You are on page 1of 12

Production Management Q. 3 Compare production planning and production control. State objectives and exam ple. Ans.

Production planning and control are two important components of the production management process. Planning includes the consideration of all input variables to achieve output goals can. Production control m eans to remedial action to prevent the variation of actual output from the desired one Production planning is a pre-production activityinvolves determ ination optim um production schedule, that of sequence of operation, economic batch quantity and dispatching priorities. It also involve determination and evaluation other inputs like manpower and money. Production control is com plementary activity to the production planning which keeps track of the operations that are being performed. planning Production without production control is like a bank without a bank. Planning initiates action while control is an adjusting process, providing corrective measures for planned development. Production control regulates and stimulates the orderly how of materials in the manufacturing process from the beginning to the end. The process ofproduction planning is divided into following stages: a)Defining objectives b) Setting priorities to attain the objectives. c) Analyzing the in ternal, external and environment d) Determining attainab targets. e) Determining the inputs required for achieving the targets. le At its core, production planning represents the beating heart of any manufacturing process. Its purpose is to minimise production time and costs, efficiently organise the use of resources and maximise efficiency in the workplace. Production planning is the projected flow of production, while production control is the systematic approach to control the flow of projected production Production planning is a pre-production function aim to match the ing production capacity to the estimat d e market demand in a m ost feasible .manner. Forecast is important relation to pr duction planning. in o Objectives of PPC The ma objective of p in roduction planning and controlis to produce goods and services of the right quality, in the right qu antity, at specified. time and at right price. Other objectives o production planning and control f include:

• Effecti ness: Ensures he production of right kindof goods to ulfill thecustomer equirem ents. ve t f r • Maxim ising outputEnsures the production of maximum goods and resources with minimum input : s. • Quality contr l: Ensures that the quality of goods andservic es meet the quality specifications that o
are set durin the planning phase. g

• Minim ising throughput-time: Ensures that 'the time elaps in th conversionprocess of the ra ed e w
material to fini shed goods is minimum by r educing delays,waiting tim and idle tim e rel to the e ated

produ ction proce ss.

• Capacity Utiliation: Ensures that the capacity. such as manpower and m s achine is fully utilised. • Minim izing throughput : Ensur s that minimum tim e is t by a product to com plete its producti e aken on

• Maintaining Inventory . level Ensures tht optimum lev of stock in the ventoryis maintained. : a el in • Flexibility Ensures that flexibility is m aint in the production operations : ained . • Bette Coordinaion: Ensures that better coordination aintained betwen machine and labour r t is m e . • Capacity planning: Ensures that propr planning for the futurrequirem e e ents of the p capacity is lant

• Reduci g bottenecks: Ensures th at all the bottenecks are removed from a the stages of n l l ll
produ ction. It also enables to solve the problems related to the production at early stage or production.

• Minim i ing cost: Ensures tht the cost of produc goods or pesenting a service is m inim um s a ing r •
cost. Maximizing profit: Ensures that organisation achieves maximum profit with minimum

• Preparing production schedules: Ensures that timely production is made according to the

• Establishing routes and schedules: Ensures optimum utilisation of materials, labour and
equipments by preparing schedules for work.

• Maintaining the performance: Ensures that proper standards are maintained by comparing
the actual result with the planned result. Example: Intermittent production like in furniture industry production planning is important.. Planning of each part for production is identified together with time needed in each operation with set up times. if number of products are limited, a suitable Gantt chart is prepared for production planning and control. Master Production plan

Product A
Monthly targets Weekly Schedule

Product B

Daily Schedule

Q.1 What is meant by Quality Circles? Explain benefits of QC. Quality Circles : Quality circles are also commonly known as work improvement or quality teams, Generally, the quality circle is a small group of employees who voluntarily meet at regular times to identify, analyse and solve quality and other problems in their working environment. Quality circles can recommend and implement improvement strategies and be a useful for the generation of new ideas. Normally, members of a quality circle face and share similar problems in their daily work lives and create a programme to tap human creative. The genesis of Quality Circle was in war ravaged Japan in the l940's. Quality circles were first established in Japan in 1962. The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human being, as someone who willingly activises on his job, his wisdom, intelligence, experience.. It is based upon the human resource management considered as one of the key factors in the improvement of product quality & productivity. Quality Circle concept has three major attributes: a. Quality Circle is a form of participation management. b. Quality Circle is a human resource development technique. c. Quality Circle is a problem solving technique. Quality circles are not normally paid a share of the cost benefit of any improvements but usually a proportion of the savings made is spent on improvements to the work environment. There are different quality circle tools, namely:
• • •

The Ishikawa or fishbone diagram - which shows hierarchies of causes contributing to a problem The Pareto Chart - which analyses different causes by frequency to illustrate the vital cause, Process Mapping, Data gathering tools such as check sheets and graphical tools such as histograms, frequency diagrams, spot charts and pie charts

The structure of a Quality Circle consists of a. A steering committee: This is at the top of the structure headed by a senior executive

b. Co-ordinator: A Personnel or Administrative officer who co-ordinates and supervises c. Facilitator: A senior supervisory officer. d. Circle leader: From lowest level workers or supervisors. e. Circle members : They may be staff workers. Objectives of Quality Circles The objectives of Quality Circles are multi-faced. a) Change in Attitude. : From "I don’t care" to "I do care" b) Self Development : Bring out ‘Hidden Potential’ of people c) Development of Team Spirit d) Improved Organisational Culture e) Positive working environment f) Total involvement of people at all levels. Benefits of Quality Circles: Quality Circles solves work related problems coming in the way of achieving and sustaining excellence leading to mutual upliftment of employees as well as the organisation. It is a way of capturing the creative and innovative power that lies within the work force. There are hard and soft benefits of QC:-

1. Quality circles can improve productivity, provide better solutions to problems, improve the
quality of working life.

2. They increase employee participation and encourage trust among members and

3. They bring about a change in the attitude of employees by teaching additional skills to
employees and bringing out their latent potential. 4. They encourage a team culture and team environment; 5. They encourage the flow of new ideas 6. They · Improve customer relations and service delivery 7. They improve levels of communication 8. They Improve operational efficiency and create problem prevention attitudes 9. They develop a team spirit in the organization and reduce conflict between departments 10.They improve the motivation level of employees. 11.They providing employees with a conductive work environment. 12.Achievements through QC easily offset many financial costs 13.They foster a supportive environment which encourages workers to become involved

Quality Circles are not limited to manufacturing firms only. They are applicable for variety of organisations where there is scope for group based solution of work related problems. Quality Circles are relevant for factories, firms, schools, hospitals, universities, research institutes, banks, government offices etc. ___________________________________________________________________

Q 7. Define the term work measurement. What is importance and techniques of work measurement? Work Measurement : Work measurement is the process of establishing the time that a given task would take when performed by a qualified worker working at a defined level of performance. Work measurement is the application of techniques designed to establish the time for a qualified worker to carry out specified jobs at a defined level of performance. Work measurement is concerned with investigating, reducing and eliminating ineffective time, whatever may be the cause. It is means of measuring the time taken in the performance of an operation or series of operations in such a way that the ineffective time is shown up and can be separated out. Work measurement is used to set standard times to carry out the work, so that any ineffective time is not included later. In practice, proving existence of the ineffective time is the most difficult task. After existence is proved, nature and extent is easy to see. The basic procedure of work measurement consists of three stages ;
 

Aanalysis phase in which the job is divided into convenient, discrete Measurement phase in which the specific measurement technique is used to

components, commonly known as elements; establish the time required to complete each element of work  Synthesis phase in which the various elemental times are added, together with appropriate allowances Importance of Work Measurement: The purpose of work measurement is to reveal the nature and extent of ineffective time so that action can be taken to eliminate it; and then, to set standards of performance that are attainable. The importance of time lies in our everyday life. We need to know how long it should take to walk to the train station in the morning. We need to schedule the day's work. In the business world these standard times are needed for: i. Panning the work of a workforce,

ii. iii. iv. v. vi.

Manning jobs, to decide how many workers it would need to complete certain jobs, Scheduling the tasks allocated to people Costing the work for estimating contract prices and costing the labour content in general Calculating the efficiency or productivity of workers - and from this: Providing fair returns on possible incentive bonus payment schemes

Techniques for Work Measurement The techniques used to measure work can be classified into those that rely on direct observation of the work, and those that do not. 1. Rating : Rating is direct observation techniques. This involves the observer making an assessment of the worker's rate of working relative to the observer's concept of the rate corresponding to standard rating. This assessment is based on the factors involved in the work - such as effort, dexterity, speed of movement, and consistency. The assessment is made on a rating scale, of which there are three or four in common usage. Thus on the 0100 scale, the observer makes a judgment of the worker's rate of working as a percentage of the standard rate of working (100). 2. Time study : A work measurement technique for recording the times and rates of working for the elements of a specified job carried out under specified conditions, Analyzing the data so as to obtain the time necessary for carrying out the job at a defined level of performance 3. Activity Sampling : It is work measurement technique used to analyze the activities of employees, machines, or business operations. Activity sampling requires random observations of the amount of time spent on a given activity to be recorded over a fixed period. The results are used to predict the total time spent on each activity and to highlight areas in need of quality, efficiency, or effectiveness improvement. It is normally used for collecting information on the percentages of time spent on activities. One of the great advantages of this technique is that it enables lengthy activities or groups of activities to be studied economically and in a way that produces statistically accurate data. 4. Synthesis : Synthesis is a work measurement technique for building up the time for a job at a defined level of performance by totaling element times obtained previously from time studies on other jobs containing the elements concerned, or from synthetic data. Synthetic data is the name given to tables and formulae derived from the analysis of accumulated work measurement data.


Pre-determined motion time system: A predetermined motion time system a means of establishing current labor rates within an industry by evaluating the amount of time required to perform tasks associated with each job position. One advantage of a predetermined motion time system is attention to each step in a task. For example, the use of a predetermined motion time system may indicate that a clerical employee would perform data entry more efficiently if the computer mouse were placed on the right hand of the work space rather than the left.


Estimating : The technique of estimating is the least refined of all those available to the work measurement practitioner. It consists of an estimate of total job duration. It normally embraces the total components of the job, including work content, preparation and disposal time, any contingencies etc, all estimated in one gross amount.


Analytical Estimating : Analytical estimating is a structured work measurement technique in which a task is analysed into its basic component operations or elements. Standard times are applied to these elements. If standards times are not available, they are estimated based on experience of the work under consideration. The estimating is carried out by a skilled and experienced worker. Since the technique is normally used for assessing workloads over a reasonably long planning period, errors in individual tasks will also cancel each other out.

8. 9. 10.

Category estimation : It involves using statistics to develop a general idea of how long a particular type of job will take. Comparative estimation : It involves the creation of several different time-ranges for a certain time of job, from which a qualified professional will choose the one that fits the best. Work Sampling: Work sampling involves a qualified analyst observing a worker at random times, and for random intervals. From these observations, the analyst discerns how much time the worker puts into a specific task. This method is used to figure out how a worker divides time in work that does not involve a lot of repetition ________________________________________________________________________ ____ Q.2 What do you mean by Materials Management? State the various elements of Materials Management. Ans. Materials management refers to the location and movement of the physical items or products. There are three main processes associated with materials management: spare parts, quality control, and inventory management. Materials management is important in large manufacturing

and distribution environments, where there are multiple parts, locations, and significant money invested in these items. Materials management is planning and control of the functions supporting the complete flow of materials and the associated flow of information. These functions include (1) identification, (2) cataloging, (3) standardization, (4) need determination, (5) scheduling, (6) procurement, (7) inspection, (8) quality control, (9) packaging, (10) storage, (11) inventory control, (12) distribution, and (13) disposal. Materials management and inventory control can help reduce manufacturing or production costs. The materials management will result in the following advantages:

a. Better accountability. b. Better coordination. c. Better performance.
Materials management includes the following modules:1 Materials Planning Sales forecasting and aggregate planning are the basic inputs for materials planning. The different tasks under planning are:

a. Estimating the individual requirements of parts. b. Preparing materials budget.
c. Forecasting the levels of inventories. d. Scheduling the orders and

e. Monitoring the performance in relation to production and sales.
2 Inventory Control This includes the following:

a. b. c. d.

ABC analysis. Fixing economical order quantity. Lead time analysis. Setting safety stock and reorder level.

3 Purchase Management The tasks under purchasing are:

a. b.

Evaluating and rating suppliers. Selection of suppliers.

c. d.

Finalization of terms of purchase. Placement of purchase orders. Follow-up. Approval of payments to suppliers.


4 Stores Management The different tasks under stores are:

a. b. c. d. e. f. g.

Physical control of materials. Preservation of stores. Minimization of obsolescence and damage through handling. Disposal and efficient handling. Maintenance of stores records. Proper location and stocking of materials. Reconciling the materials with book figures.


Q.10 Write short notes on any three Q.10 (6) PERT Network The Program Evaluation and Review Technique (PERT), is a model for project management designed to analyze and represent the tasks involved in completing a given project. It is commonly used in conjunction with the critical path method or CPM. PERT is a method to analyze the involved tasks in completing a given project, especially the time needed to complete each task, and identifying the minimum time needed to complete the total project. PERT was developed primarily to simplify the planning and scheduling of large and complex projects PERT network diagram display information as:-: 1. The activity name 2. The normal duration time 3. The early start time (ES) 4. The early finish time (EF) 5. The late start time (LS) 6. The late finish time (LF)

7. The slack The advantages of PERT Charts is we are able to visually document complex projects and the disadvantages is that PERT charts can be quite complicated. ----------------------------------------------------------------------------------------Q.10 (2) Operations Research Operational Research is the use of advanced analytical techniques to improve decision making. Operations research encompasses a wide range of problem-solving techniques and methods applied in the pursuit of improved decision-making and efficiency. Operations research is defined as a scientific method of providing executive departments with a quantitative basis for decisions regarding the operations under their control. Need for Operational Research Because it makes sense to make the best use of available resources. Today’s global markets and instant communications mean that customers expect high-quality products and services when they need them, where they need them. Organizations, whether public or private, need to provide these products and services as effectively and efficiently as possible. This requires careful planning and analysis. Good OR usually helps in modelling, analysis of options Uses of Operational Research
• • • • • •

Scheduling: For example, scheduling of orders in a factory and of operating theatres in a hospital. Facility planning: For example, computer simulations of airports for the rapid and safe processing of travellers, Planning and forecasting: For example identifying possible future developments in telecommunications Credit scoring: For example, deciding which customers offer the best prospects for credit companies. Marketing: For example, evaluating the value of sale promotions, developing customer profiles and computing the life-time value of a customer. Defence: For example, finding ways to deploy troops rapidly.

Some methods and techniques in Operational Research
• • • •

Computer simulation: Allowing to try out approaches and test ideas for improvement. Optimisation: Narrowing our choices to the very best Probability and statistics: Helping measure risk, Problem structuring: Helpful when complex decisions are needed in situations with many stakeholders and competing interests. ------------------------------------------------------------------------------------------

Q.10 (1) SWOT Analysis SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project. SWOT is used to evaluate the strengths, weaknesses, opportunities, and threats to a project. It involves specifying the objective of the project and identifying the internal and external factors that are favourable and unfavourable to achieving that objective. The strengths and weaknesses usually arise from within an organisation, and the opportunities and threats from external sources. The SWOT analysis is an important part of the project planning process:
A. Strengths: attributes of the organisation that help achieve the project objective. B. Weaknesses: attributes of the organisation that stop achievement of the project

C. Opportunities: external conditions that help achieve the project objective. D. Threats: external conditions that could damage the project.

Advantages of SWOT
a. Simple and only costs time to do. b. Generates new ideas to help take advantage of an organisation's strengths and defends

against threats.

Awareness of political and environmental threats allows an organisation to have response plans prepared.

Disadvantages of SWOT
a. May tend to persuade organisations to compile lists rather than think about what is

actually important in achieving objectives.
b. Presents lists uncritically and without clear prioritisation so that, for example, weak

opportunities may appear to balance strong threats.

Usually a simple list and not critically presented.