Engineering Management and Industrial Engineering * ‘Ans. Industrial Management consist of two components: ‘+ Industrial Engineering + Engineering Management . 1. Industrial Engineering: ‘* _ Itisa branch ofengineering, dealing with -unoptimisation of coiiplex processor systems. ‘+ Ttisconcerned with the development, implementation and evaluation of integrated eystem ‘of people, money, knowledge, information, equipment, energy, materials, analysis and synthesis. * According to ATIE, (American Institute of Industrial Engineering) it can be taken as collectively the specialised knowledge, skillin Mathematies, physical and social science together wath the principles and methods of engineering design to specify, predict and evaluate the results. Engineering Management + Ibis the composition of art sind science of planning, organising, allocating resources, dirceting and collecting activities which have a logical component. ‘+ It identifies a management speciality and also specifies specific activities which are {integral to the practice of various engineering and scientific disciplines. 8, How Engineering Management differ from other areas: 1. Engineering Management differs from industrial engineering in the fact that it focus on people problems rather than on the system design, 2. On Management side it differs from general management in its requirement that the practioners be competent in some technical field. Q. 2. How engineers proved to be effective as compared to general management people Explain need of engineers in management Ans. - ‘+ Engineering managers aré requiired for planning in High Technology enterprises.For any industry, planning is necossary. Planning requires recognising and resolvin the uncertainities which determine whether the desired product ie feasible or not. An} these issues requires technical knowledge. In staffing a technically based enterprise, an engineer's manager can best evaluate capability of technical personal who applied for joks and ean be better in performance ‘They can easily understand the nature of work. ‘They motivate technical specialists by providing guidance and are able to direct. easily. . Q. 8. Descrihe scope of Engineering Management with the help of suitable diagram| Ans, Skills required for a good industrial management are: + Ughing | Noise and vicaio| + Fapue + Ventations Q. 4. What are the skills required for a good industrial manager? Leadership: 1 Clear objectives ‘Motivating people Building Multidisplinary teams Managing unstrustured work environment, Gaining Top Management support and comibitment2 Effective Communicatios + Clear understanding of professional needs. ‘+ Managing conflicts . . ‘+ Providing assistance in problem solving + Building priority images + Maintaining credibility ‘+ Creatingpersonal involvement atall levels 8, Technical Skills: «© They should be sound with technical skills + Communicating effectively with technical people. ‘+ Understanding clearly technology & its trends, + Understand available engineering tools, + Understand the market and product applications. + Understand business and human goals. Q.5. What are the challenges in managing engineering and Technology ? or Explain Major Challenges in Industrial Management . Major challenges in industrial management are: 1. Changing Technology: This is the biggest challenge as managere have toeffectively utilize the existing technology and aleo required to be updated with the advance technology. Impaat aras of changing technology include forecasting, flexible planning, risks, market success, opportunities and profits. ited Resources: Managers are faced with factors euch as tight budjets, resource sharing. us the impact areas of limited resources include priorities, conflict, creativity, planning and pojwer struggles. jexity in task: Impact areas include ckill requirement, multifunctional direction, >, organizatinal decign, risks and creativity. workk tional team building: A good engg. teams requires @ wide epectrum of managtment skills toidentify, commit and integrate numerous people and task groups from support organizations into an effective single management unit, So impact areas are motivation, leadership and organsiation design.6. Tight and date driven schedules: Engg. managers must find alternate solutions for technical probleme without sacrificing economy, perform safety and quality of their creations} 6. Competition for Resouces: Engineers are facing intense competition because of factors ike complex organizational resources which require Engineer Managers to conduct skill ‘planning and resource negotiations. Therefore important areas are planning, top managem: ‘control, conflict, commitment. 7, Rewards for motivation: Increment in salary, bonuses and promotion these are the reward! provided. Thus the impact areas of limited rewards are turnover, leadership and motivatio 8., For organizing a new engineering department, a rnanaget needs to define: ‘+ The missions clear. Itincludes technical objectives, global business objectives, timi and responsibility. : + Type of tasks and work that is to be carried by the department. + The functional capabilities that the new department should include, ‘+ Main functional unite of the department, along with its reporting structure. * Organizational plan in etep by step fashion: + dob descriptions for individual. + Factors euch as the specific reporting relations, controls and resonsibilities that make the department operational. Q.6. Explain the term productivity Ans, Productivity: + Productivity ia an attitude of mind. It is @ mentality of progress, of the cons! improvement of that which exists. ‘+ tis the constant adoptation of economic and social life to changing conditions, itis continual effort to apply new techniques and methods, + Productivity is defined as the ratio of output to input of @ productive system, Productivity = Labour utilisation x Labour efficiency =Standard hours Available shift-hours> Available shift hours Actual hours: (Direct laour hours) - = Standard hours Actual hours worked| Efficiency, Effectiveness and Productivity of the production system Proper.use of sysiem How well input gets (system effectiveness) converted into output (procvettvty of system) | i | | | Cadi material quaity | [Organisation proauctmix] [Product quaity sence rit aval management level of qualty customer delight labpur quality enefoy technology ultzation of |[—"] aw coet high production [plant capacity machine, plant uiizatin] | better resource wistion f ‘Optimum uses of input Progr use ofinpuis so | [Organisation proguet mix resources Ih beter outputs mmanagementievel | ~ " adjieved + Qualiy | 4 | technology uizaton of | = minceet machine, plant utization Efficiency ~[eteatveness Productivity Q 7. Distinguish betwe'en productivity and Profitability. AneTne basic productivity ratio: Output Input | Productivity Can ile used to almost any human effort. As 9 measure of production efficiency, the ratio -aonlf takes the form of output/ manhour, operative hour per unit of production, added value + unit oFlabour cost, et. The input is quantified in term of money, the total of the money spent toward wpgee, material and machine that may be used. The output in case of more than one product edn be obtained by the following relationship. Bquivplent output tput of x+y Average marginalcostofy , Average marginal cost of z PUrOt®*Y ‘Average marginatcostofx | Average marginal cost of x‘+ Anincrease in productivity ocour when the ratio of output to input rise from one period to the next. An increase by employing more resource along with decrased productivity, Profitability may be defined as follow: Revenue — Cost Profitability = ar ‘The profitability can be increased by reducing cost and that would aleo increase productivity. ‘+ The profitability can also be manipulated by increasing price. But this may not increase productivity since it depend only on costs, + A decrease in the price of the product may lead to decreasing profitability even though productivity may be rising. * Some example of productivity measure for unit or individual activities ete. Sales OP" SiesPeople (iy P = Aexwuntrecsivable *creditemployees say p = Eginceringdrawing oP Desiguer (yy P = ——Totalploy _ Personneldepartment pay Q. 8. What are various factors effecting productivity? Ans, The factors which right affect productivity are summarised as follows. The proper mix ‘ofthese factor must be selected for any particular productivity improvement program. + External Factors: These factor include government regulation, competitor and customer demand. These factor may affect both the volume of the output and the availability of scarce input. : + Nature of Product: The R and Dof the organization can develop new product technologies \which improve productivity. But too much innovation may slow down the process of innovation and lead to productivity decline. . Product diversity may lead to greater productivity through increased sales and economic of scale, But product diversity may reduce productivity too by not focusing on. ‘the process. * Process: The process design can also be used to improve productivity. These improvement {actors include process flow. automation, layout and selection of process type. Within a given process, there are many ways to organise the flow of information, material and customer. ‘These flow can be improved by better layout on by process flow analysis, which results in increase in productivity,+ Management of Capacity and Inventory : Often capacity is a factor which contributes, tadverse productivity ratio. Capacity can never be matched exactly to demand, but careful city planning can reduce both excess capacity and bottleneck due to insufficient capacity. Iqventory can neither be a bottleneck ona help to an organization productivity. + Management of workforce - The managementof human resources in operation should be ed a8 an integrated activity beginning with the recruitment and selection of workers, vation, reward for performance, training and supervision. The recruitment, selection and pihcementof workers determine the raw material of human resources available, These resource be made produétive through proper training within a given organizational contest. rentlate between production and productivity ? ‘The term productivity should not be used ae an alternative term to Production. The term |vty is used in the context of efficient utilization of input resources in the form of value or services, Whereas, the term productionie related to the measure of output produced Prodi Total Input Cost | Physical Output | Average Marginal Cost x 9,500 5000 unit 190 y| 4,200 10,000 units 0.42 Z| 2,700 5000 unit 0a Caldulate: (a) aggregate level of output () level of productivity Solution. (a) Aggregate level of output Equipment value of the leading product X ‘Output = owecat+[oura ay « CHE |, oF ue 2 AMC of “AMCof X = 042 254] S + [20.000 $2 | + s000 $34] =a.n48 () Lavel ofproductivity = Ageregate out put of product X.Y and Z _ 8743955 ‘Sum of input cost 16,40Q. 11. Explain types of production system: ‘Ans. On the basis of material flow characteristics, production aystem can be grouped into the following categories. (i) Mass Production or flow line production system: Mass production is justified only ‘when production quantities are large than product variety. The ideal situation for mass production ‘would be when large volumes of one produet are to be produced continuously for an extended period oftime. Characteristics: Advantages: . 1. Asmooth flow of material from one workstation to the next in a logical sequence. 2, Since the work for 1 process is fed directly into the next, emall in processes inventories result. » 8. Total production time por unit is short. . 4, Material handling is minimised because work stations are located eo as toreduce the distance ‘between consecutive operations, 5, Simple production, planning and control system are possible 6. Less space is required by work in transmit & for temporary storage. Disadvantages 1. Abreakdown of one machine may lead toa complete stoppage of the sequence of other jobs. Hence, maintainance & repair are challenging jobs, 2, Since the product dictates the layout, changes in product design may requite major changes inthe layout. This is often expressed by saying that assembly lines are inflexible. 8, The pace of production is determined by the “slowest” “bottleneck” machines. 4, Supervision is general rather than specific, as the supervisor ofa line ia looking after diverse machines on the line. 5. Generally bigh investments are required owing to the specialised nature of the machines & their possible duplication in the line. Gil) Batch Production syatent: Batch production system exist where in lots or batches as opposed to continous production, This system is justified when the rate of ‘production exceeds the rate of demand determination of batch sizes & eequencing or echeduling of batches in multiple product situations are the key decisions in batch production. Two confliciting costs are involed. 1. Cost of sot up 2. Inventory carrying cost Batch production is distinguished from the job shop. In ob production a stream of orders hav tobe processed on cominon facilities production centres, each job having ite own epecificationa and requirements in termsof production resources, Advantages: 1. Better utilisation of mechine is possible; fewer machinoe are required. A high degree of flexibility exists vis-a-vis equipment or manpower allocation for specific take, 3. Low investnient in machines is needed. 4. The job satisfaction for the operator is greater owing to the diversity of jobs handled.otal production time is usually longer. - pace and Capital are tied-up by work in progress. ge amounts of in-process inventory result mt depertment Because ofthe variety tacks ‘the job shop becomes a complex queuing systen}. Planning for the job shop essentially involvestleciding the order or priority for jobs waiting to be pfocessed at each machine in order to achieve the desired objectives. Jop shop production differs from batch production in that the latter caters to 2 predictable variet] of jobs whereas both the nature & demand are unpredictable in the former. Chardeteristics: ‘Complicated & unsystematic material flow paterns Lorgé:in-process inventories Large waiting time for jobs Large completion times for jobs Unpredictable problems owing to a large variety of tasks at is productivity index? Name the types of productivity index. Ais. Productivity index is defined as the ratio between the industrial production the index of persone in employment. a i i 5 a