INDUSTRIAL MANAGEMENT

NAME:
ROLL:
NO:
DEPARTMENT: CST
SEMESTER: 6TH
YEAR: 2018-2019
Experiment
No. Date Experiment Title Signature

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1. Describe Material Management Structure in a industry and the functions of the each
parts.
Ans:- The need for materials management was first felt in manufacturing undertakings. The servicing
organizations also started feeling the need for this control. And now even non-trading organizations
like hospitals, universities etc. have realized the importance of materials management. Every
organization uses a number of materials. It is necessary that these materials are properly purchased,
stored and used
Functions of Material Management:
Material management covers all aspects of material costs, supply and utilization. The functional areas involved in
material management usually include purchasing, production control, shipping, receiving and stores.

The following functions are assigned for material management:

1. Production and Material Control:

Production manager prepares schedules of production to be carried in future. The requirements of parts and
materials are determined as per production schedules. Production schedules are prepared on the basis of orders
received or anticipated demand for goods. It is ensured that every type or part of material is made available so
that production is carried on smoothly.

2. Purchasing:
Purchasing department is authorized to make buying arrangements on the basis of requisitions issued by other
departments. This department keeps contracts with suppliers and collects quotations etc. at regular intervals.
The effort by this department is to purchase proper quality goods at reasonable prices. Purchasing is a
managerial activity that goes beyond the simple act of buying and includes the planning and policy activities
covering a wide range of related and complementary activities.

3. Non-Production Stores:
Non-production materials like office supplies, perishable tools and maintenance, repair and operating supplies
are maintained as per the needs of the business. These stores may not be required daily but their availability in
stores is essential. The non-availability of such stores may lead to stoppage of work.

4. Transportation:
The transporting of materials from suppliers is an important function of materials management. The traffic
department is responsible for arranging transportation service. The vehicles may be purchased for the business
or these may be chartered from outside. It all depends upon the quantity and frequency of buying materials. The
purpose is to arrange cheap and quick transport facilities for incoming materials.

5. Materials Handling:
It is concerned with the movement of materials within a manufacturing establishment and the cost of handling
materials is kept under control. It is also seen that there are no wastages or losses of materials during their
movement. Special equipment’s may be acquired for material handling.

6. Receiving:
The receiving department is responsible for the unloading of materials, counting the units, determining their
quality and sending them to stores etc. The purchasing department is also informed about the receipt of various
materials.

2. What is TQM? Define TQM in a industry.

Ans :- Total Quality Management is an extensive and structured organization management approach that
focuses on continuous quality improvement of products and services by using continuous feedback. Joseph
Juran was one of the founders of total quality management just like William E. Deming.
Focus on customer

When using total quality management it is of crucial importance to remember that only customers determine
the level of quality. Whatever efforts are made with respect to training employees or improving processes, only
customers determine, for example through evaluation or satisfaction measurement, whether your efforts have
contributed to the continuous improvement of product quality and services.

Employee involvement

Employees are an organization’s internal customers. Employee involvement in the development of products or
services of an organization largely determines the quality of these products or services. Ensure that you have
created a culture in which employees feel they are involved with the organization and its products and services.

Process centered

Process thinking and process handling are a fundamental part of total quality management. Processes are the
guiding principle and people support these processes based on basis objectives that are linked to the mission,
vision and strategy.

Integrated system

Following principle Process centered, it is important to have an integrated organization system that can be
modeled for example ISO 9000 or a company quality system for the understanding and handling of the quality of
the products or services of an organization.

Strategic and systematic approach

A strategic plan must embrace the integration and quality development and the development or services of an
organization.

Decision-making based on facts

Decision-making within the organization must only be based on facts and not on opinions (emotions and
personal interests). Data should support this decision-making process.

Communication

A communication strategy must be formulated in such a way that it is in line with the mission, vision and
objectives of the organization. This strategy comprises the stakeholders, the level within the organization, the
communications channels, the measurability of effectiveness, timeliness, etc.

Continuous improvement

By using the right measuring tools and innovative and creative thinking, continuous improvement proposals will
be initiated and implemented so that the organization can develop into a higher level of quality.
3. What is Line Management? Describe the difference between Line & Line-Staffing
management.
Ans :- Line management refers to the management of employees who are directly involved in the production
or delivery of products, goods and/or services. As the interface between an organization and its front-
line workforce, line management represents the lowest level of management within an
organizational hierarchy (as distinct from top/executive/senior management and middle management).

BASIS FOR
LINE ORGANIZATION LINE AND STAFF ORGANIZATION
COMPARISON

Meaning The organization in which the The organization structure, in which

authority and responsibility moves specialist are added to the line
downward, and accountability flows managers to provide guidance and
upward, is called line organization. support, is called line and staff
organization.

Authority Command Command and Advise

Discipline Strict Loose

Executives Line executives are generalist. Line executives are generalist and staff
executives are specialist.

Degree of Absolute centralization Partly centralized and partly

centralization decentralized

Appropriate for Small organization with less number Large organization with a number of
of employees. employees.

4. Discuss Scientific Management of Taylor’s Management.

Ans: - Principles of Scientific Management:
The fundamental principles, which would support the concept and practice of scientific management, are the
following:
(i) Science, not the rule of the thumb.

(ii) Harmony, not discord.

(iii) Co-operation, not individualism.

(iv) Maximum production, in place of restricted production.

(v) Development of each person to the greatest of his capabilities.

(vi) A more equal division of responsibility between management and workers.

(vii) Mental revolution on the part of management and workers.

Following is a brief comment on each of the above principles of scientific management.

(i) Science, not the rule of thumb:

The basic principle of scientific management is the adoption of a scientific approach to managerial decision
making; and a complete discard of all unscientific approaches, hitherto practiced by managements.
(ii) Harmony, not discord:
Harmony refers to the unity of action; while discord refers to differences in approach.

(iii) Co-operation, not individualism:

Co-operation refers to working, on the part of people, towards the attainment of group objectives; while
regarding their individual objectives-as subordinate to the general interest.

(iv) Maximum production, in place of restricted production:

In Taylor’s view the most dangerous evil of the industrial system was a deliberate restriction of output. As a
means of promoting the prosperity of workers, management and society, this principle of scientific management
emphasizes on maximizing production and not deliberately restricting it.

(v) Development of each person to the greatest of his capabilities:

Management must endeavor to develop people to the greatest of their capabilities to ensure maximum
prosperity for both-employees and employers.

(vi) A more equal division of responsibility between management and workers:

The principle of scientific management recommends a separation of planning from execution. According to this
principle, management must be concerned with the planning of work; and workers with the execution of plans.

(vii) Mental revolution on the part of management and workers:

According to Taylor, scientific management, in its essence, involves a complete mental revolution on the part of
both sides to industry viz. workers and management (representing employers).

In fact, this principle of scientific management is the most fundamental one ensuring success of it. It is like the
foundation on which the building of scientific management must be erected.

5. Function of a “Supervisor” in a Industrial sector.

Ans: - Supervisor has got an important role to play in factory management. Supervision means overseeing the
subordinates at work at the factory level. The supervisor is a part of the management team and he holds the
designation of first line managers. He is a person who has to perform many functions which helps in achieving
productivity. Therefore, supervisor can be called as the only manager who has an important role at execution
level. There are certain philosophers who call supervisors as workers. There are yet some more philosophers
who call them as managers. But actually he should be called as a manager or operative manager. His primary job
is to manage the workers at operative level of management.

A supervisor plays multiplinary role at one time like -

1. As a Planner - A supervisor has to plan the daily work schedules in the factory. At the same time he has
to divide the work to various workers according to their abilities.
2. As a Manager - It is righty said that a supervisor is a part of the management team of an enterprise. He
is, in fact, an operative manager.
3. As a Guide and Leader - A factory supervisor leads the workers by guiding them the way of perform their
daily tasks. In fact, he plays a role of an inspirer by telling them.
4. As a Mediator - A Supervisor is called a linking pin between management and workers. He is the
spokesperson of management as well as worker.
5. As an Inspector - An important role of supervisor is to enforce discipline in the factory. For this, the work
includes checking progress of work against the time schedule, recording the work performances at
regular intervals and reporting the deviations if any from those. He can also frame rules and regulations
which have to be followed by workers during their work.
6. As a Counselor - A supervisor plays the role of a counselor to the worker’s problem. He has to perform
this role in order to build good relations and co-operation from workers. This can be done not only by
listening to the grievances but also handling the grievances and satisfying the workers.

Therefore, we can say that effective and efficient supervision helps in serving better work performance, building
good human relations, creating a congenial and co-operative environment. This all helps in increasing
productivity.

6. ABC Analysis or Always Better Control Analysis:

ABC Analysis a matter of common experience that in all organizations some items of inventories have a
much higher annual usage (i.e. the value of total annual consumption of those items) than others.
Therefore more attention should be paid to such items as compared to those whose annual
consumption value is very low. It will not be wise to pay equal attention to all type of items of the
inventory.

It is ABC analysis that separates inventories into A, B and C items according to their annual
consumption value, so that we may pay greater attention to those items that fall in category A (which
have got the maximum total annual consumption) and lesser to category B items and still lesser to
category C items.

Thus ABC analysis gives rise to selective inventory control in which maximum attention can be given to
A items, a fair amount to B items while the attention necessary for C items can be reduced to routine
procedure. It is found that in most organizations about 10 % (or even less) items of the about 20 % of
the items of inventory account for 15 to 25 % of total annual consumption cost, while the remaining 70
% of the items of inventory cover only 5 to 10 % of that cost.

The first category items (which are about 10% of the total items of the inventory) which though less in
number but are of high annual consumption value are called A items. The medium consumption value
items (which are about 20 % of the total items of inventory) are B items while the large number of items
(which are about 70 % of the total number of items of inventory) whose annual consumption value is
very low are C items.
 7. VED Analysis or Vital Essential Desirable Analysis:
VED analysis is specially applied in the case of spare parts inventory, medical stores, and the like.
In VED analysis, there are three classes of inventories, such as Vital, Essential and Desirable.

‘Vital’ items are those, the absence of which even for a very short period is likely to stop production
or work, i.e. life saving drugs.

‘Essential’ items are those the absence of which can not be tolerated for more than a day or so
because without such items temporary losses of production or dislocation of production occurs.

‘Desirable’ items are those which are necessary but do not cause any immediate effect on
production.

Thus, with the help of VED analysis, we can categorize all the items of the inventory into three
categories, viz. , vital essential and desirable and maintain our inventory in the light of the same. It
adds to our confidence because we know that vital and essential items are there in our stock and
production is not likely to be affected adversely.

8. What are the advantages and disadvantages of Globalisation with

respect to India?

What is Globalization?

The worldwide movement toward economic, financial, trade and communications integration.
Globalization (or globalisation) is the process of international integration arising from the
interchange of world views, products, ideas and other aspects of culture. Advances in
transportation and telecommunications infrastructure, including the rise of the telegraph and its
posterity the Internet, are major factors in globalization, generating further interdependence of
economic and cultural activities. In 1991, Indian Economy was thrown open to Liberalisation,
Privatization and Globalisation. It can be termed as turning point of Indian Economy.

Advantages:

• Greater employment opportunities for people.

• Availability of greater variety of goods and services to the consumers.

• More competitive price to the competitors.

• Ability of companies to achieve lower costs.

• Access to bigger markets to business firms.

• Faster and wider spread of new technologies across the world.

Globalization has some disadvantages also:

• Unrestricted globalization hampered the development of less developed countries like India.

• Low cost products of other countries are becoming threat to Indian producers.

• Multinationals are making Indian people habitual of using their products.

• Smaller firms are lacking the resources to compete internationally and therefore may be forced out of
business.
• Countries like India become increasingly dependent on other countries for meeting their needs for
goods and services. This can become a major disadvantage in situations like war.

• Pollution and environmental issues are the causes of Globalization.

• Globalization may also lead to faster spread of infectious disease, for people animals and plants. Such
infection may be carried through, people or goods.