UNIT 1 - PRODUCTION MANAGEMENT

FREQUENTLY ASKED QUESTIONS

What is Estimating?
Involves deciding the quantity of products to be produced and cost involved in it on the basis of
sales forecast. Estimating manpower, machine capacity and materials required (bill of materials
is the basis) to meet the planned production targets.

What is Routing?
This is the process of determining the sequence of operations to be performed in the production
process. Routing determines what work must be done, where and how?
Routing information is provided by product or process engineering function and it is useful to
prepare machine loading charts and schedules.
Example:

What is Scheduling?
It Involves fixing priorities for each job and determining the starting time and finishing time for
each operation, the starting dates and finishing dates for each part, sub assembly and final
assembly.
Scheduling lays down a time table for production, indicating the total time required for the
manufacture of a product and also the time required for carrying out the operation for each part
on each machine or equipment.
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Example: Schedule chart

What is Loading ?
Facility loading means loading of work centre and deciding, which jobs to be assigned to which
work centre or machine? Loading is the process of converting operation schedules into practice.
Machine loading is the process of assignment specific jobs to machines, men or work centers
based on relative priorities and capacity utilization.
Example of machine loading chart is Gantt chart

What is Dispatching?
It is defined as setting production activities in motion through the release of orders (work order,
shop order) and instructions in accordance with the previously planned time schedules or
routings. It also provides a means for comparing actual progress with planned production
progress.
What is Expediting?

It ensures that, the work is carried out as per the plan and delivery schedules are met. It
includes activities such as status reporting, attending to bottlenecks in production and removing
the same, controlling variations or deviations from planned performance levels, following up and
monitoring progress of work through all stages of modifying the production plans and re-plan if
necessary.
What is Inspection
To achieve the quality standards set by product design, every product coming out of the work
center is tested for quality in production.
Example:
Inspection The Perfect Buns: Digital Imaging System On Production Line Catches Bad Sandwich
Buns

What is Evaluation?
The objective of evaluation is to improve performance. Performance of machines, processes
and labour is evaluated to improve the same.
What are types of productivity?
Capital Productivity
Capital involves resources, such as, money deployed in plant, machinery, buildings, distribution
system and also working capital.
To maximize the utilization of the funds allotted towards capital, strategies such as, adapting
new technologies, outsourcing, balancing of workstations, methods analysis, rationalization of
packaging methods and quality circles need to be followed.
Labour Productivity
Labour productivity is the amount of goods and services that a labourer produces in a given
amount of time. It is measured using Motion Study and work measurement methods.
Personal Productivity
Personal does not involve those who do work on the machine, but those, who facilitate the
operations, who co-ordinate between various operations of identifying the jobs that have to be

done, check the setups, verify allocation of machines and calibration of inspection equipments
etc.
The productivity of these personal cannot be directly measured. Their productivity is indirectly
measured in terms of the productivity of the functions and workforce they are aligned.

What are the different ways of improving Productivity?

Machine:
Manual labor be replaced by machines
Reliable machines
Automation
Management:
Motivated workforce
Better planning and coordinations
Effective control of system

Process:
Computerization of system
Use of Management Information System (MIS)
Improvement in scheduling
Better material flow
Fast and accurate retrieval of parts
Work Design:
Improve job-design
Better work method
On-job training
Work Environment:
Better lighting and illumination
Better ventilation
Safe work-place
Total Quality Management (TQM)
Program:
Quality circle
Suggestion scheme
Incentive schemes
Revise pay or policy

Technology:
Acquire new technology such as electro-chemical machining (ECM), etc.
Acquire automation in assembly, for example, surface mounting technology (SMT) for
printed circuit board assembly unit.
Acquire computer controlled machines, such as CNC or DNC.
Use automated guided vehicle (AGV) for material transportation.
Manufacturing strategy:
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 Change the manufacturing system from fictional to cellular layout, if it is a batch

production unit.
Adopt stock-less production strategy and just-In-Time framework in the production unit.
Keep work-place clean and environment friendly (also termed as green-production
system).
Go for total change in the process/product or strategy if the system is not working
properly (also know as business process re-engineering or BPR).
External Environment:
Better political stability.
Boosting economy and purchasing capacity of buyers.
Globalization and open market economy.

What are Quality Circles?

Definition:
Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet
together on a regular basis to identify improvements in their respective work areas using proven
techniques for analysing and solving work related problems coming in the way of achieving and
sustaining excellence leading to mutual up-liftment of employees as well as the organisation. It
is "a way of capturing the creative and innovative power that lies within the work force".
Concept:
The concept of Quality Circle is based upon the human resource management, which is
considered as one of the key factors in the improvement of product quality & productivity.
The major attributes of Quality Circle are:
Quality Circle is a form of participation management.
Quality Circle is a human resource development technique.
Quality Circle is a problem solving technique.
Objective:
The objectives of Quality Circles are
Bring in Positive Attitude From I dont want to be a part of to I do want to be a part
of.
Self Development Imbibe additional skills
Team Culture From I to WE.
Improved Organisational Culture - Positive working environment, Total involvement of
people at all levels, higher motivational level.
Structure:
The structure of a Quality Circle consists of the following elements:
1. A Steering Committee - This is at the top of the structure. It is headed by a senior
executive and includes representatives from the top management personnel and human

2.
3.
4.
5.

resources development people. It establishes policy, plans and directs the program and
meets usually once in a month.
Co-ordinator: Co-ordinator may be a Personnel or Administrative officer who coordinates and supervises the work of the facilitators and administers the programme.
Facilitator: Facilitator may be a senior supervisory officer. He /She co-ordiates the
works of several quality circles through the Circle leaders.
Circle leader: Leaders may be from lowest level workers or Supervisors. A Circle leader
organises and conducts Circle activities.
Circle members: They may be staff workers. Without circle members the porgramme
cannot exist. They are the lifeblood of quality circles

Methodology:
The methodology of quality circles involves a set of sequential steps as mentioned below:

Problem identification: Identify problems.

Problem selection: Depending on priority select the highest priority problem.
Problem Analysis : Problem is analysed by basic problem solving methods.
Obtain alternative solutions: Identify and evaluate causes and generate number of
possible alternative solutions.
Select the most appropriate solution: Discuss and evaluate the alternative solutions
by comparison in terms of investment and return from the investment. This enables to
select the most appropriate solution.
Prepare plan of action: Prepare plan of action for converting the solution into reality by
using 5W1H method, that is, "who, what, when, where, why and how" of solving
problems.
Present Solution: Present solution to management for approval.
Implementation of solution: The management evaluates the recommended solution.
Then it is tested and if successful, implemented on a full scale.

Techniques used by QC:

The following techniques are most commonly used to analyse and solve work related problems.

Brain storming
Pareto Diagrams
Cause & Effect Analysis
Data Collection
Data Analysis

The tools used for data analysis are:

Tables
Bar Charts
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 Histograms
Scattergrams
Benefits & Limitations of QC:
A variety of benefits have been attributed to Quality Circles, including higher quality, improved
productivity, greater upward flow of information, broader improved worker attitudes, job
enrichment, and greater teamwork.
Limitations include lack of management commitment and support, resistance by middle
management, resentment by non participants, inadequate training, lack of clear objectives and
failure to get solutions implemented.